Non-performing assets (NPAs) declined to $11.67 million at December 31, 2012 from $13.69 million at September 30, 2012 and were flat compared to December 31, 2011. The decline in NPAs relative to September 30, 2012 was due primarily to the sale of one OREO property for $2.6 million in December of 2012. Included in non-performing assets at December 31, 2012 was $1.24 million in other real estate owned and other repossessed property and $10.43 million in non-performing loans.
"We were able to sell our largest OREO property during the fourth quarter of 2012 and will continue to work diligently to control the level of non-performing assets in 2013," stated William J. Hieb, President and Chief Risk & Credit Officer.
The ratio of non-performing loans to total loans was 2.63% at December 31, 2012 up from 2.45% and 1.89% at September 30, 2012 and December 31, 2011, respectively. The increase in the ratio is due in part to the decline in net loan balances combined with the addition of two commercial credits totaling $3.2 million.
Latoff concluded: "In many ways, 2012 was a marquee year in achieving some of our key strategic and growth initiatives. We generated record profits, grew total assets and core deposits, and continued to invest in infrastructure and key business lines such as Wealth Management and Retail banking. We acquired a branch in Boothwyn, Pennsylvania, increasing our footprint in Delaware County and increased our dividend to common shareholders. We continued our tradition of giving back to our communities through charitable contributions, scholarships, educational programs, and sponsorships of local events. We've continued to follow the same guiding principles that have served us well in both challenging and prosperous economic times: sound underwriting and prudent decision making."
DNB Financial Corporation is a bank holding company whose bank subsidiary, DNB First, National Association, is a community bank headquartered in Downingtown, Pennsylvania with 13 locations. Founded in 1860, DNB First in addition to providing a broad array of consumer and business banking products, offers brokerage and insurance services through DNB Investments & Insurance, and investment management services through DNB Investment Management & Trust. DNB Financial Corporation's shares are traded on Nasdaq's Capital Market under the symbol: DNBF. We invite our customers and shareholders to visit our website at
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DNB Financial Corporation (the "Corporation"), may from time to time make written or oral "forward-looking statements," including statements contained in the Corporation's filings with the Securities and Exchange Commission (including this press release), in its reports to stockholders and in other communications by the Corporation, which are made in good faith by the Corporation pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.