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DNB Financial Corporation Reports Third Quarter 2018 Results

Company Release - 10/24/2018 8:15 AM ET

DOWNINGTOWN Pa., Oct. 24, 2018 (GLOBE NEWSWIRE) -- DNB Financial Corporation (Nasdaq: DNBF), today reported net income of $3.0 million, or $0.70 per diluted share, for the quarter ending September 30, 2018, compared with $2.4 million, or $0.56 per diluted share, for the same quarter, last year.  For the nine months ending September 30, 2018, the Company reported net income of $7.7 million, or $1.78 per diluted share, compared with $7.1 million, or $1.66 per diluted share, for the same period last year.

DNB Financial Corporation (the “Company” or “DNB”) is the parent of DNB First, National Association, one of the first nationally-chartered community banks to serve the greater Philadelphia region.

William J. Hieb, President and CEO, stated, “Our strong third quarter results demonstrate that DNB continues to execute its business plan of disciplined growth and can successfully meet the challenges presented by rising interest rates.  We believe that our continued focus on expense management along with maintaining prudent credit standards will preserve the Company’s position as one of the top-performing banks in the Greater Philadelphia region.”   

Highlights

  • Total loans increased 2.6% (not annualized) on a sequential quarter basis and 7.4% (not annualized) since December 31, 2017.

  • Asset quality remained excellent.  Net recoveries were 0.12% (annualized) of total average loans for the third quarter of 2018, and non-performing loans were only 0.71% of total loans at September 30, 2018.

  • On a sequential quarter basis, net interest income increased $83,000 to $9.2 million, primarily due to commercial loan growth.  The net interest margin was fairly stable at 3.39% for the third quarter as the aforementioned loan growth and a two basis point rise in the yield on average interest-earning assets offset an eight basis point increase in the weighted average cost of interest-bearing liabilities.

  • Wealth management fees increased to $542,000 for the third quarter of 2018, compared with $512,000 and $411,000 for the quarters ending June 30, 2018 and September 30, 2017, respectively.  Wealth management fees represented approximately 40% of total fee income for the third quarter of 2018.

  • The Company paid a quarterly cash dividend of $0.07 per share on September 19, 2018.

Income Statement Summary

Net income of $3.0 million for the third quarter of 2018, generated a return on average assets (“ROAA”) and return on average tangible equity (“ROTE”) (a non-GAAP measure) of 1.07% and 13.1%, respectively. A discussion of non-GAAP measures in this release is included below and a reconciliation of this and other non-GAAP to GAAP measures is included in the Financial Tables below.

Net interest income for the three months ending September 30, 2018 was $9.2 million, which represented an $83,000 increase from the quarter ending June 30, 2018, and a $355,000 decrease from the quarter ending September 30, 2017.  The net interest margin for third quarter of 2018 was 3.39%; and was fairly stable on a sequential quarter basis.  The year-over-year net interest margin decline of 33 basis points was primarily due to a $466,000 net reduction in purchase accounting marks and the higher cost of interest-bearing liabilities, which was partially offset by a $70.3 million increase in total average loans. For the third quarters of 2018 and 2017, the weighted average yield on total interest-earning assets was stable at 4.30%, which included purchase accounting marks. 

Total interest expense was $2.5 million for the three months ending September 30, 2018, compared with $2.2 million for the three months ending June 30, 2018, and $1.5 million for the third quarter of 2017.  The weighted average rate paid for interest-bearing liabilities was 0.98%, 0.90% and 0.61% for the quarters ending September 30, 2018, June 30, 2018, and September 30, 2017, respectively.  The rise in the weighted average rate was primarily due to an overall increase in market interest rates.

The provision for credit losses was $100,000 for the third quarter of 2018, compared with $375,000 for both of the quarters ending June 30, 2018 and September 30, 2017.  As of September 30, 2018, the allowance for credit losses was $6.6 million and represented 0.72% of total loans.  Loans acquired in connection with the purchase of East River Bank in 2016 were recorded at fair value based on an initial estimate of expected cash flows, including a reduction for estimated credit losses, and without carryover of the respective portfolio's historical allowance for credit losses. 

Total non-interest income for the third quarter of 2018 remained fairly steady at $1.4 million, compared with $1.3 million for both the second quarter of 2018 and the quarter ending September 30, 2017.  Wealth management fees increased to $542,000 for the third quarter of 2018 from $512,000 for the second quarter of 2018, and $411,000 for the third quarter of 2017.  Wealth management fees represented approximately 40% of total fee income. 

Non-interest expense was $6.8 million for the quarter ending September 30, 2018, compared with $7.5 million for the quarter ending June 30, 2018, and $7.0 million for the third quarter of 2017.  As previously disclosed, non-interest expense for the second quarter of 2018 included miscellaneous one-time charges totaling approximately $653,000.  The efficiency ratio was approximately 64% for the three months ended September 30, 2018.

The enactment of the Tax Cuts and Jobs Act in December 2017 provided significant changes including a reduction of the federal corporate tax rate to 21% from 34%, effective January 1, 2018.  The Company’s effective tax rate for the quarter ending September 30, 2018 was 17.2%, compared with 29.3% for the same quarter, last year.

Balance Sheet Summary      

As of September 30, 2018, total assets were $1.1 billion.  Since December 31, 2017, total assets increased $46.2 million, or 4.3% (not annualized).  Total loan growth of $62.4 million, or 7.4% (not annualized) was partially offset by a $12.9 million, or 7.4% (not annualized) decrease in total investment securities.  Total deposits increased $78.7 million, or 9.1% (not annualized) since December 31, 2017, mainly due to growth in NOW, time, and brokered deposits.  As of September 30, 2018, total shareholders’ equity was $108.1 million, compared with $101.9 million as of December 31, 2017.  Tangible book value per share (a non-GAAP measure) was $21.38 as of September 30, 2018, compared with $20.06 as of December 31, 2017. See Reconciliation of Non-GAAP Financial Measures on page 10.

Total loans were $908.3 million, or 80.5% of total assets, as of September 30, 2018.  As of September 30, 2018, commercial loans, a key strategic emphasis, totaled $746.8 million and represented 82.2% of total loans.  Total commercial loans increased $57.4 million, or 8.3% (not annualized) since December 31, 2017.  Of this total, commercial mortgage loans increased $39.8 million, or 8.2%, commercial business loans increased $11.3 million, or 8.7%, and commercial construction loans increased $6.3 million, or 8.4%.  Residential mortgage loans increased nearly 10% or $9.1 million since January 1, 2018.  Consumer loans, however, declined $4.1 million, or 6.6%, over the same time period. 

On a sequential quarter basis, total core deposits were relatively stable and were 73.3% of total deposits as of September 30, 2018.  As of the same date, non-interest bearing deposits were 17.9% of total deposits.  The amount of time deposits increased $39.3 million, or 34.2%, through the third quarter of 2018. The Company used these deposits to help fund loan growth due to their more favorable rates and maturities compared with other funding sources.  As of September 30, 2018, the loan-to-deposit ratio was 96.6%.

Capital ratios continue to exceed all regulatory guidelines.  As of September 30, 2018, the tier 1 leverage ratio was 9.48%, the tier 1 risk-based capital ratio was 11.93%, the common equity tier 1 risk-based capital ratio was 10.91% and the total risk based capital ratio was 13.83%.  As of the same date, the tangible common equity-to-tangible assets ratio (a non-GAAP measure) was 8.29%.  Intangible assets and goodwill totaled $15.9 million as of September 30, 2018. See Reconciliation of Non-GAAP Financial Measures on page 10.

Asset Quality Summary

Asset quality remained strong as net recoveries were 0.12% (annualized) of total average loans for the quarter ending September 30, 2018 (recoveries of $309,000, offset by charge-offs of $38,000). Total non-performing assets, including loans and other real estate property, were $11.5 million as of September 30, 2018, compared with $11.9 million as of June 30, 2018, and $12.6 million as of December 31, 2017.  The ratio of non-performing loans to total loans was 0.71% compared with 0.76% as of June 30, 2018 and 0.89% as of December 31, 2017.    

Interest Rate Risk Management

DNB's strategy has been to seek shorter duration over yield in its lending and investing activities and lengthen duration in its financing activities to minimize interest rate risk.  The Company also strives to offer products and services that develop strong relationships to retain core deposits. The Bank has an Asset Liability Management Committee that actively monitors and manages the bank's interest rate exposure using simulation models and gap analysis. The Committee's primary objective is to minimize the adverse impact of changes in interest rates on net interest income, while maximizing earnings.  Simulation model results show moderate liability sensitivity to rising rates in 100, 200, 300 and 400 basis point shock scenarios. Rate changes ramped in over 24 months also show moderate liability sensitivity.

Non-GAAP Based Financial Measures

The income statement summary and selected financial data contains non-GAAP financial measures calculated using non-GAAP amounts. These measures are tangible book value per common share, return on average tangible equity and tangible equity to tangible assets. Tangible book value per share adjusts the numerator by the amount of Goodwill and Other Intangible Assets (reduction of Shareholders' Equity). Return on average tangible equity adjusts the denominator by the amount of Goodwill and Other Intangible Assets (reduction of Shareholders’ Equity). Tangible equity to tangible assets adjusts the numerator by the amount of Goodwill and Other Intangible Assets (reduction of Shareholders’ Equity) and adjust the denominator by the amount of Goodwill and Other Intangible Assets (reduction of Total Assets). Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of non-GAAP measures provides additional clarity when assessing our financial results and use of equity. Disclosures of this type should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

General Information

DNB Financial Corporation is a bank holding company whose bank subsidiary, DNB First, National Association, is a community bank headquartered in Downingtown, Pennsylvania with 15 locations. DNB First, which was founded in 1860, provides a broad array of consumer and business banking products, and offers brokerage and insurance services through DNB Investments & Insurance, and investment management services through DNB Investment Management & Trust. DNB Financial Corporation's shares are traded on NASDAQ’s Capital Market under the symbol: DNBF. We invite our customers and shareholders to visit our website at https://www.dnbfirst.com. DNB's Investor Relations site can be found at http://investors.dnbfirst.com/.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, expectations or predictions of future financial or business performance. These forward-looking statements include statements with respect to DNB’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 (some of which are beyond DNB’s control). The words "may," "could," "should," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan" and similar expressions are intended to identify forward-looking statements.

In addition to factors previously disclosed in the reports filed by DNB with the Securities and Exchange Commission (the “SEC”) and those identified elsewhere in this document, the following factors, among others, could cause actual results to differ materially from forward looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which DNB conducts its operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the downgrade, and any future downgrades, in the credit rating of the U.S. Government and federal agencies; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; the willingness of users to substitute competitors’ products and services for DNB’s products and services; the success of DNB in gaining regulatory approval of its products and services, when required; the impact of changes in laws and regulations applicable to financial institutions (including laws concerning taxes, banking, securities and insurance); technological changes; additional acquisitions; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms; and the success of DNB at managing the risks involved in the foregoing. Further, DNB’s expectations with respect to the effects of the new tax law could be affected by future clarifications, amendments, and interpretations of such law. Annualized, pro forma, projected and estimated numbers presented herein are presented for illustrative purpose only, are not forecasts and may not reflect actual results.

DNB cautions that the foregoing list of important factors is not exclusive. Readers are also cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date of this press release, even if subsequently made available by DNB on its website or otherwise. DNB 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 DNB to reflect events or circumstances occurring after the date of this press release.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the SEC, including our most recent annual report on Form 10-K, as supplemented by our quarterly or other reports subsequently filed with the SEC.

FINANCIAL TABLES FOLLOW

            
DNB Financial Corporation
Condensed Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
            
 Three Months Ended Nine Months Ended
 Sept 30, Sept 30,
  2018   2017   2018  2017
EARNINGS:           
Interest income$11,635  $10,989  $33,837 $32,144
Interest expense 2,484   1,483   6,591  4,127
Net interest income 9,151   9,506   27,246  28,017
Provision for credit losses 100   375   850  1,285
Non-interest income 1,336   1,236   3,931  3,762
Gain from insurance proceeds 8   -   8  80
Gain on sale of investment securities -   -   -  25
Gain on sale of SBA loans 27   35   37  132
Loss on sale / write-down of OREO and ORA 11   7   151  121
Due diligence & merger expense -   -   -  77
Non-interest expense 6,762   6,983   20,892  20,621
Income before income taxes(1) 3,649   3,412   9,329  9,912
Income tax expense 629   1,001   1,647  2,774
Net income$3,020  $2,411  $7,682 $7,138
Net income per common share, diluted$0.70  $0.56  $1.78 $1.66
 
(1) Net income before income taxes includes net accretion of purchase accounting fair value adjustments of $267,000 and $744,000 for the three and nine month periods ended September, 30, 2018, respectively, compared with $731,000 and $1.8 million for the same periods last year.
      
Condensed Consolidated Statements of Financial Condition (Unaudited)     
(Dollars in thousands)     
        
  Sept 30,  Dec 31,  
  2018
  2017
      
FINANCIAL POSITION:           
Cash and cash equivalents$10,702  $10,917       
Investment securities 161,230   174,173       
Loans held for sale -   651       
Loans 908,293   845,897       
Allowance for credit losses (6,559)  (5,843)      
Net loans 901,734   840,054       
Premises and equipment, net 7,881   8,649       
Restricted Stock 5,864   7,641       
Other assets 40,704   39,830       
Total assets$1,128,115  $1,081,915       
            
Deposits$939,881  $861,203       
FHLB advances 36,952   79,013       
Repurchase agreements 4,089   12,023       
Other borrowings 22,833   12,017       
Subordinated debt 9,750   9,750       
Other liabilities 6,551   5,967       
Stockholders' equity 108,059   101,942       
Total liabilities and stockholders' equity$1,128,115  $1,081,915       
            
       


               
DNB Financial Corporation
Selected Financial Data (Unaudited)
(In thousands, except per share data)
               
 Quarterly
 2018
 2018
 2018
 2017
 2017
 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Earnings and Per Share Data              
Net income$3,020  $2,049  $2,613  $808  $2,411 
Basic earnings per common share$0.70  $0.48  $0.61  $0.19  $0.57 
Diluted earnings per common share$0.70  $0.47  $0.61  $0.19  $0.56 
Dividends per common share$0.07  $0.07  $0.07  $0.07  $0.07 
Book value per common share$25.06  $24.49  $24.15  $23.78  $23.90 
Tangible book value per common share (Non-GAAP)$21.38  $20.79  $20.44  $20.06  $20.15 
Average common shares outstanding 4,307   4,298   4,291   4,274   4,262 
Average diluted common shares outstanding 4,318   4,314   4,309   4,297   4,296 
               
Performance Ratios              
Return on average assets 1.07%  0.74%  0.97%  0.30%  0.90%
Return on average equity 11.17%  7.79%  10.25%  3.10%  9.42%
Return on average tangible equity (Non-GAAP) 13.11%  9.18%  12.12%  3.66%  11.18%
Yield on Loans and Leases 4.74%  4.70%  4.71%  4.85%  4.82%
Cost of Deposits 0.86%  0.77%  0.63%  0.52%  0.49%
Net interest margin 3.39%  3.44%  3.51%  3.74%  3.72%
Efficiency ratio 63.68%  70.39%  64.61%  64.73%  63.45%
Wtd average yield on earning assets 4.30%  4.28%  4.24%  4.35%  4.30%
               
Asset Quality Ratios              
Net charge-offs (recoveries) to average loans -0.12%  0.15%  0.04%  0.06%  0.02%
Non-performing loans/Total loans 0.71%  0.76%  0.97%  0.89%  0.87%
Non-performing assets/Total assets 1.02%  1.05%  1.22%  1.16%  1.13%
Allowance for credit loss/Total loans 0.72%  0.70%  0.71%  0.69%  0.68%
Allowance for credit loss/Non-performing loans 101.36%  91.76%  73.08%  77.36%  78.68%
               
Capital Ratios              
Total equity/Total assets 9.58%  9.29%  9.42%  9.42%  9.56%
Tangible equity/Tangible assets (Non-GAAP) 8.29%  8.00%  8.09%  8.07%  8.18%
Tier 1 leverage ratio 9.48%  9.35%  9.33%  9.19%  9.22%
Common equity tier 1 risk-based capital ratio 10.91%  10.69%  10.63%  10.71%  10.78%
Tier 1 risk based capital ratio 11.93%  11.72%  11.67%  11.80%  11.88%
Total risk based capital ratio 13.83%  13.59%  13.56%  13.73%  13.79%
               
Wealth Management Assets Under Care(1)$269,074  $257,797  $260,324  $252,823  $246,294 
               
(1) Wealth Management Assets Under Care includes assets under management, administration, supervision and brokerage.
 


                
DNB Financial Corporation 
Condensed Consolidated Statements of Income (Unaudited) 
(Dollars in thousands, except per share data) 
                
 Three Months Ended 
 Sept 30, June 30, Mar 31, Dec 31, Sept 30, 
 2018
 2018
 2018
 2017
 2017
 
EARNINGS:               
Interest income$11,635  $11,289  $10,913  $11,241  $10,989  
Interest expense 2,484   2,221   1,886   1,593   1,483  
Net interest income 9,151   9,068   9,027   9,648   9,506  
Provision for credit losses 100   375   375   375   375  
Non-interest income 1,336   1,322   1,273   1,250   1,236  
Gain from insurance proceeds 8   -   -   123   -  
Gain on sale of investment securities -   -   -   25   -  
Gain on sale of SBA loans 27   10   -   21   35  
Loss on sale / write-down of OREO and ORA 11   140   -   -   7  
Non-interest expense 6,762   7,400   6,730   7,202   6,983  
Income before income taxes 3,649   2,485   3,195   3,490   3,412  
Income tax expense 629   436   582   2,682   1,001  
Net income(1)$3,020  $2,049  $2,613  $808  $2,411  
Net income per common share, diluted$0.70  $0.47  $0.61  $0.19  $0.56  
                
(1) Fourth quarter 2017 results were impacted by a $1.8 million charge, or $0.43 per diluted share, to adjust deferred taxes due to the enactment of the Tax Cuts and Jobs Act. 
  
Condensed Consolidated Statements of Financial Condition (Unaudited) 
(Dollars in thousands) 
 Sept 30, June 30, Mar 31, Dec 31, Sept 30, 
 2018
 2018
 2018
 2017
 2017
 
FINANCIAL POSITION:               
Cash and cash equivalents$10,702  $33,452  $14,078  $10,917  $19,490  
Investment securities 161,230   165,574   171,108   174,173   175,148  
Loans held for sale -   276   646   651   350  
Loans and leases 908,293   885,320   864,345   845,897   819,753  
Allowance for credit losses (6,559)  (6,188)  (6,145)  (5,843)  (5,594) 
Net loans and leases 901,734   879,132   858,200   840,054   814,159  
Premises and equipment, net 7,881   8,150   8,366   8,649   8,898  
Goodwill 15,525   15,525   15,525   15,525   15,525  
Restricted Stock 5,864   6,950   7,363   7,641   6,371  
Other assets 25,179   24,550   24,744   24,305   25,742  
Total assets$1,128,115  $1,133,609  $1,100,030  $1,081,915  $1,065,683  
                
Demand$168,311  $175,561  $172,044  $176,815  $198,399  
NOW 213,707   216,261   207,538   199,310   195,455  
Money market 227,797   254,061   253,757   221,726   217,870  
Savings 78,996   80,044   81,635   81,050   81,030  
Core deposits 688,811   725,927   714,974   678,901   692,754  
Time deposits 154,021   114,766   115,214   140,490   136,759  
Brokered deposits 97,049   93,422   61,598   41,812   41,815  
Total deposits 939,881   934,115   891,786   861,203   871,328  
FHLB advances 36,952   62,972   67,993   79,013   51,047  
Repurchase agreements 4,089   5,609   10,717   12,023   15,383  
Subordinated debt 9,750   9,750   9,750   9,750   9,750  
Other borrowings 22,833   9,615   9,630   12,017   9,658  
Other liabilities 6,551   6,215   6,484   5,967   6,633  
Stockholders' equity 108,059   105,333   103,670   101,942   101,884  
Total liabilities and stockholders' equity$1,128,115  $1,133,609  $1,100,030  $1,081,915  $1,065,683  
                


                
DNB Financial Corporation
Condensed Consolidated Statements of Financial Condition - Quarterly Average Balances (Unaudited)
(Dollars in thousands)
                
 Sept 30,
 June 30,
 Mar 31,
 Dec 31,
 Sept 30,
 
 2018
 2018
 2018
 2017
 2017
 
FINANCIAL POSITION:               
Cash and cash equivalents$21,676  $20,528  $16,509  $23,513  $20,673  
Investment securities 163,800   168,836   172,488   173,959   176,424  
Loans held for sale 338   642   113   34   49  
Loans and leases 889,113   869,166   851,623   827,273   818,800  
Allowance for credit losses (6,567)  (6,197)  (5,958)  (5,639)  (5,388) 
Net loans and leases 882,546   862,969   845,665   821,634   813,412  
Premises and equipment, net 8,059   8,306   8,552   8,841   9,032  
Goodwill 15,525   15,525   15,525   15,525   15,525  
Restricted Stock 6,262   6,836   7,674   6,795   6,506  
Other assets 24,012   23,568   23,436   24,723   24,839  
Total assets$1,122,218  $1,107,210  $1,089,962  $1,075,024  $1,066,460  
                
Demand$174,798  $170,885  $174,022  $192,700  $188,804  
NOW 215,055   206,341   204,719   196,055   199,311  
Money market 238,679   252,825   236,165   216,853   223,448  
Savings 79,695   80,696   80,992   81,118   82,971  
Core deposits 708,227   710,747   695,898   686,726   694,534  
Time deposits 141,794   114,091   133,222   142,283   142,846  
Brokered deposits 85,690   82,957   43,739   41,814   35,474  
Total deposits 935,711   907,795   872,859   870,823   872,854  
FHLB advances 45,549   54,971   75,458   59,373   50,827  
Repurchase agreements 4,644   12,042   12,364   15,388   16,070  
Subordinated debt 9,750   9,750   9,750   9,750   9,750  
Other borrowings 13,060   10,923   10,470   9,835   9,996  
Other liabilities 6,193   6,277   5,657   6,298   5,433  
Stockholders' equity 107,311   105,452   103,404   103,557   101,530  
Total liabilities and stockholders' equity$1,122,218  $1,107,210  $1,089,962  $1,075,024  $1,066,460  
                


                
DNB Financial Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
                
Reconciliation of Tangible Book Value Per Common Share to Book Value Per Common Share
(In thousands, except share and per share data)
 Sept 30, June 30, Mar 31, Dec 31, Sept 30, 
 2018 2018 2018 2017 2017 
Stockholders' Equity$108,059 $105,333 $103,670 $101,942 $101,884 
Goodwill 15,525  15,525  15,525  15,525  15,525 
Other intangible assets 364  388  423  435  459 
Tangible common equity (Non-GAAP)$92,170 $89,420 $87,722 $85,982 $85,900 
                
Outstanding shares4,311,860 4,301,898 4,292,689 4,286,117 4,262,721 
                
Book value per common share (GAAP)$25.06 $24.49 $24.15 $23.78 $23.90 
Tangible book value per common share (Non-GAAP) 21.38  20.79  20.44  20.06  20.15 
                
                
                
Return on Average Tangible Equity
(Dollars in thousands)For the Quarter Ended
 Sept 30, June 30, Mar 31, Dec 31, Sept 30, 
 2018 2018 2018 2017 2017 
Average Stockholders' Equity$107,311 $105,452 $103,404 $103,557 $101,530 
Average goodwill 15,525  15,525  15,525  15,525  15,525 
Average other intangible assets 376  388  423  435  472 
Average tangible stockholders' equity (Non-GAAP)$91,410 $89,539 $87,456 $87,597 $85,533 
                
Net Income$3,020 $2,049 $2,613 $808 $2,411 
                
Return on average stockholders' equity (GAAP) 11.17% 7.79% 10.25% 3.10% 9.42%
Return on average tangible equity (Non-GAAP) 13.11  9.18  12.12  3.66  11.18