DNB Financial Corp (DNBF, Financial) filed Quarterly Report for the period ended 2010-09-30.
Dnb Financial Corp has a market cap of $22.2 million; its shares were traded at around $8.39 with a P/E ratio of 8.5 and P/S ratio of 0.7. The dividend yield of Dnb Financial Corp stocks is 1.5%.
Gross Loans and Leases. DNB s loans and leases increased $25.8 million to $385.2 million at September 30, 2010 compared to $359.4 million at December 31, 2009. Commercial loan increased $38.2 million, while residential loans, consumer loans and commercial leases declined by $7.1 million, $3.8 million and $1.5 million, respectively.
On January 30, 2009, as part of the CPP administered by the United States Department of the Treasury, DNB Financial Corporation entered into a Letter Agreement and a Securities Purchase Agreement with the U.S. Treasury, pursuant to which the DNB issued and sold on January 30, 2009, and the U.S. Treasury purchased for cash on that date (i) 11,750 shares of the Corporation s Fixed Rate Cumulative Perpetual Preferred Stock, Series 2008A, par value $10.00 per share, having a liquidation preference of $1,000 per share, and (ii) a ten-year warrant to purchase up to 186,311 shares of the DNB s common stock, $1.00 par value, at an exercise price of $9.46 per share, for an aggregate purchase price of $11,750,000 in cash. This transaction closed on January 30, 2009. The issuance and sale of these securities was a private placement exempt from registration pursuant to Section 4(2) of the Securities Act of 1933. The Bank provides dividends to the Corporation in connection with the $11,750,000 of Fixed Rate Cumulative Perpetual Preferred Stock sold on January 30, 2009 as part of the CPP administered by the United States Department of the Treasury
Net income for the three and nine-month periods ended September 30, 2010 was $993,000 and $2.6 million compared to $634,000 and $1.1 million for the same periods in 2009. Diluted earnings per share for the three and nine-month periods ended September 30, 2010 were $.32 and $.82 compared to $0.18 and $0.26 for the same periods in 2009. The $359,000 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 and a $130,000 increase in non-interest income, offset by a $315,000 increase in provision for credit losses, a $286,000 increase in income tax expense and a $169,000 increase in non-interest expense.
Net interest income after provision for credit losses for the three and nine-month periods ended September 30, 2010 was $4.3 million and $12.7 million, compared to $3.7 million and $10.5 million for the same periods in 2009. Interest income for the three and nine-month periods ended September 30, 2010 was $6.5 million and $19.7 million compared to $6.7 million and $19.2 million for the same periods in 2009. The decrease in interest income was primarily attributable to a decrease in interest and dividends on investment securities. 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 nine-month periods ended September 30, 2010 was 4.41% and 4.42%, compared to 4.39% and 4.58% for the same periods in 2009. Interest expense for the three and nine-month periods ended September 30, 2010 was $1.6 million and $5.6 million compared to $2.8 million and $8.0 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 nine-month periods ended September 30, 2010 was 1.11% and 1.31%, compared to 1.87% and 1.98% for the same periods in 2009. The net interest margin for the three and nine-month periods ended September 30, 2010 was 3.34% and 3.16%, compared to 2.58% and 2.67% for the same periods in 2009.
Interest on loans and leases was $5.4 million and $15.8 million for the three and nine-month periods ended September 30, 2010, compared to $4.9 million and $14.3 million for the same periods in 2009. The increase during both periods was primarily the result of higher average balances. The average balance of loans and leases was $377.5 million with an average yield of 5.63% for the current quarter compared to $343.6 million with an average yield of 5.68% for the same period in 2009. The average balance of loans and leases was $368.0 million with an average yield of 5.69% for the current nine months compared to $335.8 million with an average yield of 5.69% for the same period in 2009.
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Dnb Financial Corp has a market cap of $22.2 million; its shares were traded at around $8.39 with a P/E ratio of 8.5 and P/S ratio of 0.7. The dividend yield of Dnb Financial Corp stocks is 1.5%.
Highlight of Business Operations:
Strategic Plan Update. During the quarter ended September 30, 2010, management focused on reducing our composite cost of funds as well as strengthening DNB's net interest margin and capital ratios. The composite cost of funds for the three and nine-month periods ended September 30, 2010 was 1.11% and 1.31%, compared to 1.87% and 1.98% for the same periods in 2009. The net interest margin for the three and nine-month periods ended September 30, 2010 was 3.34% and 3.16%, compared to 2.58% and 2.67% for the same periods in 2009. In addition to the lower cost of funds, DNB s margin improved as interest on loans and leases increased to $5.4 million and $15.8 million for the three and nine-month periods ended September 30, 2010, compared to $4.9 million and $14.3 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. Management continued to actively manage deposits during the quarter to reduce DNB s cost of funds. Time deposits declined $22.9 million to $148.3 million at September 30, 2010 compared to $171.1 million at December 31, 2009. Transaction and savings accounts increased $9.6 million during the nine months ended September 30, 2010. The Total Risk Based Capital ratio increased to 14.88% at September 30, 2010, up from 14.27% at December 31, 2010.Gross Loans and Leases. DNB s loans and leases increased $25.8 million to $385.2 million at September 30, 2010 compared to $359.4 million at December 31, 2009. Commercial loan increased $38.2 million, while residential loans, consumer loans and commercial leases declined by $7.1 million, $3.8 million and $1.5 million, respectively.
On January 30, 2009, as part of the CPP administered by the United States Department of the Treasury, DNB Financial Corporation entered into a Letter Agreement and a Securities Purchase Agreement with the U.S. Treasury, pursuant to which the DNB issued and sold on January 30, 2009, and the U.S. Treasury purchased for cash on that date (i) 11,750 shares of the Corporation s Fixed Rate Cumulative Perpetual Preferred Stock, Series 2008A, par value $10.00 per share, having a liquidation preference of $1,000 per share, and (ii) a ten-year warrant to purchase up to 186,311 shares of the DNB s common stock, $1.00 par value, at an exercise price of $9.46 per share, for an aggregate purchase price of $11,750,000 in cash. This transaction closed on January 30, 2009. The issuance and sale of these securities was a private placement exempt from registration pursuant to Section 4(2) of the Securities Act of 1933. The Bank provides dividends to the Corporation in connection with the $11,750,000 of Fixed Rate Cumulative Perpetual Preferred Stock sold on January 30, 2009 as part of the CPP administered by the United States Department of the Treasury
Net income for the three and nine-month periods ended September 30, 2010 was $993,000 and $2.6 million compared to $634,000 and $1.1 million for the same periods in 2009. Diluted earnings per share for the three and nine-month periods ended September 30, 2010 were $.32 and $.82 compared to $0.18 and $0.26 for the same periods in 2009. The $359,000 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 and a $130,000 increase in non-interest income, offset by a $315,000 increase in provision for credit losses, a $286,000 increase in income tax expense and a $169,000 increase in non-interest expense.
Net interest income after provision for credit losses for the three and nine-month periods ended September 30, 2010 was $4.3 million and $12.7 million, compared to $3.7 million and $10.5 million for the same periods in 2009. Interest income for the three and nine-month periods ended September 30, 2010 was $6.5 million and $19.7 million compared to $6.7 million and $19.2 million for the same periods in 2009. The decrease in interest income was primarily attributable to a decrease in interest and dividends on investment securities. 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 nine-month periods ended September 30, 2010 was 4.41% and 4.42%, compared to 4.39% and 4.58% for the same periods in 2009. Interest expense for the three and nine-month periods ended September 30, 2010 was $1.6 million and $5.6 million compared to $2.8 million and $8.0 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 nine-month periods ended September 30, 2010 was 1.11% and 1.31%, compared to 1.87% and 1.98% for the same periods in 2009. The net interest margin for the three and nine-month periods ended September 30, 2010 was 3.34% and 3.16%, compared to 2.58% and 2.67% for the same periods in 2009.
Interest on loans and leases was $5.4 million and $15.8 million for the three and nine-month periods ended September 30, 2010, compared to $4.9 million and $14.3 million for the same periods in 2009. The increase during both periods was primarily the result of higher average balances. The average balance of loans and leases was $377.5 million with an average yield of 5.63% for the current quarter compared to $343.6 million with an average yield of 5.68% for the same period in 2009. The average balance of loans and leases was $368.0 million with an average yield of 5.69% for the current nine months compared to $335.8 million with an average yield of 5.69% for the same period in 2009.
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