|
ANNUAL REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (THE “EXCHANGE
ACT”)
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Pennsylvania
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23-2486815
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
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(I.R.S.
Employer Identification No.)
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|
50
South 16
th
Street, Suite 2400, Philadelphia, PA
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19102
|
|
(Address
of Principal Executive offices)
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(Zip
Code)
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Common
Stock, $0.01 par value
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The
Nasdaq Stock Market
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|
(Title of each class)
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(Name of each exchange on which
registered)
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Large
accelerated filer ____
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Accelerated
filer
X
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Non-accelerated
filer ____
(Do
not check if a smaller reporting company)
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Smaller
Reporting Company _____
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Common
Stock $0.01 Par Value
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10,665,635
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|
Title
of Class
|
Number
of Shares Outstanding as of March 15,
2010
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PART I
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Page
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Item
1
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Business
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Item
1A
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Risk
Factors
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Item
1B
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Unresolved
Staff Comments
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Item
2
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Properties
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Item
3
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Legal
Proceedings
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Item
4
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Removed
and Reserved
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PART II
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||
Item
5
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Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
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Item
6
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Selected
Financial Data
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Item
7
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Management’s
Discussion and Analysis of
Financial Condition
and
Results of
Operations
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Item
7A
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Quantitative
and Qualitative Disclosures About Market Risk
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Item
8
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Financial
Statements and Supplementary Data
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Item
9
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Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
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Item
9A
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Controls
and Procedures
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Item
9B
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Other
Information
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PART III
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||
Item
10
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Directors,
Executive Officers and Corporate Governance
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Item
11
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Executive
Compensation
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Item
12
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Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
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Item
13
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Certain
Relationships and Related Transactions, and Directors
Independence
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Item
14
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Principal
Accounting Fees and Services
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PART IV
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||
Item
15
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Exhibits,
Financial Statement Schedules
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Signatures
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·
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statements
of goals, intentions and
expectations;
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·
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statements
regarding prospects and business
strategy;
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|
·
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statements
regarding asset quality and market risk;
and
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|
·
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estimates
of future costs, benefits and
results.
|
|
·
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general
economic conditions, including current turmoil in the financial markets
and the efforts of government agencies to stabilize the financial
system;
|
|
·
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adverse
changes in the Company’s loan portfolio and credit risk-related losses and
expenses;
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·
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changes
in interest rates;
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·
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business
conditions in the financial services industry, including competitive
pressure among financial services companies, new service and product
offerings by competitors, price pressures, and similar
items;
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|
·
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deposit
flows;
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|
·
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loan
demand;
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·
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the
regulatory environment, including evolving banking industry standards,
changes in legislation or
regulation;
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·
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changes
in accounting principles, policies and
guidelines;
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·
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rapidly
changing technology;
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·
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litigation
liabilities, including costs, expenses, settlements and judgments;
and
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·
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other
economic, competitive, governmental, regulatory and technological factors
affecting the Company’s operations, pricing, products and
services.
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(a)
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repealed
the key provisions of the Glass Steagall Act so as to permit commercial
banks to affiliate with investment banks (securities
firms);
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(b)
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amended
the BHC Act to permit qualifying bank holding companies to engage in any
type of financial activities that were not permitted for banks themselves;
and
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(c)
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permitted
subsidiaries of banks to engage in a broad range of financial activities
that were not permitted for banks
themselves.
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Year
|
Quarter | High | Low | |||||||
2009
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4
th
|
$ | 5.05 | $ | 3.81 | |||||
3
rd
|
8.10 | 4.26 | ||||||||
2
nd
|
8.69 | 6.74 | ||||||||
1
st
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9.00 | 4.02 | ||||||||
2008
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4
th
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$ | 9.19 | $ | 7.26 | |||||
3
rd
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10.73 | 5.71 | ||||||||
2
nd
|
7.75 | 4.20 | ||||||||
1
st
|
8.59 | 4.31 |
As
of or for the Years Ended December 31,
|
||||||||||||||||||||
(Dollars
in thousands, except per share data)
|
2009
|
2008
|
2007
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2006
|
2005
|
|||||||||||||||
INCOME
STATEMENT DATA
|
||||||||||||||||||||
Total
interest income
|
$ | 43,470 | $ | 53,976 | $ | 68,346 | $ | 62,745 | $ | 45,381 | ||||||||||
Total
interest expense
|
16,055 | 25,081 | 38,307 | 28,679 | 16,223 | |||||||||||||||
Net
interest income
|
27,415 | 28,895 | 30,039 | 34,066 | 29,158 | |||||||||||||||
Provision
for loan losses
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14,200 | 7,499 | 1,590 | 1,364 | 1,186 | |||||||||||||||
Non-interest
income
|
79 | 1,242 | 3,073 | 3,640 | 3,614 | |||||||||||||||
Non-interest
expenses
|
30,959 | 23,887 | 21,364 | 21,017 | 18,207 | |||||||||||||||
Income
(loss) before provision (benefit) for income taxes
|
(17,665 | ) | (1,249 | ) | 10,158 | 15,325 | 13,379 | |||||||||||||
Provision
(benefit) for income taxes
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(6,223 | ) | (777 | ) | 3,273 | 5,207 | 4,486 | |||||||||||||
Net
income (loss)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 | $ | 10,118 | $ | 8,893 | ||||||||
PER
SHARE DATA
|
||||||||||||||||||||
Basic
earnings per share
|
||||||||||||||||||||
Net
income (loss)
|
$ | (1.07 | ) | $ | (0.04 | ) | $ | 0.66 | $ | 0.97 | $ | 0.88 | ||||||||
Diluted
earnings per share
|
||||||||||||||||||||
Net
income (loss)
|
$ | (1.07 | ) | $ | (0.04 | ) | $ | 0.65 | $ | 0.95 | $ | 0.84 | ||||||||
Book
value per share
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$ | 6.59 | $ | 7.46 | $ | 7.80 | $ | 7.16 | $ | 6.17 | ||||||||||
BALANCE
SHEET DATA
|
||||||||||||||||||||
Total
assets
|
$ | 1,008,642 | $ | 951,980 | $ | 1,016,308 | $ | 1,008,824 | $ | 850,855 | ||||||||||
Total
loans, net
|
680,977 | 774,673 | 813,041 | 784,002 | 670,469 | |||||||||||||||
Total
investment securities (1)
|
192,395 | 90,066 | 90,299 | 109,176 | 44,161 | |||||||||||||||
Total
deposits
|
882,894 | 739,167 | 780,855 | 754,773 | 647,843 | |||||||||||||||
FHLB
& overnight advances
|
25,000 | 102,309 | 133,433 | 159,723 | 123,867 | |||||||||||||||
Subordinated
debt
|
22,476 | 22,476 | 11,341 | 6,186 | 6,186 | |||||||||||||||
Total
shareholders’ equity
|
70,264 | 79,327 | 80,467 | 74,734 | 63,677 | |||||||||||||||
PERFORMANCE
RATIOS
|
||||||||||||||||||||
Return
on average assets on continuing operations
|
(1.22 | )% | (0.05 | )% | 0.71 | % | 1.19 | % | 1.22 | % | ||||||||||
Return
on average shareholders’ equity on continuing operations
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(15.32 | )% | (0.60 | )% | 8.86 | % | 14.59 | % | 15.22 | % | ||||||||||
Net
interest margin
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3.13 | % | 3.28 | % | 3.26 | % | 4.20 | % | 4.23 | % | ||||||||||
Total
non-interest expenses as a percentage of average assets
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3.29 | % | 2.54 | % | 2.20 | % | 2.48 | % | 2.49 | % | ||||||||||
ASSET
QUALITY RATIOS
|
||||||||||||||||||||
Allowance
for loan losses as a percentage of loans
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1.85 | % | 1.07 | % | 1.04 | % | 1.02 | % | 1.12 | % | ||||||||||
Allowance
for loan losses as a percentage of non-performing loans
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49.32 | % | 48.51 | % | 38.19 | % | 116.51 | % | 222.52 | % | ||||||||||
Non-performing
loans as a percentage of total loans
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3.75 | % | 2.21 | % | 2.71 | % | 0.87 | % | 0.50 | % | ||||||||||
Non-performing
assets as a percentage of total assets
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3.93 | % | 2.72 | % | 2.55 | % | 0.74 | % | 0.42 | % | ||||||||||
Net
charge-offs as a percentage of average loans, net
|
1.33 | % | 0.96 | % | 0.14 | % | 0.13 | % | 0.04 | % | ||||||||||
LIQUIDITY
AND CAPITAL RATIOS
|
||||||||||||||||||||
Average
equity to average assets
|
7.94 | % | 8.44 | % | 8.01 | % | 8.17 | % | 7.99 | % | ||||||||||
Leverage
ratio
|
9.36 | % | 11.14 | % | 9.44 | % | 8.75 | % | 8.89 | % | ||||||||||
Tier
1 capital to risk-weighted assets
|
11.89 | % | 12.26 | % | 10.07 | % | 9.46 | % | 10.65 | % | ||||||||||
Total
capital to risk-weighted assets
|
13.14 | % | 13.26 | % | 11.01 | % | 10.30 | % | 11.81 | % |
(1)
|
Includes
restricted stock
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
(1)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
(1)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
(1)
|
||||||||||||||||||||||||||||
(Dollars
in thousands)
|
For
the Year
Ended
December
31, 2009
|
For
the Year
Ended
December
31, 2008
|
For
the Year
Ended
December
31, 2007
|
|||||||||||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Federal
funds sold and other
interest-earning assets
|
$ | 48,580 | $ | 118 | 0.24 | % | $ | 9,821 | $ | 218 | 2.22 | % | $ | 13,923 | $ | 686 | 4.93 | % | ||||||||||||||||||
Investment
securities and restricted stock
|
96,787 | 4,633 | 4.79 | % | 89,365 | 5,135 | 5.75 | % | 95,715 | 5,752 | 6.01 | % | ||||||||||||||||||||||||
Loans
receivable
|
736,647 | 38,943 | 5.29 | % | 789,446 | 48,846 | 6.19 | % | 820,380 | 62,184 | 7.58 | % | ||||||||||||||||||||||||
Total
interest-earning assets
|
882,014 | 43,694 | 4.95 | % | 888,632 | 54,199 | 6.10 | % | 930,018 | 68,622 | 7.38 | % | ||||||||||||||||||||||||
Other
assets
|
58,106 | 51,349 | 39,889 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 940,120 | $ | 939,981 | $ | 969,907 | ||||||||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand
- non-interest bearing
|
$ | 86,621 | $ | - | N/A | $ | 76,671 | $ | - | N/A | $ | 78,641 | $ | - | N/A | |||||||||||||||||||||
Demand
- interest-bearing
|
47,174 | 310 | 0.66 | % | 33,976 | 327 | 0.96 | % | 38,850 | 428 | 1.10 | % | ||||||||||||||||||||||||
Money
market & savings
|
281,621 | 5,258 | 1.87 | % | 222,590 | 6,150 | 2.76 | % | 266,706 | 11,936 | 4.48 | % | ||||||||||||||||||||||||
Time
deposits
|
383,535 | 8,374 | 2.18 | % | 397,740 | 14,844 | 3.73 | % | 361,120 | 18,822 | 5.21 | % | ||||||||||||||||||||||||
Total
deposits
|
798,951 | 13,942 | 1.75 | % | 730,977 | 21,321 | 2.92 | % | 745,317 | 31,186 | 4.18 | % | ||||||||||||||||||||||||
Total
interest-
|
||||||||||||||||||||||||||||||||||||
bearing
deposits
|
712,330 | 13,942 | 1.96 | % | 654,306 | 21,321 | 3.26 | % | 666,676 | 31,186 | 4.68 | % | ||||||||||||||||||||||||
Other
borrowings
|
57,454 | 2,113 | 3.68 | % | 121,236 | 3,760 | 3.10 | % | 133,122 | 7,121 | 5.35 | % | ||||||||||||||||||||||||
Total
interest-bearing
|
||||||||||||||||||||||||||||||||||||
liabilities
|
769,784 | 16,055 | 2.09 | % | 775,542 | 25,081 | 3.23 | % | 799,798 | 38,307 | 4.79 | % | ||||||||||||||||||||||||
Total
deposits and
|
||||||||||||||||||||||||||||||||||||
other
borrowings
|
856,405 | 16,055 | 1.87 | % | 852,213 | 25,081 | 2.94 | % | 878,439 | 38,307 | 4.36 | % | ||||||||||||||||||||||||
Non-interest-bearing
|
||||||||||||||||||||||||||||||||||||
Other
liabilities
|
9,031 | 8,459 | 13,734 | |||||||||||||||||||||||||||||||||
Shareholders’
equity
|
74,684 | 79,309 | 77,734 | |||||||||||||||||||||||||||||||||
Total
liabilities and
|
||||||||||||||||||||||||||||||||||||
Shareholders’
equity
|
$ | 940,120 | $ | 939,981 | $ | 969,907 | ||||||||||||||||||||||||||||||
Net
interest income (2)
|
$ | 27,639 | $ | 29,118 | $ | 30,315 | ||||||||||||||||||||||||||||||
Net
interest spread
|
2.86 | % | 2.87 | % | 2.59 | % | ||||||||||||||||||||||||||||||
Net
interest margin (2)
|
3.13 | % | 3.28 | % | 3.26 | % |
Year
ended December 31,
2009
vs. 2008
|
Year
ended December 31,
2008
vs. 2007
|
|||||||||||||||||||||||
Change
due to
|
Change
due to
|
|||||||||||||||||||||||
(Dollars
in thousands)
|
Average
Volume
|
Average
Rate
|
Total
|
Average
Volume
|
Average
Rate
|
Total
|
||||||||||||||||||
Interest
earned on:
|
||||||||||||||||||||||||
Federal funds sold and
other
|
||||||||||||||||||||||||
interest-earning
assets
|
$ | 94 | $ | (194 | ) | $ | (100 | ) | $ | (91 | ) | $ | (377 | ) | $ | (468 | ) | |||||||
Securities
|
355 | (857 | ) | (502 | ) | (366 | ) | (251 | ) | (617 | ) | |||||||||||||
Loans
|
(2,791 | ) | (7,112 | ) | (9,903 | ) | (1,919 | ) | (11,419 | ) | (13,338 | ) | ||||||||||||
Total
interest earning assets
|
$ | (2,342 | ) | $ | (8,163 | ) | $ | (10,505 | ) | $ | (2,376 | ) | $ | (12,047 | ) | $ | (14,423 | ) | ||||||
Interest
expense of
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Interest-bearing demand
deposits
|
$ | (87 | ) | $ | 104 | $ | 17 | $ | 47 | $ | 54 | $ | 101 | |||||||||||
Money market and
savings
|
(1,102 | ) | 1,994 | 892 | 1,222 | 4,564 | 5,786 | |||||||||||||||||
Time deposits
|
310 | 6,160 | 6,470 | (1,370 | ) | 5,348 | 3,978 | |||||||||||||||||
Total
deposit interest expense
|
(879 | ) | 8,258 | 7,379 | (101 | ) | 9,966 | 9,865 | ||||||||||||||||
Other borrowings
|
2,346 | (699 | ) | 1,647 | 370 | 2,991 | 3,361 | |||||||||||||||||
Total
interest expense
|
1,467 | 7,559 | 9,026 | 269 | 12,957 | 13,226 | ||||||||||||||||||
Net interest
income
|
$ | (875 | ) | $ | (604 | ) | $ | (1,479 | ) | $ | (2,107 | ) | $ | 910 | $ | (1,197 | ) |
(Dollars
in thousands)
|
Total
|
Less
than
One Year
|
One
to
Three
Years
|
Three
to
Five
Years
|
After
Five
Years
|
|||||||||||||||
Minimum
annual rentals or noncancellable operating leases
|
$ | 48,263 | $ | 2,118 | $ | 4,412 | $ | 4,620 | $ | 37,113 | ||||||||||
Remaining
contractual maturities of time Deposits
|
377,254 | 371,565 | 4,013 | 1,676 | - | |||||||||||||||
Subordinated
debt
|
22,476 | - | - | - | 22,476 | |||||||||||||||
Employment
agreements
|
1,298 | 433 | 865 | - | - | |||||||||||||||
Director
and Officer retirement plan obligations
|
1,412 | 244 | 251 | 210 | 707 | |||||||||||||||
Loan
commitments
|
68,611 | 58,706 | 2,152 | 7,592 | 161 | |||||||||||||||
Standby
letters of credit
|
3,683 | 3,575 | 108 | - | - | |||||||||||||||
Total
|
$ | 522,997 | $ | 436,641 | $ | 11,801 | $ | 14,098 | $ | 60,457 |
0–90
Days
|
91–180
Days
|
181–365
Days
|
1–2
Years
|
2–3
Years
|
3–4
Years
|
4–5
Years
|
More
than 5 Years
|
Financial
Statement Total
|
Fair
Value
|
|||||||||||||||||||||||||||||||
Interest
Sensitive Assets:
|
||||||||||||||||||||||||||||||||||||||||
Investment
securities and other interest-bearing balances
|
$ | 58,081 | $ | 4,914 | $ | 18,708 | $ | 21,652 | $ | 20,907 | $ | 19,486 | $ | 19,947 | $ | 73,454 | $ | 237,149 | $ | 237,159 | ||||||||||||||||||||
Average
interest rate
|
1.32 | % | 4.57 | % | 3.48 | % | 4.58 | % | 4.58 | % | 4.57 | % | 3.24 | % | 2.83 | % | ||||||||||||||||||||||||
Loans
receivable
|
324,399 | 33,430 | 56,581 | 84,180 | 72,289 | 37,653 | 19,451 | 65,835 | 693,818 | 687,422 | ||||||||||||||||||||||||||||||
Average
interest rate
|
4.43 | % | 6.32 | % | 6.29 | % | 6.19 | % | 6.14 | % | 5.92 | % | 6.09 | % | 5.95 | % | ||||||||||||||||||||||||
Total
|
382,480 | 38,344 | 75,289 | 105,832 | 93,196 | 57,139 | 39,398 | 139,289 | 930,967 | 924,581 | ||||||||||||||||||||||||||||||
Cumulative
Totals
|
$ | 382,480 | $ | 420,824 | $ | 496,113 | $ | 601,945 | $ | 695,141 | $ | 752,280 | $ | 791,678 | $ | 930,967 | ||||||||||||||||||||||||
Interest
Sensitive Liabilities:
|
||||||||||||||||||||||||||||||||||||||||
Demand
Interest Bearing(1)
|
$ | 26,460 | $ | - | $ | - | $ | 26,459 | $ | - | $ | - | $ | - | $ | - | 52,919 | 52,919 | ||||||||||||||||||||||
Average
interest rate
|
0.65 | % | - | - | 0.65 | % | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Savings
Accounts (1)
|
5,786 | - | - | 5,785 | - | - | - | - | 11,571 | 11,571 | ||||||||||||||||||||||||||||||
Average
interest rate
|
1.14 | % | - | - | 1.14 | % | - | - | - | - | ||||||||||||||||||||||||||||||
Money
Market Accounts(1)
|
157,766 | - | - | 157,766 | - | - | - | - | 315,532 | 315,532 | ||||||||||||||||||||||||||||||
Average
interest rate
|
1.53 | % | - | - | 1.53 | % | - | - | - | - | ||||||||||||||||||||||||||||||
Time
Deposits
|
114,038 | 106,714 | 149,589 | 2,918 | 1,095 | 736 | 940 | 1,224 | 377,254 | 379,090 | ||||||||||||||||||||||||||||||
Average
interest rate
|
1.37 | % | 1.31 | % | 2.01 | % | 2.18 | % | 2.94 | % | 3.30 | % | 2.78 | % | 1.42 | % | ||||||||||||||||||||||||
FHLB
and Short Term Advances
|
- | 25,000 | - | - | - | - | - | - | 25,000 | 25,291 | ||||||||||||||||||||||||||||||
Average
interest rate
|
- | 3.35 | % | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Subordinated
Debt
|
22,476 | - | - | - | - | - | - | - | 22,476 | 22,476 | ||||||||||||||||||||||||||||||
Average
interest rate
|
4.93 | % | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Total
|
326,526 | 131,714 | 149,589 | 192,928 | 1,095 | 736 | 940 | 1,224 | 804,752 | 806,879 | ||||||||||||||||||||||||||||||
Cumulative
Totals
|
$ | 326,526 | $ | 458,240 | $ | 607,829 | $ | 800,757 | $ | 801,852 | $ | 802,588 | $ | 803,528 | $ | 804,752 | ||||||||||||||||||||||||
Interest
Rate
|
||||||||||||||||||||||||||||||||||||||||
Sensitivity
GAP
|
$ | 55,954 | $ | (93,370 | ) | $ | (74,300 | ) | $ | (87,096 | ) | $ | 92,101 | $ | 56,403 | $ | 38,458 | $ | 138,065 | |||||||||||||||||||||
Cumulative
GAP
|
$ | 55,954 | $ | (37,416 | ) | $ | (111,716 | )) | $ | (198,812 | ) | $ | (106,711 | ) | $ | (50,308 | ) | $ | (11,850 | ) | $ | 126,215 | ||||||||||||||||||
Interest
Sensitive Assets/Interest Sensitive Liabilities
|
117 | % | 92 | % | 82 | % | 75 | % | 87 | % | 94 | % | 99 | % | 116 | % | ||||||||||||||||||||||||
Cumulative
GAP/
|
||||||||||||||||||||||||||||||||||||||||
Total
Earning Assets
|
6 | % | -4 | % | -12 | % | -21 | % | -11 | % | -5 | % | -1 | % | 14 | % |
(1)
|
Demand,
savings and money market accounts are shown to reprice based upon
management’s estimate of when rates would have to be increased to retain
balances in response to competition. Such estimates are necessarily
arbitrary and wholly judgmental.
|
Change
in
Interest
Rates
|
Net
Portfolio Value
|
NPV
as % of Portfolio
Value
of Assets
|
|||||||||||||||||||
In Basis Points
(Rate
Shock)
|
Amount
|
$
Change
|
%
Change
|
NPV
Ratio
|
Change
|
||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||
+300 | $ | 66,540 | $ | (20,704 | ) | (23.73 | )% | 6.96 | % | (153 | )bp | ||||||||||
+200 | 75,340 | (11,904 | ) | (13.64 | )% | 7.73 | % | (76 | ) | ||||||||||||
+100 | 81,607 | (5,637 | ) | (6.46 | )% | 8.22 | % | (27 | ) | ||||||||||||
Static
|
87,244 | -- | 0.00 | % | 8.49 | % | 0 | ||||||||||||||
-100 | 88,961 | 1,717 | 1.97 | % | 8.79 | % | 30 |
Change
in Interest Rates in Basis Points (1)
|
Net
Interest Income
|
$
Change
|
%
Change
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
+300 | $ | 36,020 | $ | 2,021 | 5.94 | % | |||||||
+200 | 35,350 | 1,351 | 3.97 | % | |||||||||
+100 | 34,686 | 688 | 2.02 | % | |||||||||
Static
|
33,999 | - | 0.00 | % | |||||||||
-100 | 33,618 | (381 | ) | (1.12 | )% |
|
(1)
|
The
net interest income results represent a rate ramp, achieving the rate
change over a 12-month period, not an immediate and sustained rate
shock.
|
Actual
|
For
Capital
Adequacy
Purposes
|
To
be well
capitalized
under
regulatory
capital guidelines
|
|||||||||||
(Dollars
in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||
At
December 31, 2009
|
|||||||||||||
Total
risk based capital
|
|||||||||||||
Republic
|
$89,786
|
11.55%
|
$62,204
|
8.00%
|
$77,755
|
10.00%
|
|||||||
Company.
|
102,527
|
13.14%
|
62,399
|
8.00%
|
-
|
-
|
|||||||
Tier
one risk based capital
|
|||||||||||||
Republic
|
80,028
|
10.29%
|
31,102
|
4.00%
|
46,653
|
6.00%
|
|||||||
Company.
|
92,739
|
11.89%
|
31,200
|
4.00%
|
-
|
-
|
|||||||
Tier
one leverage capital
|
|||||||||||||
Republic
|
80,028
|
8.10%
|
39,544
|
4.00%
|
49,430
|
5.00%
|
|||||||
Company.
|
92,739
|
9.36%
|
39,640
|
4.00%
|
-
|
-
|
|||||||
At
December 31, 2008
|
|||||||||||||
Total
risk based capital
|
|||||||||||||
Republic
|
$99,329
|
11.90%
|
$66,750
|
8.00%
|
$83,437
|
10.00%
|
|||||||
Company.
|
110,927
|
13.26%
|
66,915
|
8.00%
|
-
|
-
|
|||||||
Tier
one risk based capital
|
|||||||||||||
Republic
|
90,921
|
10.90%
|
33,375
|
4.00%
|
50,062
|
6.00%
|
|||||||
Company.
|
102,518
|
12.26%
|
33,458
|
4.00%
|
-
|
-
|
|||||||
Tier
one leverage capital
|
|||||||||||||
Republic
|
90,921
|
9.91%
|
36,712
|
4.00%
|
45,890
|
5.00%
|
|||||||
Company.
|
102,518
|
11.14%
|
36,801
|
4.00%
|
-
|
-
|
|||||||
Investment
Securities Available for Sale at December 31,
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Mortgage
backed Securities/CMOs
(1)
|
144,081 | 60,859 | 55,579 | |||||||||
Municipal
Securities
|
10,325 | 10,073 | 12,338 | |||||||||
Corporate
Bonds
|
5,989 | 5,988 | 4,995 | |||||||||
Agency
Bonds
|
18,991 | - | - | |||||||||
Trust
Preferred
Securities
|
6,789 | 8,003 | 10,058 | |||||||||
Other
securities
|
281 | 279 | 280 | |||||||||
Total
amortized cost of
securities
|
$ | 186,456 | $ | 85,202 | $ | 83,250 | ||||||
Total
fair value of investment securities
|
$ | 185,404 | $ | 83,032 | $ | 83,659 | ||||||
Investment
Securities Held to Maturity at December 31,
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||
2009 | 2008 | 2007 | ||||||||||
U.S.
Government
Agencies
|
$ | 2 | $ | 3 | $ | 3 | ||||||
Mortgage
backed Securities/CMOs
(1)
|
- | 15 | 15 | |||||||||
Municipal
Securities
|
- | 30 | 90 | |||||||||
Other
securities
|
153 | 150 | 174 | |||||||||
Total
amortized cost of investment securities
|
$ | 155 | $ | 198 | $ | 282 | ||||||
Total
fair value of investment securities
|
$ | 165 | $ | 214 | $ | 285 |
Investment
Securities Available for Sale at December 31, 2009
|
||||||||||||||||||||||||||||||||||||||||||||
Within
One Year
|
One
to Five Years
|
Five
to Ten Years
|
Past
10 Years
|
Total
|
||||||||||||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Fair
value
|
Cost
|
Yield
|
||||||||||||||||||||||||||||||||||
Mortgage
backed securities/CMOs
|
$ | - | - | $ | 84 | 6.17 | % | $ | - | - | $ | 146,682 | 3.54 | % | $ | 146,766 | $ | 144,081 | 3.54 | % | ||||||||||||||||||||||||
Municipal
securities
|
- | - | - | - | - | - | 9,523 | 4.29 | % | 9,523 | 10,325 | 4.29 | % | |||||||||||||||||||||||||||||||
Corporate
Bonds
|
- | - | - | - | 3,090 | 6.36 | % | 3,000 | 3.59 | % | 6,090 | 5,989 | 4.99 | % | ||||||||||||||||||||||||||||||
Agency
Bonds
|
- | - | 9,969 | 3.01 | % | 8,875 | 3.21 | % | - | - | 18,844 | 18,991 | 3.10 | % | ||||||||||||||||||||||||||||||
Trust
Preferred securities
|
- | - | - | - | - | - | 3,926 | 0.81 | % | 3,926 | 6,789 | 0.81 | % | |||||||||||||||||||||||||||||||
Other securities
|
151 | 4.40 | % | - | - | 104 | 3.85 | % | - | - | 255 | 281 | 3.22 | % | ||||||||||||||||||||||||||||||
Total
AFS securities
|
$ | 151 | 4.40 | % | $ | 10,053 | 3.04 | % | $ | 12,069 | 4.00 | % | $ | 163,131 | 3.52 | % | $ | 185,404 | $ | 186,456 | 3.52 | % |
Investment
Securities Held to Maturity at December 31, 2009
|
||||||||||||||||||||||||||||||||||||||||
Within
One Year
|
One
to Five Years
|
Five
to Ten Years
|
Past
10 Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||
U.S.
Government Agencies
|
$ | - | - | $ | - | - | $ | 2 | 1.58 | % | $ | - | - | $ | 2 | 1.58 | % | |||||||||||||||||||||||
Other
securities
|
- | - | 113 | 6.30 | % | - | - | 40 | - | 153 | 4.65 | % | ||||||||||||||||||||||||||||
Total
HTM securities
|
$ | - | - | $ | 113 | 6.30 | % | $ | 2 | 1.58 | % | $ | 40 | - | $ | 155 | 4.64 | % |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Beginning
balance, January 1
|
$ | 4,932 | $ | - | ||||
Securities
transferred to Level 3 measurement
|
- | 9,986 | ||||||
Unrealized
gains (losses)
|
208 | (2,999 | ) | |||||
Impairment
charge on Level 3 securities
|
(2,073 | ) | (1,438 | ) | ||||
Other,
including adjustment for non-credit component of previously recognized
OTTI and proceeds from calls of investment securities
|
859 | (617 | ) | |||||
Ending
balance, December 31
|
$ | 3,926 | $ | 4,932 |
At
December 31,
|
||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Commercial:
|
||||||||||||||||||||
Real estate
secured
|
$ | 487,018 | $ | 456,273 | $ | 477,678 | $ | 466,636 | $ | 447,673 | ||||||||||
Construction and land
development
|
103,790 | 216,060 | 228,616 | 218,671 | 141,461 | |||||||||||||||
Non real estate
secured
|
60,127 | 60,203 | 77,347 | 71,816 | 49,515 | |||||||||||||||
Non real estate
unsecured
|
18,344 | 21,531 | 8,451 | 8,598 | 10,620 | |||||||||||||||
Total
commercial
|
669,279 | 754,067 | 792,092 | 765,721 | 649,269 | |||||||||||||||
Residential
real estate (1)
|
3,341 | 5,347 | 5,960 | 6,517 | 7,057 | |||||||||||||||
Consumer
and other
|
21,640 | 24,165 | 24,302 | 20,952 | 23,050 | |||||||||||||||
Total loans
|
694,260 | 783,579 | 822,354 | 793,190 | 679,376 | |||||||||||||||
Deferred
loan fees
|
442 | 497 | 805 | 1,130 | 1,290 | |||||||||||||||
Total loans, net of deferred
loan fees
|
$ | 693,818 | $ | 783,082 | $ | 821,549 | $ | 792,060 | $ | 678,086 |
At
December 31, 2009
|
||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Commercial
and Commercial Real Estate
|
Construction
and Land Development
|
Residential
Real Estate
|
Consumer
and Other
|
Total
|
||||||||||||||||
Fixed
Rate
|
||||||||||||||||||||
1
year or less
|
$ | 67,237 | $ | 6,819 | $ | - | $ | 2,704 | $ | 76,760 | ||||||||||
1-5
years
|
246,805 | 1,521 | - | 325 | 248,651 | |||||||||||||||
After
5 years
|
104,609 | - | 3,341 | 3,657 | 111,607 | |||||||||||||||
Total
fixed rate
|
418,651 | 8,340 | 3,341 | 6,686 | 437,018 | |||||||||||||||
Adjustable
Rate
|
||||||||||||||||||||
1
year or less
|
127,226 | 65,304 | - | 358 | 192,888 | |||||||||||||||
1-5
years
|
5,095 | 30,146 | - | 99 | 35,340 | |||||||||||||||
After
5 years
|
14,517 | - | - | 14,497 | 29,014 | |||||||||||||||
Total
adjustable rate
|
146,838 | 95,450 | - | 14,954 | 257,242 | |||||||||||||||
Total
|
$ | 565,489 | $ | 103,790 | $ | 3,341 | $ | 21,640 | $ | 694,260 |
Non-accrual
Loans
|
||||||||||||||||||||
At
December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Loans
accruing, but past due 90 days or
more
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Restructured
loans
|
- | - | - | - | - | |||||||||||||||
Non-accrual
loans
|
||||||||||||||||||||
Commercial
|
9,545 | 2,758 | 14,757 | 6,448 | 2,725 | |||||||||||||||
Construction
|
15,904 | 13,666 | 6,747 | 173 | 492 | |||||||||||||||
Residential
real estate
|
- | - | - | - | - | |||||||||||||||
Consumer
and other
|
585 | 909 | 776 | 295 | 206 | |||||||||||||||
Total
non-accrual loans
|
26,034 | 17,333 | 22,280 | 6,916 | 3,423 | |||||||||||||||
Total
non-performing loans (1)
|
26,034 | 17,333 | 22,280 | 6,916 | 3,423 | |||||||||||||||
Other
real estate owned
|
13,611 | 8,580 | 3,681 | 572 | 137 | |||||||||||||||
Total
non-performing assets (1)
|
$ | 39,645 | $ | 25,913 | $ | 25,961 | $ | 7,488 | $ | 3,560 | ||||||||||
Non-performing
loans as a percentage of total
|
||||||||||||||||||||
loans, net of unearned income
(1)
|
3.75 | % | 2.21 | % | 2.71 | % | 0.87 | % | 0.50 | % | ||||||||||
Non-performing
assets as a percentage of total assets
|
3.93 | % | 2.72 | % | 2.55 | % | 0.74 | % | 0.42 | % |
(1)
|
Non-performing
loans are comprised of (i) loans that are on a non-accrual basis,
(ii) accruing loans that are 90 days or more past due and
(iii) restructured loans. Non-performing assets are composed of
non-performing loans and other real estate
owned.
|
For
the Year Ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Interest
income that would have been recorded
|
||||||||||||||||||||
had
the loans been in accordance with their
|
||||||||||||||||||||
original
terms
|
$ | 1,180,000 | $ | 553,000 | $ | 1,447,000 | $ | 479,000 | $ | 165,000 | ||||||||||
Interest
income included in net income
|
$ | - | $ | - | $ | - | $ | - | $ | - |
For
the Year Ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Balance
at beginning of
period
|
$ | 8,409 | $ | 8,508 | $ | 8,058 | $ | 7,617 | $ | 6,684 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial
|
9,764 | 7,778 | 1,503 | 601 | 29 | |||||||||||||||
Tax
refund loans
|
- | - | - | 1,286 | 1,113 | |||||||||||||||
Consumer
|
6 | 19 | 3 | - | 21 | |||||||||||||||
Total
charge-offs
|
9,770 | 7,797 | 1,506 | 1,887 | 1,163 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial
|
- | 119 | 81 | 37 | 287 | |||||||||||||||
Tax
refund
loans
|
- | 77 | 283 | 927 | 617 | |||||||||||||||
Consumer
|
2 | 3 | 2 | - | 6 | |||||||||||||||
Total
recoveries
|
2 | 199 | 366 | 964 | 910 | |||||||||||||||
Net
charge-offs
|
9,768 | 7,598 | 1,140 | 923 | 253 | |||||||||||||||
Provision
for loan
losses
|
14,200 | 7,499 | 1,590 | 1,364 | 1,186 | |||||||||||||||
Balance
at end of
period
|
$ | 12,841 | $ | 8,409 | $ | 8,508 | $ | 8,058 | $ | 7,617 | ||||||||||
Average
loans outstanding
(1)
|
$ | 736,647 | $ | 789,446 | $ | 820,380 | $ | 728,754 | $ | 602,031 | ||||||||||
As
a percent of average loans (1):
|
||||||||||||||||||||
Net
charge-offs
|
1.33 | % | 0.96 | % | 0.14 | % | 0.13 | % | 0.04 | % | ||||||||||
Provision
for loan
losses
|
1.93 | % | 0.95 | % | 0.19 | % | 0.19 | % | 0.20 | % | ||||||||||
Allowance
for loan
losses
|
1.74 | % | 1.07 | % | 1.04 | % | 1.11 | % | 1.27 | % | ||||||||||
Allowance
for loan losses to:
|
||||||||||||||||||||
Total
loans, net of unearned income
|
1.85 | % | 1.07 | % | 1.04 | % | 1.02 | % | 1.12 | % | ||||||||||
Total
non-performing
loans
|
49.32 | % | 48.51 | % | 38.19 | % | 116.51 | % | 222.52 | % |
At
December 31,
|
||||||||||||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||||||||
Allocation
of the allowance for loan losses (1):
|
Amount
|
%
of
Loans
|
Amount
|
%
of
Loans
|
Amount
|
%
of
Loans
|
Amount
|
%
of
Loans
|
Amount
|
%
of
Loans
|
||||||||||||||||||||||||||||||
Commercial
|
$ | 8,762 | 81.5 | % | $ | 4,721 | 68.6 | % | $ | 5,303 | 68.5 | % | $ | 5,852 | 69.0 | % | $ | 5,074 | 74.8 | % | ||||||||||||||||||||
Construction
|
3,789 | 14.9 | % | 3,278 | 27.6 | % | 2,739 | 27.8 | % | 1,714 | 27.6 | % | 1,417 | 20.8 | % | |||||||||||||||||||||||||
Residential
real estate
|
27 | 0.5 | % | 41 | 0.7 | % | 43 | 0.7 | % | 48 | 0.8 | % | 71 | 1.0 | % | |||||||||||||||||||||||||
Consumer
and other
|
176 | 3.1 | % | 241 | 3.1 | % | 174 | 3.0 | % | 156 | 2.6 | % | 231 | 3.4 | % | |||||||||||||||||||||||||
Unallocated
|
87 | - | 128 | - | 249 | - | 288 | - | 824 | - | ||||||||||||||||||||||||||||||
Total
|
$ | 12,841 | 100.0 | % | $ | 8,409 | 100 | % | $ | 8,508 | 100 | % | $ | 8,058 | 100 | % | $ | 7,617 | 100 | % |
2009
|
2008
|
|||||||
Balance
at January 1,
|
$ | 8,580 | $ | 3,681 | ||||
Additions,
net
|
8,113 | 21,384 | ||||||
Sales
|
1,511 | 14,870 | ||||||
Writedowns/losses
on sales
|
1,571 | 1,615 | ||||||
Balance
at December 31,
|
$ | 13,611 | $ | 8,580 |
At
December 31,
|
||||||||||||
(Dollars
in thousands)
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Demand
deposits, non-interest bearing
|
$ | 125,618 | $ | 70,814 | $ | 99,040 | ||||||
Demand
deposits, interest bearing
|
52,919 | 43,044 | 35,235 | |||||||||
Money
market & savings deposits
|
327,103 | 231,643 | 223,645 | |||||||||
Time
deposits
|
377,254 | 393,666 | 422,935 | |||||||||
Total
deposits
|
$ | 882,894 | $ | 739,167 | $ | 780,855 |
For
the Years Ended December 31,
|
||||||||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Average
Balance
|
Rate
|
Average
Balance
|
Rate
|
Average
Balance
|
Rate
|
|||||||||||||||||||
Demand
deposits, non-interest-bearing
|
$ | 86,621 | 0.00 | % | $ | 76,671 | 0.00 | % | $ | 78,641 | 0.00 | % | ||||||||||||
Demand
deposits, interest-bearing
|
47,174 | 0.66 | % | 33,976 | 0.96 | % | 38,850 | 1.10 | % | |||||||||||||||
Money
market & savings deposits
|
281,621 | 1.87 | % | 222,590 | 2.76 | % | 266,706 | 4.48 | % | |||||||||||||||
Time
deposits
|
383,535 | 2.18 | % | 397,740 | 3.73 | % | 361,120 | 5.21 | % | |||||||||||||||
Total
deposits
|
$ | 798,951 | 1.75 | % | $ | 730,977 | 2.92 | % | $ | 745,317 | 4.18 | % |
Certificates
of Deposit
|
||||
(Dollars
in thousands)
|
||||
2009
|
||||
Maturing
in:
|
||||
Three
months or less
|
$ |
86,601
|
||
Over
three months through six months
|
87,001
|
|||
Over
six months through twelve months
|
57,908
|
|||
Over
twelve months
|
1,122
|
|||
Total
|
$ |
232,632
|
(Dollars in thousands) |
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
|||||||||||||||||||||
$ | 371,565 | $ | 2,918 | $ | 1,095 | $ | 736 | $ | 940 | $ | - | $ | 377,254 |
For
|
Withheld
|
Abstain
|
Broker
Non-Vote
|
||||
Robert
J. Coleman
|
8,727,676
|
1,044,657
|
75,794
|
817,508
|
|||
Lyle
W. Hall, Jr.
|
8,673,800
|
1,098,533
|
75,794
|
817,508
|
|||
Harris
Wildstein
|
8,787,909
|
984,424
|
75,794
|
817,508
|
|
(1)
|
Management’s
Report on Internal Control Over Financial
Reporting
|
|
(2)
|
Reports
of Independent Registered Public Accounting
Firm
|
|
(3)
|
Consolidated
Balance Sheets as of December 31, 2009 and
2008
|
|
(4)
|
Consolidated
Statements of Operations for the years ended December 31, 2009, 2008 and
2007
|
|
(5)
|
Consolidated
Statements of Changes in Shareholders’ Equity for the years ended December
31, 2009, 2008 and 2007
|
|
(6)
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2009, 2008 and
2007
|
|
(7)
|
Notes
to Consolidated Financial
Statements
|
Exhibit
Number
|
Description
|
Manner of Filing
|
||
2.1
|
Agreement
and Plan of Merger, dated as of November 7, 2008, between Metro Bancorp,
Inc. and Republic First Bancorp, Inc.
|
Incorporated
by reference to Form 8-K Filed November 12,
2008
|
||
2.2
|
First
Amendment to Agreement and Plan of Merger, dated as of July 31, 2009,
between Metro Bancorp, Inc. and Republic First Bancorp,
Inc.
|
Incorporated by reference to Form 8-K Filed July 31, 2009 | ||
2.3
|
Second
Amendment to Agreement and Plan of Merger, dated as of December 18, 2009,
between Metro Bancorp, Inc. and Republic First Bancorp,
Inc.
|
Incorporated
by reference to Form 8-K Filed December 22,
2009
|
||
3.1
|
Amended
and Restated Articles of Incorporation of Republic First Bancorp,
Inc.
|
Incorporated
by reference to Form 10-K Filed March 30, 2005
|
||
3.2
|
Amended
and Restated By-Laws of Republic First Bancorp, Inc.
|
Incorporated
by reference to Form 10-K Filed March 30, 2005
|
||
4.1
|
The
Company will furnish to the SEC upon request copies of the following
documents relating to the Company’s Floating Rate Junior Subordinated Debt
Securities due 2037: (i) Indenture dated as of December 27, 2006, between
the Company and Wilmington Trust Company, as trustee; (ii) Amended and
Restated Declaration of Trust of Republic Capital Trust II, dated as of
December 27, 2006; and (iii) Guarantee Agreement dated as of December 27,
2006, between the Company and Wilmington Trust Company, as trustee, for
the benefit of the holders of the capital securities of Republic Capital
Trust II
|
|||
4.2
|
The
Company will furnish to the SEC upon request copies of the following
documents relating to the Company’s Floating Rate Junior Subordinated Debt
Securities due 2037: (i) Indenture dated as of June 28, 2007, between the
Company and Wilmington Trust Company, as trustee; (ii) Amended and
Restated Declaration of Trust of Republic Capital Trust III, dated as of
June 28, 2007; and (iii) Guarantee Agreement dated as of June 28, 2007,
between the Company and Wilmington Trust Company, as trustee, for the
benefit of the holders of the capital securities of Republic Capital Trust
III.
|
4.3
|
The
Company will furnish to the SEC upon request copies of the following
documents relating to the Company’s Fixed Rate Junior Subordinated
Convertible Debt Securities due 2038: (i) Indenture dated as of June 10,
2008, between the Company and Wilmington Trust Company, as trustee; (ii)
Amended and Restated Declaration of Trust of Republic First Bancorp
Capital Trust IV, dated as of June 10, 2008; and (iii) Guarantee Agreement
dated as of June 10, 2008, between the Company and Wilmington Trust
Company, as trustee, for the benefit of the holders of the capital
securities of Republic First Bancorp Capital Trust IV.
|
|||
10.1
|
Employment
Contract Between the Company and Harry D. Madonna*
|
Incorporated
by reference to Form 8-K Filed January 26, 2010
|
||
10.2
|
Amended
and Restated Stock Option Plan and Restricted Stock Plan*
|
Incorporated
by reference to Form 10-K Filed March 10, 2008
|
||
10.3
|
Deferred
Compensation Plan*
|
|||
10.4
|
Change
in Control Policy for Certain Executive Officers*
|
Incorporated
by reference to Form 10-K filed March 9, 2007
|
||
10.5
|
Amended
and Restated Supplemental Retirement Plan Agreements between Republic
First Bank and Certain Directors*
|
Incorporated
by reference to Form 10-Q Filed November 7, 2008
|
||
10.6
|
Purchase
Agreement among Republic First Bancorp, Inc., Republic First Bancorp
Capital Trust IV, and Purchasers of the Trust IV Capital
Securities
|
Incorporated
by reference to Form 10-Q Filed November 7, 2008
|
||
10.7
|
Registration
Rights Agreement among Republic First Bancorp, Inc. and the Holders the
Trust IV Capital Securities
|
Incorporated
by reference to Form 10-Q Filed November 7, 2008
|
||
10.8
|
Consulting
Agreement between Republic First Bancorp, Inc. and Vernon W. Hill,
II
|
Incorporated
by reference to Form 10-Q Filed November 7, 2008
|
||
21.1
|
Subsidiaries
of the Company
|
|||
23.1
|
Consent
of Beard Miller Company LLP
|
|||
31.1
|
Rule
13a-14(a)/ 15d-14(a) Certification of Chairman and Chief Executive Officer
of Republic First Bancorp, Inc.
|
|||
31.2
|
Rule
13a-14(a)/ 15d-14(a) Certification of Acting Chief Financial Officer of
Republic First Bancorp, Inc.
|
|||
32.1
|
Section
1350 Certification of Harry D. Madonna
|
|||
32.2
|
Section
1350 Certification of Frank Cavallaro
|
|||
REPUBLIC
FIRST BANCORP, INC.
|
||
Date: March
16, 2010
|
By:
|
/s/
Harry D. Madonna
|
Harry
D. Madonna
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
Date:
March 16, 2010
|
By:
|
/s/
Frank A. Cavallaro
|
Frank
A. Cavallaro,
|
||
Senior
Vice President and
Chief
Financial Officer
|
||
Date: March
16, 2010
|
/s/
Harris Wildstein, Esq.
|
||
Harris
Wildstein, Esq., Director
|
|||
/s/
Neal I. Rodin
|
|||
Neal
I. Rodin, Director
|
|||
/s/
Harry D. Madonna
|
|||
Harry
D. Madonna, Director and Chairman of the Board
|
|||
/s/
Theodore J. Flocco, Jr..
|
|||
Theodore
J. Flocco Jr., Director
|
|||
/s/
William Batoff
|
|||
William
Batoff, Director
|
|||
/s/
Robert Coleman
|
|||
Robert
Coleman, Director
|
|||
/s/
Barry L. Spevak
|
|||
Barry
L. Spevak, Director
|
Date: March
16, 2010
|
By:
|
/s/
Harry D. Madonna
|
Harry
D. Madonna
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
Date:
March 16, 2010
|
By:
|
/s/
Frank A. Cavallaro
|
Frank
A. Cavallaro
|
||
Senior
Vice President and
Chief
Financial Officer
|
||
2009
|
2008
|
|||||||
ASSETS:
|
||||||||
Cash
and due from banks
|
$ | 10,864 | $ | 9,803 | ||||
Interest
bearing deposits with banks
|
36,007 | 3,456 | ||||||
Federal
funds sold
|
8,747 | 21,159 | ||||||
Total cash and cash
equivalents
|
55,618 | 34,418 | ||||||
Investment
securities available for sale, at fair value
|
185,404 | 83,032 | ||||||
Investment
securities held to maturity, at amortized cost
|
||||||||
(fair value of $165 and
$214 respectively)
|
155 | 198 | ||||||
Restricted
stock, at cost
|
6,836 | 6,836 | ||||||
Loans
receivable, (net of allowance for loan losses of $12,841 and
$8,409
|
||||||||
respectively)
|
680,977 | 774,673 | ||||||
Premises
and equipment, net
|
24,490 | 14,209 | ||||||
Other
real estate owned, net
|
13,611 | 8,580 | ||||||
Accrued
interest receivable
|
3,957 | 3,939 | ||||||
Bank
owned life insurance
|
12,373 | 12,118 | ||||||
Other
assets
|
25,221 | 13,977 | ||||||
Total Assets
|
$ | 1,008,642 | $ | 951,980 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY:
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Demand
— non-interest-bearing
|
$ | 125,618 | $ | 70,814 | ||||
Demand
— interest-bearing
|
52,919 | 43,044 | ||||||
Money
market and savings
|
327,103 | 231,643 | ||||||
Time
less than $100,000
|
144,622 | 139,708 | ||||||
Time
over $100,000
|
232,632 | 253,958 | ||||||
Total Deposits
|
882,894 | 739,167 | ||||||
Short-term
borrowings
|
- | 77,309 | ||||||
FHLB
Advances
|
25,000 | 25,000 | ||||||
Accrued
interest payable
|
1,826 | 2,540 | ||||||
Other
liabilities
|
6,182 | 6,161 | ||||||
Subordinated
debt
|
22,476 | 22,476 | ||||||
Total
Liabilities
|
938,378 | 872,653 | ||||||
Commitments
and contingencies
|
||||||||
Shareholders’
Equity:
|
||||||||
Preferred
stock, par value $0.01 per share; 10,000,000 shares
authorized;
|
||||||||
no
shares issued as of December 31, 2009 and 2008
|
- | - | ||||||
Common
stock, par value $0.01 per share; 20,000,000 shares
authorized;
|
||||||||
shares issued 11,081,938 as of
December 31, 2009 and
|
||||||||
11,047,651 as of December 31,
2008
|
111 | 110 | ||||||
Additional
paid in capital
|
77,086 | 76,629 | ||||||
Retained
earnings (accumulated deficit)
|
(2,450 | ) | 8,455 | |||||
Treasury
stock at cost (416,303 shares and 416,303 respectively)
|
(3,099 | ) | (3,099 | ) | ||||
Stock
held by deferred compensation plan
|
(709 | ) | (1,377 | ) | ||||
Accumulated
other comprehensive loss
|
(675 | ) | (1,391 | ) | ||||
Total Shareholders’
Equity
|
70,264 | 79,327 | ||||||
Total Liabilities and
Shareholders’ Equity
|
$ | 1,008,642 | $ | 951,980 | ||||
2009
|
2008
|
2007
|
||||||||||
Interest
income:
|
||||||||||||
Interest
and fees on loans
|
$ | 38,943 | $ | 48,846 | $ | 62,184 | ||||||
Interest
and dividends on taxable investment securities
|
3,974 | 4,479 | 4,963 | |||||||||
Interest
and dividends on tax-exempt investment securities
|
435 | 433 | 513 | |||||||||
Interest
on federal funds sold and other interest-earning assets
|
118 | 218 | 686 | |||||||||
43,470 | 53,976 | 68,346 | ||||||||||
Interest
expense:
|
||||||||||||
Demand
– interest bearing
|
310 | 327 | 428 | |||||||||
Money
market and savings
|
5,258 | 6,150 | 11,936 | |||||||||
Time
less than $100,000
|
4,275 | 7,265 | 7,200 | |||||||||
Time
over $100,000
|
4,099 | 7,579 | 11,622 | |||||||||
Other
borrowings
|
2,113 | 3,760 | 7,121 | |||||||||
16,055 | 25,081 | 38,307 | ||||||||||
Net
interest income
|
27,415 | 28,895 | 30,039 | |||||||||
Provision
for loan losses
|
14,200 | 7,499 | 1,590 | |||||||||
Net
interest income after provision for loan losses
|
13,215 | 21,396 | 28,449 | |||||||||
Non-interest
income:
|
||||||||||||
Loan
advisory and servicing fees
|
459 | 362 | 1,177 | |||||||||
Service
fees on deposit accounts
|
1,219 | 1,184 | 1,187 | |||||||||
Gain
on sale of investment securities
|
- | 5 | - | |||||||||
Net
other-than-temporary impairment losses on investments recognized in
earnings (includes total other-than-temporary impairment losses of $1,006
and $5,054, net of $1,067 and $(3,616) recognized in other comprehensive
income (loss) for the year ended December 31, 2009 and 2008, respectively,
before taxes)
|
(2,073 | ) | (1,438 | ) | - | |||||||
Gain
on sale of other real estate owned
|
- | - | 185 | |||||||||
Bank
owned life insurance income
|
255 | 400 | 424 | |||||||||
Other
income
|
219 | 729 | 100 | |||||||||
79 | 1,242 | 3,073 | ||||||||||
Non-interest
expenses:
|
||||||||||||
Salaries
and employee benefits
|
12,699 | 9,629 | 10,612 | |||||||||
Occupancy
|
3,081 | 2,447 | 2,420 | |||||||||
Depreciation
and amortization
|
1,858 | 1,343 | 1,360 | |||||||||
Legal
|
1,245 | 1,454 | 750 | |||||||||
Write
down/loss on sale of other real estate
|
1,571 | 1,615 | - | |||||||||
Other
real estate
|
303 | 513 | 23 | |||||||||
Advertising
|
288 | 464 | 503 | |||||||||
Data
processing
|
807 | 845 | 693 | |||||||||
Insurance
|
711 | 561 | 398 | |||||||||
Professional
fees
|
2,285 | 973 | 542 | |||||||||
Regulatory
assessments and costs
|
2,314 | 556 | 176 | |||||||||
Taxes,
other
|
892 | 728 | 820 | |||||||||
Other
operating expenses
|
2,905 | 2,759 | 3,067 | |||||||||
30,959 | 23,887 | 21,364 | ||||||||||
Income
(loss) before provision (benefit) for income taxes
|
(17,665 | ) | (1,249 | ) | 10,158 | |||||||
Provision
(benefit) for income taxes
|
(6,223 | ) | (777 | ) | 3,273 | |||||||
Net
Income (loss)
|
(11,442 | ) | $ | (472 | ) | $ | 6,885 | |||||
Net
income (loss) per share:
|
||||||||||||
Basic
|
$ | (1.07 | ) | $ | (0.04 | ) | $ | 0.66 | ||||
Diluted
|
$ | (1.07 | ) | $ | (0.04 | ) | $ | 0.65 |
Comprehensive
Income
(Loss)
|
Common
Stock
|
Additional
Paid
in
Capital
|
Retained
Earnings
(Accumulated Deficit)
|
Treasury
Stock
|
Stock
Held by Deferred Compensation Plan
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||||||||
Balance
January 1, 2007
|
$ | 97 | $ | 63,342 | $ | 13,511 | $ | (1,688 | ) | $ | (810 | ) | $ | 282 | $ | 74,734 | ||||||||||||||||
Total
other comprehensive loss, net of taxes
|
(12 | ) | - | - | - | - | - | (12 | ) | (12 | ) | |||||||||||||||||||||
Net
income for the year
|
6,885 | - | - | 6,885 | - | - | - | 6,885 | ||||||||||||||||||||||||
Total
comprehensive income
|
$ | 6,873 | ||||||||||||||||||||||||||||||
Stock
based compensation
|
- | 125 | - | - | - | - | 125 | |||||||||||||||||||||||||
Stock
dividend (974,441 shares)
|
10 | 11,459 | (11,469 | ) | - | - | - | - | ||||||||||||||||||||||||
Options
exercised (16,558 shares)
|
- | 47 | - | - | - | - | 47 | |||||||||||||||||||||||||
Purchase
of treasury shares (140,700 shares)
|
- | - | - | (1,305 | ) | - | - | (1,305 | ) | |||||||||||||||||||||||
Tax
benefit of stock option
exercises
|
- | 348 | - | - | - | - | 348 | |||||||||||||||||||||||||
Stock
purchases for deferred
compensation
plan (38,000 shares)
|
- | - | - | - | (355 | ) | - | (355 | ) | |||||||||||||||||||||||
Balance
December 31, 2007
|
107 | 75,321 | 8,927 | (2,993 | ) | (1,165 | ) | 270 | 80,467 | |||||||||||||||||||||||
Total
other comprehensive loss, net of reclassification adjustments and
taxes
|
(1,661 | ) | - | - | - | - | - | (1,661 | ) | (1,661 | ) | |||||||||||||||||||||
Net
loss for the year
|
(472 | ) | - | - | (472 | ) | - | - | - | (472 | ) | |||||||||||||||||||||
Total
comprehensive loss
|
$ | (2,133 | ) | |||||||||||||||||||||||||||||
Stock
based compensation
|
- | 115 | - | - | - | - | 115 | |||||||||||||||||||||||||
Options
exercised (310,440 shares)
|
3 | 928 | - | - | - | - | 931 | |||||||||||||||||||||||||
Deferred
Compensation plan – forfeited shares to treasury stock (35,554
shares)
|
- | - | - | (340 | ) | 340 | - | - | ||||||||||||||||||||||||
Deferred
Compensation plan – new shares from treasury stock (35,554
shares)
|
- | - | - | 234 | (234 | ) | - | - | ||||||||||||||||||||||||
Tax
benefit of stock option
exercises
|
- | 265 | - | - | - | - | 265 | |||||||||||||||||||||||||
Stock
purchases for deferred
compensation
plan (53,800 shares)
|
- | - | - | - | (318 | ) | - | (318 | ) | |||||||||||||||||||||||
Balance
December 31, 2008
|
110 | 76,629 | 8,455 | (3,099 | ) | (1,377 | ) | (1,391 | ) | 79,327 | ||||||||||||||||||||||
Total
other comprehensive loss, net of reclassification adjustments and
taxes
|
1,253 | - | - | - | - | - | 1,253 | 1,253 | ||||||||||||||||||||||||
Net
loss for the year
|
(11,442 | ) | - | - | (11,442 | ) | - | - | - | (11,442 | ) | |||||||||||||||||||||
Total
comprehensive loss
|
$ | (10,189 | ) | |||||||||||||||||||||||||||||
Stock
based compensation
|
- | 278 | - | - | - | - | 278 | |||||||||||||||||||||||||
Options
exercised (34,287 shares)
|
1 | 165 | - | - | - | - | 166 | |||||||||||||||||||||||||
Cumulative
effect adjustment; reclassifying non-credit component of previously
recognized OTTI
|
- | - | 537 | - | - | (537 | ) | - | ||||||||||||||||||||||||
Tax
benefit of stock option
exercises
|
- | 14 | - | - | - | - | 14 | |||||||||||||||||||||||||
Deferred
compensation plan distributions and transfers
|
- | - | - | - | 1,167 | - | 1,167 | |||||||||||||||||||||||||
Stock
purchases for deferred compensation plan (63,400 shares)
|
- | - | - | - | (499 | ) | - | (499 | ) | |||||||||||||||||||||||
Balance
December 31, 2009
|
$ | 111 | $ | 77,086 | $ | (2,450 | ) | $ | (3,099 | ) | $ | (709 | ) | $ | (675 | ) | $ | 70,264 |
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income (loss)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 | ||||
Adjustments to reconcile net
income (loss) to net cash
|
||||||||||||
provided by operating
activities:
|
||||||||||||
Provision for loan
losses
|
14,200 | 7,499 | 1,590 | |||||||||
Writedown or loss on sale of
other real estate owned
|
1,571 | 1,615 | - | |||||||||
Gain on sale of other real
estate
owned
|
- | - | (185 | ) | ||||||||
Depreciation and
amortization
|
1,858 | 1,343 | 1,360 | |||||||||
Deferred income
taxes
|
(3,032 | ) | (472 | ) | (156 | ) | ||||||
Deferred compensation plan
distributions and transfers
|
1,167 | - | - | |||||||||
Stock purchases for deferred
compensation
plan
|
(499 | ) | (318 | ) | (355 | ) | ||||||
Share based
compensation
|
278 | 115 | 125 | |||||||||
Gain on sale of investment
securities
|
- | (5 | ) | - | ||||||||
Impairment charges on
investment
securities
|
2,073 | 1,438 | - | |||||||||
Amortization of discounts on
investment
securities
|
(203 | ) | (221 | ) | (194 | ) | ||||||
Increase in value of bank owned
life
insurance
|
(255 | ) | (400 | ) | (424 | ) | ||||||
(Increase) decrease in accrued
interest receivable and other assets
|
(8,188 | ) | (3,470 | ) | 2,111 | |||||||
Decreases in accrued interest
payable and other liabilities
|
(693 | ) | (1,511 | ) | (3,196 | ) | ||||||
Net cash (used in) provided by
operating
activities
|
(3,165 | ) | 5,141 | 7,561 | ||||||||
Cash
flows from investing activities:
|
||||||||||||
Purchase of investment
securities:
|
||||||||||||
Available for
sale
|
(130,783 | ) | (16,366 | ) | (9,639 | ) | ||||||
Proceeds from maturities and
calls of securities:
|
||||||||||||
Available for
sale
|
27,752 | 13,202 | 28,195 | |||||||||
Held to
maturity
|
43 | 84 | 51 | |||||||||
Purchase of FHLB
stock
|
- | (478 | ) | - | ||||||||
Proceeds from sale of FHLB
stock
|
- | - | 446 | |||||||||
Net decrease (increase) in
loans
|
71,383 | 9,485 | (34,268 | ) | ||||||||
Net proceeds from sale of other
real estate
owned
|
1,511 | 14,870 | 715 | |||||||||
Premises and equipment
expenditures
|
(12,139 | ) | (4,264 | ) | (7,000 | ) | ||||||
Net cash(used in) provided by
investing
activities
|
(42,233 | ) | 16,533 | (21,500 | ) | |||||||
Cash
flows from financing activities:
|
||||||||||||
Net proceeds from exercise of
stock
options
|
166 | 931 | 47 | |||||||||
Purchase of treasury
shares
|
- | - | (1,305 | ) | ||||||||
Tax benefit of stock option
exercises
|
14 | 265 | 348 | |||||||||
Net increase (decrease) in
demand, money market and savings deposits
|
160,139 | (12,419 | ) | (28,030 | ) | |||||||
Net (decrease) increase in time
deposits
|
(16,412 | ) | (29,269 | ) | 54,112 | |||||||
Net decrease in short term
borrowings
|
(77,309 | ) | (56,124 | ) | (26,290 | ) | ||||||
Increase in other
borrowings
|
- | 25,000 | - | |||||||||
Issuance of subordinated
debt
|
- | 11,135 | 5,155 | |||||||||
Net cash provided by (used in)
financing
activities
|
66,598 | (60,481 | ) | 4,037 | ||||||||
Increase
(decrease) in cash and cash
equivalents
|
21,200 | (38,807 | ) | (9,902 | ) | |||||||
Cash
and cash equivalents, beginning of
year
|
34,418 | 73,225 | 83,127 | |||||||||
Cash
and cash equivalents, end of
year
|
$ | 55,618 | $ | 34,418 | $ | 73,225 | ||||||
Supplemental
disclosures:
|
||||||||||||
Interest
paid
|
$ | 16,769 | $ | 26,260 | $ | 39,812 | ||||||
Income taxes
paid
|
- | 400 | 3,425 | |||||||||
Non-cash transfers from loans
to other real estate owned
|
8,113 | 21,384 | 3,639 | |||||||||
Non-cash treasury stock
transactions
|
- | 106 | - |
(In
thousands, except per share data)
|
2009
|
2008
|
2007
|
|||||||||
Net
income (loss) (numerator for basic earnings per share)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 | ||||
Adjustments
|
- | - | - | |||||||||
Net
income (loss for diluted earnings per share)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 |
2009
|
2008
|
2007
|
||||||||||||||||||||||
Shares
|
Per
Share
|
Shares
|
Per
Share
|
Shares
|
Per
Share
|
|||||||||||||||||||
Weighted
average shares outstanding for the period
(denominator for basic
earnings per share)
|
10,654,655 | 10,503,241 | 10,389,886 | |||||||||||||||||||||
Earnings
per share — basic
|
$ | (1.07 | ) | $ | (0.04 | ) | $ | 0.66 | ||||||||||||||||
Add
common stock equivalents representing dilutive stock
options
|
- | - | 271,854 | |||||||||||||||||||||
Effect
on basic earnings per share of CSE
|
- | - | (0.01 | ) | ||||||||||||||||||||
Weighted
average shares outstanding- diluted
|
10,654,655 | 10,503,241 | 10,661,740 | |||||||||||||||||||||
Earnings
(loss) per share — diluted
|
$ | (1.07 | ) | $ | (0.04 | ) | $ | 0.65 |
Year
Ended December 31
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
income (loss)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 | ||||
Other
comprehensive income (loss):
|
||||||||||||
Unrealized
losses on investment securities:
|
||||||||||||
arising
during the period, net of tax benefit of $40, $1,432 and
$6
|
(76 | ) | (2,580 | ) | (12 | ) | ||||||
Add:
reclassification adjustment for impairment charge included in
net
|
||||||||||||
income
(loss), net of tax benefit of $744, $514 and $ -
|
1,329 | 919 | - | |||||||||
Other
comprehensive income (loss)
|
1,253 | (1,661 | ) | (12 | ) | |||||||
Comprehensive
income (loss)
|
$ | (10,189 | ) | $ | (2,133 | ) | $ | 6,873 | ||||
Available
for Sale
|
Held
to Maturity
|
|||||||||||||||
(
Dollars in
thousands)
|
Amortized
Cost
|
Estimated
Fair
Value
|
Amortized
Cost
|
Estimated
Fair
Value
|
||||||||||||
Due
in 1 year or
less
|
$ | 150 | $ | 151 | $ | - | $ | - | ||||||||
After
1 year to 5
years
|
10,074 | 10,053 | 113 | 123 | ||||||||||||
After
5 years to 10
years
|
12,116 | 12,069 | 2 | 2 | ||||||||||||
After
10
years
|
164,116 | 163,131 | - | - | ||||||||||||
No
stated
maturity
|
– | – | 40 | 40 | ||||||||||||
Total
|
$ | 186,456 | $ | 185,404 | $ | 155 | $ | 165 |
(Dollars
in thousands)
|
Less
than 12 months
|
12
Months or more
|
Total
|
|||||||||||||||||||||
Description
of Securities
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
Mortgage
Backed Securities
|
$ | 60 | $ | - | $ | 32 | $ | 1 | $ | 92 | $ | 1 | ||||||||||||
Municipal
Securities
|
3,573 | 131 | 3,412 | 720 | 6,985 | 851 | ||||||||||||||||||
Corporate
Bonds
|
- | - | - | - | - | - | ||||||||||||||||||
Agency
Bonds
|
18,844 | 147 | - | - | 18,844 | 147 | ||||||||||||||||||
Trust
Preferred Securities
|
- | - | 3,926 | 2,863 | 3,926 | 2,863 | ||||||||||||||||||
Other
Securities
|
41 | - | 63 | 26 | 104 | 26 | ||||||||||||||||||
Total
Temporarily Impaired Securities
|
$ | 22,518 | $ | 278 | $ | 7,433 | $ | 3,610 | $ | 29,951 | $ | 3,888 |
(Dollars
in thousands)
|
Less
than 12 months
|
12
Months or more
|
Total
|
|||||||||||||||||||||
Description
of Securities
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
US
Government Agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Mortgage
Backed Securities
|
19 | - | 95 | 4 | 114 | 4 | ||||||||||||||||||
Municipal
Securities
|
4,878 | 549 | 2,030 | 416 | 6,908 | 965 | ||||||||||||||||||
Corporate
Bonds
|
1,991 | 4 | - | - | 1,991 | 4 | ||||||||||||||||||
Trust
Preferred Securities
|
93 | 85 | 3,278 | 2,986 | 3,371 | 3,071 | ||||||||||||||||||
Other
Securities
|
- | - | 60 | 28 | 60 | 28 | ||||||||||||||||||
Total
Temporarily Impaired Securities
|
$ | 6,981 | $ | 638 | $ | 5,463 | $ | 3,434 | $ | 12,444 | $ | 4,072 |
(Dollars
in thousands)
|
2009
|
2008
|
||||||
Commercial
|
$ | 88,926 | $ | 97,777 | ||||
Owner
occupied
|
85,481 | 71,821 | ||||||
Total
commercial
|
174,407 | 169,598 | ||||||
Consumer
and
residential
|
22,359 | 27,915 | ||||||
Commercial
real
estate
|
497,494 | 586,066 | ||||||
Total
loans
receivable
|
694,260 | 783,579 | ||||||
Less
deferred loan
fees
|
(442 | ) | (497 | ) | ||||
Less
allowance for loan
losses
|
(12,841 | ) | (8,409 | ) | ||||
Net
loans
receivable
|
$ | 680,977 | $ | 774,673 | ||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||
Impaired
loans without a valuation allowance
|
$ | 80,896 | $ | - | ||||
Impaired
loans with a valuation allowance
|
43,458 | 18,280 | ||||||
Total
impaired loans
|
$ | 124,354 | $ | 18,280 | ||||
Valuation
allowance related to impaired loans
|
$ | 7,099 | $ | 2,400 | ||||
Total
nonaccrual loans
|
26,034 | $ | 17,333 | |||||
Total
loans past-due ninety days or more and still accruing
|
- | - |
(Dollars
in thousands)
|
2009
|
2008
|
||||||
Balance
at beginning of
year
|
$ | 50,950 | $ | 13,874 | ||||
Additions
|
759 | 42,919 | ||||||
Repayments
|
(706 | ) | (5,843 | ) | ||||
Balance
at end of
year
|
$ | 51,003 | $ | 50,950 |
(Dollars
in thousands)
|
2009
|
2008
|
2007
|
|||||||||
Balance
at beginning of
year
|
$ | 8,409 | $ | 8,508 | $ | 8,058 | ||||||
Charge-offs
|
(9,770 | ) | (7,797 | ) | (1,506 | ) | ||||||
Recoveries
|
2 | 199 | 366 | |||||||||
Provision
for loan
losses
|
14,200 | 7,499 | 1,590 | |||||||||
Balance
at end of
year
|
$ | 12,841 | $ | 8,409 | $ | 8,508 |
(Dollars
in thousands)
|
Useful lives
|
2009
|
2008
|
||||||
Land
|
Indefinite
|
$ | 200 | $ | 200 | ||||
Bank
building
|
40
years
|
999 | 845 | ||||||
Leasehold
improvements
|
1
to 30 years
|
17,322 | 10,248 | ||||||
Furniture
and equipment
|
3
to 13 years
|
12,406 | 11,607 | ||||||
Construction
in process
|
6,192 | 2,373 | |||||||
37,119 | 25,273 | ||||||||
Less
accumulated depreciation
|
(12,629 | ) | (11,064 | ) | |||||
Net
premises and equipment
|
$ | 24,490 | $ | 14,209 |
(Dollars
in thousands)
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
|||||||||||||||||||||
Time
Certificates of Deposit
|
$ | 371,565 | $ | 2,918 | $ | 1,095 | $ | 736 | $ | 940 | $ | - | $ | 377,254 |
(Dollars
in thousands)
|
2009
|
2008
|
2007
|
|||||||||
Current
(benefit) provision
|
||||||||||||
Federal
|
$ | (3,201 | ) | $ | (587 | ) | $ | 3,429 | ||||
State
|
10 | 282 | - | |||||||||
Total
Current
|
(3,191 | ) | (305 | ) | 3,429 | |||||||
Deferred
|
(3,032 | ) | (472 | ) | (156 | ) | ||||||
Total
(benefit) provision for income
taxes
|
$ | (6,223 | ) | $ | (777 | ) | $ | 3,273 |
(Dollars
in thousands)
|
2009
|
2008
|
2007
|
|||||||||
Tax
provision computed at statutory
rate
|
$ | (6,183 | ) | $ | (425 | ) | $ | 3,556 | ||||
State
taxes, net of federal benefit
|
6 | 1 | - | |||||||||
Tax
exempt interest
|
(152 | ) | (144 | ) | (189 | ) | ||||||
Bank
owned life insurance
|
(89 | ) | (136 | ) | (144 | ) | ||||||
Transaction
costs related to merger
|
- | 84 | - | |||||||||
Other
|
195 | (157 | ) | 50 | ||||||||
Total (benefit) provision for
income taxes
|
$ | (6,223 | ) | $ | (777 | ) | $ | 3,273 |
2009
|
2008
|
|||||||
Allowance
for loan losses
|
$ | 4,611 | $ | 2,992 | ||||
Deferred
compensation
|
612 | 654 | ||||||
Unrealized
(gain) loss on securities available for sale
|
378 | 779 | ||||||
Realized
loss in other than temporary impairment charge
|
960 | 517 | ||||||
Interest
income on non-accrual loans
|
578 | 199 | ||||||
Deferred
loan costs
|
(487 | ) | (537 | ) | ||||
Other
|
208 | (375 | ) | |||||
Net
deferred tax asset
|
$ | 6,860 | $ | 4,229 |
(Dollars
in thousands)
|
||||
Year
Ended
|
Amount
|
|||
2010
|
$ | 2,118 | ||
2011
|
2,178 | |||
2012
|
2,234 | |||
2013
|
2,289 | |||
2014
|
2,331 | |||
Thereafter
|
37,113 | |||
Total
|
$ | 48,263 |
Actual
|
For
Capital
Adequacy
Purposes
|
To
be well
capitalized
under
regulatory
capital guidelines
|
||||||||||||||||||||||
(Dollars
in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
At
December 31, 2009
|
||||||||||||||||||||||||
Total
risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 89,786 | 11.55 | % | $ | 62,204 | 8.00 | % | $ | 77,755 | 10.00 | % | ||||||||||||
Company.
|
102,527 | 13.14 | % | 62,399 | 8.00 | % | - | - | ||||||||||||||||
Tier
one risk based capital
|
||||||||||||||||||||||||
Republic
|
80,028 | 10.29 | % | 31,102 | 4.00 | % | 46,653 | 6.00 | % | |||||||||||||||
Company.
|
92,739 | 11.89 | % | 31,200 | 4.00 | % | - | - | ||||||||||||||||
Tier
one leverage capital
|
||||||||||||||||||||||||
Republic
|
80,028 | 8.10 | % | 39,544 | 4.00 | % | 49,430 | 5.00 | % | |||||||||||||||
Company.
|
92,739 | 9.36 | % | 39,640 | 4.00 | % | - | - | ||||||||||||||||
At
December 31, 2008
|
||||||||||||||||||||||||
Total
risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 99,329 | 11.90 | % | $ | 66,750 | 8.00 | % | $ | 83,437 | 10.00 | % | ||||||||||||
Company.
|
110,927 | 13.26 | % | 66,915 | 8.00 | % | - | - | ||||||||||||||||
Tier
one risk based capital
|
||||||||||||||||||||||||
Republic
|
90,921 | 10.90 | % | 33,375 | 4.00 | % | 50,062 | 6.00 | % | |||||||||||||||
Company.
|
102,518 | 12.26 | % | 33,458 | 4.00 | % | - | - | ||||||||||||||||
Tier
one leverage capital
|
||||||||||||||||||||||||
Republic
|
90,921 | 9.91 | % | 36,712 | 4.00 | % | 45,890 | 5.00 | % | |||||||||||||||
Company.
|
102,518 | 11.14 | % | 36,801 | 4.00 | % | - | - |
|
Level 1
: Unadjusted
quoted prices in active markets that are accessible at the measurement
date for identical, unrestricted assets or
liabilities.
|
|
Level 2
: Quoted prices
in markets that are not active, or inputs that are observable either
directly or indirectly, for substantially the full term of the asset or
liability.
|
|
Level 3
: Prices or
valuation techniques that require inputs that are both significant to the
fair value measurement and unobservable (i.e., supported with little or no
market activity).
|
Description
|
December
31, 2009
|
(Level
1)
Quoted
Prices in Active Markets for Identical Assets
|
(Level
2) Significant Other Observable Inputs
|
(Level
3) Significant Unobservable Inputs
|
||||||||||||
(In
Thousands)
|
||||||||||||||||
Securities
available for sale
|
$ | 185,404 | $ | - | $ | 181,479 | $ | 3,926 |
Description
|
December
31, 2008
|
(Level
1)
Quoted
Prices in Active Markets for Identical Assets
|
(Level
2) Significant Other Observable Inputs
|
(Level
3) Significant Unobservable Inputs
|
||||||||||||
(In
Thousands)
|
||||||||||||||||
Securities
available for sale
|
$ | 83,032 | $ | - | $ | 78,100 | $ | 4,932 |
2009
|
2008
|
|||||||
(In
Thousands)
|
||||||||
Beginning
Balance, January 1,
|
$ | 4,932 | $ | - | ||||
Securities
transferred to Level 3 measurement
|
- | 9,986 | ||||||
Unrealized
gains/ (losses)
|
208 | (2,999 | ) | |||||
Impairment
charges on Level 3 securities
|
(2,073 | ) | (1,438 | ) | ||||
Adjustment
for non-credit component of previously recognized OTTI
|
837 | - | ||||||
Other,
including proceeds from calls of investment securities
|
22 | (617 | ) | |||||
Ending
balance, December 31,
|
$ | 3,926 | $ | 4,932 | ||||
Description
|
December
31, 2009
|
(Level
1)
Quoted
Prices in Active Markets for Identical Assets
|
(Level
2) Significant Other Observable Inputs
|
(Level
3) Significant Unobservable Inputs
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Impaired
loans
|
$ | 117,256 | $ | - | $ | - | $ | 117,256 | ||||||||
Other
real estate owned
|
$ | 13,611 | $ | - | $ | - | $ | 13,611 |
Description
|
December
31, 2008
|
(Level
1)
Quoted
Prices in Active Markets for Identical Assets
|
(Level
2) Significant Other Observable Inputs
|
(Level
3) Significant Unobservable Inputs
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Impaired
loans
|
$ | 15,934 | $ | - | $ | - | $ | 15,934 | ||||||||
Other
real estate owned
|
$ | 8,580 | $ | - | $ | - | $ | 8,580 |
December
31, 2009
|
December
31, 2008
|
|||||||||||||||
(Dollars
in Thousands)
|
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
||||||||||||
Balance
Sheet Data:
|
||||||||||||||||
Financial
Assets:
|
||||||||||||||||
Cash and cash
equivalents
|
$ | 55,618 | $ | 55,618 | $ | 34,418 | $ | 34,418 | ||||||||
Investment securities available
for
sale
|
185,404 | 185,404 | 83,032 | 83,032 | ||||||||||||
Investment securities held to
maturity
|
155 | 165 | 198 | 214 | ||||||||||||
Restricted
stock
|
6,836 | 6,836 | 6,836 | 6,836 | ||||||||||||
Loans receivable,
net
|
680,977 | 674,581 | 774,673 | 774,477 | ||||||||||||
Other real estate
owned
|
13,611 | 13,611 | 8,580 | 8,580 | ||||||||||||
Accrued interest
receivable
|
3,957 | 3,957 | 3,939 | 3,939 | ||||||||||||
Financial
Liabilities:
|
||||||||||||||||
Deposits:
|
||||||||||||||||
Demand, savings and money
market
|
$ | 505,640 | $ | 505,640 | $ | 345,501 | $ | 345,501 | ||||||||
Time
|
377,254 | 379,090 | 393,666 | 395,570 | ||||||||||||
Subordinated
debt
|
22,476 | 14,609 | 22,476 | 12,362 | ||||||||||||
Short-term
borrowings
|
- | - | 77,309 | 77,309 | ||||||||||||
FHLB
advances
|
25,000 | 25,291 | 25,000 | 26,031 | ||||||||||||
Accrued interest
payable
|
1,826 | 1,826 | 2,540 | 2,540 | ||||||||||||
Off
Balance Sheet financial instruments
|
||||||||||||||||
Commitments
to extend credit
|
- | - | - | - | ||||||||||||
Standby
letters-of-credit
|
- | - | - | - |
For
the Years Ended December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding,
beginning of year
|
467,988 | $ | 8.33 | 737,841 | $ | 6.39 | 661,449 | $ | 5.55 | |||||||||||||||
Granted
|
129,200 | 6.28 | 189,000 | 7.84 | 99,000 | 11.77 | ||||||||||||||||||
Exercised
|
(34,287 | ) | 4.84 | (310,440 | ) | 3.00 | (16,558 | ) | 2.81 | |||||||||||||||
Forfeited
|
(18,597 | ) | 9.46 | (148,413 | ) | 9.20 | (6,050 | ) | 12.14 | |||||||||||||||
Outstanding,
end of year
|
544,304 | 8.03 | 467,988 | 8.33 | 737,841 | 6.39 | ||||||||||||||||||
Options
exercisable at year-end
|
215,604 | 8.61 | 231,638 | 7.61 | 632,791 | 5.49 | ||||||||||||||||||
Weighted
average fair value of options granted during the year
|
$ | 2.12 | $ | 3.20 | $ | 4.61 |
For
the Years Ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Number
of Options exercised
|
34,287 | 310,440 | ||||||
Cash
received
|
$ | 165,950 | $ | 930,321 | ||||
Intrinsic
value
|
$ | 101,011 | $ | 963,561 | ||||
Tax
benefit
|
$ | 35,354 | $ | 337,246 | ||||
Options
outstanding
|
Options
exercisable
|
||||||||||||||||||||
Range
of exercise Prices
|
Number
outstanding at December
31,
2009
|
Weighted
Average
remaining
contractual
life
(years)
|
Weighted
Average
exercise
price
|
Shares
|
Weighted
Average
Exercise
Price
|
||||||||||||||||
$ 1.81 | 7,453 | 1.0 | $ | 1.81 | 7,453 | $ | 1.81 | ||||||||||||||
$ 2.77 | 743 | 2.1 | 2.77 | 743 | 2.77 | ||||||||||||||||
$ 5.70 to $8.72 | 381,699 | 7.9 | 7.06 | 80,499 | 6.26 | ||||||||||||||||
$ 9.93 to $12.13 | 154,409 | 6.0 | 10.76 | 126,909 | 10.54 | ||||||||||||||||
544,304 | $ | 8.03 | 215,604 | $ | 8.61 |
For
the Year Ended December 31, 2009
|
||||||||
Number
of Shares
|
Weighted
average grant date fair value
|
|||||||
Nonvested
at beginning of year
|
236,350 | $ | 3.50 | |||||
Granted
|
129,200 | 2.12 | ||||||
Vested
|
(25,850 | ) | 4.72 | |||||
Forfeited
|
(11,000 | ) | 4.61 | |||||
Nonvested
at end of year
|
328,700 | $ | 2.76 |
2009
|
2008
|
|||||||
ASSETS
|
||||||||
Cash
|
$ | 11,702 | $ | 11,579 | ||||
Corporation-obligated
mandatorily redeemable
capital
securities of subsidiary trust holding junior
obligations
of the
corporation
|
676 | 676 | ||||||
Investment in
subsidiaries
|
79,354 | 89,530 | ||||||
Other
assets
|
1,737 | 1,395 | ||||||
Total
Assets
|
$ | 93,469 | $ | 103,180 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Accrued
expenses
|
$ | 729 | $ | 1,377 | ||||
Corporation-obligated
mandatorily redeemable
|
||||||||
securities of
subsidiary trust holding solely junior
|
||||||||
subordinated
debentures of the
corporation
|
22,476 | 22,476 | ||||||
Total
Liabilities
|
23,205 | 23,853 | ||||||
Shareholders’
Equity:
|
||||||||
Total Shareholders’
Equity
|
70,264 | 79,327 | ||||||
Total Liabilities and
Shareholders’
Equity
|
$ | 93,469 | $ | 103,180 |
2009
|
2008
|
2007
|
||||||||||
Interest
income
|
$ | 36 | $ | 32 | $ | 19 | ||||||
Dividend
income from
subsidiaries
|
1,368 | 1,112 | 2,006 | |||||||||
Total
income
|
1,404 | 1,144 | 2,025 | |||||||||
Trust
preferred interest
expense
|
1,190 | 1,054 | 631 | |||||||||
Expenses
|
214 | 90 | 89 | |||||||||
Total
expenses
|
1,404 | 1,144 | 720 | |||||||||
Net
income before
taxes
|
- | - | 1,305 | |||||||||
Federal
income
tax
|
- | - | - | |||||||||
Income
before undistributed income of
subsidiaries
|
- | - | 1,305 | |||||||||
Total
equity in undistributed income (loss) of
subsidiaries
|
(11,442 | ) | (472 | ) | 5,580 | |||||||
Net
income
(loss)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 | ||||
Shareholders’
equity, beginning of
year
|
$ | 79,327 | $ | 80,467 | $ | 74,734 | ||||||
Stock
based
compensation
|
278 | 115 | 125 | |||||||||
Exercise
of stock
options
|
166 | 931 | 47 | |||||||||
Purchase
of treasury
shares
|
- | - | (1,305 | ) | ||||||||
Tax
benefit of stock options
exercises
|
14 | 265 | 348 | |||||||||
Deferred
compensation plan distributions and
transfers
|
1,167 | - | - | |||||||||
Stock
purchase for deferred compensation
plan
|
(499 | ) | (318 | ) | (355 | ) | ||||||
Net
income
(loss)
|
(11,442 | ) | (472 | ) | 6,885 | |||||||
Change
in unrealized (loss) gain on securities available for sale
|
1,253 | (1,661 | ) | (12 | ) | |||||||
Shareholders’
equity, end of
year
|
$ | 70,264 | $ | 79,327 | $ | 80,467 |
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net income
(loss)
|
$ | (11,442 | ) | $ | (472 | ) | $ | 6,885 | ||||
Adjustments to reconcile net
income to net cash
|
||||||||||||
provided by (used in) operating
activities:
|
||||||||||||
Deferred
compensation plan distributions and transfers
|
1,167 | - | - | |||||||||
Stock
purchases for deferred compensation plan
|
(499 | ) | (318 | ) | (355 | ) | ||||||
Stock
based
compensation
|
278 | 115 | 125 | |||||||||
Increase in other
assets
|
(355 | ) | (699 | ) | (391 | ) | ||||||
(Decrease) increase in other
liabilities
|
(648 | ) | 189 | 409 | ||||||||
Equity in undistributed losses
(income) of subsidiaries
|
11,442 | 472 | (5,580 | ) | ||||||||
Net cash (used in) provided by
operating activities
|
(57 | ) | (713 | ) | 1,093 | |||||||
Cash
flows from investing activities:
|
||||||||||||
Investment in
subsidiary
|
- | - | (5,000 | ) | ||||||||
Purchase
of corporation- obligated
|
||||||||||||
mandatorily
redeemable capital
|
||||||||||||
securities
of subsidiary trust holding
|
||||||||||||
junior
obligations of the
corporation
|
- | (335 | ) | (155 | ) | |||||||
Net cash used in investing
activities
|
- | (335 | ) | (5,155 | ) | |||||||
Cash
from Financing Activities:
|
||||||||||||
Exercise of stock
options
|
166 | 931 | 47 | |||||||||
Issuance
of corporation- obligated
|
||||||||||||
mandatorily
redeemable securities
|
||||||||||||
of
subsidiary trust holding solely
|
||||||||||||
junior
subordinated debentures
|
||||||||||||
of
the
corporation
|
- | 11,135 | 5,155 | |||||||||
Purchase
of treasury
shares
|
- | - | (1,305 | ) | ||||||||
Tax
benefit of stock option
exercises
|
14 | 265 | 348 | |||||||||
Net cash provided by financing
activities
|
180 | 12,331 | 4,245 | |||||||||
Increase
in
cash
|
123 | 11,283 | 183 | |||||||||
Cash,
beginning of
period
|
11,579 | 296 | 113 | |||||||||
Cash,
end of
period
|
$ | 11,702 | $ | 11,579 | $ | 296 |
For
the Quarter Ended, 2009
|
||||||||||||||||
(Dollars
in thousands, except per share data)
|
Fourth
|
Third
|
Second
|
First
|
||||||||||||
Income
Statement Data
|
||||||||||||||||
Total
interest
income
|
$ | 10,694 | $ | 10,713 | $ | 10,935 | $ | 11,128 | ||||||||
Total
interest
expense
|
3,734 | 3,908 | 4,143 | 4,270 | ||||||||||||
Net
interest income
(loss)
|
6,960 | 6,805 | 6,792 | 6,858 | ||||||||||||
Provision
for loan
losses
|
1,000 | 150 | 8,250 | 4,800 | ||||||||||||
Non-interest
income
(loss)
|
(1,205 | ) | 250 | 382 | 652 | |||||||||||
Non-interest
expense
|
8,555 | 6,700 | 7,219 | 8,485 | ||||||||||||
Provision
(benefit) for income
taxes
|
(1,368 | ) | 20 | (2,860 | ) | (2,015 | ) | |||||||||
Net
income
(loss)
|
$ | (2,432 | ) | $ | 185 | $ | (5,435 | ) | $ | (3,760 | ) | |||||
Per
Share Data (1)
|
||||||||||||||||
Basic:
|
||||||||||||||||
Net income
(loss)
|
$ | (0.23 | ) | $ | 0.02 | $ | (0.51 | ) | $ | (0.35 | ) | |||||
Diluted
:
|
||||||||||||||||
Net income
(loss)
|
$ | (0.23 | ) | $ | 0.02 | $ | (0.51 | ) | $ | (0.35 | ) |
For
the Quarter Ended, 2008
|
||||||||||||||||
(Dollars
in thousands, except per share data)
|
Fourth
|
Third
|
Second
|
First
|
||||||||||||
Income
Statement Data
|
||||||||||||||||
Total
interest
income
|
$ | 12,315 | $ | 13,532 | $ | 13,328 | $ | 14,801 | ||||||||
Total
interest
expense
|
5,264 | 5,914 | 6,324 | 7,579 | ||||||||||||
Net
interest
income
|
7,051 | 7,618 | 7,004 | 7,222 | ||||||||||||
Provision
for loan
losses
|
1,601 | 43 | 43 | 5,812 | ||||||||||||
Non-interest
income
(loss)
|
(931 | ) | 672 | 836 | 665 | |||||||||||
Non-interest
expense
|
5,370 | 6,008 | 6,061 | 6,448 | ||||||||||||
Provision
(benefit) for income
taxes
|
(435 | ) | 706 | 547 | (1,595 | ) | ||||||||||
Net
income
(loss)
|
$ | (416 | ) | $ | 1,533 | $ | 1,189 | $ | (2,778 | ) | ||||||
Per
Share Data (1)
|
||||||||||||||||
Basic:
|
||||||||||||||||
Net income
(loss)
|
$ | (0.04 | ) | $ | 0.14 | $ | 0.11 | $ | (0.27 | ) | ||||||
Diluted:
|
||||||||||||||||
Net income
(loss)
|
$ | (0.04 | ) | $ | 0.14 | $ | 0.11 | $ | (0.27 | ) | ||||||
(1)
Quarters do not add to full year EPS due to rounding
|
REPUBLIC
FIRST BANCORP, INC.
|
By: /s/
Harry D. Madonna
|
Date: 12/31/09
|
|
I,
Harry D. Madonna, certify that:
|
|
1.
|
I
have reviewed this Annual Report on Form 10-K for the year ended December
31, 2009 of Republic First Bancorp, Inc. (the
"Company");
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Company
as of, and for, the periods presented in this
report;
|
|
4.
|
The
Company's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a–15(f) and 15d-15(f)) for the Company and
have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the Company's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation;
and
|
|
(d) Disclosed
in this report any change in the Company’s internal control over financial
reporting that occurred during the Company’s most recent fiscal quarter
(the Company’s fourth fiscal quarter in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting;
and
|
|
5.
|
The
Company's other certifying officers and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the Company's auditors and the audit committee of the Company's board of
directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the Company's ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the Company's internal control
over financial reporting.
|
Date: March
16, 2010
|
/s/
Harry D. Madonna
|
||
Chairman,
President and Chief Executive Officer
|
|
1.
|
I
have reviewed this Annual Report on Form 10-K for the year ended December
31, 2009 of Republic First Bancorp, Inc. (the
"Company");
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Company
as of, and for, the periods presented in this
report;
|
|
4.
|
The
Company's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a–15(f) and 15d-15(f)) for the Company and
have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the Company's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the Company’s internal control over financial
reporting that occurred during the Company’s most recent fiscal quarter
(the Company’s fourth fiscal quarter in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting;
and
|
|
5.
|
The
Company's other certifying officers and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the Company's auditors and the audit committee of the Company's board of
directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the Company's ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the Company's internal control
over financial reporting.
|
Date: March
16, 2010
|
/s/
Frank A. Cavallaro
|
||
Senior
Vice President and Chief Financial Officer
|
|
(1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Company.
|
Date: March
16, 2010
|
By:
|
/s/
Harry D. Madonna
|
Harry
D. Madonna
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
|
(1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Company.
|
Date:
March 16, 2010
|
By:
|
/s/
Frank A. Cavallaro
|
Frank
A. Cavallaro
|
||
Senior
Vice President and Chief Financial
Officer
|