(By Balaseshan) DNB Financial Corp. (NASDAQ: DNBF), the holding company of DNB First National Association bank, reported a 1.3% rise in quarterly earnings on higher non-interest income and lower provision for credit losses.
Earnings for the fourth quarter were $1.28 million or $0.47 per share, up from $1.17 million or $0.43 per share last year.
Net interest income declined to $5.32 million from $5.41 million, primarily due to lower interest and fees on loans due to lower average net loan balances.
Provision for credit losses declined to $180,000 from $202,000 in the previous year quarter. Non-interest income rose to $1.18 million from $865,000.
Non-interest expense increased 4.36% due largely to increased costs for occupancy, third party services (mainly legal), charitable contributions, and an increase in the reserve for unfunded commitments, offset in part by lower staffing costs.
The allowance for credit losses at December 31, 2012 was $6.8 million, up from $6.2 million last year. The allowance as a percentage of total loans and leases increased to 1.72% from 1.53%.
Net loans for commercial term and commercial mortgage increased 7.32% and 0.82% respectively, while commercial construction declined 50.65%.
Total assets increased 5.35% to $639.6 million at December 31, 2012, while deposits increased by 6.61% to $530.4 million. DNB's composite cost of funds for the fourth quarter dropped 13 basis points to 0.61%.
Non-performing assets (NPAs) declined to $11.67 million at December 31, 2012 from $13.69 million at September 30, 2012 and were flat compared to December 31, 2011.
DNBF is trading up 2.25% at $15.90 on Thursday. The stock has been trading between $11.30 and $16.75 for the past 52 weeks.