UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8‑K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 1, 2019
Delmar Bancorp
(Exact name of registrant as specified in its charter)
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Maryland |
033-21202 |
52‑1559535 |
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(State or other jurisdiction |
(Commission file number) |
(IRS Employer |
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of incorporation) |
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Number) |
2245 Northwood Drive, Salisbury, Maryland 21801
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (410) 548‑1100
Check the appropriate box below if the Form 8‑K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)
☐ Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))
☐ Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c))
Securities Registered under Section 12(b) of the Act: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b‑2 of the Securities Exchange Act of 1934 (17 CFR §240.12b‑2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operation and Financial Condition.
On August 1, 2019, Delmar Bancorp issued a press release reporting its financial results for the period ended June 30, 2019, a copy of which is furnished as an exhibit to this report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
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Number |
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Description |
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99.1 |
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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DELMAR BANCORP |
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By: |
/s/ John W. Breda |
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John W. Breda, President &Chief Executive Officer |
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Dated: August 1, 2019 |
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Exhibit 99.1
August 1, 2019
Delmar Bancorp Reports Continued Profitability for the Second Quarter of 2019
SALISBURY, MD., August 1, 2019 -- Delmar Bancorp (OTCQX:DBCP), the parent company of The Bank of Delmarva, Seaford, Delaware, announced net income of $3.2 million for Delmar Bancorp, the holding company for The Bank of Delmarva, for the first six months of 2019. This is an increase of 52.9% over 2018 earnings for the same period.
Net interest income before the provision for credit losses increased from June 30, 2018 to June 30, 2019 by $1.5 million or 11.3%, and the provision for credit losses increased by $75,000. Operating overhead decreased by $91,000 for the same period.
Earnings in the first half of 2018 were significantly impacted by the merger with Liberty Bell Bank. During the first half of 2018 the Bank expensed approximately $1.2 million related to the merger in other operating expenses.
During December of 2018 the Bank announced a share exchange with Virginia Partners Bank, located in Fredericksburg, Virginia. Costs related to the share exchange included in other operating expenses at June 30, 2019 were approximately $371,000.
In addition to an increase in income, Delmar’s assets grew by $30.8 million or 4.2% in the first six months of 2019. The Bank’s loan portfolio, net of the allowance, grew by $14.1 million or 2.3% from the end of December through June. Loan growth over the 12 month period ending June 30, 2019 was $41.1 million or 6.9%. Loan growth was funded by an increase in deposits of $24.6 million or 4.0% during the first two quarters of 2019 and $20.8 million or 3.4% over the prior year second quarter balances. Most of this growth was in certificate of deposits and interest bearing demand accounts. Tangible book value per share increased from $5.57 to $6.38 or 14.5% over the twelve month period from June 30, 2018 to June 30, 2019.
The Company paid a cash dividend to common stockholders of $.025 per share for the first and second quarters of 2019. The Board Directors of Delmar Bancorp is committed to returning capital to shareholders in the form of cash dividends with the expectation that the cash dividend will increase as earnings continue to grow.
For further information contact John W. Breda, President and Chief Executive Officer, 410-548-1100 extension 18112 or Betsy Holland, Chief Financial Officer, CPA, 410-548-1722 extension 18305.
DELMAR BANCORP
CONSOLIDATED BALANCE SHEET
June 30, 2019 and 2018
December 31, 2018
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June 30, |
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June 30, |
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December 31, |
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ASSETS |
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2019 |
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2018 |
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2018 |
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Cash and due from banks |
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$ |
16,374,830 |
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16,838,524 |
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24,346,568 |
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Federal funds sold |
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7,394,896 |
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10,519,986 |
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1,254,413 |
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Interest bearing deposits in other banks |
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20,808,726 |
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21,394,075 |
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4,093,198 |
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Investment securities Available-for-sale, at fair value |
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50,916,855 |
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51,076,811 |
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51,300,284 |
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Loans, less allowance for credit losses 2019 $7,065,562; 2018 $7,095,962 |
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639,648,960 |
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598,545,606 |
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625,513,347 |
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Accrued interest receivable on investment securities and loans |
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2,234,750 |
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1,941,675 |
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2,102,891 |
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Bank premises and equipment, at cost net of accumulated depreciation 2019 $14,505,400; 2018 $13,886,480 |
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9,952,875 |
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10,599,779 |
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10,047,960 |
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Federal Home Loan Bank stock, at cost |
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2,761,400 |
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2,377,700 |
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2,651,800 |
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Atlantic Central Bankers Bank stock, at cost |
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131,250 |
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131,250 |
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131,250 |
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Maryland Financial Bank stock |
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— |
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30,000 |
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— |
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Other real estate owned |
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3,681,768 |
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4,143,804 |
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3,660,354 |
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Intangible assets |
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6,155,067 |
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7,219,086 |
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6,306,067 |
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Other assets |
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10,160,288 |
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8,846,867 |
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8,007,592 |
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Total assets |
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$ |
770,221,665 |
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733,665,163 |
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739,415,724 |
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LIABILITIES |
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Deposits |
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Non-interest bearing demand |
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$ |
194,656,415 |
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185,864,288 |
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185,475,609 |
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Interest bearing demand |
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53,645,589 |
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53,820,532 |
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54,481,160 |
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Savings and money market |
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116,457,374 |
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135,832,442 |
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123,948,577 |
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Time deposits |
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274,756,538 |
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243,181,576 |
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251,020,001 |
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Total deposits |
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639,515,916 |
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618,698,838 |
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614,925,347 |
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Short-term borrowings |
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— |
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— |
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7,000,000 |
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Long-term borrowings |
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55,659,643 |
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50,318,214 |
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49,988,929 |
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Accrued interest payable on deposits |
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516,092 |
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302,398 |
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391,579 |
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Other liabilities |
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4,700,774 |
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1,559,513 |
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1,121,817 |
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Total liabilities |
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700,392,425 |
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670,878,963 |
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673,427,672 |
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STOCKHOLDERS' EQUITY |
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Common stock, par value $.01, authorized 20,000,000 shares: issued and outstanding 2019 9,985,321 shares; 2018 9,974,679 shares |
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99,853 |
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99,747 |
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99,853 |
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Surplus |
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29,480,630 |
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29,427,054 |
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29,469,680 |
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Retained earnings |
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39,800,484 |
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34,226,030 |
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37,149,484 |
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Accumulated other comprehensive gain (loss), net of deferred (taxes) benefit 2019 ($161,584); 2018 $348,290 |
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448,273 |
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Total stockholders' equity |
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69,829,240 |
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62,786,200 |
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65,988,052 |
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Total liabilities and stockholders' equity |
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$ |
770,221,665 |
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733,665,163 |
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739,415,724 |
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Tangible Book Value per Common Share |
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$ |
6.38 |
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5.57 |
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5.98 |
The Consolidated Statements of Financial Condition as of June 30, 2019 and 2018 presented herein are unaudited but include all adjustments which, in Management's opinion, are necessary for fair presentation.
DELMAR BANCORP
CONSOLIDATED STATEMENT OF INCOME
Six Months Ended June 30, 2019 and 2018
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INTEREST INCOME ON |
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2019 |
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2018 |
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Loans, including fees |
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$ |
17,228,358 |
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14,587,491 |
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Investment securities |
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Taxable |
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347,535 |
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307,142 |
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Exempt from federal income tax |
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291,305 |
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274,200 |
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Federal funds sold |
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23,034 |
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38,078 |
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Other interest income |
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311,231 |
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220,267 |
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18,201,463 |
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15,427,178 |
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INTEREST EXPENSE ON |
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Deposits |
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2,831,700 |
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1,652,051 |
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Borrowings |
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838,488 |
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721,015 |
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3,670,188 |
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2,373,066 |
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NET INTEREST INCOME |
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14,531,275 |
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13,054,112 |
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Provision for credit losses |
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600,000 |
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525,000 |
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NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
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13,931,275 |
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12,529,112 |
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OTHER INCOME |
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1,560,157 |
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1,498,844 |
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OTHER EXPENSES |
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Salaries and employee benefits |
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5,670,888 |
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5,469,262 |
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Premises and equipment |
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Amortization |
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151,000 |
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168.000 |
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Other operating expenses |
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3,327,147 |
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3,875,113 |
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10,983,350 |
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11,074,820 |
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INCOME BEFORE TAXES ON INCOME |
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4,508,082 |
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2,953,136 |
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Federal and state income taxes |
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1,357,815 |
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892,887 |
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NET INCOME |
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$ |
3,150,267 |
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2,060,249 |
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Basic earnings per common share |
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$ |
0.32 |
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0.21 |
The Consolidated Statements of Financial Condition as of June 30, 2019 and 2018 presented herein are unaudited but include all adjustments which, in Management's opinion, are necessary for fair presentation.