Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking
subsidiary, The Fidelity Deposit and Discount Bank, announced
its unaudited, consolidated financial results for the three and
nine month periods ended September 30, 2022.
Unaudited Financial Information
Net income for the quarter ended September 30,
2022 was $7.7 million, or $1.36 diluted earnings per
share, compared to $4.9 million, or $0.85 diluted
earnings per share, for the quarter ended September 30,
2021. The $2.8 million, or 58%, improvement in net
income resulted primarily from the $2.2 million decline
in non-interest expenses and a $1.3 million increase
in net interest income. The decrease in non-interest expenses
was due to $2.2 million in merger-related expenses incurred during
the third quarter of 2021. Diluted earnings per share increased by
$0.51 per share, or 60%, due to the higher net income.
“Fidelity’s third quarter and 2022 year-to-date results reflect
continued momentum from organic growth and its expanded
marketplace,” stated Daniel J. Santaniello, President and Chief
Executive Officer. “The Bank increased loans, revenue, and net
interest margin, and expenses remained well managed, resulting in
meaningful earnings growth and an increase in shareholder
dividends. Regulatory capital and asset quality metrics remain
strong and Fidelity is poised for continued success.”
For the nine months ended September 30, 2022, net income
was $22.9 million, or $4.03 diluted earnings per share,
compared to $16.2 million, or $3.09 diluted earnings per
share, for the nine months ended September 30, 2021. The
$6.7 million, or 41% improvement in net income stemmed from
the $10.0 million improvement in net interest income partially
offset by $1.4 million less non-interest income and $1.0 million
higher non-interest expenses.
The acquisition of Landmark Bancorp, Inc. (“Landmark”) during
the third quarter of 2021 resulted in growth in the Company’s
earning assets which contributed to net interest income
growth. The Company continued to
operate four community banking offices acquired from
Landmark which contributed to the increased operating expenses.
Consolidated Third Quarter Operating Results
Overview
Net interest income was $18.5 million for the
third quarter of 2022, an 8% increase over
the $17.2 million earned for the third quarter of
2021. The $1.3 million improvement in net interest
income resulted primarily from a $108.1 million increase
in the average balance of interest-earning assets supplemented
by a 20 basis point increase in fully-taxable
equivalent ("FTE") yields on these earning assets partially offset
by higher interest expense. The loan portfolio had the
biggest impact, producing a $1.0 million increase in interest
income from $81.1 million in higher average balances and an
increase of three basis points in FTE yields earned on loans.
Residential real estate contributed the most to the increase in
loan interest income, growing $1.0 million from $85.5 million
in higher average balances and a 20 basis point increase in FTE
yields. Interest income in the commercial portfolio
decreased $0.2 million during the third quarter of
2022 versus the third quarter of 2021, primarily resulting from
the recognition of $1.3 million less Small Business
Administration ("SBA") fees attributable to Paycheck
Protection Program ("PPP") loans over the same time periods.
Interest income from the investment portfolio grew $0.7 million
from $90.9 million in increased average balances and 17 basis
point higher FTE yields earned thereon. Interest income on
interest-bearing deposits grew $0.3 million from higher
yields. Partially offsetting the increase in interest income,
interest expense grew $0.6 million primarily due to a 15 basis
point increase in rates paid on interest-bearing deposits.
The overall cost of interest-bearing liabilities was 0.40% for
the third quarter of 2022, an increase of 14 basis points from the
0.26% paid for the third quarter of 2021. The cost of
funds increased 10 basis points to 0.29% for the third quarter of
2022 from 0.19% for the third quarter of 2021. The Company’s
FTE (non-GAAP measurement) net interest spread was 3.20%
for the third quarter of 2022, up six basis points from the 3.14%
recorded for the third quarter of 2021. FTE net interest
margin increased by 10 basis points to 3.32% for the three months
ended September 30, 2022 from 3.22% for the same
2021 period due to the increase in yields on
interest-earning assets at a faster pace than the increase
of rates on interest-bearing liabilities.
The provision for loan losses was $0.5 million for the third
quarter of 2022, a $0.1 million increase compared to $0.4
million for the third quarter of 2021. The increase in the
provision compared to the quarter ended September 30, 2021 was due
to the higher provisioning required for experienced organic loan
growth in the third quarter of 2022 compared to the year
earlier period. This amount of provisioning reflected what
management deemed necessary to maintain the allowance for loan and
lease losses at an adequate level.
Total non-interest income decreased $0.1 million, or 2%,
to $3.9 million for the third quarter of
2022 compared to $4.0 million for the
third quarter of 2021. The decrease in non-interest
income was primarily attributable to $0.2 million less service
charges on loans primarily from a decline in mortgage loan
service charges and commercial loan late fees. The Company
also recognized $0.1 million more in losses on the disposal of
premises and equipment and $0.1 million less fees from financial
services. Partially offsetting these decreases was $0.2
million higher service charges on deposits.
Non-interest expenses decreased $2.2 million, or 14%,
for the third quarter of 2022 to $13.0 million from $15.2 million
for the same quarter of 2021. Non-interest expenses would
have stayed flat quarter-over-quarter if not for $2.2 million of
merger-related expenses incurred in the third quarter of
2021. Non-interest expense decreases were primarily due
to declines of $0.1 million in salaries and employee
benefits and $0.1 million in data processing and
communications. These decreases were offset by increases of
$0.1 million in advertising and marketing and $0.1 million in
loan collection expenses.
The provision for income taxes increased $0.5 million during the
third quarter of 2022 due to higher income before taxes
compared to the third quarter of 2021.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $53.9 million for the nine months
ended September 30, 2022 compared to $43.9 million for the
nine months ended September 30, 2021. The $10.0 million,
or 23%, improvement was the result of earnings from a larger
average balance of interest-earning assets supplemented by higher
FTE yields earned on these assets which partially offset an
increase in interest expense from a larger average balance and rate
paid on interest-bearing deposits. The loan portfolio had the
biggest impact, producing $6.8 million more interest income
from $238.8 million in higher average balances. Interest
income in the commercial portfolio increased $2.8 million
during the nine months ended September 30, 2022 compared to
the same 2021 period, despite recognition of $3.0 million less SBA
fees attributable to PPP loans over the same time periods.
Interest income from investments increased $3.5 million from a
$227.1 million larger average balance in the portfolio along with a
nine basis point increase in yields. On the funding side, interest
expense increased by $0.7 million due to a $286.2 million larger
average balance of interest-bearing deposits and a two basis
point increase in the rates paid on those deposits. FTE net
interest spread was 3.19% for the first nine months of 2022,
or five basis points higher than the 3.14% recorded for the first
nine months of 2021. Over the same time period, the Company’s
FTE net interest margin also increased by five basis points to
3.28% from 3.23%.
For the nine months ended September 30, 2022, the provision for
loan losses was $1.6 million relatively unchanged from the same
2021 period as the increased provisioning needed for higher organic
loan growth was offset by a $0.4 million specific reserve incurred
during the prior year that was not required in the current
year. This amount of provisioning was respective to the loan
growth achieved during 2022 and reflected what management deemed
necessary to maintain the allowance for loan and lease losses at an
adequate level.
Total non-interest income for the nine months ended September
30, 2022 was $12.7 million, a decrease of $1.4 million, or 10%,
from $14.1 million for the nine months ended September 30,
2021. The decrease in non-interest income was attributable to
the decline in residential mortgage activity stemming from
increased mortgage rates and a reduction in secondary market
activity which lowered the level of gains by $2.3
million during the first nine months of 2022 compared to the
same 2021 period. The Company also recorded $0.5 million less
service charges on loans. Partially offsetting these
decreases was $0.7 million in higher service charges on
deposits.
Non-interest expenses increased to $38.5 million for the nine
months ended September 30, 2022, an increase of $1.0 million, or
3%, from $37.5 million for the nine months ended September 30,
2021. Non-interest expenses would have increased another $3.5
million if not for merger-related expenses of $3.1 million and a
FHLB prepayment penalty of $0.4 million incurred during the
first nine months of 2021. The largest driver of this
increase was a $2.9 million increase in salaries and employee
benefit expenses.
The provision for income taxes increased $0.9 million during
first nine months of 2022 compared to the same 2021 period due
to the higher income before taxes.
Consolidated Balance Sheet & Asset Quality
Overview
The Company’s total assets grew to $2.4 billion as of
September 30, 2022, an increase of $17 million from December
31, 2021. Growth in the loan portfolio of $58
million and $37 million of cash and cash equivalents was
offset by a reduction of the investments portfolio by $103 million
due to recording net unrealized losses resulting from the
significantly higher intermediate to long-term U.S. Treasury
interest rates through the first nine months of 2022.
The net growth in loans includes $38 million in paydowns on PPP
loans, net of deferred fees. Partially offsetting the
decrease in the investment portfolio was the $22 million increase
in deferred tax assets due to the unrealized losses in the
investment portfolio. During the same time period, total
liabilities increased $82 million, or 4%. Deposit growth of
$83 million was used to fund loan growth with the excess
increasing cash balances.
Shareholders’ equity decreased $65.2 million, or 31%, to $146.5
million at September 30, 2022 from $211.7 million at December 31,
2021. The decrease was caused by an $82.5 million, after tax,
reduction in accumulated other comprehensive income from net
unrealized losses recorded in the investment portfolio
stemming from the increase in intermediate to long-term U.S.
Treasury interest rates. At September 30, 2022,
there were no securities identified with credit-related,
other-than-temporary impairment losses. During the first nine
months of 2022, the Company acquired treasury stock totaling $1.2
million which further reduced shareholders'
equity. Partially offsetting these decreases, retained
earnings improved from net income of $22.9 million, partially
offset by $5.7 million in cash dividends paid to
shareholders. An additional $1.2 million recorded from the
issuance of common stock under the Company’s stock plans and
stock-based compensation also partially offset the
decrease in shareholders' equity. Accumulated other
comprehensive income (loss) is excluded from regulatory capital
ratios. The Company remains well capitalized with Tier 1
capital at 8.51% of total average assets as of September 30,
2022. Total risk-based capital was 14.34% of risk-weighted
assets and Tier 1 risk-based capital was 13.27% of risk-weighted
assets as of September 30, 2022. Tangible book value per
share was $22.24 at September 30, 2022 compared to $33.68 at
December 31, 2021. Tangible common equity was 5.19% of total
assets at September 30, 2022 compared to 7.93% at December 31,
2021.
Asset Quality
Total non-performing assets were $4.5 million, or 0.19% of total
assets, at September 30, 2022, compared to $6.4 million, or 0.27%
of total assets, at December 31, 2021. Past due and
non-accrual loans to total loans were 0.26% at September 30, 2022
compared to 0.34% at December 31, 2021. Net charge-offs
to average total loans were 0.04% at September 30, 2022 unchanged
compared to 0.04% at December 31, 2021.
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
operates 21 full-service offices throughout Lackawanna, Luzerne,
Lehigh and Northampton Counties, along with a limited production
commercial office in Luzerne County and a Fidelity Bank Wealth
Management Minersville Office in Schuylkill County. Fidelity
Bank provides a digital and virtual experience via digital
services, and digital account opening offered through online
banking at bankatfidelity.com and the mobile app.
Additionally, Fidelity Bank offers full-service Wealth
Management & Brokerage Services, a Mortgage Center, and an
array of personal and business 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 3,100 hours of volunteer time and over $1.8
million in donations to non-profit organizations directly within
the markets served throughout 2021. The
Company continues its mission of exceeding client
expectations through a unique banking experience, providing 24
hour, 7 days a week service to clients through branch offices,
online at www.bankatfidelity.com, and through the Customer Care
Center at 800-388-4380. 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. Reconciliations of GAAP to
non-GAAP operating measures to the most directly comparable GAAP
financial measures are included in the tables at the end of this
release.
Management believes merger-related expenses are not standard
costs necessary for operations. These charges
principally represent professional fees and system conversion and
integration costs related to the transaction. These
costs are specific to each individual transaction and may vary
significantly based on the size and complexity of the transaction.
Management also believes the FHLB prepayment fee incurred to
payoff FHLB advances is non-recurring and should be excluded from
normal operating expenses for proper comparison.
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 2022 and 2021.
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 effects of economic
conditions particularly with regard to the negative impact of
severe, wide-ranging and continuing disruptions caused by the
spread of Coronavirus Disease 2019 (COVID-19) and any other
pandemic, epidemic or other health-related crisis 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 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; |
|
■ |
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 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 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; |
|
■ |
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; |
|
■ |
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; |
|
■ |
inflation, securities markets and
monetary fluctuations and volatility; |
|
■ |
the short-term and long-term
effects of inflation, and rising costs to the Company, its
customers and on the economy; |
|
■ |
acts of war or terrorism; |
|
■ |
disruption of credit and equity
markets; 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: |
|
September 30, 2022 |
|
|
December 31, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
134,042 |
|
|
$ |
96,877 |
|
Investment securities |
|
|
635,787 |
|
|
|
738,980 |
|
Restricted investments in bank stock |
|
|
3,639 |
|
|
|
3,206 |
|
Loans and leases |
|
|
1,524,328 |
|
|
|
1,464,855 |
|
Allowance for loan losses |
|
|
(16,779 |
) |
|
|
(15,624 |
) |
Premises and equipment, net |
|
|
30,971 |
|
|
|
29,310 |
|
Life insurance cash surrender value |
|
|
53,711 |
|
|
|
52,745 |
|
Goodwill and core deposit intangible |
|
|
21,264 |
|
|
|
21,570 |
|
Other assets |
|
|
48,805 |
|
|
|
27,185 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,435,768 |
|
|
$ |
2,419,104 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
616,844 |
|
|
$ |
590,283 |
|
Interest-bearing deposits |
|
|
1,636,389 |
|
|
|
1,579,582 |
|
Total deposits |
|
|
2,253,233 |
|
|
|
2,169,865 |
|
Short-term borrowings |
|
|
10 |
|
|
|
- |
|
Secured borrowings |
|
|
7,688 |
|
|
|
10,620 |
|
Other liabilities |
|
|
28,350 |
|
|
|
26,890 |
|
Total liabilities |
|
|
2,289,281 |
|
|
|
2,207,375 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
146,487 |
|
|
|
211,729 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,435,768 |
|
|
$ |
2,419,104 |
|
Average Year-To-Date Balances: |
|
September 30, 2022 |
|
|
December 31, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
84,399 |
|
|
$ |
146,986 |
|
Investment securities |
|
|
700,347 |
|
|
|
568,785 |
|
Restricted investments in bank stock |
|
|
3,472 |
|
|
|
3,181 |
|
Loans and leases |
|
|
1,487,247 |
|
|
|
1,299,960 |
|
Allowance for loan losses |
|
|
(16,443 |
) |
|
|
(16,100 |
) |
Premises and equipment, net |
|
|
30,455 |
|
|
|
28,956 |
|
Life insurance cash surrender value |
|
|
53,281 |
|
|
|
48,570 |
|
Goodwill and core deposit intangible |
|
|
21,409 |
|
|
|
12,180 |
|
Other assets |
|
|
37,755 |
|
|
|
23,069 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,401,922 |
|
|
$ |
2,115,587 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
589,581 |
|
|
$ |
517,599 |
|
Interest-bearing deposits |
|
|
1,595,381 |
|
|
|
1,376,364 |
|
Total deposits |
|
|
2,184,962 |
|
|
|
1,893,963 |
|
Short-term borrowings |
|
|
72 |
|
|
|
97 |
|
Secured borrowings |
|
|
9,301 |
|
|
|
9,122 |
|
FHLB advances |
|
|
- |
|
|
|
848 |
|
Other liabilities |
|
|
27,742 |
|
|
|
22,322 |
|
Total liabilities |
|
|
2,222,077 |
|
|
|
1,926,352 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
179,845 |
|
|
|
189,235 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,401,922 |
|
|
$ |
2,115,587 |
|
|
|
|
|
|
|
|
|
|
FIDELITY D & D BANCORP,
INC.Unaudited Condensed Consolidated Statements of
Income(dollars in thousands)
|
|
Three Months Ended |
|
|
Nine months ended |
|
|
|
Sep. 30, 2022 |
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2022 |
|
|
Sep. 30, 2021 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
16,320 |
|
|
$ |
15,359 |
|
|
$ |
46,595 |
|
|
$ |
39,817 |
|
Securities and other |
|
|
3,815 |
|
|
|
2,814 |
|
|
|
10,783 |
|
|
|
6,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
20,135 |
|
|
|
18,173 |
|
|
|
57,378 |
|
|
|
46,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
(1,550 |
) |
|
|
(878 |
) |
|
|
(3,321 |
) |
|
|
(2,583 |
) |
Borrowings and debt |
|
|
(75 |
) |
|
|
(121 |
) |
|
|
(110 |
) |
|
|
(147 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
(1,625 |
) |
|
|
(999 |
) |
|
|
(3,431 |
) |
|
|
(2,730 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
18,510 |
|
|
|
17,174 |
|
|
|
53,947 |
|
|
|
43,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
(525 |
) |
|
|
(450 |
) |
|
|
(1,575 |
) |
|
|
(1,550 |
) |
Non-interest income |
|
|
3,911 |
|
|
|
4,009 |
|
|
|
12,722 |
|
|
|
14,102 |
|
Non-interest expense |
|
|
(13,028 |
) |
|
|
(15,185 |
) |
|
|
(38,484 |
) |
|
|
(37,492 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
8,868 |
|
|
|
5,548 |
|
|
|
26,610 |
|
|
|
19,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(1,179 |
) |
|
|
(689 |
) |
|
|
(3,735 |
) |
|
|
(2,788 |
) |
Net income |
|
$ |
7,689 |
|
|
$ |
4,859 |
|
|
$ |
22,875 |
|
|
$ |
16,222 |
|
|
|
Three Months Ended |
|
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31. 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
16,320 |
|
|
$ |
15,500 |
|
|
$ |
14,775 |
|
|
$ |
15,614 |
|
|
$ |
15,359 |
|
Securities and other |
|
|
3,815 |
|
|
|
3,565 |
|
|
|
3,403 |
|
|
|
3,174 |
|
|
|
2,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
20,135 |
|
|
|
19,065 |
|
|
|
18,178 |
|
|
|
18,788 |
|
|
|
18,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
(1,550 |
) |
|
|
(950 |
) |
|
|
(822 |
) |
|
|
(873 |
) |
|
|
(878 |
) |
Borrowings and debt |
|
|
(75 |
) |
|
|
30 |
|
|
|
(65 |
) |
|
|
(37 |
) |
|
|
(121 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
(1,625 |
) |
|
|
(920 |
) |
|
|
(887 |
) |
|
|
(910 |
) |
|
|
(999 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
18,510 |
|
|
|
18,145 |
|
|
|
17,291 |
|
|
|
17,878 |
|
|
|
17,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
|
(525 |
) |
|
|
(525 |
) |
|
|
(525 |
) |
|
|
(450 |
) |
|
|
(450 |
) |
Non-interest income |
|
|
3,911 |
|
|
|
4,256 |
|
|
|
4,554 |
|
|
|
4,185 |
|
|
|
4,009 |
|
Non-interest expense |
|
|
(13,028 |
) |
|
|
(12,800 |
) |
|
|
(12,654 |
) |
|
|
(12,614 |
) |
|
|
(15,185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
8,868 |
|
|
|
9,076 |
|
|
|
8,666 |
|
|
|
8,999 |
|
|
|
5,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(1,179 |
) |
|
|
(1,412 |
) |
|
|
(1,144 |
) |
|
|
(1,213 |
) |
|
|
(689 |
) |
Net income |
|
$ |
7,689 |
|
|
$ |
7,664 |
|
|
$ |
7,522 |
|
|
$ |
7,786 |
|
|
$ |
4,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY D & D BANCORP,
INC.Unaudited Condensed Consolidated Balance
Sheets(dollars in thousands)
At Period End: |
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31. 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
134,042 |
|
|
$ |
109,125 |
|
|
$ |
97,403 |
|
|
$ |
96,877 |
|
|
$ |
167,386 |
|
Investment securities |
|
|
635,787 |
|
|
|
674,833 |
|
|
|
711,583 |
|
|
|
738,980 |
|
|
|
686,926 |
|
Restricted investments in bank stock |
|
|
3,639 |
|
|
|
3,622 |
|
|
|
3,231 |
|
|
|
3,206 |
|
|
|
3,321 |
|
Loans and leases |
|
|
1,524,328 |
|
|
|
1,494,316 |
|
|
|
1,479,114 |
|
|
|
1,464,855 |
|
|
|
1,435,997 |
|
Allowance for loan losses |
|
|
(16,779 |
) |
|
|
(16,590 |
) |
|
|
(16,081 |
) |
|
|
(15,624 |
) |
|
|
(15,601 |
) |
Premises and equipment, net |
|
|
30,971 |
|
|
|
30,855 |
|
|
|
31,336 |
|
|
|
29,310 |
|
|
|
29,406 |
|
Life insurance cash surrender value |
|
|
53,711 |
|
|
|
53,383 |
|
|
|
53,065 |
|
|
|
52,745 |
|
|
|
52,417 |
|
Goodwill and core deposit intangible |
|
|
21,264 |
|
|
|
21,360 |
|
|
|
21,462 |
|
|
|
21,570 |
|
|
|
21,678 |
|
Other assets |
|
|
48,805 |
|
|
|
44,036 |
|
|
|
39,661 |
|
|
|
27,185 |
|
|
|
30,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,435,768 |
|
|
$ |
2,414,940 |
|
|
$ |
2,420,774 |
|
|
$ |
2,419,104 |
|
|
$ |
2,411,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
616,844 |
|
|
$ |
610,987 |
|
|
$ |
599,497 |
|
|
$ |
590,283 |
|
|
$ |
586,952 |
|
Interest-bearing deposits |
|
|
1,636,389 |
|
|
|
1,606,637 |
|
|
|
1,610,508 |
|
|
|
1,579,582 |
|
|
|
1,576,498 |
|
Total deposits |
|
|
2,253,233 |
|
|
|
2,217,624 |
|
|
|
2,210,005 |
|
|
|
2,169,865 |
|
|
|
2,163,450 |
|
Short-term borrowings |
|
|
10 |
|
|
|
10 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Secured borrowings |
|
|
7,688 |
|
|
|
7,736 |
|
|
|
10,572 |
|
|
|
10,620 |
|
|
|
16,885 |
|
Other liabilities |
|
|
28,350 |
|
|
|
26,951 |
|
|
|
24,954 |
|
|
|
26,890 |
|
|
|
25,895 |
|
Total liabilities |
|
|
2,289,281 |
|
|
|
2,252,321 |
|
|
|
2,245,531 |
|
|
|
2,207,375 |
|
|
|
2,206,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
146,487 |
|
|
|
162,619 |
|
|
|
175,243 |
|
|
|
211,729 |
|
|
|
205,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,435,768 |
|
|
$ |
2,414,940 |
|
|
$ |
2,420,774 |
|
|
$ |
2,419,104 |
|
|
$ |
2,411,799 |
|
Average Quarterly Balances: |
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31. 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
88,863 |
|
|
$ |
69,086 |
|
|
$ |
95,319 |
|
|
$ |
117,746 |
|
|
$ |
185,835 |
|
Investment securities |
|
|
672,595 |
|
|
|
693,121 |
|
|
|
736,021 |
|
|
|
725,977 |
|
|
|
640,900 |
|
Restricted investments in bank stock |
|
|
3,645 |
|
|
|
3,538 |
|
|
|
3,228 |
|
|
|
3,246 |
|
|
|
3,430 |
|
Loans and leases |
|
|
1,511,268 |
|
|
|
1,482,629 |
|
|
|
1,467,362 |
|
|
|
1,452,676 |
|
|
|
1,430,142 |
|
Allowance for loan losses |
|
|
(16,911 |
) |
|
|
(16,441 |
) |
|
|
(15,966 |
) |
|
|
(15,857 |
) |
|
|
(18,716 |
) |
Premises and equipment, net |
|
|
30,956 |
|
|
|
31,091 |
|
|
|
29,301 |
|
|
|
29,399 |
|
|
|
31,381 |
|
Life insurance cash surrender value |
|
|
53,599 |
|
|
|
53,277 |
|
|
|
52,960 |
|
|
|
52,635 |
|
|
|
52,285 |
|
Goodwill and core deposit intangible |
|
|
21,308 |
|
|
|
21,405 |
|
|
|
21,517 |
|
|
|
21,632 |
|
|
|
9,579 |
|
Other assets |
|
|
42,564 |
|
|
|
40,878 |
|
|
|
29,679 |
|
|
|
26,679 |
|
|
|
23,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,407,887 |
|
|
$ |
2,378,584 |
|
|
$ |
2,419,421 |
|
|
$ |
2,414,133 |
|
|
$ |
2,358,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
589,227 |
|
|
$ |
593,121 |
|
|
$ |
586,363 |
|
|
$ |
585,899 |
|
|
$ |
579,629 |
|
Interest-bearing deposits |
|
|
1,614,573 |
|
|
|
1,579,150 |
|
|
|
1,592,173 |
|
|
|
1,575,844 |
|
|
|
1,522,149 |
|
Total deposits |
|
|
2,203,800 |
|
|
|
2,172,271 |
|
|
|
2,178,536 |
|
|
|
2,161,743 |
|
|
|
2,101,778 |
|
Short-term borrowings |
|
|
10 |
|
|
|
206 |
|
|
|
- |
|
|
|
- |
|
|
|
68 |
|
Secured borrowings |
|
|
7,707 |
|
|
|
9,644 |
|
|
|
10,584 |
|
|
|
16,053 |
|
|
|
20,140 |
|
FHLB advances |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
49 |
|
Other liabilities |
|
|
29,031 |
|
|
|
27,164 |
|
|
|
27,008 |
|
|
|
27,410 |
|
|
|
23,798 |
|
Total liabilities |
|
|
2,240,548 |
|
|
|
2,209,285 |
|
|
|
2,216,128 |
|
|
|
2,205,206 |
|
|
|
2,145,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
167,339 |
|
|
|
169,299 |
|
|
|
203,293 |
|
|
|
208,927 |
|
|
|
212,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,407,887 |
|
|
$ |
2,378,584 |
|
|
$ |
2,419,421 |
|
|
$ |
2,414,133 |
|
|
$ |
2,358,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY D & D BANCORP,
INC.Selected Financial Ratios and Other
Financial Data
|
|
Three Months Ended |
|
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31. 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
1.36 |
|
|
$ |
1.35 |
|
|
$ |
1.33 |
|
|
$ |
1.38 |
|
|
$ |
0.86 |
|
Diluted earnings per share |
|
$ |
1.36 |
|
|
$ |
1.35 |
|
|
$ |
1.32 |
|
|
$ |
1.37 |
|
|
$ |
0.85 |
|
Dividends per share |
|
$ |
0.33 |
|
|
$ |
0.33 |
|
|
$ |
0.33 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
Yield on interest-earning assets (FTE)* |
|
|
3.60 |
% |
|
|
3.50 |
% |
|
|
3.34 |
% |
|
|
3.40 |
% |
|
|
3.40 |
% |
Cost of interest-bearing liabilities |
|
|
0.40 |
% |
|
|
0.23 |
% |
|
|
0.22 |
% |
|
|
0.23 |
% |
|
|
0.26 |
% |
Cost of funds |
|
|
0.29 |
% |
|
|
0.17 |
% |
|
|
0.16 |
% |
|
|
0.17 |
% |
|
|
0.19 |
% |
Net interest spread (FTE)* |
|
|
3.20 |
% |
|
|
3.27 |
% |
|
|
3.12 |
% |
|
|
3.17 |
% |
|
|
3.14 |
% |
Net interest margin (FTE)* |
|
|
3.32 |
% |
|
|
3.34 |
% |
|
|
3.18 |
% |
|
|
3.24 |
% |
|
|
3.22 |
% |
Return on average assets |
|
|
1.27 |
% |
|
|
1.29 |
% |
|
|
1.26 |
% |
|
|
1.28 |
% |
|
|
0.82 |
% |
Return on average equity |
|
|
18.23 |
% |
|
|
18.16 |
% |
|
|
15.01 |
% |
|
|
14.79 |
% |
|
|
9.07 |
% |
Return on average tangible equity* |
|
|
20.89 |
% |
|
|
20.79 |
% |
|
|
16.78 |
% |
|
|
16.49 |
% |
|
|
9.50 |
% |
Efficiency ratio (FTE)* |
|
|
56.38 |
% |
|
|
55.45 |
% |
|
|
56.21 |
% |
|
|
55.52 |
% |
|
|
69.79 |
% |
Expense ratio |
|
|
1.51 |
% |
|
|
1.44 |
% |
|
|
1.36 |
% |
|
|
1.38 |
% |
|
|
1.88 |
% |
|
|
Nine months ended |
|
|
|
Sep. 30, 2022 |
|
|
Sep. 30, 2021 |
|
Basic earnings per share |
|
$ |
4.05 |
|
|
$ |
3.11 |
|
Diluted earnings per share |
|
$ |
4.03 |
|
|
$ |
3.09 |
|
Dividends per share |
|
$ |
0.99 |
|
|
$ |
0.90 |
|
Yield on interest-earning assets (FTE)* |
|
|
3.48 |
% |
|
|
3.42 |
% |
Cost of interest-bearing liabilities |
|
|
0.29 |
% |
|
|
0.28 |
% |
Cost of funds |
|
|
0.21 |
% |
|
|
0.20 |
% |
Net interest spread (FTE)* |
|
|
3.19 |
% |
|
|
3.14 |
% |
Net interest margin (FTE)* |
|
|
3.28 |
% |
|
|
3.23 |
% |
Return on average assets |
|
|
1.27 |
% |
|
|
1.08 |
% |
Return on average equity |
|
|
17.01 |
% |
|
|
11.88 |
% |
Return on average tangible equity* |
|
|
19.30 |
% |
|
|
12.49 |
% |
Efficiency ratio (FTE)* |
|
|
56.01 |
% |
|
|
62.98 |
% |
Expense ratio |
|
|
1.43 |
% |
|
|
1.55 |
% |
Non-GAAP Measures |
|
Three Months Ended |
|
|
Nine months ended |
|
(dollars in thousands except per share data) |
|
Sep. 30, 2022 |
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2022 |
|
|
Sep. 30, 2021 |
|
Net income |
|
$ |
7,689 |
|
|
$ |
4,859 |
|
|
$ |
22,875 |
|
|
$ |
16,222 |
|
Merger-related expenses, net
of income taxes |
|
|
- |
|
|
|
1,739 |
|
|
|
- |
|
|
|
2,629 |
|
FHLB
prepayment penalty, net of income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
291 |
|
Adjusted net income* |
|
$ |
7,689 |
|
|
$ |
6,598 |
|
|
$ |
22,875 |
|
|
$ |
19,142 |
|
Adjusted basic earnings per
share* |
|
$ |
1.36 |
|
|
$ |
1.17 |
|
|
$ |
4.05 |
|
|
$ |
3.67 |
|
Adjusted diluted earnings per
share* |
|
$ |
1.36 |
|
|
$ |
1.16 |
|
|
$ |
4.03 |
|
|
$ |
3.64 |
|
Interest income adjustment to
FTE* |
|
$ |
687 |
|
|
$ |
577 |
|
|
$ |
2,038 |
|
|
$ |
1,480 |
|
Adjusted return on average
assets* |
|
|
1.27 |
% |
|
|
1.11 |
% |
|
|
1.27 |
% |
|
|
1.27 |
% |
Adjusted return on average
tangible equity* |
|
|
20.89 |
% |
|
|
12.90 |
% |
|
|
19.30 |
% |
|
|
14.74 |
% |
Other financial data |
|
At period end: |
|
(dollars in thousands except per share data) |
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
|
Mar. 31. 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
Book value per share |
|
$ |
26.02 |
|
|
$ |
28.77 |
|
|
$ |
30.97 |
|
|
$ |
37.50 |
|
|
$ |
36.41 |
|
Tangible book value per share* |
|
$ |
22.24 |
|
|
$ |
24.99 |
|
|
$ |
27.17 |
|
|
$ |
33.68 |
|
|
$ |
32.57 |
|
Equity to assets |
|
|
6.01 |
% |
|
|
6.73 |
% |
|
|
7.24 |
% |
|
|
8.75 |
% |
|
|
8.52 |
% |
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
1.10 |
% |
|
|
1.11 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
|
1.12 |
% |
Non-accrual loans |
|
5.23x |
|
|
5.17x |
|
|
6.97x |
|
|
5.30x |
|
|
5.68x |
|
Non-accrual loans to total loans |
|
|
0.20 |
% |
|
|
0.21 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
|
|
0.19 |
% |
Non-performing assets to total assets |
|
|
0.19 |
% |
|
|
0.20 |
% |
|
|
0.17 |
% |
|
|
0.27 |
% |
|
|
0.25 |
% |
Net charge-offs to average total loans |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.04 |
% |
|
|
0.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
14.34 |
% |
|
|
14.30 |
% |
|
|
14.18 |
% |
|
|
14.51 |
% |
|
|
14.52 |
% |
Common equity tier 1
risk-based capital ratio |
|
|
13.27 |
% |
|
|
13.21 |
% |
|
|
13.11 |
% |
|
|
13.40 |
% |
|
|
13.38 |
% |
Tier 1 risk-based capital
ratio |
|
|
13.27 |
% |
|
|
13.21 |
% |
|
|
13.11 |
% |
|
|
13.40 |
% |
|
|
13.38 |
% |
Leverage ratio |
|
|
8.51 |
% |
|
|
8.43 |
% |
|
|
8.14 |
% |
|
|
7.94 |
% |
|
|
7.89 |
% |
* See non-GAAP Financial Measures above.
Contacts: |
|
|
|
Daniel J. Santaniello |
Salvatore R. DeFrancesco, Jr. |
President and Chief Executive Officer |
Treasurer and Chief Financial Officer |
570-504-8035 |
570-504-8000 |
Grafico Azioni Fidelity D and D Bancorp (NASDAQ:FDBC)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Fidelity D and D Bancorp (NASDAQ:FDBC)
Storico
Da Giu 2023 a Giu 2024