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2006 was a year of rapid and dramatic change for our institution. The Bank's first branch office was opened
in Cinnaminson, and, so far, has greatly surpassed our expectations in both the loan and deposit areas. The Bank has completed its community offering and subscription through Delanco Bancorp, Inc., and received
subscription offerings for 735,626 shares, including the Bank's employee stock option plan. The offering was for $10.00 per share, and represents 45% of our outstanding stock. This was the initial public
offering of common stock of Delanco Bancorp, Inc. The remaining 55% is owned by Delanco Mutual Holding Company.
For the 12-month period ending March 31, 2007 the Bank had a loss of $799.00 after accounting for the sale of
investment securities and before tax effect. However, on a consolidated basis, we had a profit of $2,699.00 combined with the Mutual Holding Company. The year-ended financial figures as presented are
unaudited, with the final closing entries including tax effect to be completed by the middle of May 2007.
Total assets increased by $36,323,441.00 for a total of $111,896,009.00. Total deposits increased by
$29,525,447.00 for a total of $96,108,694.00. Mortgages, exclusive of commercial and consumer loans, numbering 198 were approved and processed for a total of $21,812,439.00. Commercial loans totaling 119
were approved for a total of $22,587,467. Finally, 48 consumer loans were approved for a total of $821,210.00.
2006 REVIEW
In 2006, additional steps were taken to prepare for the future as we continued to lay a solid foundation for
growth. As previously mentioned, the Bank's first branch was opened, and the Bank successfully completed its first community stock offering. The Bank continued to expand our personnel in both the
residential and commercial loan areas. Additional support staff was added to assist our lenders in these departments. Additionally, two Board members were added to bring the total to nine.
We experienced a continued decline in net interest revenue. From all indications, unless something
unexpected and dramatic happens to our economy, we should expect a continued flat and possibly inverted yield curve.
OUR PRIORITIES
For 2007 and beyond, we have the following priorities:
To continue to expand our distribution, to directly include the Cinnaminson area and those market areas
contiguous to that general region along the Route 130 corridor. We have expanded our residential and commercial loan market area to include South Jersey and parts of Pennsylvania to broaden our impact and
lessen our concentration levels.
CORPORATE RESPONSIBILITIES
Our Bank continues, and has expanded, its participation in loans through the Thrift Institution Community
Investment Corporation of New Jersey (TICIC), an organization that offers assistance for low to moderate income persons on a percentage in new construction or renovated projects. TICIC is a wholly owned
subsidiary of the New Jersey League of Community Bankers, which provides its members a facility to pool resources to provide long-term and affordable senior housing in New Jersey.
We will continue to assist those local churches, charities, community groups and organizations which we believe
will need either the use of our facilities or help in fundraising activities.
We will continue to be a socially responsible institution to our stockholders, customers, neighbors and friends.
We will continue to show our appreciation to our employees in many ways. As has been the custom, the Bank
sets aside one day each year as Employee Appreciation Day. Our employees are treated with gifts and a catered luncheon. We also wish to extend our appreciation to our employees for helping to make the
opening of our Cinnaminson office such a success.
OUR PEOPLE
The following individuals were either transferred or given new assignments during the year in the following
positions:
Tony Taranto – CSR
Nicole D'Amato – Loan Processor
Danielle Seaman – Loan Processor
Lisa Nelson – Administrative Assistant
We welcomed new members John Latimer and Renee Vidal to our Board of Directors.
In addition, the following changes were made in 2006, but will not become effective until October of
2007: Robert Notigan to Vice-Chairman, and Douglas Allen to President and CEO.
I would like to take a few moments to extend my gratitude and appreciation for the assistance provided by the
following individuals during the difficult and time consuming task of raising equity capital through the issuance of common stock, as discussed earlier:
Douglas Allen Lisa Nelson
Robert Miller Danielle Seaman
John Seiber Pam Innamorato
Alice Bowers
Once again, I want to extend my appreciation to our directors, officers and employees for the effort put forward
by everyone during the dramatic changes that took place during the past year.
Sincerely,
Robert M. Notigan
President and CEO
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