Published: February 02, 2011
First Bank of Delaware Reports Fourth Quarter and Year To Date Earnings
WILMINGTON, Del., Feb. 2, 2011 /PRNewswire/ -- First Bank of Delaware ("the Company") (OTC Bulletin Board: FBOD) today reported fourth quarter 2010 earnings of $1.6 million or $0.14 per share, compared to $314,000 or $0.03 per share for the fourth quarter 2009, an improvement of $1.3 million. Earnings for the year ended December 31, 2010 were $3.4 million or $0.30 per share compared to earnings of $1.5 million or $0.13 per share for the comparable prior year period, an improvement of $1.9 million. Net Loans increased $41.2 million from $82.6 million at December 31, 2009 to $123.7 million at December 31, 2010.
Highlights include:
Net Interest Income for the fourth quarter of 2010 was $5.2 million, an increase of $2.4 million or 83% from $2.8 million for the fourth quarter of 2009. Net interest income for the year ended December 31, 2010 was $16.4 million, an increase of $7.0 million or 74% from $9.4 million for the comparable prior year period. The improvement in Net Interest Income was due primarily to an increase in Average Interest Earning Assets, primarily Commercial and Short-term Consumer Loans, and improvement in the interest rates earned on those assets and lower Cost of Funds.
Net Interest Margin for the Fourth quarter of 2010 was 10.68% an improvement of 1.07% from 9.61% for the fourth quarter of 2009. Net Interest Margin for the year ended December 31, 2010 was 9.56% compared to 8.49% for the comparable prior year period, an improvement of 1.07%.
Revenue from Electronic Payment Services, which includes Remote Check Deposits, ACH Services and Merchant Transaction processing was $1.5 million for the fourth quarter of 2010, an increase of $1.4 million from the Fourth quarter of 2009. Revenue from Electronic Payment services was $3.2 million for the year ended December 31, 2010 an increase of $2.9 million for the comparable prior year period.
Total Shareholders' Equity at December 31, 2010 was $44.4 million. The Company's Tier 1 Leverage Capital Ratio was 20.44% and the Total Risk Based Capital Ratio was 33.90%.
Total assets at December 31, 2010 were $219.1 million, representing an increase of $78.8 million or 56.1% over December 31, 2009. The increase was primarily the result of increases in Overnight Fed Funds Sold of $30.5 million and Net Loans of $41.2 million. Total Deposits at December 31, 2010 were $170.0 million, an increase of $75.3 million from $94.7 million at December 31, 2009.
Total Loans at December 31, 2010 were $129.4 million, an increase of $43.3 million or 50.4% from December 31, 2009. The $43.3 million increase in Total Loans includes an increase of $3.9 million in Short-Term Consumer Loans or 77.9% from $5.0 million at December 31, 2009 and an increase of $37.9 million of Commercial Loans or a 47.1% increase from $80.4 million at December 31, 2009. The increase resulted from several new commercial lending relationships that were added in 2010. The increase in commercial loans was spread among various types of relationships including commercial and industrial, owner occupied real estate, commercial 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.
Total deposits increased $75.3 million or 79.5% to $170.0 million at December 31, 2010 from $94.7 million at December 31, 2009. The $75.3 million increase in Deposits was primarily due to a $83.2 million increase in Core Deposits which includes demand and money market accounts. This increase was partially offset by a $10.0 million reduction in Brokered Certificates of Deposits while retail Certificates of Deposits increased $2.1 million. Our commercial customers continue to establish higher deposit balances with us and we have expanded our electronic payment offerings which have led to additional deposit growth and fee income.
At December 31, 2010, our non-performing assets were $1.5 million, a $2.1 million decrease from $3.6 million at December 31, 2009. Non-performing assets represented 0.67% of total assets at December 31, 2010 versus 2.59% at December 31, 2009. Non-performing assets as of December 31, 2010 consist of two OREO properties totaling $417,000 and one commercial relationship, totaling $198,000, that is in non-accrual status but continues to make payments. The Company also had non-accrual short-term installment loans totaling $853,000.
The Company launched its secured credit card in September and continues to look to expand the secured offering in the near future.
The Company ceased offering its internet based installment product as of December 31, 2010. These consumer loans were offered nationally via the Internet and telephone. The decision to cease offering these loans will have a materially adverse effect on earnings. Revenues from the internet installment product included Interest Income of $11.2 million and Fee Income of $3.7 million for the year ended December 31, 2010 or $14.9 million of the Company's Total Revenues of $26.1 million. Provision for Loan Losses for the internet product was $4.6 million in 2010. Provisions for this product are not expected to continue in 2011. The Company also plans to reduce certain expenses to reflect the loss of this product. The Company will continue to earn interest and fee income for this product until the loans are repaid. Because of the nine month average duration of the loans, it is expected that a majority of the income will be earned and loans repaid by September 2011. The Company will also lose certain Core Deposit balances totaling approximately $20 million as a result of the termination of this product. The Company has ceased offering its recently launched Simply Credit product. This product provided customers with cash advance funds to add onto a prepaid card or deposit into a demand deposit account. This program was small and did not have a material effect on earnings. Although we are exiting these two products, we believe that with the growth in both electronic payment services revenue and commercial loans that we can continue to remain profitable.
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 and fee income from our electronic payments business 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. In 2011 we will begin to increase marketing of our secured credit products. We look forward to offering additional consumer loan products, such as Home Equity Loans and lines of Credit and personal loans, through our retail banking channel in the near future. The addition of several new lenders led to commercial loan growth of 41.7%. The growth in our Electronics Payments business and deposits obtained from new commercial relationships led to an 83.2% increase in Core Deposits." Mr. Primus added: "Although we are exiting our profitable internet installment loan business, we expect to remain profitable as we diversify into new products and services. We continue to attract high quality customers as a result of our high capital levels, personal service and attention, 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, deposit, card product and fee income growth remain strong."
SELECTED BALANCE SHEET DATA
(Unaudited, in thousands) December 31, December 31,
2010 2009
Fed funds sold and interest
bearing cash $64,615 $33,853
Investment securities 5,614 8,079
Loans receivable 129,422 86,076
Total assets 219,153 140,360
Deposits 169,986 94,714
Shareholders' equity 44,418 41,447
SELECTED INCOME
STATEMENT DATA Quarter ended Year to Date
(Unaudited, in
thousands except
per share data) December 31, December 31,
2010 2009 2010 2009
Net interest
income $5,209 $2,841 $16,353 $9,403
Provision for
loan losses 1,500 974 5,500 4,374
Non-interest
income 3,036 2,106 8,474 9,723
Other expenses 4,286 3,473 14,086 12,461
Provision for
income taxes 843 186 1,798 793
Net income 1,616 314 3,443 1,498
Earnings per
share:
Basic $0.14 $0.03 $0.30 $0.13
Diluted $0.14 $0.03 $0.30 $0.13
Capital Ratios:
Leverage Capital 20.44% 31.97%
Total risk based
capital 33.90% 45.50%
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.
Attachment #1
First Bank of Delaware
December 31, 2010
First Bank of Delaware
Condensed Income Statement (unaudited)
(Dollar amounts in thousands
except per share data)
Twelve Months
Three Months Ended Ended
December 31, December 31,
2010 2009 2010 2009
---- ---- ---- ----
Net Interest Income $5,209 $2,841 $16,353 $9,403
Provision for Loan Losses 1,500 974 5,500 4,374
Other Income 3,036 2,106 8,474 9,723
Other Expenses 4,286 3,473 14,086 12,461
Income Taxes $843 $186 $1,798 $793
---- ---- ------ ----
Net Income $1,616 $314 $3,443 $1,498
====== ==== ====== ======
Diluted EPS $0.14 $0.03 $0.30 $0.13
----- ----- ----- -----
First Bank of Delaware
Condensed Balance Sheet (unaudited)
(Dollar amounts in thousands)
Assets December 31, December 31,
2010 2009
---- ----
Federal Funds Sold and Other Interest
Bearing Cash $64,615 $33,853
Investment Securities 5,614 8,079
Commercial and Other Loans 129,422 86,076
Allowance for Loan Losses (5,680) (3,512)
Other Assets 25,182 15,864
------ ------
Total Assets $219,153 $140,360
======== ========
Liabilities and Shareholders' Equity:
Transaction Accounts $145,845 $62,693
Time Deposit Accounts 24,141 32,021
Other Liabilities 4,749 4,199
Shareholders' Equity 44,418 41,447
------ ------
Total Liabilities and Shareholders'
Equity $219,153 $140,360
======== ========
Attachment #2
First Bank of Delaware
December 31, 2010
(Dollars in thousands )
(unaudited)
At or For the At or For the
Three Months Ended Twelve Months Ended
------------------ -------------------
December December December December
31, 31, 31, 31,
Financial Data: 2010 2009 2010 2009
---- ---- ---- ----
Return on
average assets 2.96% 0.96% 1.85% 1.23%
Return on
average equity 14.63% 3.00% 8.10% 3.68%
Share
information:
Book value per
share $3.89 $3.63 $3.89 $3.63
Shares o/s at
period end, net
of treasury
stock 11,418,901 11,418,901 11,418,901 11,418,901
Average diluted
shares o/s 11,444,000 11,424,000 11,449,000 11,419,000
Attachment #3
First Bank of Delaware
December 31, 2010
(Dollars in thousands)
(unaudited)
Credit Quality Ratios:
At
December December
31, 31,
2010 2009
---- ----
Loans accruing, but past due 90
days or more $- $240
Restructured loans $- $-
Non-accrual loans $1,051 $2,346
------ ------
Total non-performing loans 1,051 2,586
OREO 417 1,049
--- -----
Total non-performing assets $1,468 $3,635
====== ======
Allowance for loan losses $5,680 $3,512
====== ======
Non-performing loans as
a percentage of total loans 0.81% 3.00%
Nonperforming assets as
a percentage of total assets 0.67% 2.59%
Allowance for loan losses
to total loans 4.39% 4.08%
Allowance for loan losses
to total non-performing loans 540.44% 135.81%
Attachment #4
First Bank of Delaware
December 31, 2010
(Dollars in thousands )
(unaudited)
Quarter-to-Date
Average Balance Sheet
---------------------
Three months ended
December 31, 2010
-----------------
Average
Interest-Earning
Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and other
loans $115,331 $5,403 18.58%
Investment securities 4,834 70 5.81
Federal funds sold 73,325 46 0.25
------ --- ----
Total interest-earning
assets 193,490 5,519 11.32
Other assets 22,775
------
Total assets $216,265 $5,519
========
Interest-bearing
liabilities:
Interest-bearing
deposits $98,877 $310 1.25%
Borrowed funds - - -
--- --- ---
Total interest-bearing
liabilities 98,877 310 1.25
------ --- ----
Non-interest and
interest-bearing
funding 167,557 310 0.73
Other liabilities: 4,880
-----
Total liabilities 172,437
-------
Shareholders' equity 43,828
------
Total liabilities &
shareholders' equity $216,265
========
Net interest income $5,209
======
Net interest margin 10.68%
=====
Quarter-to-Date
Average Balance Sheet
---------------------
Three months ended
December 31, 2009
-----------------
Average
Interest-Earning
Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and other
loans $86,018 $2,958 13.64%
Investment securities 8,522 115 5.41
Federal funds sold 22,772 16 0.28
------ --- ----
Total interest-earning
assets 117,312 3,089 10.45
Other assets 11,795
------
Total assets $129,107 $3,089
========
Interest-bearing
liabilities:
Interest-bearing
deposits $63,282 $248 1.55%
Borrowed funds - - -
--- --- ---
Total interest-bearing
liabilities 63,282 248 1.55
------ --- ----
Non-interest and
interest-bearing
funding 84,250 248 1.17
Other liabilities: 3,351
-----
Total liabilities 87,601
------
Shareholders' equity 41,506
------
Total liabilities &
shareholders' equity $129,107
========
Net interest income $2,841
======
Net interest margin 9.61%
====
Attachment #5
First Bank of Delaware
December 31, 2010
(Dollars in thousands )
(unaudited)
Year-to-Date
Average Balance Sheet
---------------------
Twelve months ended
December 31, 2010
-----------------
Average
Interest-Earning
Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and other
loans $108,911 $17,097 15.70%
Investment securities 7,766 394 5.07
Federal funds sold 54,462 141 0.26
------ --- ----
Total interest-earning
assets 171,139 17,632 10.30
Other assets 14,526
------
Total assets $185,665 $17,632
========
Interest-bearing
liabilities:
Interest-bearing
deposits $89,069 $1,279 1.44%
Borrowed funds - - -
--- --- ---
Total interest-bearing
liabilities 89,069 1,279 1.44
------ ----- ----
Non-interest and
interest-bearing
funding 139,267 1,279 0.92
Other liabilities: 3,893
-----
Total liabilities 143,160
-------
Shareholders' equity 42,505
------
Total liabilities &
shareholders' equity $185,665
========
Net interest income $16,353
=======
Net interest margin 9.56%
====
Year-to-Date
Average Balance Sheet
---------------------
Twelve months ended
December 31, 2009
-----------------
Average
Interest-Earning
Assets: Average Yield/
Balance Interest Cost
------- -------- ----
Commercial and other
loans $76,858 $9,574 12.46%
Investment securities 15,672 673 4.30
Federal funds sold 18,242 47 0.26
------ --- ----
Total interest-earning
assets 110,772 10,294 9.29
Other assets 10,922
------
Total assets $121,694 $10,294
========
Interest-bearing
liabilities:
Interest-bearing
deposits $51,803 $889 1.72%
Borrowed funds 274 2 0.66
--- --- ----
Total interest-bearing
liabilities 52,077 891 1.71
------ --- ----
Non-interest and
interest-bearing
funding 77,603 891 1.15
Other liabilities: 3,406
-----
Total liabilities 81,009
------
Shareholders' equity 40,685
------
Total liabilities &
shareholders' equity $121,694
========
Net interest income $9,403
======
Net interest margin 8.49%
====
SOURCE First Bank of Delaware
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