DNB Financial Corporation (Nasdaq:DNBF), today reported net income
available to common stockholders in accordance with generally
accepted accounting principles (“GAAP”) of $1.6 million, or $0.54
per diluted share, for the quarter ending March 31, 2016, compared
with $1.3 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 $1.2 million, or $0.41 per
diluted share, for the quarter ending March 31, 2016. Core
earnings, which is a non-GAAP measure of net income, excludes gains
from insurance proceeds of $1.15 million, certain compensation
expense of $446,000, merger-related expenses of $188,000, and an
associated income tax adjustment of $122,000. 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,
"We are very pleased with our core first quarter results, which
included disciplined loan growth and solid credit quality. We also
continue to see a steady increase in service charges, interchange
fees and wealth management fees resulting from our efforts to
diversify our revenue streams. We are well-positioned for future
organic growth and are excited about our pending combination with
East River Bank.”
Highlights
- Wealth management assets under care increased 4.1% (not
annualized) to $199.3 million as of March 31, 2016 from $191.5
million as of December 31, 2015.
- Total loans increased 5.51% on a year-over-year basis and 1.6%
(not annualized) on a sequential quarter basis.
- Asset quality remained stable. Net loan charge-offs were
only 0.08% (annualized) of total average loans for the first
quarter of 2016, and non-performing loans were only 1.06% of total
loans at quarter-end.
- The net interest margin remained fairly constant at 3.15% for
the first quarter. On a sequential quarter basis, core
deposits increased 4.9% (not annualized) and were 85.9% of total
deposits as of March 31, 2016.
- On April 4, 2016, the Company announced an agreement to acquire
East River Bank in a stock and cash transaction valued at $49
million. The acquisition, which is subject to regulatory approvals
and the approval of East River and DNB shareholders, is expected to
be immediately accretive to earnings, excluding one-time costs, and
is expected to close in the second half of 2016. Headquartered in
Philadelphia, East River Bank had total assets of $311 million as
of December 31, 2015.
- On April 4, 2016, the Company announced that William J. Hieb
was named permanent President and Chief Executive Officer.
The Company also announced that James H. Thornton was named
permanent Chairman of the Board of Directors.
- The Company paid a quarterly cash dividend of $0.07 on March
21, 2016.
Income Statement Summary
Based on core earnings of $1.2 million, the
Company’s performance for the quarter ending March 31, 2016
resulted in a return on average assets (“ROAA”) and return on
average tangible common equity (“ROTCE”) of 0.63% and 8.19%,
respectively. The ROAA and ROTCE were 0.69% and 8.15%,
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 March 31, 2016 was $6.1 million, which represented an
$85,000 decline from the quarter ending December 31, 2015, and a
$109,000, or 1.8% increase from $6.0 million for the three months
ending March 31, 2015. The year-over-year increase is
primarily due to a 5.4% rise in total loans.
Total interest expense decreased $67,000 to
$650,000 for the first quarter of 2016 from $717,000 for the fourth
quarter of 2015, due to a four basis point reduction in the
weighted average cost of interest-bearing liabilities to
0.38%. Total interest expense increased $44,000 compared with
the three months ending March 31, 2015. The year-over-year
increase was primarily due to a greater amount of interest-bearing
liabilities and the issuance of $9.8 million of subordinated debt
at the end of the first quarter of 2015.
The net interest margin remained stable despite
continuing pressure due to the flattening yield curve. The
net interest margin was 3.15% for the first quarter of 2016
compared with 3.14% for both the fourth quarter of 2015 and first
quarter of 2015. As of March 31, 2016, the loan-to-deposit
ratio was 77%, which suggests that the Company is largely
core-funded.
The loan loss provision was $330,000 for the
most recent quarter compared with $290,000 for the three months
ended December 31, 2015 and $300,000 for the three months ended
March 31, 2015. Net loan charge-offs were only $93,000, or
0.08% (annualized) of total average loans, for the March 2016
quarter. As of March 31, 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 first quarter
of 2016 was $2.3 million, compared with $1.3 million for both the
prior quarter and the quarter ended March 31, 2015. Wealth
management fees were $397,000 for the first quarter of 2016
compared with $352,000 for the quarter ending March 31, 2015.
Wealth management fees represented approximately one-third of total
fee income. 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. Please see the “Reconciliation
of Non-GAAP Financial Measures” on page 6 of the release.
Non-interest expense was $5.4 million for the
first quarter of 2016, compared with $4.7 million for the quarter
ending December 31, 2015 and $4.8 million for the quarter ending
March 31, 2015. Non-interest expense for the quarter ending
March 31, 2016 included net compensation expense of $446,000
associated with the passing of the former Chairman and CEO, William
S. Latoff and merger-related costs of $188,000 associated with East
River Bank. Excluding these items, core non-interest expense
was $4.8 million, which represented a slight decrease from that of
the corresponding quarter last year, reflecting management’s
disciplined expense controls. Annual increases in salary and
employee benefit costs were largely offset by declines in occupancy
expense, and professional and consulting fees. Please see the
Reconciliation of Non-GAAP Financial Measures on page 6 of the
release.
Balance Sheet Summary
As of March 31, 2016, total assets were $761.4
million compared with $748.8 million as of December 31, 2015.
Total assets grew $12.6 million, or 1.7% (not annualized), on a
sequential quarter basis largely due to loan growth and an increase
in cash and cash equivalents, which was partially offset by a $13.2
million decrease in investment securities. Total deposits
increased $30.8 million, or 5.1% (not annualized), on a sequential
quarter basis primarily due to growth in NOW accounts and
non-interest-bearing deposits. As of March 31, 2016, total
shareholders’ equity was $58.2 million, compared with $55.5 million
as of December 31, 2015. Tangible book value per share was
$20.38 as of March 31, 2016 compared with $19.58 as of December 31,
2015.
On a sequential quarter basis, total loans
increased $7.6 million, or 1.6% (not annualized), to $489.4 million
as of March 31, 2016. As of the same date, total loans were
64.3% 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.
On a sequential quarter basis, total core
deposits grew $25.5 million, or 4.9% (not annualized), and were
85.9% of total deposits as of March 31, 2016. Total deposits
were $637.1 million as of March 31, 2016 compared with $606.3
million as of December 31, 2015.
Capital ratios continue to exceed regulatory
standards for well capitalized institutions. At March 31,
2016, the Tier 1 leverage ratio was 9.2%, Tier 1 risk-based capital
was 12.3%, and total risk based capital ratio was 15.1%. As of the
same date, the tangible common equity-to-tangible assets ratio was
7.6%.
Asset Quality Summary
Net charge-offs were only 0.08% of total average
loans for the quarter ending March 31, 2016 compared with 0.07% for
the quarter ending December 31, 2015, and 0.01% for the quarter
ending March 31, 2015. Total non-performing assets, including
loans and other real estate property, were $7.8 million as of March
31, 2016 compared with $7.7 million as of December 31, 2015.
The ratio of non-performing assets to total assets was 1.02% and
non-performing loans were 1.06% of total loans as of March 31,
2016. As of the same date, the allowance for loan losses to
total loans ratio was 1.06%.
Interest Rate Risk ManagementDNB'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.
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 intends to file with the SEC a Registration
Statement on Form S-4 relating to the proposed merger, which will
include 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 WHEN IT BECOMES AVAILABLE
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.
|
|
|
|
DNB Financial Corporation |
Condensed Consolidated Statements of Income
(Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
|
2016 |
|
|
|
2015 |
|
EARNINGS: |
|
|
|
Interest income |
$ |
6,105 |
|
|
$ |
5,996 |
|
Interest expense |
|
650 |
|
|
|
606 |
|
Net interest
income |
|
5,455 |
|
|
|
5,390 |
|
Provision for credit
losses |
|
330 |
|
|
|
300 |
|
Non-interest
income |
|
1,109 |
|
|
|
1,051 |
|
Gain from insurance
proceeds |
|
1,150 |
|
|
|
0 |
|
Gain on sale of
investment securities |
|
31 |
|
|
|
53 |
|
Gain on sale of SBA
loans |
|
39 |
|
|
|
231 |
|
Non-interest
expense |
|
5,418 |
|
|
|
4,824 |
|
Income before income
taxes |
|
2,036 |
|
|
|
1,601 |
|
Income tax expense |
|
480 |
|
|
|
349 |
|
Net income |
|
1,556 |
|
|
|
1,252 |
|
Preferred stock
dividends and accretion of discount |
|
0 |
|
|
|
26 |
|
Net income available to
common stockholders |
$ |
1,556 |
|
|
$ |
1,226 |
|
Net income per common
share, diluted |
$ |
0.54 |
|
|
$ |
0.43 |
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
GAAP net income |
$ |
1,556 |
|
|
$ |
1,252 |
|
Gains from insurance
proceeds |
|
(1,150 |
) |
|
|
0 |
|
Salary expense related
to restricted stock and SERP |
|
446 |
|
|
|
0 |
|
Acquisition costs --
East River Bank |
|
188 |
|
|
|
0 |
|
Income tax
adjustment |
|
122 |
|
|
|
0 |
|
Non-GAAP net income
(Core earnings) |
$ |
1,162 |
|
|
$ |
1,252 |
|
|
|
|
|
Condensed Consolidated Statements of Financial
Condition (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2016 |
|
|
|
2015 |
|
FINANCIAL
POSITION: |
|
|
|
Cash and cash
equivalents |
$ |
38,740 |
|
|
$ |
21,119 |
|
Investment
securities |
|
207,023 |
|
|
|
220,208 |
|
Loans held for
sale |
|
359 |
|
|
|
0 |
|
Loans |
|
489,366 |
|
|
|
481,758 |
|
Allowance for credit
losses |
|
(5,172 |
) |
|
|
(4,935 |
) |
Net loans |
|
484,194 |
|
|
|
476,823 |
|
Premises and equipment,
net |
|
7,817 |
|
|
|
6,806 |
|
Other assets |
|
23,307 |
|
|
|
23,862 |
|
Total assets |
$ |
761,440 |
|
|
$ |
748,818 |
|
|
|
|
|
Deposits |
$ |
637,055 |
|
|
$ |
606,275 |
|
FHLB advances |
|
20,000 |
|
|
|
30,000 |
|
Repurchase
agreements |
|
21,661 |
|
|
|
32,416 |
|
Other borrowings |
|
9,733 |
|
|
|
9,743 |
|
Subordinated debt |
|
9,750 |
|
|
|
9,750 |
|
Other liabilities |
|
5,061 |
|
|
|
5,146 |
|
Stockholders'
equity |
|
58,180 |
|
|
|
55,488 |
|
Total liabilities and
stockholders' equity |
$ |
761,440 |
|
|
$ |
748,818 |
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
Selected Financial Data
(Unaudited) |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
Earnings and Per Share
Data |
|
|
|
|
|
|
|
|
|
Net income available to common
stockholders |
$ |
1,556 |
|
|
$ |
1,374 |
|
|
$ |
1,261 |
|
|
$ |
1,227 |
|
|
$ |
1,226 |
|
Basic earnings per common
share |
$ |
0.55 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
Diluted earnings per common
share |
$ |
0.54 |
|
|
$ |
0.48 |
|
|
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
0.43 |
|
Dividends per common share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
Book value per common share |
$ |
20.45 |
|
|
$ |
19.65 |
|
|
$ |
19.64 |
|
|
$ |
19.04 |
|
|
$ |
18.91 |
|
Tangible book value per common
share |
$ |
20.38 |
|
|
$ |
19.58 |
|
|
$ |
19.57 |
|
|
$ |
18.96 |
|
|
$ |
18.83 |
|
Average common shares
outstanding |
|
2,833 |
|
|
|
2,812 |
|
|
|
2,807 |
|
|
|
2,802 |
|
|
|
2,786 |
|
Average diluted common shares
outstanding |
|
2,869 |
|
|
|
2,857 |
|
|
|
2,852 |
|
|
|
2,848 |
|
|
|
2,833 |
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.84 |
% |
|
|
0.74 |
% |
|
|
0.68 |
% |
|
|
0.66 |
% |
|
|
0.69 |
% |
Return on average equity |
|
10.94 |
% |
|
|
9.32 |
% |
|
|
8.71 |
% |
|
|
8.75 |
% |
|
|
8.13 |
% |
Return on average tangible
equity |
|
10.98 |
% |
|
|
9.35 |
% |
|
|
8.75 |
% |
|
|
8.79 |
% |
|
|
8.15 |
% |
Net interest margin |
|
3.15 |
% |
|
|
3.14 |
% |
|
|
3.13 |
% |
|
|
3.11 |
% |
|
|
3.14 |
% |
Efficiency ratio |
|
78.66 |
% |
|
|
68.27 |
% |
|
|
68.09 |
% |
|
|
67.29 |
% |
|
|
69.87 |
% |
Wtd average yield on earning
assets |
|
3.51 |
% |
|
|
3.53 |
% |
|
|
3.52 |
% |
|
|
3.48 |
% |
|
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
Net charge-offs to average
loans |
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.41 |
% |
|
|
0.43 |
% |
|
|
0.01 |
% |
Non-performing loans/Total
loans |
|
1.06 |
% |
|
|
1.06 |
% |
|
|
0.90 |
% |
|
|
0.98 |
% |
|
|
1.47 |
% |
Non-performing assets/Total
assets |
|
1.02 |
% |
|
|
1.02 |
% |
|
|
0.87 |
% |
|
|
0.88 |
% |
|
|
1.03 |
% |
Allowance for credit loss/Total
loans |
|
1.06 |
% |
|
|
1.02 |
% |
|
|
1.01 |
% |
|
|
1.08 |
% |
|
|
1.12 |
% |
Allowance for credit
loss/Non-performing loans |
|
99.64 |
% |
|
|
96.91 |
% |
|
|
111.32 |
% |
|
|
110.29 |
% |
|
|
76.24 |
% |
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
Total equity/Total assets |
|
7.64 |
% |
|
|
7.41 |
% |
|
|
7.87 |
% |
|
|
7.49 |
% |
|
|
7.51 |
% |
Tangible equity/Tangible
assets |
|
7.61 |
% |
|
|
7.40 |
% |
|
|
7.85 |
% |
|
|
7.48 |
% |
|
|
7.49 |
% |
Tangible common equity/Tangible
assets |
|
7.61 |
% |
|
|
7.40 |
% |
|
|
7.42 |
% |
|
|
7.05 |
% |
|
|
7.06 |
% |
Tier 1 leverage ratio |
|
9.16 |
% |
|
|
8.94 |
% |
|
|
9.23 |
% |
|
|
9.02 |
% |
|
|
8.98 |
% |
Common equity tier 1 risk-based
capital ratio |
|
10.71 |
% |
|
|
10.44 |
% |
|
|
10.46 |
% |
|
|
10.17 |
% |
|
|
10.28 |
% |
Tier 1 risk-based capital
ratio |
|
12.34 |
% |
|
|
12.08 |
% |
|
|
12.74 |
% |
|
|
12.43 |
% |
|
|
12.63 |
% |
Total risk-based capital ratio |
|
15.07 |
% |
|
|
14.78 |
% |
|
|
15.46 |
% |
|
|
15.21 |
% |
|
|
15.51 |
% |
|
|
|
|
|
|
|
|
|
|
Wealth Management |
|
|
|
|
|
|
|
|
|
Assets under care* |
$ |
199,296 |
|
|
|
191,529 |
|
|
|
184,535 |
|
|
|
189,411 |
|
|
|
178,339 |
|
|
|
|
|
|
|
|
|
|
|
*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 |
|
|
Mar 31, |
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
Mar 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
EARNINGS: |
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
6,105 |
|
|
$ |
6,190 |
|
|
$ |
6,161 |
|
|
$ |
6,131 |
|
|
$ |
5,996 |
|
|
Interest expense |
|
650 |
|
|
|
717 |
|
|
|
711 |
|
|
|
678 |
|
|
|
606 |
|
|
Net interest
income |
|
5,455 |
|
|
|
5,473 |
|
|
|
5,450 |
|
|
|
5,453 |
|
|
|
5,390 |
|
|
Provision for credit
losses |
|
330 |
|
|
|
290 |
|
|
|
100 |
|
|
|
415 |
|
|
|
300 |
|
|
Non-interest
income |
|
1,109 |
|
|
|
1,107 |
|
|
|
1,027 |
|
|
|
1,142 |
|
|
|
1,051 |
|
|
Gain from insurance
proceeds |
|
1,150 |
|
|
|
120 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
Gain on sale of
investment securities |
|
31 |
|
|
|
4 |
|
|
|
10 |
|
|
|
11 |
|
|
|
53 |
|
|
Gain on sale of SBA
loans |
|
39 |
|
|
|
68 |
|
|
|
0 |
|
|
|
185 |
|
|
|
231 |
|
|
(Gain) loss on sale /
write-down of OREO and ORA |
|
0 |
|
|
|
(20 |
) |
|
|
154 |
|
|
|
0 |
|
|
|
0 |
|
|
Non-interest
expense |
|
5,418 |
|
|
|
4,742 |
|
|
|
4,605 |
|
|
|
4,724 |
|
|
|
4,824 |
|
|
Income before income
taxes |
|
2,036 |
|
|
|
1,760 |
|
|
|
1,628 |
|
|
|
1,652 |
|
|
|
1,601 |
|
|
Income tax expense |
|
480 |
|
|
|
378 |
|
|
|
359 |
|
|
|
417 |
|
|
|
349 |
|
|
Net income |
|
1,556 |
|
|
|
1,382 |
|
|
|
1,269 |
|
|
|
1,235 |
|
|
|
1,252 |
|
|
Preferred stock
dividends and accretion of discount |
|
0 |
|
|
|
8 |
|
|
|
8 |
|
|
|
8 |
|
|
|
26 |
|
|
Net income available to
common stockholders |
$ |
1,556 |
|
|
$ |
1,374 |
|
|
$ |
1,261 |
|
|
$ |
1,227 |
|
|
$ |
1,226 |
|
|
Net income per common
share, diluted |
$ |
0.54 |
|
|
$ |
0.48 |
|
|
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Financial
Condition (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
Mar 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
FINANCIAL
POSITION: |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
38,740 |
|
|
$ |
21,119 |
|
|
$ |
18,959 |
|
|
$ |
27,493 |
|
|
$ |
28,335 |
|
|
Investment
securities |
|
207,023 |
|
|
|
220,208 |
|
|
|
227,363 |
|
|
|
231,712 |
|
|
|
232,958 |
|
|
Loans held for
sale |
|
359 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
Loans and leases |
|
489,366 |
|
|
|
481,758 |
|
|
|
470,396 |
|
|
|
472,335 |
|
|
|
464,100 |
|
|
Allowance for credit
losses |
|
(5,172 |
) |
|
|
(4,935 |
) |
|
|
(4,729 |
) |
|
|
(5,108 |
) |
|
|
(5,190 |
) |
|
Net loans and
leases |
|
484,194 |
|
|
|
476,823 |
|
|
|
465,667 |
|
|
|
467,227 |
|
|
|
458,910 |
|
|
Premises and equipment,
net |
|
7,817 |
|
|
|
6,806 |
|
|
|
6,630 |
|
|
|
6,629 |
|
|
|
7,490 |
|
|
Other assets |
|
23,307 |
|
|
|
23,862 |
|
|
|
23,272 |
|
|
|
22,882 |
|
|
|
20,747 |
|
|
Total assets |
$ |
761,440 |
|
|
$ |
748,818 |
|
|
$ |
741,891 |
|
|
$ |
755,943 |
|
|
$ |
748,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits |
$ |
131,951 |
|
|
$ |
125,581 |
|
|
$ |
120,018 |
|
|
$ |
122,642 |
|
|
$ |
113,419 |
|
|
NOW |
|
201,566 |
|
|
|
185,973 |
|
|
|
189,502 |
|
|
|
209,606 |
|
|
|
215,799 |
|
|
Money markets |
|
138,241 |
|
|
|
137,555 |
|
|
|
139,213 |
|
|
|
145,283 |
|
|
|
144,648 |
|
|
Savings |
|
75,535 |
|
|
|
72,660 |
|
|
|
71,316 |
|
|
|
73,461 |
|
|
|
70,363 |
|
|
Core Deposits |
|
547,293 |
|
|
|
521,769 |
|
|
|
520,049 |
|
|
|
550,992 |
|
|
|
544,229 |
|
|
Time deposits |
|
71,264 |
|
|
|
66,018 |
|
|
|
69,744 |
|
|
|
56,729 |
|
|
|
72,784 |
|
|
Brokered deposits |
|
18,498 |
|
|
|
18,488 |
|
|
|
18,665 |
|
|
|
18,655 |
|
|
|
10,248 |
|
|
Total Deposits |
|
637,055 |
|
|
|
606,275 |
|
|
|
608,458 |
|
|
|
626,376 |
|
|
|
627,261 |
|
|
FHLB advances |
|
20,000 |
|
|
|
30,000 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
Repurchase
agreements |
|
21,661 |
|
|
|
32,416 |
|
|
|
30,501 |
|
|
|
28,211 |
|
|
|
20,316 |
|
|
Subordinated debt |
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
0 |
|
|
Other borrowings |
|
9,733 |
|
|
|
9,743 |
|
|
|
9,754 |
|
|
|
9,764 |
|
|
|
19,524 |
|
|
Other liabilities |
|
5,061 |
|
|
|
5,146 |
|
|
|
5,060 |
|
|
|
5,218 |
|
|
|
5,166 |
|
|
Stockholders'
equity |
|
58,180 |
|
|
|
55,488 |
|
|
|
58,368 |
|
|
|
56,624 |
|
|
|
56,173 |
|
|
Total liabilities and
stockholders' equity |
$ |
761,440 |
|
|
$ |
748,818 |
|
|
$ |
741,891 |
|
|
$ |
755,943 |
|
|
$ |
748,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DNB Financial Corporation |
Condensed Consolidated Statements of Financial
Condition - Quarterly Average Balances (Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31, |
|
Dec 31, |
|
Sept 30, |
|
June 30, |
|
Mar 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
FINANCIAL
POSITION: |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
23,080 |
|
|
$ |
19,532 |
|
|
$ |
19,820 |
|
|
$ |
26,909 |
|
|
$ |
18,037 |
|
|
Investment
securities |
|
215,565 |
|
|
|
227,936 |
|
|
|
230,402 |
|
|
|
239,364 |
|
|
|
237,697 |
|
|
Loans held for
sale |
|
28 |
|
|
|
61 |
|
|
|
74 |
|
|
|
96 |
|
|
|
66 |
|
|
Loans and leases |
|
483,125 |
|
|
|
473,643 |
|
|
|
469,896 |
|
|
|
459,464 |
|
|
|
460,585 |
|
|
Allowance for credit
losses |
|
(5,025 |
) |
|
|
(4,831 |
) |
|
|
(5,182 |
) |
|
|
(5,280 |
) |
|
|
(5,000 |
) |
|
Net loans and
leases |
|
478,100 |
|
|
|
468,812 |
|
|
|
464,714 |
|
|
|
454,184 |
|
|
|
455,585 |
|
|
Premises and equipment,
net |
|
7,222 |
|
|
|
6,609 |
|
|
|
6,587 |
|
|
|
7,461 |
|
|
|
7,607 |
|
|
Other assets |
|
19,678 |
|
|
|
19,415 |
|
|
|
20,021 |
|
|
|
17,339 |
|
|
|
17,006 |
|
|
Total assets |
$ |
743,673 |
|
|
$ |
742,365 |
|
|
$ |
741,618 |
|
|
$ |
745,353 |
|
|
$ |
735,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits |
$ |
120,391 |
|
|
$ |
122,235 |
|
|
$ |
118,282 |
|
|
$ |
114,458 |
|
|
$ |
108,452 |
|
|
NOW |
|
193,548 |
|
|
|
183,129 |
|
|
|
197,802 |
|
|
|
210,677 |
|
|
|
211,875 |
|
|
Money markets |
|
137,121 |
|
|
|
140,136 |
|
|
|
144,115 |
|
|
|
144,927 |
|
|
|
143,976 |
|
|
Savings |
|
74,653 |
|
|
|
71,637 |
|
|
|
71,740 |
|
|
|
71,762 |
|
|
|
68,238 |
|
|
Core Deposits |
|
525,713 |
|
|
|
517,137 |
|
|
|
531,939 |
|
|
|
541,824 |
|
|
|
532,541 |
|
|
Time deposits |
|
70,927 |
|
|
|
68,731 |
|
|
|
56,702 |
|
|
|
70,079 |
|
|
|
74,618 |
|
|
Brokered deposits |
|
18,491 |
|
|
|
18,638 |
|
|
|
18,658 |
|
|
|
11,543 |
|
|
|
10,241 |
|
|
Total Deposits |
|
615,131 |
|
|
|
604,506 |
|
|
|
607,299 |
|
|
|
623,446 |
|
|
|
617,400 |
|
|
FHLB advances |
|
23,111 |
|
|
|
22,391 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
Repurchase
agreements |
|
23,040 |
|
|
|
31,914 |
|
|
|
31,732 |
|
|
|
20,614 |
|
|
|
17,812 |
|
|
Subordinated Debt |
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
|
|
2,925 |
|
|
Other borrowings |
|
10,783 |
|
|
|
9,875 |
|
|
|
10,000 |
|
|
|
9,791 |
|
|
|
10,214 |
|
|
Other liabilities |
|
4,818 |
|
|
|
5,070 |
|
|
|
5,073 |
|
|
|
5,156 |
|
|
|
5,161 |
|
|
Stockholders'
equity |
|
57,040 |
|
|
|
58,859 |
|
|
|
57,764 |
|
|
|
56,596 |
|
|
|
62,486 |
|
|
Total liabilities and
stockholders' equity |
$ |
743,673 |
|
|
$ |
742,365 |
|
|
$ |
741,618 |
|
|
$ |
745,353 |
|
|
$ |
735,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information, please contact:
Gerald F. Sopp CFO/Executive Vice-President
484.359.3138
gsopp@dnbfirst.com
DNB Financial (NASDAQ:DNBF)
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