DNB Financial Corporation has reported that the harsh winter weather conditions throughout the first quarter of 2014 had a slight negative impact on revenue, particularly in consumer spending and mortgage lending.

DNB Financial is the parent company of DNB First National Association, the region’s oldest nationally-chartered community bank with 13 branches in Chester and Delaware counties.

For the first quarter, net income was $1 million compared to $1.18 million for the first quarter of 2013. Earnings reflected year-over-year interest income growth driven by accelerating lending activity, and interest expense reduction, offset by higher non-interest expense related to the company’s investment in expanded lines of business and revenue-producing personnel.

“Our first quarter financial performance continued to reflect the consistent progress we are making to build the value of the DNB franchise for shareholders,” said William S. Latoff, chairman and chief executive officer.

Despite unusually severe weather, which offered its share of challenges and expenses, DNB demonstrated clear traction from numerous growth and performance improvement initiatives,” he said. “Commercial lending was strong in the first quarter, reflecting healthy growth in loan balances from year-end 2013 and compared to the first quarter of 2013. We have supported lending activities through core deposit growth, leading to a decline in interest expense.”

Latoff said DNB is enthusiastic about the prospects of generating new revenues from a growing wealth management business and establishing DNB First as a full-service community bank with expanded mortgage lending and retail banking capabilities.

Latoff also said branch upgrades and selective staff realignments within branch offices reflect a strategic shift to a business model that will improve DNB’s ability to offer retail customers an integrated suite of financial solutions with less emphasis on branch-related transactional activities. He said the company has designed incentive-based programs to drive multiple services and expanded client relationships.

The full financial report is here: http://investors.dnbfirst.com/corporateprofile.aspx?iid=100765