LEWIS CENTER, Ohio, Oct. 22, 2030 (PRIMEZONE) -- DCB Financial Corp (OTCBB:DCBF) today announced third quarter earnings of $0.26 per share for the three months ended September 30, 2003, a 44% increase over 2002 third quarter earnings per share of $0.18. For the nine months ended September 2003, earnings per share were $0.93 compared to $0.81 for the comparable nine-month period in 2002. Net income for the third quarter of 2003 was $1.012 million, compared to $757 thousand for the same quarter in 2002. For the 2003 nine-month period, net income was $3.719 million and $3.380 million in 2002.
The Corporation's net interest margin declined during the 2003 quarter due to the overall decline in interest rates in the economy and the success of our new Platinum Savings Plus account, with a high introductory rate. The net interest margin is expected to rebound in the fourth quarter as rates stabilize and the introductory period expires. Loans grew by 5% from September 2002 to September 2003. Checking and savings grew by 15% in the same period. Credit quality continues to improve as does productivity. Net charge offs for the first nine months of 2003 were .31% compared to .69% for the same nine-month period in 2002. Full time equivalent head count continues to decline as planned, from 208 as of September 30, 2002 to 189 on September 30, 2003. Return on assets for the nine-month period ending September 30, 2003 was .95% compared to .87% in 2002.
"While our overall performance is not consistent with our long-term goals, we are making good progress," said Jeff Benton, President and CEO. "The Corporation's net interest margin has been negatively impacted by declining rates and the introductory rate on our Platinum Savings Plus product rollout, but should improve next quarter when the introductory rate ends and other initiatives take effect. During the 2003 quarter, our credit quality improved, numerous expense control initiatives helped lower our costs and most other revenue sources increased. We are pleased with the steady progress and optimistic about the future."
The DCB Board of Directors has declared a dividend of $0.10 per share payable on November 17, 2003 to shareholders of record October 30, 2003.