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The year ending March 31, 2008 marked the end of our first year as a public company. We experienced many
changes in the way we do business due not only to the economic climate in our geographic area, but in the country. Nevertheless our total assets grew 18.4% to $131,529,756. Our deposits grew by 22.5% to
$118,772,533. Our branch in Cinnaminson, soon to be two years old, grew approximately $14,000,000 while the Delanco branch, after years of only modest growth, grew by just over $11,000,000.
Our loan portfolio grew by 125 loans including all areas of lending. Total loans increased to
$97,565,664. Our residential mortgage portfolio grew by 26.8% or $8,625,148. The commercial loan portfolio also showed a significant increase of 36.1% or $8,064,993, while our home equity and consumer
loans grew by 7.3% or $1,805,489.
For the twelve-month period ending March 31, 2008 the Bank sustained a loss of $1,482,343 before tax
effect. On a consolidated basis, combined with Delanco Mutual Holding Company, we had a loss of $1,418,521 and a loss net of tax effect of $1,065,927 after allocating $1,450,000 to provision for loan
losses. However, the Bank achieved a profit from operations of $31,478.91 before income taxes and $384,073.08 after tax effect.
Recent economic developments have had an impact on our business. The slowdown in housing sales, as well as
the general feeling of our customers concerning the economy, has impacted our ability to grow our loan portfolio. As a result, the Bank has invested in additional Mortgage Backed Securities offered by the
government-sponsored agencies Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.
OUR PEOPLE
The Bank experienced many internal changes as well. I would like to welcome the following individuals:
James Igo – Executive Vice President – Chief Operating Officer
Kyle Schwesig – Vice President – Financial Analyst
Eva Modi – Vice President – Accounting
Mary Bonnett – Executive Secretary
Christy Giguinto – Loan Processor
We also added several part time tellers to better manage peak times and customer flow. I would like to
welcome:
Amanda Fleming
Lynn Hulton
Melissa Shively
I would also like to acknowledge Kate Plunkett for her promotion to Assistant Vice President.
Without our dedicated employees our success could never be assured.
LOOKING AHEAD
We have taken advantage of the slowdown in the economy by using our time to better equip the Bank for the
future. We have proceeded with several internal and financial audits to ensure that our processes in place meet regulatory and generally accepted accounting guidelines. Our internal processes are always
being modified so that we can offer the best service possible to our customers.
We have planned several changes for the Bank in the near future, not the least of which is to convert our core
processing to Fiserv Inc., a world wide financial processing center located in Brookfield, Wisconsin. This change will allow the bank to offer opportunities to our customers such as a more robust retail and
commercial on-line banking product, a full suite of commercial deposit products, and on-line real time Automated Teller Machines. Fiserv, Inc. has a history of consistent, successful conversions and proven
technology that will carry the Bank well into the 21st century.
OUR RESPONSIBILITIES
The Board of Directors and employees of Delanco Federal Savings Bank continue to support our customers and the
residents of our local communities. Many of our employees are active on various committees and associations within the towns where they live. We support the youth of our communities by sponsoring sports
teams, school, church and community events, Boy Scout and Girl Scout Troops and many other community based organizations. It is our pleasure to support the people of the communities we serve.
We continue to support the efforts of the many housing related groups of Burlington County and the State of New
Jersey. We continue to expand our role as a member of the Thrift Institution Community Investment Corporation of New Jersey (TICIC). This organization is a subsidiary of the New Jersey League of Community
Bankers. The organization develops relationships in order to sponsor affordable senior housing in New Jersey.
CONCLUSION
It is my honor to serve as President and Chief Executive Officer of the Delanco Federal Savings Bank. I
would like to extend my appreciation for the support of the Board of Directors, the employees of the Bank and the many customers whom I serve. I look forward to the many changes that will take place over the
next several years. Thank you.
Sincerely,
Douglas R. Allen, Jr.
President and CEO
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