Published: July 28, 2010
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
June December
(Unaudited, in thousands) 30, 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
Quarter
SELECTED INCOME STATEMENT DATA Quarter ended ended YTD YTD
(Unaudited, in thousands except June
per share data) June 30, June 30, June 30, 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 December June
30, 31, 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
June 30, 2010
-------------
Average
Interest-
Earning Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and
other loans $106,601 $3,595 13.53%
Investment
securities 10,059 113 4.49
Federal funds
sold 48,015 38 0.32
------ --- ----
Total interest-
earning assets 164,675 3,746 9.12
Other assets 13,266
------
Total assets $177,941 $3,746
========
Interest-
bearing
liabilities:
Interest-
bearing
deposits $89,244 $343 1.54%
Borrowed funds - 0 -
--- --- ---
Total interest-
bearing
liabilities 89,244 343 1.54
------ --- ----
Non-interest and
interest-
bearing funding 132,704 343 1.04
Other
liabilities: 3,165
-----
Total
liabilities 135,869
-------
Shareholders'
equity 42,072
------
Total
liabilities &
shareholders'
equity $177,941
========
Net interest
income $3,403
======
Net interest
margin 8.29%
====
Quarter-to-Date
Average Balance Sheet
---------------------
Three months ended
June 30, 2009
-------------
Average
Interest-
Earning Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and
other loans $72,425 $2,104 11.65%
Investment
securities 17,996 182 4.05
Federal funds
sold 15,057 8 0.22
------ --- ----
Total interest-
earning assets 105,478 2,294 8.72
Other assets 11,092
------
Total assets $116,570 $2,294
========
Interest-
bearing
liabilities:
Interest-
bearing
deposits $50,117 $233 1.86%
Borrowed funds 198 0 0.61
--- --- ----
Total interest-
bearing
liabilities 50,315 233 1.86
------ --- ----
Non-interest and
interest-
bearing funding 72,573 233 1.29
Other
liabilities: 3,804
-----
Total
liabilities 76,377
------
Shareholders'
equity 40,193
------
Total
liabilities &
shareholders'
equity $116,570
========
Net interest
income $2,061
======
Net interest
margin 7.84%
====
First Bank of Delaware
June 30, 2010
(Dollars in thousands )
(unaudited)
Year-to-Date
Average Balance Sheet
---------------------
Six months ended
June 30, 2010
-------------
Average
Interest-Earning
Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and
other loans $98,613 $6,935 14.18%
Investment
securities 10,175 248 4.87
Federal funds
sold 44,591 60 0.27
------ --- ----
Total interest-
earning assets 153,379 7,243 9.52
Other assets 13,305
------
Total assets $166,684 $7,243
========
Interest-bearing
liabilities:
Interest-bearing
deposits $82,979 $639 1.55%
Borrowed funds - - -
--- --- ---
Total interest-
bearing
liabilities 82,979 639 1.55
------ --- ----
Non-interest and
interest-bearing
funding 121,315 639 1.06
Other
liabilities: 3,499
-----
Total liabilities 124,814
-------
Shareholders'
equity 41,870
------
Total liabilities
&
shareholders'
equity $166,684
========
Net interest
income $6,604
======
Net interest
margin 8.68%
====
Year-to-Date
Average Balance Sheet
---------------------
Six months ended
June 30, 2009
-------------
Average
Interest-Earning
Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and
other loans $73,500 $4,234 11.61%
Investment
securities 20,042 399 3.98
Federal funds
sold 11,997 15 0.26
------ --- ----
Total interest-
earning assets 105,539 4,648 8.87
Other assets 10,753
------
Total assets $116,292 $4,648
========
Interest-bearing
liabilities:
Interest-bearing
deposits $42,669 $408 1.93%
Borrowed funds 553 2 0.66
--- --- ----
Total interest-
bearing
liabilities 43,222 410 1.91
------ --- ----
Non-interest and
interest-bearing
funding 72,436 410 1.14
Other
liabilities: 3,663
-----
Total liabilities 76,099
------
Shareholders'
equity 40,193
------
Total liabilities
&
shareholders'
equity $116,292
========
Net interest
income $4,238
======
Net interest
margin 8.09%
====
SOURCE First Bank of Delaware
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