DNB Financial Corporation (Nasdaq:DNBF), today reported net income
available to common stockholders in accordance with generally
accepted accounting principles (“GAAP”) of $1.1 million, or $0.39
per diluted share, for the quarter ending June 30, 2016, compared
with $1.2 million, or $0.43 per diluted share, for the same
quarter, last year.
DNB Financial Corporation (the “Company” or
“DNB”) is the parent of DNB First, National Association, one of the
first nationally-chartered community banks to serve the greater
Philadelphia region.
On a core basis, the Company reported net income
available to common stockholders of $1.3 million, or $0.47 per
diluted share, for the quarter ending June 30, 2016. Core earnings,
which is a non-GAAP measure of net income, excludes merger-related
expenses of $275,000, and an associated income tax adjustment of
$40,000. Please see the Reconciliation of Non-GAAP Financial
Measures on page 6 of the release. Non-GAAP financial
measures include references to the terms “core” or “operating”.
William J. Hieb, President and CEO, commented,
“Our second quarter results were solid despite the flattening yield
curve and very low interest rates. We believe our balance
sheet growth and continued stable credit quality reflects our
disciplined approach to risk management. We look forward to
completing our recently announced East River Bank acquisition and
working with our combined lending and retail teams to expand our
customer base.”
Highlights
- Wealth management assets under care increased 4.7% (not
annualized) to $200.6 million as of June 30, 2016, from $191.5
million as of December 31, 2015.
- Total loans increased 4.7% on a year-over-year basis and 1.0%
(not annualized) on a sequential quarter basis. Total growth
for the most recent quarter was tempered by loan payoffs, due in
part to the Company’s risk management strategy.
- On April 4, 2016, the Company announced an agreement, which is
subject to regulatory approvals and the approval of East River and
DNB shareholders, to acquire East River Bank in a stock and cash
transaction valued at $49 million. The acquisition is
expected to be immediately accretive to earnings, excluding
one-time costs, and is expected to close in the fourth quarter of
2016. Headquartered in Philadelphia, East River Bank had total
assets of $311 million as of March 31, 2016.
- As of June 30, 2016, tangible book value per share was $20.88
compared with $19.58 as of December 31, 2015.
- The Company paid a quarterly cash dividend of $0.07 on June 22,
2016.
Income Statement Summary
Based on core earnings of $1.3 million, the
Company’s performance for the quarter ending June 30, 2016 resulted
in a return on average assets (“ROAA”) and return on average
tangible common equity (“ROTCE”) of 0.71% and 9.17%,
respectively. The core ROAA and ROTCE were 0.66% and 9.27%,
respectively, for the same quarter, last year. Please see the
“Reconciliation of Non-GAAP Financial Measures” on page 6 of the
release.
Total interest income for the three months
ending June 30, 2016 was $6.2 million, which represented a $75,000
increase from the quarter ending March 31, 2016, and a $49,000
increase for the three months ending June 30, 2015. The
year-over-year increase was primarily due to a 6.3% rise in total
average loans, which offset a three basis point decline in the net
interest margin.
Total interest expense increased $58,000 to
$708,000 for the second quarter of 2016 from $650,000 for the first
quarter of 2016. The increase was primarily due to a three
basis point rise in the weighted average cost of interest-bearing
liabilities to 0.41%. Total interest expense also went up
$30,000, compared with the three months ending June 30, 2015.
The year-over-year increase was primarily due to a higher amount of
interest-bearing liabilities as the weighted average cost of funds
was 0.40%, for the same quarter, last year.
On a year-over-year basis, the net interest
margin remained relatively stable despite continuing pressure due
to the flattening yield curve. The net interest margin was
3.08% for the second quarter of 2016, compared with 3.11% for the
same quarter, last year. On a sequential quarter basis,
however, the net interest margin slipped seven basis points from
3.15% for the three months ending March 31, 2016. The
linked-quarter decrease was primarily due to a three basis point
decrease in the weighted average yield on total average loans to
4.21% and the previously mentioned three basis point increase of
the weighted average cost of funds.
The loan loss provision was $200,000 for the
most recent quarter compared with $415,000 for the three months
ended June 30, 2015. The loan loss provision for the
year-earlier June quarter was affected by a one-time
charge-off. Net loan charge-offs were only $125,000, or 0.10%
(annualized) of total average loans, for the June 2016
quarter. As of June 30, 2016, the Company’s allowance for
loan losses was $5.2 million and represented 1.06% of total
loans.
Total non-interest income for the second quarter
of 2016 was $1.4 million, compared with $2.3 million for the prior
quarter and $1.3 million for the quarter ended June 30, 2015.
Total non-interest income for the first quarter of 2016 included a
$1.15 million net gain from the insurance proceeds associated with
the fire at our West Chester location. Excluding this gain,
core non-interest income was approximately $1.2 million, or 17% of
total revenue, for the quarter ending March 31, 2016. Wealth
management fees were $440,000 for the second quarter of 2016
compared with $397,000 for the first quarter of 2016 and $422,000
for the quarter ending June 30, 2015. Wealth management fees
represented approximately one-third of total fee income.
Gains from the sale of investment securities were $203,000 for the
three months ending June 30, 2016, compared with $31,000 for the
quarter ending March 31, 2016, and $11,000 for the same quarter,
last year.
Non-interest expense was $5.2 million for the
second quarter of 2016, compared with $5.4 million for the quarter
ending March 31, 2016 and $4.7 million for the quarter ending June
30, 2015. Non-interest expense for the quarter ending June
30, 2016 included merger-related costs of $275,000 associated with
East River Bank. Excluding these items, core non-interest
expense was $4.9 million.
Balance Sheet Summary
As of June 30, 2016, total assets were $764.2
million compared with $748.8 million as of December 31, 2015.
Total assets increased $2.7 million, or 0.35% (not annualized), on
a sequential quarter basis as loan and investment securities growth
was largely offset by a $18.6 million decrease in cash and cash
equivalents. Total deposits increased $4.8 million, or 0.75%
(not annualized), on a sequential quarter basis. As of June
30, 2016, total shareholders’ equity was $59.5 million, compared
with $55.5 million as of December 31, 2015. Tangible book
value per share was $20.88 as of June 30, 2016 compared with $19.58
as of December 31, 2015.
On a sequential quarter basis, total loans
increased $5.1 million, or 1.0% (not annualized), to $494.4 million
as of June 30, 2016. As of the same date, total loans were
64.7% of total assets. Loan growth has been prudent; and the
Company remains challenged to grow commercial-oriented loans in a
competitive market, while maintaining its conservative underwriting
standards. As part of the Company’s risk management strategy,
certain loan payoffs occurred during the second quarter of 2016,
which better positioned the loan portfolio from a credit quality
perspective.
Total deposits were $641.8 million as of June
30, 2016, compared with $606.3 million as of December 31, 2015. On
a sequential quarter basis, total core deposits remained relatively
flat and were 84.9% of total deposits as of June 30,
2016.
Capital ratios continue to exceed regulatory
standards for well capitalized institutions. As of June 30, 2016,
the common equity tier 1 ratio was 10.82%, the tier 1 leverage
ratio was 9.1%, the tier 1 risk-based capital ratio was 12.4%, and
the total risk-based capital ratio was 15.2%. As of June 30,
2016, the tangible equity-to-tangible assets ratio was
7.8%.
Asset Quality Summary
Net charge-offs were 0.10% of total average
loans for the quarter ending June 30, 2016, compared with 0.08% for
the quarter ending March 31, 2016, and 0.43% for the quarter ending
June 30, 2015. Total non-performing assets, including loans
and other real estate property, were $10.5 million as of June 30,
2016, compared with $7.8 million as of March 31, 2016 and $7.7
million as of December 31, 2015. The ratio of non-performing assets
to total assets was 1.38% as of June 30, 2016 and 1.02% as of March
31, 2016. The increase in non-performing assets at June 30, 2016
was largely due to one commercial credit amounting to $2.1 million,
which management believes will be fully recoverable.
Interest Rate Risk Management
DNB's strategy has been to seek shorter duration over yield in
its lending and investing activities and lengthen duration over
rate in its financing activities to minimize interest rate
risk. The Company also strives to offer products and services
that develop strong relationships to retain core deposits. The Bank
has an Asset Liability Management Committee that actively monitors
and manages the bank's interest rate exposure using simulation
models and gap analysis. The Committee's primary objective is to
minimize the adverse impact of changes in interest rates on net
interest income, while maximizing earnings. To date, model results
indicate that interest rate risk remains moderate and within policy
guidelines.
General Information
DNB Financial Corporation is a bank holding
company whose bank subsidiary, DNB First, National Association, is
a community bank headquartered in Downingtown, Pennsylvania with 12
locations. DNB First, which was founded in 1860, provides a broad
array of consumer and business banking products, and offers
brokerage and insurance services through DNB Investments &
Insurance, and investment management services through DNB
Investment Management & Trust. DNB Financial Corporation's
shares are traded on Nasdaq's Capital Market under the symbol:
DNBF. We invite our customers and shareholders to visit our
website at https://www.dnbfirst.com. DNB's Investor Relations site
can be found at http://investors.dnbfirst.com/.
For further information, please contact:For DNB
Financial Corporation Investors – Gerald F. Sopp,
Executive Vice President, Chief Financial Officer484.359.3138
gsopp@dnbfirst.com
Media – Jonathan T. McGrain, Senior Vice President,
Marketing484.359.3221jmcgrain@dnbfirst.com
For East River BankInvestors and Media –
Christopher P. McGill, President and Chief Executive Officer
267.295.6420cmcgill@eastriverbank.com Forward-Looking
Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements include, but are not limited
to, expectations or predictions of future financial or business
performance, conditions relating to DNB and East River Bank (“East
River”) or other effects of the proposed merger of DNB and East
River. These forward-looking statements include statements with
respect to DNB’s beliefs, plans, objectives, goals, expectations,
anticipations, estimates and intentions, that are subject to
significant risks and uncertainties, and are subject to change
based on various factors (some of which are beyond DNB’s control).
The words "may," "could," "should," "would," "will," "believe,"
"anticipate," "estimate," "expect," "intend," "plan" and similar
expressions are intended to identify forward-looking
statements.
In addition to factors previously disclosed in
the reports filed by DNB with the Securities and Exchange
Commission (the “SEC”) and those identified elsewhere in this
document, the following factors, among others, could cause actual
results to differ materially from forward looking statements or
historical performance: the ability to obtain regulatory approvals
and satisfy other closing conditions to the merger, including
approval by shareholders of DNB and East River; delay in closing
the merger; difficulties and delays in integrating the East River
business or fully realizing anticipated cost savings and other
benefits of the merger; business disruptions following the merger;
the strength of the United States economy in general and the
strength of the local economies in which DNB and East River conduct
their operations; the effects of, and changes in, trade, monetary
and fiscal policies and laws, including interest rate policies of
the Board of Governors of the Federal Reserve System; the
downgrade, and any future downgrades, in the credit rating of the
U.S. Government and federal agencies; inflation, interest rate,
market and monetary fluctuations; the timely development of and
acceptance of new products and services and the perceived overall
value of these products and services by users, including the
features, pricing and quality compared to competitors' products and
services; the willingness of users to substitute competitors’
products and services for DNB’s products and services; the success
of DNB in gaining regulatory approval of its products and services,
when required; the impact of changes in laws and regulations
applicable to financial institutions (including laws concerning
taxes, banking, securities and insurance); technological changes;
additional acquisitions; changes in consumer spending and saving
habits; the nature, extent, and timing of governmental actions and
reforms; and the success of DNB at managing the risks involved in
the foregoing. Annualized, pro forma, projected and estimated
numbers presented herein are presented for illustrative purpose
only, are not forecasts and may not reflect actual results.
DNB cautions that the foregoing list of
important factors is not exclusive. Readers are also cautioned not
to place undue reliance on these forward-looking statements, which
reflect management's analysis only as of the date of this press
release, even if subsequently made available by DNB on its website
or otherwise. DNB does not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to
time by or on behalf of DNB to reflect events or circumstances
occurring after the date of this press release.
For a complete discussion of the assumptions,
risks and uncertainties related to our business, you are encouraged
to review our filings with the SEC, including our most recent
annual report on Form 10-K, as supplemented by our quarterly or
other reports subsequently filed with the SEC.
Important Additional Information and
Where to Find It
DNB has filed with the SEC a Registration
Statement on Form S-4 relating to the proposed merger, which
includes a prospectus for the offer and sale of DNB common stock as
well as the joint proxy statement of DNB and East River for the
solicitation of proxies from their shareholders for use at the
meetings at which the merger will be considered. This
communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. SHAREHOLDERS OF DNB AND EAST RIVER ARE URGED
TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY
STATEMENT-PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT
DOCUMENTS FILED BY DNB WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION.
A free copy of the joint proxy
statement-prospectus, as well as other filings containing
information about DNB, may be obtained at the SEC’s website at
http://www.sec.gov, when they are filed by DNB. You will also
be able to obtain these documents, when they are filed, free of
charge, from DNB at http://investors.dnbfirst.com. In addition,
copies of the joint proxy statement-prospectus can also be
obtained, when it becomes available, free of charge by directing a
request to DNB at 4 Brandywine Avenue, Downingtown, PA 19335-0904
or by contacting Gerald F. Sopp at 484.359.3138 or
gsopp@dnbfirst.com or to East River at 4341 Ridge Avenue,
Philadelphia, PA 19129 or by contacting Christopher P. McGill at
267.295.6420 or cmcgill@eastriverbank.com.
DNB, East River and certain of their directors,
executive officers and employees may be deemed to be “participants”
in the solicitation of proxies in connection with the proposed
merger. Information concerning the interests of the DNB and
East River persons who may be considered “participants” in the
solicitation will be set forth in the joint proxy
statement-prospectus relating to the merger, when it becomes
available. Information concerning DNB’s directors and
executive officers, including their ownership of DNB common stock,
is set forth in DNB’s proxy statement previously filed with the SEC
on March 23, 2016.
FINANCIAL TABLES FOLLOW
|
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
Condensed Consolidated Statements of Income
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
$ |
|
6,180 |
|
|
$ |
6,131 |
|
$ |
|
12,285 |
|
|
$ |
12,127 |
Interest
expense |
|
|
708 |
|
|
|
678 |
|
|
|
1,358 |
|
|
|
1,284 |
Net interest
income |
|
|
5,472 |
|
|
|
5,453 |
|
|
|
10,927 |
|
|
|
10,843 |
Provision for
credit losses |
|
|
200 |
|
|
|
415 |
|
|
|
530 |
|
|
|
715 |
Non-interest
income |
|
|
1,184 |
|
|
|
1,142 |
|
|
|
2,293 |
|
|
|
2,193 |
Gain from
insurance proceeds |
|
|
- |
|
|
|
- |
|
|
|
1,150 |
|
|
|
- |
Gain on sale of
investment securities |
|
|
203 |
|
|
|
11 |
|
|
|
234 |
|
|
|
64 |
Gain (loss) on
sale of SBA loans |
|
|
- |
|
|
|
185 |
|
|
|
39 |
|
|
|
416 |
Loss on sale /
writedown of OREO and ORA |
|
|
4 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
Due diligence
& merger expense |
|
|
275 |
|
|
|
- |
|
|
|
463 |
|
|
|
- |
Non-interest
expense |
|
|
4,893 |
|
|
|
4,724 |
|
|
|
10,123 |
|
|
|
9,548 |
Income before
income taxes |
|
|
1,487 |
|
|
|
1,652 |
|
|
|
3,523 |
|
|
|
3,253 |
Income tax
expense |
|
|
378 |
|
|
|
417 |
|
|
|
858 |
|
|
|
766 |
Net income |
|
|
1,109 |
|
|
|
1,235 |
|
|
|
2,665 |
|
|
|
2,487 |
Preferred stock
dividends |
|
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
34 |
Net income
available to common stockholders |
$ |
|
1,109 |
|
|
$ |
1,227 |
|
$ |
|
2,665 |
|
|
$ |
2,453 |
Net income per
common share, diluted |
$ |
|
0.39 |
|
|
$ |
0.43 |
|
$ |
|
0.93 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income |
$ |
|
1,109 |
|
|
$ |
1,227 |
|
$ |
|
2,665 |
|
|
$ |
2,453 |
Gains from
insurance proceeds |
|
|
- |
|
|
|
- |
|
|
|
(1,150 |
) |
|
|
- |
Salary expense
related to restricted stock and SERP |
|
|
- |
|
|
|
- |
|
|
|
446 |
|
|
|
- |
Acquisition
costs -- East River Bank |
|
|
275 |
|
|
|
- |
|
|
|
463 |
|
|
|
- |
Income tax
adjustment |
|
|
(40 |
) |
|
|
- |
|
|
|
82 |
|
|
|
- |
Non-GAAP net
income (Core earnings) |
$ |
|
1,344 |
|
|
$ |
1,227 |
|
$ |
|
2,506 |
|
|
$ |
2,453 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
|
0.47 |
|
|
$ |
0.44 |
|
$ |
|
0.88 |
|
|
$ |
0.88 |
Diluted |
$ |
|
0.47 |
|
|
$ |
0.43 |
|
$ |
|
0.87 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
2,849 |
|
|
|
2,802 |
|
|
|
2,841 |
|
|
|
2,794 |
Diluted |
|
|
2,883 |
|
|
|
2,848 |
|
|
|
2,876 |
|
|
|
2,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
Selected Financial Data
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
Earnings and Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common stockholders |
$ |
|
1,109 |
|
|
$ |
|
1,556 |
|
|
$ |
|
1,374 |
|
|
$ |
|
1,261 |
|
|
$ |
|
1,227 |
|
Basic earnings
per common share |
$ |
|
0.39 |
|
|
$ |
|
0.55 |
|
|
$ |
|
0.49 |
|
|
$ |
|
0.45 |
|
|
$ |
|
0.44 |
|
Diluted earnings
per common share |
$ |
|
0.39 |
|
|
$ |
|
0.54 |
|
|
$ |
|
0.48 |
|
|
$ |
|
0.45 |
|
|
$ |
|
0.43 |
|
Dividends per
common share |
$ |
|
0.07 |
|
|
$ |
|
0.07 |
|
|
$ |
|
0.07 |
|
|
$ |
|
0.07 |
|
|
$ |
|
0.07 |
|
Book value per
common share |
$ |
|
20.90 |
|
|
$ |
|
20.45 |
|
|
$ |
|
19.65 |
|
|
$ |
|
19.64 |
|
|
$ |
|
19.04 |
|
Tangible book
value per common share |
$ |
|
20.88 |
|
|
$ |
|
20.38 |
|
|
$ |
|
19.58 |
|
|
$ |
|
19.57 |
|
|
$ |
|
18.96 |
|
Average common
shares outstanding |
|
|
2,849 |
|
|
|
|
2,833 |
|
|
|
|
2,812 |
|
|
|
|
2,807 |
|
|
|
|
2,802 |
|
Average diluted
common shares outstanding |
|
|
2,883 |
|
|
|
|
2,869 |
|
|
|
|
2,857 |
|
|
|
|
2,852 |
|
|
|
|
2,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
0.59 |
% |
|
|
|
0.84 |
% |
|
|
|
0.74 |
% |
|
|
|
0.68 |
% |
|
|
|
0.66 |
% |
Return on
average equity |
|
|
7.56 |
% |
|
|
|
10.94 |
% |
|
|
|
9.32 |
% |
|
|
|
8.71 |
% |
|
|
|
8.75 |
% |
Return on
average tangible equity |
|
|
7.57 |
% |
|
|
|
10.98 |
% |
|
|
|
9.35 |
% |
|
|
|
8.75 |
% |
|
|
|
8.79 |
% |
Net interest
margin |
|
|
3.08 |
% |
|
|
|
3.15 |
% |
|
|
|
3.14 |
% |
|
|
|
3.13 |
% |
|
|
|
3.11 |
% |
Efficiency
ratio |
|
|
74.38 |
% |
|
|
|
78.66 |
% |
|
|
|
68.27 |
% |
|
|
|
68.09 |
% |
|
|
|
67.29 |
% |
Wtd average
yield on earning assets |
|
|
3.46 |
% |
|
|
|
3.51 |
% |
|
|
|
3.53 |
% |
|
|
|
3.52 |
% |
|
|
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans |
|
|
0.10 |
% |
|
|
|
0.08 |
% |
|
|
|
0.07 |
% |
|
|
|
0.41 |
% |
|
|
|
0.43 |
% |
Non-performing
loans/Total loans |
|
|
1.54 |
% |
|
|
|
1.06 |
% |
|
|
|
1.06 |
% |
|
|
|
0.90 |
% |
|
|
|
0.98 |
% |
Non-performing
assets/Total assets |
|
|
1.38 |
% |
|
|
|
1.02 |
% |
|
|
|
1.02 |
% |
|
|
|
0.87 |
% |
|
|
|
0.88 |
% |
Allowance for
credit loss/Total loans |
|
|
1.06 |
% |
|
|
|
1.06 |
% |
|
|
|
1.02 |
% |
|
|
|
1.01 |
% |
|
|
|
1.08 |
% |
Allowance for
credit loss/Non-performing loans |
|
|
69.12 |
% |
|
|
|
99.64 |
% |
|
|
|
96.91 |
% |
|
|
|
111.32 |
% |
|
|
|
110.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity/Total assets |
|
|
7.79 |
% |
|
|
|
7.64 |
% |
|
|
|
7.41 |
% |
|
|
|
7.87 |
% |
|
|
|
7.49 |
% |
Tangible
equity/Tangible assets |
|
|
7.78 |
% |
|
|
|
7.61 |
% |
|
|
|
7.40 |
% |
|
|
|
7.42 |
% |
|
|
|
7.05 |
% |
Tier 1 leverage
ratio |
|
|
9.11 |
% |
|
|
|
9.16 |
% |
|
|
|
8.94 |
% |
|
|
|
9.23 |
% |
|
|
|
9.02 |
% |
Common equity
tier 1 risk-based capital ratio |
|
|
10.82 |
% |
|
|
|
10.71 |
% |
|
|
|
10.44 |
% |
|
|
|
10.46 |
% |
|
|
|
10.17 |
% |
Tier 1
risk-based capital ratio |
|
|
12.43 |
% |
|
|
|
12.34 |
% |
|
|
|
12.08 |
% |
|
|
|
12.74 |
% |
|
|
|
12.43 |
% |
Total risk-based
capital ratio |
|
|
15.16 |
% |
|
|
|
15.07 |
% |
|
|
|
14.78 |
% |
|
|
|
15.46 |
% |
|
|
|
15.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
care* |
$ |
|
200,586 |
|
|
$ |
|
199,296 |
|
|
$ |
|
191,529 |
|
|
$ |
|
184,535 |
|
|
$ |
|
189,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Wealth
Management assets under care includes assets under management,
administration, supervision and brokerage. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
|
Condensed Consolidated Statements of Income
(Unaudited) |
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, |
|
Mar 31, |
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
|
|
|
2016 |
|
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
$ |
|
6,180 |
|
|
$ |
|
6,105 |
|
|
$ |
|
6,190 |
|
|
$ |
|
6,161 |
|
|
$ |
|
6,131 |
|
|
Interest
expense |
|
|
708 |
|
|
|
|
650 |
|
|
|
|
717 |
|
|
|
|
711 |
|
|
|
|
678 |
|
|
Net interest
income |
|
|
5,472 |
|
|
|
|
5,455 |
|
|
|
|
5,473 |
|
|
|
|
5,450 |
|
|
|
|
5,453 |
|
|
Provision for
loan losses |
|
|
200 |
|
|
|
|
330 |
|
|
|
|
290 |
|
|
|
|
100 |
|
|
|
|
415 |
|
|
Non-interest
income |
|
|
1,184 |
|
|
|
|
1,109 |
|
|
|
|
1,107 |
|
|
|
|
1,027 |
|
|
|
|
1,142 |
|
|
Gain from
insurance proceeds |
|
|
- |
|
|
|
|
1,150 |
|
|
|
|
120 |
|
|
|
|
- |
|
|
|
|
- |
|
|
Gain on sale of
investment securities |
|
|
203 |
|
|
|
|
31 |
|
|
|
|
4 |
|
|
|
|
10 |
|
|
|
|
11 |
|
|
Gain on sale of
SBA loans |
|
|
- |
|
|
|
|
39 |
|
|
|
|
68 |
|
|
|
|
- |
|
|
|
|
185 |
|
|
(Gain) loss on
sale / write-down of OREO and ORA |
|
|
4 |
|
|
|
|
- |
|
|
|
|
(20 |
) |
|
|
|
154 |
|
|
|
|
- |
|
|
Due diligence
& merger expense |
|
|
275 |
|
|
|
|
188 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Non-interest
expense |
|
|
4,893 |
|
|
|
|
5,230 |
|
|
|
|
4,742 |
|
|
|
|
4,605 |
|
|
|
|
4,724 |
|
|
Income before
income taxes |
|
|
1,487 |
|
|
|
|
2,036 |
|
|
|
|
1,760 |
|
|
|
|
1,628 |
|
|
|
|
1,652 |
|
|
Income tax
expense |
|
|
378 |
|
|
|
|
480 |
|
|
|
|
378 |
|
|
|
|
359 |
|
|
|
|
417 |
|
|
Net income |
|
|
1,109 |
|
|
|
|
1,556 |
|
|
|
|
1,382 |
|
|
|
|
1,269 |
|
|
|
|
1,235 |
|
|
Preferred stock
dividends |
|
|
- |
|
|
|
|
- |
|
|
|
|
8 |
|
|
|
|
8 |
|
|
|
|
8 |
|
|
Net income
available to common stockholders |
$ |
|
1,109 |
|
|
$ |
|
1,556 |
|
|
$ |
|
1,374 |
|
|
$ |
|
1,261 |
|
|
$ |
|
1,227 |
|
|
Net income per
common share, diluted |
$ |
|
0.39 |
|
|
$ |
|
0.54 |
|
|
$ |
|
0.48 |
|
|
$ |
|
0.45 |
|
|
$ |
|
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Financial
Condition (Unaudited) |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
Mar 31, |
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
|
|
2016 |
|
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
FINANCIAL POSITION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
|
20,146 |
|
|
$ |
|
38,740 |
|
|
$ |
|
21,119 |
|
|
$ |
|
18,959 |
|
|
$ |
|
27,493 |
|
|
Investment
securities |
|
|
223,140 |
|
|
|
|
207,023 |
|
|
|
|
220,208 |
|
|
|
|
227,363 |
|
|
|
|
231,712 |
|
|
Loans held for
sale |
|
|
- |
|
|
|
|
359 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Loans and
leases |
|
|
494,417 |
|
|
|
|
489,366 |
|
|
|
|
481,758 |
|
|
|
|
470,396 |
|
|
|
|
472,335 |
|
|
Allowance for
credit losses |
|
|
(5,247 |
) |
|
|
|
(5,172 |
) |
|
|
|
(4,935 |
) |
|
|
|
(4,729 |
) |
|
|
|
(5,108 |
) |
|
Net loans and
leases |
|
|
489,170 |
|
|
|
|
484,194 |
|
|
|
|
476,823 |
|
|
|
|
465,667 |
|
|
|
|
467,227 |
|
|
Premises and
equipment, net |
|
|
8,557 |
|
|
|
|
7,817 |
|
|
|
|
6,806 |
|
|
|
|
6,630 |
|
|
|
|
6,629 |
|
|
Other
assets |
|
|
23,159 |
|
|
|
|
23,307 |
|
|
|
|
23,862 |
|
|
|
|
23,272 |
|
|
|
|
22,882 |
|
|
Total
assets |
$ |
|
764,172 |
|
|
$ |
|
761,440 |
|
|
$ |
|
748,818 |
|
|
$ |
|
741,891 |
|
|
$ |
|
755,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
Deposits |
$ |
|
135,212 |
|
|
$ |
|
131,951 |
|
|
$ |
|
125,581 |
|
|
$ |
|
120,018 |
|
|
$ |
|
122,642 |
|
|
NOW |
|
|
185,279 |
|
|
|
|
201,566 |
|
|
|
|
185,973 |
|
|
|
|
189,502 |
|
|
|
|
209,606 |
|
|
Money
markets |
|
|
149,108 |
|
|
|
|
138,241 |
|
|
|
|
137,555 |
|
|
|
|
139,213 |
|
|
|
|
145,283 |
|
|
Savings |
|
|
75,236 |
|
|
|
|
75,535 |
|
|
|
|
72,660 |
|
|
|
|
71,316 |
|
|
|
|
73,461 |
|
|
Core
Deposits |
|
|
544,835 |
|
|
|
|
547,293 |
|
|
|
|
521,769 |
|
|
|
|
520,049 |
|
|
|
|
550,992 |
|
|
Time
deposits |
|
|
73,560 |
|
|
|
|
71,264 |
|
|
|
|
66,018 |
|
|
|
|
69,744 |
|
|
|
|
56,729 |
|
|
Brokered
deposits |
|
|
23,449 |
|
|
|
|
18,498 |
|
|
|
|
18,488 |
|
|
|
|
18,665 |
|
|
|
|
18,655 |
|
|
Total
Deposits |
|
|
641,844 |
|
|
|
|
637,055 |
|
|
|
|
606,275 |
|
|
|
|
608,458 |
|
|
|
|
626,376 |
|
|
FHLB
advances |
|
|
20,000 |
|
|
|
|
20,000 |
|
|
|
|
30,000 |
|
|
|
|
20,000 |
|
|
|
|
20,000 |
|
|
Repurchase
agreements |
|
|
17,748 |
|
|
|
|
21,661 |
|
|
|
|
32,416 |
|
|
|
|
30,501 |
|
|
|
|
28,211 |
|
|
Subordinated
Debt |
|
|
9,750 |
|
|
|
|
9,750 |
|
|
|
|
9,750 |
|
|
|
|
9,750 |
|
|
|
|
9,750 |
|
|
Other
borrowings |
|
|
9,721 |
|
|
|
|
9,733 |
|
|
|
|
9,743 |
|
|
|
|
9,754 |
|
|
|
|
9,764 |
|
|
Other
liabilities |
|
|
5,572 |
|
|
|
|
5,061 |
|
|
|
|
5,146 |
|
|
|
|
5,060 |
|
|
|
|
5,218 |
|
|
Stockholders'
equity |
|
|
59,537 |
|
|
|
|
58,180 |
|
|
|
|
55,488 |
|
|
|
|
58,368 |
|
|
|
|
56,624 |
|
|
Total
liabilities and stockholders' equity |
$ |
|
764,172 |
|
|
$ |
|
761,440 |
|
|
$ |
|
748,818 |
|
|
$ |
|
741,891 |
|
|
$ |
|
755,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
Condensed Consolidated Statements of Financial
Condition - Quarterly Average Balances (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
Mar 31, |
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
|
2016 |
|
|
|
2016 |
|
|
2015 |
|
2015 |
|
2015 |
|
FINANCIAL POSITION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
|
36,113 |
|
|
$ |
|
23,080 |
|
|
$ |
|
19,532 |
|
|
$ |
|
19,820 |
|
|
$ |
|
26,909 |
|
|
Investment
securities |
|
|
213,235 |
|
|
|
|
215,565 |
|
|
|
|
227,936 |
|
|
|
|
230,402 |
|
|
|
|
239,364 |
|
|
Loans held for
sale |
|
|
147 |
|
|
|
|
28 |
|
|
|
|
61 |
|
|
|
|
74 |
|
|
|
|
96 |
|
|
Loans and
leases |
|
|
488,396 |
|
|
|
|
483,125 |
|
|
|
|
473,643 |
|
|
|
|
469,896 |
|
|
|
|
459,464 |
|
|
Allowance for
credit losses |
|
|
(5,265 |
) |
|
|
|
(5,025 |
) |
|
|
|
(4,831 |
) |
|
|
|
(5,182 |
) |
|
|
|
(5,280 |
) |
|
Net loans and
leases |
|
|
483,131 |
|
|
|
|
478,100 |
|
|
|
|
468,812 |
|
|
|
|
464,714 |
|
|
|
|
454,184 |
|
|
Premises and
equipment, net |
|
|
8,332 |
|
|
|
|
7,222 |
|
|
|
|
6,609 |
|
|
|
|
6,587 |
|
|
|
|
7,461 |
|
|
Other
assets |
|
|
19,222 |
|
|
|
|
19,678 |
|
|
|
|
19,415 |
|
|
|
|
20,021 |
|
|
|
|
17,339 |
|
|
Total
assets |
$ |
|
760,180 |
|
|
$ |
|
743,673 |
|
|
$ |
|
742,365 |
|
|
$ |
|
741,618 |
|
|
$ |
|
745,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
Deposits |
$ |
|
131,134 |
|
|
$ |
|
120,391 |
|
|
$ |
|
122,235 |
|
|
$ |
|
118,282 |
|
|
$ |
|
114,458 |
|
|
NOW |
|
|
192,339 |
|
|
|
|
193,548 |
|
|
|
|
183,129 |
|
|
|
|
197,802 |
|
|
|
|
210,677 |
|
|
Money
markets |
|
|
142,768 |
|
|
|
|
137,121 |
|
|
|
|
140,136 |
|
|
|
|
144,115 |
|
|
|
|
144,927 |
|
|
Savings |
|
|
75,254 |
|
|
|
|
74,653 |
|
|
|
|
71,637 |
|
|
|
|
71,740 |
|
|
|
|
71,762 |
|
|
Core
Deposits |
|
|
541,495 |
|
|
|
|
525,713 |
|
|
|
|
517,137 |
|
|
|
|
531,939 |
|
|
|
|
541,824 |
|
|
Time
deposits |
|
|
75,541 |
|
|
|
|
70,927 |
|
|
|
|
68,731 |
|
|
|
|
56,702 |
|
|
|
|
70,079 |
|
|
Brokered
deposits |
|
|
20,754 |
|
|
|
|
18,491 |
|
|
|
|
18,638 |
|
|
|
|
18,658 |
|
|
|
|
11,543 |
|
|
Total
Deposits |
|
|
637,790 |
|
|
|
|
615,131 |
|
|
|
|
604,506 |
|
|
|
|
607,299 |
|
|
|
|
623,446 |
|
|
FHLB
advances |
|
|
20,003 |
|
|
|
|
23,111 |
|
|
|
|
22,391 |
|
|
|
|
20,000 |
|
|
|
|
20,000 |
|
|
Repurchase
agreements |
|
|
19,103 |
|
|
|
|
23,040 |
|
|
|
|
31,914 |
|
|
|
|
31,732 |
|
|
|
|
20,614 |
|
|
Subordinated
Debt |
|
|
9,750 |
|
|
|
|
9,750 |
|
|
|
|
9,750 |
|
|
|
|
9,750 |
|
|
|
|
9,750 |
|
|
Other
borrowings |
|
|
9,728 |
|
|
|
|
10,783 |
|
|
|
|
9,875 |
|
|
|
|
10,000 |
|
|
|
|
9,791 |
|
|
Other
liabilities |
|
|
4,939 |
|
|
|
|
4,818 |
|
|
|
|
5,070 |
|
|
|
|
5,073 |
|
|
|
|
5,156 |
|
|
Stockholders'
equity |
|
|
58,867 |
|
|
|
|
57,040 |
|
|
|
|
58,859 |
|
|
|
|
57,764 |
|
|
|
|
56,596 |
|
|
Total
liabilities and stockholders' equity |
$ |
|
760,180 |
|
|
$ |
|
743,673 |
|
|
$ |
|
742,365 |
|
|
$ |
|
741,618 |
|
|
$ |
|
745,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information, please contact:
Gerald F. Sopp CFO/Executive Vice-President
484.359.3138
gsopp@dnbfirst.com
DNB Financial (NASDAQ:DNBF)
Historical Stock Chart
From Mar 2024 to Apr 2024
DNB Financial (NASDAQ:DNBF)
Historical Stock Chart
From Apr 2023 to Apr 2024