DNB Financial Corporation Announces Second Quarter 2010 Earnings
Deposits declined by $5.9 million, or 1.18%, to $501.4 million at June 30, 2010 compared to $507.3 million at December 31, 2009. Core deposits, which management considers to be demand, money market, NOW and savings accounts, increased $20.1 million in aggregate or 5.99%, compared to December 31, 2009. Management continued to actively manage deposits during the quarter to reduce DNB's cost of funds. DNB's composite cost of funds for the second quarter of 2010 dropped 50 basis points to 1.26% compared to 1.76% for the three months ended December 31, 2009. Time deposits declined $26.1 million to $145.0 million at June 30, 2010 compared to $171.1 million at December 31, 2009.
Capital remained strong at the end of the second quarter of 2010, as DNB's tier 1 leverage ratio stood at 8.88% and its total risk-based capital ratio stood at 14.90%, well above the levels of 5.00% and 10.00% respectively to be deemed "well capitalized" for regulatory purposes and also at levels management feels are appropriate for current market conditions.
During the quarter, DNB increased its allowance for credit losses to $6.0 million. This increase strengthened the allowance as a percentage of loans to 1.63% from 1.52% at December 31, 2009 and increased our coverage ratio, defined as the allowance for credit losses as a percentage of non-performing loans, to 67.7% from 59.6%. Although management is not satisfied with the level of non-performing assets, the level of such assets appears to have stabilized during the last nine months and begun to decline. At June 30, 2010, non-performing assets totaled $12.6 million, and the level of these assets was $13.2 million, $13.7 million and $13.8 million at March 31, 2010, December 31, 2009, and September 30, 2009, respectively.
Net income for the six months ended June 30, 2010 was $1.6 million compared to $440,000 for the same period for 2009. Earnings per common share for the first six months of 2010 were $0.50 on a fully diluted basis compared to $0.07 for the same period in 2009. Core earnings, defined above, improved to $1.3 million for the six months ended June 30, 2010, compared to a loss of $18,000 for the same period in 2009.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV