CAMBRIDGE, Md., Nov. 1, 2017 /PRNewswire/ -- Delmarva Bancshares, Inc. (the "Company" or "Delmarva"), parent company for 1880 Bank, today reported net income of $597 thousand or $0.10 per share for the quarter ended September 30, 2017, compared to $746 thousand or $0.13 per share for the quarter ended June 30, 2017 and net income of $1.3 million or $0.22 per share for the third quarter of 2016. The Company's net income for the nine months ended September 30, 2017 was $2.9 million or $0.49 per share, compared to $7.0 million or $1.18 per share for the September 2016 nine month period. Excluding the impact of recapturing deferred tax assets (DTAs) and assuming a comparable full year's tax effect on 2016 earnings, core net income was $597 thousand and $1.9 million, or $0.10 and $0.33 per share respectively, for the September 2017 three and nine month periods, compared to $460 thousand and $1.7 million, or $0.08 and $0.28 respectively, for the September 2016 three and nine month periods.
Delmarva's total assets were $328 million at September 30, 2017, compared to $324 million and $315 million at June 30, 2017 and September 30, 2016, respectively. Total loans increased by $5.6 million or 2.4% to $242 million from September 2016. Total deposits were $274 million at September 30, 2017, compared to $270 million at June 30, 2017 and $263 million at September 30, 2016. Non-interest bearing deposits represented 28% of total deposits at September 30, 2017. As of September 30, 2017, non-performing assets were 1.69% of total assets compared to 1.80% at June 30, 2017 and 2.44% at September 30, 2016. The remaining valuation allowance on DTAs at September 30, 2017 was $3.4 million.
Core earnings resulted in continued improvement in fully diluted tangible book value per share, which increased to $6.60 at September 30, 2017 from $6.47 and $5.96 at June 30, 2017 and September 30, 2016, respectively.
Third Quarter Performance Highlights:
- Core net income was $597 thousand or $0.10 per share for the September 2017 quarter, compared to core net income of $460 thousand or $0.08 per share in the third quarter of 2016.
- Core net income was $1.9 million or $0.33 per share for the September 2017 nine month period, compared to core net income of $1.7 million or $0.28 per share for the nine months ended September 30, 2016.
- Total loans increased by $5.6 million, or 2.4%, to $242 million compared to the third quarter of 2016.
- Non-performing assets were 1.69% of total assets at September 30, 2017, compared to 1.80% and 2.44% of total assets at June 30, 2017 and September 30, 2016, respectively.
- Total assets at September 30, 2017 were $328 million versus $324 million and $315 million at June 30, 2017 and September 30, 2016, respectively.
- Cost of funds at the Bank was 0.25% and 0.23% for the three and nine months ended September 30, 2017, respectively, compared to 0.18% and 0.15% for the September 30, 2016 three and nine month periods, respectively.
- Net interest margin at the Bank was 4.13% and 4.09% for the three and nine months ended September 30, 2017, respectively, compared to 4.27% and 4.15% for the three and nine months ended September 30, 2016, respectively.
- Core return on assets (ROA) was 0.74% and core return on equity (ROE) was 5.73% for the three months ended September 30, 2017, compared to 0.60% and 4.96%, respectively, for the three months ended September 30, 2016.
- Core ROA was 0.80% and core ROE was 6.38% for the nine months ended September 30, 2017, compared to 0.73% and 6.64%, respectively, for the nine months ended September 30, 2016.
- The efficiency ratio was 70.47% and 68.69% for the three and nine months ended September 30, 2017, respectively, compared to 72.87% and 71.87% for the September 2016 three and nine month periods, respectively.
- Fully diluted tangible book value per share was $6.60 at September 30, 2017 compared to $6.47 and $5.96 at June 30, 2017 and September 30, 2016, respectively.
- Liquidity remained strong and capital ratios exceeded all regulatory guidelines for a "well-capitalized" financial institution.
"Our approach to prudent loan growth and relationship building continues to produce solid performance results. The strength of our franchise is the core deposits and strong banking relationships that take time to cultivate. Those cultivation activities and effort of our team should bear more future business. The Company is well positioned for organic growth and acquisition opportunities," said Kim C. Liddell, Delmarva's Chairman and President.
Delmarva Bancshares, Inc. and Subsidiary |
||||||
Consolidated Balance Sheets |
||||||
September 30, 2017 |
||||||
September 30, 2017 |
September 30, 2016 |
June 30, 2017 |
||||
Assets |
||||||
Cash and due from banks |
$ 4,631,945 |
$ 2,714,456 |
$ 4,012,049 |
|||
Interest-bearing deposits in other banks |
16,633,128 |
8,423,535 |
16,736,817 |
|||
Federal funds sold |
126,629 |
7,000 |
7,000 |
|||
Total cash and cash equivalents |
21,391,702 |
11,144,991 |
20,755,866 |
|||
Investment securities available-for-sale, at fair value |
35,926,265 |
39,394,611 |
32,410,599 |
|||
Restricted stock, at cost |
1,706,600 |
1,951,952 |
1,689,400 |
|||
Total investment securities |
37,632,865 |
41,346,563 |
34,099,999 |
|||
Loans receivable, gross |
241,528,168 |
235,944,318 |
240,677,930 |
|||
Allowance for loan losses |
(1,639,922) |
(1,607,559) |
(1,616,207) |
|||
Loans receivable, net of allowance for loan losses |
239,888,246 |
234,336,759 |
239,061,723 |
|||
Bank premises and equipment, net |
5,221,651 |
5,547,194 |
5,325,078 |
|||
Other real estate owned, net of valuation allowance |
516,671 |
1,164,221 |
289,421 |
|||
Accrued interest receivable |
658,804 |
627,746 |
702,445 |
|||
Cash surrender value of life insurance |
13,834,802 |
11,052,842 |
13,769,470 |
|||
Goodwill |
1,852,120 |
1,852,120 |
1,852,120 |
|||
Core Deposit Intangible |
671,556 |
1,013,670 |
750,505 |
|||
Deferred tax asset |
5,432,586 |
4,977,300 |
5,733,143 |
|||
Other assets |
1,160,949 |
1,827,306 |
1,316,274 |
|||
Total Assets |
$ 328,261,952 |
$ 314,890,712 |
$ 323,656,044 |
|||
Liabilities and Stockholders' Equity |
||||||
Liabilities: |
||||||
Deposits: |
||||||
Non-interest-bearing |
$ 77,881,183 |
$ 79,447,979 |
$ 79,561,193 |
|||
Interest-bearing |
196,209,163 |
183,211,015 |
190,630,973 |
|||
Total deposits |
274,090,346 |
262,658,994 |
270,192,166 |
|||
Accrued interest payable |
90,795 |
678,404 |
150,904 |
|||
Accrued benefit obligations |
4,748,619 |
4,786,215 |
4,697,361 |
|||
FRB/FHLB Borrowings |
- |
- |
- |
|||
Noncumulative subordinated notes |
4,100,000 |
4,100,000 |
4,100,000 |
|||
Trust preferred |
2,495,753 |
2,455,621 |
2,487,574 |
|||
Other liabilities |
926,012 |
1,965,783 |
770,947 |
|||
Total Liabilities |
286,451,525 |
276,645,017 |
282,398,952 |
|||
Commitments and Contingent Liabilities |
- |
- |
- |
|||
Stockholders' Equity: |
||||||
Preferred stock, $.01 par value per share - |
||||||
2,059,713 shares authorized, issued and outstanding |
20,597 |
20,597 |
20,597 |
|||
Common stock, $.01 par value per share - |
||||||
10,000,000 shares authorized, 3,883,593, 3,872,168 and |
||||||
3,883,593 issued and outstanding, respectively |
38,836 |
38,721 |
38,836 |
|||
Additional paid-in capital |
43,616,099 |
43,498,431 |
43,603,597 |
|||
Retained earnings (deficit) |
(1,818,074) |
(5,583,677) |
(2,415,459) |
|||
Accumulated other comprehensive income |
(47,031) |
271,623 |
9,521 |
|||
Total Stockholders' Equity |
41,810,427 |
38,245,695 |
41,257,092 |
|||
Total Liabilities and Stockholders' Equity |
$ 328,261,952 |
$ 314,890,712 |
$ 323,656,044 |
|||
Delmarva Bancshares, Inc. and Subsidiary |
||||||||
Consolidated Statements of Operations |
||||||||
September 30, 2017 |
||||||||
Three Months Ended |
Year to Date |
|||||||
September 30, 2017 |
September 30, 2016 |
September 30, 2017 |
September 30, 2016 |
|||||
Interest and Dividend Income |
||||||||
Loans, including fees |
$ 2,938,258 |
$ 2,915,041 |
$ 8,728,329 |
$ 8,447,094 |
||||
Investment securities |
175,611 |
172,342 |
483,424 |
586,662 |
||||
Dividends on restricted stock |
7,804 |
2,121 |
58,691 |
43,059 |
||||
Interest on deposits in other banks |
38,089 |
9,282 |
102,684 |
32,673 |
||||
Interest on federal funds sold/due from banks |
314 |
27 |
597 |
45 |
||||
Total interest income |
3,160,076 |
3,098,813 |
9,373,725 |
9,109,533 |
||||
Interest Expense |
||||||||
Deposits |
164,393 |
113,004 |
457,466 |
292,378 |
||||
Junior subordinated debt |
40,691 |
41,964 |
122,451 |
122,175 |
||||
Senior subordinated debt |
73,345 |
72,813 |
217,642 |
217,907 |
||||
Borrowed funds |
- |
279 |
2 |
311 |
||||
Total interest expense |
278,429 |
228,060 |
797,561 |
632,771 |
||||
Net interest income |
2,881,647 |
2,870,753 |
8,576,164 |
8,476,762 |
||||
Provision for Loan Losses |
52,000 |
150,401 |
64,952 |
150,071 |
||||
Net interest income after provision |
||||||||
for loan losses |
2,829,647 |
2,720,352 |
8,511,212 |
8,326,691 |
||||
Noninterest Income |
||||||||
Service charges on deposit accounts |
206,385 |
170,839 |
575,671 |
498,726 |
||||
Other fees and commissions |
154,867 |
180,598 |
455,744 |
442,085 |
||||
Net gains on sale of securities |
- |
- |
- |
150,033 |
||||
Income on bank owned life insurance |
65,332 |
34,420 |
231,645 |
221,586 |
||||
Other income |
35,211 |
26,535 |
79,357 |
108,403 |
||||
Total noninterest income |
461,795 |
412,392 |
1,342,417 |
1,420,833 |
||||
Noninterest Expense |
||||||||
Salaries and employee benefits |
1,009,781 |
996,088 |
2,994,911 |
2,985,056 |
||||
Premises and equipment |
328,607 |
368,357 |
876,431 |
1,062,779 |
||||
Data processing |
396,472 |
329,437 |
1,119,224 |
854,933 |
||||
OREO write-downs, net losses on sales and operating expenses |
10,303 |
53,037 |
25,866 |
100,214 |
||||
Professional fees |
184,123 |
192,751 |
565,800 |
765,718 |
||||
Director fees |
77,876 |
54,249 |
202,125 |
155,747 |
||||
Core deposit amortization |
78,949 |
97,108 |
250,006 |
302,640 |
||||
FDIC assessments |
25,473 |
63,168 |
79,987 |
196,835 |
||||
Regulatory examination assessments |
10,287 |
10,287 |
30,861 |
30,861 |
||||
Other insurance expense |
28,140 |
28,508 |
83,393 |
84,126 |
||||
Other expense |
206,265 |
199,378 |
584,167 |
574,403 |
||||
Total noninterest expense |
2,356,276 |
2,392,368 |
6,812,771 |
7,113,312 |
||||
Net Income before income taxes |
935,166 |
740,376 |
3,040,858 |
2,634,212 |
||||
Provision for Income Taxes |
337,781 |
(539,738) |
102,186 |
(4,387,602) |
||||
Net Income |
$ 597,385 |
$ 1,280,114 |
$ 2,938,672 |
$ 7,021,814 |
||||
Net Income Per Common Share: Basic |
$ 0.10 |
$ 0.22 |
$ 0.49 |
$ 1.18 |
||||
Net Income Per Common Share: Diluted |
$ 0.10 |
$ 0.22 |
$ 0.49 |
$ 1.18 |
||||
Average Common Shares Outstanding: Basic |
5,943,306 |
5,931,881 |
5,938,057 |
5,931,881 |
||||
Average Common Shares Outstanding: Diluted |
5,953,704 |
5,931,881 |
5,948,021 |
5,931,881 |
||||
CONTACT: Kim C. Liddell, 443-225-4727
SOURCE Delmarva Bancshares, Inc.
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