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