Republic Bancorp Inc., (Nasdaq: RBNC), today announced record net income for the year ended December 31, 2005 of $69,181,000, compared to net income of $66,684,000 earned in 2004. Diluted earnings per share were $.90, up 6% from $.85 earned in 2004. Net income generated returns of 1.15% on average assets and 16.90% on average shareholders' equity for the year ended December 31, 2005.

"We are very pleased to report another year of record income for Republic," commented Dana M. Cluckey, President and Chief Executive Officer. "The Company's three business lines all contributed to our profitability and growth and worked well together to serve our customers. Our return on equity of approximately 17% continues to be well in excess of our peer group (the largest 51-100 bank holding companies in the country)."

"As we announced last week, we are also very proud to be recognized again as one of America's 100 Best Companies to Work For by FORTUNE and ranking as the 17th Best Company to Work For and the top rated bank in the country. As a company, we firmly believe in individual recognition and providing our employees the opportunity for financial and professional growth. All of our employees are shareholders of the Company and we believe that motivated employees will deliver exceptional service to our customers, resulting in increased value for our shareholders," added Mr. Cluckey.

Net income for the fourth quarter was $17,177,000, compared to net income of $16,804,000 earned for the same period in 2004. Diluted earnings per share were $.23, an increase of 6% over the $.21 earned in 2004. Annualized returns on average assets and average shareholders' equity for the fourth quarter 2005 were 1.13% and 16.95%, respectively.

Results for 2005 reflect solid loan closings from each of the Company's three business lines. The Commercial Banking division had a record $696 million of loan closings, up 23% compared to 2004. Additionally, the commercial division had SBA loan closings of $46 million during 2005. The Company's commercial loan portfolio grew $123 million to $1.7 billion, or 8% over 2004.

The Retail Banking division had consumer loan closings of $428 million during 2005, primarily home equity lines of credit and term loans. Total retail deposits grew $48 million, or 2% compared to December 31, 2004.

During 2005, the Mortgage Banking division originated $1.5 billion of single family residential mortgages, with 38% of these loan closings being adjustable rate loans. At December 31, 2005, the Company's mortgage loan pipeline of applicants in process was $303 million.

Income Statement

Net interest income increased $4.2 million, or 3%, for the year ended December 31, 2005 compared to 2004. The increase was primarily the result of a 6% increase in average earning assets for the year. For the quarter and year ended December 31, 2005, the Company's net interest margin was 2.71% and 2.73%, respectively.

Total noninterest income, excluding mortgage banking income, was $24.6 million for the year ended December 31, 2005, which was consistent with 2004. Other noninterest income for the quarter ended December 31, 2005 includes gains totaling $513,000 from the sale of $16.8 million of consumer loans, as the Company sold higher loan to value loans to manage credit risk in its consumer loan portfolio. Also, during the quarter ended December 31, 2005 and included in other noninterest income, the Company realized proceeds of $516,000 from the demutualization of an insurance company that provided annuity contracts to D&N Bank. An additional $568,000 of proceeds from the sale of the stock is reflected in gain on sale of securities for the quarter ended December 31, 2005.

Mortgage banking income for the year ended December 31, 2005 was $18.7 million, a decrease of 18% from 2004. The decrease was primarily a result of a 17% decrease in mortgage loan sales. Mortgage banking income for the quarter ended December 31, 2005, includes a gain on sale of mortgage servicing rights of $999,000. During the quarter, the Company sold $536 million of mortgage loans serviced for others, of which 52% were mortgage servicing rights originated by the Company during 2005.

Total noninterest expense decreased $814,000, or 1%, for the year ended December 31, 2005 compared to 2004. The decrease was a result of a decrease of $1.3 million in other noninterest expense primarily reflecting lower voice and data communication expenses and other miscellaneous expenses.

The Company's efficiency ratio for the year ended December 31, 2005 was 46.85%, which compares very favorably to our peer group.

Asset Quality and Capital

Net charge-offs to total average loans were 12 basis points for the year ended December 31, 2005 and remain substantially below the Company's peer group. Total non-accrual loans increased $19 million from December 31, 2004, due primarily to increases in commercial loans and residential real estate mortgage loans.

For the year ended December 31, 2005, 3,037,500 shares were repurchased under the Company's 2003 and 2005 Stock Repurchase Programs. During the fourth quarter of 2005, the Company repurchased 409,000 shares at an average price of $12.67 per share and has 1,062,852 shares available for repurchase at December 31, 2005.

The Company's capital ratios continue to be well in excess of the requirements for a well-capitalized bank. At December 31, 2005, the Company's Total risk-based capital ratio was 12.32% and the Tier 1 leverage ratio was 7.57%.

About the Company

Republic Bancorp Inc., with $6.1 billion in assets, is the third largest bank holding company headquartered in Michigan and the 81st largest bank holding company in the country. Its subsidiary, Republic Bank, serves customers in Michigan, Ohio and Indiana with 95 retail, commercial and mortgage banking offices and 90 ATMs. Republic has consistently been the #1 Small Business Administration bank lender based in Michigan and one of the Midwest's top retail mortgage lenders. Republic was named the 17th Best Company to Work For by FORTUNE magazine (marking the 6th year on FORTUNE's "100 Best Companies to Work For" list) and named to Working Mother magazine's list of "100 Best Companies for Working Mothers" for the fifth year in a row.

Information about Republic Bancorp Inc.'s financial results and its products and services, including on-line banking and mortgage applications can be accessed at http://www.republicbancorp.com .

Cash Dividend

The Company currently pays an annual cash dividend of $.44 per share, which represents an annual yield of approximately 3.6% based on the Company's current stock price.

Safe Harbor Statement

As with any statements other than those reflecting historical facts, forward-looking statements contained in this announcement involve risk, and, as such, future financial performance may differ from current expectations due to a variety of marketplace factors. These factors include, without limitation, those disclosed in Republic Bancorp's most recent filings on Form 10-K and Form 10-Q with the Securities and Exchange Commission.

REPUBLIC BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

Dec. 31, Sept. 30, June 30, Dec. 31,

2005 2005 2005 2004

(Unaudited) (Unaudited)

ASSETS

Cash and cash equivalents $52,527 $68,395 $55,575 $53,671

Mortgage loans held for sale 38,259 91,844 143,589 105,318

Securities available for sale 862,690 831,820 835,285 620,794

Securities held to maturity

(at cost) 227,304 237,059 252,527 222,757

Loans 4,628,258 4,585,988 4,533,129 4,463,975

Less allowance for loan

losses (42,122) (41,946) (41,871) (41,818)

Net loans 4,586,136 4,544,042 4,491,258 4,422,157

Federal Home Loan Bank

stock (at cost) 80,525 80,521 80,514 80,511

Premises and equipment 26,586 26,690 25,687 26,493

Bank owned life insurance 116,519 115,498 114,414 112,978

Other assets 91,220 85,613 76,379 69,298

Total assets $6,081,766 $6,081,482 $6,075,228 $5,713,977

LIABILITIES

Noninterest-bearing

deposits $284,932 $295,124 $308,730 $274,747

Interest-bearing deposits:

NOW accounts 187,190 184,476 196,221 203,553

Savings and money market

accounts 932,048 977,221 988,449 1,100,333

Retail certificates of

deposit 1,102,188 1,049,334 1,013,567 879,361

Wholesale deposits 636,585 708,452 528,119 588,217

Total interest-bearing

deposits 2,858,011 2,919,483 2,726,356 2,771,464

Total deposits 3,142,943 3,214,607 3,035,086 3,046,211

Federal funds purchased

and other short-term

borrowings 709,300 641,200 719,775 538,300

Short-term FHLB advances 218,000 190,000 362,500 215,000

Long-term FHLB advances and

security repurchase

agreements 1,489,432 1,515,877 1,434,934 1,390,878

Accrued expenses and other

liabilities 67,632 64,570 63,826 63,950

Long-term debt 50,000 50,000 50,000 50,000

Total liabilities 5,677,307 5,676,254 5,666,121 5,304,339

SHAREHOLDERS' EQUITY

Preferred stock, $25 stated

value: $2.25 cumulative and

convertible; 5,000,000

shares authorized, none

issued and outstanding - - - -

Common stock, $5 par value;

100,000,000 shares

authorized; 74,976,000,

75,309,000, 76,126,000,

and 77,468,000 issued and

outstanding, respectively 374,882 342,315 346,026 352,125

Capital surplus 41,491 40,030 47,556 59,303

Unearned compensation -

restricted stock (4,770) (5,623) (6,323) (3,207)

Retained earnings 3,114 32,692 23,024 3,634

Accumulated other

comprehensive loss (10,258) (4,186) (1,176) (2,217)

Total shareholders'

equity 404,459 405,228 409,107 409,638

Total liabilities and

shareholders' equity $6,081,766 $6,081,482 $6,075,228 $5,713,977

REPUBLIC BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

Three Months Ended Year Ended

December 31, December 31,

2005 2004 2005 2004

Interest Income

Loans, including fees $73,381 $64,413 $275,858 $241,049

Investment securities and

FHLB stock dividends 12,890 9,864 50,342 41,330

Total interest income 86,271 74,277 326,200 282,379

Interest Expense

Deposits 21,737 14,451 72,710 53,179

Short-term borrowings 8,823 3,954 31,915 12,237

Long-term FHLB advances and

security repurchase

agreements 15,759 15,723 63,239 62,813

Long-term debt 1,075 1,075 4,300 4,300

Total interest expense 47,394 35,203 172,164 132,529

Net interest income 38,877 39,074 154,036 149,850

Provision for loan losses 1,500 1,750 5,800 8,500

Net interest income after

provision for loan losses 37,377 37,324 148,236 141,350

Noninterest Income

Service charges 3,155 2,841 12,162 11,514

Mortgage banking income 4,856 6,441 18,673 22,739

Gain on sale of securities 611 497 1,785 2,461

Gain on sale of SBA loans 889 1,230 2,470 3,816

Income from bank owned life

insurance 1,033 1,095 4,209 4,648

Other noninterest income 1,825 1,034 4,005 2,141

Total noninterest income 12,369 13,138 43,304 47,319

Noninterest Expense

Salaries and employee benefits 16,427 16,862 57,530 56,819

Occupancy expense of premises 2,672 2,584 10,471 10,243

Equipment expense 1,460 1,677 6,248 6,675

Other noninterest expense 4,673 5,203 19,012 20,338

Total noninterest expense 25,232 26,326 93,261 94,075

Income before income taxes 24,514 24,136 98,279 94,594

Provision for income taxes 7,337 7,332 29,098 27,910

Net income $17,177 $16,804 $69,181 $66,684

Basic earnings per share $.23 $.22 $.91 $.86

Diluted earnings per share $.23 $.21 $.90 $.85

REPUBLIC BANCORP INC.

SUMMARY OF SELECTED FINANCIAL DATA

(In thousands, except operating data)

Three Months Ended Year Ended

December 31, December 31,

2005 2004 2005 2004

Operating Data (in millions):

Residential mortgage loan

closings:

Fixed rate $210 $214 $950 $978

Adjustable rate 127 230 576 979

Total residential

mortgage loan closings $337 $444 $1,526 $1,957

Conventional loans $158 $214 $785 $945

Government loans 26 44 133 190

Construction loans 43 65 190 255

Jumbo and other loans 110 121 418 567

Total residential

mortgage loan closings $337 $444 $1,526 $1,957

Refinances (percent of total) 41% 38% 39% 40%

Mortgage loan sales $240 $364 $1,015 $1,220

Commercial loan closings:

Commercial loans $197 $151 $696 $564

SBA loans 11 13 46 53

Total commercial loan

closings $208 $164 $742 $617

Consumer loan closings: $100 $107 $428 $498

Performance Ratios (annualized

for the quarter):

Return on average assets 1.13% 1.17% 1.15% 1.18%

Return on average equity 16.95% 16.44% 16.90% 17.03%

Net interest margin 2.71% 2.88% 2.73% 2.83%

Efficiency ratio (1) 49.03% 50.00% 46.85% 47.34%

Per Common Share Data:

Average common shares

outstanding - diluted 75,853 78,567 77,074 78,401

Cash dividends declared $.11 $.10 $.41 $.348

Book value $5.39 $5.29 $5.39 $5.29

Tangible book value $5.34 $5.22 $5.34 $5.22

Dec. 31, Sept. 30, June 30, Dec. 31,

2005 2005 2005 2004

Capital Ratios:

Shareholders' equity to assets 6.65% 6.66% 6.73% 7.17%

Tier 1 risk-based capital 11.24% 11.18% 11.38% 11.87%

Total risk-based capital 12.32% 12.27% 12.50% 12.96%

Tier 1 leverage 7.57% 7.52% 7.57% 7.94%

(1) Includes total noninterest expense, divided by total revenue (FTE), excluding gain on sale of securities.

REPUBLIC BANCORP INC.

SUMMARY OF SELECTED FINANCIAL DATA

(Dollars in thousands)

Three Months Ended Three Months Ended

December 31, 2005 December 31, 2004

Average Average Average Average

Balance Interest Rate Balance Interest Rate

Average Assets:

Short-term

investments $912 $10 4.54% $689 $3 1.42%

Mortgage loans

held for sale 67,306 1,014 6.02 143,697 2,091 5.82

Securities available

for sale:

Taxable 643,608 7,581 4.71 427,399 4,476 4.19

Tax-exempt 203,611 2,644 5.15 206,777 2,881 5.47

Securities held

to maturity 233,391 2,673 4.58 227,877 2,613 4.59

Portfolio loans:

Commercial

loans 1,702,473 30,225 6.95 1,570,694 23,575 5.87

Residential

real estate

mortgage

loans 2,168,307 28,987 5.35 2,162,544 28,422 5.26

Installment

loans 755,571 13,155 6.91 726,132 10,325 5.64

Total loans,

net of

unearned

income 4,626,351 72,367 6.19 4,459,370 62,322 5.54

FHLB stock 80,521 813 4.01 80,733 829 4.07

Total

interest-

earning

assets 5,855,700 87,102 5.90 5,546,542 75,215 5.38

Allowance for

loan losses (41,999) (44,749)

Cash and due

from banks 49,600 56,550

Other assets 226,649 198,569

Total

assets $6,089,950 $5,756,912

Average Liabilities and Shareholders' Equity:

Interest-bearing

demand deposits $183,100 $241 0.52% $201,091 $194 0.38%

Savings and

money market

accounts 962,045 5,046 2.08 1,088,437 3,877 1.42

Retail certificates

of deposit 1,076,896 9,454 3.48 876,857 6,770 3.06

Wholesale

deposits 695,984 6,996 3.99 593,684 3,610 2.41

Total

interest-

bearing

deposits 2,918,025 21,737 2.96 2,760,069 14,451 2.08

Short-term

borrowings 849,750 8,823 4.06 818,947 3,954 1.89

Long-term FHLB

advances and

security repurchase

agreements 1,534,208 15,759 4.02 1,394,075 15,723 4.41

Long-term debt 50,000 1,075 8.60 50,000 1,075 8.60

Total

interest-

bearing

liabilities 5,351,983 47,394 3.49 5,023,091 35,203 2.76

Noninterest-

bearing deposits 285,165 286,931

Other liabilities 47,539 37,949

Total

liabilities 5,684,687 5,347,971

Shareholders'

equity 405,263 408,941

Total

liabilities

and

shareholders'

equity $6,089,950 $5,756,912

Net interest

income/rate

spread (FTE) $39,708 2.41% $40,012 2.62%

FTE adjustment $831 $938

Impact of noninterest-

bearing sources of funds 0.30% 0.26%

Net interest margin (FTE) 2.71% 2.88%

REPUBLIC BANCORP INC.

SUMMARY OF SELECTED FINANCIAL DATA

(Dollars in thousands)

Year Ended Year Ended

December 31, 2005 December 31, 2004

Average Average Average Average

Balance Interest Rate Balance Interest Rate

Average Assets:

Short-term

investments $1,218 $32 2.64% $585 $7 1.21%

Mortgage loans

held for sale 95,470 5,644 5.91 119,070 6,862 5.76

Securities available

for sale:

Taxable 607,531 28,040 4.62 483,900 19,242 3.98

Tax-exempt 208,178 11,187 5.37 215,707 12,348 5.72

Securities held

to maturity 243,142 11,130 4.58 222,358 10,082 4.53

Portfolio loans:

Commercial

loans 1,641,529 109,104 6.65 1,546,485 87,973 5.69

Residential

real estate

mortgage

loans 2,149,873 112,968 5.25 2,089,464 109,446 5.24

Installment

loans 747,952 48,142 6.44 676,236 36,768 5.42

Total loans,

net of unearned

income 4,539,354 270,214 5.95 4,312,185 234,187 5.43

FHLB stock 80,614 3,459 4.29 80,722 3,651 4.51

Total

interest-

earning

assets 5,775,507 329,706 5.71 5,434,527 286,379 5.27

Allowance for

loan losses (41,962) (43,016)

Cash and due

from banks 49,841 54,642

Other assets 214,205 189,936

Total

assets $5,997,591 $5,636,089

Average Liabilities and Shareholders' Equity:

Interest-bearing

demand

deposits $194,134 $959 0.49% $192,728 $600 0.31%

Savings and

money market

accounts 1,005,075 17,883 1.78 1,043,983 13,629 1.30

Retail certificates

of deposit 1,002,776 33,055 3.30 882,525 27,741 3.14

Wholesale

deposits 597,647 20,813 3.48 510,367 11,209 2.19

Total

interest-

bearing

deposits 2,799,632 72,710 2.60 2,629,603 53,179 2.02

Short-term

borrowings 960,611 31,915 3.32 852,002 12,237 1.41

Long-term FHLB

advances and

security

repurchase

agreements 1,450,456 63,239 4.36 1,400,875 62,813 4.48

Long-term debt 50,000 4,300 8.60 50,000 4,300 8.60

Total

interest-

bearing

liabilities 5,260,699 172,164 3.27 4,932,480 132,529 2.68

Noninterest-bearing

deposits 283,451 276,799

Other liabilities 43,986 35,229

Total

liabilities 5,588,136 5,244,508

Shareholders'

equity 409,455 391,581

Total liabilities

and

shareholders'

equity $5,997,591 $5,636,089

Net interest

income/rate

spread (FTE) $157,542 2.44% $153,850 2.59%

FTE adjustment $3,506 $4,000

Impact of

noninterest-

bearing sources

of funds 0.29% 0.24%

Net interest

margin (FTE) 2.73% 2.83%

REPUBLIC BANCORP INC.

SUMMARY OF SELECTED FINANCIAL DATA

(Dollars in thousands)

Dec. 31, Sept. 30, June 30, Dec. 31,

2005 2005 2005 2004

Portfolio Loan Summary:

Commercial loans:

Commercial and

industrial $28,314 $30,390 $29,753 $32,632

Commercial real estate

mortgage 1,669,556 1,647,460 1,612,718 1,542,660

Total commercial

loans 1,697,870 1,677,850 1,642,471 1,575,292

Residential real

estate mortgages 2,193,128 2,146,613 2,137,046 2,152,720

Installment loans 737,260 761,525 753,612 735,963

Total portfolio

loans $4,628,258 $4,585,988 $4,533,129 $4,463,975

Non-Performing Assets:

Non-accrual loans:

Commercial $27,344 $24,913 $14,550 $17,744

Residential real estate

mortgage 19,026 13,636 12,202 10,705

Installment 2,413 1,361 1,100 852

Total non-accrual

loans 48,783 39,910 27,852 29,301

Other real estate owned:

Commercial 8,575 9,089 4,441 650

Residential real estate

mortgage 3,029 3,331 3,399 2,720

Installment 712 687 1,077 790

Total other real estate

owned 12,316 13,107 8,917 4,160

Total non-performing

assets $61,099 $53,017 $36,769 $33,461

Allowance for Loan Losses (for the quarter):

Balance at beginning

of period $41,946 $41,871 $41,855 $44,167

Loans charged off:

Commercial 1,387 924 907 753

Residential real

estate mortgage 340 577 719 379

Installment 294 345 270 386

Total charge-offs 2,021 1,846 1,896 1,518

Recoveries:

Commercial 334 96 242 17

Residential real

estate mortgage 135 219 17 35

Installment 228 206 253 184

Total recoveries 697 521 512 236

Net charge-offs 1,324 1,325 1,384 1,282

Provision charged

to expense 1,500 1,400 1,400 1,750

Reclassification of

allowance for loan losses

on unfunded loan

commitments(1) - - - (2,817)

Balance at end of period $42,122 $41,946 $41,871 $41,818

(1) During the fourth quarter of 2004, the Company reclassified $2.8 million of its allowance for loan losses to a separate allowance for probable credit losses inherent in unfunded loan commitments. Net income and prior period balances were not affected by this reclassification. The separate allowance is included in "accrued expenses and other liabilities."

REPUBLIC BANCORP INC.

SUMMARY OF SELECTED FINANCIAL DATA

(Dollars in thousands)

Dec. 31, Sept. 30, June 30, Dec. 31,

2005 2005 2005 2004

Asset Quality Ratios:

Non-performing assets to

loans and other

real estate owned 1.32% 1.15% .81% .75%

Non-performing assets

to total assets 1.00% .87% .61% .59%

Allowance for loan losses