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, 2023.
Unaudited Financial Information
Net income for the quarter ended June 30, 2023 was $5.4
million, or $0.94 diluted earnings per share, compared to $7.7
million, or $1.35 diluted earnings per share, for the quarter ended
June 30, 2022. The $2.3 million decline in net
income resulted primarily from the $2.7 million decline
in net interest income, led primarily from higher interest
expense, and $0.6 million higher non-interest expenses,
partially offset by $0.8 million lower provision for income taxes
and $0.3 million more non-interest income.
“Despite the challenging operating environment, the bank
produced strong loan growth, grew non-interest income, maintained
excellent asset quality, and controlled expenses. While the rising
costs of deposits and borrowed funds resulted in decreased earnings
this quarter, our continued focus on a well-executed strategic plan
sets the stage for future growth,” stated Daniel J. Santaniello,
President and Chief Executive Officer.
He continued, “Fidelity Bank continues to make prudent
investments based on a relationship banking strategy, attracting
new retail and business households. Our strong capital position,
and commitment to the communities we serve provide the foundation
for consistent financial performance.”
For the six months ended June 30, 2023, net income was $12.4
million, or $2.18 diluted earnings per share, compared to $15.2
million, or $2.67 diluted earnings per share, for the six months
ended June 30, 2022. The $2.8 million, or 18% decline in net income
stemmed from the $2.9 million reduction in net interest income and
$0.8 million higher non-interest expenses partially offset by $0.7
million lower provision for income taxes and $0.2 million higher
non-interest income.
Consolidated Second Quarter Operating Results
Overview
Net interest income was $15.4 million for the second quarter of
2023, a 15% decrease over the $18.1 million earned for
the second quarter of 2022. The $2.7 million decline in net
interest income resulted primarily from the increase of $6.6
million in interest expense primarily due to a 146 basis point
increase in the rates paid on interest-bearing deposits which
resulted in $5.7 million in additional interest expense. The
Company also required $64.4 million more in average short-term
borrowings during the second quarter of 2023 which contributed
$0.8 million in additional interest expense compared to the second
quarter of 2022. Partially offsetting the higher interest
expense, interest income grew $3.9 million primarily due to a $47.4
million increase in the average balance of interest-earning
assets and a 62 basis point increase in fully-taxable
equivalent ("FTE") yields on these earning assets. The loan
portfolio had the biggest impact, producing a $4.3 million increase
in FTE interest income from $142.9 million in higher average
balances and an increase of 69 basis points in FTE yields earned on
loans. FTE interest income in the commercial portfolio
increased $2.2 million during the second quarter of 2023
versus the second quarter of 2022, despite the recognition of
$0.5 million less Small Business Administration ("SBA")
fees attributable to Paycheck Protection Program ("PPP") loans
over the comparative period.
The overall cost of interest-bearing liabilities was 1.84% for
the second quarter of 2023, an increase of 161 basis points
from the 0.23% paid for the second quarter of 2022. The cost
of funds increased 120 basis points to 1.37% for the second quarter
of 2023 from 0.17% for the second quarter of 2022. The Company’s
FTE (non-GAAP measurement) net interest spread was 2.28%
for the second quarter of 2023, down 99 basis points from the 3.27%
recorded for the second quarter of 2022. FTE net interest margin
decreased by 52 basis points to 2.82% for the three months ended
June 30, 2023 from 3.34% for the same 2022 period due to
the increase in rates paid on interest-bearing
liabilities growing at a faster pace than the yields on
interest-earning assets.
The provision for credit losses on loans was $0.7 million
partially offset by the credit for credit losses on unfunded
loan commitments of $0.1 million for the second quarter of 2023.
For the three months ended June 30, 2023, the decrease in the
allowance for credit losses on unfunded commitments was due to a
reduction in unfunded commitments during the quarter. For the three
months ended June 30, 2023, the increase in the allowance for
credit losses on loans was due to growth and change in composition
of the loan portfolio.
Total non-interest income increased $0.3 million, or 7%,
to $4.5 million for the second quarter of 2023 compared
to $4.2 million for the second quarter of 2022. The
increase in non-interest income was primarily attributable to $0.3
million in fee income from commercial loans. There was also $0.2
million in additional fee income on deposits, $0.1 million higher
trust income and a $0.1 million recovery recorded from an acquired
charged-off loan during the second quarter of 2023. Partially
offsetting these increases was $0.2 million less in gains on
the sale of loans due to lower mortgage production. The Company
also had $0.2 million in losses on the write-down of premises and
equipment during the second quarter of 2023 from a branch closure
with the property moved to held-for-sale.
Non-interest expenses increased $0.6 million, or 5%,
for the second quarter of 2023 to $13.4 million from $12.8 million
for the same quarter of 2022. Premises and equipment expenses
increased by $0.4 million quarter-over-quarter from additional
equipment and software subscription related expenses. Professional
service expenses increased $0.3 million from higher professional
and legal fees. There was also an increase of $0.3 million in FDIC
insurance premium expense and an increase of $0.2 million in fraud
losses experienced during the second quarter of 2023. These
increases were partially offset by decreases of $0.5
million in salaries and employee benefit expenses and $0.1
million in PA shares tax expense.
The provision for income taxes decreased $0.8 million during the
second quarter of 2023 due to an increase in tax credits from
leasing plug-in hybrid electric vehicles as well as the lower level
of operating income compared to the second quarter of 2022.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $32.5 million for the six months ended
June 30, 2023 compared to $35.4 million for the six months ended
June 30, 2022. The $2.9 million, or 8%, reduction was the
result of interest expense growing faster than interest income. On
the asset side, the loan portfolio caused interest income
growth by producing $8.4 million more interest income from an
increase of 71 basis points in FTE loan yields on $142.6 million in
higher average balances. Interest income in the commercial
portfolio increased $4.5 million during the six months ended June
30, 2023 compared to the same 2022 period, despite recognition of
$1.7 million less SBA fees attributable to PPP loans over the same
time periods. Interest income from investments decreased $0.5
million from the $64.3 million lower average balance in the
portfolio. On the funding side, interest expense increased by $11.0
million primarily due to a higher rate paid on interest-bearing
deposits. The Company also required $56.7 million more in average
short-term borrowings which added $1.4 million in interest
expense. FTE net interest spread was 2.50% for the first half
of 2023, or 69 basis points lower than the 3.19% recorded for the
first half of 2022. Over the same time period, the Company’s FTE
net interest margin decreased by 29 basis points to 2.97% from
3.26%.
The provision for credit losses on loans was $0.9 million
and the provision for credit losses on unfunded loan commitments
was $0.2 million for the first six months of 2023. During the first
quarter of 2023, the Company adopted Accounting Standard Update
2016-13, Financial Instruments - Credit Losses (Topic 326)
Measurement of Credit Losses on Financial Instruments (CECL). Upon
adoption on January 1, 2023, the Company recorded an increase of
$0.7 million in the allowance for credit losses on loans and an
increase of $1.1 million in the allowance for credit losses on
unfunded loan commitments. Results for reporting periods
beginning after January 1, 2023 are presented under ASC 326 while
prior period amounts continue to be reported in accordance with
previously applicable GAAP. For the six months ended June 30,
2023, the increase in the allowance for credit losses on unfunded
commitments was due to six large unfunded commercial loan
commitments originated during the year. For the six months ended
June 30, 2023, the increase in the allowance for credit losses on
loans was due to growth in the loan portfolio.
Total non-interest income for the six months ended June 30, 2023
was $9.0 million, an increase of $0.2 million, or 2%, from
$8.8 million for the six months ended June 30, 2022. The increase
in other income was primarily due to $0.3 million in recoveries
from acquired charged-off loans, $0.3 million more service charges
on deposits, $0.2 million higher commercial fees, $0.2 million in
additional trust fiduciary fees and $0.1 million more debit
card interchange fees. Partially offsetting these increases
were decreases as follows: $0.8 million lower gains on loan sales
and $0.2 million less service charges on loans due primarily to a
decline in residential mortgage activity.
Non-interest expenses increased to $26.3 million for the six
months ended June 30, 2023, an increase of $0.8 million, or 3%,
from $25.5 million for the six months ended June 30, 2022. The
largest drivers of this increase were a $0.6 million increase in
premises and equipment expenses, $0.5 million more in professional
services, $0.3 million in additional fraud losses, and a $0.2
million increase in FDIC assessment expenses. These increases were
partially offset by $0.7 million less salaries and employee
benefit expenses and $0.3 million lower PA shares tax
expense.
The provision for income taxes decreased $0.7 million during
first half of 2023 compared to the same 2022 period due to an
increase in tax credits and the lower income before
taxes.
Consolidated Balance Sheet & Asset Quality
Overview
The Company’s total assets grew to $2.4 billion as of June
30, 2023, an increase of $63 million from December 31, 2022.
Growth in the loan portfolio of $64 million and $41 million of cash
and cash equivalents was offset by a reduction of the
investment portfolio by $39 million. The decline in the
investment portfolio was primarily due to sales of $31 million in
securities partially offset by a $6 million improvement in
market value of available-for-sale securities. During the
first six months of 2023, the market value of held-to-maturity
securities also improved by $4 million, with $31 million in
unrealized losses at June 30, 2023. During the same time period,
total liabilities increased $48 million, or 2%. Growth of $63
million in short-term borrowings replaced deposit declines of $15
million with the remaining balance used to fund loan growth
with the excess increasing cash balances. Transactional deposit
balances are down primarily from customers' investing part of their
funds in higher yields and increased consumer spending. The
reduction was partially mitigated through the promotional CD
offerings during the first half of 2023. As of June 30, 2023, the
ratio of insured and collateralized deposits to total deposits was
approximately 77%.
Shareholders’ equity increased $14.8 million, or 9%, to $177.7
million at June 30, 2023 from $162.9 million at December 31, 2022.
The increase was caused by a $5.9 million, after tax,
improvement in accumulated other comprehensive income from
lower net unrealized losses recorded on available-for-sale
investment securities. At June 30, 2023, there were no securities
identified with credit-related, other-than-temporary impairment
losses. Accumulated other comprehensive income (loss) is excluded
from regulatory capital ratios. Retained earnings also improved
from net income of $12.4 million, partially offset by $4.1 million
in cash dividends paid to shareholders. An additional
$2.0 million was recorded from the issuance of common stock
under the Company’s stock plans and stock-based compensation
expense. Partially offsetting these increases, a cumulative-effect
adjustment was made for adoption of ASU 2016-13 during the first
quarter of 2023 which reduced retained earnings by $1.3 million.
The Company remains well capitalized with Tier 1 capital at 9.08%
of total average assets as of June 30, 2023. Total risk-based
capital was 14.71% of risk-weighted assets and Tier 1 risk-based
capital was 13.52% of risk-weighted assets as of June 30, 2023.
Tangible book value per share was $27.59 at June 30, 2023 compared
to $25.18 at December 31, 2022. Tangible common equity was 6.48% of
total assets at June 30, 2023 compared to 6.01% at December 31,
2022.
Asset Quality
Total non-performing assets were $3.5 million, or 0.15% of
total assets, at June 30, 2023, compared to $2.7 million, or
0.12% of total assets, at December 31, 2022. Based on the Company’s
adoption of ASU 2022-02, Financial Instruments-Credit Losses
(Topic 326) Troubled Debt Restructurings and Vintage Disclosures,
the recognition and measurement guidance related to troubled debt
restructurings (TDR) has been eliminated. As such, TDRs were
removed from non-performing assets at June 30, 2023 and December
31, 2022 above to adhere to this standard and provide better
comparability. Past due and non-accrual loans to total loans
were 0.29% at June 30, 2023 compared to 0.28% at December 31, 2022.
Net charge-offs to average total loans were 0.05% at June 30, 2023
compared to 0.04% at December 31, 2022.
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 20 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 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 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 4,100 hours of
volunteer time and over $1.7 million in donations to non-profit
organizations directly within the markets served throughout
2022. 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 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
2023 and 2022.
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; |
|
■ |
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 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.
Contacts: |
|
|
|
Daniel J. Santaniello |
Salvatore R. DeFrancesco,
Jr. |
President and Chief Executive
Officer |
Treasurer and Chief
Financial Officer |
570-504-8035 |
570-504-8000 |
FIDELITY D & D BANCORP, INC. |
Unaudited Condensed Consolidated Balance Sheets |
(dollars in thousands) |
At Period End: |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
69,632 |
|
|
$ |
29,091 |
|
Investment securities |
|
|
604,264 |
|
|
|
643,606 |
|
Restricted investments in bank stock |
|
|
3,728 |
|
|
|
5,268 |
|
Loans and leases |
|
|
1,631,472 |
|
|
|
1,565,811 |
|
Allowance for credit losses on loans |
|
|
(18,350 |
) |
|
|
(17,149 |
) |
Premises and equipment, net |
|
|
31,329 |
|
|
|
31,307 |
|
Life insurance cash surrender value |
|
|
53,892 |
|
|
|
54,035 |
|
Goodwill and core deposit intangible |
|
|
20,981 |
|
|
|
21,168 |
|
Other assets |
|
|
44,284 |
|
|
|
45,235 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,441,232 |
|
|
$ |
2,378,372 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
582,473 |
|
|
$ |
602,608 |
|
Interest-bearing deposits |
|
|
1,569,519 |
|
|
|
1,564,305 |
|
Total deposits |
|
|
2,151,992 |
|
|
|
2,166,913 |
|
Short-term borrowings |
|
|
76,111 |
|
|
|
12,940 |
|
Secured borrowings |
|
|
7,498 |
|
|
|
7,619 |
|
Other liabilities |
|
|
27,887 |
|
|
|
27,950 |
|
Total liabilities |
|
|
2,263,488 |
|
|
|
2,215,422 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
177,744 |
|
|
|
162,950 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,441,232 |
|
|
$ |
2,378,372 |
|
Average Year-To-Date Balances: |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
33,180 |
|
|
$ |
81,532 |
|
Investment securities |
|
|
616,516 |
|
|
|
684,588 |
|
Restricted investments in bank stock |
|
|
4,622 |
|
|
|
3,565 |
|
Loans and leases |
|
|
1,617,626 |
|
|
|
1,500,796 |
|
Allowance for credit losses on loans |
|
|
(18,338 |
) |
|
|
(16,612 |
) |
Premises and equipment, net |
|
|
31,735 |
|
|
|
30,640 |
|
Life insurance cash surrender value |
|
|
53,888 |
|
|
|
53,443 |
|
Goodwill and core deposit intangible |
|
|
21,069 |
|
|
|
21,359 |
|
Other assets |
|
|
43,157 |
|
|
|
40,265 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,403,455 |
|
|
$ |
2,399,576 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
577,045 |
|
|
$ |
594,541 |
|
Interest-bearing deposits |
|
|
1,560,318 |
|
|
|
1,593,805 |
|
Total deposits |
|
|
2,137,363 |
|
|
|
2,188,346 |
|
Short-term borrowings |
|
|
56,791 |
|
|
|
1,031 |
|
Secured borrowings |
|
|
7,538 |
|
|
|
8,886 |
|
Other liabilities |
|
|
29,565 |
|
|
|
28,434 |
|
Total liabilities |
|
|
2,231,257 |
|
|
|
2,226,697 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
172,198 |
|
|
|
172,879 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,403,455 |
|
|
$ |
2,399,576 |
|
FIDELITY D & D BANCORP, INC. |
Unaudited Condensed Consolidated Statements of Income |
(dollars in thousands) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
Jun. 30, 2023 |
|
|
Jun. 30, 2022 |
|
|
Jun. 30, 2023 |
|
|
Jun. 30, 2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
19,703 |
|
|
$ |
15,500 |
|
|
$ |
38,721 |
|
|
$ |
30,275 |
|
Securities and other |
|
|
3,276 |
|
|
|
3,565 |
|
|
|
6,596 |
|
|
|
6,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
22,979 |
|
|
|
19,065 |
|
|
|
45,317 |
|
|
|
37,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
(6,607 |
) |
|
|
(950 |
) |
|
|
(11,225 |
) |
|
|
(1,772 |
) |
Borrowings and debt |
|
|
(890 |
) |
|
|
30 |
|
|
|
(1,585 |
) |
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
(7,497 |
) |
|
|
(920 |
) |
|
|
(12,810 |
) |
|
|
(1,807 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
15,482 |
|
|
|
18,145 |
|
|
|
32,507 |
|
|
|
35,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
|
(675 |
) |
|
|
(525 |
) |
|
|
(855 |
) |
|
|
(1,050 |
) |
(Provision) credit for credit losses on unfunded loan
commitments |
|
|
50 |
|
|
|
7 |
|
|
|
(175 |
) |
|
|
18 |
|
Non-interest income |
|
|
4,535 |
|
|
|
4,256 |
|
|
|
9,023 |
|
|
|
8,810 |
|
Non-interest expense |
|
|
(13,425 |
) |
|
|
(12,807 |
) |
|
|
(26,281 |
) |
|
|
(25,472 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
5,967 |
|
|
|
9,076 |
|
|
|
14,219 |
|
|
|
17,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(605 |
) |
|
|
(1,412 |
) |
|
|
(1,817 |
) |
|
|
(2,556 |
) |
Net income |
|
$ |
5,362 |
|
|
$ |
7,664 |
|
|
$ |
12,402 |
|
|
$ |
15,187 |
|
|
|
Three Months Ended |
|
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
19,703 |
|
|
$ |
19,018 |
|
|
$ |
17,425 |
|
|
$ |
16,320 |
|
|
$ |
15,500 |
|
Securities and other |
|
|
3,276 |
|
|
|
3,320 |
|
|
|
3,869 |
|
|
|
3,815 |
|
|
|
3,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
22,979 |
|
|
|
22,338 |
|
|
|
21,294 |
|
|
|
20,135 |
|
|
|
19,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
(6,607 |
) |
|
|
(4,618 |
) |
|
|
(2,822 |
) |
|
|
(1,550 |
) |
|
|
(950 |
) |
Borrowings and debt |
|
|
(890 |
) |
|
|
(695 |
) |
|
|
(145 |
) |
|
|
(75 |
) |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
(7,497 |
) |
|
|
(5,313 |
) |
|
|
(2,967 |
) |
|
|
(1,625 |
) |
|
|
(920 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
15,482 |
|
|
|
17,025 |
|
|
|
18,327 |
|
|
|
18,510 |
|
|
|
18,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
|
(675 |
) |
|
|
(180 |
) |
|
|
(525 |
) |
|
|
(525 |
) |
|
|
(525 |
) |
(Provision) credit for credit losses on unfunded loan
commitments |
|
|
50 |
|
|
|
(225 |
) |
|
|
(11 |
) |
|
|
6 |
|
|
|
7 |
|
Non-interest income |
|
|
4,535 |
|
|
|
4,489 |
|
|
|
3,920 |
|
|
|
3,911 |
|
|
|
4,256 |
|
Non-interest expense |
|
|
(13,425 |
) |
|
|
(12,857 |
) |
|
|
(12,854 |
) |
|
|
(13,034 |
) |
|
|
(12,807 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
5,967 |
|
|
|
8,252 |
|
|
|
8,857 |
|
|
|
8,868 |
|
|
|
9,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(605 |
) |
|
|
(1,212 |
) |
|
|
(1,711 |
) |
|
|
(1,179 |
) |
|
|
(1,412 |
) |
Net income |
|
$ |
5,362 |
|
|
$ |
7,040 |
|
|
$ |
7,146 |
|
|
$ |
7,689 |
|
|
$ |
7,664 |
|
FIDELITY D & D BANCORP, INC. |
Unaudited Condensed Consolidated Balance Sheets |
(dollars in thousands) |
At Period End: |
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
69,632 |
|
|
$ |
63,038 |
|
|
$ |
29,091 |
|
|
$ |
134,042 |
|
|
$ |
109,125 |
|
Investment securities |
|
|
604,264 |
|
|
|
614,526 |
|
|
|
643,606 |
|
|
|
635,787 |
|
|
|
674,833 |
|
Restricted investments in bank stock |
|
|
3,728 |
|
|
|
5,968 |
|
|
|
5,268 |
|
|
|
3,639 |
|
|
|
3,622 |
|
Loans and leases |
|
|
1,631,472 |
|
|
|
1,627,155 |
|
|
|
1,565,811 |
|
|
|
1,524,328 |
|
|
|
1,494,316 |
|
Allowance for credit losses on loans |
|
|
(18,350 |
) |
|
|
(17,910 |
) |
|
|
(17,149 |
) |
|
|
(16,779 |
) |
|
|
(16,590 |
) |
Premises and equipment, net |
|
|
31,329 |
|
|
|
31,408 |
|
|
|
31,307 |
|
|
|
30,971 |
|
|
|
30,855 |
|
Life insurance cash surrender value |
|
|
53,892 |
|
|
|
53,567 |
|
|
|
54,035 |
|
|
|
53,711 |
|
|
|
53,383 |
|
Goodwill and core deposit intangible |
|
|
20,981 |
|
|
|
21,071 |
|
|
|
21,168 |
|
|
|
21,264 |
|
|
|
21,360 |
|
Other assets |
|
|
44,284 |
|
|
|
44,198 |
|
|
|
45,235 |
|
|
|
48,805 |
|
|
|
44,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
$ |
2,435,768 |
|
|
$ |
2,414,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
582,473 |
|
|
$ |
591,055 |
|
|
$ |
602,608 |
|
|
$ |
616,844 |
|
|
$ |
610,987 |
|
Interest-bearing deposits |
|
|
1,569,519 |
|
|
|
1,552,036 |
|
|
|
1,564,305 |
|
|
|
1,636,389 |
|
|
|
1,606,637 |
|
Total deposits |
|
|
2,151,992 |
|
|
|
2,143,091 |
|
|
|
2,166,913 |
|
|
|
2,253,233 |
|
|
|
2,217,624 |
|
Short-term borrowings |
|
|
76,111 |
|
|
|
88,989 |
|
|
|
12,940 |
|
|
|
10 |
|
|
|
10 |
|
Secured borrowings |
|
|
7,498 |
|
|
|
7,560 |
|
|
|
7,619 |
|
|
|
7,688 |
|
|
|
7,736 |
|
Other liabilities |
|
|
27,887 |
|
|
|
27,494 |
|
|
|
27,950 |
|
|
|
28,350 |
|
|
|
26,951 |
|
Total liabilities |
|
|
2,263,488 |
|
|
|
2,267,134 |
|
|
|
2,215,422 |
|
|
|
2,289,281 |
|
|
|
2,252,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
177,744 |
|
|
|
175,887 |
|
|
|
162,950 |
|
|
|
146,487 |
|
|
|
162,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
$ |
2,435,768 |
|
|
$ |
2,414,940 |
|
Average Quarterly Balances: |
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
37,125 |
|
|
$ |
29,192 |
|
|
$ |
73,023 |
|
|
$ |
88,863 |
|
|
$ |
69,086 |
|
Investment securities |
|
|
610,009 |
|
|
|
623,097 |
|
|
|
637,825 |
|
|
|
672,595 |
|
|
|
693,121 |
|
Restricted investments in bank stock |
|
|
3,834 |
|
|
|
5,418 |
|
|
|
3,840 |
|
|
|
3,645 |
|
|
|
3,538 |
|
Loans and leases |
|
|
1,625,509 |
|
|
|
1,609,655 |
|
|
|
1,540,999 |
|
|
|
1,511,268 |
|
|
|
1,482,629 |
|
Allowance for credit losses on loans |
|
|
(18,296 |
) |
|
|
(18,380 |
) |
|
|
(17,113 |
) |
|
|
(16,911 |
) |
|
|
(16,441 |
) |
Premises and equipment, net |
|
|
31,989 |
|
|
|
31,477 |
|
|
|
31,190 |
|
|
|
30,956 |
|
|
|
31,091 |
|
Life insurance cash surrender value |
|
|
53,782 |
|
|
|
53,995 |
|
|
|
53,925 |
|
|
|
53,599 |
|
|
|
53,277 |
|
Goodwill and core deposit intangible |
|
|
21,018 |
|
|
|
21,120 |
|
|
|
21,210 |
|
|
|
21,308 |
|
|
|
21,405 |
|
Other assets |
|
|
42,630 |
|
|
|
43,690 |
|
|
|
47,715 |
|
|
|
42,564 |
|
|
|
40,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
$ |
2,407,887 |
|
|
$ |
2,378,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
568,202 |
|
|
$ |
585,987 |
|
|
$ |
609,262 |
|
|
$ |
589,227 |
|
|
$ |
593,121 |
|
Interest-bearing deposits |
|
|
1,561,412 |
|
|
|
1,559,212 |
|
|
|
1,589,129 |
|
|
|
1,614,573 |
|
|
|
1,579,150 |
|
Total deposits |
|
|
2,129,614 |
|
|
|
2,145,199 |
|
|
|
2,198,391 |
|
|
|
2,203,800 |
|
|
|
2,172,271 |
|
Short-term borrowings |
|
|
64,558 |
|
|
|
48,937 |
|
|
|
3,875 |
|
|
|
10 |
|
|
|
206 |
|
Secured borrowings |
|
|
7,529 |
|
|
|
7,548 |
|
|
|
7,654 |
|
|
|
7,707 |
|
|
|
9,644 |
|
Other liabilities |
|
|
29,479 |
|
|
|
29,651 |
|
|
|
30,489 |
|
|
|
29,031 |
|
|
|
27,164 |
|
Total liabilities |
|
|
2,231,180 |
|
|
|
2,231,335 |
|
|
|
2,240,409 |
|
|
|
2,240,548 |
|
|
|
2,209,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
176,420 |
|
|
|
167,929 |
|
|
|
152,205 |
|
|
|
167,339 |
|
|
|
169,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
$ |
2,407,887 |
|
|
$ |
2,378,584 |
|
FIDELITY D & D BANCORP, INC. |
Selected Financial Ratios and Other Financial Data |
|
|
Three Months Ended |
|
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.95 |
|
|
$ |
1.25 |
|
|
$ |
1.27 |
|
|
$ |
1.36 |
|
|
$ |
1.35 |
|
Diluted earnings per share |
|
$ |
0.94 |
|
|
$ |
1.24 |
|
|
$ |
1.26 |
|
|
$ |
1.36 |
|
|
$ |
1.35 |
|
Dividends per share |
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.33 |
|
Yield on interest-earning assets (FTE)* |
|
|
4.12 |
% |
|
|
4.06 |
% |
|
|
3.78 |
% |
|
|
3.60 |
% |
|
|
3.50 |
% |
Cost of interest-bearing liabilities |
|
|
1.84 |
% |
|
|
1.33 |
% |
|
|
0.74 |
% |
|
|
0.40 |
% |
|
|
0.23 |
% |
Cost of funds |
|
|
1.37 |
% |
|
|
0.98 |
% |
|
|
0.53 |
% |
|
|
0.29 |
% |
|
|
0.17 |
% |
Net interest spread (FTE)* |
|
|
2.28 |
% |
|
|
2.73 |
% |
|
|
3.04 |
% |
|
|
3.20 |
% |
|
|
3.27 |
% |
Net interest margin (FTE)* |
|
|
2.82 |
% |
|
|
3.13 |
% |
|
|
3.27 |
% |
|
|
3.32 |
% |
|
|
3.34 |
% |
Return on average assets |
|
|
0.89 |
% |
|
|
1.19 |
% |
|
|
1.18 |
% |
|
|
1.27 |
% |
|
|
1.29 |
% |
Pre-provision net revenue to average assets* |
|
|
1.10 |
% |
|
|
1.46 |
% |
|
|
1.56 |
% |
|
|
1.55 |
% |
|
|
1.62 |
% |
Return on average equity |
|
|
12.19 |
% |
|
|
17.00 |
% |
|
|
18.63 |
% |
|
|
18.23 |
% |
|
|
18.16 |
% |
Return on average tangible equity* |
|
|
13.84 |
% |
|
|
19.45 |
% |
|
|
21.64 |
% |
|
|
20.89 |
% |
|
|
20.79 |
% |
Efficiency ratio (FTE)* |
|
|
64.72 |
% |
|
|
57.72 |
% |
|
|
56.02 |
% |
|
|
56.40 |
% |
|
|
55.49 |
% |
Expense ratio |
|
|
1.48 |
% |
|
|
1.41 |
% |
|
|
1.48 |
% |
|
|
1.51 |
% |
|
|
1.44 |
% |
|
|
Six months ended |
|
|
|
Jun. 30, 2023 |
|
|
Jun. 30, 2022 |
|
Basic earnings per share |
|
$ |
2.19 |
|
|
$ |
2.68 |
|
Diluted earnings per
share |
|
$ |
2.18 |
|
|
$ |
2.67 |
|
Dividends per share |
|
$ |
0.72 |
|
|
$ |
0.66 |
|
Yield on interest-earning
assets (FTE)* |
|
|
4.09 |
% |
|
|
3.42 |
% |
Cost of interest-bearing
liabilities |
|
|
1.59 |
% |
|
|
0.23 |
% |
Cost of funds |
|
|
1.17 |
% |
|
|
0.17 |
% |
Net interest spread
(FTE)* |
|
|
2.50 |
% |
|
|
3.19 |
% |
Net interest margin
(FTE)* |
|
|
2.97 |
% |
|
|
3.26 |
% |
Return on average assets |
|
|
1.04 |
% |
|
|
1.28 |
% |
Pre-provision net revenue to
average assets* |
|
|
1.28 |
% |
|
|
1.58 |
% |
Return on average equity |
|
|
14.52 |
% |
|
|
16.45 |
% |
Return on average tangible
equity* |
|
|
16.55 |
% |
|
|
18.59 |
% |
Efficiency ratio (FTE)* |
|
|
61.10 |
% |
|
|
55.86 |
% |
Expense ratio |
|
|
1.45 |
% |
|
|
1.40 |
% |
Other financial data |
|
At period end: |
|
(dollars in thousands except per share data) |
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
Assets under management |
|
$ |
840,068 |
|
|
$ |
809,897 |
|
|
$ |
736,401 |
|
|
$ |
678,431 |
|
|
$ |
619,420 |
|
Book value per share |
|
$ |
31.29 |
|
|
$ |
31.05 |
|
|
$ |
28.94 |
|
|
$ |
26.02 |
|
|
$ |
28.77 |
|
Tangible book value per share* |
|
$ |
27.59 |
|
|
$ |
27.33 |
|
|
$ |
25.18 |
|
|
$ |
22.24 |
|
|
$ |
24.99 |
|
Equity to assets |
|
|
7.28 |
% |
|
|
7.20 |
% |
|
|
6.85 |
% |
|
|
6.01 |
% |
|
|
6.73 |
% |
Tangible common equity ratio* |
|
|
6.48 |
% |
|
|
6.39 |
% |
|
|
6.01 |
% |
|
|
5.19 |
% |
|
|
5.90 |
% |
Allowance for credit losses on loans to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
1.13 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.11 |
% |
Non-accrual loans |
|
5.25x |
|
|
5.36x |
|
|
6.77x |
|
|
5.23x |
|
|
5.17x |
|
Non-accrual loans to total loans |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
|
|
0.21 |
% |
Non-performing assets to total assets** |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
|
|
0.19 |
% |
|
|
0.20 |
% |
Net charge-offs to average total loans |
|
|
0.05 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
14.71 |
% |
|
|
14.59 |
% |
|
|
14.35 |
% |
|
|
14.34 |
% |
|
|
14.30 |
% |
Common equity tier 1
risk-based capital ratio |
|
|
13.52 |
% |
|
|
13.42 |
% |
|
|
13.27 |
% |
|
|
13.27 |
% |
|
|
13.21 |
% |
Tier 1 risk-based capital
ratio |
|
|
13.52 |
% |
|
|
13.42 |
% |
|
|
13.27 |
% |
|
|
13.27 |
% |
|
|
13.21 |
% |
Leverage ratio |
|
|
9.08 |
% |
|
|
8.92 |
% |
|
|
8.69 |
% |
|
|
8.51 |
% |
|
|
8.43 |
% |
* Non-GAAP Financial Measures - see reconciliations below**Note
that based on the Company’s adoption of ASU 2022-02, Financial
Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings
and Vintage Disclosures, the recognition and measurement guidance
related to troubled debt restructurings (TDR) has been eliminated.
As such, TDRs were removed from non-performing assets for the
current reporting period to adhere to this standard. Prior periods
included accruing TDRs in non-performing assets.
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, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Sep. 30, 2022 |
|
|
Jun. 30, 2022 |
|
FTE net interest income (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (GAAP) |
|
$ |
22,979 |
|
|
$ |
22,338 |
|
|
$ |
21,294 |
|
|
$ |
20,135 |
|
|
$ |
19,065 |
|
Adjustment to FTE |
|
|
725 |
|
|
|
760 |
|
|
|
700 |
|
|
|
687 |
|
|
|
682 |
|
Interest income adjusted to
FTE (non-GAAP) |
|
|
23,704 |
|
|
|
23,098 |
|
|
|
21,994 |
|
|
|
20,822 |
|
|
|
19,747 |
|
Interest expense (GAAP) |
|
|
7,497 |
|
|
|
5,313 |
|
|
|
2,967 |
|
|
|
1,625 |
|
|
|
920 |
|
Net
interest income adjusted to FTE (non-GAAP) |
|
$ |
16,207 |
|
|
|
17,785 |
|
|
|
19,027 |
|
|
|
19,197 |
|
|
|
18,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
(non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses
(GAAP) |
|
$ |
13,425 |
|
|
$ |
12,857 |
|
|
$ |
12,854 |
|
|
$ |
13,034 |
|
|
$ |
12,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
|
15,482 |
|
|
|
17,025 |
|
|
|
18,327 |
|
|
|
18,510 |
|
|
|
18,145 |
|
Plus: taxable equivalent
adjustment |
|
|
725 |
|
|
|
760 |
|
|
|
700 |
|
|
|
687 |
|
|
|
682 |
|
Non-interest income (GAAP) |
|
|
4,535 |
|
|
|
4,489 |
|
|
|
3,920 |
|
|
|
3,911 |
|
|
|
4,256 |
|
Net
interest income (FTE) plus non-interest income (non-GAAP) |
|
$ |
20,742 |
|
|
$ |
22,274 |
|
|
$ |
22,947 |
|
|
$ |
23,108 |
|
|
$ |
23,083 |
|
Efficiency ratio (non-GAAP) |
|
|
64.72 |
% |
|
|
57.72 |
% |
|
|
56.02 |
% |
|
|
56.40 |
% |
|
|
55.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
per Share/Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
$ |
2,435,768 |
|
|
$ |
2,414,940 |
|
Less:
Intangible assets, primarily goodwill |
|
|
(20,981 |
) |
|
|
(21,071 |
) |
|
|
(21,167 |
) |
|
|
(21,264 |
) |
|
|
(21,360 |
) |
Tangible assets |
|
|
2,420,251 |
|
|
|
2,421,950 |
|
|
|
2,357,205 |
|
|
|
2,414,504 |
|
|
|
2,393,580 |
|
Total shareholders' equity
(GAAP) |
|
|
177,744 |
|
|
|
175,887 |
|
|
|
162,950 |
|
|
|
146,487 |
|
|
|
162,619 |
|
Less:
Intangible assets, primarily goodwill |
|
|
(20,981 |
) |
|
|
(21,071 |
) |
|
|
(21,167 |
) |
|
|
(21,264 |
) |
|
|
(21,360 |
) |
Tangible common equity |
|
|
156,763 |
|
|
|
154,816 |
|
|
|
141,783 |
|
|
|
125,223 |
|
|
|
141,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding, end of period |
|
|
5,681,260 |
|
|
|
5,665,255 |
|
|
|
5,630,794 |
|
|
|
5,630,332 |
|
|
|
5,651,777 |
|
Tangible Common Book Value per Share |
|
$ |
27.59 |
|
|
$ |
27.33 |
|
|
$ |
25.18 |
|
|
$ |
22.24 |
|
|
$ |
24.99 |
|
Tangible Common Equity Ratio |
|
|
6.48 |
% |
|
|
6.39 |
% |
|
|
6.01 |
% |
|
|
5.19 |
% |
|
|
5.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue to Average Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
(GAAP) |
|
$ |
5,967 |
|
|
$ |
8,252 |
|
|
$ |
8,857 |
|
|
$ |
8,868 |
|
|
$ |
9,076 |
|
Plus:
Provision for credit losses |
|
|
625 |
|
|
|
405 |
|
|
|
536 |
|
|
|
519 |
|
|
|
517 |
|
Total pre-provision net
revenue (non-GAAP) |
|
|
6,592 |
|
|
|
8,657 |
|
|
|
9,393 |
|
|
|
9,387 |
|
|
|
9,593 |
|
Total (annualized)
(non-GAAP) |
|
$ |
26,440 |
|
|
$ |
35,110 |
|
|
$ |
37,267 |
|
|
$ |
37,240 |
|
|
$ |
38,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets |
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
$ |
2,407,887 |
|
|
$ |
2,378,584 |
|
Pre-Provision Net Revenue to Average Assets (non-GAAP) |
|
|
1.10 |
% |
|
|
1.46 |
% |
|
|
1.56 |
% |
|
|
1.55 |
% |
|
|
1.62 |
% |
Reconciliations of Non-GAAP Measures to GAAP |
|
Six months ended |
|
(dollars in thousands) |
|
Jun. 30, 2023 |
|
|
Jun. 30, 2022 |
|
FTE net interest income (non-GAAP) |
|
|
|
|
|
|
|
|
Interest income (GAAP) |
|
$ |
45,317 |
|
|
$ |
37,244 |
|
Adjustment to FTE |
|
|
1,485 |
|
|
|
1,350 |
|
Interest income adjusted to
FTE (non-GAAP) |
|
|
46,802 |
|
|
|
38,594 |
|
Interest expense (GAAP) |
|
|
12,810 |
|
|
|
1,807 |
|
Net
interest income adjusted to FTE (non-GAAP) |
|
$ |
33,992 |
|
|
|
36,787 |
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
(non-GAAP) |
|
|
|
|
|
|
|
|
Non-interest expenses
(GAAP) |
|
$ |
26,281 |
|
|
$ |
25,472 |
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
|
32,507 |
|
|
|
35,437 |
|
Plus: taxable equivalent
adjustment |
|
|
1,485 |
|
|
|
1,350 |
|
Non-interest income (GAAP) |
|
|
9,023 |
|
|
|
8,810 |
|
Net
interest income (FTE) plus non-interest income (non-GAAP) |
|
$ |
43,015 |
|
|
$ |
45,597 |
|
Efficiency ratio (non-GAAP) |
|
|
61.10 |
% |
|
|
55.86 |
% |
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue to Average Assets |
|
|
|
|
|
|
|
|
Income before taxes
(GAAP) |
|
$ |
14,219 |
|
|
$ |
17,743 |
|
Plus:
Provision for credit losses |
|
|
1,030 |
|
|
|
1,032 |
|
Total pre-provision net
revenue (non-GAAP) |
|
|
15,249 |
|
|
|
18,775 |
|
Total (annualized)
(non-GAAP) |
|
$ |
30,751 |
|
|
$ |
37,861 |
|
|
|
|
|
|
|
|
|
|
Average
assets |
|
$ |
2,403,455 |
|
|
$ |
2,398,890 |
|
Pre-Provision Net Revenue to Average Assets (non-GAAP) |
|
|
1.28 |
% |
|
|
1.58 |
% |
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