Fidelity D & D Bancorp, Inc. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Fidelity D & D Bancorp (NASDAQ: FDBC) reported second-quarter 2026 net income of $7.8 million, or $1.33 per diluted share, up from $6.9 million, or $1.20, a year earlier. For the first half of 2026, net income was $15.3 million, or $2.63 per diluted share, versus $12.9 million, or $2.23, in 2025.
Quarterly net interest income rose 16% to $20.8 million, driven by higher loan balances and improved yields, while the FTE net interest margin increased to 3.22% from 2.92%. Non-interest income grew modestly, and non-interest expenses rose 9% to $16.0 million, mainly from higher salaries and technology costs. Total assets reached $3.0 billion, up $223.1 million from year-end 2025, with $174.9 million net growth in loans and leases.
Asset quality remained strong, with non-performing assets at $1.8 million, or 0.06% of total assets, and net charge-offs at 0.01% of average loans. The company reported Tier 1 capital of 9.51% of average assets and total risk-based capital of 14.29%, and tangible book value per share increased to $40.08.
Positive
- Q2 2026 net income $7.8M, up 13% YoY
- Q2 2026 diluted EPS $1.33 vs. $1.20 in Q2 2025
- Net interest income up 16% YoY to $20.8M in Q2 2026
- FTE net interest margin improved to 3.22% from 2.92% YoY
- Total assets grew $223.1M to $3.0B since year-end 2025
- Non-performing assets fell to 0.06% of total assets
- Tangible book value per share increased to $40.08 from $37.88
Negative
- Non-interest expenses up 9% YoY in Q2 2026 to $16.0M
- Provision for credit losses on loans and unfunded commitments rose by $0.4M QoQ
- Tangible common equity ratio declined to 7.89% from 8.01% at year-end 2025
- Investment portfolio balances decreased by $14.9M since year-end 2025
News Explained
The report discloses common-stock issuance that can reduce existing ownership percentages, alongside $5.0 million in dividends.
Fidelity D & D Bancorp reported unaudited results for the three and six months ended
The common-stock issuance is the ownership-changing mechanism: issuing additional shares increases total share count and reduces an existing holder’s percentage ownership absent offsetting changes.
The balance-sheet expansion was funded partly by
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 22 | First-quarter earnings | Positive | -0.2% | Net income and diluted EPS increased alongside loan growth and wider FTE margins. |
| Jan 28 | Annual earnings report | Positive | -2.2% | Annual net income, EPS, net interest income and asset quality all improved. |
| Oct 22 | Third-quarter earnings | Positive | +2.7% | Quarterly and year-to-date earnings rose as loans grew and credit provisions declined. |
| Jul 23 | Second-quarter earnings | Positive | +4.3% | Net income, net interest income and non-interest income increased year over year. |
| Apr 23 | First-quarter earnings | Positive | -0.2% | Quarterly earnings, interest income, margin and assets increased year over year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
FDBC's earnings-specific reactions were mixed, with three negative and two positive outcomes despite generally favorable reported results.
Key Terms
fully-taxable equivalent financial
net interest margin financial
non-performing assets financial
unfunded commitments financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DUNMORE, Pa., July 22, 2026 (GLOBE NEWSWIRE) -- 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 six-month periods ended June 30, 2026.
Unaudited Financial Information
Net income for the quarter ended June 30, 2026 was
For the six months ended June 30, 2026, net income was
“We delivered an outstanding second quarter, driven by strong revenue growth and favorable credit performance,” said Daniel J. Santaniello, President and Chief Executive Officer. “Our continued execution on key strategic initiatives propelled total assets to nearly
Consolidated Second Quarter Operating Results Overview
Net interest income was
The FTE yield on interest-earning assets was
For the three months ended June 30, 2026, the provision for credit losses on loans was
Total non-interest income increased
Non-interest expenses increased
The provision for income taxes increased
Consolidated Year-To-Date Operating Results Overview
Net interest income was
The overall cost of interest-bearing liabilities was
For the six months ended June 30, 2026, the provision for credit losses on loans was
Total non-interest income for the six months ended June 30, 2026 was
Non-interest expenses increased to
The provision for income taxes increased
Consolidated Balance Sheet & Asset Quality Overview
The Company’s total assets had a balance of
During the same time period, total liabilities increased
Shareholders’ equity increased
Asset Quality
Total non-performing assets were
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
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
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: | June 30, 2026 | December 31, 2025 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 207,660 | $ | 148,060 | ||||
| Investment securities | 509,032 | 523,946 | ||||||
| Restricted investments in bank stock | 9,464 | 4,373 | ||||||
| Loans and leases | 2,088,893 | 1,911,724 | ||||||
| Allowance for credit losses on loans | (21,314 | ) | (20,168 | ) | ||||
| Premises and equipment, net | 45,929 | 48,950 | ||||||
| Life insurance cash surrender value | 60,189 | 59,396 | ||||||
| Goodwill and core deposit intangible | 20,126 | 20,242 | ||||||
| Other assets | 51,245 | 51,535 | ||||||
| Total assets | $ | 2,971,224 | $ | 2,748,058 | ||||
| Liabilities | ||||||||
| Non-interest-bearing deposits | $ | 582,920 | $ | 552,581 | ||||
| Interest-bearing deposits | 1,975,732 | 1,914,772 | ||||||
| Total deposits | 2,558,652 | 2,467,353 | ||||||
| Short-term borrowings | 119,802 | 20 | ||||||
| Secured borrowings | 4,767 | 5,995 | ||||||
| Other liabilities | 35,098 | 35,830 | ||||||
| Total liabilities | 2,718,319 | 2,509,198 | ||||||
| Shareholders' equity | 252,905 | 238,860 | ||||||
| Total liabilities and shareholders' equity | $ | 2,971,224 | $ | 2,748,058 | ||||
| Average Year-To-Date Balances: | June 30, 2026 | December 31, 2025 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 145,072 | $ | 133,171 | ||||
| Investment securities | 517,341 | 544,390 | ||||||
| Restricted investments in bank stock | 4,531 | 4,189 | ||||||
| Loans and leases | 1,993,336 | 1,866,637 | ||||||
| Allowance for credit losses on loans | (20,844 | ) | (20,315 | ) | ||||
| Premises and equipment, net | 51,936 | 40,457 | ||||||
| Life insurance cash surrender value | 59,855 | 58,786 | ||||||
| Goodwill and core deposit intangible | 20,173 | 20,358 | ||||||
| Other assets | 48,162 | 42,032 | ||||||
| Total assets | $ | 2,819,562 | $ | 2,689,705 | ||||
| Liabilities | ||||||||
| Non-interest-bearing deposits | $ | 569,127 | $ | 543,794 | ||||
| Interest-bearing deposits | 1,962,805 | 1,884,507 | ||||||
| Total deposits | 2,531,932 | 2,428,301 | ||||||
| Short-term borrowings | 683 | 17 | ||||||
| Secured borrowings | 5,174 | 6,127 | ||||||
| Other liabilities | 35,714 | 36,296 | ||||||
| Total liabilities | 2,573,503 | 2,470,741 | ||||||
| Shareholders' equity | 246,059 | 218,964 | ||||||
| Total liabilities and shareholders' equity | $ | 2,819,562 | $ | 2,689,705 | ||||
| FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Statements of Income (dollars in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | |||||||||||||
| Interest income | ||||||||||||||||
| Loans and leases | $ | 28,475 | $ | 25,328 | $ | 55,093 | $ | 49,924 | ||||||||
| Securities and other | 3,242 | 4,437 | 7,084 | 8,149 | ||||||||||||
| Total interest income | 31,717 | 29,765 | 62,177 | 58,073 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | (10,887 | ) | (11,738 | ) | (21,868 | ) | (22,925 | ) | ||||||||
| Borrowings | (73 | ) | (98 | ) | (146 | ) | (186 | ) | ||||||||
| Total interest expense | (10,960 | ) | (11,836 | ) | (22,014 | ) | (23,111 | ) | ||||||||
| Net interest income | 20,757 | 17,929 | 40,163 | 34,962 | ||||||||||||
| Provision for credit losses on loans | (400 | ) | (300 | ) | (1,275 | ) | (755 | ) | ||||||||
| Net (provision) benefit for credit losses on unfunded loan commitments | (340 | ) | (20 | ) | (430 | ) | 65 | |||||||||
| Non-interest income | 5,483 | 5,359 | 10,672 | 10,332 | ||||||||||||
| Non-interest expense | (15,992 | ) | (14,710 | ) | (31,183 | ) | (29,264 | ) | ||||||||
| Income before income taxes | 9,508 | 8,258 | 17,947 | 15,340 | ||||||||||||
| Provision for income taxes | (1,659 | ) | (1,337 | ) | (2,638 | ) | (2,428 | ) | ||||||||
| Net income | $ | 7,849 | $ | 6,921 | $ | 15,309 | $ | 12,912 | ||||||||
| Three Months Ended | ||||||||||||||||||||
| Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | ||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans and leases | $ | 28,475 | $ | 26,618 | $ | 27,269 | $ | 26,660 | $ | 25,328 | ||||||||||
| Securities and other | 3,242 | 3,842 | 3,815 | 4,022 | 4,437 | |||||||||||||||
| Total interest income | 31,717 | 30,460 | 31,084 | 30,682 | 29,765 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | (10,887 | ) | (10,981 | ) | (11,717 | ) | (12,158 | ) | (11,738 | ) | ||||||||||
| Borrowings | (73 | ) | (73 | ) | (87 | ) | (95 | ) | (98 | ) | ||||||||||
| Total interest expense | (10,960 | ) | (11,054 | ) | (11,804 | ) | (12,253 | ) | (11,836 | ) | ||||||||||
| Net interest income | 20,757 | 19,406 | 19,280 | 18,429 | 17,929 | |||||||||||||||
| Provision for credit losses on loans | (400 | ) | (875 | ) | (100 | ) | (200 | ) | (300 | ) | ||||||||||
| Net (provision) benefit for credit losses on unfunded loan commitments | (340 | ) | (90 | ) | (170 | ) | (110 | ) | (20 | ) | ||||||||||
| Non-interest income | 5,483 | 5,189 | 5,122 | 5,105 | 5,359 | |||||||||||||||
| Non-interest expense | (15,992 | ) | (15,191 | ) | (14,921 | ) | (14,632 | ) | (14,710 | ) | ||||||||||
| Income before income taxes | 9,508 | 8,439 | 9,211 | 8,592 | 8,258 | |||||||||||||||
| Provision for income taxes | (1,659 | ) | (979 | ) | (1,271 | ) | (1,246 | ) | (1,337 | ) | ||||||||||
| Net income | $ | 7,849 | $ | 7,460 | $ | 7,940 | $ | 7,346 | $ | 6,921 | ||||||||||
| FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands) | ||||||||||||||||||||
| At Period End: | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 207,660 | $ | 154,995 | $ | 148,060 | $ | 142,161 | $ | 165,495 | ||||||||||
| Investment securities | 509,032 | 512,308 | 523,946 | 529,263 | 545,821 | |||||||||||||||
| Restricted investments in bank stock | 9,464 | 4,482 | 4,373 | 4,301 | 4,240 | |||||||||||||||
| Loans and leases | 2,088,893 | 2,023,671 | 1,911,724 | 1,914,893 | 1,837,477 | |||||||||||||||
| Allowance for credit losses on loans | (21,314 | ) | (20,942 | ) | (20,168 | ) | (20,218 | ) | (19,976 | ) | ||||||||||
| Premises and equipment, net | 45,929 | 52,738 | 48,950 | 45,422 | 40,097 | |||||||||||||||
| Life insurance cash surrender value | 60,189 | 59,792 | 59,396 | 58,995 | 58,849 | |||||||||||||||
| Goodwill and core deposit intangible | 20,126 | 20,181 | 20,242 | 20,303 | 20,364 | |||||||||||||||
| Other assets | 51,245 | 52,040 | 51,535 | 41,630 | 46,208 | |||||||||||||||
| Total assets | $ | 2,971,224 | $ | 2,859,265 | $ | 2,748,058 | $ | 2,736,750 | $ | 2,698,575 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Non-interest-bearing deposits | $ | 582,920 | $ | 574,808 | $ | 552,581 | $ | 539,118 | $ | 558,074 | ||||||||||
| Interest-bearing deposits | 1,975,732 | 2,001,686 | 1,914,772 | 1,927,795 | 1,877,254 | |||||||||||||||
| Total deposits | 2,558,652 | 2,576,494 | 2,467,353 | 2,466,913 | 2,435,328 | |||||||||||||||
| Short-term borrowings | 119,802 | 10 | 20 | 20 | 10 | |||||||||||||||
| Secured borrowings | 4,767 | 4,825 | 5,995 | 6,059 | 6,134 | |||||||||||||||
| Other liabilities | 35,098 | 33,284 | 35,830 | 34,511 | 39,191 | |||||||||||||||
| Total liabilities | 2,718,319 | 2,614,613 | 2,509,198 | 2,507,503 | 2,480,663 | |||||||||||||||
| Shareholders' equity | 252,905 | 244,652 | 238,860 | 229,247 | 217,912 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,971,224 | $ | 2,859,265 | $ | 2,748,058 | $ | 2,736,750 | $ | 2,698,575 | ||||||||||
| Average Quarterly Balances: | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 115,115 | $ | 175,362 | $ | 150,706 | $ | 122,808 | $ | 161,316 | ||||||||||
| Investment securities | 510,978 | 523,776 | 529,518 | 544,476 | 546,149 | |||||||||||||||
| Restricted investments in bank stock | 4,633 | 4,427 | 4,345 | 4,277 | 4,158 | |||||||||||||||
| Loans and leases | 2,040,314 | 1,945,837 | 1,927,366 | 1,892,439 | 1,832,162 | |||||||||||||||
| Allowance for credit losses on loans | (21,394 | ) | (20,289 | ) | (20,478 | ) | (20,400 | ) | (20,357 | ) | ||||||||||
| Premises and equipment, net | 53,498 | 50,358 | 47,400 | 42,602 | 35,954 | |||||||||||||||
| Life insurance cash surrender value | 60,051 | 59,656 | 59,255 | 58,875 | 58,697 | |||||||||||||||
| Goodwill and core deposit intangible | 20,143 | 20,203 | 20,263 | 20,325 | 20,386 | |||||||||||||||
| Other assets | 46,163 | 50,183 | 39,527 | 42,724 | 42,729 | |||||||||||||||
| Total assets | $ | 2,829,501 | $ | 2,809,513 | $ | 2,757,902 | $ | 2,708,126 | $ | 2,681,194 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Non-interest-bearing deposits | $ | 579,871 | $ | 558,264 | $ | 549,911 | $ | 544,511 | $ | 547,278 | ||||||||||
| Interest-bearing deposits | 1,960,662 | 1,964,972 | 1,930,040 | 1,901,166 | 1,878,548 | |||||||||||||||
| Total deposits | 2,540,533 | 2,523,236 | 2,479,951 | 2,445,677 | 2,425,826 | |||||||||||||||
| Short-term borrowings | 1,343 | 16 | 20 | 16 | 10 | |||||||||||||||
| Secured borrowings | 4,796 | 5,557 | 6,028 | 6,093 | 6,162 | |||||||||||||||
| Other liabilities | 34,509 | 36,931 | 37,754 | 36,415 | 36,050 | |||||||||||||||
| Total liabilities | 2,581,181 | 2,565,740 | 2,523,753 | 2,488,201 | 2,468,048 | |||||||||||||||
| Shareholders' equity | 248,320 | 243,773 | 234,149 | 219,925 | 213,146 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,829,501 | $ | 2,809,513 | $ | 2,757,902 | $ | 2,708,126 | $ | 2,681,194 | ||||||||||
| FIDELITY D & D BANCORP, INC. Selected Financial Ratios and Other Financial Data | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | ||||||||||||||||
| Selected returns and financial ratios | ||||||||||||||||||||
| Basic earnings per share | $ | 1.34 | $ | 1.29 | $ | 1.38 | $ | 1.27 | $ | 1.20 | ||||||||||
| Diluted earnings per share | $ | 1.33 | $ | 1.28 | $ | 1.37 | $ | 1.27 | $ | 1.20 | ||||||||||
| Dividends per share | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.40 | $ | 0.40 | ||||||||||
| Yield on interest-earning assets (FTE)* | 4.86 | % | 4.77 | % | 4.83 | % | 4.83 | % | 4.77 | % | ||||||||||
| Cost of interest-bearing liabilities | 2.24 | % | 2.27 | % | 2.42 | % | 2.55 | % | 2.52 | % | ||||||||||
| Cost of funds | 1.73 | % | 1.77 | % | 1.88 | % | 1.98 | % | 1.95 | % | ||||||||||
| Net interest spread (FTE)* | 2.62 | % | 2.50 | % | 2.41 | % | 2.28 | % | 2.25 | % | ||||||||||
| Net interest margin (FTE)* | 3.22 | % | 3.08 | % | 3.04 | % | 2.95 | % | 2.92 | % | ||||||||||
| Return on average assets | 1.11 | % | 1.08 | % | 1.14 | % | 1.08 | % | 1.04 | % | ||||||||||
| Pre-provision net revenue to average assets* | 1.45 | % | 1.36 | % | 1.36 | % | 1.30 | % | 1.28 | % | ||||||||||
| Return on average equity | 12.68 | % | 12.41 | % | 13.45 | % | 13.25 | % | 13.02 | % | ||||||||||
| Return on average tangible equity* | 13.80 | % | 13.53 | % | 14.73 | % | 14.60 | % | 14.40 | % | ||||||||||
| Efficiency ratio (FTE)* | 59.19 | % | 58.53 | % | 58.35 | % | 60.17 | % | 61.17 | % | ||||||||||
| Expense ratio | 1.49 | % | 1.36 | % | 1.36 | % | 1.39 | % | 1.40 | % | ||||||||||
| Six months ended | ||||||||
| Jun. 30, 2026 | Jun. 30, 2025 | |||||||
| Basic earnings per share | $ | 2.64 | $ | 2.24 | ||||
| Diluted earnings per share | $ | 2.63 | $ | 2.23 | ||||
| Dividends per share | $ | 0.86 | $ | 0.80 | ||||
| Yield on interest-earning assets (FTE)* | 4.82 | % | 4.75 | % | ||||
| Cost of interest-bearing liabilities | 2.25 | % | 2.51 | % | ||||
| Cost of funds | 1.75 | % | 1.94 | % | ||||
| Net interest spread (FTE)* | 2.57 | % | 2.24 | % | ||||
| Net interest margin (FTE)* | 3.15 | % | 2.91 | % | ||||
| Return on average assets | 1.09 | % | 0.98 | % | ||||
| Pre-provision net revenue to average assets* | 1.41 | % | 1.22 | % | ||||
| Return on average equity | 12.55 | % | 12.35 | % | ||||
| Return on average tangible equity* | 13.67 | % | 13.68 | % | ||||
| Efficiency ratio (FTE)* | 58.87 | % | 61.42 | % | ||||
| Expense ratio | 1.43 | % | 1.38 | % | ||||
| Other financial data | At period end: | |||||||||||||||||||
| (dollars in thousands except per share data) | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | |||||||||||||||
| Assets under management | $ | 1,219,415 | $ | 1,096,776 | $ | 1,058,881 | $ | 1,037,414 | $ | 1,030,268 | ||||||||||
| Book value per share | $ | 43.54 | $ | 42.14 | $ | 41.39 | $ | 39.75 | $ | 37.78 | ||||||||||
| Tangible book value per share* | $ | 40.08 | $ | 38.67 | $ | 37.88 | $ | 36.23 | $ | 34.25 | ||||||||||
| Equity to assets | 8.51 | % | 8.56 | % | 8.69 | % | 8.38 | % | 8.08 | % | ||||||||||
| Tangible common equity ratio* | 7.89 | % | 7.91 | % | 8.01 | % | 7.69 | % | 7.38 | % | ||||||||||
| Allowance for credit losses on loans to: | ||||||||||||||||||||
| Total loans | 1.02 | % | 1.04 | % | 1.06 | % | 1.06 | % | 1.09 | % | ||||||||||
| Non-accrual loans | 12.23x | 8.65x | 10.66x | 7.78x | 6.50x | |||||||||||||||
| Non-accrual loans to total loans | 0.08 | % | 0.12 | % | 0.10 | % | 0.14 | % | 0.17 | % | ||||||||||
| Non-performing assets to total assets | 0.06 | % | 0.09 | % | 0.08 | % | 0.11 | % | 0.13 | % | ||||||||||
| Net charge-offs to average total loans | 0.01 | % | 0.02 | % | 0.03 | % | 0.03 | % | 0.05 | % | ||||||||||
| Capital Adequacy Ratios | ||||||||||||||||||||
| Total risk-based capital ratio | 14.29 | % | 14.45 | % | 14.78 | % | 14.52 | % | 14.72 | % | ||||||||||
| Common equity tier 1 risk-based capital ratio | 13.17 | % | 13.33 | % | 13.65 | % | 13.39 | % | 13.57 | % | ||||||||||
| Tier 1 risk-based capital ratio | 13.17 | % | 13.33 | % | 13.65 | % | 13.39 | % | 13.57 | % | ||||||||||
| Leverage ratio | 9.51 | % | 9.38 | % | 9.34 | % | 9.27 | % | 9.16 | % | ||||||||||
* 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) | Jun. 30, 2026 | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | |||||||||||||||
| FTE net interest income (non-GAAP) | ||||||||||||||||||||
| Interest income (GAAP) | $ | 31,717 | $ | 30,460 | $ | 31,084 | $ | 30,682 | $ | 29,765 | ||||||||||
| Adjustment to FTE | 777 | 784 | 800 | 785 | 760 | |||||||||||||||
| Interest income adjusted to FTE (non-GAAP) | 32,494 | 31,244 | 31,884 | 31,467 | 30,525 | |||||||||||||||
| Interest expense (GAAP) | 10,960 | 11,054 | 11,804 | 12,253 | 11,836 | |||||||||||||||
| Net interest income adjusted to FTE (non-GAAP) | $ | 21,534 | $ | 20,190 | $ | 20,080 | $ | 19,214 | $ | 18,689 | ||||||||||
| Efficiency Ratio (non-GAAP) | ||||||||||||||||||||
| Non-interest expenses (GAAP) | $ | 15,992 | $ | 15,191 | $ | 14,921 | $ | 14,632 | $ | 14,710 | ||||||||||
| Net interest income (GAAP) | 20,757 | 19,406 | 19,280 | 18,429 | 17,929 | |||||||||||||||
| Plus: taxable equivalent adjustment | 777 | 784 | 800 | 785 | 760 | |||||||||||||||
| Non-interest income (GAAP) | 5,483 | 5,189 | 5,122 | 5,105 | 5,359 | |||||||||||||||
| Loss (Gain) on sales of securities | - | 577 | 371 | (3 | ) | - | ||||||||||||||
| Net interest income (FTE) plus adjusted non-interest income (non-GAAP) | $ | 27,017 | $ | 25,956 | $ | 25,573 | $ | 24,316 | $ | 24,048 | ||||||||||
| Efficiency ratio (non-GAAP) (1) | 59.19 | % | 58.53 | % | 58.35 | % | 60.17 | % | 61.17 | % | ||||||||||
| (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) | $ | 2,971,224 | $ | 2,859,265 | $ | 2,748,058 | $ | 2,736,750 | $ | 2,698,575 | ||||||||||
| Less: Intangible assets | (20,126 | ) | (20,181 | ) | (20,242 | ) | (20,303 | ) | (20,364 | ) | ||||||||||
| Tangible assets | 2,951,098 | 2,839,084 | 2,727,816 | 2,716,447 | 2,678,211 | |||||||||||||||
| Total shareholders' equity (GAAP) | 252,905 | 244,652 | 238,860 | 229,247 | 217,912 | |||||||||||||||
| Less: Intangible assets | (20,126 | ) | (20,181 | ) | (20,242 | ) | (20,303 | ) | (20,364 | ) | ||||||||||
| Tangible common equity | 232,779 | 224,471 | 218,618 | 208,944 | 197,548 | |||||||||||||||
| Common shares outstanding, end of period | 5,808,518 | 5,805,180 | 5,771,110 | 5,767,288 | 5,767,490 | |||||||||||||||
| Tangible Common Book Value per Share | $ | 40.08 | $ | 38.67 | $ | 37.88 | $ | 36.23 | $ | 34.25 | ||||||||||
| Tangible Common Equity Ratio | 7.89 | % | 7.91 | % | 8.01 | % | 7.69 | % | 7.38 | % | ||||||||||
| Pre-Provision Net Revenue to Average Assets | ||||||||||||||||||||
| Income before taxes (GAAP) | $ | 9,508 | $ | 8,439 | $ | 9,211 | $ | 8,592 | $ | 8,258 | ||||||||||
| Plus: Provision for credit losses | 740 | 965 | 270 | 310 | 320 | |||||||||||||||
| Total pre-provision net revenue (non-GAAP) | 10,248 | 9,404 | 9,481 | 8,902 | 8,578 | |||||||||||||||
| Total (annualized) (non-GAAP) | $ | 41,103 | $ | 38,139 | $ | 37,615 | $ | 35,316 | $ | 34,404 | ||||||||||
| Average assets | $ | 2,829,501 | $ | 2,809,513 | $ | 2,757,902 | $ | 2,708,126 | $ | 2,681,194 | ||||||||||
| Pre-Provision Net Revenue to Average Assets (non-GAAP) | 1.45 | % | 1.36 | % | 1.36 | % | 1.30 | % | 1.28 | % | ||||||||||
| Reconciliations of Non-GAAP Measures to GAAP | Six months ended | |||||||
| (dollars in thousands) | Jun. 30, 2026 | Jun. 30, 2025 | ||||||
| FTE net interest income (non-GAAP) | ||||||||
| Interest income (GAAP) | $ | 62,177 | $ | 58,073 | ||||
| Adjustment to FTE | 1,561 | 1,531 | ||||||
| Interest income adjusted to FTE (non-GAAP) | 63,738 | 59,604 | ||||||
| Interest expense (GAAP) | 22,014 | 23,111 | ||||||
| Net interest income adjusted to FTE (non-GAAP) | $ | 41,724 | 36,493 | |||||
| Efficiency Ratio (non-GAAP) | ||||||||
| Non-interest expenses (GAAP) | $ | 31,183 | $ | 29,264 | ||||
| Net interest income (GAAP) | 40,163 | 34,962 | ||||||
| Plus: taxable equivalent adjustment | 1,561 | 1,531 | ||||||
| Non-interest income (GAAP) | 10,672 | 10,332 | ||||||
| Loss on sales of securities | 577 | 822 | ||||||
| Net interest income (FTE) plus non-interest income (non-GAAP) | $ | 52,973 | $ | 47,647 | ||||
| Efficiency ratio (non-GAAP) (1) | 58.87 | % | 61.42 | % | ||||
| (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 (loss) income. | ||||||||
| Pre-Provision Net Revenue to Average Assets | ||||||||
| Income before taxes (GAAP) | $ | 17,947 | $ | 15,340 | ||||
| Plus: Provision for credit losses | 1,705 | 690 | ||||||
| Total pre-provision net revenue (non-GAAP) | $ | 19,652 | $ | 16,030 | ||||
| Total (annualized) (non-GAAP) | $ | 39,630 | $ | 32,326 | ||||
| Average assets | $ | 2,819,562 | $ | 2,645,679 | ||||
| Pre-Provision Net Revenue to Average Assets (non-GAAP) | 1.41 | % | 1.22 | % | ||||
Contacts:
| Daniel J. Santaniello | Salvatore R. DeFrancesco, Jr. |
| President and Chief Executive Officer | Treasurer and Chief Financial Officer |
| 570-504-8035 | 570-504-8000 |
