EX-99.1 2 ex-99d1.htm EX-99.1 dbcp_Ex99_1

Exhibit 99.1

 

November 7, 2019

 

Delmar Bancorp Reports Continued Profitability for the Third Quarter of 2019

 

SALISBURY, MD., November 7, 2019 -- Delmar Bancorp (OTCQX:DBCP), the parent company of The Bank of Delmarva, Seaford, Delaware, announced net income of $4.9 million for the first nine months of 2019. This is an increase of 25.0% over 2018 earnings for the same period.

 

Net interest income before the provision for credit losses increased from September 30, 2018 to September 30,  2019 by  $1.6 million or 7.8%, and the provision for credit losses increased by $75,000.  Operating overhead increased by $247,000 for the same period.

 

Earnings in the first three quarters of 2018 were significantly impacted by the merger with Liberty Bell Bank.  During the first nine months of 2018 the Bank expensed approximately $1.3 million related to the merger in other operating expenses.

 

During December of 2018 Delmar announced a share exchange with Virginia Partners Bank, located in Fredericksburg, Virginia.  Costs related to the share exchange included in other operating expenses at September 30, 2019 were approximately $539,000.

 

In addition to an increase in income, Delmar’s assets grew by $53.4 million or 7.2% in the first nine months of 2019.  The most significant portion of this increase was in cash and cash equivalents, which grew by $46.4 million over the first nine months of the year.  The Bank increased available-for-sale investment securities by 8.9% from the end of the prior year.  Loan balances increased by $1.1 million from the end of 2018.  Loan growth over the 12 month period ending September 30, 2019 was $11.3 million or 1.8%.  The growth in cash and cash equivalents was the result of an increase in deposits of $45.5 million or 7.4% during the first three quarters of 2019 and $38.4 million or 6.2%  over the prior year third quarter balances.  Most of this growth was in certificate of deposits and non-interest bearing demand accounts.  Tangible book value per share increased from $5.79 to $6.56 or 13.3% over the twelve month period from September 30, 2018 to September 30, 2019.

 

The Company paid a cash dividend to common stockholders of $.025 per share for each of the first three 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

September 30, 2019 and 2018

December 31, 2018

 

 

 

 

 

 

 

 

 

 

    

September 30,

    

September 30,

    

December 31,

ASSETS

 

 

2019

 

2018

 

2018

Cash and due from banks

 

$

31,483,246 

 

27,348,745 

 

24,346,568 

Federal funds sold

 

 

29,143,286 

 

3,116,179 

 

1,254,413 

Interest bearing deposits in other banks

 

 

15,458,101 

 

3,942,736 

 

4,093,198 

Investment securities Available-for-sale, at fair value

 

 

55,854,096 

 

53,587,851 

 

51,300,284 

Loans, less allowance for credit losses 2019 $7,054,420; 2018 $7,225,823

 

 

626,607,475 

 

615,301,196 

 

625,513,347 

Accrued interest receivable on investment securities and loans

 

 

2,097,507 

 

2,066,644 

 

2,102,891 

Bank premises and equipment, at cost net of accumulated depreciation 2019 $14,619,371; 2018 $14,123,139

 

 

10,134,386 

 

10,598,916 

 

10,047,960 

Federal Home Loan Bank stock, at cost

 

 

2,761,400 

 

2,377,700 

 

2,651,800 

Atlantic Central Bankers Bank stock, at cost

 

 

131,250 

 

131,250 

 

131,250 

Maryland Financial Bank stock

 

 

— 

 

30,000 

 

— 

Other real estate owned

 

 

3,640,696 

 

4,103,304 

 

3,660,354 

Intangible assets

 

 

6,079,567 

 

6,432,095 

 

6,306,067 

Other assets

 

 

9,452,763 

 

9,051,425 

 

8,007,592 

Total assets

 

$

792,843,773 

 

738,088,041 

 

739,415,724 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

Non-interest bearing demand

 

$

202,983,129 

 

187,622,249 

 

185,475,609 

Interest bearing demand

 

 

56,137,609 

 

53,891,674 

 

54,481,160 

Savings and money market

 

 

124,722,120 

 

132,224,315 

 

123,948,577 

Time deposits

 

 

276,558,369 

 

248,304,967 

 

251,020,001 

Total deposits

 

 

660,401,227 

 

622,043,205 

 

614,925,347 

Short-term borrowings

 

 

— 

 

— 

 

7,000,000 

Long-term borrowings

 

 

55,495,000 

 

50,153,571 

 

49,988,929 

Accrued interest payable on deposits

 

 

567,260 

 

341,369 

 

391,579 

Other liabilities

 

 

4,820,560 

 

1,382,108 

 

1,121,817 

Total liabilities

 

 

721,284,047 

 

673,920,253 

 

673,427,672 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Common stock, par value $.01, authorized 20,000,000 shares: issued and outstanding 2019 9,985,321 shares; 2018 9,975,707 shares

 

 

99,853 

 

99,757 

 

99,853 

Surplus

 

 

29,486,105 

 

29,441,212 

 

29,469,680 

Retained earnings

 

 

41,335,411 

 

35,864,891 

 

37,149,484 

Accumulated other comprehensive gain (loss), net of deferred (taxes) benefit 2019 ($230,082); 2018 $446,106

 

 

638,357 

 
(1,238,072)

 
(730,965)

Total stockholders' equity

 

 

71,559,726 

 

64,167,788 

 

65,988,052 

Total liabilities and stockholders' equity

 

$

792,843,773 

 

738,088,041 

 

739,415,724 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share

 

$

6.56 

 

5.79 

 

5.98 

 

The Consolidated Statements of Financial Condition as of September 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 STATEMENTS OF INCOME

Nine Months Ended September 30, 2019 and 2018

 

 

 

 

 

 

 

 

INTEREST INCOME ON

    

 

2019

    

 

2018

Loans, including fees

 

$

25,916,357 

 

$

22,696,275 

Investment securities

 

 

 

 

 

 

Taxable

 

 

518,105 

 

 

464,580 

Exempt from federal income tax

 

 

445,051 

 

 

410,524 

Federal funds sold

 

 

81,380 

 

 

86,425 

Other interest income

 

 

526,492 

 

 

359,754 

 

 

 

27,487,385 

 

 

24,017,558 

INTEREST EXPENSE ON

 

 

 

 

 

 

Deposits

 

 

4,387,459 

 

 

2,657,851 

Borrowings

 

 

1,274,145 

 

 

1,117,066 

 

 

 

5,661,604 

 

 

3,774,917 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

 

21,825,781 

 

 

20,242,641 

Provision for credit losses

 

 

900,000 

 

 

825,000 

 

 

 

 

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

 

 

20,925,781 

 

 

19,417,641 

 

 

 

 

 

 

 

OTHER INCOME

 

 

2,729,129 

 

 

2,321,703 

 

 

 

 

 

 

 

OTHER EXPENSES

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,458,875 

 

 

8,164,522 

Premises and equipment

 

 

2,731,793 

 

 

2,347,203 

(Gains) losses on sales of other assets

 

 

— 

 

 
(9,043)

Losses on other real estate owned

 

 

38,529 

 

 

141,651 

Amortization

 

 

226,500 

 

 

294,000 

Other operating expenses

 

 

5,097,053 

 

 

5,367,657 

 

 

 

16,552,750 

 

 

16,305,990 

 

 

 

 

 

 

 

INCOME BEFORE TAXES ON INCOME

 

 

7,102,160 

 

 

5,433,354 

 

 

 

 

 

 

 

Federal and state income taxes

 

 

2,167,330 

 

 

1,484,843 

 

 

 

 

 

 

 

NET INCOME

 

$

4,934,830 

 

$

3,948,511 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.49 

 

$

0.40 

 

The Consolidated Statements of Financial Condition as of September 30, 2019 and 2018 presented herein are unaudited but include all adjustments which, in Management's opinion, are necessary for fair presentation.