DNB Financial Corporation (Nasdaq:DNBF), today reported net income
available to common stockholders in accordance with generally
accepted accounting principles (“GAAP”) of $2.3 million, or $0.55
per diluted share, for the quarter ending December 31, 2016,
compared with $1.4 million, or $0.48 per diluted share for the same
quarter, in 2015. For the year ending December 31, 2016, net
income available to common shareholders was $5.0 million, or $1.55
per share, compared with $5.1 million, or $1.79 per share for the
corresponding prior year period.
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 October 1, 2016, the Company
completed its acquisition of Philadelphia-based East River Bank
("East River"), which added approximately $311 million in loans,
and $226 million in deposits. The system integration and
rebranding was successfully completed on November 4,
2016.
On a core basis, the Company reported net income
available to common stockholders of $2.0 million, or $0.48 per
diluted share, for the quarter ending December 31, 2016, compared
with $1.3 million, or $0.45 per share, for the corresponding prior
year quarter. Core earnings, which is a non-GAAP measure of
net income, excludes merger-related expenses of $280,000, purchase
accounting adjustments of $761,000, amortization of intangible
assets of $27,000, and an associated income tax adjustment of
$165,000 for the three months ending December 31, 2016. Core
earnings were $5.5 million, or $1.70 per diluted share, for the
year ending December 31, 2016, compared with $4.9 million, or $1.74
per diluted share, for the same period, in 2015. 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,
“2016 was another year of strong operating performance highlighted
by the successful acquisition and integration of East River Bank in
the fourth quarter. Core earnings remained solid throughout
the year and we are particularly pleased with our strong credit
quality and continued growth of our wealth management
business.”
Highlights
- Primarily due to the acquisition of East River, total loans
increased $335.8 million, or 70.0%, on a year-over-year basis and
$308.1 million or 60.4% (not annualized) on a sequential quarter
basis.
- The net interest margin increased to 3.63% for the quarter
ending December 31, 2016, compared with 3.14% for the year-earlier
quarter and 3.06% for the quarter ending September 30, 2016.
The improvement was primarily due to the acquisition of East River
Bank.
- Core deposits grew $146.8 million or 28.1% on a year over year
basis and $118.3 million or 21.5% (not annualized) on a sequential
quarter basis. The increase was mainly due to core deposits
acquired in the East River acquisition.
- Asset quality remained strong. Net loan charge-offs were
only 0.01% (annualized) of total average loans for the fourth
quarter of 2016, and non-performing loans were 1.14% of total loans
at year-end.
- Wealth management assets under care increased 11.8% to $214.2
million as of December 31, 2016, from $191.5 million as of December
31, 2015.
- The Board of Directors declared a cash dividend of $0.07 per
share, paid on December 22, 2016.
Income Statement Summary
Based on core earnings of $2.0 million, the
Company’s performance for the quarter ending December 31, 2016
generated a return on average assets (“ROAA”) and return on average
tangible common equity (“ROTCE”) of 0.74% and 10.34%,
respectively. The core ROAA and ROTCE for the same quarter
last year were 0.69% and 8.67%, respectively. Please see the
“Reconciliation of Non-GAAP Financial Measures” on page 6 of the
release.
Total interest income for the three months
ending December 31, 2016 was $10.6 million, which represented a
$4.3 million increase from the quarter ending September 30, 2016,
and a $4.4 million increase for the three months ending December
31, 2015. The year-over-year increase was primarily due to a
72.8% rise in total average loans and a 57 basis point increase in
the yield on earning assets for the quarter ending December 31,
2016. The main driver for the increase in both volume and
rate was the East River acquisition. The weighted average
yield on total interest-earning assets included purchase accounting
fair value adjustments. On a core basis, which excludes the
purchase accounting adjustments, the net interest margin was 3.33%
for the three months ended December 31, 2016.
Total interest expense was $1.2 million for the
three months ending December 31, 2016, compared with $760,000 for
the third quarter of 2016, and $717,000 for the fourth quarter of
2015. The year-over-year increase was primarily due to a
higher amount of interest-bearing liabilities, largely due to the
East River acquisition, as the weighted average cost of funds
remains at historically low levels.
The loan loss provision was $100,000 for the
most recent quarter compared with $290,000 for the three months
ended December 31, 2015. As of December 31, 2016, the
Company’s allowance for loan losses was $5.4 million and
represented 0.66% of total loans. Loans acquired in
connection with the purchase of East River have been recorded at
fair value based on an initial estimate of expected cash flows,
including a reduction for estimated credit losses, and without
carryover of the respective portfolio's historical allowance for
loan losses. At December 31, 2016, the allowance for loan
losses as a percentage of originated loans, which represents all
loans other than those acquired, was 1.04%.
Total non-interest income for the fourth quarter
of 2016 was $1.3 million, compared with $1.3 million for the same
quarter, in 2015. Total non-interest income for the fourth
quarter of 2015, included a $120,000 gain from the insurance
proceeds associated with a fire at one of the Bank’s locations.
Wealth management fees were $403,000 for the fourth quarter of
2016, compared with $393,000 for the third quarter of 2016, and
$394,000 for the quarter ending December 31, 2015.
Non-interest expense was $7.3 million for the
fourth quarter of 2016, compared with $6.7 million for the third
quarter of 2016, and $4.7 million for the quarter ending December
31, 2015. Non-interest expense for the quarter ending
December 31, 2016 included merger-related costs of $280,000 and
$480,000 for the write down of OREO property to its net realizable
value. Compared to the third quarter of 2016, in addition to the
write down of OREO property mentioned above, the increase in non
interest expense was largely due to the East River acquisition.
Compared to the fourth quarter of 2015, increases were largely due
to addition of East River staff, offices and equipment as well as
related due diligence and merger expense and the write down of OREO
property mentioned above.
Balance Sheet Summary
Balance sheet growth, including intangible
assets, on both a sequential quarter basis and year-over-year basis
was largely attributable to the acquisition of East River. As of
December 31 2016, total assets were $1.1 billion compared with
$748.8 million as of December 31, 2015. On a sequential
quarter basis, total assets increased $301.1 million, or 39.1% (not
annualized).
On a sequential quarter basis, total loans
increased $308.1 million, or 60.1% (not annualized), to $817.5
million as of December 31, 2016. As of the same date, total
loans were 76.3% of total assets. The loan growth occurred
primarily in the commercial real estate loan category. As of
December 31, 2016, the loan-to-deposit ratio was 92.3%.
Total deposits were $885.2 million as of
December 31, 2016, compared with $606.3 million as of December 31,
2015, an increase of $278.9 million or 46.0%, and increased $239.6
million, or 37.1% (not annualized), on a sequential quarter basis.
As of December 31, 2016, total shareholders’ equity was $94.8
million, compared with $55.5 million as of December 31, 2015.
Tangible book value per share was $18.56 as of December 31, 2016.
Intangible assets were $16.1 million as of December 31, 2016,
including goodwill of $15.5 million.
Capital ratios continue to exceed minimum
regulatory standards for well-capitalized institutions. As of
December 31, 2016, the tier 1 leverage ratio was 8.42%, the tier 1
risk-based capital was 10.65%, the common equity tier 1 risk-based
capital ratio was 9.59% and the total risk-based capital ratio was
12.48%. As of the same date, the tangible common equity-to-tangible
assets ratio was 7.46%.
Asset Quality Summary
Asset quality remained solid as net charge-offs
were only 0.01% of total average loans for the quarter ending
December 31, 2016, compared with 0.03% for the quarter ending
September 30, 2016, and 0.07% for the quarter ending December 31,
2015. Total non-performing assets, including loans and other
real estate property, were $12.1 million as of December 31, 2016,
or 1.13% of total assets, compared with $9.9 million as of
September 31, 2016, or 1.36% of total assets. The total amount of
non-performing assets increased due to loans and other assets
acquired with the East River acquisition. The ratio of
non-performing loans to total loans was 1.14% as of December 31,
2016.
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 15
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/.
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 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: 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 conducts its
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.
FINANCIAL TABLES FOLLOW
|
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
Condensed Consolidated Statements of Income
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 30, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
10,617 |
|
|
$ |
6,190 |
|
|
$ |
29,179 |
|
|
$ |
24,478 |
|
Interest expense |
|
1,206 |
|
|
|
717 |
|
|
|
3,324 |
|
|
|
2,712 |
|
Net interest
income |
|
9,411 |
|
|
|
5,473 |
|
|
|
25,855 |
|
|
|
21,766 |
|
Provision for credit
losses |
|
100 |
|
|
|
290 |
|
|
|
730 |
|
|
|
1,105 |
|
Non-interest
income |
|
1,279 |
|
|
|
1,107 |
|
|
|
4,714 |
|
|
|
4,327 |
|
Gain from insurance
proceeds |
|
- |
|
|
|
120 |
|
|
|
1,180 |
|
|
|
120 |
|
Gain on sale of
investment securities |
|
- |
|
|
|
4 |
|
|
|
431 |
|
|
|
78 |
|
Gain (loss) on sale of
SBA loans |
|
- |
|
|
|
68 |
|
|
|
39 |
|
|
|
484 |
|
Loss on sale /
writedown of OREO and ORA |
|
480 |
|
|
|
(20 |
) |
|
|
644 |
|
|
|
134 |
|
Due diligence &
merger expense |
|
280 |
|
|
|
- |
|
|
|
2,241 |
|
|
|
- |
|
Non-interest
expense |
|
6,587 |
|
|
|
4,742 |
|
|
|
21,756 |
|
|
|
18,895 |
|
Income before income
taxes |
|
3,243 |
|
|
|
1,760 |
|
|
|
6,848 |
|
|
|
6,641 |
|
Income tax expense |
|
930 |
|
|
|
378 |
|
|
|
1,869 |
|
|
|
1,503 |
|
Net income |
|
2,313 |
|
|
|
1,382 |
|
|
|
4,979 |
|
|
|
5,138 |
|
Preferred stock
dividends |
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
50 |
|
Net income available to
common stockholders |
$ |
2,313 |
|
|
$ |
1,374 |
|
|
$ |
4,979 |
|
|
$ |
5,088 |
|
Net income per common
share, diluted |
$ |
0.55 |
|
|
$ |
0.48 |
|
|
$ |
1.55 |
|
|
$ |
1.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income |
$ |
2,313 |
|
|
$ |
1,374 |
|
|
$ |
4,979 |
|
|
$ |
5,088 |
|
Net gains
on sale of securities |
|
- |
|
|
|
(3 |
) |
|
|
(431 |
) |
|
|
(78 |
) |
Gains
from insurance proceeds |
|
- |
|
|
|
(120 |
) |
|
|
(1,180 |
) |
|
|
(120 |
) |
Salary
expense related to restricted stock and SERP |
|
- |
|
|
|
- |
|
|
|
446 |
|
|
|
- |
|
Due
diligence & merger expense |
|
280 |
|
|
|
- |
|
|
|
2,241 |
|
|
|
- |
|
Accretion
of purchase accounting fair value marks |
|
(761 |
) |
|
|
- |
|
|
|
(761 |
) |
|
|
- |
|
Amortization of Intangible Assets |
|
27 |
|
|
|
- |
|
|
|
37 |
|
|
|
- |
|
Income
tax adjustment |
|
165 |
|
|
|
34 |
|
|
|
131 |
|
|
|
55 |
|
Non-GAAP
net income (Core earnings) |
$ |
2,024 |
|
|
$ |
1,285 |
|
|
$ |
5,462 |
|
|
$ |
4,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.48 |
|
|
$ |
0.46 |
|
|
$ |
1.71 |
|
|
$ |
1.76 |
|
Diluted |
$ |
0.48 |
|
|
$ |
0.45 |
|
|
$ |
1.70 |
|
|
$ |
1.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
4,203 |
|
|
|
2,812 |
|
|
|
3,186 |
|
|
|
2,802 |
|
Diluted |
|
4,230 |
|
|
|
2,857 |
|
|
|
3,219 |
|
|
|
2,847 |
|
DNB Financial Corporation |
Selected Financial Data
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
Earnings and Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income available to common stockholders |
$ |
2,313 |
|
|
$ |
1 |
|
|
$ |
1,109 |
|
|
$ |
1,556 |
|
|
$ |
1,374 |
|
Basic
earnings per common share |
$ |
0.55 |
|
|
$ |
0.00 |
|
|
$ |
0.39 |
|
|
$ |
0.55 |
|
|
$ |
0.49 |
|
Diluted
earnings per common share |
$ |
0.55 |
|
|
$ |
0.00 |
|
|
$ |
0.39 |
|
|
$ |
0.54 |
|
|
$ |
0.48 |
|
Core
diluted earnings per common share (non-GAAP) |
$ |
0.48 |
|
|
$ |
0.42 |
|
|
$ |
0.47 |
|
|
$ |
0.40 |
|
|
$ |
0.45 |
|
Dividends
per common share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
Book
value per common share |
$ |
22.36 |
|
|
$ |
20.76 |
|
|
$ |
20.90 |
|
|
$ |
20.45 |
|
|
$ |
19.65 |
|
Tangible
book value per common share |
$ |
18.56 |
|
|
$ |
20.73 |
|
|
$ |
20.88 |
|
|
$ |
20.38 |
|
|
$ |
19.58 |
|
Average
common shares outstanding |
|
4,203 |
|
|
|
2,853 |
|
|
|
2,849 |
|
|
|
2,833 |
|
|
|
2,812 |
|
Average
diluted common shares outstanding |
|
4,230 |
|
|
|
2,886 |
|
|
|
2,883 |
|
|
|
2,869 |
|
|
|
2,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
0.84 |
% |
|
|
0.00 |
% |
|
|
0.59 |
% |
|
|
0.84 |
% |
|
|
0.74 |
% |
Core
return on average assets (non-GAAP) |
|
0.74 |
% |
|
|
0.63 |
% |
|
|
0.71 |
% |
|
|
0.63 |
% |
|
|
0.69 |
% |
Return on
average equity |
|
9.78 |
% |
|
|
0.01 |
% |
|
|
7.56 |
% |
|
|
10.94 |
% |
|
|
9.32 |
% |
Core
return on average equity (non-GAAP) |
|
8.56 |
% |
|
|
8.23 |
% |
|
|
8.54 |
% |
|
|
8.16 |
% |
|
|
8.66 |
% |
Return on
average tangible equity |
|
12.04 |
% |
|
|
0.01 |
% |
|
|
7.57 |
% |
|
|
10.98 |
% |
|
|
9.35 |
% |
Core
return on average tangible equity (non-GAAP) |
|
10.34 |
% |
|
|
8.75 |
% |
|
|
9.17 |
% |
|
|
8.19 |
% |
|
|
8.67 |
% |
Net
interest margin |
|
3.63 |
% |
|
|
3.06 |
% |
|
|
3.08 |
% |
|
|
3.15 |
% |
|
|
3.14 |
% |
Core net
interest margin (non-GAAP) |
|
3.33 |
% |
|
|
3.06 |
% |
|
|
3.08 |
% |
|
|
3.15 |
% |
|
|
3.14 |
% |
Efficiency ratio |
|
62.47 |
% |
|
|
94.43 |
% |
|
|
74.38 |
% |
|
|
78.66 |
% |
|
|
68.27 |
% |
Core
efficiency ratio (non-GAAP) |
|
64.41 |
% |
|
|
72.73 |
% |
|
|
70.39 |
% |
|
|
72.33 |
% |
|
|
70.38 |
% |
Wtd
average yield on earning assets |
|
4.10 |
% |
|
|
3.47 |
% |
|
|
3.46 |
% |
|
|
3.51 |
% |
|
|
3.53 |
% |
Core wtd
average yield on earning assets (non-GAAP) |
|
3.91 |
% |
|
|
3.47 |
% |
|
|
3.46 |
% |
|
|
3.51 |
% |
|
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs (recoveries) to average loans |
|
0.01 |
% |
|
|
0.03 |
% |
|
|
0.10 |
% |
|
|
0.08 |
% |
|
|
0.07 |
% |
Non-performing loans/Total loans |
|
1.14 |
% |
|
|
1.36 |
% |
|
|
1.54 |
% |
|
|
1.06 |
% |
|
|
1.06 |
% |
Non-performing assets/Total assets |
|
1.13 |
% |
|
|
1.28 |
% |
|
|
1.38 |
% |
|
|
1.02 |
% |
|
|
1.02 |
% |
Allowance
for credit loss/Total loans |
|
0.66 |
% |
|
|
1.04 |
% |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.02 |
% |
Allowance
for credit loss/Non-performing loans |
|
57.74 |
% |
|
|
76.28 |
% |
|
|
69.12 |
% |
|
|
99.64 |
% |
|
|
96.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity/Total assets |
|
8.86 |
% |
|
|
7.69 |
% |
|
|
7.79 |
% |
|
|
7.64 |
% |
|
|
7.41 |
% |
Tangible
equity/Tangible assets |
|
7.46 |
% |
|
|
7.68 |
% |
|
|
7.78 |
% |
|
|
7.61 |
% |
|
|
7.40 |
% |
Tier 1
leverage ratio |
|
8.42 |
% |
|
|
9.06 |
% |
|
|
9.11 |
% |
|
|
9.16 |
% |
|
|
8.94 |
% |
Common
equity tier 1 risk-based capital ratio |
|
9.59 |
% |
|
|
10.50 |
% |
|
|
10.82 |
% |
|
|
10.71 |
% |
|
|
10.44 |
% |
Tier 1
risk-based capital ratio |
|
10.65 |
% |
|
|
12.06 |
% |
|
|
12.43 |
% |
|
|
12.34 |
% |
|
|
12.08 |
% |
Total
risk-based capital ratio |
|
12.48 |
% |
|
|
14.72 |
% |
|
|
15.16 |
% |
|
|
15.07 |
% |
|
|
14.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management
Assets under care* |
$ |
214,170 |
|
|
$ |
210,800 |
|
|
$ |
200,586 |
|
|
$ |
199,296 |
|
|
$ |
191,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 |
|
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
Mar 31, |
|
Dec 31, |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
10,617 |
|
|
$ |
6,277 |
|
|
$ |
6,180 |
|
|
$ |
6,105 |
|
|
$ |
6,190 |
|
|
Interest expense |
|
1,206 |
|
|
|
760 |
|
|
|
708 |
|
|
|
650 |
|
|
|
717 |
|
|
Net interest
income |
|
9,411 |
|
|
|
5,517 |
|
|
|
5,472 |
|
|
|
5,455 |
|
|
|
5,473 |
|
|
Provision for loan
losses |
|
100 |
|
|
|
100 |
|
|
|
200 |
|
|
|
330 |
|
|
|
290 |
|
|
Non-interest
income |
|
1,279 |
|
|
|
1,142 |
|
|
|
1,184 |
|
|
|
1,109 |
|
|
|
1,107 |
|
|
Gain from insurance
proceeds |
|
- |
|
|
|
30 |
|
|
|
- |
|
|
|
1,150 |
|
|
|
120 |
|
|
Gain on sale of
investment securities |
|
- |
|
|
|
197 |
|
|
|
203 |
|
|
|
31 |
|
|
|
4 |
|
|
Gain on sale of SBA
loans |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
39 |
|
|
|
68 |
|
|
(Gain) loss on sale /
write-down of OREO and ORA |
|
480 |
|
|
|
160 |
|
|
|
4 |
|
|
|
- |
|
|
|
(20 |
) |
|
Due diligence &
merger expense |
|
280 |
|
|
|
1,498 |
|
|
|
275 |
|
|
|
188 |
|
|
|
- |
|
|
Non-interest
expense |
|
6,587 |
|
|
|
5,046 |
|
|
|
4,893 |
|
|
|
5,230 |
|
|
|
4,742 |
|
|
Income before income
taxes |
|
3,243 |
|
|
|
82 |
|
|
|
1,487 |
|
|
|
2,036 |
|
|
|
1,760 |
|
|
Income tax expense |
|
930 |
|
|
|
81 |
|
|
|
378 |
|
|
|
480 |
|
|
|
378 |
|
|
Net income |
|
2,313 |
|
|
|
1 |
|
|
|
1,109 |
|
|
|
1,556 |
|
|
|
1,382 |
|
|
Preferred stock
dividends |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
|
Net income available to
common stockholders |
$ |
2,313 |
|
|
$ |
1 |
|
|
$ |
1,109 |
|
|
$ |
1,556 |
|
|
$ |
1,374 |
|
|
*Net income per common
share, diluted |
$ |
0.55 |
|
|
$ |
0.00 |
|
|
$ |
0.39 |
|
|
$ |
0.54 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*The sum
of the four quarters EPS data does not equal the annual EPS data
due to the issuance of 1,368,527 additional shares in
the fourth quarter, to complete the acquisition of East
River. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Financial
Condition (Unaudited) |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
Mar 31, |
|
Dec 31, |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
FINANCIAL
POSITION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
22,103 |
|
|
$ |
30,442 |
|
|
$ |
20,146 |
|
|
$ |
38,740 |
|
|
$ |
21,119 |
|
|
Investment
securities |
|
182,206 |
|
|
|
195,477 |
|
|
|
223,140 |
|
|
|
207,023 |
|
|
|
220,208 |
|
|
Loans held for
sale |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
359 |
|
|
|
- |
|
|
Loans and leases |
|
817,529 |
|
|
|
509,475 |
|
|
|
494,417 |
|
|
|
489,366 |
|
|
|
481,758 |
|
|
Allowance for credit
losses |
|
(5,373 |
) |
|
|
(5,303 |
) |
|
|
(5,247 |
) |
|
|
(5,172 |
) |
|
|
(4,935 |
) |
|
Net loans and
leases |
|
812,156 |
|
|
|
504,172 |
|
|
|
489,170 |
|
|
|
484,194 |
|
|
|
476,823 |
|
|
Premises and equipment,
net |
|
9,243 |
|
|
|
9,033 |
|
|
|
8,557 |
|
|
|
7,817 |
|
|
|
6,806 |
|
|
Goodwill |
|
15,590 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other assets |
|
29,387 |
|
|
|
31,148 |
|
|
|
23,159 |
|
|
|
23,307 |
|
|
|
23,862 |
|
|
Total assets |
$ |
1,070,685 |
|
|
$ |
770,272 |
|
|
$ |
764,172 |
|
|
$ |
761,440 |
|
|
$ |
748,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits |
$ |
173,467 |
|
|
$ |
146,731 |
|
|
$ |
135,212 |
|
|
$ |
131,951 |
|
|
$ |
125,581 |
|
|
NOW |
|
224,219 |
|
|
|
169,400 |
|
|
|
185,279 |
|
|
|
201,566 |
|
|
|
185,973 |
|
|
Money markets |
|
184,783 |
|
|
|
160,312 |
|
|
|
149,108 |
|
|
|
138,241 |
|
|
|
137,555 |
|
|
Savings |
|
86,176 |
|
|
|
73,867 |
|
|
|
75,236 |
|
|
|
75,535 |
|
|
|
72,660 |
|
|
Core Deposits |
|
668,645 |
|
|
|
550,310 |
|
|
|
544,835 |
|
|
|
547,293 |
|
|
|
521,769 |
|
|
Time deposits |
|
187,256 |
|
|
|
71,920 |
|
|
|
73,560 |
|
|
|
71,264 |
|
|
|
66,018 |
|
|
Brokered deposits |
|
29,286 |
|
|
|
23,313 |
|
|
|
23,449 |
|
|
|
18,498 |
|
|
|
18,488 |
|
|
Total Deposits |
|
885,187 |
|
|
|
645,543 |
|
|
|
641,844 |
|
|
|
637,055 |
|
|
|
606,275 |
|
|
FHLB advances |
|
55,332 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
30,000 |
|
|
Repurchase
agreements |
|
11,889 |
|
|
|
19,483 |
|
|
|
17,748 |
|
|
|
21,661 |
|
|
|
32,416 |
|
|
Subordinated Debt |
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
Other borrowings |
|
9,697 |
|
|
|
9,710 |
|
|
|
9,721 |
|
|
|
9,733 |
|
|
|
9,743 |
|
|
Other liabilities |
|
3,990 |
|
|
|
6,569 |
|
|
|
5,572 |
|
|
|
5,061 |
|
|
|
5,146 |
|
|
Stockholders'
equity |
|
94,840 |
|
|
|
59,217 |
|
|
|
59,537 |
|
|
|
58,180 |
|
|
|
55,488 |
|
|
Total liabilities and
stockholders' equity |
$ |
1,070,685 |
|
|
$ |
770,272 |
|
|
$ |
764,172 |
|
|
$ |
761,440 |
|
|
$ |
748,818 |
|
|
DNB Financial Corporation |
Condensed Consolidated Statements of Financial
Condition - Quarterly Average Balances (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
FINANCIAL
POSITION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
37,239 |
|
|
$ |
25,208 |
|
|
$ |
36,113 |
|
|
$ |
23,080 |
|
|
$ |
19,532 |
|
|
Investment
securities |
|
192,359 |
|
|
|
217,593 |
|
|
|
213,235 |
|
|
|
215,565 |
|
|
|
227,936 |
|
|
Loans held for
sale |
|
137 |
|
|
|
87 |
|
|
|
147 |
|
|
|
28 |
|
|
|
61 |
|
|
Loans and leases |
|
815,470 |
|
|
|
498,627 |
|
|
|
488,396 |
|
|
|
483,125 |
|
|
|
473,643 |
|
|
Allowance for credit
losses |
|
(5,512 |
) |
|
|
(5,344 |
) |
|
|
(5,265 |
) |
|
|
(5,025 |
) |
|
|
(4,831 |
) |
|
Net loans and
leases |
|
809,958 |
|
|
|
493,283 |
|
|
|
483,131 |
|
|
|
478,100 |
|
|
|
468,812 |
|
|
Premises and equipment,
net |
|
9,218 |
|
|
|
8,844 |
|
|
|
8,332 |
|
|
|
7,222 |
|
|
|
6,609 |
|
|
Goodwill |
|
15,590 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other assets |
|
22,457 |
|
|
|
19,829 |
|
|
|
19,222 |
|
|
|
19,678 |
|
|
|
19,415 |
|
|
Total assets |
$ |
1,086,958 |
|
|
$ |
764,844 |
|
|
$ |
760,180 |
|
|
$ |
743,673 |
|
|
$ |
742,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits |
$ |
181,415 |
|
|
$ |
137,437 |
|
|
$ |
131,134 |
|
|
$ |
120,391 |
|
|
$ |
122,235 |
|
|
NOW |
|
224,101 |
|
|
|
176,704 |
|
|
|
192,339 |
|
|
|
193,548 |
|
|
|
183,129 |
|
|
Money markets |
|
177,885 |
|
|
|
156,412 |
|
|
|
142,768 |
|
|
|
137,121 |
|
|
|
140,136 |
|
|
Savings |
|
87,096 |
|
|
|
74,652 |
|
|
|
75,254 |
|
|
|
74,653 |
|
|
|
71,637 |
|
|
Core Deposits |
|
670,497 |
|
|
|
545,205 |
|
|
|
541,495 |
|
|
|
525,713 |
|
|
|
517,137 |
|
|
Time deposits |
|
186,287 |
|
|
|
72,324 |
|
|
|
75,541 |
|
|
|
70,927 |
|
|
|
68,731 |
|
|
Brokered deposits |
|
27,406 |
|
|
|
23,307 |
|
|
|
20,754 |
|
|
|
18,491 |
|
|
|
18,638 |
|
|
Total Deposits |
|
884,190 |
|
|
|
640,836 |
|
|
|
637,790 |
|
|
|
615,131 |
|
|
|
604,506 |
|
|
FHLB advances |
|
64,846 |
|
|
|
20,000 |
|
|
|
20,003 |
|
|
|
23,111 |
|
|
|
22,391 |
|
|
Repurchase
agreements |
|
18,972 |
|
|
|
18,381 |
|
|
|
19,103 |
|
|
|
23,040 |
|
|
|
31,914 |
|
|
Subordinated Debt |
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
Other borrowings |
|
9,799 |
|
|
|
10,383 |
|
|
|
9,728 |
|
|
|
10,783 |
|
|
|
9,875 |
|
|
Other liabilities |
|
5,592 |
|
|
|
5,367 |
|
|
|
4,939 |
|
|
|
4,818 |
|
|
|
5,070 |
|
|
Stockholders'
equity |
|
93,809 |
|
|
|
60,127 |
|
|
|
58,867 |
|
|
|
57,040 |
|
|
|
58,859 |
|
|
Total liabilities and
stockholders' equity |
$ |
1,086,958 |
|
|
$ |
764,844 |
|
|
$ |
760,180 |
|
|
$ |
743,673 |
|
|
$ |
742,365 |
|
|
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