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DNB Financial Corporation Reports First Quarter 2019 Results

DOWNINGTOWN, Pa., April 23, 2019 (GLOBE NEWSWIRE) -- DNB Financial Corporation (DNBF), today reported net income of $2.6 million, or $0.60 per diluted share, for the quarter ending March 31, 2019, compared with $2.6 million, or $0.61 per diluted share, for the same quarter, 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, “We are pleased with our first quarter results as they demonstrate the consistency and resiliency of our business model.  These results included certain costs - a loss on the sale of other real estate owned (OREO) of $113,000, largely contributing to a $2.7 million or 25% decline in non-performing assets, and $38,000 related to the closure of the Old City, Philadelphia branch - that will lead to increased profitability as we move forward.  Our strong capital position is complemented by an established community banking reputation that we have reinforced over many years.  We operate in robust markets that offer many opportunities for growth in banking products and services, and we remain confident that this presence, combined with our local relationships and conservative credit culture, will benefit our shareholders and customers.”

Highlights

  • Asset quality remained strong as net charge-offs were only 0.07% (annualized) of total average loans for the first quarter of 2019.  Non-performing loans were 0.49% of total loans at March 31, 2019.
  • Despite the flat yield curve that challenges all banks, the net interest margin was resilient at 3.43% for the quarter ending March 31, 2019. 
  • Non-interest bearing deposits increased $2.1 million or 1.3% (not annualized), over the past three months and represented 17.0% of total deposits at March 31, 2019.  As of the same date, core deposits were 72.4% of total deposits.
  • Wealth management assets under care were $274.0 million as of March 31, 2019, compared with $253.3 million as of December 31, 2018.  Wealth management fees represented approximately 35% of total fee income for the first quarter of 2019.
  • The Company paid a quarterly cash dividend of $0.07 per share on March 27, 2019.

Income Statement Summary

Net income of $2.6 million for the first quarter of 2019, generated a return on average assets (“ROAA”) and return on average tangible equity (“ROTE”) (a non-GAAP measure) of 0.91% and 10.7%, 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

Net interest income for the three months ending March 31, 2019 was $9.4 million, which represented a $160,000 decrease from the quarter ending December 31, 2018, and a $371,000 increase from the quarter ending March 31, 2018.  The net interest margin for the first quarter of 2019 was 3.43%, which represented a two basis point decline on a sequential quarter basis.  The year-over-year net interest margin decrease of eight basis points was primarily due to the higher cost of interest-bearing liabilities and a $77,000 net reduction in purchase accounting marks, which was partially offset by an $83.5 million increase in total average loans.  For the first quarters of 2019 and 2018, the weighted average yields on total interest-earning assets were 4.51% and 4.24%, respectively, which included purchase accounting marks. 

Total interest expense was $3.0 million for the three months ending March 31, 2019, compared with $2.8 million for the three months ending December 31, 2018, and $1.9 million for the first quarter of 2018.  The weighted average rate paid for interest-bearing liabilities was 1.16%, 1.07%, and 0.78% for the quarters ending March 31, 2019, December 31, 2018, and March 31, 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 $200,000 for the first quarter of 2019, compared with $350,000 for the fourth quarter of 2018, and $375,000 for the quarter ending March 31, 2018.  As of March 31, 2019, the allowance for credit losses was $6.7 million and represented 0.72% of total loans. 

Total non-interest income for the first quarter of 2019 remained fairly stable at $1.3 million, compared with both the fourth quarter of 2018, and the quarter ending March 31, 2018.  Wealth management fees were $445,000 for the first quarter of 2019, compared with $466,000 for the fourth quarter of 2018, and $435,000 for the first quarter of 2018.  Wealth management fees represented approximately 35% of total fee income. 

Non-interest expense was approximately $7.3 million for the quarter ending March 31, 2019, compared with $6.8 million for the quarter ending December 31, 2018, and $6.7 million for the quarter ending March 31, 2018.  Non-interest expense for the most recent quarter included a $113,000 loss on the sale of OREO and $38,000 associated with a branch closure in Philadelphia.  The efficiency ratio was approximately 67% for the three months ended March 31, 2019.

Income tax expense was $607,000 for the three months ending March 31, 2019, and $582,000 for the quarter ending March 31, 2018.  The effective tax rate for the most recent quarter was 19.0%, compared with 18.2%, for the same quarter, last year.

Balance Sheet Summary

As of March 31, 2019, total assets were $1.2 billion.  Since December 31, 2018, total average loans increased $15.2 million, or 1.7%, which was partially offset by a $10.0 million, or 5.5% decrease in total average investment securities and other interest-earning assets.  Total average deposits decreased $1.2 million, or less than one percent since December 31, 2018.  As of March 31, 2019, total shareholders’ equity was $115.0 million, compared with $111.8 million as of December 31, 2018.  Tangible book value per share (a non-GAAP measure) was $22.91 as of March 31, 2019, compared with $22.21 as of December 31, 2018. See Reconciliation of Non-GAAP Financial Measures on page 10.

As of March 31, 2019, total loans were $933.7 million, or 80.0% of total assets.  At the same date, commercial loans totaled $778.3 million and represented 83.4% of total loans.  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 three months, commercial business loans grew $15.7 million or 9.5%, and commercial construction loans increased $2.7 million, or 3.5%.  That growth, however, was offset by an $18.5 million, or 3.5%, decrease in commercial mortgage loans due to scheduled maturities and higher prepayments.  Consumer loans also declined over the quarter as overall loan demand appeared to weaken.  Loan originations have been prudent and conservative underwriting standards have been maintained.

Total core deposits decreased $3.7 million, or 0.5%, since December 31, 2018, and were 72.4% of total deposits as of March 31, 2019.  Non-interest bearing deposits increased $2.1 million or 1.25% (not annualized), over the past three months, and represented 17.0% of total deposits as of March 31, 2019. The $1.5 million, or 1.4%, decrease in brokered deposits was largely due to less favorable rates and maturities, compared with other funding sources, including FHLB advances.  As of March 31, 2019, the loan-to-deposit ratio was 95.3%. 

Capital ratios continue to exceed all regulatory guidelines.  As of March 31, 2019, the tier 1 leverage ratio was 9.65%, the tier 1 risk-based capital ratio was 11.97%, the common equity tier 1 risk-based capital ratio was 11.00%, and the total risk based capital ratio was 13.80%.  As of the same date, the tangible common equity-to-tangible assets ratio (a non-GAAP measure) was 8.61%.  Intangible assets and goodwill totaled $15.8 million as of March 31, 2019. See Reconciliation of Non-GAAP Financial Measures on page 10.

Asset Quality Summary

Asset quality remained strong as net charge-offs were 0.07% (annualized) of total average loans for the quarter ending March 31, 2019.  Total non-performing assets, including loans and other real estate property, were $8.1 million as of March 31, 2019, compared with $10.8 million as of December 31, 2018, and $13.4 million as of March 31, 2018.  The ratio of non-performing loans to total loans was 0.49% as of March 31, 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 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 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: 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  
  March 31,  
    2019       2018    
  EARNINGS:            
  Interest income $  12,360      $  10,913     
  Interest expense    2,962         1,886     
  Net interest income    9,398         9,027     
  Provision for credit losses    200         375     
  Non-interest income    1,271         1,273     
  Gain on sale of investment securities    3         -    
  Loss on sale / write-down of OREO and ORA    113         -    
  Non-interest expense    7,165         6,730     
  Income before income taxes(1)    3,194         3,195     
  Income tax expense    607         582     
  Net income $  2,587      $  2,613     
  Net income per common share, diluted $  0.60      $  0.61     
             
(1) Net income before taxes includes net accretion of purchase accounting fair value adjustments of $185,000 for the three month period ended March 31, 2019, compared with $262,000 for the same quarter last year.
 
Condensed Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands)
             
    March 31,     December 31,  
    2019     2018  
  FINANCIAL POSITION:            
  Cash and cash equivalents $  34,893      $  17,321     
  Investment securities    148,122         158,669     
  Loans held for sale    449         419     
  Loans    933,697         934,971     
  Allowance for credit losses    (6,719 )      (6,675 )  
  Net loans    926,978         928,296     
  Premises and equipment, net    7,360         7,636     
  Restricted stock    6,389         5,616     
  Other assets    38,527         40,278     
  Total assets $  1,166,694      $  1,158,235     
             
  Deposits $  980,257      $  984,566     
  FHLB advances    41,918         32,935     
  Other borrowings    9,568         12,584     
  Subordinated debt    9,750         9,750     
  Other liabilities    10,215         6,554     
  Stockholders' equity    114,986         111,846     
  Total liabilities and stockholders' equity $  1,166,694      $  1,158,235     
             
   




                             
DNB Financial Corporation
Selected Financial Data (Unaudited)
(In thousands, except per share data)
                             
  Quarterly
  2019   2018   2018   2018   2018
  1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr
Earnings and Per Share Data                            
  Net income $ 2,587     $ 3,002     $ 3,020     $ 2,049     $ 2,613  
  Basic earnings per common share $ 0.60     $ 0.70     $ 0.70     $ 0.48     $ 0.61  
  Diluted earnings per common share $ 0.60     $ 0.69     $ 0.70     $ 0.47     $ 0.61  
  Dividends per common share $ 0.07     $ 0.07     $ 0.07     $ 0.07     $ 0.07  
  Book value per common share $ 26.57     $ 25.88     $ 25.06     $ 24.49     $ 24.15  
  Tangible book value per common share (Non-GAAP) $ 22.91     $ 22.21     $ 21.38     $ 20.79     $ 20.44  
  Average common shares outstanding   4,327       4,317       4,307       4,298       4,291  
  Average diluted common shares outstanding   4,330       4,320       4,318       4,314       4,309  
                             
Performance Ratios                            
  Return on average assets   0.91 %     1.03 %     1.07 %     0.74 %     0.97 %
  Return on average equity   9.22 %     10.80 %     11.17 %     7.79 %     10.25 %
  Return on average tangible equity (Non-GAAP)   10.71 %     12.62 %     13.11 %     9.18 %     12.12 %
  Yield on Loans and Leases   4.90 %     4.85 %     4.74 %     4.70 %     4.71 %
  Cost of Deposits   1.04 %     0.97 %     0.86 %     0.77 %     0.63 %
  Net interest margin   3.43 %     3.45 %     3.39 %     3.44 %     3.51 %
  Efficiency ratio   66.50 %     62.45 %     63.68 %     70.39 %     64.61 %
  Wtd average yield on earning assets   4.51 %     4.44 %     4.30 %     4.28 %     4.24 %
                             
Asset Quality Ratios                            
  Net charge-offs (recoveries) to average loans   0.07 %     0.10 %     (0.12 %)     0.15 %     0.04 %
  Non-performing loans/Total loans   0.49 %     0.62 %     0.71 %     0.76 %     0.97 %
  Non-performing assets/Total assets   0.69 %     0.94 %     1.02 %     1.05 %     1.22 %
  Allowance for credit loss/Total loans   0.72 %     0.71 %     0.72 %     0.70 %     0.71 %
  Allowance for credit loss/Non-performing loans   146.24 %     115.50 %     101.36 %     91.76 %     73.08 %
                             
Capital Ratios                            
  Total equity/Total assets   9.86 %     9.66 %     9.58 %     9.29 %     9.42 %
  Tangible equity/Tangible assets (Non-GAAP)   8.61 %     8.40 %     8.29 %     8.00 %     8.09 %
  Tier 1 leverage ratio   9.65 %     9.48 %     9.48 %     9.35 %     9.33 %
  Common equity tier 1 risk-based capital ratio   11.00 %     10.76 %     10.91 %     10.69 %     10.63 %
  Tier 1 risk based capital ratio   11.97 %     11.74 %     11.93 %     11.72 %     11.67 %
  Total risk based capital ratio   13.80 %     13.57 %     13.83 %     13.59 %     13.56 %
                             
Wealth Management Assets Under Care(1) $ 273,980     $ 253,323     $ 269,074     $ 257,797     $ 260,324  
                             
(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  
  Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,  
  2019   2018   2018   2018   2018  
  EARNINGS:                              
  Interest income $  12,360      $  12,338      $  11,635      $  11,289      $  10,913     
  Interest expense    2,962         2,780         2,484         2,221         1,886     
  Net interest income    9,398         9,558         9,151         9,068         9,027     
  Provision for credit losses    200         350         100         375         375     
  Non-interest income    1,271         1,268         1,336         1,322         1,273     
  Gain from insurance proceeds    -        -        8         -        -    
  Gain on sale of investment securities    3         -        -        -        -    
  Gain on sale of SBA loans    -        1         27         10         -    
  Loss on sale / write-down of OREO and ORA    113         20         11         140         -    
  Non-interest expense    7,165         6,812         6,762         7,400         6,730     
  Income before income taxes    3,194         3,645         3,649         2,485         3,195     
  Income tax expense    607         643         629         436         582     
  Net income $  2,587      $  3,002      $  3,020      $  2,049      $  2,613     
  Net income per common share, diluted $  0.60      $  0.69      $  0.70      $  0.47      $  0.61     
                               
   
Condensed Consolidated Statements of Financial Condition (Unaudited)  
(Dollars in thousands)  
  Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,  
  2019   2018   2018   2018   2018  
  FINANCIAL POSITION:                              
  Cash and cash equivalents $  34,893      $  17,321      $  10,702      $  33,452      $  14,078     
  Investment securities    148,122         158,669         161,230         165,574         171,108     
  Loans held for sale    449         419         -        276         646     
  Loans and leases    933,697         934,971         908,293         885,320         864,345     
  Allowance for credit losses    (6,719 )      (6,675 )      (6,559 )      (6,188 )      (6,145 )  
  Net loans and leases    926,978         928,296         901,734         879,132         858,200     
  Premises and equipment, net    7,360         7,636         7,881         8,150         8,366     
  Right of use asset    3,976         -        -        -        -    
  Goodwill    15,525         15,525         15,525         15,525         15,525     
  Restricted stock    6,389         5,616         5,864         6,950         7,363     
  Other assets    23,002         24,753         25,179         24,550         24,744     
  Total assets $  1,166,694      $  1,158,235      $  1,128,115      $  1,133,609      $  1,100,030     
                               
  Demand $  166,806      $  164,746      $  168,311      $  175,561      $  172,044     
  NOW    233,077         236,071         213,707         216,261         207,538     
  Money market    231,524         235,023         227,797         254,061         253,757     
  Savings    78,748         77,979         78,996         80,044         81,635     
  Core deposits    710,155         713,819         688,811         725,927         714,974     
  Time deposits    162,939         162,096         154,021         114,766         115,214     
  Brokered deposits    107,163         108,651         97,049         93,422         61,598     
  Total deposits    980,257         984,566         939,881         934,115         891,786     
  FHLB advances    41,918         32,935         36,952         62,972         67,993     
  Repurchase agreements    -        -        4,089         5,609         10,717     
  Subordinated debt    9,750         9,750         9,750         9,750         9,750     
  Other borrowings    9,568         12,584         22,833         9,615         9,630     
  Other liabilities    5,857         6,554         6,551         6,215         6,484     
  Operating lease liability    4,358         -        -        -        -    
  Stockholders' equity    114,986         111,846         108,059         105,333         103,670     
  Total liabilities and stockholders' equity $  1,166,694      $  1,158,235      $  1,128,115      $  1,133,609      $  1,100,030     
                               


                               
DNB Financial Corporation
Condensed Consolidated Statements of Financial Condition - Quarterly Average Balances (Unaudited)
(Dollars in thousands)
                               
    Mar 31,     Dec 31,     Sept 30,     June 30,     Mar 31,  
    2019     2018     2018     2018     2018  
  FINANCIAL POSITION:                              
  Cash and cash equivalents $  18,390      $  25,269      $  21,676      $  20,528      $  16,509     
  Investment securities    157,364         159,717         163,800         168,836         172,488     
  Loans held for sale    289         320         338         642         113     
  Loans and leases    935,169         919,985         889,113         869,166         851,623     
  Allowance for credit losses    (6,785 )      (6,550 )      (6,567 )      (6,197 )      (5,958 )  
  Net loans and leases    928,384         913,435         882,546         862,969         845,665     
  Premises and equipment, net    7,540         7,789         8,059         8,306         8,552     
  Right of use asset    1,390         -        -        -        -    
  Goodwill    15,525         15,525         15,525         15,525         15,525     
  Restricted Stock    6,138         5,759         6,262         6,836         7,674     
  Other assets    23,695         23,816         24,012         23,568         23,436     
  Total assets $  1,158,715      $  1,151,630      $  1,122,218      $  1,107,210      $  1,089,962     
                               
  Demand $  160,852      $  168,495      $  174,798      $  170,885      $  174,022     
  NOW    228,907         222,638         215,055         206,341         204,719     
  Money market    233,101         241,777         238,679         252,825         236,165     
  Savings    78,713         78,069         79,695         80,696         80,992     
  Core deposits    701,573         710,979         708,227         710,747         695,898     
  Time deposits    162,715         157,944         141,794         114,091         133,222     
  Brokered deposits    107,639         104,161         85,690         82,957         43,739     
  Total deposits    971,927         973,084         935,711         907,795         872,859     
  FHLB advances    45,493         34,834         45,549         54,971         75,458     
  Repurchase agreements    -        1,168         4,644         12,042         12,364     
  Subordinated debt    9,750         9,750         9,750         9,750         9,750     
  Other borrowings    11,158         15,752         13,060         10,923         10,470     
  Other liabilities    5,051         6,780         6,193         6,277         5,657     
  Operating lease liability    1,522         -        -        -        -    
  Stockholders' equity    113,814         110,262         107,311         105,452         103,404     
  Total liabilities and stockholders' equity $  1,158,715      $  1,151,630      $  1,122,218      $  1,107,210      $  1,089,962     
                               




                               
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)
  Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,  
  2019   2018   2018   2018   2018  
Stockholders' Equity $  114,986    $  111,846    $  108,059    $  105,333    $  103,670   
Goodwill    15,525       15,525       15,525       15,525       15,525   
Other intangible assets    322       343       364       388       423   
Tangible common equity (Non-GAAP) $  99,139    $  95,978    $  92,170    $  89,420    $  87,722   
                               
Outstanding shares  4,327,415     4,321,745     4,311,860     4,301,898     4,292,689   
                               
Book value per common share (GAAP) $  26.57    $  25.88    $  25.06    $  24.49    $  24.15   
Tangible book value per common share (Non-GAAP)    22.91       22.21       21.38       20.79       20.44   
                               
                               
                               
Return on Average Tangible Equity
(Dollars in thousands) For the Quarter Ended
  Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,  
  2019   2018   2018   2018   2018  
Average Stockholders' Equity $  113,814    $  110,262    $  107,311    $  105,452    $  103,404   
Average goodwill    15,525       15,525       15,525       15,525       15,525   
Average other intangible assets    333       354       376       388       423   
Average tangible stockholders' equity (Non-GAAP) $  97,956    $  94,383    $  91,410    $  89,539    $  87,456   
                               
Net Income $  2,587    $  3,002    $  3,020    $  2,049    $  2,613   
                               
Return on average stockholders' equity (GAAP)    9.22  %    10.80  %    11.17  %    7.79  %    10.25  %
Return on average tangible equity (Non-GAAP)    10.71       12.62       13.11       9.18       12.12   
                               
                               
                               
Tangible Equity/Tangible Assets
(Dollars in thousands)
  Mar 31,   Dec 31,   Sept 30,   June 30,   Mar 31,  
  2019   2018   2018   2018   2018  
Stockholders' Equity $  114,986    $  111,846    $  108,059    $  105,333    $  103,670   
Goodwill    15,525       15,525       15,525       15,525       15,525   
Other intangible assets    322       343       364       388       423   
Tangible common equity (Non-GAAP) $  99,139    $  95,978    $  92,170    $  89,420    $  87,722   
                               
Assets  1,166,694     1,158,235     1,128,115     1,133,609     1,100,030   
Goodwill    15,525       15,525       15,525       15,525       15,525   
Other intangible assets    322       343       364       388       423   
Tangible assets (Non-GAAP)  1,150,847     1,142,367     1,112,226     1,117,696     1,084,082   
                               
Total equity/Total assets (GAAP)    9.86  %    9.66  %    9.58  %    9.29  %    9.42  %
Tangible common equity/Tangible assets (Non-GAAP)    8.61       8.40       8.29       8.00       8.09   

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