DUNMORE, Pa., April 22, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. $(FDBC)$ and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three-month period ended March 31, 2026.
Unaudited Financial Information
Net income for the quarter ended March 31, 2026 was $7.5 million, or $1.28 per diluted share, compared to $6.0 million, or $1.03 per diluted share, for the quarter ended March 31, 2025. The $1.5 million, or 25%, increase in net income resulted primarily from a $2.4 million increase in net interest income coupled with a $0.2 million increase in non-interest income. This was partially offset by a $0.6 million increase in non-interest expense and a $0.6 million increase in the provision for credit losses on the growth of loans and unfunded commitments.
"We are pleased to report strong first quarter results for 2026," said Daniel J. Santaniello, President and Chief Executive Officer. "Fidelity Bank reached quarter-end assets of $2.9 billion, delivering a 25% year-over-year increase in net income to $7.5 million and a 24% increase in diluted earnings per share. These results reflect solid asset growth, consistent operational execution, and continued strength across our core businesses. I am grateful to our bankers whose expertise, collaboration, and commitment continue to drive our performance and support our shared success as we carry this momentum forward."
Consolidated First Quarter Operating Results Overview
Net interest income was $19.4 million for the first quarter of 2026, representing a 14% increase over the $17.0 million earned for the first quarter of 2025. The $2.4 million increase in net interest income resulted from the increase of $2.2 million in interest income primarily due to a $160.6 million increase in the average balance of interest-earning assets and a 4 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yields. The loan portfolio had the most significant impact, producing a $2.0 million increase in FTE interest income from $132.8 million in higher quarterly average balances and an increase of 5 basis points in FTE loan yields. Additionally, the Company experienced an increase of $0.6 million in interest earned from interest-bearing deposits with other financial institutions from $77.3 million in higher average balances. The increase in interest income was coupled with a $0.2 million decrease in interest expense due to a 22 basis points decrease in rates paid on interest-bearing deposits which more than offset the increase from $138.0 million in higher average balances compared to the first quarter of 2025.
The FTE yield on interest-earning assets was 4.77% for the first quarter of 2026, an increase of 4 basis points from 4.73% for the first quarter of 2025. The overall cost of interest-bearing liabilities was 2.27% for the first quarter of 2026, a decrease of 22 basis points from the 2.49% for the first quarter of 2025. The cost of funds decreased 16 basis points from 1.93% to 1.77% for the first quarters of 2025 and 2026, respectively. The Company's FTE net interest spread was 2.50% for the first quarter of 2026, an increase of 26 basis points from 2.24% recorded for the first quarter of 2025. FTE net interest margin increased to 3.08% for the three months ended March 31, 2026 from 2.89% for the same period of 2025.
For the three months ended March 31, 2026, the provision for credit losses on loans was $875 thousand and the provision for credit losses on unfunded commitments was $90 thousand, compared to a $455 thousand provision for credit losses on loans and a $85 thousand net benefit in the provision for credit losses on unfunded loan commitments for the three months ended March 31, 2025. For the three months ended March 31, 2026, the increase in the provision for credit losses on loans compared to the prior year period was due to significantly higher loan growth. For the three months ended March 31, 2026, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to the originated growth in the portfolio, specifically in commercial construction commitments.
Total non-interest income increased $0.2 million, or 4%, to $5.2 million for the first quarter of 2026 compared to $5.0 million for the first quarter of 2025. The increase in non-interest income was primarily attributed to increases of $0.4 million in fees from commercial loans with interest rate hedges and $0.3 million in wealth management revenue with the largest contributor being personal trust fees. These increases were partially offset by a $0.6 million lower gain on sold loans due to a $0.5 million gain on the sale of a commercial loan during the first quarter of 2025. Additionally, the Company saw an increase of $0.2 million in commercial loan late fees due to two substandard loans that were paid off in the first quarter of 2026.
Non-interest expenses increased $0.6 million, or 4%, for the first quarter of 2026 to $15.2 million from $14.6 million for the same quarter of 2025. The increase in non-interest expenses was attributed to the increases in salaries and benefits expense of $0.4 million primarily due to an increase in the number of bankers and incentive-based compensation throughout the quarter.
The provision for income taxes decreased $0.1 million during the three months ended March 31, 2026 compared to the same period in 2025 primarily due to a $0.5 million discount recognized in the provision from utilizing/applying purchased renewable energy tax credits in the first quarter of 2026.
Consolidated Balance Sheet & Asset Quality Overview
The Company's total assets had a balance of $2.9 billion as of March 31, 2026, an increase of $111.2 million from December 31, 2025. The increase resulted from $111.9 million of growth in the loans and leases portfolio as of March 31, 2026 compared to December 31, 2025. Cash and cash equivalents increased $6.9 million and premises and equipment increased $3.8 million over the same period. Asset growth was offset by a decrease of $11.6 million in the investment portfolio primarily due to the sale of $5.8 million in available-for-sale securities and $5.1 million in paydowns.
During the same time period, total liabilities increased $105.4 million, or 4%. Deposit growth of $109.1 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $63.5 million in money market deposits, $19.6 million in interest-bearing checking accounts, and $10.6 million in savings and clubs; these increases were partially offset by a $6.7 million decrease in time deposits. Additionally, the Company experienced an increase of $22.2 million in non-interest-bearing checking accounts. As of March 31, 2026, the ratio of insured and collateralized deposits to total deposits was approximately 73%.
Shareholders' equity increased $5.8 million, or 2%, to $244.7 million at March 31, 2026 from $238.9 million at December 31, 2025. The increase was caused by $4.9 million higher retained earnings from net income of $7.5 million plus a $0.4 million, after tax, improvement in accumulated other comprehensive income, partially offset by $2.5 million in cash dividends paid to shareholders. An additional $0.5 million was recorded from the issuance of common stock under the Company's stock plans and restricted stock activity. At March 31, 2026, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.38% of total average assets as of March 31, 2026. Total risk-based capital was 14.45% of risk-weighted assets and Tier 1 risk-based capital was 13.33% of risk-weighted assets as of March 31, 2026. Tangible book value per share was $38.67 at March 31, 2026 compared to $37.88 at December 31, 2025. Tangible common equity decreased to 7.91% of total assets at March 31, 2026 compared to 8.01% at December 31, 2025 due to a 4% increase in total tangible assets compared to a 3% increase in tangible common equity.
Asset Quality
Total non-performing assets were $2.4 million, or 0.09% of total assets, at March 31, 2026, compared to $2.2 million, or 0.08% of total assets, at December 31, 2025. Past due and non-accrual loans to total loans were 0.28% at March 31, 2026 compared to 0.26% at December 31, 2025. Net charge-offs to average total loans were 0.02% at March 31, 2026 compared to 0.03% at December 31, 2025.
About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank
Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank ("Fidelity Bank"). Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company's vision is to serve as the best bank for the community, which was accomplished by having provided over 6,190 hours of volunteer time and over $1.5 million in donations to non-profit organizations directly within the markets served throughout 2025. Fidelity Bank's deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The Company's non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company's operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Adjusted non-interest income used in the calculation of certain non-GAAP performance measures excludes gains and losses on securities sales in order to enhance comparability between reporting periods. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.
Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent ("FTE"), in order to calculate certain ratios within this document. This treatment allows a uniform comparison among yields on interest-earning assets. Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2026 and 2025. FTE adjustments affect interest income and related ratios only and do not impact reported GAAP net income.
Forward-looking statements
Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words "expect," "anticipate," "intend," "plan," "believe," "estimate," and similar expressions are intended to identify such forward-looking statements.
The Company's actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:
-- local, regional and national economic conditions and changes thereto;
-- the short-term and long-term effects of inflation, and rising costs to
the Company, its customers and on the economy;
-- the risks of changes and volatility of interest rates on the level and
composition of deposits, loan demand, and the values of loan collateral,
securities and interest rate protection agreements, as well as interest
rate risks;
-- securities markets and monetary fluctuations and volatility;
-- disruption of credit and equity markets;
-- impacts of the capital and liquidity requirements of the Basel III
standards and other regulatory pronouncements, regulations and rules;
-- governmental monetary and fiscal policies, as well as legislative and
regulatory changes;
-- effects of short- and long-term federal budget and tax negotiations and
their effect on economic and business conditions;
-- the costs and effects of litigation and of unexpected or adverse outcomes
in such litigation;
-- the impact of new or changes in existing laws and regulations, including
laws and regulations concerning taxes, banking, securities and insurance
and their application with which the Company and its subsidiaries must
comply;
-- the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies, as well as the Financial Accounting
Standards Board and other accounting standard setters;
-- the effects of competition from other commercial banks, thrifts, mortgage
banking firms, consumer finance companies, credit unions, securities
brokerage firms, insurance companies, money market and other mutual funds
and other financial institutions operating in our market area and
elsewhere, including institutions operating locally, regionally,
nationally and internationally, together with such competitors offering
banking products and services by mail, telephone, computer and the
internet;
-- the effects of economic conditions of any other pandemic, epidemic or
other health-related crisis such as COVID-19 and responses thereto on
current customers and the operations of the Company, specifically the
effect of the economy on loan customers' ability to repay loans;
-- the effects of bank failures, banking system instability, deposit
fluctuations, loan and securities value changes;
-- technological changes;
-- the interruption or breach in security of our information systems,
continually evolving cybersecurity and other technological risks and
attacks resulting in failures or disruptions in customer account
management, general ledger processing and loan or deposit updates and
potential impacts resulting therefrom including additional costs,
reputational damage, regulatory penalties, and financial losses;
-- acquisitions and integration of acquired businesses;
-- the failure of assumptions underlying the establishment of reserves for
loan losses and estimations of values of collateral and various financial
assets and liabilities;
-- acts of war, terrorism, or armed conflict; and
-- the risk that our analyses of these risks and forces could be incorrect
and/or that the strategies developed to address them could be
unsuccessful.
The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information please visit our investor relations web site located through www.bankatfidelity.com.
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
At Period End: March 31, 2026 December 31, 2025
--------------------------------- ---------------- ---------------------
Assets
Cash and cash equivalents $ 154,995 $ 148,060
Investment securities 512,308 523,946
Restricted investments in bank
stock 4,482 4,373
Loans and leases 2,023,671 1,911,724
Allowance for credit losses on
loans (20,942) (20,168)
Premises and equipment, net 52,738 48,950
Life insurance cash surrender
value 59,792 59,396
Goodwill and core deposit
intangible 20,181 20,242
Other assets 52,040 51,535
--------------------------------- ----------- --------------
Total assets $ 2,859,265 $ 2,748,058
--------------------------------- ----------- --------------
Liabilities
Non-interest-bearing deposits $ 574,808 $ 552,581
Interest-bearing deposits 2,001,686 1,914,772
--------------------------------- ----------- --------------
Total deposits 2,576,494 2,467,353
Short-term borrowings 10 20
Secured borrowings 4,825 5,995
Other liabilities 33,284 35,830
--------------------------------- ----------- --------------
Total liabilities 2,614,613 2,509,198
Shareholders' equity 244,652 238,860
--------------------------------- ----------- --------------
Total liabilities and
shareholders' equity $ 2,859,265 $ 2,748,058
--------------------------------- ----------- --------------
Average Year-To-Date Balances: March 31, 2026 December 31, 2025
--------------------------------- ---------------- ---------------------
Assets
Cash and cash equivalents $ 175,362 $ 133,171
Investment securities 523,776 544,390
Restricted investments in bank
stock 4,427 4,189
Loans and leases 1,945,837 1,866,637
Allowance for credit losses on
loans (20,289) (20,315)
Premises and equipment, net 50,358 40,457
Life insurance cash surrender
value 59,656 58,786
Goodwill and core deposit
intangible 20,203 20,358
Other assets 50,183 42,032
--------------------------------- ----------- --------------
Total assets $ 2,809,513 $ 2,689,705
--------------------------------- ----------- --------------
Liabilities
Non-interest-bearing deposits $ 558,264 $ 543,794
Interest-bearing deposits 1,964,972 1,884,507
--------------------------------- ----------- --------------
Total deposits 2,523,236 2,428,301
Short-term borrowings 16 17
Secured borrowings 5,557 6,127
Other liabilities 36,931 36,296
--------------------------------- ----------- --------------
Total liabilities 2,565,740 2,470,741
Shareholders' equity 243,773 218,964
--------------------------------- ----------- --------------
Total liabilities and
shareholders' equity $ 2,809,513 $ 2,689,705
--------------------------------- ----------- --------------
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
(dollars in thousands)
Three Months Ended
-------------------------------------- -------------------------------
Mar. 31, 2026 Mar. 31, 2025
-------------------------------------- --------------- -----------------
Interest income
Loans and leases $ 26,618 $ 24,596
Securities and other 3,842 3,712
-------------------------------------- ---------- ----------
Total interest income 30,460 28,308
Interest expense
Deposits (10,981) (11,187)
Borrowings (73) (88)
-------------------------------------- ---------- ----------
Total interest expense (11,054) (11,275)
-------------------------------------- ---------- ----------
Net interest income 19,406 17,033
Provision for credit losses on
loans (875) (455)
Net (provision) benefit for credit
losses on unfunded loan
commitments (90) 85
Non-interest income 5,189 4,973
Non-interest expense (15,191) (14,554)
-------------------------------------- ---------- ----------
Income before income taxes 8,439 7,082
Provision for income taxes (979) (1,091)
-------------------------------------- ---------- ----------
Net income $ 7,460 $ 5,991
-------------------------------------- ---------- ----------
Three Months Ended
-------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2026 2025 2025 2025 2025
---------------- --------- --------- --------- --------- -----------
Interest income
Loans and
leases $ 26,618 $ 27,269 $ 26,660 $ 25,328 $ 24,596
Securities
and other 3,842 3,815 4,022 4,437 3,712
---------------- ------- ------- ------- ------- -------
Total
interest
income 30,460 31,084 30,682 29,765 28,308
Interest expense
Deposits (10,981) (11,717) (12,158) (11,738) (11,187)
Borrowings (73) (87) (95) (98) (88)
---------------- ------- ------- ------- ------- -------
Total
interest
expense (11,054) (11,804) (12,253) (11,836) (11,275)
---------------- ------- ------- ------- ------- -------
Net
interest
income 19,406 19,280 18,429 17,929 17,033
Provision for
credit
losses on
loans (875) (100) (200) (300) (455)
Net
(provision)
benefit for
credit
losses on
unfunded
loan
commitments (90) (170) (110) (20) 85
Non-interest
income 5,189 5,122 5,105 5,359 4,973
Non-interest
expense (15,191) (14,921) (14,632) (14,710) (14,554)
---------------- ------- ------- ------- ------- -------
Income
before
income
taxes 8,439 9,211 8,592 8,258 7,082
Provision for
income
taxes (979) (1,271) (1,246) (1,337) (1,091)
---------------- ------- ------- ------- ------- -------
Net income $ 7,460 $ 7,940 $ 7,346 $ 6,921 $ 5,991
---------------- ------- ------- ------- ------- -------
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
Mar. 31, Dec. 31, Sep. 30, Jun. 30,
At Period End: 2026 2025 2025 2025 Mar. 31, 2025
------------------------ ----------- ----------- ----------- ----------- -------------
Assets
Cash and cash
equivalents $ 154,995 $ 148,060 $ 142,161 $ 165,495 $ 211,195
Investment securities 512,308 523,946 529,263 545,821 540,960
Restricted
investments in bank
stock 4,482 4,373 4,301 4,240 4,021
Loans and leases 2,023,671 1,911,724 1,914,893 1,837,477 1,817,509
Allowance for credit
losses on loans (20,942) (20,168) (20,218) (19,976) (20,017)
Premises and
equipment, net 52,738 48,950 45,422 40,097 34,995
Life insurance cash
surrender value 59,792 59,396 58,995 58,849 58,458
Goodwill and core
deposit intangible 20,181 20,242 20,303 20,364 20,431
Other assets 52,040 51,535 41,630 46,208 43,758
------------------------ --------- --------- --------- --------- ---------
Total assets $2,859,265 $2,748,058 $2,736,750 $2,698,575 $2,711,310
------------------------ --------- --------- --------- --------- ---------
Liabilities
Non-interest-bearing
deposits $ 574,808 $ 552,581 $ 539,118 $ 558,074 $ 555,684
Interest-bearing
deposits 2,001,686 1,914,772 1,927,795 1,877,254 1,901,775
------------------------ --------- --------- --------- --------- ---------
Total deposits 2,576,494 2,467,353 2,466,913 2,435,328 2,457,459
Short-term borrowings 10 20 20 10 10
Secured borrowings 4,825 5,995 6,059 6,134 6,190
Other liabilities 33,284 35,830 34,511 39,191 35,977
------------------------ --------- --------- --------- --------- ---------
Total liabilities 2,614,613 2,509,198 2,507,503 2,480,663 2,499,636
Shareholders' equity 244,652 238,860 229,247 217,912 211,674
------------------------ --------- --------- --------- --------- ---------
Total liabilities
and shareholders'
equity $2,859,265 $2,748,058 $2,736,750 $2,698,575 $2,711,310
------------------------ --------- --------- --------- --------- ---------
Average Quarterly Mar. 31, Dec. 31, Sep. 30, Jun. 30,
Balances: 2026 2025 2025 2025 Mar. 31, 2025
------------------------ ----------- ----------- ----------- ----------- -------------
Assets
Cash and cash
equivalents $ 175,362 $ 150,706 $ 122,808 $ 161,316 $ 97,384
Investment securities 523,776 529,518 544,476 546,149 557,726
Restricted
investments in bank
stock 4,427 4,345 4,277 4,158 3,973
Loans and leases 1,945,837 1,927,366 1,892,439 1,832,162 1,813,040
Allowance for credit
losses on loans (20,289) (20,478) (20,400) (20,357) (20,019)
Premises and
equipment, net 50,358 47,400 42,602 35,954 35,722
Life insurance cash
surrender value 59,656 59,255 58,875 58,697 58,307
Goodwill and core
deposit intangible 20,203 20,263 20,325 20,386 20,459
Other assets 50,183 39,527 42,724 42,729 43,177
------------------------ --------- --------- --------- --------- ---------
Total assets $2,809,513 $2,757,902 $2,708,126 $2,681,194 $2,609,769
------------------------ --------- --------- --------- --------- ---------
Liabilities
Non-interest-bearing
deposits $ 558,264 $ 549,911 $ 544,511 $ 547,278 $ 533,286
Interest-bearing
deposits 1,964,972 1,930,040 1,901,166 1,878,548 1,826,957
------------------------ --------- --------- --------- --------- ---------
Total deposits 2,523,236 2,479,951 2,445,677 2,425,826 2,360,243
Short-term borrowings 16 20 16 10 22
Secured borrowings 5,557 6,028 6,093 6,162 6,226
Other liabilities 36,931 37,754 36,415 36,050 34,937
------------------------ --------- --------- --------- --------- ---------
Total liabilities 2,565,740 2,523,753 2,488,201 2,468,048 2,401,428
Shareholders' equity 243,773 234,149 219,925 213,146 208,341
------------------------ --------- --------- --------- --------- ---------
Total liabilities
and shareholders'
equity $2,809,513 $2,757,902 $2,708,126 $2,681,194 $2,609,769
------------------------ --------- --------- --------- --------- ---------
FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Financial Data
Three Months Ended
---------------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2026 2025 2025 2025 2025
-------------------- ----------- ----------- ----------- ----------- -----------
Selected returns and
financial ratios
--------------------
Basic earnings
per share $ 1.29 $ 1.38 $ 1.27 $ 1.20 $ 1.04
Diluted earnings
per share $ 1.28 $ 1.37 $ 1.27 $ 1.20 $ 1.03
Dividends per
share $ 0.43 $ 0.43 $ 0.40 $ 0.40 $ 0.40
Yield on
interest-earning
assets (FTE)* 4.77% 4.83% 4.83% 4.77% 4.73%
Cost of
interest-bearing
liabilities 2.27% 2.42% 2.55% 2.52% 2.49%
Cost of funds 1.77% 1.88% 1.98% 1.95% 1.93%
Net interest
spread (FTE)* 2.50% 2.41% 2.28% 2.25% 2.24%
Net interest
margin (FTE)* 3.08% 3.04% 2.95% 2.92% 2.89%
Return on average
assets 1.08% 1.14% 1.08% 1.04% 0.93%
Pre-provision net
revenue to
average assets* 1.36% 1.36% 1.30% 1.28% 1.16%
Return on average
equity 12.41% 13.45% 13.25% 13.02% 11.66%
Return on average
tangible
equity* 13.53% 14.73% 14.60% 14.40% 12.93%
Efficiency ratio
(FTE)* 58.53% 58.35% 60.17% 61.17% 61.67%
Expense ratio 1.36% 1.36% 1.39% 1.40% 1.37%
Other financial data At period end:
(dollars in thousands
except per share Mar. 31,
data) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 2025
---------------------- -------------- -------------- -------------- -------------- ------------
Assets under
management $1,096,776 $1,058,881 $1,037,414 $1,030,268 $955,647
Book value per
share $ 42.14 $ 41.39 $ 39.75 $ 37.78 $ 36.70
Tangible book value
per share* $ 38.67 $ 37.88 $ 36.23 $ 34.25 $ 33.16
Equity to assets 8.56% 8.69% 8.38% 8.08% 7.81%
Tangible common
equity ratio* 7.91% 8.01% 7.69% 7.38% 7.11%
Allowance for
credit losses on
loans to:
Total loans 1.04% 1.06% 1.06% 1.09% 1.10%
Non-accrual
loans 8.65x 10.66x 7.78x 6.50x 3.36x
Non-accrual loans
to total loans 0.12% 0.10% 0.14% 0.17% 0.33%
Non-performing
assets to total
assets 0.09% 0.08% 0.11% 0.13% 0.23%
Net charge-offs to
average total
loans 0.02% 0.03% 0.03% 0.05% 0.02%
Capital Adequacy
Ratios
----------------------
Total risk-based
capital ratio 14.45% 14.78% 14.52% 14.72% 14.74%
Common equity tier 1
risk-based capital
ratio 13.33% 13.65% 13.39% 13.57% 13.57%
Tier 1 risk-based
capital ratio 13.33% 13.65% 13.39% 13.57% 13.57%
Leverage ratio 9.38% 9.34% 9.27% 9.16% 9.22%
* Non-GAAP Financial Measures - see reconciliations below
FIDELITY D & D BANCORP, INC.
Reconciliations of Non-GAAP Financial Measures to
GAAP
Reconciliations of
Non-GAAP Measures to
GAAP Three Months Ended
----------------------- ------------------------------------------------------------------------------
(dollars in thousands) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025
----------------------- -------------- -------------- -------------- -------------- --------------
FTE net interest income
(non-GAAP)
Interest income (GAAP) $ 30,460 $ 31,084 $ 30,682 $ 29,765 $ 28,308
Adjustment to FTE 784 800 785 760 771
----------------------- --------- --------- --------- --------- ---------
Interest income
adjusted to FTE
(non-GAAP) 31,244 31,884 31,467 30,525 29,079
Interest expense (GAAP) 11,054 11,804 12,253 11,836 11,275
----------------------- --------- --------- --------- --------- ---------
Net interest income
adjusted to FTE
(non-GAAP) $ 20,190 $ 20,080 $ 19,214 $ 18,689 $ 17,804
Efficiency Ratio
(non-GAAP)
-----------------------
Non-interest expenses
(GAAP) $ 15,191 $ 14,921 $ 14,632 $ 14,710 $ 14,554
Net interest income
(GAAP) 19,406 19,280 18,429 17,929 17,033
Plus: taxable
equivalent adjustment 784 800 785 760 771
Non-interest income
(GAAP) 5,189 5,122 5,105 5,359 4,973
Loss (Gain) on sales of
securities 577 371 (3) - 822
----------------------- --------- --------- --------- --------- ---------
Net interest income
(FTE) plus adjusted
non-interest income
(non-GAAP) $ 25,956 $ 25,573 $ 24,316 $ 24,048 $ 23,599
----------------------- --------- --------- --------- --------- ---------
Efficiency ratio
(non-GAAP) (1) 58.53% 58.35% 60.17% 61.17% 61.67%
----------------------- --------- --------- --------- --------- ---------
(1) The reported
efficiency ratio is a
non-GAAP measure
calculated by dividing
non-interest expense by
the sum of net interest
income, on an FTE
basis, and adjusted
non-interest income.
Tangible Book Value per
Share/Tangible Common
Equity Ratio
(non-GAAP)
-----------------------
Total assets (GAAP) $2,859,265 $2,748,058 $2,736,750 $2,698,575 $2,711,310
Less: Intangible assets (20,181) (20,242) (20,303) (20,364) (20,431)
----------------------- --------- --------- --------- --------- ---------
Tangible assets 2,839,084 2,727,816 2,716,447 2,678,211 2,690,879
----------------------- --------- --------- --------- --------- ---------
Total shareholders'
equity (GAAP) 244,652 238,860 229,247 217,912 211,674
Less: Intangible assets (20,181) (20,242) (20,303) (20,364) (20,431)
----------------------- --------- --------- --------- --------- ---------
Tangible common equity 224,471 218,618 208,944 197,548 191,243
----------------------- --------- --------- --------- --------- ---------
Common shares
outstanding, end of
period 5,805,180 5,771,110 5,767,288 5,767,490 5,767,500
----------------------- --------- --------- --------- --------- ---------
Tangible Common Book
Value per Share $ 38.67 $ 37.88 $ 36.23 $ 34.25 $ 33.16
----------------------- --------- --------- --------- --------- ---------
Tangible Common Equity
Ratio 7.91% 8.01% 7.69% 7.38% 7.11%
----------------------- --------- --------- --------- --------- ---------
Pre-Provision Net
Revenue to Average
Assets
-----------------------
Income before taxes
(GAAP) $ 8,439 $ 9,211 $ 8,592 $ 8,258 $ 7,082
Plus: Provision for
credit losses 965 270 310 320 370
----------------------- --------- --------- --------- --------- ---------
Total pre-provision net
revenue (non-GAAP) 9,404 9,481 8,902 8,578 7,452 Total (annualized) (non-GAAP) $ 38,139 $ 37,615 $ 35,316 $ 34,404 $ 30,220 Average assets $2,809,513 $2,757,902 $2,708,126 $2,681,194 $2,609,769 ----------------------- --------- --------- --------- --------- --------- Pre-Provision Net Revenue to Average Assets (non-GAAP) 1.36% 1.36% 1.30% 1.28% 1.16% ----------------------- --------- --------- --------- --------- --------- Contacts: Daniel J. Santaniello Salvatore R. DeFrancesco, Jr. President and Chief Executive Officer Treasurer and Chief Financial Officer 570-504-8035 570-504-8000
(END) Dow Jones Newswires
April 22, 2026 07:00 ET (11:00 GMT)