"The total OREO balance at March 31, 2013 was $1.21 million, compared with $3.86 million at March 31, 2012. We have also made adjustments to our loan portfolio in past quarters to reduce exposure to commercial construction loans and to bring additional balance to our portfolio. Construction related loans have been reduced to $13.2 million at March 31, 2013 versus $27.1 million at March 31, 2012."At March 31, 2013, DNB's Tier 1 leverage ratio was 10.48%, the Tier 1 risk-based capital ratio was 14.66% and the total risk-based capital ratio was 15.91%, well exceeding minimum accepted regulatory standards for a well-capitalized institution. Stockholders' equity increased to $57.66 million compared with $52.43 million at March 31, 2012 and $56.71 million at December 31, 2012, reflecting ongoing earnings growth. As noted in the highlight section, the company's book value per common share increased 12.1% between first quarter 2012 and first quarter 2013. Latoff concluded: "We are committed to growing market share in our served markets through a diversified approach which includes consumer, commercial, and SBA lending and in our wealth management and trust businesses. We are focusing on building core deposits to maintain a low cost of funds and expect to minimize our use of wholesale borrowings." "Maintaining high standards for risk management and continuing our focus on improving asset quality will enable us to grow earnings and build shareholder value. We feel DNB has good momentum as we progress through the year, and that our investment in people and capabilities will help maximize revenue opportunities in a stabilizing economic environment." For the third consecutive year, DNB Financial Corporation was named to the Keefe, Bruyette & Woods "Bank Honor Roll" for 2012. KBW is a full-service, boutique investment bank and broker-dealer that specializes in the financial services sector. Honor Roll winners are publicly traded banking institutions with more than $500 million in total assets with no annual loss reported in net income per share before extraordinary items over the past 10 years, 2012 annual reported net income per share before extraordinary items equal to or greater than peak net income per share over the past 10 years, and consecutive increases in net income per share before extraordinary items since 2009. Out of 7000 banks nationwide 400 banks were screened by KBW to be nominated for this award. While 47 banks in all were named to this honor roll, DNB was one of only 19 that have been recognized three consecutive years.