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REPUBLIC BANCORP REPORTS RECORD PROFITS

 ANN ARBOR, Mich., Jan. 19 /PRNewswire/ -- Republic Bancorp Inc. (NASDAQ-NMS: RBNC) today announced record results for the year ended Dec. 31, 1992. Net income for the current year was $11.4 million, an increase of 180 percent over the $4.1 million reported for the prior year. Net income for the fourth quarter was $3.0 million, an increase of 193 percent over the $1.0 million reported for the fourth quarter of 1991. Fully diluted earnings per share increased to $1.34 in 1992 from $.60 for 1991, and to $.33 for the fourth quarter of 1992 from $.15 for the same period in 1991. Per-share amounts are restated to reflect the 10-percent stock dividend issued Oct. 30, 1992.
 The increase in net income was due principally to an improvement in net interest income for 1992 totaling $21.6 million, an increase of 25 percent over the prior year, and greater levels of non-interest income during the year primarily related to gain on sales of mortgage loans. Return on average assets was 1.94 percent for the year, compared to .82 percent for 1991, and return on average common equity was 24.14 percent for 1992, compared to 11.88 percent for the prior year.
 During 1992, Republic closed $2.0 billion in residential mortgages compared to $490 million during 1991, an increase of 305 percent. Total closed residential mortgages during the fourth quarter of 1992 were $732 million, up 281 percent over the $192 million closed during the same period of 1991. The company attributes this increase to the expansion of its mortgage banking retail and wholesale operations, combined with a relatively low interest rate environment. Also, as previously reported in December 1992, the company purchased the loan servicing and origination operations and production offices of Market Street Mortgage Corporation ("Market Street") of Clearwater (Tampa), Fla., which closed $71 million of residential loans during December 1992. Market Street has 19 offices located in the states of Florida, Georgia, North Carolina, Maryland and Virginia.
 The provision for loan losses was $1.6 million for the year ended Dec. 31, 1992, compared to $1.2 million for the prior year, reflecting the increase in the total loans of $35.3 million. At Dec. 31, 1992, the allowance for estimated loan losses to total loans was 1.69 percent, compared to 1.71 percent at the prior year end.
 The company's total assets as of Dec. 31, 1992, were $734 million, compared to $516 million as of the prior year end, an increase of 42 percent, reflecting the increased amount of mortgage loans held for sale and the acquisition of certain assets of Market Street in December 1992. Shareholders' equity increased to $58.4 million at Dec. 31, 1992, from $38.7 million at 1991 year end, an increase of 51 percent. This increase was primarily a result of the common stock public offering completed in April 1992, which raised proceeds of $9.1 million and net earnings for 1992. The book value per common share outstanding was $6.97 at Dec. 31, 1992, compared to $5.62 at Dec. 31, 1991. The company declared cash dividends of $.20 per common share during 1992.
 The company also announces the completion in January 1993 of a public offering of $17,250,000 of 9 percent Subordinated Notes which will mature in 2003. Stifel, Nicolaus & Company, Inc.; Keefe, Bruyette & Woods, Inc.; and Roney & Co. were the co-managers for this offering. Proceeds from this offering will be used to repay debt incurred in connection with the company's December 1992 acquisition of certain operating assets of Market Street, to expand the mortgage banking operations and activities of the company's subsidiaries, and for general corporate purposes, including possible future acquisitions.
 As previously announced in October 1992, Republic and Horizon Financial Services, Inc. (NASDAQ: HFIN), Beachwood, Ohio, jointly announced the signing of a definitive amended and restated merger agreement whereby Republic will acquire Horizon, a $402 million savings and loan holding company, through a merger of Horizon into Republic. Under the terms of the amended agreement, Horizon shareholders will be entitled to receive shares of Republic common stock at the rate of two shares for each share of Horizon stock and the transaction will be accounted for under the "pooling of interests" method of accounting. The transaction is anticipated to be completed at the end of the second quarter of 1993, subject to, among other things, regulatory approval, the approval of the shareholders of both Horizon and Republic pursuant to appropriate proxy materials, and registration of the Republic securities under applicable law. Horizon is the registered holding company for Horizon Savings Bank, a state-chartered savings bank founded in 1920. Horizon serves the Greater Cleveland area through eight suburban offices.
 Republic Bancorp Inc. is a registered bank holding company comprising seven subsidiaries. Including the Market Street acquisition, the company has 56 offices in nine states. Republic has become one of the leading sources of single-family residential mortgages in Michigan. Republic Bancorp Inc. common stock is traded on the over-the-counter market and quoted on the NASDAQ National Market System under the symbol RBNC.
 SUMMARY CONDENSED CONSOLIDATED FINANCIAL OPERATING DATA
 OF REPUBLIC BANCORP INC.
 (Dollars in thousands, except per-share dollar amounts
 and operating data)
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Income Statement Data
 Net income $3,018 $1,029 $11,354 $4,057
 Dividend on preferred shares --- 137 276 551
 Income applicable to common
 shares $3,018 $892 $11,078 $3,506
 Net income per common share:
 Primary $.34 $.15 $1.44 $.61
 Fully diluted .33 .15 1.34 .60
 Average common shares outstanding
 Primary 8,965 6,019 7,684 5,738
 Fully diluted 9,162 6,592 8,485 6,311
 Dec. 31,
 1992 1991
 Balance Sheet Summary
 Total assets $733,967 $516,276
 Mortgage loans held
 for sale 244,975 66,566
 Total loans 291,439 256,160
 Total investment and
 mortgage-backed securities 68,225 161,223
 Total deposits 563,080 425,317
 Total shareholders' equity 58,358 38,691
 Allowance for estimated
 loan losses 4,934 4,375
 Operating Data (In Millions)
 Residential mortgage loan
 production 1,984 490
 Mortgage loan servicing
 portfolio 2,013 255
 Mortgage servicing rights
 sold 1,213 201
 -0- 1/19/93
 /CONTACT: Dana M. Cluckey of Republic Bancorp Inc., 517-725-7337/
 (RBNC)


CO: Republic Bancorp Inc. ST: Michigan IN: FIN SU: ERN

JG-SB -- DE019 -- 6439 01/19/93 14:25 EST
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Date:Jan 19, 1993
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