Delmar Bancorp (DBCP)

[norweger1979]

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.

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https://www.bankofdelmarvahb.com/home/about-us/investor-relations