William F. Cunningham
Finishing out a tough year on a slightly more positive note, the parent company of Delaware County Bank this week announced a fourth-quarter 2010 loss of $354,000.
That’s a better performance than fourth quarter 2009 — which netted a $2.1 million lost. But it brings DCB Financial Corps.’ total losses to $12.3 million in 2010.
That’s more than three times a net loss of $4.2 million in 2009, according to a press release filed with the U.S. Securities and Exchange Commission this week.
The bank in the fourth quarter continued a process to get its loan portfolio under control and reduces its expenses, Interim CEO David Folkwein said in a written statement. That has included implementing a voluntary early retirement program for some employees.
“Those initiatives, coupled with other cost savings measures will allow us to improve the company’s overall expense trends, which are consistent with the overall lower level of earning assets that we are carrying … said Chief Financial Officer John Ustaszewski in a written statement.
Folkwein added: “We’ve had to make some difficult decisions over the past year, and the process of addressing our issues has not been easy, particularly in the current economy. We continue to focus on becoming a stronger company, and continue to explore all options which may benefit our customers, our community our shareholders and the company.”
The news comes on the tail end of a substantial acquisition from an out-of-state investment firm. Last month, Boston-based Wellington Management Co. purchased 188,748 shares, or 5.08 percent of DCB Financial, according to Columbus Business First. That made Wellington the bank’s largest single investor, the newspaper reported.
The bank’s parent company closed at $3.55 a share on Tuesday. That’s down from a 52-week high of $7.25 in April 2010, but up from a low of $3.02 in late December.
DCB Financial Corp. had a turbulent 2010, resulting in an announcement last November that the bank would enter into an agreement with state and federal regulators for more stringent monitoring.
Former DCB CEO Jeff Benton resigned last June after seven years with the company. Folkwein said at the time that Benton left for personal reasons.
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