DNB Financial Corp (DNBF, Financial) filed Quarterly Report for the period ended 2010-06-30.
Dnb Financial Corp has a market cap of $18.1 million; its shares were traded at around $6.88 with a P/E ratio of 8.2 and P/S ratio of 0.6. The dividend yield of Dnb Financial Corp stocks is 1.7%.
Net interest income after provision for credit losses for the three and six-month periods ended June 30, 2010 was $4.4 million and $8.3 million, compared to $3.4 million and $6.8 million for the same periods in 2009. Interest income for the three and six-month periods ended June 30, 2010 was $6.5 million and $13.2 million compared to $6.3 million and $12.5 million for the same periods in 2009. The increase in interest income was primarily attributable to an increase in interest and fees on loans. Interest and dividends on investment securities declined due to lower average balances and lower yields on investments. The yield on interest-earning assets for the three and six-month periods ended June 30, 2010 was 4.44% and 4.43%, compared to 4.57% and 5.49% for the same periods in 2009. Interest expense for the three and six-month periods ended June 30, 2010 was $1.8 million and $4.0 million compared to $2.6 million and $5.2 million for the same periods in 2009. The decrease in interest expense during both periods was primarily attributable to lower rates on interest-bearing liabilities. The composite cost of funds for the three and six-month periods ended June 30, 2010 was 1.26% and 1.41%, compared to 1.95% and 2.04% for the same periods in 2009. The net interest margin for the three months ended June 30, 2010 was 3.23%, compared 2.68% for the same periods in 2009.
Interest on loans and leases was $5.2 million and $10.4 million for the three and six-month periods ended June 30, 2010, compared to $4.7 million and $9.4 million for the same periods in 2009. The increase during both periods was primarily the result of higher average balances and higher yields on the portfolio. The average balance of loans and leases was $365.9 million with an average yield of 5.71% for the current quarter compared to $331.3 million with an average yield of 5.67% for the same period in 2009. The average balance of loans and leases was $363.2 million with an average yield of 5.72% for the current six months compared to $331.9 million with an average yield of 5.70% for the same period in 2009.
Interest and dividends on investment securities was $1.3 million and $2.8 million for the three and six-month periods ended June 30, 2010, compared to $1.6 million and $3.0 million for the same periods in 2009. The average balance of investment securities was $178.1 million with an average yield of 2.86% for the current quarter compared to $185.9 million with an average yield of 3.57% for the same period in 2009. The average balance of investment securities was $187.4 million with an average yield of 2.98% for the current six months compared to $162.0 million with an average yield of 3.78% for the same period in 2009. The decrease in the yield during both periods was primarily the result of a declining interest rate environment, coupled with the sales of certain higher yielding securities.
Interest on deposits was $1.3 million and $2.8 million for the three and six-month periods ended June 30, 2010, compared to $1.6 million and $3.3 million for the same periods in 2009. The average balance of deposits was $497.6 million with an average rate of 1.02% for the current quarter compared to $432.3 million with an average rate of 1.53% for the same period in 2009. The average balance of deposits was $504.4 million with an average rate of 1.11% for the six months ended June 30, 2010 compared to $418.9 million with an average rate of 1.59% for the same period in 2009. The increase in the average balance during both periods was primarily the result of year-over-year increased deposit relationships through aggressive marketing and cross-selling efforts. The decrease in rate during both periods was primarily attributable to lower rates being paid on maturing time deposits and certain money market accounts, stimulated by a lower interest rate environment.
Interest on borrowings was $504,000 and $1.2 million for the three and six-month periods ended June 30, 2010, compared to $978,000 and $1.9 million for the same periods in 2009. The average balance of borrowings was $66.9 million with an average rate of 3.02% for the current quarter compared to $107.5 million with an average rate of 3.65% for the same period in 2009. The average balance of borrowings was $71.8 million with an average rate of 3.46% for the six months ended June 30, 2010 compared to $99.4 million with an average rate of 3.93% for the same period in 2009. The decrease in the average balance and the average rate on borrowings during the six months ended June 30, 2010 compared to the same period in 2009 was attributable to an average $23.1 million decline in FHLB advances, offset by an average $3.3 million increase in repurchase agreements. During the six months ended June 30, 2010, management repaid $18.0 million of borrowings from the Federal Home Loan Bank (FHLB) with an average interest rate of 5.56%. In addition to strengthening DNB s balance sheet, the transaction is expected to significantly reduce interest expense and increase net income in 2010. DNB paid the FHLB a $560,000 prepayment penalty when the $18.0 million of borrowings were paid off.
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Dnb Financial Corp has a market cap of $18.1 million; its shares were traded at around $6.88 with a P/E ratio of 8.2 and P/S ratio of 0.6. The dividend yield of Dnb Financial Corp stocks is 1.7%.
Highlight of Business Operations:
Net income (loss) for the three and six-month periods ended June 30, 2010 was $947,000 and $1.6 million compared to ($39,000) and $440,000 for the same periods in 2009. Diluted earnings per share for the three and six-month periods ended June 30, 2010 were $.30 and $.50 compared to ($0.07) and $0.07 for the same periods in 2009. The $986,000 increase during the most recent three-month period was attributable to a $1.0 million increase in net interest income before provision for credit losses, a $288,000 increase in non-interest income combined with a $233,000 decrease in non-interest expense, offset by a $464,000 increase in income tax expense and a $100,000 increase in provision for credit losses.Net interest income after provision for credit losses for the three and six-month periods ended June 30, 2010 was $4.4 million and $8.3 million, compared to $3.4 million and $6.8 million for the same periods in 2009. Interest income for the three and six-month periods ended June 30, 2010 was $6.5 million and $13.2 million compared to $6.3 million and $12.5 million for the same periods in 2009. The increase in interest income was primarily attributable to an increase in interest and fees on loans. Interest and dividends on investment securities declined due to lower average balances and lower yields on investments. The yield on interest-earning assets for the three and six-month periods ended June 30, 2010 was 4.44% and 4.43%, compared to 4.57% and 5.49% for the same periods in 2009. Interest expense for the three and six-month periods ended June 30, 2010 was $1.8 million and $4.0 million compared to $2.6 million and $5.2 million for the same periods in 2009. The decrease in interest expense during both periods was primarily attributable to lower rates on interest-bearing liabilities. The composite cost of funds for the three and six-month periods ended June 30, 2010 was 1.26% and 1.41%, compared to 1.95% and 2.04% for the same periods in 2009. The net interest margin for the three months ended June 30, 2010 was 3.23%, compared 2.68% for the same periods in 2009.
Interest on loans and leases was $5.2 million and $10.4 million for the three and six-month periods ended June 30, 2010, compared to $4.7 million and $9.4 million for the same periods in 2009. The increase during both periods was primarily the result of higher average balances and higher yields on the portfolio. The average balance of loans and leases was $365.9 million with an average yield of 5.71% for the current quarter compared to $331.3 million with an average yield of 5.67% for the same period in 2009. The average balance of loans and leases was $363.2 million with an average yield of 5.72% for the current six months compared to $331.9 million with an average yield of 5.70% for the same period in 2009.
Interest and dividends on investment securities was $1.3 million and $2.8 million for the three and six-month periods ended June 30, 2010, compared to $1.6 million and $3.0 million for the same periods in 2009. The average balance of investment securities was $178.1 million with an average yield of 2.86% for the current quarter compared to $185.9 million with an average yield of 3.57% for the same period in 2009. The average balance of investment securities was $187.4 million with an average yield of 2.98% for the current six months compared to $162.0 million with an average yield of 3.78% for the same period in 2009. The decrease in the yield during both periods was primarily the result of a declining interest rate environment, coupled with the sales of certain higher yielding securities.
Interest on deposits was $1.3 million and $2.8 million for the three and six-month periods ended June 30, 2010, compared to $1.6 million and $3.3 million for the same periods in 2009. The average balance of deposits was $497.6 million with an average rate of 1.02% for the current quarter compared to $432.3 million with an average rate of 1.53% for the same period in 2009. The average balance of deposits was $504.4 million with an average rate of 1.11% for the six months ended June 30, 2010 compared to $418.9 million with an average rate of 1.59% for the same period in 2009. The increase in the average balance during both periods was primarily the result of year-over-year increased deposit relationships through aggressive marketing and cross-selling efforts. The decrease in rate during both periods was primarily attributable to lower rates being paid on maturing time deposits and certain money market accounts, stimulated by a lower interest rate environment.
Interest on borrowings was $504,000 and $1.2 million for the three and six-month periods ended June 30, 2010, compared to $978,000 and $1.9 million for the same periods in 2009. The average balance of borrowings was $66.9 million with an average rate of 3.02% for the current quarter compared to $107.5 million with an average rate of 3.65% for the same period in 2009. The average balance of borrowings was $71.8 million with an average rate of 3.46% for the six months ended June 30, 2010 compared to $99.4 million with an average rate of 3.93% for the same period in 2009. The decrease in the average balance and the average rate on borrowings during the six months ended June 30, 2010 compared to the same period in 2009 was attributable to an average $23.1 million decline in FHLB advances, offset by an average $3.3 million increase in repurchase agreements. During the six months ended June 30, 2010, management repaid $18.0 million of borrowings from the Federal Home Loan Bank (FHLB) with an average interest rate of 5.56%. In addition to strengthening DNB s balance sheet, the transaction is expected to significantly reduce interest expense and increase net income in 2010. DNB paid the FHLB a $560,000 prepayment penalty when the $18.0 million of borrowings were paid off.
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