UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of
Report (date of earliest event reported): September
17, 2008
REPUBLIC
BANCORP, INC.
(Exact
name of registrant as specified in its charter)
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Kentucky
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0-24649
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61-0862051
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(State
or other jurisdiction
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(Commission
File Number)
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(IRS
Employer Identification No.)
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of
incorporation)
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601
West Market Street, Louisville, Kentucky
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40202
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(Address
of principal executive offices)
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(zip
code)
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Registrant’s
telephone number, including area code: (502)
584-3600
NOT
APPLICABLE
(Former
Name or former Address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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| o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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On
September 17, 2008, at its regularly scheduled meeting, the board of directors
of Republic Bancorp, Inc. (“Republic” or the “Company”) reviewed with executive
management the market valuation of the Company’s non-agency mortgage backed
security portfolio. Management estimates the Company will record a non-cash
“Other-Than-Temporary-Impairment” charge of approximately $3.3 million for one
of its non-agency mortgage backed securities with an amortized cost of $11.1
million. This security was downgraded during the quarter by Moody’s from
a rating of
“Aa1” to a rating of “Baa2”. The Company’s impairment write-down is based on
August 31, 2008 estimated market values received by the Company on September
16,
2008.
In
determining that this non-agency mortgage backed security was
Other-Than-Temporarily-Impaired, the Company gave considerable weight to the
significant downgrade of this security by Moody’s. The significance of the
downgrade raised doubt about the ability of the Company to continue to collect
the future principal and interest of the security in accordance with its
original terms.
In
addition to the charge recorded for the above non-agency mortgage backed
security, the Company will also record a non-cash
Other-Than-Temporary-Impairment charge of $1.4 million during the third quarter
related to its holding of Federal Home Loan Mortgage Corporation (“Freddie Mac”)
preferred stock.
The
estimated after tax effect to third quarter net income of both impairment
charges will be approximately $3.1 million with an impact to diluted earnings
per Class A Common share of $0.15. The Company expects to be able to utilize
the
tax benefit of the impairment loss as a result of prior-year capital gains
and
from other tax planning strategies. The Company will finalize its estimates
for
these impairment charges in connection with the preparation of its third quarter
2008 financial statements. For the first six months of 2008, Republic reported
net income of $28.5 million with diluted earnings per Class A Common share
of
$1.38.
For
additional discussion of Republic’s Other-Than-Temporary-Impairment analyses,
see “Footnote 2. Securities” in the Company’s Form 10-Q filed August 5,
2008.
Forward
Looking Statements
Statements
in this 8-K relating to Republic’s plans, objectives, or future performance are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are based on management's current
expectations. Republic's actual strategies and results in future periods may
differ materially from those currently expected due to various risks and
uncertainties, including those discussed in Republic’s 2007 Form 10-K and
subsequent 10-Qs filed with the Securities and Exchange
Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Republic
Bancorp, Inc.
(Registrant)
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| Date:
September 19, 2008 |
By: |
/s/
Kevin Sipes |
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Kevin
Sipes |
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Executive
Vice President, Chief Financial
Officer
& Chief Accounting Officer
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