CAMBRIDGE, Md., July 24, 2017 /PRNewswire/ -- Delmarva Bancshares, Inc. (the "Company" or "Delmarva"), parent company for 1880 Bank, today reported net income of $746 thousand or $0.13 per share for the quarter ended June 30, 2017, compared to $1.6 million or $0.27 per share for the quarter ended March 31, 2017 and net income of $4.9 million or $0.82 per share for the second quarter of 2016. First quarter 2017 and second quarter 2016 net income included the recapture of $991 thousand ($0.17 per share) and $4.1 million ($0.69 per share) in deferred tax assets (DTAs), respectively. Additionally, the Company did not incur tax expense for the entire second quarter of 2016. Excluding the DTA recapture impact and assuming a comparable effective tax rate for the entire June 2016 quarter, net income would have been approximately $605 thousand or $0.10 per share for the March 2017 quarter and $659 thousand or $0.11 per share for June 2016 quarter.
Delmarva's total assets were $324 million at June 30, 2017, compared to $326 million and $305 million at March 31, 2017 and June 30, 2016, respectively. Total loans increased by $13 million or 5.9% to $241 million from June 2016. Total deposits were $270 million at June 30, 2017, compared to $273 million at March 31, 2017 and $255 million at June 30, 2016. Non-interest bearing deposits represented 29% of total deposits at June 30, 2017. As of June 30, 2017, non-performing assets were 1.80% of total assets compared to 1.86% at March 31, 2017 and 2.57% at June 30, 2016. The remaining valuation allowance on DTAs at June 30, 2017 was $3.4 million, primarily relating to net operating loss carryforwards (NOLs) that may not be available to the Company until periods beyond five years due to certain tax code limitations.
Strong core earnings resulted in continued improvement in fully diluted tangible book value per share which increased to $6.47 at June 30, 2017 from $6.30 and $5.72 at March 31, 2017 and June 30, 2016, respectively.
Second Quarter Performance Highlights:
- Net income was $746 thousand compared to net income of $659 thousand in the second quarter of 2016, adjusted to exclude the DTA recapture and to assume tax expense for the entire quarter.
- Total loans increased by $13 million, or 5.9%, to $241 million compared to the second quarter of 2016.
- Non-performing assets were 1.80% of total assets at June 30, 2017, compared to 1.86% and 2.57% of total assets at March 31, 2017 and June 30, 2016, respectively.
- Total assets at June 30, 2017 were $324 million versus $326 million and $305 million at March 31, 2017 and June 30, 2016, respectively.
- Cost of funds at the Bank was 0.23% for the quarter ended June 30, 2017 compared to 0.14% for the quarter ended June 30, 2016.
- Net interest margin at the Bank was 4.10% and 4.16% for the quarters ended June 30, 2017 and 2016, respectively.
- Return on average assets (ROA) was 0.92% and return on equity (ROE) was 7.33% for the three months ended June 30, 2017 versus 0.86% and 8.16%, respectively, for the three months ended June 30, 2016, adjusted to exclude the DTA recapture and to assume tax expense for the entire quarter.
- The efficiency ratio improved to 65.59% for the three months ended June 30, 2017, compared to 70.08% and 69.81% for the March 2017 and June 2016 quarters, respectively.
- Fully diluted tangible book value per share was $6.47 at June 30, 2017 compared to $6.30 and $5.72 at March 31, 2017 and June 30, 2016, respectively.
- Liquidity remained strong and capital ratios exceeded all regulatory guidelines for a "well-capitalized" financial institution.
"Net income for the second quarter 2017 was strong, and reflects continued improvement in the Company's operating performance. Loan and deposit growth year over year were solid and consistent with our approach to prudent lending and relationship building. We continue to whittle away the legacy loans that make up the nonperforming assets. We believe 1880 Bank is well positioned for opportunistic growth in 2017," said Kim C. Liddell, Delmarva's Chairman and President.
Delmarva Bancshares, Inc. and Subsidiary |
|||||
Consolidated Balance Sheets |
|||||
June 30, 2017 |
|||||
June 30, 2017 |
June 30, 2016 |
March 31, 2017 |
|||
Assets |
|||||
Cash and due from banks |
$ 4,012,049 |
$ 2,227,440 |
$ 3,911,347 |
||
Interest-bearing deposits in other banks |
16,736,817 |
7,028,177 |
18,429,991 |
||
Federal funds sold |
7,000 |
5,476 |
66,666 |
||
Total cash and cash equivalents |
20,755,866 |
9,261,093 |
22,408,004 |
||
Investment securities available-for-sale, at fair value |
32,410,599 |
41,360,352 |
34,319,969 |
||
Restricted stock, at cost |
1,689,400 |
1,800,052 |
1,640,000 |
||
Total investment securities |
34,099,999 |
43,160,404 |
35,959,969 |
||
Loans receivable, gross |
240,677,930 |
227,303,901 |
241,167,855 |
||
Allowance for loan losses |
(1,616,207) |
(1,461,363) |
(1,603,537) |
||
Loans receivable, net of allowance for loan losses |
239,061,723 |
225,842,538 |
239,564,318 |
||
Bank premises and equipment, net |
5,325,078 |
5,627,198 |
5,361,044 |
||
Other real estate owned, net of valuation allowance |
289,421 |
1,145,321 |
467,037 |
||
Accrued interest receivable |
702,445 |
582,309 |
546,513 |
||
Cash surrender value of life insurance |
13,769,470 |
10,986,233 |
11,152,912 |
||
Goodwill |
1,852,120 |
1,852,120 |
1,852,120 |
||
Core Deposit Intangible |
750,505 |
1,110,164 |
833,841 |
||
Deferred tax asset |
5,733,143 |
5,019,180 |
6,125,643 |
||
Other assets |
1,316,274 |
715,896 |
1,467,143 |
||
Total Assets |
$ 323,656,044 |
$ 305,302,456 |
$ 325,738,544 |
||
Liabilities and Stockholders' Equity |
|||||
Liabilities: |
|||||
Deposits: |
|||||
Non-interest-bearing |
$ 79,561,193 |
$ 77,730,542 |
$ 81,106,667 |
||
Interest-bearing |
190,630,973 |
177,040,870 |
192,111,463 |
||
Total deposits |
270,192,166 |
254,771,412 |
273,218,130 |
||
Accrued interest payable |
150,904 |
564,934 |
77,118 |
||
Accrued benefit obligations |
4,697,361 |
4,779,468 |
4,679,537 |
||
FRB/FHLB Borrowings |
- |
- |
4,679,537 |
||
Noncumulative subordinated notes |
4,100,000 |
4,100,000 |
4,100,000 |
||
Trust preferred |
2,487,574 |
2,445,959 |
2,478,270 |
||
Other liabilities |
770,947 |
1,750,396 |
(3,863,180) |
||
Total Liabilities |
282,398,952 |
268,412,169 |
285,369,412 |
||
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 |
43,603,597 |
43,473,178 |
43,562,921 |
||
Retained earnings (deficit) |
(2,415,459) |
(6,864,121) |
(3,161,216) |
||
Accumulated other comprehensive income |
9,521 |
221,912 |
(92,006) |
||
Total Stockholders' Equity |
41,257,092 |
36,890,287 |
40,369,132 |
||
Total Liabilities and Stockholders' Equity |
$ 323,656,044 |
$ 305,302,456 |
$ 325,738,544 |
||
Delmarva Bancshares, Inc. and Subsidiary |
||||||||
Consolidated Statements of Operations |
||||||||
June 30, 2017 |
||||||||
Three Months Ended |
Year to Date |
|||||||
June 30, 2017 |
June 30, 2016 |
June 30, 2017 |
June 30, 2016 |
|||||
Interest and Dividend Income |
||||||||
Loans, including fees |
$ 2,906,481 |
$ 2,773,352 |
$ 5,790,071 |
$ 5,529,678 |
||||
Investment securities |
152,832 |
199,667 |
307,813 |
413,760 |
||||
Dividends on restricted stock |
45,414 |
37,530 |
50,887 |
41,498 |
||||
Interest on deposits in other banks |
45,595 |
8,606 |
64,595 |
23,392 |
||||
Interest on federal funds sold/due from banks |
96 |
9 |
283 |
18 |
||||
Total interest income |
3,150,418 |
3,019,164 |
6,213,649 |
6,008,346 |
||||
Interest Expense |
||||||||
Deposits |
152,884 |
88,801 |
293,073 |
179,374 |
||||
Junior subordinated debt |
40,288 |
40,922 |
81,760 |
80,211 |
||||
Senior subordinated debt |
72,547 |
72,547 |
144,297 |
145,094 |
||||
Borrowed funds |
- |
31 |
2 |
33 |
||||
Total interest expense |
265,719 |
202,301 |
519,132 |
404,712 |
||||
Net interest income |
2,884,699 |
2,816,863 |
5,694,517 |
5,603,634 |
||||
Provision for Loan Losses |
12,952 |
- |
12,952 |
- |
||||
Net interest income after provision |
||||||||
for loan losses |
2,871,747 |
2,816,863 |
5,681,565 |
5,603,634 |
||||
Noninterest Income |
||||||||
Service charges on deposit accounts |
192,170 |
164,559 |
369,286 |
327,887 |
||||
Other fees and commissions |
155,693 |
183,846 |
300,877 |
293,675 |
||||
Net gains on sale of securities |
- |
148,216 |
- |
150,033 |
||||
Income on bank owned life insurance |
116,559 |
70,929 |
166,313 |
154,978 |
||||
Other income |
22,065 |
27,793 |
44,146 |
84,244 |
||||
Total noninterest income |
486,487 |
595,343 |
880,622 |
1,010,817 |
||||
Noninterest Expense |
||||||||
Salaries and employee benefits |
1,018,755 |
992,379 |
1,985,130 |
1,988,969 |
||||
Premises and equipment |
273,725 |
371,702 |
547,824 |
698,990 |
||||
Data processing |
376,723 |
269,653 |
722,752 |
524,096 |
||||
OREO write-downs, net losses on sales and operating expenses |
(66,925) |
(11,688) |
15,563 |
47,176 |
||||
Professional fees |
204,661 |
311,664 |
381,677 |
570,879 |
||||
Director fees |
70,000 |
54,249 |
124,249 |
101,498 |
||||
Core deposit amortization |
83,335 |
100,266 |
171,057 |
206,146 |
||||
FDIC assessments |
30,000 |
65,492 |
54,514 |
133,667 |
||||
Regulatory examination assessments |
10,287 |
10,287 |
20,574 |
20,574 |
||||
Other insurance expense |
27,630 |
27,750 |
55,253 |
55,618 |
||||
Other expense |
182,823 |
190,420 |
377,902 |
373,332 |
||||
Total noninterest expense |
2,211,014 |
2,382,174 |
4,456,495 |
4,720,945 |
||||
Net Income before income taxes |
1,147,220 |
1,030,032 |
2,105,692 |
1,893,506 |
||||
Provision for Income Taxes |
401,462 |
(3,847,864) |
(235,595) |
(3,847,864) |
||||
Net Income |
$ 745,758 |
$ 4,877,896 |
$ 2,341,287 |
$ 5,741,370 |
||||
Net Income Per Common Share: Basic |
$ 0.13 |
$ 0.82 |
$ 0.39 |
$ 0.97 |
||||
Net Income Per Common Share: Diluted |
$ 0.13 |
$ 0.82 |
$ 0.39 |
$ 0.97 |
||||
Average Common Shares Outstanding: Basic |
5,943,306 |
5,931,881 |
5,936,458 |
5,931,881 |
||||
Average Common Shares Outstanding: Diluted |
5,951,589 |
5,931,881 |
5,945,382 |
5,931,881 |
||||
CONTACT: Kim C. Liddell, 443-225-4727
SOURCE Delmarva Bancshares, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article