Press Release

DNB Financial Corporation Reports Second Quarter 2019 Results

Company Release - 7/23/2019 5:08 PM ET

DOWNINGTOWN, Pa., July 23, 2019 (GLOBE NEWSWIRE) -- DNB Financial Corporation (NASDAQ: DNBF), today reported net income of $2.6 million, or $0.60 per diluted share, for the quarter ended June 30, 2019, compared with $2.0 million, or $0.47 per diluted share, for the same quarter, last year. For the six months ended June 30, 2019, net income was $5.2 million, or $1.19 per diluted share, compared with $4.7 million, or $1.08 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.

Results for the three and six months ended June 30, 2019 included $519,000 of transaction expenses for the recently announced merger with S&T Bancorp, Inc. (“S&T”) (NASDAQ: STBA).  On June 5, 2019, DNB entered into a definitive agreement whereby S&T will acquire DNB in an all-stock transaction.  The transaction is expected to close in the fourth quarter of 2019, after satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of DNB.

William J. Hieb, President and CEO stated, “We are pleased with our continued strong and consistent financial performance, especially in this challenging interest rate environment.”  Mr. Hieb added, “Our primary goal of delivering shareholder value remains steadfast as demonstrated by our recent merger announcement. We look forward to our affiliation with S&T and the strength of our combined franchise.”

Highlights

  • Asset quality remained strong as net charge-offs were only 0.06% (annualized) of total average loans for the second quarter of 2019.  Non-performing loans were 0.66% of total loans at June 30, 2019.

  • Despite the flat yield curve that challenges all banks, the net interest margin increased to 3.45% for the quarter ending June 30, 2019, from 3.43% for the quarter ending March 31, 2019. 

  • The strategy of growing relationship-based deposits helped produce an $11.6 million, or 7.0% (not annualized) increase in non-interest bearing deposits over the past three months.

  • Non-interest bearing deposits represented 18.3% of total deposits as of June 30, 2019.  As of the same date, core deposits were 72.7% of total deposits.

  • Wealth management assets under care were $290.2 million as of June 30, 2019, compared with $253.3 million as of December 31, 2018.  Wealth management fees represented nearly 39% of total fee income for the second quarter of 2019.

  • The Company paid a quarterly cash dividend of $0.07 per share on June 18, 2019.

Income Statement Summary

Net income of $2.6 million for the second quarter of 2019 generated a return on average assets (“ROAA”) and return on average tangible equity (“ROTE”) (a non-GAAP measure) of 0.90% and 10.2%, respectively.  A discussion of non-GAAP measures in this release is included below and a reconciliation of this and other GAAP to non-GAAP measures is included on page 10.

Net interest income for the three months ending June 30, 2019 was $9.5 million, which represented a $117,000 increase from the quarter ending March 31, 2019, and a $447,000 increase from the quarter ending June 30, 2018.  The net interest margin for the second quarter of 2019 was 3.45%, which represented a two basis point increase on a sequential quarter basis.  The net interest margin was stable on a year-over-year basis as the 25 basis point increase in the weighted average yield on interest-earning assets was offset by the higher cost of interest-bearing liabilities and a $57,000 net reduction in purchase accounting marks.  For the second quarters of 2019 and 2018, the weighted average yields on total interest-earning assets were 4.53% and 4.28%, respectively, which included purchase accounting marks. 

Total interest expense was $3.0 million for both the three months ending June 30, 2019 and March 31, 2019, compared with $2.2 million for the three months ending June 30, 2018.  The weighted average rate paid for interest-bearing liabilities was 1.17%, 1.16%, and 0.90% for the quarters ending June 30, 2019, March 31, 2019, and June 30, 2018, 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 second quarter of 2019, compared with $200,000 for the first quarter of 2019, and $375,000 for the quarter ending June 30, 2018.  As of June 30, 2019, the allowance for credit losses was $6.7 million and represented 0.72% of total loans. 

Total non-interest income for the second quarter of 2019 remained fairly stable at $1.3 million, compared with both the first quarter of 2019, and the quarter ending June 30, 2018.  Wealth management fees were $529,000 for the second quarter of 2019, compared with $445,000 for the first quarter of 2019, and $512,000 for the second quarter of 2018.  Wealth management fees represented nearly 39% of total fee income for the most recent quarter. 

Non-interest expense was approximately $7.5 million for the quarter ending June 30, 2019, compared with $7.3 million for the quarter ending March 31, 2019, and $7.5 million for the quarter ending June 30, 2018.  Non-interest expense for the most recent quarter included $519,000 of transaction expenses related to the aforementioned merger with S&T.  The efficiency ratio was approximately 68% for the three months ended June 30, 2019.

Income tax expense was $660,000 for the three months ending June 30, 2019 compared with $607,000 for the three months ending March 31, 2019, and $436,000 for the quarter ending June 30, 2018.  The effective tax rate for the most recent quarter was 20.3%, compared with 17.5%, for the same quarter, last year. The effective tax rate increased due to certain transaction costs, which are non-deductible for federal tax purposes.

Balance Sheet Summary

As of June 30, 2019, total assets were $1.2 billion.  Since December 31, 2018, total average loans increased $14.2 million, or 1.5%, which was partially offset by a $10.8 million, or 5.7% decrease in total average investment securities and other interest-earning assets.  Total average deposits increased $5.5 million, or less than one percent since December 31, 2018.  As of June 30, 2019, total shareholders’ equity was $118.2 million, compared with $111.8 million as of December 31, 2018.  Tangible book value per share (a non-GAAP measure) was $23.63 as of June 30, 2019, compared with $22.21 as of December 31, 2018.  See Reconciliation of Non-GAAP Financial Measures on page 10.

As of June 30, 2019, total loans were $930.5 million, or 80.6% of total assets.  At the same date, commercial loans totaled $777.4 million and represented 83.5% of total loans.  Total loan growth was impacted by a relatively high level of payoffs due to property sales and the completion of several construction projects.  The Company views commercial lending as the highest and best use of its capital as these loans generally have higher yields and shorter durations. Over the past six months, commercial business loans grew $13.0 million or 7.8%, and commercial construction loans increased $757,000 or 1.0%.  That growth, however, was offset by a $14.7 million, or 2.7%, decrease in commercial mortgage loans.  Consumer loans also declined in the first six months of 2019.  Loan originations have been prudent and conservative underwriting standards have been maintained.

Total core deposits have been fairly stable since December 31, 2018, and were 72.7% of total deposits as of June 30, 2019.  Non-interest bearing deposits increased $13.7 million or 8.3% over the past six months, and represented 18.3% of total deposits as of June 30, 2019.  The $20.8 million, or 19.1%, decrease in brokered deposits was due in large part to our increased emphasis on establishing and maintaining deposit relationship accounts, rather than transactional accounts.  As of June 30, 2019, the loan-to-deposit ratio was 95.4%. 

Capital ratios continue to exceed all regulatory guidelines.  As of June 30, 2019, the tier 1 leverage ratio was 9.89%, the tier 1 risk-based capital ratio was 12.31%, the common equity tier 1 risk-based capital ratio was 11.33%, and the total risk based capital ratio was 14.15%.  As of the same date, the tangible common equity-to-tangible assets ratio (a non-GAAP measure) was 8.99%.  Intangible assets and goodwill totaled $15.9 million as of June 30, 2019. See Reconciliation of Non-GAAP Financial Measures on page 10.

Asset Quality Summary

Asset quality remained strong as net charge-offs were 0.06% (annualized) of total average loans for the quarter ending June 30, 2019.  Total non-performing assets, including loans and other real estate property, were $9.0 million as of June 30, 2019, compared with $10.8 million as of December 31, 2018, and $11.9 million as of June 30, 2018.  The ratio of non-performing loans to total loans was 0.66% as of June 30, 2019, versus 0.62% as of December 31, 2018.

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 risk in both a declining and rising rate environment in the 100, 200, 300 and 400 basis point shock scenarios. Rate changes ramped in over 24 months also show moderate risk.

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 common 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 14 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 and there can be no assurances that: the proposed merger with S&T will close when expected or the expected returns and other benefits of the proposed merger to shareholders will be achieved: 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; that expected benefits of the merger with S&T may not materialize in the time frames expected or at all, or may be more costly to achieve; that the merger transaction may not be timely completed, if at all; that prior to completion of the merger transaction or thereafter, the parties’ respective businesses may not perform as expected due to transaction-related uncertainties or other factors; that the parties are unable to implement successful integration strategies; that the required regulatory approvals, shareholder approvals, or other closing conditions are not satisfied in a timely manner, or at all; reputational risks and the reaction of the parties’ customers to the merger transaction; diversion of management time to merger-related issues; 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 Six Months Ended
 June 30, June 30,
  2019   2018   2019  2018
EARNINGS:           
Interest income$12,519  $11,289  $24,879 $22,202
Interest expense 3,004   2,221   5,966  4,107
Net interest income 9,515   9,068   18,913  18,095
Provision for credit losses 100   375   300  750
Non-interest income 1,343   1,322   2,614  2,595
Gain on sale of investment securities 1   -   4  -
Gain on sale of SBA loans -   10   -  10
Loss on sale / write-down of OREO and ORA 37   140   150  140
Transaction costs 519   -   519  -
Non-interest expense 6,956   7,400   14,121  14,130
Income before income taxes(1) 3,247   2,485   6,441  5,680
Income tax expense 660   436   1,267  1,018
Net income$2,587  $2,049  $5,174 $4,662
Net income per common share, diluted$0.60  $0.47  $1.19 $1.08
            
(1) Net income before taxes includes net accretion of purchase accounting fair value adjustments of $161,000 and $347,000 for the three and six month periods ended June 30, 2019, respectively, compared with $216,000 and $477,000 for the same periods last year.
      
Condensed Consolidated Statements of Financial Condition (Unaudited)     
(Dollars in thousands)     
        
  June 30,   December 31,   
  2019   2018       
FINANCIAL POSITION:           
Cash and cash equivalents$46,398  $17,321       
Investment securities 129,880   158,669       
Loans held for sale 501   419       
Loans 930,521   934,971       
Allowance for credit losses (6,672)  (6,675)      
Net loans 923,849   928,296       
Premises and equipment, net 7,231   7,636       
Restricted stock 5,734   5,616       
Other assets 40,816   40,278       
Total assets$1,154,409  $1,158,235       
            
Deposits$975,863  $984,566       
FHLB advances 31,203   32,935       
Other borrowings 9,551   12,584       
Subordinated debt 9,750   9,750       
Other liabilities 9,886   6,554       
Stockholders' equity 118,156   111,846       
Total liabilities and stockholders' equity$1,154,409  $1,158,235       


DNB Financial Corporation
Selected Financial Data (Unaudited)
(In thousands, except per share data)
               
 Quarterly
 2019  2019  2018  2018  2018 
 2nd Qtr  1st Qtr
  4th Qtr
  3rd Qtr
  2nd Qtr
 
Earnings and Per Share Data              
Net income$2,587  $2,587  $3,002  $3,020  $2,049 
Basic earnings per common share$0.60  $0.60  $0.70  $0.70  $0.48 
Diluted earnings per common share$0.60  $0.60  $0.69  $0.70  $0.47 
Dividends per common share$0.07  $0.07  $0.07  $0.07  $0.07 
Book value per common share$27.28  $26.57  $25.88  $25.06  $24.49 
Tangible book value per common share (Non-GAAP)$23.63  $22.91  $22.21  $21.38  $20.79 
Average common shares outstanding 4,331   4,327   4,317   4,307   4,298 
Average diluted common shares outstanding 4,336   4,330   4,320   4,318   4,314 
               
Performance Ratios              
Return on average assets 0.90%  0.91%  1.03%  1.07%  0.74%
Return on average equity 8.86%  9.22%  10.80%  11.17%  7.79%
Return on average tangible equity (Non-GAAP) 10.24%  10.71%  12.62%  13.11%  9.18%
Yield on Loans and Leases 4.89%  4.90%  4.85%  4.74%  4.70%
Cost of Deposits 1.07%  1.04%  0.97%  0.86%  0.77%
Net interest margin 3.45%  3.43%  3.45%  3.39%  3.44%
Efficiency ratio 68.31%  66.50%  62.45%  63.68%  70.39%
Wtd average yield on earning assets 4.53%  4.51%  4.44%  4.30%  4.28%
               
Asset Quality Ratios              
Net charge-offs (recoveries) to average loans 0.06%  0.07%  0.10%  -0.12%  0.15%
Non-performing loans/Total loans 0.66%  0.49%  0.62%  0.71%  0.76%
Non-performing assets/Total assets 0.78%  0.69%  0.94%  1.02%  1.05%
Allowance for credit loss/Total loans 0.72%  0.72%  0.71%  0.72%  0.70%
Allowance for credit loss/Non-performing loans 108.88%  146.24%  115.50%  101.36%  91.76%
               
Capital Ratios              
Total equity/Total assets 10.24%  9.86%  9.66%  9.58%  9.29%
Tangible equity/Tangible assets (Non-GAAP) 8.99%  8.61%  8.40%  8.29%  8.00%
Tier 1 leverage ratio 9.89%  9.65%  9.48%  9.48%  9.35%
Common equity tier 1 risk-based capital ratio 11.33%  11.00%  10.76%  10.91%  10.69%
Tier 1 risk based capital ratio 12.31%  11.97%  11.74%  11.93%  11.72%
Total risk based capital ratio 14.15%  13.80%  13.57%  13.83%  13.59%
               
Wealth Management Assets Under Care(1)$290,230  $273,980  $253,323  $269,074  $257,797 
               
(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 
 June 30,
  Mar 31,
  Dec 31,
  Sept 30,
  June 30,
  
 2019  2019  2018  2018  2018  
EARNINGS:               
Interest income$12,519  $12,360  $12,338  $11,635  $11,289  
Interest expense 3,004   2,962   2,780   2,484   2,221  
Net interest income 9,515   9,398   9,558   9,151   9,068  
Provision for credit losses 100   200   350   100   375  
Non-interest income 1,343   1,271   1,268   1,336   1,322  
Gain from insurance proceeds -   -   -   8   -  
Gain on sale of investment securities 1   3   -   -   -  
Gain on sale of SBA loans -   -   1   27   10  
Loss on sale / write-down of OREO and ORA 37   113   20   11   140  
Transaction costs 519   -   -   -   -  
Non-interest expense 6,956   7,165   6,812   6,762   7,400  
Income before income taxes 3,247   3,194   3,645   3,649   2,485  
Income tax expense 660   607   643   629   436  
Net income$2,587  $2,587  $3,002  $3,020  $2,049  
Net income per common share, diluted$0.60  $0.60  $0.69  $0.70  $0.47  
                
  
Condensed Consolidated Statements of Financial Condition (Unaudited) 
(Dollars in thousands) 
 June 30,
  Mar 31,
  Dec 31,
  Sept 30,
  June 30,
  
 2019  2019  2018  2018  2018  
FINANCIAL POSITION:               
Cash and cash equivalents$46,398  $34,893  $17,321  $10,702  $33,452  
Investment securities 129,880   148,122   158,669   161,230   165,574  
Loans held for sale 501   449   419   -   276  
Loans and leases 930,521   933,697   934,971   908,293   885,320  
Allowance for credit losses (6,672)  (6,719)  (6,675)  (6,559)  (6,188) 
Net loans and leases 923,849   926,978   928,296   901,734   879,132  
Premises and equipment, net 7,231   7,360   7,636   7,881   8,150  
Right of use asset 3,791   3,976   -   -   -  
Goodwill 15,525   15,525   15,525   15,525   15,525  
Restricted stock 5,734   6,389   5,616   5,864   6,950  
Other assets 21,500   23,002   24,753   25,179   24,550  
Total assets$1,154,409  $1,166,694  $1,158,235  $1,128,115  $1,133,609  
                
Demand$178,454  $166,806  $164,746  $168,311  $175,561  
NOW 214,806   233,077   236,071   213,707   216,261  
Money market 236,707   231,524   235,023   227,797   254,061  
Savings 79,489   78,748   77,979   78,996   80,044  
Core deposits 709,456   710,155   713,819   688,811   725,927  
Time deposits 178,530   162,939   162,096   154,021   114,766  
Brokered deposits 87,877   107,163   108,651   97,049   93,422  
Total deposits 975,863   980,257   984,566   939,881   934,115  
FHLB advances 31,203   41,918   32,935   36,952   62,972  
Repurchase agreements -   -   -   4,089   5,609  
Subordinated debt 9,750   9,750   9,750   9,750   9,750  
Other borrowings 9,551   9,568   12,584   22,833   9,615  
Other liabilities 5,712   5,857   6,554   6,551   6,215  
Operating lease liability 4,174   4,358   -   -   -  
Stockholders' equity 118,156   114,986   111,846   108,059   105,333  
Total liabilities and stockholders' equity$1,154,409  $1,166,694  $1,158,235  $1,128,115  $1,133,609  


DNB Financial Corporation
Condensed Consolidated Statements of Financial Condition - Quarterly Average Balances (Unaudited)
(Dollars in thousands)
                
  June 30,   Mar 31,   Dec 31,   Sept 30,   June 30,  
  2019   2019   2018   2018   2018  
FINANCIAL POSITION:               
Cash and cash equivalents$33,562  $18,390  $25,269  $21,676  $20,528  
Investment securities 142,323   157,364   159,717   163,800   168,836  
Loans held for sale 393   289   320   338   642  
Loans and leases 934,156   935,169   919,985   889,113   869,166  
Allowance for credit losses (6,742)  (6,785)  (6,550)  (6,567)  (6,197) 
Net loans and leases 927,414   928,384   913,435   882,546   862,969  
Premises and equipment, net 7,306   7,540   7,789   8,059   8,306  
Right of use asset 3,908   1,390   -   -   -  
Goodwill 15,525   15,525   15,525   15,525   15,525  
Restricted Stock 5,818   6,138   5,759   6,262   6,836  
Other assets 20,907   23,695   23,816   24,012   23,568  
Total assets$1,157,156  $1,158,715  $1,151,630  $1,122,218  $1,107,210  
                
Demand$168,818  $160,852  $168,495  $174,798  $170,885  
NOW 226,823   228,907   222,638   215,055   206,341  
Money market 233,614   233,101   241,777   238,679   252,825  
Savings 78,689   78,713   78,069   79,695   80,696  
Core deposits 707,944   701,573   710,979   708,227   710,747  
Time deposits 168,098   162,715   157,944   141,794   114,091  
Brokered deposits 102,573   107,639   104,161   85,690   82,957  
Total deposits 978,615   971,927   973,084   935,711   907,795  
FHLB advances 32,965   45,493   34,834   45,549   54,971  
Repurchase agreements -   -   1,168   4,644   12,042  
Subordinated debt 9,750   9,750   9,750   9,750   9,750  
Other borrowings 9,581   11,158   15,752   13,060   10,923  
Other liabilities 4,777   5,051   6,780   6,193   6,277  
Operating lease liability 4,291   1,522   -   -   -  
Stockholders' equity 117,177   113,814   110,262   107,311   105,452  
Total liabilities and stockholders' equity$1,157,156  $1,158,715  $1,151,630  $1,122,218  $1,107,210  


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)
 June 30, Mar 31, Dec 31, Sept 30, June 30, 
 2019 2019 2018 2018 2018 
Stockholders' Equity$118,156 $114,986 $111,846 $108,059 $105,333 
Goodwill 15,525  15,525  15,525  15,525  15,525 
Other intangible assets 302  322  343  364  388 
Tangible common equity (Non-GAAP)$102,329 $99,139 $95,978 $92,170 $89,420 
                
Outstanding shares4,331,121 4,327,415 4,321,745 4,311,860 4,301,898 
                
Book value per common share (GAAP)$27.28 $26.57 $25.88 $25.06 $24.49 
Tangible book value per common share (Non-GAAP) 23.63  22.91  22.21  21.38  20.79 
                
                
                
Return on Average Tangible Equity
(Dollars in thousands)For the Quarter Ended
 June 30, Mar 31, Dec 31, Sept 30, June 30, 
 2019 2019 2018 2018 2018 
Average Stockholders' Equity$117,177 $113,814 $110,262 $107,311 $105,452 
Average goodwill 15,525  15,525  15,525  15,525  15,525 
Average other intangible assets 312  333  354  376  388 
Average tangible stockholders' equity (Non-GAAP)$101,340 $97,956 $94,383 $91,410 $89,539 
                
Net Income$2,587 $2,587 $3,002 $3,020 $2,049 
                
Return on average stockholders' equity (GAAP) 8.86% 9.22% 10.80% 11.17% 7.79%
Return on average tangible equity (Non-GAAP) 10.24  10.71  12.62  13.11  9.18 
                
                
                
Tangible Equity/Tangible Assets
(Dollars in thousands)
 June 30, Mar 31, Dec 31, Sept 30, June 30, 
 2019 2019 2018 2018 2018 
Stockholders' Equity$118,156 $114,986 $111,846 $108,059 $105,333 
Goodwill 15,525  15,525  15,525  15,525  15,525 
Other intangible assets 302  322  343  364  388 
Tangible common equity (Non-GAAP)$102,329 $99,139 $95,978 $92,170 $89,420 
                
Assets1,154,409 1,166,694 1,158,235 1,128,115 1,133,609 
Goodwill 15,525  15,525  15,525  15,525  15,525 
Other intangible assets 302  322  343  364  388 
Tangible assets (Non-GAAP)1,138,582 1,150,847 1,142,367 1,112,226 1,117,696 
                
Total equity/Total assets (GAAP) 10.24% 9.86% 9.66% 9.58% 9.29%
Tangible common equity/Tangible assets (Non-GAAP) 8.99  8.61  8.40  8.29  8.00 


For further information, please contact:
Gerald F. Sopp CFO/Executive Vice-President
484.359.3138       
gsopp@dnbfirst.com

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Source: DNB Financial Corp