Pennsylvania
(State or other jurisdiction of
incorporation or organization)
|
23-2222567
(I.R.S. Employer Identification No.)
|
Yes
x
|
No
o
|
Yes
o
|
No
o
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
x
|
Yes
o
|
No
x
|
Common Stock ($1.00 Par Value)
(Class)
|
2,643,013
(Shares Outstanding as of August 10, 2010)
|
PART I - FINANCIAL INFORMATION
|
PAGE NO.
|
||
ITEM 1.
|
FINANCIAL STATEMENTS (Unaudited):
|
||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
|||
June 30, 2010 and December 31, 2009
|
|||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||
Three and Six Months Ended June 30, 2010 and 2009
|
|||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS)
|
|||
Six Months Ended June 30, 2010 and 2009
|
|||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||
Six Months Ended June 30, 2010 and 2009
|
|||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|||
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
||
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK,
|
||
ITEM 4T.
|
CONTROLS AND PROCEDURES
|
||
PART II - OTHER INFORMATION
|
|||
ITEM 1.
|
LEGAL PROCEEDINGS
|
||
ITEM 1A.
|
RISK FACTORS
|
||
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
||
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
||
ITEM 4.
|
REMOVED AND RESERVED
|
||
ITEM 5.
|
OTHER INFORMATION
|
||
ITEM 6.
|
EXHIBITS
|
||
SIGNATURES
|
|||
June 30,
|
December 31,
|
|||||||
(Dollars in thousands, except per share data)
|
2010
|
2009
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 20,539 | $ | 35,832 | ||||
Federal funds sold
|
8,000 | 8,000 | ||||||
Cash and cash equivalents
|
28,539 | 43,832 | ||||||
AFS investment securities
|
181,391 | 155,862 | ||||||
HTM investment securities (fair value of $11,650 and $43,742)
|
11,202 | 44,166 | ||||||
Restricted stock
|
4,365 | 4,067 | ||||||
Total investment securities
|
196,958 | 204,095 | ||||||
Loans and leases
|
370,184 | 359,427 | ||||||
Allowance for credit losses
|
(6,028 | ) | (5,477 | ) | ||||
Net loans and leases
|
364,156 | 353,950 | ||||||
Office property and equipment, net
|
8,427 | 8,775 | ||||||
Accrued interest receivable
|
2,416 | 2,703 | ||||||
OREO & other repossessed property
|
3,700 | 4,489 | ||||||
Bank owned life insurance
|
8,010 | 7,887 | ||||||
Core deposit intangible
|
185 | 210 | ||||||
Net deferred taxes
|
3,067 | 3,866 | ||||||
Other assets
|
3,579 | 4,441 | ||||||
Total assets
|
$ | 619,037 | $ | 634,248 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Liabilities
|
||||||||
Non-interest-bearing deposits
|
$ | 57,142 | $ | 46,236 | ||||
Interest-bearing deposits:
|
||||||||
NOW
|
158,549 | 151,597 | ||||||
Money market
|
99,090 | 102,427 | ||||||
Savings
|
41,593 | 35,973 | ||||||
Time
|
145,004 | 171,114 | ||||||
Total deposits
|
501,378 | 507,347 | ||||||
FHLB advances
|
30,000 | 53,000 | ||||||
Repurchase agreements
|
27,435 | 16,529 | ||||||
Junior subordinated debentures
|
9,279 | 9,279 | ||||||
Other borrowings
|
632 | 642 | ||||||
Total borrowings
|
67,346 | 79,450 | ||||||
Accrued interest payable
|
556 | 743 | ||||||
Other liabilities
|
3,928 | 3,832 | ||||||
Total liabilities
|
573,208 | 591,372 | ||||||
Stockholders’ Equity
|
||||||||
Preferred stock, $10.00 par value;
|
||||||||
1,000,000 shares authorized; $1,000 liquidation preference per share; 11,750 issued at June 30, 2010 and December 31, 2009
|
11,526 | 11,551 | ||||||
Common stock, $1.00 par value;
|
||||||||
10,000,000 shares authorized; 2,862,893 and 2,861,618 issued respectively
|
2,880 | 2,875 | ||||||
Stock warrants
|
151 | 151 | ||||||
Treasury stock, at cost; 227,363 and 243,594 shares, respectively
|
(4,621 | ) | (4,727 | ) | ||||
Surplus
|
35,241 | 35,179 | ||||||
Retained earnings (accumulated deficit)
|
489 | (666 | ) | |||||
Accumulated other comprehensive income (loss), net
|
163 | (1,447 | ) | |||||
Total stockholders’ equity
|
45,829 | 42,876 | ||||||
Total liabilities and stockholders’ equity
|
$ | 619,037 | $ | 634,248 | ||||
See accompanying notes to unaudited consolidated financial statements.
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
|||||||||||||||
(Dollars in thousands, except per share data)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Interest Income:
|
||||||||||||||||
Interest and fees on loans and leases
|
$ | 5,239 | $ | 4,698 | $ | 10,370 | $ | 9,413 | ||||||||
Interest and dividends on investment securities:
|
||||||||||||||||
Taxable
|
1,245 | 1,590 | 2,693 | 2,920 | ||||||||||||
Tax exempt
|
19 | 47 | 64 | 96 | ||||||||||||
Interest on cash and cash equivalents
|
23 | 15 | 50 | 34 | ||||||||||||
Total interest income
|
6,526 | 6,350 | 13,177 | 12,463 | ||||||||||||
Interest Expense:
|
||||||||||||||||
Interest on NOW, money market and savings
|
504 | 663 | 1,134 | 1,202 | ||||||||||||
Interest on time deposits
|
765 | 985 | 1,653 | 2,105 | ||||||||||||
Interest on FHLB advances
|
328 | 736 | 849 | 1,465 | ||||||||||||
Interest on Federal Reserve borrowing
|
— | 10 | — | 10 | ||||||||||||
Interest on repurchase agreements
|
54 | 74 | 119 | 143 | ||||||||||||
Interest on junior subordinated debentures
|
100 | 135 | 220 | 273 | ||||||||||||
Interest on other borrowings
|
21 | 22 | 43 | 44 | ||||||||||||
Total interest expense
|
1,772 | 2,625 | 4,018 | 5,242 | ||||||||||||
Net interest income
|
4,754 | 3,725 | 9,159 | 7,221 | ||||||||||||
Provision for credit losses
|
400 | 300 | 826 | 400 | ||||||||||||
Net interest income after provision for credit losses
|
4,354 | 3,425 | 8,333 | 6,821 | ||||||||||||
Non-interest Income:
|
||||||||||||||||
Service charges on deposits
|
329 | 357 | 672 | 744 | ||||||||||||
Wealth management fees
|
200 | 157 | 416 | 331 | ||||||||||||
Increase in cash surrender value of BOLI
|
62 | 64 | 123 | 127 | ||||||||||||
Gain on sale of securities
|
279 | 49 | 975 | 551 | ||||||||||||
Loss on sale of OREO
|
— | — | — | (66 | ) | |||||||||||
Other fees
|
282 | 237 | 535 | 455 | ||||||||||||
Total non-interest income
|
1,152 | 864 | 2,721 | 2,142 | ||||||||||||
Non-interest Expense:
|
||||||||||||||||
Salaries and employee benefits
|
2,115 | 1,966 | 4,218 | 4,089 | ||||||||||||
Furniture and equipment
|
363 | 411 | 722 | 809 | ||||||||||||
Occupancy
|
399 | 382 | 855 | 825 | ||||||||||||
Professional and consulting
|
319 | 349 | 585 | 706 | ||||||||||||
Advertising and marketing
|
177 | 107 | 281 | 176 | ||||||||||||
Printing and supplies
|
44 | 60 | 85 | 99 | ||||||||||||
FDIC insurance
|
209 | 539 | 420 | 621 | ||||||||||||
FHLB prepayment penalties
|
— | — | 560 | — | ||||||||||||
Other expenses
|
520 | 565 | 1,022 | 1,159 | ||||||||||||
Total non-interest expense
|
4,146 | 4,379 | 8,748 | 8,484 | ||||||||||||
Income (loss) before income tax expense (benefit)
|
1,360 | (90 | ) | 2,306 | 479 | |||||||||||
Income tax expense (benefit)
|
413 | (51 | ) | 684 | 39 | |||||||||||
Net income (loss)
|
$ | 947 | $ | (39 | ) | $ | 1,622 | $ | 440 | |||||||
Preferred stock dividends and accretion of discount
|
155 | 147 | 309 | 245 | ||||||||||||
Net income (loss) available to Common Shareholders
|
$ | 792 | $ | (186 | ) | $ | 1,313 | $ | 195 | |||||||
Earnings (loss) per common share:
|
||||||||||||||||
Basic
|
$ | 0.30 | $ | (0.07 | ) | $ | 0.50 | $ | 0.07 | |||||||
Diluted
|
$ | 0.30 | $ | (0.07 | ) | $ | 0.50 | $ | 0.07 | |||||||
Cash dividends per common share
|
$ | 0.03 | $ | 0.07 | $ | 0.06 | $ | 0.14 | ||||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
2,631,824 | 2,603,255 | 2,626,100 | 2,603,131 | ||||||||||||
Diluted
|
2,631,855 | 2,603,255 | 2,626,116 | 2,603,131 | ||||||||||||
See accompanying notes to unaudited consolidated financial statements.
|
Preferred Stock
|
Common
Stock
|
Stock
Warrants
|
Treasury
Stock
|
Surplus
|
Retained Earnings (Accumulated
Deficit)
|
Accumulated
Other
Compre-
hensive
Income
(Loss)
|
Total
|
|||||||||||||||||||||||||
Balance at January 1, 2010
|
$ | 11,511 | $ | 2,875 | $ | 151 | $ | (4,727 | ) | $ | 35,179 | $ | (666 | ) | $ | (1,447 | ) | $ | 42,876 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||
Net income for six months ended June 30, 2010
|
— | — | — | — | — | 1,622 | — | 1,622 | ||||||||||||||||||||||||
Other comprehensive
income, net of tax:
|
||||||||||||||||||||||||||||||||
Unrealized gains on AFS securities, net
|
— | — | — | — | — | — | 1,610 | 1,610 | ||||||||||||||||||||||||
Total comprehensive income
|
— | — | — | — | — | — | — | 3,232 | ||||||||||||||||||||||||
Preferred stock discount accretion
|
15 | — | — | — | — | (15 | ) | — | — | |||||||||||||||||||||||
Restricted stock compensation
|
— | 5 | — | — | 57 | — | — | 62 | ||||||||||||||||||||||||
Stock option compensation
|
— | — | — | — | 5 | — | — | 5 | ||||||||||||||||||||||||
Cash dividends-Common ($.06 per share)
|
— | — | — | — | — | (158 | ) | — | (158 | ) | ||||||||||||||||||||||
Cash dividends-Preferred
|
— | — | — | — | — | (294 | ) | — | (294 | ) | ||||||||||||||||||||||
Sale of treasury shares (16,231 shares)
|
— | — | — | 106 | — | — | — | 106 | ||||||||||||||||||||||||
Balance at June 30, 2010
|
$ | 11,526 | $ | 2,880 | $ | 151 | $ | (4,621 | ) | $ | 35,241 | $ | 489 | $ | 163 | $ | 45,829 | |||||||||||||||
Preferred Stock
|
Common
Stock
|
Stock
Warrants
|
Treasury
Stock
|
Surplus
|
Accumulated
Deficit
|
Accumulated
Other
Compre-
hensive
Loss
|
Total
|
|||||||||||||||||||||||||
Balance at January 1, 2009
|
— | $ | 2,867 | — | $ | (4,811 | ) | $ | 35,082 | $ | (1,062 | ) | $ | (2,018 | ) | $ | 30,058 | |||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||||||
Net income for six months ended June 30, 2009
|
— | — | — | — | — | 440 | — | 440 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax:
|
||||||||||||||||||||||||||||||||
Unrealized losses on AFS securities, net
|
— | — | — | — | — | — | (893 | ) | (893 | ) | ||||||||||||||||||||||
Total comprehensive loss
|
— | — | — | — | — | — | — | (453 | ) | |||||||||||||||||||||||
Issuance of preferred stock
|
11,599 | — | — | — | — | — | — | 11,599 | ||||||||||||||||||||||||
Preferred stock discount accretion
|
13 | — | — | — | — | (13 | ) | — | — | |||||||||||||||||||||||
Stock warrants issued
|
— | — | 151 | — | — | — | — | 151 | ||||||||||||||||||||||||
Release of unvested stock
|
— | 4 | — | — | 47 | — | — | 51 | ||||||||||||||||||||||||
Cash dividends-Common ($.14 per share)
|
— | — | — | — | — | (338 | ) | — | (338 | ) | ||||||||||||||||||||||
Cash dividends-Preferred
|
— | — | — | — | — | (171 | ) | — | (171 | ) | ||||||||||||||||||||||
Purchase of treasury shares (2,454 shares)
|
— | — | — | (17 | ) | — | — | — | (17 | ) | ||||||||||||||||||||||
Preferred stock dividends accrued
|
— | — | — | — | — | (74 | ) | — | (74 | ) | ||||||||||||||||||||||
Balance at June 30, 2009
|
$ | 11,612 | $ | 2,871 | $ | 151 | $ | (4,828 | ) | $ | 35,129 | $ | (1,218 | ) | $ | (2,911 | ) | $ | 40,806 | |||||||||||||
Six Months Ended
June 30,
|
||||||||
(Dollars in thousands)
|
2010
|
2009
|
||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$ | 1,622 | $ | 440 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation, amortization and accretion
|
1,736 | 1,098 | ||||||
Provision for credit losses
|
826 | 400 | ||||||
Stock based compensation
|
67 | 51 | ||||||
Net gain on sale of securities
|
(975 | ) | (551 | ) | ||||
Net loss on sale of OREO and other repossessed property
|
4 | 78 | ||||||
(Increase) decrease in accrued interest receivable
|
287 | (428 | ) | |||||
(Increase) decrease in other assets
|
862 | (114 | ) | |||||
Earnings from investment in BOLI
|
(123 | ) | (127 | ) | ||||
Decrease in interest payable
|
(187 | ) | (351 | ) | ||||
Increase in deferred tax benefit (expense)
|
171 | 176 | ||||||
Decrease in other liabilities
|
(736 | ) | (163 | ) | ||||
Net Cash Provided By Operating Activities
|
3,554 | 509 | ||||||
Cash Flows From Investing Activities:
|
||||||||
Activity in available-for-sale securities:
|
||||||||
Sales
|
114,964 | 54,269 | ||||||
Maturities, repayments and calls
|
19,645 | 12,283 | ||||||
Purchases
|
(158,674 | ) | (153,123 | ) | ||||
Activity in held-to-maturity securities:
|
||||||||
Sales
|
29,855 | — | ||||||
Maturities, repayments and calls
|
5,843 | 10,200 | ||||||
Purchases
|
(2,137 | ) | (2,023 | ) | ||||
Net increase in Restricted Stock
|
(298 | ) | (2 | ) | ||||
Net (increase) decrease in loans and leases
|
(10,683 | ) | 3,043 | |||||
Purchases of premises and equipment
|
(211 | ) | (332 | ) | ||||
Proceeds from sale of OREO and other repossessed property
|
1,268 | 363 | ||||||
Net Cash Used By Investing Activities
|
(428 | ) | (75,322 | ) | ||||
Cash Flows From Financing Activities:
|
||||||||
Net increase (decrease) in deposits
|
(5,969 | ) | 42,291 | |||||
Repayment of FHLB advances
|
(23,000 | ) | — | |||||
Increase in Federal Reserve borrowings
|
— | 20,500 | ||||||
Increase (decrease) in short term repurchase agreements
|
10,906 | 3,278 | ||||||
Decrease in lease obligations
|
(10 | ) | (8 | ) | ||||
Dividends paid
|
(452 | ) | (509 | ) | ||||
Issuance of preferred stock and warrants
|
— | 11,750 | ||||||
Sale (purchase) of treasury stock
|
106 | (17 | ) | |||||
Net Cash Provided (Used) By Financing Activities
|
(18,419 | ) | 77,285 | |||||
Net Change in Cash and Cash Equivalents
|
(15,293 | ) | 2,472 | |||||
Cash and Cash Equivalents at Beginning of Period
|
43,832 | 48,118 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 28,539 | $ | 50,590 | ||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 4,205 | $ | 5,593 | ||||
Income taxes
|
670 | 402 | ||||||
Supplemental Disclosure of Non-cash Flow Information:
|
||||||||
Change in unrealized losses on investment securities
|
$ | 1,847 | $ | (1,406 | ) | |||
Change in deferred taxes due to change in unrealized
|
||||||||
losses on investment securities
|
(628 | ) | 478 | |||||
Transfers from loans and leases to real estate owned
|
483 | 194 | ||||||
See accompanying notes to unaudited consolidated financial statements.
|
June 30, 2010 | ||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
Held To Maturity
|
||||||||||||||||
Government Sponsored Entities (GSE) mortgage-backed securities
|
$ | 9,592 | $ | 423 | $ | — | $ | 10,015 | ||||||||
Collateralized mortgage obligations (GSE)
|
1,610 | 25 | — | 1,635 | ||||||||||||
Total
|
$ | 11,202 | $ | 448 | $ | — | $ | 11,650 | ||||||||
Available For Sale
|
||||||||||||||||
US Government agency obligations
|
$ | 57,081 | $ | 305 | $ | — | $ | 57,386 | ||||||||
Government Sponsored Entities (GSE) mortgage-backed securities
|
95,847 | 966 | (22 | ) | 96,791 | |||||||||||
Collateralized mortgage obligations (GSE)
|
14,651 | 197 | — | 14,848 | ||||||||||||
Corporate bonds
|
12,344 | 52 | (42 | ) | 12,354 | |||||||||||
Equity securities
|
27 | — | (15 | ) | 12 | |||||||||||
Total
|
$ | 179,950 | $ | 1,520 | $ | (79 | ) | $ | 181,391 |
December 31, 2009 | ||||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
Held To Maturity
|
||||||||||||||||
Government Sponsored Entities (GSE) mortgage-backed securities
|
$ | 12,809 | $ | 348 | $ | — | $ | 13,157 | ||||||||
Collateralized mortgage obligations (GSE)
|
3,667 | 29 | (24 | ) | 3,672 | |||||||||||
State and municipal tax-exempt bonds
|
5,454 | 105 | — | 5,559 | ||||||||||||
State and municipal taxable bonds
|
22,236 | 294 | (1,176 | ) | 21,354 | |||||||||||
Total
|
$ | 44,166 | $ | 776 | $ | (1,200 | ) | $ | 43,742 | |||||||
Available For Sale
|
||||||||||||||||
US Government agency obligations
|
$ | 62,168 | $ | 64 | $ | (172 | ) | $ | 62,060 | |||||||
Government Sponsored Entities (GSE) mortgage-backed securities
|
59,593 | 432 | (181 | ) | 59,844 | |||||||||||
Collateralized mortgage obligations (GSE)
|
11,723 | 64 | (37 | ) | 11,750 | |||||||||||
Corporate bonds
|
22,752 | 54 | (611 | ) | 22,195 | |||||||||||
Equity securities
|
32 | — | (19 | ) | 13 | |||||||||||
Total
|
$ | 156,268 | $ | 614 | $ | (1,020 | ) | $ | 155,862 |
June 30, 2010
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Total
Fair Value
|
Total
Unrealized
Loss
|
Fair value
Impaired
Less Than
12 Months
|
Unrealized
Loss
Less Than
12 Months
|
Fair value
Impaired
More Than
12 Months
|
Unrealized
Loss
More Than
12 Months
|
||||||||||||||||||
Available For Sale
|
||||||||||||||||||||||||
Corporate Bonds
|
$ | 5,956 | $ | (42 | ) | $ | 4,190 | $ | (14 | ) | $ | 1,766 | $ | (28 | ) | |||||||||
GSE mortgage-backed securities
|
6,916 | (22 | ) | 6,916 | (22 | ) | — | — | ||||||||||||||||
Equity securities
|
12 | (15 | ) | — | — | 12 | (15 | ) | ||||||||||||||||
Total
|
$ | 12,884 | $ | (79 | ) | $ | 11,106 | $ | (36 | ) | $ | 1,778 | $ | (43 | ) |
December 31, 2009
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Total
Fair Value
|
Total
Unrealized
Loss
|
Fair value
Impaired
Less Than
12 Months
|
Unrealized
Loss
Less Than
12 Months
|
Fair value
Impaired
More Than
12 Months
|
Unrealized
Loss
More Than
12 Months
|
||||||||||||||||||
Held To Maturity
|
||||||||||||||||||||||||
Collateralized mortgage obligations (GSE)
|
$ | 2,202 | $ | (24 | ) | $ | 1,123 | $ | (2 | ) | $ | 1,079 | $ | (22 | ) | |||||||||
State and municipal taxable
|
12,679 | (1,176 | ) | 6,546 | (169 | ) | 6,133 | (1,007 | ) | |||||||||||||||
Total
|
$ | 14,881 | $ | (1,200 | ) | $ | 7,669 | $ | (171 | ) | $ | 7,212 | $ | (1,029 | ) | |||||||||
Available For Sale
|
||||||||||||||||||||||||
Corporate Bonds
|
$ | 12,239 | $ | (611 | ) | $ | 5,877 | $ | (308 | ) | $ | 6,362 | $ | (303 | ) | |||||||||
US Government agency obligations
|
29,863 | (172 | ) | 29,863 | (172 | ) | — | — | ||||||||||||||||
Collateralized mortgage obligations (GSE)
|
7,134 | (37 | ) | 7,134 | (37 | ) | — | — | ||||||||||||||||
GSE mortgage-backed securities
|
11,896 | (181 | ) | 11,896 | (181 | ) | — | — | ||||||||||||||||
Equity securities
|
13 | (19 | ) | — | — | 13 | (19 | ) | ||||||||||||||||
Total
|
$ | 61,145 | $ | (1,020 | ) | $ | 54,770 | $ | (698 | ) | $ | 6,375 | $ | (322 | ) |
Held to Maturity
|
Available for Sale
|
|||||||||||||||
(Dollars in thousands)
|
Amortized
Cost
|
Estimated
Fair Value
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||||||||
Due in one year or less
|
$ | 2,032 | $ | 2,057 | $ | 2,573 | $ | 2,572 | ||||||||
Due after one year through five years
|
— | — | 63,578 | 63,874 | ||||||||||||
Due after five years through ten years
|
5,635 | 6,002 | 7,746 | 7,772 | ||||||||||||
Due after ten years
|
3,535 | 3,591 | 106,026 | 107,161 | ||||||||||||
No stated maturity
|
— | — | 27 | 12 | ||||||||||||
Total investment securities
|
$ | 11,202 | $ | 11,650 | $ | 179,950 | 181,391 |
Six Months Ended June 30
|
||||||||
(Dollars in thousands)
|
2010
|
2009
|
||||||
Gross realized gains-AFS
|
$ | 1,168 | $ | 599 | ||||
Gross realized gains-HTM
|
178 | — | ||||||
Gross realized losses-AFS
|
168 | 48 | ||||||
Gross realized losses-HTM
|
203 | — | ||||||
Net realized gain
|
$ | 975 | $ | 551 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
June 30, 2010
|
June 30, 2010
|
|||||||||||||||||||||||
(In thousands, except per-share data)
|
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
||||||||||||||||||
Basic EPS
|
||||||||||||||||||||||||
Income available to common stockholders
|
$ | 792 | 2,632 | $ | 0.30 | $ | 1,313 | 2,626 | $ | 0.50 | ||||||||||||||
Effect of potential dilutive common stock equivalents– stock options, restricted shares and warrants
|
— | — | — | — | — | — | ||||||||||||||||||
Diluted EPS
|
||||||||||||||||||||||||
Income available to common stockholders after assumed conversions
|
$ | 792 | 2,632 | $ | 0.30 | $ | 1,313 | 2,626 | $ | 0.50 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
June 30, 2009
|
June 30, 2009
|
|||||||||||||||||||||||
(In thousands, except per-share data)
|
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
||||||||||||||||||
Basic EPS
|
||||||||||||||||||||||||
Income (loss) available to common stockholders
|
$ | (186 | ) | 2,603 | $ | (.07 | ) | $ | 195 | 2,603 | $ | 0.07 | ||||||||||||
Effect of potential dilutive common stock equivalents– stock options, restricted shares and warrants
|
— | — | — | — | — | — | ||||||||||||||||||
Diluted EPS
|
||||||||||||||||||||||||
Income (loss) available to common stockholders after assumed conversions
|
$ | (186 | ) | 2,603 | $ | (.07 | ) | $ | 195 | 2,603 | $ | 0.07 |
Three Months Ended
|
Three Months Ended
|
|||||||
June 30, 2010
|
June 30, 2009
|
|||||||
(Dollars in thousands)
|
Net-of-Tax Amount
|
Net-of-Tax Amount
|
||||||
Net income (loss)
|
$ | 947 | $ | (39 | ) | |||
Other Comprehensive Income (loss):
|
||||||||
Unrealized holding gains (losses) arising during the period
|
1,250 | — | ||||||
Accretion of discount on AFS to HTM reclassification
|
380 | 12 | ||||||
Reclassification for (gains) losses included in net income – AFS
|
(201 | ) | (33 | ) | ||||
Total Comprehensive Income (Loss)
|
$ | 2,376 | $ | (60 | ) | |||
Six Months Ended
|
Six Months Ended
|
|||||||
June 30, 2010
|
June 30, 2009
|
|||||||
(Dollars in thousands)
|
Net-of-Tax Amount
|
Net-of-Tax Amount
|
||||||
Net Income
|
$ | 1,622 | $ | 440 | ||||
Other Comprehensive Income (Loss):
|
||||||||
Unrealized holding gains (losses) arising during the period
|
1,878 | (564 | ) | |||||
Accretion of discount on AFS to HTM reclassification
|
392 | 35 | ||||||
Reclassification for (gains) losses included in net income – AFS
|
(660 | ) | (364 | ) | ||||
Unrealized actuarial losses- pension
|
— | — | ||||||
Total Comprehensive Income (Loss)
|
$ | 3,232 | $ | (453 | ) |
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(Dollars in thousands)
|
Net-of-Tax Amount
|
Net-of-Tax Amount
|
||||||
Net unrealized gain (loss) on AFS securities
|
$ | 950 | $ | (268 | ) | |||
Discount on AFS to HTM reclassification
|
— | (392 | ) | |||||
Unrealized actuarial losses-pension
|
(787 | ) | (787 | ) ) | ||||
Total of all items above
|
$ | 163 | $ | (1,447 | ) |
June 30,
|
December 31,
|
|||||||
(Dollars in thousands)
|
2010
|
2009
|
||||||
Commercial mortgage
|
$ | 186,942 | $ | 172,117 | ||||
Commercial term and lines of credit
|
94,304 | 87,778 | ||||||
Consumer
|
52,154 | 55,504 | ||||||
Residential mortgage
|
34,747 | 40,951 | ||||||
Commercial leases
|
2,037 | 3,077 | ||||||
Gross loans and leases
|
370,184 | $ | 359,427 | |||||
Allowance for credit losses
|
(6,028 | ) | (5,477 | ) | ||||
Net loans and leases
|
$ | 364,156 | $ | 353,950 |
(Dollars in thousands)
|
Three Months
Ended June 30,
2010
|
Year Ended
December 31,
2009
|
||||||
Beginning balance
|
$ | 5,856 | $ | 4,586 | ||||
Provisions
|
400 | 1,325 | ||||||
Charge-offs
|
(219 | ) | (595 | ) | ||||
Recoveries
|
(9 | ) | 161 | |||||
Ending balance
|
$ | 6,028 | $ | 5,477 |
|
|
|||||||
Number
Outstanding
|
Weighted Average
Exercise Price
|
|||||||
Outstanding January 1, 2010
|
169,503 | $ | 19.19 | |||||
Granted
|
44,600 | 6.93 | ||||||
Exercised
|
– | – | ||||||
Expired
|
(9,419 | ) | (9.23 | ) | ||||
Forfeited
|
– | – | ||||||
Outstanding June 30, 2010
|
204,684 | $ | 16.98 |
|
||||||||
Number
Outstanding
|
Weighted Average
Exercise Price
|
|||||||
Outstanding January 1, 2009
|
191,247 | $ | 19.03 | |||||
Granted
|
– | – | ||||||
Exercised
|
– | – | ||||||
Expired
|
(19,229 | ) | (17.40 | ) | ||||
Forfeited
|
(2,515 | ) | (20.24 | ) | ||||
Outstanding June 30, 2009
|
169,503 | $ | 19.19 |
June 30, 2010
|
||||||||||
Range of
Exercise Prices
|
Number
Outstanding
|
Weighted Average
Exercise Price
|
Remaining
Contractual Life
|
|||||||
$ 6.93-10.99 | 44,600 | $ | 6.93 |
6.82 years
|
||||||
11.00-13.99 | 9,414 | 11.16 |
1.00 years
|
|||||||
14.00-19.99 | 82,805 | 17.44 |
4.48 years
|
|||||||
20.00-22.99 | 19,824 | 22.78 |
4.48 years
|
|||||||
23.00-24.27 | 48,041 | 24.27 |
4.80 years
|
|||||||
Total
|
204,684 | $ | 16.98 |
4.91 years
|
||||||
Intrinsic value
|
$ | 2,230 |
June 30, 2009
|
||||||||||
Range of
Exercise Prices
|
Number
Outstanding
|
Weighted Average
Exercise Price
|
Remaining Contractual Life
|
|||||||
$ 9.23-10.99 | 9,419 | $ | 9.23 |
1.00 years
|
||||||
11.00-13.99 | 9,414 | 11.16 |
2.00 years
|
|||||||
14.00-19.99 | 82,805 | 17.44 |
5.48 years
|
|||||||
20.00-22.99 | 19,824 | 22.78 |
5.48 years
|
|||||||
23.00-24.27 | 48,041 | 24.27 |
5.80 years
|
|||||||
Total
|
169,503 | $ | 19.19 |
5.13 years
|
||||||
Intrinsic value
|
$ | — |
Shares
|
Weighted Average Grant Date Fair Value
|
|||||||
Outstanding - January 1, 2010
|
24,101 | $ | 13.43 | |||||
Granted
|
14,200 | 6.93 | ||||||
Forfeited
|
(500 | ) | 9.55 | |||||
Vested
|
(1,275 | ) | 12.26 | |||||
Outstanding - June 30, 2010
|
36,526 | $ | 11.00 | |||||
Shares
|
Weighted Average Grant Date Fair Value
|
|||||||
Outstanding - January 1, 2009
|
24,574 | $ | 13.49 | |||||
Granted
|
- | - | ||||||
Forfeited
|
(473 | ) | 16.14 | |||||
Vested
|
- | - | ||||||
Outstanding - June 30, 2009
|
24,101 | $ | 13.43 |
June 30, 2010
|
||||||||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Assets at
Fair Value
|
||||||||||||
Assets Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
Securities available for sale
|
$ | 12 | $ | 181,379 | $ | — | $ | 181,391 | ||||||||
Total assets measured at fair value on a recurring basis
|
$ | 12 | $ | 181,379 | $ | — | $ | 181,391 | ||||||||
Assets Measured at Fair Value on a Nonrecurring Basis
|
||||||||||||||||
Impaired loans
|
$ | — | $ | — | $ | 6,474 | $ | 6,474 | ||||||||
OREO & other repossessed property
|
— | — | 3,700 | 3,700 | ||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | — | $ | — | $ | 10,174 | $ | 10,174 |
December 31, 2009
|
||||||||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Assets at
Fair Value
|
||||||||||||
Assets Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
Securities available for sale
|
$ | 13 | $ | 155,849 | $ | — | $ | 155,862 | ||||||||
Total assets measured at fair value on a recurring basis
|
$ | 13 | $ | 155,849 | $ | — | $ | 155,862 | ||||||||
Assets Measured at Fair Value on a Nonrecurring Basis
|
||||||||||||||||
Impaired loans
|
$ | — | $ | — | $ | 2,966 | $ | 2,966 | ||||||||
OREO & other repossessed property
|
— | — | 4,489 | 4,489 | ||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | — | $ | — | $ | 7,455 | $ | 7,455 |
June 30, 2010
|
December 31, 2009
|
|||||||||||||||
(Dollars in thousands)
|
Carrying
Amount
|
Estimated
Fair
Value
|
Carrying
Amount
|
Estimated
Fair
Value
|
||||||||||||
Financial assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 28,539 | $ | 28,539 | $ | 43,832 | $ | 43,832 | ||||||||
AFS Investment securities
|
181,391 | 181,391 | 155,862 | 155,862 | ||||||||||||
HTM Investment securities
|
11,202 | 11,650 | 44,166 | 43,742 | ||||||||||||
Restricted Stock
|
4,365 | 4,365 | 4,067 | 4,067 | ||||||||||||
Loans and leases, net of allowance
|
364,156 | 360,181 | 353,950 | 346,986 | ||||||||||||
Accrued interest receivable
|
2,416 | 2,416 | 2,703 | 2,703 | ||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
501,378 | 500,210 | 507,347 | 503,552 | ||||||||||||
Borrowings
|
58,067 | 61,082 | 70,171 | 73,782 | ||||||||||||
Junior subordinated debentures
|
9,279 | 7,249 | 9,279 | 5,647 | ||||||||||||
Accrued interest payable
|
556 | 556 | 743 | 743 | ||||||||||||
Off-balance sheet instruments
|
– | – | – | – |
|
•
|
Focus on penetrating markets and allowing existing locations to maximize profitability
|
|
•
|
Grow loans and diversify the mix
|
|
•
|
Improve asset quality
|
|
•
|
Reduce long-term borrowings
|
|
•
|
Focus on profitable customer segments
|
|
•
|
Grow and diversify non-interest income, primarily in the wealth management area
|
|
•
|
Focus on reducing DNB’s cost of funds by changing DNB’s mix of deposits
|
|
•
|
Focus on cost containment and improving operational efficiencies
|
Risk Category
|
|||||
I
|
|||||
Minimum
|
Maximum
|
II
|
III
|
IV
|
|
Annual rates (in basis points)
|
12
|
16
|
22
|
32
|
45
|
Risk Category
|
||||
I
|
II
|
III
|
IV
|
|
Initial base assessment rate
|
12 to 16
|
22
|
32
|
45
|
Unsecured debt adjustment
|
(5) to 0
|
(5) to 0
|
(5) to 0
|
(5) to 0
|
Secured liability adjustment
|
0 to 8
|
0 to 11
|
0 to 16
|
0 to 22.5
|
Brokered deposit adjustment
|
—
|
0 to 10
|
0 to 10
|
0 to 10
|
Total base assessment rate
|
7 to 24
|
17 to 43
|
27 to 58
|
40 to 77.5
|
|
-
|
The law permanently raises the federal deposit insurance limit to $250,000 per account ownership. This change may have the effect of increasing losses to the FDIC insurance fund on future failures of other insured depository institutions.
|
|
-
|
The new law makes deposit insurance coverage unlimited in amount for non-interest bearing transaction accounts until December 31, 2012. This change may also have the effect of increasing losses to the FDIC insurance fund on future failures of other insured depository institutions.
|
|
-
|
The law increases the insurance fund’s minimum designated reserve ratio from 1.15 to 1.35, and removes the current 1.50 cap on the reserve ratio. The law gives the FDIC discretion to suspend or limit the declaration or payment of dividends even when the reserve ratio exceeds the minimum designated reserve ratio.
|
|
|
•
|
Changes in the nature and volume of the portfolio and in the terms of loans.
|
|
•
|
Changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans.
|
|
•
|
The existence and effect of any concentrations of credit, and changes in the level of such concentrations.
|
|
•
|
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses.
|
|
•
|
Changes in the experience, ability, and depth of lending management and other relevant staff.
|
|
•
|
Changes in the quality of the institution’s loan review system.
|
|
•
|
Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio, including the condition of various market segments.
|
|
•
|
The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio.
|
|
•
|
Changes in the value of underlying collateral for collateral-dependent loans.
|
(Dollars in thousands) |
Six Months Ended
June 30,
2010
|
Year Ended
December 31,
2009
|
Six Months Ended
June 30,
2009
|
|||||||||
Beginning balance
|
$ | 5,477 | $ | 4,586 | $ | 4,586 | ||||||
Provisions
|
826 | 1,325 | 400 | |||||||||
Charge-offs
|
(301 | ) | (595 | ) | (90 | ) | ||||||
Recoveries
|
26 | 161 | 24 | |||||||||
Ending balance
|
$ | 6,028 | $ | 5,477 | $ | 4,920 |
June 30, 2010
|
December 31, 2009
|
June 30, 2009
|
||||||||||
Non-accrual loans:
|
||||||||||||
Residential mortgages
|
$ | 2,766 | $ | 3,081 | $ | 3,171 | ||||||
Commercial mortgages
|
803 | 1,317 | 541 | |||||||||
Commercial term loans
|
4,853 | 4,374 | 3,610 | |||||||||
Commercial leases
|
143 | 157 | 238 | |||||||||
Consumer loans
|
3 | 62 | — | |||||||||
Total non-accrual loans
|
8,568 | 8,991 | 7,560 | |||||||||
Loans 90 days past due and still accruing
|
335 | 191 | 651 | |||||||||
Troubled debt restructurings
|
— | — | — | |||||||||
Total non-performing loans
|
8,903 | 9,182 | 8,211 | |||||||||
Other real estate owned & other repossessed property
|
3,700 | 4,489 | 4,751 | |||||||||
Total non-performing assets
|
$ | 12,603 | $ | 13,671 | $ | 12,962 | ||||||
Asset quality ratios:
|
||||||||||||
Non-performing loans to total loans
|
2.41 | % | 2.55 | % | 2.46 | % | ||||||
Non-performing assets to total assets
|
2.04 | 2.16 | 2.13 | |||||||||
Allowance for credit losses to:
|
||||||||||||
Total loans and leases
|
1.63 | 1.52 | 1.48 | |||||||||
Non-performing loans and leases
|
67.71 | 59.6 | 59.92 |
Three Months Ended
|
Year Ended
|
Three Months Ended
|
||||||||||
(Dollars in thousands)
|
June 30,
2010
|
December 31,
2009
|
June 30,
2009
|
|||||||||
Interest income which would have been
|
||||||||||||
recorded under original terms
|
$ | 217 | $ | 505 | $ | 209 | ||||||
Interest income recorded during the period
|
(8 | ) | (89 | ) | (29 | |||||||
Net impact on interest income
|
$ | 209 | $ | 416 | $ | 180 |
Six Months Ended
|
Year Ended
|
Six Months Ended
|
||||||||||
(Dollars in thousands)
|
June 30,
2010
|
December 31,
2009
|
June 30,
2009
|
|||||||||
Total recorded investment
|
$ | 8,998 | $ | 8,991 | $ | 7,560 | ||||||
Impaired loans with a specific allowance
|
7,396 | 3,497 | 2,680 | |||||||||
Impaired loans without a specific allowance
|
1,601 | 5,494 | 4,880 | |||||||||
Average recorded investment
|
9,113 | 7,901 | 6,715 | |||||||||
Specific allowance allocation
|
922 | 531 | 296 | |||||||||
Total cash collected
|
1,386 | 654 | 468 | |||||||||
Interest income recorded
|
56 | 46 | 40 |
For Capital
|
To Be Well Capitalized Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes
|
Action Provisions
|
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
DNB Financial Corporation
|
||||||||||||||||||||||||
June 30, 2010:
|
||||||||||||||||||||||||
Total risk-based capital
|
$ | 59,469 | 14.90 | % | $ | 31,926 | 8.00 | % | N/A | N/A | ||||||||||||||
Tier 1 capital
|
54,472 | 13.65 | 15,963 | 4.00 | N/A | N/A | ||||||||||||||||||
Tier 1 (leverage) capital
|
54,472 | 8.88 | 24,528 | 4.00 | N/A | N/A | ||||||||||||||||||
December 31, 2009:
|
||||||||||||||||||||||||
Total risk-based capital
|
$ | 58,184 | 14.27 | % | $ | 32,609 | 8.00 | % | N/A | N/A | ||||||||||||||
Tier 1 capital
|
53,088 | 13.02 | 16,304 | 4.00 | N/A | N/A | ||||||||||||||||||
Tier 1 (leverage) capital
|
53,088 | 8.33 | 25,486 | 4.00 | N/A | N/A | ||||||||||||||||||
DNB First, N.A.
|
||||||||||||||||||||||||
June 30, 2010:
|
||||||||||||||||||||||||
Total risk-based capital
|
$ | 59,160 | 14.84 | % | $ | 31,892 | 8.00 | % | $ | 39,865 | 10.00 | % | ||||||||||||
Tier 1 capital
|
54,163 | 13.59 | 15,946 | 4.00 | 23,919 | 6.00 | ||||||||||||||||||
Tier 1 (leverage) capital
|
54,163 | 8.84 | 24,510 | 4.00 | 30,638 | 5.00 | ||||||||||||||||||
December 31, 2009:
|
||||||||||||||||||||||||
Total risk-based capital
|
$ | 57,388 | 14.09 | % | $ | 32,574 | 8.00 | % | $ | 40,718 | 10.00 | % | ||||||||||||
Tier 1 capital
|
52,292 | 12.85 | 16,287 | 4.00 | 24,431 | 6.00 | ||||||||||||||||||
Tier 1 (leverage) capital
|
52,292 | 8.21 | 25,467 | 4.00 | 31,834 | 5.00 |
June 30, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
Change in rates
|
Flat
|
-200 | bp | +200 | bp |
Flat
|
-200 | bp | +200 | bp | ||||||||||||||
EVE
|
$ | 42,658 | $ | 38,529 | $ | 36,279 | $ | 39,095 | $ | 43,264 | $ | 28,920 | ||||||||||||
Change
|
(4,129 | ) | (6,379 | ) | 4,169 | (10,175 | ) | |||||||||||||||||
Change as a percent of assets
|
(.67 | %) | (1.0 | % ) | .7 | % | (1.6 | % ) | ||||||||||||||||
Change as a percent of PV equity
|
(9.7 | %) | (14.9 | % ) | 10.7 | % | (26.0 | % ) |
Period
|
Total Number
Of Shares Purchased
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans or
Programs (a)
|
||||||||||||
April 1, 2010 – April 30, 2010
|
— | $ | — | — | 63,016 | |||||||||||
May 1, 2010 – May 31, 2010
|
— | — | — | 63,016 | ||||||||||||
June 1, 2010 – June 30, 2010
|
— | — | — | 63,016 | ||||||||||||
Total
|
— | $ | — | — |
|
DNB FINANCIAL CORPORATION
|
||
August 13, 2010
|
BY:
|
/s/ William S. Latoff
|
William S. Latoff, Chairman of the
Board and Chief Executive Officer
|
||
August 13, 2010
|
BY:
|
/s/ Gerald F. Sopp
|
Gerald F. Sopp, Chief Financial Officer
and Executive Vice President
|
||
(h)**
|
Form of Stock Option Agreement for grants prior to 2005 under the Registrant’s Stock Option Plan, filed May 11, 2005 as Item 10(n) to Form 10-Q for the fiscal quarter ended March 31, 2005 (No. 0-16667) and incorporated herein by reference.
|
|
(i)**
|
Form of Nonqualified Stock Option Agreement for April 18, 2005 and subsequent grants prior to April 23, 2010 under the Stock Option Plan, filed May 11, 2005 as Item 10(o) to Form 10-Q for the fiscal quarter ended March 31, 2005 (No. 0-16667) and incorporated herein by reference.
|
|
(j)
|
Agreement of Sale dated June 1, 2005 between DNB First, National Association (the “Bank”), as seller, and Papermill Brandywine Company, LLC, a Pennsylvania limited liability company, as buyer (“Buyer”) with respect to the sale of the Bank’s operations center and an adjunct administrative office (the “Property”) and accompanying (i) Agreement of Lease between the Buyer as landlord and the Bank as tenant, pursuant to which the Property will be leased back to the Bank, and (ii) Parking Easement Agreement to provide cross easements with respect to the Property, the Buyer’s other adjoining property and the Bank’s other adjoining property, filed August 15, 2005 as Item 10(p) to Form 10-Q for the fiscal quarter ended June 30, 2005 (No. 0-16667) and incorporated herein by reference.
|
|
(k)
|
Agreement of Lease dated November 18, 2005 between Papermill Brandywine Company, LLC, a Pennsylvania limited liability company (“Papermill”), as Lessor, and DNB First, National Association as Lessee for the banks operations center and adjunct administrative office, filed March 23, 2006 as Item 10(q) to Form 10-K for the fiscal year ended December 31, 2005 (No. 0-16667) and incorporated herein by reference.
|
|
(l)*
|
Amended and Restated Change of Control Agreement among DNB Financial Corporation, DNB First, N.A. and William J. Hieb, filed May 15, 2007 as Item 10(l) to Form 10-Q for the fiscal quarter ended March 31, 2007 (No. 0-16667) and incorporated herein by reference.
|
|
(m)**
|
Form of Nonqualified Stock Option Agreement for grants on and after December 22, 2005 and prior to April 23, 2010 under the Stock Option Plan, filed March 23, 2006 as Item 10(s) to Form 10-K for the fiscal year ended December 31, 2005 (No. 0-16667) and incorporated herein by reference.
|
|
(n)*
|
Deferred Compensation Plan For Directors of DNB Financial Corporation (adopted effective October 1, 2006), filed November 14, 2006 as Item 10(s) to Form 10-Q for the fiscal quarter ended September 30, 2006 (No. 0-16667) and incorporated herein by reference.
|
|
(o)*
|
DNB Financial Corporation Deferred Compensation Plan (adopted effective October 1, 2006), filed November 14, 2006 as Item 10(t) to Form 10-Q for the fiscal quarter ended September 30, 2006 (No. 0-16667) and incorporated herein by reference.
|
|
(p)*
|
Trust Agreement, effective as of October 1, 2006, between DNB Financial Corporation and DNB First, National Association (Deferred Compensation Plan), filed November 14, 2006 as Item 10(u) to Form 10-Q for the fiscal quarter ended September 30, 2006 (No. 0-16667) and incorporated herein by reference.
|
|
(q)*
|
Change of Control Agreements among DNB Financial Corporation, DNB First, N.A. and each of the following executive officers, each in the form filed March 26, 2007 as item 10(q) to Form 10-K for the fiscal year-ended December 31, 2006 (No. 0-16667) and incorporated herein by reference: Albert J. Melfi, Jr. and Gerald F. Sopp.
|
|
(r)*
|
DNB Financial Corporation Supplemental Executive Retirement Plan for William S. Latoff as amended and restated effective April 1, 2007, filed May 15, 2007 as Item 10(r) to Form 10-Q for the fiscal quarter ended March 31, 2007 (No. 0-16667) and incorporated herein by reference, as further amended by Amendment dated December 8, 2008, filed March 31, 2009 as item 3(r) to Form 10-K for the fiscal year-ended December 31, 2008 (No. 0-16667) and incorporated herein by reference.
|
|
(s)*
|
Trust Agreement effective as of December 20, 2006 between DNB Financial Corporation and DNB First, N.A. (William S. Latoff SERP), filed March 26, 2007 as item 10(s) to Form 10-K for the fiscal year-ended December 31, 2006 (No. 0-16667) and incorporated herein by reference, as modified by Agreement to Terminate Trust dated as of April 1, 2007, filed May 15, 2007 as Item 10(s) to Form 10-Q for the fiscal quarter ended March 31, 2007 (No. 0-16667) and incorporated herein by reference.
|
|
(t)*
|
DNB Offer Letter to Albert J. Melfi, Jr., dated November 10, 2006, filed March 26, 2005 as item 10(t) to Form 10-K for the fiscal year-ended December 31, 2006 (No. 0-16667) and incorporated herein by reference.
|
|
(u)*
|
DNB Offer Letter to Gerald F. Sopp, dated December 20, 2006, filed March 26, 2007 as item 10(u) to Form 10-K for the fiscal year-ended December 31, 2006 (No. 0-16667) and incorporated herein by reference.
|
ATTEST:
|
DNB FINANCIAL CORPORATION
|
|||
/s/ Gerald F. Sopp
|
By:
|
/s/ William J. Hieb
|
||
Print Name: Gerald F. Sopp
|
Print Name: William J. Hieb
|
|||
Title: EVP, Chief Financial Officer
|
Title: President and COO
|
|||
Witness:
|
GRANTEE
|
|||
/s/ Bruce E. Moroney
|
(Signature)
|
/s/ William S. Latoff
|
||
Print Name: Bruce E. Moroney
|
Print Name: William S. Latoff
|
|||
DNB FINANCIAL CORPORATION
By: ________________________________
Print Name: __________________________
Title: _______________________________
|
Grantee:
________________________________
(Signature)
Print Name: _______________________
|
From: ______________________________
(Grantee Name)
|
Date: __________________, 20____
|
Tel.No. (______) _______ - ___________
|
Address:
_______________________________
_______________________________
|
Federal Income Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
F.I.C.A. Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
Pennsylvania Personal Income Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine))
|
|
Local Earned Income Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
Subtotal of withholding taxes
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
Total Remittance
|
$ __________. ____
|
DNB FINANCIAL CORPORATION
By: ________________________________
Print Name: __________________________
Title: _______________________________
|
Grantee:
________________________________
(Signature)
Print Name: _______________________
|
From: ______________________________
(Grantee Name)
|
Date: __________________, 20____
|
Tel.No. (______) _______ - ___________
|
Address:
_______________________________
_______________________________
|
Federal Income Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
F.I.C.A. Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
Pennsylvania Personal Income Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine))
|
|
Local Earned Income Tax Withholding
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
Subtotal of withholding taxes
|
$ __________. ____
|
(Contact Payroll to Determine)
|
|
Total Remittance
|
$ __________. ____
|
ATTEST:
|
DNB FINANCIAL CORPORATION
|
|
By:
|
||
Witness:
|
GRANTEE
|
|
signature
|
||
ATTEST:
|
DNB FINANCIAL CORPORATION
|
|
|
By:
|
|
Witness:
|
GRANTEE
|
|
signature
|
||
ATTEST:
|
BY:
|
|
Name:
|
Name:
|
|
Witness:
|
GRANTEE
|
|
|
||
|
||
Name:
|
Name:
|