Republic Bank (RBCAA) is an example of a bank that works hard to make its customers work hard.

Some observers naively examine the low rates of loan defaults on Republic’s home mortgage loan operations and assume that it a conservative small-town community bank. Hoover’s, a web site operated by Dunn & Bradstreet, makes this comment:

“…perhaps you bank at Republic Bancorp. It’s the largest Kentucky-based bank holding company, and parent to Republic Bank & Trust, which has about 40 branches in central Kentucky and southern Indiana. In 2006 the company entered Florida, where it has four branches, via its purchase of Tampa’s GulfStream Bank, since renamed Republic Bank. The banks offer checking and savings accounts, investment management, and trust services. Their lending activities mainly consist of residential mortgages (about half of the company’s loan portfolio) and commercial real estate loans (almost 30%).”

A closer look shows that Republic’s community banking is driven by fee income on overdrafts. Outside of its (more…)

While Jackson Hewitt and Republic Bank have both announced a new agreement for the funding of refund anticipation loans, there are miles to go before that relationship bears fruit. Republic still needs to get the go-ahead from the FDIC, and there is little time for Jackson Hewitt to respond if the FDIC wants to intervene.

The new agreement runs through 2012. Of note, it increases the number of locations where Republic will provide funding support for Jackson Hewitt franchisees.  It covers funding both for Jackson Hewitt’s refund anticipation loans and their assisted refund products.

Republic submitted a second 8-K on December 30th that indicated that it would be in talks with the FDIC about this new agreement.  The statement is simple, but it is hard to imagine that there isn’t something lurking behind (more…)