Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 21, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'REPUBLIC FIRST BANCORP INC | ' | ' |
Entity Central Index Key | '0000834285 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $60,051,330 |
Entity Common Stock, Shares Outstanding | ' | 25,972,897 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $12,525 | $9,097 |
Interest bearing deposits with banks | 23,355 | 118,907 |
Cash and cash equivalents | 35,880 | 128,004 |
Investment securities available for sale, at fair value | 204,891 | 189,259 |
Investment securities held to maturity, at amortized cost (fair value of $21 and $69, respectively) | 21 | 67 |
Restricted stock, at cost | 1,570 | 3,816 |
Loans held for sale | 4,931 | 82 |
Loans receivable (net of allowance for loan losses of $12,263 and $9,542, respectively) | 667,048 | 608,359 |
Premises and equipment, net | 22,748 | 21,976 |
Other real estate owned, net | 4,059 | 8,912 |
Accrued interest receivable | 3,049 | 3,128 |
Bank owned life insurance | 0 | 10,490 |
Other assets | 17,468 | 14,565 |
Total Assets | 961,665 | 988,658 |
Deposits | ' | ' |
Demand - non-interest bearing | 157,806 | 145,407 |
Demand - interest bearing | 230,221 | 180,440 |
Money market and savings | 402,671 | 440,120 |
Time deposits | 78,836 | 123,234 |
Total Deposits | 869,534 | 889,201 |
Accrued interest payable | 237 | 301 |
Other liabilities | 6,519 | 6,778 |
Subordinated debt | 22,476 | 22,476 |
Total Liabilities | 898,766 | 918,756 |
Shareholders' Equity | ' | ' |
Preferred stock, par value $0.01 per share: 10,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, par value $0.01 per share: 50,000,000 shares authorized; shares issued 26,501,742 | 265 | 265 |
Additional paid in capital | 107,078 | 106,753 |
Accumulated deficit | -37,708 | -34,228 |
Treasury stock at cost (416,303 shares) | -3,099 | -3,099 |
Stock held by deferred compensation plan (112,542 shares) | -809 | -809 |
Accumulated other comprehensive income (loss) | -2,828 | 1,020 |
Total Shareholders' Equity | 62,899 | 69,902 |
Total Liabilities and Shareholders' Equity | $961,665 | $988,658 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Investments securities held to maturity at fair value | $21 | $69 |
Net of allowance for loan losses | $12,263 | $9,542 |
Shareholders' Equity | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 26,501,742 | 26,501,742 |
Treasury stock, shares (in shares) | 416,303 | 416,303 |
Stock held by deferred compensation plan (in shares) | 112,542 | 112,542 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income: | ' | ' | ' |
Interest and fees on taxable loans | $31,986 | $32,326 | $32,954 |
Interest and fees on tax-exempt loans | 349 | 265 | 301 |
Interest and dividends on taxable investment securities | 4,435 | 4,899 | 4,416 |
Interest and dividends on tax-exempt investment securities | 250 | 470 | 457 |
Interest on federal funds sold and other interest-earning assets | 185 | 300 | 145 |
Total interest income | 37,205 | 38,260 | 38,273 |
Interest expense: | ' | ' | ' |
Demand- interest bearing | 825 | 796 | 590 |
Money market and savings | 1,786 | 2,718 | 3,457 |
Time deposits | 867 | 1,718 | 3,017 |
Other borrowings | 1,112 | 1,134 | 1,135 |
Total interest expense | 4,590 | 6,366 | 8,199 |
Net interest income | 32,615 | 31,894 | 30,074 |
Provision (credit) for loan losses | 4,935 | 1,350 | 15,966 |
Net interest income after provision for loan losses | 27,680 | 30,544 | 14,108 |
Non-interest income: | ' | ' | ' |
Loan advisory and servicing fees | 1,615 | 1,251 | 480 |
Gain on sales of SBA loans | 5,338 | 5,531 | 5,263 |
Service fees on deposit accounts | 1,046 | 922 | 768 |
Legal settlements | 238 | 155 | 2,780 |
Gain on sale of investment securities | 703 | 737 | 640 |
Other-than-temporary impairment losses | 0 | -35 | -49 |
Portion recognized in other comprehensive income (before taxes) | 0 | 1 | 7 |
Net impairment loss on investment securities | 0 | -34 | -42 |
Bank owned life insurance income | 13 | 73 | 137 |
Other non-interest income | 263 | 193 | 555 |
Total non-interest income | 9,216 | 8,828 | 10,581 |
Non-interest expenses: | ' | ' | ' |
Salaries and employee benefits | 17,064 | 16,512 | 15,197 |
Occupancy | 3,635 | 3,454 | 3,336 |
Depreciation and amortization | 2,105 | 2,006 | 2,107 |
Legal | 1,878 | 2,966 | 1,948 |
Other real estate owned | 3,179 | 763 | 7,301 |
Advertising | 447 | 307 | 334 |
Data processing | 1,000 | 1,187 | 1,163 |
Insurance | 625 | 654 | 829 |
Professional fees | 1,420 | 1,106 | 1,600 |
Regulatory assessments and costs | 1,257 | 1,367 | 1,913 |
Taxes, other | 557 | 594 | 862 |
Legal settlement | 1,875 | 0 | 0 |
Other operating expenses | 5,369 | 4,986 | 4,610 |
Total non-interest expense | 40,411 | 35,902 | 41,200 |
Income (loss) before provision (benefit) for income taxes | -3,515 | 3,470 | -16,511 |
Provision (benefit) for income taxes | -35 | -144 | 8,191 |
Net income (loss) | ($3,480) | $3,614 | ($24,702) |
Net income (loss) per share: | ' | ' | ' |
Basic (in dollars per share) | ($0.13) | $0.14 | ($0.95) |
Diluted (in dollars per share) | ($0.13) | $0.14 | ($0.95) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Net income (loss) | ($3,480) | $3,614 | ($24,702) |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Unrealized gain (loss) on securities (pre-tax $(5,301), $2,368 and $2,233, respectively) | -3,398 | 1,517 | 1,437 |
Reclassification adjustment for securities gains (pre-tax $703, $737 and $640, respectively) | -450 | -472 | -416 |
Reclassification adjustment for impairment charge (pre-tax $-, $34 and $42, respectively) | 0 | 22 | 27 |
Total other comprehensive income (loss) | -3,848 | 1,067 | 1,048 |
Total comprehensive income (loss) | ($7,328) | $4,681 | ($23,654) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Other Comprehensive Income, (Loss) Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | ($5,301) | $2,368 | $2,233 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | 703 | 737 | 640 |
Other Comprehensive Income, Reclassification Adjustment for Write-down of Securities Included in Net Income, before Tax | $0 | $34 | $42 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income (loss) | ($3,480) | $3,614 | ($24,702) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | 4,935 | 1,350 | 15,966 |
(Gain) loss on sale of other real estate owned | -68 | 10 | 4,804 |
Write down of other real estate owned | 2,567 | 130 | 1,299 |
Depreciation and amortization | 2,105 | 2,006 | 2,107 |
Deferred | -304 | -225 | 8,262 |
Stock based compensation | 325 | 370 | 359 |
Gain on sale of investment securities | -703 | -737 | -640 |
Impairment charges on investment securities | 0 | 34 | 42 |
Amortization of premiums on investment securities | 731 | 440 | 75 |
Proceeds from sales of SBA loans originated for sale | 57,939 | 56,983 | 56,748 |
SBA loans originated for sale | -57,450 | -50,609 | -52,410 |
Gains on sales of SBA loans originated for sale | -5,338 | -5,531 | -5,263 |
Increase in value of bank owned life insurance | -13 | -73 | -137 |
Net (increase) decrease in accrued interest receivable and other assets | -363 | -222 | 1,734 |
Decrease in accrued interest payable and other liabilities | -323 | -336 | -330 |
Net cash provided by operating activities | 560 | 7,204 | 7,914 |
Cash flows from investing activities | ' | ' | ' |
Purchase of investment securities available for sale | -62,544 | -72,464 | -80,987 |
Proceeds from the sale of securities available for sale | 7,946 | 25,784 | 34,277 |
Proceeds from the maturity or call of securities available for sale | 32,931 | 33,670 | 17,969 |
Proceeds from the maturity or call of securities held to maturity | 48 | 75 | 7 |
Proceeds from redemption of FHLB stock | 2,246 | 1,505 | 1,180 |
Net increase in loans | -63,870 | -35,174 | -13,865 |
Proceeds from sale of loans | 0 | 0 | 22,576 |
Net proceeds from sale of other real estate owned | 2,600 | 334 | 9,447 |
Proceeds from death benefit on bank owned life insurance | 0 | ' | ' |
Surrender proceeds on bank owned life insurance | 10,503 | 0 | 0 |
Premises and equipment expenditures | -2,877 | -475 | -584 |
Net cash used in investing activities | -73,017 | -46,745 | -7,705 |
Cash flow from financing activities | ' | ' | ' |
Net increase in demand, money market and savings deposits | 24,731 | 30,297 | 211,067 |
Net decrease in time deposits | -44,398 | -93,707 | -16,186 |
Net cash (used in) provided by financing activities | -19,667 | -63,410 | 194,881 |
Net (decrease) increase in cash and cash equivalents | -92,124 | -102,951 | 195,090 |
Cash and cash equivalents, beginning of year | 128,004 | 230,955 | 35,865 |
Cash and cash equivalents, end of year | 35,880 | 128,004 | 230,955 |
Supplemental disclosures: | ' | ' | ' |
Interest paid | 4,654 | 7,114 | 8,103 |
Income taxes paid | 235 | 0 | 0 |
Non-cash transfers from loans to other real estate owned | $246 | $2,907 | $6,792 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Stock Held by Deferred Compensation Plan [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands | |||||||
Shareholders' equity, beginning of year at Dec. 31, 2010 | $265 | $106,024 | ($13,140) | ($3,099) | ($809) | ($1,095) | $88,146 |
Net income (loss) | ' | ' | -24,702 | ' | ' | ' | -24,702 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | 1,048 | 1,048 |
Stock based compensation | ' | 359 | ' | ' | ' | ' | 359 |
Shareholders' equity, end of year at Dec. 31, 2011 | 265 | 106,383 | -37,842 | -3,099 | -809 | -47 | 64,851 |
Net income (loss) | ' | ' | 3,614 | ' | ' | ' | 3,614 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | 1,067 | 1,067 |
Stock based compensation | ' | 370 | ' | ' | ' | ' | 370 |
Shareholders' equity, end of year at Dec. 31, 2012 | 265 | 106,753 | -34,228 | -3,099 | -809 | 1,020 | 69,902 |
Net income (loss) | ' | ' | -3,480 | ' | ' | ' | -3,480 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | -3,848 | -3,848 |
Stock based compensation | ' | 325 | ' | ' | ' | ' | 325 |
Shareholders' equity, end of year at Dec. 31, 2013 | $265 | $107,078 | ($37,708) | ($3,099) | ($809) | ($2,828) | $62,899 |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |
Dec. 31, 2013 | ||
Nature of Operations [Abstract] | ' | |
Nature of Operations | ' | |
1 | Nature of Operations | |
Republic First Bancorp, Inc. (“The Company”) is a one-bank holding company organized and incorporated under the laws of the Commonwealth of Pennsylvania. It is comprised of one wholly-owned subsidiary, Republic First Bank, which does business under the name of Republic Bank (“Republic”). Republic is a Pennsylvania state chartered bank that offers a variety of banking services to individuals and businesses throughout the Greater Philadelphia and South Jersey area through its offices and store locations in Philadelphia, Montgomery, Delaware and Camden Counties. The Company also has three unconsolidated subsidiaries, which are statutory trusts established by the Company in connection with its sponsorship of three separate issuances of trust preferred securities. | ||
The Company and Republic encounter vigorous competition for market share in the geographic areas they serve from bank holding companies, national, regional and other community banks, thrift institutions, credit unions and other non-bank financial organizations, such as mutual fund companies, insurance companies and brokerage companies. | ||
The Company and Republic are subject to federal and state regulations governing virtually all aspects of their activities, including but not limited to, lines of business, liquidity, investments, the payment of dividends and others. Such regulations and the cost of adherence to such regulations can have a significant impact on earnings and financial condition. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2 | Summary of Significant Accounting Policies | ||||||||||||
Basis of Presentation | |||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Republic. The Company follows accounting standards set by the Financial Accounting Standards Board (“FASB”). The FASB sets accounting principles generally accepted in the United States of America (“US GAAP”) that are followed to ensure consistent reporting of financial condition, results of operations, and cash flows. | |||||||||||||
The Company has evaluated subsequent events through the date of issuance of the financial data included herein. | |||||||||||||
Risks and Uncertainties and Certain Significant Estimates | |||||||||||||
The earnings of the Company depend primarily on the earnings of Republic. The earnings of Republic are dependent primarily upon the level of net interest income, which is the difference between interest earned on its interest-earning assets, such as loans and investments, and the interest paid on its interest-bearing liabilities, such as deposits and borrowings. Accordingly, our results of operations are subject to risks and uncertainties surrounding our exposure to changes in the interest rate environment. | |||||||||||||
Prepayments on residential real estate mortgage and other fixed rate loans and mortgage-backed securities vary significantly and may cause significant fluctuations in interest margins. | |||||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Significant estimates are made by management in determining the allowance for loan losses, carrying values of other real estate owned, assessment of other than temporary impairment (“OTTI”) of investment securities, fair value of financial instruments and the realization of deferred income tax assets. Consideration is given to a variety of factors in establishing these estimates. | |||||||||||||
In estimating the allowance for loan losses, management considers current economic conditions, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews, borrowers’ perceived financial and managerial strengths, the adequacy of underlying collateral, if collateral dependent, or present value of future cash flows, and other relevant factors. An estimate for the carrying value of other real estate owned is normally derived through appraisals which are updated on a regular basis or through agreements of sale that have been negotiated. Because the allowance for loan losses and carrying value of other real estate owned are dependent, to a great extent, on the general economy and other conditions that may be beyond the Company’s control, the estimate of the allowance for loan losses and the carrying values of other real estate owned could differ materially in the near term. | |||||||||||||
In estimating OTTI of investment securities, securities are evaluated on at least a quarterly basis and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other than temporary. To determine whether a loss in value is other than temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline, the intent to hold the security and the likelihood of the Company not being required to sell the security prior to an anticipated recovery in the fair value. The term “other than temporary” is not intended to indicate that the decline is permanent, but indicates that the prospect for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced by the portion of the decline related to credit impairment. | |||||||||||||
In evaluating the Company’s ability to recover deferred tax assets, management considers all available positive and negative evidence. Management also makes assumptions on the amount of future taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require management to make judgments that are consistent with the plans and estimates used to manage the Company’s business. As a result of cumulative losses in recent years and the slow and uneven growth in the current economic environment, the Company has decided to currently exclude future taxable income from its analysis of the ability to recover deferred tax assets and has recorded a valuation allowance against its deferred tax assets. An increase or decrease in the valuation allowance would result in an adjustment to income tax expense in the period and could have a significant impact on the Company’s future earnings. | |||||||||||||
Significant Group Concentrations of Credit Risk | |||||||||||||
Most of the Company’s activities are with customers located within the Greater Philadelphia region. Note 3 – Investment Securities discusses the types of investment securities that the Company invests in. Note 4 – Loans Receivable discusses the types of lending that the Company engages in as well as loan concentrations. The Company does not have a significant concentration of credit risk with any one customer. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
For purposes of the statements of cash flows, the Company considers all cash and due from banks, interest-bearing deposits with an original maturity of ninety days or less and federal funds sold, maturing in ninety days or less, to be cash and cash equivalents. | |||||||||||||
Restrictions on Cash and Due from Banks | |||||||||||||
Republic is required to maintain certain average reserve balances as established by the Federal Reserve Board. The amounts of those balances for the reserve computation periods that include December 31, 2013 and 2012 were approximately $3.1 million and $1.6 million, respectively. These requirements were satisfied through the restriction of vault cash and a balance at the Federal Reserve Bank of Philadelphia. | |||||||||||||
Investment Securities | |||||||||||||
Held to Maturity – Certain debt securities that management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at their remaining unpaid principal balances, net of unamortized premiums or unaccreted discounts. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. | |||||||||||||
Available for Sale – Debt and equity securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity, and changes in the availability of and in the yield of alternative investments, are classified as available for sale. These assets are carried at fair value. Unrealized gains and losses are excluded from operations and are reported net of tax as a separate component of other comprehensive income until realized. Realized gains and losses on the sale of investment securities are reported in the consolidated statements of operations and determined using the adjusted cost of the specific security sold on the trade date. | |||||||||||||
Investment securities are evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. To determine whether a loss in value is other-than-temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline, the intent to hold the security and the likelihood of the Company not being required to sell the security prior to an anticipated recovery in the fair value. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the portion of the decline related to credit impairment is charged to earnings. Impairment charges on bank pooled trust preferred securities of $0, $34,000, and $42,000 were recognized during the years ended December 31, 2013, 2012 and 2011, respectively, as a result of estimated other-than-temporary impairment. | |||||||||||||
Restricted Stock | |||||||||||||
Restricted stock, which represents a required investment in the capital stock of correspondent banks related to available credit facilities, was carried at cost as of December 31, 2013 and 2012. As of those dates, restricted stock consisted of investments in the capital stock of the FHLB of Pittsburgh and Atlantic Central Bankers Bank (“ACBB”). The required investment in the capital stock of the FHLB is calculated based on outstanding loan balances and open credit facilities with the FHLB. Excess investments are returned to Republic on a quarterly basis. In December 2009, the FHLB notified member banks that it was temporarily suspending the repurchase of capital stock along with all dividend payments. In October 2010, the FHLB of Pittsburgh lifted this suspension and began partial repurchases of excess investments in its capital stock. During 2013 the FHLB of Pittsburgh repurchased all excess restricted stock outstanding and made regular quarterly dividend payments. | |||||||||||||
Loans Receivable | |||||||||||||
The loans receivable portfolio is segmented into commercial real estate loans, construction and land development loans, commercial and industrial loans, owner occupied real estate loans, consumer and other loans, and residential mortgages. Consumer loans consist of home equity loans and other consumer loans. | |||||||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated based upon the principal amounts outstanding. The Company defers and amortizes certain origination and commitment fees, and certain direct loan origination costs over the contractual life of the related loan. This results in an adjustment of the related loans yield. | |||||||||||||
The Company accounts for amortization of premiums and accretion of discounts related to loans purchased based upon the effective interest method. If a loan prepays in full before the contractual maturity date, any unamortized premiums, discounts or fees are recognized immediately as an adjustment to interest income. | |||||||||||||
Loans are generally classified as non-accrual if they are past due as to maturity or payment of principal or interest for a period of more than 90 days, unless such loans are well-secured and in the process of collection. Loans that are on a current payment status or past due less than 90 days may also be classified as non-accrual if repayment in full of principal and/or interest is in doubt. Loans may be returned to accrual status when all principal and interest amounts contractually due are reasonably assured of repayment within an acceptable period of time, and there is a sustained period of repayment performance of interest and principal by the borrower, in accordance with the contractual terms. Generally, in the case of non-accrual loans, cash received is applied to reduce the principal outstanding. | |||||||||||||
Allowance for Credit Losses | |||||||||||||
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments would represent management’s estimate of losses inherent in its unfunded loan commitments and would be recorded in other liabilities on the consolidated balance sheet, if necessary. The allowance for credit losses is established through a provision for loan losses charged to operations. Loans are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged off are credited to the allowance. | |||||||||||||
The allowance for credit losses is an amount that represents management’s estimate of known and inherent losses related to the loan portfolio and unfunded loan commitments. Because the allowance for credit losses is dependent, to a great extent, on the general economy and other conditions that may be beyond Republic’s control, the estimate of the allowance for credit losses could differ materially in the near term. | |||||||||||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are categorized as “internally classified”. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All identified losses are immediately charged off and therefore no portion of the allowance for loan losses is restricted to any individual loan or group of loans, and the entire allowance is available to absorb any and all loan losses. | |||||||||||||
In estimating the allowance for credit losses, management considers current economic conditions, past loss experience, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews and regulatory examinations, borrowers’ perceived financial and managerial strengths, the adequacy of underlying collateral, if collateral dependent, or present value of future cash flows, and other relevant and qualitative risk factors. These qualitative risk factors include: | |||||||||||||
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. | ||||||||||||
Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. | |||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment, include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | |||||||||||||
An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. | |||||||||||||
For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. | |||||||||||||
For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. | |||||||||||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | |||||||||||||
Loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. | |||||||||||||
The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. | |||||||||||||
In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. | |||||||||||||
Transfers of Financial Assets | |||||||||||||
The Company accounts for the transfers and servicing financial assets in accordance with ASC 860, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. ASC 860, revises the standards for accounting for the securitizations and other transfers of financial assets and collateral. | |||||||||||||
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||
Loans Held for Sale | |||||||||||||
Loans held for sale consist of the guaranteed portion of SBA loans that the Company intends to sell after origination and are reflected at the lower of aggregate cost or fair value. When the sale of the loan occurs, the premium received is combined with the estimated present value of future cash flows on the related servicing asset and recorded as a Gain on the Sale of SBA loans which is categorized as non-interest income. Subsequent fees collected for servicing of the sold portion of a loan are combined with fair value adjustments to the SBA servicing asset and recorded as a net amount in Loan Advisory and Servicing Fees, which is also categorized as non-interest income. | |||||||||||||
Guarantees | |||||||||||||
The Company accounts for guarantees in accordance with ASC 815 Guarantor’s Accounting and Disclosure Requirements for Guarantees, including Indirect Guarantees of Indebtedness of Others. ASC 815 requires a guarantor entity, at the inception of a guarantee covered by the measurement provisions of the interpretation, to record a liability for the fair value of the obligation undertaken in issuing the guarantee. The Company has financial and performance letters of credit. Financial letters of credit require the Company to make payment if the customer’s financial condition deteriorates, as defined in the agreements. Performance letters of credit require the Company to make payments if the customer fails to perform certain non-financial contractual obligations. The maximum potential undiscounted amount of future payments of these letters of credit as of December 31, 2013 is $2.7 million and they expire as follows: $2.3 million in 2014 and $385,000 in 2019. Amounts due under these letters of credit would be reduced by any proceeds that the Company would be able to obtain in liquidating the collateral for the loans, which varies depending on the customer. | |||||||||||||
Premises and Equipment | |||||||||||||
Premises and equipment (including land) are stated at cost less accumulated depreciation and amortization. Depreciation of furniture and equipment is calculated over the estimated useful life of the asset using the straight-line method for financial reporting purposes, and accelerated methods for income tax purposes. The estimated useful lives are 40 years for buildings and 3 to 13 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of their estimated useful lives or terms of their respective leases, which range from 1 to 30 years. Repairs and maintenance are charged to current operations as incurred, and renewals and major improvements are capitalized. | |||||||||||||
Other Real Estate Owned | |||||||||||||
Other real estate owned consists of assets acquired through, or in lieu of, loan foreclosure. They are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less the cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from other real estate owned. | |||||||||||||
Bank Owned Life Insurance | |||||||||||||
The Company carries no investment in bank owned life insurance (“BOLI”) policies as of December 31, 2013. | |||||||||||||
Advertising Costs | |||||||||||||
It is the Company’s policy to expense advertising costs in the period in which they are incurred. | |||||||||||||
Income Taxes | |||||||||||||
Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities and enacted changes in tax rates and laws are recognized in the period in which they occur. | |||||||||||||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||||||
The Company accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. | |||||||||||||
The Company recognizes interest and penalties on income taxes, if any, as a component of the provision for income taxes. | |||||||||||||
Stock Based Compensation | |||||||||||||
The Company has a Stock Option and Restricted Stock Plan (“Plan”), under which stock options, restricted stock or stock appreciation rights may be granted to the Company’s employees, directors, and certain consultants. Under the terms of the Plan, 1.5 million shares of common stock, plus an annual increase equal to the number of shares needed to restore the maximum number of shares that may be available for grant under the Plan to 1.5 million shares, are available for such grants. As of December 31, 2013, the only grants under the Plan have been option grants. The Plan provides that the exercise price of each option granted equals the market price of the Company’s stock on the date of grant. Options granted pursuant to the Plan vest within one to four years from the date of grant and have a maximum term of 10 years. | |||||||||||||
Earnings Per Share | |||||||||||||
Earnings per share (“EPS”) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income (loss) by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of common shares outstanding plus dilutive common stock equivalents (“CSE”). CSEs consist of dilutive stock options granted through the Company’s Plan and convertible securities related to trust preferred securities issued in 2008. In the diluted EPS computation, the after tax interest expense on the trust preferred securities issuance is added back to the net income. In 2013, 2012 and 2011, the effect of CSEs (convertible securities related to the trust preferred securities only) and the related add back of after tax interest expense was considered anti-dilutive and therefore was not included in the EPS calculations. | |||||||||||||
The calculation of EPS for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
(dollars in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Net income (loss) - basic and diluted | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Weighted average shares outstanding | 25,973 | 25,973 | 25,973 | ||||||||||
Net income (loss) per share – basic | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | |||||
Weighted average shares outstanding (including dilutive CSEs) | 25,973 | 25,992 | 25,973 | ||||||||||
Net income (loss) per share – diluted | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | |||||
Comprehensive Income / (Loss) | |||||||||||||
The Company presents as a component of comprehensive income (loss) the amounts from transactions and other events, which currently are excluded from the consolidated statements of operations and are recorded directly to shareholders’ equity. These amounts consist of unrealized holding gains (losses) on available for sale securities. | |||||||||||||
Trust Preferred Securities | |||||||||||||
The Company has sponsored three outstanding issues of corporation-obligated mandatorily redeemable capital securities of a subsidiary trust holding solely junior subordinated debentures of the corporation, more commonly known as trust preferred securities. The subsidiary trusts are not consolidated with the Company for financial reporting purposes. The purpose of the issuances of these securities was to increase capital. The trust preferred securities qualify as Tier 1 capital for regulatory purposes in amounts up to 25% of total Tier 1 capital. See Note 7 "Borrowings" for further information regarding the issuances. | |||||||||||||
Variable Interest Entities | |||||||||||||
The Company follows the guidance under ASC 810, Consolidation, with regard to variable interest entities. ASC 810 clarifies the application of consolidation principles for certain legal entities in which voting rights are not effective in identifying the investor with the controlling financial interest. An entity is subject to consolidation under ASC 810 if the investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity’s activities, or are not exposed to the entity’s losses or entitled to its residual returns ("variable interest entities"). Variable interest entities within the scope of ASC 810 will be required to be consolidated by their primary beneficiary. The primary beneficiary of a variable interest entity is determined to be the party that absorbs a majority of the entity's expected losses, receives a majority of its expected returns, or both. | |||||||||||||
The Company does not consolidate its subsidiary trusts. ASC 810 precludes consideration of the call option embedded in the preferred securities when determining if the Company has the right to a majority of the trusts’ expected residual returns. The non-consolidation results in the investment in the common securities of the trusts to be included in other assets with a corresponding increase in outstanding debt of $676,000. In addition, the income received on the Company’s investment in the common securities of the trusts is included in other income. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
ASU 2014-04 | |||||||||||||
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructuring by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure – a consensus of the FASB Emerging Issues Task Force. The guidance clarifies when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized. For public business entities, the ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. The Company does not believe the adoption of the amendment to this guidance will have a material impact on the financial statements. | |||||||||||||
ASU 2013-02 | |||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Comprehensive Income.” The amendments in this ASU are intended to improve the reporting of reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account instead of directly to income or expense in the same reporting period. The ASU was effective for public entities for reporting periods beginning after December 15, 2012 and did not have a material impact on the Company’s financial statements. | |||||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to 2012 and 2011 information to conform to the 2013 presentation. The reclassifications had no effect on results of operations. | |||||||||||||
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
3 | Investment Securities | ||||||||||||||||||||||||
A summary of the amortized cost and market value of securities available for sale and securities held to maturity at December 31, 2013 and 2012 is as follows: | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair | ||||||||||||||||||||||
Value | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 127,242 | $ | 665 | $ | (4,467 | ) | $ | 123,440 | ||||||||||||||||
Mortgage-backed securities | 15,669 | 623 | (111 | ) | 16,181 | ||||||||||||||||||||
Municipal securities | 9,737 | 68 | (162 | ) | 9,643 | ||||||||||||||||||||
Corporate bonds | 32,174 | 1,079 | - | 33,253 | |||||||||||||||||||||
Asset-backed securities | 19,089 | 318 | - | 19,407 | |||||||||||||||||||||
Trust preferred securities | 5,277 | - | (2,427 | ) | 2,850 | ||||||||||||||||||||
Other securities | 115 | 2 | - | 117 | |||||||||||||||||||||
Total securities available for sale | $ | 209,303 | $ | 2,755 | $ | (7,167 | ) | $ | 204,891 | ||||||||||||||||
U.S. Government agencies | $ | 1 | $ | - | $ | - | $ | 1 | |||||||||||||||||
Other securities | 20 | - | - | 20 | |||||||||||||||||||||
Total securities held to maturity | $ | 21 | $ | - | $ | - | $ | 21 | |||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair | ||||||||||||||||||||||
Value | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 97,959 | $ | 1,830 | $ | (6 | ) | $ | 99,783 | ||||||||||||||||
Mortgage-backed securities | 20,626 | 1,014 | - | 21,640 | |||||||||||||||||||||
Municipal securities | 11,150 | 967 | (16 | ) | 12,101 | ||||||||||||||||||||
Corporate bonds | 32,231 | 639 | (185 | ) | 32,685 | ||||||||||||||||||||
Asset-backed securities | 19,785 | 135 | (191 | ) | 19,729 | ||||||||||||||||||||
Trust preferred securities | 5,785 | - | (2,598 | ) | 3,187 | ||||||||||||||||||||
Other securities | 131 | 3 | - | 134 | |||||||||||||||||||||
Total securities available for sale | $ | 187,667 | $ | 4,588 | $ | (2,996 | ) | $ | 189,259 | ||||||||||||||||
U.S. Government agencies | $ | 1 | $ | - | $ | - | $ | 1 | |||||||||||||||||
Other securities | 66 | 2 | - | 68 | |||||||||||||||||||||
Total securities held to maturity | $ | 67 | $ | 2 | $ | - | $ | 69 | |||||||||||||||||
The maturity distribution of the amortized cost and estimated market value of investment securities by contractual maturity at December 31, 2013 is as follows: | |||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Due in 1 year or less | $ | 1,192 | $ | 1,195 | $ | - | $ | - | |||||||||||||||||
After 1 year to 5 years | 74,270 | 74,351 | 21 | 21 | |||||||||||||||||||||
After 5 years to 10 years | 123,418 | 118,653 | - | - | |||||||||||||||||||||
After 10 years | 10,423 | 10,692 | - | - | |||||||||||||||||||||
Total | $ | 209,303 | $ | 204,891 | $ | 21 | $ | 21 | |||||||||||||||||
Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, the collateralized mortgage obligations and mortgage backed securities included in the investment securities portfolio consist solely of securities issued by U.S. government sponsored agencies. There were no private label mortgage securities held in the investment securities portfolio as of those dates. The Company did not hold any mortgage-backed securities that were rated “Alt-A” or “Subprime” as of December 31, 2013 and December 31, 2012. In addition, the Company did not hold any private label CMO’s as of December 31, 2013 and December 31, 2012. As of December 31, 2013 and December 31, 2012, the asset-backed securities held in the investment securities portfolio consist solely of Sallie Mae bonds collateralized by student loans which are guaranteed by the U.S. Department of Education. | |||||||||||||||||||||||||
In instances when a determination is made that an other-than-temporary impairment exists with respect to a debt security but the investor does not intend to sell the debt security and it is more likely than not that the investor will not be required to sell the debt security prior to its anticipated recovery, accounting standards require the other-than-temporary impairment to be separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income. There were no impairment charges (credit losses) on trust preferred securities for the year ended December 31, 2013. Impairment charges (credit losses) on trust preferred securities for the years ended December 31, 2012 and 2011 amounted to $34,000 and $42,000, respectively. | |||||||||||||||||||||||||
The Company realized gross gains on the sale of securities of $703,000 in 2013. The related sale proceeds amounted to $7.9 million. The tax provision applicable to these gross gains in 2013 amounted to approximately $253,000. The Company realized gross gains on the sale of securities of $737,000 in 2012. The related sale proceeds amounted to $25.8 million. The tax provision applicable to these gross gains in 2012 amounted to approximately $265,000. The Company realized gross gains on the sale of securities of $640,000 in 2011. The related sale proceeds amounted to $34.3 million. The tax provision applicable to these gross gains in 2011 amounted to approximately $224,000. | |||||||||||||||||||||||||
At December 31, 2013 and 2012, investment securities in the amount of approximately $113.1 million and $100.8 million, respectively, were pledged as collateral for public deposits and certain other deposits as required by law. | |||||||||||||||||||||||||
The following table presents a roll-forward of the balance of credit-related impairment losses on securities held at December 31, 2013 and 2012 for which a portion of OTTI was recognized in other comprehensive income: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Beginning Balance, January 1st | $ | 3,959 | $ | 3,925 | |||||||||||||||||||||
Additional credit-related impairment loss on securities for which an | |||||||||||||||||||||||||
other-than-temporary impairment was previously recognized | - | 34 | |||||||||||||||||||||||
Reductions for securities paid off during the period | - | - | |||||||||||||||||||||||
Reductions for securities for which the amount previously recognized in other | |||||||||||||||||||||||||
comprehensive income was recognized in earnings because the Company | |||||||||||||||||||||||||
intends to sell the security | - | - | |||||||||||||||||||||||
Ending Balance, December 31st | $ | 3,959 | $ | 3,959 | |||||||||||||||||||||
The following tables show the fair value and gross unrealized losses associated with the investment portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | ||||||||||||||||||||
(dollars in thousands) | Value | Value | Value | ||||||||||||||||||||||
Collateralized mortgage obligations | $ | 73,137 | $ | 3,923 | $ | 8,697 | $ | 544 | $ | 81,834 | $ | 4,467 | |||||||||||||
Mortgage-backed securities | 1,450 | 41 | 1,123 | 70 | 2,573 | 111 | |||||||||||||||||||
Municipal securities | 5,108 | 162 | - | - | 5,108 | 162 | |||||||||||||||||||
Corporate bonds | - | - | - | - | - | - | |||||||||||||||||||
Trust preferred securities | - | - | 2,850 | 2,427 | 2,850 | 2,427 | |||||||||||||||||||
Total | $ | 79,695 | $ | 4,126 | $ | 12,670 | $ | 3,041 | $ | 92,365 | $ | 7,167 | |||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | ||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Collateralized mortgage obligations | $ | 9,991 | $ | 6 | $ | - | $ | - | $ | 9,991 | $ | 6 | |||||||||||||
Municipal securities | 1,050 | 16 | - | - | 1,050 | 16 | |||||||||||||||||||
Corporate bonds | - | - | 9,811 | 185 | 9,811 | 185 | |||||||||||||||||||
Asset-backed securities | 9,218 | 191 | - | - | 9,218 | 191 | |||||||||||||||||||
Trust preferred securities | - | - | 3,187 | 2,598 | 3,187 | 2,598 | |||||||||||||||||||
Total | $ | 20,259 | $ | 213 | $ | 12,998 | $ | 2,783 | $ | 33,257 | $ | 2,996 | |||||||||||||
The impairment of the investment portfolio totaled $7.2 million with a total fair value of $92.4 million at December 31, 2013. The most significant components of this impairment are related to the collateralized mortgage obligations and trust preferred securities held in the portfolio. The unrealized losses on the CMO’s are primarily related to the recent movement in market interest rates rather than the underlying credit quality of the issuers. The Company does not currently intend to sell these securities prior to maturity or recovering the cost bases and does not believe it will be forced to sell these securities prior to maturity or recovering the cost bases. | |||||||||||||||||||||||||
At December 31, 2013, the investment portfolio included twenty-five collateralized mortgage obligations with a total market value of $123.4 million. Seventeen of these securities carried an unrealized loss at December 31, 2013. At December 31, 2013, the investment portfolio included forty-two mortgage-backed securities with a total market value of $16.2 million. Two of these securities carried an unrealized loss at December 31, 2013. Management found no evidence of OTTI on any of these securities and the unrealized losses are due to changes in market value resulting from changes in market interest rates and are considered temporary as of December 31, 2013. | |||||||||||||||||||||||||
The unrealized losses on the trust preferred securities are primarily the result of the secondary market for such securities becoming inactive and are also considered temporary at this time. | |||||||||||||||||||||||||
The following table provides additional detail about trust preferred securities as of December 31, 2013. | |||||||||||||||||||||||||
(dollars in thousands) | Class / Tranche | Amortized Cost | Fair | Unrealized Losses | Lowest Credit Rating Assigned | Number of Banks Currently Performing | Deferrals / Defaults as % of Current Balance | Conditional Default Rates for 2013 and beyond | Cumulative OTTI Life to Date | ||||||||||||||||
Value | |||||||||||||||||||||||||
Preferred Term Securities IV | Mezzanine Notes | $ | 49 | $ | 39 | $ | -10 | B | 6 | 18% | 0.34% | $ | - | ||||||||||||
Preferred Term Securities VII | Mezzanine Notes | 989 | 726 | -263 | C | 11 | 54 | 0.36 | 2,173 | ||||||||||||||||
TPREF Funding II | Class B Notes | 739 | 336 | -403 | C | 17 | 41 | 0.39 | 260 | ||||||||||||||||
TPREF Funding III | Class B2 Notes | 1,520 | 696 | -824 | C | 17 | 34 | 0.31 | 480 | ||||||||||||||||
Trapeza CDO I, LLC | Class C1 Notes | 556 | 284 | -272 | C | 9 | 49 | 0.38 | 470 | ||||||||||||||||
ALESCO Preferred Funding IV | Class B1 Notes | 604 | 358 | -246 | C | 41 | 6 | 0.36 | 396 | ||||||||||||||||
ALESCO Preferred Funding V | Class C1 Notes | 820 | 411 | -409 | C | 39 | 24 | 0.36 | 180 | ||||||||||||||||
Total | $ | 5,277 | $ | 2,850 | $ | -2,427 | 140 | 38% | $ | 3,959 | |||||||||||||||
At December 31, 2013, the investment portfolio included seventeen municipal securities with a total market value of $9.6 million. Nine of these securities carried an unrealized loss at December 31, 2013. Each of the municipal securities are reviewed quarterly for impairment. Research on each issuer is completed to ensure the financial stability of the municipal entity. The largest geographic concentration was in Pennsylvania where one municipal security had a market value of $1.3 million. As of December 31, 2013, management found no evidence of OTTI on any of the municipal securities held in the investment securities portfolio. |
Loans_Receivable
Loans Receivable | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Loans Receivable [Abstract] | ' | ||||||||||||||||||||||||
Loans Receivable | ' | ||||||||||||||||||||||||
4 | Loans Receivable | ||||||||||||||||||||||||
The following table sets forth the Company’s gross loans by major categories as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Commercial real estate | $ | 342,794 | $ | 335,561 | |||||||||||||||||||||
Construction and land development | 23,977 | 26,659 | |||||||||||||||||||||||
Commercial and industrial | 118,209 | 103,768 | |||||||||||||||||||||||
Owner occupied real estate | 160,229 | 126,242 | |||||||||||||||||||||||
Consumer and other | 31,981 | 23,449 | |||||||||||||||||||||||
Residential mortgage | 2,359 | 2,442 | |||||||||||||||||||||||
Total loans receivable | 679,549 | 618,121 | |||||||||||||||||||||||
Deferred costs (fees) | (238 | ) | (220 | ) | |||||||||||||||||||||
Allowance for loan losses | (12,263 | ) | (9,542 | ) | |||||||||||||||||||||
Net loans receivable | $ | 667,048 | $ | 608,359 | |||||||||||||||||||||
A loan is considered impaired, in accordance with ASC 310 Receivables, when based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans, but also include internally classified accruing loans. | |||||||||||||||||||||||||
The following table summarizes information with regard to impaired loans by loan portfolio class as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 6,850 | $ | 6,971 | $ | - | $ | 19,231 | $ | 20,000 | $ | - | |||||||||||||
Construction and land development | 902 | 4,076 | - | 3,153 | 6,312 | - | |||||||||||||||||||
Commercial and industrial | 2,043 | 2,882 | - | 3,793 | 7,106 | - | |||||||||||||||||||
Owner occupied real estate | 542 | 862 | - | 505 | 505 | - | |||||||||||||||||||
Consumer and other | 453 | 711 | - | 912 | 1,146 | - | |||||||||||||||||||
Total | $ | 10,790 | $ | 15,502 | $ | - | $ | 27,594 | $ | 35,069 | $ | - | |||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 13,044 | $ | 13,044 | $ | 3,679 | $ | 6,085 | $ | 6,085 | $ | 1,077 | |||||||||||||
Construction and land development | 716 | 3,867 | 237 | 593 | 3,700 | 70 | |||||||||||||||||||
Commercial and industrial | 4,889 | 7,634 | 1,254 | 3,147 | 3,255 | 861 | |||||||||||||||||||
Owner occupied real estate | 2,891 | 2,891 | 430 | 3,450 | 3,450 | 860 | |||||||||||||||||||
Consumer and other | 203 | 210 | 10 | 146 | 155 | 75 | |||||||||||||||||||
Total | $ | 21,743 | $ | 27,646 | $ | 5,610 | $ | 13,421 | $ | 16,645 | $ | 2,943 | |||||||||||||
Total: | |||||||||||||||||||||||||
Commercial real estate | $ | 19,894 | $ | 20,015 | $ | 3,679 | $ | 25,316 | $ | 26,085 | $ | 1,077 | |||||||||||||
Construction and land development | 1,618 | 7,943 | 237 | 3,746 | 10,012 | 70 | |||||||||||||||||||
Commercial and industrial | 6,932 | 10,516 | 1,254 | 6,940 | 10,361 | 861 | |||||||||||||||||||
Owner occupied real estate | 3,433 | 3,753 | 430 | 3,955 | 3,955 | 860 | |||||||||||||||||||
Consumer and other | 656 | 921 | 10 | 1,058 | 1,301 | 75 | |||||||||||||||||||
Total | $ | 32,533 | $ | 43,148 | $ | 5,610 | $ | 41,015 | $ | 51,714 | $ | 2,943 | |||||||||||||
The following table presents additional information regarding the Company’s impaired loans for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 14,062 | $ | 731 | $ | 15,675 | $ | 821 | |||||||||||||||||
Construction and land development | 1,954 | 35 | 4,587 | 112 | |||||||||||||||||||||
Commercial and industrial | 2,783 | 19 | 4,366 | 128 | |||||||||||||||||||||
Owner occupied real estate | 347 | 9 | 912 | 32 | |||||||||||||||||||||
Consumer and other | 651 | 6 | 875 | 9 | |||||||||||||||||||||
Total | $ | 19,797 | $ | 800 | $ | 26,415 | $ | 1,102 | |||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 6,261 | $ | 195 | $ | 7,207 | $ | 312 | |||||||||||||||||
Construction and land development | 499 | - | 1,163 | - | |||||||||||||||||||||
Commercial and industrial | 3,881 | 40 | 3,393 | 47 | |||||||||||||||||||||
Owner occupied real estate | 3,139 | 146 | 2,542 | 154 | |||||||||||||||||||||
Consumer and other | 110 | - | 87 | - | |||||||||||||||||||||
Total | $ | 13,890 | $ | 381 | $ | 14,392 | $ | 513 | |||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial real estate | $ | 20,323 | $ | 926 | $ | 22,882 | $ | 1,133 | |||||||||||||||||
Construction and land development | 2,453 | 35 | 5,750 | 112 | |||||||||||||||||||||
Commercial and industrial | 6,664 | 59 | 7,759 | 175 | |||||||||||||||||||||
Owner occupied real estate | 3,486 | 155 | 3,454 | 186 | |||||||||||||||||||||
Consumer and other | 761 | 6 | 962 | 9 | |||||||||||||||||||||
Total | $ | 33,687 | $ | 1,181 | $ | 40,807 | $ | 1,615 | |||||||||||||||||
The total average recorded investment on the Company’s impaired loans for the years ended December 31, 2013, 2012, and 2011 were $33.7 million, $40.8 million, and $70.7 million, respectively, and the related interest income recognized for those dates was $1.2 million, $1.6 million, and $1.9 million, respectively. If these loans were performing under their original contractual rate, interest income on such loans would have increased approximately $488,000, $699,000, and $583,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||
Included in loans are loans due from directors and other related parties of $8.8 million, $9.1 million, and $16.9 million at December 31, 2013, 2012, and 2011, respectively. All loans made to directors have substantially the same terms and interest rates as other bank borrowers. The Board of Directors approves loans to individual directors to confirm that collateral requirements, terms and rates are comparable to other borrowers and are in compliance with underwriting policies. The following presents the activity in amount due from directors and other related parties for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 9,128 | $ | 16,941 | $ | 16,376 | |||||||||||||||||||
Additions | 51 | 259 | 1,727 | ||||||||||||||||||||||
Repayments | (417 | ) | (8,072 | ) | (1,162 | ) | |||||||||||||||||||
Balance at end of year | $ | 8,762 | $ | 9,128 | $ | 16,941 | |||||||||||||||||||
Allowances_for_Loan_Losses
Allowances for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Allowances for Loan Losses [Abstract] | ' | ||||||||||||||||||||||||||||||||
Allowances for Loan Losses | ' | ||||||||||||||||||||||||||||||||
5. Allowances for Loan Losses | |||||||||||||||||||||||||||||||||
The following tables provide the activity in and ending balances of the allowance for loan losses by loan portfolio class at and for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Year ended December, 2013 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance: | $ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | |||||||||||||||||
Charge-offs | (1,291 | ) | (60 | ) | (611 | ) | (320 | ) | (75 | ) | - | - | (2,357 | ) | |||||||||||||||||||
Recoveries | 54 | - | 63 | - | 26 | - | - | 143 | |||||||||||||||||||||||||
Provisions (credits) | 3,712 | 735 | 977 | (662 | ) | 40 | (3 | ) | 136 | 4,935 | |||||||||||||||||||||||
Ending balance | $ | 6,454 | $ | 1,948 | $ | 2,309 | $ | 985 | $ | 225 | $ | 14 | $ | 328 | $ | 12,263 | |||||||||||||||||
Year ended December, 2012 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning Balance: | $ | 7,372 | $ | 558 | $ | 1,928 | $ | 1,963 | $ | 113 | $ | 23 | $ | 93 | $ | 12,050 | |||||||||||||||||
Charge-offs | (1,582 | ) | (1,004 | ) | (1,304 | ) | - | (102 | ) | - | - | (3,992 | ) | ||||||||||||||||||||
Recoveries | - | 105 | - | - | 29 | - | - | 134 | |||||||||||||||||||||||||
Provisions (credits) | (1,811 | ) | 1,614 | 1,256 | 4 | 194 | (6 | ) | 99 | 1,350 | |||||||||||||||||||||||
Ending balance | $ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | |||||||||||||||||
Year ended December, 2011 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning Balance: | $ | 7,243 | $ | 837 | $ | 1,443 | $ | 1,575 | $ | 130 | $ | 41 | $ | 175 | $ | 11,444 | |||||||||||||||||
Charge-offs | (8,783 | ) | (3,719 | ) | (1,088 | ) | (1,838 | ) | (41 | ) | - | - | (15,469 | ) | |||||||||||||||||||
Recoveries | 44 | 10 | - | 15 | 40 | - | - | 109 | |||||||||||||||||||||||||
Provisions (credits) | 8,868 | 3,430 | 1,573 | 2,211 | (16 | ) | (18 | ) | (82 | ) | 15,966 | ||||||||||||||||||||||
Ending balance | $ | 7,372 | $ | 558 | $ | 1,928 | $ | 1,963 | $ | 113 | $ | 23 | $ | 93 | $ | 12,050 | |||||||||||||||||
The following tables provide a summary of the allowance for loan losses and balance of loans receivable by loan class and by impairment method as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | ||||||||||||||||||||||||||||
Unallocated | Total | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,679 | $ | 237 | $ | 1,254 | $ | 430 | $ | 10 | $ | - | $ | - | $ | 5,610 | |||||||||||||||||
Collectively evaluated for impairment | 2,775 | 1,711 | 1,055 | 555 | 215 | 14 | 328 | 6,653 | |||||||||||||||||||||||||
Total allowance for loan losses | $ | 6,454 | $ | 1,948 | $ | 2,309 | $ | 985 | $ | 225 | $ | 14 | $ | 328 | $ | 12,263 | |||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Loans evaluated individually | $ | 19,894 | $ | 1,618 | $ | 6,932 | $ | 3,433 | $ | 656 | $ | - | $ | - | $ | 32,533 | |||||||||||||||||
Loans evaluated collectively | 322,900 | 22,359 | 111,277 | 156,796 | 31,325 | 2,359 | - | 647,016 | |||||||||||||||||||||||||
Total loans receivable | $ | 342,794 | $ | 23,977 | $ | 118,209 | $ | 160,229 | $ | 31,981 | $ | 2,359 | $ | - | $ | 679,549 | |||||||||||||||||
Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | ||||||||||||||||||||||||||||
Unallocated | Total | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,077 | $ | 70 | $ | 861 | $ | 860 | $ | 75 | $ | - | $ | - | $ | 2,943 | |||||||||||||||||
Collectively evaluated for impairment | 2,902 | 1,203 | 1,019 | 1,107 | 159 | 17 | 192 | 6,599 | |||||||||||||||||||||||||
Total allowance for loan losses | $ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | |||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Loans evaluated individually | $ | 25,316 | $ | 3,746 | $ | 6,940 | $ | 3,955 | $ | 1,058 | $ | - | $ | - | $ | 41,015 | |||||||||||||||||
Loans evaluated collectively | 310,245 | 22,913 | 96,828 | 122,287 | 22,391 | 2,442 | - | 577,106 | |||||||||||||||||||||||||
Total loans receivable | $ | 335,561 | $ | 26,659 | $ | 103,768 | $ | 126,242 | $ | 23,449 | $ | 2,442 | $ | - | $ | 618,121 | |||||||||||||||||
The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater than 90 Days | Total | Loans Receivable > 90 Days and Accruing | |||||||||||||||||||||||||||||
Days Past Due | Days Past Due | Total | Loans Receivable | ||||||||||||||||||||||||||||||
(dollars in thousands) | Past Due | Current | |||||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 19,707 | $ | 5,635 | $ | 1,104 | $ | 26,446 | $ | 316,348 | $ | 342,794 | $ | - | |||||||||||||||||||
Construction and land development | - | - | 1,618 | 1,618 | 22,359 | 23,977 | - | ||||||||||||||||||||||||||
Commercial and industrial | 951 | 71 | 6,837 | 7,859 | 110,350 | 118,209 | - | ||||||||||||||||||||||||||
Owner occupied real estate | 808 | 1,281 | 205 | 2,294 | 157,935 | 160,229 | - | ||||||||||||||||||||||||||
Consumer and other | 38 | - | 656 | 694 | 31,287 | 31,981 | - | ||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | 2,359 | 2,359 | - | ||||||||||||||||||||||||||
Total | $ | 21,504 | $ | 6,987 | $ | 10,420 | $ | 38,911 | $ | 640,638 | $ | 679,549 | $ | - | |||||||||||||||||||
30-59 | 60-89 | Greater than 90 Days | Total | Loans Receivable > 90 Days and Accruing | |||||||||||||||||||||||||||||
Days Past Due | Days Past Due | Total | Loans Receivable | ||||||||||||||||||||||||||||||
(dollars in thousands) | Past Due | Current | |||||||||||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 772 | $ | 26,000 | $ | 7,987 | $ | 34,759 | $ | 300,802 | $ | 335,561 | $ | - | |||||||||||||||||||
Construction and land development | - | 261 | 1,342 | 1,603 | 25,056 | 26,659 | - | ||||||||||||||||||||||||||
Commercial and industrial | 86 | - | 4,693 | 4,779 | 98,989 | 103,768 | - | ||||||||||||||||||||||||||
Owner occupied real estate | 285 | 1,562 | 968 | 2,815 | 123,427 | 126,242 | - | ||||||||||||||||||||||||||
Consumer and other | - | - | 1,058 | 1,058 | 22,391 | 23,449 | 202 | ||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | 2,442 | 2,442 | - | ||||||||||||||||||||||||||
Total | $ | 1,143 | $ | 27,823 | $ | 16,048 | $ | 45,014 | $ | 573,107 | $ | 618,121 | $ | 202 | |||||||||||||||||||
The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within our internal risk rating system as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 305,974 | $ | 16,372 | $ | 20,448 | $ | - | $ | 342,794 | |||||||||||||||||||||||
Construction and land development | 22,359 | - | 1,618 | - | 23,977 | ||||||||||||||||||||||||||||
Commercial and industrial | 110,629 | 611 | 6,969 | - | 118,209 | ||||||||||||||||||||||||||||
Owner occupied real estate | 155,648 | 1,485 | 3,096 | - | 160,229 | ||||||||||||||||||||||||||||
Consumer and other | 30,993 | 75 | 913 | - | 31,981 | ||||||||||||||||||||||||||||
Residential mortgage | 2,359 | - | - | - | 2,359 | ||||||||||||||||||||||||||||
Total | $ | 627,962 | $ | 18,543 | $ | 33,044 | $ | - | $ | 679,549 | |||||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 300,174 | $ | 9,174 | $ | 26,213 | $ | - | $ | 335,561 | |||||||||||||||||||||||
Construction and land development | 22,652 | 261 | 3,746 | - | 26,659 | ||||||||||||||||||||||||||||
Commercial and industrial | 96,051 | 642 | 7,075 | - | 103,768 | ||||||||||||||||||||||||||||
Owner occupied real estate | 121,381 | 906 | 3,955 | - | 126,242 | ||||||||||||||||||||||||||||
Consumer and other | 22,033 | 100 | 1,316 | - | 23,449 | ||||||||||||||||||||||||||||
Residential mortgage | 2,442 | - | - | - | 2,442 | ||||||||||||||||||||||||||||
Total | $ | 564,733 | $ | 11,083 | $ | 42,305 | $ | - | $ | 618,121 | |||||||||||||||||||||||
The following table shows non-accrual loans by class as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
(dollars in thousands) | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,104 | $ | 7,987 | |||||||||||||||||||||||||||||
Construction and land development | 1,618 | 1,342 | |||||||||||||||||||||||||||||||
Commercial and industrial | 6,837 | 4,693 | |||||||||||||||||||||||||||||||
Owner occupied real estate | 205 | 968 | |||||||||||||||||||||||||||||||
Consumer and other | 656 | 856 | |||||||||||||||||||||||||||||||
Residential mortgage | - | - | |||||||||||||||||||||||||||||||
Total | $ | 10,420 | $ | 15,846 | |||||||||||||||||||||||||||||
If these loans were performing under their original contractual rate, interest income on such loans would have increased approximately $488,000, $699,000, and $583,000, for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
A modification to the contractual terms of a loan which results in a concession to a borrower that is experiencing financial difficulty is classified as a troubled debt restructuring (“TDR”). The concessions made in a TDR are those that would not otherwise be considered for a borrower or collateral with similar risk characteristics. A TDR is typically the result of efforts to minimize potential losses that may be incurred during loan workouts, foreclosure, or repossession of collateral at a time when collateral values are declining. Concessions include a reduction in interest rate below current market rates, a material extension of time to the loan term or amortization period, partial forgiveness of the outstanding principal balance, acceptance of interest only payments for a period of time, or a combination of any of these conditions. | |||||||||||||||||||||||||||||||||
The following table summarizes information with regard to troubled debt restructurings for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Number of Loans | Accrual Status | Non-Accrual Status | Total TDRs | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 103 | $ | - | $ | 103 | ||||||||||||||||||||||||||
Construction and land development | - | - | - | - | |||||||||||||||||||||||||||||
Commercial and industrial | 1 | - | 2,188 | 2,188 | |||||||||||||||||||||||||||||
Owner occupied real estate | 1 | 1,894 | - | 1,894 | |||||||||||||||||||||||||||||
Consumer and other | - | - | - | - | |||||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | |||||||||||||||||||||||||||||
Total | 3 | $ | 1,997 | $ | 2,188 | $ | 4,185 | ||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 1,261 | $ | - | $ | 1,261 | ||||||||||||||||||||||||||
Construction and land development | 1 | 2,069 | - | 2,069 | |||||||||||||||||||||||||||||
Commercial and industrial | 1 | 2,248 | - | 2,248 | |||||||||||||||||||||||||||||
Owner occupied real estate | 1 | 1,933 | - | 1,933 | |||||||||||||||||||||||||||||
Consumer and other | - | - | - | - | |||||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | |||||||||||||||||||||||||||||
Total | 4 | $ | 7,511 | $ | - | $ | 7,511 | ||||||||||||||||||||||||||
All TDRs are considered impaired and are therefore individually evaluated for impairment in the calculation of the allowance for loan losses. Some TDRs may not ultimately result in the full collection of principal and interest as restructured and could lead to potential incremental losses. These potential incremental losses would be factored into our estimate of the allowance for loan losses. The level of any subsequent defaults will likely be affected by future economic conditions. There were no loan modifications made during the year ended December 31, 2013 that met the criteria of a TDR. | |||||||||||||||||||||||||||||||||
The Company modified one owner occupied real estate loan during the year ended December 31, 2012. In accordance with the modified terms of this owner occupied real estate loan, the Company extended the maturity date of the loan. In addition the effective interest rate of the modified loan was reduced when compared to the interest rate of the original loan. The owner occupied real estate loan has been and continues to be an accruing loan. The borrower has remained current since the modification. | |||||||||||||||||||||||||||||||||
The Company modified one commercial and industrial loan during the year ended December 31, 2012. In accordance with the modified terms of the commercial and industrial loan, the Company implemented a hard maturity date whereas the loan had formerly been a demand note. The loan has also been converted from interest only payments to a term-out of the debt on this loan. In addition, the Company modified the amortization time frame and reduced the effective interest rate when compared to the interest rate of the original loan. The Company also extended the maturity date of the loan. The commercial and industrial loan had been an accruing loan. During 2013 this loan was transferred to non-accrual status. The borrower has not remained current since the modification. | |||||||||||||||||||||||||||||||||
After a loan is determined to be a TDR, we continue to track its performance under the most recent restructured terms. One loan classified as a TDR subsequently defaulted during the year ended December 31, 2013. There were no TDRs that subsequently defaulted during the year ended December 31, 2012. | |||||||||||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Premises and Equipment [Abstract] | ' | ||||||||
Premises and Equipment | ' | ||||||||
6 | Premises and Equipment | ||||||||
A summary of premises and equipment is as follows: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(dollars in thousands) | |||||||||
Land | $ | 200 | $ | 200 | |||||
Bank building | 1,057 | 1,051 | |||||||
Leasehold improvements | 19,017 | 18,714 | |||||||
Furniture, fixtures and equipment | 7,670 | 6,894 | |||||||
Construction in progress | 6,402 | 5,143 | |||||||
34,346 | 32,002 | ||||||||
Less accumulated depreciation | (11,598 | ) | (10,026 | ) | |||||
Net premises and equipment | $ | 22,748 | $ | 21,976 | |||||
Depreciation expense on premises, equipment and leasehold improvements amounted to approximately $2.1 million, $2.0 million, and $2.1 million in 2013, 2012 and 2011, respectively. The construction in progress balance of $6.4 million mainly represents costs incurred for the selection and development of future store locations. Of this balance, $4.0 million represents land purchased for two specific store locations. Costs to complete the projects in process are estimated to be $5.0 million as of December 31, 2013. |
Borrowings
Borrowings | 12 Months Ended | |
Dec. 31, 2013 | ||
Borrowings [Abstract] | ' | |
Borrowings | ' | |
7 | Borrowings | |
Republic has a line of credit with the Federal Home Loan Bank (“FHLB”) of Pittsburgh with a maximum borrowing capacity of $372.6 million as of December 31, 2013. As of December 31, 2013 and 2012, there were no fixed term or overnight advances against this line of credit. There were no fixed term advances outstanding at any month-end during 2013 and 2012. The maximum amount of overnight borrowings outstanding at any month-end was $0 in 2013 and 2012. | ||
Republic also has a line of credit in the amount of $10.0 million available for the purchase of federal funds through another correspondent bank. At December 31, 2013 and 2012, Republic had no amount outstanding against this line. The maximum amount of overnight advances on this line at any month end was $0 in 2013 and $4.5 million in 2012. | ||
Subordinated debt and corporation-obligated-mandatorily redeemable capital securities of subsidiary trust holding solely junior obligations of the corporation: | ||
The Company has sponsored three outstanding issues of corporation-obligated mandatorily redeemable capital securities of a subsidiary trust holding solely junior subordinated debentures of the corporation, more commonly known as trust preferred securities. The subsidiary trusts are not consolidated with the Company for financial reporting purposes. The purpose of the issuances of these securities was to increase capital. The trust preferred securities qualify as Tier 1 capital for regulatory purposes in amounts up to 25% of total Tier 1 capital. | ||
In December 2006, Republic Capital Trust II (“Trust II”) issued $6.0 million of trust preferred securities to investors and $0.2 million of common securities to the Company. Trust II purchased $6.2 million of junior subordinated debentures of the Company due 2037, and the Company used the proceeds to call the securities of Republic Capital Trust I (“Trust I”). The debentures supporting Trust II have a variable interest rate, adjustable quarterly, at 1.73% over the 3-month Libor. The Company may call the securities on any interest payment date after five years without a prepayment penalty. | ||
On June 28, 2007, the Company caused Republic Capital Trust III (“Trust III”), through a pooled offering, to issue $5.0 million of trust preferred securities to investors and $0.2 million common securities to the Company. Trust III purchased $5.2 million of junior subordinated debentures of the Company due 2037, which have a variable interest rate, adjustable quarterly, at 1.55% over the 3 month Libor. The Company has the ability to call the securities on any interest payment date without a prepayment penalty. | ||
On June 10, 2008, the Company caused Republic First Bancorp Capital Trust IV (“Trust IV”) to issue $10.8 million of convertible trust preferred securities as part of the Company’s strategic capital plan. The securities were purchased by various investors, including Vernon W. Hill, II, founder and chairman (retired) of Commerce Bancorp and, since the investment, a consultant to the Company. This investor group also included a family trust of Harry D. Madonna, chairman, president and chief executive officer of the Company, and Theodore J. Flocco, Jr., who, since the investment, has been elected to the Company’s Board of Directors and serves as the Chairman of the Audit Committee. Trust IV also issued $0.3 million of common securities to the Company. Trust IV purchased $11.1 million of junior subordinated debentures due 2038, which pay interest at an annual rate of 8.0% and are callable after the fifth year. The trust preferred securities of Trust IV are convertible into approximately 1.7 million shares of common stock of the Company, based on a conversion price of $6.50 per share of Company common stock, and at December 31, 2013 were fully convertible. |
Deposits
Deposits | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Deposits [Abstract] | ' | ||||||||||||||||||||||||||||
Deposits | ' | ||||||||||||||||||||||||||||
8 | Deposits | ||||||||||||||||||||||||||||
The following is a breakdown, by contractual maturities of the Company’s certificates of deposit for the years 2014 through 2018. | |||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Certificates of Deposit | $ | 53,294 | $ | 12,980 | $ | 11,253 | $ | 462 | $ | 847 | $ | - | $ | 78,836 | |||||||||||||||
Certificates of deposit of $100,000 or more totaled $39.4 million and $78.3 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Deposits of related parties totaled $57.5 million and $59.4 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
9 | Income Taxes | ||||||||||||
The (benefit) provision for income taxes for the years ended December 31, 2013, 2012 and 2011 consists of the following: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Current | |||||||||||||
Federal | $ | 269 | $ | 81 | $ | (71 | ) | ||||||
State | - | - | - | ||||||||||
Deferred | (304 | ) | (225 | ) | 8,262 | ||||||||
Total provision (benefit) for income taxes | $ | (35 | ) | $ | (144 | ) | $ | 8,191 | |||||
The following table reconciles the difference between the actual tax provision and the amount per the statutory federal income tax rate of 35.0% for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Tax (benefit) provision computed at statutory rate | $ | (1,230 | ) | $ | 1,214 | $ | (5,779 | ) | |||||
Tax exempt interest | (210 | ) | (257 | ) | (265 | ) | |||||||
Bank owned life insurance | (4 | ) | (26 | ) | (48 | ) | |||||||
Deferred tax asset valuation allowance | 1,428 | (1,002 | ) | 14,912 | |||||||||
Other | (19 | ) | (73 | ) | (629 | ) | |||||||
Total provision (benefit) for income taxes | $ | (35 | ) | $ | (144 | ) | $ | 8,191 | |||||
The significant components of the Company’s net deferred tax asset as of December 31, 2013 and 2012 are as follows: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||
Deferred tax assets | |||||||||||||
Allowance for loan losses | $ | 4,403 | $ | 3,427 | |||||||||
Deferred compensation | 721 | 733 | |||||||||||
Unrealized loss on securities available for sale | 1,584 | - | |||||||||||
Realized loss in other than temporary impairment charge | 1,121 | 1,121 | |||||||||||
Foreclosed real estate write-downs | 1,131 | 232 | |||||||||||
Interest income on non-accrual loans | 955 | 1,000 | |||||||||||
Net operating loss carryforward | 11,826 | 11,689 | |||||||||||
Other | 986 | 1,052 | |||||||||||
Total deferred tax assets | 22,727 | 19,254 | |||||||||||
Deferred tax liabilities | |||||||||||||
Deferred loan costs | 859 | 712 | |||||||||||
Unrealized gain on securities available for sale | - | 572 | |||||||||||
Other | 460 | 450 | |||||||||||
Total deferred tax liabilities | 1,319 | 1,734 | |||||||||||
Net deferred tax asset before valuation allowance | 21,408 | 17,520 | |||||||||||
Less: valuation allowance | (15,338 | ) | (13,910 | ) | |||||||||
Net deferred tax asset | $ | 6,070 | $ | 3,610 | |||||||||
The Company’s net deferred tax asset before the consideration of a valuation allowance increased to $21.4 million at December 31, 2013 compared to $17.5 million at December 31, 2012. This increase was primarily driven by increases in unrealized losses on securities available for sale, foreclosed real estate writedowns, and the allowance for loan losses during the twelve month period ended December 31, 2013. The $21.4 million net deferred tax asset as of December 31, 2013 is comprised of $11.8 million currently recognizable through NOL carryforwards and $9.6 million attributable to several items associated with temporary timing differences which will reverse at some point in the future to provide a net reduction in tax liabilities. The Company’s largest future reversal relates to its allowance for loan losses, which totaled $4.4 million as of December 31, 2013. | |||||||||||||
The Company evaluates the carrying amount of its deferred tax assets on a quarterly basis or more frequently, if necessary, in accordance with the guidance provided in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 740 (ASC 740), in particular, applying the criteria set forth therein to determine whether it is more likely than not (i.e. a likelihood of more than 50%) that some portion, or all, of the deferred tax asset will not be realized within its life cycle, based on the weight of available evidence. If management makes a determination based on the available evidence that it is more likely than not that some portion or all of the deferred tax assets will not be realized in future periods a valuation allowance is calculated and recorded. These determinations are inherently subjective and dependent upon estimates and judgments concerning management’s evaluation of both positive and negative evidence. | |||||||||||||
In conducting the deferred tax asset analysis, the Company believes it is important to consider the unique characteristics of an industry or business. In particular, characteristics such as business model, level of capital and reserves held by financial institutions and their ability to absorb potential losses are important distinctions to be considered for bank holding companies like the Company. In addition, it is also important to consider that NOLs for federal income tax purposes can generally be carried back two years and carried forward for a period of twenty years. The Company has an NOL which will begin to expire after December 31, 2030 if not utilized prior to that date. In order to realize our deferred tax assets, we must generate sufficient taxable income in such future years. | |||||||||||||
In assessing the need for a valuation allowance, the Company carefully weighed both positive and negative evidence currently available. Judgment is required when considering the relative impact of such evidence. The weight given to the potential effect of positive and negative evidence must be commensurate with the extent to which it can be objectively verified. A cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome. Based on the analysis of available positive and negative evidence, the Company determined that a valuation allowance should be recorded as of December 31, 2013 and 2012. | |||||||||||||
When determining an estimate for a valuation allowance, the Company assessed the possible sources of taxable income available under tax law to realize a tax benefit for deductible temporary differences and carryforwards as defined in ASC 740-10-30. As a result of cumulative losses in recent years and the uncertain nature of the current economic environment, the Company did not use projections of future taxable income, exclusive of reversing temporary timing differences and carryforwards, as a factor. The Company will continue to exclude future taxable income as a factor until it can show consistent and sustained profitability. | |||||||||||||
The Company did assess tax planning strategies as defined under ASC 740-10-30 to determine the amount of a valuation allowance. Strategies reviewed included the sale of investment securities and loans with fair values greater than book values, redeployment of cash and cash equivalents into higher yielding investment options, a switch from tax-exempt to taxable investments and loans, and the election of a decelerated depreciation method for tax purposes for future fixed asset purchases. The Company believes that these tax planning strategies are (i.) prudent and feasible, (ii.) steps that the Company would not ordinarily take, but would take to prevent an operating loss or tax credit carryforward from expiring unused, and (iii.) would result in the realization of existing deferred tax assets. These tax planning strategies, if implemented, would result in taxable income in the first full reporting period after deployment and accelerate the recovery of deferred tax asset balances if faced with the inability to recover those assets or the risk of potential expiration. The Company believes that these are viable tax planning strategies and appropriately considered in the analysis at this time, but may not align with the strategic direction of the organization today and therefore, has no present intention to implement such strategies. | |||||||||||||
The net deferred tax asset balance before consideration of a valuation allowance was $21.4 million as of December 31, 2013 and $17.5 million as of December 31, 2012. The tax planning strategies assessed resulted in the projected realization of approximately $6.1 million in tax assets as of December 31, 2013 and $3.6 million as of December 31, 2012 which can be considered more likely than not to be realized. Accordingly, the Company recorded a partial valuation allowance related to the deferred tax asset balance in the amount of $15.3 million as of December 31, 2013 and $13.9 million as of December 31, 2012. | |||||||||||||
The deferred tax asset will continue to be analyzed on a quarterly basis for changes affecting realizability. As the Company continues to record consecutive quarters of profitable results, projections of future taxable income become more reliable and can again be used as a factor in assessing the ability to fully realize the deferred tax asset. When the determination is made to include projections of future taxable income as a factor, the valuation allowance will be reduced accordingly resulting in a corresponding increase in net income. | |||||||||||||
The Company accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The Internal Revenue Service has completed its audits of the Company’s federal tax returns for all tax years through December 31, 2008. There are currently no income tax audits being conducted by the Internal Revenue Service or the Pennsylvania Department of Revenue. The Company’s federal income tax returns for the years ended December 31, 2012, 2011, and 2010 remain subject to examination by the Internal Revenue Service. |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended | |
Dec. 31, 2013 | ||
Financial Instruments with Off-Balance Sheet Risk [Abstract] | ' | |
Financial Instruments with Off-Balance Sheet Risk | ' | |
10 | Financial Instruments with Off-Balance Sheet Risk | |
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. | ||
Credit risk is defined as the possibility of sustaining a loss due to the failure of the other parties to a financial instrument to perform in accordance with the terms of the contract. The maximum exposure to credit loss under commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same underwriting standards and policies in making credit commitments as it does for on-balance-sheet instruments. | ||
Financial instruments whose contract amounts represent potential credit risk are commitments to extend credit of approximately $109.3 million and $99.7 million and standby letters of credit of approximately $2.7 million and $4.3 million at December 31, 2013 and 2012, respectively. Commitments often expire without being drawn upon. Of the $109.3 million of commitments to extend credit at December 31, 2013, substantially all were variable rate commitments. | ||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and many require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include real estate, marketable securities, pledged deposits, equipment and accounts receivable. | ||
Standby letters of credit are conditional commitments issued that guarantee the performance of a customer to a third party. The credit risk and collateral policy involved in issuing letters of credit is essentially the same as that involved in extending loan commitments. The amount of collateral obtained is based on management’s credit evaluation of the customer. Collateral held varies but may include real estate, marketable securities, pledged deposits, equipment and accounts receivable. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of liability as of December 31, 2013 and 2012 for guarantees under standby letters of credit issued is not material. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
11 | Commitments and Contingencies | ||||
Lease Arrangements | |||||
As of December 31, 2013, the Company had entered into non-cancelable leases expiring through August 31, 2043, including renewal options. The leases are accounted for as operating leases. The minimum annual rental payments required under these leases are as follows (dollars in thousands): | |||||
Year Ended | Amount | ||||
2014 | $ | 2,547 | |||
2015 | 2,521 | ||||
2016 | 2,402 | ||||
2017 | 2,416 | ||||
2018 | 2,475 | ||||
Thereafter | 30,694 | ||||
Total | $ | 43,055 | |||
The Company incurred rent expense of $2.3 million, $2.2 million, and $2.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Other | |||||
The Company and Republic are from time to time a party (plaintiff or defendant) to lawsuits that are in the normal course of business. While any litigation involves an element of uncertainty, management is of the opinion that the liability of the Company and Republic, if any, resulting from such actions will not have a material effect on the financial condition or results of operations of the Company and Republic. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Capital [Abstract] | ' | ||||||||||||||||||||||||
Regulatory Capital | ' | ||||||||||||||||||||||||
12 | Regulatory Capital | ||||||||||||||||||||||||
Dividend payments by Republic to the Company are subject to the Pennsylvania Banking Code of 1965 (the “Banking Code”) and the Federal Deposit Insurance Act (the “FDIA”). Under the Banking Code, no dividends may be paid except from “accumulated net earnings” (generally, undivided profits). Under the FDIA, an insured bank may pay no dividends if the bank is in arrears in the payment of any insurance assessment due to the FDIC. Under current banking laws, Republic would be limited to $10.8 million of dividends plus an additional amount equal to its net profit for 2014, up to the date of any such dividend declaration. However, dividends would be further limited in order to maintain capital ratios. | |||||||||||||||||||||||||
State and Federal regulatory authorities have adopted standards for the maintenance of adequate levels of capital by Republic. Federal banking agencies impose three minimum capital requirements on the Company’s risk-based capital ratios based on total capital, Tier 1 capital, and a leverage capital ratio. The risk-based capital ratios measure the adequacy of a bank’s capital against the riskiness of its assets and off-balance sheet activities. Failure to maintain adequate capital is a basis for “prompt corrective action” or other regulatory enforcement action. In assessing a bank’s capital adequacy, regulators also consider other factors such as interest rate risk exposure; liquidity, funding and market risks; quality and level or earnings; concentrations of credit; quality of loans and investments; risks of any nontraditional activities; effectiveness of bank policies; and management’s overall ability to monitor and control risks. | |||||||||||||||||||||||||
The following table presents the Company’s and Republic’s capital regulatory ratios at December 31, 2013 and 2012: | |||||||||||||||||||||||||
(dollars in thousands) | For Capital Adequacy Purposes | To be well capitalized under regulatory capital guidelines | |||||||||||||||||||||||
Actual | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||
Total risk based capital | |||||||||||||||||||||||||
Republic | $ | 92,493 | 11.38 | % | $ | 65,038 | 8 | % | $ | 81,297 | 10 | % | |||||||||||||
Company | 93,848 | 11.53 | % | 65,092 | 8 | % | - | - | % | ||||||||||||||||
Tier one risk based capital | |||||||||||||||||||||||||
Republic | 82,305 | 10.12 | % | 32,519 | 4 | % | 48,778 | 6 | % | ||||||||||||||||
Company | 83,652 | 10.28 | % | 32,546 | 4 | % | - | - | % | ||||||||||||||||
Tier one leveraged capital | |||||||||||||||||||||||||
Republic | 82,305 | 8.46 | % | 38,921 | 4 | % | 48,651 | 5 | % | ||||||||||||||||
Company | 83,652 | 8.59 | % | 38,971 | 4 | % | - | - | % | ||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||
Total risk based capital | |||||||||||||||||||||||||
Republic | $ | 96,366 | 12.7 | % | $ | 60,685 | 8 | % | $ | 75,857 | 10 | % | |||||||||||||
Company | 97,006 | 12.73 | % | 60,971 | 8 | % | - | - | % | ||||||||||||||||
Tier one risk based capital | |||||||||||||||||||||||||
Republic | 86,883 | 11.45 | % | 30,343 | 4 | % | 45,514 | 6 | % | ||||||||||||||||
Company | 87,479 | 11.48 | % | 30,485 | 4 | % | - | - | % | ||||||||||||||||
Tier one leveraged capital | |||||||||||||||||||||||||
Republic | 86,883 | 8.96 | % | 38,786 | 4 | % | 48,483 | 5 | % | ||||||||||||||||
Company | 87,479 | 9.01 | % | 38,838 | 4 | % | - | - | % | ||||||||||||||||
Management believes that Republic met, as of December 31, 2013, all capital adequacy requirements to which it is subject. As of December 31, 2013 and 2012, the FDIC categorized Republic as well capitalized under the regulatory framework for prompt corrective action provisions of the Federal Deposit Insurance Act. There are no calculations or events since that notification that management believes have changed Republic’s category. | |||||||||||||||||||||||||
In July 2013, the federal bank regulatory agencies adopted revisions to the agencies’ capital adequacy guidelines and prompt corrective action rules, which were designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. The final rules generally implement higher minimum capital requirements, add a new common equity tier 1 capital requirement, and establish criteria that instruments must meet to be considered common equity tier 1 capital, additional tier 1 capital or tier 2 capital. The new minimum capital to risk-adjusted assets requirements are a common equity tier 1 capital ratio of 4.5% (6.5% to be considered “well capitalized”) and a tier 1 capital ratio of 6.0%, increased from 4.0% (and increased from 6.0% to 8.0% to be considered “well capitalized”); the total capital ratio remains at 8.0% under the new rules (10.0% to be considered “well capitalized”). Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The new minimum capital requirements are effective on January 1, 2015. The capital contribution buffer requirements phase in over a three-year period beginning January 1, 2016. | |||||||||||||||||||||||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |
Dec. 31, 2013 | ||
Benefit Plans [Abstract] | ' | |
Benefit Plans | ' | |
13 | Benefit Plans | |
Defined Contribution Plan | ||
The Company has a defined contribution plan pursuant to the provision of 401(k) of the Internal Revenue Code. The Plan covers all full-time employees who meet age and service requirements. The plan provides for elective employee contributions with a matching contribution from the Company limited to 4% of total salary. The total expense charged to Republic, and included in salaries and employee benefits relating to the plan, was $425,000 in 2013, $366,000 in 2012 and $307,000 in 2011. | ||
Directors’ and Officers’ Plans | ||
The Company has agreements that provide for an annuity payment upon the retirement or death of certain directors and officers, ranging from $15,000 to $25,000 per year for ten years. The agreements were modified for most participants in 2001, to establish a minimum age of 65 to qualify for the payments. All participants are fully vested. The accrued benefits under the plan at both December 31, 2013 and 2012 totaled $1.4 million. The expense for the years ended December 31, 2013, 2012 and 2011, totaled $39,000, $27,000, and $27,000, respectively. The Company funded the plan through the purchase of certain life insurance contracts. The cash surrender value of these contracts (owned by the Company) aggregated $2.2 million and $2.0 million at December 31, 2013 and 2012, respectively, which is included in other assets. | ||
The Company maintains a deferred compensation plan for the benefit of certain officers and directors. As of December 31, 2013, no additional individuals may participate in the plan. The plan permits certain participants to make elective contributions to their accounts, subject to applicable provisions of the Internal Revenue Code. In addition, the Company may make discretionary contributions to participant accounts. Company contributions are subject to vesting, and generally vest three years after the end of the plan year to which the contribution applies, subject to acceleration of vesting upon certain changes in control (as defined in the plan) and to forfeiture upon termination for cause (as defined in the plan). Participant accounts are adjusted to reflect contributions and distributions, and income, gains, losses, and expenses as if the accounts had been invested in permitted investments selected by the participants, including Company common stock. The plan provides for distributions upon retirement and, subject to applicable limitations under the Internal Revenue Code, limited hardship withdrawals. As of December 31, 2013 and 2012, $638,000 and $681,000, respectively, in benefits had vested. | ||
Expense recognized for the deferred compensation plan for 2013, 2012, and 2011 was $0, $109,000 and $112,000, respectively. Although the plan is an unfunded plan, and does not require the Company to segregate any assets, the Company has purchased shares of Company common stock in anticipation of its obligation to pay benefits under the plan. Such shares are classified in the financial statements as stock held by deferred compensation plan. No purchases were made in 2013, 2012 and 2011. As of December 31, 2013, approximately 112,542 shares of Company common stock were classified as stock held by deferred compensation plan. | ||
Fair_Value_Measurements_and_Fa
Fair Value Measurements and Fair Values of Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurements and Fair Values of Financial Instruments | ' | ||||||||||||||||||||||||
14 | Fair Value Measurements and Fair Values of Financial Instruments | ||||||||||||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. | |||||||||||||||||||||||||
The Company follows the guidance issued under ASC 820, Fair Value Measurement, which defines fair value, establishes a framework for measuring fair value under GAAP, and identifies required disclosures on fair value measurements. | |||||||||||||||||||||||||
ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are as follows: | |||||||||||||||||||||||||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||||||||||
Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. | |||||||||||||||||||||||||
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). | |||||||||||||||||||||||||
An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||
Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 123,440 | $ | - | $ | 123,440 | $ | - | |||||||||||||||||
Mortgage-backed securities | 16,181 | - | 16,181 | - | |||||||||||||||||||||
Municipal securities | 9,643 | - | 9,643 | - | |||||||||||||||||||||
Corporate bonds | 33,253 | - | 30,247 | 3,006 | |||||||||||||||||||||
Asset-backed securities | 19,407 | - | 19,407 | - | |||||||||||||||||||||
Trust Preferred Securities | 2,850 | - | - | 2,850 | |||||||||||||||||||||
Other securities | 117 | - | 117 | - | |||||||||||||||||||||
Securities Available for Sale | $ | 204,891 | $ | - | $ | 199,035 | $ | 5,856 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 99,783 | $ | - | $ | 99,783 | $ | - | |||||||||||||||||
Mortgage-backed securities | 21,640 | - | 21,640 | - | |||||||||||||||||||||
Municipal securities | 12,101 | - | 12,101 | - | |||||||||||||||||||||
Corporate bonds | 32,685 | - | 29,678 | 3,007 | |||||||||||||||||||||
Asset-backed securities | 19,729 | - | 19,729 | - | |||||||||||||||||||||
Trust Preferred Securities | 3,187 | - | - | 3,187 | |||||||||||||||||||||
Other securities | 134 | - | 134 | - | |||||||||||||||||||||
Securities Available for Sale | $ | 189,259 | $ | - | $ | 183,065 | $ | 6,194 | |||||||||||||||||
The following table presents a reconciliation of the securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||
Level 3 Investments Only | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance, January 1, | $ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | $ | 3,450 | $ | 3,000 | |||||||||||||
Security transferred to Level 3 measurement | - | - | - | - | - | - | |||||||||||||||||||
Unrealized gains (losses) | 171 | (1 | ) | 401 | 3 | 2 | 4 | ||||||||||||||||||
Paydowns | (508 | ) | - | (590 | ) | - | - | - | |||||||||||||||||
Impairment charges on Level 3 | - | - | (34 | ) | - | (42 | ) | - | |||||||||||||||||
Balance, December 31, | $ | 2,850 | $ | 3,006 | $ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | |||||||||||||
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and 2012, respectively, were as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Impaired loans | $ | 17,474 | $ | - | $ | - | $ | 17,474 | |||||||||||||||||
Other real estate owned | 3,921 | - | - | 3,921 | |||||||||||||||||||||
SBA servicing assets | 3,477 | - | - | 3,477 | |||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Impaired loans | $ | 19,876 | $ | - | $ | - | $ | 19,876 | |||||||||||||||||
Other real estate owned | 3,642 | - | - | 3,642 | |||||||||||||||||||||
SBA servicing assets | 2,340 | - | - | 2,340 | |||||||||||||||||||||
The table below presents additional quantitative information about Level 3 assets measured at fair value on a nonrecurring basis (dollars in thousands): | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||
Asset Description | Fair Value | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Impaired loans | $ | 17,474 | Fair Value of Collateral (1) | Appraised Value (2) | 0% - 40% (23%) (4) | ||||||||||||||||||||
Other real estate owned | $ | 3,921 | Fair Value of Collateral (1) | Appraised Value (2) | 4% - 77% (17%) (4) | ||||||||||||||||||||
Sales Price | |||||||||||||||||||||||||
SBA Servicing Assets | $ | 3,477 | Individual Loan | -3 | |||||||||||||||||||||
Fair Value | Valuation (3) | ||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Impaired loans | $ | 19,876 | Fair Value of Collateral (1) | Appraised Value (2) | 0% - 48% (15%) (4) | ||||||||||||||||||||
Other real estate owned | $ | 3,642 | Fair Value of Collateral (1) | Appraised Value (2) | 2% - 8% (5%) (4) | ||||||||||||||||||||
Sales Price | |||||||||||||||||||||||||
SBA Servicing Assets | $ | 2,340 | Individual Loan | -3 | |||||||||||||||||||||
Fair Value | Valuation (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 | There is a lack of transactional data in this market place for the non-guaranteed portion of SBA loans. | ||||||||||||||||||||||||
-4 | The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value. | ||||||||||||||||||||||||
The significant unobservable inputs for impaired loans and other real estate owned are the appraised value or an agreed upon sales price. These values are adjusted for estimated costs to sell which are incremental direct costs to transact a sale such as broker commissions, legal fees, closing costs and title transfer fees. The costs must be considered essential to the sale and would not have been incurred if the decision to sell had not been made. The costs to sell are based on costs associated with the Company’s actual sales of other real estate owned which are assessed annually. | |||||||||||||||||||||||||
The following table presents an analysis of the activity in the SBA servicing assets for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance, January 1st | $ | 2,340 | $ | 1,102 | |||||||||||||||||||||
Additions | 1,349 | 1,175 | |||||||||||||||||||||||
Fair value adjustments | (212 | ) | 63 | ||||||||||||||||||||||
Ending balance, December 31st | $ | 3,477 | $ | 2,340 | |||||||||||||||||||||
Fair Value Assumptions | |||||||||||||||||||||||||
The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||||
Cash and Cash Equivalents (Carried at Cost) | |||||||||||||||||||||||||
The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets’ fair values. | |||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||
The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities, which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments, are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) were used to support fair values of certain Level 3 investments. | |||||||||||||||||||||||||
The types of instruments valued based on matrix pricing in active markets include all of the Company’s U.S. government and agency securities, corporate bonds, asset backed securities, and municipal obligations. Such instruments are generally classified within Level 2 of the fair value hierarchy. As required by ASC 820-10, the Company does not adjust the matrix pricing for such instruments. | |||||||||||||||||||||||||
Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, and may be adjusted to reflect illiquidity and/or non-transferability, with such adjustment generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. The Level 3 investment securities classified as available for sale are comprised of various issues of trust preferred securities and a single corporate bond. | |||||||||||||||||||||||||
The trust preferred securities are pools of similar securities that are grouped into an asset structure commonly referred to as collateralized debt obligations (“CDOs”) which consist of the debt instruments of various banks, diversified by the number of participants in the security as well as geographically. The secondary market for these securities has become inactive, and therefore these securities are classified as Level 3 securities. The fair value analysis does not reflect or represent the actual terms or prices at which any party could purchase the securities. There is currently a limited secondary market for the securities and there can be no assurance that any secondary market for the securities will expand. | |||||||||||||||||||||||||
An independent, third party pricing service is used to estimate the current fair market value of each CDO held in the investment securities portfolio. The calculations used to determine fair value are based on the attributes of the trust preferred securities, the financial condition of the issuers of the trust preferred securities, and market based assumptions. The INTEX CDO Deal Model Library was utilized to obtain information regarding the attributes of each security and its specific collateral as of December 31, 2013 and December 31, 2012. Financial information on the issuers was also obtained from Bloomberg, the FDIC, the Office of Thrift Supervision and SNL Financial. Both published and unpublished industry sources were utilized in estimating fair value. Such information includes loan prepayment speed assumptions, discount rates, default rates, and loss severity percentages. Due to the current state of the global capital and financial markets, the fair market valuation is subject to greater uncertainty that would otherwise exist. | |||||||||||||||||||||||||
The fair market valuation for each CDO was determined based on discounted cash flow analyses. The cash flows are primarily dependent on the estimated speeds at which the trust preferred securities are expected to prepay, the estimated rates at which the trust preferred securities are expected to defer payments, the estimated rates at which the trust preferred securities are expected to default, and the severity of the losses on securities that do default. | |||||||||||||||||||||||||
Increases (decreases) in actual or expected issuer defaults tend to decrease (increase) the fair value of the Company’s senior and mezzanine tranches of CDOs. The values of the Company’s mezzanine tranches of CDOs are also affected by expected future interest rates. However, due to the structure of each security, timing of cash flows, and secondary effects on the financial performance of the underlying issuers, the effects of changes in future interest rates on the fair value of the Company’s holdings are not quantifiably estimable. | |||||||||||||||||||||||||
Also included in Level 3 investment securities classified as available for sale is a single-issuer corporate bond transferred from Level 2 in 2010 since the bond is not actively traded. Impairment would depend on the repayment ability of the underlying issuer, which is assessed through a detailed quarterly review of the issuer’s financial statements. The issuer is a “well capitalized” financial institution as defined by federal banking regulations and has demonstrated the ability to raise additional capital, when necessary, through the public capital markets. The fair value of this corporate bond is estimated by obtaining a price of a comparable floating rate debt instrument through Bloomberg. | |||||||||||||||||||||||||
Loans Held For Sale (Carried at Lower of Cost or Fair Value) | |||||||||||||||||||||||||
The fair values of loans held for sale is determined, when possible, using quoted secondary-market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. The Company did not write down any loans held for sale during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
Loans Receivable (Carried at Cost) | |||||||||||||||||||||||||
The fair values of loans receivable, excluding all nonaccrual loans and accruing loans deemed impaired with specific loan allowances, are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Due to the significant judgment involved in evaluating credit quality, loans are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Impaired Loans (Carried at Lower of Cost or Fair Value) | |||||||||||||||||||||||||
Impaired loans are those that the Company has measured impairment based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less any valuation allowance. The valuation allowance amount is calculated as the difference between the recorded investment in a loan and the present value of expected future cash flows or it is calculated based on discounted collateral values if the loans are collateral dependent. | |||||||||||||||||||||||||
Other Real Estate Owned (Carried at Lower of Cost or Fair Value) | |||||||||||||||||||||||||
These assets are carried at the lower of cost or fair value. At December 31, 2013 and 2012 these assets are carried at current fair value. | |||||||||||||||||||||||||
SBA Servicing Asset (Carried at Fair Value) | |||||||||||||||||||||||||
The SBA servicing asset is initially recorded when loans are sold and the servicing rights are retained and recorded on the balance sheet. Updated fair values are obtained on a quarterly basis and adjustments are presented as loan advisory and servicing fees on the statement of operations. The valuation begins with the projection of future cash flows for each asset based on their unique characteristics, our market-based assumptions for prepayment speeds and estimated losses and recoveries. The present value of the future cash flows are then calculated utilizing our market-based discount ratio assumptions. In all cases, we model expected payments for every loan for each quarterly period in order to create the most detailed cash flow stream possible. | |||||||||||||||||||||||||
The Company uses assumptions and estimates in determining the impairment of the SBA servicing asset. These assumptions include prepayment speeds and discount rates commensurate with the risks involved and comparable to assumptions used by participants to value and bid serving rights available for sale in the market. At December 31, 2013, the sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% adverse changes in key assumptions are included in the accompanying table. | |||||||||||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
SBA Servicing Asset | |||||||||||||||||||||||||
Fair Value of SBA Servicing Asset | $ | 3,477 | $ | 2,340 | |||||||||||||||||||||
Composition of SBA Loans Serviced for Others | |||||||||||||||||||||||||
Fixed-rate SBA loans | 0 | % | 0 | % | |||||||||||||||||||||
Adjustable-rate SBA loans | 100 | % | 100 | % | |||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Weighted Average Remaining Term | 21.4 years | 21.4 years | |||||||||||||||||||||||
Prepayment Speed | 6.72 | % | 6.59 | % | |||||||||||||||||||||
Effect on fair value of a 10% increase | $ | (83 | ) | $ | (55 | ) | |||||||||||||||||||
Effect on fair value of a 20% increase | (163 | ) | (107 | ) | |||||||||||||||||||||
Weighted Average Discount Rate | 13.59 | % | 14.23 | % | |||||||||||||||||||||
Effect on fair value of a 10% increase | $ | (162 | ) | $ | (115 | ) | |||||||||||||||||||
Effect on fair value of a 20% increase | (316 | ) | (222 | ) | |||||||||||||||||||||
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in value may not be linear. Also in this table, the effect of an adverse variation in a particular assumption on the value of the SBA servicing rights is calculated without changing any other assumption. While in reality, changes in one factor may magnify or counteract the effect of the change. | |||||||||||||||||||||||||
Restricted Stock (Carried at Cost) | |||||||||||||||||||||||||
The carrying amount of restricted stock approximates fair value, and considers the limited marketability of such securities. | |||||||||||||||||||||||||
Accrued Interest Receivable and Payable (Carried at Cost) | |||||||||||||||||||||||||
The carrying amounts of accrued interest receivable and accrued interest payable approximates fair value. | |||||||||||||||||||||||||
Deposit Liabilities (Carried at Cost) | |||||||||||||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||||||||||
Subordinated Debt (Carried at Cost) | |||||||||||||||||||||||||
Fair values of subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Due to the significant judgment involved in developing the spreads used to value the subordinated debt, it is classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Off-Balance Sheet Financial Instruments (Disclosed at Notional amounts) | |||||||||||||||||||||||||
Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. | |||||||||||||||||||||||||
The estimated fair values of the Company’s financial instruments were as follows at December 31, 2013 and 2012: | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Carrying Amount | Fair | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(dollars in thousands) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 35,880 | $ | 35,880 | $ | 35,880 | $ | - | $ | - | |||||||||||||||
Investment securities available for sale | 204,891 | 204,891 | - | 199,035 | 5,856 | ||||||||||||||||||||
Investment securities held to maturity | 21 | 21 | - | 21 | - | ||||||||||||||||||||
Restricted stock | 1,570 | 1,570 | - | 1,570 | - | ||||||||||||||||||||
Loans held for sale | 4,931 | 5,225 | - | - | 5,225 | ||||||||||||||||||||
Loans receivable, net | 667,048 | 660,237 | - | - | 660,237 | ||||||||||||||||||||
SBA servicing assets | 3,477 | 3,477 | - | - | 3,477 | ||||||||||||||||||||
Accrued interest receivable | 3,049 | 3,049 | - | 3,049 | - | ||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Demand, savings and money market | $ | 790,698 | $ | 790,698 | $ | - | $ | 790,698 | $ | - | |||||||||||||||
Time | 78,836 | 79,323 | - | 79,323 | - | ||||||||||||||||||||
Subordinated debt | 22,476 | 17,835 | - | - | 17,835 | ||||||||||||||||||||
Accrued interest payable | 237 | 237 | - | 237 | - | ||||||||||||||||||||
Off-Balance Sheet Data | |||||||||||||||||||||||||
Commitments to extend credit | - | - | |||||||||||||||||||||||
Standby letters-of-credit | - | - | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Carrying Amount | Fair | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(dollars in thousands) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 128,004 | $ | 128,004 | $ | 128,004 | $ | - | $ | - | |||||||||||||||
Investment securities available for sale | 189,259 | 189,259 | - | 183,065 | 6,194 | ||||||||||||||||||||
Investment securities held to maturity | 67 | 69 | - | 69 | - | ||||||||||||||||||||
Restricted stock | 3,816 | 3,816 | - | 3,816 | - | ||||||||||||||||||||
Loans held for sale | 82 | 82 | - | - | 82 | ||||||||||||||||||||
Loans receivable, net | 608,359 | 603,237 | - | - | 603,237 | ||||||||||||||||||||
SBA servicing assets | 2,340 | 2,340 | - | - | 2,340 | ||||||||||||||||||||
Accrued interest receivable | 3,128 | 3,128 | - | 3,128 | - | ||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Demand, savings and money market | $ | 765,967 | $ | 765,967 | $ | - | $ | 765,967 | $ | - | |||||||||||||||
Time | 123,234 | 124,044 | - | 124,044 | - | ||||||||||||||||||||
Subordinated debt | 22,476 | 20,187 | - | - | 20,187 | ||||||||||||||||||||
Accrued interest payable | 301 | 301 | - | 301 | - | ||||||||||||||||||||
Off-Balance Sheet Data | |||||||||||||||||||||||||
Commitments to extend credit | - | - | |||||||||||||||||||||||
Standby letters-of-credit | - | - | |||||||||||||||||||||||
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Stock Based Compensation [Abstract] | ' | ||||||||||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||||||||||
15. Stock Based Compensation | |||||||||||||||||||||||||
The Company has a Stock Option and Restricted Stock Plan (“Plan”), under which stock options, restricted stock or stock appreciation rights may be granted to the Company’s employees, directors, and certain consultants. Under the terms of the Plan, 1.5 million shares of common stock, plus an annual increase equal to the number of shares needed to restore the maximum number of shares that may be available for grant under the Plan to 1.5 million shares, are available for such grants. As of December 31, 2013, the only grants under the Plan have been option grants. The Plan provides that the exercise price of each option granted equals the market price of the Company’s stock on the date of grant. Any option granted vests within one to four years and has a maximum term of ten years. | |||||||||||||||||||||||||
The Company utilized the Black-Scholes option pricing model to calculate the estimated fair value of each stock option granted on the date of the grant. A summary of the assumptions used in the Black-Scholes option pricing model for 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Dividend yield(1) | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||||
Expected volatility(2) | 54.88% to 55.61% | 53.12% to 54.49% | 43.33% to 49.11% | ||||||||||||||||||||||
Risk-free interest rate(3) | 1.28% to 2.03% | 1.01% to 1.61% | 1.38% to 2.84% | ||||||||||||||||||||||
Expected life(4) | 7.0 years | 7.0 years | 7.0 years | ||||||||||||||||||||||
-1 | A dividend yield of 0.0% is utilized because cash dividends have never been paid. | ||||||||||||||||||||||||
-2 | Expected volatility is based on Bloomberg’s seven year volatility calculation for “FRBK” stock. | ||||||||||||||||||||||||
-3 | The risk-free interest rate is based on the seven year Treasury bond. | ||||||||||||||||||||||||
-4 | The expected life reflects a 3 to 4 year “all or nothing” vesting period, the maximum ten year term and review of historical behavior. | ||||||||||||||||||||||||
During 2013, 127,287 shares vested as compared to 146,000 shares in 2012 and 53,500 shares in 2011. Expense is recognized ratably over the period required to vest. At December 31, 2013 the intrinsic value of the 1,215,530 options outstanding was $421,510, while the intrinsic value of the 306,217 exercisable (vested) options was $43,195. During 2013, 96,250 options were forfeited with a weighted average grant date fair value of $306,483. | |||||||||||||||||||||||||
Information regarding stock based compensation for the years ended December 31, 2013, 2012 and 2011 is set forth below: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Stock based compensation expense recognized | $ | 325,000 | $ | 370,000 | $ | 359,000 | |||||||||||||||||||
Number of unvested stock options | 909,313 | 710,600 | 612,350 | ||||||||||||||||||||||
Fair value of unvested stock options | $ | 1,245,679 | $ | 1,091,948 | $ | 1,337,780 | |||||||||||||||||||
Amount remaining to be recognized as expense | $ | 545,862 | $ | 467,314 | $ | 554,763 | |||||||||||||||||||
The remaining amount of $545,862 will be recognized ratably as expense through October 2017. | |||||||||||||||||||||||||
A summary of stock option activity under the Plan as of December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted Average Exercise Price | Weighted Average Exercise Price | Weighted Average Exercise Price | |||||||||||||||||||||||
Shares | Shares | Shares | |||||||||||||||||||||||
Outstanding, beginning of year | 964,530 | $ | 4.38 | 839,417 | $ | 6.04 | 663,500 | $ | 7.32 | ||||||||||||||||
Granted | 347,250 | 2.72 | 296,750 | 1.95 | 263,850 | 3.12 | |||||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||
Forfeited | (96,250 | ) | 7.39 | (171,637 | ) | 8.32 | (87,933 | ) | 5.73 | ||||||||||||||||
Outstanding, end of year | 1,215,530 | $ | 3.66 | 964,530 | $ | 4.38 | 839,417 | $ | 6.04 | ||||||||||||||||
Options exercisable at year-end | 306,217 | $ | 6.24 | 253,930 | $ | 7.92 | 227,067 | $ | 9 | ||||||||||||||||
Weighted average fair value of options granted during the year | $ | 1.51 | $ | 1.05 | $ | 1.61 | |||||||||||||||||||
There were no stock options exercised during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
The following table summarizes information about options outstanding at December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Weighted-Average Remaining Contractual Life | Weighted-Average Exercise Price | Weighted-Average Exercise Price | |||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | ||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||
$1.39 to $2.95 | 651,500 | 8.7 | $ | 2.33 | 41,937 | $ | 1.95 | ||||||||||||||||||
$3.14 to $5.12 | 311,750 | 6.8 | 3.72 | 12,000 | 4.5 | ||||||||||||||||||||
$5.70 to $8.00 | 228,507 | 3.7 | 6.58 | 228,507 | 6.58 | ||||||||||||||||||||
$9.93 to $12.13 | 23,773 | 2.3 | 11.36 | 23,773 | 11.36 | ||||||||||||||||||||
1,215,530 | $ | 3.66 | 306,217 | $ | 6.24 | ||||||||||||||||||||
A roll-forward of non-vested options during the year ended December 31, 2013 is as follows: | |||||||||||||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||||||
Nonvested, beginning of year | 710,600 | $ | 1.54 | ||||||||||||||||||||||
Granted | 347,250 | 1.51 | |||||||||||||||||||||||
Vested | (127,287 | ) | 1.63 | ||||||||||||||||||||||
Forfeited | (21,250 | ) | 1.4 | ||||||||||||||||||||||
Nonvested, end of year | 909,313 | $ | 1.37 |
Segment_Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Segment Reporting | ' |
16. Segment Reporting | |
The Company has one reportable segment: community banking. The community banking segment primarily encompasses the commercial loan and deposit activities of Republic, as well as consumer loan products in the area surrounding its stores. | |
Transactions_with_Affiliates_a
Transactions with Affiliates and Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Transactions with Affiliates and Related Parties [Abstract] | ' |
Transactions with Affiliates and Related Parties | ' |
17. Transactions with Affiliates and Related Parties | |
At December 31, 2013 and 2012, Republic had outstanding balances of $2.7 million and $3.3 million, respectively, of commercial loans, which had been participated to First Bank of Delaware (“FBD”), a wholly-owned subsidiary of the Company prior to January 1, 2005. As of December 31, 2013 and 2012 Republic had no outstanding commercial loan balances it had purchased from FBD. The above loan participations and sales were made at arms length. They are made as a result of lending limit and other regulatory requirements. | |
The Board of Directors of FBD approved a Plan of Liquidation and Dissolution on April 27, 2012. As a result of stockholder approval of the Plan of Dissolution, FBD executed the FBD Liquidating Trust Agreement. On November 6, 2012, FBD gave notice to the Financial Industry Regulatory Authority of its intent to dissolve on or about November 16, 2012. | |
The Company made payments to related parties in the amount of $412,000 during 2013 as compared to $346,000 during 2012 and $333,000 during 2011. The disbursements made during 2013, 2012 and 2011 include $127,000, $95,000, and $83,000, respectively, in fees for marketing, graphic design, architectural and project management services paid to InterArch, a company owned by the spouse of Vernon W. Hill, II. Mr. Hill is a major shareholder of the Company, beneficially owning 9.9% of the common shares currently outstanding. He also acts as a consultant for the Company and is paid $250,000 annually. | |
The Company paid $35,000 during 2013 to Brian Communications for public relations services. Brian Tierney, a member of the Board of Directors, is the CEO of Brian Communications, a strategic communications agency. | |
Parent_Company_Financial_Infor
Parent Company Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company Financial Information [Abstract] | ' | ||||||||||||
Parent Company Financial Information | ' | ||||||||||||
18. Parent Company Financial Information | |||||||||||||
The following financial statements for Republic First Bancorp, Inc. (Parent Company) should be read in conjunction with the consolidated financial statements and the other notes related to the consolidated financial statements. | |||||||||||||
Balance Sheet | |||||||||||||
December 31, 2013 and 2012 | |||||||||||||
(Dollars in thousands) | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
ASSETS | |||||||||||||
Cash | $ | 697 | $ | 736 | |||||||||
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding junior obligations of the corporation | 676 | 676 | |||||||||||
Investment in subsidiaries | 80,666 | 88,945 | |||||||||||
Other assets | 3,354 | 2,848 | |||||||||||
Total Assets | $ | 85,393 | $ | 93,205 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Liabilities | |||||||||||||
Accrued expenses | $ | 18 | $ | 827 | |||||||||
Corporation-obligated mandatorily redeemable securities of subsidiary trust holding solely junior subordinated debentures of the corporation | 22,476 | 22,476 | |||||||||||
Total Liabilities | 22,494 | 23,303 | |||||||||||
Shareholders’ Equity | |||||||||||||
Total Shareholders’ Equity | 62,899 | 69,902 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 85,393 | $ | 93,205 | |||||||||
Statements of Operations, Comprehensive Income (Loss), and Changes in Shareholders’ Equity | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011 | |||||||||||||
(Dollars in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest income | $ | 33 | $ | 34 | $ | 33 | |||||||
Dividend income from subsidiaries | 1,859 | - | 212 | ||||||||||
Total income | 1,892 | 34 | 245 | ||||||||||
Trust preferred interest expense | 1,112 | 1,134 | 1,117 | ||||||||||
Expenses | 318 | 317 | 288 | ||||||||||
Total expenses | 1,430 | 1,451 | 1,405 | ||||||||||
Net income (loss) before taxes | 462 | (1,417 | ) | (1,160 | ) | ||||||||
Benefit for income taxes | (489 | ) | (496 | ) | (406 | ) | |||||||
Income (loss) before undistributed income of subsidiaries | 951 | (921 | ) | (754 | ) | ||||||||
Equity in undistributed income (loss) of subsidiaries | (4,431 | ) | 4,535 | (23,948 | ) | ||||||||
Net income (loss) | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Net income (loss) | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Total other comprehensive income (loss) | (3,848 | ) | 1,067 | 1,048 | |||||||||
Total comprehensive income (loss) | $ | (7,328 | ) | $ | 4,681 | $ | (23,654 | ) | |||||
Shareholders’ equity, beginning of year | $ | 69,902 | $ | 64,851 | $ | 88,146 | |||||||
Stock based compensation | 325 | 370 | 359 | ||||||||||
Net income (loss) | (3,480 | ) | 3,614 | (24,702 | ) | ||||||||
Total other comprehensive income (loss) | (3,848 | ) | 1,067 | 1,048 | |||||||||
Shareholders’ equity, end of year | $ | 62,899 | $ | 69,902 | $ | 64,851 | |||||||
Statements of Cash Flows | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011 | |||||||||||||
(Dollars in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||
Share based compensation | 325 | 370 | 359 | ||||||||||
Increase in other assets | (506 | ) | (542 | ) | (486 | ) | |||||||
(Decrease) increase in other liabilities | (809 | ) | (226 | ) | 223 | ||||||||
Equity in undistributed (income) losses of subsidiaries | 4,431 | (4,535 | ) | 23,948 | |||||||||
Net cash used in operating activities | (39 | ) | (1,319 | ) | (658 | ) | |||||||
Cash flows from investing activities: | |||||||||||||
Investment in subsidiary | - | - | (8,000 | ) | |||||||||
Net cash used in investing activities | - | - | (8,000 | ) | |||||||||
Decrease in cash | (39 | ) | (1,319 | ) | (8,658 | ) | |||||||
Cash, beginning of period | 736 | 2,055 | 10,713 | ||||||||||
Cash, end of period | $ | 697 | $ | 736 | $ | 2,055 | |||||||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (unaudited) [Abstract] | ' | ||||||||||||||||
Quarterly Financial Data (unaudited) | ' | ||||||||||||||||
19. Quarterly Financial Data (unaudited) | |||||||||||||||||
The following represents summarized unaudited quarterly financial data of the Company for each of the quarters ended during 2013 and 2012. | |||||||||||||||||
Summary of Selected Quarterly Consolidated Financial Data | |||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
December 31st | September 30th | June 30th | March 31st | ||||||||||||||
2013 | |||||||||||||||||
Interest income | $ | 9,544 | $ | 9,339 | $ | 9,215 | $ | 9,107 | |||||||||
Interest expense | 1,106 | 1,113 | 1,117 | 1,254 | |||||||||||||
Net interest income | 8,438 | 8,226 | 8,098 | 7,853 | |||||||||||||
Provision for loan losses | 3,760 | 250 | 925 | - | |||||||||||||
Non-interest income | 2,211 | 1,892 | 2,870 | 2,243 | |||||||||||||
Non-interest expense | 10,117 | 12,108 | 9,056 | 9,130 | |||||||||||||
Provision (benefit) for income taxes | 33 | (18 | ) | (24 | ) | (26 | ) | ||||||||||
Net income (loss) | $ | (3,261 | ) | $ | (2,222 | ) | $ | 1,011 | $ | 992 | |||||||
Net income (loss) per share (1): | |||||||||||||||||
Basic | $ | (0.13 | ) | $ | (0.09 | ) | $ | 0.04 | $ | 0.04 | |||||||
Diluted | $ | (0.13 | ) | $ | (0.09 | ) | $ | 0.04 | $ | 0.04 | |||||||
2012 | |||||||||||||||||
Interest income | $ | 9,423 | $ | 9,612 | $ | 9,649 | $ | 9,576 | |||||||||
Interest expense | 1,406 | 1,436 | 1,624 | 1,900 | |||||||||||||
Net interest income | 8,017 | 8,176 | 8,025 | 7,676 | |||||||||||||
Provision (credit) for loan losses | 750 | 850 | 500 | (750 | ) | ||||||||||||
Non-interest income | 2,852 | 1,831 | 2,499 | 1,646 | |||||||||||||
Non-interest expense | 9,269 | 8,787 | 9,010 | 8,836 | |||||||||||||
Provision (benefit) for income taxes | (54 | ) | (28 | ) | 7 | (69 | ) | ||||||||||
Net income | $ | 904 | $ | 398 | $ | 1,007 | $ | 1,305 | |||||||||
Net income per share (1): | |||||||||||||||||
Basic | $ | 0.03 | $ | 0.02 | $ | 0.04 | $ | 0.05 | |||||||||
Diluted | $ | 0.03 | $ | 0.02 | $ | 0.04 | $ | 0.05 | |||||||||
-1 | Quarterly net income (loss) per share does not add to full year net income (loss) per share due to rounding. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Republic. The Company follows accounting standards set by the Financial Accounting Standards Board (“FASB”). The FASB sets accounting principles generally accepted in the United States of America (“US GAAP”) that are followed to ensure consistent reporting of financial condition, results of operations, and cash flows. | |||||||||||||
The Company has evaluated subsequent events through the date of issuance of the financial data included herein. | |||||||||||||
Risks and Uncertainties and Certain Significant Estimates | ' | ||||||||||||
Risks and Uncertainties and Certain Significant Estimates | |||||||||||||
The earnings of the Company depend primarily on the earnings of Republic. The earnings of Republic are dependent primarily upon the level of net interest income, which is the difference between interest earned on its interest-earning assets, such as loans and investments, and the interest paid on its interest-bearing liabilities, such as deposits and borrowings. Accordingly, our results of operations are subject to risks and uncertainties surrounding our exposure to changes in the interest rate environment. | |||||||||||||
Prepayments on residential real estate mortgage and other fixed rate loans and mortgage-backed securities vary significantly and may cause significant fluctuations in interest margins. | |||||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Significant estimates are made by management in determining the allowance for loan losses, carrying values of other real estate owned, assessment of other than temporary impairment (“OTTI”) of investment securities, fair value of financial instruments and the realization of deferred income tax assets. Consideration is given to a variety of factors in establishing these estimates. | |||||||||||||
In estimating the allowance for loan losses, management considers current economic conditions, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews, borrowers’ perceived financial and managerial strengths, the adequacy of underlying collateral, if collateral dependent, or present value of future cash flows, and other relevant factors. An estimate for the carrying value of other real estate owned is normally derived through appraisals which are updated on a regular basis or through agreements of sale that have been negotiated. Because the allowance for loan losses and carrying value of other real estate owned are dependent, to a great extent, on the general economy and other conditions that may be beyond the Company’s control, the estimate of the allowance for loan losses and the carrying values of other real estate owned could differ materially in the near term. | |||||||||||||
In estimating OTTI of investment securities, securities are evaluated on at least a quarterly basis and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other than temporary. To determine whether a loss in value is other than temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline, the intent to hold the security and the likelihood of the Company not being required to sell the security prior to an anticipated recovery in the fair value. The term “other than temporary” is not intended to indicate that the decline is permanent, but indicates that the prospect for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced by the portion of the decline related to credit impairment. | |||||||||||||
In evaluating the Company’s ability to recover deferred tax assets, management considers all available positive and negative evidence. Management also makes assumptions on the amount of future taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require management to make judgments that are consistent with the plans and estimates used to manage the Company’s business. As a result of cumulative losses in recent years and the slow and uneven growth in the current economic environment, the Company has decided to currently exclude future taxable income from its analysis of the ability to recover deferred tax assets and has recorded a valuation allowance against its deferred tax assets. An increase or decrease in the valuation allowance would result in an adjustment to income tax expense in the period and could have a significant impact on the Company’s future earnings. | |||||||||||||
Significant Group Concentrations of Credit Risk | ' | ||||||||||||
Significant Group Concentrations of Credit Risk | |||||||||||||
Most of the Company’s activities are with customers located within the Greater Philadelphia region. Note 3 – Investment Securities discusses the types of investment securities that the Company invests in. Note 4 – Loans Receivable discusses the types of lending that the Company engages in as well as loan concentrations. The Company does not have a significant concentration of credit risk with any one customer. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
For purposes of the statements of cash flows, the Company considers all cash and due from banks, interest-bearing deposits with an original maturity of ninety days or less and federal funds sold, maturing in ninety days or less, to be cash and cash equivalents. | |||||||||||||
Restrictions on Cash and Due from Banks | ' | ||||||||||||
Restrictions on Cash and Due from Banks | |||||||||||||
Republic is required to maintain certain average reserve balances as established by the Federal Reserve Board. The amounts of those balances for the reserve computation periods that include December 31, 2013 and 2012 were approximately $3.1 million and $1.6 million, respectively. These requirements were satisfied through the restriction of vault cash and a balance at the Federal Reserve Bank of Philadelphia. | |||||||||||||
Investment Securities | ' | ||||||||||||
Investment Securities | |||||||||||||
Held to Maturity – Certain debt securities that management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at their remaining unpaid principal balances, net of unamortized premiums or unaccreted discounts. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. | |||||||||||||
Available for Sale – Debt and equity securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity, and changes in the availability of and in the yield of alternative investments, are classified as available for sale. These assets are carried at fair value. Unrealized gains and losses are excluded from operations and are reported net of tax as a separate component of other comprehensive income until realized. Realized gains and losses on the sale of investment securities are reported in the consolidated statements of operations and determined using the adjusted cost of the specific security sold on the trade date. | |||||||||||||
Investment securities are evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. To determine whether a loss in value is other-than-temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline, the intent to hold the security and the likelihood of the Company not being required to sell the security prior to an anticipated recovery in the fair value. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the portion of the decline related to credit impairment is charged to earnings. Impairment charges on bank pooled trust preferred securities of $0, $34,000, and $42,000 were recognized during the years ended December 31, 2013, 2012 and 2011, respectively, as a result of estimated other-than-temporary impairment. | |||||||||||||
Restricted Stock | ' | ||||||||||||
Restricted Stock | |||||||||||||
Restricted stock, which represents a required investment in the capital stock of correspondent banks related to available credit facilities, was carried at cost as of December 31, 2013 and 2012. As of those dates, restricted stock consisted of investments in the capital stock of the FHLB of Pittsburgh and Atlantic Central Bankers Bank (“ACBB”). The required investment in the capital stock of the FHLB is calculated based on outstanding loan balances and open credit facilities with the FHLB. Excess investments are returned to Republic on a quarterly basis. In December 2009, the FHLB notified member banks that it was temporarily suspending the repurchase of capital stock along with all dividend payments. In October 2010, the FHLB of Pittsburgh lifted this suspension and began partial repurchases of excess investments in its capital stock. During 2013 the FHLB of Pittsburgh repurchased all excess restricted stock outstanding and made regular quarterly dividend payments. | |||||||||||||
Loans Receivable | ' | ||||||||||||
Loans Receivable | |||||||||||||
The loans receivable portfolio is segmented into commercial real estate loans, construction and land development loans, commercial and industrial loans, owner occupied real estate loans, consumer and other loans, and residential mortgages. Consumer loans consist of home equity loans and other consumer loans. | |||||||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated based upon the principal amounts outstanding. The Company defers and amortizes certain origination and commitment fees, and certain direct loan origination costs over the contractual life of the related loan. This results in an adjustment of the related loans yield. | |||||||||||||
The Company accounts for amortization of premiums and accretion of discounts related to loans purchased based upon the effective interest method. If a loan prepays in full before the contractual maturity date, any unamortized premiums, discounts or fees are recognized immediately as an adjustment to interest income. | |||||||||||||
Loans are generally classified as non-accrual if they are past due as to maturity or payment of principal or interest for a period of more than 90 days, unless such loans are well-secured and in the process of collection. Loans that are on a current payment status or past due less than 90 days may also be classified as non-accrual if repayment in full of principal and/or interest is in doubt. Loans may be returned to accrual status when all principal and interest amounts contractually due are reasonably assured of repayment within an acceptable period of time, and there is a sustained period of repayment performance of interest and principal by the borrower, in accordance with the contractual terms. Generally, in the case of non-accrual loans, cash received is applied to reduce the principal outstanding. | |||||||||||||
Allowance for Credit Losses | ' | ||||||||||||
Allowance for Credit Losses | |||||||||||||
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments would represent management’s estimate of losses inherent in its unfunded loan commitments and would be recorded in other liabilities on the consolidated balance sheet, if necessary. The allowance for credit losses is established through a provision for loan losses charged to operations. Loans are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged off are credited to the allowance. | |||||||||||||
The allowance for credit losses is an amount that represents management’s estimate of known and inherent losses related to the loan portfolio and unfunded loan commitments. Because the allowance for credit losses is dependent, to a great extent, on the general economy and other conditions that may be beyond Republic’s control, the estimate of the allowance for credit losses could differ materially in the near term. | |||||||||||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are categorized as “internally classified”. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All identified losses are immediately charged off and therefore no portion of the allowance for loan losses is restricted to any individual loan or group of loans, and the entire allowance is available to absorb any and all loan losses. | |||||||||||||
In estimating the allowance for credit losses, management considers current economic conditions, past loss experience, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews and regulatory examinations, borrowers’ perceived financial and managerial strengths, the adequacy of underlying collateral, if collateral dependent, or present value of future cash flows, and other relevant and qualitative risk factors. These qualitative risk factors include: | |||||||||||||
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. | ||||||||||||
Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. | |||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment, include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | |||||||||||||
An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. | |||||||||||||
For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. | |||||||||||||
For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. | |||||||||||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | |||||||||||||
Loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. | |||||||||||||
The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. | |||||||||||||
In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. | |||||||||||||
Transfers of Financial Assets | ' | ||||||||||||
Transfers of Financial Assets | |||||||||||||
The Company accounts for the transfers and servicing financial assets in accordance with ASC 860, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. ASC 860, revises the standards for accounting for the securitizations and other transfers of financial assets and collateral. | |||||||||||||
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||
Loans Held for Sale | ' | ||||||||||||
Loans Held for Sale | |||||||||||||
Loans held for sale consist of the guaranteed portion of SBA loans that the Company intends to sell after origination and are reflected at the lower of aggregate cost or fair value. When the sale of the loan occurs, the premium received is combined with the estimated present value of future cash flows on the related servicing asset and recorded as a Gain on the Sale of SBA loans which is categorized as non-interest income. Subsequent fees collected for servicing of the sold portion of a loan are combined with fair value adjustments to the SBA servicing asset and recorded as a net amount in Loan Advisory and Servicing Fees, which is also categorized as non-interest income. | |||||||||||||
Guarantees | ' | ||||||||||||
Guarantees | |||||||||||||
The Company accounts for guarantees in accordance with ASC 815 Guarantor’s Accounting and Disclosure Requirements for Guarantees, including Indirect Guarantees of Indebtedness of Others. ASC 815 requires a guarantor entity, at the inception of a guarantee covered by the measurement provisions of the interpretation, to record a liability for the fair value of the obligation undertaken in issuing the guarantee. The Company has financial and performance letters of credit. Financial letters of credit require the Company to make payment if the customer’s financial condition deteriorates, as defined in the agreements. Performance letters of credit require the Company to make payments if the customer fails to perform certain non-financial contractual obligations. The maximum potential undiscounted amount of future payments of these letters of credit as of December 31, 2013 is $2.7 million and they expire as follows: $2.3 million in 2014 and $385,000 in 2019. Amounts due under these letters of credit would be reduced by any proceeds that the Company would be able to obtain in liquidating the collateral for the loans, which varies depending on the customer. | |||||||||||||
Premises and Equipment | ' | ||||||||||||
Premises and Equipment | |||||||||||||
Premises and equipment (including land) are stated at cost less accumulated depreciation and amortization. Depreciation of furniture and equipment is calculated over the estimated useful life of the asset using the straight-line method for financial reporting purposes, and accelerated methods for income tax purposes. The estimated useful lives are 40 years for buildings and 3 to 13 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of their estimated useful lives or terms of their respective leases, which range from 1 to 30 years. Repairs and maintenance are charged to current operations as incurred, and renewals and major improvements are capitalized. | |||||||||||||
Other Real Estate Owned | ' | ||||||||||||
Other Real Estate Owned | |||||||||||||
Other real estate owned consists of assets acquired through, or in lieu of, loan foreclosure. They are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less the cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from other real estate owned. | |||||||||||||
Bank Owned Life Insurance | ' | ||||||||||||
Bank Owned Life Insurance | |||||||||||||
The Company carries no investment in bank owned life insurance (“BOLI”) policies as of December 31, 2013. | |||||||||||||
Advertising Costs | ' | ||||||||||||
Advertising Costs | |||||||||||||
It is the Company’s policy to expense advertising costs in the period in which they are incurred. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities and enacted changes in tax rates and laws are recognized in the period in which they occur. | |||||||||||||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||||||
The Company accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. | |||||||||||||
The Company recognizes interest and penalties on income taxes, if any, as a component of the provision for income taxes. | |||||||||||||
Stock Based Compensation | ' | ||||||||||||
Stock Based Compensation | |||||||||||||
The Company has a Stock Option and Restricted Stock Plan (“Plan”), under which stock options, restricted stock or stock appreciation rights may be granted to the Company’s employees, directors, and certain consultants. Under the terms of the Plan, 1.5 million shares of common stock, plus an annual increase equal to the number of shares needed to restore the maximum number of shares that may be available for grant under the Plan to 1.5 million shares, are available for such grants. As of December 31, 2013, the only grants under the Plan have been option grants. The Plan provides that the exercise price of each option granted equals the market price of the Company’s stock on the date of grant. Options granted pursuant to the Plan vest within one to four years from the date of grant and have a maximum term of 10 years. | |||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings Per Share | |||||||||||||
Earnings per share (“EPS”) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income (loss) by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of common shares outstanding plus dilutive common stock equivalents (“CSE”). CSEs consist of dilutive stock options granted through the Company’s Plan and convertible securities related to trust preferred securities issued in 2008. In the diluted EPS computation, the after tax interest expense on the trust preferred securities issuance is added back to the net income. In 2013, 2012 and 2011, the effect of CSEs (convertible securities related to the trust preferred securities only) and the related add back of after tax interest expense was considered anti-dilutive and therefore was not included in the EPS calculations. | |||||||||||||
The calculation of EPS for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
(dollars in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Net income (loss) - basic and diluted | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Weighted average shares outstanding | 25,973 | 25,973 | 25,973 | ||||||||||
Net income (loss) per share – basic | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | |||||
Weighted average shares outstanding (including dilutive CSEs) | 25,973 | 25,992 | 25,973 | ||||||||||
Net income (loss) per share – diluted | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | |||||
Comprehensive Income / (Loss) | ' | ||||||||||||
Comprehensive Income / (Loss) | |||||||||||||
The Company presents as a component of comprehensive income (loss) the amounts from transactions and other events, which currently are excluded from the consolidated statements of operations and are recorded directly to shareholders’ equity. These amounts consist of unrealized holding gains (losses) on available for sale securities. | |||||||||||||
Trust Preferred Securities | ' | ||||||||||||
Trust Preferred Securities | |||||||||||||
The Company has sponsored three outstanding issues of corporation-obligated mandatorily redeemable capital securities of a subsidiary trust holding solely junior subordinated debentures of the corporation, more commonly known as trust preferred securities. The subsidiary trusts are not consolidated with the Company for financial reporting purposes. The purpose of the issuances of these securities was to increase capital. The trust preferred securities qualify as Tier 1 capital for regulatory purposes in amounts up to 25% of total Tier 1 capital. See Note 7 "Borrowings" for further information regarding the issuances. | |||||||||||||
Variable Interest Entities | ' | ||||||||||||
Variable Interest Entities | |||||||||||||
The Company follows the guidance under ASC 810, Consolidation, with regard to variable interest entities. ASC 810 clarifies the application of consolidation principles for certain legal entities in which voting rights are not effective in identifying the investor with the controlling financial interest. An entity is subject to consolidation under ASC 810 if the investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, are unable to direct the entity’s activities, or are not exposed to the entity’s losses or entitled to its residual returns ("variable interest entities"). Variable interest entities within the scope of ASC 810 will be required to be consolidated by their primary beneficiary. The primary beneficiary of a variable interest entity is determined to be the party that absorbs a majority of the entity's expected losses, receives a majority of its expected returns, or both. | |||||||||||||
The Company does not consolidate its subsidiary trusts. ASC 810 precludes consideration of the call option embedded in the preferred securities when determining if the Company has the right to a majority of the trusts’ expected residual returns. The non-consolidation results in the investment in the common securities of the trusts to be included in other assets with a corresponding increase in outstanding debt of $676,000. In addition, the income received on the Company’s investment in the common securities of the trusts is included in other income. | |||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||
Recent Accounting Pronouncements | |||||||||||||
ASU 2014-04 | |||||||||||||
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructuring by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure – a consensus of the FASB Emerging Issues Task Force. The guidance clarifies when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized. For public business entities, the ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the ASU is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. The Company does not believe the adoption of the amendment to this guidance will have a material impact on the financial statements. | |||||||||||||
ASU 2013-02 | |||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Comprehensive Income.” The amendments in this ASU are intended to improve the reporting of reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account instead of directly to income or expense in the same reporting period. The ASU was effective for public entities for reporting periods beginning after December 15, 2012 and did not have a material impact on the Company’s financial statements. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to 2012 and 2011 information to conform to the 2013 presentation. The reclassifications had no effect on results of operations. | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Calculation of EPS | ' | ||||||||||||
The calculation of EPS for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
(dollars in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Net income (loss) - basic and diluted | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Weighted average shares outstanding | 25,973 | 25,973 | 25,973 | ||||||||||
Net income (loss) per share – basic | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) | |||||
Weighted average shares outstanding (including dilutive CSEs) | 25,973 | 25,992 | 25,973 | ||||||||||
Net income (loss) per share – diluted | $ | (0.13 | ) | $ | 0.14 | $ | (0.95 | ) |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||||||||||
Summary of the amortized cost and market value of securities available for sale and securities held to maturity | ' | ||||||||||||||||||||||||
A summary of the amortized cost and market value of securities available for sale and securities held to maturity at December 31, 2013 and 2012 is as follows: | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair | ||||||||||||||||||||||
Value | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 127,242 | $ | 665 | $ | (4,467 | ) | $ | 123,440 | ||||||||||||||||
Mortgage-backed securities | 15,669 | 623 | (111 | ) | 16,181 | ||||||||||||||||||||
Municipal securities | 9,737 | 68 | (162 | ) | 9,643 | ||||||||||||||||||||
Corporate bonds | 32,174 | 1,079 | - | 33,253 | |||||||||||||||||||||
Asset-backed securities | 19,089 | 318 | - | 19,407 | |||||||||||||||||||||
Trust preferred securities | 5,277 | - | (2,427 | ) | 2,850 | ||||||||||||||||||||
Other securities | 115 | 2 | - | 117 | |||||||||||||||||||||
Total securities available for sale | $ | 209,303 | $ | 2,755 | $ | (7,167 | ) | $ | 204,891 | ||||||||||||||||
U.S. Government agencies | $ | 1 | $ | - | $ | - | $ | 1 | |||||||||||||||||
Other securities | 20 | - | - | 20 | |||||||||||||||||||||
Total securities held to maturity | $ | 21 | $ | - | $ | - | $ | 21 | |||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair | ||||||||||||||||||||||
Value | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 97,959 | $ | 1,830 | $ | (6 | ) | $ | 99,783 | ||||||||||||||||
Mortgage-backed securities | 20,626 | 1,014 | - | 21,640 | |||||||||||||||||||||
Municipal securities | 11,150 | 967 | (16 | ) | 12,101 | ||||||||||||||||||||
Corporate bonds | 32,231 | 639 | (185 | ) | 32,685 | ||||||||||||||||||||
Asset-backed securities | 19,785 | 135 | (191 | ) | 19,729 | ||||||||||||||||||||
Trust preferred securities | 5,785 | - | (2,598 | ) | 3,187 | ||||||||||||||||||||
Other securities | 131 | 3 | - | 134 | |||||||||||||||||||||
Total securities available for sale | $ | 187,667 | $ | 4,588 | $ | (2,996 | ) | $ | 189,259 | ||||||||||||||||
U.S. Government agencies | $ | 1 | $ | - | $ | - | $ | 1 | |||||||||||||||||
Other securities | 66 | 2 | - | 68 | |||||||||||||||||||||
Total securities held to maturity | $ | 67 | $ | 2 | $ | - | $ | 69 | |||||||||||||||||
Schedule of amortized cost and estimated market value of investment securities by contractual maturity | ' | ||||||||||||||||||||||||
The maturity distribution of the amortized cost and estimated market value of investment securities by contractual maturity at December 31, 2013 is as follows: | |||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Due in 1 year or less | $ | 1,192 | $ | 1,195 | $ | - | $ | - | |||||||||||||||||
After 1 year to 5 years | 74,270 | 74,351 | 21 | 21 | |||||||||||||||||||||
After 5 years to 10 years | 123,418 | 118,653 | - | - | |||||||||||||||||||||
After 10 years | 10,423 | 10,692 | - | - | |||||||||||||||||||||
Total | $ | 209,303 | $ | 204,891 | $ | 21 | $ | 21 | |||||||||||||||||
Schedule of credit-related impairment losses on securities | ' | ||||||||||||||||||||||||
The following table presents a roll-forward of the balance of credit-related impairment losses on securities held at December 31, 2013 and 2012 for which a portion of OTTI was recognized in other comprehensive income: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Beginning Balance, January 1st | $ | 3,959 | $ | 3,925 | |||||||||||||||||||||
Additional credit-related impairment loss on securities for which an | |||||||||||||||||||||||||
other-than-temporary impairment was previously recognized | - | 34 | |||||||||||||||||||||||
Reductions for securities paid off during the period | - | - | |||||||||||||||||||||||
Reductions for securities for which the amount previously recognized in other | |||||||||||||||||||||||||
comprehensive income was recognized in earnings because the Company | |||||||||||||||||||||||||
intends to sell the security | - | - | |||||||||||||||||||||||
Ending Balance, December 31st | $ | 3,959 | $ | 3,959 | |||||||||||||||||||||
Schedule of unrealized loss on investments | ' | ||||||||||||||||||||||||
The following tables show the fair value and gross unrealized losses associated with the investment portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | ||||||||||||||||||||
(dollars in thousands) | Value | Value | Value | ||||||||||||||||||||||
Collateralized mortgage obligations | $ | 73,137 | $ | 3,923 | $ | 8,697 | $ | 544 | $ | 81,834 | $ | 4,467 | |||||||||||||
Mortgage-backed securities | 1,450 | 41 | 1,123 | 70 | 2,573 | 111 | |||||||||||||||||||
Municipal securities | 5,108 | 162 | - | - | 5,108 | 162 | |||||||||||||||||||
Corporate bonds | - | - | - | - | - | - | |||||||||||||||||||
Trust preferred securities | - | - | 2,850 | 2,427 | 2,850 | 2,427 | |||||||||||||||||||
Total | $ | 79,695 | $ | 4,126 | $ | 12,670 | $ | 3,041 | $ | 92,365 | $ | 7,167 | |||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | ||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Collateralized mortgage obligations | $ | 9,991 | $ | 6 | $ | - | $ | - | $ | 9,991 | $ | 6 | |||||||||||||
Municipal securities | 1,050 | 16 | - | - | 1,050 | 16 | |||||||||||||||||||
Corporate bonds | - | - | 9,811 | 185 | 9,811 | 185 | |||||||||||||||||||
Asset-backed securities | 9,218 | 191 | - | - | 9,218 | 191 | |||||||||||||||||||
Trust preferred securities | - | - | 3,187 | 2,598 | 3,187 | 2,598 | |||||||||||||||||||
Total | $ | 20,259 | $ | 213 | $ | 12,998 | $ | 2,783 | $ | 33,257 | $ | 2,996 | |||||||||||||
Schedule of trust preferred securities | ' | ||||||||||||||||||||||||
The following table provides additional detail about trust preferred securities as of December 31, 2013. | |||||||||||||||||||||||||
(dollars in thousands) | Class / Tranche | Amortized Cost | Fair | Unrealized Losses | Lowest Credit Rating Assigned | Number of Banks Currently Performing | Deferrals / Defaults as % of Current Balance | Conditional Default Rates for 2013 and beyond | Cumulative OTTI Life to Date | ||||||||||||||||
Value | |||||||||||||||||||||||||
Preferred Term Securities IV | Mezzanine Notes | $ | 49 | $ | 39 | $ | -10 | B | 6 | 18% | 0.34% | $ | - | ||||||||||||
Preferred Term Securities VII | Mezzanine Notes | 989 | 726 | -263 | C | 11 | 54 | 0.36 | 2,173 | ||||||||||||||||
TPREF Funding II | Class B Notes | 739 | 336 | -403 | C | 17 | 41 | 0.39 | 260 | ||||||||||||||||
TPREF Funding III | Class B2 Notes | 1,520 | 696 | -824 | C | 17 | 34 | 0.31 | 480 | ||||||||||||||||
Trapeza CDO I, LLC | Class C1 Notes | 556 | 284 | -272 | C | 9 | 49 | 0.38 | 470 | ||||||||||||||||
ALESCO Preferred Funding IV | Class B1 Notes | 604 | 358 | -246 | C | 41 | 6 | 0.36 | 396 | ||||||||||||||||
ALESCO Preferred Funding V | Class C1 Notes | 820 | 411 | -409 | C | 39 | 24 | 0.36 | 180 | ||||||||||||||||
Total | $ | 5,277 | $ | 2,850 | $ | -2,427 | 140 | 38% | $ | 3,959 |
Loans_Receivable_Tables
Loans Receivable (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Loans Receivable [Abstract] | ' | ||||||||||||||||||||||||
Gross loans by major categories | ' | ||||||||||||||||||||||||
The following table sets forth the Company’s gross loans by major categories as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Commercial real estate | $ | 342,794 | $ | 335,561 | |||||||||||||||||||||
Construction and land development | 23,977 | 26,659 | |||||||||||||||||||||||
Commercial and industrial | 118,209 | 103,768 | |||||||||||||||||||||||
Owner occupied real estate | 160,229 | 126,242 | |||||||||||||||||||||||
Consumer and other | 31,981 | 23,449 | |||||||||||||||||||||||
Residential mortgage | 2,359 | 2,442 | |||||||||||||||||||||||
Total loans receivable | 679,549 | 618,121 | |||||||||||||||||||||||
Deferred costs (fees) | (238 | ) | (220 | ) | |||||||||||||||||||||
Allowance for loan losses | (12,263 | ) | (9,542 | ) | |||||||||||||||||||||
Net loans receivable | $ | 667,048 | $ | 608,359 | |||||||||||||||||||||
Impaired loans by loan portfolio class | ' | ||||||||||||||||||||||||
The following table summarizes information with regard to impaired loans by loan portfolio class as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 6,850 | $ | 6,971 | $ | - | $ | 19,231 | $ | 20,000 | $ | - | |||||||||||||
Construction and land development | 902 | 4,076 | - | 3,153 | 6,312 | - | |||||||||||||||||||
Commercial and industrial | 2,043 | 2,882 | - | 3,793 | 7,106 | - | |||||||||||||||||||
Owner occupied real estate | 542 | 862 | - | 505 | 505 | - | |||||||||||||||||||
Consumer and other | 453 | 711 | - | 912 | 1,146 | - | |||||||||||||||||||
Total | $ | 10,790 | $ | 15,502 | $ | - | $ | 27,594 | $ | 35,069 | $ | - | |||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 13,044 | $ | 13,044 | $ | 3,679 | $ | 6,085 | $ | 6,085 | $ | 1,077 | |||||||||||||
Construction and land development | 716 | 3,867 | 237 | 593 | 3,700 | 70 | |||||||||||||||||||
Commercial and industrial | 4,889 | 7,634 | 1,254 | 3,147 | 3,255 | 861 | |||||||||||||||||||
Owner occupied real estate | 2,891 | 2,891 | 430 | 3,450 | 3,450 | 860 | |||||||||||||||||||
Consumer and other | 203 | 210 | 10 | 146 | 155 | 75 | |||||||||||||||||||
Total | $ | 21,743 | $ | 27,646 | $ | 5,610 | $ | 13,421 | $ | 16,645 | $ | 2,943 | |||||||||||||
Total: | |||||||||||||||||||||||||
Commercial real estate | $ | 19,894 | $ | 20,015 | $ | 3,679 | $ | 25,316 | $ | 26,085 | $ | 1,077 | |||||||||||||
Construction and land development | 1,618 | 7,943 | 237 | 3,746 | 10,012 | 70 | |||||||||||||||||||
Commercial and industrial | 6,932 | 10,516 | 1,254 | 6,940 | 10,361 | 861 | |||||||||||||||||||
Owner occupied real estate | 3,433 | 3,753 | 430 | 3,955 | 3,955 | 860 | |||||||||||||||||||
Consumer and other | 656 | 921 | 10 | 1,058 | 1,301 | 75 | |||||||||||||||||||
Total | $ | 32,533 | $ | 43,148 | $ | 5,610 | $ | 41,015 | $ | 51,714 | $ | 2,943 | |||||||||||||
Additional information regarding the Company's impaired loans | ' | ||||||||||||||||||||||||
The following table presents additional information regarding the Company’s impaired loans for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 14,062 | $ | 731 | $ | 15,675 | $ | 821 | |||||||||||||||||
Construction and land development | 1,954 | 35 | 4,587 | 112 | |||||||||||||||||||||
Commercial and industrial | 2,783 | 19 | 4,366 | 128 | |||||||||||||||||||||
Owner occupied real estate | 347 | 9 | 912 | 32 | |||||||||||||||||||||
Consumer and other | 651 | 6 | 875 | 9 | |||||||||||||||||||||
Total | $ | 19,797 | $ | 800 | $ | 26,415 | $ | 1,102 | |||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial real estate | $ | 6,261 | $ | 195 | $ | 7,207 | $ | 312 | |||||||||||||||||
Construction and land development | 499 | - | 1,163 | - | |||||||||||||||||||||
Commercial and industrial | 3,881 | 40 | 3,393 | 47 | |||||||||||||||||||||
Owner occupied real estate | 3,139 | 146 | 2,542 | 154 | |||||||||||||||||||||
Consumer and other | 110 | - | 87 | - | |||||||||||||||||||||
Total | $ | 13,890 | $ | 381 | $ | 14,392 | $ | 513 | |||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial real estate | $ | 20,323 | $ | 926 | $ | 22,882 | $ | 1,133 | |||||||||||||||||
Construction and land development | 2,453 | 35 | 5,750 | 112 | |||||||||||||||||||||
Commercial and industrial | 6,664 | 59 | 7,759 | 175 | |||||||||||||||||||||
Owner occupied real estate | 3,486 | 155 | 3,454 | 186 | |||||||||||||||||||||
Consumer and other | 761 | 6 | 962 | 9 | |||||||||||||||||||||
Total | $ | 33,687 | $ | 1,181 | $ | 40,807 | $ | 1,615 | |||||||||||||||||
Due from directors and other related parties | ' | ||||||||||||||||||||||||
The following presents the activity in amount due from directors and other related parties for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 9,128 | $ | 16,941 | $ | 16,376 | |||||||||||||||||||
Additions | 51 | 259 | 1,727 | ||||||||||||||||||||||
Repayments | (417 | ) | (8,072 | ) | (1,162 | ) | |||||||||||||||||||
Balance at end of year | $ | 8,762 | $ | 9,128 | $ | 16,941 | |||||||||||||||||||
Allowances_for_Loan_Losses_Tab
Allowances for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Allowances for Loan Losses [Abstract] | ' | ||||||||||||||||||||||||||||||||
Changes in the allowance for loan losses | ' | ||||||||||||||||||||||||||||||||
The following tables provide the activity in and ending balances of the allowance for loan losses by loan portfolio class at and for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | Unallocated | Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
Year ended December, 2013 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance: | $ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | |||||||||||||||||
Charge-offs | (1,291 | ) | (60 | ) | (611 | ) | (320 | ) | (75 | ) | - | - | (2,357 | ) | |||||||||||||||||||
Recoveries | 54 | - | 63 | - | 26 | - | - | 143 | |||||||||||||||||||||||||
Provisions (credits) | 3,712 | 735 | 977 | (662 | ) | 40 | (3 | ) | 136 | 4,935 | |||||||||||||||||||||||
Ending balance | $ | 6,454 | $ | 1,948 | $ | 2,309 | $ | 985 | $ | 225 | $ | 14 | $ | 328 | $ | 12,263 | |||||||||||||||||
Year ended December, 2012 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning Balance: | $ | 7,372 | $ | 558 | $ | 1,928 | $ | 1,963 | $ | 113 | $ | 23 | $ | 93 | $ | 12,050 | |||||||||||||||||
Charge-offs | (1,582 | ) | (1,004 | ) | (1,304 | ) | - | (102 | ) | - | - | (3,992 | ) | ||||||||||||||||||||
Recoveries | - | 105 | - | - | 29 | - | - | 134 | |||||||||||||||||||||||||
Provisions (credits) | (1,811 | ) | 1,614 | 1,256 | 4 | 194 | (6 | ) | 99 | 1,350 | |||||||||||||||||||||||
Ending balance | $ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | |||||||||||||||||
Year ended December, 2011 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning Balance: | $ | 7,243 | $ | 837 | $ | 1,443 | $ | 1,575 | $ | 130 | $ | 41 | $ | 175 | $ | 11,444 | |||||||||||||||||
Charge-offs | (8,783 | ) | (3,719 | ) | (1,088 | ) | (1,838 | ) | (41 | ) | - | - | (15,469 | ) | |||||||||||||||||||
Recoveries | 44 | 10 | - | 15 | 40 | - | - | 109 | |||||||||||||||||||||||||
Provisions (credits) | 8,868 | 3,430 | 1,573 | 2,211 | (16 | ) | (18 | ) | (82 | ) | 15,966 | ||||||||||||||||||||||
Ending balance | $ | 7,372 | $ | 558 | $ | 1,928 | $ | 1,963 | $ | 113 | $ | 23 | $ | 93 | $ | 12,050 | |||||||||||||||||
Activity in and ending balances of the allowance for loan losses by loan portfolio class | ' | ||||||||||||||||||||||||||||||||
The following tables provide a summary of the allowance for loan losses and balance of loans receivable by loan class and by impairment method as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | ||||||||||||||||||||||||||||
Unallocated | Total | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,679 | $ | 237 | $ | 1,254 | $ | 430 | $ | 10 | $ | - | $ | - | $ | 5,610 | |||||||||||||||||
Collectively evaluated for impairment | 2,775 | 1,711 | 1,055 | 555 | 215 | 14 | 328 | 6,653 | |||||||||||||||||||||||||
Total allowance for loan losses | $ | 6,454 | $ | 1,948 | $ | 2,309 | $ | 985 | $ | 225 | $ | 14 | $ | 328 | $ | 12,263 | |||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Loans evaluated individually | $ | 19,894 | $ | 1,618 | $ | 6,932 | $ | 3,433 | $ | 656 | $ | - | $ | - | $ | 32,533 | |||||||||||||||||
Loans evaluated collectively | 322,900 | 22,359 | 111,277 | 156,796 | 31,325 | 2,359 | - | 647,016 | |||||||||||||||||||||||||
Total loans receivable | $ | 342,794 | $ | 23,977 | $ | 118,209 | $ | 160,229 | $ | 31,981 | $ | 2,359 | $ | - | $ | 679,549 | |||||||||||||||||
Commercial Real Estate | Construction and Land Development | Commercial and Industrial | Owner Occupied Real Estate | Consumer and Other | Residential Mortgage | ||||||||||||||||||||||||||||
Unallocated | Total | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,077 | $ | 70 | $ | 861 | $ | 860 | $ | 75 | $ | - | $ | - | $ | 2,943 | |||||||||||||||||
Collectively evaluated for impairment | 2,902 | 1,203 | 1,019 | 1,107 | 159 | 17 | 192 | 6,599 | |||||||||||||||||||||||||
Total allowance for loan losses | $ | 3,979 | $ | 1,273 | $ | 1,880 | $ | 1,967 | $ | 234 | $ | 17 | $ | 192 | $ | 9,542 | |||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Loans evaluated individually | $ | 25,316 | $ | 3,746 | $ | 6,940 | $ | 3,955 | $ | 1,058 | $ | - | $ | - | $ | 41,015 | |||||||||||||||||
Loans evaluated collectively | 310,245 | 22,913 | 96,828 | 122,287 | 22,391 | 2,442 | - | 577,106 | |||||||||||||||||||||||||
Total loans receivable | $ | 335,561 | $ | 26,659 | $ | 103,768 | $ | 126,242 | $ | 23,449 | $ | 2,442 | $ | - | $ | 618,121 | |||||||||||||||||
Classes of the loan portfolio summarized by the past due status | ' | ||||||||||||||||||||||||||||||||
The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater than 90 Days | Total | Loans Receivable > 90 Days and Accruing | |||||||||||||||||||||||||||||
Days Past Due | Days Past Due | Total | Loans Receivable | ||||||||||||||||||||||||||||||
(dollars in thousands) | Past Due | Current | |||||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 19,707 | $ | 5,635 | $ | 1,104 | $ | 26,446 | $ | 316,348 | $ | 342,794 | $ | - | |||||||||||||||||||
Construction and land development | - | - | 1,618 | 1,618 | 22,359 | 23,977 | - | ||||||||||||||||||||||||||
Commercial and industrial | 951 | 71 | 6,837 | 7,859 | 110,350 | 118,209 | - | ||||||||||||||||||||||||||
Owner occupied real estate | 808 | 1,281 | 205 | 2,294 | 157,935 | 160,229 | - | ||||||||||||||||||||||||||
Consumer and other | 38 | - | 656 | 694 | 31,287 | 31,981 | - | ||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | 2,359 | 2,359 | - | ||||||||||||||||||||||||||
Total | $ | 21,504 | $ | 6,987 | $ | 10,420 | $ | 38,911 | $ | 640,638 | $ | 679,549 | $ | - | |||||||||||||||||||
30-59 | 60-89 | Greater than 90 Days | Total | Loans Receivable > 90 Days and Accruing | |||||||||||||||||||||||||||||
Days Past Due | Days Past Due | Total | Loans Receivable | ||||||||||||||||||||||||||||||
(dollars in thousands) | Past Due | Current | |||||||||||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 772 | $ | 26,000 | $ | 7,987 | $ | 34,759 | $ | 300,802 | $ | 335,561 | $ | - | |||||||||||||||||||
Construction and land development | - | 261 | 1,342 | 1,603 | 25,056 | 26,659 | - | ||||||||||||||||||||||||||
Commercial and industrial | 86 | - | 4,693 | 4,779 | 98,989 | 103,768 | - | ||||||||||||||||||||||||||
Owner occupied real estate | 285 | 1,562 | 968 | 2,815 | 123,427 | 126,242 | - | ||||||||||||||||||||||||||
Consumer and other | - | - | 1,058 | 1,058 | 22,391 | 23,449 | 202 | ||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | 2,442 | 2,442 | - | ||||||||||||||||||||||||||
Total | $ | 1,143 | $ | 27,823 | $ | 16,048 | $ | 45,014 | $ | 573,107 | $ | 618,121 | $ | 202 | |||||||||||||||||||
Classes of the loan portfolio summarized by the aggregate risk rating | ' | ||||||||||||||||||||||||||||||||
The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within our internal risk rating system as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 305,974 | $ | 16,372 | $ | 20,448 | $ | - | $ | 342,794 | |||||||||||||||||||||||
Construction and land development | 22,359 | - | 1,618 | - | 23,977 | ||||||||||||||||||||||||||||
Commercial and industrial | 110,629 | 611 | 6,969 | - | 118,209 | ||||||||||||||||||||||||||||
Owner occupied real estate | 155,648 | 1,485 | 3,096 | - | 160,229 | ||||||||||||||||||||||||||||
Consumer and other | 30,993 | 75 | 913 | - | 31,981 | ||||||||||||||||||||||||||||
Residential mortgage | 2,359 | - | - | - | 2,359 | ||||||||||||||||||||||||||||
Total | $ | 627,962 | $ | 18,543 | $ | 33,044 | $ | - | $ | 679,549 | |||||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 300,174 | $ | 9,174 | $ | 26,213 | $ | - | $ | 335,561 | |||||||||||||||||||||||
Construction and land development | 22,652 | 261 | 3,746 | - | 26,659 | ||||||||||||||||||||||||||||
Commercial and industrial | 96,051 | 642 | 7,075 | - | 103,768 | ||||||||||||||||||||||||||||
Owner occupied real estate | 121,381 | 906 | 3,955 | - | 126,242 | ||||||||||||||||||||||||||||
Consumer and other | 22,033 | 100 | 1,316 | - | 23,449 | ||||||||||||||||||||||||||||
Residential mortgage | 2,442 | - | - | - | 2,442 | ||||||||||||||||||||||||||||
Total | $ | 564,733 | $ | 11,083 | $ | 42,305 | $ | - | $ | 618,121 | |||||||||||||||||||||||
Non-accrual loans by class | ' | ||||||||||||||||||||||||||||||||
The following table shows non-accrual loans by class as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
(dollars in thousands) | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,104 | $ | 7,987 | |||||||||||||||||||||||||||||
Construction and land development | 1,618 | 1,342 | |||||||||||||||||||||||||||||||
Commercial and industrial | 6,837 | 4,693 | |||||||||||||||||||||||||||||||
Owner occupied real estate | 205 | 968 | |||||||||||||||||||||||||||||||
Consumer and other | 656 | 856 | |||||||||||||||||||||||||||||||
Residential mortgage | - | - | |||||||||||||||||||||||||||||||
Total | $ | 10,420 | $ | 15,846 | |||||||||||||||||||||||||||||
Summary of troubled debt restructurings | ' | ||||||||||||||||||||||||||||||||
The following table summarizes information with regard to troubled debt restructurings for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Number of Loans | Accrual Status | Non-Accrual Status | Total TDRs | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 103 | $ | - | $ | 103 | ||||||||||||||||||||||||||
Construction and land development | - | - | - | - | |||||||||||||||||||||||||||||
Commercial and industrial | 1 | - | 2,188 | 2,188 | |||||||||||||||||||||||||||||
Owner occupied real estate | 1 | 1,894 | - | 1,894 | |||||||||||||||||||||||||||||
Consumer and other | - | - | - | - | |||||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | |||||||||||||||||||||||||||||
Total | 3 | $ | 1,997 | $ | 2,188 | $ | 4,185 | ||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 1,261 | $ | - | $ | 1,261 | ||||||||||||||||||||||||||
Construction and land development | 1 | 2,069 | - | 2,069 | |||||||||||||||||||||||||||||
Commercial and industrial | 1 | 2,248 | - | 2,248 | |||||||||||||||||||||||||||||
Owner occupied real estate | 1 | 1,933 | - | 1,933 | |||||||||||||||||||||||||||||
Consumer and other | - | - | - | - | |||||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | |||||||||||||||||||||||||||||
Total | 4 | $ | 7,511 | $ | - | $ | 7,511 | ||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Premises and Equipment [Abstract] | ' | ||||||||
Summary of premises and equipment | ' | ||||||||
A summary of premises and equipment is as follows: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(dollars in thousands) | |||||||||
Land | $ | 200 | $ | 200 | |||||
Bank building | 1,057 | 1,051 | |||||||
Leasehold improvements | 19,017 | 18,714 | |||||||
Furniture, fixtures and equipment | 7,670 | 6,894 | |||||||
Construction in progress | 6,402 | 5,143 | |||||||
34,346 | 32,002 | ||||||||
Less accumulated depreciation | (11,598 | ) | (10,026 | ) | |||||
Net premises and equipment | $ | 22,748 | $ | 21,976 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Deposits [Abstract] | ' | ||||||||||||||||||||||||||||
Contractual maturities of certificates of deposit | ' | ||||||||||||||||||||||||||||
The following is a breakdown, by contractual maturities of the Company’s certificates of deposit for the years 2014 through 2018. | |||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Certificates of Deposit | $ | 53,294 | $ | 12,980 | $ | 11,253 | $ | 462 | $ | 847 | $ | - | $ | 78,836 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Schedule of (benefit) provision for income taxes | ' | ||||||||||||
The (benefit) provision for income taxes for the years ended December 31, 2013, 2012 and 2011 consists of the following: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Current | |||||||||||||
Federal | $ | 269 | $ | 81 | $ | (71 | ) | ||||||
State | - | - | - | ||||||||||
Deferred | (304 | ) | (225 | ) | 8,262 | ||||||||
Total provision (benefit) for income taxes | $ | (35 | ) | $ | (144 | ) | $ | 8,191 | |||||
Schedule of reconciles the difference between the actual tax provision and the amount per the statutory federal income tax rate | ' | ||||||||||||
The following table reconciles the difference between the actual tax provision and the amount per the statutory federal income tax rate of 35.0% for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Tax (benefit) provision computed at statutory rate | $ | (1,230 | ) | $ | 1,214 | $ | (5,779 | ) | |||||
Tax exempt interest | (210 | ) | (257 | ) | (265 | ) | |||||||
Bank owned life insurance | (4 | ) | (26 | ) | (48 | ) | |||||||
Deferred tax asset valuation allowance | 1,428 | (1,002 | ) | 14,912 | |||||||||
Other | (19 | ) | (73 | ) | (629 | ) | |||||||
Total provision (benefit) for income taxes | $ | (35 | ) | $ | (144 | ) | $ | 8,191 | |||||
Significant components of net deferred tax asset | ' | ||||||||||||
The significant components of the Company’s net deferred tax asset as of December 31, 2013 and 2012 are as follows: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||
Deferred tax assets | |||||||||||||
Allowance for loan losses | $ | 4,403 | $ | 3,427 | |||||||||
Deferred compensation | 721 | 733 | |||||||||||
Unrealized loss on securities available for sale | 1,584 | - | |||||||||||
Realized loss in other than temporary impairment charge | 1,121 | 1,121 | |||||||||||
Foreclosed real estate write-downs | 1,131 | 232 | |||||||||||
Interest income on non-accrual loans | 955 | 1,000 | |||||||||||
Net operating loss carryforward | 11,826 | 11,689 | |||||||||||
Other | 986 | 1,052 | |||||||||||
Total deferred tax assets | 22,727 | 19,254 | |||||||||||
Deferred tax liabilities | |||||||||||||
Deferred loan costs | 859 | 712 | |||||||||||
Unrealized gain on securities available for sale | - | 572 | |||||||||||
Other | 460 | 450 | |||||||||||
Total deferred tax liabilities | 1,319 | 1,734 | |||||||||||
Net deferred tax asset before valuation allowance | 21,408 | 17,520 | |||||||||||
Less: valuation allowance | (15,338 | ) | (13,910 | ) | |||||||||
Net deferred tax asset | $ | 6,070 | $ | 3,610 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Schedule of minimum annual rental payments under operating leases | ' | ||||
The minimum annual rental payments required under these leases are as follows (dollars in thousands): | |||||
Year Ended | Amount | ||||
2014 | $ | 2,547 | |||
2015 | 2,521 | ||||
2016 | 2,402 | ||||
2017 | 2,416 | ||||
2018 | 2,475 | ||||
Thereafter | 30,694 | ||||
Total | $ | 43,055 |
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Capital [Abstract] | ' | ||||||||||||||||||||||||
Company's and Republic's capital regulatory ratios | ' | ||||||||||||||||||||||||
The following table presents the Company’s and Republic’s capital regulatory ratios at December 31, 2013 and 2012: | |||||||||||||||||||||||||
(dollars in thousands) | For Capital Adequacy Purposes | To be well capitalized under regulatory capital guidelines | |||||||||||||||||||||||
Actual | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||
Total risk based capital | |||||||||||||||||||||||||
Republic | $ | 92,493 | 11.38 | % | $ | 65,038 | 8 | % | $ | 81,297 | 10 | % | |||||||||||||
Company | 93,848 | 11.53 | % | 65,092 | 8 | % | - | - | % | ||||||||||||||||
Tier one risk based capital | |||||||||||||||||||||||||
Republic | 82,305 | 10.12 | % | 32,519 | 4 | % | 48,778 | 6 | % | ||||||||||||||||
Company | 83,652 | 10.28 | % | 32,546 | 4 | % | - | - | % | ||||||||||||||||
Tier one leveraged capital | |||||||||||||||||||||||||
Republic | 82,305 | 8.46 | % | 38,921 | 4 | % | 48,651 | 5 | % | ||||||||||||||||
Company | 83,652 | 8.59 | % | 38,971 | 4 | % | - | - | % | ||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||
Total risk based capital | |||||||||||||||||||||||||
Republic | $ | 96,366 | 12.7 | % | $ | 60,685 | 8 | % | $ | 75,857 | 10 | % | |||||||||||||
Company | 97,006 | 12.73 | % | 60,971 | 8 | % | - | - | % | ||||||||||||||||
Tier one risk based capital | |||||||||||||||||||||||||
Republic | 86,883 | 11.45 | % | 30,343 | 4 | % | 45,514 | 6 | % | ||||||||||||||||
Company | 87,479 | 11.48 | % | 30,485 | 4 | % | - | - | % | ||||||||||||||||
Tier one leveraged capital | |||||||||||||||||||||||||
Republic | 86,883 | 8.96 | % | 38,786 | 4 | % | 48,483 | 5 | % | ||||||||||||||||
Company | 87,479 | 9.01 | % | 38,838 | 4 | % | - | - | % |
Fair_Value_Measurements_and_Fa1
Fair Value Measurements and Fair Values of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | ' | ||||||||||||||||||||||||
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||
Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 123,440 | $ | - | $ | 123,440 | $ | - | |||||||||||||||||
Mortgage-backed securities | 16,181 | - | 16,181 | - | |||||||||||||||||||||
Municipal securities | 9,643 | - | 9,643 | - | |||||||||||||||||||||
Corporate bonds | 33,253 | - | 30,247 | 3,006 | |||||||||||||||||||||
Asset-backed securities | 19,407 | - | 19,407 | - | |||||||||||||||||||||
Trust Preferred Securities | 2,850 | - | - | 2,850 | |||||||||||||||||||||
Other securities | 117 | - | 117 | - | |||||||||||||||||||||
Securities Available for Sale | $ | 204,891 | $ | - | $ | 199,035 | $ | 5,856 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Collateralized mortgage obligations | $ | 99,783 | $ | - | $ | 99,783 | $ | - | |||||||||||||||||
Mortgage-backed securities | 21,640 | - | 21,640 | - | |||||||||||||||||||||
Municipal securities | 12,101 | - | 12,101 | - | |||||||||||||||||||||
Corporate bonds | 32,685 | - | 29,678 | 3,007 | |||||||||||||||||||||
Asset-backed securities | 19,729 | - | 19,729 | - | |||||||||||||||||||||
Trust Preferred Securities | 3,187 | - | - | 3,187 | |||||||||||||||||||||
Other securities | 134 | - | 134 | - | |||||||||||||||||||||
Securities Available for Sale | $ | 189,259 | $ | - | $ | 183,065 | $ | 6,194 | |||||||||||||||||
Schedule of reconciliation of the securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | ||||||||||||||||||||||||
The following table presents a reconciliation of the securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||
Level 3 Investments Only | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | Trust Preferred Securities | Corporate Bonds | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance, January 1, | $ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | $ | 3,450 | $ | 3,000 | |||||||||||||
Security transferred to Level 3 measurement | - | - | - | - | - | - | |||||||||||||||||||
Unrealized gains (losses) | 171 | (1 | ) | 401 | 3 | 2 | 4 | ||||||||||||||||||
Paydowns | (508 | ) | - | (590 | ) | - | - | - | |||||||||||||||||
Impairment charges on Level 3 | - | - | (34 | ) | - | (42 | ) | - | |||||||||||||||||
Balance, December 31, | $ | 2,850 | $ | 3,006 | $ | 3,187 | $ | 3,007 | $ | 3,410 | $ | 3,004 | |||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis | ' | ||||||||||||||||||||||||
For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2013 and 2012, respectively, were as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Impaired loans | $ | 17,474 | $ | - | $ | - | $ | 17,474 | |||||||||||||||||
Other real estate owned | 3,921 | - | - | 3,921 | |||||||||||||||||||||
SBA servicing assets | 3,477 | - | - | 3,477 | |||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Impaired loans | $ | 19,876 | $ | - | $ | - | $ | 19,876 | |||||||||||||||||
Other real estate owned | 3,642 | - | - | 3,642 | |||||||||||||||||||||
SBA servicing assets | 2,340 | - | - | 2,340 | |||||||||||||||||||||
Additional quantitative information about Level 3 assets measured at fair value on a nonrecurring basis | ' | ||||||||||||||||||||||||
The table below presents additional quantitative information about Level 3 assets measured at fair value on a nonrecurring basis (dollars in thousands): | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||
Asset Description | Fair Value | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Impaired loans | $ | 17,474 | Fair Value of Collateral (1) | Appraised Value (2) | 0% - 40% (23%) (4) | ||||||||||||||||||||
Other real estate owned | $ | 3,921 | Fair Value of Collateral (1) | Appraised Value (2) | 4% - 77% (17%) (4) | ||||||||||||||||||||
Sales Price | |||||||||||||||||||||||||
SBA Servicing Assets | $ | 3,477 | Individual Loan | -3 | |||||||||||||||||||||
Fair Value | Valuation (3) | ||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Impaired loans | $ | 19,876 | Fair Value of Collateral (1) | Appraised Value (2) | 0% - 48% (15%) (4) | ||||||||||||||||||||
Other real estate owned | $ | 3,642 | Fair Value of Collateral (1) | Appraised Value (2) | 2% - 8% (5%) (4) | ||||||||||||||||||||
Sales Price | |||||||||||||||||||||||||
SBA Servicing Assets | $ | 2,340 | Individual Loan | -3 | |||||||||||||||||||||
Fair Value | Valuation (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 | There is a lack of transactional data in this market place for the non-guaranteed portion of SBA loans. | ||||||||||||||||||||||||
-4 | The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value. | ||||||||||||||||||||||||
Analysis of the activity in the SBA servicing assets | ' | ||||||||||||||||||||||||
The following table presents an analysis of the activity in the SBA servicing assets for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Beginning balance, January 1st | $ | 2,340 | $ | 1,102 | |||||||||||||||||||||
Additions | 1,349 | 1,175 | |||||||||||||||||||||||
Fair value adjustments | (212 | ) | 63 | ||||||||||||||||||||||
Ending balance, December 31st | $ | 3,477 | $ | 2,340 | |||||||||||||||||||||
Schedule of sensitivity of the current fair value of loan servicing rights to immediate 10% and 20% adverse changes in key assumptions | ' | ||||||||||||||||||||||||
The Company uses assumptions and estimates in determining the impairment of the SBA servicing asset. These assumptions include prepayment speeds and discount rates commensurate with the risks involved and comparable to assumptions used by participants to value and bid serving rights available for sale in the market. At December 31, 2013, the sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% adverse changes in key assumptions are included in the accompanying table. | |||||||||||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
SBA Servicing Asset | |||||||||||||||||||||||||
Fair Value of SBA Servicing Asset | $ | 3,477 | $ | 2,340 | |||||||||||||||||||||
Composition of SBA Loans Serviced for Others | |||||||||||||||||||||||||
Fixed-rate SBA loans | 0 | % | 0 | % | |||||||||||||||||||||
Adjustable-rate SBA loans | 100 | % | 100 | % | |||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Weighted Average Remaining Term | 21.4 years | 21.4 years | |||||||||||||||||||||||
Prepayment Speed | 6.72 | % | 6.59 | % | |||||||||||||||||||||
Effect on fair value of a 10% increase | $ | (83 | ) | $ | (55 | ) | |||||||||||||||||||
Effect on fair value of a 20% increase | (163 | ) | (107 | ) | |||||||||||||||||||||
Weighted Average Discount Rate | 13.59 | % | 14.23 | % | |||||||||||||||||||||
Effect on fair value of a 10% increase | $ | (162 | ) | $ | (115 | ) | |||||||||||||||||||
Effect on fair value of a 20% increase | (316 | ) | (222 | ) | |||||||||||||||||||||
Schedule of estimated fair values of the Company's financial instruments | ' | ||||||||||||||||||||||||
The estimated fair values of the Company’s financial instruments were as follows at December 31, 2013 and 2012: | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Carrying Amount | Fair | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(dollars in thousands) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 35,880 | $ | 35,880 | $ | 35,880 | $ | - | $ | - | |||||||||||||||
Investment securities available for sale | 204,891 | 204,891 | - | 199,035 | 5,856 | ||||||||||||||||||||
Investment securities held to maturity | 21 | 21 | - | 21 | - | ||||||||||||||||||||
Restricted stock | 1,570 | 1,570 | - | 1,570 | - | ||||||||||||||||||||
Loans held for sale | 4,931 | 5,225 | - | - | 5,225 | ||||||||||||||||||||
Loans receivable, net | 667,048 | 660,237 | - | - | 660,237 | ||||||||||||||||||||
SBA servicing assets | 3,477 | 3,477 | - | - | 3,477 | ||||||||||||||||||||
Accrued interest receivable | 3,049 | 3,049 | - | 3,049 | - | ||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Demand, savings and money market | $ | 790,698 | $ | 790,698 | $ | - | $ | 790,698 | $ | - | |||||||||||||||
Time | 78,836 | 79,323 | - | 79,323 | - | ||||||||||||||||||||
Subordinated debt | 22,476 | 17,835 | - | - | 17,835 | ||||||||||||||||||||
Accrued interest payable | 237 | 237 | - | 237 | - | ||||||||||||||||||||
Off-Balance Sheet Data | |||||||||||||||||||||||||
Commitments to extend credit | - | - | |||||||||||||||||||||||
Standby letters-of-credit | - | - | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Carrying Amount | Fair | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||
(dollars in thousands) | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 128,004 | $ | 128,004 | $ | 128,004 | $ | - | $ | - | |||||||||||||||
Investment securities available for sale | 189,259 | 189,259 | - | 183,065 | 6,194 | ||||||||||||||||||||
Investment securities held to maturity | 67 | 69 | - | 69 | - | ||||||||||||||||||||
Restricted stock | 3,816 | 3,816 | - | 3,816 | - | ||||||||||||||||||||
Loans held for sale | 82 | 82 | - | - | 82 | ||||||||||||||||||||
Loans receivable, net | 608,359 | 603,237 | - | - | 603,237 | ||||||||||||||||||||
SBA servicing assets | 2,340 | 2,340 | - | - | 2,340 | ||||||||||||||||||||
Accrued interest receivable | 3,128 | 3,128 | - | 3,128 | - | ||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Demand, savings and money market | $ | 765,967 | $ | 765,967 | $ | - | $ | 765,967 | $ | - | |||||||||||||||
Time | 123,234 | 124,044 | - | 124,044 | - | ||||||||||||||||||||
Subordinated debt | 22,476 | 20,187 | - | - | 20,187 | ||||||||||||||||||||
Accrued interest payable | 301 | 301 | - | 301 | - | ||||||||||||||||||||
Off-Balance Sheet Data | |||||||||||||||||||||||||
Commitments to extend credit | - | - | |||||||||||||||||||||||
Standby letters-of-credit | - | - | |||||||||||||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Stock Based Compensation [Abstract] | ' | ||||||||||||||||||||||||
Summary of the assumptions used in the Black-Scholes option pricing model | ' | ||||||||||||||||||||||||
The Company utilized the Black-Scholes option pricing model to calculate the estimated fair value of each stock option granted on the date of the grant. A summary of the assumptions used in the Black-Scholes option pricing model for 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Dividend yield(1) | 0.00% | 0.00% | 0.00% | ||||||||||||||||||||||
Expected volatility(2) | 54.88% to 55.61% | 53.12% to 54.49% | 43.33% to 49.11% | ||||||||||||||||||||||
Risk-free interest rate(3) | 1.28% to 2.03% | 1.01% to 1.61% | 1.38% to 2.84% | ||||||||||||||||||||||
Expected life(4) | 7.0 years | 7.0 years | 7.0 years | ||||||||||||||||||||||
-1 | A dividend yield of 0.0% is utilized because cash dividends have never been paid. | ||||||||||||||||||||||||
-2 | Expected volatility is based on Bloomberg’s seven year volatility calculation for “FRBK” stock. | ||||||||||||||||||||||||
-3 | The risk-free interest rate is based on the seven year Treasury bond. | ||||||||||||||||||||||||
-4 | The expected life reflects a 3 to 4 year “all or nothing” vesting period, the maximum ten year term and review of historical behavior. | ||||||||||||||||||||||||
Information regarding stock based compensation | ' | ||||||||||||||||||||||||
Information regarding stock based compensation for the years ended December 31, 2013, 2012 and 2011 is set forth below: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Stock based compensation expense recognized | $ | 325,000 | $ | 370,000 | $ | 359,000 | |||||||||||||||||||
Number of unvested stock options | 909,313 | 710,600 | 612,350 | ||||||||||||||||||||||
Fair value of unvested stock options | $ | 1,245,679 | $ | 1,091,948 | $ | 1,337,780 | |||||||||||||||||||
Amount remaining to be recognized as expense | $ | 545,862 | $ | 467,314 | $ | 554,763 | |||||||||||||||||||
Summary of stock option activity under the Plan | ' | ||||||||||||||||||||||||
A summary of stock option activity under the Plan as of December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted Average Exercise Price | Weighted Average Exercise Price | Weighted Average Exercise Price | |||||||||||||||||||||||
Shares | Shares | Shares | |||||||||||||||||||||||
Outstanding, beginning of year | 964,530 | $ | 4.38 | 839,417 | $ | 6.04 | 663,500 | $ | 7.32 | ||||||||||||||||
Granted | 347,250 | 2.72 | 296,750 | 1.95 | 263,850 | 3.12 | |||||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||
Forfeited | (96,250 | ) | 7.39 | (171,637 | ) | 8.32 | (87,933 | ) | 5.73 | ||||||||||||||||
Outstanding, end of year | 1,215,530 | $ | 3.66 | 964,530 | $ | 4.38 | 839,417 | $ | 6.04 | ||||||||||||||||
Options exercisable at year-end | 306,217 | $ | 6.24 | 253,930 | $ | 7.92 | 227,067 | $ | 9 | ||||||||||||||||
Weighted average fair value of options granted during the year | $ | 1.51 | $ | 1.05 | $ | 1.61 | |||||||||||||||||||
Summary of options outstanding | ' | ||||||||||||||||||||||||
The following table summarizes information about options outstanding at December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Weighted-Average Remaining Contractual Life | Weighted-Average Exercise Price | Weighted-Average Exercise Price | |||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | ||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||
$1.39 to $2.95 | 651,500 | 8.7 | $ | 2.33 | 41,937 | $ | 1.95 | ||||||||||||||||||
$3.14 to $5.12 | 311,750 | 6.8 | 3.72 | 12,000 | 4.5 | ||||||||||||||||||||
$5.70 to $8.00 | 228,507 | 3.7 | 6.58 | 228,507 | 6.58 | ||||||||||||||||||||
$9.93 to $12.13 | 23,773 | 2.3 | 11.36 | 23,773 | 11.36 | ||||||||||||||||||||
1,215,530 | $ | 3.66 | 306,217 | $ | 6.24 | ||||||||||||||||||||
Roll-forward of non-vested options | ' | ||||||||||||||||||||||||
A roll-forward of non-vested options during the year ended December 31, 2013 is as follows: | |||||||||||||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||||||
Nonvested, beginning of year | 710,600 | $ | 1.54 | ||||||||||||||||||||||
Granted | 347,250 | 1.51 | |||||||||||||||||||||||
Vested | (127,287 | ) | 1.63 | ||||||||||||||||||||||
Forfeited | (21,250 | ) | 1.4 | ||||||||||||||||||||||
Nonvested, end of year | 909,313 | $ | 1.37 |
Parent_Company_Financial_Infor1
Parent Company Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company Financial Information [Abstract] | ' | ||||||||||||
Balance sheet | ' | ||||||||||||
The following financial statements for Republic First Bancorp, Inc. (Parent Company) should be read in conjunction with the consolidated financial statements and the other notes related to the consolidated financial statements. | |||||||||||||
Balance Sheet | |||||||||||||
December 31, 2013 and 2012 | |||||||||||||
(Dollars in thousands) | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
ASSETS | |||||||||||||
Cash | $ | 697 | $ | 736 | |||||||||
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding junior obligations of the corporation | 676 | 676 | |||||||||||
Investment in subsidiaries | 80,666 | 88,945 | |||||||||||
Other assets | 3,354 | 2,848 | |||||||||||
Total Assets | $ | 85,393 | $ | 93,205 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Liabilities | |||||||||||||
Accrued expenses | $ | 18 | $ | 827 | |||||||||
Corporation-obligated mandatorily redeemable securities of subsidiary trust holding solely junior subordinated debentures of the corporation | 22,476 | 22,476 | |||||||||||
Total Liabilities | 22,494 | 23,303 | |||||||||||
Shareholders’ Equity | |||||||||||||
Total Shareholders’ Equity | 62,899 | 69,902 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 85,393 | $ | 93,205 | |||||||||
Statements of operations, comprehensive income (loss), and changes in shareholders' equity | ' | ||||||||||||
Statements of Operations, Comprehensive Income (Loss), and Changes in Shareholders’ Equity | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011 | |||||||||||||
(Dollars in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest income | $ | 33 | $ | 34 | $ | 33 | |||||||
Dividend income from subsidiaries | 1,859 | - | 212 | ||||||||||
Total income | 1,892 | 34 | 245 | ||||||||||
Trust preferred interest expense | 1,112 | 1,134 | 1,117 | ||||||||||
Expenses | 318 | 317 | 288 | ||||||||||
Total expenses | 1,430 | 1,451 | 1,405 | ||||||||||
Net income (loss) before taxes | 462 | (1,417 | ) | (1,160 | ) | ||||||||
Benefit for income taxes | (489 | ) | (496 | ) | (406 | ) | |||||||
Income (loss) before undistributed income of subsidiaries | 951 | (921 | ) | (754 | ) | ||||||||
Equity in undistributed income (loss) of subsidiaries | (4,431 | ) | 4,535 | (23,948 | ) | ||||||||
Net income (loss) | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Net income (loss) | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Total other comprehensive income (loss) | (3,848 | ) | 1,067 | 1,048 | |||||||||
Total comprehensive income (loss) | $ | (7,328 | ) | $ | 4,681 | $ | (23,654 | ) | |||||
Shareholders’ equity, beginning of year | $ | 69,902 | $ | 64,851 | $ | 88,146 | |||||||
Stock based compensation | 325 | 370 | 359 | ||||||||||
Net income (loss) | (3,480 | ) | 3,614 | (24,702 | ) | ||||||||
Total other comprehensive income (loss) | (3,848 | ) | 1,067 | 1,048 | |||||||||
Shareholders’ equity, end of year | $ | 62,899 | $ | 69,902 | $ | 64,851 | |||||||
Statements of cash flows | ' | ||||||||||||
Statements of Cash Flows | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011 | |||||||||||||
(Dollars in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income (loss) | $ | (3,480 | ) | $ | 3,614 | $ | (24,702 | ) | |||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||
Share based compensation | 325 | 370 | 359 | ||||||||||
Increase in other assets | (506 | ) | (542 | ) | (486 | ) | |||||||
(Decrease) increase in other liabilities | (809 | ) | (226 | ) | 223 | ||||||||
Equity in undistributed (income) losses of subsidiaries | 4,431 | (4,535 | ) | 23,948 | |||||||||
Net cash used in operating activities | (39 | ) | (1,319 | ) | (658 | ) | |||||||
Cash flows from investing activities: | |||||||||||||
Investment in subsidiary | - | - | (8,000 | ) | |||||||||
Net cash used in investing activities | - | - | (8,000 | ) | |||||||||
Decrease in cash | (39 | ) | (1,319 | ) | (8,658 | ) | |||||||
Cash, beginning of period | 736 | 2,055 | 10,713 | ||||||||||
Cash, end of period | $ | 697 | $ | 736 | $ | 2,055 | |||||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (unaudited) [Abstract] | ' | ||||||||||||||||
Summary of unaudited quarterly financial data | ' | ||||||||||||||||
The following represents summarized unaudited quarterly financial data of the Company for each of the quarters ended during 2013 and 2012. | |||||||||||||||||
Summary of Selected Quarterly Consolidated Financial Data | |||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
December 31st | September 30th | June 30th | March 31st | ||||||||||||||
2013 | |||||||||||||||||
Interest income | $ | 9,544 | $ | 9,339 | $ | 9,215 | $ | 9,107 | |||||||||
Interest expense | 1,106 | 1,113 | 1,117 | 1,254 | |||||||||||||
Net interest income | 8,438 | 8,226 | 8,098 | 7,853 | |||||||||||||
Provision for loan losses | 3,760 | 250 | 925 | - | |||||||||||||
Non-interest income | 2,211 | 1,892 | 2,870 | 2,243 | |||||||||||||
Non-interest expense | 10,117 | 12,108 | 9,056 | 9,130 | |||||||||||||
Provision (benefit) for income taxes | 33 | (18 | ) | (24 | ) | (26 | ) | ||||||||||
Net income (loss) | $ | (3,261 | ) | $ | (2,222 | ) | $ | 1,011 | $ | 992 | |||||||
Net income (loss) per share (1): | |||||||||||||||||
Basic | $ | (0.13 | ) | $ | (0.09 | ) | $ | 0.04 | $ | 0.04 | |||||||
Diluted | $ | (0.13 | ) | $ | (0.09 | ) | $ | 0.04 | $ | 0.04 | |||||||
2012 | |||||||||||||||||
Interest income | $ | 9,423 | $ | 9,612 | $ | 9,649 | $ | 9,576 | |||||||||
Interest expense | 1,406 | 1,436 | 1,624 | 1,900 | |||||||||||||
Net interest income | 8,017 | 8,176 | 8,025 | 7,676 | |||||||||||||
Provision (credit) for loan losses | 750 | 850 | 500 | (750 | ) | ||||||||||||
Non-interest income | 2,852 | 1,831 | 2,499 | 1,646 | |||||||||||||
Non-interest expense | 9,269 | 8,787 | 9,010 | 8,836 | |||||||||||||
Provision (benefit) for income taxes | (54 | ) | (28 | ) | 7 | (69 | ) | ||||||||||
Net income | $ | 904 | $ | 398 | $ | 1,007 | $ | 1,305 | |||||||||
Net income per share (1): | |||||||||||||||||
Basic | $ | 0.03 | $ | 0.02 | $ | 0.04 | $ | 0.05 | |||||||||
Diluted | $ | 0.03 | $ | 0.02 | $ | 0.04 | $ | 0.05 | |||||||||
-1 | Quarterly net income (loss) per share does not add to full year net income (loss) per share due to rounding. |
Nature_of_Operations_Details
Nature of Operations (Details) | Dec. 31, 2013 |
Security | |
Subsidiary | |
Nature of Operations [Abstract] | ' |
Number of wholly owned subsidiary | 1 |
Number of unconsolidated subsidiaries | 3 |
Number of trust preferred securities issued | 3 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' |
Restricted cash and cash equivalents | $3,100,000 | $1,600,000 | ' |
Asset impairment charges on bank pooled trust preferred securities | $0 | $34,000 | $42,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies, Guarantees (Details) (USD $) | Dec. 31, 2013 |
Guarantor Obligations [Line Items] | ' |
Maximum potential undiscounted amount of future payments | $2,700,000 |
Performance Guarantee Expiring In 2014 [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Guarantor obligations, current carrying value | 2,300,000 |
Performance Guarantee Expiring In 2019 [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Guarantor obligations, current carrying value | $385,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies, Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Building [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life | '40 years |
Leasehold Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life | '1 year |
Leasehold Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life | '30 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life | '3 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life | '13 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies, Stock Based Compensation (Details) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of common stock available for grant | 1.5 |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Award vesting period | '3 years |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Award vesting period | '4 years |
Stock Option and Restricted Stock Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of common stock available for grant | 1.5 |
Stock Option and Restricted Stock Plan [Member] | Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Award vesting period | '1 year |
Stock Option and Restricted Stock Plan [Member] | Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Award vesting period | '4 years |
Award expiration period | '10 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies, Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income (loss) - basic and diluted | ($3,261) | ($2,222) | $1,011 | $992 | $904 | $398 | $1,007 | $1,305 | ($3,480) | $3,614 | ($24,702) | ||||||||
Weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 25,973 | 25,973 | 25,973 | ||||||||
Net income (loss) per share - basic (in dollars per share) | ($0.13) | [1] | ($0.09) | [1] | $0.04 | [1] | $0.04 | [1] | $0.03 | [1] | $0.02 | [1] | $0.04 | [1] | $0.05 | [1] | ($0.13) | $0.14 | ($0.95) |
Weighted average shares outstanding (including dilutive CSEs) (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 25,973 | 25,992 | 25,973 | ||||||||
Net income (loss) per share - diluted | ($0.13) | [1] | ($0.09) | [1] | $0.04 | [1] | $0.04 | [1] | $0.03 | [1] | $0.02 | [1] | $0.04 | [1] | $0.05 | [1] | ($0.13) | $0.14 | ($0.95) |
[1] | Quarterly net income (loss) per share does not add to full year net income (loss) per share due to rounding. |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies, Trust Preferred Securities (Details) | Dec. 31, 2013 |
Security | |
Trust Preferred Securities [Abstract] | ' |
Number of trust preferred securities issued | 3 |
Maximum percentage of capital permitted to invest in trust preferred securities (in hundredths) | 25.00% |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies, Variable Interest Entities (Details) (USD $) | Dec. 31, 2013 |
Variable Interest Entities [Abstract] | ' |
Increase in entity's outstanding debt from non-consolidation of VIE | $676,000 |
Investment_Securities_Unrealiz
Investment Securities, Unrealized Gain (Loss) on Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | $209,303 | $187,667 |
Gross Unrealized Gains | 2,755 | 4,588 |
Gross Unrealized Losses | -7,167 | -2,996 |
Available-for-sale Securities, Fair Value | 204,891 | 189,259 |
Amortized Cost | 21 | 67 |
Gross Unrecognized Gains | 0 | 2 |
Gross Unrecognized Losses | 0 | 0 |
Total securities held to maturity, Fair Value | 21 | 69 |
Collateralized mortgage obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 127,242 | 97,959 |
Gross Unrealized Gains | 665 | 1,830 |
Gross Unrealized Losses | -4,467 | -6 |
Available-for-sale Securities, Fair Value | 123,440 | 99,783 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 15,669 | 20,626 |
Gross Unrealized Gains | 623 | 1,014 |
Gross Unrealized Losses | -111 | 0 |
Available-for-sale Securities, Fair Value | 16,181 | 21,640 |
Municipal securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 9,737 | 11,150 |
Gross Unrealized Gains | 68 | 967 |
Gross Unrealized Losses | -162 | -16 |
Available-for-sale Securities, Fair Value | 9,643 | 12,101 |
Corporate bonds [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 32,174 | 32,231 |
Gross Unrealized Gains | 1,079 | 639 |
Gross Unrealized Losses | 0 | -185 |
Available-for-sale Securities, Fair Value | 33,253 | 32,685 |
Asset-backed Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 19,089 | 19,785 |
Gross Unrealized Gains | 318 | 135 |
Gross Unrealized Losses | 0 | -191 |
Available-for-sale Securities, Fair Value | 19,407 | 19,729 |
Trust Preferred Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 5,277 | 5,785 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -2,427 | -2,598 |
Available-for-sale Securities, Fair Value | 2,850 | 3,187 |
U.S. Government agencies [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 1 | 1 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | 0 | 0 |
Total securities held to maturity, Fair Value | 1 | 1 |
Other securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Amortized Cost | 115 | 131 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Fair Value | 117 | 134 |
Amortized Cost | 20 | 66 |
Gross Unrecognized Gains | 0 | 2 |
Gross Unrecognized Losses | 0 | 0 |
Total securities held to maturity, Fair Value | $20 | $68 |
Investment_Securities_Classifi
Investment Securities, Classified by Contractual Maturity Date (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment Securities [Abstract] | ' | ' |
Available for Sale: Amortized Cost: Due in 1 year or less | $1,192 | ' |
Available for Sale: Amortized Cost: After 1 year to 5 years | 74,270 | ' |
Available for Sale: Amortized Cost: After 5 years to 10 years | 123,418 | ' |
Available for Sale: Amortized Cost: After 10 years | 10,423 | ' |
Available for Sale: Amortized Cost: Total | 209,303 | ' |
Available for Sale: Fair Value: Due in 1 year or less | 1,195 | ' |
Available for Sale: Fair Value: After 1 year to 5 years | 74,351 | ' |
Available for Sale: Fair Value: After 5 years to 10 years | 118,653 | ' |
Available for Sale: Fair Value: After 10 years | 10,692 | ' |
Available-for-sale Securities, Fair Value | 204,891 | 189,259 |
Held to Maturity: Amortized Cost: Due in 1 year or less | 0 | ' |
Held to Maturity: Amortized Cost: After 1 year to 5 years | 21 | ' |
Held-to-Maturity: After 5 years to 10 years | 0 | ' |
Held-to-Maturity: After 10 years | 0 | ' |
Held to Maturity: Amortized Cost: Total | 21 | 67 |
Held to Maturity: Fair Value: Due in 1 year or less | 0 | ' |
Held to Maturity: Fair Value: After 1 year to 5 years | 21 | ' |
Held-to-Maturity: After 5 years to 10 years | 0 | ' |
Held-to-Maturity: After 10 years | 0 | ' |
Total securities held to maturity, Fair Value | $21 | $69 |
Investment_Securities_Narrativ
Investment Securities, Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Investments [Line Items] | ' | ' | ' |
Impairment charges (credit losses) on trust preferred securities | $0 | $34,000 | $42,000 |
Gain on sale of investment securities | 703,000 | 737,000 | 640,000 |
Sale proceeds from sale of securities | 7,946,000 | 25,784,000 | 34,277,000 |
Income tax provision on gross gain on sale of securities | 253,000 | 265,000 | 224,000 |
Securities pledged as collateral | 113,100,000 | 100,800,000 | ' |
Market value of securities in the Pennsylvania geographical area with the highest concentration of municipal securities | 1,300,000 | ' | ' |
Available-for-sale securities, market value | 204,891,000 | 189,259,000 | ' |
Municipal securities [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Number of securities in investment portfolio number | 17 | ' | ' |
Securities in unrealized loss positions, number of positions | 9 | ' | ' |
Number of securities in the geographical area with the highest concentration of municipal securities | 1 | ' | ' |
Available-for-sale securities, market value | 9,643,000 | 12,101,000 | ' |
Percentage of securities with government guarantee (in hundredths) | 97.00% | ' | ' |
Number of municipal securities with OTTI impairment | 0 | ' | ' |
Collateralized mortgage obligations [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Number of securities in investment portfolio number | 25 | ' | ' |
Securities in unrealized loss positions, number of positions | 17 | ' | ' |
Available-for-sale securities, market value | 123,440,000 | 99,783,000 | ' |
Mortgage-backed securities [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Number of securities in investment portfolio number | 42 | ' | ' |
Securities in unrealized loss positions, number of positions | 2 | ' | ' |
Available-for-sale securities, market value | $16,181,000 | $21,640,000 | ' |
Number of municipal securities with OTTI impairment | ' | 0 | ' |
Investment_Securities_Schedule
Investment Securities, Schedule of Credit-Related Impairment Losses on Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investment Securities [Abstract] | ' | ' | ' |
Beginning Balance | $3,959,000 | $3,925,000 | ' |
Additional credit-related impairment loss on securities for which an other-than-temporary impairment was previously recognized | 0 | 34,000 | 42,000 |
Reductions for securities paid off during the period | 0 | 0 | ' |
Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the Company intends to sell the security | 0 | 0 | ' |
Ending Balance | $3,959,000 | $3,959,000 | $3,925,000 |
Investment_Securities_Schedule1
Investment Securities, Schedule of Unrealized Loss on Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | $79,695 | $20,259 |
12 Months or more: Fair Value | 12,670 | 12,998 |
Total: Fair Value | 92,365 | 33,257 |
Less than 12 Months: Unrealized Losses | 4,126 | 213 |
12 Months or more: Unrealized Losses | 3,041 | 2,783 |
Total: Unrealized Losses | 7,167 | 2,996 |
Collateralized mortgage obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | 73,137 | 9,991 |
12 Months or more: Fair Value | 8,697 | 0 |
Total: Fair Value | 81,834 | 9,991 |
Less than 12 Months: Unrealized Losses | 3,923 | 6 |
12 Months or more: Unrealized Losses | 544 | 0 |
Total: Unrealized Losses | 4,467 | 6 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | 1,450 | ' |
12 Months or more: Fair Value | 1,123 | ' |
Total: Fair Value | 2,573 | ' |
Less than 12 Months: Unrealized Losses | 41 | ' |
12 Months or more: Unrealized Losses | 70 | ' |
Total: Unrealized Losses | 111 | ' |
Municipal securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | 5,108 | 1,050 |
12 Months or more: Fair Value | 0 | 0 |
Total: Fair Value | 5,108 | 1,050 |
Less than 12 Months: Unrealized Losses | 162 | 16 |
12 Months or more: Unrealized Losses | 0 | 0 |
Total: Unrealized Losses | 162 | 16 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | 0 | 0 |
12 Months or more: Fair Value | 0 | 9,811 |
Total: Fair Value | 0 | 9,811 |
Less than 12 Months: Unrealized Losses | 0 | 0 |
12 Months or more: Unrealized Losses | 0 | 185 |
Total: Unrealized Losses | 0 | 185 |
Asset-backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | ' | 9,218 |
12 Months or more: Fair Value | ' | 0 |
Total: Fair Value | ' | 9,218 |
Less than 12 Months: Unrealized Losses | ' | 191 |
12 Months or more: Unrealized Losses | ' | 0 |
Total: Unrealized Losses | ' | 191 |
Trust Preferred Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months: Fair Value | 0 | 0 |
12 Months or more: Fair Value | 2,850 | 3,187 |
Total: Fair Value | 2,850 | 3,187 |
Less than 12 Months: Unrealized Losses | 0 | 0 |
12 Months or more: Unrealized Losses | 2,427 | 2,598 |
Total: Unrealized Losses | $2,427 | $2,598 |
Investment_Securities_Trust_Pr
Investment Securities, Trust Preferred Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Bank | Preferred Term Securities IV [Member] | Preferred Term Securities IV [Member] | Preferred Term Securities VII [Member] | Preferred Term Securities VII [Member] | TPREF Funding II [Member] | TPREF Funding II [Member] | TPREF Funding III [Member] | TPREF Funding III [Member] | Trapeza CDO I, LLC [Member] | Trapeza CDO I, LLC [Member] | ALESCO Preferred Funding IV [Member] | ALESCO Preferred Funding IV [Member] | ALESCO Preferred Funding V [Member] | ALESCO Preferred Funding V [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | ||
Bank | Bank | Bank | Bank | Bank | Bank | Bank | |||||||||||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class / Tranche | ' | ' | ' | ' | 'Mezzanine Notes | ' | 'Mezzanine Notes | ' | 'Class B Notes | ' | 'Class B2 Notes | ' | 'Class C1 Notes | ' | 'Class B1 Notes | ' | 'Class C1 Notes | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $209,303 | $187,667 | ' | $49 | ' | $989 | ' | $739 | ' | $1,520 | ' | $556 | ' | $604 | ' | $820 | ' | $5,277 | $5,785 |
Available-for-sale securities, market value | 204,891 | 189,259 | ' | 39 | ' | 726 | ' | 336 | ' | 696 | ' | 284 | ' | 358 | ' | 411 | ' | 2,850 | 3,187 |
Gross Unrealized Losses | -7,167 | -2,996 | ' | -10 | ' | -263 | ' | -403 | ' | -824 | ' | -272 | ' | -246 | ' | -409 | ' | -2,427 | -2,598 |
Lowest Credit Rating Assigned | ' | ' | ' | 'B | ' | 'C | ' | 'C | ' | 'C | ' | 'C | ' | 'C | ' | 'C | ' | ' | ' |
Number of banks currently performing | 140 | ' | ' | 6 | ' | 11 | ' | 17 | ' | 17 | ' | 9 | ' | 41 | ' | 39 | ' | ' | ' |
Deferrals / Defaults as % of Current Balance (in hundredths) | 38.00% | ' | ' | 18.00% | ' | 54.00% | ' | 41.00% | ' | 34.00% | ' | 49.00% | ' | 6.00% | ' | 24.00% | ' | ' | ' |
Conditional Default Rates for 2013 and beyond (in hundredths) | ' | ' | ' | 0.34% | ' | 0.36% | ' | 0.39% | ' | 0.31% | ' | 0.38% | ' | 0.36% | ' | 0.36% | ' | ' | ' |
Cumulative OTTI Life to Date | $3,959 | $3,959 | $3,925 | $0 | ' | $2,173 | ' | $260 | ' | $480 | ' | $470 | ' | $396 | ' | $180 | ' | ' | ' |
Loans_Receivable_Gross_Loans_b
Loans Receivable, Gross Loans by Loan Portfolio Class (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | $679,549 | $618,121 |
Deferred costs (fees) | -238 | -220 |
Allowance for loan losses | -12,263 | -9,542 |
Net loans receivable | 667,048 | 608,359 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | 342,794 | 335,561 |
Construction and Land Development [Member] | ' | ' |
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | 23,977 | 26,659 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | 118,209 | 103,768 |
Owner occupied real estate [Member] | ' | ' |
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | 160,229 | 126,242 |
Consumer and Other [Member] | ' | ' |
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | 31,981 | 23,449 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable Portfolio Summary [Line Items] | ' | ' |
Total loans receivable | $2,359 | $2,442 |
Loans_Receivable_Impaired_Loan
Loans Receivable, Impaired Loans by Loan Portfolio Class (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with no related allowance: Recorded Investment | $10,790 | $27,594 |
Impaired Loans with an allowance recorded: Recorded Investment | 21,743 | 13,421 |
Total Recorded Investment | 32,533 | 41,015 |
Impaired Loans with no related allowance: Unpaid Principal Balance | 15,502 | 35,069 |
Impaired Loans with an allowance recorded: Unpaid Principal Balance | 27,646 | 16,645 |
Total Unpaid Principal Balance | 43,148 | 51,714 |
Impaired Loans with an allowance recorded: Related Allowance | 5,610 | 2,943 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with no related allowance: Recorded Investment | 6,850 | 19,231 |
Impaired Loans with an allowance recorded: Recorded Investment | 13,044 | 6,085 |
Total Recorded Investment | 19,894 | 25,316 |
Impaired Loans with no related allowance: Unpaid Principal Balance | 6,971 | 20,000 |
Impaired Loans with an allowance recorded: Unpaid Principal Balance | 13,044 | 6,085 |
Total Unpaid Principal Balance | 20,015 | 26,085 |
Impaired Loans with an allowance recorded: Related Allowance | 3,679 | 1,077 |
Construction and Land Development [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with no related allowance: Recorded Investment | 902 | 3,153 |
Impaired Loans with an allowance recorded: Recorded Investment | 716 | 593 |
Total Recorded Investment | 1,618 | 3,746 |
Impaired Loans with no related allowance: Unpaid Principal Balance | 4,076 | 6,312 |
Impaired Loans with an allowance recorded: Unpaid Principal Balance | 3,867 | 3,700 |
Total Unpaid Principal Balance | 7,943 | 10,012 |
Impaired Loans with an allowance recorded: Related Allowance | 237 | 70 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with no related allowance: Recorded Investment | 2,043 | 3,793 |
Impaired Loans with an allowance recorded: Recorded Investment | 4,889 | 3,147 |
Total Recorded Investment | 6,932 | 6,940 |
Impaired Loans with no related allowance: Unpaid Principal Balance | 2,882 | 7,106 |
Impaired Loans with an allowance recorded: Unpaid Principal Balance | 7,634 | 3,255 |
Total Unpaid Principal Balance | 10,516 | 10,361 |
Impaired Loans with an allowance recorded: Related Allowance | 1,254 | 861 |
Owner occupied real estate [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with no related allowance: Recorded Investment | 542 | 505 |
Impaired Loans with an allowance recorded: Recorded Investment | 2,891 | 3,450 |
Total Recorded Investment | 3,433 | 3,955 |
Impaired Loans with no related allowance: Unpaid Principal Balance | 862 | 505 |
Impaired Loans with an allowance recorded: Unpaid Principal Balance | 2,891 | 3,450 |
Total Unpaid Principal Balance | 3,753 | 3,955 |
Impaired Loans with an allowance recorded: Related Allowance | 430 | 860 |
Consumer and Other [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with no related allowance: Recorded Investment | 453 | 912 |
Impaired Loans with an allowance recorded: Recorded Investment | 203 | 146 |
Total Recorded Investment | 656 | 1,058 |
Impaired Loans with no related allowance: Unpaid Principal Balance | 711 | 1,146 |
Impaired Loans with an allowance recorded: Unpaid Principal Balance | 210 | 155 |
Total Unpaid Principal Balance | 921 | 1,301 |
Impaired Loans with an allowance recorded: Related Allowance | $10 | $75 |
Loans_Receivable_Average_of_Im
Loans Receivable, Average of Impaired Loans and Related Interest Income by Loan Portfolio Class (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Impaired Loans with no related allowance recorded: Average Recorded Investment | $19,797 | $26,415 | ' |
Impaired Loans with an allowance recorded: Average Recorded Investment | 13,890 | 14,392 | ' |
Total Average Recorded Investment | 33,687 | 40,807 | 70,700 |
Impaired loans with no related allowance recorded: Interest Income Recognized | 800 | 1,102 | ' |
Impaired Loans with an allowance recorded: Interest Income Recognized | 381 | 513 | ' |
Total Interest Income Recognized | 1,181 | 1,615 | 1,900 |
Commercial Real Estate [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Impaired Loans with no related allowance recorded: Average Recorded Investment | 14,062 | 15,675 | ' |
Impaired Loans with an allowance recorded: Average Recorded Investment | 6,261 | 7,207 | ' |
Total Average Recorded Investment | 20,323 | 22,882 | ' |
Impaired loans with no related allowance recorded: Interest Income Recognized | 731 | 821 | ' |
Impaired Loans with an allowance recorded: Interest Income Recognized | 195 | 312 | ' |
Total Interest Income Recognized | 926 | 1,133 | ' |
Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Impaired Loans with no related allowance recorded: Average Recorded Investment | 1,954 | 4,587 | ' |
Impaired Loans with an allowance recorded: Average Recorded Investment | 499 | 1,163 | ' |
Total Average Recorded Investment | 2,453 | 5,750 | ' |
Impaired loans with no related allowance recorded: Interest Income Recognized | 35 | 112 | ' |
Impaired Loans with an allowance recorded: Interest Income Recognized | 0 | 0 | ' |
Total Interest Income Recognized | 35 | 112 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Impaired Loans with no related allowance recorded: Average Recorded Investment | 2,783 | 4,366 | ' |
Impaired Loans with an allowance recorded: Average Recorded Investment | 3,881 | 3,393 | ' |
Total Average Recorded Investment | 6,664 | 7,759 | ' |
Impaired loans with no related allowance recorded: Interest Income Recognized | 19 | 128 | ' |
Impaired Loans with an allowance recorded: Interest Income Recognized | 40 | 47 | ' |
Total Interest Income Recognized | 59 | 175 | ' |
Owner occupied real estate [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Impaired Loans with no related allowance recorded: Average Recorded Investment | 347 | 912 | ' |
Impaired Loans with an allowance recorded: Average Recorded Investment | 3,139 | 2,542 | ' |
Total Average Recorded Investment | 3,486 | 3,454 | ' |
Impaired loans with no related allowance recorded: Interest Income Recognized | 9 | 32 | ' |
Impaired Loans with an allowance recorded: Interest Income Recognized | 146 | 154 | ' |
Total Interest Income Recognized | 155 | 186 | ' |
Consumer and Other [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Impaired Loans with no related allowance recorded: Average Recorded Investment | 651 | 875 | ' |
Impaired Loans with an allowance recorded: Average Recorded Investment | 110 | 87 | ' |
Total Average Recorded Investment | 761 | 962 | ' |
Impaired loans with no related allowance recorded: Interest Income Recognized | 6 | 9 | ' |
Impaired Loans with an allowance recorded: Interest Income Recognized | 0 | 0 | ' |
Total Interest Income Recognized | $6 | $9 | ' |
Loans_Receivable_Narrative_Det
Loans Receivable, Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Impaired loans interest lost on nonaccrual loans | $488,000 | $699,000 | $583,000 |
Loans_Receivable_Summary_of_Re
Loans Receivable, Summary of Related Party Loans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans Receivable [Abstract] | ' | ' | ' |
Balance at beginning of year | $9,128 | $16,941 | $16,376 |
Additions | 51 | 259 | 1,727 |
Repayments | -417 | -8,072 | -1,162 |
Balance at end of year | $8,762 | $9,128 | $16,941 |
Allowances_for_Loan_Losses_Act
Allowances for Loan Losses, Activity in and Ending Balances of Allowance for Loan Losses by Loan Portfolio Class (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | $9,542 | ' | ' | ' | $12,050 | $9,542 | $12,050 | $11,444 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -2,357 | -3,992 | -15,469 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 143 | 134 | 109 |
Provision for loan losses | 3,760 | 250 | 925 | 0 | 750 | 850 | 500 | -750 | 4,935 | 1,350 | 15,966 |
Balance at end of year | 12,263 | ' | ' | ' | 9,542 | ' | ' | ' | 12,263 | 9,542 | 12,050 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 5,610 | ' | ' | ' | 2,943 | ' | ' | ' | 5,610 | 2,943 | ' |
Allowance for loan losses: collectively evaluated for impairment | 6,653 | ' | ' | ' | 6,599 | ' | ' | ' | 6,653 | 6,599 | ' |
Allowance for Loan Losses | 12,263 | ' | ' | ' | 9,542 | ' | ' | ' | 12,263 | 9,542 | 12,050 |
Loans receivable: individually evaluated for impairment | 32,533 | ' | ' | ' | 41,015 | ' | ' | ' | 32,533 | 41,015 | ' |
Loans receivable: collectively evaluated for impairment | 647,016 | ' | ' | ' | 577,106 | ' | ' | ' | 647,016 | 577,106 | ' |
Total loans receivable | 679,549 | ' | ' | ' | 618,121 | ' | ' | ' | 679,549 | 618,121 | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 3,979 | ' | ' | ' | 7,372 | 3,979 | 7,372 | 7,243 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -1,291 | -1,582 | -8,783 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 54 | 0 | 44 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 3,712 | -1,811 | 8,868 |
Balance at end of year | 6,454 | ' | ' | ' | 3,979 | ' | ' | ' | 6,454 | 3,979 | 7,372 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 3,679 | ' | ' | ' | 1,077 | ' | ' | ' | 3,679 | 1,077 | ' |
Allowance for loan losses: collectively evaluated for impairment | 2,775 | ' | ' | ' | 2,902 | ' | ' | ' | 2,775 | 2,902 | ' |
Allowance for Loan Losses | 6,454 | ' | ' | ' | 3,979 | ' | ' | ' | 6,454 | 3,979 | 7,372 |
Loans receivable: individually evaluated for impairment | 19,894 | ' | ' | ' | 25,316 | ' | ' | ' | 19,894 | 25,316 | ' |
Loans receivable: collectively evaluated for impairment | 322,900 | ' | ' | ' | 310,245 | ' | ' | ' | 322,900 | 310,245 | ' |
Total loans receivable | 342,794 | ' | ' | ' | 335,561 | ' | ' | ' | 342,794 | 335,561 | ' |
Construction and Land Development [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 1,273 | ' | ' | ' | 558 | 1,273 | 558 | 837 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -60 | -1,004 | -3,719 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 105 | 10 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 735 | 1,614 | 3,430 |
Balance at end of year | 1,948 | ' | ' | ' | 1,273 | ' | ' | ' | 1,948 | 1,273 | 558 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 237 | ' | ' | ' | 70 | ' | ' | ' | 237 | 70 | ' |
Allowance for loan losses: collectively evaluated for impairment | 1,711 | ' | ' | ' | 1,203 | ' | ' | ' | 1,711 | 1,203 | ' |
Allowance for Loan Losses | 1,948 | ' | ' | ' | 1,273 | ' | ' | ' | 1,948 | 1,273 | 558 |
Loans receivable: individually evaluated for impairment | 1,618 | ' | ' | ' | 3,746 | ' | ' | ' | 1,618 | 3,746 | ' |
Loans receivable: collectively evaluated for impairment | 22,359 | ' | ' | ' | 22,913 | ' | ' | ' | 22,359 | 22,913 | ' |
Total loans receivable | 23,977 | ' | ' | ' | 26,659 | ' | ' | ' | 23,977 | 26,659 | ' |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 1,880 | ' | ' | ' | 1,928 | 1,880 | 1,928 | 1,443 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -611 | -1,304 | -1,088 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 63 | 0 | 0 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 977 | 1,256 | 1,573 |
Balance at end of year | 2,309 | ' | ' | ' | 1,880 | ' | ' | ' | 2,309 | 1,880 | 1,928 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 1,254 | ' | ' | ' | 861 | ' | ' | ' | 1,254 | 861 | ' |
Allowance for loan losses: collectively evaluated for impairment | 1,055 | ' | ' | ' | 1,019 | ' | ' | ' | 1,055 | 1,019 | ' |
Allowance for Loan Losses | 2,309 | ' | ' | ' | 1,880 | ' | ' | ' | 2,309 | 1,880 | 1,928 |
Loans receivable: individually evaluated for impairment | 6,932 | ' | ' | ' | 6,940 | ' | ' | ' | 6,932 | 6,940 | ' |
Loans receivable: collectively evaluated for impairment | 111,277 | ' | ' | ' | 96,828 | ' | ' | ' | 111,277 | 96,828 | ' |
Total loans receivable | 118,209 | ' | ' | ' | 103,768 | ' | ' | ' | 118,209 | 103,768 | ' |
Owner occupied real estate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 1,967 | ' | ' | ' | 1,963 | 1,967 | 1,963 | 1,575 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -320 | 0 | -1,838 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 15 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -662 | 4 | 2,211 |
Balance at end of year | 985 | ' | ' | ' | 1,967 | ' | ' | ' | 985 | 1,967 | 1,963 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 430 | ' | ' | ' | 860 | ' | ' | ' | 430 | 860 | ' |
Allowance for loan losses: collectively evaluated for impairment | 555 | ' | ' | ' | 1,107 | ' | ' | ' | 555 | 1,107 | ' |
Allowance for Loan Losses | 985 | ' | ' | ' | 1,967 | ' | ' | ' | 985 | 1,967 | 1,963 |
Loans receivable: individually evaluated for impairment | 3,433 | ' | ' | ' | 3,955 | ' | ' | ' | 3,433 | 3,955 | ' |
Loans receivable: collectively evaluated for impairment | 156,796 | ' | ' | ' | 122,287 | ' | ' | ' | 156,796 | 122,287 | ' |
Total loans receivable | 160,229 | ' | ' | ' | 126,242 | ' | ' | ' | 160,229 | 126,242 | ' |
Consumer and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 234 | ' | ' | ' | 113 | 234 | 113 | 130 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -75 | -102 | -41 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 26 | 29 | 40 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 40 | 194 | -16 |
Balance at end of year | 225 | ' | ' | ' | 234 | ' | ' | ' | 225 | 234 | 113 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 10 | ' | ' | ' | 75 | ' | ' | ' | 10 | 75 | ' |
Allowance for loan losses: collectively evaluated for impairment | 215 | ' | ' | ' | 159 | ' | ' | ' | 215 | 159 | ' |
Allowance for Loan Losses | 225 | ' | ' | ' | 234 | ' | ' | ' | 225 | 234 | 113 |
Loans receivable: individually evaluated for impairment | 656 | ' | ' | ' | 1,058 | ' | ' | ' | 656 | 1,058 | ' |
Loans receivable: collectively evaluated for impairment | 31,325 | ' | ' | ' | 22,391 | ' | ' | ' | 31,325 | 22,391 | ' |
Total loans receivable | 31,981 | ' | ' | ' | 23,449 | ' | ' | ' | 31,981 | 23,449 | ' |
Residential Mortgage [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 17 | ' | ' | ' | 23 | 17 | 23 | 41 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -6 | -18 |
Balance at end of year | 14 | ' | ' | ' | 17 | ' | ' | ' | 14 | 17 | 23 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Allowance for loan losses: collectively evaluated for impairment | 14 | ' | ' | ' | 17 | ' | ' | ' | 14 | 17 | ' |
Allowance for Loan Losses | 14 | ' | ' | ' | 17 | ' | ' | ' | 14 | 17 | 23 |
Loans receivable: individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Loans receivable: collectively evaluated for impairment | 2,359 | ' | ' | ' | 2,442 | ' | ' | ' | 2,359 | 2,442 | ' |
Total loans receivable | 2,359 | ' | ' | ' | 2,442 | ' | ' | ' | 2,359 | 2,442 | ' |
Unallocated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | ' | 192 | ' | ' | ' | 93 | 192 | 93 | 175 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 136 | 99 | -82 |
Balance at end of year | 328 | ' | ' | ' | 192 | ' | ' | ' | 328 | 192 | 93 |
Allowance for credit loss, additional information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Allowance for loan losses: collectively evaluated for impairment | 328 | ' | ' | ' | 192 | ' | ' | ' | 328 | 192 | ' |
Allowance for Loan Losses | 328 | ' | ' | ' | 192 | ' | ' | ' | 328 | 192 | 93 |
Loans receivable: individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Loans receivable: collectively evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Total loans receivable | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | ' |
Allowances_for_Loan_Losses_Pas
Allowances for Loan Losses, Past Due Financing Receivables (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | $21,504 | $1,143 |
60 to 89 Days Past Due | 6,987 | 27,823 |
Greater than 90 Days | 10,420 | 16,048 |
Total Past Due | 38,911 | 45,014 |
Current | 640,638 | 573,107 |
Total loans receivable | 679,549 | 618,121 |
Loans Receivable > 90 Days and Accruing | 0 | 202 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 19,707 | 772 |
60 to 89 Days Past Due | 5,635 | 26,000 |
Greater than 90 Days | 1,104 | 7,987 |
Total Past Due | 26,446 | 34,759 |
Current | 316,348 | 300,802 |
Total loans receivable | 342,794 | 335,561 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60 to 89 Days Past Due | 0 | 261 |
Greater than 90 Days | 1,618 | 1,342 |
Total Past Due | 1,618 | 1,603 |
Current | 22,359 | 25,056 |
Total loans receivable | 23,977 | 26,659 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 951 | 86 |
60 to 89 Days Past Due | 71 | 0 |
Greater than 90 Days | 6,837 | 4,693 |
Total Past Due | 7,859 | 4,779 |
Current | 110,350 | 98,989 |
Total loans receivable | 118,209 | 103,768 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Owner Occupied Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 808 | 285 |
60 to 89 Days Past Due | 1,281 | 1,562 |
Greater than 90 Days | 205 | 968 |
Total Past Due | 2,294 | 2,815 |
Current | 157,935 | 123,427 |
Total loans receivable | 160,229 | 126,242 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 38 | 0 |
60 to 89 Days Past Due | 0 | 0 |
Greater than 90 Days | 656 | 1,058 |
Total Past Due | 694 | 1,058 |
Current | 31,287 | 22,391 |
Total loans receivable | 31,981 | 23,449 |
Loans Receivable > 90 Days and Accruing | 0 | 202 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 0 |
60 to 89 Days Past Due | 0 | 0 |
Greater than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 2,359 | 2,442 |
Total loans receivable | 2,359 | 2,442 |
Loans Receivable > 90 Days and Accruing | $0 | $0 |
Allowances_for_Loan_Losses_Cla
Allowances for Loan Losses, Class of Loan Portfolio Summarized by Aggregate Risk Rating (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | $679,549 | $618,121 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 342,794 | 335,561 |
Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 23,977 | 26,659 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 118,209 | 103,768 |
Owner Occupied Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 160,229 | 126,242 |
Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 31,981 | 23,449 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 2,359 | 2,442 |
Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 627,962 | 564,733 |
Pass [Member] | Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 305,974 | 300,174 |
Pass [Member] | Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 22,359 | 22,652 |
Pass [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 110,629 | 96,051 |
Pass [Member] | Owner Occupied Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 155,648 | 121,381 |
Pass [Member] | Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 30,993 | 22,033 |
Pass [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 2,359 | 2,442 |
Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 18,543 | 11,083 |
Special Mention [Member] | Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 16,372 | 9,174 |
Special Mention [Member] | Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 261 |
Special Mention [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 611 | 642 |
Special Mention [Member] | Owner Occupied Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 1,485 | 906 |
Special Mention [Member] | Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 75 | 100 |
Special Mention [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Substandard [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 33,044 | 42,305 |
Substandard [Member] | Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 20,448 | 26,213 |
Substandard [Member] | Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 1,618 | 3,746 |
Substandard [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 6,969 | 7,075 |
Substandard [Member] | Owner Occupied Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 3,096 | 3,955 |
Substandard [Member] | Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 913 | 1,316 |
Substandard [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | Owner Occupied Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | 0 | 0 |
Doubtful [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total loans receivable | $0 | $0 |
Allowances_for_Loan_Losses_Non
Allowances for Loan Losses, Nonaccrual Loans by Class (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | $10,420,000 | $15,846,000 | ' |
Impaired loans interest lost on nonaccrual loans | 488,000 | 699,000 | 583,000 |
Commercial Real Estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | 1,104,000 | 7,987,000 | ' |
Construction and Land Development [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | 1,618,000 | 1,342,000 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | 6,837,000 | 4,693,000 | ' |
Owner occupied real estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | 205,000 | 968,000 | ' |
Consumer and Other [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | 656,000 | 856,000 | ' |
Residential Mortgage [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-Accrual Status | $0 | $0 | ' |
Allowances_for_Loan_Losses_Tro
Allowances for Loan Losses, Troubled Debt Restructurings (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loan | Loan | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 3 | 4 |
Accrual Status | $1,997 | $7,511 |
Non-accrual status | 2,188 | 0 |
Total TDRs | 4,185 | 7,511 |
Number of loans, Subsequent Default | 1 | 0 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | 1 |
Accrual Status | 103 | 1,261 |
Non-accrual status | 0 | 0 |
Total TDRs | 103 | 1,261 |
Construction and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 1 |
Accrual Status | 0 | 2,069 |
Non-accrual status | 0 | 0 |
Total TDRs | 0 | 2,069 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | 1 |
Accrual Status | 0 | 2,248 |
Non-accrual status | 2,188 | 0 |
Total TDRs | 2,188 | 2,248 |
Owner occupied real estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | 1 |
Accrual Status | 1,894 | 1,933 |
Non-accrual status | 0 | 0 |
Total TDRs | 1,894 | 1,933 |
Consumer and Other [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 0 |
Accrual Status | 0 | 0 |
Non-accrual status | 0 | 0 |
Total TDRs | 0 | 0 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | 0 |
Accrual Status | 0 | 0 |
Non-accrual status | 0 | 0 |
Total TDRs | $0 | $0 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Store | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | $34,346,000 | $32,002,000 | ' |
Less accumulated depreciation | -11,598,000 | -10,026,000 | ' |
Net premises and equipment | 22,748,000 | 21,976,000 | ' |
Depreciation expense | 2,100,000 | 2,000,000 | 2,100,000 |
Costs incurred for the selection and development of future store locations | 6,400,000 | ' | ' |
Number of specific store locations | 2 | ' | ' |
Costs to complete projects in process | 5,000,000 | ' | ' |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 200,000 | 200,000 | ' |
Costs incurred for the selection and development of future store locations | 4,000,000 | ' | ' |
Bank building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 1,057,000 | 1,051,000 | ' |
Leasehold improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 19,017,000 | 18,714,000 | ' |
Furniture, fixtures and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | 7,670,000 | 6,894,000 | ' |
Construction in progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, Gross | $6,402,000 | $5,143,000 | ' |
Borrowings_Details
Borrowings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2006 | Jun. 28, 2007 | Jun. 10, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | Security | Republic First Bancorp [Member] | Republic First Bancorp [Member] | Republic Capital Trust II [Member] | Republic Capital Trust III [Member] | Republic Capital Trust IV [Member] | Federal Home Loan Bank of Pittsburgh [Member] | Federal Home Loan Bank of Pittsburgh [Member] | Federal Home Loan Bank of Pittsburgh [Member] | Federal Home Loan Bank of Pittsburgh [Member] | Federal Home Loan Bank of Pittsburgh [Member] | Correspondent Bank [Member] | Correspondent Bank [Member] | Correspondent Bank [Member] |
Fixed Term Advances [Member] | Fixed Term Advances [Member] | Overnight Advances [Member] | Overnight Advances [Member] | Overnight Advances [Member] | ||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | $372.60 | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | 0 | 0 | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Maximum amount outstanding on line of credit during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
Maximum amount of term advances outstanding at any month-end | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | 0 | 4.5 |
Number of trust preferred securities issued | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of capital permitted to invest in trust preferred securities (in hundredths) | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of Trust Preferred Securities | ' | ' | ' | 6 | 5 | 10.8 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common securities | ' | ' | ' | 0.2 | 0.2 | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds by Company from sale of junior subordinated debentures to trusts | ' | ' | ' | $6.20 | $5.20 | $11.10 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | 31-Dec-37 | 31-Dec-37 | 31-Dec-38 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate terms | ' | ' | ' | 'variable interest rate | 'variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, adjustment term | ' | ' | ' | 'adjustable quarterly | 'adjustable quarterly | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread (in hundredths) | ' | ' | ' | 1.73% | 1.55% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, description of variable rate basis | ' | ' | ' | '3-month Libor | '3-month Libor | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, stated interest rate (in hundredths) | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, call feature | ' | ' | ' | 'The Company may call the securities on any interest payment date after five years without a prepayment penalty | 'The Company has the ability to call the securities on any interest payment date without a prepayment penalty | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Call period without a prepayment penalty | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, number of common stock (in shares) | ' | ' | ' | ' | ' | 1.7 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, conversion price per share of common stock (in dollars per share) | ' | ' | ' | ' | ' | $6.50 | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits [Abstract] | ' | ' |
2014 | $53,294,000 | ' |
2015 | 12,980,000 | ' |
2016 | 11,253,000 | ' |
2017 | 462,000 | ' |
2018 | 847,000 | ' |
Thereafter | 0 | ' |
Total | 78,836,000 | 123,234,000 |
Time Deposits, $100,000 or More | 39,400,000 | 78,300,000 |
Deposits of related parties | $57,500,000 | $59,400,000 |
Income_Taxes_Income_Tax_Expens
Income Taxes, Income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current: Federal | ' | ' | ' | ' | ' | ' | ' | ' | $269 | $81 | ($71) |
Current: State | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -304 | -225 | 8,262 |
Total provision (benefit) for income taxes | $33 | ($18) | ($24) | ($26) | ($54) | ($28) | $7 | ($69) | ($35) | ($144) | $8,191 |
Income_Taxes_Effective_Income_
Income Taxes, Effective Income Tax Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory federal income tax rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' |
Income Tax Examination, Year under Examination | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2012 | '2011 | '2010 |
Tax (benefit) provision computed at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | ($1,230) | $1,214 | ($5,779) | ' |
Tax exempt interest | ' | ' | ' | ' | ' | ' | ' | ' | -210 | -257 | -265 | ' |
Bank owned life insurance | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -26 | -48 | ' |
Deferred tax asset valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 1,428 | -1,002 | 14,912 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -19 | -73 | -629 | ' |
Total provision (benefit) for income taxes | $33 | ($18) | ($24) | ($26) | ($54) | ($28) | $7 | ($69) | ($35) | ($144) | $8,191 | ' |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Asset and Liabilities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred tax assets [Abstract] | ' | ' |
Allowance for loan losses | $4,403,000 | $3,427,000 |
Deferred compensation | 721,000 | 733,000 |
Unrealized loss on securities available for sale | 1,584,000 | 0 |
Realized loss in other than temporary impairment charge | 1,121,000 | 1,121,000 |
Foreclosed real estate write-downs | 1,131,000 | 232,000 |
Interest income on non-accrual loans | 955,000 | 1,000,000 |
Net operating loss carryforward | 11,826,000 | 11,689,000 |
Other | 986,000 | 1,052,000 |
Total tax deferred assets | 22,727,000 | 19,254,000 |
Deferred tax liabilities [Abstract] | ' | ' |
Deferred loan costs | 859,000 | 712,000 |
Unrealized gain on securities available for sale | 0 | 572,000 |
Other | 460,000 | 450,000 |
Total deferred tax liabilities | 1,319,000 | 1,734,000 |
Net deferred tax asset before valuation allowance | 21,408,000 | 17,520,000 |
Less: valuation allowance | -15,338,000 | -13,910,000 |
Net deferred tax asset | 6,070,000 | 3,610,000 |
Temporary timing difference | 9,600,000 | ' |
Period of net operating loss carried back | '2 years | ' |
Period of net operating loss carried forward | '20 years | ' |
Projected realization of tax assets | $6,100,000 | $3,600,000 |
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commitments to Extend Credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Potential credit risk | $109.30 | $99.70 |
Standby Letters of Credit [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Potential credit risk | $2.70 | $4.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating leases, future minimum payments due, fiscal year maturity [Abstract] | ' | ' | ' |
2014 | $2,547,000 | ' | ' |
2015 | 2,521,000 | ' | ' |
2016 | 2,402,000 | ' | ' |
2017 | 2,416,000 | ' | ' |
2018 | 2,475,000 | ' | ' |
Thereafter | 30,694,000 | ' | ' |
Total | 43,055,000 | ' | ' |
Rent expense | $2,300,000 | $2,200,000 | $2,100,000 |
Regulatory_Capital_Details
Regulatory Capital (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Amount available for dividend distribution without affecting capital adequacy requirements | $10,800,000 | ' |
Actual capital under regulations, amount [Abstract] | ' | ' |
Risk based capital actual, amount | 93,848,000 | 97,006,000 |
Tier one risk based capital actual, amount | 83,652,000 | 87,479,000 |
Tier one leveraged capital actual, amount | 83,652,000 | 87,479,000 |
Actual capital under regulations, ratio [Abstract] | ' | ' |
Risk based capital actual, ratio (in hundredths) | 11.53% | 12.73% |
Tier one risk based capital actual, ratio (in hundredths) | 10.28% | 11.48% |
Tier one leveraged capital actual, ratio (in hundredths) | 8.59% | 9.01% |
For capital adequacy purposes, amount [Abstract] | ' | ' |
Risk based capital for capital adequacy purposes, amount | 65,092,000 | 60,971,000 |
Tier one risk based capital for capital adequacy purposes, amount | 32,546,000 | 30,485,000 |
Tier one leveraged capital for capital adequacy purposes, amount | 38,971,000 | 38,838,000 |
For capital adequacy purposes, ratio [Abstract] | ' | ' |
Risk based capital for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% |
Tier one risk based capital for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
Tier one leveraged capital for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
To be well capitalized under regulatory capital guidelines, amount [Abstract] | ' | ' |
Risk based capital to be well capitalized under regulatory capital guidelines, amount | 0 | 0 |
Tier one risk based capital to be well capitalized under regulatory capital guidelines, amount | 0 | 0 |
Tier one leveraged capital to be well capitalized under regulatory capital guidelines, amount | 0 | 0 |
To be well capitalized under regulatory capital guidelines, ratio [Abstract] | ' | ' |
Risk based capital to be well capitalized under regulatory capital guidelines, ratio (in hundredths) | 0.00% | 0.00% |
Tier one risk based capital to be well capitalized under regulatory capital guidelines, ratio (in hundredths) | 0.00% | 0.00% |
Tier one leveraged capital to be well capitalized under regulatory capital guidelines, ratio (in hundredths) | 0.00% | 0.00% |
Adopted revisions to agencies' capital adequacy guidelines, Basel III [Abstract] | ' | ' |
Future adopted Tier one common equity capital, ratio (in hundredths) | 4.50% | ' |
Future adopted Tier one common equity capital, to be considered "well capitalized", ratio (in hundredths) | 6.50% | ' |
Future adopted Tier one leveraged capital, ratio (in hundredths) | 6.00% | ' |
Future adopted Tier one leveraged capital, to be considered "well capitalized", ratio (in hundredths) | 8.00% | ' |
Capital conservation buffer, common equity tier 1 capital above minimum risk-based capital (in hundredths) | 2.50% | ' |
Republic [Member] | ' | ' |
Actual capital under regulations, amount [Abstract] | ' | ' |
Risk based capital actual, amount | 92,493,000 | 96,366,000 |
Tier one risk based capital actual, amount | 82,305,000 | 86,883,000 |
Tier one leveraged capital actual, amount | 82,305,000 | 86,883,000 |
Actual capital under regulations, ratio [Abstract] | ' | ' |
Risk based capital actual, ratio (in hundredths) | 11.38% | 12.70% |
Tier one risk based capital actual, ratio (in hundredths) | 10.12% | 11.45% |
Tier one leveraged capital actual, ratio (in hundredths) | 8.46% | 8.96% |
For capital adequacy purposes, amount [Abstract] | ' | ' |
Risk based capital for capital adequacy purposes, amount | 65,038,000 | 60,685,000 |
Tier one risk based capital for capital adequacy purposes, amount | 32,519,000 | 30,343,000 |
Tier one leveraged capital for capital adequacy purposes, amount | 38,921,000 | 38,786,000 |
For capital adequacy purposes, ratio [Abstract] | ' | ' |
Risk based capital for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% |
Tier one risk based capital for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
Tier one leveraged capital for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
To be well capitalized under regulatory capital guidelines, amount [Abstract] | ' | ' |
Risk based capital to be well capitalized under regulatory capital guidelines, amount | 81,297,000 | 75,857,000 |
Tier one risk based capital to be well capitalized under regulatory capital guidelines, amount | 48,778,000 | 45,514,000 |
Tier one leveraged capital to be well capitalized under regulatory capital guidelines, amount | $48,651,000 | $48,483,000 |
To be well capitalized under regulatory capital guidelines, ratio [Abstract] | ' | ' |
Risk based capital to be well capitalized under regulatory capital guidelines, ratio (in hundredths) | 10.00% | 10.00% |
Tier one risk based capital to be well capitalized under regulatory capital guidelines, ratio (in hundredths) | 6.00% | 6.00% |
Tier one leveraged capital to be well capitalized under regulatory capital guidelines, ratio (in hundredths) | 5.00% | 5.00% |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Age | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Employer matching contribution, maximum of employee's salary (in hundredths) | 4.00% | ' | ' |
Employer expenses for plan recognized in salaries and employee benefits | $425,000 | $366,000 | $307,000 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Length of annuity payments | '10 years | ' | ' |
Retirement age to be attained to receive postretirement benefits | 65 | ' | ' |
Accrued benefits under the plan | 1,400,000 | ' | ' |
Expense for the plan | 39,000 | 27,000 | 27,000 |
Cash surrender value of contracts (owned by the Company) | 2,200,000 | 2,000,000 | ' |
Deferred Compensation Arrangements [Abstract] | ' | ' | ' |
Vesting period of Company contributions | '3 years | ' | ' |
Deferred compensation plan amount vested | 638,000 | 681,000 | ' |
Deferred compensation plan expense | 0 | 109,000 | 112,000 |
Shares purchased for deferred compensation plan, shares (in shares) | 0 | 0 | 0 |
Deferred compensation plan shares held (in shares) | 112,542 | ' | ' |
Minimum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Monthly annuity payments | 15,000 | ' | ' |
Maximum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Monthly annuity payments | $25,000 | ' | ' |
Fair_Value_Measurements_and_Fa2
Fair Value Measurements and Fair Values of Financial Instruments, Assets Measured on Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | $204,891 | $189,259 |
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 0 | 0 |
(Level 2) Significant Other Observable Inputs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 199,035 | 183,065 |
(Level 3) Significant Unobservable Inputs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 5,856 | 6,194 |
Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Collateralized mortgage obligations | 123,440 | 99,783 |
Mortgage-backed securities | 16,181 | 21,640 |
Municipal securities | 9,643 | 12,101 |
Corporate bonds | 33,253 | 32,685 |
Asset-backed securities | 19,407 | 19,729 |
Trust preferred securities | 2,850 | 3,187 |
Other securities | 117 | 134 |
Available-for-sale Securities, Fair Value | 204,891 | 189,259 |
Recurring [Member] | (Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Collateralized mortgage obligations | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Municipal securities | 0 | 0 |
Corporate bonds | 0 | 0 |
Asset-backed securities | 0 | 0 |
Trust preferred securities | 0 | 0 |
Other securities | 0 | 0 |
Available-for-sale Securities, Fair Value | 0 | 0 |
Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Collateralized mortgage obligations | 123,440 | 99,783 |
Mortgage-backed securities | 16,181 | 21,640 |
Municipal securities | 9,643 | 12,101 |
Corporate bonds | 30,247 | 29,678 |
Asset-backed securities | 19,407 | 19,729 |
Trust preferred securities | 0 | 0 |
Other securities | 117 | 134 |
Available-for-sale Securities, Fair Value | 199,035 | 183,065 |
Recurring [Member] | (Level 3) Significant Unobservable Inputs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ' | ' |
Collateralized mortgage obligations | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Municipal securities | 0 | 0 |
Corporate bonds | 3,006 | 3,007 |
Asset-backed securities | 0 | 0 |
Trust preferred securities | 2,850 | 3,187 |
Other securities | 0 | 0 |
Available-for-sale Securities, Fair Value | $5,856 | $6,194 |
Fair_Value_Measurements_and_Fa3
Fair Value Measurements and Fair Values of Financial Instruments, Significant Unobservable Inputs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Impairment charges on level 3 | $0 | ($35) | ($49) |
Trust Preferred Securities [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Balance, beginning | 3,187 | 3,410 | 3,450 |
Security transferred to Level 3 measurement | 0 | 0 | 0 |
Unrealized gains (losses) | 171 | 401 | 2 |
Pay downs | -508 | -590 | 0 |
Impairment charges on level 3 | 0 | -34 | -42 |
Balance, ending | 2,850 | 3,187 | 3,410 |
Corporate bonds [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Balance, beginning | 3,007 | 3,004 | 3,000 |
Security transferred to Level 3 measurement | 0 | 0 | 0 |
Unrealized gains (losses) | -1 | 3 | 4 |
Pay downs | 0 | 0 | 0 |
Impairment charges on level 3 | 0 | 0 | 0 |
Balance, ending | $3,006 | $3,007 | $3,004 |
Fair_Value_Measurements_and_Fa4
Fair Value Measurements and Fair Values of Financial Instruments, Assets Measured on Nonrecurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
SBA servicing assets | $3,477 | $2,340 | $1,102 |
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
SBA servicing assets | 0 | 0 | ' |
(Level 2) Significant Other Observable Inputs [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
SBA servicing assets | 0 | 0 | ' |
(Level 3) Significant Unobservable Inputs [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
SBA servicing assets | 3,477 | 2,340 | ' |
Nonrecurring [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired Loans | 17,474 | 19,876 | ' |
Other real estate owned | 3,921 | 3,642 | ' |
SBA servicing assets | 3,477 | 2,340 | ' |
Nonrecurring [Member] | (Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired Loans | 0 | 0 | ' |
Other real estate owned | 0 | 0 | ' |
SBA servicing assets | 0 | 0 | ' |
Nonrecurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired Loans | 0 | 0 | ' |
Other real estate owned | 0 | 0 | ' |
SBA servicing assets | 0 | 0 | ' |
Nonrecurring [Member] | (Level 3) Significant Unobservable Inputs [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired Loans | 17,474 | 19,876 | ' |
Other real estate owned | 3,921 | 3,642 | ' |
SBA servicing assets | $3,477 | $2,340 | ' |
Fair_Value_Measurements_and_Fa5
Fair Value Measurements and Fair Values of Financial Instruments, Quantitative Information (Details) (Level 3 [Member], USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Impaired Loans [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 17,474 | 19,876 | ||
Valuation Technique | 'Fair Value of Collateral | [1] | ' | |
Unobservable Input | 'Appraised Value | [2] | ' | |
Other Real Estate Owned [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 3,921 | 3,642 | ||
Valuation Technique | 'Fair Value of Collateral | [1] | ' | |
Unobservable Input | 'Appraised Value Sales Price | [2] | ' | |
SBA Servicing Assets [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 3,477 | 2,340 | ||
Valuation Technique | 'Fair Value | ' | ||
Unobservable Input | 'Individual Loan Valuation | [3] | ' | |
Minimum [Member] | Impaired Loans [Member] | Fair Value Approach [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Appraised value (in hundredths) | 0.00% | [4] | 0.00% | [4] |
Minimum [Member] | Other Real Estate Owned [Member] | Fair Value Approach [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Appraised value (in hundredths) | 4.00% | [4] | 2.00% | [4] |
Maximum [Member] | Impaired Loans [Member] | Fair Value Approach [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Appraised value (in hundredths) | 40.00% | [4] | 48.00% | [4] |
Maximum [Member] | Other Real Estate Owned [Member] | Fair Value Approach [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Appraised value (in hundredths) | 77.00% | [4] | 8.00% | [4] |
Weighted Average [Member] | Impaired Loans [Member] | Fair Value Approach [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Appraised value (in hundredths) | 23.00% | [4] | 15.00% | [4] |
Weighted Average [Member] | Other Real Estate Owned [Member] | Fair Value Approach [Member] | ' | ' | ||
Fair Value Measurements, Quantitative Information [Line Items] | ' | ' | ||
Appraised value (in hundredths) | 17.00% | [4] | 5.00% | [4] |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which include Level 3 inputs that areB not identifiable. | |||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | |||
[3] | There is a lack of transactional data in this market place for the non-guaranteed portion of SBA loans. | |||
[4] | The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presentedB as a percent of the appraised value. |
Fair_Value_Measurements_and_Fa6
Fair Value Measurements and Fair Values of Financial Instruments, SBA Servicing Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ' | ' |
Beginning balance, January 1st | $2,340 | $1,102 |
Additions | 1,349 | 1,175 |
Fair value adjustments | -212 | 63 |
Ending balance, December 31st | $3,477 | $2,340 |
Fair_Value_Measurements_and_Fa7
Fair Value Measurements and Fair Values of Financial Instruments, Sensitivity Analysis (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' | ' |
Fair value of SBA Servicing Asset | $3,477 | $2,340 | $1,102 |
Composition of SBA Loans Serviced for Others Loans (in hundredths) | 100.00% | 100.00% | ' |
Weighted Average Remaining Term | '21 years 4 months 24 days | '21 years 4 months 24 days | ' |
Prepayment Speed (in hundredths) | 6.72% | 6.59% | ' |
Prepayment Speed: Effect on fair value of a 10% increase | -83 | -55 | ' |
Prepayment Speed: Effect on fair value of a 20% increase | -163 | -107 | ' |
Weighted Average Discount Rate (in hundredths) | 13.59% | 14.23% | ' |
Discount Rate: Effect on fair value of a 10% increase | -162 | -115 | ' |
Discount Rate: Effect on fair value of a 20% increase | ($316) | ($222) | ' |
Fixed Rate SBA Loans [Member] | ' | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' | ' |
Composition of SBA Loans Serviced for Others Loans (in hundredths) | 0.00% | 0.00% | ' |
Adjustable Rate SBA Loans [Member] | ' | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' | ' |
Composition of SBA Loans Serviced for Others Loans (in hundredths) | 100.00% | 100.00% | ' |
Fair_Value_Measurements_and_Fa8
Fair Value Measurements and Fair Values of Financial Instruments, Balance Sheet Grouping (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financial Assets [Abstract] | ' | ' | ' |
Investment securities available for sale, at fair value | $204,891 | $189,259 | ' |
Investments securities held to maturity at fair value | 21 | 69 | ' |
SBA servicing assets | 3,477 | 2,340 | 1,102 |
Carrying Amount [Member] | ' | ' | ' |
Financial Assets [Abstract] | ' | ' | ' |
Cash and cash equivalents | 35,880 | 128,004 | ' |
Investment securities available for sale, at fair value | 204,891 | 189,259 | ' |
Investments securities held to maturity at fair value | 21 | 67 | ' |
Restricted stock | 1,570 | 3,816 | ' |
Loans held for sale | 4,931 | 82 | ' |
Loans receivable, net | 667,048 | 608,359 | ' |
SBA servicing assets | 3,477 | 2,340 | ' |
Accrued interest receivable | 3,049 | 3,128 | ' |
Deposits [Abstract] | ' | ' | ' |
Demand, savings and money market | 790,698 | 765,967 | ' |
Time | 78,836 | 123,234 | ' |
Subordinated debt | 22,476 | 22,476 | ' |
Accrued interest payable | 237 | 301 | ' |
Off Balance Sheet Data [Abstract] | ' | ' | ' |
Commitments to extend credit | 0 | 0 | ' |
Standby letters of credit | 0 | 0 | ' |
Fair Value [Member] | ' | ' | ' |
Financial Assets [Abstract] | ' | ' | ' |
Cash and cash equivalents | 35,880 | 128,004 | ' |
Investment securities available for sale, at fair value | 204,891 | 189,259 | ' |
Investments securities held to maturity at fair value | 21 | 69 | ' |
Restricted stock | 1,570 | 3,816 | ' |
Loans held for sale | 5,225 | 82 | ' |
Loans receivable, net | 660,237 | 603,237 | ' |
SBA servicing assets | 3,477 | 2,340 | ' |
Accrued interest receivable | 3,049 | 3,128 | ' |
Deposits [Abstract] | ' | ' | ' |
Demand, savings and money market | 790,698 | 765,967 | ' |
Time | 79,323 | 124,044 | ' |
Subordinated debt | 17,835 | 20,187 | ' |
Accrued interest payable | 237 | 301 | ' |
Off Balance Sheet Data [Abstract] | ' | ' | ' |
Commitments to extend credit | 0 | 0 | ' |
Standby letters of credit | 0 | 0 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Financial Assets [Abstract] | ' | ' | ' |
Cash and cash equivalents | 35,880 | 128,004 | ' |
Investment securities available for sale, at fair value | 0 | 0 | ' |
Investments securities held to maturity at fair value | 0 | 0 | ' |
Restricted stock | 0 | 0 | ' |
Loans held for sale | 0 | 0 | ' |
Loans receivable, net | 0 | 0 | ' |
SBA servicing assets | 0 | 0 | ' |
Accrued interest receivable | 0 | 0 | ' |
Deposits [Abstract] | ' | ' | ' |
Demand, savings and money market | 0 | 0 | ' |
Time | 0 | 0 | ' |
Subordinated debt | 0 | 0 | ' |
Accrued interest payable | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Financial Assets [Abstract] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Investment securities available for sale, at fair value | 199,035 | 183,065 | ' |
Investments securities held to maturity at fair value | 21 | 69 | ' |
Restricted stock | 1,570 | 3,816 | ' |
Loans held for sale | 0 | 0 | ' |
Loans receivable, net | 0 | 0 | ' |
SBA servicing assets | 0 | 0 | ' |
Accrued interest receivable | 3,049 | 3,128 | ' |
Deposits [Abstract] | ' | ' | ' |
Demand, savings and money market | 790,698 | 765,967 | ' |
Time | 79,323 | 124,044 | ' |
Subordinated debt | 0 | 0 | ' |
Accrued interest payable | 237 | 301 | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Financial Assets [Abstract] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Investment securities available for sale, at fair value | 5,856 | 6,194 | ' |
Investments securities held to maturity at fair value | 0 | 0 | ' |
Restricted stock | 0 | 0 | ' |
Loans held for sale | 5,225 | 82 | ' |
Loans receivable, net | 660,237 | 603,237 | ' |
SBA servicing assets | 3,477 | 2,340 | ' |
Accrued interest receivable | 0 | 0 | ' |
Deposits [Abstract] | ' | ' | ' |
Demand, savings and money market | 0 | 0 | ' |
Time | 0 | 0 | ' |
Subordinated debt | 17,835 | 20,187 | ' |
Accrued interest payable | $0 | $0 | ' |
Stock_Based_Compensation_Assum
Stock Based Compensation, Assumptions (Details) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Shares of common stock available for grant under Plan ( in shares) | 1.5 | ' | ' | |||
Share-based payment award, fair value assumptions [Abstract] | ' | ' | ' | |||
Fair value assumptions, method used | 'Black-Scholes option pricing model | ' | ' | |||
Dividend yield (in hundredths) | 0.00% | [1] | 0.00% | [1] | 0.00% | [1] |
Minimum expected volatility (in hundredths) | 54.88% | [2] | 53.12% | [2] | 43.33% | [2] |
Maximum expected volatility (in hundredths) | 55.61% | [2] | 54.49% | [2] | 49.11% | [2] |
Minimum risk-free interest rate (in hundredths) | 1.28% | [3] | 1.01% | [3] | 1.38% | [3] |
Maximum risk-free interest rate (in hundredths) | 2.03% | [3] | 1.61% | [3] | 2.84% | [3] |
Expected life | '7 years | [4] | '7 years | [4] | '7 years | [4] |
Award vesting period minimum | '1 year | ' | ' | |||
Award vesting period maximum | '4 years | ' | ' | |||
Share based compensation arrangement by share based payment award fair value assumptions maximum term | '10 years | ' | ' | |||
Maximum vesting period to review of historical behavior | '10 years | ' | ' | |||
Minimum [Member] | ' | ' | ' | |||
Share-based payment award, fair value assumptions [Abstract] | ' | ' | ' | |||
Vesting period | '3 years | ' | ' | |||
Maximum [Member] | ' | ' | ' | |||
Share-based payment award, fair value assumptions [Abstract] | ' | ' | ' | |||
Vesting period | '4 years | ' | ' | |||
[1] | A dividend yield of 0.0% is utilized because cash dividends have never been paid. | |||||
[2] | Expected volatility is based on Bloombergbs seven year volatility calculation for bFRBKb stock. | |||||
[3] | The risk-free interest rate is based on the seven year Treasury bond. | |||||
[4] | The expected life reflects a 3 to 4 year ball or nothingb vesting period, the maximum ten year term and review of historicalB behavior. |
Stock_Based_Compensation_Summa
Stock Based Compensation, Summary of Stock Based Compensation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Stock Based Compensation [Abstract] | ' | ' | ' | ' |
Vested (in shares) | 127,287 | 146,000 | 53,500 | ' |
Outstanding options (in shares) | 1,215,530 | 964,530 | 839,417 | 663,500 |
Intrinsic value of outstanding shares | $421,510 | ' | ' | ' |
Exercisable options (in shares) | 306,217 | 253,930 | 227,067 | ' |
Exercisable options, intrinsic value | 43,195 | ' | ' | ' |
Shares forfeited (in shares) | 96,250 | 171,637 | 87,933 | ' |
Weighted average grant date fair value | 306,483 | ' | ' | ' |
Stock based compensation expense recognized | 325,000 | 370,000 | 359,000 | ' |
Number of unvested stock options (in shares) | 909,313 | 710,600 | 612,350 | ' |
Fair value of unvested stock options | 1,245,679 | 1,091,948 | 1,337,780 | ' |
Amount remaining to be recognized as expense | $545,862 | $467,314 | $554,763 | ' |
Stock_Based_Compensation_Summa1
Stock Based Compensation, Summary of Stock Option Activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options, outstanding [Roll Forward] | ' | ' | ' |
Outstanding, beginning of year (in shares) | 964,530 | 839,417 | 663,500 |
Shares granted (in shares) | 347,250 | 296,750 | 263,850 |
Shares exercised (in shares) | 0 | 0 | 0 |
Shares forfeited (in shares) | -96,250 | -171,637 | -87,933 |
Outstanding, end of year (in shares) | 1,215,530 | 964,530 | 839,417 |
Options exercisable at year-end (in shares) | 306,217 | 253,930 | 227,067 |
Options outstanding, weighted average exercise price [Abstract] | ' | ' | ' |
Shares outstanding, weighted average exercise price, Beginning Balance (in dollars per share) | $4.38 | $6.04 | $7.32 |
Shares granted, weighted average exercise price (in dollars per share) | $2.72 | $1.95 | $3.12 |
Shares exercised, weighted average exercise price (in dollars per share) | $0 | $0 | $0 |
Shares forfeited, weighted average exercise price (in dollars per share) | $7.39 | $8.32 | $5.73 |
Shares outstanding, weighted average exercise price, Ending Balance (in dollars per share) | $3.66 | $4.38 | $6.04 |
Shares exercisable at year end, weighted average exercise price (in dollars per share) | $6.24 | $7.92 | $9 |
Weighted average fair value of options granted during the year (in dollars per share) | $1.51 | $1.05 | $1.61 |
Stock_Based_Compensation_Summa2
Stock Based Compensation, Summary of Options Outstanding (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based compensation shares authorized, exercise price range [Line Items] | ' |
Number of option Outstanding (in shares) | 1,215,530 |
Options Outstanding Weighted-Average Exercise Price (in dollars per share) | $3.66 |
Options Exercisable (in shares) | 306,217 |
Options Exercisable Weighted-Average Exercise Price (in dollars per share) | $6.24 |
Range of Exercise Prices $1.39 to $2.95 [Member] | ' |
Share-based compensation shares authorized, exercise price range [Line Items] | ' |
Lower range limit (in dollars per share) | $1.39 |
Upper range limit (in dollars per share) | $2.95 |
Number of option Outstanding (in shares) | 651,500 |
Weighted-Average Remaining Contractual Life | '8 years 8 months 12 days |
Options Outstanding Weighted-Average Exercise Price (in dollars per share) | $2.33 |
Options Exercisable (in shares) | 41,937 |
Options Exercisable Weighted-Average Exercise Price (in dollars per share) | $1.95 |
Range of Exercise Prices $3.14 to $5.12 [Member] | ' |
Share-based compensation shares authorized, exercise price range [Line Items] | ' |
Lower range limit (in dollars per share) | $3.14 |
Upper range limit (in dollars per share) | $5.12 |
Number of option Outstanding (in shares) | 311,750 |
Weighted-Average Remaining Contractual Life | '6 years 9 months 18 days |
Options Outstanding Weighted-Average Exercise Price (in dollars per share) | $3.72 |
Options Exercisable (in shares) | 12,000 |
Options Exercisable Weighted-Average Exercise Price (in dollars per share) | $4.50 |
Range of Exercise Prices $5.70 to $8.00 [Member] | ' |
Share-based compensation shares authorized, exercise price range [Line Items] | ' |
Lower range limit (in dollars per share) | $5.70 |
Upper range limit (in dollars per share) | $8 |
Number of option Outstanding (in shares) | 228,507 |
Weighted-Average Remaining Contractual Life | '3 years 8 months 12 days |
Options Outstanding Weighted-Average Exercise Price (in dollars per share) | $6.58 |
Options Exercisable (in shares) | 228,507 |
Options Exercisable Weighted-Average Exercise Price (in dollars per share) | $6.58 |
Range of Exercise Prices $9.93 to $12.13 [Member] | ' |
Share-based compensation shares authorized, exercise price range [Line Items] | ' |
Lower range limit (in dollars per share) | $9.93 |
Upper range limit (in dollars per share) | $12.13 |
Number of option Outstanding (in shares) | 23,773 |
Weighted-Average Remaining Contractual Life | '2 years 3 months 18 days |
Options Outstanding Weighted-Average Exercise Price (in dollars per share) | $11.36 |
Options Exercisable (in shares) | 23,773 |
Options Exercisable Weighted-Average Exercise Price (in dollars per share) | $11.36 |
Stock_Based_Compensation_Rollf
Stock Based Compensation, Roll-forward of Nonvested Options (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Nonvested, Number of options [Roll Forward] | ' | ' | ' |
Nonvested, beginning of year (in shares) | 710,600 | 612,350 | ' |
Granted (in shares) | 347,250 | 296,750 | 263,850 |
Vested (in shares) | -127,287 | ' | ' |
Forfeited (in shares) | -21,250 | ' | ' |
Nonvested, end of year (in shares) | 909,313 | 710,600 | 612,350 |
Nonvested, weighted average grant date fair value [Abstract] | ' | ' | ' |
Shares outstanding, Weighted-Average Grant Date Fair Value, beginning of year (in dollars per share) | $1.54 | ' | ' |
Shares Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $1.51 | $1.05 | $1.61 |
Shares Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $1.63 | ' | ' |
Shares Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $1.40 | ' | ' |
Shares outstanding, Weighted-Average Grant Date Fair Value, ending of year (in dollars per share) | $1.37 | $1.54 | ' |
Segment_Reporting_Details
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 1 |
Transactions_with_Affiliates_a1
Transactions with Affiliates and Related Parties (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Amount of transaction | $412,000 | $346,000 | $333,000 |
Vernon W. Hill [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Major shareholder ownership (in hundredths) | 9.90% | ' | ' |
Vernon W. Hill [Member] | Consulting Arrangement [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Amount of transaction | 250,000 | ' | ' |
InterArch [Member] | Purchase of Marketing and Graphic Design Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Amount of transaction | 127,000 | 95,000 | 83,000 |
First Bank of Delaware [Member] | Sale of Commercial Loans [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Outstanding balance of commercial loans participated to First Bank of Delaware ("FBD") | 2,700,000 | 3,300,000 | ' |
First Bank of Delaware [Member] | Purchase of Commercial Loans [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Outstanding balance of commercial loans purchased from FBD | 0 | 0 | ' |
Brian Communications [Member] | Public Relations Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Amount of transaction | $35,000 | ' | ' |
Parent_Company_Financial_Infor2
Parent Company Financial Information, Schedule of Condensed Statements of Financial Condition (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
ASSETS [Abstract] | ' | ' | ' | ' |
Other assets | $17,468 | $14,565 | ' | ' |
Total Assets | 961,665 | 988,658 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Accrued expenses | 6,519 | 6,778 | ' | ' |
Total Liabilities | 898,766 | 918,756 | ' | ' |
Shareholders' Equity [Abstract] | ' | ' | ' | ' |
Total Shareholders' Equity | 62,899 | 69,902 | 64,851 | 88,146 |
Total Liabilities and Shareholders' Equity | 961,665 | 988,658 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
ASSETS [Abstract] | ' | ' | ' | ' |
Cash | 697 | 736 | ' | ' |
Corporation-obligated mandatorily redeemable capital securities of subsidiary trust holding junior obligations of the corporation | 676 | 676 | ' | ' |
Investment in subsidiaries | 80,666 | 88,945 | ' | ' |
Other assets | 3,354 | 2,848 | ' | ' |
Total Assets | 85,393 | 93,205 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Accrued expenses | 18 | 827 | ' | ' |
Corporation-obligated mandatorily redeemable securities of subsidiary trust holding solely junior subordinated debentures of the corporation | 22,476 | 22,476 | ' | ' |
Total Liabilities | 22,494 | 23,303 | ' | ' |
Shareholders' Equity [Abstract] | ' | ' | ' | ' |
Total Shareholders' Equity | 62,899 | 69,902 | 64,851 | 88,146 |
Total Liabilities and Shareholders' Equity | $85,393 | $93,205 | ' | ' |
Parent_Company_Financial_Infor3
Parent Company Financial Information, Schedule of Operations and Changes in Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $8,438 | $8,226 | $8,098 | $7,853 | $8,017 | $8,176 | $8,025 | $7,676 | $32,615 | $31,894 | $30,074 |
Noninterest Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before provision (benefit) for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -3,515 | 3,470 | -16,511 |
Benefit for income taxes | 33 | -18 | -24 | -26 | -54 | -28 | 7 | -69 | -35 | -144 | 8,191 |
Net income (loss) | -3,261 | -2,222 | 1,011 | 992 | 904 | 398 | 1,007 | 1,305 | -3,480 | 3,614 | -24,702 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -7,328 | 4,681 | -23,654 |
Consolidated Statements of Changes in Shareholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders' equity, beginning of year | ' | ' | ' | 69,902 | ' | ' | ' | 64,851 | 69,902 | 64,851 | 88,146 |
Net income (loss) | -3,261 | -2,222 | 1,011 | 992 | 904 | 398 | 1,007 | 1,305 | -3,480 | 3,614 | -24,702 |
Shareholders' equity, end of year | 62,899 | ' | ' | ' | 69,902 | ' | ' | ' | 62,899 | 69,902 | 64,851 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 33 | 34 | 33 |
Dividend income from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 1,859 | 0 | 212 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 1,892 | 34 | 245 |
Noninterest Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,112 | 1,134 | 1,117 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 318 | 317 | 288 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,430 | 1,451 | 1,405 |
Income (loss) before provision (benefit) for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 462 | -1,417 | -1,160 |
Benefit for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -489 | -496 | -406 |
Income (loss) before undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 951 | -921 | -754 |
Equity in undistributed income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -4,431 | 4,535 | -23,948 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3,480 | 3,614 | -24,702 |
Total other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3,848 | 1,067 | 1,048 |
Total comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -7,328 | 4,681 | -23,654 |
Consolidated Statements of Changes in Shareholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders' equity, beginning of year | ' | ' | ' | 69,902 | ' | ' | ' | 64,851 | 69,902 | 64,851 | 88,146 |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 325 | 370 | 359 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3,480 | 3,614 | -24,702 |
Total other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3,848 | 1,067 | 1,048 |
Shareholders' equity, end of year | $62,899 | ' | ' | ' | $69,902 | ' | ' | ' | $62,899 | $69,902 | $64,851 |
Parent_Company_Financial_Infor4
Parent Company Financial Information, Schedule of Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities [Abstract] | ' | ' | ' |
Net income (loss) | ($3,480) | $3,614 | ($24,702) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Share-based Compensation | 325 | 370 | 359 |
(Decrease) increase in other liabilities | -323 | -336 | -330 |
Net cash provided by operating activities | 560 | 7,204 | 7,914 |
Cash flows from investing activities [Abstract] | ' | ' | ' |
Net cash used in investing activities | -73,017 | -46,745 | -7,705 |
Decrease in cash | 92,124 | 102,951 | -195,090 |
Cash and cash equivalents, beginning of year | 128,004 | 230,955 | 35,865 |
Cash and cash equivalents, end of year | 35,880 | 128,004 | 230,955 |
Parent Company [Member] | ' | ' | ' |
Cash flows from operating activities [Abstract] | ' | ' | ' |
Net income (loss) | -3,480 | 3,614 | -24,702 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Share-based Compensation | 325 | 370 | 359 |
Increase in other assets | -506 | -542 | -486 |
(Decrease) increase in other liabilities | -809 | -226 | 223 |
Equity in undistributed (income) losses of subsidiaries | 4,431 | -4,535 | 23,948 |
Net cash provided by operating activities | -39 | -1,319 | -658 |
Cash flows from investing activities [Abstract] | ' | ' | ' |
Investment in subsidiaries | 0 | 0 | -8,000 |
Net cash used in investing activities | 0 | 0 | -8,000 |
Decrease in cash | -39 | -1,319 | -8,658 |
Cash and cash equivalents, beginning of year | 736 | 2,055 | 10,713 |
Cash and cash equivalents, end of year | $697 | $736 | $2,055 |
Quarterly_Financial_Data_unaud2
Quarterly Financial Data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Data (unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Interest income | $9,544 | $9,339 | $9,215 | $9,107 | $9,423 | $9,612 | $9,649 | $9,576 | $37,205 | $38,260 | $38,273 | ||||||||
Interest expense | 1,106 | 1,113 | 1,117 | 1,254 | 1,406 | 1,436 | 1,624 | 1,900 | 4,590 | 6,366 | 8,199 | ||||||||
Net interest income | 8,438 | 8,226 | 8,098 | 7,853 | 8,017 | 8,176 | 8,025 | 7,676 | 32,615 | 31,894 | 30,074 | ||||||||
Provision (credit) for loan losses | 3,760 | 250 | 925 | 0 | 750 | 850 | 500 | -750 | 4,935 | 1,350 | 15,966 | ||||||||
Non-interest income | 2,211 | 1,892 | 2,870 | 2,243 | 2,852 | 1,831 | 2,499 | 1,646 | 9,216 | 8,828 | 10,581 | ||||||||
Non-interest expense | 10,117 | 12,108 | 9,056 | 9,130 | 9,269 | 8,787 | 9,010 | 8,836 | 40,411 | 35,902 | 41,200 | ||||||||
Provision (benefit) for income taxes | 33 | -18 | -24 | -26 | -54 | -28 | 7 | -69 | -35 | -144 | 8,191 | ||||||||
Net income (loss) | ($3,261) | ($2,222) | $1,011 | $992 | $904 | $398 | $1,007 | $1,305 | ($3,480) | $3,614 | ($24,702) | ||||||||
Net income (loss) per share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in dollars per share) | ($0.13) | [1] | ($0.09) | [1] | $0.04 | [1] | $0.04 | [1] | $0.03 | [1] | $0.02 | [1] | $0.04 | [1] | $0.05 | [1] | ($0.13) | $0.14 | ($0.95) |
Diluted (in dollars per share) | ($0.13) | [1] | ($0.09) | [1] | $0.04 | [1] | $0.04 | [1] | $0.03 | [1] | $0.02 | [1] | $0.04 | [1] | $0.05 | [1] | ($0.13) | $0.14 | ($0.95) |
[1] | Quarterly net income (loss) per share does not add to full year net income (loss) per share due to rounding. |