During the third quarter of 2012 and 2011, DNB provided $375,000 and $426,000, respectively, for credit losses. The allowance for credit losses at September 30, 2012 was $6.6 million compared to $6.2 million at December 31, 2011. DNB's coverage ratio, defined as the allowance for credit losses as a percentage of non-performing loans was 66.53% at September 30, 2012.William J. Hieb, President and Chief Risk & Credit Officer said: "We continue to work diligently to control the level of non-performing loans and we expect our efforts to reap benefits as we approach the end of the year. While non-performing loans have increased slightly in the third quarter, overall delinquencies have declined $1.1 million when compared to second quarter 2012. " The ratio of loans delinquent 30 days or more to gross loans was 2.76%, down from 3.00% at June 30, 2012 and up from 2.19% at December 31, 2011. The ratio of non-performing loans to total loans at September 30, 2012 was 2.45%, up from 2.21% at June 30, 2012 and 1.89% at December 31, 2011. Non-performing loans have increased, largely due to one commercial credit totaling $2.5 million, for which resolution is actively being pursued. Latoff concluded: "As we edge closer to 2013, we remain relentlessly focused on executing our strategic plan to grow the bank while building shareholder value. We will not lose sight of our need to bring increasing value to both our community and shareholders. Seeking out new revenue sources, maintaining a low cost of funds while still offering competitive rates, and controlling non-interest expenses, will drive our efforts in the near-term. It is our long-term vision and our nature to be flexible in an ever changing environment that has sustained us over the last 152 years. So we desire to be vigilant, prepared, and keenly focused on our future as we look ahead."