DOWNINGTOWN, Pa., July 28, 2010 (GLOBE NEWSWIRE) -- DNB Financial Corporation (Nasdaq:DNBF) ("DNB"), parent of DNB First, National Association, the oldest National Bank in the greater Philadelphia region, reported strong earnings for the second quarter of 2010. Net income was $947,000 compared to a loss of $39,000 for the same period in 2009. Earnings per common share for the second quarter of 2010 were $0.30 on a fully diluted basis compared to a loss of $0.07 for the same period in 2009. Core earnings, defined as net income absent gains and losses on the sale of securities and prepayment penalties, improved to $754,000 for the second quarter of 2010, compared to a loss of $117,000 for the same period in 2009. Core earnings is not a GAAP financial measure and therefore there are material limitations to its usefulness on a stand-alone basis, including its lack of comparability to the GAAP financial results of other companies. The Summary of Financial Statistics section in this report includes a reconciliation of core earnings to the corresponding GAAP financial measure. William S. Latoff, Chairman and CEO, said, "We are extremely pleased to report continued strong earnings for the second quarter of 2010. This is a culmination of years of effort to control non- interest expense, increase margins and improve balance sheet strength. We have concentrated on building a low risk investment portfolio that provides high liquidity and a loan portfolio that maximizes yield, while maintaining credit quality. This conservative approach has mitigated many of the economic and market factors that have negatively impacted community banks across the nation. This strategy combined with greater fee income, has resulted in a significant improvement in core earnings, which we believe is sustainable over time." Net interest income increased $1.0 million during the second quarter of 2010 to $4.7 million, compared to $3.7 million for the same period in 2009. The increase during the three month period was due primarily to higher levels of loan balances combined with a reduction in interest expense. The reduction in interest expense was due to lower rates on interest-bearing deposits and the pay down of FHLB borrowings during the first quarter. The net interest margin for the three-month period ended June 30, 2010 was 3.23%, a 55 basis point improvement over the same period in 2009.