|
[ X ]
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2014.
|
|
or
|
|
[ ]
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ___ to ___.
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Pennsylvania
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23-2486815
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
50 South 16
th
Street, Philadelphia, Pennsylvania
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19102
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(Address of principal executive offices)
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(Zip code)
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Title of each class
|
Name of each exchange on which registered
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|
Common Stock, par value $0.01 per share
|
The NASDAQ Stock Market LLC
|
|
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.
YES [X] NO [ ]
|
|
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [
X
]
|
|
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. (Check one)
|
Large accelerated filer [ ]
|
Accelerated filer
[X ]
|
Non-Accelerated filer [ ]
(Do not check if a smaller reporting company)
|
Smaller reporting company [
]
|
Common Stock, par value $0.01 per share
|
37,815,503
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Title of Class
|
Number of Shares Outstanding as
of
March 12, 2015
|
REPUBLIC FIRST BANCORP, INC. AND SUBSIDIARY
|
||
TABLE OF CONTENTS
|
||
PAGE
|
||
PART I:
|
||
Item 1.
|
Business
|
|
Item 1A.
|
Risk Factors
|
|
Item 1B.
|
Unresolved Staff Comments
|
|
Item 2.
|
Properties
|
|
Item 3.
|
Legal Proceedings
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|
Item 4.
|
Mine Safety Disclosures
|
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PART II:
|
||
Item 5.
|
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.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
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|
Item 8.
|
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.
|
Other Information
|
|
PART III:
|
||
Item 10.
|
Directors, Executive Officers and Corporate Governance
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Item 11.
|
Executive Compensation
|
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Item 12.
|
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:
|
||
Item 15.
|
Exhibits, Financial Statement Schedules
|
|
Signatures
|
|
·
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general economic conditions, including turmoil in the financial markets and related efforts of government agencies to stabilize the financial system;
|
|
·
|
the adequacy of our allowance for loan losses and our methodology for determining such allowance;
|
|
·
|
adverse changes in our loan portfolio and credit risk-related losses and expenses;
|
|
·
|
concentrations within our loan portfolio, including our exposure to commercial real estate loans, and to our primary service area;
|
|
·
|
changes in interest rates;
|
|
·
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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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|
·
|
deposit flows;
|
|
·
|
loan demand;
|
|
·
|
the regulatory environment, including evolving banking industry standards, changes in legislation or regulation;
|
|
·
|
the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act;
|
|
·
|
our securities portfolio and the valuation of our securities;
|
|
·
|
accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements;
|
|
·
|
rapidly changing technology;
|
|
·
|
litigation liabilities, including costs, expenses, settlements and judgments; and
|
|
·
|
other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.
|
|
·
|
increased regulation of our industry and increased compliance costs;
|
|
·
|
hampering our ability to assess the creditworthiness of customers and to estimate the losses inherent in our credit exposure, as such assessments are made more complex by these difficult market and economic conditions;
|
|
·
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increasing our credit risk, by increasing the likelihood that our major customers become insolvent and unable to satisfy their obligations to us;
|
|
·
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impairing our ability to originate loans, by making our customers and prospective customers less willing to borrow, and making loans that meet our underwriting criteria difficult to find; and
|
|
·
|
limiting our interest income, by depressing the yields we are able to earn on our investment portfolio.
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Quarter
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High
|
Low
|
2014:
|
||
4th
|
$ 4.32
|
$ 3.61
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3rd
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$ 5.18
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$ 3.86
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2nd
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$ 6.00
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$ 3.48
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1st
|
$ 4.59
|
$ 2.86
|
2013:
|
||
4th
|
$ 3.30
|
$ 2.90
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3rd
|
$ 3.83
|
$ 2.75
|
2nd
|
$ 3.19
|
$ 2.62
|
1st
|
$ 2.78
|
$ 1.97
|
As of or for the Years Ended December 31,
|
||||||||||||||||||||
(dollars in thousands, except per share data)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
INCOME STATEMENT DATA
|
||||||||||||||||||||
Total interest income
|
$ | 40,473 | $ | 37,205 | $ | 38,260 | $ | 38,273 | $ | 40,309 | ||||||||||
Total interest expense
|
4,644 | 4,590 | 6,366 | 8,199 | 10,245 | |||||||||||||||
Net interest income
|
35,829 | 32,615 | 31,894 | 30,074 | 30,064 | |||||||||||||||
Provision for loan losses
|
900 | 4,935 | 1,350 | 15,966 | 16,600 | |||||||||||||||
Non-interest income
|
8,017 | 9,216 | 8,828 | 10,581 | 2,620 | |||||||||||||||
Non-interest expenses
|
40,550 | 40,411 | 35,902 | 41,200 | 32,848 | |||||||||||||||
Income (loss) before provision (benefit) for income taxes
|
2,396 | (3,515 | ) | 3,470 | (16,511 | ) | (16,764 | ) | ||||||||||||
Provision (benefit) for income taxes
|
(46 | ) | (35 | ) | (144 | ) | 8,191 | (6,074 | ) | |||||||||||
Net income (loss)
|
$ | 2,442 | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | $ | (10,690 | ) | |||||||
PER SHARE DATA
|
||||||||||||||||||||
Basic earnings (loss) per share
|
$ | 0.07 | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | $ | (0.57 | ) | |||||||
Diluted earnings (loss) per share
|
$ | 0.07 | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | $ | (0.57 | ) | |||||||
Book value per share
|
$ | 2.98 | $ | 2.42 | $ | 2.69 | $ | 2.50 | $ | 3.39 | ||||||||||
BALANCE SHEET DATA
|
||||||||||||||||||||
Total assets
|
$ | 1,214,598 | $ | 961,665 | $ | 988,658 | $ | 1,047,353 | $ | 876,097 | ||||||||||
Total loans, net
|
770,404 | 667,048 | 608,359 | 577,442 | 608,911 | |||||||||||||||
Total investment securities
|
254,402 | 206,482 | 193,142 | 179,784 | 150,087 | |||||||||||||||
Total deposits
|
1,072,230 | 869,534 | 889,201 | 952,611 | 757,730 | |||||||||||||||
Subordinated debt
|
22,476 | 22,476 | 22,476 | 22,476 | 22,476 | |||||||||||||||
Total shareholders’ equity
|
112,811 | 62,899 | 69,902 | 64,851 | 88,146 | |||||||||||||||
PERFORMANCE RATIOS
|
||||||||||||||||||||
Return on average assets
|
0.23 | % | (0.37 | )% | 0.37 | % | (2.68 | )% | (1.14 | )% | ||||||||||
Return on average shareholders’ equity
|
2.51 | % | (5.07 | )% | 5.36 | % | (28.68 | )% | (13.42 | )% | ||||||||||
Net interest margin
|
3.56 | % | 3.66 | % | 3.53 | % | 3.59 | % | 3.50 | % | ||||||||||
Total non-interest expenses as a percentage of average assets
|
3.80 | % | 4.25 | % | 3.70 | % | 4.47 | % | 3.52 | % | ||||||||||
ASSET QUALITY RATIOS
|
||||||||||||||||||||
Allowance for loan losses as a percentage of loans
|
1.48 | % | 1.81 | % | 1.54 | % | 2.04 | % | 1.84 | % | ||||||||||
Allowance for loan losses as a percentage of non-performing loans
|
53.81 | % | 117.69 | % | 59.46 | % | 106.52 | % | 28.62 | % | ||||||||||
Non-performing loans as a percentage of total loans
|
2.74 | % | 1.53 | % | 2.60 | % | 1.92 | % | 6.45 | % | ||||||||||
Non-performing assets as a percentage of total assets
|
2.07 | % | 1.51 | % | 2.52 | % | 1.70 | % | 6.30 | % | ||||||||||
Net charge-offs as a percentage of average loans, net
|
0.22 | % | 0.35 | % | 0.63 | % | 2.44 | % | 2.73 | % | ||||||||||
LIQUIDITY AND CAPITAL RATIOS
|
||||||||||||||||||||
Average equity to average assets
|
9.12 | % | 7.22 | % | 6.95 | % | 9.34 | % | 8.47 | % | ||||||||||
Leverage ratio
|
11.23 | % | 8.59 | % | 9.01 | % | 8.77 | % | 11.01 | % | ||||||||||
Tier 1 capital to risk-weighted assets
|
13.88 | % | 10.28 | % | 11.48 | % | 11.81 | % | 13.68 | % | ||||||||||
Total capital to risk-weighted assets
|
15.10 | % | 11.53 | % | 12.73 | % | 13.09 | % | 14.93 | % |
·
|
Total assets increased by $253 million, or 26%, to $1.2 billion as of December 31, 2014 compared to $962 million as of December 31, 2013.
|
·
|
Non-interest bearing demand deposits increased by 42% to $224 million as of December 31, 2014 compared to $158 million as of December 31, 2013.
|
·
|
Total deposits increased by $203 million, or 23%, to $1.1 billion as of December 31, 2014 compared to $870 million as of December 31, 2013. The cost of funds on interest bearing deposits decreased to 0.47% for the year ended December 31, 2014 compared to 0.50% for the year ended December 31, 2013.
|
·
|
Total loans grew $103 million, or 15%, to $782 million as of December 31, 2014 compared to $679 million at December 31, 2013.
|
·
|
SBA lending continued to be a focal point of the Company’s lending strategy. More than $56 million in new SBA loans were originated during the year ended December 31, 2014. Our team is currently ranked as the #1 SBA lender in the tri-state market of New Jersey, Pennsylvania, and Delaware based on the dollar volume of loan originations.
|
·
|
Shareholders’ equity increased by 79% to $113 million as of December 31, 2014 compared to $63 million as of December 31, 2013 as a result of the $45 million common stock offering closed during the second quarter of 2014.
|
·
|
The Company’s Total Risk-Based Capital ratio was 15.10% and Tier I Leverage ratio was 11.23% at December 31, 2014.
|
·
|
Tangible book value per share was $2.98 as of December 31, 2014.
|
·
|
In 2014, we opened two new locations in Cherry Hill and Glassboro, NJ which feature our new and distinctive prototype building. We also relocated our store in Voorhees, NJ to a prime location on the other side of town and expanded and renovated our 1601 Market store in Center City Philadelphia in 2014.
|
·
|
Our Haddonfield, NJ store, which opened four years ago, has grown to more than $100 million in core deposits during 2014.
|
For the Year Ended
December 31, 2014
|
For the Year Ended
December 31, 2013
|
For the Year Ended
December 31, 2012
|
||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
(1)
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
(1)
|
Average Balance
|
Interest Income/
Expense
|
Yield/
Rate
(1)
|
|||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Federal funds sold and other interest earning assets
|
$ | 75,593 | $ | 187 | 0.25 | % | $ | 67,307 | $ | 185 | 0.27 | % | $ | 116,268 | $ | 300 | 0.26 | % | ||||||||||||||||||
Investment securities and restricted stock
|
217,939 | 5,613 | 2.58 | % | 192,315 | 4,820 | 2.51 | % | 187,446 | 5,622 | 3.00 | % | ||||||||||||||||||||||||
Loans receivable
|
724,231 | 35,052 | 4.84 | % | 640,233 | 32,523 | 5.08 | % | 609,943 | 32,734 | 5.37 | % | ||||||||||||||||||||||||
Total interest-earning assets
|
1,017,763 | 40,852 | 4.01 | % | 899,855 | 37,528 | 4.17 | % | 913,657 | 38,656 | 4.23 | % | ||||||||||||||||||||||||
Other assets
|
50,302 | 50,616 | 56,149 | |||||||||||||||||||||||||||||||||
Total assets
|
$ | 1,068,065 | $ | 950,471 | $ | 969,806 | ||||||||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand – non-interest bearing
|
$ | 189,810 | $ | 149,125 | $ | 136,999 | ||||||||||||||||||||||||||||||
Demand – interest bearing
|
233,693 | 888 | 0.38 | % | 192,224 | 825 | 0.43 | % | 146,319 | 796 | 0.54 | % | ||||||||||||||||||||||||
Money market & savings
|
439,484 | 1,929 | 0.44 | % | 417,652 | 1,786 | 0.43 | % | 433,422 | 2,718 | 0.63 | % | ||||||||||||||||||||||||
Time deposits
|
78,073 | 719 | 0.92 | % | 92,484 | 867 | 0.94 | % | 155,549 | 1,718 | 1.10 | % | ||||||||||||||||||||||||
Total deposits
|
941,060 | 3,536 | 0.38 | % | 851,485 | 3,478 | 0.41 | % | 872,289 | 5,232 | 0.60 | % | ||||||||||||||||||||||||
Total interest bearing deposits
|
751,250 | 3,536 | 0.47 | % | 702,360 | 3,478 | 0.50 | % | 735,290 | 5,232 | 0.71 | % | ||||||||||||||||||||||||
Other borrowings
|
22,530 | 1,108 | 4.92 | % | 22,476 | 1,112 | 4.95 | % | 22,531 | 1,134 | 5.03 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities
|
773,780 | 4,644 | 0.60 | % | 724,836 | 4,590 | 0.63 | % | 757,821 | 6,366 | 0.84 | % | ||||||||||||||||||||||||
Total deposits and other borrowings
|
963,590 | 4,644 | 0.48 | % | 873,961 | 4,590 | 0.53 | % | 894,820 | 6,366 | 0.71 | % | ||||||||||||||||||||||||
Non-interest bearing other liabilities
|
7,084 | 7,902 | 7,573 | |||||||||||||||||||||||||||||||||
Shareholders’ equity
|
97,391 | 68,608 | 67,413 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 1,068,065 | $ | 950,471 | $ | 969,806 | ||||||||||||||||||||||||||||||
Net interest income
(2)
|
$ | 36,208 | $ | 32,938 | $ | 32,290 | ||||||||||||||||||||||||||||||
Net interest spread
|
3.41 | % | 3.54 | % | 3.39 | % | ||||||||||||||||||||||||||||||
Net interest margin
(2)
|
3.56 | % | 3.66 | % | 3.53 | % |
Year ended
December 31, 2014 vs. 2013
|
Year ended
December 31, 2013 vs. 2012
|
|||||||||||||||||||||||
Changes due to:
|
Changes due to:
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Volume
|
Average
Rate
|
Total
Change
|
Average Volume
|
Average
Rate
|
Total
Change
|
||||||||||||||||||
Interest earned:
|
||||||||||||||||||||||||
Federal funds sold and other
interest-earning assets
|
$ | 20 | $ | (18 | ) | $ | 2 | $ | (134 | ) | $ | 19 | $ | (115 | ) | |||||||||
Securities
|
660 | 133 | 793 | 122 | (924 | ) | (802 | ) | ||||||||||||||||
Loans
|
4,006 | (1,477 | ) | 2,529 | 1,409 | (1,620 | ) | (211 | ) | |||||||||||||||
Total interest-earning assets
|
4,686 | (1,362 | ) | 3,324 | 1,397 | (2,525 | ) | (1,128 | ) | |||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$ | 158 | $ | (95 | ) | $ | 63 | $ | 197 | $ | (168 | ) | $ | 29 | ||||||||||
Money market and savings
|
96 | 47 | 143 | (62 | ) | (870 | ) | (932 | ) | |||||||||||||||
Time deposits
|
(133 | ) | (15 | ) | (148 | ) | (591 | ) | (260 | ) | (851 | ) | ||||||||||||
Total deposit interest expense
|
121 | (63 | ) | 58 | (456 | ) | (1,298 | ) | (1,754 | ) | ||||||||||||||
Other borrowings
|
1 | (5 | ) | (4 | ) | - | (22 | ) | (22 | ) | ||||||||||||||
Total interest expense
|
122 | (68 | ) | 54 | (456 | ) | (1,320 | ) | (1,776 | ) | ||||||||||||||
Net interest income
|
$ | 4,564 | $ | (1,294 | ) | $ | 3,270 | $ | 1,853 | $ | (1,205 | ) | $ | 648 |
At December 31,
|
||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Available for sale
|
||||||||||||
Collateralized mortgage obligations
|
$ | 98,626 | $ | 127,242 | $ | 97,959 | ||||||
Mortgage-backed securities
|
13,271 | 15,669 | 20,626 | |||||||||
Municipal securities
|
15,784 | 9,737 | 11,150 | |||||||||
Corporate bonds
|
33,840 | 32,174 | 32,231 | |||||||||
Asset-backed securities
|
18,353 | 19,089 | 19,785 | |||||||||
Trust preferred securities
|
5,261 | 5,277 | 5,785 | |||||||||
Other securities
|
115 | 115 | 131 | |||||||||
Total amortized cost of securities
|
$ | 185,250 | $ | 209,303 | $ | 187,667 | ||||||
Total fair value of investment securities
|
$ | 185,379 | $ | 204,891 | $ | 189,259 | ||||||
Held to maturity
|
||||||||||||
U.S. Government Agencies
|
$ | 1 | $ | 1 | $ | 1 | ||||||
Collateralized mortgage obligations
|
67,845 | 0 | 0 | |||||||||
Other securities
|
20 | 20 | 66 | |||||||||
Total amortized cost of securities
|
$ | 67,866 | $ | 21 | $ | 67 | ||||||
Total fair value of investment securities
|
$ | 68,253 | $ | 21 | $ | 69 |
December 31, 2014
|
||||||||||||||||||||||||||||||||||||||||||||
Within One Year
|
One to Five Years
|
Five to Ten Years
|
Past Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Fair value
|
Cost
|
Yield
|
|||||||||||||||||||||||||||||||||
Available for Sale
|
||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations
|
$ | - | - | $ | - | - | $ | - | - | $ | 99,222 | 2.48 | % | $ | 99,222 | $ | 98,626 | 2.48 | % | |||||||||||||||||||||||||
Mortgage-backed securities
|
- | - | - | 29 | 2.40 | % | 13,773 | 3.17 | % | 13,802 | 13,271 | 3.16 | % | |||||||||||||||||||||||||||||||
Municipal securities
|
- | - | - | - | 9,969 | 2.61 | % | 6,138 | 3.75 | % | 16,107 | 15,784 | 3.04 | % | ||||||||||||||||||||||||||||||
Corporate bonds
|
7,040 | 2.41 | % | 17,281 | 2.76 | % | 7,101 | 4.06 | % | 3,005 | 3.67 | % | 34,427 | 33,840 | 3.02 | % | ||||||||||||||||||||||||||||
Asset-backed securities
|
- | - | - | - | 10,434 | 1.93 | % | 8,071 | 0.99 | % | 18,505 | 18,353 | 1.52 | % | ||||||||||||||||||||||||||||||
Trust Preferred securities
|
- | - | - | - | - | - | 3,193 | 0.00 | % | 3,193 | 5,261 | 0.00 | % | |||||||||||||||||||||||||||||||
Other securities
|
- | - | 123 | 1.10 | % | - | - | - | - | 123 | 115 | 1.10 | % | |||||||||||||||||||||||||||||||
Total AFS securities
|
$ | 7,040 | 2.41 | % | $ | 17,404 | 2.75 | % | $ | 27,533 | 2.73 | % | $ | 133,402 | 2.49 | % | $ | 185,379 | $ | 185,250 | 2.53 | % | ||||||||||||||||||||||
Held to Maturity
|
||||||||||||||||||||||||||||||||||||||||||||
U.S. Government Agencies
|
$ | - | - | $ | 1 | 1.47 | % | $ | - | - | $ | - | - | $ | 1 | $ | 1 | 1.47 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations
|
- | - | - | - | - | - | 68,232 | 2.23 | % | 68,232 | 67,845 | 2.23 | % | |||||||||||||||||||||||||||||||
Other securities
|
- | - | 20 | 0.00 | % | - | - | - | - | 20 | 20 | 0.00 | % | |||||||||||||||||||||||||||||||
Total HTM securities
|
$ | - | - | $ | 21 | 0.07 | % | $ | - | - | $ | 68,232 | 2.23 | % | $ | 68,253 | $ | 67,866 | 2.24 | % |
|
|
Year Ended
December 31, 2014
|
Year Ended
December 31, 2013
|
Year Ended
December 31, 2012
|
||||||||||||||||||||||
Level 3 Investments Only
(dollars in thousands)
|
Trust Preferred Securities
|
Corporate Bonds
|
Trust Preferred Securities
|
Corporate Bonds
|
Trust Preferred Securities
|
Corporate Bonds
|
||||||||||||||||||
Balance, January 1,
|
$ | 2,850 | $ | 3,006 | $ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | ||||||||||||
Security transferred to Level 3 measurement
|
- | - | - | - | - | - | ||||||||||||||||||
Unrealized gains (losses)
|
360 | (1 | ) | 171 | (1 | ) | 401 | 3 | ||||||||||||||||
Paydowns
|
(10 | ) | - | (508 | ) | - | (590 | ) | - | |||||||||||||||
Impairment charges on Level 3
|
(7 | ) | - | - | - | (34 | ) | - | ||||||||||||||||
Balance, December 31,
|
$ | 3,193 | $ | 3,005 | $ | 2,850 | $ | 3,006 | $ | 3,187 | $ | 3,007 |
At December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Commercial real estate
|
$ | 379,259 | $ | 342,794 | $ | 335,561 | $ | 344,377 | $ | 374,935 | ||||||||||
Construction and land development
|
29,861 | 23,977 | 26,659 | 35,061 | 73,795 | |||||||||||||||
Commercial and industrial
|
145,113 | 118,209 | 103,768 | 87,668 | 78,428 | |||||||||||||||
Owner occupied real estate
|
188,025 | 160,229 | 126,242 | 102,777 | 70,833 | |||||||||||||||
Consumer and other
|
39,713 | 31,981 | 23,449 | 16,683 | 17,808 | |||||||||||||||
Residential mortgage
|
408 | 2,359 | 2,442 | 3,150 | 5,026 | |||||||||||||||
Total loans
|
$ | 782,379 | $ | 679,549 | $ | 618,121 | $ | 589,716 | $ | 620,825 | ||||||||||
Deferred loan fees
|
439 | 238 | 220 | 224 | 470 | |||||||||||||||
Total loans, net of deferred loan fees
|
$ | 781,940 | $ | 679,311 | $ | 617,901 | $ | 589,492 | $ | 620,355 |
(dollars in thousands)
|
Commercial Real Estate
|
Construction and Land Development
|
Commercial and Industrial
|
Owner Occupied Real Estate
|
Consumer and Other
|
Residential Mortgage
|
Total
|
|||||||||||||||||||||
Fixed rate:
|
||||||||||||||||||||||||||||
1 year or less
|
$ | 23,073 | $ | 11,132 | $ | 13,355 | $ | 8,977 | $ | 237 | $ | - | $ | 56,774 | ||||||||||||||
1-5 years
|
213,490 | 1,903 | 27,758 | 69,232 | 199 | - | 312,582 | |||||||||||||||||||||
After 5 years
|
76,416 | - | 18,719 | 58,644 | 8,804 | 408 | 162,991 | |||||||||||||||||||||
Total fixed rate
|
312,979 | 13,035 | 59,832 | 136,853 | 9,240 | 408 | 532,347 | |||||||||||||||||||||
Adjustable rate:
|
||||||||||||||||||||||||||||
1 year or less
|
$ | 30,622 | $ | 2,999 | $ | 57,186 | $ | 1,648 | $ | 381 | $ | - | $ | 92,836 | ||||||||||||||
1-5 years
|
21,048 | 3,521 | 15,332 | 6,899 | 2,259 | - | 49,059 | |||||||||||||||||||||
After 5 years
|
14,610 | 10,306 | 12,763 | 42,625 | 27,833 | - | 108,137 | |||||||||||||||||||||
Total adjustable rate
|
66,280 | 16,826 | 85,281 | 51,172 | 30,473 | - | 250,032 | |||||||||||||||||||||
Total
|
$ | 379,259 | $ | 29,861 | $ | 145,113 | $ | 188,025 | $ | 39,713 | $ | 408 | $ | 782,379 |
At December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Loans accruing, but past due 90 days or more
|
$ | - | $ | - | $ | 202 | $ | 748 | $ | - | ||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Commercial real estate
|
13,979 | 1,104 | 7,987 | 1,880 | 14,955 | |||||||||||||||
Construction and land development
|
377 | 1,618 | 1,342 | 4,022 | 18,970 | |||||||||||||||
Commercial and industrial
|
4,349 | 6,837 | 4,693 | 3,925 | 4,500 | |||||||||||||||
Owner occupied real estate
|
2,306 | 205 | 968 | - | 1,061 | |||||||||||||||
Consumer and other
|
429 | 656 | 856 | 737 | 506 | |||||||||||||||
Residential mortgage
|
- | - | - | - | - | |||||||||||||||
Total non-accrual loans
|
21,440 | 10,420 | 15,846 | 10,564 | 39,992 | |||||||||||||||
Total non-performing loans
(1)
|
21,440 | 10,420 | 16,048 | 11,312 | 39,992 | |||||||||||||||
Other real estate owned
|
3,715 | 4,059 | 8,912 | 6,479 | 15,237 | |||||||||||||||
Total non-performing assets
(1)
|
$ | 25,155 | $ | 14,479 | $ | 24,960 | $ | 17,791 | $ | 55,229 | ||||||||||
Non-performing loans as a percentage of total loans, net of unearned income
(1)
|
2.74 | % | 1.53 | % | 2.60 | % | 1.92 | % | 6.45 | % | ||||||||||
Non-performing assets as a percentage of total assets
|
2.07 | % | 1.51 | % | 2.52 | % | 1.70 | % | 6.30 | % |
For the Year Ended December 31,
|
||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||
Interest income that would have been recorded had the loans been in accordance with their original terms
|
$ | 980,000 | $ | 488,000 | $ | 699,000 | $ | 583,000 | $ | 2,405,000 | ||||||||||
Interest income included in net income
|
$ | - | $ | - | $ | - | $ | - | $ | - |
For the Year Ended December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2014
|
2013
|
2012
|
2011
|
2010
|
|||||||||||||||
Balance at beginning of period
|
$ | 12,263 | $ | 9,542 | $ | 12,050 | $ | 11,444 | $ | 12,841 | ||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial real estate
|
364 | 1,291 | 1,582 | 8,783 | 3,823 | |||||||||||||||
Construction and land development
|
303 | 60 | 1,004 | 3,719 | 13,835 | |||||||||||||||
Commercial and industrial
|
1,185 | 611 | 1,304 | 1,088 | 1,468 | |||||||||||||||
Owner occupied real estate
|
150 | 320 | - | 1,838 | - | |||||||||||||||
Consumer and other
|
10 | 75 | 102 | 41 | 42 | |||||||||||||||
Residential mortgage
|
- | - | - | - | - | |||||||||||||||
Total charge-offs
|
2,012 | 2,357 | 3,992 | 15,469 | 19,168 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial real estate
|
5 | 54 | - | 44 | 437 | |||||||||||||||
Construction and land development
|
214 | - | 105 | 10 | 621 | |||||||||||||||
Commercial and industrial
|
166 | 63 | - | - | 110 | |||||||||||||||
Owner occupied real estate
|
- | - | - | 15 | - | |||||||||||||||
Consumer and other
|
- | 26 | 29 | 40 | 3 | |||||||||||||||
Residential mortgage
|
- | - | - | - | - | |||||||||||||||
Total recoveries
|
385 | 143 | 134 | 109 | 1,171 | |||||||||||||||
Net charge-offs
|
1,627 | 2,214 | 3,858 | 15,360 | 17,997 | |||||||||||||||
Provision for loan losses
|
900 | 4,935 | 1,350 | 15,966 | 16,600 | |||||||||||||||
Balance at end of period
|
$ | 11,536 | $ | 12,263 | $ | 9,542 | $ | 12,050 | $ | 11,444 | ||||||||||
Average loans outstanding
(1)
|
$ | 724,231 | $ | 640,233 | $ | 609,943 | $ | 630,309 | $ | 659,882 |
As a percent of average loans:
(1)
|
||||||||||||||||||||
Net charge-offs
|
0.22 | % | 0.35 | % | 0.63 | % | 2.44 | % | 2.73 | % | ||||||||||
Provision for loan losses
|
0.12 | % | 0.77 | % | 0.22 | % | 2.53 | % | 2.52 | % | ||||||||||
Allowance for loan losses
|
1.59 | % | 1.92 | % | 1.56 | % | 1.91 | % | 1.73 | % | ||||||||||
Allowance for loan losses to:
|
||||||||||||||||||||
Total loans, net of unearned income
|
1.48 | % | 1.81 | % | 1.54 | % | 2.04 | % | 1.84 | % | ||||||||||
Total non-performing loans
|
53.81 | % | 117.69 | % | 59.46 | % | 106.52 | % | 28.62 | % |
At December 31,
|
||||||||||||||||||||||||||||||||||||||||
2014
|
2013
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands
)
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
||||||||||||||||||||||||||||||
Commercial real estate
|
$ | 6,828 | 48.5 | % | $ | 6,454 | 50.4 | % | $ | 3,979 | 54.3 | % | $ | 7,372 | 58.4 | % | $ | 7,243 | 60.4 | % | ||||||||||||||||||||
Construction and land development
|
917 | 3.8 | % | 1,948 | 3.5 | % | 1,273 | 4.3 | % | 558 | 6.0 | % | 837 | 11.9 | % | |||||||||||||||||||||||||
Commercial and industrial
|
1,579 | 18.5 | % | 2,309 | 17.4 | % | 1,880 | 16.8 | % | 1,928 | 14.9 | % | 1,443 | 12.6 | % | |||||||||||||||||||||||||
Owner occupied real estate
|
1,638 | 24.0 | % | 985 | 23.6 | % | 1,967 | 20.4 | % | 1,963 | 17.4 | % | 1,575 | 11.4 | % | |||||||||||||||||||||||||
Consumer and other
|
234 | 5.1 | % | 225 | 4.7 | % | 234 | 3.8 | % | 113 | 2.8 | % | 130 | 2.9 | % | |||||||||||||||||||||||||
Residential mortgage
|
2 | 0.1 | % | 14 | 0.4 | % | 17 | 0.4 | % | 23 | 0.5 | % | 41 | 0.8 | % | |||||||||||||||||||||||||
Unallocated
|
338 | - | 328 | - | 192 | - | 93 | - | 175 | - | ||||||||||||||||||||||||||||||
Total allowance for loan losses
|
$ | 11,536 | 100 | % | $ | 12,263 | 100 | % | $ | 9,542 | 100 | % | $ | 12,050 | 100 | % | $ | 11,444 | 100 | % |
|
1.
|
Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices.
|
|
2.
|
National, regional and local economic and business conditions as well as the condition of various segments.
|
|
3.
|
Nature and volume of the portfolio and terms of loans.
|
|
4.
|
Experience, ability and depth of lending management and staff.
|
|
5.
|
Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications.
|
|
6.
|
Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors.
|
|
7.
|
Existence and effect of any concentration of credit and changes in the level of such concentrations.
|
|
8.
|
Effect of external factors, such as competition and legal and regulatory requirements.
|
(dollars in thousands)
|
December 31, | |||||||||||
2014
|
2013
|
2012
|
||||||||||
Impaired loans without a valuation allowance
|
$ | 16,742 | $ | 10,790 | $ | 27,594 | ||||||
Impaired loans with a valuation allowance
|
18,902 | 21,743 | 13,421 | |||||||||
Total impaired loans
|
$ | 35,644 | $ | 32,533 | $ | 41,015 | ||||||
Valuation allowance related to impaired loans
|
$ | 5,130 | $ | 5,610 | $ | 2,943 | ||||||
Total nonaccrual loans
|
21,440 | 10,420 | 15,846 | |||||||||
Total loans past-due ninety days or more and
|
||||||||||||
still accruing
|
- | - | 202 |
(dollars in thousands)
|
December 31, | ||||||||
2014
|
2013
|
2012
|
|||||||
30 to 59 days past due
|
$ | 1,681 | $ | 21,504 | $ | 1,143 | |||
60 to 89 days past due
|
14,062 | 6,987 | 27,823 | ||||||
Total loans 30 to 89 days past due
|
$ | 15,743 | $ | 28,491 | $ | 28,966 |
(dollars in thousands)
|
At December 31,
|
|||||||||||
2014
|
2013
|
2012
|
||||||||||
Demand deposits, non-interest bearing
|
$ | 224,245 | $ | 157,806 | $ | 145,407 | ||||||
Demand deposits, interest bearing
|
283,768 | 230,221 | 180,440 | |||||||||
Money market & savings deposits
|
488,848 | 402,671 | 440,120 | |||||||||
Time deposits
|
75,369 | 78,836 | 123,234 | |||||||||
Total deposits
|
$ | 1,072,230 | $ | 869,534 | $ | 889,201 |
For the Years Ended December 31,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
(dollars in thousands)
|
Average Balance
|
Rate
|
Average Balance
|
Rate
|
Average Balance
|
Rate
|
||||||||||||||||||
Demand deposits:
|
||||||||||||||||||||||||
Non-interest bearing
|
$ | 189,810 | $ | 149,125 | $ | 136,999 | ||||||||||||||||||
Interest bearing
|
233,693 | 0.38 | % | 192,224 | 0.43 | % | 146,319 | 0.54 | % | |||||||||||||||
Money market & savings deposits
|
439,484 | 0.44 | % | 417,652 | 0.43 | % | 433,422 | 0.63 | % | |||||||||||||||
Time deposits
|
78,073 | 0.92 | % | 92,484 | 0.94 | % | 155,549 | 1.10 | % | |||||||||||||||
Total deposits
|
$ | 941,060 | 0.38 | % | $ | 851,485 | 0.41 | % | $ | 872,289 | 0.60 | % |
(dollars in thousands)
|
||||
Maturity:
|
||||
3 months or less
|
$ | 8,880 | ||
3 to 6 months
|
3,864 | |||
6 to 12 months
|
13,839 | |||
Over 12 months
|
13,246 | |||
Total
|
$ | 39,829 |
(dollars in thousands)
|
||||
Maturity:
|
||||
2015
|
$ | 54,442 | ||
2016
|
17,886 | |||
2017
|
1627 | |||
2018
|
907 | |||
2019
|
507 | |||
Thereafter
|
- | |||
Total
|
$ | 75,369 |
(dollars in thousands)
|
Total
|
Less than One Year
|
One to Three Years
|
Three to Five Years
|
After Five Years
|
|||||||||||||||
Minimum annual rentals or non-cancellable operating leases
|
$ | 55,772 | $ | 2,819 | $ | 5,407 | $ | 5,594 | $ | 41,952 | ||||||||||
Remaining contractual maturities of time deposits
|
75,369 | 54,442 | 19,513 | 1,414 | - | |||||||||||||||
Subordinated debt
|
22,476 | - | - | - | 22,476 | |||||||||||||||
Director and Officer retirement plan obligations
|
1,355 | 509 | 222 | 204 | 420 | |||||||||||||||
Loan commitments
|
138,400 | 71,322 | 14,387 | 12,669 | 40,022 | |||||||||||||||
Standby letters of credit
|
3,840 | 2,686 | - | 1,019 | 135 | |||||||||||||||
Total
|
$ | 297,212 | $ | 131,778 | $ | 39,529 | $ | 20,900 | $ | 105,055 |
Interest Rate Sensitivity Gap
|
||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
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
|
$ | 117,044 | $ | 3,031 | $ | 12,649 | $ | 20,276 | $ | 14,151 | $ | 10,902 | $ | 10,968 | $ | 179,385 | $ | 368,406 | $ | 368,793 | ||||||||||||||||||||
Average interest rate
|
2.04 | % | 2.18 | % | 1.51 | % | 1.81 | % | 1.58 | % | 2.26 | % | 2.37 | % | 2.53 | % | 2.35 | % | ||||||||||||||||||||||
Loans receivable
|
267,346 | 19,805 | 40,573 | 73,336 | 96,172 | 108,274 | 92,304 | 85,806 | 783,616 | 773,398 | ||||||||||||||||||||||||||||||
Average interest rate
|
5.00 | % | 5.24 | % | 4.71 | % | 4.91 | % | 4.24 | % | 4.33 | % | 4.40 | % | 7.24 | % | 4.97 | % | ||||||||||||||||||||||
Total
|
$ | 384,390 | $ | 22,836 | $ | 53,222 | $ | 93,612 | $ | 110,323 | $ | 119,176 | $ | 103,272 | $ | 265,191 | $ | 1,152,022 | $ | 1,142,191 | ||||||||||||||||||||
Cumulative totals
|
$ | 384,390 | $ | 407,226 | $ | 460,448 | $ | 554,060 | $ | 664,383 | $ | 783,559 | $ | 886,831 | $ | 1,152,022 | ||||||||||||||||||||||||
Interest sensitive liabilities:
|
||||||||||||||||||||||||||||||||||||||||
Demand interest bearing
(1)
|
$ | 15,559 | $ | 15,559 | $ | 31,117 | $ | 23,161 | $ | 20,398 | $ | 17,667 | $ | 15,307 | $ | 145,000 | $ | 283,768 | $ | 283,768 | ||||||||||||||||||||
Average interest rate
|
0.39 | % | 0.39 | % | 0.39 | % | 0.37 | % | 0.37 | % | 0.38 | % | 0.38 | % | 0.37 | % | 0.38 | % | ||||||||||||||||||||||
Savings accounts
(1)
|
7,452 | 7,452 | 14,904 | 16,940 | 11,769 | 8,637 | 6,513 | 36,816 | 110,483 | 110,483 | ||||||||||||||||||||||||||||||
Average interest rate
|
0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.47 | % | 0.45 | % | ||||||||||||||||||||||
Money market accounts
(1)
|
3,629 | 3,629 | 7,258 | 6,302 | 13,196 | 60,738 | 50,005 | 233,608 | 378,365 | 378,365 | ||||||||||||||||||||||||||||||
Average interest rate
|
0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.40 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.38 | % | ||||||||||||||||||||||
Time deposits
|
17,358 | 10,058 | 27,028 | 17,885 | 1,627 | 907 | 506 | - | 75,369 | 75,592 | ||||||||||||||||||||||||||||||
Average interest rate
|
0.60 | % | 0.60 | % | 0.92 | % | 1.46 | % | 0.96 | % | 0.99 | % | 1.00 | % | - | 0.94 | % | |||||||||||||||||||||||
Subordinated debt
|
11,341 | - | - | - | - | - | - | 11,135 | 22,476 | 18,221 | ||||||||||||||||||||||||||||||
Average interest rate
|
1.96 | % | - | - | - | - | - | - | 8.00 | % | 4.95 | % | ||||||||||||||||||||||||||||
Total
|
$ | 55,339 | $ | 36,698 | $ | 80,307 | $ | 64,288 | $ | 46,990 | $ | 87,949 | $ | 72,331 | $ | 426,559 | $ | 870,461 | $ | 866,429 | ||||||||||||||||||||
Cumulative totals
|
$ | 55,339 | $ | 92,037 | $ | 172,344 | $ | 236,632 | $ | 283,622 | $ | 371,571 | $ | 443,902 | $ | 870,461 | ||||||||||||||||||||||||
Interest rate sensitivity GAP
|
$ | 329,051 | $ | (13,862 | ) | $ | (27,085 | ) | $ | 29,324 | $ | 63,333 | $ | 31,227 | $ | 30,941 | $ | (161,368 | ) | |||||||||||||||||||||
Cumulative GAP
|
$ | 329,051 | $ | 315,189 | $ | 288,104 | $ | 317,428 | $ | 380,761 | $ | 411,988 | $ | 442,929 | $ | 281,561 | ||||||||||||||||||||||||
Interest sensitive assets/Interest sensitive liabilities
|
694.61 | % | 442.46 | % | 267.17 | % | 234.15 | % | 234.25 | % | 210.88 | % | 199.78 | % | 132.35 | % | ||||||||||||||||||||||||
Cumulative GAP/ Total earning assets
|
28.56 | % | 27.36 | % | 25.01 | % | 27.55 | % | 33.05 | % | 35.76 | % | 38.45 | % | 24.44 | % |
Change in Interest Rates in Basis Points (Rate Shock)
|
Net Portfolio Value
|
NPV as a % of Portfolio Value of Assets
|
|||||
Amount
|
$
Change
|
%
Change
|
NPV Ratio
|
Change
(in Basis Points)
|
|||
+400
|
$170,528
|
$51,301
|
43.03%
|
14.84%
|
496
|
||
+300
|
164,197
|
44,970
|
37.72%
|
14.05%
|
417
|
||
+200
|
152,355
|
33,128
|
27.79%
|
12.87%
|
299
|
||
+100
|
136,769
|
17,542
|
14.71%
|
11.42%
|
154
|
||
Static
|
119,227
|
-
|
0.00%
|
9.88%
|
-
|
||
-100
|
106,154
|
(13,073)
|
(10.96)%
|
8.73%
|
(115)
|
Change in Interest Rates in Basis Points
(1)
|
Net Interest Income
|
$
Change
|
%
Change
|
+400
|
$41,239
|
722
|
1.78%
|
+300
|
41,055
|
538
|
1.34%
|
+200
|
40,899
|
372
|
0.92%
|
+100
|
40,731
|
214
|
0.53%
|
Static
|
40,517
|
-
|
0.00%
|
-100
|
40,422
|
(95)
|
(0.23)%
|
(dollars in thousands)
|
Actual
|
For Capital Adequacy Purposes
|
To be well capitalized under regulatory capital guidelines
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
At December 31, 2014:
|
||||||||||||||||||||||||
Total risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 132,460 | 14.04 | % | $ | 75,491 | 8.00 | % | $ | 94,364 | 10.00 | % | ||||||||||||
Company
|
142,556 | 15.10 | % | 75,543 | 8.00 | % | - | - | % | |||||||||||||||
Tier one risk based capital
|
||||||||||||||||||||||||
Republic
|
120,924 | 12.81 | % | 37,746 | 4.00 | % | 56,618 | 6.00 | % | |||||||||||||||
Company
|
131,020 | 13.88 | % | 37,771 | 4.00 | % | - | - | % | |||||||||||||||
Tier one leveraged capital
|
||||||||||||||||||||||||
Republic
|
120,924 | 10.37 | % | 46,630 | 4.00 | % | 58,288 | 5.00 | % | |||||||||||||||
Company
|
131,020 | 11.23 | % | 46,680 | 4.00 | % | - | - | % | |||||||||||||||
At December 31, 2013:
|
||||||||||||||||||||||||
Total risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 92,493 | 11.38 | % | $ | 65,038 | 8.00 | % | $ | 81,297 | 10.00 | % | ||||||||||||
Company
|
93,848 | 11.53 | % | 65,092 | 8.00 | % | - | - | % | |||||||||||||||
Tier one risk based capital
|
||||||||||||||||||||||||
Republic
|
82,305 | 10.12 | % | 32,519 | 4.00 | % | 48,778 | 6.00 | % | |||||||||||||||
Company
|
83,652 | 10.28 | % | 32,546 | 4.00 | % | - | - | % | |||||||||||||||
Tier one leveraged capital
|
||||||||||||||||||||||||
Republic
|
82,305 | 8.46 | % | 38,921 | 4.00 | % | 48,651 | 5.00 | % | |||||||||||||||
Company
|
83,652 | 8.59 | % | 38,971 | 4.00 | % | - | - | % |
Tel: 717-233-8800
Fax: 717-233-8801
www.bdo.com
|
945 E. Park Drive, Suite 103
Harrisburg, PA 17111
|
December 31, 2014
|
December 31, 2013
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 14,822 | $ | 12,525 | ||||
Interest bearing deposits with banks
|
114,004 | 23,355 | ||||||
Cash and cash equivalents
|
128,826 | 35,880 | ||||||
Investment securities available for sale, at fair value
|
185,379 | 204,891 | ||||||
Investment securities held to maturity, at amortized cost (fair value of $68,253 and $21, respectively)
|
67,866 | 21 | ||||||
Restricted stock, at cost
|
1,157 | 1,570 | ||||||
Loans held for sale
|
1,676 | 4,931 | ||||||
Loans receivable (net of allowance for loan losses of $11,536 and $12,263, respectively)
|
770,404 | 667,048 | ||||||
Premises and equipment, net
|
35,030 | 22,748 | ||||||
Other real estate owned, net
|
3,715 | 4,059 | ||||||
Accrued interest receivable
|
3,226 | 3,049 | ||||||
Other assets
|
17,319 | 17,468 | ||||||
Total Assets
|
$ | 1,214,598 | $ | 961,665 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Demand – non-interest bearing
|
$ | 224,245 | $ | 157,806 | ||||
Demand – interest bearing
|
283,768 | 230,221 | ||||||
Money market and savings
|
488,848 | 402,671 | ||||||
Time deposits
|
75,369 | 78,836 | ||||||
Total Deposits
|
1,072,230 | 869,534 | ||||||
Accrued interest payable
|
265 | 237 | ||||||
Other liabilities
|
6,816 | 6,519 | ||||||
Subordinated debt
|
22,476 | 22,476 | ||||||
Total Liabilities
|
1,101,787 | 898,766 | ||||||
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 38,344,348 as of December 31, 2014 and 26,501,742 as of December 31, 2013
|
383 | 265 | ||||||
Additional paid in capital
|
152,234 | 107,078 | ||||||
Accumulated deficit
|
(35,266 | ) | (37,708 | ) | ||||
Treasury stock at cost (503,408 shares as of December 31, 2014 and 416,303 shares as of
December 31, 2013)
|
(3,725 | ) | (3,099 | ) | ||||
Stock held by deferred compensation plan (25,437 shares as of December 31, 2014 and
112,542 shares as of December 31, 2013)
|
(183 | ) | (809 | ) | ||||
Accumulated other comprehensive loss
|
(632 | ) | (2,828 | ) | ||||
Total Shareholders’ Equity
|
112,811 | 62,899 | ||||||
Total Liabilities and Shareholders’ Equity
|
$ | 1,214,598 | $ | 961,665 |
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Interest income:
|
||||||||||||
Interest and fees on taxable loans
|
$ | 34,530 | $ | 31,986 | $ | 32,326 | ||||||
Interest and fees on tax-exempt loans
|
339 | 349 | 265 | |||||||||
Interest and dividends on taxable investment securities
|
5,053 | 4,435 | 4,899 | |||||||||
Interest and dividends on tax-exempt investment securities
|
364 | 250 | 470 | |||||||||
Interest on federal funds sold and other interest-earning assets
|
187 | 185 | 300 | |||||||||
Total interest income
|
40,473 | 37,205 | 38,260 | |||||||||
Interest expense:
|
||||||||||||
Demand- interest bearing
|
888 | 825 | 796 | |||||||||
Money market and savings
|
1,929 | 1,786 | 2,718 | |||||||||
Time deposits
|
719 | 867 | 1,718 | |||||||||
Other borrowings
|
1,108 | 1,112 | 1,134 | |||||||||
Total interest expense
|
4,644 | 4,590 | 6,366 | |||||||||
Net interest income
|
35,829 | 32,615 | 31,894 | |||||||||
Provision for loan losses
|
900 | 4,935 | 1,350 | |||||||||
Net interest income after provision for loan losses
|
34,929 | 27,680 | 30,544 | |||||||||
Non-interest income:
|
||||||||||||
Loan advisory and servicing fees
|
1,452 | 1,615 | 1,251 | |||||||||
Gain on sales of SBA loans
|
4,717 | 5,338 | 5,531 | |||||||||
Service fees on deposit accounts
|
1,224 | 1,046 | 922 | |||||||||
Legal settlements
|
- | 238 | 155 | |||||||||
Gain on sale of investment securities
|
458 | 703 | 737 | |||||||||
Other-than-temporary impairment
|
21 | - | (35 | ) | ||||||||
Portion recognized in other comprehensive income (before taxes)
|
(28 | ) | - | 1 | ||||||||
Net impairment loss on investment securities
|
(7 | ) | - | (34 | ) | |||||||
Bank owned life insurance income
|
- | 13 | 73 | |||||||||
Other non-interest income
|
173 | 263 | 193 | |||||||||
Total non-interest income
|
8,017 | 9,216 | 8,828 | |||||||||
Non-interest expenses:
|
||||||||||||
Salaries and employee benefits
|
20,089 | 17,064 | 16,512 | |||||||||
Occupancy
|
4,247 | 3,635 | 3,454 | |||||||||
Depreciation and amortization
|
2,382 | 2,105 | 2,006 | |||||||||
Legal
|
1,290 | 1,878 | 2,966 | |||||||||
Other real estate owned
|
1,794 | 3,179 | 763 | |||||||||
Advertising
|
597 | 447 | 307 | |||||||||
Data processing
|
1,345 | 1,000 | 1,187 | |||||||||
Insurance
|
586 | 625 | 654 | |||||||||
Professional fees
|
1,468 | 1,420 | 1,106 | |||||||||
Regulatory assessments and costs
|
1,065 | 1,257 | 1,367 | |||||||||
Taxes, other
|
616 | 557 | 594 | |||||||||
Legal settlement
|
- | 1,875 | - | |||||||||
Other operating expenses
|
5,071 | 5,369 | 4,986 | |||||||||
Total non-interest expense
|
40,550 | 40,411 | 35,902 | |||||||||
Income (loss) before benefit for income taxes
|
2,396 | (3,515 | ) | 3,470 | ||||||||
Benefit for income taxes
|
(46 | ) | (35 | ) | (144 | ) | ||||||
Net income (loss)
|
$ | 2,442 | $ | (3,480 | ) | $ | 3,614 | |||||
Net income (loss) per share:
|
||||||||||||
Basic
|
$ | 0.07 | $ | (0.13 | ) | $ | 0.14 | |||||
Diluted
|
$ | 0.07 | $ | (0.13 | ) | $ | 0.14 |
Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Net income (loss)
|
$ | 2,442 | $ | (3,480 | ) | $ | 3,614 | |||||
Other comprehensive income (loss), net of tax
|
||||||||||||
Unrealized gain (loss) on securities (pre-tax $3,759, $(5,301) and $2,368, respectively)
|
2,409 | (3,398 | ) | 1,517 | ||||||||
Reclassification adjustment for securities gains (pre-tax $458, $703 and $737, respectively)
|
(293 | ) | (450 | ) | (472 | ) | ||||||
Reclassification adjustment for impairment charge (pre-tax $7, $- and $34, respectively)
|
4 | - | 22 | |||||||||
Net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity:
|
||||||||||||
Amortization of net unrealized holding
losses during the period
(pre-tax $118, $-, $-, respectively)
|
76 | - | - | |||||||||
Total other comprehensive income (loss)
|
2,196 | (3,848 | ) | 1,067 | ||||||||
Total comprehensive income (loss)
|
$ | 4,638 | $ | (7,328 | ) | $ | 4,681 |
2014
|
2013
|
2012
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income (loss)
|
$ | 2,442 | $ | (3,480 | ) | $ | 3,614 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||
Provision for loan losses
|
900 | 4,935 | 1,350 | |||||||||
Loss (gain) on sale of other real estate owned
|
9 | (68 | ) | 10 | ||||||||
Write down of other real estate owned
|
1,138 | 2,567 | 130 | |||||||||
Depreciation and amortization
|
2,382 | 2,105 | 2,006 | |||||||||
Deferred income taxes
|
(142 | ) | (304 | ) | (225 | ) | ||||||
Stock based compensation
|
420 | 325 | 370 | |||||||||
Gain on sale and call of investment securities
|
(458 | ) | (703 | ) | (737 | ) | ||||||
Impairment charges on investment securities
|
7 | - | 34 | |||||||||
Amortization of premiums on investment securities
|
540 | 731 | 440 | |||||||||
Proceeds from sales of SBA loans originated for sale
|
51,388 | 57,939 | 56,983 | |||||||||
SBA loans originated for sale
|
(43,416 | ) | (57,450 | ) | (50,609 | ) | ||||||
Gains on sales of SBA loans originated for sale
|
(4,717 | ) | (5,338 | ) | (5,531 | ) | ||||||
Increase in value of bank owned life insurance
|
- | (13 | ) | (73 | ) | |||||||
Increase in accrued interest receivable and other assets
|
(1,117 | ) | (363 | ) | (222 | ) | ||||||
Net increase (decrease) in accrued interest payable and other liabilities
|
325 | (323 | ) | (336 | ) | |||||||
Net cash provided by operating activities
|
9,701 | 560 | 7,204 | |||||||||
Cash flows from investing activities
|
||||||||||||
Purchase of investment securities available for sale
|
(78,825 | ) | (62,544 | ) | (72,464 | ) | ||||||
Proceeds from the sale of securities available for sale
|
5,700 | 7,946 | 25,784 | |||||||||
Proceeds from the maturity or call of securities available for sale
|
25,822 | 32,931 | 33,670 | |||||||||
Proceeds from the maturity or call of securities held to maturity
|
2,308 | 48 | 75 | |||||||||
Net redemption of FHLB stock
|
413 | 2,246 | 1,505 | |||||||||
Net increase in loans
|
(105,256 | ) | (63,870 | ) | (35,174 | ) | ||||||
Net proceeds from sale of other real estate owned
|
197 | 2,600 | 334 | |||||||||
Surrender proceeds on bank owned life insurance
|
- | 10,503 | - | |||||||||
Premises and equipment expenditures
|
(14,664 | ) | (2,877 | ) | (475 | ) | ||||||
Net cash used in investing activities
|
(164,305 | ) | (73,017 | ) | (46,745 | ) | ||||||
Cash flows from financing activities
|
||||||||||||
Net proceeds from stock offering
|
44,853 | - | - | |||||||||
Net proceeds from exercise of stock options
|
1 | - | - | |||||||||
Net increase in demand, money market and savings deposits
|
206,163 | 24,731 | 30,297 | |||||||||
Net decrease in time deposits
|
(3,467 | ) | (44,398 | ) | (93,707 | ) | ||||||
Net cash provided by (used in) financing activities
|
247,550 | (19,667 | ) | (63,410 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
92,946 | (92,124 | ) | (102,951 | ) | |||||||
Cash and cash equivalents, beginning of year
|
35,880 | 128,004 | 230,955 | |||||||||
Cash and cash equivalents, end of year
|
$ | 128,826 | $ | 35,880 | $ | 128,004 | ||||||
Supplemental disclosures:
|
||||||||||||
Interest paid
|
$ | 4,616 | $ | 4,654 | $ | 7,114 | ||||||
Income taxes paid
|
$ | 70 | $ | 235 | $ | - | ||||||
Non-cash transfers from loans to other real estate owned
|
$ | 1,000 | $ | 246 | $ | 2,907 | ||||||
Transfer of available-for-sale-securities to held-to-maturity securities
|
$ | 70,118 | $ | - | $ | - |
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, 2012
|
$ | 265 | $ | 106,383 | $ | (37,842 | ) | $ | (3,099 | ) | $ | (809 | ) | $ | (47 | ) | $ | 64,851 | ||||||||||
Net income
|
3,614 | 3,614 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
1,067 | 1,067 | ||||||||||||||||||||||||||
Stock based compensation
|
370 | 370 | ||||||||||||||||||||||||||
Balance December 31, 2012
|
265 | 106,753 | (34,228 | ) | (3,099 | ) | (809 | ) | 1,020 | 69,902 | ||||||||||||||||||
Net loss
|
(3,480 | ) | (3,480 | ) | ||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(3,848 | ) | (3,848 | ) | ||||||||||||||||||||||||
Stock based compensation
|
325 | 325 | ||||||||||||||||||||||||||
Balance December 31, 2013
|
265 | 107,078 | (37,708 | ) | (3,099 | ) | (809 | ) | (2,828 | ) | 62,899 | |||||||||||||||||
Net income
|
2,442 | 2,442 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
2,196 | 2,196 | ||||||||||||||||||||||||||
Proceeds from shares issued under
common stock offering (11,842,106
shares) net of offering costs
|
118 | 44,735 | 44,853 | |||||||||||||||||||||||||
Stock based compensation
|
420 | 420 | ||||||||||||||||||||||||||
Options exercised (500 shares)
|
- | 1 | 1 | |||||||||||||||||||||||||
Transfer from deferred compensation
plan to treasury stock (87,105 shares)
|
(626 | ) | 626 | - | ||||||||||||||||||||||||
Balance December 31, 2014
|
$ | 383 | $ | 152,234 | $ | (35,266 | ) | $ | (3,725 | ) | $ | (183 | ) | $ | (632 | ) | $ | 112,811 |
1.
|
Nature of Operations
|
2.
|
Summary of Significant Accounting Policies
|
|
1)
|
Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices.
|
|
2)
|
National, regional and local economic and business conditions as well as the condition of various segments.
|
|
3)
|
Nature and volume of the portfolio and terms of loans.
|
|
4)
|
Experience, ability and depth of lending management and staff.
|
|
5)
|
Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications.
|
|
6)
|
Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors.
|
|
7)
|
Existence and effect of any concentration of credit and changes in the level of such concentrations.
|
|
8)
|
Effect of external factors, such as competition and legal and regulatory requirements.
|
(dollars in thousands, except per share amounts)
|
2014
|
2013
|
2012
|
|||||||||
Net income (loss) - basic and diluted
|
$ | 2,442 | $ | (3,480 | ) | $ | 3,614 | |||||
Weighted average shares outstanding
|
34,232 | 25,973 | 25,973 | |||||||||
Net income (loss) per share – basic
|
$ | 0.07 | $ | (0.13 | ) | $ | 0.14 | |||||
Weighted average shares outstanding (including dilutive CSEs)
|
34,591 | 25,973 | 25,992 | |||||||||
Net income (loss) per share – diluted
|
$ | 0.07 | $ | (0.13 | ) | $ | 0.14 |
3.
|
Investment Securities
|
At December 31, 2014
|
||||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair
Value
|
||||||||||||
Collateralized mortgage obligations
|
$ | 98,626 | $ | 692 | $ | (96 | ) | $ | 99,222 | |||||||
Mortgage-backed securities
|
13,271 | 564 | (33 | ) | 13,802 | |||||||||||
Municipal securities
|
15,784 | 363 | (40 | ) | 16,107 | |||||||||||
Corporate bonds
|
33,840 | 621 | (34 | ) | 34,427 | |||||||||||
Asset-backed securities
|
18,353 | 152 | - | 18,505 | ||||||||||||
Trust preferred securities
|
5,261 | - | (2,068 | ) | 3,193 | |||||||||||
Other securities
|
115 | 8 | - | 123 | ||||||||||||
Total securities available for sale
|
$ | 185,250 | $ | 2,400 | $ | (2,271 | ) | $ | 185,379 | |||||||
U.S. Government agencies
|
$ | 1 | $ | - | $ | - | $ | 1 | ||||||||
Collateralized mortgage obligations
|
67,845 | 531 | (144 | ) | 68,232 | |||||||||||
Other securities
|
20 | - | - | 20 | ||||||||||||
Total securities held to maturity
|
$ | 67,866 | $ | 531 | $ | (144 | ) | $ | 68,253 |
At December 31, 2013
|
||||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair
Value
|
||||||||||||
Collateralized mortgage obligations
|
$ | 127,242 | $ | 665 | $ | (4,467 | ) | $ | 123,440 | |||||||
Mortgage-backed securities
|
15,669 | 623 | (111 | ) | 16,181 | |||||||||||
Municipal securities
|
9,737 | 68 | (162 | ) | 9,643 | |||||||||||
Corporate bonds
|
32,174 | 1,079 | - | 33,253 | ||||||||||||
Asset-backed securities
|
19,089 | 318 | - | 19,407 | ||||||||||||
Trust preferred securities
|
5,277 | - | (2,427 | ) | 2,850 | |||||||||||
Other securities
|
115 | 2 | - | 117 | ||||||||||||
Total securities available for sale
|
$ | 209,303 | $ | 2,755 | $ | (7,167 | ) | $ | 204,891 | |||||||
U.S. Government agencies
|
$ | 1 | $ | - | $ | - | $ | 1 | ||||||||
Other securities
|
20 | - | - | 20 | ||||||||||||
Total securities held to maturity
|
$ | 21 | $ | - | $ | - | $ | 21 |
Available for Sale
|
Held to Maturity
|
|||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||
Due in 1 year or less
|
$ | 15,105 | $ | 15,291 | $ | - | $ | - | ||||||||
After 1 year to 5 years
|
70,661 | 71,584 | 40,604 | 40,974 | ||||||||||||
After 5 years to 10 years
|
88,885 | 87,663 | 27,262 | 27,279 | ||||||||||||
After 10 years
|
10,599 | 10,841 | - | - | ||||||||||||
Total
|
$ | 185,250 | $ | 185,379 | $ | 67,866 | $ | 68,253 |
(dollars in thousands)
|
2014
|
2013
|
||||||
Beginning Balance, January 1
st
|
$ | 3,959 | $ | 3,959 | ||||
Additional credit-related impairment loss on securities for which an
|
||||||||
other-than-temporary impairment was previously recognized
|
7 | - | ||||||
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, December 31
st
|
$ | 3,966 | $ | 3,959 |
At December 31, 2014
|
||||||||||||||||||||||||
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
|
$ | 17,331 | $ | 96 | $ | - | $ | - | $ | 17,331 | $ | 96 | ||||||||||||
Mortgage-backed securities
|
3,997 | 2 | 1,069 | 31 | 5,066 | 33 | ||||||||||||||||||
Municipal securities
|
1,298 | 10 | 1,395 | 30 | 2,693 | 40 | ||||||||||||||||||
Corporate bonds
|
4,880 | 34 | - | - | 4,880 | 34 | ||||||||||||||||||
Trust preferred securities
|
- | - | 3,193 | 2,068 | 3,193 | 2,068 | ||||||||||||||||||
Total Available for Sale
|
$ | 27,506 | $ | 142 | $ | 5,657 | $ | 2,129 | $ | 33,163 | $ | 2,271 |
At December 31, 2014 | ||||||||||||||||||||||||
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
|
$ | 19,766 | 92 | $ | 9,232 | 52 | $ | 28,998 | 144 | |||||||||||||||
Total Held to Maturity
|
$ | 19,766 | $ | 92 | $ | 9,232 | $ | 52 | $ | 28,998 | $ | 144 |
At December 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
|
$ | 73,137 | $ | 3,923 | $ | 8,697 | $ | 544 | $ | 81,834 | $ | 4,467 | ||||||||||||
Mortgage-backed securities
|
1,450 | 41 | 1,123 | 70 | 2,573 | 111 | ||||||||||||||||||
Municipal securities
|
5,108 | 162 | - | - | 5,108 | 162 | ||||||||||||||||||
Trust preferred securities
|
- | - | 2,850 | 2,427 | 2,850 | 2,427 | ||||||||||||||||||
Total Available for Sale
|
$ | 79,695 | $ | 4,126 | $ | 12,670 | $ | 3,041 | $ | 92,365 | $ | 7,167 |
(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
|
$
|
41
|
$
|
(8)
|
B1
|
6
|
18%
|
0.31%
|
$
|
-
|
Preferred Term Securities VII
|
Mezzanine Notes
|
979
|
890
|
(89)
|
D
|
11
|
54
|
0.36
|
2,173
|
||||
TPREF Funding II
|
Class B Notes
|
732
|
372
|
(360)
|
C
|
18
|
41
|
0.35
|
267
|
||||
TPREF Funding III
|
Class B2 Notes
|
1,521
|
752
|
(769)
|
C
|
15
|
36
|
0.27
|
480
|
||||
Trapeza CDO I, LLC
|
Class C1 Notes
|
556
|
312
|
(244)
|
C
|
9
|
49
|
0.29
|
470
|
||||
ALESCO Preferred Funding IV
|
Class B1 Notes
|
604
|
402
|
(202)
|
C
|
40
|
8
|
0.31
|
396
|
||||
ALESCO Preferred Funding V
|
Class C1 Notes
|
820
|
424
|
(396)
|
C
|
41
|
15
|
0.35
|
180
|
||||
Total
|
$
|
5,261
|
$
|
3,193
|
$
|
(2,068)
|
140
|
30%
|
$
|
3,966
|
4.
|
Loans Receivable
|
(dollars in thousands)
|
December 31, 2014
|
December 31, 2013
|
||||||
Commercial real estate
|
$ | 379,259 | $ | 342,794 | ||||
Construction and land development
|
29,861 | 23,977 | ||||||
Commercial and industrial
|
145,113 | 118,209 | ||||||
Owner occupied real estate
|
188,025 | 160,229 | ||||||
Consumer and other
|
39,713 | 31,981 | ||||||
Residential mortgage
|
408 | 2,359 | ||||||
Total loans receivable
|
782,379 | 679,549 | ||||||
Deferred costs (fees)
|
(439 | ) | (238 | ) | ||||
Allowance for loan losses
|
(11,536 | ) | (12,263 | ) | ||||
Net loans receivable
|
$ | 770,404 | $ | 667,048 |
December 31, 2014
|
December 31, 2013
|
|||||||||||||||||||||||
(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
|
$ | 11,964 | $ | 11,969 | $ | - | $ | 6,850 | $ | 6,971 | $ | - | ||||||||||||
Construction and land development
|
61 | 158 | - | 902 | 4,076 | - | ||||||||||||||||||
Commercial and industrial
|
3,764 | 7,275 | - | 2,043 | 2,882 | - | ||||||||||||||||||
Owner occupied real estate
|
524 | 528 | - | 542 | 862 | - | ||||||||||||||||||
Consumer and other
|
429 | 708 | - | 453 | 711 | - | ||||||||||||||||||
Total
|
$ | 16,742 | $ | 20,638 | $ | - | $ | 10,790 | $ | 15,502 | $ | - |
Total:
|
||||||||||||||||||||||||
Commercial real estate
|
$ | 25,082 | $ | 25,214 | $ | 3,858 | $ | 19,894 | $ | 20,015 | $ | 3,679 | ||||||||||||
Construction and land development
|
377 | 3,899 | 217 | 1,618 | 7,943 | 237 | ||||||||||||||||||
Commercial and industrial
|
5,221 | 9,332 | 211 | 6,932 | 10,516 | 1,254 | ||||||||||||||||||
Owner occupied real estate
|
4,535 | 4,690 | 844 | 3,433 | 3,753 | 430 | ||||||||||||||||||
Consumer and other
|
429 | 708 | - | 656 | 921 | 10 | ||||||||||||||||||
Total
|
$ | 35,644 | $ | 43,843 | $ | 5,130 | $ | 32,533 | $ | 43,148 | $ | 5,610 |
Years Ended December 31,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
(dollars in thousands)
|
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial real estate
|
$ | 7,739 | $ | 450 | $ | 14,062 | $ | 731 | ||||||||
Construction and land development
|
462 | - | 1,954 | 35 | ||||||||||||
Commercial and industrial
|
3,070 | 22 | 2,783 | 19 | ||||||||||||
Owner occupied real estate
|
714 | 8 | 347 | 9 | ||||||||||||
Consumer and other
|
482 | 4 | 651 | 6 | ||||||||||||
Total
|
$ | 12,467 | $ | 484 | $ | 19,797 | $ | 800 |
With an allowance recorded:
|
||||||||||||||||
Commercial real estate
|
$ | 13,197 | $ | 5 | $ | 6,261 | $ | 195 | ||||||||
Construction and land development
|
557 | - | 499 | - | ||||||||||||
Commercial and industrial
|
3,244 | - | 3,881 | 40 | ||||||||||||
Owner occupied real estate
|
3,446 | 125 | 3,139 | 146 | ||||||||||||
Consumer and other
|
40 | - | 110 | - | ||||||||||||
Total
|
$ | 20,484 | $ | 130 | $ | 13,890 | $ | 381 |
Total:
|
||||||||||||||||
Commercial real estate
|
$ | 20,936 | $ | 455 | $ | 20,323 | $ | 926 | ||||||||
Construction and land development
|
1,019 | - | 2,453 | 35 | ||||||||||||
Commercial and industrial
|
6,314 | 22 | 6,664 | 59 | ||||||||||||
Owner occupied real estate
|
4,160 | 133 | 3,486 | 155 | ||||||||||||
Consumer and other
|
522 | 4 | 761 | 6 | ||||||||||||
Total
|
$ | 32,951 | $ | 614 | $ | 33,687 | $ | 1,181 |
(dollars in thousands)
|
December 31, 2014
|
December 31, 2013
|
December 31, 2012
|
|||||||||
Balance at beginning of year
|
$ | 8,762 | $ | 9,128 | $ | 16,941 | ||||||
Additions
|
500 | 51 | 259 | |||||||||
Repayments
|
(509 | ) | (417 | ) | (8,072 | ) | ||||||
Balance at end of year
|
$ | 8,753 | $ | 8,762 | $ | 9,128 |
(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, 2014
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 3,858 | $ | 217 | $ | 211 | $ | 844 | $ | - | $ | - | $ | - | $ | 5,130 | ||||||||||||||||
Collectively evaluated for impairment
|
2,970 | 700 | 1,368 | 794 | 234 | 2 | 338 | 6,406 | ||||||||||||||||||||||||
Total allowance for loan losses
|
$ | 6,828 | $ | 917 | $ | 1,579 | $ | 1,638 | $ | 234 | $ | 2 | $ | 338 | $ | 11,536 | ||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||||||
Loans evaluated individually
|
$ | 25,082 | $ | 377 | $ | 5,221 | $ | 4,535 | $ | 429 | $ | - | $ | - | $ | 35,644 | ||||||||||||||||
Loans evaluated collectively
|
354,177 | 29,484 | 139,892 | 183,490 | 39,284 | 408 | - | 746,735 | ||||||||||||||||||||||||
Total loans receivable
|
$ | 379,259 | $ | 29,861 | $ | 145,113 | $ | 188,025 | $ | 39,713 | $ | 408 | $ | - | $ | 782,379 |
(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, 2013
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 3,679 | $ | 237 | $ | 1,254 | $ | 430 | $ | 10 | $ | - | $ | - | $ | 5,610 | ||||||||||||||||
Collectively evaluated for impairment
|
2,775 | 1,711 | 1,055 | 555 | 215 | 14 | 328 | 6,653 | ||||||||||||||||||||||||
Total allowance for loan losses
|
$ | 6,454 | $ | 1,948 | $ | 2,309 | $ | 985 | $ | 225 | $ | 14 | $ | 328 | $ | 12,263 | ||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||||||
Loans evaluated individually
|
$ | 19,894 | $ | 1,618 | $ | 6,932 | $ | 3,433 | $ | 656 | $ | - | $ | - | $ | 32,533 | ||||||||||||||||
Loans evaluated collectively
|
322,900 | 22,359 | 111,277 | 156,796 | 31,325 | 2,359 | - | 647,016 | ||||||||||||||||||||||||
Total loans receivable
|
$ | 342,794 | $ | 23,977 | $ | 118,209 | $ | 160,229 | $ | 31,981 | $ | 2,359 | $ | - | $ | 679,549 |
(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, 2014
|
||||||||||||||||||||||||||||
Commercial real estate
|
$ | 713 | $ | 11,034 | $ | 13,979 | $ | 25,726 | $ | 353,533 | $ | 379,259 | $ | - | ||||||||||||||
Construction and land development
|
- | - | 377 | 377 | 29,484 | 29,861 | - | |||||||||||||||||||||
Commercial and industrial
|
193 | 2,186 | 4,349 | 6,728 | 138,385 | 145,113 | - | |||||||||||||||||||||
Owner occupied real estate
|
626 | 812 | 2,306 | 3,744 | 184,281 | 188,025 | - | |||||||||||||||||||||
Consumer and other
|
149 | 30 | 429 | 608 | 39,105 | 39,713 | - | |||||||||||||||||||||
Residential mortgage
|
- | - | - | - | 408 | 408 | - | |||||||||||||||||||||
Total
|
$ | 1,681 | $ | 14,062 | $ | 21,440 | $ | 37,183 | $ | 745,196 | $ | 782,379 | $ | - |
(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, 2013
|
||||||||||||||||||||||||||||
Commercial real estate
|
$ | 19,707 | $ | 5,635 | $ | 1,104 | $ | 26,446 | $ | 316,348 | $ | 342,794 | $ | - | ||||||||||||||
Construction and land development
|
- | - | 1,618 | 1,618 | 22,359 | 23,977 | - | |||||||||||||||||||||
Commercial and industrial
|
951 | 71 | 6,837 | 7,859 | 110,350 | 118,209 | - | |||||||||||||||||||||
Owner occupied real estate
|
808 | 1,281 | 205 | 2,294 | 157,935 | 160,229 | - | |||||||||||||||||||||
Consumer and other
|
38 | - | 656 | 694 | 31,287 | 31,981 | - | |||||||||||||||||||||
Residential mortgage
|
- | - | - | - | 2,359 | 2,359 | - | |||||||||||||||||||||
Total
|
$ | 21,504 | $ | 6,987 | $ | 10,420 | $ | 38,911 | $ | 640,638 | $ | 679,549 | $ | - |
(dollars in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
At December 31, 2014:
|
||||||||||||||||||||
Commercial real estate
|
$ | 345,444 | $ | 8,199 | $ | 25,616 | $ | - | $ | 379,259 | ||||||||||
Construction and land development
|
29,484 | - | 377 | - | 29,861 | |||||||||||||||
Commercial and industrial
|
139,062 | 702 | 3,920 | 1,429 | 145,113 | |||||||||||||||
Owner occupied real estate
|
181,940 | 1,550 | 4,535 | - | 188,025 | |||||||||||||||
Consumer and other
|
38,951 | 75 | 687 | - | 39,713 | |||||||||||||||
Residential mortgage
|
408 | - | - | - | 408 | |||||||||||||||
Total
|
$ | 735,289 | $ | 10,526 | $ | 35,135 | $ | 1,429 | $ | 782,379 |
(dollars in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
At December 31, 2013:
|
||||||||||||||||||||
Commercial real estate
|
$ | 305,974 | $ | 16,372 | $ | 20,448 | $ | - | $ | 342,794 | ||||||||||
Construction and land development
|
22,359 | - | 1,618 | - | 23,977 | |||||||||||||||
Commercial and industrial
|
110,629 | 611 | 6,969 | - | 118,209 | |||||||||||||||
Owner occupied real estate
|
155,648 | 1,485 | 3,096 | - | 160,229 | |||||||||||||||
Consumer and other
|
30,993 | 75 | 913 | - | 31,981 | |||||||||||||||
Residential mortgage
|
2,359 | - | - | - | 2,359 | |||||||||||||||
Total
|
$ | 627,962 | $ | 18,543 | $ | 33,044 | $ | - | $ | 679,549 |
(dollars in thousands)
|
December 31, 2014
|
December 31, 2013
|
||||||
Commercial real estate
|
$ | 13,979 | $ | 1,104 | ||||
Construction and land development
|
377 | 1,618 | ||||||
Commercial and industrial
|
4,349 | 6,837 | ||||||
Owner occupied real estate
|
2,306 | 205 | ||||||
Consumer and other
|
429 | 656 | ||||||
Residential mortgage
|
- | - | ||||||
Total
|
$ | 21,440 | $ | 10,420 |
(dollars in thousands)
|
Number of Loans
|
Accrual Status
|
Non-Accrual Status
|
Total TDRs
|
||||||||||||
December 31, 2014
|
||||||||||||||||
Commercial real estate
|
1 | $ | 6,069 | $ | - | $ | 6,069 | |||||||||
Construction and land development
|
- | - | - | - | ||||||||||||
Commercial and industrial
|
1 | - | 1,673 | 1,673 | ||||||||||||
Owner occupied real estate
|
1 | 1,852 | - | 1,852 | ||||||||||||
Consumer and other
|
- | - | - | - | ||||||||||||
Residential mortgage
|
- | - | - | - | ||||||||||||
Total
|
3 | $ | 7,921 | $ | 1,673 | $ | 9,594 | |||||||||
December 31, 2013
|
||||||||||||||||
Commercial real estate
|
1 | $ | 103 | $ | - | $ | 103 | |||||||||
Construction and land development
|
- | - | - | - | ||||||||||||
Commercial and industrial
|
1 | - | 2,188 | 2,188 | ||||||||||||
Owner occupied real estate
|
1 | 1,894 | - | 1,894 | ||||||||||||
Consumer and other
|
- | - | - | - | ||||||||||||
Residential mortgage
|
- | - | - | - | ||||||||||||
Total
|
3 | $ | 1,997 | $ | 2,188 | $ | 4,185 |
(dollars in thousands)
|
December 31, 2014
|
December 31, 2013
|
||||||
Land
|
$ | 4,216 | $ | 200 | ||||
Bank building
|
9,375 | 1,057 | ||||||
Leasehold improvements
|
19,592 | 19,017 | ||||||
Furniture, fixtures and equipment
|
10,035 | 7,670 | ||||||
Construction in progress
|
4,406 | 6,402 | ||||||
47,624 | 34,346 | |||||||
Less accumulated depreciation
|
(12,594 | ) | (11,598 | ) | ||||
Net premises and equipment
|
$ | 35,030 | $ | 22,748 |
7.
|
Borrowings
|
8.
|
Deposits
|
(dollars in thousands)
|
2015
|
2016
|
2017
|
2018
|
2019
|
Thereafter
|
Total
|
||||||
Certificates of Deposit
|
$54,442
|
$17,886
|
$1,627
|
$ 907
|
$ 507
|
$ -
|
$75,369
|
9.
|
Income Taxes
|
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Current
|
||||||||||||
Federal
|
$ | 96 | $ | 269 | $ | 81 | ||||||
State
|
- | - | - | |||||||||
Deferred
|
(142 | ) | (304 | ) | (225 | ) | ||||||
Total benefit for income taxes
|
$ | (46 | ) | $ | (35 | ) | $ | (144 | ) |
(dollars in thousands)
|
2014
|
2013
|
2012
|
|||||||||
Tax (benefit) provision computed at statutory rate
|
$ | 839 | $ | (1,230 | ) | $ | 1,214 | |||||
Tax exempt interest
|
(246 | ) | (210 | ) | (257 | ) | ||||||
Bank owned life insurance
|
- | (4 | ) | (26 | ) | |||||||
Deferred tax asset valuation allowance
|
(679 | ) | 1,428 | (1,002 | ) | |||||||
Other
|
40 | (19 | ) | (73 | ) | |||||||
Total benefit for income taxes
|
$ | (46 | ) | $ | (35 | ) | $ | (144 | ) |
(dollars in thousands)
|
2014
|
2013
|
||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$ | 4,143 | $ | 4,403 | ||||
Deferred compensation
|
786 | 721 | ||||||
Unrealized loss on securities available for sale
|
354 | 1,584 | ||||||
Realized loss in other than temporary impairment charge
|
1,124 | 1,121 | ||||||
Foreclosed real estate write-downs
|
1,470 | 1,131 | ||||||
Interest income on non-accrual loans
|
1,117 | 955 | ||||||
Net operating loss carryforward
|
10,622 | 11,826 | ||||||
Other
|
1,329 | 986 | ||||||
Total deferred tax assets
|
20,945 | 22,727 | ||||||
Deferred tax liabilities
|
||||||||
Deferred loan costs
|
934 | 859 | ||||||
Other
|
370 | 460 | ||||||
Total deferred tax liabilities
|
1,304 | 1,319 | ||||||
Net deferred tax asset before valuation allowance
|
19,641 | 21,408 | ||||||
Less: valuation allowance
|
(14,659 | ) | (15,338 | ) | ||||
Net deferred tax asset
|
$ | 4,982 | $ | 6,070 |
10.
|
Financial Instruments with Off-Balance Sheet Risk
|
11.
|
Commitments and Contingencies
|
Year Ended
|
Amount
|
|||
2015
|
$ | 2,819 | ||
2016
|
2,698 | |||
2017
|
2,709 | |||
2018
|
2,765 | |||
2019
|
2,829 | |||
Thereafter
|
41,952 | |||
Total
|
$ | 55,772 |
12.
|
Regulatory Capital
|
(dollars in thousands)
|
Actual
|
For Capital Adequacy Purposes
|
To be well capitalized under regulatory capital guidelines
|
|||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
At December 31, 2014:
|
||||||||||||||||||||||||
Total risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 132,460 | 14.04 | % | $ | 75,491 | 8.00 | % | $ | 94,364 | 10.00 | % | ||||||||||||
Company
|
142,556 | 15.10 | % | 75,543 | 8.00 | % | - | - | % | |||||||||||||||
Tier one risk based capital
|
||||||||||||||||||||||||
Republic
|
120,924 | 12.81 | % | 37,746 | 4.00 | % | 56,618 | 6.00 | % | |||||||||||||||
Company
|
131,020 | 13.88 | % | 37,771 | 4.00 | % | - | - | % | |||||||||||||||
Tier one leveraged capital
|
||||||||||||||||||||||||
Republic
|
120,924 | 10.37 | % | 46,630 | 4.00 | % | 58,288 | 5.00 | % | |||||||||||||||
Company
|
131,020 | 11.23 | % | 46,680 | 4.00 | % | - | - | % | |||||||||||||||
At December 31, 2013:
|
||||||||||||||||||||||||
Total risk based capital
|
||||||||||||||||||||||||
Republic
|
$ | 92,493 | 11.38 | % | $ | 65,038 | 8.00 | % | $ | 81,297 | 10.00 | % | ||||||||||||
Company
|
93,848 | 11.53 | % | 65,092 | 8.00 | % | - | - | % | |||||||||||||||
Tier one risk based capital
|
||||||||||||||||||||||||
Republic
|
82,305 | 10.12 | % | 32,519 | 4.00 | % | 48,778 | 6.00 | % | |||||||||||||||
Company
|
83,652 | 10.28 | % | 32,546 | 4.00 | % | - | - | % | |||||||||||||||
Tier one leveraged capital
|
||||||||||||||||||||||||
Republic
|
82,305 | 8.46 | % | 38,921 | 4.00 | % | 48,651 | 5.00 | % | |||||||||||||||
Company
|
83,652 | 8.59 | % | 38,971 | 4.00 | % | - | - | % |
13.
|
Benefit Plans
|
14.
|
Fair Value Measurements and Fair Values of Financial Instruments
|
|
(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
|
||||||||||||
December 31, 2014
|
||||||||||||||||
Collateralized mortgage obligations
|
$ | 99,222 | $ | - | $ | 99,222 | $ | - | ||||||||
Mortgage-backed securities
|
13,802 | - | 13,802 | - | ||||||||||||
Municipal securities
|
16,107 | - | 16,107 | - | ||||||||||||
Corporate bonds
|
34,427 | - | 31,422 | 3,005 | ||||||||||||
Asset-backed securities
|
18,505 | - | 18,505 | - | ||||||||||||
Trust Preferred Securities
|
3,193 | - | - | 3,193 | ||||||||||||
Other securities
|
123 | - | 123 | - | ||||||||||||
Securities Available for Sale
|
$ | 185,379 | $ | - | $ | 179,181 | $ | 6,198 |
December 31, 2013
|
||||||||||||||||
Collateralized mortgage obligations
|
$ | 123,440 | $ | - | $ | 123,440 | $ | - | ||||||||
Mortgage-backed securities
|
16,181 | - | 16,181 | - | ||||||||||||
Municipal securities
|
9,643 | - | 9,643 | - | ||||||||||||
Corporate bonds
|
33,253 | - | 30,247 | 3,006 | ||||||||||||
Asset-backed securities
|
19,407 | - | 19,407 | - | ||||||||||||
Trust Preferred Securities
|
2,850 | - | - | 2,850 | ||||||||||||
Other securities
|
117 | - | 117 | - | ||||||||||||
Securities Available for Sale
|
$ | 204,891 | $ | - | $ | 199,035 | $ | 5,856 |
Year Ended
December 31, 2014
|
Year Ended
December 31, 2013
|
Year Ended
December 31, 2012
|
||||||||||||||||||||||
Level 3 Investments Only
(dollars in thousands)
|
Trust Preferred Securities
|
Corporate Bonds
|
Trust Preferred Securities
|
Corporate Bonds
|
Trust Preferred Securities
|
Corporate Bonds
|
||||||||||||||||||
Balance, January 1,
|
$ | 2,850 | $ | 3,006 | $ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | ||||||||||||
Security transferred to Level 3 measurement
|
- | - | - | - | - | - | ||||||||||||||||||
Unrealized gains (losses)
|
360 | (1 | ) | 171 | (1 | ) | 401 | 3 | ||||||||||||||||
Paydowns
|
(10 | ) | - | (508 | ) | - | (590 | ) | - | |||||||||||||||
Impairment charges on Level 3
|
(7 | ) | - | - | - | (34 | ) | - | ||||||||||||||||
Balance, December 31,
|
$ | 3,193 | $ | 3,005 | $ | 2,850 | $ | 3,006 | $ | 3,187 | $ | 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
|
||||||||||||
December 31, 2014:
|
||||||||||||||||
Impaired loans
|
$ | 15,838 | $ | - | $ | - | $ | 15,838 | ||||||||
Other real estate owned
|
2,135 | - | - | 2,135 | ||||||||||||
SBA servicing assets
|
4,099 | - | - | 4,099 | ||||||||||||
December 31, 2013:
|
||||||||||||||||
Impaired loans
|
$ | 17,474 | $ | - | $ | - | $ | 17,474 | ||||||||
Other real estate owned
|
3,921 | - | - | 3,921 | ||||||||||||
SBA servicing assets
|
3,477 | - | - | 3,477 |
(1)
|
Fair value is generally determined through independent appraisals of the underlying collateral, which include Level 3 inputs that are not identifiable.
|
(2)
|
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.
|
(3)
|
There is a lack of transactional data in this market place for the non-guaranteed portion of SBA loans.
|
(4)
|
The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value.
|
(dollars in thousands)
|
2014
|
2013
|
||||||
Beginning balance, January 1st
|
$ | 3,477 | $ | 2,340 | ||||
Additions
|
1,277 | 1,349 | ||||||
Fair value adjustments
|
(655 | ) | (212 | ) | ||||
Ending balance, December 31st
|
$ | 4,099 | $ | 3,477 |
(dollars in thousands)
|
December 31, 2014
|
December 31, 2013
|
||||||
SBA Servicing Asset
|
||||||||
Fair Value of SBA Servicing Asset
|
$ | 4,099 | $ | 3,477 | ||||
|
||||||||
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
|
21.2 years
|
21.4 years
|
||||||
Prepayment Speed
|
7.45 | % | 6.72 | % | ||||
Effect on fair value of a 10% increase
|
$ | (116 | ) | $ | (83 | ) | ||
Effect on fair value of a 20% increase
|
(226 | ) | (163 | ) | ||||
Weighted Average Discount Rate
|
12.48 | % | 13.59 | % | ||||
Effect on fair value of a 10% increase
|
$ | (195 | ) | $ | (162 | ) | ||
Effect on fair value of a 20% increase
|
(378 | ) | (316 | ) |
Fair Value Measurements at December 31, 2014
|
||||||||||||||||||||
(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
|
$ | 128,826 | $ | 128,826 | $ | 128,826 | $ | - | $ | - | ||||||||||
Investment securities available for sale
|
185,379 | 185,379 | - | 179,181 | 6,198 | |||||||||||||||
Investment securities held to maturity
|
67,866 | 68,253 | - | 68,253 | - | |||||||||||||||
Restricted stock
|
1,157 | 1,157 | - | 1,157 | - | |||||||||||||||
Loans held for sale
|
1,676 | 1,699 | - | - | 1,699 | |||||||||||||||
Loans receivable, net
|
770,404 | 760,163 | - | - | 760,163 | |||||||||||||||
SBA servicing assets
|
4,099 | 4,099 | - | - | 4,099 | |||||||||||||||
Accrued interest receivable
|
3,226 | 3,226 | - | 3,226 | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Demand, savings and money market
|
$ | 996,861 | $ | 996,861 | $ | - | $ | 996,861 | $ | - | ||||||||||
Time
|
75,369 | 75,592 | - | 75,592 | - | |||||||||||||||
Subordinated debt
|
22,476 | 18,221 | - | - | 18,221 | |||||||||||||||
Accrued interest payable
|
265 | 265 | - | 265 | - | |||||||||||||||
Off-Balance Sheet Data
|
||||||||||||||||||||
Commitments to extend credit
|
- | - | ||||||||||||||||||
Standby letters-of-credit
|
- | - |
Fair Value Measurements at December 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
|
$ | 35,880 | $ | 35,880 | $ | 35,880 | $ | - | $ | - | ||||||||||
Investment securities available for sale
|
204,891 | 204,891 | - | 199,035 | 5,856 | |||||||||||||||
Investment securities held to maturity
|
21 | 21 | - | 21 | - | |||||||||||||||
Restricted stock
|
1,570 | 1,570 | - | 1,570 | - | |||||||||||||||
Loans held for sale
|
4,931 | 5,225 | - | - | 5,225 | |||||||||||||||
Loans receivable, net
|
667,048 | 660,237 | - | - | 660,237 | |||||||||||||||
SBA servicing assets
|
3,477 | 3,477 | - | - | 3,477 | |||||||||||||||
Accrued interest receivable
|
3,049 | 3,049 | - | 3,049 | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Demand, savings and money market
|
$ | 790,698 | $ | 790,698 | $ | - | $ | 790,698 | $ | - | ||||||||||
Time
|
78,836 | 79,323 | - | 79,323 | - | |||||||||||||||
Subordinated debt
|
22,476 | 17,835 | - | - | 17,835 | |||||||||||||||
Accrued interest payable
|
237 | 237 | - | 237 | - | |||||||||||||||
Off-Balance Sheet Data
|
||||||||||||||||||||
Commitments to extend credit
|
- | - | ||||||||||||||||||
Standby letters-of-credit
|
- | - |
2014
|
2013
|
2012
|
||||
Dividend yield
(1)
|
0.0%
|
0.0%
|
0.0%
|
|||
Expected volatility
(2)
|
55.79% to 57.99%
|
54.88% to 55.61%
|
53.12% to 54.49%
|
|||
Risk-free interest rate
(3)
|
1.51% to 2.26%
|
1.28% to 2.03%
|
1.01% to 1.61%
|
|||
Expected life
(4)
|
5.5 to 7.0 years
|
7.0 years
|
7.0 years
|
(1)
|
A dividend yield of 0.0% is utilized because cash dividends have never been paid.
|
(2)
|
Expected volatility is based on Bloomberg’s five and one-half to seven year volatility calculation for “FRBK” stock.
|
(3)
|
The risk-free interest rate is based on the five to seven year Treasury bond.
|
(4)
|
The expected life reflects a 1 to 4 year vesting period, the maximum ten year term and review of historical behavior
.
|
2014
|
2013
|
2012
|
||||||||||
Stock based compensation expense recognized
|
$ | 420,000 | $ | 325,000 | $ | 370,000 | ||||||
Number of unvested stock options
|
1,039,638 | 909,313 | 710,600 | |||||||||
Fair value of unvested stock options
|
$ | 1,548,840 | $ | 1,245,679 | $ | 1,091,948 | ||||||
Amount remaining to be recognized as expense
|
$ | 702,220 | $ | 545,862 | $ | 467,314 |
For the Years Ended December 31,
|
||||||||||||||||||||||||
2014
|
2013
|
2012
|
||||||||||||||||||||||
Shares
|
Weighted Average Exercise Price
|
Shares
|
Weighted Average Exercise Price
|
Shares
|
Weighted Average Exercise Price
|
|||||||||||||||||||
Outstanding, beginning of year
|
1,215,530 | $ | 3.66 | 964,530 | $ | 4.38 | 839,417 | $ | 6.04 | |||||||||||||||
Granted
|
360,900 | 3.69 | 347,250 | 2.72 | 296,750 | 1.95 | ||||||||||||||||||
Exercised
|
(500 | ) | 1.95 | - | - | - | - | |||||||||||||||||
Forfeited
|
(81,531 | ) | 5.15 | (96,250 | ) | 7.39 | (171,637 | ) | 8.32 | |||||||||||||||
Outstanding, end of year
|
1,494,399 | $ | 3.59 | 1,215,530 | $ | 3.66 | 964,530 | $ | 4.38 | |||||||||||||||
Options exercisable at year-end
|
454,761 | $ | 5.06 | 306,217 | $ | 6.24 | 253,930 | $ | 7.92 | |||||||||||||||
Weighted average fair value of options granted during the year
|
$ | 2.07 | $ | 1.51 | $ | 1.05 |
For the Years Ended December 31,
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Number of options exercised
|
500 | - | - | |||||||||
Cash received
|
$ | 975 | $ | - | $ | - | ||||||
Intrinsic value
|
$ | 1,010 | $ | - | $ | - | ||||||
Tax benefit
|
$ | - | $ | - | $ | - |
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||
Range of Exercise Prices
|
Number Outstanding
|
Weighted-Average Remaining Contractual Life
|
Weighted-Average Exercise Price
|
Shares
|
Weighted-Average Exercise Price
|
|||||||||||||||||
$ 1.39 to $2.95 | 635,125 | 7.7 | $ | 2.33 | 129,637 | $ | 2.33 | |||||||||||||||
$ 3.14 to $5.12 | 665,150 | 7.6 | 3.71 | 131,000 | 4.43 | |||||||||||||||||
$ 5.70 to $8.00 | 170,350 | 3.9 | 6.74 | 170,350 | 6.74 | |||||||||||||||||
$ 9.93 to $12.13 | 23,774 | 1.3 | 11.36 | 23,774 | 11.36 | |||||||||||||||||
1,494,399 | $ | 3.59 | 454,761 | $ | 5.06 |
Number of Shares
|
Weighted-Average Grant Date Fair Value
|
|||||||
Nonvested, beginning of year
|
909,313 | $ | 1.37 | |||||
Granted
|
360,900 | 2.07 | ||||||
Vested
|
(209,825 | ) | 1.65 | |||||
Forfeited
|
(20,750 | ) | 1.51 | |||||
Nonvested, end of year
|
1,039,638 | $ | 1.49 |
Balance Sheet
|
||||||||
December 31, 2014 and 2013
|
||||||||
(Dollars in thousands)
|
||||||||
December 31, 2014
|
December 31, 2013
|
|||||||
ASSETS
|
||||||||
Cash
|
$ | 9,471 | $ | 697 | ||||
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding junior obligations of the corporation
|
676 | 676 | ||||||
Investment in subsidiaries
|
121,278 | 80,666 | ||||||
Other assets
|
3,880 | 3,354 | ||||||
Total Assets
|
$ | 135,305 | $ | 85,393 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Accrued expenses
|
$ | 18 | $ | 18 | ||||
Corporation-obligated mandatorily redeemable
securities of subsidiary trust holding solely junior
subordinated debentures of the corporation
|
22,476 | 22,476 | ||||||
Total Liabilities
|
22,494 | 22,494 | ||||||
Shareholders’ Equity
|
||||||||
Total Shareholders’ Equity
|
112,811 | 62,899 | ||||||
Total Liabilities and Shareholders’ Equity
|
$ | 135,305 | $ | 85,393 |
Summary of Selected Quarterly Consolidated Financial Data
|
||||||||||||
(dollars in thousands, except per share data)
|
For the Quarter Ended
|
||||||||||||||||
December 31
st
|
September 30
th
|
June 30
th
|
March 31
st
|
|||||||||||||
2014
|
||||||||||||||||
Interest income
|
$ | 10,786 | $ | 10,401 | $ | 9,631 | $ | 9,655 | ||||||||
Interest expense
|
1,246 | 1,195 | 1,147 | 1,056 | ||||||||||||
Net interest income
|
9,540 | 9,206 | 8,484 | 8,599 | ||||||||||||
Provision for loan losses
|
300 | 300 | 300 | - | ||||||||||||
Non-interest income
|
2,427 | 1,371 | 2,289 | 1,930 | ||||||||||||
Non-interest expense
|
10,792 | 9,986 | 9,957 | 9,815 | ||||||||||||
Provision (benefit) for income taxes
|
22 | (6 | ) | (21 | ) | (41 | ) | |||||||||
Net income
|
$ | 853 | $ | 297 | $ | 537 | $ | 755 | ||||||||
Net income per share
(1)
:
|
||||||||||||||||
Basic
|
$ | 0.02 | $ | 0.01 | $ | 0.02 | $ | 0.03 | ||||||||
Diluted
|
$ | 0.02 | $ | 0.01 | $ | 0.02 | $ | 0.03 | ||||||||
2013
|
||||||||||||||||
Interest income
|
$ | 9,544 | $ | 9,339 | $ | 9,215 | $ | 9,107 | ||||||||
Interest expense
|
1,106 | 1,113 | 1,117 | 1,254 | ||||||||||||
Net interest income
|
8,438 | 8,226 | 8,098 | 7,853 | ||||||||||||
Provision for loan losses
|
3,760 | 250 | 925 | - | ||||||||||||
Non-interest income
|
2,211 | 1,892 | 2,870 | 2,243 | ||||||||||||
Non-interest expense
|
10,117 | 12,108 | 9,056 | 9,130 | ||||||||||||
Provision (benefit) for income taxes
|
33 | (18 | ) | (24 | ) | (26 | ) | |||||||||
Net income (loss)
|
$ | (3,261 | ) | $ | (2,222 | ) | $ | 1,011 | $ | 992 | ||||||
Net income (loss) per share
(1)
:
|
||||||||||||||||
Basic
|
$ | (0.13 | ) | $ | (0.09 | ) | $ | 0.04 | $ | 0.04 | ||||||
Diluted
|
$ | (0.13 | ) | $ | (0.09 | ) | $ | 0.04 | $ | 0.04 |
(1)
|
Quarterly net income (loss) per share does not add to full year net income (loss) per share due to rounding.
|
Tel: 717-233-8800
Fax: 717-233-8801
www.bdo.com
|
945 E. Park Drive, Suite 103
Harrisburg, PA 17111
|
Plan Category
|
Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
Number of Shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in First Column)
|
Equity compensation plans approved by security holders
|
1,494,399
|
$3.59
|
(1)(2)
|
Equity compensation plans not approved by security holders
|
-
|
-
|
-
|
Total
|
1,494,399
|
$3.59
|
(1)(2)
|
(a)
|
(1) The following financial statements and related documents of Republic First Bancorp, Inc. are filed as part of this Annual Report on Form 10-K in Part II – Item 8 “Financial Statements and Supplementary Data”:
|
|
a.
|
Consolidated Balance Sheets as of December 31, 2014 and 2013;
|
|
b.
|
Consolidated Statements of Operations for the years ended December 31, 2014, 2013, and 2012;
|
|
c.
|
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2014, 2013, and 2012;
|
|
d.
|
Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012;
|
|
e.
|
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2014, 2013 and 2012; and
|
|
f.
|
Notes to Consolidated Financial Statements.
|
(a)
|
(2) None
|
(a)
|
(3) The exhibits filed or furnished, as applicable, as part of this report are listed under Exhibits at subsection (b) of this Item 15.
|
(b)
|
Exhibits
|
Exhibit Number
|
Description
|
Location
|
3.1
|
Amended and Restated Articles of Incorporation of Republic First Bancorp, Inc.
|
Incorporated by reference to Form 8-K filed May 13, 2010
|
3.2
|
Amended and Restated By-Laws of Republic First Bancorp, Inc.
|
Incorporated by reference to Form S-1 filed April 23, 2010 (333-166286)
|
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
|
Exhibit Number
|
Description
|
Location
|
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 Agreement between the Company and Harry D. Madonna, dated May 10, 2013*
|
Incorporated by reference to Form 10-Q filed May 10, 2013
|
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*
|
Incorporated by reference to Form 10-K filed March 16, 2010
|
10.4
|
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
|
10.5
|
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
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Exhibit Number
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Description
|
Location
|
10.18 |
Form of Nonqualified Stock Option Award - 2014
Equity Incentive Plan*
|
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10.19
|
Form of Investment Agreement
|
Incorporated by reference to Form 8-K filed on April 22, 2014
|
21.1 | Subsidiaries of the Company | |
23.1
|
Consent of BDO USA, LLP
|
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23.2
|
Consent of Baker Tilly Virchow Krause, LLP
|
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31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chairman and Chief Executive Officer of Republic First Bancorp, Inc.
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31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of Republic First Bancorp, Inc.
|
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32.1
|
Section 1350 Certification of Harry D. Madonna
|
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32.2
|
Section 1350 Certification of Frank A. Cavallaro
|
|
101
|
The following materials from the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Balance Sheets as of December 31, 2014 and December 31, 2013, (ii) Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012, (iii) Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2014, 2013 and 2012, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012, (v) Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2014, 2013 and 2012, and (vi) Notes to Consolidated Financial Statements.
|
|
* Constitutes a management compensation agreement or arrangement.
|
||
(c)
|
All financial statement schedules are omitted because the required information is not present or not present in amounts sufficient to require submission of the schedule or because the information required is included in the respective financial statements or notes thereto contained herein.
|
REPUBLIC FIRST BANCORP, INC.
|
||
Date:
March 13, 201
5
|
By:
|
/s/ Harry D. Madonna
|
Harry D. Madonna
|
||
Chairman, President and Chief Executive Officer
|
||
(principal executive officer)
|
||
Date:
March 13, 201
5
|
By:
|
/s/ Frank A. Cavallaro
|
Frank A. Cavallaro
|
||
Executive Vice President and Chief Financial Officer
|
||
(principal financial and accounting officer)
|
Date: March 13, 2015
|
By:
|
/s/ Robert Coleman
|
Robert Coleman, Director
|
||
Date: March 13, 2015
|
By:
|
/s/ Theodore J. Flocco, Jr.
|
Theodore J. Flocco, Jr., Director
|
||
Date: March 13, 2015
|
By:
|
/s/ Harry D. Madonna
|
Harry D. Madonna, Director and Chairman of the Board
|
||
Date: March 13, 2015
|
By:
|
/s/ Barry L. Spevak
|
Barry L. Spevak, Director
|
||
Date: March 13, 2015
|
By:
|
/s/ Brian P. Tierney
|
Brian P. Tierney, Director
|
||
Date: March 13, 2015
|
By:
|
/s/ Harris Wildstein, Esq.
|
Harris Wildstein, Esq., Director
|
NAME:
|
|||
ADDRESS:
|
|||
DATE:
|
|||
|
·
|
In the event your employment is terminated by the Company (other than for Cause, death or disability), your option will, to the extent not previously exercised by you, terminate on the first to occur of its Expiration Date or three months after the date on which your employment by the Company or a Company subsidiary corporation is terminated;
|
|
·
|
In the event your employment terminates by reason of disability (as defined in Section 22(e)(3)
of the Internal Revenue Code of 1986, as amended (the "Code") or death, your option will terminate on the first to occur of its Expiration Date or one year after such termination of employment; and
|
|
·
|
In the event your employment is terminated by the Company for Cause or you voluntarily terminate employment, your option will, to the extent not previously exercised by you, terminate on the date on which your employment by the Company or a Company subsidiary corporation is terminated.
|
REPUBLIC FIRST BANCORP, INC.
|
|
I hereby acknowledge receipt of a copy of the Plan and the foregoing agreement and, having understood the terms and provisions thereof, hereby signify my understanding of, and my agreement with, its terms and conditions.
|
|
Signature | Date |
NAME:
|
|||
ADDRESS:
|
|||
DATE:
|
|||
|
·
|
In the event your employment or service as a Non-Employee Director is terminated by the Company (other than for Cause, death or disability), your option will, to the extent not previously exercised by you, terminate on the first to occur of its Expiration Date or three months after the date on which your employment by or service to the Company or a Company subsidiary corporation is terminated;
|
|
·
|
In the event your employment or service as a Non-Employee Director terminates by reason of disability (as defined in Section 22(e)(3)
of the Internal Revenue Code of 1986, as amended (the "Code") or death, your option will terminate on the first to occur of its Expiration Date or one year after such termination of employment or service; and
|
|
·
|
In the event your employment or service as a Non-Employee Director is terminated by the Company for Cause or you voluntarily terminate employment or service, your option will, to the extent not previously exercised by you, terminate on the date on which your employment by, or service to, the Company or a Company subsidiary corporation is terminated.
|
REPUBLIC FIRST BANCORP, INC.
|
|
I hereby acknowledge receipt of a copy of the Plan and the foregoing agreement and, having understood the terms and provisions thereof, hereby signify my understanding of, and my agreement with, its terms and conditions.
|
|
Signature
|
Date |
SUBSIDIARIES OF THE COMPANY
|
|||
Subsidiary Name
|
Jurisdiction of Organization
|
||
Subsidiaries of Republic First Bancorp, Inc
.
|
|||
Republic First Bank (dba Republic Bank)
|
Pennsylvania
|
||
Republic Capital Trust II
|
Delaware
|
||
Republic Capital Trust III
|
Delaware
|
||
Republic First Bancorp Capital Trust IV
|
Delaware
|
||
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2014 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
: March 13, 201
5
|
/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, 2014 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:
March 13, 201
5
|
/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:
March 13, 201
5
|
/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:
March 13, 201
5
|
/s/ Frank A. Cavallaro
|
|
Executive Vice President and Chief Financial Officer
|