DCB Financial Corp Announces Pre-Tax Income of $400,000 for Third Quarter 2015

Reversal of Valuation Allowance on Net Deferred Tax Assets Adds $10.7 Million to Net Income

02 Nov, 2015, 08:00 ET from DCB Financial Corp

LEWIS CENTER, Ohio, Nov. 2, 2015 /PRNewswire/ -- DCB Financial Corp (the "Company"), (OTCPink: DCBF), parent holding company of The Delaware County Bank & Trust Company, Lewis Center, Ohio (the "Bank") announced net income of $11.1 million or $1.52 per diluted share for the three months ended September 30, 2015, compared to net income of $50,000 or $0.01 per diluted share for the same period in 2014. The Company reversed a valuation allowance that had previously been recorded against its net deferred tax assets, resulting in a one-time tax benefit in the third quarter of 2015 of $10.7 million or $1.46 per diluted share. Pre-tax income was $400,000 for the third quarter of 2015, compared with $50,000 in the year-ago quarter.       

Net income was $11.5 million or $1.58 per diluted share for the nine months ended September 30, 2015, compared to net income of $206,000 or $0.03 per diluted share for the same period in 2014. Pre-tax income was $783,000 or $0.11 per diluted share for the nine months ended September 30, 2015, compared with $206,000 or $0.03 per diluted share in the year-ago period.       

On a quarterly basis, the Company determines whether a valuation allowance is necessary on its net deferred tax assets. In doing so, the Company considers all evidence available, both positive and negative, in determining whether it is more likely than not that the net deferred tax assets will be realized. After weighing all available evidence at September 30, 2015, the Company concluded that it is more likely than not that its net deferred tax assets will be realized. As a result, the company reversed the valuation allowance against its net deferred tax assets, resulting in the recognition of a $10.7 million federal income tax benefit in the Company's net income in the third quarter of 2015.

Ronald J. Seiffert, President and CEO for the Company said, "The reversal of the valuation allowance on our net deferred tax assets reflects the positive trends in the Company's core earnings and asset quality over the past seven quarters, along with our confidence in the Company's ability to generate taxable income in future years sufficient to utilize the net deferred tax assets."

Seiffert continued, "We are continuing to develop a number of strategic initiatives that are designed to further enhance the Company's profitability in coming quarters, including a planned expansion of our residential mortgage and small-business lending capabilities going into 2016."

Balance Sheet Highlights
Total assets were $541.7 million at September 30, 2015, compared with $541.6 million at June 30, 2015 and $515.4 million at December 31, 2014. Cash and cash equivalents increased $13.8 million since the end of 2014 due primarily to deposit growth during the period, and net deferred tax assets increased $10.4 million as the result of the reversal of the valuation allowance in the third quarter of 2015.   

Total loans were $380.3 million at September 30, 2015, compared with $382.2 million at June 30, 2015 and $385.4 million at December 31, 2014. The Company has experienced significant prepayments in its commercial portfolio in 2015, including 5 relationships aggregating $5.7 million that paid off during the first quarter and 6 relationships aggregating $7.1 million that paid off in the third quarter. Non-performing troubled-debt restructured loans comprised approximately one-third of these large payoffs during 2015.  

The Company has classified the $4.8 million carrying amount of its headquarters building as held-for-sale as of September 30, 2015, reflecting the Company's plan to sell and simultaneously lease back the property.

Deposits totaled $474.9 million at September 30, 2015, compared with $470.5 million at June 30, 2015 and $453.2 million at December 31, 2014. Much of the growth in deposits during 2015 has been the result of higher balances maintained by existing municipal and business customers.

Shareholders' equity increased $11.5 million in the nine months of 2015 to $58.7 million at September 30, 2015 due to net income for the period, which was comprised of pre-tax income of $783,000 and the income tax benefit of $10.7 million that resulted from the reversal of the valuation allowance against the Company's net deferred tax assets. The Company's tangible common equity to tangible assets ratio was 10.8% at September 30, 2015.

The Bank's Tier 1 leverage ratio was 9.18% and its total risk-based capital ratio was 14.23% at September 30, 2015, both of which were well above the regulatory thresholds required to be classified as a "well-capitalized" institution, which are 5.0% and 10.0%, respectively. The effect of the income tax benefit recorded in the third quarter added approximately 50 basis points to the Bank's regulatory capital ratios.  

Asset Quality and the Provision for Loan Losses
Delinquent loans (including non-accrual loans) totaled $1.5 million or 0.40% of total loans at September 30, 2015, compared to $2.4 million or 0.63% of total loans at June 30, 2015 and $2.2 million or 0.58% of total loans at December 31, 2014.  Non-accrual loans totaled $1.3 million or 0.35% of total loans at September 30, 2015, compared to $1.5 million or 0.38% of total loans at June 30, 2015 and $1.4 million or 0.36% of total loans at December 31, 2014.

Non-performing assets dropped $3.6 million or 30.4% in the third quarter, and were $8.2 million or 1.52% of total assets at September 30, 2015, compared with $11.8 million or 2.18% of total assets at June 30, 2015 and $12.6 million or 2.45% of total assets at December 31, 2014.  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 $6.1 million at September 30, 2015, compared to $9.1 million at June 30, 2015, and $9.6 million at December 31, 2014. During the third quarter the Company sold two commercial mortgage loans that had been classified as impaired TDR's, at the aggregate outstanding amount of the loans of $3.2 million.

Net recoveries of previously charged-off loans totaling $192,000 were recorded in the third quarter of 2015, compared to net charge-offs of $392,000 or 0.43% (annualized) of average loans in the year-ago quarter, and net recoveries of $75,000 in the second quarter of 2015.

Net charge-offs were $30,000 or 0.02% (annualized) of average loans in the first nine months of 2015, compared to net charge-offs of $2.5 million or 0.91% (annualized) of average loans in the first nine months of 2014. Three relationships comprised approximately 71% of the gross charge-offs in the first nine months of 2014, which were charged against specific allowance allocations established in the fourth quarter of 2013.

The Company recorded a negative provision for loan losses of $150,000 in the third quarter of 2015, due primarily to the net recoveries recorded in the quarter and to the favorable impact on the allowance for loan losses of the reduction in non-performing loans during the quarter. The negative provision for loan losses recorded in the third quarter had the effect of offsetting the provision for loan losses of $150,000 that was recorded in the first quarter of 2015, resulting in no provision for loan losses for the nine months ended September 30, 2015. There was no provision for loan losses recorded in the three months and nine months ended September 30, 2014.

The allowance for loan losses was $4.2 million at September 30, 2015 and at June 30, 2015 and December 31, 2014.  The ratio of the allowance for loan losses to total loans was 1.12% at September 30, 2015, compared to 1.09% at June 30, 2015, and 1.10% at December 31, 2014.  The ratio of the allowance for loan losses to non-performing loans (including TDR's) was 56.6% at September 30, 2015, compared to 37.8% at June 30, 2015, and 36.8% at December 31, 2014. The ratio of the allowance for loan losses to non-accrual loans was 314% at September 30, 2015, compared to 286% at June 30, 2015, and 306% at December 31, 2014.

Net Interest Income
Net interest income totaled $4.2 million in the quarter ended September 30, 2015, compared with $4.0 million in the year-ago quarter and $4.2 million in the second quarter of 2015. The net interest margin was 3.35% in the third quarter of 2015, compared to 3.40% in the year-ago quarter and 3.40% in the second quarter of 2015. The decline in the net interest margin was due primarily to the reinvestment of loan amortization and payoffs into loans with lower current yields, as well as from the effect of higher interest-bearing cash balances, with yields averaging 0.25%.

Total average interest-earning assets were $496.5 million in the third quarter of 2015, which was an increase of $33.0 million or 7.1% from the year-ago quarter and was an increase of $5.5 million compared with the second quarter of 2015. Average loans outstanding in the third quarter were $21.0 million higher than the year-ago quarter, and were up $5.3 million compared with the second quarter of 2015.  The increase in the third quarter's average loan balances have occurred despite the decline in actual period end loans outstanding at September 30, 2015 as the result of the timing of the large commercial loan payoffs that occurred in the third quarter of 2015, along with the effect on average balances throughout 2015 of the $16.2 million of growth in the portfolio that occurred in the fourth quarter of 2014. Total average loans were 77.2% of total average interest-earning assets in the third quarter of 2015, compared with 78.2% in the year-ago quarter and 77.0% in the second quarter of 2015. 

Total average interest-bearing deposit balances increased $11.9 million in the third quarter of 2015 compared to the year-ago quarter, with an increase of $17.4 million in the average balances of lower-costing interest-bearing demand, savings and money market accounts (transaction accounts) offsetting a decrease in the average balance of time deposits of $5.5 million. Transaction accounts comprised 79.1% of total interest-bearing deposits in the third quarter of 2015, compared to 76.8% in the year-ago quarter and 78.9% in the second quarter of 2015.

Net interest income totaled $12.5 million in the nine months ended September 30, 2015, which was an increase of $594,000 or 5.0% compared with $11.9 million in the year-ago period.  The net interest margin was 3.41% for the nine months ended September 30, 2015, compared with 3.45% in the year-ago period. 

Average interest-earning assets were $491.7 million in the first nine months of 2015, which was an increase of $30.3 million or 6.6% from the first nine months of 2014. Average loans outstanding in the first nine months of 2015 increased $20.9 million compared to the year-ago period, and totaled 77.4% of total interest-earning assets in the nine months ended September 30, 2015, compared with 78.0% in the nine months ended September 30, 2014.

The average balance in time deposits decreased $7.1 million in the first nine months of 2015 compared with the year-ago period, while the average balances in lower-costing interest-bearing demand, savings and money market accounts increased $25.0 million. Transaction accounts comprised 78.8% of total interest-bearing deposits in the first nine months of 2015, compared to 75.6% in the first nine months of 2014.

Non-Interest Income and Non-Interest Expenses
Non-interest income was $1.2 million in the third quarter of 2015, compared to $1.1 million in the third quarter of 2014 and $1.2 million in the second quarter of 2015. Non-interest income was $3.6 million in the nine months September 30, 2015, compared to $3.3 million in the first nine months of 2014. Income from wealth management fees and treasury management fees increased $126,000 and $30,000, respectively in the first nine months of 2015 compared to the year-ago period largely from the impact of business development activities.

Non-interest income accounted for 22.9% of total revenue in the third quarter of 2015, compared with 22.6% in the year-ago quarter and 22.2% in the second quarter of 2015.  Non-interest income accounted for 22.2% of total revenue in both the nine months ended September 30, 2015 and in the year-ago period.

Non-interest expenses were $5.2 million for the third quarter of 2015, compared with $5.1 million in the year-ago quarter and $5.2 million for the second quarter of 2015.  The Company's efficiency ratio was 95.0% in the third quarter of 2015, compared with 98.7% in the year-ago quarter, and 95.0% in the second quarter of 2015. 

Non-interest expenses were $15.3 million in the nine months ended September 30, 2015, compared to $15.0 million in the year-ago period. The Company's efficiency ratio was 95.0% for the first nine months of 2015, compared to 98.1% in the year-ago period.

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 eight full-service and six limited-service branch offices located in Central Ohio. 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 in, 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, 2014, 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)




September 30, 2015


December 31, 2014



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

Assets





Cash and due from financial institutions


$6,883


$     6,247

Interest-bearing deposits


28,148


15,027

   Total cash and cash equivalents


35,031


21,274






Securities available-for-sale


82,019


75,909






Loans


380,290


385,444

Less allowance for loan losses


(4,206)


(4,236)

   Net loans


376,084


381,208






Real estate owned


785


1,111

Investment in FHLB stock


3,250


3,250

Premises and equipment, net


5,178


10,016

Premises and equipment held-for-sale


4,771


Bank-owned life insurance


20,598


20,027

Deferred tax asset, net


10,383


Accrued interest receivable and other assets


3,635


2,587

   Total assets


$541,734


$515,382






Liabilities and shareholders' equity





Liabilities:





Deposits:





    Non-interest bearing


$123,870


$111,022

    Interest bearing


351,037


342,170

Total deposits


474,907


453,192






Borrowings


4,711


11,808

Accrued interest payable and other liabilities


3,420


3,171

Total liabilities


483,038


468,171






Shareholders' equity:





Common stock


16,456


16,064

Retained earnings


49,526


38,055

Treasury stock


(7,416)


(7,416)

Accumulated other comprehensive income


609


654

Deferred stock-based compensation


(479)


(146)

   Total shareholders' equity


58,696


47,211

   Total liabilities and shareholders' equity


$541,734


$515,382











Common shares outstanding


7,287,435


7,233,795

Book value per common share


$8.05


$6.53

 

 

DCB Financial Corp

Consolidated Statements of Operations (Unaudited)




Three months ended
September 30,


Nine months ended
September 30,



2015


2014


2015


2014



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










Interest income:









Loans


$3,979


$3,775


$11,884


$11,231

Securities


473


494


1,460


1,582

Federal funds sold and interest bearing deposits


17


9


46


32

   Total interest income


4,469


4,278


13,390


12,845










Interest expense:









Deposits:









  Savings and money market  accounts


153


147


445


416

  Time accounts


88


104


272


341

  NOW accounts


16


19


49


56



257


270


766


813










Borrowings


35


36


106


108

Total interest expense


292


306


872


921










Net interest income


4,177


3,972


12,518


11,924

Provision for loan losses


(150)




Net interest income after provision for loan losses


4,327


3,972


12,518


11,924










Non-interest income:









Service charges


523


485


1,475


1,485

Wealth management fees


438


420


1,217


1,091

Treasury management fees


81


58


203


173

Income from bank-owned life insurance


163


165


571


566

Loss on loans held for sale



(189)



(546)

Loss on sale of REO


(19)


(69)


(20)


(73)

Gain on sale of securities, available-for-sale



241



101

Gain on sale of branch





438

Other non-interest income


37


29


115


92

Total non-interest income


1,223


1,140


3,561


3,327










Non-interest expense:









Salaries and employee benefits


2,771


2,821


8,302


8,311

Occupancy and equipment


1,010


892


2,996


2,841

Professional services


405


366


1,042


983

Advertising


169


100


418


258

Office supplies, postage and courier


81


72


232


256

FDIC insurance premium


95


180


302


520

State franchise taxes


75


67


225


199

Other non-interest expense


544


564


1,779


1,677

Total non-interest expense


5,150


5,062


15,296


15,045










Income before income tax benefit


400


50


783


206

Income tax benefit


(10,688)



(10,688)


Net income 


$11,088


$  50


$11,471


$206










Share and Per Share Data









Basic average common shares outstanding


7,287,435


7,192,350


7,244,394


7,192,350

Diluted average common shares outstanding


7,307,244


7,249,194


7,263,409


7,242,431

Basic earnings per common share


$1.52


$0.01


$1.58


$0.03

Diluted earnings per common share


$1.52


$0.01


$1.58


$0.03










 

 

DCB Financial Corp

Consolidated Average Balances (Unaudited)




Three months ended
September 30,


Nine months ended
September 30,



2015


2014


2015


2014



(Dollars in thousands)

Earning assets









Interest bearing cash


$27,563


$18,324


$26,167


$17,867

Securities


82,088


78,692


81,172


79,188

Tax-exempt securities


3,560


4,228


3,584


4,546

Loans (1)


383,323


362,313


380,824


359,896

Total earning assets


496,534


463,557


491,747


461,497










Non-earning assets


39,432


41,264


40,060


40,956

Total assets


$535,966


$504,821


$531,807


$502,453










Interest bearing liabilities









Interest bearing DDA


$80,287


$79,564


$80,583


$78,962

Money market


153,318


137,854


155,706


132,880

Savings accounts


43,628


42,440


43,425


42,890

Time deposits


73,151


78,621


74,972


82,052

Borrowings


7,759


6,723


6,304


5,637

Total interest bearing liabilities


358,143


345,202


360,990


342,421










Non-interest bearing deposits


$126,128


$109,938


$119,593


$110,305

Other non-interest bearing liabilities


4,927


3,575


4,491


4,240

Total liabilities


489,198


458,715


485,074


456,966

Shareholders' equity


46,768


46,106


46,733


45,487

Total liabilities and shareholders' equity


$535,966


$504,821


$531,807


$502,453


(1)  Includes loans held for sale in 2014

 

 

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):




September 30, 2015


June 30, 2015


December 31, 2014




Amount


Percent


Amount


Percent


Amount


Percent


Loan portfolio composition


(Dollars in thousands)


Commercial and industrial 


$99,498


26.2%


$102,754


26.9%


$106,222


27.6%


Commercial real estate


103,891


27.3%


105,615


27.7%


111,851


29.0%


Real estate and home equity


135,934


35.8%


134,090


35.1%


129,650


33.7%


Consumer and credit card


40,689


10.7%


39,403


10.3%


37,507


9.7%


Total loans


$380,012


100.0%


$381,862


100.0%


$385,230


100.0%
















Net deferred loan costs


278




302




214




Allowance for loan losses   


(4,206)




(4,164)




(4,236)




Net loans


$376,084




$378,000




$381,208






















The following table sets forth the composition of the Company's deposits at the dates indicated :















September 30, 2015


June 30, 2015


December 31, 2014




Amount


Percent


Amount


Percent


Amount


Percent


Deposit composition


(Dollars in thousands)


Non-interest bearing demand


$123,870


26.1%


$118,114


25.1%


$111,022


24.5%


Interest bearing demand


81,939


17.3%


79,954


17.0%


77,534


17.1%


Total demand


205,809


43.4%


198,068


42.1%


188,556


41.6%
















Savings


44,408


9.3%


43,722


9.3%


42,634


9.4%


Money market


151,910


32.0%


154,344


32.8%


147,667


32.6%


Time deposits


72,780


15.3%


74,391


15.8%


74,335


16.4%


Total deposits


$474,907


100.0%


$470,525


100.0%


$453,192


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:


Delinquent loans and leases


September 30, 2015


June 30, 2015


December 31, 2014



$

%(1)


$

%(1)


$

%(1)



(Dollars in thousands)

30 days past due and still accruing


$60

0.02%


$460

0.12%


$  336

0.09%

60 days past due and still accruing


129

0.03%


22

0.01%


37

0.01%

90 days past due and still accruing


0.00%


475

0.12%


480

0.12%

Non-accrual


1,338

0.35%


1,457

0.38%


1,384

0.36%

Total


$1,527

0.40%


$2,414

0.63%


$2,237

0.58%


(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


September 30, 2015


June 30, 2015


December 31, 2014



(Dollars in thousands)

Non-accruing loans:







   Residential real estate loans and home equity


$679


$766


$     334

   Commercial real estate


30


31


298

   Commercial and industrial


573


593


632

   Consumer loans and credit cards


56


67


120

Total non-accruing loans


1,338


1,457


1,384

Accruing loans delinquent 90 days or more



475


480

Total non-performing loans (excluding TDR's)


1,338


1,932


1,864








Other real estate and repossessed assets


785


807


1,111

Total non-performing assets (excluding TDR's)


$2,123


$2,739


$  2,975








Troubled debt restructurings(1)


$6,089


$  9,068


$  9,633

Total non-performing loans (including TDR's)


$7,427


$11,000


$11,497

Total non-performing assets (including TDR's)


$8,212


$11,807


$12,608








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


The following table summarizes changes in the allowance for loan 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 loan losses


Three months ended
September 30,


Nine months ended
September 30,



2015


2014


2015


2014



(Dollars in thousands)

Allowance for loan losses, beginning of period


$4,164


$4,568


$4,236


$6,725










Loans charged-off


(63)


(445)


(570)


(2,703)

Recoveries of loans previously charged-off


255


53


540


251

Net recoveries (charge-offs)


192


(392)


(30)


(2,452)

Allowance related to loans transferred to held-for-sale





(97)

Provision for loan losses


(150)




Allowance for loan losses, end of period


$4,206


$4,176


$4,206


$4,176










 

 

DCB Financial Corp

Consolidated Financial Information (Unaudited)


Key Ratios


At or for the
three months ended    

September 30,


At or for the
nine
months ended 
September 30,



2015


2014


2015


2014

Return on average assets


8.26%


0.04%


4.31%


0.05%

Return on average equity


94.9%


0.43%


49.1%


0.60%

Yield on earning assets


3.57%


3.66%


3.76%


3.71%

Cost of interest-bearing liabilities


0.32%


0.35%


0.32%


0.42%

Net interest margin (1)


3.35%


3.40%


3.41%


3.45%

Non-interest income to total income (2)


22.9%


22.6%


22.2%


22.2%

Efficiency ratio (3)


95.0%


98.7%


95.0%


98.1%










Net loans (recovered) charged-off to average loans, annualized


(0.20)%


0.43%


0.02%


0.91%

Provision for loan losses to average loans, annualized


(0.16)%


0.00%


0.0%


0.00%

Allowance for loan losses to total loans


1.12%


1.13%


1.12%


1.13%

Allowance for loan losses to non-accrual loans


314.4%


138.9%


314.4%


138.9%

Non-accrual loans to total loans


0.35%


0.81%


0.35%


0.81%

Non-performing assets to total assets

   (including performing TDR's)


1.52%


2.81%


1.52%


2.81%

Non-performing assets to total assets

  (excluding performing TDR's)


0.39%


0.84%


0.39%


0.84%



(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 and non-recurring expenses and losses) divided by the sum of net interest income and non-interest income (as adjusted)

 

 

DCB Financial Corp

Selected Quarterly Financial Data (Unaudited)



2015


2014


Third


Second


First


Fourth


Third


(Dollars in thousands, except per share data)

Interest income

$4,469


$4,454


$4,467


$4,536


$4,278

Interest expense

292


295


285


291


306

Net interest income

4,177


4,159


4,182


4,245


3,972

Provision for loan losses

(150)



150


150


Net interest income after provision for loan losses

4,327


4,159


4,032


4,094


3,972

Non-interest income

1,223


1,180


1,158


1,132


1,140

Non-interest expenses

5,150


5,195


4,951


5,059


5,062

Income before income tax benefit

400


144


239


168


50

Income tax benefit

(10,688)





Net income

$11,088


$144


$   239


$168


$50











Stock and related per share data










Basic and diluted earnings per common share

$1.52


$0.02


$0.03


$0.02


$0.01

Basic weighted average common shares outstanding

7,287,435


7,287,435


7,237,371


7.196,404


7,192,350

Diluted weighted average common shares outstanding

7,307,244


7,303,902


7,253,840


7,232,961


7,249,194

Common book value per share

$8.05


$6.51


$6.54


$6.53


$6.49











Capital Ratios:










Bank










Tier 1 leverage ratio

9.18%


8.63%


8.65%


9.00%


8.96%

Common equity tier 1 capital ratio

13.09%


12.68%


12.62%


12.40%


12.42%

Tier 1 risk based capital ratio

13.09%


12.68%


12.62%


12.40%


12.42%

Total risk based capital ratio

14.23%


13.83%


13.75%


13.56%


13.57%











Total equity to assets ratio (consolidated)

10.83%


8.80%


9.15%


9.16%


9.33%











Selected ratios:










Return on average assets

8.26%


0.19%


0.18%


0.13%


0.04%

Return on average equity

94.9%


2.17%


2.05%


1.44%


0.43%

Yield on earning assets

3.57%


3.61%


3.73%


3.86%


3.66%

Cost of interest-bearing liabilities

0.32%


0.33%


0.32%


0.33%


0.35%

Net interest margin

3.35%


3.40%


3.50%


3.62%


3.40%

Non-interest income to total income (1)

22.9%


22.2%


21.5%


20.6%


22.6%

Efficiency ratio (2)

95.0%


95.0%


92.9%


94.6%


98.7%











Asset quality ratios:










Net loans (recovered) charged-off to average loans, annualized

(0.20)%


(0.08)%


0.31%


0.10%


0.43%

Provision for loan losses to average loans, annualized

(0.16)%


0.00%


0.16%


0.16%


0.00%

Allowance for loan losses to total loans

1.12%


1.09%


1.08%


1.10%


1.13%

Allowance for loan losses to non-accrual loans

314%


286%


362%


306%


139%

Non-accrual loans to total loans

0.35%


0.38%


0.30%


0.36%


0.81%

Non-performing assets to total assets (including 

   performing TDR's)

1.52%


2.18%


2.26%


2.45%


2.81%

Non-performing assets to total assets (excluding

   performing TDR's)

0.39%


0.51%


0.42%


0.58%


0.84%


(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