Total deposits increased 4.4% year-over-year to $537.54 million at March 31, 2013 compared with $515.06 million at March 31, 2012. Latoff explained that initiatives to grow core deposits, including building customer relationships to incorporate more deposit activity, contributed to the company's consecutive quarter decline in cost of funds, which was 0.56% in the first quarter. A larger core deposit base generated additional liquidity for lending and contributed to DNB's ability to reduce by half its use of Federal Home Loan Bank borrowings compared with the prior year's first quarter, he added.Loans were $402.03 million at March 31, 2013, compared with $409.64 million at March 31, 2012 and up from $396.49 million at December 31, 2012. The company trimmed real estate construction loans in fourth quarter 2012. Loan totals in the most recent two quarters also reflect customer pay-downs of higher-rate loans. Latoff said first quarter 2013's rebound in total loans indicated accelerated new lending activity, primarily in CRE and C&I lending. In first quarter 2013, DNB's loan loss provision was $180,000 compared with $425,000 in first quarter 2012. DNB's allowance for credit losses at March 31, 2013 was $7.12 million compared with $6.14 million at March 31, 2012 and $6.84 million at December 31, 2012. The ratio of loss allowance to total loans in first quarter was 1.77% compared with 1.50% in first quarter 2012.
DNB Financial Corporation Reports Year-Over-Year Earnings Growth In First Quarter 2013
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