This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

DNB Financial Corporation Reports Year-Over-Year Earnings Growth In First Quarter 2013

Stocks in this article: DNBF

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.

Non-performing loans (NPLs) at March 31, 2013 were $16.28 million or 4.05% of total loans compared with $10.43 million or 2.63% of total loans at December 31, 2012. The increase in the ratio is due primarily to the addition of three commercial credits, which the company believes are well-reserved and that are in the process of collection, partially offset by a $5.2 million increase in loan balances from December 31, 2012. 

William J. Hieb, President and Chief Risk & Credit Officer, elaborated: "Despite the quarter-over-quarter uptick in NPLs, we do not expect the upward trend to continue. Three loans which were already criticized assets and closely scrutinized went into collection status. We believe the bank is adequately reserved. We immediately began addressing the situation and expect to be moving the properties into foreclosure and off the balance sheet by year end. Two are income producing properties and we have already received strong interest from potential buyers and are actively communicating with these interested parties. The third is a land acquisition loan that we believe is adequately reserved. We continue to have dialogue with the borrower to develop a principal curtailment plan from other assets."

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs