DNB Financial Corp (DNBF, Financial) filed Quarterly Report for the period ended 2010-03-31.
Dnb Financial Corp has a market cap of $19.7 million; its shares were traded at around $7.5 with a P/E ratio of 15.9 and P/S ratio of 0.6. The dividend yield of Dnb Financial Corp stocks is 1.6%.
Gross Loans and Leases. DNB s loans and leases increased $4.5 million to $364.0 million at March 31, 2010 compared to $359.4 million at December 31, 2009. Total commercial loans increased $8.9 million, while residential loans, consumer loans and commercial leases declined $2.4 million, $1.4 million and $583,000, respectively.
Deposits. Deposits were $499.9 million at March 31, 2010 compared to $507.3 million at December 31, 2009. Deposits declined $7.5 million or 1.5% during the three-month period ended March 31, 2010. Time deposits, primarily accounts greater than $100,000, declined $14.0 million, while core deposits, which are comprised of demand, NOW, money markets and savings accounts, increased $6.5 million.
Net income for the three-month period ended March 31, 2010 was $675,000 compared to $480,000 for the same period in 2009. Diluted earnings per common share for the three-month period ended March 31, 2010 was $0.20 compared to $0.14 for the same period in 2009. The $195,000 increase during the most recent three-month period was attributable to a $582,000 increase in net interest income after provision for credit losses and a $291,000 increase in non-interest income, offset by a $496,000 increase in non-interest expense and a $182,000 increase in income tax expense. During the first quarter of 2010, management took $696,000 of gains on the investment portfolio to offset prepayment penalties totaling $560,000, which is included in non-interest expenses and repaid $18.0 million of FHLB advances with a weighted average rate of 5.56%. In addition to reducing the size of the Company s balance sheet and increasing capital ratios, the transaction will increase pre-tax core earnings by $378,000 in 2010.
Interest and dividends on investment securities was $1.5 million for the three-month period ended March 31, 2010, compared to $1.4 million for the same period in 2009. The average balance of investment securities was $196.9 million with an average yield of 3.08% for the current quarter compared to $137.7 million with an average yield of 4.08% for the same period in 2009. The decrease in the yield during the quarter was primarily the result of a declining interest rate environment, coupled with the sales of certain higher yielding securities. Average cash and cash equivalents were $51.1 million for the three-month period ended March 31, 2010, compared to $42.9 million for the same period in 2009. Management s investment strategy for DNB s excess liquidity continues to be to seek investments with shorter durations offering good cash flows and minimal extension risk, ensuring adequate funding for future loan growth.
Interest on borrowings was $728,000 for the three-month period ended March 31, 2010, compared to $958,000 for the same period in 2009. The average balance of borrowings was $76.7 million with an average rate of 3.85% for the current quarter compared to $91.2 million with an average rate of 4.26% for the same period in 2009. The decrease in the average balance and the average rate on borrowings during the three months ended March 31, 2010 compared to the same period in 2009 was attributable to a $16.1 million average decline in FHLB advances, offset by an average $1.6 million increase in repurchase agreements.
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Dnb Financial Corp has a market cap of $19.7 million; its shares were traded at around $7.5 with a P/E ratio of 15.9 and P/S ratio of 0.6. The dividend yield of Dnb Financial Corp stocks is 1.6%.
Highlight of Business Operations:
Investment Securities. Investment securities at March 31, 2010 were $203.2 million (including $2.9 million of trade date sales) compared to $204.1 million at December 31, 2009. The $933,000 decrease in investment securities was primarily due to $73.6 million in sales, principal pay-downs and maturities, offset by the purchase of $74.7 million in investment securities. Included in the $59.2 million of investment securities sales was $2.9 million for securities which had a trade date in March 2010, and a settlement date in April 2010. Trade Date accounting is a method used to record transactions that take place on the date at which an agreement has been entered (the trade date), and not on the date the transaction has been finalized (the settlement date).Gross Loans and Leases. DNB s loans and leases increased $4.5 million to $364.0 million at March 31, 2010 compared to $359.4 million at December 31, 2009. Total commercial loans increased $8.9 million, while residential loans, consumer loans and commercial leases declined $2.4 million, $1.4 million and $583,000, respectively.
Deposits. Deposits were $499.9 million at March 31, 2010 compared to $507.3 million at December 31, 2009. Deposits declined $7.5 million or 1.5% during the three-month period ended March 31, 2010. Time deposits, primarily accounts greater than $100,000, declined $14.0 million, while core deposits, which are comprised of demand, NOW, money markets and savings accounts, increased $6.5 million.
Net income for the three-month period ended March 31, 2010 was $675,000 compared to $480,000 for the same period in 2009. Diluted earnings per common share for the three-month period ended March 31, 2010 was $0.20 compared to $0.14 for the same period in 2009. The $195,000 increase during the most recent three-month period was attributable to a $582,000 increase in net interest income after provision for credit losses and a $291,000 increase in non-interest income, offset by a $496,000 increase in non-interest expense and a $182,000 increase in income tax expense. During the first quarter of 2010, management took $696,000 of gains on the investment portfolio to offset prepayment penalties totaling $560,000, which is included in non-interest expenses and repaid $18.0 million of FHLB advances with a weighted average rate of 5.56%. In addition to reducing the size of the Company s balance sheet and increasing capital ratios, the transaction will increase pre-tax core earnings by $378,000 in 2010.
Interest and dividends on investment securities was $1.5 million for the three-month period ended March 31, 2010, compared to $1.4 million for the same period in 2009. The average balance of investment securities was $196.9 million with an average yield of 3.08% for the current quarter compared to $137.7 million with an average yield of 4.08% for the same period in 2009. The decrease in the yield during the quarter was primarily the result of a declining interest rate environment, coupled with the sales of certain higher yielding securities. Average cash and cash equivalents were $51.1 million for the three-month period ended March 31, 2010, compared to $42.9 million for the same period in 2009. Management s investment strategy for DNB s excess liquidity continues to be to seek investments with shorter durations offering good cash flows and minimal extension risk, ensuring adequate funding for future loan growth.
Interest on borrowings was $728,000 for the three-month period ended March 31, 2010, compared to $958,000 for the same period in 2009. The average balance of borrowings was $76.7 million with an average rate of 3.85% for the current quarter compared to $91.2 million with an average rate of 4.26% for the same period in 2009. The decrease in the average balance and the average rate on borrowings during the three months ended March 31, 2010 compared to the same period in 2009 was attributable to a $16.1 million average decline in FHLB advances, offset by an average $1.6 million increase in repurchase agreements.
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