2014

DCB Financial Corp Announces Fourth Quarter and Full Year 2013 Results

LEWIS CENTER, Ohio, Feb. 11, 2014 /PRNewswire/ -- DCB Financial Corp (the "Company"), (OTC Bulletin Board DCBF), parent holding company of The Delaware County Bank & Trust Company, Lewis Center, Ohio (the "Bank") announced a net loss of $3.1 million or $(0.43) per diluted share for the three months ended December 31, 2013, compared to a net loss of $146,000 or $(0.03) per diluted share for the same period in 2012. The Company recorded a provision for loan losses of $3.3 million in the fourth quarter of 2013 as a result of specific strategies developed in the fourth quarter, including collateral liquidations and planned loan sales, which are intended to accelerate the disposition of certain classified commercial loans with outstanding balances totaling $13.8 million at the end of 2013.

The net loss for the year ended December 31, 2013 was $2.9 million or $(0.41) per diluted share, compared with net income of $602,000 or $0.15 per diluted share in 2012. 

Ronald J. Seiffert, President and CEO for the Company said, "The fourth quarter loan loss provision was a difficult but necessary step to take in our efforts to aggressively dispose of a specifically identified group of problem loans. The strategies we are employing to accelerate the reduction of our exposure to these classified loans, and the related expense and management distractions, are in the long-term best interests of our Company, its shareholders and employees.  We have made significant progress over the past three years in reducing the level of delinquencies and classified assets.  These actions taken in the fourth quarter are a continuation of those efforts, and, we believe, have greatly reduced the uncertainties surrounding the ultimate disposition of the affected loans."

Seiffert continued, "We continued to strengthen the fundamental operations and future earnings potential of our Company in the fourth quarter, as reflected by a 6.3% rate of annualized growth in our loan portfolio and increases in net interest income and net interest margin.  In January of this year, we announced the sale of our Marysville branch, which was a strategic move in our goal to better allocate our capital, financial and management resources where our strengths and strategic opportunities lie.  As we move through 2014, we will continue to implement our growth strategy by leveraging our existing resources and expense base, and will continue to assess all aspects of our organization for opportunities to reduce expenses through process improvements and efficiencies."

Balance Sheet Highlights

Total assets were $502.4 million at December 31, 2013 compared with $506.8 million at September 30, 2013 and $506.5 million at December 31, 2012.  Total loans, including loans held for sale, were $363.9 million at the end of 2013, representing growth of $5.6 million from September 30, 2013 and $46.4 million from the end of 2012.  The loan growth was broad-based in 2013, with the commercial portfolios up $6.6 million, residential loans up $26.8 million and consumer loans up $12.9 million. The loan growth was funded primarily from cash and amortization of securities.  Cash decreased to $25.4 million at December 31, 2013 from $63.3 million at the end of 2012 and $34.8 million at September 30, 2013. Investment securities decreased to $79.9 million at December 31, 2013 from $88.3 million at the end of 2012 and $81.1 million at September 30, 2013.  

Deposits totaled $449.4 million at December 31, 2013 and were relatively unchanged throughout 2013. Low-cost transaction accounts comprised 37.5% of total deposits at the end of the fourth quarter, compared with 35.6% at September 30, 2013 and 38.1% at December 31, 2012. The Bank's liability mix remained favorably weighted toward transaction accounts in the fourth quarter as retail and municipal depositors continue to prefer transaction and money market accounts over time accounts in the low interest rate environment, and also because of the buildup of cash on commercial customers' balance sheets.

Shareholders' equity was $45.2 million at December 31, 2013, compared with $48.5 million at the end of the third quarter.

Asset Quality and the Provision for Loan Losses

Delinquent loans (including non-performing) totaled $8.9 million at December 31, 2013, compared with $6.1 million at September 30, 2013 and $6.9 million at December 31, 2012.       

Non-performing assets were $23.0 million or 4.38% of total assets at December 31, 2013, compared with $21.9 million or 4.33% of total assets at September 30, 2013 and $31.2 million or 6.16% of total assets at December 31, 2012.  Troubled debt restructurings ("TDR's") which are performing in accordance with the restructured terms and accruing interest, but are included in non-performing assets, were $13.1 million at December 31, 2013, $14.0 at September 30, 2013 and $20.1 million at December 31, 2012. The decline in non-performing assets in 2013 resulted primarily from paydowns, payoffs and charge-downs of non-performing assets during the year.

Non-accrual loans (included in non-performing assets) were $7.7 million or 2.11% of total loans at December 31, 2013, compared with $5.6 million or 1.55% of total loans at September 30, 2013, and $5.3 million or 1.68% of total loans at December 31, 2012.  The increase in non-accrual loans resulted primarily from one commercial relationship in the amount of $3.0 million, which was less than 90 days past due at the end of 2013, but which the Company placed on non-accrual status due to deterioration in the borrowers' financial condition. In February 2014 the Company received a payment of $1.0 million which was applied against the outstanding principal balance of this relationship. The Company is vigorously working to collect the entire amount owed on this relationship, and retains secured positions on non-real estate assets of the business. The ultimate value and collectability of this secured position is unclear at this time, and as a result, an allowance allocation of $1.5 million was made to this relationship as of December 31, 2013.    

Net charge-offs were $1.1 million in the fourth quarter of 2013 and $610,000 in the year ended December 31, 2013, compared with net charge-offs of $970,000 and $3.2 million in the year-ago periods, respectively. Net charge-offs annualized equaled 1.21% and 0.18%, respectively, of average loans during the quarter and year ended December 31, 2013, compared with 1.22% and 0.97% in the year-ago periods, respectively.      

The provision for loan losses was $3.3 million in the fourth quarter of 2013, compared to a negative provision of $300,000 in the year-ago quarter. The provision for loan losses was $2.4 million in 2013, compared to $495,000 in 2012. The provision for loan losses as a percentage of net charge-offs was 303% in the fourth quarter. The provision for loan losses as a percentage of net charge-offs was 396% in 2013 compared with 15% in 2012. 

The increase in provision expense in the fourth quarter of 2013 is attributable to the strategies we are employing to accelerate the reduction of our exposure to three commercial relationships and a group of homogenous single-family residential investment properties. Taken together, loan loss provisions allocated to these four exposures totaled $3.3 million or 100% of the provision expense for the quarter.

The largest of the three commercial relationships is a $3.5 million commercial real estate relationship secured by a shopping center. The Company has agreed to the terms of a sale of the collateral to a third party for $2.9 million, which is expected to close in February 2014. In connection with the settlement of this relationship, the Company recognized provision expense in the fourth quarter of $452,000 to increase the reserve allocated to this relationship to $840,000. The relationship was charged down by the amount of the reserve, resulting in a net carrying value of $2.7 million.

The second relationship is a $3.1 million commercial real estate relationship secured by single family residential investor properties. Interest payments are being made in accordance with the loan terms, and principal reduction occurs with the sale of each property. The Company is actively working with the borrower to develop a plan to accelerate the liquidation of the collateral, and in connection with this, recognized provision expense in the fourth quarter of $525,000, bringing the total allowance allocation to this relationship of $616,000.

The third commercial relationship, had an outstanding balance of $3.0 million and an allowance allocation of $1.5 million at the end of 2013. A $1.0 million principal payment was received subsequent to year-end, and the Company continues to actively pursue full collection of the outstanding balance. The Company has determined that a charge-down on the balance of this relationship is not warranted at this time based on the present circumstances and the active collection activities.

Separately, the Company identified a group of 54 homogenous individual loans aggregating $4.2 million, each separately secured by single family residential investor properties, which it plans to offer for sale in 2014. A provision expense of $946,000 was recognized in the fourth quarter in connection with the decision to sell these loans, to increase the total allowance allocation on these loans to $2.0 million. The loans, net of the allowance allocation, are classified as held-for-sale at the end of 2013 with a carrying value of $2.2 million.   

The allowance for loan losses was $6.7 million at December 31, 2013 compared with $6.5 million at September 30, 2013 and $6.9 million at December 31, 2012.  The ratio of the allowance for credit losses to total loans was 1.85% at December 31, 2013, compared with 1.81% at September 30, 2013 and 2.17% at December 31, 2012.  The ratio of the allowance for loan losses to non-performing loans (including TDR's) was 32.3% at December 31, 2013, compared with 33.0% at September 30, 2013 and 27.1% at December 31, 2012. The ratio of the allowance for loan losses to non-accrual loans was 87.6% at December 31, 2013, compared with 116.6% at September 30, 2013 and 129.1% at December 31, 2012.

Net Interest Income

Net interest income totaled $4.0 million in the three months ended December 30, 2013, compared with $3.9 million in the year-ago quarter and $3.9 million in the third quarter of 2013.  Average interest-earning assets increased $15.7 million in the fourth quarter compared to the year-ago quarter, and increased $4.1 million compared with the third quarter of 2013. The net interest margin decreased 3 basis points in the fourth quarter compared with the year-ago quarter, but increased 9 basis points from the third quarter of 2013.  The growth in interest-earning assets and net interest margin compared to the third quarter of 2013 is attributable to increases in average loan balances that were primarily funded from low yielding excess cash.

The net interest margin was 3.37% in the fourth quarter of 2013, compared with 3.40% in the year-ago quarter and 3.31% in the third quarter of 2013.  The increase in the net interest margin compared with the third quarter of 2013 was the result of a decrease in the cost of interest-bearing liabilities of 6 basis points that resulted from higher average balances of low-cost transaction accounts and an increase in the earning asset yield of 1 basis point resulting from higher average loan balances.

Average interest-earning assets were $470.7 million in the fourth quarter, compared with $455.1 million in the year-ago quarter and $466.6 million in the third quarter of 2013.  The average balance of interest earning cash and cash equivalents decreased $22.1 million compared with the year-ago quarter, and was offset by a $43.5 million increase in the average balance of loans as we used our excess liquidity position to fund loan growth. Total average loans and leases were 76.7% of total average interest-earning assets in the fourth quarter of 2013, compared with 69.8% in the year-ago quarter and 75.8% in the third quarter of 2013.       

Net interest income for the year ended December 31, 2013 totaled $15.3 million, which was down $322,000 or 2.2% compared with 2012.  The net interest margin was 3.28% in 2013, compared with 3.31% in 2012.  The earning asset yield decreased 32 basis points in 2013 compared with 2012, and the cost of interest-bearing liabilities decreased 33 basis points over the same period.

Average interest-earning assets were $464.7 million in 2013, which was a decrease of $1.9 million or 0.4% from 2012. Total average loans and leases were 73.6% of total interest-earning assets in 2013, compared with 70.7% in 2012.

Non-Interest Income and Non-Interest Expenses

Non-interest income was $1.1 million in the fourth quarter of 2013, compared with $944,000 in the fourth quarter of 2012 and $1.2 million in the third quarter of 2013. The increase from 2012 is attributable to an increase in wealth management income of $162,000 and to a loss on the sale of REO of $134,000 in the year-ago quarter, which were partially offset by a decrease in service charges of $159,000 in 2013.  The year over year decline in service charges is the result of lower fee-based transaction volume due to changes in customer deposit account utilization as well as regulatory changes relating to the manner in which financial institutions administer fee-based services.

Non-interest income totaled $5.0 million in 2013 and 2012.  Decreases in service charges and gains on the sales of securities in 2013 were offset by increases in wealth management income and lower REO losses. Service charges decreased $406,000 due primarily to lower fee-based transaction volume due to changes in customer deposit account utilization as well as regulatory changes relating to the manner in which financial institutions administer fee-based services, and to a decline in fees collected on referrals of mortgage loans as the Bank has retained most originated mortgage loans in the portfolio in the current year.  Wealth management income increased $303,000 due to increases in client accounts and assets under management resulting from the business development activities of new wealth management professionals that the Company hired at the end of 2012.

Non-interest income accounted for 21.8% of total revenue in the fourth quarter of 2013, compared with 21.9% in the year-ago quarter.  Non-interest income accounted for 23.9% of total revenue in 2013, compared with 23.9% in 2012.

Non-interest expenses were $4.9 million in the fourth quarter of 2013, compared with $5.0 million in the year-ago quarter and $5.2 million in the third quarter of 2013.  Increases in salaries and benefits and occupancy and equipment in 2013 were offset by decreases in FDIC insurance premiums and other non-interest expenses. Salaries and benefits expense increased $144,000 due primarily to the addition of business development professionals, which has contributed to higher wealth management income and growth in loans and net interest income. Salaries and benefits expense decreased $397,000 compared with the third quarter of 2013 due primarily to the reversal of senior management bonus and deferred compensation accruals.  Occupancy and equipment expense increased $166,000 in the fourth quarter compared to the year-ago period due to an increase in maintenance and repairs. Other non-interest expenses decreased $370,000 in the fourth quarter compared to the year-ago period due primarily to higher costs associated with REO properties in 2012's fourth quarter.

Non-interest expenses were $21.0 million in 2013, compared with $19.6 million in 2012.  The increase is attributable to a $1.7 million increase in salaries and benefits, a $480,000 increase in professional services, and a $161,000 increase in occupancy expense, partially offset by a $530,000 decrease in other expense and a $450,000 decrease in FDIC insurance premiums. The increase in salary and benefits is driven by the previously mentioned addition of new business development professionals, which has contributed to higher wealth management income and growth in loans and net interest income. The increase in professional expenses primarily relates to expenses related to the workout and disposition of criticized and classified assets. The decrease in other expenses is attributable to expenses in the prior year associated with operating and disposing of REO properties, and a decrease in data processing expenses.  The decrease in the FDIC deposit insurance premiums is a result of an upgrade in the Bank's risk classification for insurance assessment purposes.

The Company's efficiency ratio was 95.82% in the fourth quarter of 2013, compared with 98.47% in the year-ago quarter.  The Company's efficiency ratio was 104.71% in 2013, compared with 93.94% in 2012. 

About DCB Financial Corp    

DCB Financial Corp is a financial holding company formed under the laws of the State of Ohio. The Company is the parent of The Delaware County Bank & Trust Company, a state-chartered commercial bank. The Bank conducts business from its main offices at 110 Riverbend Avenue in Lewis Center, Ohio, and through its 14 branch offices located in Delaware County, Ohio and surrounding communities. The Bank provides customary retail and commercial banking and cash management services to its customers, including checking and savings accounts, time deposits, IRAs, safe deposit facilities, personal loans, commercial loans, commercial leases, real estate mortgage loans, night depository facilities and trust and personalized wealth management services.

Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of DCB Financial Corp.  These forward-looking statements involve certain risks and uncertainties.  Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: an increase in competitive pressure in the banking industry; changes in the interest rate environment which may affect the net interest margin; changes in the regulatory environment; general economic conditions, either nationally or regionally, resulting, among other things, in a deterioration in credit quality; changes in business conditions and inflation; changes in the securities markets; changes in technology used in the banking business; our ability to maintain and increase market share and control expenses; increases in FDIC insurance premiums may cause earnings to decrease; and other risks set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and in subsequent filings with the Securities and Exchange Commission.

The Company does not undertake, and specifically disclaims any obligation, to publicly revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 


DCB Financial Corp

Consolidated Balance Sheets (Unaudited)




December 31, 2013


December 31, 2012



(Dollars in thousands, except share and per share data)

Assets





Cash and due from financial institutions


$   6,110


$    9,663

Interest-bearing deposits


19,247


53,644

   Total cash and cash equivalents


25,357


63,307

Securities available-for-sale


79,948


87,197

Securities held-to-maturity


-


1,149

   Total securities


79,948


88,346






Loans


356,048


317,504

Less allowance for loan losses


(6,724)


(6,881)

   Net loans


349,324


310,623






Loans held for sale


7,806


-

Real estate owned


1,219


3,671

Investment in FHLB stock


3,799


3,799

Premises and equipment, net


11,015


12,036

Premises and equipment held for sale


1,031


-

Bank-owned life insurance


19,297


18,564

Accrued interest receivable and other assets


3,623


6,146

   Total assets


$502,419


$506,492






Liabilities and stockholders' equity





Liabilities:





Deposits:





    Non-interest bearing


$112,517


$ 95,847

    Interest bearing


314,342


352,443

Total deposits


426,859


448,290






Deposits held for sale


22,571


-

Federal Home Loan Bank advances


4,838


7,498

Accrued interest payable and other liabilities


2,888


2,315

Total liabilities


457,156


458,103






Stockholders' equity:





Common stock


15,771


15,771

Retained earnings


37,681


40,614

Treasury stock


(7,416)


(7,416)

Accumulated other comprehensive income


(773)


(580)

   Total stockholders' equity


45,263


48,389

   Total liabilities and stockholders' equity


$502,419


$506,492











Common shares outstanding


7,192,050


7,192,050

Book value per common share


$6.29


$6.73

 

DCB Financial Corp

Consolidated Statements of Operations (Unaudited)




Three months ended

December 31,


Twelve months ended

December 31,



2013


2012


2013


2012



(Dollars in thousands, except share and per share data)

Interest income:









Loans


$3,828


$3,929


$14,928


$16,343

Securities


528


548


2,064


2,407

Federal funds sold and interest bearing deposits


16


28


87


98

   Total interest income


4,372


4,505


17,079


18,848










Interest expense:









Deposits:









  Savings and money market  accounts


131


102


474


380

  Time accounts


166


364


989


1,894

  NOW accounts


22


23


91


77

Total


319


489


1,554


2,351










Borrowings:

  FHLB advances


50


116


264


887

Total interest expense


369


605


1,818


3,238










Net interest income


4,003


3,900


15,261


15,610

Provision for loan losses


3,307


(300)


2,417


495

Net interest income after provision for loan losses


696


4,200


12,844


15,115










Non-interest income:









Service charges on deposit accounts


530


689


2,195


2,601

Wealth management fees


329


120


1,418


1,073

Treasury management fees


61


64


244


257

Income from bank-owned life insurance


162


167


733


742

Gain (loss) on the sale of REO


(4)


(150)


31


(396)

Gain on the sale of securities


-


-


135


508

Other non-interest income


38


54


211


239

Total non-interest income


1,116


944


4,967


5,024










Non-interest expense:









Salaries and employee benefits


2,527


2,383


11,287


9,538

Occupancy and equipment


791


625


3,069


2,908

Professional services


465


441


1,791


1,311

Advertising


54


74


293


396

Office supplies, postage and courier


118


193


481


411

FDIC insurance premium


168


287


699


1,149

State franchise taxes


104


143


478


421

Other non-interest expense


687


1,057


2,942


3,472

Total non-interest expense


4,914


5,203


21,040


19,606










(Loss) income before income tax expense


(3,102)


(59)


(3,229)


533

Income tax expense (benefit)


-


87


(298)


(69)

Net (loss) income


$(3,102)


$(146)


$(2,931)


$602










Share and Per Share Data









Basic average common shares outstanding


7,192,350


4,937,993


7,192,350


3,902,196

Diluted average common shares outstanding


7,192,350


4,937,993


7,192,350


3,919,080

Basic and diluted (loss) earnings per common share


$(0.43)


$(0.03)


$(0.41)


$0.15










 


DCB Financial Corp

Consolidated Average Balances (Unaudited)




Three months ended

December 31,


Twelve months ended

December 31,



2013


2012


2013


2012



(Dollars in thousands)

Earning assets:









Interest bearing cash


$  23,295


$45,394


$  32,799


$41,389

Securities


81,622


86,979


85,052


89,767

Tax-exempt securities


4,838


5,148


4,738


5,564

Loans (1)


360,994


317,542


342,112


329,878

Total earning assets


470,749


455,063


464,701


466,598










Non-earning assets


39,595


44,365


42,111


43,535

Total assets


$510,344


$499,428


$506,812


$510,133










Interest bearing liabilities:









Interest bearing DDA


$74,461


$70,308


$74,853


$69,277

Money market


126,031


101,963


116,872


95,123

Savings accounts


43,184


36,003


40,953


35,039

Time deposits


96,294


142,243


116,151


158,724

FHLB advances


5,037


10,714


5,916


21,118

Total interest bearing liabilities (2)


345,008


361,232


354,745


387,156










Non-interest bearing deposits (2)


114,680


99,927


100,385


84,063

Other non-interest bearing liabilities


1,852


1,510


2,883


4,075

Total liabilities


461,541


462,669


458,013


475,294

Stockholders' equity


48,803


36,759


48,799


34,839

Total liabilities and stockholders' equity


$510,344


$499,428


$506,812


$510,133


(1) Includes loans held for sale

(2) Includes deposits held for sale

 


DCB Financial Corp


Loans and Deposits (Unaudited)




The following table sets forth the composition of the Company's loan portfolio at the dates indicated (includes loans held for sale):






December 31, 2013


September 30, 2013


December 31, 2012




Amount


Percent


Amount


Percent


Amount


Percent


Loan portfolio composition


(Dollars in thousands)


Commercial and industrial  


$118,789


32.7%


$122,687


34.3%


$112,300


35.4%


Commercial real estate


111,474


30.7%


109,933


30.7%


111,417


35.1%


Real estate and home equity


98,909


27.2%


93,349


26.0%


72,137


22.7%


Consumer and credit card


34,517


9.4%


32,169


9.0%


21,620


6.8%


Total loans and leases


363,689


100.0%


358,138


100.0%


317,474


100.0%
















Net deferred loan costs


165




152




30




Allowance for loan losses   


(6,724)




(6,471)




(6,881)




Net loans and leases


$357,130




$351,819




$310,623






















The following table sets forth the composition of the Company's deposits at the dates indicated (includes deposits held for sale):
















December 31, 2013


September 30, 2013


December 31, 2012




Amount


Percent


Amount


Percent


Amount


Percent


Deposit composition


(Dollars in thousands)


Non-interest bearing demand


$112,711


25.1%


$103,762


23.0%


$95,847


21.4%


Interest bearing demand


55,580


12.4%


56,636


12.6%


74,993


16.7%


Total demand


168,291


37.5%


160,398


35.6%


170,840


38.1%
















Savings


169,083


37.6%


167,510


37.1%


36,895


8.2%


Money market


22,649


5.0%


19,947


4.4%


101,954


22.8%


Time deposits


89,407


19.9%


103,210


22.9%


138,601


30.9%


Total deposits


$449,430


100.0%


$451,065


100.0%


$448,290


100.0%






























 

DCB Financial Corp

Asset Quality (Unaudited)


The following table represents a summary of delinquent loans grouped by the number of days delinquent at the dates indicated (includes loans held-for-sale):


Delinquent loans and leases


December 31, 2013


September 30, 2013


December 31, 2012



$

%(1)


$

%(1)


$

%(1)



(Dollars in thousands)

30 days past due


$ 945

0.26%


$ 148

0.04%


$1,039

0.33%

60 days past due


290

0.08%


301

0.08%


504

0.16%

90 days past due and still accruing


-


87

0.02%


28

0.01%

Non-accrual


7,678

2.11%


5,551

1.55%


5,331

1.68%

Total


$8,913

2.45%


$6,087

1.70%


$6,902

2.17%


(1) As a percentage of total loans, excluding deferred costs

 

The following table represents information concerning the aggregate amount of non-performing assets (includes loans held for sale):


Non-performing assets


December 31, 2013


September 30, 2013


December 31, 2012



(Dollars in thousands)

Non-accruing loans:







   Residential real estate loans and home equity


$    352


$    257


$    321

   Commercial real estate


4,702


3,529


2,195

   Commercial and industrial


2,624


1,765


2,815

   Consumer loans and credit cards


-


-


-

Total non-accruing loans


7,678


5,551


5,331

Accruing loans delinquent 90 days or more


-


87


28

Total non-performing loans (excluding TDR's)


7,678


5,638


5,359








Collateralized debt obligations


976


1,004


2,090

Other real estate and repossessed assets


1,219


1,291


3,671

Total non-performing assets (excluding TDR's)


$9,873


$7,933


$11,120








Troubled debt restructurings(1)


$13,122


$13,992


$20,080

Total non-performing loans (including TDR's)


$20,800


$19,630


$25,439

Total non-performing assets (including TDR's)


$22,995


$21,925


$31,200








(1) TDR's that are in compliance with their modified terms and accruing interest.

 


The following table summarizes changes in the allowance for credit losses arising from loans charged off, recoveries on loans and leases previously charged off and additions to the allowance which have been charged to expense:


 

Allowance for credit losses


Three months ended

December 31,


Twelve months ended

December 31,



2013


2012


2013


2012



(Dollars in thousands)

Allowance for loan losses, beginning of period


$6,471


$8,151


$6,881


$9,584










Loans charged-off


(1,162)


(1,078)


(1,742)


(3,738)

Recoveries of loans previously charged-off


72


108


1,132


540

Net loans charged-off


(1,090)


(970)


(610)


(3,198)

Allowance related to loans transferred to held-for-sale


(1,965)


-


(1,965)


-

Provision for loan losses


3,308


(300)


2,418


495

Allowance for loan losses, end of period


$6,724


$6,881


$6,724


$6,881










 

DCB Financial Corp

Consolidated Financial Information (Unaudited)


 

Key Ratios


At or for the three months

ended December 31,


At or for the twelve months

 ended December 31,




2013


2012


2013


2012


Return on average assets


(2.43)%


(0.12)%


(0.58)%


0.12%


Return on average equity


(25.42)%


(1.59)%


(6.01)%


1.67%


Yield on earning assets


3.68%


3.93%


3.68%


4.00%


Cost of funds


0.42%


0.66%


0.51%


0.84%


Net interest margin (1)


3.37%


3.40%


3.28%


3.31%


Non-interest income to total income (2)


21.86%


21.91%


23.93%


23.94%


Efficiency ratio (3)


95.82%


98.47%


104.71%


93.94%












Net loans charged-off to average loans,    

  annualized


1.21%


1.22%


0.18%


0.97%


Provision for loan losses to average loans,

  annualized


3.66%


(0.38)%


0.71%


0.15%


Allowance for loan losses to total loans


1.85%


2.17%


1.85%


2.17%


Allowance for loan losses to non-performing loans


32.3%


27.1%


32.3%


27.1%


Non-accrual loans to total loans


2.11%


1.68%


2.11%


1.68%


Non-performing assets to total assets


4.58%


5.97%


4.58%


5.97%












(1) Net interest income divided by average earning assets

(2) Non-interest income (excluding net realized gains and losses on securities and other non-recurring gains and losses) divided by the sum of net interest income and non-interest income (as adjusted)

(3) Non-interest expense (less OREO expense) divided by the sum of net interest income and non-interest income (as adjusted)

 

DCB Financial Corp

Selected Quarterly Financial Data (Unaudited)




2013


2012



Fourth


Third


Second


First


Fourth



(Dollars in thousands, except share and per share data)

Interest income


$4,372


$4,316


$4,245


$4,146


$4,505

Interest expense


369


425


494


530


605

Net interest income


4,003


3,891


3,751


3,616


3,900

Provision for loan losses


3,307


-


(240)


(650)


(300)

Net interest income after provision for loan losses


696


3,891


3,991


4,266


4,200

Other non-interest income


1,116


1,192


1,351


1,308


944

Other non-interest expense


4,914


5,230


5,440


5,456


5,203

 (Loss) income before income tax expense


(3,102)


(147)


(98)


118


(59)

Income tax (benefit) expense


-


(20)


(254)


(24)


87

Net (loss) income


$(3,102)


$ (127)


$ 156


$ 142


$ (146)












Stock and related per share data











Basic and diluted (loss) earnings per common share


$ (0.43)


$  (0.02)


$  0.02


$  0.02


$  (0.03)

Basic and diluted weighted average common

shares outstanding


7,192,350


7,192,350


7,192,350


7,192,350


7,192,350

Common book value per share


$6.29


$6.74


$6.84


$6.75


$6.73












Capital Ratios (Bank)











Tier 1 leverage ratio


8.77%


9.44%


9.51%


9.47%


7.93%

Tier 1 risk based capital


12.24%


13.12%


13.25%


12.26%


9.82%

Total risk based capital


13.50%


14.38%


14.49%


13.48%


11.02%












Selected ratios











Return on average assets


(2.43)%


(0.10)%


0.12%


0.11%


(0.12)%

Return on average equity


(25.42)%


(1.04)%


1.27%


1.17%


(1.59)%

Yield on earning assets


3.68%


3.67%


3.73%


3.67%


3.93%

Cost of funds


0.42%


0.48%


0.59%


0.60%


0.66%

Net interest margin


3.37%


3.31%


3.29%


3.20%


3.40%

Non-interest income to total income (1)


21.86%


24.21%


24.45%


25.29%


21.91%

Efficiency ratio (2)


95.82%


101.77%


109.45%


112.38%


98.47%












Asset quality ratios











Net loans charged off to average loans, annualized


1.21%


0.04%


0.02%


(0.68)%


1.25%

Provision for loan losses to average loans, annualized


3.66%


0.00%


(0.29)%


(0.82)%


(0.38)%

Allowance for loan losses to total loans


1.85%


1.81%


1.82%


2.06%


2.17%

Allowance for loan losses to non-accrual loans


87.57%


116.57%


114.13%


124.23%


129.08%

Non-accrual loans to total loans


2.11%


1.55%


1.65%


1.65%


1.68%

Non-performing assets to total assets


4.58%


4.33%


4.72%


5.49%


5.97%












 (1) Non-interest income (net of realized gains and losses on securities and other non-recurring items) divided by the sum of net interest income and non-interest income (as adjusted)

(2) Non-interest expense (less OREO expense) divided by the sum of net interest income and non-interest income (as adjusted)

 

SOURCE DCB Financial Corp



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.