----

**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, 2006                                                      |   |
|   |   |                                                                                                                                  |   |
|   |   | Or                                                                                                                                    |   |
|   |   |                                                                                                                                  |   |
|   | o      | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |   |

**REPUBLIC      BANCORP INC.**

|   | 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) |   |

**APPLICABLE      ONLY TO CORPORATE ISSUERS:**

| Common                Stock Outstanding as of April 30, 2006: |   |                             |
|---------------------------------------------------------------|--------|----------------------------------|
| Common                Stock, $5 Par Value Per Share           |   | 74,588,000                Shares |

----

| **PART                I.**          | FINANCIAL                INFORMATION                                                                                                  |   |                                 |
|-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                |                                                                                                                                  |   |                                 |
| Item                1.              | Financial                Statements (Unaudited)                                                                                       |   |                                 |
|                                |                                                                                                                                  |   |                                 |
|                                | Consolidated                Balance Sheets as of March 31, 2006 and December 31, 2005                                                 |   | 2                                    |
|                                |                                                                                                                                  |   |                                 |
|                                | Consolidated                Statements of Income for the Three Months Ended March 31, 2006 and                2005                    |   | 3                                    |
|                                |                                                                                                                                  |   |                                 |
|                                | Consolidated                Statements of Cash Flows for the Three Months Ended March 31, 2006                and                2005 |   | 4                                    |
|                                |                                                                                                                                  |   |                                 |
|                                | Notes                to Consolidated Financial Statements                                                                             |   | 5                -                11 |
|                                |                                                                                                                                  |   |                                 |
| Item                2.              | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations             |   | 12                - 23               |
|                                |                                                                                                                                  |   |                                 |
| Item                3.              | Quantitative                and Qualitative Disclosures About Market Risk                                                             |   | 24                - 26               |
|                                |                                                                                                                                  |   |                                 |
| Item                4.              | Controls                and Procedures                                                                                                |   | 26                                   |
|                                |                                                                                                                                  |   |                                 |
| **PART                II.**         | OTHER                INFORMATION                                                                                                      |   |                                 |
|                                |                                                                                                                                  |   |                                 |
| Item                1.              | Legal                Proceedings                                                                                                      |   | 27                                   |
|                                |                                                                                                                                  |   |                                 |
| Item                2.              | Purchases                of Equity Securities by the Issuer and Affiliated                Purchasers                                  |   | 27                                   |
|                                |                                                                                                                                  |   |                                 |
| Item                4.              | Submission                of Matters to a Vote of Security Holders                                                                    |   | 27                                   |
|                                |                                                                                                                                  |   |                                 |
| Item                6.              | Exhibits                                                                                                                              |   | 27                                   |
|                                |                                                                                                                                  |   |                                 |
| **SIGNATURE**                       |                                                                                                                                  |   | 28                                   |
|                                |                                                                                                                                  |   |                                 |
| Exhibits                31(a)-(b) - | Certifications                of the Principal Executive Officer and Principal Financial                Officer                       |   | 29                - 30               |
|                                |                                                                                                                                  |   |                                 |
| Exhibits                32(a)-(b) - | Certifications                of the Chief Executive Officer and Chief Financial Officer                                              |   | 31                - 32               |

----

**PART      I - FINANCIAL INFORMATION**

**REPUBLIC      BANCORP INC. AND SUBSIDIARIES**

| (Dollars                in thousands)                                                                                                                       |   | March                31,2006 |      | December                31, 2005 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|----------------------------------|--------|
|                                                                                                                                                        |   | (Unaudited)                  |      | (Note                1)          |   |
| **ASSETS**                                                                                                                                                  |   |                         |      |                             |   |   |   |
| Cash                and cash equivalents                                                                                                                    |   | $                            | 47,505    |                             | $      | 52,527 |   |
| Mortgage                loans held for sale                                                                                                                 |   |                         | 24,600    |                             |   | 38,259 |   |
| Securities                available for sale, at market                                                                                                     |   |                         | 926,912   |                             |   | 861,623 |   |
| Securities                held to maturity, at cost                                                                                                         |   |                         | 222,213   |                             |   | 227,262 |   |
| Loans,                net of unearned income                                                                                                                |   |                         | 4,746,970 |                             |   | 4,628,258 |   |
| Less                allowance for loan losses                                                                                                               |   |                         | (42,342   | )                                |   | (42,122 | ) |
| Net                loans                                                                                                                                    |   |                         | 4,704,628 |                             |   | 4,586,136 |   |
| Federal                Home Loan Bank stock (at cost)                                                                                                       |   |                         | 80,529    |                             |   | 80,525 |   |
| Premises                and equipment                                                                                                                       |   |                         | 26,887    |                             |   | 26,586 |   |
| Bank                owned life insurance                                                                                                                    |   |                         | 117,509   |                             |   | 116,519 |   |
| Other                assets                                                                                                                                 |   |                         | 92,887    |                             |   | 92,329 |   |
| Total                assets                                                                                                                                 |   | $                            | 6,243,670 |                             | $      | 6,081,766 |   |
|                                                                                                                                                        |   |                         |      |                             |   |   |   |
| **LIABILITIES**                                                                                                                                             |   |                         |      |                             |   |   |   |
| Noninterest-bearing                deposits                                                                                                                 |   | $                            | 277,791   |                             | $      | 284,932 |   |
| Interest-bearing                deposits:                                                                                                                   |   |                         |      |                             |   |   |   |
| NOW                accounts                                                                                                                                 |   |                         | 185,461   |                             |   | 187,190 |   |
| Savings                and money market accounts                                                                                                            |   |                         | 859,322   |                             |   | 932,048 |   |
| Retail                certificates of deposit                                                                                                               |   |                         | 1,153,593 |                             |   | 1,102,188 |   |
| Wholesale                deposits                                                                                                                           |   |                         | 607,808   |                             |   | 636,585 |   |
| Total                interest-bearing deposits                                                                                                              |   |                         | 2,806,184 |                             |   | 2,858,011 |   |
| Total                deposits                                                                                                                               |   |                         | 3,083,975 |                             |   | 3,142,943 |   |
| Federal                funds purchased and other short-term borrowings                                                                                      |   |                         | 718,153   |                             |   | 709,300 |   |
| Short-term                FHLB advances                                                                                                                     |   |                         | 375,000   |                             |   | 218,000 |   |
| Long-term                FHLB advances and security repurchase agreements                                                                                   |   |                         | 1,547,071 |                             |   | 1,489,432 |   |
| Accrued                expenses and other liabilities                                                                                                       |   |                         | 62,984    |                             |   | 67,632 |   |
| Long-term                debt                                                                                                                               |   |                         | 50,000    |                             |   | 50,000 |   |
| Total                liabilities                                                                                                                            |   |                         | 5,837,183 |                             |   | 5,677,307 |   |
|                                                                                                                                                        |   |                         |      |                             |   |   |   |
| **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, 100,000,000 shares authorized; 74,684,000 and                74,976,000 issued and outstanding, respectively     |   |                         | 373,422   |                             |   | 374,882 |   |
| Capital                surplus                                                                                                                              |   |                         | 34,841    |                             |   | 36,721 |   |
| Retained                earnings                                                                                                                            |   |                         | 11,307    |                             |   | 3,114 |   |
| Accumulated                other comprehensive loss                                                                                                         |   |                         | (13,083   | )                                |   | (10,258 | ) |
| Total                shareholders’ equity                                                                                                             |   |                         | 406,487   |                             |   | 404,459 |   |
| Total                liabilities and shareholders’ equity                                                                                             |   | $                            | 6,243,670 |                             | $      | 6,081,766 |   |

----

**REPUBLIC      BANCORP INC. AND SUBSIDIARIES**

|                                                                      |   | Three                Months Ended |   |
|---------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                      |   | March                31,          |   |
| (In                thousands, except per share data)                      |   | 2006                              |   | 2005 |   |
| **Interest                Income:**                                       |   |                              |   |   |   |   |   |
| Interest                and fees on loans                                 |   | $                                 | 74,159 |   | $ | 64,464 |   |
| Interest                on investment securities and FHLB stock dividends |   |                              | 14,240 |   |   | 11,377 |   |
| Total                interest income                                      |   |                              | 88,399 |   |   | 75,841 |   |
|                                                                      |   |                              |   |   |   |   |   |
| **Interest                Expense:**                                      |   |                              |   |   |   |   |   |
| Deposits                                                                  |   |                              | 21,362 |   |   | 15,188 |   |
| Short-term                borrowings                                      |   |                              | 11,470 |   |   | 5,620 |   |
| Long-term                FHLB advances and security repurchase agreements |   |                              | 15,804 |   |   | 15,630 |   |
| Long-term                debt                                             |   |                              | 1,075  |   |   | 1,075 |   |
| Total                interest expense                                     |   |                              | 49,711 |   |   | 37,513 |   |
| Net                interest income                                        |   |                              | 38,688 |   |   | 38,328 |   |
| Provision                for loan losses                                  |   |                              | 1,400  |   |   | 1,500 |   |
| Net                interest income after provision for loan losses        |   |                              | 37,288 |   |   | 36,828 |   |
|                                                                      |   |                              |   |   |   |   |   |
| **Noninterest                Income:**                                    |   |                              |   |   |   |   |   |
| Mortgage                banking income                                    |   |                              | 1,835  |   |   | 5,825 |   |
| Service                charges                                            |   |                              | 2,993  |   |   | 2,681 |   |
| Gain                on sale of securities                                 |   |                              | 62     |   |   | 435 |   |
| Gain                on sale of SBA loans                                  |   |                              | 548    |   |   | 392 |   |
| Income                from bank owned life insurance                      |   |                              | 979    |   |   | 1,013 |   |
| Other                noninterest income                                   |   |                              | 862    |   |   | 692 |   |
| Total                noninterest income                                   |   |                              | 7,279  |   |   | 11,038 |   |
|                                                                      |   |                              |   |   |   |   |   |
| **Noninterest                Expense:**                                   |   |                              |   |   |   |   |   |
| Salaries                and employee benefits                             |   |                              | 12,320 |   |   | 13,416 |   |
| Occupancy                expense of premises                              |   |                              | 2,691  |   |   | 2,701 |   |
| Equipment                expense                                          |   |                              | 1,434  |   |   | 1,624 |   |
| Other                noninterest expense                                  |   |                              | 4,527  |   |   | 5,131 |   |
| Total                noninterest expense                                  |   |                              | 20,972 |   |   | 22,872 |   |
| Income                before income taxes                                 |   |                              | 23,595 |   |   | 24,994 |   |
| Provision                for income taxes                                 |   |                              | 7,178  |   |   | 7,687 |   |
| **Net                Income**                                             |   | $                                 | 16,417 |   | $ | 17,307 |   |
|                                                                      |   |                              |   |   |   |   |   |
|                                                                      |   |                              |   |   |   |   |   |
| Basic                earnings per share                                   |   | $                                 | .22    |   | $ | .22 |   |
|                                                                      |   |                              |   |   |   |   |   |
| Diluted                earnings per share                                 |   | $                                 | .22    |   | $ | .22 |   |
|                                                                      |   |                              |   |   |   |   |   |
| Average                common shares outstanding - diluted                |   |                              | 75,552 |   |   | 78,322 |   |
|                                                                      |   |                              |   |   |   |   |   |
| Cash                dividends declared per common share                   |   | $                                 | .11    |   | $ | .10 |   |

----

**REPUBLIC      BANCORP INC. AND SUBSIDIARIES**

|                                                                                                                      |   | Three                Months Ended |     |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                                                                      |   | March                31,          |     |
| (In                thousands)                                                                                             |   | 2006                              |     | 2005 |   |
| **Cash                Flows From Operating Activities:**                                                                  |   |                              |     |   |   |   |   |
| Net                income                                                                                                 |   | $                                 | 16,417   |   | $ | 17,307 |   |
| Adjustments                to reconcile net income to net cash provided by (used in) operating                activities: |   |                              |     |   |   |   |   |
| Depreciation                and amortization                                                                              |   |                              | 1,600    |   |   | 2,305 |   |
| Stock-based                compensation expense                                                                           |   |                              | 386      |   |   | 518 |   |
| Net                gains on sale of securities available for sale                                                         |   |                              | (62      | ) |   | (435 | ) |
| Net                gains on sale of commercial and residential real estate                loans                           |   |                              | (548     | ) |   | (2,483 | ) |
| Proceeds                from sale of mortgage loans held for sale                                                         |   |                              | 79,104   |   |   | 174,302 |   |
| Origination                of mortgage loans held for sale                                                                |   |                              | (65,445  | ) |   | (99,364 | ) |
| Net                increase in other assets                                                                               |   |                              | (1,624   | ) |   | (8,635 | ) |
| Net                decrease in other liabilities                                                                          |   |                              | (3,937   | ) |   | (603 | ) |
| Other,                net                                                                                                 |   |                              | 221      |   |   | 38 |   |
| Total                adjustments                                                                                          |   |                              | 9,695    |   |   | 65,643 |   |
| Net                cash provided by operating activities                                                                  |   |                              | 26,112   |   |   | 82,950 |   |
|                                                                                                                      |   |                              |     |   |   |   |   |
| **Cash                Flows From Investing Activities:**                                                                  |   |                              |     |   |   |   |   |
| Proceeds                from sale of securities available for sale                                                        |   |                              | 9,085    |   |   | 69,866 |   |
| Proceeds                from calls and principal payments of securities available for                sale                 |   |                              | 17,386   |   |   | 33,897 |   |
| Proceeds                from principal payments of securities held to maturity                                            |   |                              | 5,102    |   |   | 11,972 |   |
| Purchases                of securities available for sale                                                                 |   |                              | (96,183  | ) |   | (330,709 | ) |
| Purchases                of securities held to maturity                                                                   |   |                              | -        |   |   | (50,921 | ) |
| Proceeds                from sale of commercial and residential real estate loans                                         |   |                              | 8,309    |   |   | 136,359 |   |
| Net                increase in loans made to customers                                                                    |   |                              | (126,094 | ) |   | (158,778 | ) |
| Purchases                of premises and equipment                                                                        |   |                              | (1,543   | ) |   | (645 | ) |
| Net                cash used in investing activities                                                                      |   |                              | (183,938 | ) |   | (288,959 | ) |
|                                                                                                                      |   |                              |     |   |   |   |   |
| **Cash                Flows From Financing Activities:**                                                                  |   |                              |     |   |   |   |   |
| Net                decrease in total deposits                                                                             |   |                              | (58,968  | ) |   | (53,465 | ) |
| Net                increase in short-term borrowings                                                                      |   |                              | 8,853    |   |   | 271,833 |   |
| Net                increase (decrease) in short-term FHLB advances                                                        |   |                              | 157,000  |   |   | (45,000 | ) |
| Proceeds                from long-term FHLB advances and security repurchase                agreements                    |   |                              | 113,583  |   |   | 62,250 |   |
| Payments                on long-term FHLB advances and security repurchase                agreements                      |   |                              | (55,690  | ) |   | (19,371 | ) |
| Net                proceeds from issuance of common shares                                                                |   |                              | 432      |   |   | 5,994 |   |
| Excess                tax benefits of stock-based awards                                                                  |   |                              | 210      |   |   | - |   |
| Repurchase                of common shares                                                                                |   |                              | (5,471   | ) |   | (8,846 | ) |
| Dividends                paid on common shares                                                                            |   |                              | (7,145   | ) |   | (6,617 | ) |
| Net                cash provided by financing activities                                                                  |   |                              | 152,804  |   |   | 206,778 |   |
|                                                                                                                      |   |                              |     |   |   |   |   |
| Net                (decrease) increase in cash and cash equivalents                                                       |   |                              | (5,022   | ) |   | 769 |   |
| Cash                and cash equivalents at beginning of period                                                           |   |                              | 52,527   |   |   | 53,671 |   |
| Cash                and cash equivalents at end of period                                                                 |   | $                                 | 47,505   |   | $ | 54,440 |   |

----

**REPUBLIC      BANCORP INC. AND SUBSIDIARIES**

**Note      1 - **
**Basis      of Presentation**

**Note      2 - **
**Principles      of Consolidation**

**Note      3 - **
**Consolidated      Statements of Cash Flows**

| (In                thousands)                               |   | 2006   |   | 2005   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|
| Cash                paid during the period for:             |   |   |   |   |   |   |   |
| Interest                                                    |   | $      | 50,254 |   | $      | 37,383 |   |
| Income                taxes                                 |   | $      | 1,750  |   | $      | 250 |   |
|                                                        |   |   |   |   |   |   |   |
| Non-cash                investing activities:               |   |   |   |   |   |   |   |
| Loan                charge-offs                             |   | $      | 1,720  |   | $      | 1,700 |   |
| Loans                transferred to other real estate owned |   | $      | 3,814  |   | $      | 3,195 |   |

**Note      4 - **
**Comprehensive      Income**

|                                                                                                                                                |   | Three                Months EndedMarch                31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
| (In                thousands)                                                                                                                       |   | 2006                                                      |   | 2005 |   |
|                                                                                                                                                |   |                                                      |   |   |   |   |   |
| Net                income                                                                                                                           |   | $                                                         | 16,417 |   | $ | 17,307 |   |
|                                                                                                                                                |   |                                                      |   |   |   |   |   |
| Unrealized                holding losses on securities, net of tax (credit) of ($1,500) and                ($4,036), respectively                   |   |                                                      | (2,785 | ) |   | (7,495 | ) |
| Reclassification                adjustment for gains included in net income, net of tax of $22 and                $152,                respectively |   |                                                      | (40    | ) |   | (283 | ) |
| Net                unrealized losses on securities, net of tax                                                                                      |   |                                                      | (2,825 | ) |   | (7,778 | ) |
| Comprehensive                income                                                                                                                 |   | $                                                         | 13,592 |   | $ | 9,529 |   |

----

**Note      5 - **
**Intangible      Assets**

| (In                thousands)                 |   | March                31, 2006 |   | December                31, 2005 |   |
|-----------------------------------------------|--------|-------------------------------|--------|----------------------------------|--------|
| Core                Deposit Intangible Asset: |   |                          |   |                             |   |   |   |
| Gross                carrying amount          |   | $                             | 10,883 |                             | $      | 10,883 |   |
| Accumulated                amortization       |   |                          | 8,089  |                             |   | 7,880 |   |
| Net                book value                 |   | $                             | 2,794  |                             | $      | 3,003 |   |

**Note      6 - **
**Earnings      Per Share**

|                                                                                                                                    |   | Three                Months Ended March                31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
| (In                thousands, except per share data)                                                                                    |   | 2006                                                       |   | 2005(1) |   |
| Numerator                for basic and diluted earnings per share:                                                                      |   |                                                       |   |   |   |   |   |
| Net                income                                                                                                               |   | $                                                          | 16,417 |   | $ | 17,307 |   |
|                                                                                                                                    |   |                                                       |   |   |   |   |   |
| Denominator                for basic earnings per share - weighted-average shares                                                       |   |                                                       | 74,862 |   |   | 77,433 |   |
| Effect                of dilutive securities:                                                                                           |   |                                                       |   |   |   |   |   |
| Stock                options                                                                                                            |   |                                                       | 638    |   |   | 824 |   |
| Warrants                                                                                                                                |   |                                                       | 52     |   |   | 65 |   |
| Dilutive                potential common shares                                                                                         |   |                                                       | 690    |   |   | 889 |   |
| Denominator                for diluted earnings per share—adjusted weighted-average shares for                assumed conversions |   |                                                       | 75,552 |   |   | 78,322 |   |
|                                                                                                                                    |   |                                                       |   |   |   |   |   |
| Basic                earnings per share                                                                                                 |   | $                                                          | .22    |   | $ | .22 |   |
| Diluted                earnings per share                                                                                               |   | $                                                          | .22    |   | $ | .22 |   |
|                                                                                                                                    |   |                                                       |   |   |   |   |   |

----

**Note      7 - **
**Segment      Information**

|                                                         |   |       |    |   |   |     |   |                                             |    |         |   |
|--------------------------------------------------------------|--------|------------|---------|--------|--------|----------|--------|--------------------------------------------------|---------|--------------|--------|
| (In                thousands)                                |   | Commercial |    | Retail |   | Mortgage |   | Treasury                and                Other |    | Consolidated |   |
| **For                the Three Months Ended March 31, 2006** |   |       |    |   |   |     |   |                                             |    |         |   |   |   |   |   |   |
| Net                interest income from external customers   |   | $          | 30,730  |   | $      | (8,392   | )      | $                                                | 2,393   |         | $      | 13,957 |   | $ | 38,688 |   |
| Internal                funding                              |   |       | (13,335 | )      |   | 33,669   |   |                                             | (1,398  | )            |   | (18,936 | ) |   | - |   |
| Net                interest income                           |   |       | 17,395  |   |   | 25,277   |   |                                             | 995     |         |   | (4,979 | ) |   | 38,688 |   |
| Provision                for loan losses                     |   |       | 686     |   |   | 100      |   |                                             | 95      |         |   | 519 |   |   | 1,400 |   |
| Noninterest                income                            |   |       | 948     |   |   | 3,050    |   |                                             | 2,918   |         |   | 363 |   |   | 7,279 |   |
| Noninterest                expense                           |   |       | 2,977   |   |   | 7,932    |   |                                             | 4,308   |         |   | 5,755 |   |   | 20,972 |   |
| Income                before taxes                           |   |       | 14,680  |   |   | 20,295   |   |                                             | (490    | )            |   | (10,890 | ) |   | 23,595 |   |
| Income                taxes                                  |   |       | 5,138   |   |   | 7,103    |   |                                             | (171    | )            |   | (4,892 | ) |   | 7,178 |   |
| Net                income                                    |   | $          | 9,542   |   | $      | 13,192   |   | $                                                | (319    | )            | $      | (5,998 | ) | $ | 16,417 |   |
|                                                         |   |       |    |   |   |     |   |                                             |    |         |   |   |   |   |   |   |
| Depreciation                and amortization                 |   | $          | 18      |   | $      | 683      |   | $                                                | 316     |         | $      | 583 |   | $ | 1,600 |   |
| Capital                expenditures                          |   | $          | 1       |   | $      | 1,387    |   | $                                                | 72      |         | $      | 83 |   | $ | 1,543 |   |
| Net                identifiable assets (in millions)         |   | $          | 1,735   |   | $      | 2,793    |   | $                                                | 170     |         | $      | 1,546 |   | $ | 6,244 |   |
| Return                on equity(1)                           |   |       | 22.33   | %      |   | 39.58    | %      |                                             | (14.17) | %            |   | n/m |   |   | 16.01 | % |
| Return                on assets                              |   |       | 2.23    | %      |   | 1.88     | %      |                                             | (0.71)  | %            |   | n/m |   |   | 1.07 | % |
| Efficiency                ratio                              |   |       | 16.23   | %      |   | 28.00    | %      |                                             | 110.09  | %            |   | n/m |   |   | 44.85 | % |

| (In                thousands)                                |   | Commercial |   | Retail |   | Mortgage |   | Treasury                and                Other |   | Consolidated |   |
|--------------------------------------------------------------|--------|------------|--------|--------|--------|----------|--------|--------------------------------------------------|--------|--------------|--------|
| **For                the Three Months Ended March 31, 2005** |   |       |   |   |   |     |   |                                             |   |         |   |   |   |   |   |   |
| Net                interest income from external customers   |   | $          | 24,226 |   | $      | (6,200   | )      | $                                                | 3,221  |         | $      | 17,081 |   | $ | 38,328 |   |
| Internal                funding                              |   |       | (9,791 | )      |   | 31,696   |   |                                             | (1,867 | )            |   | (20,038 | ) |   | - |   |
| Net                interest income                           |   |       | 14,435 |   |   | 25,496   |   |                                             | 1,354  |         |   | (2,957 | ) |   | 38,328 |   |
| Provision                for loan losses                     |   |       | 752    |   |   | 282      |   |                                             | 75     |         |   | 391 |   |   | 1,500 |   |
| Noninterest                income                            |   |       | 705    |   |   | 2,787    |   |                                             | 5,055  |         |   | 2,491 |   |   | 11,038 |   |
| Noninterest                expense                           |   |       | 2,940  |   |   | 8,001    |   |                                             | 4,921  |         |   | 7,010 |   |   | 22,872 |   |
| Income                before taxes                           |   |       | 11,448 |   |   | 20,000   |   |                                             | 1,413  |         |   | (7,867 | ) |   | 24,994 |   |
| Income                taxes                                  |   |       | 4,007  |   |   | 7,000    |   |                                             | 495    |         |   | (3,815 | ) |   | 7,687 |   |
| Net                income                                    |   | $          | 7,441  |   | $      | 13,000   |   | $                                                | 918    |         | $      | (4,052 | ) | $ | 17,307 |   |
|                                                         |   |       |   |   |   |     |   |                                             |   |         |   |   |   |   |   |   |
| Depreciation                and amortization                 |   | $          | 29     |   | $      | 742      |   | $                                                | 424    |         | $      | 1,110 |   | $ | 2,305 |   |
| Capital                expenditures                          |   | $          | 19     |   | $      | 374      |   | $                                                | 19     |         | $      | 233 |   | $ | 645 |   |
| Net                identifiable assets (in millions)         |   | $          | 1,580  |   | $      | 2,889    |   | $                                                | 202    |         | $      | 1,253 |   | $ | 5,924 |   |
| Return                on equity(1)                           |   |       | 18.98  | %      |   | 37.69    | %      |                                             | 30.51  | %            |   | n/m |   |   | 16.76 | % |
| Return                on assets                              |   |       | 1.90   | %      |   | 1.79     | %      |                                             | 1.53   | %            |   | n/m |   |   | 1.19 | % |
| Efficiency                ratio                              |   |       | 19.42  | %      |   | 28.29    | %      |                                             | 76.78  | %            |   | n/m |   |   | 45.96 | % |

| (1) | Capital                is allocated as a percentage of assets of 10% and 5% for the commercial                and mortgage banking segments, respectively and is allocated as a                percentage of deposits of 5% for the retail segment. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| n/m | ¾                Not meaningful                                                                                                                                                                                                                |

----

**Note      8 - **
**Stock      Based Compensation**

*Accounting      for Stock-Based Compensation*
*Accounting      for Stock-Based Compensation - Transition and Disclosure,*
*Share-Based      Payment *

----

**Note      8 - **
**Stock      Based Compensation (Continued)**

|  Three                Months Ended                                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                    |   | March                31 |
| (Dollars                in thousands, except per share data)                                                                                                                                            |   | 2005 |   |
|                                                                                                                                                                                                    |   |   |   |   |
| Net                income (as reported)                                                                                                                                                                 |   | $ | 17,307 |   |
| Add:                Stock-based employee compensation expense included in reported net                income,                net of related tax effects                                                 |   |   | 337 |   |
| Deduct:                Total stock-based employee compensation expense determined under                fair                value based method for all awards, net of related tax                effects |   |   | (418 | ) |
| Net                income (pro forma)                                                                                                                                                                   |   | $ | 17,226 |   |
|                                                                                                                                                                                                    |   |   |   |   |
| Basic                earnings per share (as reported)                                                                                                                                                   |   | $ | .22 |   |
| Basic                earnings per share (pro forma)                                                                                                                                                     |   |   | .22 |   |
|                                                                                                                                                                                                    |   |   |   |   |
| Diluted                earnings per share (as reported)                                                                                                                                                 |   | $ | .22 |   |
| Diluted                earnings per share (pro forma)                                                                                                                                                   |   |   | .22 |   |
|                                                                                                                                                                                                    |   |   |   |   |

*Stock      Options*

|                                            |   |                     |      |      |   |
|-------------------------------------------------|--------|--------------------------|-----------|-----------|--------|
|                                            |   |                     |      |      |   | Weighted |   |   |   |
|                                            |   |                     |      | Weighted- |   | Average |   | Aggregate |   |
|                                            |   |                     |      | Average   |   | Remaining |   | Intrinsic |   |
|                                            |   | Number                of |      | Exercise  |   | Contractual |   | Value |   |
|                                            |   | Options                  |      | Price     |   | Term |   | (in                thousands) |   |
| Outstanding                at January 1, 2006   |   |                     | 2,367,472 |      | $      | 7.05 |   |   |   |   |   |   |   |
| Granted                                         |   |                     | -         |      |   | - |   |   |   |   |   |   |   |
| Exercised                                       |   |                     | (59,598   | )         |   | 4.96 |   |   |   |   |   |   |   |
| Forfeited,                cancelled and expired |   |                     | (4,132    | )         |   | 8.25 |   |   |   |   |   |   |   |
| Outstanding                at March 31, 2006    |   |                     | 2,303,742 |      | $      | 7.10 |   |   | 3.7 |   | $ | 11,375 |   |
| Exercisable                at March 31, 2006    |   |                     | 2,296,387 |      | $      | 7.09 |   |   | 3.7 |   | $ | 11,367 |   |

----

**Note      8 - **
**Stock      Based Compensation (Continued)**

*Stock      Warrants*

*Incentive      Stock Plan*

|                                        |   |   |     |                      |   |
|---------------------------------------------|--------|--------|----------|---------------------------|--------|
|                                        |   |   |     | Weighted-Average          |   |
|                                        |   |   |     | Grant                Date |   |
|                                        |   | Shares |     | Fair                Value |   |
| Nonvested                at January 1, 2006 |   |   | 795,998  |                      | $      | 11.811 |   |
| Granted                                     |   |   | 91,144   |                      |   | 12.270 |   |
| Vested                                      |   |   | (118,366 | )                         |   | 12.817 |   |
| Forfeited                                   |   |   | (10,327  | )                         |   | 11.809 |   |
| Nonvested                at March 31, 2006  |   |   | 758,449  |                      | $      | 11.709 |   |

*Stock      Repurchases*

**Note      9 - **
**Off-Balance      Sheet Instruments**

----

**Note      9 - Off-Balance Sheet Instruments (Continued)**

|                                                                                                            |   |                         |    |                            |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
| (In                thousands)                                                                                   |   | March                31,2006 |    | December                31,2005 |   |
| Financial                instruments whose contract amounts represent credit risk:                              |   |                         |    |                            |   |   |   |
| Commitments                to fund residential real estate loans                                                |   | $                            | 155,372 |                            | $      | 201,846 |   |
| Commitments                to fund commercial real estate construction loans and lines of                credit |   |                         | 347,482 |                            |   | 375,054 |   |
| Commitments                to fund the pipeline of commercial real estate loans                                 |   |                         | 160,539 |                            |   | 225,878 |   |
| Other                unused commitments to extend credit                                                        |   |                         | 418,378 |                            |   | 418,158 |   |
| Standby                letters of credit                                                                        |   |                         | 119,665 |                            |   | 125,338 |   |

**Note      10 - **
**Legal      Proceedings**

----

**ITEM      2: Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**EARNINGS      PERFORMANCE**

**RESULTS      OF OPERATIONS**

**Net      Interest Income**

----

**Net      Interest Income (Continued**
**)**

|                                                                      |   | Three                Months EndedMarch                31, 2006 |      | Three                Months EndedMarch                31, 2005 |   |
|---------------------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|----------------------------------------------------------------|--------|
| (Dollars                in thousands)                                     |   | Average                Balance                                 |      | Interest                                                       |   | Average                Rate |   | Average                Balance |   | Interest |   | Average                Rate |   |
| **Average                Assets:**                                        |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term                investments                                     |   | $                                                              | 345       |                                                           | $      | 7 |   |   | 4.74 | % | $ | 2,067 |   | $ | 9 |   |   | 1.67 | % |
| Mortgage                loans held for sale                               |   |                                                           | 26,143    |                                                           |   | 391 |   |   | 5.98 |   |   | 113,635 |   |   | 1,662 |   |   | 5.85 |   |
| Securities                available for sale: (1)                    |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                   |   |                                                           | 689,286   |                                                           |   | 8,470 |   |   | 4.92 |   |   | 529,900 |   |   | 5,980 |   |   | 4.51 |   |
| Tax-exempt                                                                |   |                                                           | 216,959   |                                                           |   | 2,878 |   |   | 5.38 |   |   | 199,848 |   |   | 2,702 |   |   | 5.48 |   |
| Securities                held to maturity                                |   |                                                           | 225,140   |                                                           |   | 2,699 |   |   | 4.80 |   |   | 234,708 |   |   | 2,691 |   |   | 4.59 |   |
| Portfolio                loans:                (2)                        |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                      loans                                     |   |                                                           | 1,729,667 |                                                           |   | 30,982 |   |   | 7.16 |   |   | 1,586,114 |   |   | 24,470 |   |   | 6.17 |   |
| Residential                real estate mortgage loans                     |   |                                                           | 2,217,643 |                                                           |   | 29,846 |   |   | 5.38 |   |   | 2,120,187 |   |   | 27,506 |   |   | 5.19 |   |
| Installment                loans                                          |   |                                                           | 730,204   |                                                           |   | 12,940 |   |   | 7.19 |   |   | 736,509 |   |   | 10,826 |   |   | 5.96 |   |
| Total                loans, net of unearned income                        |   |                                                           | 4,677,514 |                                                           |   | 73,768 |   |   | 6.32 |   |   | 4,442,810 |   |   | 62,802 |   |   | 5.67 |   |
| Federal                Home Loan Bank stock (at cost)                     |   |                                                           | 80,525    |                                                           |   | 1,045 |   |   | 5.26 |   |   | 80,712 |   |   | 827 |   |   | 4.15 |   |
| Total                interest-earning assets                              |   |                                                           | 5,915,912 |                                                           |   | 89,258 |   |   | 6.05 |   |   | 5,603,680 |   |   | 76,673 |   |   | 5.49 |   |
| Allowance                for loan losses                                  |   |                                                           | (42,558   | )                                                              |   |   |   |   |   |   |   | (41,762 | ) |   |   |   |   |   |   |
| Cash                and due from banks                                    |   |                                                           | 43,017    |                                                           |   |   |   |   |   |   |   | 51,151 |   |   |   |   |   |   |   |
| Other                assets                                               |   |                                                           | 230,610   |                                                           |   |   |   |   |   |   |   | 206,811 |   |   |   |   |   |   |   |
| Total                assets                                               |   | $                                                              | 6,146,981 |                                                           |   |   |   |   |   |   | $ | 5,819,880 |   |   |   |   |   |   |   |
|                                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Average                Liabilities and Shareholders’ Equity:**    |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                demand deposits                           |   | $                                                              | 182,446   |                                                           | $      | 280 |   |   | 0.62 | % | $ | 200,481 |   | $ | 222 |   |   | 0.45 | % |
| Savings                and money market accounts                          |   |                                                           | 879,098   |                                                           |   | 4,407 |   |   | 2.03 |   |   | 1,072,178 |   |   | 4,130 |   |   | 1.56 |   |
| Retail                certificates of deposit                             |   |                                                           | 1,135,957 |                                                           |   | 10,181 |   |   | 3.63 |   |   | 915,071 |   |   | 7,008 |   |   | 3.11 |   |
| Wholesale                deposits                                         |   |                                                           | 608,020   |                                                           |   | 6,494 |   |   | 4.33 |   |   | 552,336 |   |   | 3,828 |   |   | 2.81 |   |
| Total                interest-bearing deposits                            |   |                                                           | 2,805,521 |                                                           |   | 21,362 |   |   | 3.09 |   |   | 2,740,066 |   |   | 15,188 |   |   | 2.25 |   |
| Short-term                borrowings                                      |   |                                                           | 1,066,323 |                                                           |   | 11,470 |   |   | 4.30 |   |   | 893,359 |   |   | 5,620 |   |   | 2.52 |   |
| Long-term                FHLB advances and security repurchase agreements |   |                                                           | 1,502,914 |                                                           |   | 15,804 |   |   | 4.21 |   |   | 1,411,945 |   |   | 15,630 |   |   | 4.43 |   |
| Long-term                debt                                             |   |                                                           | 50,000    |                                                           |   | 1,075 |   |   | 8.60 |   |   | 50,000 |   |   | 1,075 |   |   | 8.60 |   |
| Total                interest-bearing liabilities                         |   |                                                           | 5,424,758 |                                                           |   | 49,711 |   |   | 3.69 |   |   | 5,095,370 |   |   | 37,513 |   |   | 2.96 |   |
| Noninterest-bearing                deposits                               |   |                                                           | 264,615   |                                                           |   |   |   |   |   |   |   | 270,015 |   |   |   |   |   |   |   |
| Other                liabilities                                          |   |                                                           | 47,305    |                                                           |   |   |   |   |   |   |   | 41,445 |   |   |   |   |   |   |   |
| Total                liabilities                                          |   |                                                           | 5,736,678 |                                                           |   |   |   |   |   |   |   | 5,406,830 |   |   |   |   |   |   |   |
| Shareholders’                equity                                 |   |                                                           | 410,303   |                                                           |   |   |   |   |   |   |   | 413,050 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders’ equity           |   | $                                                              | 6,146,981 |                                                           |   |   |   |   |   |   | $ | 5,819,880 |   |   |   |   |   |   |   |
|                                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income/rate spread (FTE)                      |   |                                                           |      |                                                           | $      | 39,547 |   |   | 2.36 | % |   |   |   | $ | 39,160 |   |   | 2.53 | % |
|                                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FTE                adjustment                                             |   |                                                           |      |                                                           | $      | 859 |   |   |   |   |   |   |   | $ | 832 |   |   |   |   |
|                                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impact                of noninterest-                                     |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| bearing                sources of funds                                   |   |                                                           |      |                                                           |   |   |   |   | 0.31 | % |   |   |   |   |   |   |   | 0.26 | % |
|                                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin (FTE)                                  |   |                                                           |      |                                                           |   |   |   |   | 2.67 | % |   |   |   |   |   |   |   | 2.79 | % |
|                                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | To                compare the tax-exempt asset yields to taxable yields, amounts are                adjusted to pretax equivalents based on the marginal corporate Federal                tax                rate of 35%. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Non-accrual                loans and overdrafts are included in average                balances.                                                                                                                          |

----

**Net      Interest Income (Continued**
**)**

|                                                                      |   |      |   |    |   |                      |   |
|---------------------------------------------------------------------------|--------|-----------|--------|---------|--------|---------------------------|--------|
| Increase                (decrease) due to change in:                      |   | Volume(1) |   | Rate(1) |   | Net                Change |   |
|                                                                      |   |      |   |    |   |                      |   |
| **Interest                Income:**                                       |   |      |   |    |   |                      |   |   |   |   |
| Short-term                investments                                     |   | $         | (10    | )       | $      | 8                         |   | $ | (2 | ) |
| Mortgage                loans held for sale                               |   |      | (1,307 | )       |   | 36                        |   |   | (1,271 | ) |
| Securities                available for sale:                             |   |      |   |    |   |                      |   |   |   |   |
| Taxable                                                                   |   |      | 1,912  |    |   | 578                       |   |   | 2,490 |   |
| Tax-exempt                                                                |   |      | 227    |    |   | (51                       | )      |   | 176 |   |
| Securities                held to maturity                                |   |      | (112   | )       |   | 120                       |   |   | 8 |   |
| Portfolio                loans:                (2)                        |   |      |   |    |   |                      |   |   |   |   |
| Commercial                loans                                           |   |      | 2,348  |    |   | 4,164                     |   |   | 6,512 |   |
| Residential                real estate mortgage loans                     |   |      | 1,302  |    |   | 1,038                     |   |   | 2,340 |   |
| Installment                loans                                          |   |      | (96    | )       |   | 2,210                     |   |   | 2,114 |   |
| Total                loans, net of unearned income                        |   |      | 3,554  |    |   | 7,412                     |   |   | 10,966 |   |
| Federal                Home Loan Bank stock (at cost)                     |   |      | (2     | )       |   | 220                       |   |   | 218 |   |
| Total                interest income                                      |   |      | 4,262  |    |   | 8,323                     |   |   | 12,585 |   |
|                                                                      |   |      |   |    |   |                      |   |   |   |   |
| **Interest                Expense:**                                      |   |      |   |    |   |                      |   |   |   |   |
| Interest-bearing                demand deposits                           |   |      | (21    | )       |   | 79                        |   |   | 58 |   |
| Savings                and money market                                   |   |      | (839   | )       |   | 1,116                     |   |   | 277 |   |
| Retail                certificates of deposit                             |   |      | 1,874  |    |   | 1,299                     |   |   | 3,173 |   |
| Wholesale                deposits                                         |   |      | 419    |    |   | 2,247                     |   |   | 2,666 |   |
| Total                interest-bearing deposits                            |   |      | 1,433  |    |   | 4,741                     |   |   | 6,174 |   |
| Short-term                borrowings                                      |   |      | 1,259  |    |   | 4,591                     |   |   | 5,850 |   |
| Long-term                FHLB advances and security repurchase agreements |   |      | 975    |    |   | (801                      | )      |   | 174 |   |
| Long-term                debt                                             |   |      | -      |    |   | -                         |   |   | - |   |
| Total                interest expense                                     |   |      | 3,667  |    |   | 8,531                     |   |   | 12,198 |   |
| Net                interest income (FTE)                                  |   | $         | 595    |    | $      | (208                      | )      | $ | 387 |   |

| (1) | Variances                attributable jointly to volume and rate changes are allocated to                volume                and rate in proportion to the relationship of the absolute dollar                amount                of the change in each. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Non-accrual                loans and overdrafts are included in average                balances.                                                                                                                                                             |

----

**Noninterest      Income**

**Mortgage      Banking Income**

*Accounting      for Nonrefundable Fees and Costs Associated with Originating or*
*Acquiring      Loans and Initial Direct Costs of Leases*

----

**Noninterest      Expense**

**BALANCE      SHEET ANALYSIS**

**ASSETS**

**Investment      Securities**

|                                                                 |   | Investment                Securities |    |
|----------------------------------------------------------------------|--------|--------------------------------------|---------|
| (In                thousands)                                        |   | Gross                Amortized Cost  |    | Gross                Unrealized Gains |   | Gross                Unrealized Losses |   | Fair                Value |   |
| Securities                Available For Sale (Estimated Fair Value): |   |                                 |    |   |   |   |   |   |   |   |   |   |   |
| U.S.                Government agency securities                     |   | $                                    | 351,751 |   | $ | - |   | $ | 8,389 |   | $ | 343,362 |   |
| Collateralized                mortgage obligations                   |   |                                 | 275,240 |   |   | 211 |   |   | 6,808 |   |   | 268,643 |   |
| Mortgage-backed                securities                            |   |                                 | 101,029 |   |   | 4 |   |   | 2,536 |   |   | 98,497 |   |
| Municipal                and other securities                        |   |                                 | 219,018 |   |   | 67 |   |   | 2,675 |   |   | 216,410 |   |
| Total                securities available for sale                   |   | $                                    | 947,038 |   | $ | 282 |   | $ | 20,408 |   | $ | 926,912 |   |
|                                                                 |   |                                 |    |   |   |   |   |   |   |   |   |   |   |
| Securities                Held To Maturity (At Cost):                |   |                                 |    |   |   |   |   |   |   |   |   |   |   |
| Collateralized                mortgage obligations                   |   | $                                    | 189,356 |   | $ | 16 |   | $ | 7,005 |   | $ | 182,367 |   |
| Mortgage-backed                securities                            |   |                                 | 32,857  |   |   | - |   |   | 1,053 |   |   | 31,804 |   |
| Total                securities held to maturity                     |   | $                                    | 222,213 |   | $ | 16 |   | $ | 8,058 |   | $ | 214,171 |   |

----

**Investment      Securities (continued) **

**Federal      Home Loan Bank Stock**

**Mortgage      Loans Held for Sale**

**Portfolio      Loans **

|                                             |   | March                31, 2006 |      | December                31, 2005 |   |
|--------------------------------------------------|--------|-------------------------------|-----------|----------------------------------|--------|
| (Dollars                in thousands)            |   | Amount                        |      | Percent                          |   | Amount |   | Percent |   |
| Commercial                loans:                 |   |                          |      |                             |   |   |   |   |   |   |   |   |   |
| Commercial                and industrial         |   | $                             | 27,639    |                             |   | 0.6 | % | $ | 28,314 |   |   | 0.6 | % |
| Real                estate construction          |   |                          | 397,861   |                             |   | 8.4 |   |   | 360,999 |   |   | 7.8 |   |
| Commercial                real estate mortgage   |   |                          | 1,328,928 |                             |   | 28.0 |   |   | 1,308,557 |   |   | 28.3 |   |
| Total                commercial loans            |   |                          | 1,754,428 |                             |   | 37.0 |   |   | 1,697,870 |   |   | 36.7 |   |
| Residential                real estate mortgages |   |                          | 2,267,385 |                             |   | 47.8 |   |   | 2,193,128 |   |   | 47.4 |   |
| Installment                loans:                |   |                          |      |                             |   |   |   |   |   |   |   |   |   |
| Home                equity lines of credit       |   |                          | 371,955   |                             |   | 7.8 |   |   | 390,373 |   |   | 8.4 |   |
| Home                equity term loans            |   |                          | 179,578   |                             |   | 3.8 |   |   | 170,352 |   |   | 3.7 |   |
| Other                consumer loans              |   |                          | 173,624   |                             |   | 3.6 |   |   | 176,535 |   |   | 3.8 |   |
| Total                installment loans           |   |                          | 725,157   |                             |   | 15.2 |   |   | 737,260 |   |   | 15.9 |   |
| Total                portfolio loans             |   | $                             | 4,746,970 |                             |   | 100.0 | % | $ | 4,628,258 |   |   | 100.0 | % |

----

**Credit      Quality**

**Non-Performing      Assets**

|                                                     |   | March                31, |   | December                31, |   |
|----------------------------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
| (Dollars                in thousands)                    |   | 2006                     |   | 2005                        |   |
| Non-Performing                Assets:                    |   |                     |   |                        |   |
| Non-accrual                loans:                        |   |                     |   |                        |   |   |   |
| Commercial                                               |   | $                        | 26,395 |                        | $      | 27,344 |   |
| Residential                real estate mortgages         |   |                     | 21,484 |                        |   | 19,026 |   |
| Installment                                              |   |                     | 1,758  |                        |   | 2,413 |   |
| Total                non-accrual loans                   |   |                     | 49,637 |                        |   | 48,783 |   |
| Other                real estate owned:                  |   |                     |   |                        |   |   |   |
| Commercial                                               |   |                     | 6,287  |                        |   | 8,575 |   |
| Residential                real estate mortgages         |   |                     | 4,856  |                        |   | 3,029 |   |
| Installment                                              |   |                     | 1,449  |                        |   | 712 |   |
| Total                other real estate owned             |   |                     | 12,592 |                        |   | 12,316 |   |
| Total                non-performing assets               |   | $                        | 62,229 |                        | $      | 61,099 |   |
|                                                     |   |                     |   |                        |   |   |   |
| Non-performing                assets as a percentage of: |   |                     |   |                        |   |   |   |
| Portfolio                loans and OREO                  |   |                     | 1.31   | %                           |   | 1.32 | % |
| Total                assets                              |   |                     | 1.00   | %                           |   | 1.00 | % |

----

**Allowance      for Loan Losses and Impaired Loans**

*Accounting      for Contingencies, *
*Accounting      By Creditors for Impairment of a Loan*

|                                                                                                                                      |   | Three                Months Ended March                31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
| (Dollars                in thousands)                                                                                                     |   | 2006                                                       |   | 2005 |   |
| Allowance                for loan losses:                                                                                                 |   |                                                       |   |   |   |   |   |
| Balance                at January 1                                                                                                       |   | $                                                          | 42,122 |   | $ | 41,818 |   |
| Loans                charged off                                                                                                          |   |                                                       | (1,720 | ) |   | (1,700 | ) |
| Recoveries                of loans previously charged off                                                                                 |   |                                                       | 540    |   |   | 237 |   |
| Net                charge-offs                                                                                                            |   |                                                       | (1,180 | ) |   | (1,463 | ) |
| Provision                charged to expense                                                                                               |   |                                                       | 1,400  |   |   | 1,500 |   |
| Balance                at March 31                                                                                                        |   | $                                                          | 42,342 |   | $ | 41,855 |   |
|                                                                                                                                      |   |                                                       |   |   |   |   |   |
| Annualized                net charge-offs as a percentage of average loans                                                                |   |                                                       | .10    | % |   | .13 | % |
| Allowance                for loan losses as a percentage of total portfolio loans outstanding                at                period-end |   |                                                       | .89    | % |   | .93 | % |
| Allowance                for loan losses as a percentage of non-performing loans                                                          |   |                                                       | 85.30  | % |   | 129.34 | % |

----

**Allowance      for Loan Losses and Impaired Loans (Continued**
**)**

|                                                                    |   |                     |   |                        |   |
|-------------------------------------------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
|                                                                    |   | March                31, |   | December                31, |   |
| (In                thousands)                                           |   | 2006                     |   | 2005                        |   |
|                                                                    |   |                     |   |                        |   |   |   |
| Gross                recorded investment in impaired loans (period-end) |   | $                        | 26,395 |                        | $      | 27,344 |   |
| Impaired                loans requiring a specific allocated allowance  |   |                     | 21,252 |                        |   | 21,625 |   |
| Specific                impairment allowance                            |   |                     | 5,834  |                        |   | 5,332 |   |
|                                                                    |   |                     |   |                        |   |   |   |

**Bank      Owned Life Insurance**

**LIABILITIES**

**Deposits**

**Short-Term      Borrowings**

|                                          |   | March                31, 2006 |    | December                31, 2005 |   |
|-----------------------------------------------|--------|-------------------------------|---------|----------------------------------|--------|
| (Dollars                in thousands)         |   | EndingBalance                 |    | AverageBalance                   |   | AverageRate                DuringPeriod |   | EndingBalance |   | AverageBalance |   | AverageRate                DuringYear |   |
| Federal                funds purchased        |   | $                             | 531,000 |                             | $      | 554,839 |   |   | 4.55 | % | $ | 472,000 |   | $ | 457,625 |   |   | 3.41 | % |
| Security                repurchase agreements |   |                          | 187,153 |                             |   | 223,017 |   |   | 3.26 |   |   | 237,300 |   |   | 268,056 |   |   | 3.11 |   |
| Total                short-term borrowings    |   | $                             | 718,153 |                             | $      | 777,856 |   |   | 4.18 | % | $ | 709,300 |   | $ | 725,681 |   |   | 3.30 | % |

----

**Short-Term      FHLB Advances**

|                                    |   | March                31, 2006 |    | December                31, 2005 |   |
|-----------------------------------------|--------|-------------------------------|---------|----------------------------------|--------|
| (Dollars                in thousands)   |   | EndingBalance                 |    | AverageBalance                   |   | AverageRate                DuringPeriod |   | EndingBalance |   | AverageBalance |   | AverageRate                DuringYear |   |
| Short-term                FHLB advances |   | $                             | 375,000 |                             | $      | 288,467 |   |   | 4.63 | % | $ | 218,000 |   | $ | 234,930 |   |   | 3.40 | % |

**Long-term      FHLB Advances and Security Repurchase Agreements**

|                                                      |   | March                31, 2006 |      | December                31, 2005        |   |
|-----------------------------------------------------------|--------|-------------------------------|-----------|-----------------------------------------|--------|
| (Dollars                in thousands)                     |   | EndingBalance                 |      | AverageRate                AtPeriod-End |   | EndingBalance |   | AverageRate                AtYear-End |   |
| Long-term                FHLB advances:                   |   |                          |      |                                    |   |   |   |   |   |   |   |   |   |
| Bullet                advances                            |   | $                             | 222,874   |                                    |   | 3.75 | % | $ | 226,748 |   |   | 3.77 | % |
| Putable                advances                           |   |                          | 750,000   |                                    |   | 4.85 |   |   | 750,000 |   |   | 4.85 |   |
| Total                long-term FHLB advances              |   |                          | 972,874   |                                    |   | 4.60 |   |   | 976,748 |   |   | 4.59 |   |
| Long-term                security repurchase agreements   |   |                          | 574,197   |                                    |   | 3.39 |   |   | 512,684 |   |   | 3.10 |   |
| Total                long-term FHLB advances and security |   |                          |      |                                    |   |   |   |   |   |   |   |   |   |
| repurchase                agreements                      |   | $                             | 1,547,071 |                                    |   | 4.15 | % | $ | 1,489,432 |   |   | 4.08 | % |

**CAPITAL**

----

**CAPITAL      (Continued)**

|                                                      |   | March                31, 2006 |   | December                31,2005 |   |
|-----------------------------------------------------------|--------|-------------------------------|--------|---------------------------------|--------|
| Total                capital to risk-weighted assets (1)  |   |                          | 12.18  | %                               |   | 12.32 | % |
| Tier                1 capital to risk-weighted assets (1) |   |                          | 11.12  |                            |   | 11.24 |   |
| Tier                1 capital to average assets (1)       |   |                          | 7.58   |                            |   | 7.57 |   |

| (1) | As                defined by the regulations. |
|-----|-----------------------------------------------|

**ACCOUNTING      AND FINANCIAL REPORTING**

----

**FORWARD-LOOKING      STATEMENTS**

| · | significantly                increased competition from banking and non-banking                institutions;                                                                                                                                                                                                                                                                                                                                                                |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | inflation                and changes in the interest rate environment that reduce our margins                or                reduce the fair value of financial instruments;                                                                                                                                                                                                                                                                                              |
| · | general                political, industry and economic conditions, either domestically                or                internationally, that are different than expected;                                                                                                                                                                                                                                                                                                 |
| · | adverse                developments concerning credit quality in our business segments that                may                result in increases in our provisions for loan losses, nonperforming                assets, potential problem loans, net charge-offs and reserve for                credit                losses could cause earnings to decline;                                                                                                             |
| · | instruments,                systems and strategies that are used to hedge or otherwise manage                our                exposure to various types of market, credit, operational and                enterprise-wide risk could be less effective than anticipated, and                we may                not be able to effectively mitigate risk exposures in particular                market                environments or against particular types of risk; |
| · | customer                borrowing, repayment, investment and deposit practices generally                may be                less favorable than anticipated;                                                                                                                                                                                                                                                                                                              |
| · | the                mix of interest rates and maturities of our interest earning assets                and                interest-bearing liabilities (primarily loans and deposits) may be                less                favorable than expected;                                                                                                                                                                                                                     |
| · | interest                rate margin compression may be greater than expected;                                                                                                                                                                                                                                                                                                                                                                                               |
| · | adverse                changes in the securities markets;                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | legislative                or regulatory changes, actions or reinterpretations that adversely                affect                our business;                                                                                                                                                                                                                                                                                                                            |
| · | the                ability to enter new markets successfully and capitalize on growth                opportunities;                                                                                                                                                                                                                                                                                                                                                         |
| · | effects                of and changes in trade, monetary and fiscal policies and laws, including                interest rate policies of the Federal Reserve Board;                                                                                                                                                                                                                                                                                                        |
| · | timely                development of and acceptance of new products and                services;                                                                                                                                                                                                                                                                                                                                                                            |
| · | changes                in consumer spending, borrowing and savings habits;                                                                                                                                                                                                                                                                                                                                                                                                  |
| · | effect                of changes in accounting policies and practices, as may be adopted                by the                bank regulatory agencies, the Financial Accounting Standards Board                or                other regulatory agencies;                                                                                                                                                                                                                |
| · | changes                in our organization, compensation and benefit plans;                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | costs                and effects of new litigation or changes in existing litigation and                unexpected or adverse outcomes in such litigation; and                                                                                                                                                                                                                                                                                                              |
| · | our                success in managing the foregoing factors and the risks associated                with or                inherent in the foregoing.                                                                                                                                                                                                                                                                                                                      |

----

| **ITEM                3:** | **Quantitative                and Qualitative Disclosures About Market                Risk** |
|----------------------------|----------------------------------------------------------------------------------------------|

**MARKET      RISK MANAGEMENT**

**Asset      and Liability Management**

*Static      Gap Analysis:*

*Earnings      Simulation:*

| Change                in market interest rates in basis points                 |   |   | +200  |   |   | +100  |   |   | +50   |   |   | -50  |   |   | -100 |   |   | -200  |   |
|--------------------------------------------------------------------------------|--------|--------|-------|--------|--------|-------|--------|--------|-------|--------|--------|------|--------|--------|------|--------|--------|-------|--------|
| Projected                change in net interest income over next twelve months |   |   | -5.59 | %      |   | -2.30 | %      |   | -1.03 | %      |   | 1.44 | %      |   | 2.26 | %      |   | -1.33 | %      |

----

*Accounting      for Derivative Instruments and Hedging Activities, *

----

|                                                  |   | Year                  of Maturity |   |
|-------------------------------------------------------|--------|-----------------------------------|--------|
| (Dollars                  in thousands)               |   | 2006                              |   | 2007 |   | 2008 |   | Total |   |
| Receive                  fixed/pay floating swaps:(1) |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Notional                  amount                      |   | $                                 | -      |   | $ | 36,300 |   | $ | 37,000 |   | $ | 73,300 |   |
| Fair                  value gain/(loss)               |   |                              | -      |   |   | (1,058 | ) |   | (1,440 | ) |   | (2,498 | ) |
| Weighted                  average:                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Receive                  rate                         |   |                              | -      | % |   | 2.92 | % |   | 3.24 | % |   | 3.08 | % |
| Pay                  rate                             |   |                              | -      |   |   | 4.32 | % |   | 4.95 | % |   | 4.64 | % |
|                                                  |   |                              |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Variable                interest rates - which generally are based on the one-month and                three-month LIBOR in effect on the date of                repricing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **ITEM                4:** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

**Internal      Controls**

**Disclosure      Controls And Procedures**

----

| **PART                II -** | **OTHER                INFORMATION** |
|------------------------------|--------------------------------------|

| Item                1. | Legal                Proceedings |
|------------------------|----------------------------------|

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

|                        Period |   | Total                SharesPurchased |    | Average                Price Paid                Per Share |   | Shares                Purchased as Part of Publicly Announced Plans(1) |   | Maximum                Shares Available to be Purchased Under the Plans(1) |    |
|------------------------------------------------------------------|--------|--------------------------------------|---------|------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|
| 1/1/06                - 1/31/06                                  |   |                                 | 85,000  |                                                       |   | 12.20                                                                  |   |                                                                       | 85,000  |   |   | 977,852 |   |
| 2/1/06                - 2/28/06                                  |   |                                 | 138,700 |                                                       |   | 12.30                                                                  |   |                                                                       | 138,700 |   |   | 839,152 |   |
| 3/1/06                - 3/31/06                                  |   |                                 | 226,000 |                                                       |   | 12.08                                                                  |   |                                                                       | 226,000 |   |   | 613,152 |   |
| Total                                                            |   |                                 | 449,700 |                                                       | $      | 12.17                                                                  |   |                                                                       | 449,700 |   |   | 613,152 |   |

| (1) | On                June 16, 2005, the Board of Directors approved the 2005 Stock Repurchase                Program authorizing the repurchase of up to 2,200,000 shares. There                were                613,152 shares available for repurchase at March 31, 2006 under this                program. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Director                              |   | For    |       | Withheld |   |
|---------------------------------------|--------|--------|------------|----------|--------|
| Jerry                D. Campbell      |   |   | 66,240,330 |     |   | 1,351,573 |   |
| Dana                M. Cluckey        |   |   | 66,618,857 |     |   | 973,047 |   |
| George                J. Butvilas     |   |   | 66,251,170 |     |   | 1,340,733 |   |
| Richard                J. Cramer, Sr. |   |   | 66,657,217 |     |   | 934,686 |   |
| Barry                J. Eckhold       |   |   | 66,214,762 |     |   | 1,377,141 |   |
| Gary                Hurand            |   |   | 65,926,771 |     |   | 1,665,132 |   |
| Dennis                J. Ibold        |   |   | 66,670,025 |     |   | 921,878 |   |
| John                J. Lennon         |   |   | 66,650,978 |     |   | 940,925 |   |
| Kelly                E. Miller        |   |   | 66,662,707 |     |   | 929,196 |   |
| Randolph                P. Piper      |   |   | 67,035,704 |     |   | 556,199 |   |
| Dr.                Isaac J. Powell    |   |   | 66,420,126 |     |   | 1,171,777 |   |
| William                C. Rands III   |   |   | 66,443,304 |     |   | 1,148,599 |   |
| Dr.                Jeoffrey K. Stross |   |   | 66,060,740 |     |   | 1,531,163 |   |
| Steven                E. Zack         |   |   | 67,063,021 |     |   | 528,882 |   |

| Item                6. | Exhibits |
|------------------------|----------|

|   | (12) | Computations                of ratios of earnings to fixed                charges.* |
|--------|------|-------------------------------------------------------------------------------------|

|   | (31)(a) | Certification                of Principal Executive Officer of Republic Bancorp Inc. Pursuant                to 15                U.S.C. 78m(a) or 78o(d) (Section 302 of the Sarbanes-Oxley Act of                2002)* |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (31)(b) | Certification                of Principal Financial Officer of Republic Bancorp Inc. Pursuant                to 15                U.S.C. 78m(a) or 78o(d) (Section 302 of the Sarbanes-Oxley Act of                2002)* |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (32)(a) | Certification                of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350                (Section                906 of the Sarbanes-Oxley Act of                2002).* |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (32)(b) | Certification                of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350                (Section                906 of the Sarbanes-Oxley Act 0f                2002)* |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURE**

|                             |   | REPUBLIC                BANCORP INC. |                                                                                                                                                                       |
|----------------------------------|--------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |   | (Registrant)                         |                                                                                                                                                                       |
|                             |   |                                 |                                                                                                                                                                       |   |
|                             |   |                                 |                                                                                                                                                                       |   |
| Date:                May 9, 2006 |   | BY:                                  | /s/                Thomas F. Menacher                                                                                                                                      |   |
|                             |   |                                 | Thomas                F. MenacherExecutive                Vice President, Treasurer and Chief Financial Officer(Principal                Financial and Accounting Officer) |   |

----