First Bank of Delaware Reports Second Quarter and Year to Date Earnings

News provided by

Jul 28, 2010, 03:02 ET

WILMINGTON, Del., July 28 /PRNewswire-FirstCall/ -- First Bank of Delaware ("the Company") (OTC Bulletin Board: FBOD), today reported second quarter 2010 earnings of $459,000 or $0.04 per diluted share, compared to $237,000 or $0.02 per diluted share for the comparable prior year period. The increase in earnings reflected the growth of our commercial loan portfolio and increases in other interest-earning assets which lead to a $1.3 million increase in our net interest income between the periods. Non-interest income declined $917,000 between the periods as we reduced our involvement with third party credit card programs. Earnings per diluted share for the six month period ended June 30, 2010 were $798,000 or $0.07 per share based on average shares outstanding of 11,447,000, compared to $701,000 or $0.06 per share for the comparable prior year period based on average shares outstanding of 11,412,000. The increased earnings of $97,000 are primarily the result of increases in net interest income, which more than offset the decrease in non-interest income. At June 30, 2010, total shareholders' equity was $42,340,000, our leverage ratio was 23.66%, our total risk-based capital ratio was 35.69%, and our book value per share was $3.71.

Total assets at June 30, 2010 were $177.4 million, representing an increase of $37.0 million or 26.4% over December 31, 2009. The increase was primarily the result of increases in loans receivable of $26.3 million, fed funds sold of $8.2 million and investments of $2.5 million.

Loans receivable at June 30, 2010 totaled $112.3 million, an increase of $26.3 million or 30.1% from December 31, 2009. The increase resulted from several new commercial lending relationships that were added in the first six months of 2010. The increase in commercial loans was spread among various types of relationships including commercial and industrial, construction and commercial real estate. The Company has increased its number of loan officers and loan production capabilities in 2010. We look to continue growth in our commercial loan production over the next few quarters.

Total deposits increased $36.8 million or 38.9% to $131.5 million at June 30, 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 and fee income.

At June 30, 2010, our non-performing assets were $3.2 million, a $400K decrease from $3.6 million at December 31, 2009. Non-performing assets represented 1.79% of total assets at June 30, 2010. Non-performing assets as of June 30, 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 $355K.

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 August. These products should provide additional growth opportunities for the Company.

The Company's CEO and President, Alonzo J. Primus, commented, "Our earnings have increased from prior year on both a quarter and year to date basis. Our growth in interest income has allowed us to offset lower non-interest income from credit card products as we have reduced our third party relationships. We continue to focus on growing our commercial banking area, expanding our electronic payment offerings, growing fee income products and offering our own suite of consumer loan and card products. The addition of several new lenders lead to loan growth of 30.1%." Mr. Primus added: "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 and are diversifying the types of loans that we make. 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."

SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)	June 30,	December 31,
	2010	2009

Fed funds sold and interest bearing cash	$ 42,006	$ 33,853
Investment securities	10,584	8,079
Loans receivable	112,275	86,076
Total assets	177,440	140,360
Deposits	131,547	94,714
Shareholders' equity	42,340	41,447

SELECTED INCOME STATEMENT DATA	Quarter ended	Quarter ended	YTD	YTD
(Unaudited, in thousands except per share data)	June 30,	June 30,	June 30,	June 30,
	2010	2009	2010	2009

Net interest income	$ 3,403	$ 2,061	$ 6,604	$ 4,238
Provision for loan losses	1,100	1,550	1,925	2,275
Non-interest income	1,571	2,488	2,929	5,235
Other expenses	3,177	2,635	6,391	6,134
Provision for income taxes	238	127	419	363
Net income	459	237	798	701

Earnings per share:
Basic	$ 0.04	$ 0.02	$ 0.07	$ 0.06
Diluted	$ 0.04	$ 0.02	$ 0.07	$ 0.06

Capital Ratios:
Leverage Capital	23.66%	34.71%
Total risk based capital	35.69%	49.17%

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.

First Bank of Delaware June 30, 2010 First Bank of Delaware Condensed Income Statement (Dollar amounts in thousands except per share data)
(unaudited)	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2010	2009	2010	2009

Net Interest Income	$ 3,403	$ 2,061	$ 6,604	$ 4,238
Provision for Loan Losses	1,100	1,550	1,925	2,275
Non-interest Income	1,571	2,488	2,929	5,235
Non-interest Expenses	3,177	2,635	6,391	6,134
Provision for income taxes	$ 238	$ 127	$ 419	$ 363
Net Income	$ 459	$ 237	$ 798	$ 701

Diluted EPS	$ 0.04	$ 0.02	$ 0.07	$ 0.06

First Bank of Delaware
Condensed Balance Sheet
(Dollar amounts in thousands)
(unaudited)

Assets	June 30,	December 31,	June 30,
	2010	2009	2009

Federal Funds Sold and Other Interest Bearing Cash	$ 42,006	$ 33,853	$ 20,737
Investment Securities	10,584	8,079	17,485
Commercial and Other Loans	112,275	86,076	70,747
Allowance for Loan Losses	(4,033)	(3,512)	(3,234)
Other Assets	16,608	15,864	15,684

Total Assets	$ 177,440	$ 140,360	$ 121,419

Liabilities and Shareholders' Equity:
Transaction Accounts	$ 103,393	$ 62,693	$ 52,003
Time Deposit Accounts	28,154	32,021	25,356
Other Borrowings	-	-	-
Other Liabilities	3,553	4,199	3,462
Shareholders' Equity	42,340	41,447	40,598
Total Liabilities and Shareholders' Equity	$ 177,440	$ 140,360	$ 121,419

First Bank of Delaware June 30, 2010 (Dollars in thousands ) (unaudited)
	At or For the				At or For the
	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
Financial Data:	2010		2009		2010		2009

Return on average assets	1.03	%	0.82	%	0.97	%	1.22	%

Return on average equity	4.38	%	2.37	%	3.84	%	3.52	%

Share information:

Book value per share	$3.71		$3.56		$3.71		$3.56

Actual shares outstanding at period end	11,418,901		11,418,901		11,418,901		11,418,901

Average diluted shares outstanding	11,465,000		11,416,000		11,447,000		11,412,000

First Bank of Delaware June 30, 2010 (Dollars in thousands) (unaudited) Credit Quality Ratios:



	June 30,	December 31,	June 30,
	2010	2009	2009

Loans accruing, but past due 90 days or more	$ -	$ 240	$ -

Non-accrual loans	$ 2,158	$ 2,346	$ 689

Restructured loans	-	-	-

Total non-performing loans	2,158	2,586	689

Other real estate owned	1,024	1,049	1,127

Total non-performing assets	$ 3,182	$ 3,635	$ 1,816

Allowance for loan losses	$ 4,033	$ 3,512	$ 3,234

Non-performing loans as
a percentage of total loans	1.92%	3.00%	0.97%

Nonperforming assets as
a percentage of total assets	1.79%	2.59%	1.50%

Allowance for loan losses
to total loans	3.59%	4.08%	4.57%

Allowance for loan losses
to total non-performing loans	186.89%	135.81%	469.38%

First Bank of Delaware June 30, 2010 (Dollars in thousands ) (unaudited)
		Quarter-to-Date
		Average Balance Sheet

	Three months ended				Three months ended
	June 30, 2010				June 30, 2009

			Average				Average
Interest-Earning Assets:	Average		Yield/		Average		Yield/
	Balance	Interest	Cost		Balance	Interest	Cost


Commercial and other loans	$ 106,601	$ 3,595	13.53	%	$ 72,425	$ 2,104	11.65	%

Investment securities	10,059	113	4.49		17,996	182	4.05

Federal funds sold	48,015	38	0.32		15,057	8	0.22

Total interest-earning assets	164,675	3,746	9.12		105,478	2,294	8.72

Other assets	13,266				11,092

Total assets	$ 177,941	$ 3,746			$ 116,570	$ 2,294

Interest-bearing liabilities:


Interest-bearing deposits	$ 89,244	$ 343	1.54	%	$ 50,117	$ 233	1.86	%

Borrowed funds	-	0	-		198	0	0.61

Total interest-bearing
liabilities	89,244	343	1.54		50,315	233	1.86

Non-interest and
interest-bearing funding	132,704	343	1.04		72,573	233	1.29


Other liabilities:	3,165				3,804

Total liabilities	135,869				76,377

Shareholders' equity	42,072				40,193

Total liabilities &
shareholders' equity	$ 177,941				$ 116,570

Net interest income		$ 3,403				$ 2,061

Net interest margin			8.29	%			7.84	%

First Bank of Delaware June 30, 2010 (Dollars in thousands ) (unaudited)
		Year-to-Date
		Average Balance Sheet

	Six months ended				Six months ended
	June 30, 2010				June 30, 2009

			Average				Average
Interest-Earning Assets:	Average		Yield/		Average		Yield/
	Balance	Interest	Cost		Balance	Interest	Cost


Commercial and other loans	$ 98,613	$ 6,935	14.18	%	$ 73,500	$ 4,234	11.61	%

Investment securities	10,175	248	4.87		20,042	399	3.98

Federal funds sold	44,591	60	0.27		11,997	15	0.26

Total interest-earning assets	153,379	7,243	9.52		105,539	4,648	8.87

Other assets	13,305				10,753

Total assets	$ 166,684	$ 7,243			$ 116,292	$ 4,648

Interest-bearing liabilities:


Interest-bearing deposits	$ 82,979	$ 639	1.55	%	$ 42,669	$ 408	1.93	%

Borrowed funds	-	-	-		553	2	0.66

Total interest-bearing
liabilities	82,979	639	1.55		43,222	410	1.91

Non-interest and
interest-bearing funding	121,315	639	1.06		72,436	410	1.14


Other liabilities:	3,499				3,663

Total liabilities	124,814				76,099

Shareholders' equity	41,870				40,193

Total liabilities &
shareholders' equity	$ 166,684				$ 116,292

Net interest income		$ 6,604				$ 4,238

Net interest margin			8.68	%			8.09	%