DOWNINGTOWN, Pa., Jan. 23, 2012 (GLOBE NEWSWIRE) -- DNB
Financial Corporation ("DNB") (Nasdaq:DNBF), parent
of DNB First, National Association, the oldest national bank
in the greater Philadelphia region, reported a 23.60%
increase in net income and a 98.14% increase in core earnings
for the fourth quarter of 2011, compared to the same period
in 2010. Net income for the three months ended December 31,
2011 was $1.3 million compared to $1.1 million for the same
period in 2010. Earnings per common share for the fourth
quarter of 2011 were $0.43 on a fully diluted basis compared
to $0.34 for the same period in 2010.
Core earnings, which is a non-GAAP measure of net income
excluding gains and losses on the sale of securities and
prepayment penalties on FHLB advances, for the three months
ended December 31, 2011 was $1.3 million compared to
$645,000 for the same period in 2010. The Financial Statement
section in this release includes a reconciliation of core
earnings to the corresponding GAAP financial measure.
William S. Latoff, Chairman and CEO said, "Successful
businesses continue to be successful even in difficult times.
We've navigated through the toughest economic periods
and most volatile markets in memory, and remain strong and
profitable. Our success cannot be attributed to a single
quality, but a combination that includes prudent management,
sound underwriting and a business philosophy that focuses on
relationships and not just the bottom line."
During the three months ended December 31, 2011, net interest
income rose to $5.4 million compared to $4.9 million for the
same period in 2010. The increase was due to a higher level
of loans combined with a reduction in interest expense,
primarily due to lower rates on liabilities. The net interest
margin for the three months ended December 31, 2011 was
3.74%, a 42 basis point increase over the same period in
2010.
Loans grew $7.5 million or 1.90% at December 31, 2011
compared to December 31, 2010 and assets grew $4.8 million
or
0.79%. Deposits increased by $4.8 million or 0.97% to $497.5
million at December 31, 2011 compared to $492.7 million
at
December 31, 2010. Core deposits, i.e., demand deposits,
money market accounts, NOW and savings accounts increased
$37.8 million in aggregate or 10.66%, while time deposits
declined $33.0 million or 23.87%. DNB's composite cost
of funds for the fourth quarter of 2011 dropped 31 basis
points to 0.74% compared to 1.05% for the three months ended
December 31,
2010.
Capital remained strong at the end of the fourth quarter of
2011, as DNB's tier 1 leverage ratio stood at 10.14%,
while its total risk-based capital ratio stood at 15.57%.
Management believes that these levels of capital are
appropriate for current market conditions. Stockholders'
equity increased $5.9 million to $51.1 million at December
31, 2011 compared to $45.2 million at December 31, 2010,
reflecting solid earnings growth.
Non-interest income for the three months ended December 31,
2011, absent gains on the sale of securities, declined
$46,000 or 5.19% to $840,000 compared to the same period in
2010 primarily due to higher annuity sales in 2010.
Non-interest expense for the three months ended December 31,
2011 showed an increase of 4.18% or $171,000, compared to the
same period in 2010, reflecting increases in salary and
benefits costs offset by lower occupancy and FDIC insurance
costs.
Non-performing loans to total loans was 1.89% at December 31,
2011, slightly up from 1.82% at December 31, 2010, but down
from 1.95% at September 30, 2011. During the fourth quarter
of 2011 and 2010, DNB provided $202,000 and $775,000
respectively, for credit losses. The allowance for credit
losses was $6.2 million at December 31, 2011 compared to $5.9
million at December 31, 2010. Our coverage ratio, defined as
the allowance for credit losses as a percentage of
non-performing loans remained strong at 80.66% on December
31, 2011, but declined slightly from December 31, 2010's
ratio of 81.46%.
William J. Hieb, President, Chief Risk and Credit Officer
said, "We believe non-performing loans have stabilized
within a manageable range and we expect fluctuations within
this range to continue as economic conditions slowly improve.
In the meantime, we will continue to provide adequate
reserves as conditions warrant and remain prudent in our
lending decisions. However, we are committed to helping local
families and businesses navigate through these difficult
times."
Net income for the 12 months ended December 31, 2011 was $4.9
million compared to $3.7 million for the same period in
2010. Earnings per common share for the 12 months of 2011
were $1.53 on a fully diluted basis compared to $1.16 for
the
same period in 2010. Core earnings, defined above, improved
to $4.9 million for the 12 months ended December 31, 2011,
compared to $2.7 million for the same period in 2010.
Chairman Latoff concluded, "We are proud of our
accomplishments in 2011, but recognize that we cannot lose
sight of the challenges that lie ahead. It's these
efforts that have allowed DNB First to maintain its
independence, while achieving continued growth. In 2012, we
must continue to strive to be a financially sound institution
on which our shareholders, customers, employees and
communities can rely to help meet their financial
goals."
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. Founded in 1860, DNB First in addition to
providing a broad array of consumer and business banking
products, offers brokerage and insurance services through DNB
Investments & Insurance, and trust services through DNB
Wealth Management. 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 http://www.dnbfirst.com . DNB's Investor
Relations site can be found a h t ttp://investor.dnbfirst.com/.
The DNB Financial Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5968
DNB Financial Corporation (the "Corporation"), may
from time to time make written or oral "forward-looking
statements," including statements contained in the
Corporation's filings with the Securities and Exchange
Commission (including this press release), in its reports to
stockholders and in other communications by the Corporation,
which are made in good faith by the Corporation pursuant to
the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934,
as amended.
These forward-looking statements include statements with
respect to the Corporation'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 the Corporation'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. The following factors, among
others, could cause the Corporation's financial
performance to diffe materially from the plans, objectives,
expectations, estimates and intentions expressed in such
forward-looking statements: the strength of the United States
economy in general and the strength of the local economies in
which the Corporation conducts 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 recent 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 of the
Corporation 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 the Corporation's products and
services; the success of the Corporation 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; acquisitions; changes in consumer
spending and saving habits; the nature, extent, and timing of
governmental actions and reforms, including the rules of
participation for the Small Business Lending Fund (SBLF), a
U.S. Treasury Department program; and the success of the
Corporation at managing the risks involved in the
foregoing.
The Corporation 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
the Corporation on its website or otherwise. The Corporation
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 the Corporation 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 Securities and Exchange
Commission, including our most recent annual report on Form
10-K, as well as any changes in risk factors that we may
identify in our quarterly or other reports filed with the
SEC.
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended December 31, December 31, 2011 2010 2011 2010Interest income $ 6, $ 6, $ 26, $ 26,
Interest expense 1,0321,4744,6447,062
Net interest income | 5,405 | 4,877 | 21,530 | 18,988 |
Provision for credit losses | 202 | 775 | 1,480 | 2,216 |
No-ninterest income | 840 | 886 | 3,605 | 3,423 |
Gain on sale of investment securities | 36 | 633 | 38 | 2,007 |
No-ninterest expense | 4,262 4,091 16,725 16,903 | |||
Income before income taxes | 1,817 1,530 6,968 5,299 | |||
Income tax expense | 513 475 2,066 1,629 | |||
Net income | 1,304 1,055 4,902 3,670 | |||
Preferred stock dividends and accretion of discou | 139 155 779 618 | |||
Net income available to common stockholders | $ 1, $ $ 4, $ 3, | |||
Net income per common share, diluted | $ 0 $ 0 $ 1 $ 1 |
(Dollars in thousands)
Three Months Ended Twelve Months Ended December 31, December 31, 2011 2010 2011 2010GAAP net income | $ 1, | $ 1, | $ 4, | $ 3, |
Gains on sale of investment securities | (36) | (633) | (38) | (2,007) |
Prepayment penalties on FHLB advance | 0 | 0 | 0 | 560 |
Income tax adjustment 1022311491
No-nGAAP net income (Core earnings) $ 1,$ $ 4,$ 2,
Condensed Consolidated Statement of Financial Condition (Unaudited)(Dollars in thousands)
December 31, December 31, 2011 2010Cash and cash equivalents | $ 32, | $ 26, |
Investment securities | 143,957 | 150,592 |
Loans and leases | 403,684 | 396,171 |
Allowance for credit losses | (6,164) | (5,884) |
Net loans and leases | 397,520 | 390,287 |
Premises and equipment, net | 7,846 | 8,248 |
Other assets | 24,899 | 26,845 |
Total assets | $ 607, | $ 602, |
Deposits | $ 497, | $ 492, |
FHLB advances | 20,000 | 25,000 |
Repurchase agreements | 23,770 | 23,349 |
Other borrowings | 9,877 | 11,881 |
Other liabilities | 4,851 | 4,148 |
Stockholders' equity | 51,056 | 45,208 |
Total liabilities and stockholders' equit $ 607,$ 602,
DNB Financial Corporation Selected Financial Data (Unaudited)(Dollars in thousands, except per share data)
Earnings and Per Share Data
Quarterly 2011 2011 2011 2011 2010 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th QtrNet income available to common stockholder | $1,165 | $964 | $1,134 | $860 | $900 |
Basic earnings per common share | $0.43 | $0.36 | $0.42 | $0.32 | $0.34 |
Diluted earnings per common share | $0.43 | $0.36 | $0.42 | $0.32 | $0.34 |
Dividends per common share | $0.03 | $0.03 | $0.03 | $0.03 | $0.03 |
Book value per common share | $14.14 | $14.03 | $13.80 | $12.95 | $12.55 |
Tangible book value per common share | $14.07 | $13.96 | $13.73 | $12.90 | $12.49 |
Average common shares outstanding | 2,686 | 2,678 | 2,670 | 2,664 | 2,650 |
Average diluted common shares outstanding | 2,699 | 2,696 | 2,690 | 2,698 | 2,655 |
Performance Ratios
Return on average assets 0.85% 0.82% 0.84% 0.68% 0.69% Return on average equity 10.08% 10.15% 10.78% 8.95% 8.80% Return on average tangible equity 10.11% 10.19% 10.83% 8.99% 8.84% Net interest margin 3.74% 3.70% 3.65% 3.61% 3.32% Efficiency ratio 68.24% 64.52% 64.25% 69.30% 70.99%
Asset Quality Ratios
Net charg-eoffs to average loans 0.40% 0.48% 0.28% 0.00% 1.04% No-nperforming loans/Total loans 1.89% 1.95% 1.65% 1.67% 1.82% Allowance for credit loss/Total loans 1.53% 1.55% 1.54% 1.54% 1.49% Allowance for credit loss/No-nperforming loans 80.66% 79.32% 93.52% 92.25% 81.46%
Capital Ratios
Total equity/Total assets 8.41% 8.30% 7.73% 7.60% 7.51% Tangible equity/Tangible assets 8.38% 8.27% 7.70% 7.57% 7.51% Tangible common equity/Tangible assets 6.25% 6.14% 5.87% 5.68% 5.56% Tier 1 leverage ratio 10.14% 9.65% 9.42% 9.47% 9.25% Tier 1 ris-kbased capital ratio 14.32% 14.03% 13.51% 13.33% 13.03% Total ris-kbased capital ratio 15.57% 15.29% 14.77% 14.59% 14.28%
CONTACT: Gerald F. Sopp CFO/Executive Vice-President
484.359.3138 gsopp@dnbfirst.com
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