Attached files
| file | filename |
|---|---|
| 8-K - Delanco Bancorp, Inc | v209920_8k.htm |
Exhibit
99.1
FOR
IMMEDIATE RELEASE
DELANCO
BANCORP ANNOUNCES THIRD QUARTER 2010 RESULTS
FEBRUARY
2, 2011
DELANCO,
NEW JERSEY
Delanco
Bancorp, Inc. (Delanco) (OTCBB: DLNO.OB), the parent company of Delanco Federal
Savings Bank (the Bank), today announced its financial results for the three and
nine months ended December 31, 2010.
For the
three months ended December 31, 2010, Delanco recorded net earnings of $139
thousand as compared to $129 thousand for the three months ended December 31,
2009. For the nine months ended December 31, 2010 the Bank had net
earnings of $373 thousand as compared to a loss of $182 thousand for the nine
months ended December 31, 2009. Earnings per share for the quarter ending
December 31, 2010 was $0.09, compared to $0.08 per share for the quarter ending
December 31, 2009. Earnings per share for the nine months
ending December 31, 2010 was $0.24, compared to a loss of $(0.12) per share for
the nine months ending December 31, 2009.
“We are
pleased to announce our fifth consecutive profitable quarter,” said James E.
Igo, Chairman and President of Delanco. “We have continued to work
through our problem assets and analyzed our internal operations to identify
areas of cost savings to help achieve our results. The Bank has
experienced some contraction in size as we have focused on our deposit
relationships with our core banking customers and have allowed more expensive
time deposits to leave the bank. In the current rate environment, it
made no sense to pay the high rates it would have taken to retain those
customers. Maintaining profitability is more important than asset
size at this point. By letting our assets shrink we have been able to
increase our net interest margin and improve our capital ratios.”
Balance
Sheet
Total
assets decreased $4.2 million, or 3.0 % from March 31, 2010 to $135.7
million. The decrease in assets was due primarily to decreases in
loans of $2.9 million and in investment securities of $530 thousand offset by an
increase in real estate owned of $542 thousand.
Total
deposits decreased by $4.5 million, or 3.5% to $122.7 million as of December 31,
2010 compared to $127.2 million as of March 31, 2010. Core deposits
grew $1.3 million and time deposits decreased by $5.8 million.
At
December 31, 2010 shareholders equity equaled $12.1 million, or 8.92% of total
assets, compared to $11.7 million, or 8.36% at March 31, 2010. The
increase in stockholders’ equity was primarily due to the year to date
profit.
Asset
Quality
Non-performing
loans totaled $4.6 million, or 3.37% of total assets at December 31, 2010,
compared to $6.1 million, or 4.34% at March 31, 2010. At December 31,
2010 non-performing loans consisted of $1.9 million in commercial loans, $1.8
million in residential mortgages and $913 thousand in consumer
loans. Net charge-offs during the nine month period ended December
31, 2010 were $130 thousand, compared to $1.1 million during the nine month
period ending December 31, 2009. The allowance for loan losses at
December 31, 2010 totaled $1.3 million, or 1.2% of total loans outstanding,
compared to $1.4 million or 1.3% of total loans outstanding at December 31,
2009.
The Bank
recorded a provision for loan losses of $398 thousand during the nine months
ended December 31, 2010, compared to a provision of $915 thousand for the nine
months ended December 31, 2009 due to the stabilization in our loan
portfolio.
Net
Interest Income
Delanco’s
net interest income increased by $210 thousand, or 19.2% to $1.3 million for the
quarter ended December 31, 2010 as compared to $1.1 million for the quarter
ended December 31, 2009 and increased by $455 thousand, or 14.3% for the nine
months ended December 31, 2010 to $3.6 million as compared to the net interest
income for the nine months ended December 31, 2009 of $3.2 million.
The net
interest margin increased to 3.83% for the period ended December 31, 2010, an
increase of 51 basis points from the period ended December 31, 2009, reflecting
a steady return on interest earning assets and a decline in the interest cost on
interest bearing liabilities. For the period ended December 31, 2009,
the net interest margin was 3.32%.
Non-Interest
Income
Non-interest
income decreased by $21 thousand for the nine months ended December 31, 2010 as
compared to the nine month period ended December 31, 2009. Other
income decreased by $11,000 as a result of the conversion of our ATM
processor. Our new processor now nets the fees earned on ATM
transactions against charges.
Non-Interest
Expenses
Non-interest
expenses decreased by $15 thousand for the nine month period ended December 31,
2010 as compared to the nine month period ending December 31, 2009 due to
reduced salaries and employee benefits cost of $165 thousand dollars offset by
increases in Federal deposit insurance costs and costs associated with the
workout of our problem assets, which includes REO expenses and legal
costs.
About
Delanco Bancorp, Inc.
Delanco
Bancorp, Inc. is the holding company for Delanco Federal Savings
Bank. Delanco Federal Savings Bank operates from two offices in
Burlington County, New Jersey. Delanco Federal Savings Bank is
engaged primarily in the business of attracting deposits from the general public
and using such funds to originate a variety of consumer and business
loans.
Forward-Looking
Statements
This quarterly report contains
forward-looking statements that are based on assumptions and may describe our
future plans, strategies and expectations. These forward-looking
statements are generally identified by use of the words “believe,” “expect,”
“intend,” “anticipate,” “estimate,” “project” or similar
expressions.
Our
ability to predict results or the actual effect of future plans or strategies is
inherently uncertain. Factors which could have a material adverse
effect on our operations include, but are not limited to, changes in interest
rates, national and regional economic conditions, legislative and regulatory
changes, monetary and fiscal policies of the U.S. government, including policies
of the U.S. Treasury and the Federal Reserve Board, the quality and composition
of our loan or investment portfolios, demand for loan products, deposit flows,
competition, demand for financial services in our market area, changes in real
estate market values in our area, and changes in relevant accounting principles
and guidelines.
These
risks and uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such
statements. Except as required by applicable law or regulation, we do
not undertake, and specifically disclaim any obligation, to release publicly the
result of any revisions that may be made to any forward-looking statements to
reflect events or circumstances after the date of the statements or to reflect
the occurrence of anticipated or unanticipated events.
FOR
FURTHER INFORMATION CONTACT:
James E.
Igo, Chairman and President
856-461-0611
www.delancofsb.com
SELECTED FINANCIAL CONDITION DATA
|
December
31,
|
March
31,
|
|||||||||||
|
2010
|
2010
|
%
Change
|
||||||||||
|
(Dollars
in thousands)
|
||||||||||||
|
Total
assets
|
$ | 135,726 | $ | 139,922 | (3.0 | )% | ||||||
|
Cash
and cash equivalents
|
4,364 | 4,884 | (10.6 | ) | ||||||||
|
Investment
securities
|
16,088 | 16,618 | (3.2 | ) | ||||||||
|
Loans
receivable, net
|
104,290 | 107,204 | (2.7 | ) | ||||||||
|
Deposits
|
122,661 | 127,164 | (3.5 | ) | ||||||||
|
FHLB
advances
|
0 | 0 | 0.0 | |||||||||
|
Subordinated
debt
|
0 | 0 | 0.0 | |||||||||
|
Stockholder’s
equity
|
12,106 | 11,735 | 3.2 | |||||||||
SELECTED
OPERATING DATA
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||||||||||
|
2010
|
2009
|
%
Change
|
2010
|
2009
|
%
Change
|
|||||||||||||||||||
|
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||
|
Interest
and dividend income
|
$ | 1,751 | $ | 1,758 | (0.4 | )% | $ | 5,125 | $ | 5,219 | (1.8 | )% | ||||||||||||
|
Interest
expense
|
447 | 664 | (32.7 | ) | 1,493 | 2,042 | (26.9 | ) | ||||||||||||||||
|
Net
interest income
|
1,304 | 1,094 | 19.2 | 3,632 | 3,177 | 14.3 | ||||||||||||||||||
|
Provision
for loan losses
|
125 | 110 | 13.6 | 398 | 915 | (56.5 | ) | |||||||||||||||||
|
Net
interest income after provision
for loan losses
|
1,179 | 984 | 19.8 | 3,234 | 2,262 | 43.0 | ||||||||||||||||||
|
Other
income
|
42 | 47 | (10.6 | ) | 121 | 142 | (14.8 | ) | ||||||||||||||||
|
Impairment
on investment securities
|
0 | 0 | 0.0 | 0 | 0 | 0.0 | ||||||||||||||||||
|
Other
expense
|
970 | 890 | 9.0 | 2,752 | 2,767 | (0.5 | ) | |||||||||||||||||
|
Income
before taxes
|
251 | 141 | 78.0 | 603 | (363 | ) | 266.1 | |||||||||||||||||
|
Provision
for income taxes
|
112 | 12 | 833.3 | 230 | (181 | ) | 227.1 | |||||||||||||||||
|
Net
Income
|
$ | 139 | $ | 129 | 7.8 | $ | 373 | $ | (182 | ) | 304.9 | |||||||||||||
|
Earnings
per share basic
|
$ | 0.09 | $ | 0.08 | 12.5 | $ | 0.24 | $ | (0.12 | ) | 350.0 | |||||||||||||
|
Earnings
per share diluted
|
$ | 0.09 | $ | 0.08 | 12.5 | $ | 0.24 | $ | (0.12 | ) | 350.0 | |||||||||||||
|
Average
shares outstanding basic
|
1,580,256 | 1,577,052 | 1,580,256 | 1,577,052 | ||||||||||||||||||||
|
Average
shares outstanding diluted
|
1,580,256 | 1,577,052 | 1,580,256 | 1,577,052 | ||||||||||||||||||||
ASSET
QUALITY DATA
|
Nine
Months Ended
December
31, 2010
|
Year
Ended
March
31, 2010
|
|||||||
|
(Dollars
in thousands)
|
||||||||
|
Allowance
for Loan Losses:
|
||||||||
|
Allowance
at beginning of
period
|
$ | 999 | $ | 1,547 | ||||
|
Provision
for loan
losses
|
398 | 1,140 | ||||||
|
Charge-offs
|
(156 | ) | (1,738 | ) | ||||
|
Recoveries
|
26 | 50 | ||||||
|
Net
charge-offs
|
(130 | ) | (1,688 | ) | ||||
|
Allowance
at end of
period
|
$ | 1,267 | $ | 999 | ||||
|
Allowance
for loan losses as a percent of total loans
|
1.20 | % | 0.92 | % | ||||
|
Allowance
for loan losses as a percent of nonperforming loans
|
27.71 | % | 16.47 | % | ||||
|
Nine
Months Ended
December
31, 2010
|
Year
Ended
March
31, 2010
|
|||||||
|
(Dollars
in thousands)
|
||||||||
|
Nonperforming
Assets:
|
||||||||
|
Nonaccrual
loans:
|
||||||||
|
Real
estate mortgage -
residential
|
$ | 2,685 | $ | 2,053 | ||||
|
Real
estate mortgage -
commercial
|
1,880 | 3,789 | ||||||
|
Commercial
|
- | 225 | ||||||
|
Consumer
|
8 | - | ||||||
|
Total
|
4,573 | 6,067 | ||||||
|
Real
estate
owned
|
955 | 413 | ||||||
|
Other
nonperforming
assets
|
3 | - | ||||||
|
Total
nonperforming assets
|
5,531 | 6,480 | ||||||
|
Nonperforming
loans as a percent of total loans
|
4.33 | % | 5.60 | % | ||||
|
Nonperforming
assets as a percent of total assets
|
3.37 | % | 4.34 | % | ||||
SELECTED
FINANCIAL RATIOS
|
Nine
Months Ended
December
31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Selected
Performance Ratios:
|
||||||||
|
Return
on average assets (1)
|
0.36 | % | (0.18 | )% | ||||
|
Return
on average equity (1)
|
4.15 | % | (2.11 | )% | ||||
|
Interest
rate spread (1)
|
3.75 | % | 3.24 | % | ||||
|
Net
interest margin (1)
|
3.83 | % | 3.32 | % | ||||
|
Efficiency
ratio
|
73.3 | % | 83.4 | % | ||||
(1)
Annualized.