Delanco Bancorp [Nj] (DLNO)

Description:

Delanco Bancorp Inc was organized in 2002 as a federal corporation. The Company's business activity is the ownership of the outstanding capital stock of Delanco Federal Savings Bank. The Bank operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its market area. It attracts deposits from the general public and uses those funds to originate a variety of consumer and business loans. It offers three types of residential mortgage loans: fixed-rate loans, balloon loans and adjustable-rate loans. It offers fixed-rate mortgage loans with terms of 15, 20 or 30 years and balloon mortgage loans with terms of five, ten or 15 years. It offers adjustable-rate mortgage loans with interest rates and payments that adjust annually after an initial fixed period of one or three years. The Company originates loans to individuals and, to a lesser extent, builders to finance the construction of residential dwellings. It also makes construction loans for small commercial development projects. The Company's construction loans generally provide for the payment of interest only during the construction phase, which is usually nine months for residential properties and 12 months for commercial properties. It offers fixed- and adjustable-rate mortgage loans secured by a variety of commercial and multi-family real estate, such as small office buildings, warehouses, retail properties and small apartment buildings. It offers commercial business loans to professionals, sole proprietorships and small businesses in its market area. It offers installment loans for capital improvements, equipment acquisition and long-term working capital. These loans are secured by business assets other than real estate, such as business equipment and inventory, or are backed by the personal guarantee of the borrower. The Company originates lines of credit to finance the working capital needs of businesses to be repaid by seasonal cash flows or to provide a period of time during which the business could borrow funds for planned equipment purchases. It also offers accounts receivable lines of credit. The Company's consumer loans consist mainly of home equity loans and lines of credit. It occasionally makes loans secured by passbook or certificate accounts and automobile loans. It offers home equity loans with a maximum combined loan to value ratio of 80% or less. It faces significant competition for the attraction of deposits and origination of loans. The Company's direct competition for deposits has historically come from the many financial institutions operating in its market area and, to a lesser extent, from other financial service companies such as brokerage firms, credit unions and insurance companies. Several large holding companies operate banks in its market area, including Bank of America, Wachovia (now part of Wells Fargo & Company), TD Bank and PNC Bank. Delanco Federal Savings Bank is subject to extensive regulation, examination and supervision by the OTS, as its primary federal regulator, and the Federal Deposit Insurance Corporation, as its deposits insurer.