REPUBLIC BANCORP INC - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

		(Mark One)
	þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the quarterly period ended March 31, 2005

		Or

	o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________________ to __________________________

Commission File Number:0-15734

REPUBLIC BANCORP INC.

(Exact name of registrant as specified in its charter)

	Michigan		38-2604669
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

	1070 East Main Street, Owosso, Michigan		48867
	(Address of principal executive offices)		(Zip Code)

	(989) 725-7337
	(Registrant's telephone number, including area code)


	(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

þYes oNo

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

þYes oNo

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock Outstanding as of April 30, 2005:
Common Stock, $5 Par Value Per Share	70,057,000 Shares

INDEX

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Consolidated Balance Sheets as of March 31, 2005 and December 31, 2004	2

	Consolidated Statements of Income for the Three Months Ended March 31, 2005 and 2004	3

	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2005 and 2004	4

	Notes to Consolidated Financial Statements	5 - 9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9 - 19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20 - 21

Item 4.	Controls and Procedures	22


PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	23

Item 2.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	23

Item 4.	Submission of Matters to a Vote of Security Holders	23

Item 5.	Other Information	24

Item 6.	Exhibits	24

SIGNATURE		25

Exhibits 31 -	Certifications of the Principal Executive Officer and Principal Financial Officer	26 - 27

Exhibits 32 -	Certifications of the Chief Executive Officer and Chief Financial Officer	28 - 29

PART I - FINANCIAL INFORMATION

ITEM 1 - Financial Statements

REPUBLIC BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)	March 31, 2005			December 31, 2004
	(Unaudited)
ASSETS
Cash and cash equivalents	$	54,440		$	53,671
Mortgage loans held for sale		30,380			105,318
Securities available for sale, at market		835,939			620,794
Securities held to maturity, at cost		261,674			222,757
Loans, net of unearned income		4,488,156			4,463,975
Less allowance for loan losses		(41,855	)		(41,818	)
Net loans		4,446,301			4,422,157
Federal Home Loan Bank stock (at cost)		80,514			80,511
Premises and equipment		25,630			26,493
Bank owned life insurance		113,335			112,978
Other assets		75,479			69,298
Total assets	$	5,923,692		$	5,713,977

LIABILITIES
Noninterest-bearing deposits	$	287,124		$	274,747
Interest-bearing deposits:
NOW accounts		194,290			203,553
Savings and money market accounts		1,070,683			1,103,675
Certificates of deposit under $100,000		685,134			662,357
Certificates of deposit $100,000 or greater		755,515			801,879
Total interest-bearing deposits		2,705,622			2,771,464
Total deposits		2,992,746			3,046,211
Federal funds purchased and other short-term borrowings		810,133			538,300
Short-term FHLB advances		170,000			215,000
Long-term FHLB advances and security repurchase agreements		1,432,518			1,390,878
Accrued expenses and other liabilities		63,347			63,950
Long-term debt		50,000			50,000
Total liabilities		5,518,744			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, 75,000,000 shares authorized; 70,274,000 and 70,425,000, issued and outstanding, respectively		351,369			352,125
Capital surplus		57,578			59,303
Unearned compensation - restricted stock		(7,194	)		(3,207	)
Retained earnings		13,190			3,634
Accumulated other comprehensive loss		(9,995	)		(2,217	)
Total shareholders’ equity		404,948			409,638
Total liabilities and shareholders’ equity	$	5,923,692		$	5,713,977

See notes to consolidated financial statements.

REPUBLIC BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended
	March 31,
(In thousands, except per share data)	2005		2004
Interest Income:
Interest and fees on loans	$	64,464	$	57,996
Interest on investment securities and FHLB stock dividends		11,377		9,823
Total interest income		75,841		67,819

Interest Expense:
Deposits		15,188		13,037
Short-term borrowings		5,620		2,018
Long-term FHLB advances and security repurchase agreements		15,630		15,810
Long-term debt		1,075		1,075
Total interest expense		37,513		31,940
Net interest income		38,328		35,879
Provision for loan losses		1,500		2,500
Net interest income after provision for loan losses		36,828		33,379

Noninterest Income: