First Bank of Delaware Reports First Quarter Earnings

WILMINGTON, Del., April 22 /PRNewswire-FirstCall/ -- First Bank of Delaware ("the Company") (OTC Bulletin Board: FBOD), today reported first quarter 2010 earnings of $339,000 or $0.03 per diluted share, compared to $464,000 or $0.04 per diluted share for the comparable prior year period. The reduction in earnings reflected lower consumer loan and credit card volumes due to the Company's reduced utilization of third parties, which lead to a $1.4 million reduction in non-interest income between the periods. The growth of our commercial loan portfolio and increases in other interest-earning assets lead to a $1.0 million increase in our net interest income between the periods.  At March 31, 2010, total shareholders' equity was $41,827,000, our leverage ratio was 26.8%, our total risk-based capital ratio was 39.15%, and our book value per share was $3.66.

Total assets at March 31, 2010 were $170.8 million, representing an increase of $30.5 million or 21.7% over December 31, 2009. The increase was primarily the result of increases in loans receivable of $15.8 million, fed funds sold of $11.5 million and investments of $3.3 million.

Loans receivable at March 31, 2010 totaled $101.9 million, an increase of $15.8 million or 18.3% from December 31, 2009. The increase resulted from several new commercial lending relationships that were added in the first quarter. The Company has increased its number of loan officers over the past four months. We look to continue growth in our commercial loan production over the next few quarters.

Total deposits increased $31.3 million or 33.0% to $126.0 million at March 31, 2010 from $94.7 million at December 31, 2009. Our commercial customers have established higher deposit balances with us and we have expanded our electronic payment offerings which have lead to additional deposit growth.

At March 31, 2010, our non-performing assets were $3.3 million, a $300K decrease from $3.6 million at December 31, 2009. Non-performing assets represented 1.95% of total assets at March 31, 2010. Non-performing assets as of March 31, 2010 consist of two OREO properties totaling $1.0 million, two commercial relationships that are in non-accrual status but continue to make payments, totaling $1.8 million, and short-term installment loans totaling $479K.

The Company recently launched its own suite of products, including the Simply Credit line of credit and Simply Debit prepaid card products. The Company will launch its secured credit card in June. These products should provide growth opportunities for the Company.

The Company's CEO and President, Alonzo J. Primus, commented, "Although earnings have declined from the same quarter last year reflecting the termination of third party relationships, we continue to grow our commercial loan portfolio, increase our deposit base and grow our direct business lines. We have accomplished this change while still remaining profitable and maintaining excellent liquidity and high capital levels." Mr. Primus added: "We have shown growth in a number of key areas this quarter. The addition of several new lenders in the last four months has contributed to 18% commercial loan growth this quarter. We continue to attract high quality customers as a result of our high capital levels, strong loan portfolio and high amounts of liquidity. We are maintaining pricing and underwriting discipline in growing our loan portfolio. This has allowed us to expand our commercial customer base in the Delaware market and in the contiguous counties of Pennsylvania. We believe our opportunities for future loan growth remain strong." Mr. Primus continued, "We have also grown our deposit base by obtaining more deposits from commercial customers and by growing our electronic payment products which generate core deposits and fee income for the Company".

First Bank of Delaware is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC).

The Company provides diversified financial products through two locations in New Castle County, and additionally offers a variety of loan and card products nationally.

The Company may from time to time make written or oral "forward-looking statements", including statements contained in this release and in the Company's filings with the FDIC. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

SOURCE First Bank of Delaware