DNB Financial Corp (DNBF, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 Financial Corp has a market cap of $20.3 million; its shares were traded at around $7.78 . The dividend yield of DNB Financial Corp stocks is 3.3%.
Gross Loans and Leases. DNB s loans and leases decreased $5.0 million to $331.5 million at March 31, 2009 compared to $336.5 million at December 31, 2008, due to decreased loan demand in DNB s marketplace. Total commercial loans and commercial leases declined $948,000 and $1.0 million, respectively, while residential and consumer loans declined $625,000 and $2.3 million, respectively.
Deposits. Deposits were $429.9 million at March 31, 2009 compared to $408.5 million at December 31, 2008. Deposits increased $21.5 million or 5.3% during the three-month period ended March 31, 2009, primarily due to a seasonal increase in municipal deposits. Time deposits, primarily accounts greater than $100,000, declined $10.6 million, while the aggregate of demand, NOW, money markets and savings accounts increased $32.1 million.
Net income for the three month period ended March 31, 2009 was $480,000 compared to $409,000 for the same period in 2008. Diluted earnings per common share for the three month period ended March 31, 2009 was $0.14 compared to $0.16 for the same period in 2008. The $71,000 increase during the most recent three-month period was attributable to an $88,000 decrease in non-interest expense, a $78,000 increase in non-interest income and an $11,000 decline in income tax expense. This was offset by a $106,000 decrease in net interest income after provision for credit losses. EPS has been reduced by the dividends on preferred stock and the accretion of the discount on the preferred stock.
Interest and dividends on investment securities was $1.4 million for the three month period ended March 31, 2009, compared to $2.2 million for the same period in 2008. The average balance of investment securities was $137.7 million with an average yield of 4.08% for the current quarter compared to $172.6 million with an average yield of 5.18% for the same period in 2008. The decrease in the average balance of investment securities during the period was the result of management s decision, in light of disruptions in the financial system during the fourth quarter of 2008, to bolster its normal liquidity position. The decrease in the yield during the most recent three month period was primarily due to a decline in general market rates as well as the sale of higher yielding securities. Average cash and cash equivalents were $42.9 million for the three month period ended March 31, 2009, compared to $21.6 million for the same period in 2008.
Interest on borrowings was $958,000 for the three month period ended March 31, 2009, compared to $1.0 million for the same period in 2008. The average balance of borrowings was $91.2 million with an average rate of 4.26% for the current quarter compared to $82.7 million with an average rate of 5.01% for the same period in 2008. The increase in the average balance during the three-months ended March 31, 2009 compared to the same period in 2008 was attributable to an average $9.6 million increase in FHLB advances, offset by an average $1.0 million decline in repurchase agreements. The decrease in rate during the period was attributable to a decrease in market rates resulting from the Federal Reserve s tightening actions over the last twelve months.
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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 Financial Corp has a market cap of $20.3 million; its shares were traded at around $7.78 . The dividend yield of DNB Financial Corp stocks is 3.3%.
Highlight of Business Operations:
Investment Securities. Investment securities at March 31, 2009 were $132.8 million (after $21.7 million of trade date sales) compared to $124.1 million at December 31, 2008. The $8.6 million increase in investment securities was primarily due to $34.1 million in sales and $10.3 million in principal pay-downs and maturities offset by the purchase of $54.2 million in investment securities. Included in the $34.1 million of investment securities sales was $21.7 million for securities which had a trade date in March 2009, and a settlement date in April 2009. 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 decreased $5.0 million to $331.5 million at March 31, 2009 compared to $336.5 million at December 31, 2008, due to decreased loan demand in DNB s marketplace. Total commercial loans and commercial leases declined $948,000 and $1.0 million, respectively, while residential and consumer loans declined $625,000 and $2.3 million, respectively.
Deposits. Deposits were $429.9 million at March 31, 2009 compared to $408.5 million at December 31, 2008. Deposits increased $21.5 million or 5.3% during the three-month period ended March 31, 2009, primarily due to a seasonal increase in municipal deposits. Time deposits, primarily accounts greater than $100,000, declined $10.6 million, while the aggregate of demand, NOW, money markets and savings accounts increased $32.1 million.
Net income for the three month period ended March 31, 2009 was $480,000 compared to $409,000 for the same period in 2008. Diluted earnings per common share for the three month period ended March 31, 2009 was $0.14 compared to $0.16 for the same period in 2008. The $71,000 increase during the most recent three-month period was attributable to an $88,000 decrease in non-interest expense, a $78,000 increase in non-interest income and an $11,000 decline in income tax expense. This was offset by a $106,000 decrease in net interest income after provision for credit losses. EPS has been reduced by the dividends on preferred stock and the accretion of the discount on the preferred stock.
Interest and dividends on investment securities was $1.4 million for the three month period ended March 31, 2009, compared to $2.2 million for the same period in 2008. The average balance of investment securities was $137.7 million with an average yield of 4.08% for the current quarter compared to $172.6 million with an average yield of 5.18% for the same period in 2008. The decrease in the average balance of investment securities during the period was the result of management s decision, in light of disruptions in the financial system during the fourth quarter of 2008, to bolster its normal liquidity position. The decrease in the yield during the most recent three month period was primarily due to a decline in general market rates as well as the sale of higher yielding securities. Average cash and cash equivalents were $42.9 million for the three month period ended March 31, 2009, compared to $21.6 million for the same period in 2008.
Interest on borrowings was $958,000 for the three month period ended March 31, 2009, compared to $1.0 million for the same period in 2008. The average balance of borrowings was $91.2 million with an average rate of 4.26% for the current quarter compared to $82.7 million with an average rate of 5.01% for the same period in 2008. The increase in the average balance during the three-months ended March 31, 2009 compared to the same period in 2008 was attributable to an average $9.6 million increase in FHLB advances, offset by an average $1.0 million decline in repurchase agreements. The decrease in rate during the period was attributable to a decrease in market rates resulting from the Federal Reserve s tightening actions over the last twelve months.
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