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Republic Refund Transfers Boomed

RepublicRepublic Bancorp said its refund transfer business boomed in the first quarter March 31 as the dollar volume or tax refunds processed increased by 77 percent over the year-ago quarter. The company's net income was up 28 percent while refund transfer fees rose by 20 percent.

The company recognized $14.4 million in such fees, collected by Republic Bank & Trust, during the most recently ended period, up from just over $12 million a year ago. Republic said that increase stemmed from a "rise in self-prepared, on-line product volume in combination with growth in retail store-front traffic as the result of new contracts between the Company and third-party tax preparation companies."

One of the contracts was probably a two-year agreement with Jackson Hewitt Tax Services. The two parties reached the agreement after arbitration over Jackson Hewitt's termination of a prior contract in 2012. The tax services chain took that action after Republic, the last company providing refund anticipation loans, was forced out of that market by federal bank regulators.

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