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Section 1: 8-K (8-K)

8-K 4Q 2016 Earnings Release

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,  D.C. 20549 



FORM 8-K



CURRENT REPORT



Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934





 

 

 

Date of Report (Date of Earliest Event Reported):

 

January  24, 2017

 


 

DNB Financial Corporation

__________________________________________

(Exact name of registrant as specified in its charter)





 

 

 

Pennsylvania 

1-34242

23-2222567

 

_____________________

(State or other jurisdiction

_____________

(Commission

______________

(I.R.S. Employer

 

of incorporation)

File Number)

Identification No.)

 

   

 

 

 

4 Brandywine Avenue,  Downingtown,  Pennsylvania 

 

19335

 

_________________________________

(Address of principal executive offices)

 

___________

(Zip Code)

 



 

Registrant’s telephone number, including area code:

 

(610) 269-1040

 





Not Applicable

______________________________________________

Former name or former address, if changed since last report



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






 


 

Item 2.02. Results of Operations and Financial Condition.



On January 24, 2017, DNB Financial Corporation issued a press release discussing the Company's Fourth Quarter and Full-Year 2016 Results. The press release, attached as Exhibit 99.1 hereto and incorporated herein by reference, is being furnished to the SEC and shall not be deemed to be "filed" for any purpose.



Item 8.01. Other Events



The information in Item 2.02 is incorporated into this Item 8.01 by reference.



Item 9.01. Financial Statements and Exhibits.



(c) Exhibits. The following exhibit is furnished herewith:



99.1 Press Release, dated January 24, 2017 of DNB Financial Corporation








 





SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



nuary

 

 

 

DNB Financial Corporation

   

 

January 24, 2017

By:

/s/ Gerald F. Sopp

   

 

Name: Gerald F. Sopp

 

 

Title: Chief Financial Officer and Executive Vice President



 










 

Exhibit Index



nuary

 

 

 

Exhibit No.

 

Description

 

99.1

 

Press Release dated January 24, 2017 of DNB Financial Corporation

 

 






(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Earnings Release 4Q'16

DNB Financial Corporation



DNB_Financial-4c_rev





For further information, please contact:

Gerald F. Sopp CFO/Executive Vice-President

484.359.3138FOR IMMEDIATE RELEASE 

gsopp@dnbfirst.com (NasdaqCM: DNBF)

DNB Financial Corporation Reports Fourth Quarter and Full-Year 2016 Results

Downingtown PA., January 24, 2017 (GLOBENEWSIRE)– 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

 

 -

 

 

 

 

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

 

 -

 

 

 

 

 -

 

 

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 

 

$

 

$

1,109 

 

$

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 

 

 

 

 Gain on sale of SBA loans

 

 -

 

 

 -

 

 

 -

 

 

39 

 

 

68 

 

 (Gain) loss on sale / write-down of OREO and ORA

 

480 

 

 

160 

 

 

 

 

 -

 

 

(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 

 

 

 

 

1,109 

 

 

1,556 

 

 

1,382 

 

 Preferred stock dividends

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 

 Net income available to common stockholders

$

2,313 

 

$

 

$

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 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