Republic Bancorp, Inc. KY (NASDAQ:RBCAA)

CAPS Rating: 5 out of 5

A financial holding company whose principal business is directing, planning and coordinating the business activities of the Bank.


Player Avatar bclmp (90.95) Submitted: 4/7/2009 9:59:24 PM : Underperform Start Price: $17.90 RBCAA Score: +28.49

As of the end of March, they had 2.38% in tax refund defaults compared with 1.61% last year at this time. Each 0.10% equates to $2.4 million reduced earnings.

By the end of 2009, their 2.4% default rate should be cut down to 1.2% compared with 0.8% in 2008. In 2008, they made $13.3M on tax refunds. They are processing 30% more returns this year which would give them $17.4M in income if their default rate was the same. With the increased default rate, by the end of the year, their earnings from tax refunds should be $7.4M compared with $13.3M last year. This will result in lower earnings for 2009 assuming their traditional bank earnings are flat.

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