Republic Bank & Trust Company
Encyclopedia
Republic Bank & Trust Company is a Louisville, Kentucky
-based bank
.
. Five years later, in 1982, Republic Bank & Trust Company was founded and headquartered in Louisville, Kentucky. In 1983, Republic Bank & Trust Company acquired Republic Savings Bank in Benton, Kentucky
. In 1994, all three banks were merged under the Republic Bank & Trust Company name.
Throughout the 1980s and 1990s the bank opened several banking centers throughout communities in Kentucky. In 1987, the bank's operations were moved to a newly constructed office tower in downtown Louisville.
In 1998, Republic Bancorp, Inc. was formed as a holding company for Republic Bank & Trust Company and an initial public offering
of 2.14 million shares of Class A common stock was completed. The company also acquired Refunds Now, a national refund anticipation loan
and check provider. In the mid-2000s, Refunds Now's name was changed to Tax Refunds Solutions.
In 2001, Republic Bank & Trust Company of Indiana was formed under Republic Bancorp, Inc. This bank was merged back into the Republic Bank & Trust Company in December 2006.
In October 2006, Republic Bancorp acquired Tampa, Florida
-based GulfStream Community Bank for $18.1 million.
s.
s and tax refund anticipation loan
s to "hard-up borrowers".
In a February 17, 2006 letter to the bank, the Federal Deposit Insurance Corporation
(FDIC) "cited inherent risks associated with payday lending activities and asked the bank to consider ending this line of business," according to a filing with the U.S. Securities and Exchange Commission. This was prompted by a letter to the FDIC from over 80 national consumer groups complaining about Republic’s abusive practices in payday loans.
Half of Republic's income for the first nine months of 2008 was attributed to fees and interest associated with making refund anticipation loans.
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
-based bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
.
History
In 1977, Republic Bank of Shelby County was formed in Shelbyville, KentuckyShelbyville, Kentucky
As of the census of 2000, there were 10,085 people, 3,822 households, and 2,549 families residing in the city. The population density was 1,333.5 people per square mile . There were 4,117 housing units at an average density of 544.4 per square mile...
. Five years later, in 1982, Republic Bank & Trust Company was founded and headquartered in Louisville, Kentucky. In 1983, Republic Bank & Trust Company acquired Republic Savings Bank in Benton, Kentucky
Benton, Kentucky
Benton is a city in Marshall County, Kentucky, United States. The population was 4,197 at the 2000 census. It is the county seat of Marshall County....
. In 1994, all three banks were merged under the Republic Bank & Trust Company name.
Throughout the 1980s and 1990s the bank opened several banking centers throughout communities in Kentucky. In 1987, the bank's operations were moved to a newly constructed office tower in downtown Louisville.
In 1998, Republic Bancorp, Inc. was formed as a holding company for Republic Bank & Trust Company and an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
of 2.14 million shares of Class A common stock was completed. The company also acquired Refunds Now, a national refund anticipation loan
Refund Anticipation Loan
A refund anticipation loan is a short-term consumer loan secured by a taxpayer’s expected tax refund, and designed to offer customers quicker access to funds than waiting for their tax refund...
and check provider. In the mid-2000s, Refunds Now's name was changed to Tax Refunds Solutions.
In 2001, Republic Bank & Trust Company of Indiana was formed under Republic Bancorp, Inc. This bank was merged back into the Republic Bank & Trust Company in December 2006.
In October 2006, Republic Bancorp acquired Tampa, Florida
Tampa, Florida
Tampa is a city in the U.S. state of Florida. It serves as the county seat for Hillsborough County. Tampa is located on the west coast of Florida. The population of Tampa in 2010 was 335,709....
-based GulfStream Community Bank for $18.1 million.
Recognition
In recent years Republic has been recognized in the industry for its performance. In 2009 Sandler O'Neil listed Republic as the 10th best performing bank Over $3 billion in assets, and in 2010 ranked 5th overall in the same list. Republic has been ranked #1 out of 155 mid-size banks by Freddie Mac in 2009 for its servicing of mortgage loanMortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
s.
Predatory lending
Critics charge that Republic uses aggressive marketing techniques to promote high-interest loans, such as payday loanPayday loan
A payday loan is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card...
s and tax refund anticipation loan
Refund Anticipation Loan
A refund anticipation loan is a short-term consumer loan secured by a taxpayer’s expected tax refund, and designed to offer customers quicker access to funds than waiting for their tax refund...
s to "hard-up borrowers".
In a February 17, 2006 letter to the bank, the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC) "cited inherent risks associated with payday lending activities and asked the bank to consider ending this line of business," according to a filing with the U.S. Securities and Exchange Commission. This was prompted by a letter to the FDIC from over 80 national consumer groups complaining about Republic’s abusive practices in payday loans.
Half of Republic's income for the first nine months of 2008 was attributed to fees and interest associated with making refund anticipation loans.