DNB Financial Corp (DNBF, Financial) filed Quarterly Report for the period ended 2008-03-31.
DNB Financial Corporation is a bank holding company of DNB Financial Corporation that offers various commercial banking products and services for individuals and corporate customers in southeastern Pennsylvania. The Bank is a full service commercial bank providing a range of services to individuals and small to medium sized businesses including accepting time demand and savings deposits and making secured and unsecured commercial real estate and consumer loans. The company is headquartered in Downingtown Pennsylvania..
DNB's total assets were $541.1 million at March 31, 2008 compared to $545.8 million at December 31, 2007. The decline in total assets was primarily attributable to a decline in Federal funds sold and total loans during the three month period ended March 31, 2008 as discussed below. Other assets at March 31, 2008 were $6.5 million compared to $1.8 million at December 31, 2007. Other liabilities at March 31, 2008 were $18.5 million compared to $8.9 million at December 31, 2007. The increases in both other assets and other liabilities are due to the application of “Trade-Date” accounting for certain investment sales and purchases. 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).
Borrowings. Borrowings were $91.1 million at March 31, 2008 compared to $89.9 million at December 31, 2007. The increase of $1.2 million or 1.4% was primarily due to a $10.0 million increase in FHLB borrowings coupled with an $8.7 million decline in repurchase agreements.
Net income for the three-month period ended March 31, 2008 was $409,000 compared to $535,000 for the same period in 2007. Diluted earnings per share for the three-month period ended March 31, 2008 were $0.16 compared to $0.20 for the same period in 2007. Earnings per share in 2007 reflect the effect of the 5% stock dividend paid in December 2007. The decrease in net income for the latest three-month period compared to the same period in 2007 was primarily attributable to a $232,000 increase in non-interest income, which included a $153,000 increase in securities gains and a $72,000 increase in wealth management income due to higher sales of annuities and mutual funds. This was offset by a $269,000 decrease in net-interest income after provision, a $63,000 increase in non-interest expense and a $26,000 increase in income taxes. The increases in non-interest income and non-interest expense are discussed in detail below. The decrease in net interest income was a result of net interest margin compression and intense competition for loan and deposit products in DNB s marketplace.
For the three-month period ended March 31, 2008, net interest income after a $60,000 provision for credit losses was $3.5 million, compared to $3.8 million for the same period in 2007. Interest income for the three-month period ended March 31, 2008 was $7.3 million compared to $7.5 million for the same period in 2007. The decrease in interest income was primarily attributable to an $876,000 decrease in interest on loans and leases, which was a result of a lower volume of loans outstanding, coupled with a lower yield on the loan portfolio. The yield on interest-earning assets for the first quarter in 2008 was 5.8%, compared to 6.3% for the same period in 2007. Interest expense for the three-month period ended March 31, 2008 was flat at $3.7 million, when compared to the same period in 2007. The cost of deposits was 2.67% for the first quarter in 2008 and the first quarter in 2007. The net interest margin for the three-month period ended March 31, 2008 was 2.86%, compared to 3.21% for the same period in 2007.
Interest expense was $3.7 million for the three-month period ended March 31, 2008, compared to $3.7 million for the same period in 2007. The average balance of deposits was $403.8 million with an average rate of 2.67% for the quarter-ended March 31, 2008 compared to $379.3 million with an average rate of 2.67% for the same period in 2007. The increase in the average balance was primarily the result of year-over-year increased deposit relationships through aggressive marketing efforts and the opening of a new branch in Chadds Ford. The average balance of borrowings was $82.7 million with an average rate of 5.01% for the three-month period ended March 31, 2008 compared to $94.1 million with an average rate of 5.17% for the same period in 2007. The decrease in the average balance was attributable to a $20.1 million average decline in repurchase agreements, offset by a $9.7 million average increase in FHLB borrowings. The decrease in average balance of repurchase agreements was due to a fewer number of commercial customers using this product during the quarter as compared to the prior year. The decrease in rate was attributable to a decrease in market rates resulting from the Federal Reserve s tightening actions over the last eight months. The composite cost of funds was 3.07% for the quarter ended March 31, 2008 compared to 3.17% for the same period in 2007.
Read the The complete Report
DNB Financial Corporation is a bank holding company of DNB Financial Corporation that offers various commercial banking products and services for individuals and corporate customers in southeastern Pennsylvania. The Bank is a full service commercial bank providing a range of services to individuals and small to medium sized businesses including accepting time demand and savings deposits and making secured and unsecured commercial real estate and consumer loans. The company is headquartered in Downingtown Pennsylvania..
Highlight of Business Operations:
The law provides assessment credits to certain institutions that paid high premiums in the past. DNB used $170,000 of its $245,000 assessment credit in 2007. Of the remaining $75,000, $61,000 was used in the first quarter of 2008 with the remaining $14,000 to be used in the second quarter. If DNB had not benefited from the assessment credit, management estimates that its deposit insurance assessment for the 3 months ended March 31, 2008 would have been $61,000.DNB's total assets were $541.1 million at March 31, 2008 compared to $545.8 million at December 31, 2007. The decline in total assets was primarily attributable to a decline in Federal funds sold and total loans during the three month period ended March 31, 2008 as discussed below. Other assets at March 31, 2008 were $6.5 million compared to $1.8 million at December 31, 2007. Other liabilities at March 31, 2008 were $18.5 million compared to $8.9 million at December 31, 2007. The increases in both other assets and other liabilities are due to the application of “Trade-Date” accounting for certain investment sales and purchases. 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).
Borrowings. Borrowings were $91.1 million at March 31, 2008 compared to $89.9 million at December 31, 2007. The increase of $1.2 million or 1.4% was primarily due to a $10.0 million increase in FHLB borrowings coupled with an $8.7 million decline in repurchase agreements.
Net income for the three-month period ended March 31, 2008 was $409,000 compared to $535,000 for the same period in 2007. Diluted earnings per share for the three-month period ended March 31, 2008 were $0.16 compared to $0.20 for the same period in 2007. Earnings per share in 2007 reflect the effect of the 5% stock dividend paid in December 2007. The decrease in net income for the latest three-month period compared to the same period in 2007 was primarily attributable to a $232,000 increase in non-interest income, which included a $153,000 increase in securities gains and a $72,000 increase in wealth management income due to higher sales of annuities and mutual funds. This was offset by a $269,000 decrease in net-interest income after provision, a $63,000 increase in non-interest expense and a $26,000 increase in income taxes. The increases in non-interest income and non-interest expense are discussed in detail below. The decrease in net interest income was a result of net interest margin compression and intense competition for loan and deposit products in DNB s marketplace.
For the three-month period ended March 31, 2008, net interest income after a $60,000 provision for credit losses was $3.5 million, compared to $3.8 million for the same period in 2007. Interest income for the three-month period ended March 31, 2008 was $7.3 million compared to $7.5 million for the same period in 2007. The decrease in interest income was primarily attributable to an $876,000 decrease in interest on loans and leases, which was a result of a lower volume of loans outstanding, coupled with a lower yield on the loan portfolio. The yield on interest-earning assets for the first quarter in 2008 was 5.8%, compared to 6.3% for the same period in 2007. Interest expense for the three-month period ended March 31, 2008 was flat at $3.7 million, when compared to the same period in 2007. The cost of deposits was 2.67% for the first quarter in 2008 and the first quarter in 2007. The net interest margin for the three-month period ended March 31, 2008 was 2.86%, compared to 3.21% for the same period in 2007.
Interest expense was $3.7 million for the three-month period ended March 31, 2008, compared to $3.7 million for the same period in 2007. The average balance of deposits was $403.8 million with an average rate of 2.67% for the quarter-ended March 31, 2008 compared to $379.3 million with an average rate of 2.67% for the same period in 2007. The increase in the average balance was primarily the result of year-over-year increased deposit relationships through aggressive marketing efforts and the opening of a new branch in Chadds Ford. The average balance of borrowings was $82.7 million with an average rate of 5.01% for the three-month period ended March 31, 2008 compared to $94.1 million with an average rate of 5.17% for the same period in 2007. The decrease in the average balance was attributable to a $20.1 million average decline in repurchase agreements, offset by a $9.7 million average increase in FHLB borrowings. The decrease in average balance of repurchase agreements was due to a fewer number of commercial customers using this product during the quarter as compared to the prior year. The decrease in rate was attributable to a decrease in market rates resulting from the Federal Reserve s tightening actions over the last eight months. The composite cost of funds was 3.07% for the quarter ended March 31, 2008 compared to 3.17% for the same period in 2007.
Read the The complete Report
