[ X ]
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2013.
|
[ ]
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ____ to ____.
|
Pennsylvania
|
23-2486815
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
50 South 16
th
Street, Philadelphia, Pennsylvania
|
19102
|
(Address of principal executive offices)
|
(Zip code)
|
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES [X] NO [ ]
|
|
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
YES [
X
] NO [ ]
|
|
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
|
Large accelerated filer [ ]
|
Accelerated filer
[ ]
|
Non-Accelerated filer [ ]
(Do not check if a smaller reporting company)
|
Smaller reporting company [
X
]
|
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
|
YES [ ] NO [X]
|
|
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
|
Common Stock, par value $0.01 per share
|
25,972,897
|
Title of Class
|
Number of Shares Outstanding as of May 9, 2013
|
REPUBLIC FIRST BANCORP, INC. AND SUBSIDIARIES
|
||
TABLE OF CONTENTS
|
||
Part I: Financial Information
|
Page
|
|
Item 1.
|
Financial Statements
|
|
Consolidated balance sheets as of March 31, 2013 and December 31, 2012 (unaudited)
|
||
Consolidated statements of income for the three months ended March 31, 2013 and 2012 (unaudited)
|
||
Consolidated statements of comprehensive income for the three months ended March 31, 2013 and 2012 (unaudited) | 3 | |
Consolidated statements of cash flows for the three months ended March 31, 2013 and 2012 (unaudited)
|
||
Consolidated statements of changes in shareholders’ equity for the three months ended March 31, 2013 and 2012 (unaudited)
|
||
Notes to consolidated financial statements (unaudited)
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
Item 4.
|
Controls and Procedures
|
|
Part II: Other Information
|
||
Item 1.
|
Legal Proceedings
|
|
Item 1A.
|
Risk Factors
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 3.
|
Defaults Upon Senior Securities
|
|
Item 4.
|
Mine Safety Disclosures
|
|
Item 5.
|
Other Information
|
|
Item 6.
|
Exhibits
|
|
Signatures
|
March 31, 2013
|
December 31, 2012
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 9,592 | $ | 9,097 | ||||
Interest bearing deposits with banks
|
62,337 | 118,907 | ||||||
Cash and cash equivalents
|
71,929 | 128,004 | ||||||
Investment securities available for sale, at fair value
|
173,550 | 189,259 | ||||||
Investment securities held to maturity, at amortized cost (fair value of $69 and $69, respectively)
|
68 | 67 | ||||||
Restricted stock, at cost
|
3,276 | 3,816 | ||||||
Loans held for sale
|
165 | 82 | ||||||
Loans receivable (net of allowance for loan losses of $9,353 and $9,542, respectively)
|
617,769 | 608,359 | ||||||
Premises and equipment, net
|
21,630 | 21,976 | ||||||
Other real estate owned, net
|
8,268 | 8,912 | ||||||
Accrued interest receivable
|
3,273 | 3,128 | ||||||
Bank owned life insurance
|
10,503 | 10,490 | ||||||
Other assets
|
15,653 | 14,565 | ||||||
Total Assets
|
$ | 926,084 | $ | 988,658 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Demand – non-interest bearing
|
$ | 149,857 | $ | 145,407 | ||||
Demand – interest bearing
|
159,601 | 180,440 | ||||||
Money market and savings
|
425,753 | 440,120 | ||||||
Time deposits
|
90,927 | 123,234 | ||||||
Total Deposits
|
826,138 | 889,201 | ||||||
Accrued interest payable
|
494 | 301 | ||||||
Other liabilities
|
6,456 | 6,778 | ||||||
Subordinated debt
|
22,476 | 22,476 | ||||||
Total Liabilities
|
855,564 | 918,756 | ||||||
Shareholders’ Equity
|
||||||||
Preferred stock, par value $0.01 per share: 10,000,000 shares authorized; no shares issued
|
- | - | ||||||
Common stock, par value $0.01 per share: 50,000,000 shares authorized; shares issued 26,501,742
|
265 | 265 | ||||||
Additional paid in capital
|
106,825 | 106,753 | ||||||
Accumulated deficit
|
(33,236 | ) | (34,228 | ) | ||||
Treasury stock at cost (416,303 shares)
|
(3,099 | ) | (3,099 | ) | ||||
Stock held by deferred compensation plan
|
(809 | ) | (809 | ) | ||||
Accumulated other comprehensive income
|
574 | 1,020 | ||||||
Total Shareholders’ Equity
|
70,520 | 69,902 | ||||||
Total Liabilities and Shareholders’ Equity
|
$ | 926,084 | $ | 988,658 |
Three Months Ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
Interest income
|
||||||||
Interest and fees on taxable loans
|
$ | 7,837 | $ | 8,020 | ||||
Interest and fees on tax-exempt loans
|
91 | 70 | ||||||
Interest and dividends on taxable investment securities
|
1,047 | 1,269 | ||||||
Interest and dividends on tax-exempt investment securities
|
73 | 116 | ||||||
Interest on federal funds sold and other interest-earning assets
|
59 | 101 | ||||||
Total interest income
|
9,107 | 9,576 | ||||||
Interest expense
|
||||||||
Demand- interest bearing
|
195 | 171 | ||||||
Money market and savings
|
502 | 863 | ||||||
Time deposits
|
279 | 581 | ||||||
Other borrowings
|
278 | 285 | ||||||
Total interest expense
|
1,254 | 1,900 | ||||||
Net interest income
|
7,853 | 7,676 | ||||||
Provision (credit) for loan losses
|
- | (750 | ) | |||||
Net interest income after provision (credit) for loan losses
|
7,853 | 8,426 | ||||||
Non-interest income
|
||||||||
Loan advisory and servicing fees
|
338 | 211 | ||||||
Gain on sales of SBA loans
|
650 | 1,086 | ||||||
Service fees on deposit accounts
|
234 | 210 | ||||||
Legal settlements
|
238 | 105 | ||||||
Gain on sale of investment securities
|
703 | - | ||||||
Other-than-temporary impairment losses
|
- | (17 | ) | |||||
Portion recognized in other comprehensive income (before taxes)
|
- | - | ||||||
Net impairment loss on investment securities
|
- | (17 | ) | |||||
Bank owned life insurance income
|
13 | 19 | ||||||
Other non-interest income
|
67 | 32 | ||||||
Total non-interest income
|
2,243 | 1,646 | ||||||
Non-interest expense
|
||||||||
Salaries and employee benefits
|
4,287 | 4,134 | ||||||
Occupancy
|
844 | 844 | ||||||
Depreciation and amortization
|
483 | 518 | ||||||
Legal
|
364 | 889 | ||||||
Other real estate owned
|
917 | 98 | ||||||
Advertising
|
101 | 50 | ||||||
Data processing
|
108 | 264 | ||||||
Insurance
|
158 | 134 | ||||||
Professional fees
|
323 | 293 | ||||||
Regulatory assessments and costs
|
344 | 338 | ||||||
Taxes, other
|
250 | 260 | ||||||
Other operating expenses
|
951 | 1,014 | ||||||
Total non-interest expense
|
9,130 | 8,836 | ||||||
Income before benefit for income taxes
|
966 | 1,236 | ||||||
Benefit for income taxes
|
(26 | ) | (69 | ) | ||||
Net income
|
$ | 992 | $ | 1,305 | ||||
Net income per share
|
||||||||
Basic
|
$ | 0.04 | $ | 0.05 | ||||
Diluted
|
$ | 0.04 | $ | 0.05 |
Three Months Ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
Net income
|
$ | 992 | $ | 1,305 | ||||
Other comprehensive income (loss), net of tax
|
||||||||
Unrealized gain on securities (pre-tax $6 and $230,
respectively)
|
4 | 147 | ||||||
Reclassification adjustment for securities gains (pre-tax
$703 and $-, respectively)
|
(450 | ) | - | |||||
Reclassification adjustment for impairment charge
(pre-tax $- and $17, respectively)
|
- | 11 | ||||||
Total other comprehensive income (loss)
|
(446 | ) | 158 | |||||
Total comprehensive income
|
$ | 546 | $ | 1,463 | ||||
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 992 | $ | 1,305 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision (credit) for loan losses
|
- | (750 | ) | |||||
Loss on sale of other real estate owned
|
- | 10 | ||||||
Write down of other real estate owned
|
809 | - | ||||||
Depreciation and amortization
|
483 | 518 | ||||||
Stock based compensation
|
72 | 89 | ||||||
Gain on sale and call of investment securities
|
(703 | ) | - | |||||
Impairment charges on investment securities
|
- | 17 | ||||||
Amortization of premiums on investment securities
|
177 | 67 | ||||||
Proceeds from sales of SBA loans originated for sale
|
6,563 | 11,408 | ||||||
SBA loans originated for sale
|
(5,996 | ) | (11,272 | ) | ||||
Gains on sales of SBA loans originated for sale
|
(650 | ) | (1,086 | ) | ||||
Increase in value of bank owned life insurance
|
(13 | ) | (19 | ) | ||||
Increase in accrued interest receivable and other assets
|
(982 | ) | (206 | ) | ||||
(Decrease) increase in accrued interest payable and other liabilities
|
(129 | ) | 104 | |||||
Net cash provided by operating activities
|
623 | 185 | ||||||
Cash flows from investing activities
|
||||||||
Purchase of investment securities available for sale
|
(1,425 | ) | (14,775 | ) | ||||
Proceeds from the sale of securities available for sale
|
7,946 | - | ||||||
Proceeds from the maturity or call of securities available for sale
|
9,016 | 6,450 | ||||||
Proceeds from redemption of FHLB stock
|
540 | 259 | ||||||
Net increase in loans
|
(9,575 | ) | (14,314 | ) | ||||
Net proceeds from sale of other real estate owned
|
- | 334 | ||||||
Premises and equipment expenditures
|
(137 | ) | (142 | ) | ||||
Net cash provided by (used in) investing activities
|
6,365 | (22,188 | ) | |||||
Cash flows from financing activities
|
||||||||
Net decrease in demand, money market and savings deposits
|
(30,756 | ) | (55,376 | ) | ||||
Net decrease in time deposits
|
(32,307 | ) | (39,861 | ) | ||||
Net increase in short-term borrowings
|
- | 4,516 | ||||||
Net cash used in financing activities
|
(63,063 | ) | (90,721 | ) | ||||
Net decrease in cash and cash equivalents
|
(56,075 | ) | (112,724 | ) | ||||
Cash and cash equivalents, beginning of year
|
128,004 | 230,955 | ||||||
Cash and cash equivalents, end of period
|
$ | 71,929 | $ | 118,231 | ||||
Supplemental disclosures:
|
||||||||
Interest paid
|
$ | 1,061 | $ | 1,989 | ||||
Non-cash transfers from loans to other real estate owned
|
$ | 165 | $ | - |
Common Stock
|
Additional Paid in Capital
|
Accumulated Deficit
|
Treasury Stock
|
Stock Held by Deferred Compensation Plan
|
Accumulated Other Comprehensive Income (Loss)
|
Total Shareholders’ Equity
|
||||||||||||||||||||||
Balance January 1, 2013
|
$ | 265 | $ | 106,753 | $ | (34,228 | ) | $ | (3,099 | ) | $ | (809 | ) | $ | 1,020 | $ | 69,902 | |||||||||||
Net income
|
992 | 992 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(446 | ) | (446 | ) | ||||||||||||||||||||||||
Stock based compensation
|
72 | 72 | ||||||||||||||||||||||||||
Balance March 31, 2013
|
$ | 265 | $ | 106,825 | $ | (33,236 | ) | $ | (3,099 | ) | $ | (809 | ) | $ | 574 | $ | 70,520 | |||||||||||
Balance January 1, 2012
|
$ | 265 | $ | 106,383 | $ | (37,842 | ) | $ | (3,099 | ) | $ | (809 | ) | $ | (47 | ) | $ | 64,851 | ||||||||||
Net income
|
1,305 | 1,305 | ||||||||||||||||||||||||||
Other comprehensive income, net of
tax
|
158 | 158 | ||||||||||||||||||||||||||
Stock based compensation
|
89 | 89 | ||||||||||||||||||||||||||
Balance March 31, 2012
|
$ | 265 | $ | 106,472 | $ | (36,537 | ) | $ | (3,099 | ) | $ | (809 | ) | $ | 111 | $ | 66,403 | |||||||||||
2013
|
2012
|
|||||||
Dividend yield
(1)
|
0.0 | % | 0.0 | % | ||||
Expected volatility
(2)
|
54.88% to 54.89
|
% | 53.12 | % | ||||
Risk-free interest rate
(3)
|
1.28% to 1.41
|
% | 1.36 | % | ||||
Expected life
(4)
|
7.0 years
|
7.0 years
|
||||||
2013
|
2012
|
|||||||
Stock based compensation expense recognized
|
$ | 72,000 | $ | 89,000 | ||||
Number of unvested stock options
|
903,563 | 855,600 | ||||||
Fair value of unvested stock options
|
$ | 1,231,859 | $ | 1,555,074 | ||||
Amount remaining to be recognized as expense
|
$ | 751,865 | $ | 734,256 |
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Net income (basic and diluted)
|
$ | 992 | $ | 1,305 | ||||
Weighted average shares outstanding
|
25,973 | 25,973 | ||||||
Net income per share – basic
|
$ | 0.04 | $ | 0.05 | ||||
Weighted average shares outstanding (including
dilutive CSEs)
|
26,015 | 25,976 | ||||||
Net income per share – diluted
|
$ | 0.04 | $ | 0.05 |
At March 31, 2013
|
||||||||||||||||
(dollars in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair
Value
|
||||||||||||
Collateralized mortgage obligations
|
$ | 90,190 | $ | 1,395 | $ | (103 | ) | $ | 91,482 | |||||||
Mortgage-backed securities
|
19,379 | 880 | (27 | ) | 20,232 | |||||||||||
Municipal securities
|
5,360 | 196 | (5 | ) | 5,551 | |||||||||||
Corporate bonds
|
32,217 | 854 | (47 | ) | 33,024 | |||||||||||
Asset-backed securities
|
19,601 | 288 | - | 19,889 | ||||||||||||
Trust preferred securities
|
5,777 | - | (2,539 | ) | 3,238 | |||||||||||
Other securities
|
131 | 3 | - | 134 | ||||||||||||
Total securities available for sale
|
$ | 172,655 | $ | 3,616 | $ | (2,721 | ) | $ | 173,550 | |||||||
U.S. Government agencies
|
$ | 1 | $ | - | $ | - | $ | 1 | ||||||||
Other securities
|
67 | 1 | - | 68 | ||||||||||||
Total securities held to maturity
|
$ | 68 | $ | 1 | $ | - | $ | 69 |
At December 31, 2012
|
||||||||||||||||
(dollars in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair
Value
|
||||||||||||
Collateralized mortgage obligations
|
$ | 97,959 | $ | 1,830 | $ | (6 | ) | $ | 99,783 | |||||||
Mortgage-backed securities
|
20,626 | 1,014 | - | 21,640 | ||||||||||||
Municipal securities
|
11,150 | 967 | (16 | ) | 12,101 | |||||||||||
Corporate bonds
|
32,231 | 639 | (185 | ) | 32,685 | |||||||||||
Asset-backed securities
|
19,785 | 135 | (191 | ) | 19,729 | |||||||||||
Trust preferred securities
|
5,785 | - | (2,598 | ) | 3,187 | |||||||||||
Other securities
|
131 | 3 | - | 134 | ||||||||||||
Total securities available for sale
|
$ | 187,667 | $ | 4,588 | $ | (2,996 | ) | $ | 189,259 | |||||||
U.S. Government agencies
|
$ | 1 | $ | - | $ | - | $ | 1 | ||||||||
Other securities
|
66 | 2 | - | 68 | ||||||||||||
Total securities held to maturity
|
$ | 67 | $ | 2 | $ | - | $ | 69 |
Available for Sale
|
Held to Maturity
|
|||||||||||||||
(dollars in thousands)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
Due in 1 year or less
|
$ | 20,105 | $ | 20,507 | $ | 47 | $ | 48 | ||||||||
After 1 year to 5 years
|
66,642 | 68,398 | 21 | 21 | ||||||||||||
After 5 years to 10 years
|
77,801 | 76,206 | - | - | ||||||||||||
After 10 years
|
8,107 | 8,439 | - | - | ||||||||||||
Total
|
$ | 172,655 | $ | 173,550 | $ | 68 | $ | 69 |
(dollars in thousands)
|
2013
|
2012
|
||||||
Beginning Balance, January 1st
|
$ | 3,959 | $ | 3,925 | ||||
Additional credit-related impairment loss on securities for which an
|
||||||||
other-than-temporary impairment was previously recognized
|
- | 17 | ||||||
Reductions for securities paid off during the period
|
- | - | ||||||
Reductions for securities for which the amount previously recognized in other
|
- | - | ||||||
comprehensive income was recognized in earnings because the Company
|
- | - | ||||||
intends to sell the security
|
- | - | ||||||
Ending Balance, March 31st
,
|
$ | 3,959 | $ | 3,942 |
At March 31, 2013
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
Collateralized mortgage obligations
|
$ | 19,395 | $ | 103 | $ | - | $ | - | $ | 19,395 | $ | 103 | ||||||||||||
Mortgage-backed securities
|
1,233 | 27 | - | - | 1,233 | 27 | ||||||||||||||||||
Municipal securities
|
1,420 | 5 | - | - | 1,420 | 5 | ||||||||||||||||||
Corporate bonds
|
- | - | 4,953 | 47 | 4,953 | 47 | ||||||||||||||||||
Trust preferred securities
|
- | - | 3,238 | 2,539 | 3,238 | 2,539 | ||||||||||||||||||
Total
|
$ | 22,048 | $ | 135 | $ | 8,191 | $ | 2,586 | $ | 30,239 | $ | 2,721 |
At December 31, 2012
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
Collateralized mortgage obligations
|
$ | 9,991 | $ | 6 | $ | - | $ | - | $ | 9,991 | $ | 6 | ||||||||||||
Municipal securities
|
1,050 | 16 | - | - | 1,050 | 16 | ||||||||||||||||||
Corporate bonds
|
- | - | 9,811 | 185 | 9,811 | 185 | ||||||||||||||||||
Asset-backed securities
|
9,218 | 191 | - | - | 9,218 | 191 | ||||||||||||||||||
Trust preferred securities
|
- | - | 3,187 | 2,598 | 3,187 | 2,598 | ||||||||||||||||||
Total
|
$ | 20,259 | $ | 213 | $ | 12,998 | $ | 2,783 | $ | 33,257 | $ | 2,996 |
(dollars in thousands)
|
Class /
Tranche
|
Amortized Cost
|
Fair
Value
|
Unrealized Losses
|
Lowest Credit Rating Assigned
|
Number of Banks Currently Performing
|
Deferrals / Defaults as % of Current Balance
|
Conditional Default Rates for 2013 and beyond
|
Cumulative OTTI Life to Date
|
||||||||||||||||||||||||
Preferred Term Securities IV
|
Mezzanine
Notes
|
$ | 49 | $ | 40 | $ | (9 | ) |
CCC
|
5 | 27 | % | 0.33 | % | $ | - | |||||||||||||||||
Preferred Term Securities VII
|
Mezzanine
Notes
|
1,489 | 1,140 | (349 | ) | C | 12 | 49 | 0.34 | 2,173 | |||||||||||||||||||||||
TPREF Funding II
|
Class B Notes
|
739 | 338 | (401 | ) | C | 16 | 44 | 0.39 | 260 | |||||||||||||||||||||||
TPREF Funding III
|
Class B2 Notes
|
1,520 | 727 | (793 | ) | C | 17 | 35 | 0.33 | 480 | |||||||||||||||||||||||
Trapeza CDO I, LLC
|
Class C1 Notes
|
556 | 255 | (301 | ) | C | 10 | 47 | 0.38 | 470 | |||||||||||||||||||||||
ALESCO Preferred
Funding IV
|
Class B1 Notes
|
604 | 318 | (286 | ) | C | 39 | 14 | 0.36 | 396 | |||||||||||||||||||||||
ALESCO Preferred
Funding V
|
Class C1 Notes
|
820 | 420 | (400 | ) | C | 37 | 27 | 0.36 | 180 | |||||||||||||||||||||||
Total
|
$ | 5,777 | $ | 3,238 | $ | (2,539 | ) | 136 | 34 | % | $ | 3,959 |
(dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||||
Commercial real estate
|
$ | 332,407 | $ | 335,561 | ||||
Construction and land development
|
27,614 | 26,659 | ||||||
Commercial and industrial
|
110,785 | 103,768 | ||||||
Owner occupied real estate
|
129,692 | 126,242 | ||||||
Consumer and other
|
24,359 | 23,449 | ||||||
Residential mortgage
|
2,425 | 2,442 | ||||||
Total loans receivable
|
627,282 | 618,121 | ||||||
Deferred costs (fees)
|
(160 | ) | (220 | ) | ||||
Allowance for loan losses
|
(9,353 | ) | (9,542 | ) | ||||
Net loans receivable
|
$ | 617,769 | $ | 608,359 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
(dollars in thousands)
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Commercial real estate
|
$ | 21,146 | $ | 21,901 | $ | - | $ | 19,231 | $ | 20,000 | $ | - | ||||||||||||
Construction and land development
|
3,663 | 9,984 | - | 3,153 | 6,312 | - | ||||||||||||||||||
Commercial and industrial
|
2,041 | 2,958 | - | 3,793 | 7,106 | - | ||||||||||||||||||
Owner occupied real estate
|
- | - | - | 505 | 505 | - | ||||||||||||||||||
Consumer and other
|
762 | 1,015 | - | 912 | 1,146 | - | ||||||||||||||||||
Total
|
$ | 27,612 | $ | 35,858 | $ | - | $ | 27,594 | $ | 35,069 | $ | - |
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial real estate
|
$ | 3,343 | $ | 3,344 | $ | 607 | $ | 6,085 | $ | 6,085 | $ | 1,077 | ||||||||||||
Construction and land development
|
- | - | - | 593 | 3,700 | 70 | ||||||||||||||||||
Commercial and industrial
|
4,829 | 7,337 | 1,327 | 3,147 | 3,255 | 861 | ||||||||||||||||||
Owner occupied real estate
|
3,431 | 3,431 | 840 | 3,450 | 3,450 | 860 | ||||||||||||||||||
Consumer and other
|
- | - | - | 146 | 155 | 75 | ||||||||||||||||||
Total
|
$ | 11,603 | $ | 14,112 | $ | 2,774 | $ | 13,421 | $ | 16,645 | $ | 2,943 |
Total:
|
||||||||||||||||||||||||
Commercial real estate
|
$ | 24,489 | $ | 25,245 | $ | 607 | $ | 25,316 | $ | 26,085 | $ | 1,077 | ||||||||||||
Construction and land development
|
3,663 | 9,984 | - | 3,746 | 10,012 | 70 | ||||||||||||||||||
Commercial and industrial
|
6,870 | 10,295 | 1,327 | 6,940 | 10,361 | 861 | ||||||||||||||||||
Owner occupied real estate
|
3,431 | 3,431 | 840 | 3,955 | 3,955 | 860 | ||||||||||||||||||
Consumer and other
|
762 | 1,015 | - | 1,058 | 1,301 | 75 | ||||||||||||||||||
Total
|
$ | 39,215 | $ | 49,970 | $ | 2,774 | $ | 41,015 | $ | 51,714 | $ | 2,943 |
Three Months Ended March 31,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
(dollars in thousands)
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial real estate
|
$ | 20,189 | $ | 219 | $ | 14,615 | $ | 193 | ||||||||
Construction and land development
|
3,408 | 21 | 3,428 | 30 | ||||||||||||
Commercial and industrial
|
2,917 | 6 | 2,627 | 35 | ||||||||||||
Owner occupied real estate
|
252 | - | 1,490 | 27 | ||||||||||||
Consumer and other
|
837 | 1 | 916 | 2 | ||||||||||||
Total
|
$ | 27,603 | $ | 247 | $ | 23,076 | $ | 287 |
With an allowance recorded:
|
||||||||||||||||
Commercial real estate
|
$ | 4,714 | $ | 36 | $ | 5,637 | $ | 55 | ||||||||
Construction and land development
|
296 | - | 3,428 | - | ||||||||||||
Commercial and industrial
|
3,988 | 14 | 5,595 | 14 | ||||||||||||
Owner occupied real estate
|
3,441 | 36 | 1,350 | 12 | ||||||||||||
Consumer and other
|
73 | - | - | - | ||||||||||||
Total
|
$ | 12,512 | $ | 86 | $ | 16,010 | $ | 81 |
Total:
|
||||||||||||||||
Commercial real estate
|
$ | 24,903 | $ | 255 | $ | 20,252 | $ | 248 | ||||||||
Construction and land development
|
3,704 | 21 | 6,856 | 30 | ||||||||||||
Commercial and industrial
|
6,905 | 20 | 8,222 | 49 | ||||||||||||
Owner occupied real estate
|
3,693 | 36 | 2,840 | 39 | ||||||||||||
Consumer and other
|
910 | 1 | 916 | 2 | ||||||||||||
Total
|
$ | 40,115 | $ | 333 | $ | 39,086 | $ | 368 |
(dollars in thousands)
|
Commercial Real Estate
|
Construction and Land Development
|
Commercial and Industrial
|
Owner Occupied Real Estate
|
Consumer and Other
|
Residential Mortgage
|
Unallocated
|
Total
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 607 | $ | - | $ | 1,327 | $ | 840 | $ | - | $ | - | $ | - | $ | 2,774 | ||||||||||||||||
Collectively evaluated for impairment
|
2,650 | 1,835 | 1,009 | 457 | 170 | 14 | 444 | 6,579 | ||||||||||||||||||||||||
Total allowance for loan losses
|
$ | 3,257 | $ | 1,835 | $ | 2,336 | $ | 1,297 | $ | 170 | $ | 14 | $ | 444 | $ | 9,353 | ||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||||||
Loans evaluated individually
|
$ | 24,489 | $ | 3,663 | $ | 6,870 | $ | 3,431 | $ | 762 | $ | - | $ | - | $ | 39,215 | ||||||||||||||||
Loans evaluated collectively
|
307,918 | 23,951 | 103,915 | 126,261 | 23,597 | 2,425 | - | 588,067 | ||||||||||||||||||||||||
Total loans receivable
|
$ | 332,407 | $ | 27,614 | $ | 110,785 | $ | 129,692 | $ | 24,359 | $ | 2,425 | $ | - | $ | 627,282 | ||||||||||||||||
(dollars in thousands)
|
Commercial Real Estate
|
Construction and Land Development
|
Commercial and Industrial
|
Owner Occupied Real Estate
|
Consumer and Other
|
Residential Mortgage
|
Unallocated
|
Total
|
||||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,077 | $ | 70 | $ | 861 | $ | 860 | $ | 75 | $ | - | $ | - | $ | 2,943 | ||||||||||||||||
Collectively evaluated for impairment
|
2,902 | 1,203 | 1,019 | 1,107 | 159 | 17 | 192 | 6,599 | ||||||||||||||||||||||||
Total allowance for loan losses
|
$ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | ||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||||||
Loans evaluated individually
|
$ | 25,316 | $ | 3,746 | $ | 6,940 | $ | 3,955 | $ | 1,058 | $ | - | $ | - | $ | 41,015 | ||||||||||||||||
Loans evaluated collectively
|
310,245 | 22,913 | 96,828 | 122,287 | 22,391 | 2,442 | - | 577,106 | ||||||||||||||||||||||||
Total loans receivable
|
$ | 335,561 | $ | 26,659 | $ | 103,768 | $ | 126,242 | $ | 23,449 | $ | 2,442 | $ | - | $ | 618,121 | ||||||||||||||||
(dollars in thousands)
|
30-59
Days Past Due
|
60-89
Days Past Due
|
Greater than 90 Days
|
Total
Past Due
|
Current
|
Total
Loans Receivable
|
Loans Receivable > 90 Days and Accruing
|
|||||||||||||||||||||
At March 31, 2013
|
||||||||||||||||||||||||||||
Commercial real estate
|
$ | 16,835 | $ | 8,899 | $ | 7,822 | $ | 33,556 | $ | 298,851 | $ | 332,407 | $ | - | ||||||||||||||
Construction and land development
|
- | 260 | 1,622 | 1,882 | 25,732 | 27,614 | - | |||||||||||||||||||||
Commercial and industrial
|
- | 640 | 4,642 | 5,282 | 105,503 | 110,785 | - | |||||||||||||||||||||
Owner occupied real estate
|
121 | 1,489 | 463 | 2,073 | 127,619 | 129,692 | - | |||||||||||||||||||||
Consumer and other
|
326 | - | 566 | 892 | 23,467 | 24,359 | - | |||||||||||||||||||||
Residential mortgage
|
- | - | - | - | 2,425 | 2,425 | - | |||||||||||||||||||||
Total
|
$ | 17,282 | $ | 11,288 | $ | 15,115 | $ | 43,685 | $ | 583,597 | $ | 627,282 | $ | - |
(dollars in thousands)
|
30-59
Days Past Due
|
60-89
Days Past Due
|
Greater than 90 Days
|
Total
Past Due
|
Current
|
Total
Loans Receivable
|
Loans Receivable > 90 Days and Accruing
|
|||||||||||||||||||||
At December 31, 2012
|
||||||||||||||||||||||||||||
Commercial real estate
|
$ | 772 | $ | 26,000 | $ | 7,987 | $ | 34,759 | $ | 300,802 | $ | 335,561 | $ | - | ||||||||||||||
Construction and land development
|
- | 261 | 1,342 | 1,603 | 25,056 | 26,659 | - | |||||||||||||||||||||
Commercial and industrial
|
86 | - | 4,693 | 4,779 | 98,989 | 103,768 | - | |||||||||||||||||||||
Owner occupied real estate
|
285 | 1,562 | 968 | 2,815 | 123,427 | 126,242 | - | |||||||||||||||||||||
Consumer and other
|
- | - | 1,058 | 1,058 | 22,391 | 23,449 | 202 | |||||||||||||||||||||
Residential mortgage
|
- | - | - | - | 2,442 | 2,442 | - | |||||||||||||||||||||
Total
|
$ | 1,143 | $ | 27,823 | $ | 16,048 | $ | 45,014 | $ | 573,107 | $ | 618,121 | $ | 202 |
(dollars in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
At March 31, 2013:
|
||||||||||||||||||||
Commercial real estate
|
$ | 297,516 | $ | 9,510 | $ | 25,381 | $ | - | $ | 332,407 | ||||||||||
Construction and land development
|
23,691 | 260 | 3,663 | - | 27,614 | |||||||||||||||
Commercial and industrial
|
103,141 | 640 | 7,004 | - | 110,785 | |||||||||||||||
Owner occupied real estate
|
125,362 | 899 | 3,431 | - | 129,692 | |||||||||||||||
Consumer and other
|
23,145 | 194 | 1,020 | - | 24,359 | |||||||||||||||
Residential mortgage
|
2,425 | - | - | - | 2,425 | |||||||||||||||
Total
|
$ | 575,280 | $ | 11,503 | $ | 40,499 | $ | - | $ | 627,282 |
(dollars in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
At December 31, 2012:
|
||||||||||||||||||||
Commercial real estate
|
$ | 300,174 | $ | 9,174 | $ | 26,213 | $ | - | $ | 335,561 | ||||||||||
Construction and land development
|
22,652 | 261 | 3,746 | - | 26,659 | |||||||||||||||
Commercial and industrial
|
96,051 | 642 | 7,075 | - | 103,768 | |||||||||||||||
Owner occupied real estate
|
121,381 | 906 | 3,955 | - | 126,242 | |||||||||||||||
Consumer and other
|
22,033 | 100 | 1,316 | - | 23,449 | |||||||||||||||
Residential mortgage
|
2,442 | - | - | - | 2,442 | |||||||||||||||
Total
|
$ | 564,733 | $ | 11,083 | $ | 42,305 | $ | - | $ | 618,121 |
(dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||||
Commercial real estate
|
$ | 7,822 | $ | 7,987 | ||||
Construction and land development
|
1,622 | 1,342 | ||||||
Commercial and industrial
|
4,642 | 4,693 | ||||||
Owner occupied real estate
|
463 | 968 | ||||||
Consumer and other
|
566 | 856 | ||||||
Residential mortgage
|
- | - | ||||||
Total
|
$ | 15,115 | $ | 15,846 |
(dollars in thousands)
|
Accrual Status
|
Non-Accrual Status
|
Total Modifications
|
|||||||||
March 31, 2013
|
||||||||||||
Commercial real estate
|
$ | 908 | $ | - | $ | 908 | ||||||
Construction and land development
|
2,041 | - | 2,041 | |||||||||
Commercial and industrial
|
2,228 | - | 2,228 | |||||||||
Owner occupied real estate
|
1,923 | - | 1,923 | |||||||||
Consumer and other
|
- | - | - | |||||||||
Residential mortgage
|
- | - | - | |||||||||
Total
|
$ | 7,100 | $ | - | $ | 7,100 | ||||||
December 31, 2012
|
||||||||||||
Commercial real estate
|
$ | 1,261 | $ | - | $ | 1,261 | ||||||
Construction and land development
|
2,069 | - | 2,069 | |||||||||
Commercial and industrial
|
2,248 | - | 2,248 | |||||||||
Owner occupied real estate
|
1,933 | - | 1,933 | |||||||||
Consumer and other
|
- | - | - | |||||||||
Residential mortgage
|
- | - | - | |||||||||
Total
|
$ | 7,511 | $ | - | $ | 7,511 |
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).
|
(dollars in thousands)
|
Total
|
(Level 1)
Quoted Prices in Active Markets for Identical Assets
|
(Level 2)
Significant Other Observable Inputs
|
(Level 3)
Significant Unobservable Inputs
|
||||||||||||
March 31, 2013
|
||||||||||||||||
Collateralized mortgage obligations
|
$ | 91,482 | $ | - | $ | 91,482 | $ | - | ||||||||
Mortgage-backed securities
|
20,232 | - | 20,232 | - | ||||||||||||
Municipal securities
|
5,551 | - | 5,551 | - | ||||||||||||
Corporate bonds
|
33,024 | - | 30,017 | 3,007 | ||||||||||||
Asset-backed securities
|
19,889 | - | 19,889 | - | ||||||||||||
Trust Preferred Securities
|
3,238 | - | - | 3,238 | ||||||||||||
Other securities
|
134 | - | 134 | - | ||||||||||||
Securities Available for Sale
|
$ | 173,550 | $ | - | $ | 167,305 | $ | 6,245 | ||||||||
December 31, 2012
|
||||||||||||||||
Collateralized mortgage obligations
|
$ | 99,783 | $ | - | $ | 99,783 | $ | - | ||||||||
Mortgage-backed securities
|
21,640 | - | 21,640 | - | ||||||||||||
Municipal securities
|
12,101 | - | 12,101 | - | ||||||||||||
Corporate bonds
|
32,685 | - | 29,678 | 3,007 | ||||||||||||
Asset-backed securities
|
19,729 | - | 19,729 | - | ||||||||||||
Trust Preferred Securities
|
3,187 | - | - | 3,187 | ||||||||||||
Other securities
|
134 | - | 134 | - | ||||||||||||
Securities Available for Sale
|
$ | 189,259 | $ | - | $ | 183,065 | $ | 6,194 |
Three Months Ended
March 31, 2013
|
Three Months Ended
March 31, 2012
|
|||||||||||||||
Level 3 Investments Only
(dollars in thousands)
|
Trust Preferred Securities
|
Corporate Bonds
|
Trust Preferred Securities
|
Corporate Bonds
|
||||||||||||
Balance, January 1,
|
$ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | ||||||||
Unrealized gains (losses)
|
58 | - | 6 | 3 | ||||||||||||
Paydowns
|
(7 | ) | - | - | - | |||||||||||
Impairment charges on Level 3
|
- | - | (17 | ) | - | |||||||||||
Balance, March 31,
|
$ | 3,238 | $ | 3,007 | $ | 3,399 | $ | 3,007 |
(dollars in thousands)
|
Total
|
(Level 1)
Quoted Prices in Active Markets for Identical Assets
|
(Level 2)
Significant Other Observable Inputs
|
(Level 3)
Significant Unobservable Inputs
|
||||||||||||
March 31, 2013:
|
||||||||||||||||
Impaired loans
|
$ | 9,291 | $ | - | $ | - | $ | 9,291 | ||||||||
Other real estate owned
|
3,431 | - | - | 3,431 | ||||||||||||
SBA servicing assets
|
2,491 | - | - | 2,491 | ||||||||||||
December 31, 2012:
|
||||||||||||||||
Impaired loans
|
$ | 19,876 | $ | - | $ | - | $ | 19,876 | ||||||||
Other real estate owned
|
3,642 | - | - | 3,642 | ||||||||||||
SBA servicing assets
|
2,340 | - | - | 2,340 |
Quantitative Information about Level 3 Fair Value Measurements
March 31, 2013
|
||||||||
Asset Description
|
Fair Value
|
Valuation Technique
|
Unobservable Input
|
Range Weighted Average
|
||||
Impaired loans
|
$ 9,291
|
Fair Value of Collateral (1)
|
Appraised Value (2)
|
0% - 43% (23%) (4)
|
||||
Other real estate owned
|
$ 3,431
|
Fair Value of Collateral (1)
|
Appraised Value (2)
Sales Price
|
8% - 18% (9%) (4)
|
||||
SBA Servicing Assets
|
$ 2,491
|
Fair Value
|
Individual Loan
Valuation (3)
|
(3)
|
(dollars in thousands)
|
2013
|
2012
|
||||||
Beginning balance, January 1st
|
$ | 2,340 | $ | 1,102 | ||||
Additions
|
146 | 241 | ||||||
Fair value adjustments
|
5 | 8 | ||||||
Ending balance, March 31st
|
$ | 2,491 | $ | 1,351 |
(dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||||
SBA Servicing Asset
|
||||||||
Fair Value of SBA Servicing Asset
|
$ | 2,491 | $ | 2,340 | ||||
|
||||||||
Composition of SBA Loans Serviced for Others
|
||||||||
Fixed-rate SBA loans
|
0 | % | 0 | % | ||||
Adjustable-rate SBA loans
|
100 | % | 100 | % | ||||
Total
|
100 | % | 100 | % | ||||
Weighted Average Remaining Term
|
21.1 years
|
21.4 years
|
||||||
Prepayment Speed
|
6.61 | % | 6.59 | % | ||||
Effect on fair value of a 10% increase
|
$ | (59 | ) | $ | (55 | ) | ||
Effect on fair value of a 20% increase
|
(116 | ) | (107 | ) | ||||
Weighted Average Discount Rate
|
13.18 | % | 14.23 | % | ||||
Effect on fair value of a 10% increase
|
$ | (115 | ) | $ | (115 | ) | ||
Effect on fair value of a 20% increase
|
(222 | ) | (222 | ) |
Fair Value Measurements at March 31, 2013
|
||||||||||||||||||||
(dollars in thousands)
|
Carrying Amount
|
Fair
Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||||
Balance Sheet Data
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 71,929 | $ | 71,929 | $ | 71,929 | $ | - | $ | - | ||||||||||
Investment securities available for sale
|
173,550 | 173,550 | - | 167,305 | 6,245 | |||||||||||||||
Investment securities held to maturity
|
68 | 69 | - | 69 | - | |||||||||||||||
Restricted stock
|
3,276 | 3,276 | - | 3,276 | - | |||||||||||||||
Loans held for sale
|
165 | 165 | - | - | 165 | |||||||||||||||
Loans receivable, net
|
617,769 | 614,714 | - | - | 614,714 | |||||||||||||||
SBA servicing assets
|
2,491 | 2,491 | - | - | 2,491 | |||||||||||||||
Accrued interest receivable
|
3,273 | 3,273 | - | 3,273 | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Demand, savings and money market
|
$ | 735,211 | $ | 735,211 | $ | - | $ | 735,211 | $ | - | ||||||||||
Time
|
90,927 | 91,636 | - | 91,636 | - | |||||||||||||||
Subordinated debt
|
22,476 | 18,392 | - | - | 18,392 | |||||||||||||||
Accrued interest payable
|
494 | 494 | - | 494 | - | |||||||||||||||
Off-Balance Sheet Data
|
||||||||||||||||||||
Commitments to extend credit
|
- | - | ||||||||||||||||||
Standby letters-of-credit
|
- | - |
Fair Value Measurements at December 31, 2012
|
||||||||||||||||||||
(dollars in thousands)
|
Carrying Amount
|
Fair
Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||||
Balance Sheet Data
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 128,004 | $ | 128,004 | $ | 128,004 | $ | - | $ | - | ||||||||||
Investment securities available for sale
|
189,259 | 189,259 | - | 183,065 | 6,194 | |||||||||||||||
Investment securities held to maturity
|
67 | 69 | - | 69 | - | |||||||||||||||
Restricted stock
|
3,816 | 3,816 | - | 3,816 | - | |||||||||||||||
Loans held for sale
|
82 | 82 | - | - | 82 | |||||||||||||||
Loans receivable, net
|
608,359 | 603,237 | - | - | 603,237 | |||||||||||||||
SBA servicing assets
|
2,340 | 2,340 | - | - | 2,340 | |||||||||||||||
Accrued interest receivable
|
3,128 | 3,128 | - | 3,128 | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Demand, savings and money market
|
$ | 765,967 | $ | 765,967 | $ | - | $ | 765,967 | $ | - | ||||||||||
Time
|
123,234 | 124,044 | - | 124,044 | - | |||||||||||||||
Subordinated debt
|
22,476 | 20,187 | - | - | 20,187 | |||||||||||||||
Accrued interest payable
|
301 | 301 | - | 301 | - | |||||||||||||||
Off-Balance Sheet Data
|
||||||||||||||||||||
Commitments to extend credit
|
- | - | ||||||||||||||||||
Standby letters-of-credit
|
- | - |
For the three months ended
March 31, 2013
|
For the three months ended
March 31, 2012
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Interest
|
Yield/
Rate
(1)
|
Average
Balance
|
Interest
|
Yield/
Rate
(1)
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Federal funds sold and other interest-earning assets
|
$ | 86,685 | $ | 59 | 0.28 | % | $ | 162,103 | $ | 101 | 0.25 | % | ||||||||||||
Investment securities and restricted stock
|
183,387 | 1,159 | 2.53 | % | 178,650 | 1,447 | 3.24 | % | ||||||||||||||||
Loans receivable
|
621,642 | 7,977 | 5.20 | % | 592,828 | 8,127 | 5.51 | % | ||||||||||||||||
Total interest-earning assets
|
891,714 | 9,195 | 4.18 | % | 933,581 | 9,675 | 4.17 | % | ||||||||||||||||
Other assets
|
59,736 | 55,168 | ||||||||||||||||||||||
Total assets
|
$ | 951,450 | $ | 988,749 | ||||||||||||||||||||
Interest-earning liabilities:
|
||||||||||||||||||||||||
Demand – non-interest bearing
|
$ | 144,045 | $ | 144,855 | ||||||||||||||||||||
Demand – interest bearing
|
170,868 | 195 | 0.46 | % | 117,794 | 171 | 0.58 | % | ||||||||||||||||
Money market & savings
|
422,766 | 502 | 0.48 | % | 431,106 | 863 | 0.81 | % | ||||||||||||||||
Time deposits
|
114,054 | 279 | 0.99 | % | 199,523 | 581 | 1.17 | % | ||||||||||||||||
Total deposits
|
851,733 | 976 | 0.46 | % | 893,278 | 1,615 | 0.73 | % | ||||||||||||||||
Total interest-bearing deposits
|
707,688 | 976 | 0.56 | % | 748,423 | 1,615 | 0.87 | % | ||||||||||||||||
Other borrowings
|
22,476 | 278 | 5.02 | % | 22,575 | 285 | 5.80 | % | ||||||||||||||||
Total interest-bearing liabilities
|
730,164 | 1,254 | 0.70 | % | 770,998 | 1,900 | 0.99 | % | ||||||||||||||||
Total deposits and other borrowings
|
874,209 | 1,254 | 0.58 | % | 915,853 | 1,900 | 0.83 | % | ||||||||||||||||
Non interest-bearing other liabilities
|
7,343 | 7,518 | ||||||||||||||||||||||
Shareholders’ equity
|
69,898 | 65,378 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 951,450 | $ | 988,749 | ||||||||||||||||||||
Net interest income
(2)
|
$ | 7,941 | $ | 7,775 | ||||||||||||||||||||
Net interest spread
|
3.48 | % | 3.18 | % | ||||||||||||||||||||
Net interest margin
(2)
|
3.61 | % | 3.35 | % |
For the three months ended
March 31, 2013 vs. 2012
|
||||||||||||
Changes due to:
|
||||||||||||
(dollars in thousands)
|
Average
Volume
|
Average
Rate
|
Total
Change
|
|||||||||
Interest earned:
|
||||||||||||
Federal funds sold and other interest-earning assets
|
$ | (51 | ) | $ | 9 | $ | (42 | ) | ||||
Securities
|
30 | (318 | ) | (288 | ) | |||||||
Loans
|
335 | (485 | ) | (150 | ) | |||||||
Total interest-earning assets
|
314 | (794 | ) | (480 | ) | |||||||
Interest expense:
|
||||||||||||
Deposits
|
||||||||||||
Interest-bearing demand deposits
|
60 | (36 | ) | 24 | ||||||||
Money market and savings
|
(6 | ) | (355 | ) | (361 | ) | ||||||
Time deposits
|
(209 | ) | (93 | ) | (302 | ) | ||||||
Total deposit interest expense
|
(155 | ) | (484 | ) | (639 | ) | ||||||
Other borrowings
|
- | (7 | ) | (7 | ) | |||||||
Total interest expense
|
(155 | ) | (491 | ) | (646 | ) | ||||||
Net interest income
|
$ | 469 | $ | (303 | ) | $ | 166 |
Actual
|
For Capital Adequacy Purposes
|
To be well capitalized under regulatory capital guidelines
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
At March 31, 2013:
|
||||||||||||||||||||||||
Total risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 97,428 | 12.85 | % | $ | 60,659 | 8.00 | % | $ | 75,824 | 10.00 | % | ||||||||||||
Company
|
97,746 | 12.88 | % | 60,714 | 8.00 | % | - | - | ||||||||||||||||
Tier one risk based capital
|
||||||||||||||||||||||||
Republic
|
88,075 | 11.62 | % | 30,330 | 4.00 | % | 45,494 | 6.00 | % | |||||||||||||||
Company
|
88,393 | 11.65 | % | 30,357 | 4.00 | % | - | - | ||||||||||||||||
Tier one leveraged capital
|
||||||||||||||||||||||||
Republic
|
88,075 | 9.30 | % | 37,873 | 4.00 | % | 47,341 | 5.00 | % | |||||||||||||||
Company
|
88,393 | 9.32 | % | 37,924 | 4.00 | % | - | - | ||||||||||||||||
At December 31, 2012:
|
||||||||||||||||||||||||
Total risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 96,366 | 12.70 | % | $ | 60,685 | 8.00 | % | $ | 75,857 | 10.00 | % | ||||||||||||
Company
|
97,006 | 12.73 | % | 60,971 | 8.00 | % | - | - | ||||||||||||||||
Tier one risk based capital
|
||||||||||||||||||||||||
Republic
|
86,883 | 11.45 | % | 30,343 | 4.00 | % | 45,514 | 6.00 | % | |||||||||||||||
Company
|
87,479 | 11.48 | % | 30,485 | 4.00 | % | - | - | ||||||||||||||||
Tier one leveraged capital
|
||||||||||||||||||||||||
Republic
|
86,883 | 8.96 | % | 38,786 | 4.00 | % | 48,483 | 5.00 | % | |||||||||||||||
Company
|
87,479 | 9.01 | % | 38,838 | 4.00 | % | - | - |
March 31,
2013
|
December 31,
2012
|
|||||||
Loans accruing, but past due 90 days or more
|
$ | - | $ | 202 | ||||
Non-accrual loans
|
15,115 | 15,846 | ||||||
Total non-performing loans
(1)
|
15,115 | 16,048 | ||||||
Other real estate owned
|
8,268 | 8,912 | ||||||
Total non-performing assets
(1)
|
$ | 23,383 | $ | 24,960 | ||||
Non-performing loans as a percentage of total loans, net of unearned income
(1)
|
2.41 | % | 2.60 | % | ||||
Non-performing assets as a percentage of total assets
|
2.52 | % | 2.52 | % |
(1)
|
Non-performing loans are comprised of (i) loans that are on non-accrual basis and (ii) accruing loans that are 90 days or more past due. Non-performing assets are composed of non-performing loans and other real estate owned.
|
(dollars in thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Beginning Balance, January 1
st
|
$ | 8,912 | $ | 6,479 | ||||
Additions
|
165 | 2,907 | ||||||
Valuation adjustments
|
(809 | ) | (140 | ) | ||||
Dispositions
|
- | (334 | ) | |||||
Ending Balance
|
$ | 8,268 | $ | 8,912 |
For the three months ended March 31,
2013
|
For the twelve months ended December 31,
2012
|
For the three months ended March 31,
2012
|
||||||||||
Balance at beginning of period
|
$ | 9,542 | $ | 12,050 | $ | 12,050 | ||||||
Charge-offs:
|
||||||||||||
Commercial real estate
|
60 | 1,582 | 492 | |||||||||
Construction and land development
|
55 | 1,004 | - | |||||||||
Commercial and industrial
|
- | 1,304 | 52 | |||||||||
Owner occupied real estate
|
- | - | - | |||||||||
Consumer and other
|
75 | 102 | 1 | |||||||||
Residential mortgage
|
- | - | - | |||||||||
Total charge-offs
|
190 | 3,992 | 545 | |||||||||
Recoveries:
|
||||||||||||
Commercial real estate
|
- | - | - | |||||||||
Construction and land development
|
- | 105 | - | |||||||||
Commercial and industrial
|
1 | - | - | |||||||||
Owner occupied real estate
|
- | - | - | |||||||||
Consumer and other
|
- | 29 | 1 | |||||||||
Residential mortgage
|
- | - | - | |||||||||
Total recoveries
|
1 | 134 | 1 | |||||||||
Net charge-offs
|
189 | 3,858 | 544 | |||||||||
Provision (credit) for loan losses
|
- | 1,350 | (750 | ) | ||||||||
Balance at end of period
|
$ | 9,353 | $ | 9,542 | $ | 10,756 | ||||||
Average loans outstanding
(1)
|
$ | 621,642 | $ | 609,943 | $ | 592,828 | ||||||
As a percent of average loans:
(1)
|
||||||||||||
Net charge-offs (annualized)
|
0.12 | % | 0.63 | % | 0.37 | % | ||||||
Provision (credit) for loan losses (annualized)
|
0.00 | % | 0.22 | % | (0.51 | %) | ||||||
Allowance for loan losses
|
1.50 | % | 1.56 | % | 1.81 | % | ||||||
Allowance for loan losses to:
|
||||||||||||
Total loans, net of unearned income
|
1.49 | % | 1.54 | % | 1.78 | % | ||||||
Total non-performing loans
|
61.88 | % | 59.46 | % | 100.32 | % |
Exhibit Number
|
Description
|
Location
|
||
10.1
|
Amendment to Employment Agreement, by and between Andrew J. Logue and Republic First Bank, dated March 13, 2013.*
|
|
||
10.2
|
Amendment to Employment Agreement, by and between Rhonda Costello and Republic First Bank, dated March 13, 2013.*
|
|||
10.3
|
Letter Agreement, by and between Jay Neilon and the Company, dated March 13, 2013.*
|
|||
10.4
|
Letter Agreement, by and between Frank A. Cavallaro and the Company, dated March 13, 2013.*
|
|||
10.5 | Employment Agreement, by and between Harry D. Madonna, the Company and Republic First Bank, dated May 10, 2013. * | Filed herewith | ||
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 Chief Financial Officer of Republic First Bancorp, Inc.
|
|||
32.1
|
Section 1350 Certification of Harry D. Madonna
|
|||
32.2
|
Section 1350 Certification of Frank A. Cavallaro
|
|||
101
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012, (ii) Consolidated Statements of Income for the three months ended March 31, 2013 and 2012, (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2012, (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012, (v) Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2013 and 2012, and (vi) Notes to Consolidated Financial Statements.
|
**
|
||
REPUBLIC FIRST BANCORP, INC.
|
||
Date: May 10, 2013
|
By:
|
/s/ Harry D. Madonna
|
Harry D. Madonna
|
||
Chairman, President and Chief Executive Officer
(principal executive officer)
|
||
Date: May 10, 2013
|
By:
|
/s/ Frank A. Cavallaro
|
Frank A. Cavallaro
|
||
Executive Vice President and Chief Financial Officer
(principal financial and accounting officer)
|
||
|
BANK:
|
||
By:
|
/s/ Harry D. Madonna
|
||
Harry D. Madonna
Chief Executive Officer
|
|||
|
|||
EMPLOYEE:
|
|||
By:
|
/s/ Andrew J. Logue
|
||
Andrew J. Logue
|
|||
|
BANK:
|
|
By:
|
/s/ Harry D. Madonna
|
|
Harry D. Madonna
Chief Executive Officer
|
||
|
||
EMPLOYEE:
|
||
By:
|
/s/ Rhonda S. Costello
|
|
Rhonda S. Costello
|
||
Sincerely,
|
|
/s/ Harry D. Madonna
|
|
Harry D. Madonna
|
|
Chief Executive Officer
|
/s/ Jay Neilon
|
Jay Neilon
|
Sincerely,
|
|
/s/ Harry D. Madonna
|
|
Harry D. Madonna
|
|
Chief Executive Officer
|
/s/ Frank Cavallaro
|
Frank Cavallaro
|
REPUBLIC FIRST BANCORP, INC.
|
||
By:
|
/s/ Frank A. Cavallaro | |
Its CFO
|
||
Frank A. Cavallaro
|
||
[Print Name]
|
||
|
||
REPUBLIC FIRST BANK
|
||
By:
|
/s/ Frank A. Cavallaro | |
Its CFO
|
||
Frank A. Cavallaro | ||
[Print Name]
|
||
/s/ Harry D. Madonna
|
||
HARRY D. MADONNA
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013
of Republic First Bancorp, Inc.;
|
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 registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’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 registrant 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 registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this 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 registrant'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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting.
|
Date: May 10, 2013
|
/s/ Harry D. Madonna
|
||
Chairman, President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013
of Republic First Bancorp, Inc.;
|
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 registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’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 registrant 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 registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this 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 registrant'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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting.
|
Date: May 10, 2013
|
/s/ Frank A. Cavallaro
|
||
Executive 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: May 10, 2013
|
/s/ 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: May 10, 2013
|
/s/ Frank A. Cavallaro
|
|
Executive Vice President and Chief Financial Officer
|