Chester County banks report quarterly earnings

DNB Financial Corp. reported on Tuesday a net income of $2.4 million, or 56 cents per diluted share, for the quarter ending Sept. 30, compared with $1,000, or less than a penny per share, for the same quarter last year. Earnings for the 2016 quarter included merger-related expenses of $1.5 million.

For the nine months ending Sept. 30, DNB’s net income was $7.1 million, or $1.66 per diluted share, compared with $2.7 million, or 93 cents per diluted share, for the same period last year.

DNB Financial Corp. is the parent company of DNB First NA, one of the first nationally-chartered community banks to serve the greater Philadelphia region.

On Oct. 1, 2016, the company completed its acquisition of Philadelphia-based East River Bank and its results are included in the consolidated results for the periods ended Dec. 31, 2016, March 31, 2017, June 30, 2017, and September 30, 2017, but are not included in the results of operations for any other periods.

“Our third quarter results serve as an important milestone in the successful execution of DNB’s long term strategies,” said William J. Hieb, president and CEO. “We continue to invest in the future by making critical hires and enhancing our technology to ensure the superior service our customers expect. Although the lending environment remains highly competitive, we are pleased to report that asset quality remained strong with net chargeoffs amounting to just two basis points of total average loans.”

First Priority earnings

MALVERN » First Priority Financial Corp., parent of First Priority Bank, reported on Friday a net income for the nine months ended Sept. 30 with an increase of 45 percent to $2.27 million, or 31 cents per basic common share and 30 cents per fully diluted common share. In the 2016 quarter, First Priority reported profits of $1.56 million, 19 cents per share.

Third quarter net income totaled $719,000, or around 10 cents a share, a 51 percent increase compared to $476,000 reported in the 2016 third quarter.

For the first nine months of 2017, income to common shareholders, after preferred dividends, totaled $2.04 million, a 65 percent increase over the prior year nine month period of $1.23 million.

In August 2016, Bancorp Bank, the Wilmington-based loan and payments company, sold $64 million in loans to First Priority.

“Our company’s operating performance for the current quarter and first nine months of 2017 has increased significantly from the comparable 2016 periods, reflecting the impact of the $64 million loan and relationship purchase completed in August 2016,” said David E. Sparks, chairman and CEO. “We have also continued to experience strong asset quality as non-performing loans totaled 0.16 percent of total loans, strong deposit growth as total deposits exceeded $500 million for the first

time, and we have maintained our focus on prudent expense control ... “

Sparks said the bank is working toward a deeper penetration into Chester County, “which we anticipate from the opening of our new West Chester branch office in the first quarter of 2018.”

First Resource earnings

WEST WHITELAND » First Resource Bank announced on Tuesday financial results for the three months that ended Sept. 30. Highlights include:

• Net income was $461,704, an increase of 39 percent over the third quarter of 2016;

• Non-interest bearing deposits grew 8 percent;

• The net interest margin expanded from 3.87 percent in the second quarter to 3.96 percent in the third quarter;

• $42,000 in gains on sales of SBA loans were recognized.

“The third quarter of 2017 was the seventh consecutive quarter with increasing profitability,” said Glenn B. Marshall, president and CEO of Exton-based bank. “In the first nine months of 2017 we have already surpassed net income for the entire year in 2016. Our deposit growth has been focused on business checking and strategies implemented are yielding solid results. We are very happy with the performance of our West Chester branch which has grown in excess of $55 million in deposits since opening in April 2014.”

Net income for the quarter ended Sept. 30, 2017 was $461,704, which compares to $417,701 for the previous quarter and $332,009 for the third quarter of the prior year.

Net income for the nine months ended Sept. 30, 2017 was $1,3 million, a 44 percent increase over the same period in the prior year.