Fidelity D & D Bancorp, Inc. Reports Third Quarter 2026 Financial Results

Loan growth and lower funding costs supported higher earnings, while expenses, credit-loss provisions and short-term borrowings increased.

Rhea-AI Summary

Fidelity D & D Bancorp (NASDAQ: FDBC) reported third-quarter 2026 net income of $8.9 million, up 21% from a year earlier. Diluted earnings per share rose to $1.53 from $1.27. Net interest income increased 18%, while non-interest income rose 20% to $6.1 million. The fully taxable-equivalent net interest margin, a non-GAAP measure, widened 35 basis points to 3.30%. Non-interest expenses increased 10% to $16.1 million, and the loan credit-loss provision rose to $1.1 million from $200 thousand.

Nine-month net income increased 20% to $24.2 million, or $4.16 per diluted share. Since December 31, 2025, net loans and leases grew $261.7 million, deposits increased $142.9 million and short-term borrowings rose $132.7 million. Assets reached $3.0 billion. Tangible common equity fell to 7.54% of assets from 8.01%, while non-performing assets increased to $2.6 million from $2.2 million.

26 points · 0 major

PositiveiHow this balance works

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0 major · 13 points

How the balance works

Positive

• Moderate pointThird-quarter net income rose 21% to $8.9 million; diluted EPS increased to $1.53 from $1.27.
• Moderate pointThird-quarter net interest income increased $3.4 million, or 18%, year over year.
• Moderate pointThird-quarter fully taxable-equivalent net interest margin widened 35 basis points to 3.30% year over year.
• Moderate pointThird-quarter non-interest income increased 20% to $6.1 million, including higher wealth revenue and a property-sale gain.
• Moderate pointThird-quarter efficiency ratio improved to 56.11% from 60.17%, indicating lower expenses relative to revenue.
• Moderate pointNet loans and leases grew $261.7 million from December 31, 2025, to September 30, 2026.
• Moderate pointDeposits increased $142.9 million from year-end 2025, supporting loan growth and higher interest-bearing cash balances.

19 minor points

• Minor pointNine-month net income rose 20% to $24.2 million; diluted EPS increased to $4.16 from $3.50.
• Minor pointThird-quarter average loans increased $237.3 million year over year; fully taxable-equivalent loan yields rose 4 basis points.
• Minor pointThird-quarter fully taxable-equivalent earning-asset yield increased to 4.95% from 4.83% a year earlier.
• Minor pointThird-quarter interest-bearing liability costs fell to 2.26% from 2.55%; cost of funds declined to 1.75% from 1.98%.
• Minor pointThird-quarter fully taxable-equivalent net interest spread increased to 2.69% from 2.28% a year earlier.
• Minor pointThird-quarter unfunded-commitment credit-loss provision shifted to a $50 thousand benefit from a $110 thousand provision.
• Minor pointNine-month net interest income increased to $62.0 million from $53.4 million a year earlier.
• Minor pointNine-month average loans increased $193.1 million; fully taxable-equivalent loan yields rose 5 basis points year over year.
• Minor pointNine-month fully taxable-equivalent net interest margin widened 28 basis points to 3.20% year over year.
• Minor pointNine-month fully taxable-equivalent earning-asset yield increased to 4.86% from 4.78% a year earlier.
• Minor pointNine-month interest-bearing liability costs fell to 2.26% from 2.52%; cost of funds declined to 1.75% from 1.96%.
• Minor pointNine-month fully taxable-equivalent net interest spread increased to 2.60% from 2.26% a year earlier.
• Minor pointNine-month non-interest income increased 9% to $16.8 million, supported by wealth management and commercial-loan fees.
• Minor pointPurchased renewable energy tax credits provided approximately $0.5 million of nine-month income-tax benefit.
• Minor pointCash and cash equivalents increased $25.5 million from December 31, 2025, to September 30, 2026.
• Minor pointShareholders’ equity increased 3% to $247.0 million from December 31, 2025.
• Minor pointTangible book value per share rose to $39.06 from $37.88 at December 31, 2025.
• Minor pointPast-due and non-accrual loans fell to 0.19% of loans from 0.26% at December 31, 2025.
• Minor pointNet charge-offs to average total loans declined to 0.01% from 0.03% at December 31, 2025.

Negative

• Moderate pointShort-term borrowings increased $132.7 million from December 31, 2025, to September 30, 2026.
• Moderate pointThird-quarter loan credit-loss provision increased to $1.1 million from $200 thousand, primarily reflecting loan growth.
• Moderate pointThird-quarter non-interest expenses rose 10% to $16.1 million, including higher staffing, technology and donation costs.
• Moderate pointAccumulated other comprehensive income sustained a $9.7 million after-tax reduction during the nine months.
• Minor pointTangible common equity declined to 7.54% of assets from 8.01% at December 31, 2025.

8 minor points

• Minor pointNine-month loan credit-loss provision increased to $2.4 million from $955 thousand, reflecting higher loan growth.
• Minor pointNine-month unfunded-commitment credit-loss provision rose to $380 thousand from $45 thousand, reflecting commercial construction commitment growth.
• Minor pointNine-month non-interest expenses rose 8% to $47.3 million, including staffing, technology, donations and professional services.
• Minor pointNine-month investment interest income decreased $1.5 million, with lower yields and average investment balances.
• Minor pointNine-month gains from sold loans decreased $0.6 million year over year.
• Minor pointThird-quarter income-tax provision increased $0.6 million year over year, primarily reflecting higher pretax income.
• Minor pointNine-month income-tax provision increased $0.8 million year over year, primarily reflecting higher pretax income.
• Minor pointNon-performing assets increased to $2.6 million from $2.2 million at year-end; the asset ratio remained 0.08%.

News Explained

For the nine months ended September 30, 2026, Fidelity D & D Bancorp attributed $1.2 million of its equity increase to common-stock issuance and restricted stock. Issuing additional shares increases the share count and reduces existing holders’ percentage ownership absent offsetting changes.

Key Figures

Quarterly net income: $8.9 million, versus $7.3 million Quarterly diluted EPS: $1.53, versus $1.27 Nine-month net income: $24.2 million, versus $20.3 million +4 more

Quarterly net income

$8.9 million, versus $7.3 million

Three months ended September 30, 2026; prior-year quarter

Quarterly diluted EPS

$1.53, versus $1.27

Third quarter 2026; prior-year quarter

Nine-month net income

$24.2 million, versus $20.3 million

Nine months ended September 30, 2026; prior-year period

Nine-month diluted EPS

$4.16, versus $3.50

Nine months ended September 30, 2026; prior-year period

Net interest income growth

18%

Third quarter 2026 versus third quarter 2025

FTE net interest margin

3.30%, increased 35 basis points

Third quarter 2026

Provision for credit losses on loans

$1.1 million, versus $200 thousand

Three months ended September 30, 2026; prior-year quarter

Previous Earnings Reports

3 past events · Latest: Jul 22

Same Type 3 events

1. Jul 22

   Quarterly earnings

   24h Move

   -0.1%

   Second-quarter net income and diluted EPS rose year over year; quarterly net interest margin reached 3.22%.

2. Apr 22

   Quarterly earnings

   24h Move

   +0.3%

   First-quarter net income rose 25% year over year, with higher net interest income and total assets.

3. Oct 22

   Quarterly earnings

   24h Move

   +2.7%

   Third-quarter 2025 net income reached $7.3 million, with year-to-date net income of $20.3 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

fully-taxable equivalent, non-gaap, net interest margin, accumulated other comprehensive income, +1 more

5 terms

fully-taxable equivalent financial

"The fully-taxable equivalent ("FTE") (non-GAAP measurement) yield on loans increased 4 basis points"

A fully-taxable equivalent (FTE) converts income from a tax-advantaged asset into the pretax yield an investor would need from a taxable asset to get the same after-tax return. It matters because it lets investors compare returns side-by-side—like putting two paychecks on the same after-tax footing—so you can decide whether a tax-free bond or a taxable investment actually pays more once taxes are accounted for.

non-gaap financial

"The fully-taxable equivalent ("FTE") (non-GAAP measurement) yield on loans increased 4 basis points"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

net interest margin financial

"a 35 basis point increase in FTE net interest margin to 3.30%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

accumulated other comprehensive income financial

"Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios."

Accumulated other comprehensive income is a running total on a company’s balance sheet that records certain gains and losses not included in reported profit, such as unrealized gains or losses on some investments, currency translation differences, and pension plan adjustments. Think of it like items in a shopping cart you haven’t paid for yet: it doesn’t affect current profit but changes the company’s overall equity and signals potential future swings in value that investors should watch.

available-for-sale financial

"changes in the fair value of available-for-sale securities"

A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.

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SCRANTON, Pa., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, Fidelity Bank, announced its unaudited, consolidated financial results for the three and nine-month periods ended September 30, 2026.

Unaudited Financial Information

Net income for the quarter ended September 30, 2026 was $8.9 million, or $1.53 per diluted share, compared to $7.3 million, or $1.27 per diluted share, for the quarter ended September 30, 2025. The $1.6 million, or 21%, increase in net income resulted primarily from a $3.4 million increase in net interest income coupled with a $1.0 million increase in non-interest income. This was partially offset by a $1.5 million increase in non-interest expense and a $0.9 million increase in the provision for credit losses on loans due to the growth of loans.

For the nine months ended September 30, 2026, net income was $24.2 million, or $4.16 diluted earnings per share, compared to $20.3 million, or $3.50 diluted earnings per share, for the nine months ended September 30, 2025.  The $3.9 million, or 20%, increase in net income stemmed from the $8.6 million increase in net interest income and $1.4 million increase in non-interest income. This was partially offset by a $3.4 million increase in non-interest expense and a $1.8 million increase in the net provision for credit losses on loans and unfunded commitments.

“We delivered record earnings in the third quarter, generating net income of $8.9 million, or $1.53 per diluted share, with total assets reaching $3.0 billion,” said Daniel J. Santaniello, President and Chief Executive Officer. “These results reflect the strong focus and dedication of our Bankers as we continue to execute on our strategic initiatives, including the successful opening of our new Corporate Center in downtown Scranton. We remain confident in our position as we enter the fourth quarter and look ahead to 2027.”

Consolidated Third Quarter Operating Results Overview

Net interest income increased $3.4 million, or 18%, compared with the third quarter of 2025, driven by higher average loan balances, improved loan yields and lower funding costs. Average loans increased $237.3 million, while the fully-taxable equivalent ("FTE") (non-GAAP measurement) yield on loans increased 4 basis points, resulting in higher interest income. Funding costs also benefited from a 29 basis point decline in the average rate paid on interest-bearing deposits, which more than offset the impact of a $76.4 million increase in average interest-bearing deposit balances. Collectively, these factors contributed to a 35 basis point increase in FTE net interest margin to 3.30%.

The FTE yield on interest-earning assets was 4.95% for the third quarter of 2026, an increase of 12 basis points from 4.83% for the third quarter of 2025. The overall cost of interest-bearing liabilities was 2.26% for the third quarter of 2026, a decrease of 29 basis points from the 2.55% for the third quarter of 2025. The cost of funds decreased 23 basis points from 1.98% to 1.75% for the third quarters of 2025 and 2026, respectively. The Company’s FTE net interest spread was 2.69% for the third quarter of 2026, an increase of 41 basis points from 2.28% recorded for the third quarter of 2025.

For the three months ended September 30, 2026, the provision for credit losses on loans was $1.1 million and a $50 thousand benefit for credit losses on unfunded commitments, compared to a $200 thousand provision for credit losses on loans and a $110 thousand provision for credit losses on unfunded commitments for the three months ended September 30, 2025. For the three months ended September 30, 2026, the increase in the provision for credit losses on loans compared to the prior year period primarily reflected growth in the loan portfolio. For the three months ended September 30, 2026, the decrease in the provision for credit losses on unfunded commitments compared to the prior-year period was primarily due to a reduction in unfunded construction commitments. 

Total non-interest income increased $1.0 million, or 20%, to $6.1 million for the third quarter of 2026 compared to $5.1 million for the third quarter of 2025. The increase included $0.4 million of higher wealth management revenue and a $0.3 million gain on the sale of bank property. Commercial loan fee income also increased $0.2 million, primarily attributable to a prepayment penalty recognized during the quarter.

Non-interest expenses increased $1.5 million, or 10%, for the third quarter of 2026 to $16.1 million from $14.6 million for the same quarter of 2025. The increase in non-interest expenses was attributed to added salaries and benefits expense of $0.6 million, primarily reflecting higher staffing levels to support business growth and strategic initiatives. Additionally, the Company experienced increases of $0.4 million in premises and equipment expenses primarily due to costs for software and subscriptions and depreciation. Donations expense increased $0.3 million in the third quarter of 2026 compared to the same period in the prior year, primarily reflecting a one-time charitable contribution. Despite the increase in non-interest expense, the efficiency ratio improved to 56.11% from 60.17% in the prior-year period, reflecting improved operating leverage.

The provision for income taxes increased $0.6 million during the three months ended September 30, 2026 compared to the same period in 2025 primarily due to a $2.2 million increase in income before taxes.

Consolidated Year-To-Date Operating Results Overview

Net interest income was $62.0 million for the nine months ended September 30, 2026 compared to $53.4 million for the nine months ended September 30, 2025. The $8.6 million increase in net interest income resulted from the increase of $6.5 million in interest income primarily due to a $134.6 million increase in the average balance of interest-earning assets and an 8 basis point increase in FTE yield. The largest contributor to interest income growth was the loan portfolio which produced an additional $8.8 million in interest income from an increase of 5 basis points in FTE loan yields on $193.1 million in higher average balances. The increase in interest income was partially offset by a decrease of $1.5 million in interest earned on the investment portfolio due to decreases of 17 basis points in yield and $49.8 million in average balances. Additionally, the Company experienced a decrease of $2.0 million in interest expense on deposits due to a 26 basis point decrease in rates paid on interest-bearing deposits which more than offset the increase from $98.6 million in higher average balances during the nine months ended September 30, 2026.

The overall cost of interest-bearing liabilities was 2.26% for the nine months ended September 30, 2026 compared to 2.52% for the nine months ended September 30, 2025. The cost of funds decreased 21 basis points to 1.75% for the nine months ended September 30, 2026 from 1.96% for the same period of 2025. The FTE yield on interest earning assets was 4.86% for the nine months ended September 30, 2026, an increase of 8 basis points from the 4.78% year-to-date September 30, 2025. The Company’s FTE net interest spread was 2.60% for the nine months ended September 30, 2026, an increase of 34 basis points from the 2.26% recorded for the same period of 2025. FTE net interest margin increased by 28 basis points to 3.20% for the nine months ended September 30, 2026 from 2.92% for the same 2025 period, primarily reflecting lower rates paid on interest-bearing deposits and higher yields earned on loans and leases.

For the nine months ended September 30, 2026, the provision for credit losses on loans was $2.4 million and the provision for credit losses on unfunded commitments was $380 thousand compared to a $955 thousand provision for credit losses on loans and a $45 thousand provision for credit losses on unfunded commitments for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, the increase in the provision for credit losses on loans compared to the prior year period was due to higher loan growth. For the nine months ended September 30, 2026, the increase in the provision for unfunded commitments compared to the prior-year period was due to growth in originations within the portfolio, specifically in commercial construction commitments.

Total non-interest income for the nine months ended September 30, 2026 was $16.8 million, an increase of $1.4 million, or 9%, from $15.4 million for the nine months ended September 30, 2025. The increase was primarily due to $1.0 million growth in wealth management revenue. Additionally, the Company saw increases of $0.3 million in fees from commercial loans with interest rate hedges and $0.4 million in service charges on commercial loans during the nine months ended September 30, 2026 compared to the same 2025 period. Partially offsetting the increase in non-interest income was a decrease of $0.6 million in gains from sold loans primarily due to a $0.5 million gain on the sale of a commercial loan during the nine months ended September 30, 2025.

Non-interest expenses increased to $47.3 million for the nine months ended September 30, 2026, an increase of $3.4 million, or 8%, from $43.9 million for the nine months ended September 30, 2025. Salaries and benefits expense increased $1.8 million due to an increase in bankers in the nine months ended September 30, 2026, compared to the same period in 2025. Additionally, the Company experienced an increase of $0.6 million in premises and equipment expenses primarily due to new technology and higher software costs. Donations expense increased $0.5 million compared to the prior-year period, primarily due to a $0.3 million contribution made to the Fidelity D & D Charitable Foundation. Professional services expense increased $0.4 million primarily attributable to improvement initiatives throughout the bank and relocation-related costs incurred in connection with the transition of bankers to the Company's new corporate headquarters, which was completed in the third quarter of 2026.

The provision for income taxes increased $0.8 million during the nine months ended September 30, 2026 compared to the same period in 2025 primarily due to a $4.8 million increase in income before taxes. Partially offsetting the increase in income tax expense was approximately $0.5 million of benefit associated with purchased renewable energy tax credits.

Consolidated Balance Sheet & Asset Quality Overview

The Company’s total assets had a balance of $3.0 billion as of September 30, 2026, an increase of $280.3 million from December 31, 2025. The increase resulted from $261.7 million of net growth in the loans and leases portfolio as of September 30, 2026 compared to December 31, 2025. Cash and cash equivalents increased $25.5 million over the same period. Investment securities decreased $10.7 million from December 31, 2025, reflecting principal paydowns, maturities and sales, and changes in the fair value of available-for-sale securities, partially offset by security purchases.

During the same time period, total liabilities increased $272.2 million, or 11%. Deposit growth of $142.9 million was utilized to fund loan growth and increase interest-bearing cash balances. Short-term borrowings increased $132.7 million during the period. The Company experienced an increase of $40.7 million in non-interest-bearing checking accounts. For interest-bearing deposit accounts, the Company experienced increases of $73.3 million in money market deposits, $44.2 million in interest-bearing checking accounts and $5.1 million in savings and clubs. These increases were partially offset by a decrease of $20.4 million in time deposits. As of September 30, 2026, the ratio of insured and collateralized deposits to total deposits was approximately 72%.

Shareholders’ equity increased $8.1 million, or 3%, to $247.0 million at September 30, 2026 from $238.9 million at December 31, 2025. The increase was caused by $16.7 million from retained earnings produced from net income of $24.2 million and $1.2 million associated with common stock issuance and restricted stock. This activity was partially offset by $7.6 million of cash dividends and a $9.7 million after-tax reduction in accumulated other comprehensive income. At September 30, 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 9.64% of total average assets as of September 30, 2026. Total risk-based capital was 14.10% of risk-weighted assets and Tier 1 risk-based capital was 12.97% of risk-weighted assets as of September 30, 2026. Tangible book value per share was $39.06 at September 30, 2026 compared to $37.88 at December 31, 2025.  Tangible common equity decreased to 7.54% of total assets at September 30, 2026 compared to 8.01% at December 31, 2025 due to a 10% increase in total tangible assets compared to a 4% increase in tangible common equity.

Asset Quality

Total non-performing assets were $2.6 million, or 0.08% of total assets, at September 30, 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 0.19% at September 30, 2026 compared to 0.26% at December 31, 2025. Net charge-offs to average total loans were 0.01% at September 30, 2026 compared to 0.03% at December 31, 2025.

About Fidelity D & D Bancorp, Inc. and Fidelity Bank

Fidelity D & D Bancorp, Inc. has built a strong history as a trusted financial advisor to the clients served by 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 are 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:		September 30, 2026				December 31, 2025
Assets
Cash and cash equivalents		$	173,606			$	148,060
Investment securities			513,270				523,946
Restricted investments in bank stock			7,729				4,373
Loans and leases			2,175,412				1,911,724
Allowance for credit losses on loans			(22,391	)			(20,168	)
Premises and equipment, net			48,122				48,950
Life insurance cash surrender value			60,593				59,396
Goodwill and core deposit intangible			20,076				20,242
Other assets			52,002				51,535
Total assets		$	3,028,419			$	2,748,058
Liabilities
Non-interest-bearing deposits		$	593,270			$	552,581
Interest-bearing deposits			2,017,002				1,914,772
Total deposits			2,610,272				2,467,353
Short-term borrowings			132,708				20
Secured borrowings			4,709				5,995
Other liabilities			33,746				35,830
Total liabilities			2,781,435				2,509,198
Shareholders' equity			246,984				238,860
Total liabilities and shareholders' equity		$	3,028,419			$	2,748,058

Average Year-To-Date Balances:		September 30, 2026				December 31, 2025
Assets
Cash and cash equivalents		$	117,413			$	133,171
Investment securities			513,320				544,390
Restricted investments in bank stock			4,775				4,189
Loans and leases			2,039,312				1,866,637
Allowance for credit losses on loans			(21,217	)			(20,315	)
Premises and equipment, net			50,249				40,457
Life insurance cash surrender value			60,056				58,786
Goodwill and core deposit intangible			20,147				20,358
Other assets			48,495				42,032
Total assets		$	2,832,550			$	2,689,705
Liabilities
Non-interest-bearing deposits		$	574,072			$	543,794
Interest-bearing deposits			1,967,786				1,884,507
Total deposits			2,541,858				2,428,301
Short-term borrowings			964				17
Secured borrowings			5,027				6,127
Other liabilities			36,165				36,296
Total liabilities			2,584,014				2,470,741
Shareholders' equity			248,536				218,964
Total liabilities and shareholders' equity		$	2,832,550			$	2,689,705

FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
(dollars in thousands)

		Three Months Ended								Nine Months Ended
		Sep. 30, 2026				Sep. 30, 2025				Sep. 30, 2026				Sep. 30, 2025
Interest income
Loans and leases		$	30,271			$	26,660			$	85,364			$	76,583
Securities and other			2,836				4,022				9,920				12,172
Total interest income			33,107				30,682				95,284				88,755
Interest expense
Deposits			(11,219	)			(12,158	)			(33,087	)			(35,083	)
Borrowings			(76	)			(95	)			(222	)			(281	)
Total interest expense			(11,295	)			(12,253	)			(33,309	)			(35,364	)
Net interest income			21,812				18,429				61,975				53,391
Provision for credit losses on loans			(1,109	)			(200	)			(2,384	)			(955	)
Net benefit (provision) for credit losses on unfunded loan commitments			50				(110	)			(380	)			(45	)
Non-interest income			6,124				5,105				16,796				15,437
Non-interest expense			(16,108	)			(14,632	)			(47,291	)			(43,896	)
Income before income taxes			10,769				8,592				28,716				23,932
Provision for income taxes			(1,851	)			(1,246	)			(4,489	)			(3,674	)
Net income		$	8,918			$	7,346			$	24,227			$	20,258

		Three Months Ended
		Sep. 30, 2026				Jun. 30, 2026				Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025
Interest income
Loans and leases		$	30,271			$	28,475			$	26,618			$	27,269			$	26,660
Securities and other			2,836				3,242				3,842				3,815				4,022
Total interest income			33,107				31,717				30,460				31,084				30,682
Interest expense
Deposits			(11,219	)			(10,887	)			(10,981	)			(11,717	)			(12,158	)
Borrowings			(76	)			(73	)			(73	)			(87	)			(95	)
Total interest expense			(11,295	)			(10,960	)			(11,054	)			(11,804	)			(12,253	)
Net interest income			21,812				20,757				19,406				19,280				18,429
Provision for credit losses on loans			(1,109	)			(400	)			(875	)			(100	)			(200	)
Net benefit (provision) for credit losses on unfunded loan commitments			50				(340	)			(90	)			(170	)			(110	)
Non-interest income			6,124				5,483				5,189				5,122				5,105
Non-interest expense			(16,108	)			(15,992	)			(15,191	)			(14,921	)			(14,632	)
Income before income taxes			10,769				9,508				8,439				9,211				8,592
Provision for income taxes			(1,851	)			(1,659	)			(979	)			(1,271	)			(1,246	)
Net income		$	8,918			$	7,849			$	7,460			$	7,940			$	7,346

FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)

At Period End:		Sep. 30, 2026				Jun. 30, 2026				Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025
Assets
Cash and cash equivalents		$	173,606			$	207,660			$	154,995			$	148,060			$	142,161
Investment securities			513,270				509,032				512,308				523,946				529,263
Restricted investments in bank stock			7,729				9,464				4,482				4,373				4,301
Loans and leases			2,175,412				2,088,893				2,023,671				1,911,724				1,914,893
Allowance for credit losses on loans			(22,391	)			(21,314	)			(20,942	)			(20,168	)			(20,218	)
Premises and equipment, net			48,122				45,929				52,738				48,950				45,422
Life insurance cash surrender value			60,593				60,189				59,792				59,396				58,995
Goodwill and core deposit intangible			20,076				20,126				20,181				20,242				20,303
Other assets			52,002				51,245				52,040				51,535				41,630
Total assets		$	3,028,419			$	2,971,224			$	2,859,265			$	2,748,058			$	2,736,750
Liabilities
Non-interest-bearing deposits		$	593,270			$	582,920			$	574,808			$	552,581			$	539,118
Interest-bearing deposits			2,017,002				1,975,732				2,001,686				1,914,772				1,927,795
Total deposits			2,610,272				2,558,652				2,576,494				2,467,353				2,466,913
Short-term borrowings			132,708				119,802				10				20				20
Secured borrowings			4,709				4,767				4,825				5,995				6,059
Other liabilities			33,746				35,098				33,284				35,830				34,511
Total liabilities			2,781,435				2,718,319				2,614,613				2,509,198				2,507,503
Shareholders' equity			246,984				252,905				244,652				238,860				229,247
Total liabilities and shareholders' equity		$	3,028,419			$	2,971,224			$	2,859,265			$	2,748,058			$	2,736,750

Average Quarterly Balances:		Sep. 30, 2026				Jun. 30, 2026				Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025
Assets
Cash and cash equivalents		$	62,996			$	115,115			$	175,362			$	150,706			$	122,808
Investment securities			505,408				510,978				523,776				529,518				544,476
Restricted investments in bank stock			5,255				4,633				4,427				4,345				4,277
Loans and leases			2,129,763				2,040,314				1,945,837				1,927,366				1,892,439
Allowance for credit losses on loans			(21,952	)			(21,394	)			(20,289	)			(20,478	)			(20,400	)
Premises and equipment, net			46,928				53,498				50,358				47,400				42,602
Life insurance cash surrender value			60,451				60,051				59,656				59,255				58,875
Goodwill and core deposit intangible			20,094				20,143				20,203				20,263				20,325
Other assets			49,158				46,163				50,183				39,527				42,724
Total assets		$	2,858,101			$	2,829,501			$	2,809,513			$	2,757,902			$	2,708,126
Liabilities
Non-interest-bearing deposits		$	583,802			$	579,871			$	558,264			$	549,911			$	544,511
Interest-bearing deposits			1,977,585				1,960,662				1,964,972				1,930,040				1,901,166
Total deposits			2,561,387				2,540,533				2,523,236				2,479,951				2,445,677
Short-term borrowings			1,517				1,343				16				20				16
Secured borrowings			4,738				4,796				5,557				6,028				6,093
Other liabilities			37,050				34,509				36,931				37,754				36,415
Total liabilities			2,604,692				2,581,181				2,565,740				2,523,753				2,488,201
Shareholders' equity			253,409				248,320				243,773				234,149				219,925
Total liabilities and shareholders' equity		$	2,858,101			$	2,829,501			$	2,809,513			$	2,757,902			$	2,708,126

FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Financial Data

		Three Months Ended
		Sep. 30, 2026				Jun. 30, 2026				Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025
Selected returns and financial ratios
Basic earnings per share		$	1.54			$	1.34			$	1.29			$	1.38			$	1.27
Diluted earnings per share		$	1.53			$	1.33			$	1.28			$	1.37			$	1.27
Dividends per share		$	0.43			$	0.43			$	0.43			$	0.43			$	0.40
Yield on interest-earning assets (FTE)*			4.95	%			4.86	%			4.77	%			4.83	%			4.83	%
Cost of interest-bearing liabilities			2.26	%			2.24	%			2.27	%			2.42	%			2.55	%
Cost of funds			1.75	%			1.73	%			1.77	%			1.88	%			1.98	%
Net interest spread (FTE)*			2.69	%			2.62	%			2.50	%			2.41	%			2.28	%
Net interest margin (FTE)*			3.30	%			3.22	%			3.08	%			3.04	%			2.95	%
Return on average assets			1.24	%			1.11	%			1.08	%			1.14	%			1.08	%
Pre-provision net revenue to average assets*			1.64	%			1.45	%			1.36	%			1.36	%			1.30	%
Return on average equity			13.96	%			12.68	%			12.41	%			13.45	%			13.25	%
Return on average tangible equity*			15.16	%			13.80	%			13.53	%			14.73	%			14.60	%
Efficiency ratio (FTE)*			56.11	%			59.19	%			58.53	%			58.35	%			60.17	%
Expense ratio			1.38	%			1.49	%			1.36	%			1.36	%			1.39	%

		Nine months ended
		Sep. 30, 2026				Sep. 30, 2025
Basic earnings per share		$	4.18			$	3.51
Diluted earnings per share		$	4.16			$	3.50
Dividends per share		$	1.29			$	1.20
Yield on interest-earning assets (FTE)*			4.86	%			4.78	%
Cost of interest-bearing liabilities			2.26	%			2.52	%
Cost of funds			1.75	%			1.96	%
Net interest spread (FTE)*			2.60	%			2.26	%
Net interest margin (FTE)*			3.20	%			2.92	%
Return on average assets			1.14	%			1.02	%
Pre-provision net revenue to average assets*			1.49	%			1.25	%
Return on average equity			13.03	%			12.67	%
Return on average tangible equity*			14.18	%			14.00	%
Efficiency ratio (FTE)*			57.90	%			61.00	%
Expense ratio			1.41	%			1.39	%

Other financial data		At period end:
(dollars in thousands except per share data)		Sep. 30, 2026				Jun. 30, 2026				Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025
Assets under management		$	1,161,520			$	1,219,415			$	1,096,776			$	1,058,881			$	1,037,414
Book value per share		$	42.52			$	43.54			$	42.14			$	41.39			$	39.75
Tangible book value per share*		$	39.06			$	40.08			$	38.67			$	37.88			$	36.23
Equity to assets			8.16	%			8.51	%			8.56	%			8.69	%			8.38	%
Tangible common equity ratio*			7.54	%			7.89	%			7.91	%			8.01	%			7.69	%
Allowance for credit losses on loans to:
Total loans			1.03	%			1.02	%			1.04	%			1.06	%			1.06	%
Non-accrual loans		8.72x				12.23x				8.65x				10.66x				7.78x
Non-accrual loans to total loans			0.12	%			0.08	%			0.12	%			0.10	%			0.14	%
Non-performing assets to total assets			0.08	%			0.06	%			0.09	%			0.08	%			0.11	%
Net charge-offs to average total loans			0.01	%			0.01	%			0.02	%			0.03	%			0.03	%
Capital Adequacy Ratios
Total risk-based capital ratio			14.10	%			14.29	%			14.45	%			14.78	%			14.52	%
Common equity tier 1 risk-based capital ratio			12.97	%			13.17	%			13.33	%			13.65	%			13.39	%
Tier 1 risk-based capital ratio			12.97	%			13.17	%			13.33	%			13.65	%			13.39	%
Leverage ratio			9.64	%			9.51	%			9.38	%			9.34	%			9.27	%

* 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)		Sep. 30, 2026				Jun. 30, 2026				Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025
FTE net interest income (non-GAAP)
Interest income (GAAP)		$	33,107			$	31,717			$	30,460			$	31,084			$	30,682
Adjustment to FTE			774				777				784				800				785
Interest income adjusted to FTE (non-GAAP)			33,881				32,494				31,244				31,884				31,467
Interest expense (GAAP)			11,295				10,960				11,054				11,804				12,253
Net interest income adjusted to FTE (non-GAAP)		$	22,586			$	21,534			$	20,190			$	20,080			$	19,214
Efficiency Ratio (non-GAAP)
Non-interest expenses (GAAP)		$	16,108			$	15,992			$	15,191			$	14,921			$	14,632
Net interest income (GAAP)			21,812				20,757				19,406				19,280				18,429
Plus: taxable equivalent adjustment			774				777				784				800				785
Non-interest income (GAAP)			6,124				5,483				5,189				5,122				5,105
Plus: Loss (gain) on sales of securities			-				-				577				371				(3	)
Net interest income (FTE) plus adjusted non-interest income (non-GAAP)		$	28,710			$	27,017			$	25,956			$	25,573			$	24,316
Efficiency ratio (non-GAAP) (1)			56.11	%			59.19	%			58.53	%			58.35	%			60.17	%
(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)		$	3,028,419			$	2,971,224			$	2,859,265			$	2,748,058			$	2,736,750
Less: Intangible assets			(20,076	)			(20,126	)			(20,181	)			(20,242	)			(20,303	)
Tangible assets			3,008,343				2,951,098				2,839,084				2,727,816				2,716,447
Total shareholders' equity (GAAP)			246,984				252,905				244,652				238,860				229,247
Less: Intangible assets			(20,076	)			(20,126	)			(20,181	)			(20,242	)			(20,303	)
Tangible common equity			226,908				232,779				224,471				218,618				208,944
Common shares outstanding, end of period			5,808,508				5,808,518				5,805,180				5,771,110				5,767,288
Tangible Common Book Value per Share		$	39.06			$	40.08			$	38.67			$	37.88			$	36.23
Tangible Common Equity Ratio			7.54	%			7.89	%			7.91	%			8.01	%			7.69	%
Pre-Provision Net Revenue to Average Assets
Income before taxes (GAAP)		$	10,769			$	9,508			$	8,439			$	9,211			$	8,592
Plus: Provision for credit losses			1,059				740				965				270				310
Total pre-provision net revenue (non-GAAP)			11,828				10,248				9,404				9,481				8,902
Total (annualized) (non-GAAP)		$	46,925			$	41,103			$	38,139			$	37,615			$	35,316
Average assets		$	2,858,101			$	2,829,501			$	2,809,513			$	2,757,902			$	2,708,126
Pre-Provision Net Revenue to Average Assets (non-GAAP)			1.64	%			1.45	%			1.36	%			1.36	%			1.30	%

Reconciliations of Non-GAAP Measures to GAAP		Nine months ended
(dollars in thousands)		Sep. 30, 2026				Sep. 30, 2025
FTE net interest income (non-GAAP)
Interest income (GAAP)		$	95,284			$	88,755
Adjustment to FTE			2,335				2,316
Interest income adjusted to FTE (non-GAAP)			97,619				91,071
Interest expense (GAAP)			33,309				35,364
Net interest income adjusted to FTE (non-GAAP)		$	64,310				55,707
Efficiency Ratio (non-GAAP)
Non-interest expenses (GAAP)		$	47,291			$	43,896
Net interest income (GAAP)			61,975				53,391
Plus: taxable equivalent adjustment			2,335				2,316
Non-interest income (GAAP)			16,796				15,437
Plus: Loss on sales of securities			577				819
Net interest income (FTE) plus non-interest income (non-GAAP)		$	81,683			$	71,963
Efficiency ratio (non-GAAP) (1)			57.90	%			61.00	%
(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)		$	28,716			$	23,932
Plus: Provision for credit losses			2,764				1,000
Total pre-provision net revenue (non-GAAP)		$	31,480			$	24,932
Total (annualized) (non-GAAP)		$	42,088			$	33,334
Average assets		$	2,832,550			$	2,666,723
Pre-Provision Net Revenue to Average Assets (non-GAAP)			1.49	%			1.25	%

Contacts:

Daniel J. Santaniello	Salvatore R. DeFrancesco, Jr.
President and Chief Executive Officer	Treasurer and Chief Financial Officer
570-504-8035	570-504-8000

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Fidelity D & D Bancorp’s third-quarter 2026 earnings?

Fidelity D & D Bancorp earned $8.9 million, or $1.53 per diluted share, in the quarter ended September 30, 2026. A year earlier, net income was $7.3 million, or $1.27 per diluted share. Net income increased 21%, supported by higher net interest income and non-interest income.

What were FDBC’s capital ratios at September 30, 2026?

FDBC’s Tier 1 capital was 9.64% of total average assets at September 30, 2026. Total risk-based capital was 14.10% of risk-weighted assets, and Tier 1 risk-based capital was 12.97%. Accumulated other comprehensive income or loss is excluded from regulatory capital ratios.

How much of Fidelity D & D Bancorp’s deposits were insured or collateralized?

Insured and collateralized deposits represented approximately 72% of total deposits at September 30, 2026.