Mortgage Income Helps Republic's Improved Results

Republic Bancorp Inc., Louisville, Ky., reported a $3.2 million year-over-year increase in its fourth quarter net income, aided by a $1.9 million increase in mortgage banking income. However, the fourth quarter had the lowest amount of mortgage banking income the company reported for 2009. Republic had fourth quarter 2009 mortgage banking income of $1.67 million, similar to the third quarter 2009 and much improved over a $270,000 loss in the fourth quarter 2008. In the first quarter 2009, Republic had mortgage banking income of $4.2 million, while in the second quarter it had $3.5 million. For the year, Republic more than doubled its secondary market mortgage origination volume, from $235 million in 2008 to $556 million in 2009. The company did not take a mortgage servicing rights impairment charge in the fourth quarter of 2009, vs. a charge of $1.2 million for the same period the previous year. Fourth quarter 2009 net income at Republic was $3.8 million, compared with net income of $604,000 one year prior.