Core deposits increased 9.13% year-over-year and non-interest income, excluding gains on the sale of investment securities and SBA loans and the write down of OREO properties, was $1.2 million for the fourth quarter, representing a 36.30% increase over 2011 and $3.9 million for the full year 2012, up 17.97% from $3.4 million in 2011."We continued to accrue capital through retained earnings and have grown low-cost core deposits, which provide necessary liquidity to meet our funding needs. Our net loan balances declined, but not due to weak loan demand. Gross loans funded in 2012 were $89.7 million compared to $78.7 million in 2011. However, pay-downs were $96.9 million for 2012, up from $71.2 million in 2011." Net loans for commercial term and commercial mortgage increased $5.6 million and $2.0 million or 7.32% and .82% respectively, while commercial construction declined $12.6 million or 50.65%. Latoff continued, "We focused on reducing our exposure to commercial construction, while increasing balances for commercial mortgage and term loans, which invest in our communities and build relationships." Total assets increased $32.5 million or 5.35% to $639.6 million at December 31, 2012 compared to $607.1 million at December 31, 2011. Deposits increased by $32.9 million or 6.61% to $530.4 million at December 31, 2012 compared to $497.5 million at December 31, 2011. Core deposits, i.e., demand deposits, money market accounts, NOW and savings accounts increased $35.8 million in aggregate or 9.13%, while time deposits declined $2.9 million or 2.77% each since December 31, 2011. DNB's composite cost of funds for the fourth quarter of 2012 dropped 13 basis points to 0.61% compared to 0.74% for the three months ended December 31, 2011. DNB's Tier 1 leverage ratio stood at 10.50%, while its total risk-based capital ratio stood at 15.84%, well exceeding minimum accepted regulatory standards for a well-capitalized institution. Stockholders' equity increased $5.6 million to $56.7 million at December 31, 2012 compared to $51.1 million at December 31, 2011, reflecting solid earnings growth.