Pennsylvania
|
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
|
|
(Address of principal executive offices)
|
(Zip code)
|
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock, par value $0.01 per share
|
The NASDAQ Stock Market LLC
|
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
|
56,840,764
|
Title of Class
|
Number of Shares Outstanding as of
March 9, 2017
|
REPUBLIC FIRST BANCORP, INC. AND SUBSIDIARY
|
||
TABLE OF CONTENTS
|
||
PAGE
|
||
PART I:
|
||
Item 1.
|
Business
|
1
|
Item 1A.
|
Risk Factors
|
13
|
Item 1B.
|
Unresolved Staff Comments
|
24
|
Item 2.
|
Properties
|
24
|
Item 3.
|
Legal Proceedings
|
25
|
Item 4.
|
Mine Safety Disclosures
|
25
|
PART II:
|
||
Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
25
|
Item 6.
|
Selected Financial Data
|
26
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
27
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
69
|
Item 8.
|
Financial Statements and Supplementary Data
|
69
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
134
|
Item 9A.
|
Controls and Procedures
|
134
|
Item 9B.
|
Other Information
|
135
|
PART III:
|
||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
136
|
Item 11.
|
Executive Compensation
|
136
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
137
|
Item 13.
|
Certain Relationships and Related Transactions, and Directors Independence
|
137
|
Item 14.
|
Principal Accounting Fees and Services
|
137
|
PART IV:
|
||
Item 15.
|
Exhibits, Financial Statement Schedules
|
138
|
Signatures
|
142
|
· |
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;
|
· |
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;
|
· |
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.
|
Minimum Capital
|
||||||
Effective January 1,
|
Well
|
|||||
2016
|
2017
|
Capitalized
|
||||
Common equity tier 1 capital ratio
|
5.125%
|
5.75%
|
6.5%
|
|||
Tier 1 capital ratio
|
6.625%
|
7.25%
|
8.0%
|
|||
Total capital ratio
|
8.625%
|
9.25%
|
10.0%
|
· |
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;
|
· |
increasing our credit risk, by increasing the likelihood that our major customers become insolvent and unable to satisfy their obligations to us;
|
· |
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.
|
· |
incurring time and expense associated with identifying and evaluating potential acquisitions and negotiating potential transactions;
|
· |
using inaccurate estimates and judgments to evaluate credit, operations, management, and market risks with respect to the target institution or its assets;
|
· |
the time and expense required to integrate the operations and personnel of the combined businesses;
|
· |
creating an adverse short-term effect on our results of operations; and
|
· |
losing key employees and customers as a result of an acquisition that is poorly conceived.
|
Quarter
|
High
|
Low
|
2016:
|
||
4
th
|
$ 9.15
|
$ 3.70
|
3
rd
|
$ 4.52
|
$ 4.00
|
2
nd
|
$ 4.84
|
$ 3.91
|
1
st
|
$ 4.45
|
$ 3.84
|
2015:
|
||
4
th
|
$ 4.67
|
$ 3.53
|
3
rd
|
$ 4.03
|
$ 3.32
|
2
nd
|
$ 3.73
|
$ 3.36
|
1
st
|
$ 3.94
|
$ 3.27
|
As of or for the Years Ended December 31,
|
||||||||||||||||||||
(dollars in thousands, except per share data)
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
INCOME STATEMENT DATA
|
||||||||||||||||||||
Total interest income
|
$
|
54,227
|
$
|
45,436
|
$
|
40,473
|
$
|
37,205
|
$
|
38,260
|
||||||||||
Total interest expense
|
6,863
|
5,381
|
4,644
|
4,590
|
6,366
|
|||||||||||||||
Net interest income
|
47,364
|
40,055
|
35,829
|
32,615
|
31,894
|
|||||||||||||||
Provision for loan losses
|
1,557
|
500
|
900
|
4,935
|
1,350
|
|||||||||||||||
Non-interest income
|
15,312
|
9,943
|
8,017
|
9,216
|
8,828
|
|||||||||||||||
Non-interest expenses
|
56,293
|
47,091
|
40,550
|
40,411
|
35,902
|
|||||||||||||||
Income (loss) before benefit for income taxes
|
4,826
|
2,407
|
2,396
|
(3,515
|
)
|
3,470
|
||||||||||||||
Benefit for income taxes
|
(119
|
)
|
(26
|
)
|
(46
|
)
|
(35
|
)
|
(144
|
)
|
||||||||||
Net income (loss)
|
$
|
4,945
|
$
|
2,433
|
$
|
2,442
|
$
|
(3,480
|
)
|
$
|
3,614
|
|||||||||
PER SHARE DATA
|
||||||||||||||||||||
Basic earnings (loss) per share
|
$
|
0.13
|
$
|
0.06
|
$
|
0.07
|
$
|
(0.13
|
)
|
$
|
0.14
|
|||||||||
Diluted earnings (loss) per share
|
$
|
0.12
|
$
|
0.06
|
$
|
0.07
|
$
|
(0.13
|
)
|
$
|
0.14
|
|||||||||
Book value per share
|
$
|
3.79
|
$
|
3.00
|
$
|
2.98
|
$
|
2.42
|
$
|
2.69
|
||||||||||
Tangible book value per share
|
$
|
3.70
|
$
|
3.00
|
$
|
2.98
|
$
|
2.42
|
$
|
2.69
|
||||||||||
BALANCE SHEET DATA
|
||||||||||||||||||||
Total assets
|
$
|
1,923,931
|
$
|
1,438,824
|
$
|
1,214,598
|
$
|
961,665
|
$
|
988,658
|
||||||||||
Total loans, net
|
955,817
|
866,066
|
770,404
|
667,048
|
608,359
|
|||||||||||||||
Total investment securities
|
803,604
|
460,131
|
254,402
|
206,482
|
193,142
|
|||||||||||||||
Total deposits
|
1,677,670
|
1,249,298
|
1,072,230
|
869,534
|
889,201
|
|||||||||||||||
Short-term borrowings
|
-
|
47,000
|
-
|
-
|
-
|
|||||||||||||||
Subordinated debt
|
21,881
|
21,857
|
22,476
|
22,476
|
22,476
|
|||||||||||||||
Total shareholders' equity
|
215,053
|
113,375
|
112,811
|
62,899
|
69,902
|
|||||||||||||||
PERFORMANCE RATIOS
|
||||||||||||||||||||
Return on average assets
|
0.30
|
%
|
0.19
|
%
|
0.23
|
%
|
(0.37
|
)%
|
0.37
|
%
|
||||||||||
Return on average shareholders' equity
|
3.97
|
%
|
2.14
|
%
|
2.51
|
%
|
(5.07
|
)%
|
5.36
|
%
|
||||||||||
Net interest margin
|
3.14
|
%
|
3.29
|
%
|
3.56
|
%
|
3.66
|
%
|
3.53
|
%
|
||||||||||
Total non-interest expenses as a percentage of average assets
|
3.45
|
%
|
3.59
|
%
|
3.80
|
%
|
4.25
|
%
|
3.70
|
%
|
||||||||||
ASSET QUALITY RATIOS
|
||||||||||||||||||||
Allowance for loan losses as a percentage of loans
|
0.95
|
%
|
0.99
|
%
|
1.48
|
%
|
1.81
|
%
|
1.54
|
%
|
||||||||||
Allowance for loan losses as a percentage of non-performing loans
|
48.45
|
%
|
68.95
|
%
|
53.81
|
%
|
117.69
|
%
|
59.46
|
%
|
||||||||||
Non-performing loans as a percentage of total loans
|
1.96
|
%
|
1.44
|
%
|
2.74
|
%
|
1.53
|
%
|
2.60
|
%
|
||||||||||
Non-performing assets as a percentage of total assets
|
1.51
|
%
|
1.66
|
%
|
2.07
|
%
|
1.51
|
%
|
2.52
|
%
|
||||||||||
Net charge-offs as a percentage of average loans, net
|
0.12
|
%
|
0.41
|
%
|
0.22
|
%
|
0.35
|
%
|
0.63
|
%
|
||||||||||
LIQUIDITY AND CAPITAL RATIOS
|
||||||||||||||||||||
Average equity to average assets
|
7.63
|
%
|
8.67
|
%
|
9.12
|
%
|
7.22
|
%
|
6.95
|
%
|
||||||||||
Leverage ratio
|
12.74
|
%
|
9.65
|
%
|
11.23
|
%
|
8.59
|
%
|
9.01
|
%
|
||||||||||
CET 1 capital to risk-weighted assets
|
16.59
|
%
|
10.42
|
%
|
-
|
-
|
-
|
|||||||||||||
Tier 1 capital to risk-weighted assets
|
18.28
|
%
|
12.40
|
%
|
13.88
|
%
|
10.28
|
%
|
11.48
|
%
|
||||||||||
Total capital to risk-weighted assets
|
18.99
|
%
|
13.19
|
%
|
15.10
|
%
|
11.53
|
%
|
12.73
|
%
|
· |
We completed a $100 million common stock offering during the fourth quarter of 2016. As a result, shareholders' equity increased to $215.1 million as of December 31, 2016 compared to $113.4 million as of December 31, 2015. This capital raise will allow us to execute our aggressive expansion plan over the next several years.
|
· |
New stores were opened in Washington Township and Moorestown, NJ during 2016 bringing the total store count to nineteen. We also opened a prototype store at a prime location in Wynnewood, PA where we relocated our store from nearby Ardmore. We ended the year with a store under construction in Cherry Hill, NJ which is scheduled to be completed in early 2017 and ground will soon be broken on sites in Medford, Sicklerville and Fairless Hills. There are also several additional sites in various stages of approval and development for future store locations.
|
· |
New stores opened since the beginning of the "Power of Red is Back" expansion campaign in 2014 are currently growing deposits at an average rate of $38 million per year, while the average deposit growth for all stores over the last twelve months was approximately $23 million per store.
|
· |
Total revenue grew by 25% during 2016, while non-interest expenses grew at a rate of 20%.
|
· |
Net income increased by 103% to $4.9 million, or $0.12 per diluted share, for the twelve months ended December 31, 2016 compared to $2.4 million, or $0.06 per diluted share, for the twelve months ended December 31, 2015. We continue to open new stores and increase net income despite the additional costs associated with the expansion strategy. The acquisition of Oak Mortgage has also contributed to improved earnings.
|
· |
Total assets increased by $485 million, or 34%, to $1.9 billion as of December 31, 2016 compared to $1.4 billion as of December 31, 2015.
|
· |
Total deposits increased by $428 million, or 34%, to $1.7 billion as of December 31, 2016 compared to $1.2 billion as of December 31, 2015.
|
· |
Total loans grew $90 million, or 10%, to $965 million as of December 31, 2016 compared to $875 million at December 31, 2015.
|
· |
SBA lending continued to be an important part of our lending strategy. More than $70 million in new SBA loans were originated during the year ended December 31, 2016. Our team is currently ranked as the #1 SBA lender in the New Jersey and southeastern Pennsylvania market based on the dollar volume of loan originations.
|
· |
Our Total Risk-Based Capital ratio was 18.99% and Tier I Leverage Ratio was 12.74% at December 31, 2016.
|
· |
Book value per common share increased to $3.79 as of December 31, 2016 compared to $3.00 per share as of December 31, 2015.
|
For the Year Ended
December 31, 2016
|
For the Year Ended
December 31, 2015
|
For the Year Ended
December 31, 2014
|
||||||||||||||||||||||||||||||||||
(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
|
$
|
92,452
|
$
|
473
|
0.51
|
%
|
$
|
106,876
|
$
|
278
|
0.26
|
%
|
$
|
75,593
|
$
|
187
|
0.25
|
%
|
||||||||||||||||||
Investment securities and restricted stock
|
506,545
|
12,346
|
2.44
|
%
|
309,018
|
7,692
|
2.49
|
%
|
217,939
|
5,613
|
2.58
|
%
|
||||||||||||||||||||||||
Loans receivable
|
936,492
|
42,304
|
4.52
|
%
|
820,820
|
38,072
|
4.64
|
%
|
724,231
|
35,052
|
4.84
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
1,535,489
|
55,123
|
3.59
|
%
|
1,236,714
|
46,042
|
3.72
|
%
|
1,017,763
|
40,852
|
4.01
|
%
|
||||||||||||||||||||||||
Other assets
|
96,902
|
73,873
|
49,647
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,632,391
|
$
|
1,310,587
|
$
|
1,067,410
|
||||||||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand – non-interest bearing
|
$
|
284,326
|
$
|
235,810
|
$
|
189,810
|
||||||||||||||||||||||||||||||
Demand – interest bearing
|
510,745
|
2,088
|
0.41
|
%
|
349,055
|
1,401
|
0.40
|
%
|
233,693
|
888
|
0.38
|
%
|
||||||||||||||||||||||||
Money market & savings
|
586,750
|
2,639
|
0.45
|
%
|
508,846
|
2,170
|
0.43
|
%
|
439,484
|
1,929
|
0.44
|
%
|
||||||||||||||||||||||||
Time deposits
|
89,713
|
942
|
1.05
|
%
|
73,819
|
695
|
0.94
|
%
|
78,073
|
719
|
0.92
|
%
|
||||||||||||||||||||||||
Total deposits
|
1,471,534
|
5,669
|
0.39
|
%
|
1,167,530
|
4,266
|
0.37
|
%
|
941,060
|
3,536
|
0.38
|
%
|
||||||||||||||||||||||||
Total interest bearing deposits
|
1,187,208
|
5,669
|
0.48
|
%
|
931,720
|
4,266
|
0.46
|
%
|
751,250
|
3,536
|
0.47
|
%
|
||||||||||||||||||||||||
Other borrowings
|
27,471
|
1,194
|
4.35
|
%
|
22,008
|
1,115
|
5.07
|
%
|
21,875
|
1,108
|
5.07
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
1,214,679
|
6,863
|
0.57
|
%
|
953,728
|
5,381
|
0.56
|
%
|
773,125
|
4,644
|
0.60
|
%
|
||||||||||||||||||||||||
Total deposits and other borrowings
|
1,499,005
|
6,863
|
0.46
|
%
|
1,189,538
|
5,381
|
0.45
|
%
|
962,935
|
4,644
|
0.48
|
%
|
||||||||||||||||||||||||
Non-interest bearing other liabilities
|
8,867
|
7,340
|
7,084
|
|||||||||||||||||||||||||||||||||
Shareholders' equity
|
124,519
|
113,709
|
97,391
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,632,391
|
$
|
1,310,587
|
$
|
1,067,410
|
||||||||||||||||||||||||||||||
Net interest income
(2)
|
$
|
48,260
|
$
|
40,661
|
$
|
36,208
|
||||||||||||||||||||||||||||||
Net interest spread
|
3.02
|
%
|
3.16
|
%
|
3.41
|
%
|
||||||||||||||||||||||||||||||
Net interest margin
(2)
|
3.14
|
%
|
3.29
|
%
|
3.56
|
%
|
||||||||||||||||||||||||||||||
Year ended
December 31, 2016 vs. 2015
|
Year ended
December 31, 2015 vs. 2014
|
|||||||||||||||||||||||
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
|
$
|
(74
|
)
|
$
|
269
|
$
|
195
|
$
|
81
|
$
|
10
|
$
|
91
|
|||||||||||
Securities
|
4,814
|
(160
|
)
|
4,654
|
2,267
|
(188
|
)
|
2,079
|
||||||||||||||||
Loans
|
5,180
|
(948
|
)
|
4,232
|
4,448
|
(1,428
|
)
|
3,020
|
||||||||||||||||
Total interest-earning assets
|
9,920
|
(839
|
)
|
9,081
|
6,796
|
(1,606
|
)
|
5,190
|
||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
661
|
$
|
26
|
$
|
687
|
$
|
463
|
$
|
50
|
$
|
513
|
||||||||||||
Money market and savings
|
348
|
121
|
469
|
293
|
(52
|
)
|
241
|
|||||||||||||||||
Time deposits
|
167
|
80
|
247
|
(40
|
)
|
16
|
(24
|
)
|
||||||||||||||||
Total deposit interest expense
|
1,176
|
227
|
1,403
|
716
|
14
|
730
|
||||||||||||||||||
Other borrowings
|
33
|
46
|
79
|
-
|
7
|
7
|
||||||||||||||||||
Total interest expense
|
1,209
|
273
|
1,482
|
716
|
21
|
737
|
||||||||||||||||||
Net interest income
|
$
|
8,711
|
$
|
(1,112
|
)
|
$
|
7,599
|
$
|
6,080
|
$
|
(1,627
|
)
|
$
|
4,453
|
At December 31,
|
||||||||||||
(dollars in thousands)
|
2016
|
2015
|
2014
|
|||||||||
Available for sale
|
||||||||||||
Collateralized mortgage obligations
|
$
|
230,252
|
$
|
180,795
|
$
|
98,626
|
||||||
Agency mortgage-backed securities
|
37,973
|
10,073
|
13,271
|
|||||||||
Municipal securities
|
26,825
|
22,814
|
15,784
|
|||||||||
Corporate bonds
|
66,718
|
54,294
|
33,840
|
|||||||||
Asset-backed securities
|
15,565
|
17,631
|
18,353
|
|||||||||
Trust preferred securities
|
3,063
|
3,070
|
5,261
|
|||||||||
Other securities
|
-
|
115
|
115
|
|||||||||
Total amortized cost of securities
|
$
|
380,396
|
$
|
288,792
|
$
|
185,250
|
||||||
Total fair value of investment securities
|
$
|
369,739
|
$
|
284,795
|
$
|
185,379
|
||||||
Held to maturity
|
||||||||||||
U.S. Government agencies
|
$
|
98,538
|
$
|
17,067
|
$
|
1
|
||||||
Collateralized mortgage obligations
|
202,990
|
146,458
|
67,845
|
|||||||||
Agency mortgage-backed securities
|
129,951
|
7,732
|
-
|
|||||||||
Other securities
|
1,020
|
1,020
|
20
|
|||||||||
Total amortized cost of securities
|
$
|
432,499
|
$
|
172,277
|
$
|
67,866
|
||||||
Total fair value of investment securities
|
$
|
425,183
|
$
|
171,845
|
$
|
68,253
|
December 31, 2016
|
||||||||||||||||||||||||||||||||||||||||||||
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
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
224,765
|
$
|
230,252
|
2.09
|
%
|
||||||||||||||||||||||||||
Agency mortgage-backed securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
36,710
|
37,973
|
2.18
|
%
|
|||||||||||||||||||||||||||||||||
Municipal securities
|
1,002
|
4.17
|
%
|
4,453
|
2.55
|
%
|
18,748
|
2.86
|
%
|
2,344
|
2.54
|
%
|
26,547
|
26,825
|
2.83
|
%
|
||||||||||||||||||||||||||||
Corporate bonds
|
-
|
-
|
8,671
|
3.38
|
%
|
34,237
|
3.53
|
%
|
21,840
|
4.24
|
%
|
64,748
|
66,718
|
3.73
|
%
|
|||||||||||||||||||||||||||||
Asset-backed securities
|
-
|
-
|
6,367
|
1.90
|
%
|
8,782
|
2.58
|
%
|
-
|
-
|
15,149
|
15,565
|
2.29
|
%
|
||||||||||||||||||||||||||||||
Trust Preferred securities
|
-
|
-
|
-
|
-
|
1,820
|
3.29
|
%
|
-
|
-
|
1,820
|
3,063
|
3.29
|
%
|
|||||||||||||||||||||||||||||||
Total AFS securities
|
$
|
1,002
|
4.17
|
%
|
$
|
19,491
|
2.71
|
%
|
$
|
63,587
|
3.19
|
%
|
$
|
24,184
|
4.08
|
%
|
$
|
369,739
|
$
|
380,396
|
2.44
|
%
|
||||||||||||||||||||||
Held to Maturity
|
||||||||||||||||||||||||||||||||||||||||||||
U.S. Government Agencies
|
$
|
-
|
-
|
$
|
3,586
|
2.08
|
%
|
$
|
92,722
|
2.37
|
%
|
$
|
-
|
-
|
$
|
96,308
|
$
|
98,538
|
2.36
|
%
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
201,230
|
202,990
|
2.18
|
%
|
||||||||||||||||||||||||||||||||
Agency mortgage-backed securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
126,625
|
129,951
|
2.41
|
%
|
||||||||||||||||||||||||||||||||
Other securities
|
-
|
-
|
1,020
|
2.21
|
%
|
-
|
-
|
-
|
-
|
1,020
|
1,020
|
2.21
|
%
|
|||||||||||||||||||||||||||||||
Total HTM securities
|
$
|
-
|
-
|
$
|
4,606
|
2.11
|
%
|
$
|
92,722
|
2.37
|
%
|
$
|
-
|
-
|
$
|
425,183
|
$
|
432,499
|
2.29
|
%
|
Year Ended
December 31, 2016
|
Year Ended
December 31, 2015
|
Year Ended
December 31, 2014
|
||||||||||||||||||||||
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,
|
$
|
1,883
|
$
|
2,834
|
$
|
3,193
|
$
|
3,005
|
$
|
2,850
|
$
|
3,006
|
||||||||||||
Security transferred to Level 3 measurement
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Unrealized gains (losses)
|
(56
|
)
|
137
|
882
|
(171
|
)
|
360
|
(1
|
)
|
|||||||||||||||
Paydowns
|
-
|
-
|
(19
|
)
|
-
|
(10
|
)
|
-
|
||||||||||||||||
Proceeds from sales
|
-
|
-
|
(1,952
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Realized losses
|
-
|
-
|
(218
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Impairment charges on Level 3
|
(7
|
)
|
-
|
(3
|
)
|
-
|
(7
|
)
|
-
|
|||||||||||||||
Balance, December 31,
|
$
|
1,820
|
$
|
2,971
|
$
|
1,883
|
$
|
2,834
|
$
|
3,193
|
$
|
3,005
|
At December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Commercial real estate
|
$
|
378,519
|
$
|
349,726
|
$
|
379,259
|
$
|
342,794
|
$
|
335,561
|
||||||||||
Construction and land development
|
61,453
|
46,547
|
29,861
|
23,977
|
26,659
|
|||||||||||||||
Commercial and industrial
|
174,744
|
181,850
|
145,113
|
118,209
|
103,768
|
|||||||||||||||
Owner occupied real estate
|
276,986
|
246,398
|
188,025
|
160,229
|
126,242
|
|||||||||||||||
Consumer and other
|
63,660
|
48,126
|
39,713
|
31,981
|
23,449
|
|||||||||||||||
Residential mortgage
|
9,682
|
2,380
|
408
|
2,359
|
2,442
|
|||||||||||||||
Total loans
|
$
|
965,044
|
$
|
875,027
|
$
|
782,379
|
$
|
679,549
|
$
|
618,121
|
||||||||||
Deferred loan fees
|
72
|
258
|
439
|
238
|
220
|
|||||||||||||||
Total loans, net of deferred loan fees
|
$
|
964,972
|
$
|
874,769
|
$
|
781,940
|
$
|
679,311
|
$
|
617,901
|
(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
|
$
|
66,932
|
$
|
11,278
|
$
|
16,002
|
$
|
21,075
|
$
|
348
|
$
|
-
|
$
|
115,635
|
||||||||||||||
1-5 years
|
212,487
|
3,216
|
49,329
|
116,465
|
449
|
-
|
381,946
|
|||||||||||||||||||||
After 5 years
|
67,197
|
2,475
|
34,752
|
68,322
|
9,658
|
9,682
|
192,086
|
|||||||||||||||||||||
Total fixed rate
|
346,616
|
16,969
|
100,083
|
205,862
|
10,455
|
9,682
|
689,667
|
|||||||||||||||||||||
Adjustable rate:
|
||||||||||||||||||||||||||||
1 year or less
|
$
|
12,623
|
$
|
6,712
|
$
|
42,830
|
$
|
5,585
|
$
|
683
|
$
|
-
|
$
|
68,433
|
||||||||||||||
1-5 years
|
17,269
|
26,570
|
20,602
|
7,276
|
3,566
|
-
|
75,283
|
|||||||||||||||||||||
After 5 years
|
2,011
|
11,202
|
11,229
|
58,263
|
48,956
|
-
|
131,661
|
|||||||||||||||||||||
Total adjustable rate
|
31,903
|
44,484
|
74,661
|
71,124
|
53,205
|
-
|
275,377
|
|||||||||||||||||||||
Total
|
$
|
378,519
|
$
|
61,453
|
$
|
174,744
|
$
|
276,986
|
$
|
63,660
|
$
|
9,682
|
$
|
965,044
|
At December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Loans accruing, but past due 90 days or more
|
$
|
302
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
202
|
||||||||||
Non-accrual loans:
|
||||||||||||||||||||
Commercial real estate
|
13,089
|
5,913
|
13,979
|
1,104
|
7,987
|
|||||||||||||||
Construction and land development
|
-
|
117
|
377
|
1,618
|
1,342
|
|||||||||||||||
Commercial and industrial
|
3,151
|
3,156
|
4,349
|
6,837
|
4,693
|
|||||||||||||||
Owner occupied real estate
|
1,546
|
2,894
|
2,306
|
205
|
968
|
|||||||||||||||
Consumer and other
|
808
|
542
|
429
|
656
|
856
|
|||||||||||||||
Residential mortgage
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total non-accrual loans
|
18,594
|
12,622
|
21,440
|
10,420
|
15,846
|
|||||||||||||||
Total non-performing loans
(1)
|
18,896
|
12,622
|
21,440
|
10,420
|
16,048
|
|||||||||||||||
Other real estate owned
|
10,174
|
11,313
|
3,715
|
4,059
|
8,912
|
|||||||||||||||
Total non-performing assets
(1)
|
$
|
29,070
|
$
|
23,935
|
$
|
25,155
|
$
|
14,479
|
$
|
24,960
|
||||||||||
Non-performing loans as a percentage of
total loans, net of unearned income
(1)
|
1.96
|
%
|
1.44
|
%
|
2.74
|
%
|
1.53
|
%
|
2.60
|
%
|
||||||||||
Non-performing assets as a percentage of
total assets
|
1.51
|
%
|
1.66
|
%
|
2.07
|
%
|
1.51
|
%
|
2.52
|
%
|
For the Year Ended December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Interest income that would have been recorded had the loans been in accordance with their original terms
|
$
|
1,024
|
$
|
765
|
$
|
980
|
$
|
488
|
$
|
699
|
||||||||||
Interest income included in net income
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
For the Year Ended December 31,
|
||||||||||||||||||||
(dollars in thousands)
|
2016
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||
Balance at beginning of period
|
$
|
8,703
|
$
|
11,536
|
$
|
12,263
|
$
|
9,542
|
$
|
12,050
|
||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial real estate
|
-
|
2,624
|
364
|
1,291
|
1,582
|
|||||||||||||||
Construction and land development
|
60
|
260
|
303
|
60
|
1,004
|
|||||||||||||||
Commercial and industrial
|
143
|
408
|
1,185
|
611
|
1,304
|
|||||||||||||||
Owner occupied real estate
|
1,052
|
133
|
150
|
320
|
-
|
|||||||||||||||
Consumer and other
|
11
|
-
|
10
|
75
|
102
|
|||||||||||||||
Residential mortgage
|
10
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total charge-offs
|
1,276
|
3,425
|
2,012
|
2,357
|
3,992
|
|||||||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial real estate
|
6
|
4
|
5
|
54
|
-
|
|||||||||||||||
Construction and land development
|
-
|
5
|
214
|
-
|
105
|
|||||||||||||||
Commercial and industrial
|
163
|
49
|
166
|
63
|
-
|
|||||||||||||||
Owner occupied real estate
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Consumer and other
|
2
|
34
|
-
|
26
|
29
|
|||||||||||||||
Residential mortgage
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total recoveries
|
171
|
92
|
385
|
143
|
134
|
|||||||||||||||
Net charge-offs
|
1,105
|
3,333
|
1,627
|
2,214
|
3,858
|
|||||||||||||||
Provision for loan losses
|
1,557
|
500
|
900
|
4,935
|
1,350
|
|||||||||||||||
Balance at end of period
|
$
|
9,155
|
$
|
8,703
|
$
|
11,536
|
$
|
12,263
|
$
|
9,542
|
||||||||||
Average loans outstanding
(1)
|
$
|
936,492
|
$
|
820,820
|
$
|
724,231
|
$
|
640,233
|
$
|
609,943
|
As a percent of average loans:
(1)
|
||||||||||||||||||||
Net charge-offs
|
0.12
|
%
|
0.41
|
%
|
0.22
|
%
|
0.35
|
%
|
0.63
|
%
|
||||||||||
Provision for loan losses
|
0.17
|
%
|
0.06
|
%
|
0.12
|
%
|
0.77
|
%
|
0.22
|
%
|
||||||||||
Allowance for loan losses
|
0.98
|
%
|
1.06
|
%
|
1.59
|
%
|
1.92
|
%
|
1.56
|
%
|
||||||||||
Allowance for loan losses to:
|
||||||||||||||||||||
Total loans, net of unearned income
|
0.95
|
%
|
0.99
|
%
|
1.48
|
%
|
1.81
|
%
|
1.54
|
%
|
||||||||||
Total non-performing loans
|
48.45
|
%
|
68.95
|
%
|
53.81
|
%
|
117.69
|
%
|
59.46
|
%
|
At December 31,
|
||||||||||||||||||||||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||||||||||||||||||||||
(dollars in thousands
)
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
||||||||||||||||||||||||||||||
Commercial real estate
|
$
|
3,254
|
39.2
|
%
|
$
|
2,393
|
40.0
|
%
|
$
|
6,828
|
48.5
|
%
|
$
|
6,454
|
50.4
|
%
|
$
|
3,979
|
54.3
|
%
|
||||||||||||||||||||
Construction and land development
|
557
|
6.4
|
%
|
338
|
5.3
|
%
|
917
|
3.8
|
%
|
1,948
|
3.5
|
%
|
1,273
|
4.3
|
%
|
|||||||||||||||||||||||||
Commercial and industrial
|
2,884
|
18.1
|
%
|
2,932
|
20.8
|
%
|
1,579
|
18.5
|
%
|
2,309
|
17.4
|
%
|
1,880
|
16.8
|
%
|
|||||||||||||||||||||||||
Owner occupied real estate
|
1,382
|
28.7
|
%
|
2,030
|
28.1
|
%
|
1,638
|
24.0
|
%
|
985
|
23.6
|
%
|
1,967
|
20.4
|
%
|
|||||||||||||||||||||||||
Consumer and other
|
588
|
6.6
|
%
|
295
|
5.5
|
%
|
234
|
5.1
|
%
|
225
|
4.7
|
%
|
234
|
3.8
|
%
|
|||||||||||||||||||||||||
Residential mortgage
|
58
|
1.0
|
%
|
14
|
0.3
|
%
|
2
|
0.1
|
%
|
14
|
0.4
|
%
|
17
|
0.4
|
%
|
|||||||||||||||||||||||||
Unallocated
|
432
|
-
|
701
|
-
|
338
|
-
|
328
|
-
|
192
|
-
|
||||||||||||||||||||||||||||||
Total allowance for loan losses
|
$
|
9,155
|
100
|
%
|
$
|
8,703
|
100
|
%
|
$
|
11,536
|
100
|
%
|
$
|
12,263
|
100
|
%
|
$
|
9,542
|
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 our loan review system, and the degree of oversight by our
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,
|
|||||||||||
2016
|
2015
|
2014
|
||||||||||
Impaired loans without a valuation allowance
|
$
|
15,740
|
$
|
15,497
|
$
|
16,742
|
||||||
Impaired loans with a valuation allowance
|
12,430
|
6,632
|
18,902
|
|||||||||
Total impaired loans
|
$
|
28,170
|
$
|
22,129
|
$
|
35,644
|
||||||
Valuation allowance related to impaired loans
|
$
|
3,468
|
$
|
2,238
|
$
|
5,130
|
||||||
Total nonaccrual loans
|
18,594
|
12,622
|
21,440
|
|||||||||
Total loans past-due ninety days or more and
|
||||||||||||
still accruing
|
302
|
-
|
-
|
(dollars in thousands)
|
December 31,
|
|||||||||||
2016
|
2015
|
2014
|
||||||||||
30 to 59 days past due
|
$
|
1,060
|
$
|
2,878
|
$
|
1,681
|
||||||
60 to 89 days past due
|
31
|
9,315
|
14,062
|
|||||||||
Total loans 30 to 89 days past due
|
$
|
1,091
|
$
|
12,193
|
$
|
15,743
|
(dollars in thousands)
|
At December 31,
|
|||||||||||
2016
|
2015
|
2014
|
||||||||||
Demand deposits, non-interest bearing
|
$
|
324,912
|
$
|
243,695
|
$
|
224,245
|
||||||
Demand deposits, interest bearing
|
605,950
|
381,499
|
283,768
|
|||||||||
Money market & savings deposits
|
635,644
|
556,526
|
488,848
|
|||||||||
Time deposits
|
111,164
|
67,578
|
75,369
|
|||||||||
Total deposits
|
$
|
1,677,670
|
$
|
1,249,298
|
$
|
1,072,230
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||
2016
|
2015
|
2014
|
|||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Rate
|
Average
Balance
|
Rate
|
Average
Balance
|
Rate
|
|||||||||||||||||||
Demand deposits:
|
|||||||||||||||||||||||||
Non-interest bearing
|
$
|
284,326
|
$
|
235,810
|
$
|
189,810
|
|||||||||||||||||||
Interest bearing
|
510,745
|
0.41
|
%
|
349,055
|
0.40
|
%
|
233,693
|
0.38
|
%
|
||||||||||||||||
Money market & savings deposits
|
586,750
|
0.45
|
%
|
508,846
|
0.43
|
%
|
439,484
|
0.44
|
%
|
||||||||||||||||
Time deposits
|
89,713
|
1.05
|
%
|
73,819
|
0.94
|
%
|
78,073
|
0.92
|
%
|
||||||||||||||||
Total deposits
|
$
|
1,471,534
|
0.39
|
%
|
$
|
1,167,530
|
0.37
|
%
|
$
|
941,060
|
0.38
|
%
|
(dollars in thousands)
|
||||
Maturity:
|
||||
3 months or less
|
$
|
11,190
|
||
3 to 6 months
|
4,234
|
|||
6 to 12 months
|
22,788
|
|||
Over 12 months
|
36,131
|
|||
Total
|
$
|
74,343
|
(dollars in thousands)
|
||||
Maturity:
|
||||
2017
|
$
|
65,247
|
||
2018
|
21,554
|
|||
2019
|
1,605
|
|||
2020
|
21,793
|
|||
2021
|
965
|
|||
Thereafter
|
-
|
|||
Total
|
$
|
111,164
|
(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
|
$
|
30,500
|
$
|
3,581
|
$
|
6,755
|
$
|
5,281
|
$
|
14,883
|
||||||||||
Remaining contractual maturities of time deposits
|
111,552
|
65,635
|
23,159
|
22,758
|
-
|
|||||||||||||||
Subordinated debt
|
22,501
|
25
|
-
|
-
|
22,476
|
|||||||||||||||
Director and Officer retirement plan obligations
|
1,320
|
622
|
224
|
164
|
310
|
|||||||||||||||
Loan commitments
|
215,868
|
81,802
|
32,548
|
30,487
|
71,031
|
|||||||||||||||
Standby letters of credit
|
5,683
|
5,248
|
435
|
-
|
-
|
|||||||||||||||
Total
|
$
|
387,424
|
$
|
156,913
|
$
|
63,121
|
$
|
58,690
|
$
|
108,700
|
Interest Rate Sensitivity Gap
|
||||||||||||||||||||||||||||||||||||||||
As of December 31, 2016
|
||||||||||||||||||||||||||||||||||||||||
(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
|
$
|
36,283
|
$
|
22,397
|
$
|
42,061
|
$
|
78,557
|
$
|
69,877
|
$
|
65,169
|
$
|
57,035
|
$
|
446,949
|
$
|
818,328
|
$
|
811,012
|
||||||||||||||||||||
Average interest rate
|
2.36
|
%
|
2.46
|
%
|
2.42
|
%
|
2.43
|
%
|
2.45
|
%
|
2.39
|
%
|
2.57
|
%
|
2.71
|
%
|
2.59
|
%
|
||||||||||||||||||||||
Loans receivable
|
314,024
|
35,223
|
77,788
|
112,391
|
87,943
|
131,432
|
120,075
|
114,161
|
993,037
|
975,164
|
||||||||||||||||||||||||||||||
Average interest rate
|
5.07
|
%
|
4.23
|
%
|
3.34
|
%
|
4.32
|
%
|
4.25
|
%
|
4.13
|
%
|
4.19
|
%
|
3.64
|
%
|
4.35
|
%
|
||||||||||||||||||||||
Total
|
$
|
350,307
|
$
|
57,620
|
$
|
119,849
|
$
|
190,948
|
$
|
157,820
|
$
|
196,601
|
$
|
177,110
|
$
|
561,110
|
$
|
1,811,365
|
$
|
1,786,176
|
||||||||||||||||||||
Cumulative totals
|
$
|
350,307
|
$
|
407,927
|
$
|
527,776
|
$
|
718,724
|
$
|
876,544
|
$
|
1,073,145
|
$
|
1,250,255
|
$
|
1,811,365
|
||||||||||||||||||||||||
Interest sensitive liabilities:
|
||||||||||||||||||||||||||||||||||||||||
Demand interest bearing
(1)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
605,950
|
$
|
605,950
|
$
|
605,950
|
||||||||||||||||||||
Average interest rate
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.41
|
%
|
0.41
|
%
|
|||||||||||||||||||||||||||||
Savings accounts
(1)
|
278
|
278
|
556
|
302
|
91
|
30
|
-
|
182,789
|
184,324
|
184,324
|
||||||||||||||||||||||||||||||
Average interest rate
|
0.48
|
%
|
0.48
|
%
|
0.48
|
%
|
0.48
|
%
|
0.48
|
%
|
0.48
|
%
|
-
|
0.44
|
%
|
0.44
|
%
|
|||||||||||||||||||||||
Money market accounts
(1)
|
2,937
|
2,937
|
5,874
|
7,999
|
6,273
|
15,833
|
18,995
|
390,472
|
451,320
|
451,320
|
||||||||||||||||||||||||||||||
Average interest rate
|
0.43
|
%
|
0.43
|
%
|
0.43
|
%
|
0.43
|
%
|
0.43
|
%
|
0.41
|
%
|
0.40
|
%
|
0.40
|
%
|
0.40
|
%
|
||||||||||||||||||||||
Time deposits
|
54,979
|
8,570
|
28,500
|
15,429
|
1,605
|
1,116
|
965
|
-
|
111,164
|
110,988
|
||||||||||||||||||||||||||||||
Average interest rate
|
1.27
|
%
|
0.57
|
%
|
1.13
|
%
|
1.05
|
%
|
0.93
|
%
|
0.99
|
%
|
0.99
|
%
|
-
|
1.14
|
%
|
|||||||||||||||||||||||
Subordinated debt
|
11,246
|
-
|
-
|
-
|
-
|
-
|
-
|
10,635
|
21,881
|
16,286
|
||||||||||||||||||||||||||||||
Average interest rate
|
2.58
|
%
|
-
|
-
|
-
|
-
|
-
|
-
|
8.00
|
%
|
5.21
|
%
|
||||||||||||||||||||||||||||
Total
|
$
|
69,440
|
$
|
11,785
|
$
|
34,930
|
$
|
23,730
|
$
|
7,969
|
$
|
16,979
|
$
|
19,960
|
$
|
1,189,846
|
$
|
1,374,639
|
$
|
1,368,868
|
||||||||||||||||||||
Cumulative totals
|
$
|
69,440
|
$
|
81,225
|
$
|
116,155
|
$
|
139,885
|
$
|
147,854
|
$
|
164,833
|
$
|
184,793
|
$
|
1,374,639
|
||||||||||||||||||||||||
Interest rate sensitivity GAP
|
$
|
280,867
|
$
|
45,835
|
$
|
84,919
|
$
|
167,218
|
$
|
149,851
|
$
|
179,622
|
$
|
157,150
|
$
|
(628,736
|
)
|
|||||||||||||||||||||||
Cumulative GAP
|
$
|
280,867
|
$
|
326,702
|
$
|
411,621
|
$
|
578,839
|
$
|
728,690
|
$
|
908,312
|
$
|
1,065,462
|
$
|
436,726
|
||||||||||||||||||||||||
Interest sensitive assets/Interest sensitive liabilities
|
504.47
|
%
|
502.22
|
%
|
454.37
|
%
|
513.80
|
%
|
592.84
|
%
|
651.05
|
%
|
676.57
|
%
|
131.77
|
%
|
||||||||||||||||||||||||
Cumulative GAP/ Total earning assets
|
15.51
|
%
|
18.04
|
%
|
22.72
|
%
|
31.96
|
%
|
40.23
|
%
|
50.15
|
%
|
58.82
|
%
|
24.11
|
%
|
Change in
Interest Rates in
Basis Points
(1)
|
Net Interest
Income
|
$
Change
|
%
Change
|
|||||||||
+400
|
$
|
67,295
|
5,323
|
8.59
|
%
|
|||||||
+300
|
66,013
|
4,041
|
6.52
|
%
|
||||||||
+200
|
64,701
|
2,729
|
4.40
|
%
|
||||||||
+100
|
63,323
|
1,351
|
2.18
|
%
|
||||||||
Static
|
61,972
|
-
|
0.00
|
%
|
||||||||
-100
|
61,171
|
(801
|
)
|
(1.29
|
)%
|
|||||||
(dollars in thousands)
|
Actual
|
Minimum Capital
Adequacy
|
Minimum Capital
Adequacy with
Capital Buffer
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||||
At December 31, 2016:
|
|||||||||||||||||||||||||||||||||
Total risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
$
|
179,057
|
13.93
|
%
|
$
|
102,811
|
8.00
|
%
|
$
|
110,843
|
8.625
|
%
|
$
|
128,514
|
10.00
|
%
|
|||||||||||||||||
Company
|
245,043
|
18.99
|
%
|
103,226
|
8.00
|
%
|
111,290
|
8.625
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
169,902
|
13.22
|
%
|
77,108
|
6.00
|
%
|
85,140
|
6.625
|
%
|
102,811
|
8.00
|
%
|
|||||||||||||||||||||
Company
|
235,888
|
18.28
|
%
|
77,419
|
6.00
|
%
|
85,484
|
6.625
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
CET 1 risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
169,902
|
13.22
|
%
|
57,831
|
4.50
|
%
|
65,863
|
5.125
|
%
|
83,534
|
6.50
|
%
|
|||||||||||||||||||||
Company
|
214,088
|
16.59
|
%
|
58,064
|
4.50
|
%
|
66,129
|
5.125
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one leveraged capital
|
|||||||||||||||||||||||||||||||||
Republic
|
169,902
|
9.20
|
%
|
73,843
|
4.00
|
%
|
73,843
|
4.00
|
%
|
92,304
|
5.00
|
%
|
|||||||||||||||||||||
Company
|
235,888
|
12.74
|
%
|
74,073
|
4.00
|
%
|
74,073
|
4.00
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
At December 31, 2015:
|
|||||||||||||||||||||||||||||||||
Total risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
$
|
138,566
|
12.65
|
%
|
$
|
87,617
|
8.00
|
%
|
$
|
-
|
-
|
%
|
$
|
109,521
|
10.00
|
%
|
|||||||||||||||||
Company
|
145,089
|
13.19
|
%
|
87,976
|
8.00
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
129,863
|
11.86
|
%
|
65,712
|
6.00
|
%
|
-
|
-
|
%
|
87,617
|
8.00
|
%
|
|||||||||||||||||||||
Company
|
136,386
|
12.40
|
%
|
65,982
|
6.00
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
CET 1 risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
129,863
|
11.86
|
%
|
49,284
|
4.50
|
%
|
-
|
-
|
%
|
71,189
|
6.50
|
%
|
|||||||||||||||||||||
Company
|
114,586
|
10.42
|
%
|
49,487
|
4.50
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one leveraged capital
|
|||||||||||||||||||||||||||||||||
Republic
|
129,863
|
9.22
|
%
|
56,328
|
4.00
|
%
|
-
|
-
|
%
|
70,410
|
5.00
|
%
|
|||||||||||||||||||||
Company
|
136,386
|
9.65
|
%
|
56,531
|
4.00
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
Tel: 717-233-8800
Fax: 717-233-8801
www.bdo.com
|
945 E. Park Drive, Suite 103
Harrisburg, PA 17111
|
December 31, 2016
|
December 31, 2015
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
19,830
|
$
|
13,777
|
||||
Interest bearing deposits with banks
|
14,724
|
13,362
|
||||||
Cash and cash equivalents
|
34,554
|
27,139
|
||||||
|
||||||||
Investment securities available for sale, at fair value
|
369,739
|
284,795
|
||||||
Investment securities held to maturity, at amortized cost (fair value of $425,183 and $171,845, respectively)
|
432,499
|
172,277
|
||||||
Restricted stock, at cost
|
1,366
|
3,059
|
||||||
Loans held for sale
|
28,065
|
3,653
|
||||||
Loans receivable (net of allowance for loan losses of $9,155 and $8,703, respectively)
|
955,817
|
866,066
|
||||||
Premises and equipment, net
|
57,040
|
46,164
|
||||||
Other real estate owned, net
|
10,174
|
11,313
|
||||||
Accrued interest receivable
|
5,497
|
4,216
|
||||||
Goodwill
|
5,011
|
-
|
||||||
Intangible asset
|
61
|
-
|
||||||
Other assets
|
24,108
|
20,142
|
||||||
Total Assets
|
$
|
1,923,931
|
$
|
1,438,824
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Demand – non-interest bearing
|
$
|
324,912
|
$
|
243,695
|
||||
Demand – interest bearing
|
605,950
|
381,499
|
||||||
Money market and savings
|
635,644
|
556,526
|
||||||
Time deposits
|
111,164
|
67,578
|
||||||
Total Deposits
|
1,677,670
|
1,249,298
|
||||||
Short-term borrowings
|
-
|
47,000
|
||||||
Accrued interest payable
|
444
|
245
|
||||||
Other liabilities
|
8,883
|
7,049
|
||||||
Subordinated debt
|
21,881
|
21,857
|
||||||
Total Liabilities
|
1,708,878
|
1,325,449
|
||||||
Shareholders' Equity
|
||||||||
Preferred stock, par value $0.01 per share: 10,000,000 shares authorized; no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, par value $0.01 per share: 100,000,000 shares authorized; shares issued 57,283,712 as of December 31, 2016 and 38,365,848 as of December 31, 2015; shares outstanding 56,754,867 as of December 31, 2016 and 37,837,003 as of December 31, 2015
|
573
|
384
|
||||||
Additional paid in capital
|
253,570
|
152,897
|
||||||
Accumulated deficit
|
(27,888
|
)
|
(32,833
|
)
|
||||
Treasury stock at cost (503,408 shares as of December 31, 2016 and December 31, 2015)
|
(3,725
|
)
|
(3,725
|
)
|
||||
Stock held by deferred compensation plan (25,437 shares as of December 31, 2016 and December 31, 2015)
|
(183
|
)
|
(183
|
)
|
||||
Accumulated other comprehensive loss
|
(7,294
|
)
|
(3,165
|
)
|
||||
Total Shareholders' Equity
|
215,053
|
113,375
|
||||||
Total Liabilities and Shareholders' Equity
|
1,923,931
|
$
|
1,438,824
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Interest income
|
||||||||||||
Interest and fees on taxable loans
|
$
|
40,827
|
$
|
37,241
|
$
|
34,530
|
||||||
Interest and fees on tax-exempt loans
|
960
|
540
|
339
|
|||||||||
Interest and dividends on taxable investment securities
|
11,264
|
6,792
|
5,053
|
|||||||||
Interest and dividends on tax-exempt investment securities
|
703
|
585
|
364
|
|||||||||
Interest on federal funds sold and other interest-earning assets
|
473
|
278
|
187
|
|||||||||
Total interest income
|
54,227
|
45,436
|
40,473
|
|||||||||
Interest expense
|
||||||||||||
Demand- interest bearing
|
2,088
|
1,401
|
888
|
|||||||||
Money market and savings
|
2,639
|
2,170
|
1,929
|
|||||||||
Time deposits
|
942
|
695
|
719
|
|||||||||
Other borrowings
|
1,194
|
1,115
|
1,108
|
|||||||||
Total interest expense
|
6,863
|
5,381
|
4,644
|
|||||||||
Net interest income
|
47,364
|
40,055
|
35,829
|
|||||||||
Provision for loan losses
|
1,557
|
500
|
900
|
|||||||||
Net interest income after provision for loan losses
|
45,807
|
39,555
|
34,929
|
|||||||||
Non-interest income
|
||||||||||||
Loan advisory and servicing fees
|
1,627
|
2,226
|
1,452
|
|||||||||
Mortgage banking income
|
5,062
|
-
|
-
|
|||||||||
Gain on sales of SBA loans
|
4,981
|
3,139
|
4,717
|
|||||||||
Service fees on deposit accounts
|
2,658
|
1,720
|
1,224
|
|||||||||
Legal settlements
|
-
|
2,550
|
-
|
|||||||||
Gain on sale of investment securities
|
656
|
108
|
458
|
|||||||||
Net securities impairment losses recognized in earnings
|
(7
|
)
|
(3
|
)
|
(7
|
)
|
||||||
Other non-interest income
|
335
|
203
|
173
|
|||||||||
Total non-interest income
|
15,312
|
9,943
|
8,017
|
|||||||||
Non-interest expenses
|
||||||||||||
Salaries and employee benefits
|
28,602
|
22,488
|
20,089
|
|||||||||
Occupancy
|
6,109
|
4,929
|
4,247
|
|||||||||
Depreciation and amortization
|
3,518
|
3,080
|
2,382
|
|||||||||
Legal
|
459
|
915
|
1,290
|
|||||||||
Other real estate owned
|
2,182
|
4,239
|
1,794
|
|||||||||
Advertising
|
811
|
627
|
597
|
|||||||||
Data processing
|
2,408
|
1,593
|
1,345
|
|||||||||
Insurance
|
962
|
720
|
586
|
|||||||||
Professional fees
|
1,580
|
1,268
|
1,468
|
|||||||||
Regulatory assessments and costs
|
1,413
|
1,248
|
1,065
|
|||||||||
Taxes, other
|
366
|
689
|
616
|
|||||||||
Other operating expenses
|
7,883
|
5,295
|
5,071
|
|||||||||
Total non-interest expense
|
56,293
|
47,091
|
40,550
|
|||||||||
Income before benefit for income taxes
|
4,826
|
2,407
|
2,396
|
|||||||||
Benefit for income taxes
|
(119
|
)
|
(26
|
)
|
(46
|
)
|
||||||
Net income
|
$
|
4,945
|
$
|
2,433
|
$
|
2,442
|
||||||
Net income per share
|
||||||||||||
Basic
|
$
|
0.13
|
$
|
0.06
|
$
|
0.07
|
||||||
Diluted
|
$
|
0.12
|
$
|
0.06
|
$
|
0.07
|
Years Ended December 31,
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Net income
|
$
|
4,945
|
$
|
2,433
|
$
|
2,442
|
||||||
Other comprehensive income (loss), net of tax
|
||||||||||||
Unrealized gain (loss) on securities (pre-tax $(6,011), $(4,021) and $4,992, respectively)
|
(3,853
|
)
|
(2,577
|
)
|
3,199
|
|||||||
Reclassification adjustment for securities gains (pre-tax $(656), $(108) and $(458), respectively)
|
(420
|
)
|
(69
|
)
|
(293
|
)
|
||||||
Reclassification adjustment for impairment charge (pre-tax $7, $3 and $7, respectively)
|
4
|
2
|
4
|
|||||||||
Net unrealized gains (losses) on securities
|
(4,269
|
)
|
(2,644
|
)
|
2,910
|
|||||||
Net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity (pre-tax $-, $- and $(1,233), respectively)
|
-
|
-
|
(790
|
)
|
||||||||
Amortization of net unrealized holding
losses during the period (pre-tax $219, $173 and $118, respectively)
|
140
|
111
|
76
|
|||||||||
Total other comprehensive income (loss)
|
(4,129
|
)
|
(2,533
|
)
|
2,196
|
|||||||
Total comprehensive income (loss)
|
$
|
816
|
$
|
(100
|
)
|
$
|
4,638
|
|||||
2016
|
2015
|
2014
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
4,945
|
$
|
2,433
|
$
|
2,442
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision for loan losses
|
1,557
|
500
|
900
|
|||||||||
Loss on sale of other real estate owned
|
-
|
-
|
9
|
|||||||||
Write down of other real estate owned
|
355
|
3,069
|
1,138
|
|||||||||
Depreciation and amortization
|
3,518
|
3,080
|
2,382
|
|||||||||
Deferred income taxes
|
(380
|
)
|
(84
|
)
|
(142
|
)
|
||||||
Stock based compensation
|
759
|
600
|
420
|
|||||||||
Gain on sale of investment securities
|
(656
|
)
|
(108
|
)
|
(458
|
)
|
||||||
Impairment charges on investment securities
|
7
|
3
|
7
|
|||||||||
Amortization of premiums on investment securities
|
1,980
|
840
|
540
|
|||||||||
Accretion of discounts on retained SBA loans
|
(1,364
|
)
|
(1,005
|
)
|
(899
|
)
|
||||||
Fair value adjustments on SBA servicing assets
|
1,075
|
14
|
655
|
|||||||||
Proceeds from sales of SBA loans originated for sale
|
58,107
|
32,922
|
51,388
|
|||||||||
SBA loans originated for sale
|
(53,627
|
)
|
(31,760
|
)
|
(43,416
|
)
|
||||||
Gains on sales of SBA loans originated for sale
|
(4,981
|
)
|
(3,139
|
)
|
(4,717
|
)
|
||||||
Proceeds from sales of mortgage loans originated for sale
|
163,414
|
-
|
-
|
|||||||||
Mortgage loans originated for sale
|
(161,717
|
)
|
-
|
-
|
||||||||
Gains on mortgage loans originated for sale
|
(4,737
|
)
|
-
|
-
|
||||||||
Amortization of intangible assets
|
43
|
-
|
-
|
|||||||||
Amortization of debt issuance costs
|
24
|
24
|
24
|
|||||||||
Increase in accrued interest receivable and other assets
|
(1,993
|
)
|
(2,966
|
)
|
(1,796
|
)
|
||||||
Net (decrease) increase in accrued interest payable and other liabilities
|
(1,040
|
)
|
213
|
325
|
||||||||
Net cash provided by operating activities
|
5,289
|
4,636
|
8,802
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Purchase of investment securities available for sale
|
(207,482
|
)
|
(146,668
|
)
|
(78,825
|
)
|
||||||
Purchase of investment securities held to maturity
|
(294,187
|
)
|
(121,402
|
)
|
-
|
|||||||
Proceeds from the sale of securities available for sale
|
78,585
|
11,707
|
5,700
|
|||||||||
Proceeds from the paydowns, maturity or call of securities available for sale
|
36,982
|
31,159
|
25,822
|
|||||||||
Proceeds from the paydowns, maturity or call of securities held to maturity
|
33,160
|
16,689
|
2,308
|
|||||||||
Net redemption (purchase) of restricted stock
|
1,693
|
(1,902
|
)
|
413
|
||||||||
Net increase in loans
|
(89,428
|
)
|
(106,616
|
)
|
(104,357
|
)
|
||||||
Net proceeds from sale of other real estate owned
|
1,400
|
792
|
197
|
|||||||||
Net cash paid in acquisition
|
(5,913
|
)
|
-
|
-
|
||||||||
Premises and equipment expenditures
|
(14,291
|
)
|
(14,214
|
)
|
(14,664
|
)
|
||||||
Net cash used in investing activities
|
(459,481
|
)
|
(330,455
|
)
|
(163,406
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Net proceeds from stock offering
|
99,175
|
-
|
44,853
|
|||||||||
Net proceeds from exercise of stock options
|
726
|
64
|
1
|
|||||||||
Net increase in demand, money market and savings deposits
|
384,786
|
184,859
|
206,163
|
|||||||||
Net increase (decrease) in time deposits
|
43,586
|
(7,791
|
)
|
(3,467
|
)
|
|||||||
(Repayment) increase in short-term borrowings
|
(66,666
|
)
|
47,000
|
-
|
||||||||
Net cash provided by financing activities
|
461,607
|
224,132
|
247,550
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
7,415
|
(101,687
|
)
|
92,946
|
||||||||
Cash and cash equivalents, beginning of year
|
27,139
|
128,826
|
35,880
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
34,554
|
$
|
27,139
|
$
|
128,826
|
||||||
Supplemental disclosures
|
||||||||||||
Interest paid
|
$
|
6,664
|
$
|
5,401
|
$
|
4,616
|
||||||
Income taxes paid
|
$
|
190
|
$
|
-
|
$
|
70
|
||||||
Non-cash transfers from loans to other real estate owned
|
$
|
616
|
$
|
11,459
|
$
|
1,000
|
||||||
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 Loss
|
Total Shareholders' Equity
|
||||||||||||||||||||||
Balance January 1, 2014
|
$
|
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 of $147
|
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
|
|||||||||||||||||
Net income
|
2,433
|
2,433
|
||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(2,533
|
)
|
(2,533
|
)
|
||||||||||||||||||||||||
Stock based compensation
|
600
|
600
|
||||||||||||||||||||||||||
Options exercised (21,500 shares)
|
1
|
63
|
64
|
|||||||||||||||||||||||||
Balance December 31, 2015
|
384
|
152,897
|
(32,833
|
)
|
(3,725
|
)
|
(183
|
)
|
(3,165
|
)
|
113,375
|
|||||||||||||||||
Net income
|
4,945
|
4,945
|
||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(4,129
|
)
|
(4,129
|
)
|
||||||||||||||||||||||||
Proceeds from shares issued under common stock offering (18,691,589 shares) net of offering costs of $825
|
187
|
98,988
|
99,175
|
|||||||||||||||||||||||||
Stock based compensation
|
759
|
759
|
||||||||||||||||||||||||||
Stock options issued in acquisition
|
202
|
202
|
||||||||||||||||||||||||||
Options exercised (226,275 shares)
|
2
|
724
|
726
|
|||||||||||||||||||||||||
Balance December 31, 2016
|
$
|
573
|
$
|
253,570
|
$
|
(27,888
|
)
|
$
|
(3,725
|
)
|
$
|
(183
|
)
|
$
|
(7,294
|
)
|
$
|
215,053
|
||||||||||
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)
|
2016
|
2015
|
2014
|
|||||||||
Net income - basic and diluted
|
$
|
4,945
|
$
|
2,433
|
$
|
2,442
|
||||||
Weighted average shares outstanding
|
39,281
|
37,818
|
34,232
|
|||||||||
Net income per share – basic
|
$
|
0.13
|
$
|
0.06
|
$
|
0.07
|
||||||
Weighted average shares outstanding (including dilutive CSEs)
|
39,865
|
38,094
|
34,591
|
|||||||||
Net income per share – diluted
|
$
|
0.12
|
$
|
0.06
|
$
|
0.07
|
(in thousands)
|
2016
|
2015
|
2014
|
|||||||||
Anti-dilutive securities
|
||||||||||||
Share based compensation awards
|
1,747
|
1,671
|
1,136
|
|||||||||
Convertible securities
|
1,662
|
1,662
|
1,662
|
|||||||||
Total anti-dilutive securities
|
3,409
|
3,333
|
2,798
|
3. |
Investment Securities
|
At December 31, 2016
|
||||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Collateralized mortgage obligations
|
$
|
230,252
|
$
|
145
|
$
|
(5,632
|
)
|
$
|
224,765
|
|||||||
Agency mortgage-backed securities
|
37,973
|
32
|
(1,295
|
)
|
36,710
|
|||||||||||
Municipal securities
|
26,825
|
151
|
(429
|
)
|
26,547
|
|||||||||||
Corporate bonds
|
66,718
|
8
|
(1,978
|
)
|
64,748
|
|||||||||||
Asset-backed securities
|
15,565
|
-
|
(416
|
)
|
15,149
|
|||||||||||
Trust preferred securities
|
3,063
|
-
|
(1,243
|
)
|
1,820
|
|||||||||||
Total securities available for sale
|
$
|
380,396
|
$
|
336
|
$
|
(10,993
|
)
|
$
|
369,739
|
|||||||
U.S. Government agencies
|
$
|
98,538
|
$
|
8
|
$
|
(2,238
|
)
|
$
|
96,308
|
|||||||
Collateralized mortgage obligations
|
202,990
|
793
|
(2,553
|
)
|
201,230
|
|||||||||||
Agency mortgage-backed securities
|
129,951
|
1
|
(3,327
|
)
|
126,625
|
|||||||||||
Other securities
|
1,020
|
-
|
-
|
1,020
|
||||||||||||
Total securities held to maturity
|
$
|
432,499
|
$
|
802
|
$
|
(8,118
|
)
|
$
|
425,183
|
At December 31, 2015
|
||||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Collateralized mortgage obligations
|
$
|
180,795
|
$
|
523
|
$
|
(3,173
|
)
|
$
|
178,145
|
|||||||
Agency mortgage-backed securities
|
10,073
|
176
|
(78
|
)
|
10,171
|
|||||||||||
Municipal securities
|
22,814
|
562
|
(32
|
)
|
23,344
|
|||||||||||
Corporate bonds
|
54,294
|
135
|
(300
|
)
|
54,129
|
|||||||||||
Asset-backed securities
|
17,631
|
-
|
(626
|
)
|
17,005
|
|||||||||||
Trust preferred securities
|
3,070
|
-
|
(1,187
|
)
|
1,883
|
|||||||||||
Other securities
|
115
|
3
|
-
|
118
|
||||||||||||
Total securities available for sale
|
$
|
288,792
|
$
|
1,399
|
$
|
(5,396
|
)
|
$
|
284,795
|
|||||||
U.S. Government agencies
|
$
|
17,067
|
$
|
39
|
$
|
(72
|
)
|
$
|
17,034
|
|||||||
Collateralized mortgage obligations
|
146,458
|
402
|
(780
|
)
|
146,080
|
|||||||||||
Agency mortgage-backed securities
|
7,732
|
-
|
(21
|
)
|
7,711
|
|||||||||||
Other securities
|
1,020
|
-
|
-
|
1,020
|
||||||||||||
Total securities held to maturity
|
$
|
172,277
|
$
|
441
|
$
|
(873
|
)
|
$
|
171,845
|
Available for Sale
|
Held to Maturity
|
|||||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||
Due in 1 year or less
|
$
|
1,000
|
$
|
1,002
|
$
|
-
|
$
|
-
|
||||||||
After 1 year to 5 years
|
19,693
|
19,491
|
4,646
|
4,606
|
||||||||||||
After 5 years to 10 years
|
66,007
|
63,587
|
94,912
|
92,722
|
||||||||||||
After 10 years
|
25,471
|
24,184
|
-
|
-
|
||||||||||||
Collateralized mortgage obligations
|
230,252
|
224,765
|
202,990
|
201,230
|
||||||||||||
Agency mortgage-backed securities
|
37,973
|
36,710
|
129,951
|
126,625
|
||||||||||||
Total
|
$
|
380,396
|
$
|
369,739
|
$
|
432,499
|
$
|
425,183
|
(dollars in thousands)
|
2016
|
2015
|
2014
|
|||||||||
Beginning Balance, January 1
st
|
$
|
930
|
$
|
3,966
|
$
|
3,959
|
||||||
Additional credit-related impairment loss on securities for which an
|
||||||||||||
other-than-temporary impairment was previously recognized
|
7
|
3
|
7
|
|||||||||
Reductions for securities sold during the period
|
-
|
(3,039
|
)
|
-
|
||||||||
Ending Balance, December 31
st
|
$
|
937
|
$
|
930
|
$
|
3,966
|
At December 31, 2016
|
||||||||||||||||||||||||
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
|
$
|
192,308
|
$
|
5,380
|
$
|
7,579
|
$
|
252
|
$
|
199,887
|
$
|
5,632
|
||||||||||||
Agency mortgage-backed securities
|
29,916
|
1,260
|
3,199
|
35
|
33,115
|
1,295
|
||||||||||||||||||
Municipal securities
|
15,414
|
429
|
-
|
-
|
15,414
|
429
|
||||||||||||||||||
Corporate bonds
|
32,257
|
1,708
|
10,726
|
270
|
42,983
|
1,978
|
||||||||||||||||||
Asset backed securities
|
-
|
-
|
15,149
|
416
|
15,149
|
416
|
||||||||||||||||||
Trust preferred securities
|
-
|
-
|
1,820
|
1,243
|
1,820
|
1,243
|
||||||||||||||||||
Total Available for Sale
|
$
|
269,895
|
$
|
8,777
|
$
|
38,473
|
$
|
2,216
|
$
|
308,368
|
$
|
10,993
|
At December 31, 2016
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
||||||||||||||||||
U.S. Government agencies
|
$
|
67,725
|
$
|
2,198
|
$
|
3,586
|
$
|
40
|
$
|
71,311
|
$
|
2,238
|
||||||||||||
Collateralized mortgage obligations
|
108,974
|
2,469
|
8,572
|
84
|
117,546
|
2,553
|
||||||||||||||||||
Agency mortgage-backed securities
|
97,725
|
3,327
|
-
|
-
|
97,725
|
3,327
|
||||||||||||||||||
Total Held to Maturity
|
$
|
274,424
|
$
|
7,994
|
$
|
12,158
|
$
|
124
|
$
|
286,582
|
$
|
8,118
|
At December 31, 2015
|
||||||||||||||||||||||||
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
|
$
|
116,161
|
$
|
3,173
|
$
|
-
|
$
|
-
|
$
|
116,161
|
$
|
3,173
|
||||||||||||
Agency mortgage-backed securities
|
2,389
|
14
|
5,502
|
64
|
7,891
|
78
|
||||||||||||||||||
Municipal securities
|
886
|
15
|
1,814
|
17
|
2,700
|
32
|
||||||||||||||||||
Corporate bonds
|
9,583
|
258
|
2,952
|
42
|
12,535
|
300
|
||||||||||||||||||
Asset backed securities
|
17,005
|
626
|
-
|
-
|
17,005
|
626
|
||||||||||||||||||
Trust preferred securities
|
-
|
-
|
1,883
|
1,187
|
1,883
|
1,187
|
||||||||||||||||||
Total Available for Sale
|
$
|
146,024
|
$
|
4,086
|
$
|
12,151
|
$
|
1,310
|
$
|
158,175
|
$
|
5,396
|
At December 31, 2015
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
Fair
Value
|
Unrealized Losses
|
||||||||||||||||||
U.S. Government agencies
|
$
|
11,954
|
$
|
72
|
$
|
-
|
$
|
-
|
$
|
11,954
|
$
|
72
|
||||||||||||
Collateralized mortgage obligations
|
68,888
|
732
|
15,956
|
48
|
84,844
|
780
|
||||||||||||||||||
Agency mortgage-backed securities
|
7,711
|
21
|
-
|
-
|
7,711
|
21
|
||||||||||||||||||
Total Held to Maturity
|
$
|
88,553
|
$
|
825
|
$
|
15,956
|
$
|
48
|
$
|
104,509
|
$
|
873
|
(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 2017 and beyond |
Cumulative OTTI Life to Date
|
|||||||||||||||||||||||||
TPREF Funding II
|
Class B Notes
|
$
|
725
|
$
|
402
|
$
|
(323
|
)
|
C |
|
19
|
37%
|
|
0.41%
|
|
$
|
274
|
|||||||||||||||||
TPREF Funding III
|
Class B2 Notes
|
1,518
|
889
|
(629
|
)
|
C
|
|
15
|
32
|
0.44
|
483
|
|||||||||||||||||||||||
ALESCO Preferred Funding V
|
Class C1 Notes
|
820
|
529
|
(291
|
)
|
C |
|
41
|
14
|
0.40
|
180
|
|||||||||||||||||||||||
Total
|
$
|
3,063
|
$
|
1,820
|
$
|
(1,243
|
)
|
75
|
28%
|
|
$
|
937
|
4. |
Loans Receivable
|
(dollars in thousands)
|
December 31, 2016
|
December 31, 2015
|
||||||
Commercial real estate
|
$
|
378,519
|
$
|
349,726
|
||||
Construction and land development
|
61,453
|
46,547
|
||||||
Commercial and industrial
|
174,744
|
181,850
|
||||||
Owner occupied real estate
|
276,986
|
246,398
|
||||||
Consumer and other
|
63,660
|
48,126
|
||||||
Residential mortgage
|
9,682
|
2,380
|
||||||
Total loans receivable
|
965,044
|
875,027
|
||||||
Deferred costs (fees)
|
(72
|
)
|
(258
|
)
|
||||
Allowance for loan losses
|
(9,155
|
)
|
(8,703
|
)
|
||||
Net loans receivable
|
$
|
955,817
|
$
|
866,066
|
(dollars in thousands)
|
December 31,
2016
|
December 31,
2015
|
December 31,
2014
|
|||||||||
Balance at beginning of year
|
$
|
8,521
|
$
|
8,753
|
$
|
8,762
|
||||||
Additions
|
-
|
295
|
500
|
|||||||||
Repayments
|
(659
|
)
|
(527
|
)
|
(509
|
)
|
||||||
Balance at end of year
|
$
|
7,862
|
$
|
8,521
|
$
|
8,753
|
(dollars in thousands)
|
Commercial Real Estate
|
Construction and Land Development
|
Commercial
and
Industrial
|
Owner Occupied Real Estate
|
Consumer
and Other
|
Residential Mortgage
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Year ended December, 2016
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning balance:
|
$
|
2,393
|
$
|
338
|
$
|
2,932
|
$
|
2,030
|
$
|
295
|
$
|
14
|
$
|
701
|
$
|
8,703
|
||||||||||||||||
Charge-offs
|
-
|
(60
|
)
|
(143
|
)
|
(1,052
|
)
|
(11
|
)
|
(10
|
)
|
-
|
(1,276
|
)
|
||||||||||||||||||
Recoveries
|
6
|
-
|
163
|
-
|
2
|
-
|
-
|
171
|
||||||||||||||||||||||||
Provisions (credits)
|
855
|
279
|
(68
|
)
|
404
|
302
|
54
|
(269
|
)
|
1,557
|
||||||||||||||||||||||
Ending balance
|
$
|
3,254
|
$
|
557
|
$
|
2,884
|
$
|
1,382
|
$
|
588
|
$
|
58
|
$
|
432
|
$
|
9,155
|
||||||||||||||||
Year ended December, 2015
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning Balance:
|
$
|
6,828
|
$
|
917
|
$
|
1,579
|
$
|
1,638
|
$
|
234
|
$
|
2
|
$
|
338
|
$
|
11,536
|
||||||||||||||||
Charge-offs
|
(2,624
|
)
|
(260
|
)
|
(408
|
)
|
(133
|
)
|
-
|
-
|
-
|
(3,425
|
)
|
|||||||||||||||||||
Recoveries
|
4
|
5
|
49
|
-
|
34
|
-
|
-
|
92
|
||||||||||||||||||||||||
Provisions (credits)
|
(1,815
|
)
|
(324
|
)
|
1,712
|
525
|
27
|
12
|
363
|
500
|
||||||||||||||||||||||
Ending balance
|
$
|
2,393
|
$
|
338
|
$
|
2,932
|
$
|
2,030
|
$
|
295
|
$
|
14
|
$
|
701
|
$
|
8,703
|
||||||||||||||||
Year ended December, 2014
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Beginning Balance:
|
$
|
6,454
|
$
|
1,948
|
$
|
2,309
|
$
|
985
|
$
|
225
|
$
|
14
|
$
|
328
|
$
|
12,263
|
||||||||||||||||
Charge-offs
|
(364
|
)
|
(303
|
)
|
(1,185
|
)
|
(150
|
)
|
(10
|
)
|
-
|
-
|
(2,012
|
)
|
||||||||||||||||||
Recoveries
|
5
|
214
|
166
|
-
|
-
|
-
|
-
|
385
|
||||||||||||||||||||||||
Provisions (credits)
|
733
|
(942
|
)
|
289
|
803
|
19
|
(12
|
)
|
10
|
900
|
||||||||||||||||||||||
Ending balance
|
$
|
6,828
|
$
|
917
|
$
|
1,579
|
$
|
1,638
|
$
|
234
|
$
|
2
|
$
|
338
|
$
|
11,536
|
(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, 2016
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
1,277
|
$
|
-
|
$
|
1,624
|
$
|
274
|
$
|
293
|
$
|
-
|
$
|
-
|
$
|
3,468
|
||||||||||||||||
Collectively evaluated for impairment
|
1,977
|
557
|
1,260
|
1,108
|
295
|
58
|
432
|
5,687
|
||||||||||||||||||||||||
Total allowance for loan losses
|
$
|
3,254
|
$
|
557
|
$
|
2,884
|
$
|
1,382
|
$
|
588
|
$
|
58
|
$
|
432
|
$
|
9,155
|
||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||||||
Loans evaluated individually
|
$
|
19,245
|
$
|
-
|
$
|
5,180
|
$
|
2,325
|
$
|
1,290
|
$
|
130
|
$
|
-
|
$
|
28,170
|
||||||||||||||||
Loans evaluated collectively
|
359,274
|
61,453
|
169,564
|
274,661
|
62,370
|
9,552
|
-
|
936,874
|
||||||||||||||||||||||||
Total loans receivable
|
$
|
378,519
|
$
|
61,453
|
$
|
174,744
|
$
|
276,986
|
$
|
63,660
|
$
|
9,682
|
$
|
-
|
$
|
965,044
|
(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, 2015
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
47
|
$
|
-
|
$
|
1,111
|
$
|
1059
|
$
|
21
|
$
|
-
|
$
|
-
|
$
|
2,238
|
||||||||||||||||
Collectively evaluated for impairment
|
2,346
|
338
|
1,821
|
971
|
274
|
14
|
701
|
6,465
|
||||||||||||||||||||||||
Total allowance for loan losses
|
$
|
2,393
|
$
|
338
|
$
|
2,932
|
$
|
2,030
|
$
|
295
|
$
|
14
|
$
|
701
|
$
|
8,703
|
||||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||||||
Loans evaluated individually
|
$
|
12,203
|
$
|
117
|
$
|
5,493
|
$
|
3,369
|
$
|
947
|
$
|
-
|
$
|
-
|
$
|
22,129
|
||||||||||||||||
Loans evaluated collectively
|
337,523
|
46,430
|
176,357
|
243,029
|
47,179
|
2,380
|
-
|
852,898
|
||||||||||||||||||||||||
Total loans receivable
|
$
|
349,726
|
$
|
46,547
|
$
|
181,850
|
$
|
246,398
|
$
|
48,126
|
$
|
2,380
|
$
|
-
|
$
|
875,027
|
December 31, 2016
|
December 31, 2015
|
|||||||||||||||||||||||
(
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
|
$
|
12,347
|
$
|
12,348
|
$
|
-
|
$
|
11,692
|
$
|
11,730
|
$
|
-
|
||||||||||||
Construction and land development
|
-
|
-
|
-
|
117
|
2,208
|
-
|
||||||||||||||||||
Commercial and industrial
|
1,955
|
3,111
|
-
|
2,381
|
3,683
|
-
|
||||||||||||||||||
Owner occupied real estate
|
621
|
733
|
-
|
507
|
507
|
-
|
||||||||||||||||||
Consumer and other
|
687
|
976
|
-
|
800
|
1,084
|
-
|
||||||||||||||||||
Residential mortgage
|
130
|
130
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
15,740
|
$
|
17,298
|
$
|
-
|
$
|
15,497
|
$
|
19,212
|
$
|
-
|
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
6,898
|
$
|
6,912
|
$
|
1,277
|
$
|
511
|
$
|
511
|
$
|
47
|
||||||||||||
Construction and land development
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Commercial and industrial
|
3,225
|
5,892
|
1,624
|
3,112
|
5,779
|
1,111
|
||||||||||||||||||
Owner occupied real estate
|
1,704
|
1,704
|
274
|
2,862
|
2,876
|
1,059
|
||||||||||||||||||
Consumer and other
|
603
|
627
|
293
|
147
|
147
|
21
|
||||||||||||||||||
Residential mortgage
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
12,430
|
$
|
15,135
|
$
|
3,468
|
$
|
6,632
|
$
|
9,313
|
$
|
2,238
|
Total:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
19,245
|
$
|
19,260
|
$
|
1,277
|
$
|
12,203
|
$
|
12,241
|
$
|
47
|
||||||||||||
Construction and land development
|
-
|
-
|
-
|
117
|
2,208
|
-
|
||||||||||||||||||
Commercial and industrial
|
5,180
|
9,003
|
1,624
|
5,493
|
9,462
|
1,111
|
||||||||||||||||||
Owner occupied real estate
|
2,325
|
2,437
|
274
|
3,369
|
3,383
|
1,059
|
||||||||||||||||||
Consumer and other
|
1,290
|
1,603
|
293
|
947
|
1,231
|
21
|
||||||||||||||||||
Residential mortgage
|
130
|
130
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
28,170
|
$
|
32,433
|
$
|
3,468
|
$
|
22,129
|
$
|
28,525
|
$
|
2,238
|
Years Ended December 31,
|
||||||||||||||||||||||||
2016
|
2015
|
2014
|
||||||||||||||||||||||
(dollars in thousands)
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
12,033
|
$
|
264
|
$
|
12,796
|
$
|
282
|
$
|
7,739
|
$
|
450
|
||||||||||||
Construction and land development
|
58
|
-
|
206
|
2
|
462
|
-
|
||||||||||||||||||
Commercial and industrial
|
1,828
|
42
|
3,225
|
78
|
3,070
|
22
|
||||||||||||||||||
Owner occupied real estate
|
642
|
10
|
700
|
6
|
714
|
8
|
||||||||||||||||||
Consumer and other
|
858
|
16
|
685
|
13
|
482
|
4
|
||||||||||||||||||
Residential mortgage
|
26
|
1
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
15,445
|
$
|
333
|
$
|
17,612
|
$
|
381
|
$
|
12,467
|
$
|
484
|
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
4,455
|
$
|
52
|
$
|
5,544
|
$
|
13
|
$
|
13,197
|
$
|
5
|
||||||||||||
Construction and land development
|
12
|
-
|
90
|
-
|
557
|
-
|
||||||||||||||||||
Commercial and industrial
|
3,357
|
74
|
2,587
|
28
|
3,244
|
-
|
||||||||||||||||||
Owner occupied real estate
|
2,104
|
31
|
3,643
|
92
|
3,446
|
125
|
||||||||||||||||||
Consumer and other
|
322
|
12
|
59
|
2
|
40
|
-
|
||||||||||||||||||
Residential mortgage
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
10,250
|
$
|
169
|
$
|
11,923
|
$
|
135
|
$
|
20,484
|
$
|
130
|
Total:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
16,488
|
$
|
316
|
$
|
18,340
|
$
|
295
|
$
|
20,936
|
$
|
455
|
||||||||||||
Construction and land development
|
70
|
-
|
296
|
2
|
1,019
|
-
|
||||||||||||||||||
Commercial and industrial
|
5,185
|
116
|
5,812
|
106
|
6,314
|
22
|
||||||||||||||||||
Owner occupied real estate
|
2,746
|
41
|
4,343
|
98
|
4,160
|
133
|
||||||||||||||||||
Consumer and other
|
1,180
|
28
|
744
|
15
|
522
|
4
|
||||||||||||||||||
Residential mortgage
|
26
|
1
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
25,695
|
$
|
502
|
$
|
29,535
|
$
|
516
|
$
|
32,951
|
$
|
614
|
(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, 2016
|
||||||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
$
|
9
|
$
|
13,089
|
$
|
13,098
|
$
|
365,421
|
$
|
378,519
|
$
|
-
|
||||||||||||||
Construction and land development
|
-
|
-
|
-
|
-
|
61,453
|
61,453
|
-
|
|||||||||||||||||||||
Commercial and industrial
|
568
|
-
|
3,151
|
3,719
|
171,025
|
174,744
|
-
|
|||||||||||||||||||||
Owner occupied real estate
|
468
|
-
|
1,718
|
2,186
|
274,800
|
276,986
|
172
|
|||||||||||||||||||||
Consumer and other
|
24
|
22
|
808
|
854
|
62,806
|
63,660
|
-
|
|||||||||||||||||||||
Residential mortgage
|
-
|
-
|
130
|
130
|
9,552
|
9,682
|
130
|
|||||||||||||||||||||
Total
|
$
|
1,060
|
$
|
31
|
$
|
18,896
|
$
|
19,987
|
$
|
945,057
|
$
|
965,044
|
$
|
302
|
(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, 2015
|
||||||||||||||||||||||||||||
Commercial real estate
|
$
|
-
|
$
|
7,657
|
$
|
5,913
|
$
|
13,570
|
$
|
336,156
|
$
|
349,726
|
$
|
-
|
||||||||||||||
Construction and land development
|
-
|
-
|
117
|
117
|
46,430
|
46,547
|
-
|
|||||||||||||||||||||
Commercial and industrial
|
1,661
|
997
|
3,156
|
5,814
|
176,036
|
181,850
|
-
|
|||||||||||||||||||||
Owner occupied real estate
|
800
|
469
|
2,894
|
4,163
|
242,235
|
246,398
|
-
|
|||||||||||||||||||||
Consumer and other
|
285
|
192
|
542
|
1,019
|
47,107
|
48,126
|
-
|
|||||||||||||||||||||
Residential mortgage
|
132
|
-
|
-
|
132
|
2,248
|
2,380
|
-
|
|||||||||||||||||||||
Total
|
$
|
2,878
|
$
|
9,315
|
$
|
12,622
|
$
|
24,815
|
$
|
850,212
|
$
|
875,027
|
$
|
-
|
(dollars in thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
At December 31, 2016:
|
||||||||||||||||||||
Commercial real estate
|
$
|
364,066
|
$
|
877
|
$
|
13,576
|
$
|
-
|
$
|
378,519
|
||||||||||
Construction and land development
|
61,453
|
-
|
-
|
-
|
61,453
|
|||||||||||||||
Commercial and industrial
|
168,958
|
606
|
3,751
|
1,429
|
174,744
|
|||||||||||||||
Owner occupied real estate
|
274,150
|
511
|
2,325
|
-
|
276,986
|
|||||||||||||||
Consumer and other
|
62,370
|
-
|
1,290
|
-
|
63,660
|
|||||||||||||||
Residential mortgage
|
9,552
|
-
|
130
|
-
|
9,682
|
|||||||||||||||
Total
|
$
|
940,549
|
$
|
1,994
|
$
|
21,072
|
$
|
1,429
|
$
|
965,044
|
(dollars in thousands)
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
At December 31, 2015:
|
||||||||||||||||||||
Commercial real estate
|
$
|
329,567
|
$
|
7,956
|
$
|
12,203
|
$
|
-
|
$
|
349,726
|
||||||||||
Construction and land development
|
46,430
|
-
|
117
|
-
|
46,547
|
|||||||||||||||
Commercial and industrial
|
176,132
|
225
|
4,064
|
1,429
|
181,850
|
|||||||||||||||
Owner occupied real estate
|
242,560
|
469
|
3,369
|
-
|
246,398
|
|||||||||||||||
Consumer and other
|
47,104
|
75
|
947
|
-
|
48,126
|
|||||||||||||||
Residential mortgage
|
2,380
|
-
|
-
|
-
|
2,380
|
|||||||||||||||
Total
|
$
|
844,173
|
$
|
8,725
|
$
|
20,700
|
$
|
1,429
|
$
|
875,027
|
(dollars in thousands)
|
December 31,
2016
|
December 31,
2015
|
||||||
Commercial real estate
|
$
|
13,089
|
$
|
5,913
|
||||
Construction and land development
|
-
|
117
|
||||||
Commercial and industrial
|
3,151
|
3,156
|
||||||
Owner occupied real estate
|
1,546
|
2,894
|
||||||
Consumer and other
|
808
|
542
|
||||||
Residential mortgage
|
-
|
-
|
||||||
Total
|
$
|
18,594
|
$
|
12,622
|
(dollars in thousands)
|
Number
of Loans
|
Accrual
Status
|
Non-
Accrual
Status
|
Total
TDRs
|
|||||||||||||
December 31, 2016
|
|||||||||||||||||
Commercial real estate
|
1
|
$
|
5,669
|
$
|
-
|
$
|
5,669
|
||||||||||
Construction and land development
|
-
|
-
|
-
|
-
|
|||||||||||||
Commercial and industrial
|
2
|
228
|
349
|
577
|
|||||||||||||
Owner occupied real estate
|
-
|
-
|
-
|
-
|
|||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
|||||||||||||
Residential mortgage
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
|
3
|
$
|
5,897
|
$
|
349
|
$
|
6,246
|
||||||||||
December 31, 2015
|
|||||||||||||||||
Commercial real estate
|
1
|
$
|
5,778
|
$
|
-
|
$
|
5,778
|
||||||||||
Construction and land development
|
-
|
-
|
-
|
-
|
|||||||||||||
Commercial and industrial
|
2
|
252
|
935
|
1,187
|
|||||||||||||
Owner occupied real estate
|
1
|
-
|
1,825
|
1,825
|
|||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
|||||||||||||
Residential mortgage
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
|
4
|
$
|
6,030
|
$
|
2,760
|
$
|
8,790
|
(dollars in thousands)
|
December 31
,
2016
|
December 31,
2015
|
December 31,
2014
|
|||||||||
Beginning Balance, January 1
st
|
$
|
11,313
|
$
|
3,715
|
4,059
|
|||||||
Additions
|
616
|
11,459
|
1,000
|
|||||||||
Valuation adjustments
|
(355
|
)
|
(3,069
|
)
|
(1,147
|
)
|
||||||
Dispositions
|
(1,400
|
)
|
(792
|
)
|
(197
|
)
|
||||||
Ending Balance
|
$
|
10,174
|
$
|
11,313
|
3,715
|
(dollars in thousands)
|
December 31,
2016
|
December 31,
2015
|
|||||||
Land
|
$
|
10,170
|
$
|
8,029
|
|||||
Buildings
|
25,693
|
16,215
|
|||||||
Leasehold improvements
|
20,236
|
19,621
|
|||||||
Furniture, fixtures and equipment
|
15,006
|
11,680
|
|||||||
Construction in progress
|
3,734
|
4,471
|
|||||||
74,839
|
60,016
|
||||||||
Less accumulated depreciation
|
(17,799
|
)
|
(13,852
|
)
|
|||||
Net premises and equipment
|
$
|
57,040
|
$
|
46,164
|
8. |
Borrowings
|
9. |
Deposits
|
(dollars in thousands)
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
Total
|
|||||||||||||||||||||
Certificates of Deposit
|
$
|
65,247
|
$
|
21,554
|
$
|
1,605
|
$
|
21,793
|
$
|
965
|
$
|
-
|
$
|
111,164
|
10. |
Income Taxes
|
(dollars in thousands)
|
2016
|
2015
|
2014
|
|||||||||
Current
|
||||||||||||
Federal
|
$
|
261
|
$
|
58
|
$
|
96
|
||||||
State
|
-
|
-
|
-
|
|||||||||
Deferred
|
(380
|
)
|
(84
|
)
|
(142
|
)
|
||||||
Total benefit for income taxes
|
$
|
(119
|
)
|
$
|
(26
|
)
|
$
|
(46
|
)
|
(dollars in thousands)
|
2016
|
2015
|
2014
|
|||||||||
Tax provision computed at statutory rate
|
$
|
1,689
|
$
|
843
|
$
|
839
|
||||||
Tax exempt interest
|
(582
|
)
|
(394
|
)
|
(246
|
)
|
||||||
Deferred tax asset valuation allowance adjustment
|
(1,508
|
)
|
(937
|
)
|
(679
|
)
|
||||||
Other
|
282
|
462
|
40
|
|||||||||
Total benefit for income taxes
|
$
|
(119
|
)
|
$
|
(26
|
)
|
$
|
(46
|
)
|
(dollars in thousands)
|
2016
|
2015
|
|||||||
Deferred tax assets
|
|||||||||
Allowance for loan losses
|
$
|
3,288
|
$
|
3,125
|
|||||
Deferred compensation
|
824
|
786
|
|||||||
Unrealized losses on securities available for sale
|
4,087
|
1,774
|
|||||||
Realized losses in other than temporary impairment charge
|
336
|
334
|
|||||||
Foreclosed real estate write-downs
|
2,377
|
2,350
|
|||||||
Interest income on non-accrual loans
|
1,425
|
1,185
|
|||||||
Net operating loss carryforward
|
8,896
|
10,775
|
|||||||
Other
|
2,001
|
1,580
|
|||||||
Total deferred tax assets
|
23,234
|
21,909
|
|||||||
Deferred tax liabilities
|
|||||||||
Deferred loan costs
|
1,313
|
1,029
|
|||||||
Other
|
528
|
672
|
|||||||
Total deferred tax liabilities
|
1,841
|
1,701
|
|||||||
Net deferred tax asset before valuation allowance
|
21,393
|
20,208
|
|||||||
Less: valuation allowance
|
(12,214
|
)
|
(13,722
|
)
|
|||||
Net deferred tax asset
|
$
|
9,179
|
$
|
6,486
|
11. |
Financial Instruments with Off-Balance Sheet Risk
|
12. |
Commitments and Contingencies
|
Year Ended
|
Amount
|
||||
2017
|
$
|
3,581
|
|||
2018
|
3,449
|
||||
2019
|
3,306
|
||||
2020
|
3,253
|
||||
2021
|
2,028
|
||||
Thereafter
|
14,883
|
||||
Total
|
$
|
30,500
|
13. |
Regulatory Capital
|
(dollars in thousands)
|
Actual
|
Minimum Capital
Adequacy
|
Minimum Capital
Adequacy with
Capital Buffer
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||||
At December 31, 2016:
|
|||||||||||||||||||||||||||||||||
Total risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
$
|
179,057
|
13.93
|
%
|
$
|
102,811
|
8.00
|
%
|
$
|
110,843
|
8.625
|
%
|
$
|
128,514
|
10.00
|
%
|
|||||||||||||||||
Company
|
245,043
|
18.99
|
%
|
103,226
|
8.00
|
%
|
111,290
|
8.625
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
169,902
|
13.22
|
%
|
77,108
|
6.00
|
%
|
85,140
|
6.625
|
%
|
102,811
|
8.00
|
%
|
|||||||||||||||||||||
Company
|
235,888
|
18.28
|
%
|
77,419
|
6.00
|
%
|
85,484
|
6.625
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
CET 1 risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
169,902
|
13.22
|
%
|
57,831
|
4.50
|
%
|
65,863
|
5.125
|
%
|
83,534
|
6.50
|
%
|
|||||||||||||||||||||
Company
|
214,088
|
16.59
|
%
|
58,064
|
4.50
|
%
|
66,129
|
5.125
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one leveraged capital
|
|||||||||||||||||||||||||||||||||
Republic
|
169,902
|
9.20
|
%
|
73,843
|
4.00
|
%
|
73,843
|
4.00
|
%
|
92,304
|
5.00
|
%
|
|||||||||||||||||||||
Company
|
235,888
|
12.74
|
%
|
74,073
|
4.00
|
%
|
74,073
|
4.00
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
At December 31, 2015:
|
|||||||||||||||||||||||||||||||||
Total risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
$
|
138,566
|
12.65
|
%
|
$
|
87,617
|
8.00
|
%
|
$
|
-
|
-
|
%
|
$
|
109,521
|
10.00
|
%
|
|||||||||||||||||
Company
|
145,089
|
13.19
|
%
|
87,976
|
8.00
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
129,863
|
11.86
|
%
|
65,712
|
6.00
|
%
|
-
|
-
|
%
|
87,617
|
8.00
|
%
|
|||||||||||||||||||||
Company
|
136,386
|
12.40
|
%
|
65,982
|
6.00
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
CET 1 risk based capital
|
|||||||||||||||||||||||||||||||||
Republic
|
129,863
|
11.86
|
%
|
49,284
|
4.50
|
%
|
-
|
-
|
%
|
71,189
|
6.50
|
%
|
|||||||||||||||||||||
Company
|
114,586
|
10.42
|
%
|
49,487
|
4.50
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
|||||||||||||||||||||
Tier one leveraged capital
|
|||||||||||||||||||||||||||||||||
Republic
|
129,863
|
9.22
|
%
|
56,328
|
4.00
|
%
|
-
|
-
|
%
|
70,410
|
5.00
|
%
|
|||||||||||||||||||||
Company
|
136,386
|
9.65
|
%
|
56,531
|
4.00
|
%
|
-
|
-
|
%
|
-
|
-
|
%
|
14. |
Benefit Plans
|
15. |
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, 2016
|
||||||||||||||||
Assets:
|
||||||||||||||||
Collateralized mortgage obligations
|
$
|
224,765
|
$
|
-
|
$
|
224,765
|
$
|
-
|
||||||||
Agency mortgage-backed securities
|
36,710
|
-
|
36,710
|
-
|
||||||||||||
Municipal securities
|
26,547
|
-
|
26,547
|
-
|
||||||||||||
Corporate bonds
|
64,748
|
-
|
61,777
|
2,971
|
||||||||||||
Asset-backed securities
|
15,149
|
-
|
15,149
|
-
|
||||||||||||
Trust Preferred Securities
|
1,820
|
-
|
-
|
1,820
|
||||||||||||
Securities Available for Sale
|
$
|
369,739
|
$
|
-
|
$
|
364,948
|
$
|
4,791
|
||||||||
Mortgage Loans Held for Sale
|
$
|
23,911
|
$
|
-
|
$
|
23,911
|
$
|
-
|
||||||||
SBA Servicing Assets
|
5,352
|
-
|
-
|
5,352
|
||||||||||||
Interest Rate Lock Commitments
|
439
|
-
|
439
|
-
|
||||||||||||
Best Efforts Forward Loan Sales Commitments
|
103
|
-
|
103
|
-
|
||||||||||||
Mandatory Forward Loan Sales Commitments
|
229
|
-
|
229
|
-
|
||||||||||||
Liabilities:
|
||||||||||||||||
Interest Rate Lock Commitments
|
55
|
-
|
55
|
-
|
||||||||||||
Best Efforts Forward Loan Sales Commitments
|
125
|
-
|
125
|
-
|
||||||||||||
Mandatory Forward Loan Sales Commitments
|
38
|
-
|
38
|
-
|
||||||||||||
December 31, 2015
|
||||||||||||||||
Assets:
|
||||||||||||||||
Collateralized mortgage obligations
|
$
|
178,145
|
$
|
-
|
$
|
178,145
|
$
|
-
|
||||||||
Agency mortgage-backed securities
|
10,171
|
-
|
10,171
|
-
|
||||||||||||
Municipal securities
|
23,344
|
-
|
23,344
|
-
|
||||||||||||
Corporate bonds
|
54,129
|
-
|
51,295
|
2,834
|
||||||||||||
Asset-backed securities
|
17,005
|
-
|
17,005
|
-
|
||||||||||||
Trust Preferred Securities
|
1,883
|
-
|
-
|
1,883
|
||||||||||||
Other securities
|
118
|
-
|
118
|
-
|
||||||||||||
Securities Available for Sale
|
$
|
284,795
|
$
|
-
|
$
|
280,078
|
$
|
4,717
|
||||||||
SBA Servicing Assets
|
$
|
4,886
|
$
|
-
|
$
|
-
|
$
|
4,886
|
(dollars in thousands)
|
2016
|
2015
|
2014
|
|||||||||
Beginning balance, January 1st
|
$
|
4,886
|
$
|
4,099
|
3,477
|
|||||||
Additions
|
1,541
|
801
|
1,277
|
|||||||||
Fair value adjustments
|
(1,075
|
)
|
(14
|
)
|
(655
|
)
|
||||||
Ending balance, December 31st
|
$
|
5,352
|
$
|
4,886
|
4,099
|
Year Ended
December 31, 2016
|
Year Ended
December 31, 2015
|
Year Ended
December 31, 2014
|
||||||||||||||||||||||
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,
|
$
|
1,883
|
$
|
2,834
|
$
|
3,193
|
$
|
3,005
|
$
|
2,850
|
$
|
3,006
|
||||||||||||
Security transferred to Level 3 measurement
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Unrealized (losses) gains
|
(56
|
)
|
137
|
882
|
(171
|
)
|
360
|
(1
|
)
|
|||||||||||||||
Paydowns
|
-
|
-
|
(19
|
)
|
-
|
(10
|
)
|
-
|
||||||||||||||||
Proceeds from sales
|
-
|
-
|
(1,952
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Realized losses
|
-
|
-
|
(218
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Impairment charges on Level 3
|
(7
|
)
|
-
|
(3
|
)
|
-
|
(7
|
)
|
-
|
|||||||||||||||
Balance, December 31,
|
$
|
1,820
|
$
|
2,971
|
$
|
1,883
|
$
|
2,834
|
$
|
3,193
|
$
|
3,005
|
||||||||||||
(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, 2016:
|
||||||||||||||||
Impaired loans
|
$
|
9,110
|
$
|
-
|
$
|
-
|
$
|
9,110
|
||||||||
Other real estate owned
|
8,563
|
-
|
-
|
8,563
|
||||||||||||
December 31, 2015:
|
||||||||||||||||
Impaired loans
|
$
|
5,734
|
$
|
-
|
$
|
-
|
$
|
5,734
|
||||||||
Other real estate owned
|
10,034
|
-
|
-
|
10,034
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||
Asset Description
|
Fair Value
|
Valuation Technique
|
Unobservable Input
|
Range Weighted Average
|
|||||
December 31, 2016
|
|||||||||
Corporate bonds
|
$
|
2,971
|
Discounted
Cash Flows
|
Discount Rate
|
(4.68%)
|
||||
Trust preferred securities
|
$
|
1,820
|
Discounted
Cash Flows
|
Discount Rate
|
8.85% - 9.35% (9.08%)
|
||||
SBA servicing assets
|
$
|
5,352
|
Discounted
Cash Flows
|
Conditional
Prepayment Rate
Discount Rate
|
(6.12%)
(10.00%)
|
||||
Impaired loans
|
$
|
9,110
|
Appraised Value of
Collateral (1)
Sales Price
|
Liquidation expenses (2)
Liquidation expenses (2)
|
7% - 20% (11%) (3)
(7%) (3)
|
||||
Other real estate owned
|
$
|
8,563
|
Appraised Value of
Collateral (1)
Sales Price
|
Liquidation expenses (2)
Liquidation expenses (2)
|
5% - 76% (17%) (3)
7% - 8% (7%) (3)
|
||||
December 31, 2015
|
|||||||||
Corporate bonds
|
$
|
2,834
|
Discounted
Cash Flows
|
Discount Rate
|
(4.11%)
|
||||
Trust preferred securities
|
$
|
1,883
|
Discounted
Cash Flows
|
Discount Rate
|
7.31% - 7.81% (7.77%)
|
||||
SBA servicing assets
|
$
|
4,886
|
Discounted
Cash Flows
|
Conditional
Prepayment Rate
Discount Rate
|
(6.27%)
(10.00%)
|
||||
Impaired loans
|
$
|
5,734
|
Appraised Value of
Collateral (1)
|
Liquidation expenses (2)
|
12% - 78% (20%) (3)
|
||||
Other real estate owned
|
$
|
10,034
|
Appraised Value of
Collateral (1)
Sales Price
|
Liquidation expenses (2)
Appraisal adjustment (2)
Liquidation expenses (2)
|
6% - 30% (10%) (3)
(50%) (3)
7% - 9% (9%) (3)
|
(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) |
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.
|
Mortgage loans
held for sale
|
Carrying
Amount
|
Aggregate Unpaid Principal Balance
|
Excess Carrying Amount Over Aggregate Unpaid Principal Balance
|
|||||||||
December 31, 2016
|
$
|
23,911
|
$
|
23,428
|
$
|
483
|
(dollars in thousands)
|
December 31, 2016
|
December 31, 2015
|
||||||
SBA Servicing Asset
|
||||||||
Fair Value of SBA Servicing Asset
|
$
|
5,352
|
$
|
4,886
|
||||
Composition of SBA Loans Serviced for Others
|
||||||||
Fixed-rate SBA loans
|
0
|
%
|
0
|
%
|
||||
Adjustable-rate SBA loans
|
100
|
%
|
100
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
||||
Weighted Average Remaining Term
|
21.1 years
|
20.9 years
|
||||||
Prepayment Speed
|
6.12
|
%
|
6.27
|
%
|
||||
Effect on fair value of a 10% increase
|
$
|
(161
|
)
|
$
|
(151
|
)
|
||
Effect on fair value of a 20% increase
|
(316
|
)
|
(296
|
)
|
||||
Weighted Average Discount Rate
|
10.00
|
%
|
10.00
|
%
|
||||
Effect on fair value of a 10% increase
|
$
|
(226
|
)
|
$
|
(206
|
)
|
||
Effect on fair value of a 20% increase
|
(435
|
)
|
(397
|
)
|
Fair Value Measurements at December 31, 2016
|
||||||||||||||||||||
(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
|
$
|
34,554
|
$
|
34,554
|
$
|
34,554
|
$
|
-
|
$
|
-
|
||||||||||
Investment securities available for sale
|
369,739
|
369,739
|
-
|
364,948
|
4,791
|
|||||||||||||||
Investment securities held to maturity
|
432,499
|
425,183
|
-
|
425,183
|
-
|
|||||||||||||||
Restricted stock
|
1,366
|
1,366
|
-
|
1,366
|
-
|
|||||||||||||||
Loans held for sale
|
28,065
|
28,267
|
-
|
23,911
|
4,356
|
|||||||||||||||
Loans receivable, net
|
955,817
|
937,944
|
-
|
-
|
937,944
|
|||||||||||||||
SBA servicing assets
|
5,352
|
5,352
|
-
|
-
|
5,352
|
|||||||||||||||
Accrued interest receivable
|
5,497
|
5,497
|
-
|
5,497
|
-
|
|||||||||||||||
Interest rate lock commitments
|
439
|
439
|
-
|
439
|
-
|
|||||||||||||||
Best efforts forward loan sales commitments
|
103
|
103
|
-
|
103
|
-
|
|||||||||||||||
Mandatory forward loan sales commitments
|
229
|
229
|
-
|
229
|
-
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Demand, savings and money market
|
$
|
1,566,506
|
$
|
1,566,506
|
$
|
-
|
$
|
1,566,506
|
$
|
-
|
||||||||||
Time
|
111,164
|
110,988
|
-
|
110,988
|
-
|
|||||||||||||||
Subordinated debt
|
21,881
|
16,286
|
-
|
-
|
16,286
|
|||||||||||||||
Accrued interest payable
|
444
|
444
|
-
|
444
|
-
|
|||||||||||||||
Interest rate lock commitments
|
55
|
55
|
-
|
55
|
-
|
|||||||||||||||
Best efforts forward loan sales commitments
|
125
|
125
|
-
|
125
|
-
|
|||||||||||||||
Mandatory forward loan sales commitments
|
38
|
38
|
-
|
38
|
-
|
|||||||||||||||
Off-Balance Sheet Data
|
||||||||||||||||||||
Commitments to extend credit
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Standby letters-of-credit
|
-
|
-
|
-
|
-
|
-
|
Fair Value Measurements at December 31, 2015
|
||||||||||||||||||||
(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
|
$
|
27,139
|
$
|
27,139
|
$
|
27,139
|
$
|
-
|
$
|
-
|
||||||||||
Investment securities available for sale
|
284,795
|
284,795
|
-
|
280,078
|
4,717
|
|||||||||||||||
Investment securities held to maturity
|
172,277
|
171,845
|
-
|
171,845
|
-
|
|||||||||||||||
Restricted stock
|
3,059
|
3,059
|
-
|
3,059
|
-
|
|||||||||||||||
Loans held for sale
|
3,653
|
3,831
|
-
|
-
|
3,831
|
|||||||||||||||
Loans receivable, net
|
866,066
|
849,578
|
-
|
-
|
849,578
|
|||||||||||||||
SBA servicing assets
|
4,886
|
4,886
|
-
|
-
|
4,886
|
|||||||||||||||
Accrued interest receivable
|
4,216
|
4,216
|
-
|
4,216
|
-
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
||||||||||||||||||||
Demand, savings and money market
|
$
|
1,181,720
|
$
|
1,181,720
|
$
|
-
|
$
|
1,181,720
|
$
|
-
|
||||||||||
Time
|
67,578
|
67,422
|
-
|
67,422
|
-
|
|||||||||||||||
Short-term borrowings
|
47,000
|
47,000
|
-
|
47,000
|
-
|
|||||||||||||||
Subordinated debt
|
21,857
|
18,353
|
-
|
-
|
18,353
|
|||||||||||||||
Accrued interest payable
|
245
|
245
|
-
|
245
|
-
|
|||||||||||||||
Off-Balance Sheet Data
|
||||||||||||||||||||
Commitments to extend credit
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Standby letters-of-credit
|
-
|
-
|
-
|
-
|
-
|
16.
|
Stock Based Compensation
|
2016
|
2015
|
2014
|
||||||||||
Dividend yield
(1)
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||
Expected volatility
(2)
|
46.38% to 52.54
|
% |
53.78% to 56.00
|
% |
55.79% to 57.99
|
% | ||||||
Risk-free interest rate
(3)
|
1.23% to 1.82
|
% |
1.49% to 2.00
|
% |
1.51% to 2.26
|
% | ||||||
Expected life
(4)
|
5.5 to 7.0 years
|
5.5 to 7.0 years
|
5.5 to 7.0 years
|
|||||||||
Assumed forfeiture rate
(5)
|
10.0
|
%
|
19.0
|
%
|
23.0
|
%
|
||||||
(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
.
|
(5) |
Forfeiture rate is determined through forfeited and expired options as a percentage of options granted over the current three year period.
|
2016
|
2015
|
2014
|
||||||||||
Stock based compensation expense recognized
|
$
|
759,000
|
$
|
600,000
|
$
|
420,000
|
||||||
Number of unvested stock options
|
1,283,226
|
1,173,276
|
1,039,638
|
|||||||||
Fair value of unvested stock options
|
$
|
2,184,773
|
$
|
1,906,691
|
$
|
1,548,840
|
||||||
Amount remaining to be recognized as expense
|
$
|
1,104,424
|
$
|
873,714
|
$
|
702,220
|
For the Years Ended December 31,
|
||||||||||||||||||||||||
2016
|
2015
|
2014
|
||||||||||||||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding, beginning of year
|
1,946,225
|
$
|
3.56
|
1,494,399
|
$
|
3.59
|
1,215,530
|
$
|
3.66
|
|||||||||||||||
Granted
|
661,750
|
4.06
|
505,200
|
3.55
|
360,900
|
3.69
|
||||||||||||||||||
Exercised
|
(226,275
|
)
|
3.21
|
(21,500
|
)
|
3.01
|
(500
|
)
|
1.95
|
|||||||||||||||
Forfeited
|
(50,300
|
)
|
5.21
|
(31,874
|
)
|
5.13
|
(81,531
|
)
|
5.15
|
|||||||||||||||
Outstanding, end of year
|
2,331,400
|
$
|
3.70
|
1,946,225
|
$
|
3.56
|
1,494,399
|
$
|
3.59
|
|||||||||||||||
Options exercisable at year-end
|
1,048,174
|
$
|
3.70
|
772,949
|
$
|
4.18
|
454,761
|
$
|
5.06
|
|||||||||||||||
Weighted average fair value of
options granted during the year
|
$
|
1.80
|
$
|
1.89
|
$
|
2.07
|
For the Years Ended December 31,
|
||||||||||||||
2016
|
2015
|
2014
|
||||||||||||
Number of options exercised
|
226,275
|
21,500
|
500
|
|||||||||||
Cash received
|
$
|
726,157
|
$
|
64,624
|
$
|
975
|
||||||||
Intrinsic value
|
$
|
739,699
|
$
|
26,532
|
$
|
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
|
|||||||||||||||||
$1.55 to $2.95
|
538,675
|
5.7
|
$
|
2.36
|
361,837
|
$
|
2.20
|
|||||||||||||||
$3.14 to $3.68
|
897,275
|
7.3
|
3.55
|
428,137
|
3.51
|
|||||||||||||||||
$3.95 to $8.00
|
886,100
|
7.3
|
4.58
|
248,850
|
5.89
|
|||||||||||||||||
$11.77 to $12.13
|
9,350
|
-
|
11.77
|
9,350
|
11.77
|
|||||||||||||||||
2,331,400
|
$
|
3.70
|
1,048,174
|
$
|
3.70
|
Number of
Shares
|
Weighted-
Average Grant
Date Fair Value
|
||||||||
Nonvested, beginning of year
|
1,173,276
|
$
|
1.63
|
||||||
Granted
|
661,750
|
1.80
|
|||||||
Vested
|
(517,550
|
)
|
1.53
|
||||||
Forfeited
|
(34,250
|
)
|
2.01
|
||||||
Nonvested, end of year
|
1,283,226
|
$
|
1.70
|
17.
|
Segment Reporting
|
18.
|
Transactions with Affiliates and Related Parties
|
Balance Sheet
|
||||||||
December 31, 2016 and 2015
|
||||||||
(Dollars in thousands)
|
||||||||
December 31, 2016
|
December 31, 2015
|
|||||||
ASSETS
|
||||||||
Cash
|
$
|
61,011
|
$
|
2,051
|
||||
Corporation-obligated mandatorily redeemable capital securities of subsidiary
trust holding junior obligations of the corporation
|
676
|
676
|
||||||
Investment in subsidiaries
|
170,868
|
128,652
|
||||||
Other assets
|
4,589
|
3,873
|
||||||
Total Assets
|
$
|
237,144
|
$
|
135,252
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Liabilities
|
||||||||
Accrued expenses
|
$
|
210
|
$
|
20
|
||||
Corporation-obligated mandatorily redeemable securities of subsidiary trust
holding solely junior subordinated debentures of the corporation
|
21,881
|
21,857
|
||||||
Total Liabilities
|
22,091
|
21,877
|
||||||
Shareholders' Equity
|
||||||||
Total Shareholders' Equity
|
215,053
|
113,375
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
237,144
|
$
|
135,252
|
20.
|
Quarterly Financial Data (unaudited)
|
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
|
|||||||||||||
2016
|
||||||||||||||||
Interest income
|
$
|
14,636
|
$
|
13,620
|
$
|
13,209
|
$
|
12,762
|
||||||||
Interest expense
|
1,946
|
1,834
|
1,612
|
1,471
|
||||||||||||
Net interest income
|
12,690
|
11,786
|
11,597
|
11,291
|
||||||||||||
Provision for loan losses
|
-
|
607
|
650
|
300
|
||||||||||||
Non-interest income
|
4,727
|
5,142
|
3,031
|
2,412
|
||||||||||||
Non-interest expense
|
15,970
|
15,013
|
12,967
|
12,343
|
||||||||||||
Benefit for income taxes
|
(50
|
)
|
(32
|
)
|
(12
|
)
|
(25
|
)
|
||||||||
Net income
|
$
|
1,497
|
$
|
1,340
|
$
|
1,023
|
$
|
1,085
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$
|
0.03
|
$
|
0.04
|
$
|
0.03
|
$
|
0.03
|
||||||||
Diluted
|
$
|
0.03
|
$
|
0.03
|
$
|
0.03
|
$
|
0.03
|
||||||||
2015
|
||||||||||||||||
Interest income
|
$
|
12,406
|
$
|
11,370
|
$
|
10,899
|
$
|
10,761
|
||||||||
Interest expense
|
1,419
|
1,378
|
1,290
|
1,294
|
||||||||||||
Net interest income
|
10,987
|
9,992
|
9,609
|
9,467
|
||||||||||||
Provision for loan losses
|
500
|
-
|
-
|
-
|
||||||||||||
Non-interest income
|
4,740
|
1,604
|
2,022
|
1,577
|
||||||||||||
Non-interest expense
|
14,446
|
11,024
|
11,103
|
10,518
|
||||||||||||
Benefit for income taxes
|
(9
|
)
|
(10
|
)
|
(5
|
)
|
(2
|
)
|
||||||||
Net income
|
$
|
790
|
$
|
582
|
$
|
533
|
$
|
528
|
||||||||
Net income per share
(1)
:
|
||||||||||||||||
Basic
|
$
|
0.02
|
$
|
0.02
|
$
|
0.01
|
$
|
0.01
|
||||||||
Diluted
|
$
|
0.02
|
$
|
0.02
|
$
|
0.01
|
$
|
0.01
|
(1) |
Quarterly net income per share does not add to full year net income per share due to rounding.
|
21.
|
Changes in Accumulated Other Comprehensive Income (Loss) By Component
(1)
|
Unrealized Gains
(Losses) on Available-
For-Sale Securities
|
Unrealized Holding
Losses on Securities
Transferred From Available-For-Sale
To Held-To-Maturity
|
Total
|
||||||||||
(dollars in thousands)
|
||||||||||||
Balance January 1, 2016
|
$
|
(2,562
|
)
|
$
|
(603
|
)
|
$
|
(3,165
|
)
|
|||
Unrealized loss on securities
|
(3,853
|
)
|
-
|
(3,853
|
)
|
|||||||
Amounts reclassified from accumulated other comprehensive
income to net income (2)
|
(416
|
)
|
140
|
(276
|
)
|
|||||||
Net current-period other comprehensive income (loss)
|
(4,269
|
)
|
140
|
(4,129
|
)
|
|||||||
Balance December 31, 2016
|
$
|
(6,831
|
)
|
$
|
(463
|
)
|
$
|
(7,294
|
)
|
|||
Balance January 1, 2015
|
$
|
82
|
$
|
(714
|
)
|
$
|
(632
|
)
|
||||
Unrealized loss on securities
|
(2,577
|
)
|
-
|
(2,577
|
)
|
|||||||
Amounts reclassified from accumulated other comprehensive
income to net income (2)
|
(67
|
)
|
111
|
44
|
||||||||
Net current-period other comprehensive income (loss)
|
(2,644
|
)
|
111
|
(2,533
|
)
|
|||||||
Balance December 31, 2015
|
$
|
(2,562
|
)
|
$
|
(603
|
)
|
$
|
(3,165
|
)
|
|||
Balance January 1, 2014
|
$
|
(2,828
|
)
|
$
|
-
|
$
|
(2,828
|
)
|
||||
Unrealized gain on securities
|
3,199
|
-
|
3,199
|
|||||||||
Net unrealized holding losses on securities transferred from
available-for-sale to held-to-maturity
|
-
|
(790
|
)
|
(790
|
)
|
|||||||
Amounts reclassified from accumulated other comprehensive
income to net income (2)
|
(289
|
)
|
76
|
(213
|
)
|
|||||||
Net current-period other comprehensive income
|
2,910
|
(714
|
)
|
2,196
|
||||||||
Balance December 31, 2014
|
$
|
82
|
$
|
(714
|
)
|
$
|
(632
|
)
|
(1) |
All amounts are net of tax. Amounts in parentheses indicate reductions to other comprehensive income.
|
(2) |
Reclassification amounts are reported as gains on sales of investment securities, impairment losses, and amortization of net unrealized losses on the Consolidated Statement of Operations.
|
22.
|
Business Combination
|
Consideration paid:
|
Original
Estimates
|
Adjustments to Estimates
|
Final
Valuation
|
|||||||||
Cash
|
$
|
7,136
|
$
|
-
|
$
|
7,136
|
||||||
Equity instruments
|
202
|
-
|
202
|
|||||||||
Deferred additional purchase price
|
500
|
-
|
500
|
|||||||||
Value of consideration
|
$
|
7,838
|
$
|
-
|
$
|
7,838
|
||||||
Assets acquired:
|
||||||||||||
Cash and cash equivalents
|
$
|
1,223
|
$
|
-
|
$
|
1,223
|
||||||
Loans held for sale
|
20,871
|
-
|
20,871
|
|||||||||
Loans receivable
|
1,132
|
-
|
1,132
|
|||||||||
Premises and equipment
|
103
|
-
|
103
|
|||||||||
Derivative assets
|
1,508
|
-
|
1,508
|
|||||||||
Intangible assets – non compete agreements
|
104
|
-
|
104
|
|||||||||
Other assets
|
125
|
-
|
125
|
|||||||||
Total assets
|
25,066
|
-
|
25,066
|
|||||||||
Liabilities assumed:
|
||||||||||||
Warehouse lines of credit
|
19,666
|
-
|
19,666
|
|||||||||
Derivative liabilities
|
412
|
-
|
412
|
|||||||||
Other liabilities
|
2,042
|
119
|
2,161
|
|||||||||
Total liabilities
|
22,120
|
119
|
22,239
|
|||||||||
Net assets acquired
|
2,946
|
(119
|
)
|
2,827
|
||||||||
|
||||||||||||
Goodwill resulting from acquisition of Oak Mortgage
|
$
|
4,892
|
$
|
119
|
$
|
5,011
|
Year Ended December 31,
|
|||||||||||
2016
|
2015
|
||||||||||
Total revenues
|
$
|
69,436
|
$
|
56,520
|
|||||||
Net income
|
$
|
6,144
|
$
|
4,790
|
23:
|
Goodwill and Other Intangibles
|
(dollars in thousands)
|
Balance
December 31,
2015
|
Additions/
Adjustments
|
Amortization
|
Balance
December 31,
2016
|
Amortization
Period (in years)
|
|||||||||||||||
Goodwill
|
$
|
-
|
$
|
5,011
|
$
|
-
|
$
|
5,011
|
Indefinite
|
|||||||||||
Non-compete agreements
|
-
|
104
|
(43
|
)
|
61
|
1 | ||||||||||||||
Total
|
$
|
-
|
$
|
5,115
|
$
|
(43
|
)
|
$
|
5,072
|
24:
|
Derivatives and Risk Management Activities
|
December 31, 2016
|
Balance Sheet
Presentation
|
Fair
Value
|
Notional
Amount
|
||||||||
Asset derivatives:
|
|||||||||||
IRLC's
|
Other Assets
|
$
|
439
|
$
|
20,792
|
||||||
Best efforts forward loan sales commitments
|
Other Assets
|
103
|
8,586
|
||||||||
Mandatory forward loan sales commitments
|
Other Assets
|
229
|
18,373
|
||||||||
Liability derivatives:
|
|||||||||||
IRLC's
|
Other Liabilities
|
$
|
55
|
$
|
6,757
|
||||||
Best efforts forward loan sales commitments
|
Other Liabilities
|
125
|
18,963
|
||||||||
Mandatory forward loan sales commitments
|
Other Liabilities
|
38
|
5,024
|
Twelve Months Ended December 31, 2016
|
Income Statement
Presentation
|
Gain/(Loss)
|
|||||
Asset derivatives:
|
|||||||
IRLC's
|
Mortgage banking income
|
$
|
(1,042
|
)
|
|||
Best efforts forward loan sales commitments
|
Mortgage banking income
|
77
|
|||||
Mandatory forward loan sales commitments
|
Mortgage banking income
|
229
|
|||||
Liability derivatives:
|
|||||||
IRLC's
|
Mortgage banking income
|
$
|
(32
|
)
|
|||
Best efforts forward loan sales commitments
|
Mortgage banking income
|
264
|
|||||
Mandatory forward loan sales commitments
|
Mortgage banking income
|
(38
|
)
|
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
|
2,331,400
|
$
|
3.70
|
4,789,177
|
(1)(2) |
|
|||||||
Equity compensation plans not approved by security holders
|
-
|
-
|
-
|
||||||||||
Total
|
2,331,400
|
$
|
3.70
|
4,789,177
|
(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, 2016 and 2015;
|
b. |
Consolidated Statements of Income for the years ended December 31, 2016, 2015, and 2014;
|
c. |
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2016, 2015, and 2014;
|
d. |
Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015, and 2014;
|
e. |
Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2016, 2015, and 2014; 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
|
Articles of Incorporation of Republic First Bancorp, Inc.
|
|||
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
|
Form of Employment Agreement, dated July 1, 2015, by and among, certain named Executive Officers, Republic First Bancorp, Inc. and Republic First Bank*
|
Incorporated by reference to Form 8-K filed July 14, 2015
|
||
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
|
||
Exhibit
Number
|
Description
|
Location
|
||
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
|
||
10.6
|
Registration Rights Agreement among Republic First Bancorp, Inc. and the Holders of the Trust IV Capital Securities
|
Incorporated by reference to Form10-Q filed November 7, 2008
|
||
10.7
|
Agreement, dated March 9, 2017, between Republic First Bancorp, Inc. and Vernon W. Hill II
|
|||
10.8
|
Employment Agreement, dated May 10, 2013, by and among Harry D. Madonna, Republic First Bancorp, Inc., and Republic First Bank*
|
Incorporated by reference to Form 10-Q filed on May 10, 2013
|
||
10.9
|
First Amendment to Employment Agreement, dated March 18, 2015, by and among Harry D. Madonna, Republic First Bancorp, Inc. and Republic First Bank*
|
Incorporated by reference to Form 8-K filed on March 20, 2015
|
||
10.10
|
Form of Option Award*
|
Incorporated by reference to Form S-1 filed April 23, 2010 (333-166286)
|
||
10.11
|
Republic First Bancorp, Inc. 2014 Equity Incentive Plan*
|
Incorporated by reference to the definitive proxy statement on Schedule 14A filed on March 26, 2014
|
||
10.12
|
Form of Incentive Stock Option Award – 2014 Equity Incentive Plan*
|
Incorporated by reference to Form 10-K filed on March 13, 2015
|
||
10.13
|
Form of Nonqualified Stock Option Award – 2014 Equity Incentive Plan*
|
Incorporated by reference to Form 10-K filed on March 13, 2015
|
||
10.14
|
Form of Investment Agreement
|
Incorporated by reference to Form 8-K filed on April 22, 2014
|
||
10.15
|
Limited Liability Company Purchase Agreement dated July 26, 2016 by and among, Republic First Bank d/b/a Republic Bank and Owners of Oak Mortgage Company, LLC
|
Incorporated by reference to form 8-K filed August 1, 2016
|
||
21.1
|
Subsidiaries of the Company
|
|||
23.1
|
Consent of BDO USA, LLP
|
|||
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chairman and Chief Executive Officer of Republic First Bancorp, Inc.
|
(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 10, 2017
|
By:
|
/s/ Harry D. Madonna
|
Harry D. Madonna
|
||
President and Chief Executive Officer
|
||
(principal executive officer)
|
||
Date: March 10, 2017
|
By:
|
/s/ Frank A. Cavallaro
|
Frank A. Cavallaro
|
||
Executive Vice President and Chief Financial Officer
|
||
(principal financial and accounting officer)
|
Date: March 10, 2017
|
By:
|
/s/ Vernon W. Hill, II
|
Vernon W. Hill, II, Chairman of the Board
|
||
Date: March 10, 2017
|
By:
|
/s/ Theodore J. Flocco, Jr.
|
Theodore J. Flocco, Jr., Director
|
||
Date: March 10, 2017
|
By:
|
/s/ Lisa R. Jacobs
|
Lisa R. Jacobs, Director
|
||
Date: March 10, 2017
|
By:
|
/s/ Harry D. Madonna
|
Harry D. Madonna, Director
|
||
Date: March 10, 2017
|
By:
|
/s/ Barry L. Spevak
|
Barry L. Spevak, Director
|
||
Date: March 10, 2017
|
By:
|
/s/ Brian P. Tierney
|
Brian P. Tierney, Director
|
||
Date: March 10, 2017
|
By:
|
/s/ Harris Wildstein, Esq.
|
Harris Wildstein, Esq., Director
|
Ø |
REPUBLIC FIRST BANCORP, INC.
(the "
Company
")
,
a Pennsylvania corporation,
|
Ø |
VERNON W. HILL, II
("
Hill
").
|
1. |
Term of Service.
|
2. |
Services and Duties.
|
3. |
Compensation.
|
4. |
Fringe and Other Benefits.
During the Term, Hill shall also be entitled to:
|
5. |
Disability and Death Compensation.
|
6. |
Termination "For Cause" by the Company.
|
7. |
Termination "Without Cause" by the Company.
|
8. |
Termination "For Good Reason" by Hill.
|
9. |
"Change in Control" and "Good Reason".
|
10. |
Additional Payments/Excise Taxes.
|
11. |
Other Rights for Termination "Without Cause" or "For Good Reason".
|
12. |
Source of Payment and Timing.
|
15. |
Confidential Information and Non-Competition.
|
(i) |
Non-Disclosure
. Disclose, communicate or divulge Company Information to any Person other than authorized Company personnel;
|
(ii) |
Non-Use
. Use Company Information for the benefit of himself or any other Person, other than authorized Company personnel.
|
(i) |
Business and Geographic Restriction
. Establish, engage or participate in or otherwise be connected with any commercial banking business which conducts business in any geographic area in which the Company and its subsidiaries is then conducting such business.
|
(ii) |
Exception
. The foregoing shall not prohibit Hill from owning as a shareholder less than 10% of the outstanding voting stock of an issuer engaged in the commercial banking business in the United States.
|
(i) |
Hill's Termination at Anniversary or Voluntary
. If this Agreement is terminated by Hill in accord with the Termination at Anniversary in Section 1.2(b) of this Agreement or if Hill voluntarily terminates his services,
then the non-competition restriction ends one year following the effective date of termination of Hill's services under this Agreement
;
|
(ii) |
The Company's Termination at Anniversary
. If this Agreement is terminated by the Company in accord with the provisions of Section 1.2(b) of this Agreement,
then the non-competition restriction ends on the effective date of termination of Hill's services under this Agreement
;
|
(iii) |
Termination "For Cause"
. If the Company terminates this Agreement "For Cause" in accord with Section 6 of this Agreement,
then the non-competition restriction ends on the effective date of termination of Hill's services under this Agreement
; or
|
(iv) |
Termination "Without Cause" and "For Good Reason"
. If this Agreement is terminated "Without Cause" or "For Good Reason" in accord with either Section 7.1 or 8.1 above,
then the non-competition restriction ends on the effective date of termination of Hill's services under this Agreement
.
|
(i) |
Exception
. The foregoing shall not preclude a Court from ordering Hill to repay such payments made to him for the period after the breach is determined to have occurred or from ordering that payments under this Agreement be permanently terminated in the event of a material and willful breach.
|
16. |
Successions.
|
17. |
Notices.
|
18. |
General Provisions.
|
REPUBLIC FIRST BANCORP, INC.
|
|||
(Corporate Seal)
|
By:
|
/s/ Harry D. Madonna | |
Attest:
|
/s/ Kemma Brown | ||
/s/ Vernon W. Hill, II |
(SEAL)
|
||
VERNON W. HILL, II
|
Exhibit 21.1
|
|||||
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
|
||||
Tel: 717-233-8800
Fax: 717-233-8801
www.bdo.com
|
945 E. Park Drive, Suite 103
Harrisburg, PA 17111
|
1. |
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2016 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
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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):
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(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
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(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.
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Date: March 10, 2017
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/s/ Harry D. Madonna
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President and Chief Executive Officer
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1. |
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2016 of Republic First Bancorp, Inc.;
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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;
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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;
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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:
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(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;
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(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;
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(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
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(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
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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
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(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.
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Date: March 10, 2017
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/s/ Frank A. Cavallaro
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||
Executive Vice President and Chief Financial Officer
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(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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Date: March 10, 2017
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/s/ Harry D. Madonna
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President and Chief Executive Officer
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(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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Date: March 10, 2017
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/s/ Frank A. Cavallaro
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Executive Vice President and Chief Financial Officer
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