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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Royal Bancshares of Pennsylvania, Inc. | NASDAQ:RBPAA | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 4.52 | 3.24 | 4.75 | 0 | 01:00:00 |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Pennsylvania
|
|
23-2812193
|
(State of other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
732 Montgomery Avenue, Narberth, Pennsylvania
|
|
19072
|
(Address of principal executive offices)
|
|
(Zip Code)
|
(610) 668-4700
|
(Issuer’s telephone number, including area code)
|
|
(Former name, former address and former year, if changed since last report)
|
Name of Each Exchange on Which Registered
|
|
Title of Each Class
|
|
|
|
The NASDAQ Stock Market, LLC
|
|
Class A Common Stock ($2.00 par value)
|
Name of Each Exchange on Which Registered
|
Title of Each Class
|
|
None
|
Class B Common Stock ($0.10 par value)
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Small reporting company
x
|
· | Well capitalized—equals or exceeds a 10% total risk-based capital ratio, 6% tier 1 risk-based capital ratio, and 5% leverage ratio and is not subject to any written agreement, order or directive requiring it to maintain a specific level for any capital measure; |
· | Adequately capitalized—equals or exceeds an 8 % total risk-based capital ratio, 4% tier 1 risk-based capital ratio, and 4% leverage ratio; |
· | Undercapitalized—total risk-based capital ratio of less than 8%, or a tier 1 risk-based ratio of less than 4%, or a leverage ratio of less than 4% (3% for institutions with a regulatory rating of 1 that do not evidence rapid growth or other heightened risk indicators); |
· | Significantly undercapitalized—total risk-based capital ratio of less than 6%, or a tier 1 risk-based capital ratio of less than 3%, or a leverage ratio of less than 3%; and |
· | Critically undercapitalized—a ratio of tangible equity to total assets equal to or less than 2%. |
|
|
Basel III Community Banks
|
||||||||
|
|
Minimum Capital Ratio Requirments
|
||||||||
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital (CET1)
|
|
4.500%
|
|
5.125%
|
|
5.750%
|
|
6.375%
|
|
7.000%
|
Tier I capital (to risk-weighted assets)
|
|
6.000%
|
|
6.625%
|
|
7.250%
|
|
7.875%
|
|
8.500%
|
Total capital (to risk-weighted assets)
|
|
8.000%
|
|
8.625%
|
|
9.250%
|
|
9.875%
|
|
10.500%
|
Tier I capital (to average assets, leverage)
|
|
4.000%
|
|
4.000%
|
|
4.000%
|
|
4.000%
|
|
6.500%
|
· | create the Financial Services Oversight Council to identify emerging systemic risks and improve interagency cooperation; |
· | centralize the responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, which will be responsible for implementing, examining and enforcing compliance with federal consumer financial laws; |
· | permanently raise the current standard maximum deposit insurance amount to $250,000; |
|
· | establish strengthened capital standards for banks, and disallowing trust preferred securities as qualifying as Tier 1 capital (subject to certain exceptions and grandfather provisions for existing trust preferred securities); |
· | amend the Truth in Lending Act with respect to mortgage originations and establishing new minimum mortgage underwriting standards; |
· | strengthen the SEC’s powers to regulate securities markets; |
· | grant the Federal Reserve Board the power to regulate debit card interchange fees; |
· | allow the FDIC to raise the ratio of reserves to deposits from 1.15% to 1.35% for deposit insurance purposes by September 30, 2020 and to offset the effect of increased assessments on insured depository institutions with assets of less than $10 billion; |
· | allow financial institutions to pay interest on business checking accounts; and |
· | implement provisions that affect corporate governance and executive compensation at all publicly traded companies. |
· | Limits on compensation incentives for risks by senior executive officers; |
· | A requirement for recovery of any compensation paid based on inaccurate financial information; |
· | A prohibition on “golden parachute payments” to specified officers or employees, which term is generally defined as any payment for departure from a company for any reason; |
· | A prohibition on compensation plans that would encourage manipulation of reported earnings to enhance the compensation of employees; |
· | A prohibition on bonus, retention award, or incentive compensation to designated employees, except in the form of long-term restricted stock; |
|
· | A requirement that the board of directors adopt a luxury expenditures policy; |
· | A requirement that shareholders be permitted a separate nonbinding vote on executive compensation; |
· | A requirement that the chief executive officer and the chief financial officer provide a written certification of compliance with the standards, when established, to the SEC. |
· | To an amount equal to 10% of Royal Bank’s capital and surplus, in the case of covered transactions with any one affiliate; and |
· | To an amount equal to 20% of Royal Bank’s capital and surplus, in the case of covered transactions with all affiliates. |
· | A loan or extension of credit to an affiliate; |
· | A purchase of, or an investment in, securities issued by an affiliate; |
· | A purchase of assets from an affiliate, with some exceptions; |
· | The acceptance of securities issued by an affiliate as collateral for a loan or extension of credit to any party; and |
· | This issuance of a guarantee, acceptance or letter of credit on behalf of an affiliate. |
· | A bank and its subsidiaries may not purchase a low-quality asset from an affiliate; |
· | Covered transactions and other specified transactions between a bank or its subsidiaries and an affiliate must be on terms and conditions that are consistent with safe and sound banking practices; and |
· | With some exceptions, each loan or extension of credit by a bank to an affiliate must be secured by collateral with a market value ranging from 100% to 130%, depending on the type of collateral, of the amount of the loan or extension of credit. |
Loan Category
|
LTV limit
|
|||
|
|
|||
Raw land
|
65
|
%
|
||
Land development
|
65
|
%
|
||
Construction:
|
||||
Commercial, multifamily (includes condos and co-ops) and other nonresidential
|
80
|
%
|
||
Improved property
|
85
|
%
|
||
Owner occupied 1-4 family and home equity (without credit enhancements)
|
90
|
%
|
ITEM 1A.
|
RISK FACTORS
|
· | We could face increased regulation of our industry. Compliance with such regulation may increase our costs and limit our ability to pursue business opportunities. |
· | Our ability to assess the creditworthiness of customers and to accurately estimate the losses inherent in our credit portfolio could be more complex. |
· | We may be required to pay higher Federal Deposit Insurance Corporation premiums because financial institution failures resulting from the depressed market conditions have depleted and may continue to deplete the deposit insurance fund and reduce its ratio of reserves to insured deposits. |
· | Our ability to borrow from other financial institutions or the Federal Home Loan Bank on favorable terms or at all could be adversely affected by disruptions in the capital markets or other events. |
· | We may experience increases in foreclosures, delinquencies and customer bankruptcies. |
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, AND RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Title of Class
|
Number of record holders
|
|||
Class A Common stock
|
246
|
|||
Class B Common stock
|
130
|
· | Royal Bancshares of Pennsylvania, Inc. Class A common stock; |
· | The stock of all United States companies trading on the NASDAQ Global Market; |
· | Common stock of a 2013 Peer Group consisting of 21 banks headquartered in the Mid-Atlantic region, that trade on a major exchange and have total assets between $700 million and $1.5 billion; and |
· | SNL Bank and Thrift Index. |
|
Period Ending
|
|||||||||||||||||||||||
Index
|
12/31/08
|
12/31/09
|
12/31/10
|
12/31/11
|
12/31/12
|
12/31/13
|
||||||||||||||||||
Royal Bancshares of Pennsylvania, Inc.
|
100.00
|
39.04
|
42.04
|
37.54
|
36.03
|
41.44
|
||||||||||||||||||
NASDAQ Composite
|
100.00
|
145.36
|
171.74
|
170.38
|
200.63
|
281.22
|
||||||||||||||||||
SNL Bank and Thrift
|
100.00
|
98.66
|
110.14
|
85.64
|
115.00
|
157.46
|
||||||||||||||||||
RBPAA Peer Group Index*
|
100.00
|
85.31
|
94.90
|
83.17
|
99.56
|
131.72
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
Statement of Operations Data
|
For the years ended December 31,
|
|||||||||||||||||||
(In thousands, except share data)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Interest income
|
$
|
27,524
|
$
|
31,981
|
$
|
39,377
|
$
|
57,262
|
$
|
66,043
|
||||||||||
Interest expense
|
7,357
|
9,899
|
14,086
|
25,994
|
37,439
|
|||||||||||||||
Net interest income
|
20,167
|
22,082
|
25,291
|
31,268
|
28,604
|
|||||||||||||||
(Credit) Provision for loan and lease losses
|
(872
|
)
|
5,997
|
7,728
|
22,140
|
20,605
|
||||||||||||||
Net interest income after loan and lease losses
|
21,039
|
16,085
|
17,563
|
9,128
|
7,999
|
|||||||||||||||
Non-interest income
|
||||||||||||||||||||
Gain on sale of premises & equipment
|
2,524
|
-
|
-
|
-
|
-
|
|||||||||||||||
Net gains on sales of other real estate owned
|
1,427
|
363
|
1,638
|
1,019
|
294
|
|||||||||||||||
Service charges and fees
|
1,323
|
1,218
|
1,128
|
1,266
|
1,419
|
|||||||||||||||
Gains on sale of loans and leases
|
686
|
2,057
|
337
|
666
|
914
|
|||||||||||||||
Income from bank owned life insurance
|
539
|
553
|
391
|
379
|
1,099
|
|||||||||||||||
Net gains on investment securities
|
158
|
1,030
|
1,782
|
1,290
|
1,892
|
|||||||||||||||
Gains on sales related to real estate joint ventures
|
-
|
-
|
1,750
|
-
|
-
|
|||||||||||||||
Income related to real estate owned via equity investments
|
-
|
-
|
478
|
564
|
1,302
|
|||||||||||||||
Gain on sale of security claim
|
-
|
-
|
-
|
1,656
|
-
|
|||||||||||||||
Gain on sale of premises & equipment related to real estate owned via equity investments
|
-
|
-
|
-
|
667
|
1,817
|
|||||||||||||||
Other income
|
207
|
747
|
1,110
|
737
|
578
|
|||||||||||||||
Total other than-temporary-impairment losses on investment securities
|
-
|
(2,359
|
)
|
(1,796
|
)
|
(566
|
)
|
(13,431
|
)
|
|||||||||||
Portion of loss recognized in other comprehensive loss
|
-
|
-
|
-
|
87
|
2,390
|
|||||||||||||||
Net impairment losses recognized in earnings
|
-
|
(2,359
|
)
|
(1,796
|
)
|
(479
|
)
|
(11,041
|
)
|
|||||||||||
Total non-interest income (loss)
|
6,864
|
3,609
|
6,818
|
7,765
|
(1,726
|
)
|
||||||||||||||
Income before non-interest expenses & income taxes
|
27,903
|
19,694
|
24,381
|
16,893
|
6,273
|
|||||||||||||||
Non-interest expense
|
||||||||||||||||||||
Salaries and benefits
|
10,276
|
11,576
|
11,013
|
11,626
|
12,235
|
|||||||||||||||
Impairment related to OREO
|
1,517
|
6,741
|
5,522
|
7,374
|
4,537
|
|||||||||||||||
Impairment related to real estate owned via equity investments
|
-
|
-
|
-
|
2,600
|
-
|
|||||||||||||||
Expenses related to real estate owned via equity investments
|
-
|
-
|
-
|
529
|
907
|
|||||||||||||||
Impairment related to real estate joint venture
|
-
|
-
|
-
|
1,552
|
-
|
|||||||||||||||
Other expenses
|
14,537
|
18,007
|
15,534
|
17,062
|
19,977
|
|||||||||||||||
Total non-interest expense
|
26,330
|
36,324
|
32,069
|
40,743
|
37,656
|
|||||||||||||||
Income (loss) before tax expense
|
1,573
|
(16,630
|
)
|
(7,688
|
)
|
(23,850
|
)
|
(31,383
|
)
|
|||||||||||
Income tax expense
|
42
|
-
|
-
|
-
|
474
|
|||||||||||||||
Net income (loss)
|
$
|
1,531
|
$
|
(16,630
|
)
|
$
|
(7,688
|
)
|
$
|
(23,850
|
)
|
$
|
(31,857
|
)
|
||||||
Less net (loss) income attributable to noncontrolling interest
|
(578
|
)
|
(1,005
|
)
|
875
|
243
|
1,402
|
|||||||||||||
Net income (loss) attributable to Royal Bancshares
|
2,109
|
(15,625
|
)
|
(8,563
|
)
|
(24,093
|
)
|
(33,259
|
)
|
|||||||||||
Less Series A Preferred stock accumulated dividend and accretion
|
2,075
|
2,038
|
2,003
|
1,970
|
1,672
|
|||||||||||||||
Net income (loss) to common shareholders
|
34
|
(17,663
|
)
|
(10,566
|
)
|
(26,063
|
)
|
(34,931
|
)
|
|||||||||||
|
||||||||||||||||||||
Basic and diluted earnings (loss) per common share
|
$
|
-
|
$
|
(1.33
|
)
|
$
|
(0.80
|
)
|
$
|
(1.97
|
)
|
$
|
(2.64
|
)
|
Balance Sheet Data
|
For the years ended December 31,
|
|||||||||||||||||||
(In thousands)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Total assets
|
$
|
732,254
|
$
|
769,455
|
$
|
844,187
|
$
|
976,365
|
$
|
1,288,465
|
||||||||||
Total average assets (1)
|
740,324
|
819,211
|
902,241
|
1,173,661
|
1,290,865
|
|||||||||||||||
Loans, net
|
352,810
|
326,904
|
397,863
|
475,725
|
656,533
|
|||||||||||||||
Total deposits
|
528,964
|
554,917
|
575,916
|
693,913
|
881,755
|
|||||||||||||||
Total average deposits
|
527,452
|
573,233
|
621,709
|
791,026
|
857,742
|
|||||||||||||||
Total borrowings (2)
|
133,655
|
134,107
|
173,774
|
180,723
|
283,601
|
|||||||||||||||
Total average borrowings (2)
|
133,261
|
149,416
|
177,517
|
256,688
|
307,225
|
|||||||||||||||
Total shareholders' equity (3)
|
47,805
|
53,568
|
71,098
|
79,246
|
96,309
|
|||||||||||||||
Total average shareholders' equity (3)
|
50,533
|
67,794
|
76,337
|
99,048
|
102,664
|
|||||||||||||||
Return on average assets
|
0.28
|
%
|
(1.91
|
%)
|
(0.95
|
%)
|
(2.05
|
%)
|
(2.58
|
%)
|
||||||||||
Return on average equity
|
4.17
|
%
|
(23.05
|
%)
|
(11.22
|
%)
|
(24.32
|
%)
|
(32.40
|
%)
|
||||||||||
Average equity to average assets
|
6.83
|
%
|
8.28
|
%
|
7.89
|
%
|
6.76
|
%
|
7.46
|
%
|
(1)
|
Includes premises and equipment of VIE for years 2009 and 2010
|
(2)
|
Includes obligations through VIE equity investments and subordinated debt.
|
(3)
|
Excludes noncontrolling interest
|
ITEM 7. | MANAGEMENT’S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
· | Credit related expenses declined $7.4 million, or 67.8%, with non-performing assets now at 2.7% of total assets compared to 4.7% at December 31, 2012. |
· | Provision for loan and lease losses dropped $6.9 million as a result of the loan portfolio’s improved credit quality. |
· | Other-than-temporary investment impairment declined $2.4 million. |
· | Gains on the sale of Company owned real estate were $2.5 million. |
· | Salaries and benefits declined $1.3 million, or 11.2%, as a result of a 22% reduction in the workforce. |
· | Professional and legal fees decreased $1.2 million, or 29.3%. |
· | Net gains on sales of other real estate owned (“OREO”) increased $1.1 million. |
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||||||||
|
2013
|
2012
|
2011
|
|||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Yield /
Rate
|
Average
Balance
|
Interest
|
Yield /
Rate
|
Average
Balance
|
Interest
|
Yield /
Rate
|
|||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Interest earning deposits
|
$
|
10,941
|
$
|
26
|
0.24
|
%
|
$
|
22,551
|
$
|
38
|
0.17
|
%
|
$
|
29,016
|
$
|
78
|
0.27
|
%
|
||||||||||||||||||
Federal funds
|
-
|
-
|
0.00
|
%
|
-
|
-
|
0.00
|
%
|
2,822
|
3
|
0.11
|
%
|
||||||||||||||||||||||||
Investment securities-available for sale
|
312,127
|
5,757
|
1.84
|
%
|
344,862
|
6,677
|
1.94
|
%
|
320,362
|
9,645
|
3.01
|
%
|
||||||||||||||||||||||||
Loans & Leases
(1)
|
||||||||||||||||||||||||||||||||||||
Commercial demand loans
|
127,372
|
6,024
|
4.73
|
%
|
174,029
|
8,804
|
5.06
|
%
|
219,554
|
10,044
|
4.57
|
%
|
||||||||||||||||||||||||
Real estate secured
|
199,705
|
12,261
|
6.14
|
%
|
168,079
|
13,143
|
7.82
|
%
|
213,737
|
16,268
|
7.61
|
%
|
||||||||||||||||||||||||
Other loans and leases
|
40,142
|
3,456
|
8.61
|
%
|
42,332
|
3,319
|
7.84
|
%
|
41,756
|
3,339
|
8.00
|
%
|
||||||||||||||||||||||||
Total loans
|
367,219
|
21,741
|
5.92
|
%
|
384,440
|
25,266
|
6.57
|
%
|
475,047
|
29,651
|
6.24
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
690,287
|
27,524
|
3.99
|
%
|
751,853
|
31,981
|
4.25
|
%
|
827,247
|
39,377
|
4.76
|
%
|
||||||||||||||||||||||||
Non interest-earning assets
|
||||||||||||||||||||||||||||||||||||
Cash & due from banks
|
8,768
|
9,632
|
11,725
|
|||||||||||||||||||||||||||||||||
Other assets
|
56,648
|
74,592
|
83,468
|
|||||||||||||||||||||||||||||||||
Allowance for loan loss
|
(15,379
|
)
|
(16,308
|
)
|
(19,567
|
)
|
||||||||||||||||||||||||||||||
Unearned discount
(2)
|
-
|
(558
|
)
|
(632
|
)
|
|||||||||||||||||||||||||||||||
Total non interest-earning assets
|
50,037
|
67,358
|
74,994
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
740,324
|
$
|
819,211
|
$
|
902,241
|
||||||||||||||||||||||||||||||
Liabilities & Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||||||||||||||
Savings
|
$
|
17,802
|
38
|
0.21
|
%
|
$
|
17,006
|
67
|
0.39
|
%
|
$
|
15,727
|
86
|
0.55
|
%
|
|||||||||||||||||||||
NOW and money markets
|
210,077
|
617
|
0.29
|
%
|
224,602
|
1,317
|
0.59
|
%
|
221,158
|
1,958
|
0.89
|
%
|
||||||||||||||||||||||||
Time deposits
|
239,584
|
3,367
|
1.41
|
%
|
275,959
|
4,514
|
1.64
|
%
|
327,583
|
6,906
|
2.11
|
%
|
||||||||||||||||||||||||
Total interest-bearing deposits
|
467,463
|
4,022
|
0.86
|
%
|
517,567
|
5,898
|
1.14
|
%
|
564,468
|
8,950
|
1.59
|
%
|
||||||||||||||||||||||||
Borrowings
|
107,487
|
2,526
|
2.35
|
%
|
123,642
|
3,318
|
2.68
|
%
|
151,743
|
4,493
|
2.96
|
%
|
||||||||||||||||||||||||
Subordinated debt
|
25,774
|
809
|
3.14
|
%
|
25,774
|
683
|
2.65
|
%
|
25,774
|
643
|
2.49
|
%
|
||||||||||||||||||||||||
Total interest bearing liabilities
|
600,724
|
7,357
|
1.22
|
%
|
666,983
|
9,899
|
1.48
|
%
|
741,985
|
14,086
|
1.90
|
%
|
||||||||||||||||||||||||
Non interest-bearing deposits
|
59,989
|
55,666
|
57,241
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
29,078
|
28,768
|
26,678
|
|||||||||||||||||||||||||||||||||
Total liabilities
|
689,791
|
751,417
|
825,904
|
|||||||||||||||||||||||||||||||||
Shareholders' equity
|
50,533
|
67,794
|
76,337
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
740,324
|
$
|
819,211
|
$
|
902,241
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
20,167
|
$
|
22,082
|
$
|
25,291
|
||||||||||||||||||||||||||||||
Net interest margin
|
2.92
|
%
|
2.94
|
%
|
3.06
|
%
|
(1) | Non-accrual loans have been included in the appropriate average loan balance category, but interest on these loans has not been included. |
(2)
|
For the 2013 period net deferred fees were allocated among the various loan types.
|
|
2013 versus 2012
|
2012 versus 2011
|
||||||||||||||||||||||
|
Changes due to:
|
Changes due to:
|
||||||||||||||||||||||
(In thousands)
|
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
||||||||||||||||||
Interest income
|
|
|
|
|
|
|
||||||||||||||||||
Short term earning assets
|
|
|
|
|
|
|
||||||||||||||||||
Interest bearing deposits in banks
|
$
|
(27
|
)
|
$
|
16
|
$
|
(11
|
)
|
$
|
(11
|
)
|
$
|
(29
|
)
|
$
|
(40
|
)
|
|||||||
Federal funds sold
|
-
|
-
|
-
|
-
|
(3
|
)
|
(3
|
)
|
||||||||||||||||
Total short term earning assets
|
(27
|
)
|
16
|
(11
|
)
|
(11
|
)
|
(32
|
)
|
(43
|
)
|
|||||||||||||
|
||||||||||||||||||||||||
Total Investments securities
|
(575
|
)
|
(345
|
)
|
(920
|
)
|
812
|
(3,780
|
)
|
(2,968
|
)
|
|||||||||||||
Loans
|
||||||||||||||||||||||||
Commercial demand loans
|
(2,193
|
)
|
(218
|
)
|
(2,411
|
)
|
(2,075
|
)
|
1,539
|
(536
|
)
|
|||||||||||||
Commercial real estate
|
2,160
|
(709
|
)
|
1,451
|
(1,251
|
)
|
113
|
(1,138
|
)
|
|||||||||||||||
Residential and home equity loans
|
378
|
(16
|
)
|
362
|
(23
|
)
|
(23
|
)
|
(46
|
)
|
||||||||||||||
Leases
|
(14
|
)
|
348
|
334
|
55
|
(135
|
)
|
(80
|
)
|
|||||||||||||||
Tax certificates
|
(1,989
|
)
|
(525
|
)
|
(2,514
|
)
|
(3,251
|
)
|
891
|
(2,360
|
)
|
|||||||||||||
Other loans
|
(86
|
)
|
(23
|
)
|
(109
|
)
|
(8
|
)
|
(19
|
)
|
(27
|
)
|
||||||||||||
Loan fees
|
(639
|
)
|
-
|
(639
|
)
|
(198
|
)
|
-
|
(198
|
)
|
||||||||||||||
Total loans
|
(2,383
|
)
|
(1,143
|
)
|
(3,526
|
)
|
(6,751
|
)
|
2,366
|
(4,385
|
)
|
|||||||||||||
|
||||||||||||||||||||||||
Total decrease in interest income
|
$
|
(2,985
|
)
|
$
|
(1,472
|
)
|
$
|
(4,457
|
)
|
$
|
(5,950
|
)
|
$
|
(1,446
|
)
|
$
|
(7,396
|
)
|
||||||
Interest expense
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
NOW and money market
|
$
|
(81
|
)
|
$
|
(620
|
)
|
$
|
(701
|
)
|
$
|
30
|
$
|
(670
|
)
|
$
|
(640
|
)
|
|||||||
Savings
|
3
|
(32
|
)
|
(29
|
)
|
6
|
(25
|
)
|
(19
|
)
|
||||||||||||||
Time deposits
|
(556
|
)
|
(590
|
)
|
(1,146
|
)
|
(989
|
)
|
(1,404
|
)
|
(2,393
|
)
|
||||||||||||
Total deposits
|
(634
|
)
|
(1,242
|
)
|
(1,876
|
)
|
(953
|
)
|
(2,099
|
)
|
(3,052
|
)
|
||||||||||||
Borrowings
|
||||||||||||||||||||||||
Borrowings
|
(406
|
)
|
(386
|
)
|
(792
|
)
|
(780
|
)
|
(395
|
)
|
(1,175
|
)
|
||||||||||||
Trust preferred
|
-
|
126
|
126
|
-
|
40
|
40
|
||||||||||||||||||
Total Borrowings
|
(406
|
)
|
(260
|
)
|
(666
|
)
|
(780
|
)
|
(355
|
)
|
(1,135
|
)
|
||||||||||||
Total decrease in interest expense
|
(1,040
|
)
|
(1,502
|
)
|
(2,542
|
)
|
(1,733
|
)
|
(2,454
|
)
|
(4,187
|
)
|
||||||||||||
Total (decrease) increase in net interest income
|
$
|
(1,945
|
)
|
$
|
30
|
$
|
(1,915
|
)
|
$
|
(4,217
|
)
|
$
|
1,008
|
$
|
(3,209
|
)
|
§ | Community Bank segment: At December 31, 2013, the Community Bank segment had total assets of $706.0 million, a decrease of $26.1 million, or 3.6%, from $732.1 million at December 31, 2012. Total deposits declined $25.9 million, or 4.7%, from $554.9 million at December 31, 2012 to $529.0 million at December 31, 2013. Net interest income for 2013 was $19.2 million compared to $19.8 million for 2012 representing a decrease of $556,000, or 2.8%. The decline in net interest income was primarily attributed to a reduction in average loan balances and investment securities coupled with lower yields on loans and investment securities. Mitigating the decline in net interest income was the re-pricing of time deposits at a lower rate as they matured and the payoff of a higher interest-bearing FHLB advance. The credit to the allowance for loan and lease losses was $1.5 million in 2013 compared to a provision of $5.2 million for 2012 as a result of the improved credit quality of the loan portfolio. For 2013, total non-interest income was $5.5 million compared to total non-interest income of $2.9 million for 2012. The growth is mostly attributed to $2.5 million in gains on the sale of Company owned real estate and a $2.4 million decline in OTTI on the investment portfolio. For 2013 and 2012, total non-interest expense was $21.9 million and $31.1 million, respectively. Credit related expenses, salaries and benefits, and professional and legal fees declined $7.4 million, $1.0 million, and $1.1 million, respectively. Net income for 2013 was $3.7 million compared to a net loss of $15.8 million for 2012. |
§ | Tax Lien segment: At December 31, 2013, the Tax Lien segment had total assets of $26.2 million compared to $37.3 million at December 31, 2012 representing a decrease of $11.1 million, or 29.7%. Net interest income decreased $1.3 million, or 58.4%, from $2.3 million in 2012 to $969,000 in 2013. The provision for lien losses decreased $233,000 from $820,000 in 2012 to $587,000 in 2013. The improvement in the 2013 provision was mostly related to the declining portfolio balance. Total non-interest income was $1.4 million in 2013 compared to $741,000 in 2012. Total non-interest income is derived mostly from the gains on sale of OREO property. Total non-interest expense decreased $835,000 from $5.2 million for 2012 to $4.4 million for 2013. In 2013 the Tax Lien segment recorded a $1.65 million loss contingency accrual for a settlement of a class action law suit. In 2012 the Tax Lien segment recorded a $2.0 million DOJ fine related to its investigation. Salaries and benefits declined $278,000 due to the outsourcing of the portfolio management to an unrelated third party in 2013. Additionally, professional and legal fees and credit related expenses decreased $148,000 and $31,000, respectively. Net loss was $1.6 million in 2013 compared to $1.8 million for 2012. |
|
For the years ended December 31,
|
|||||||||||||||||||
(Dollars in thousands)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Total Loans
|
$
|
366,481
|
$
|
344,165
|
$
|
414,243
|
$
|
496,854
|
$
|
686,864
|
||||||||||
Daily average loan balance
|
$
|
367,219
|
$
|
384,440
|
$
|
475,047
|
$
|
643,450
|
$
|
715,521
|
||||||||||
Allowance for loan and lease losses:
|
||||||||||||||||||||
Balance at the beginning of the year
|
$
|
17,261
|
$
|
16,380
|
$
|
21,129
|
$
|
30,331
|
$
|
28,908
|
||||||||||
Charge-offs by loan type:
|
||||||||||||||||||||
Commercial real estate
|
1,684
|
1,313
|
1,685
|
7,352
|
7,404
|
|||||||||||||||
Commercial real estate-mezzanine
|
-
|
-
|
-
|
-
|
1,132
|
|||||||||||||||
Construction and land development
|
820
|
2,452
|
5,755
|
13,413
|
6,231
|
|||||||||||||||
Construction and land develop-mezzanine
|
-
|
-
|
-
|
-
|
2,756
|
|||||||||||||||
Commercial and industrial
|
383
|
586
|
2,901
|
5,930
|
258
|
|||||||||||||||
Multi-family
|
-
|
542
|
328
|
787
|
-
|
|||||||||||||||
Residential real estate
|
46
|
111
|
635
|
731
|
1,361
|
|||||||||||||||
Residential real estate-mezzanine
|
-
|
-
|
-
|
2,480
|
-
|
|||||||||||||||
Leases
|
382
|
465
|
868
|
972
|
676
|
|||||||||||||||
Tax certificates
|
578
|
802
|
1,039
|
49
|
-
|
|||||||||||||||
Total charge-offs
|
3,893
|
6,271
|
13,211
|
31,714
|
19,818
|
|||||||||||||||
Recoveries by loan type:
|
||||||||||||||||||||
Commercial real estate
|
600
|
3
|
357
|
684
|
431
|
|||||||||||||||
Construction and land development
|
297
|
816
|
196
|
116
|
-
|
|||||||||||||||
Commercial and industrial
|
17
|
67
|
22
|
81
|
15
|
|||||||||||||||
Multi-family
|
-
|
-
|
-
|
18
|
-
|
|||||||||||||||
Residential real estate
|
158
|
208
|
153
|
313
|
190
|
|||||||||||||||
Leases
|
29
|
32
|
6
|
51
|
-
|
|||||||||||||||
Tax certificates
|
74
|
29
|
-
|
-
|
-
|
|||||||||||||||
Consumer
|
-
|
-
|
-
|
37
|
-
|
|||||||||||||||
Total recoveries
|
1,175
|
1,155
|
734
|
1,300
|
636
|
|||||||||||||||
Net loan charge-offs
|
(2,718
|
)
|
(5,116
|
)
|
(12,477
|
)
|
(30,414
|
)
|
(19,182
|
)
|
||||||||||
(Credit) provision for loan and lease losses
|
(872
|
)
|
5,997
|
7,728
|
22,140
|
20,605
|
||||||||||||||
Allowance related to disposed assets
|
-
|
-
|
-
|
(928
|
)
|
-
|
||||||||||||||
Balance at end of year
|
$
|
13,671
|
$
|
17,261
|
$
|
16,380
|
$
|
21,129
|
$
|
30,331
|
||||||||||
Net charge-offs to average loans
|
(0.74
|
%)
|
(1.33
|
%)
|
(2.63
|
%)
|
(4.73
|
%)
|
(2.68
|
%)
|
||||||||||
Allowance to total loans at year-end
|
3.73
|
%
|
5.02
|
%
|
3.95
|
%
|
4.25
|
%
|
4.42
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||||||||||||||||||
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||||||
(In thousands, except percentages)
|
Reserve
Amount
|
Percent of outstanding loans in
each
category to
total loans
|
Reserve
Amount
|
Percent of outstanding loans in
each
category to
total loans
|
Reserve
Amount
|
Percent of outstanding loans in
each
category to
total loans
|
Reserve
Amount
|
Percent of outstanding loans in
each
category to
total loans
|
Reserve
Amount
|
Percent of outstanding loans in
each
category to
total loans
|
||||||||||||||||||||||||||||||
Commercial real estate
|
$
|
5,498
|
40.5
|
%
|
$
|
8,750
|
48.5
|
%
|
$
|
7,744
|
44.0
|
%
|
$
|
9,534
|
39.0
|
%
|
$
|
9,824
|
40.3
|
%
|
||||||||||||||||||||
Construction and land development
|
2,316
|
12.3
|
%
|
2,987
|
10.8
|
%
|
2,523
|
13.0
|
%
|
3,976
|
16.0
|
%
|
7,895
|
17.3
|
%
|
|||||||||||||||||||||||||
Commercial and industrial
|
3,006
|
21.7
|
%
|
1,924
|
11.8
|
%
|
2,331
|
13.1
|
%
|
3,797
|
14.9
|
%
|
6,542
|
15.1
|
%
|
|||||||||||||||||||||||||
Multi-family
|
402
|
3.2
|
%
|
654
|
3.4
|
%
|
531
|
2.8
|
%
|
652
|
2.1
|
%
|
215
|
3.2
|
%
|
|||||||||||||||||||||||||
Residential real estate
|
473
|
7.0
|
%
|
1,098
|
7.3
|
%
|
1,188
|
6.4
|
%
|
1,106
|
5.9
|
%
|
2,762
|
7.1
|
%
|
|||||||||||||||||||||||||
Residential real estate-mezzanine
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
1,000
|
0.4
|
%
|
|||||||||||||||||||||||||
Leases
|
1,223
|
11.6
|
%
|
1,108
|
10.8
|
%
|
1,311
|
8.7
|
%
|
1,670
|
7.8
|
%
|
1,757
|
5.7
|
%
|
|||||||||||||||||||||||||
Tax certificates
|
555
|
3.5
|
%
|
472
|
7.1
|
%
|
425
|
11.8
|
%
|
380
|
14.1
|
%
|
290
|
10.6
|
%
|
|||||||||||||||||||||||||
Consumer
|
15
|
0.2
|
%
|
29
|
0.3
|
%
|
20
|
0.2
|
%
|
12
|
0.2
|
%
|
25
|
0.3
|
%
|
|||||||||||||||||||||||||
Unallocated
|
183
|
0.0
|
%
|
239
|
0.0
|
%
|
307
|
0.0
|
%
|
2
|
0.0
|
%
|
21
|
0.0
|
%
|
|||||||||||||||||||||||||
Total
|
$
|
13,671
|
100.0
|
%
|
$
|
17,261
|
100.0
|
%
|
$
|
16,380
|
100.0
|
%
|
$
|
21,129
|
100.0
|
%
|
$
|
30,331
|
100.0
|
%
|
|
As of December 31, 2013
|
|||||||||||||||||||
(In thousands)
|
Total
|
Less than
one year
|
One to
three years
|
Four to
five years
|
More than
five years
|
|||||||||||||||
FHLB borrowings
|
$
|
65,000
|
$
|
10,000
|
$
|
20,000
|
$
|
35,000
|
$
|
-
|
||||||||||
Operating leases
|
6,367
|
858
|
1,760
|
1,679
|
2,070
|
|||||||||||||||
PNC Bank
|
42,881
|
-
|
2,881
|
40,000
|
-
|
|||||||||||||||
Benefit obligations
|
10,612
|
970
|
2,002
|
2,030
|
5,610
|
|||||||||||||||
Standby letters of credit
|
2,679
|
2,679
|
-
|
-
|
-
|
|||||||||||||||
Subordinated debt
|
25,774
|
-
|
-
|
-
|
25,774
|
|||||||||||||||
Non-interest bearing deposits
|
60,473
|
60,473
|
-
|
-
|
-
|
|||||||||||||||
Interest bearing deposits
|
227,646
|
99,605
|
128,041
|
-
|
-
|
|||||||||||||||
Time deposits
|
240,845
|
117,181
|
100,945
|
8,577
|
14,142
|
|||||||||||||||
Total
|
$
|
682,277
|
$
|
291,766
|
$
|
255,629
|
$
|
87,286
|
$
|
47,596
|
|
As of December 31,
|
|||||||
|
2013
|
2012
|
||||||
|
|
|
||||||
Leverage ratio
|
9.13
|
%
|
8.00
|
%
|
||||
Tier 1 risk based capital ratio
|
14.34
|
%
|
13.94
|
%
|
||||
Total risk based capital ratio
|
15.61
|
%
|
15.22
|
%
|
|
For the years ended
December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
RAP net loss
|
$
|
(139
|
)
|
$
|
(17,974
|
)
|
||
Tax lien adjustment, net of noncontrolling interest
|
2,844
|
4,731
|
||||||
U.S. GAAP net income (loss)
|
$
|
2,705
|
$
|
(13,243
|
)
|
|
At December 31, 2013
|
At December 31, 2012
|
||||||||||||||
|
As reported
|
As adjusted
|
As reported
|
As adjusted
|
||||||||||||
|
under RAP
|
for U.S. GAAP
|
under RAP
|
for U.S. GAAP
|
||||||||||||
Total capital (to risk-weighted assets)
|
15.61
|
%
|
16.49
|
%
|
15.22
|
%
|
16.73
|
%
|
||||||||
Tier I capital (to risk-weighted assets)
|
14.34
|
%
|
15.22
|
%
|
13.94
|
%
|
15.44
|
%
|
||||||||
Tier I capital (to average assets, leverage)
|
9.13
|
%
|
9.73
|
%
|
8.00
|
%
|
8.93
|
%
|
|
As of December 31,
|
|||||||
|
2013
|
2012
|
||||||
|
|
|
||||||
Leverage ratio
|
9.79
|
%
|
9.05
|
%
|
||||
Tier 1 risk based capital ratio
|
15.31
|
%
|
15.62
|
%
|
||||
Total risk based capital ratio
|
18.09
|
%
|
18.46
|
%
|
||||
|
||||||||
Capital performance
|
||||||||
Return on average assets
|
0.28
|
%
|
(1.91
|
%)
|
||||
Return on average equity
|
4.17
|
%
|
(23.05
|
%)
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
U.S. GAAP net income (loss)
|
$
|
2,109
|
$
|
(15,625
|
)
|
|||
Tax lien adjustment, net of noncontrolling interest
|
(2,844
|
)
|
(4,731
|
)
|
||||
RAP net loss
|
$
|
(735
|
)
|
$
|
(20,356
|
)
|
|
At December 31, 2013
|
At December 31, 2012
|
||||||||||||||
|
As reported
|
As adjusted
|
As reported
|
As adjusted
|
||||||||||||
|
under US GAAP
|
for RAP
|
under US GAAP
|
for RAP
|
||||||||||||
Total capital (to risk-weighted assets)
|
18.09
|
%
|
17.24
|
%
|
18.46
|
%
|
17.01
|
%
|
||||||||
Tier I capital (to risk-weighted assets)
|
15.31
|
%
|
14.10
|
%
|
15.62
|
%
|
13.55
|
%
|
||||||||
Tier I capital (to average assets, leverage)
|
9.79
|
%
|
8.98
|
%
|
9.05
|
%
|
7.79
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||||||
Commercial real estate
|
$
|
148,293
|
40.5
|
%
|
$
|
167,115
|
48.5
|
%
|
$
|
182,579
|
44.0
|
%
|
$
|
194,203
|
39.0
|
%
|
$
|
277,234
|
40.3
|
%
|
||||||||||||||||||||
Construction and land development
|
45,261
|
12.3
|
%
|
37,215
|
10.8
|
%
|
54,120
|
13.0
|
%
|
79,638
|
16.0
|
%
|
119,074
|
17.3
|
%
|
|||||||||||||||||||||||||
Commercial and industrial
|
79,589
|
21.7
|
%
|
40,560
|
11.8
|
%
|
54,136
|
13.1
|
%
|
74,027
|
14.9
|
%
|
104,063
|
15.1
|
%
|
|||||||||||||||||||||||||
Multi-family
|
11,737
|
3.2
|
%
|
11,756
|
3.4
|
%
|
11,622
|
2.8
|
%
|
10,277
|
2.1
|
%
|
22,017
|
3.2
|
%
|
|||||||||||||||||||||||||
Residential real estate
|
25,535
|
7.0
|
%
|
24,981
|
7.3
|
%
|
26,637
|
6.4
|
%
|
29,299
|
5.9
|
%
|
48,498
|
7.1
|
%
|
|||||||||||||||||||||||||
Residential real estate-mezzanine
|
-
|
-
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
2,480
|
0.4
|
%
|
|||||||||||||||||||||||||||||
Leases
|
42,524
|
11.6
|
%
|
37,347
|
10.8
|
%
|
36,014
|
8.7
|
%
|
38,725
|
7.8
|
%
|
39,097
|
5.7
|
%
|
|||||||||||||||||||||||||
Tax certificates
|
12,716
|
3.5
|
%
|
24,569
|
7.1
|
%
|
48,809
|
11.8
|
%
|
70,443
|
14.1
|
%
|
73,106
|
10.6
|
%
|
|||||||||||||||||||||||||
Consumer
|
826
|
0.2
|
%
|
1,139
|
0.3
|
%
|
949
|
0.2
|
%
|
793
|
0.2
|
%
|
2,173
|
0.3
|
%
|
|||||||||||||||||||||||||
Total gross loans and leases
|
$
|
366,481
|
100
|
%
|
$
|
344,682
|
100
|
%
|
$
|
414,866
|
100
|
%
|
$
|
497,405
|
100
|
%
|
$
|
687,742
|
100
|
%
|
||||||||||||||||||||
Unearned income*
|
-
|
(517
|
)
|
(623
|
)
|
(551
|
)
|
(878
|
)
|
|||||||||||||||||||||||||||||||
|
$
|
366,481
|
$
|
344,165
|
$
|
414,243
|
$
|
496,854
|
$
|
686,864
|
||||||||||||||||||||||||||||||
Allowance for loan and lease losses
|
(13,671
|
)
|
(17,261
|
)
|
(16,380
|
)
|
(21,129
|
)
|
(30,331
|
)
|
||||||||||||||||||||||||||||||
Total net loans and leases
|
$
|
352,810
|
$
|
326,904
|
$
|
397,863
|
$
|
475,725
|
$
|
656,533
|
*
|
For the 2013 period net deferred fees were allocated among the various loan types.
|
· | 100% of loans with balances of $1.5 million or greater; |
· | 80% of loans with balances from $1.0 million up to $1.5 million; |
· | 25% of loans with balances from $500,000 up to $1 million; |
· | 5% of loans with balances below $500,000; and |
· | Loans requested specifically by the Company’s management |
|
As of December 31,
|
|||||||||||||||||||
(Dollars in thousands)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Non-accrual loans (1)
|
$
|
10,157
|
$
|
21,432
|
$
|
38,755
|
$
|
43,162
|
$
|
73,679
|
||||||||||
Other real estate owned
|
9,617
|
13,435
|
21,016
|
29,244
|
30,317
|
|||||||||||||||
Total non-performing assets
|
$
|
19,774
|
$
|
34,867
|
$
|
59,771
|
$
|
72,406
|
$
|
103,996
|
||||||||||
Non-performing assets to total assets
|
2.70
|
%
|
4.53
|
%
|
7.08
|
%
|
7.42
|
%
|
8.07
|
%
|
||||||||||
Non-performing loans to total loans
|
2.77
|
%
|
6.23
|
%
|
9.36
|
%
|
8.69
|
%
|
10.73
|
%
|
||||||||||
Allowance for loan loss to non-accrual loans
|
134.60
|
%
|
80.54
|
%
|
42.27
|
%
|
48.95
|
%
|
41.17
|
%
|
(1) | Generally, a loan is placed in non-accrual status when it has been delinquent for a period of 90 days or more, unless the loan is both well secured and in the process of collection. |
|
|
1st Quarter Activity
|
||||||||||||||||||||||
(In thousands)
|
Balance at
January 1, 2013
|
Additions
|
Payments
and other
decreases
|
Charge-offs/
Impairment*
|
Transfer to
OREO
|
Balance at
March 31, 2013
|
||||||||||||||||||
Non-accrual loans held for investment
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
$
|
10,345
|
$
|
-
|
$
|
(1,631
|
)
|
$
|
(835
|
)
|
$
|
-
|
$
|
7,879
|
||||||||||
Construction and land development
|
4,280
|
-
|
(418
|
)
|
(820
|
)
|
-
|
3,042
|
||||||||||||||||
Commercial & industrial
|
4,961
|
141
|
(906
|
)
|
(173
|
)
|
-
|
4,023
|
||||||||||||||||
Residential real estate
|
994
|
-
|
(462
|
)
|
-
|
(100
|
)
|
432
|
||||||||||||||||
Leases
|
251
|
-
|
(84
|
)
|
(10
|
)
|
-
|
157
|
||||||||||||||||
Tax certificates
|
601
|
1,955
|
(3
|
)
|
(147
|
)
|
(1,855
|
)
|
551
|
|||||||||||||||
Total non-accrual LHFI
|
$
|
21,432
|
$
|
2,096
|
$
|
(3,504
|
)
|
$
|
(1,985
|
)
|
$
|
(1,955
|
)
|
$
|
16,084
|
|||||||||
Non-accrual loans held for sale
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
1,572
|
$
|
-
|
$
|
-
|
$
|
(100
|
)
|
$
|
-
|
$
|
1,472
|
|||||||||||
Total non-accrual LHFS
|
$
|
1,572
|
$
|
-
|
$
|
-
|
$
|
(100
|
)
|
$
|
-
|
$
|
1,472
|
|||||||||||
Total non-accrual loans
|
$
|
23,004
|
$
|
2,096
|
$
|
(3,504
|
)
|
$
|
(2,085
|
)
|
$
|
(1,955
|
)
|
$
|
17,556
|
|
|
2nd Quarter Activity
|
||||||||||||||||||||||
(In thousands)
|
Balance at
April 1, 2013
|
Additions
|
Payments
and other
decreases
|
Charge-offs/
Impairment*
|
Transfer to
OREO
|
Balance at
June 30, 2013
|
||||||||||||||||||
Non-accrual loans held for investment
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
$
|
7,879
|
$
|
926
|
$
|
(121
|
)
|
$
|
-
|
$
|
-
|
$
|
8,684
|
|||||||||||
Construction and land development
|
3,042
|
-
|
(287
|
)
|
-
|
-
|
2,755
|
|||||||||||||||||
Commercial & industrial
|
4,023
|
44
|
(364
|
)
|
(21
|
)
|
-
|
3,682
|
||||||||||||||||
Residential real estate
|
432
|
59
|
-
|
-
|
-
|
491
|
||||||||||||||||||
Leases
|
157
|
197
|
(15
|
)
|
(99
|
)
|
-
|
240
|
||||||||||||||||
Tax certificates
|
551
|
2,362
|
(39
|
)
|
(138
|
)
|
(2,252
|
)
|
484
|
|||||||||||||||
Total non-accrual LHFI
|
$
|
16,084
|
$
|
3,588
|
$
|
(826
|
)
|
$
|
(258
|
)
|
$
|
(2,252
|
)
|
$
|
16,336
|
|||||||||
Non-accrual loans held for sale
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
1,472
|
$
|
-
|
$
|
-
|
$
|
(53
|
)
|
$
|
-
|
$
|
1,419
|
|||||||||||
Total non-accrual LHFS
|
$
|
1,472
|
$
|
-
|
$
|
-
|
$
|
(53
|
)
|
$
|
-
|
$
|
1,419
|
|||||||||||
Total non-accrual loans
|
$
|
17,556
|
$
|
3,588
|
$
|
(826
|
)
|
$
|
(311
|
)
|
$
|
(2,252
|
)
|
$
|
17,755
|
|
|
3rd Quarter Activity
|
||||||||||||||||||||||
(In thousands)
|
Balance at
July 1, 2013
|
Additions
|
Payments
and other
decreases
|
Charge-offs/
Impairment*
|
Transfer to
OREO
|
Balance at
September 30, 2013
|
||||||||||||||||||
Non-accrual loans held for investment
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
$
|
8,684
|
$
|
-
|
$
|
(2,602
|
)
|
$
|
(605
|
)
|
$
|
-
|
$
|
5,477
|
||||||||||
Construction and land development
|
2,755
|
-
|
(56
|
)
|
-
|
-
|
2,699
|
|||||||||||||||||
Commercial & industrial
|
3,682
|
275
|
(68
|
)
|
(34
|
)
|
-
|
3,855
|
||||||||||||||||
Residential real estate
|
491
|
77
|
(16
|
)
|
(32
|
)
|
-
|
520
|
||||||||||||||||
Leases
|
240
|
185
|
-
|
(40
|
)
|
-
|
385
|
|||||||||||||||||
Tax certificates
|
484
|
2,399
|
(5
|
)
|
(126
|
)
|
(2,220
|
)
|
532
|
|||||||||||||||
Total non-accrual LHFI
|
$
|
16,336
|
$
|
2,936
|
$
|
(2,747
|
)
|
$
|
(837
|
)
|
$
|
(2,220
|
)
|
$
|
13,468
|
|||||||||
Non-accrual loans held for sale
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
1,419
|
$
|
-
|
$
|
(1,419
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
Total non-accrual LHFS
|
$
|
1,419
|
$
|
-
|
$
|
(1,419
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
Total non-accrual loans
|
$
|
17,755
|
$
|
2,936
|
$
|
(4,166
|
)
|
$
|
(837
|
)
|
$
|
(2,220
|
)
|
$
|
13,468
|
|
|
4th Quarter Activity
|
||||||||||||||||||||||
(In thousands)
|
Balance at
October 1, 2013
|
Additions
|
Payments
and other
decreases
|
Charge-offs/
Impairment*
|
Transfer to
OREO
|
Balance at
December 31, 2013
|
||||||||||||||||||
Non-accrual loans held for investment
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate
|
$
|
5,477
|
$
|
1,643
|
$
|
(4,551
|
)
|
$
|
(244
|
)
|
$
|
-
|
$
|
2,325
|
||||||||||
Construction and land development
|
2,699
|
-
|
(49
|
)
|
-
|
-
|
2,650
|
|||||||||||||||||
Commercial & industrial
|
3,855
|
-
|
(71
|
)
|
(155
|
)
|
-
|
3,629
|
||||||||||||||||
Residential real estate
|
520
|
149
|
(23
|
)
|
(14
|
)
|
-
|
632
|
||||||||||||||||
Leases
|
385
|
315
|
-
|
(233
|
)
|
-
|
467
|
|||||||||||||||||
Tax certificates
|
532
|
2,726
|
(13
|
)
|
(167
|
)
|
(2,624
|
)
|
454
|
|||||||||||||||
Total non-accrual LHFI
|
$
|
13,468
|
$
|
4,833
|
$
|
(4,707
|
)
|
$
|
(813
|
)
|
$
|
(2,624
|
)
|
$
|
10,157
|
*
|
Charge-offs on LHFI were recorded in the allowance while impairment on LHFS was recorded in other expenses.
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Impaired LHFI with a valuation allowance
|
$
|
3,835
|
$
|
9,405
|
||||
Impaired LHFI without a valuation allowance
|
14,671
|
19,423
|
||||||
Impaired LHFS
|
-
|
1,572
|
||||||
Total impaired loans and leases
|
$
|
18,506
|
$
|
32,412
|
||||
Valuation allowance related to impaired LHFI
|
$
|
886
|
$
|
2,026
|
|
As of December 31, 2013
|
|||||||||||||||
(In thousands)
|
Number of
loans
|
Accrual
Status
|
Non-Accrual
Status
|
Total TDRs
|
||||||||||||
Commercial real estate
|
3
|
$
|
3,847
|
$
|
-
|
$
|
3,847
|
|||||||||
Construction and land development
|
4
|
1,257
|
479
|
1,736
|
||||||||||||
Commercial & industrial
|
3
|
4,420
|
1,960
|
6,380
|
||||||||||||
Residential real estate
|
2
|
-
|
121
|
121
|
||||||||||||
Total
|
12
|
$
|
9,524
|
$
|
2,560
|
$
|
12,084
|
|
Modifications by type for the year ended December 31, 2013
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Number of loans
|
Rate
|
Term
|
Payment
|
Combination of
types
|
Total
|
Pre-
Modification Outstanding
Recorded
Investment
|
Post-
Modification Outstanding
Recorded
Investment
|
||||||||||||||||||||||||
Commercial real estate
|
2
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,705
|
$
|
3,705
|
$
|
3,761
|
$
|
3,761
|
|||||||||||||||||
Commercial & industrial
|
1
|
-
|
-
|
-
|
82
|
82
|
87
|
87
|
||||||||||||||||||||||||
Total
|
3
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,787
|
$
|
3,787
|
$
|
3,848
|
$
|
3,848
|
|
For the year ended December 31, 2013
|
|||||||||||
(In thousands)
|
Loans
|
Tax Liens
|
Total
|
|||||||||
Beginning balance
|
$
|
11,365
|
$
|
2,070
|
$
|
13,435
|
||||||
Net proceeds from sales
|
(8,869
|
)
|
(3,910
|
)
|
(12,779
|
)
|
||||||
Net gain on sales
|
228
|
1,199
|
1,427
|
|||||||||
Assets acquired on non-accrual loans
|
100
|
8,951
|
9,051
|
|||||||||
Impairment charge
|
(1,099
|
)
|
(418
|
)
|
(1,517
|
)
|
||||||
Ending balance
|
$
|
1,725
|
$
|
7,892
|
$
|
9,617
|
As of December 31, 2013
|
|
Included in AOCL*
|
|
|||||||||||||
(In thousands)
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair value
|
||||||||||||
Investment securities available-for-sale
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
68,207
|
$
|
-
|
$
|
(6,171
|
)
|
$
|
62,036
|
|||||||
Mortgage-backed securities-residential
|
32,769
|
210
|
(882
|
)
|
32,097
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
188,194
|
2,887
|
(1,978
|
)
|
189,103
|
|||||||||||
Non-agency
|
4,454
|
25
|
-
|
4,479
|
||||||||||||
Corporate bonds
|
9,669
|
25
|
(256
|
)
|
9,438
|
|||||||||||
Municipal bonds
|
7,163
|
-
|
(263
|
)
|
6,900
|
|||||||||||
Common stocks
|
33
|
16
|
-
|
49
|
||||||||||||
Other securities
|
3,363
|
1,405
|
(143
|
)
|
4,625
|
|||||||||||
Total available-for-sale investment securities
|
$
|
313,852
|
$
|
4,568
|
$
|
(9,693
|
)
|
$
|
308,727
|
As of December 31, 2012
|
|
Included in AOCL*
|
|
|||||||||||||
(In thousands)
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair value
|
||||||||||||
Investment securities available-for-sale
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
66,371
|
$
|
151
|
$
|
(78
|
)
|
$
|
66,444
|
|||||||
Mortgage-backed securities-residential
|
30,038
|
518
|
(47
|
)
|
30,509
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
229,556
|
5,031
|
(611
|
)
|
233,976
|
|||||||||||
Non-agency
|
1,007
|
4
|
-
|
1,011
|
||||||||||||
Corporate bonds
|
7,477
|
32
|
(72
|
)
|
7,437
|
|||||||||||
Municipal bonds
|
5,645
|
-
|
(30
|
)
|
5,615
|
|||||||||||
Common stocks
|
33
|
14
|
-
|
47
|
||||||||||||
Other securities
|
3,752
|
520
|
(108
|
)
|
4,164
|
|||||||||||
Total available-for-sale investment securities
|
$
|
343,879
|
$
|
6,270
|
$
|
(946
|
)
|
$
|
349,203
|
*
|
Accumulated other comprehensive loss
|
|
As of December 31, 2013
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
After one year, but
|
After five years, but
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Within one year
|
within five years
|
within ten years
|
After ten years
|
Total
|
|||||||||||||||||||||||||||||||||||
(In thousands, except percentages)
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
||||||||||||||||||||||||||||||
U.S. government agencies
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
24,153
|
2.00
|
%
|
$
|
37,883
|
2.49
|
%
|
$
|
62,036
|
2.30
|
%
|
||||||||||||||||||||||
Mortgage-backed securities-residential
|
4
|
3.00
|
%
|
8,238
|
3.60
|
%
|
23,855
|
2.79
|
%
|
-
|
-
|
32,097
|
2.99
|
%
|
||||||||||||||||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
2,291
|
4.14
|
%
|
115,163
|
3.79
|
%
|
71,649
|
3.39
|
%
|
-
|
-
|
189,103
|
3.64
|
%
|
||||||||||||||||||||||||||
Non-agency
|
-
|
-
|
4,479
|
3.32
|
%
|
-
|
-
|
-
|
-
|
4,479
|
3.32
|
%
|
||||||||||||||||||||||||||||
Corporate bonds
|
100
|
1.40
|
%
|
3,661
|
2.91
|
%
|
3,858
|
2.58
|
%
|
1,819
|
4.00
|
%
|
9,438
|
2.98
|
%
|
|||||||||||||||||||||||||
Municipal bonds
|
-
|
-
|
2,698
|
3.52
|
%
|
3,235
|
4.06
|
%
|
967
|
3.50
|
%
|
6,900
|
3.76
|
%
|
||||||||||||||||||||||||||
Total AFS debt securities
|
$
|
2,395
|
3.50
|
%
|
$
|
134,239
|
3.83
|
%
|
$
|
126,750
|
3.08
|
%
|
$
|
40,669
|
2.23
|
%
|
$
|
304,053
|
3.25
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||
|
2013
|
2012
|
2011
|
|||||||||||||||||||||
(In thousands, except percentages)
|
Average Balance
|
Rate
|
Average Balance
|
Rate
|
Average Balance
|
Rate
|
||||||||||||||||||
Demand deposits
|
|
|
|
|
|
|
||||||||||||||||||
Non interest bearing
|
$
|
59,989
|
-
|
$
|
55,666
|
-
|
$
|
57,241
|
-
|
|||||||||||||||
Interest bearing (NOW)
|
42,576
|
0.11
|
%
|
42,305
|
0.33
|
%
|
42,488
|
0.56
|
%
|
|||||||||||||||
Money market deposits
|
167,501
|
0.34
|
%
|
182,297
|
0.65
|
%
|
178,670
|
0.96
|
%
|
|||||||||||||||
Savings deposits
|
17,802
|
0.21
|
%
|
17,006
|
0.39
|
%
|
15,727
|
0.55
|
%
|
|||||||||||||||
Certificate of deposit
|
239,584
|
1.41
|
%
|
275,959
|
1.64
|
%
|
327,583
|
2.11
|
%
|
|||||||||||||||
Total deposits
|
$
|
527,452
|
$
|
573,233
|
$
|
621,709
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Three months or less
|
$
|
13,598
|
$
|
23,418
|
||||
Over three months through twelve months
|
30,724
|
34,655
|
||||||
Over twelve months through five years
|
43,464
|
22,425
|
||||||
Over five years
|
4,977
|
10,735
|
||||||
Total
|
$
|
92,763
|
$
|
91,233
|
|
As of December 31,
|
|||||||||||||||||||
(In thousands)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Short term borrowings
|
$
|
10,000
|
$
|
-
|
$
|
54,218
|
$
|
22,000
|
$
|
114,500
|
||||||||||
Long term borrowings
|
||||||||||||||||||||
Other borrowings
|
42,881
|
43,333
|
43,782
|
44,230
|
44,674
|
|||||||||||||||
Obligations through RE owned via equity invest(1)
|
-
|
-
|
-
|
-
|
3,652
|
|||||||||||||||
Subordinated debt
|
25,774
|
25,774
|
25,774
|
25,774
|
25,774
|
|||||||||||||||
FHLB advances
|
55,000
|
65,000
|
50,000
|
88,719
|
95,001
|
|||||||||||||||
Total borrowings
|
$
|
133,655
|
$
|
134,107
|
$
|
173,774
|
$
|
180,723
|
$
|
283,601
|
(1)
|
This obligation is consolidated from requirements under ASC Topic 810 of which $0 was guaranteed by the Company.
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
|
(In thousands, except percentages)
|
As of December 31, 2013
|
|||||||||||
Changes in Rates
|
Economic Value
of Equity
|
Percent of
Change
|
Policy
Limits
|
|||||||||
+ 400 basis points
|
$
|
25,825
|
(67.3
|
%)
|
+/- 45
|
%
|
||||||
+ 300 basis points
|
38,730
|
(51.0
|
%)
|
+/- 35
|
%
|
|||||||
+ 200 basis points
|
53,417
|
(32.4
|
%)
|
+/- 25
|
%
|
|||||||
+ 100 basis points
|
66,873
|
(15.4
|
%)
|
+/- 15
|
%
|
|||||||
Flat rate
|
79,061
|
0.0
|
%
|
N/
|
A
|
|||||||
- 100 basis points
|
86,480
|
9.4
|
%
|
+/- 15
|
%
|
|||||||
- 200 basis points
|
81,905
|
3.6
|
%
|
+/- 25
|
%
|
(In thousands, except percentages)
|
Net Interest Income for 2014
|
|||||||||||
Changes in Rates
|
Net Interest
Income
|
Percent of
Change
|
Policy
Limits
|
|||||||||
+ 400 basis points
|
$
|
18,911
|
(16.9
|
%)
|
+/- 40
|
%
|
||||||
+ 300 basis points
|
20,210
|
(11.2
|
%)
|
+/- 30
|
%
|
|||||||
+ 200 basis points
|
21,364
|
(6.1
|
%)
|
+/- 20
|
%
|
|||||||
+ 100 basis points
|
22,165
|
(2.6
|
%)
|
+/- 10
|
%
|
|||||||
Flat rate
|
22,755
|
0.0
|
%
|
N/
|
A
|
|||||||
- 100 basis points
|
22,257
|
(2.2
|
%)
|
+/- 10
|
%
|
|||||||
- 200 basis points
|
21,042
|
(7.5
|
%)
|
+/- 20
|
%
|
|
As of December 31, 2013
|
|||||||||||||||||||||||
(In millions)
|
0 – 90 days
|
91 – 365
days
|
One to five
years
|
Over five
years
|
Non-rate
sensitive
|
Total
|
||||||||||||||||||
Assets (1)
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits in banks
|
$
|
7.7
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
9.2
|
$
|
16.9
|
||||||||||||
Investment securities
|
13.5
|
26.4
|
151.6
|
122.3
|
(5.1
|
)
|
308.7
|
|||||||||||||||||
Loans: (2)
|
||||||||||||||||||||||||
Fixed rate
|
14.2
|
37.7
|
117.9
|
81.7
|
(13.5
|
)
|
238.0
|
|||||||||||||||||
Variable rate
|
49.2
|
65.6
|
-
|
-
|
-
|
114.8
|
||||||||||||||||||
Total loans
|
63.4
|
103.3
|
117.9
|
81.7
|
(13.5
|
)
|
352.8
|
|||||||||||||||||
Other assets (3)
|
-
|
21.6
|
-
|
-
|
32.3
|
53.9
|
||||||||||||||||||
Total Assets
|
$
|
84.6
|
$
|
151.3
|
$
|
269.5
|
$
|
204.0
|
$
|
22.9
|
$
|
732.3
|
||||||||||||
Liabilities & Capital
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Non interest bearing deposits
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
60.5
|
$
|
60.5
|
||||||||||||
Interest bearing deposits
|
25.0
|
74.7
|
128.0
|
-
|
-
|
227.7
|
||||||||||||||||||
Certificate of deposits
|
36.1
|
81.1
|
109.5
|
14.1
|
-
|
240.8
|
||||||||||||||||||
Total deposits
|
61.1
|
155.8
|
237.5
|
14.1
|
60.5
|
529.0
|
||||||||||||||||||
Borrowings (1)
|
38.7
|
-
|
95.0
|
-
|
-
|
133.7
|
||||||||||||||||||
Other liabilities
|
-
|
-
|
-
|
-
|
21.8
|
21.8
|
||||||||||||||||||
Capital
|
-
|
-
|
-
|
-
|
47.8
|
47.8
|
||||||||||||||||||
Total liabilities & capital
|
$
|
99.8
|
$
|
155.8
|
$
|
332.5
|
$
|
14.1
|
$
|
130.1
|
$
|
732.3
|
||||||||||||
Net interest rate GAP
|
$
|
(15.2
|
)
|
$
|
(4.5
|
)
|
$
|
(63.0
|
)
|
$
|
189.9
|
$
|
(107.2
|
)
|
||||||||||
Cumulative interest rate GAP
|
$
|
(15.2
|
)
|
$
|
(19.7
|
)
|
$
|
(82.7
|
)
|
$
|
107.2
|
|||||||||||||
GAP to total assets
|
(2
|
%)
|
(1
|
%)
|
||||||||||||||||||||
GAP to total equity
|
(32
|
%)
|
(9
|
%)
|
||||||||||||||||||||
Cumulative GAP to total assets
|
(2
|
%)
|
(3
|
%)
|
||||||||||||||||||||
Cumulative GAP to total equity
|
(32
|
%)
|
(41
|
%)
|
(1) | Interest earning assets are included in the period in which the balances are expected to be repaid and/or re-priced as a result of anticipated prepayments, scheduled rate adjustments, and contractual maturities. |
(2) | Reflects principal maturing within the specified periods for fixed and re-pricing for variable rate loans; includes non-performing loans. |
(3)
|
Includes FHLB stock.
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
December 31,
|
|||||||
ASSETS
|
2013
|
2012
|
||||||
|
(In thousands, except share data)
|
|||||||
Cash and due from banks
|
$
|
9,154
|
$
|
10,621
|
||||
Interest bearing deposits
|
7,690
|
18,181
|
||||||
Total cash and cash equivalents
|
16,844
|
28,802
|
||||||
Investment securities available-for-sale ("AFS”), at fair value
|
308,727
|
349,203
|
||||||
Other investment, at cost
|
2,250
|
2,250
|
||||||
Federal Home Loan Bank ("FHLB") stock, at cost
|
4,204
|
6,011
|
||||||
Loans and leases held for sale ("LHFS"), at lower of cost or fair market value
|
1,446
|
1,572
|
||||||
Loans and leases held for investment ("LHFI")
|
366,481
|
344,165
|
||||||
Less allowance for loan and lease losses
|
13,671
|
17,261
|
||||||
Net loans and leases
|
352,810
|
326,904
|
||||||
Bank owned life insurance
|
15,124
|
14,585
|
||||||
Accrued interest receivable
|
7,054
|
10,256
|
||||||
Other real estate owned ("OREO"), net
|
9,617
|
13,435
|
||||||
Premises and equipment, net
|
4,475
|
5,232
|
||||||
Other assets
|
9,703
|
11,205
|
||||||
Total assets
|
$
|
732,254
|
$
|
769,455
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
60,473
|
$
|
58,531
|
||||
Interest bearing
|
468,491
|
496,386
|
||||||
Total deposits
|
528,964
|
554,917
|
||||||
Short-term borrowings
|
10,000
|
-
|
||||||
Long-term borrowings
|
97,881
|
108,333
|
||||||
Subordinated debentures
|
25,774
|
25,774
|
||||||
Accrued interest payable
|
965
|
3,760
|
||||||
Other liabilities
|
20,865
|
23,103
|
||||||
Total liabilities
|
684,449
|
715,887
|
||||||
Shareholders’ equity
|
||||||||
Royal Bancshares of Pennsylvania, Inc. equity:
|
||||||||
Preferred stock, Series A perpetual, $1,000 liquidation value, 500,000 shares authorized, 30,407 shares issued and outstanding at December 31, 2013 and 2012
|
29,950
|
29,396
|
||||||
Class A common stock, par value $2.00 per share, authorized 40,000,000 shares; issued,
11,469,940
and 11,431,638 at December 31, 2013 and December 31, 2012, respectively
|
22,940
|
22,863
|
||||||
Class B common stock, par value $0.10 per share; authorized 3,000,000 shares; issued,
1,987,142
and 2,020,449 at December 31, 2013 and December 31, 2012, respectively
|
199
|
202
|
||||||
Additional paid in capital
|
127,299
|
126,287
|
||||||
Accumulated deficit
|
(120,396
|
)
|
(121,877
|
)
|
||||
Accumulated other comprehensive loss
|
(6,122 |
)
|
(142
|
)
|
||||
Treasury stock - at cost, shares of Class A,
453,077 a
nd 498,488 at December 31, 2013 and 2012
|
(6,336
|
)
|
(6,971
|
)
|
||||
Total Royal Bancshares of Pennsylvania, Inc. shareholders’ equity
|
47,534
|
49,758
|
||||||
Noncontrolling interest
|
271
|
3,810
|
||||||
Total shareholders’ equity
|
47,805 |
53,568
|
||||||
Total liabilities and shareholders’ equity
|
$
|
732,254 |
$
|
769,455
|
|
For the years ended December 31,
|
|||||||
|
2013
|
2012
|
||||||
|
(In thousands, except per share data)
|
|||||||
Interest income
|
|
|
||||||
Loans and leases, including fees
|
$
|
21,741
|
$
|
25,266
|
||||
Investment securities available for sale
|
5,757
|
6,677
|
||||||
Deposits in banks
|
26
|
38
|
||||||
Total Interest Income
|
27,524
|
31,981
|
||||||
Interest expense
|
||||||||
Deposits
|
4,022
|
5,898
|
||||||
Short-term borrowings
|
22
|
309
|
||||||
Long-term borrowings
|
3,313
|
3,692
|
||||||
Total Interest Expense
|
7,357
|
9,899
|
||||||
Net Interest Income
|
20,167
|
22,082
|
||||||
(Credit) provision for loan and lease losses
|
(872
|
)
|
5,997
|
|||||
Net Interest Income after (Credit) Provision for Loan and Lease Losses
|
21,039
|
16,085
|
||||||
Non-interest income
|
||||||||
Gains on sales of premises and equipment
|
2,524
|
-
|
||||||
Net gains on sales of other real estate owned
|
1,427
|
363
|
||||||
Service charges and fees
|
1,323
|
1,218
|
||||||
Gains on sales of loans and leases
|
686
|
2,057
|
||||||
Income from bank owned life insurance
|
539
|
553
|
||||||
Net gains on the sale of AFS investment securities
|
158
|
1,030
|
||||||
Other income
|
207
|
747
|
||||||
Total other-than-temporary impairment losses on investment securities
|
-
|
(2,359
|
)
|
|||||
Total Non-interest Income
|
6,864
|
3,609
|
||||||
Non-interest expense
|
||||||||
Salaries and benefits
|
10,276
|
11,576
|
||||||
Professional and legal fees
|
2,954
|
4,180
|
||||||
OREO expenses and impairment charges
|
2,785
|
8,401
|
||||||
Occupancy and equipment
|
2,281
|
2,192
|
||||||
Loss contingency
|
1,750
|
-
|
||||||
Pennsylvania shares tax
|
1,123
|
1,148
|
||||||
FDIC and state assessments
|
1,038
|
1,056
|
||||||
Loan collection expenses
|
557
|
465
|
||||||
Directors fees
|
490
|
401
|
||||||
Restructuring charges
|
361
|
-
|
||||||
Impairment of loans held for sale
|
153
|
2,002
|
||||||
Department of Justice fine
|
-
|
2,000
|
||||||
Other operating expenses
|
2,562
|
2,903
|
||||||
Total Non-interest Expense
|
26,330
|
36,324
|
||||||
Income (Loss) Before Income Taxes
|
1,573
|
(16,630
|
)
|
|||||
Income tax expense
|
42
|
-
|
||||||
Net Income (Loss)
|
$
|
1,531
|
$
|
(16,630
|
)
|
|||
Less net loss attributable to noncontrolling interest
|
(578
|
)
|
(1,005
|
)
|
||||
Net Income (Loss) Attributable to Royal Bancshares of Pennsylvania, Inc.
|
$
|
2,109
|
$
|
(15,625
|
)
|
|||
Less Preferred stock Series A accumulated dividend and accretion
|
$
|
2,075
|
$
|
2,038
|
||||
Net Income (Loss) to Common Shareholders
|
$
|
34
|
$
|
(17,663
|
)
|
|||
Net Income (Loss) - basic and diluted
|
$
|
-
|
$
|
(1.33
|
)
|
|
For the years ended December 31,
|
|||||||
|
2013
|
2012
|
||||||
(In thousands)
|
|
|
||||||
Net income (loss)
|
$
|
1,531
|
$
|
(16,630
|
)
|
|||
Other comprehensive loss, net of tax
|
||||||||
Unrealized losses on investment securities:
|
||||||||
Unrealized holding losses arising during period
|
(6,719 |
)
|
(1,038
|
)
|
||||
Less adjustment for impaired investments
1
|
-
|
(1,557
|
)
|
|||||
Less reclassification adjustment for gains realized in net income (loss)
2
|
104
|
680
|
||||||
Unrealized losses on investment securities
|
(6,823 |
)
|
(161
|
)
|
||||
Unrecognized benefit obligation expense:
|
||||||||
Actuarial gain (loss)
|
627 |
(1,092
|
)
|
|||||
Less reclassification adjustment for amortization
3
|
(216
|
)
|
(311
|
)
|
||||
Other comprehensive loss
|
(5,980 |
)
|
(942
|
)
|
||||
Comprehensive loss
|
(4,449 |
)
|
(17,572
|
)
|
||||
Less net loss attributable to noncontrolling interest
|
(578
|
)
|
(1,005
|
)
|
||||
Comprehensive loss attributable to Royal Bancshares of Pennsylvania, Inc.
|
$
|
(3,871 |
)
|
$
|
(16,567
|
)
|
|
Preferred stock
|
Class A common stock
|
Class B common stock
|
Additional
paid in
|
Accumulated
|
Accumulated other comprehensive
|
Treasury
|
Noncontrolling
|
Total Shareholders'
|
|||||||||||||||||||||||||||||||||||
(In thousands)
|
Series A
|
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
deficit
|
income (loss)
|
stock
|
Interest
|
Equity
|
|||||||||||||||||||||||||||||||||
Balance January 1, 2012
|
$
|
28,878
|
11,362
|
$
|
22,723
|
2,081
|
$
|
208
|
$
|
126,245
|
$
|
(105,600 |
)
|
$
|
800
|
$
|
(6,971
|
)
|
$
|
4,815
|
$
|
71,098
|
||||||||||||||||||||||
Comprehensive loss
|
||||||||||||||||||||||||||||||||||||||||||||
Net loss
|
(15,625
|
)
|
(1,005
|
)
|
(16,630
|
)
|
||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of reclassifications and taxes
|
(942
|
)
|
(942
|
)
|
||||||||||||||||||||||||||||||||||||||||
Common stock conversion from Class B to Class A
|
70
|
140
|
(61
|
)
|
(6
|
)
|
(134
|
)
|
-
|
|||||||||||||||||||||||||||||||||||
Accretion of discount on preferred stock
|
518
|
(518
|
)
|
-
|
||||||||||||||||||||||||||||||||||||||||
Stock option expense
|
42
|
42
|
||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2012
|
$
|
29,396
|
11,432
|
$
|
22,863
|
2,020
|
$
|
202
|
$
|
126,287
|
$
|
(121,877 |
)
|
$
|
(142
|
)
|
$
|
(6,971
|
)
|
$
|
3,810
|
$
|
53,568 | |||||||||||||||||||||
Comprehensive loss
|
||||||||||||||||||||||||||||||||||||||||||||
Net income (loss)
|
2,109
|
(578 |
)
|
1,531 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of reclassifications and taxes
|
(5,980 |
)
|
(5,980 |
)
|
||||||||||||||||||||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest
|
1,559
|
(2,409
|
)
|
(850
|
)
|
|||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(552 |
)
|
(552 |
)
|
||||||||||||||||||||||||||||||||||||||||
Common stock conversion from Class B to Class A
|
38
|
77
|
(33
|
)
|
(3
|
)
|
(74
|
)
|
-
|
|||||||||||||||||||||||||||||||||||
Accretion of discount on preferred stock
|
554
|
(554
|
)
|
-
|
||||||||||||||||||||||||||||||||||||||||
Treasury shares issued for compensation
|
(569
|
)
|
635
|
66
|
||||||||||||||||||||||||||||||||||||||||
Stock option expense
|
22
|
22
|
||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2013
|
$
|
29,950
|
11,470
|
$
|
22,940
|
1,987
|
$
|
199
|
$
|
127,299
|
$
|
(120,396 |
)
|
$
|
(6,122 |
)
|
$
|
(6,336
|
)
|
$
|
271
|
$
|
47,805 |
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Cash flows from operating activities
|
|
|
||||||
Net income (loss)
|
$
|
2,109
|
$
|
(15,625
|
)
|
|||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
451
|
417
|
||||||
Stock compensation expense
|
22
|
42
|
||||||
Net amortization of investment securities
|
4,183
|
6,423
|
||||||
Net accretion on loans
|
(382
|
)
|
(241
|
)
|
||||
Impairment of AFS investment securities
|
-
|
2,359
|
||||||
Net gains on sales of AFS investment securities
|
(158
|
)
|
(1,030
|
)
|
||||
(Credit) provision for loan and lease losses
|
(872
|
)
|
5,997
|
|||||
Impairment charge on loans held for sale
|
153
|
2,002
|
||||||
Proceeds from sales of loans and leases
|
3,919
|
11,052
|
||||||
Gains on sales of loans and leases
|
(686
|
)
|
(2,057
|
)
|
||||
Impairment charge for other real estate owned
|
1,517
|
6,741
|
||||||
Net gains on sales of other real estate
|
(1,427
|
)
|
(363
|
)
|
||||
Gains on sales of premises and equipment
|
(2,524
|
)
|
-
|
|||||
Income from equity investments
|
-
|
(75
|
)
|
|||||
Income from bank owned life insurance
|
(539
|
)
|
(553
|
)
|
||||
Changes in assets and liabilities:
|
||||||||
Decrease in accrued interest receivable
|
3,202
|
5,207
|
||||||
Decrease in other assets
|
1,502 |
3,121
|
||||||
(Decrease) increase in accrued interest payable
|
(2,795
|
)
|
310
|
|||||
(Decrease) increase in other liabilities
|
(2,238
|
)
|
3,154
|
|||||
Net cash provided by operating activities
|
5,437 |
26,881
|
||||||
Cash flows from investing activities
|
||||||||
Proceeds from maturities, calls and paydowns of AFS investment securities
|
94,676
|
148,112
|
||||||
Proceeds from sales of AFS investment securities
|
31,046
|
28,246
|
||||||
Purchase of AFS investment securities
|
(99,720
|
)
|
(205,265
|
)
|
||||
Net redemption of Federal Home Loan Bank stock
|
1,807
|
2,463
|
||||||
Net (increase) decrease in loans
|
(34,408 |
)
|
52,691
|
|||||
Proceeds from sales of real estate owned
|
12,779
|
12,014
|
||||||
Proceeds from sale of premises and equipment
|
3,267
|
-
|
||||||
Purchase of premises and equipment
|
(437
|
)
|
(255
|
)
|
||||
Distribution from investments in real estate
|
-
|
75
|
||||||
Net cash provided by investing activities
|
9,010 |
38,081
|
|
For the years ended December 31,
|
|||||||
|
2013
|
2012
|
||||||
Cash flows from financing activities:
|
|
|
||||||
Increase (decrease) in demand and NOW accounts
|
3,397
|
4,745
|
||||||
(Decrease) increase in money market and savings accounts
|
(14,560
|
)
|
(2,262
|
)
|
||||
Decrease in certificates of deposit
|
(14,790
|
)
|
(23,482
|
)
|
||||
Change in short-term borrowings
|
10,000
|
(54,218
|
)
|
|||||
Repayments of long-term borrowings
|
(50,452
|
)
|
(449
|
)
|
||||
Proceeds from long-term borrowings
|
40,000
|
15,000
|
||||||
Net cash used in financing activities
|
(26,405
|
)
|
(60,666
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
(11,958
|
)
|
4,296
|
|||||
Cash and cash equivalents at beginning of period
|
28,802
|
24,506
|
||||||
Cash and cash equivalents at end of period
|
$
|
16,844
|
$
|
28,802
|
||||
Supplemental Disclosure
|
||||||||
Interest
|
$
|
10,152
|
$
|
9,589
|
||||
Income taxes
|
$
|
-
|
$
|
-
|
||||
Transfers to other real estate owned
|
$
|
9,051 |
$
|
10,811
|
At December 31, 2012
|
As
Originally
Reported
|
Adjustment
|
As Restated | |||||||||
|
(In thousands)
|
|||||||||||
Assets
|
|
|
|
|||||||||
Total cash and cash equivalents
|
$
|
28,802
|
$
|
-
|
$
|
28,802
|
||||||
Investment securities AFS, at fair value
|
349,203
|
-
|
349,203
|
|||||||||
Other investment, at cost
|
2,250
|
-
|
2,250
|
|||||||||
FHLB stock, at cost
|
6,011
|
-
|
6,011
|
|||||||||
Loans and leases held for sale
|
1,572
|
-
|
1,572
|
|||||||||
Loans and leases, net
|
326,904
|
-
|
326,904
|
|||||||||
Bank owned life insurance
|
14,585
|
-
|
14,585
|
|||||||||
Accrued interest receivable
|
10,256
|
-
|
10,256
|
|||||||||
OREO, net
|
13,435
|
-
|
13,435
|
|||||||||
Premises and equipment, net
|
5,232
|
-
|
5,232
|
|||||||||
Other assets
|
15,466
|
(4,261
|
)
|
11,205
|
||||||||
Total assets
|
$
|
773,716
|
$
|
(4,261
|
)
|
$
|
769,455
|
|||||
Liabilities
|
||||||||||||
Total deposits
|
$
|
554,917
|
$
|
-
|
$
|
554,917
|
||||||
Long-term borrowings
|
108,333
|
-
|
108,333
|
|||||||||
Subordinated debentures
|
25,774
|
-
|
25,774
|
|||||||||
Accrued interest payable
|
3,760
|
-
|
3,760
|
|||||||||
Other liabilities
|
22,517
|
586
|
23,103
|
|||||||||
Total liabilities
|
715,301
|
586
|
715,887
|
|||||||||
|
||||||||||||
Shareholders' equity
|
||||||||||||
Preferred stock
|
29,396
|
-
|
29,396
|
|||||||||
Common stock
|
23,065
|
-
|
23,065
|
|||||||||
Additional paid in capital
|
126,287
|
-
|
126,287
|
|||||||||
Accumulated deficit
|
(117,080
|
)
|
(4,797
|
)
|
(121,877
|
)
|
||||||
Accumulated other comprehensive loss
|
(142
|
)
|
-
|
(142
|
)
|
|||||||
Treasury stock
|
(6,971
|
)
|
-
|
(6,971
|
)
|
|||||||
Noncontrolling interest
|
3,860
|
(50
|
)
|
3,810
|
||||||||
Shareholders' equity
|
58,415
|
(4,847
|
)
|
53,568
|
||||||||
Total liabilities and shareholders' equity
|
$
|
773,716
|
$
|
(4,261
|
)
|
$
|
769,455
|
At January 1, 2012
|
As
Originally
Reported
|
Adjustment
|
As Restated | |||||||||
|
(In thousands)
|
|||||||||||
|
|
|
|
|||||||||
Preferred stock
|
$
|
28,878
|
$
|
-
|
$
|
28,878
|
||||||
Class A common stock
|
22,723
|
-
|
22,723
|
|||||||||
Class B common stock
|
208
|
-
|
208
|
|||||||||
Additional paid in capital
|
126,245
|
-
|
126,245
|
|||||||||
Accumulated deficit
|
(100,803
|
)
|
(4,797
|
)
|
(105,600
|
)
|
||||||
Accumulated other comprehensive income
|
800
|
-
|
800
|
|||||||||
Treasury stock
|
(6,971
|
)
|
-
|
(6,971
|
)
|
|||||||
Noncontrolling interest
|
4,865
|
(50
|
)
|
4,815
|
||||||||
Total shareholders' equity
|
$
|
75,945
|
$
|
(4,847
|
)
|
$
|
71,098
|
As of December 31, 2013
|
|
Included in AOCL*
|
|
|||||||||||||
(In thousands)
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair value
|
||||||||||||
Investment securities available-for-sale
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
68,207
|
$
|
-
|
$
|
(6,171
|
)
|
$
|
62,036
|
|||||||
Mortgage-backed securities-residential
|
32,769
|
210
|
(882
|
)
|
32,097
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
188,194
|
2,887
|
(1,978
|
)
|
189,103
|
|||||||||||
Non-agency
|
4,454
|
25
|
-
|
4,479
|
||||||||||||
Corporate bonds
|
9,669
|
25
|
(256
|
)
|
9,438
|
|||||||||||
Municipal bonds
|
7,163
|
-
|
(263
|
)
|
6,900
|
|||||||||||
Common stocks
|
33
|
16
|
-
|
49
|
||||||||||||
Other securities
|
3,363
|
1,405
|
(143
|
)
|
4,625
|
|||||||||||
Total available for sale
|
$
|
313,852
|
$
|
4,568
|
$
|
(9,693
|
)
|
$
|
308,727
|
As of December 31, 2012
|
|
Included in AOCL*
|
|
|||||||||||||
(In thousands)
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair value
|
||||||||||||
Investment securities available-for-sale
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
66,371
|
$
|
151
|
$
|
(78
|
)
|
$
|
66,444
|
|||||||
Mortgage-backed securities-residential
|
30,038
|
518
|
(47
|
)
|
30,509
|
|||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
229,556
|
5,031
|
(611
|
)
|
233,976
|
|||||||||||
Non-agency
|
1,007
|
4
|
-
|
1,011
|
||||||||||||
Corporate bonds
|
7,477
|
32
|
(72
|
)
|
7,437
|
|||||||||||
Municipal bonds
|
5,645
|
-
|
(30
|
)
|
5,615
|
|||||||||||
Common stocks
|
33
|
14
|
-
|
47
|
||||||||||||
Other securities
|
3,752
|
520
|
(108
|
)
|
4,164
|
|||||||||||
Total available for sale
|
$
|
343,879
|
$
|
6,270
|
$
|
(946
|
)
|
$
|
349,203
|
*
|
Accumulated other comprehensive loss
|
|
As of December 31, 2013
|
|||||||
(In thousands)
|
Amortized
cost
|
Fair value
|
||||||
Within 1 year
|
$
|
11,806
|
$
|
10,257
|
||||
After 1 but within 5 years
|
6,432
|
6,359
|
||||||
After 5 but within 10 years
|
33,519
|
31,246
|
||||||
After 10 years
|
33,282
|
30,512
|
||||||
Mortgage-backed securities-residential
|
32,769
|
32,097
|
||||||
Collateralized mortgage obligations:
|
||||||||
Issued or guaranteed by U.S. government agencies
|
188,194
|
189,103
|
||||||
Non-agency
|
4,454
|
4,479
|
||||||
Total available for sale debt securities
|
310,456
|
304,053
|
||||||
No contractual maturity
|
3,396
|
4,674
|
||||||
Total available for sale securities
|
$
|
313,852
|
$
|
308,727
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Gross realized gains
|
$
|
416
|
$
|
1,211
|
||||
Gross realized losses
|
(258
|
)
|
(181
|
)
|
||||
Net realized gains
|
$
|
158
|
$
|
1,030
|
As of December 31, 2013
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||||||||||||||
(In thousands)
|
Fair value
|
Gross
unrealized
losses
|
Number of
positions
|
Fair value
|
Gross
unrealized
losses
|
Number of
positions
|
Fair value
|
Gross
unrealized
losses
|
Number of
positions
|
|||||||||||||||||||||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
U.S. government agencies
|
$
|
48,919
|
$
|
(5,035
|
)
|
16
|
$
|
12,267
|
$
|
(1,136
|
)
|
5
|
$
|
61,186
|
$
|
(6,171
|
)
|
21
|
||||||||||||||||||
Mortgage-backed securities-residential
|
18,045
|
(518
|
)
|
7
|
6,276
|
(364
|
)
|
2
|
24,321
|
(882
|
)
|
9
|
||||||||||||||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
67,240
|
(1,446
|
)
|
21
|
9,974
|
(532
|
)
|
3
|
77,214
|
(1,978
|
)
|
24
|
||||||||||||||||||||||||
Corporate bonds
|
4,848
|
(221
|
)
|
5
|
965
|
(35
|
)
|
1
|
5,813
|
(256
|
)
|
6
|
||||||||||||||||||||||||
Municipal bonds
|
3,019
|
(102
|
)
|
5
|
3,881
|
(161
|
)
|
4
|
6,900
|
(263
|
)
|
9
|
||||||||||||||||||||||||
Other securities
|
-
|
-
|
-
|
301
|
(143
|
)
|
2
|
301
|
(143
|
)
|
2
|
|||||||||||||||||||||||||
Total available for sale
|
$
|
142,071
|
$
|
(7,322
|
)
|
54
|
$
|
33,664
|
$
|
(2,371
|
)
|
17
|
$
|
175,735
|
$
|
(9,693
|
)
|
71
|
As of December 31, 2012
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||||||||||||||
(In thousands)
|
Fair value
|
Gross
unrealized
losses
|
Number
of
positions
|
Fair value
|
Gross
unrealized
losses
|
Number of
positions
|
Fair value
|
Gross
unrealized
losses
|
Number
of
positions
|
|||||||||||||||||||||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
U.S. government agencies
|
$
|
23,818
|
$
|
(78
|
)
|
8
|
$
|
-
|
$
|
-
|
-
|
$
|
23,818
|
$
|
(78
|
)
|
8
|
|||||||||||||||||||
Mortgage-backed securities-residential
|
7,280
|
(47
|
)
|
2
|
-
|
-
|
-
|
7,280
|
(47
|
)
|
2
|
|||||||||||||||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
44,937
|
(592
|
)
|
15
|
3,975
|
(19
|
)
|
2
|
48,912
|
(611
|
)
|
17
|
||||||||||||||||||||||||
Corporate bonds
|
2,165
|
(13
|
)
|
2
|
941
|
(59
|
)
|
1
|
3,106
|
(72
|
)
|
3
|
||||||||||||||||||||||||
Municipal bonds
|
4,597
|
(21
|
)
|
5
|
882
|
(9
|
)
|
1
|
5,479
|
(30
|
)
|
6
|
||||||||||||||||||||||||
Other securities
|
289
|
(38
|
)
|
1
|
255
|
(70
|
)
|
1
|
544
|
(108
|
)
|
2
|
||||||||||||||||||||||||
Total available for sale
|
$
|
83,086
|
$
|
(789
|
)
|
33
|
$
|
6,053
|
$
|
(157
|
)
|
5
|
$
|
89,139
|
$
|
(946
|
)
|
38
|
(In thousands)
|
2013
|
2012
|
||||||
Balance at January 1,
|
$
|
173
|
$
|
173
|
||||
Reductions for securities sold during the period (realized)
|
(173
|
)
|
-
|
|||||
Balance at December 31,
|
$
|
-
|
$
|
173
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Other securities
|
$
|
-
|
$
|
2,359
|
||||
Total OTTI recognized in earnings
|
$
|
-
|
$
|
2,359
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Commercial real estate
|
$
|
148,293
|
$
|
167,115
|
||||
Construction and land development
|
45,261
|
37,215
|
||||||
Commercial and industrial
|
79,589
|
40,560
|
||||||
Multi-family
|
11,737
|
11,756
|
||||||
Residential real estate
|
25,535
|
24,981
|
||||||
Leases
|
42,524
|
37,347
|
||||||
Tax certificates
|
12,716
|
24,569
|
||||||
Consumer
|
826
|
1,139
|
||||||
|
366,481
|
344,682
|
||||||
Less: Deferred loan fees, net*
|
-
|
(517
|
)
|
|||||
Total LHFI, net of unearned income
|
$
|
366,481
|
$
|
344,165
|
· | Pass: includes credits that demonstrate a low probability of default; |
· | Pass-Watch: a warning classification which includes credits that are beginning to demonstrate above average risk through declining earnings, strained cash flows, increased leverage and/or weakening market fundamentals; |
· | Special mention: includes credits that have potential weaknesses that if left uncorrected could weaken the credit or result in inadequate protection of the Company’s position at some future date. While potentially weak, credits in this classification are marginally acceptable and loss of principal or interest is not anticipated; |
· | Substandard accrual: includes credits that exhibit a well-defined weakness which currently jeopardizes the repayment of debt and liquidation of collateral even though they are currently performing. These credits are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected; |
· | Non-accrual: (substandard non-accrual, doubtful, loss): includes credits that demonstrate serious problems to the point that it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. |
As of December 31, 2013
|
|
|
Special
|
|
|
|
||||||||||||||||||
(In thousands)
|
Pass
|
Pass-Watch
|
Mention
|
Substandard
|
Non-accrual
|
Total
|
||||||||||||||||||
Commercial real estate
|
$
|
99,525
|
$
|
32,267
|
$
|
11,572
|
$
|
2,604
|
$
|
2,325
|
$
|
148,293
|
||||||||||||
Construction and land development
|
14,677
|
16,270
|
11,095
|
569
|
2,650
|
45,261
|
||||||||||||||||||
Commercial & industrial
|
50,478
|
10,508
|
5,735
|
9,239
|
3,629
|
79,589
|
||||||||||||||||||
Multi-family
|
10,792
|
410
|
535
|
-
|
-
|
11,737
|
||||||||||||||||||
Residential real estate
|
24,903
|
-
|
-
|
-
|
632
|
25,535
|
||||||||||||||||||
Leases
|
41,325
|
485
|
247
|
-
|
467
|
42,524
|
||||||||||||||||||
Tax certificates
|
12,262
|
-
|
-
|
-
|
454
|
12,716
|
||||||||||||||||||
Consumer
|
750
|
76
|
-
|
-
|
-
|
826
|
||||||||||||||||||
Total LHFI
|
$
|
254,712
|
$
|
60,016
|
$
|
29,184
|
$
|
12,412
|
$
|
10,157
|
$
|
366,481
|
As of December 31, 2012
|
|
|
Special
|
|
|
|
||||||||||||||||||
(In thousands)
|
Pass
|
Pass-Watch
|
Mention
|
Substandard
|
Non-accrual
|
Total
|
||||||||||||||||||
Commercial real estate
|
$
|
64,308
|
$
|
69,510
|
$
|
19,529
|
$
|
3,423
|
$
|
10,345
|
$
|
167,115
|
||||||||||||
Construction and land development
|
2,139
|
13,872
|
16,343
|
581
|
4,280
|
37,215
|
||||||||||||||||||
Commercial & industrial
|
14,764
|
10,774
|
92
|
9,969
|
4,961
|
40,560
|
||||||||||||||||||
Multi-family
|
9,019
|
2,034
|
703
|
-
|
-
|
11,756
|
||||||||||||||||||
Residential real estate
|
15,125
|
6,634
|
602
|
1,626
|
994
|
24,981
|
||||||||||||||||||
Leases
|
36,755
|
325
|
16
|
-
|
251
|
37,347
|
||||||||||||||||||
Tax certificates
|
23,968
|
-
|
-
|
-
|
601
|
24,569
|
||||||||||||||||||
Consumer
|
926
|
213
|
-
|
-
|
-
|
1,139
|
||||||||||||||||||
Subtotal LHFI
|
167,004
|
103,362
|
37,285
|
15,599
|
21,432
|
344,682
|
||||||||||||||||||
Less: Deferred loan fees
|
(517
|
)
|
||||||||||||||||||||||
Total LHFI
|
$
|
344,165
|
As of December 31, 2013
|
30-59 Days
|
60-89 Days
|
Accruing
|
Total
|
|
|
||||||||||||||||||
(In thousands)
|
Past Due
|
Past Due
|
90+ Days
|
Non-accrual
|
Current
|
Total
|
||||||||||||||||||
Commercial real estate
|
$
|
996
|
$
|
-
|
$
|
-
|
$
|
2,325
|
$
|
144,972
|
$
|
148,293
|
||||||||||||
Construction and land development
|
-
|
-
|
-
|
2,650
|
42,611
|
45,261
|
||||||||||||||||||
Commercial & industrial
|
115
|
49
|
-
|
3,629
|
75,796
|
79,589
|
||||||||||||||||||
Multi-family
|
-
|
-
|
-
|
-
|
11,737
|
11,737
|
||||||||||||||||||
Residential real estate
|
458
|
262
|
-
|
632
|
24,183
|
25,535
|
||||||||||||||||||
Leases
|
485
|
247
|
-
|
467
|
41,325
|
42,524
|
||||||||||||||||||
Tax certificates
|
-
|
-
|
-
|
454
|
12,262
|
12,716
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
826
|
826
|
||||||||||||||||||
Total LHFI
|
$
|
2,054
|
$
|
558
|
$
|
-
|
$
|
10,157
|
$
|
353,712
|
$
|
366,481
|
As of December 31, 2012
|
30-59 Days
|
60-89 Days
|
Accruing
|
Total
|
|
|
||||||||||||||||||
(In thousands)
|
Past Due
|
Past Due
|
90+ Days
|
Non-accrual
|
Current
|
Total
|
||||||||||||||||||
Commercial real estate
|
$
|
1,548
|
$
|
1,486
|
$
|
-
|
$
|
10,345
|
$
|
153,736
|
$
|
167,115
|
||||||||||||
Construction and land development
|
-
|
-
|
-
|
4,280
|
32,935
|
37,215
|
||||||||||||||||||
Commercial & industrial
|
200
|
-
|
-
|
4,961
|
35,399
|
40,560
|
||||||||||||||||||
Multi-family
|
-
|
-
|
-
|
-
|
11,756
|
11,756
|
||||||||||||||||||
Residential real estate
|
562
|
486
|
-
|
994
|
22,939
|
24,981
|
||||||||||||||||||
Leases
|
325
|
16
|
-
|
251
|
36,755
|
37,347
|
||||||||||||||||||
Tax certificates
|
-
|
-
|
-
|
601
|
23,968
|
24,569
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
1,139
|
1,139
|
||||||||||||||||||
Subtotal LHFI
|
2,635
|
1,988
|
-
|
21,432
|
318,627
|
344,682
|
||||||||||||||||||
Less: Deferred loan fees
|
(517
|
)
|
||||||||||||||||||||||
Total LHFI
|
$
|
344,165
|
|
As of December 31, 2013
|
As of December 31, 2012
|
||||||||||||||
(In thousands)
|
Loan
balance
|
Specific
reserves
|
Loan
balance
|
Specific
reserves
|
||||||||||||
Non-accrual loans held for investment
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
2,325
|
$
|
331
|
$
|
10,345
|
$
|
835
|
||||||||
Construction and land development
|
2,650
|
-
|
4,280
|
820
|
||||||||||||
Commercial & industrial
|
3,629
|
452
|
4,961
|
255
|
||||||||||||
Residential real estate
|
632
|
19
|
994
|
14
|
||||||||||||
Leases
|
467
|
60
|
251
|
55
|
||||||||||||
Tax certificates
|
454
|
24
|
601
|
47
|
||||||||||||
Total non-accrual LHFI
|
$
|
10,157
|
$
|
886
|
$
|
21,432
|
$
|
2,026
|
||||||||
Non-accrual loans held for sale
|
||||||||||||||||
Commercial real estate
|
$
|
-
|
$
|
-
|
$
|
1,572
|
$
|
-
|
||||||||
Total non-accrual LHFS
|
$
|
-
|
$
|
-
|
$
|
1,572
|
$
|
-
|
||||||||
Total non-accrual loans
|
$
|
10,157
|
$
|
886
|
$
|
23,004
|
$
|
2,026
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Impaired LHFI with a valuation allowance
|
$
|
3,835
|
$
|
9,405
|
||||
Impaired LHFI without a valuation allowance
|
14,671
|
19,423
|
||||||
Impaired LHFS
|
-
|
1,572
|
||||||
Total impaired loans and leases
|
$
|
18,506
|
$
|
30,400
|
||||
Valuation allowance related to impaired LHFI
|
$
|
886
|
$
|
2,026
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Average investment in impaired loans and leases
|
$
|
24,714
|
$
|
39,412
|
||||
Interest income recognized on impaired loans and leases
|
$
|
559
|
$
|
366
|
||||
Interest income recognized on a cash basis on impaired loans and leases
|
$
|
27
|
$
|
66
|
|
As of December 31, 2012
|
|||||||||||||||
(In thousands)
|
Number of
loans
|
Accrual
Status
|
Non-Accrual
Status
|
Total TDRs
|
||||||||||||
Commercial real estate
|
4
|
$
|
1,664
|
$
|
854
|
$
|
2,518
|
|||||||||
Construction and land development
|
4
|
613
|
10,063
|
10,676
|
||||||||||||
Commercial & industrial
|
2
|
5,290
|
2,457
|
7,747
|
||||||||||||
Residential real estate
|
2
|
-
|
149
|
149
|
||||||||||||
Total
|
12
|
$
|
7,567
|
$
|
13,523
|
$
|
21,090
|
|
Modifications by type for the year ended December 31, 2013
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Number of
loans
|
Rate
|
Term
|
Payment
|
Combination
of types
|
Total
|
Pre-
Modification Outstanding
Recorded
Investment
|
Post-
Modification Outstanding
Recorded
Investment
|
||||||||||||||||||||||||
Commercial real estate
|
2
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,705
|
$
|
3,705
|
$
|
3,761
|
$
|
3,761
|
|||||||||||||||||
Commercial & industrial
|
1
|
-
|
-
|
-
|
82
|
82
|
87
|
87
|
||||||||||||||||||||||||
Total
|
3
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,787
|
$
|
3,787
|
$
|
3,848
|
$
|
3,848
|
|
Modifications by type for the year ended December 31, 2012
|
|||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Number of
loans
|
Rate
|
Term
|
Payment
|
Combination
of types
|
Total
|
Pre-
Modification Outstanding
Recorded
Investment
|
Post-
Modification Outstanding
Recorded
Investment
|
||||||||||||||||||||||||
Commercial real estate
|
2
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
7,624
|
$
|
7,624
|
$
|
9,426
|
$
|
9,426
|
|||||||||||||||||
Construction and land development
|
1
|
-
|
-
|
-
|
282
|
282
|
290
|
290
|
||||||||||||||||||||||||
Commercial & industrial
|
1
|
-
|
-
|
5,290
|
-
|
5,290
|
5,290
|
5,290
|
||||||||||||||||||||||||
Total
|
4
|
$
|
-
|
$
|
-
|
$
|
5,290
|
$
|
7,906
|
$
|
13,196
|
$
|
15,006
|
$
|
15,006
|
(In thousands)
|
Commercial
real estate
|
Construction
and land development
|
Commercial & industrial
|
Multi-family
|
Residential
real estate
|
Leases
|
Tax
certificates
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||||
Allowance for Loan and Leases Losses
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
8,750
|
$
|
2,987
|
$
|
1,924
|
$
|
654
|
$
|
1,098
|
$
|
1,108
|
$
|
472
|
$
|
29
|
$
|
239
|
$
|
17,261
|
||||||||||||||||||||
Charge-offs
|
(1,684
|
)
|
(820
|
)
|
(383
|
)
|
-
|
(46
|
)
|
(382
|
)
|
(578
|
)
|
-
|
-
|
(3,893
|
)
|
|||||||||||||||||||||||
Recoveries
|
600
|
297
|
17
|
-
|
158
|
29
|
74
|
-
|
-
|
1,175
|
||||||||||||||||||||||||||||||
(Credit) provision
|
(2,168
|
)
|
(148
|
)
|
1,448
|
(252
|
)
|
(737
|
)
|
468
|
587
|
(14
|
)
|
(56
|
)
|
(872
|
)
|
|||||||||||||||||||||||
Ending balance
|
$
|
5,498
|
$
|
2,316
|
$
|
3,006
|
$
|
402
|
$
|
473
|
$
|
1,223
|
$
|
555
|
$
|
15
|
$
|
183
|
$
|
13,671
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment
|
$
|
331
|
$
|
-
|
$
|
452
|
$
|
-
|
$
|
19
|
$
|
60
|
$
|
24
|
$
|
-
|
$
|
-
|
$
|
886
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment
|
$
|
5,167
|
$
|
2,316
|
$
|
2,554
|
$
|
402
|
$
|
454
|
$
|
1,163
|
$
|
531
|
$
|
15
|
$
|
183
|
$
|
12,785
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
LHFI
|
||||||||||||||||||||||||||||||||||||||||
Ending balance
|
$
|
148,293
|
$
|
45,261
|
$
|
79,589
|
$
|
11,737
|
$
|
25,535
|
$
|
42,524
|
$
|
12,716
|
$
|
826
|
$
|
-
|
$
|
366,481
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
$
|
5,325
|
$
|
3,907
|
$
|
8,049
|
$
|
-
|
$
|
632
|
$
|
139
|
$
|
454
|
$
|
-
|
$
|
-
|
$
|
18,506
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
142,968
|
$
|
41,354
|
$
|
71,540
|
$
|
11,737
|
$
|
24,903
|
$
|
42,385
|
$
|
12,262
|
$
|
826
|
$
|
-
|
$
|
347,975
|
|
As of December 31, 2013
|
|||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
Recorded
investment
|
Related
allowance
|
Average
recorded investment
|
Interest
income
recognized
|
|||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
$
|
4,429
|
$
|
4,158
|
$
|
-
|
$
|
7,956
|
$
|
73
|
||||||||||
Construction and land development
|
9,850
|
3,907
|
-
|
3,933
|
209
|
|||||||||||||||
Commercial and industrial
|
6,693
|
6,491
|
-
|
5,960
|
250
|
|||||||||||||||
Residential real estate
|
-
|
-
|
-
|
84
|
27
|
|||||||||||||||
Tax certificates
|
179
|
115
|
-
|
167
|
-
|
|||||||||||||||
Total:
|
$
|
21,151
|
$
|
14,671
|
$
|
-
|
$
|
18,100
|
$
|
559
|
||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial real estate
|
$
|
1,435
|
$
|
1,435
|
$
|
331
|
$
|
1,879
|
$
|
-
|
||||||||||
Construction and land development
|
-
|
-
|
-
|
381
|
-
|
|||||||||||||||
Commercial and industrial
|
2,592
|
1,290
|
452
|
2,456
|
-
|
|||||||||||||||
Residential real estate
|
827
|
631
|
19
|
492
|
-
|
|||||||||||||||
Leases
|
139
|
139
|
60
|
106
|
-
|
|||||||||||||||
Tax certificates
|
4,322
|
340
|
24
|
341
|
-
|
|||||||||||||||
Total:
|
$
|
9,315
|
$
|
3,835
|
$
|
886
|
$
|
5,655
|
$
|
-
|
|
As of December 31, 2012
|
|||||||||||||||||||
(In thousands)
|
Unpaid
principal
balance
|
Recorded
investment
|
Related
allowance
|
Average
recorded
investment
|
Interest
income
recognized
|
|||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
$
|
10,417
|
$
|
8,623
|
$
|
-
|
$
|
11,163
|
$
|
78
|
||||||||||
Construction and land development
|
6,250
|
3,464
|
-
|
10,059
|
187
|
|||||||||||||||
Commercial and industrial
|
7,790
|
6,820
|
-
|
5,545
|
73
|
|||||||||||||||
Multi-family
|
-
|
-
|
-
|
780
|
-
|
|||||||||||||||
Residential real estate
|
572
|
516
|
-
|
490
|
21
|
|||||||||||||||
Tax certificates
|
-
|
-
|
-
|
583
|
-
|
|||||||||||||||
Total:
|
$
|
25,029
|
$
|
19,423
|
$
|
-
|
$
|
28,620
|
$
|
359
|
||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial real estate
|
$
|
4,136
|
$
|
2,335
|
$
|
835
|
$
|
1,526
|
$
|
-
|
||||||||||
Construction and land development
|
6,180
|
2,479
|
820
|
923
|
-
|
|||||||||||||||
Commercial and industrial
|
9,585
|
3,431
|
255
|
682
|
-
|
|||||||||||||||
Multi-family
|
-
|
-
|
-
|
383
|
-
|
|||||||||||||||
Residential real estate
|
685
|
478
|
14
|
714
|
7
|
|||||||||||||||
Leases
|
81
|
81
|
55
|
86
|
-
|
|||||||||||||||
Tax certificates
|
4,408
|
601
|
47
|
288
|
-
|
|||||||||||||||
Total:
|
$
|
25,075
|
$
|
9,405
|
$
|
2,026
|
$
|
4,602
|
$
|
7
|
|
For the year ended December 31, 2013
|
|||||||||||
(In thousands)
|
Loans
|
Tax Liens
|
Total
|
|||||||||
Beginning balance
|
$
|
11,365
|
$
|
2,070
|
$
|
13,435
|
||||||
Net proceeds from sales
|
(8,869
|
)
|
(3,910
|
)
|
(12,779
|
)
|
||||||
Net gain on sales
|
228
|
1,199
|
1,427
|
|||||||||
Assets acquired on non-accrual loans
|
100
|
8,951
|
9,051
|
|||||||||
Impairment charge
|
(1,099
|
)
|
(418
|
)
|
(1,517
|
)
|
||||||
Ending balance
|
$
|
1,725
|
$
|
7,892
|
$
|
9,617
|
|
|
As of December 31,
|
|||||||
(In thousands)
|
Estimated Useful Lives
|
2013
|
2012
|
||||||
Land
|
|
$
|
2,200
|
$
|
2,396
|
||||
Buildings and leasehold improvements
|
5 - 39 years
|
6,225
|
7,554
|
||||||
Furniture, fixtures and equipment
|
3 - 7 years
|
7,006
|
6,667
|
||||||
|
|
15,431
|
16,617
|
||||||
Less accumulated depreciation and amortization
|
|
(10,956
|
)
|
(11,385
|
)
|
||||
Premises and equipment, net
|
|
$
|
4,475
|
$
|
5,232
|
|
As of
|
|||
(In thousands)
|
December 31, 2013
|
|||
2014
|
$
|
858
|
||
2015
|
874
|
|||
2016
|
886
|
|||
2017
|
860
|
|||
2018
|
818
|
|||
Thereafter
|
2,070
|
|||
Total lease commitments
|
$
|
6,366
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Demand
|
$
|
60,473
|
$
|
58,531
|
||||
NOW
|
45,375
|
43,920
|
||||||
Money Market
|
164,678
|
179,359
|
||||||
Savings
|
17,593
|
17,472
|
||||||
Time deposits (over $100)
|
92,763
|
91,233
|
||||||
Time deposits (under $100)
|
148,082
|
164,402
|
||||||
Total deposits
|
$
|
528,964
|
$
|
554,917
|
|
As of
|
|||
(In thousands)
|
December 31, 2013
|
|||
2014
|
$
|
117,181
|
||
2015
|
88,948
|
|||
2016
|
11,997
|
|||
2017
|
5,373
|
|||
2018
|
3,204
|
|||
Thereafter
|
14,142
|
|||
Total certificates of deposit
|
$
|
240,845
|
|
As of December 31,
|
|||||||||||||||
(Dollars in thousands)
|
2013
|
2012
|
||||||||||||||
|
Amount
|
Rate
|
Amount
|
Rate
|
||||||||||||
Advances maturing in
|
|
|
|
|
||||||||||||
2013
|
$
|
-
|
-
|
$
|
50,000
|
2.64
|
%
|
|||||||||
2014
|
10,000
|
0.24
|
%
|
|||||||||||||
2015
|
10,000
|
0.71
|
%
|
-
|
-
|
|||||||||||
2016
|
10,000
|
1.11
|
%
|
-
|
-
|
|||||||||||
2017
|
25,000
|
1.46
|
%
|
15,000
|
1.39
|
%
|
||||||||||
2018
|
10,000
|
2.01
|
%
|
|||||||||||||
Total FHLB borrowings
|
$
|
65,000
|
$
|
65,000
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Income tax expense
|
|
|
||||||
Current
|
$
|
42
|
$
|
-
|
||||
Deferred
|
-
|
-
|
||||||
Income tax expense
|
$
|
42
|
$
|
-
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Computed tax expense (benefit) at statutory rate
|
$
|
731
|
$
|
(5,313
|
)
|
|||
Tax-exempt income
|
(22
|
)
|
(42
|
)
|
||||
Department of Justice fine
|
-
|
680
|
||||||
Nondeductible expense
|
21
|
29
|
||||||
Bank owned life insurance
|
(183
|
)
|
(188
|
)
|
||||
Adjustment to prior year items
|
1,933
|
-
|
||||||
(Decrease) increase in valuation allowance
|
(2,438
|
)
|
4,834
|
|||||
Applicable income tax expense
|
$
|
42
|
$
|
-
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Deferred tax assets
|
|
|
||||||
Allowance for loan and lease losses
|
$
|
4,648
|
$
|
5,863
|
||||
Net operating loss carry forward |
18,908
|
21,988
|
||||||
Asset valuation reserves
|
34
|
79
|
||||||
Escrow settlement reserves
|
561
|
-
|
||||||
Security writedowns
|
2,193
|
1,429
|
||||||
OREO writedowns
|
1,490
|
4,475
|
||||||
Investment in partnerships
|
1,805
|
34
|
||||||
Pension obligations
|
4,926
|
5,745
|
||||||
Unrealized losses on debt securities
|
2,171
|
-
|
||||||
Accrued stock-based compensation
|
143
|
804
|
||||||
Non-accrual interest
|
134
|
277
|
||||||
Capital loss carryovers
|
2,892
|
1,550
|
||||||
Charitable contribution carryovers
|
14
|
11
|
||||||
Other
|
77
|
139
|
||||||
Deferred tax assets before valuation allowance
|
39,996
|
42,394
|
||||||
Less valuation allowance
|
(37,159
|
)
|
(39,597
|
)
|
||||
Total deferred tax assets
|
2,837
|
2,797
|
||||||
Deferred tax liabilities
|
||||||||
Penalties on delinquent tax certificates
|
39
|
224
|
||||||
Unrealized gains on AFS debt investment securities
|
-
|
1,665
|
||||||
Unrealized gains on AFS equity securities
|
429
|
145
|
||||||
Prepaid deductions
|
190
|
285
|
||||||
Other
|
8
|
64
|
||||||
Total deferred tax liabilities
|
666
|
2,383
|
||||||
Net deferred tax assets, included in other assets
|
$
|
2,171
|
$
|
414
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Financial instruments whose contract amounts represent credit risk
|
|
|
||||||
Open-end lines of credit
|
$
|
21,182
|
$
|
20,515
|
||||
Commitments to extend credit
|
200
|
24,030
|
||||||
Standby letters of credit and financial guarantees written
|
2,679
|
1,199
|
|
|
|
|
|
To be well capitalized
|
|||||||||||||||||||
|
|
|
For capital
|
capitalized under prompt
|
||||||||||||||||||||
|
Actual
|
adequacy purposes
|
corrective action provision
|
|||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
||||||||||||||||||
At December 31, 2013
|
$
|
71,417
|
15.61
|
%
|
$
|
36,590
|
8.00
|
%
|
$
|
45,737
|
10.00
|
%
|
||||||||||||
At December 31, 2012
|
$
|
67,338
|
15.22
|
%
|
$
|
35,386
|
8.00
|
%
|
$
|
44,233
|
10.00
|
%
|
||||||||||||
Tier I capital (to risk-weighted assets)
|
||||||||||||||||||||||||
At December 31, 2013
|
$
|
65,602
|
14.34
|
%
|
$
|
18,295
|
4.00
|
%
|
$
|
27,442
|
6.00
|
%
|
||||||||||||
At December 31, 2012
|
$
|
61,664
|
13.94
|
%
|
$
|
17,693
|
4.00
|
%
|
$
|
26,540
|
6.00
|
%
|
||||||||||||
Tier I capital (to average assets, leverage)
|
||||||||||||||||||||||||
At December 31, 2013
|
$
|
65,602
|
9.13
|
%
|
$
|
28,739
|
4.00
|
%
|
$
|
35,924
|
5.00
|
%
|
||||||||||||
At December 31, 2012
|
$
|
61,664
|
8.00
|
%
|
$
|
30,842
|
4.00
|
%
|
$
|
38,552
|
5.00
|
%
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
RAP net loss
|
$
|
(139
|
)
|
$
|
(17,974
|
)
|
||
Tax lien adjustment, net of noncontrolling interest
|
2,844
|
4,731
|
||||||
U.S. GAAP net income (loss)
|
$
|
2,705
|
$
|
(13,243
|
)
|
|
At December 31, 2013
|
At December 31, 2012
|
||||||||||||||
|
As reported
|
As adjusted
|
As reported
|
As adjusted
|
||||||||||||
|
under RAP
|
for U.S. GAAP
|
under RAP
|
for U.S. GAAP
|
||||||||||||
Total capital (to risk-weighted assets)
|
15.61
|
%
|
16.49
|
%
|
15.22
|
%
|
16.73
|
%
|
||||||||
Tier I capital (to risk-weighted assets)
|
14.34
|
%
|
15.22
|
%
|
13.94
|
%
|
15.44
|
%
|
||||||||
Tier I capital (to average assets, leverage)
|
9.13
|
%
|
9.73
|
%
|
8.00
|
%
|
8.93
|
%
|
|
|
|
|
|
To be well capitalized
|
|||||||||||||||||||
|
|
|
For capital
|
capitalized under prompt
|
||||||||||||||||||||
|
Actual
|
adequacy purposes
|
corrective action provision
|
|||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
||||||||||||||||||
At December 31, 2013
|
$
|
84,384
|
18.09
|
%
|
$
|
37,315
|
8.00
|
%
|
N/A
|
N/A
|
|
|||||||||||||
At December 31, 2012
|
$
|
84,073
|
18.46
|
%
|
$
|
36,429
|
8.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Tier I capital (to risk-weighted assets)
|
||||||||||||||||||||||||
At December 31, 2013
|
$
|
71,432
|
15.31
|
%
|
$
|
18,658
|
4.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
At December 31, 2012
|
$
|
71,138
|
15.62
|
%
|
$
|
18,214
|
4.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
Tier I Capital (to average assets, leverage)
|
||||||||||||||||||||||||
At December 31, 2013
|
$
|
71,432
|
9.79
|
%
|
$
|
29,178
|
4.00
|
%
|
N/A
|
|
N/A
|
|
||||||||||||
At December 31, 2012
|
$
|
71,138
|
9.05
|
%
|
$
|
31,443
|
4.00
|
%
|
N/A
|
|
N/A
|
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
U.S. GAAP net income (loss)
|
$
|
2,109
|
$
|
(15,625
|
)
|
|||
Tax lien adjustment, net of noncontrolling interest
|
(2,844
|
)
|
(4,731
|
)
|
||||
RAP net loss
|
$
|
(735
|
)
|
$
|
(20,356
|
)
|
|
At December 31, 2013
|
At December 31, 2012
|
||||||||||||||
|
As reported
|
As adjusted
|
As reported
|
As adjusted
|
||||||||||||
|
under U.S. GAAP
|
for RAP
|
under U.S. GAAP
|
for RAP
|
||||||||||||
Total capital (to risk-weighted assets)
|
18.09
|
%
|
17.24
|
%
|
18.46
|
%
|
17.01
|
%
|
||||||||
Tier I capital (to risk-weighted assets)
|
15.31
|
%
|
14.10
|
%
|
15.62
|
%
|
13.55
|
%
|
||||||||
Tier I capital (to average assets, leverage)
|
9.79
|
%
|
8.98
|
%
|
9.05
|
%
|
7.79
|
%
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Change in benefit obligation
|
|
|
||||||
Benefit obligation at beginning of year
|
$
|
16,897
|
$
|
14,942
|
||||
Service cost
|
81
|
272
|
||||||
Interest cost
|
623
|
584
|
||||||
Benefits paid
|
(981
|
)
|
(556
|
)
|
||||
Actuarial (gain) loss
|
(2,132
|
)
|
1,655
|
|||||
Benefits obligation at end of year
|
$
|
14,488
|
$
|
16,897
|
||||
Unrecognized prior service cost
|
179
|
269
|
||||||
Unrecognized actuarial loss
|
2,750
|
5,119
|
||||||
|
$
|
2,929
|
$
|
5,388
|
|
As of December 31,
|
|||||||
|
2013
|
2012
|
||||||
Discount rate
|
4.37
|
%
|
3.25
|
%
|
||||
Rate of compensation increase
|
4.00
|
%
|
4.00
|
%
|
|
For the years ended December 31,
|
|||||||
|
2013
|
2012
|
||||||
Discount rate
|
4.37
|
%
|
4.00
|
%
|
||||
Rate of compensation increase
|
4.00
|
%
|
4.00
|
%
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Service cost
|
$
|
81
|
$
|
272
|
||||
Interest cost
|
623
|
584
|
||||||
Amortization prior service cost
|
90
|
90
|
||||||
Amortization net actuarial loss
|
238
|
381
|
||||||
Net periodic benefit cost
|
$
|
1,032
|
$
|
1,327
|
|
As of December 31, 2013
|
|||
|
Non-Qualified
|
|||
(In thousands)
|
Pension Plans
|
|||
2014
|
$
|
970
|
||
2015
|
987
|
|||
2016
|
1,015
|
|||
2017
|
1,015
|
|||
2018
|
1,015
|
|||
Next five years thereafter
|
5,610
|
|
2013
|
2012
|
||||||||||||||||||||||
|
|
Weighted
|
Weighted
|
(1) |
|
Weighted
|
||||||||||||||||||
|
|
Average
|
Average
|
Average
|
|
Average
|
||||||||||||||||||
|
|
Exercise
|
Remaining
|
Intrinsic
|
|
Exercise
|
||||||||||||||||||
|
Options
|
Price
|
Term (yrs)
|
Value
|
Options
|
Price
|
||||||||||||||||||
Options outstanding at beginning of year
|
58,306
|
$
|
21.15
|
1.2
|
68,620
|
$
|
20.66
|
|||||||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Forfeited
|
(24,286
|
)
|
21.24
|
-
|
-
|
|||||||||||||||||||
Expired
|
(8,350
|
)
|
18.27
|
(10,314
|
)
|
17.91
|
||||||||||||||||||
Options outstanding at the end of the year
|
25,670
|
$
|
22.00
|
1.5
|
$
|
-
|
58,306
|
$
|
21.15
|
|||||||||||||||
Options exercisable at the end of the year
|
25,670
|
$
|
22.00
|
1.5
|
$
|
-
|
58,306
|
$
|
21.15
|
|
Options outstanding and exercisable
|
|||||||||||||
|
|
Weighted
|
Weighted
|
|||||||||||
|
|
Average
|
Average
|
|||||||||||
Range of
|
Number
|
Exercise
|
Remaining
|
|||||||||||
exercise prices
|
Outstanding
|
Price
|
Term (yrs)
|
|||||||||||
$21.00 - $23.00
|
25,670
|
$
|
22.00
|
1.5
|
||||||||||
25,670
|
$
|
22.00
|
1.5
|
|
2013
|
2012
|
||||||||||||||||||||||
|
|
Weighted
|
Weighted
|
(1) |
|
Weighted
|
||||||||||||||||||
|
|
Average
|
Average
|
Average
|
|
Average
|
||||||||||||||||||
|
|
Exercise
|
Remaining
|
Intrinsic
|
|
Exercise
|
||||||||||||||||||
|
Options
|
Price
|
Term (yrs)
|
Value
|
Options
|
Price
|
||||||||||||||||||
Options outstanding at beginning of year
|
217,561
|
$
|
21.50
|
1.3
|
335,919
|
$
|
21.01
|
|||||||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Forfeited
|
(119,137
|
)
|
21.53
|
(74,569
|
)
|
21.42
|
||||||||||||||||||
Expired
|
(15,644
|
)
|
18.27
|
(43,789
|
)
|
17.91
|
||||||||||||||||||
Options outstanding at the end of the year
|
82,780
|
$
|
22.06
|
1.1
|
$
|
-
|
217,561
|
$
|
21.50
|
|||||||||||||||
Options exercisable at the end of the year
|
82,780
|
$
|
22.06
|
1.1
|
$
|
-
|
217,561
|
$
|
21.50
|
|
Options outstanding and exercisable
|
|||||||||||||
|
|
Weighted
|
Weighted
|
|||||||||||
|
|
Average
|
Average
|
|||||||||||
Range of
|
Number
|
Exercise
|
Remaining
|
|||||||||||
exercise prices
|
Outstanding
|
Price
|
Term (yrs)
|
|||||||||||
$21.00 - $23.00
|
82,780
|
$
|
22.06
|
1.1
|
||||||||||
82,780
|
$
|
22.06
|
1.1
|
|
2013
|
2012
|
||||||||||||||||||||||
|
|
Weighted
|
Weighted
|
(1) |
|
|
Weighted
|
|||||||||||||||||
|
|
Average
|
Average
|
Average
|
|
Average
|
||||||||||||||||||
|
|
Exercise
|
Remaining
|
Intrinsic
|
|
Exercise
|
||||||||||||||||||
|
Options
|
Price
|
Term (yrs)
|
Value
|
Options
|
Price
|
||||||||||||||||||
Options outstanding at beginning of year
|
86,226
|
$
|
9.22
|
5.4
|
116,440
|
$
|
9.73
|
|||||||||||||||||
Granted
|
15,000
|
1.36
|
-
|
-
|
||||||||||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Forfeited
|
(11,840
|
)
|
8.83
|
(30,214
|
)
|
11.19
|
||||||||||||||||||
Expired
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Options outstanding at the end of the year
|
89,386
|
$
|
7.95
|
4.9
|
$
|
-
|
86,226
|
$
|
9.22
|
|||||||||||||||
Options exercisable at the end of the year
|
74,386
|
$
|
9.28
|
4.0
|
$
|
-
|
75,706
|
$
|
9.88
|
|||||||||||||||
Weighted-average fair value of options granted during the year
|
$
|
0.98
|
$
|
-
|
$
|
-
|
|
Options issued and outstanding
|
Options exercisable
|
||||||||||||||||||||
|
|
Weighted
|
Weighted
|
|
Weighted
|
|||||||||||||||||
|
|
Average
|
Average
|
|
Average
|
|||||||||||||||||
Range of
|
Number
|
Exercise
|
Remaining
|
Number
|
Exercise
|
|||||||||||||||||
exercise prices
|
Outstanding
|
Price
|
Term (yrs)
|
Outstanding
|
Price
|
|||||||||||||||||
$
|
1.36
|
15,000
|
$
|
1.36
|
9.3
|
-
|
$
|
-
|
||||||||||||||
$
|
4.50
|
51,550
|
4.50
|
4.3
|
51,550
|
4.50
|
||||||||||||||||
$
|
20.08
|
22,836
|
20.08
|
3.3
|
22,836
|
20.08
|
||||||||||||||||
89,386
|
$
|
7.95
|
4.9
|
74,386
|
$
|
9.28
|
|
|
Weighted
|
||||||
|
|
Average
|
||||||
|
Number
|
Exercise
|
||||||
|
of shares
|
Price
|
||||||
Non-vested options December 31, 2012
|
10,520
|
$
|
4.50
|
|||||
Granted
|
15,000
|
1.36
|
||||||
Forfeited
|
(1,590
|
)
|
4.50
|
|||||
Vested
|
(8,930
|
)
|
4.50
|
|||||
Non-vested options December 31, 2013
|
15,000
|
$
|
1.36
|
|
For the year ended December 31, 2013
|
|||||||||||
|
Income
|
Average shares
|
Per share
|
|||||||||
(In thousands, except for per share data)
|
(numerator)
|
(denominator)
|
Amount
|
|||||||||
Basic and Diluted EPS
|
|
|
|
|||||||||
Income available to common shareholders
|
$
|
34
|
13,279
|
$
|
0.00
|
|
For the year ended December 31, 2012
|
|||||||||||
|
Loss
|
Average shares
|
Per share
|
|||||||||
(In thousands, except for per share data)
|
(numerator)
|
(denominator)
|
Amount
|
|||||||||
Basic and Diluted EPS
|
|
|
|
|||||||||
Loss available to common shareholders
|
$
|
(17,663
|
)
|
13,257
|
$
|
(1.33
|
)
|
|
For the year ended December 31, 2013
|
|||||||||||
(In thousands)
|
Before tax
amount
|
Tax
expense
(benefit)
|
Net of tax
amount
|
|||||||||
Unrealized losses on investment securities:
|
|
|
|
|||||||||
Unrealized holding losses arising during period
|
$
|
(10,291
|
)
|
$
|
(3,572
|
)
|
$
|
(6,719
|
)
|
|||
Less reclassification adjustment for gains realized in net income
|
158
|
54
|
104
|
|||||||||
Unrealized losses on investment securities
|
(10,449
|
)
|
(3,626
|
)
|
(6,823
|
)
|
||||||
Unrecognized benefit obligation expense:
|
||||||||||||
Actuarial gain
|
950
|
323
|
627
|
|||||||||
Less reclassification adjustment for amortization
|
(328
|
)
|
(112
|
)
|
(216
|
)
|
||||||
|
1,278
|
435
|
843
|
|||||||||
Other comprehensive loss, net
|
$
|
(9,171
|
)
|
$
|
(3,191
|
)
|
$
|
(5,980
|
)
|
|
For the year ended December 31, 2012
|
|||||||||||
(In thousands)
|
Before tax
amount
|
Tax
expense
(benefit)
|
Net of tax
amount
|
|||||||||
Unrealized losses on investment securities:
|
|
|
|
|||||||||
Unrealized holding losses arising during period
|
$
|
(1,573
|
)
|
$
|
(535
|
)
|
$
|
(1,038
|
)
|
|||
Less adjustment for impaired investments
|
(2,359
|
)
|
(802
|
)
|
(1,557
|
)
|
||||||
Less reclassification adjustment for gains realized in net loss
|
1,030
|
350
|
680
|
|||||||||
Unrealized losses on investment securities
|
(244
|
)
|
(83
|
)
|
(161
|
)
|
||||||
Unrecognized benefit obligation expense:
|
||||||||||||
Actuarial loss
|
(1,655
|
)
|
(563
|
)
|
(1,092
|
)
|
||||||
Less reclassification adjustment for amortization
|
(471
|
)
|
(160
|
)
|
(311
|
)
|
||||||
|
(1,184
|
)
|
(403
|
)
|
(781
|
)
|
||||||
Other comprehensive loss, net
|
$
|
(1,428
|
)
|
$
|
(486
|
)
|
$
|
(942
|
)
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Unrecognized benefit obligation
|
$
|
(2,929
|
)
|
$
|
(3,556
|
)
|
||
Unrealized gains on AFS investments
|
(3,193
|
)
|
3,414
|
|||||
Accumulated other comprehensive loss
|
$
|
(6,122
|
)
|
$
|
(142
|
)
|
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 2 includes debt securities with quoted prices that are traded less frequently then exchange-traded instruments. Valuation techniques include matrix pricing 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.
|
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).
|
As of December 31, 2013
|
Fair Value Measurements Using
|
|
||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
||||||||||||
Assets
|
|
|
|
|
||||||||||||
Investment securities available-for-sale
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
-
|
$
|
62,036
|
$
|
-
|
$
|
62,036
|
||||||||
Mortgage-backed securities-residential
|
-
|
32,097
|
-
|
32,097
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
-
|
189,103
|
-
|
189,103
|
||||||||||||
Non-agency
|
-
|
4,479
|
-
|
4,479
|
||||||||||||
Corporate bonds
|
-
|
9,438
|
-
|
9,438
|
||||||||||||
Municipal bonds
|
-
|
6,900
|
-
|
6,900
|
||||||||||||
Other securities
|
-
|
-
|
4,625
|
4,625
|
||||||||||||
Common stocks
|
49
|
-
|
-
|
49
|
||||||||||||
Total available for sale
|
$
|
49
|
$
|
304,053
|
$
|
4,625
|
$
|
308,727
|
||||||||
|
||||||||||||||||
As of December 31, 2012
|
Fair Value Measurements Using
|
|||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
||||||||||||
Assets
|
||||||||||||||||
Investment securities available-for-sale
|
||||||||||||||||
U.S. government agencies
|
$
|
-
|
$
|
66,444
|
$
|
-
|
$
|
66,444
|
||||||||
Mortgage-backed securities-residential
|
-
|
30,509
|
-
|
30,509
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by U.S. government agencies
|
-
|
233,976
|
-
|
233,976
|
||||||||||||
Non-agency
|
-
|
1,011
|
-
|
1,011
|
||||||||||||
Corporate bonds
|
-
|
7,437
|
-
|
7,437
|
||||||||||||
Municipal bonds
|
-
|
5,615
|
-
|
5,615
|
||||||||||||
Other securities
|
-
|
-
|
4,164
|
4,164
|
||||||||||||
Common stocks
|
47
|
-
|
-
|
47
|
||||||||||||
Total available for sale
|
$
|
47
|
$
|
344,992
|
$
|
4,164
|
$
|
349,203
|
(In thousands)
|
Other
|
|||
Investment Securities Available for Sale
|
securities
|
|||
|
|
|||
Beginning balance January 1, 2013
|
$
|
4,164
|
||
Total gains/(losses) - (realized/unrealized):
|
||||
Included in earnings
|
94
|
|||
Included in other comprehensive income
|
850
|
|||
Purchases
|
70
|
|||
Sales and calls
|
(553
|
)
|
||
Transfers in and/or out of Level 3
|
-
|
|||
Ending balance December 31, 2013
|
$
|
4,625
|
|
Trust
|
|
|
|||||||||
(In thousands)
|
preferred
|
Other
|
|
|||||||||
Investment Securities Available for Sale
|
securities
|
securities
|
Total
|
|||||||||
|
|
|
|
|||||||||
Beginning balance January 1, 2012
|
$
|
12,603
|
$
|
6,918
|
$
|
19,521
|
||||||
Total gains/(losses) - (realized/unrealized):
|
||||||||||||
Included in earnings
|
126
|
(1,817
|
)
|
(1,691
|
)
|
|||||||
Included in other comprehensive income
|
(1,938
|
)
|
79
|
(1,859
|
)
|
|||||||
Purchases
|
-
|
788
|
788
|
|||||||||
Sales and calls
|
(10,773
|
)
|
(1,804
|
)
|
(12,577
|
)
|
||||||
Amortization of premium
|
(18
|
)
|
-
|
(18
|
)
|
|||||||
Transfers in and/or out of Level 3
|
-
|
-
|
-
|
|||||||||
Ending balance December 31, 2012
|
$
|
-
|
$
|
4,164
|
$
|
4,164
|
As of December 31, 2013
|
Fair Value Measurements Using
|
|
||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
||||||||||||
Assets
|
|
|
|
|
||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
4,073
|
$
|
4,073
|
||||||||
Other real estate owned
|
-
|
-
|
9,182
|
9,182
|
||||||||||||
Loans and leases held for sale
|
-
|
-
|
1,446
|
1,446
|
As of December 31, 2012
|
Fair Value Measurements Using
|
|
||||||||||||||
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
||||||||||||
Assets
|
|
|
|
|
||||||||||||
Impaired loans
|
$
|
-
|
$
|
-
|
$
|
9,180
|
$
|
9,180
|
||||||||
Other real estate owned
|
-
|
-
|
7,632
|
7,632
|
||||||||||||
Loans and leases held for sale
|
-
|
-
|
1,572
|
1,572
|
|
Qualitative Information about Level 3 Fair Value Measurements
|
|||||||||
As of December 31, 2013
|
|
Valuation
|
Unobservable
|
Range (Weighted
|
||||||
(In thousands)
|
Fair Value
|
Techniques
|
Input
|
Average)
|
||||||
Impaired loans and leases
|
$
|
4,073
|
Appraisal of collateral (1)
|
Appraisal adjustments
|
0.0% to -25.0% (-2.0%)
|
|||||
|
|
Liquidation expenses
|
0.0% to -23.2% (-6.7%)
|
|||||||
|
|
|
|
|||||||
|
Salvageable value of
|
|
0.0
|
%
|
||||||
|
collateral (2)
|
|
||||||||
|
|
|
||||||||
Other real estate owned
|
9,182
|
Appraisal of collateral (1)
|
Appraisal adjustments
|
0.0% to -62.5% (-11.2%)
|
||||||
|
Sales prices
|
Liquidation expenses
|
-2.8% to -6.8% (-5.0%)
|
|||||||
|
|
|
||||||||
Loans and leases held for sale
|
1,446
|
Sales prices (3)
|
|
(1) | Appraisals or brokers opinions of collateral values may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. Fair value may also be based on negotiated settlements with the borrower. |
(2) | Leases are measured using the salvageable value of the collateral. |
(3) | Fair value was based on agreement with specific buyer. |
|
|
|
Fair Value Measurements
|
|||||||||||||||||
|
|
|
At December 31, 2013
|
|||||||||||||||||
|
|
|
Quoted Prices
|
|
|
|||||||||||||||
|
|
|
in Active
|
Significant
|
|
|||||||||||||||
|
|
|
Markets for
|
Other
|
Significant
|
|||||||||||||||
|
|
|
Identical
|
Observable
|
Unobservable
|
|||||||||||||||
|
Carrying
|
Estimated
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||||
(In thousands)
|
amount
|
fair value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
Financial Assets:
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents
|
$
|
16,844
|
$
|
16,844
|
$
|
16,844
|
$
|
-
|
$
|
-
|
||||||||||
AFS investment securities
|
308,727
|
308,727
|
49
|
304,053
|
4,625
|
|||||||||||||||
Other investment
|
2,250
|
2,250
|
-
|
-
|
2,250
|
|||||||||||||||
Federal Home Loan Bank stock
|
4,204
|
4,204
|
-
|
-
|
4,204
|
|||||||||||||||
Loans held for sale
|
1,446
|
1,446
|
-
|
-
|
1,446
|
|||||||||||||||
Loans, net
|
352,810
|
349,336
|
-
|
-
|
349,336
|
|||||||||||||||
Accrued interest receivable
|
7,054
|
7,054
|
-
|
7,054
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Demand deposits
|
60,473
|
60,473
|
-
|
60,473
|
-
|
|||||||||||||||
NOW and money markets
|
210,053
|
210,053
|
-
|
210,053
|
-
|
|||||||||||||||
Savings
|
17,593
|
17,593
|
-
|
17,593
|
-
|
|||||||||||||||
Time deposits
|
240,845
|
239,102
|
-
|
239,102
|
-
|
|||||||||||||||
Short-term borrowings
|
10,000
|
10,000
|
10,000
|
-
|
-
|
|||||||||||||||
Long-term borrowings
|
97,881
|
94,896
|
-
|
94,896
|
-
|
|||||||||||||||
Subordinated debt
|
25,774
|
26,000
|
-
|
26,000
|
-
|
|||||||||||||||
Accrued interest payable
|
965
|
965
|
-
|
965
|
-
|
|
|
|
Fair Value Measurements
|
|||||||||||||||||
|
|
|
At December 31, 2012
|
|||||||||||||||||
|
|
|
Quoted Prices
|
|
|
|||||||||||||||
|
|
|
in Active
|
Significant
|
|
|||||||||||||||
|
|
|
Markets for
|
Other
|
Significant
|
|||||||||||||||
|
|
|
Identical
|
Observable
|
Unobservable
|
|||||||||||||||
|
Carrying
|
Estimated
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||||
(In thousands)
|
amount
|
fair value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
Financial Assets:
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents
|
$
|
28,802
|
$
|
28,802
|
$
|
28,802
|
$
|
-
|
$
|
-
|
||||||||||
AFS investment securities
|
349,203
|
349,203
|
47
|
344,992
|
4,164
|
|||||||||||||||
Other investment
|
2,250
|
2,250
|
-
|
-
|
2,250
|
|||||||||||||||
Federal Home Loan Bank stock
|
6,011
|
6,011
|
-
|
-
|
6,011
|
|||||||||||||||
Loans held for sale
|
1,572
|
1,572
|
-
|
-
|
1,572
|
|||||||||||||||
Loans, net
|
326,904
|
330,260
|
-
|
-
|
330,260
|
|||||||||||||||
Accrued interest receivable
|
10,256
|
10,256
|
-
|
10,256
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Demand deposits
|
58,531
|
58,531
|
-
|
58,531
|
-
|
|||||||||||||||
NOW and money markets
|
223,279
|
223,279
|
-
|
223,279
|
-
|
|||||||||||||||
Savings
|
17,472
|
17,472
|
-
|
17,472
|
-
|
|||||||||||||||
Time deposits
|
255,635
|
251,532
|
-
|
251,532
|
-
|
|||||||||||||||
Long-term borrowings
|
108,333
|
102,824
|
-
|
102,824
|
-
|
|||||||||||||||
Subordinated debt
|
25,774
|
23,837
|
-
|
23,837
|
-
|
|||||||||||||||
Accrued interest payable
|
3,760
|
3,760
|
-
|
3,760
|
-
|
(In thousands)
|
Community
|
Tax Lien
|
|
|||||||||
December 31, 2013
|
Banking
|
Operation
|
Consolidated
|
|||||||||
|
|
|
|
|||||||||
Total assets
|
$
|
707,022
|
$
|
26,228
|
$
|
733,250
|
||||||
Total deposits
|
528,964
|
-
|
528,964
|
|||||||||
|
||||||||||||
Interest income
|
$
|
25,097
|
$
|
2,427
|
$
|
27,524
|
||||||
Interest expense
|
5,899
|
1,458
|
7,357
|
|||||||||
Net interest income
|
19,198
|
969
|
20,167
|
|||||||||
(Credit) provision for loan and lease losses
|
(1,459
|
)
|
587
|
(872
|
)
|
|||||||
Total non-interest income
|
5,476
|
1,388
|
6,864
|
|||||||||
Total non-interest expenses
|
21,959
|
4,371
|
26,330
|
|||||||||
Income tax (benefit) expense
|
42
|
-
|
42
|
|||||||||
Net income (loss)
|
$
|
4,132
|
$
|
(2,601
|
)
|
$
|
1,531
|
|||||
Noncontrolling interest
|
462
|
(1,040
|
)
|
(578
|
)
|
|||||||
Net income (loss) attributable to Royal Bancshares
|
$
|
3,670
|
$
|
(1,561
|
)
|
$
|
2,109
|
(In thousands)
|
Community
|
Tax Lien
|
|
|||||||||
December 31, 2012
|
Banking
|
Operation
|
Consolidated
|
|||||||||
|
|
|
|
|||||||||
Total assets
|
$
|
732,137
|
$
|
37,318
|
$
|
769,455
|
||||||
Total deposits
|
554,917
|
-
|
554,917
|
|||||||||
|
||||||||||||
Interest income
|
$
|
26,956
|
$
|
5,025
|
$
|
31,981
|
||||||
Interest expense
|
7,202
|
2,697
|
9,899
|
|||||||||
Net interest income
|
19,754
|
2,328
|
22,082
|
|||||||||
Provision for loan and lease losses
|
5,177
|
820
|
5,997
|
|||||||||
Total non-interest income
|
2,868
|
741
|
3,609
|
|||||||||
Total non-interest expenses
|
31,118
|
5,206
|
36,324
|
|||||||||
Income tax (benefit) expense
|
(28
|
)
|
28
|
-
|
||||||||
Net loss
|
$
|
(13,645
|
)
|
$
|
(2,985
|
)
|
$
|
(16,630
|
)
|
|||
Noncontrolling interest
|
189
|
(1,194
|
)
|
(1,005
|
)
|
|||||||
Net loss attributable to Royal Bancshares
|
$
|
(13,834
|
)
|
$
|
(1,791
|
)
|
$
|
(15,625
|
)
|
|
As of December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Assets
|
|
|
||||||
Cash
|
$
|
1,333
|
$
|
4,739
|
||||
Investment in non-bank subsidiaries
|
29,795
|
25,830
|
||||||
Investment in Royal Bank
|
42,165
|
44,725
|
||||||
Other assets
|
15
|
238
|
||||||
Total assets
|
$
|
73,308
|
$
|
75,532
|
||||
Subordinated debentures
|
$
|
25,774
|
$
|
25,774
|
||||
Stockholders' equity
|
47,534
|
49,758
|
||||||
Total liabilities and stockholders' equity
|
$
|
73,308
|
$
|
75,532
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Income
|
|
|
||||||
Other income
|
$
|
25
|
$
|
20
|
||||
Total Income
|
25
|
20
|
||||||
Expenses
|
||||||||
Other expenses
|
499
|
697
|
||||||
Interest on subordinated debentures
|
809
|
683
|
||||||
Total Expenses
|
1,308
|
1,380
|
||||||
|
||||||||
Loss before income taxes and equity in undistributed net loss
|
(1,283
|
)
|
(1,360
|
)
|
||||
Income tax expense
|
-
|
-
|
||||||
Equity in undistributed net income (loss)
|
3,392
|
(14,265
|
)
|
|||||
Net income (loss)
|
$
|
2,109
|
$
|
(15,625
|
)
|
|
For the years ended December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Cash flows from operating activities
|
|
|
||||||
Net income (loss)
|
$
|
2,109
|
$
|
(15,625
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
||||||||
Undistributed losses from subsidiaries
|
(3,392
|
)
|
14,265
|
|||||
Interest on subordinated debentures
|
(2,419
|
)
|
683
|
|||||
Net cash used in operating activities
|
(3,702
|
)
|
(677
|
)
|
||||
|
||||||||
Net cash provided by investing activities
|
-
|
-
|
||||||
Cash flows from financing activities
|
||||||||
Loan payoffs
|
-
|
130
|
||||||
Other, net
|
296
|
185
|
||||||
Net cash provided by financing activities
|
296
|
315
|
||||||
Net decrease in cash and cash equivalents
|
(3,406
|
)
|
(362
|
)
|
||||
Cash and cash equivalents at beginning of period
|
4,739
|
5,101
|
||||||
Cash and cash equivalents at end of period
|
$
|
1,333
|
$
|
4,739
|
|
For the year ended December 31, 2013
|
|||||||||||||||
(In thousands, except per share data)
|
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
||||||||||||
Interest income
|
$
|
7,069
|
$
|
6,960
|
$
|
6,743
|
$
|
6,752
|
||||||||
Net interest income
|
5,379
|
5,070
|
4,946
|
4,772
|
||||||||||||
(Credit) provision for loan and lease losses
|
(676
|
)
|
218
|
(163
|
)
|
(251
|
)
|
|||||||||
Net interest income after provision
|
6,055
|
4,852
|
5,109
|
5,023
|
||||||||||||
Other income
|
2,558
|
1,937
|
961
|
1,408
|
||||||||||||
Other expenses
|
6,333
|
6,290
|
7,567
|
6,140
|
||||||||||||
Income (loss) before income tax
|
2,280
|
499
|
(1,497
|
)
|
291
|
|||||||||||
Income tax expense
|
42
|
-
|
-
|
-
|
||||||||||||
Net income (loss) from continuing operations
|
$
|
2,238
|
$
|
499
|
$
|
(1,497
|
)
|
$
|
291
|
|||||||
Less net (loss) income attributable to noncontrolling interest
|
(214
|
)
|
157
|
(694
|
)
|
173
|
||||||||||
Net income (loss) attributable to Royal Bancshares of Pennsylavania, Inc.
|
$
|
2,452
|
$
|
342
|
$
|
(803
|
)
|
$
|
118
|
|||||||
Net income (loss) available to common shareholders
|
$
|
1,930
|
$
|
(178
|
)
|
$
|
(1,321
|
)
|
$
|
(397
|
)
|
|||||
Net income (loss) per common share
|
||||||||||||||||
Basic and diluted
|
$
|
0.14
|
$
|
(0.01
|
)
|
$
|
(0.10
|
)
|
$
|
(0.03
|
)
|
|
For the year ended December 31, 2012
|
|||||||||||||||
(In thousands, except per share data)
|
Fourth Quarter
|
Third Quarter
|
Second Quarter
|
First Quarter
|
||||||||||||
Interest income
|
$
|
6,991
|
$
|
7,761
|
$
|
8,423
|
$
|
8,806
|
||||||||
Net interest income
|
4,801
|
5,382
|
5,906
|
5,993
|
||||||||||||
Provision for loan and lease losses
|
2,637
|
1,761
|
1,515
|
84
|
||||||||||||
Net interest income after provision
|
2,164
|
3,621
|
4,391
|
5,909
|
||||||||||||
Other income
|
(148
|
)
|
1,151
|
1,945
|
661
|
|||||||||||
Other expenses
|
10,256
|
9,409
|
8,592
|
8,067
|
||||||||||||
Loss before income tax
|
(8,240
|
)
|
(4,637
|
)
|
(2,256
|
)
|
(1,497
|
)
|
||||||||
Net loss
|
$
|
(8,240
|
)
|
$
|
(4,637
|
)
|
$
|
(2,256
|
)
|
$
|
(1,497
|
)
|
||||
Less net (loss) income attributable to noncontrolling interest
|
(246
|
)
|
175
|
(306
|
)
|
(628
|
)
|
|||||||||
Net loss attributable to Royal Bancshares of Pennsylavania, Inc.
|
$
|
(7,994
|
)
|
$
|
(4,812
|
)
|
$
|
(1,950
|
)
|
$
|
(869
|
)
|
||||
Net loss available to common shareholders
|
$
|
(8,507
|
)
|
$
|
(5,323
|
)
|
$
|
(2,458
|
)
|
$
|
(1,375
|
)
|
||||
Net loss per common share
|
||||||||||||||||
Basic and diluted
|
$
|
(0.64
|
)
|
$
|
(0.40
|
)
|
$
|
(0.19
|
)
|
$
|
(0.10
|
)
|
Outside Director Stock Option Plan
|
Number of Securities to
be issued upon
exercise of
outstanding options,
warrants and rights
|
Weighted average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available for
issuance under equity
plans (excluding
securities reflected in
first column)
|
|||||||||
|
|
|
|
|||||||||
Equity compensation plan approved by security holders
|
25,670
|
$
|
22.00
|
-
|
||||||||
Equity compensation plan not approved by security holders
|
-
|
-
|
-
|
|||||||||
Total
|
25,670
|
$
|
22.00
|
-
|
Employee Stock Option Plan
|
Number of Securities to be issued upon exercise of
outstanding options,
warrants and rights
|
Weighted average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available for issuance under equity plans (excluding
securities reflected in
first column)
|
|||||||||
|
|
|
|
|||||||||
Equity compensation plan approved by security holders
|
82,780
|
$
|
22.06
|
-
|
||||||||
Equity compensation plan not approved by security holders
|
-
|
-
|
-
|
|||||||||
Total
|
82,780
|
$
|
22.06
|
-
|
Long Term Incentive Plan
|
Number of Securities to be issued upon exercise of
outstanding options,
warrants and rights
|
Weighted average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available for issuance under equity plans (excluding
securities reflected in
first column)
|
|||||||||
|
|
|
|
|||||||||
Equity compensation plan approved by security holders
|
89,836
|
$
|
7.95
|
793,928
|
||||||||
Equity compensation plan not approved by security holders
|
-
|
-
|
-
|
|||||||||
Total
|
89,836
|
$
|
7.95
|
793,928
|
(a.)
|
1.
|
Financial Statements
|
|
|
|
|
|
The following financial statements are included by reference in Part II, Item 8 hereof.
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
Consolidated Balance Sheets.
|
|
|
Consolidated Statements of Operations.
|
|
|
Consolidated Statements of Changes in Shareholders’ Equity.
|
|
|
Consolidated Statement of Cash Flows.
|
|
|
Notes to Consolidated Financial Statements.
|
|
|
|
|
2.
|
Financial Statement Schedules
|
Financial Statement Schedules are omitted because the required information is either not applicable, not required or is shown in the respective financial statements or in the notes thereto.
|
(b.) |
The following Exhibits are filed herewith or incorporated by reference as a part of this Annual Report.
|
|
|
3.1
|
Articles of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013.)
|
|
|
|
|
3.2
|
Bylaws of the Company. (Incorporated by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.)
|
|
|
|
|
4.1
|
Junior Subordinated Debt Security Due 2034 issued by Royal Bancshares of Pennsylvania, Inc. to JPMorgan Chase Bank, as Institutional Trustee, dated October 27, 2004. (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K (included as Exhibit A to Exhibit 10.1) filed with the Commission on November 1, 2004.)
|
|
|
|
|
4.2
|
Junior Subordinated Debt Security Due 2034 issued by Royal Bancshares of Pennsylvania, Inc. to JPMorgan Chase Bank, as Institutional Trustee, dated October 27, 2004. (Incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K (included as Exhibit A to Exhibit 10.2) filed with the Commission on November 1, 2004.)
|
|
|
|
|
4.3
|
Indenture by and between Royal Bancshares of Pennsylvania, Inc. and JPMorgan Chase Bank, as Trustee, dated October 27, 2004. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on November 1, 2004.)
|
|
|
|
|
4.4
|
Indenture by and between Royal Bancshares of Pennsylvania, Inc. and JPMorgan Chase Bank, as Trustee, dated October 27, 2004. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Commission on November 1, 2004.)
|
|
|
|
|
4.5
|
Guarantee Agreement by and between Royal Bancshares of Pennsylvania, Inc. and JPMorgan Chase Bank, as Guarantee Trustee, dated October 27, 2004. (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Commission on November 1, 2004.)
|
|
|
|
|
4.6
|
Guarantee Agreement by and between Royal Bancshares of Pennsylvania, Inc. and JPMorgan Chase Bank, as Guarantee Trustee, October 27, 2004. (Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the Commission on November 1, 2004.)
|
|
10.1
|
Stock Option and Appreciation Right Plan. As amended on March 15, 2005 (Incorporated by reference to the Company’s Registration Statement No. 333-135226, on Form S-8 filed with the Commission on June 22, 2006.)*
|
|
|
|
|
10.2
|
Outside Directors’ Stock Option Plan. (Incorporated by reference to the Company’s Registration Statement N0. 333-25855, on Form S-8 filed with the Commission on April 5, 1997.)*
|
|
|
|
|
10.3
|
Royal Bancshares of Pennsylvania, Inc. 2007 Long-Term Incentive Plan. (Incorporated by reference to Exhibit A to the Company’s definitive Proxy Statement dated April 6, 2007.)*
|
|
|
|
|
10.4
|
Letter Agreement, including Securities Purchase Agreement - Standard Terms, dated December 19, 2008, between Royal Bancshares of Pennsylvania, Inc. and the United States Department of the Treasury. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on February 26, 2009.)
|
|
|
|
|
10.5
|
Side Letter Agreement, dated February 20, 2009, between Royal Bancshares of Pennsylvania, Inc. and the United States Department of the Treasury.
(Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Commission on February 26, 2009.)
|
|
|
|
|
10.6
|
Form of Letter Agreement, dated December 19, 2008, between Royal Bancshares of Pennsylvania, Inc. and certain of its executive officers relating to executive compensation limitations under the United States Treasury Department’s Capital Purchase Program.* (Incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 filed on March 30, 2009.)
|
|
|
|
|
10.7
|
Employment Agreement, dated November 20, 2013, between the Company, Royal Bank America and Robert A. Kuehl. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on November 27, 2013.)
|
|
|
|
|
10.8
|
Employment Agreement, dated November 20, 2013, between the Company, Royal Bank America and F. Kevin Tylus. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 27, 2013.)
|
|
|
|
|
10.9
|
Employment Agreement, dated November 20, 2013, between the Company, Royal Bank America and Andrew J. Miller. (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on November 27, 2013.)
|
|
|
|
|
10.10
|
Employment Agreement, dated November 20, 2013, between the Company, Royal Bank America and Michael S. Thompson. (Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on November 27, 2013.)
|
|
|
|
|
10.11
|
Investment Agreement dated March 6, 2014, between Emerald Advisers, Inc, and the Company. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 10-K filed on March 11, 2014.)
|
|
|
|
|
10.12
|
Securities Purchase Agreement dated March 10, 2014 among the Company and the purchasers named therein. (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 11, 2014.)
|
|
|
|
|
10.13
|
Registration Rights Agreement, dated March 10, 2014, among the Company and the purchasers named therein. (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on March 11, 2014.)
|
|
|
|
|
10.14
|
Royal Bank America Supplemental Executive Retirement Plan. (Incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q filed on November 13, 2009.)
|
*
|
Denotes compensation plan or arrangement.
|
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
|
|
By: /s/ F. Kevin Tylus
|
By: /s/ Michael S. Thompson
|
F. Kevin Tylus
|
Michael S. Thompson
|
President and Chief Executive Officer
|
Chief Financial Officer
|
(Principal Executive Officer)
|
(Principal Financial Officer
|
|
and Principal Accounting Officer)
|
March 27, 2014
|
March 27, 2014
|
By: /s/ Robert R. Tabas
|
By: /s/ F. Kevin Tylus
|
Robert R. Tabas
|
F. Kevin Tylus
|
Chairman of the Board
|
President and Chief Executive Officer/Director
|
March 27, 2014
|
March 27, 2014
|
|
|
By: /s/ Edward F. Bradley
|
By: /s/ William Hartman
|
Edward F. Bradley
|
William Hartman
|
Director
|
Lead Independent Director
|
March 27, 2014
|
March 27, 2014
|
|
|
By: /s/ Wayne R. Huey, Jr.
|
By: /s/ Michael Piracci
|
Wayne R. Huey, Jr
|
Michael Piracci
|
Director
|
Director
|
March 27, 2014
|
March 27, 2014
|
|
|
By: /s/ Linda Tabas Stempel
|
By: /s/ Murray Stempel, III
|
Linda Tabas Stempel
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Murray Stempel, III
|
Director
|
Director
|
March 27, 2014
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March 27, 2014
|
|
|
By: /s/ Edward B. Tepper
|
By: /s/ Gerard M. Thomchick
|
Edward B. Tepper
|
Gerard M. Thomchick
|
Director
|
Director
|
March 27, 2014
|
March 27, 2014
|
|
|
By: /s/ Howard Wurzak
|
|
Howard Wurzak
|
|
Director
|
|
March 27, 2014
|
|
1 Year Royal Bancshares of Pennsylvania, Inc. Chart |
1 Month Royal Bancshares of Pennsylvania, Inc. Chart |
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