DNBF DNB Financial Corporation

DNB Financial Corporation (Nasdaq: 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 ManagementDNB'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-President484.359.3138gsopp@dnbfirst.com