Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking
subsidiary, The Fidelity Deposit and Discount Bank, announced
its unaudited, consolidated financial results for the three and
nine-month periods ended September 30, 2023.
Unaudited Financial Information
Net income for the quarter ended September 30, 2023 was
$5.3 million, or $0.93 diluted earnings per share, compared to $7.6
million, or $1.36 diluted earnings per share, for the quarter ended
September 30, 2022. The $2.3 million decline in net
income resulted primarily from the $3.9 million
decline in net interest income led by higher interest expense,
partially offset by $0.6 million lower provision for income taxes,
$0.4 million more non-interest income, a $0.3 million net
benefit in the provision for credit losses
on unfunded commitments and $0.3 million lower
non-interest expenses.
“Despite the challenging operating environment, the bank
produced strong loan growth, grew non-interest income, maintained
excellent asset quality, and controlled expenses.” stated Daniel J.
Santaniello, President and Chief Executive Officer. "While the
rising costs of deposits and borrowed funds resulted in decreased
earnings from a year ago, we remain focused on executing our
strategic plan and leveraging the strength of the balance sheet to
continue to serve our clients. Fidelity Bank is well positioned for
the future and committed to our clients and the communities we
serve."
For the nine months ended September 30, 2023, net income
was $17.7 million, or $3.11 diluted earnings per share,
compared to $22.8 million, or $4.03 diluted earnings per share, for
the nine months ended September 30, 2022. The $5.1 million, or 22%
decline in net income stemmed from the $6.8 million reduction in
net interest income and $0.6 million higher non-interest expenses
partially offset by $1.3 million lower provision for income taxes,
$0.6 million higher non-interest income and $0.3 million less in
provision for credit losses on loans and unfunded loan
commitments.
Consolidated Third Quarter Operating Results
Overview
Net interest income was $14.6 million for the third quarter of
2023, a 21% decrease from the $18.5 million earned for
the third quarter of 2022. The $3.9 million decline in net interest
income resulted primarily from the increase of $7.4 million in
interest expense primarily due to a 171 basis point increase
in the rates paid on interest-bearing deposits which resulted in
$6.9 million in additional interest expense. The Company also
required $37.6 million more in average borrowings during the
third quarter of 2023 which contributed $0.4 million in additional
interest expense compared to the third quarter of
2022. Partially offsetting the higher interest expense,
interest income grew $3.5 million primarily due to a $129.1 million
increase in the average balance of loans and leases and
a 69 basis point increase in fully-taxable
equivalent ("FTE") yields earned thereon, producing $4.2 million
higher FTE interest income. Partially offsetting the
increase to interest income in the loan portfolio, interest
income on investments and interest-bearing deposits declined $0.6
million primarily due to lower average balances.
The overall cost of interest-bearing liabilities was 2.17% for
the third quarter of 2023, an increase of 177 basis points from the
0.40% paid for the third quarter of 2022. The cost of funds
increased 134 basis points to 1.63% for the third quarter of 2023
from 0.29% for the third quarter of 2022. The Company’s
FTE (non-GAAP measurement) net interest spread was 2.01%
for the third quarter of 2023, down 119 basis points from the 3.20%
recorded for the third quarter of 2022. FTE net interest margin
decreased by 69 basis points to 2.63% for the three months ended
September 30, 2023 from 3.32% 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 $0.5 million
partially offset by a net benefit in the provision
for credit losses on unfunded loan commitments of
$0.3 million for the third quarter of 2023. For the
three months ended September 30, 2023, the increase in the
provision for credit losses on loans was due to growth and change
in composition of the loan portfolio. For the three months
ended September 30, 2023, the $0.3 million net benefit in the
provision for credit losses on unfunded commitments was due to a
reduction in unfunded commitments during the quarter.
Total non-interest income increased $0.4 million, or 11%,
to $4.3 million for the third quarter of 2023 compared
to $3.9 million for the third quarter of 2022. The increase in
non-interest income was primarily attributable to $0.2 million
higher trust income, $0.1 million in additional fee income on
deposits, $0.1 million higher gain on loans sales and $0.1 million
more in interchange fees.
Non-interest expenses decreased $0.3 million, or 2%,
for the third quarter of 2023 to $12.8 million from
$13.1 million for the same quarter of 2022. The decline in
non-interest expenses was primarily due to $0.5 million lower
salaries and employee benefit expenses and $0.3 million less
advertising and marketing expenses. Partially offsetting these
decreases, premises and equipment expenses increased by $0.4
million quarter-over-quarter from additional depreciation,
equipment maintenance and software subscription related
expenses.
The provision for income taxes decreased $0.6 million during the
third quarter of 2023 primarily due to the lower level of operating
income compared to the third quarter of 2022.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $47.1 million for the nine months ended
September 30, 2023 compared to $53.9 million for the nine months
ended September 30, 2022. The $6.8 million, or 13%,
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 $12.6 million more
interest income from an increase of 71 basis points in FTE loan
yields on $138.1 million in higher average balances. Interest
income in the commercial portfolio increased $6.9 million during
the nine months ended September 30, 2023 compared to the same 2022
period, despite recognition of $1.2 million less Small Business
Administration ("SBA") fees attributable to Paycheck
Protection Program ("PPP") loans over the same time period.
Interest income from investments decreased $0.9 million from the
$62.9 million lower average balance in the portfolio. On the
funding side, interest expense increased by $18.4 million
primarily due to a higher rate paid on interest-bearing deposits.
The Company also required $50.2 million more in average
short-term borrowings which added $1.8 million in interest
expense. FTE net interest spread was 2.33% for the first nine
months of 2023, or 86 basis points lower than the 3.19% recorded
for the first nine months of 2022. Over the same time period, the
Company’s FTE net interest margin decreased by 42 basis points to
2.86% from 3.28%.
The provision for credit losses on loans was $1.4 million
which was partially offset by a net benefit in the provision for
credit losses on unfunded loan commitments of $0.1 million for the
first nine 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). The provision for credit
losses on loans and unfunded commitments 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 nine months ended
September 30, 2023, the net benefit in the provision for credit
losses on unfunded commitments was due to a reduction in unfunded
commitments during the year. For the nine months ended September
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 for the nine months ended September
30, 2023 was $13.3 million, an increase of $0.6 million, or
5%, from $12.7 million for the nine months ended September 30,
2022. The increase in other income was primarily due to $0.4
million more service charges on deposits, $0.3 million in
recoveries from acquired charged-off loans, $0.3 million in
additional trust fiduciary fees, $0.2 million higher commercial
fees and $0.2 million more debit card interchange
fees. Partially offsetting these increases were decreases as
follows: $0.7 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 totaled $39.1 million for the nine
months ended September 30, 2023, an increase of $0.6 million, or
1%, from $38.5 million for the nine months ended September 30,
2022. The largest drivers of this increase were a $1.0 million
increase in premises and equipment expenses, $0.6 million
in additional professional services, $0.3 million more
fraud losses, and a $0.3 million increase in FDIC assessment
expenses. These increases were partially offset by $1.3 million
less salaries and employee benefit expenses and $0.5 million
lower PA shares tax expense.
The provision for income taxes decreased $1.3 million during
first nine months of 2023 compared to the same 2022 period due to a
$0.4 million increase in tax credits and the lower income
before taxes.
Consolidated Balance Sheet & Asset Quality
Overview
The Company’s total assets grew to $2.5 billion as of
September 30, 2023, an increase of $98 million from $2.4
billion as of December 31, 2022. Growth in the loan portfolio of
$80 million and $81 million of cash and cash equivalents was
partially offset by a reduction of the investment portfolio of
$67 million. The decline in the investment portfolio was primarily
due to sales of $31 million in securities, $19 million in
paydowns and a $15 million decrease in market value
of available-for-sale securities. During the first
nine months of 2023, the market value of held-to-maturity
securities also declined by $9 million, with $46 million in
unrealized losses at September 30, 2023. During the same time
period, total liabilities increased $96 million, or 4%. Growth of
$111 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 nine months of 2023. As of September
30, 2023, the ratio of insured and collateralized deposits to total
deposits was approximately 78%.
Shareholders’ equity increased $2.5 million, or 2%, to $165.4
million at September 30, 2023 from $162.9 million at December 31,
2022. The increase was caused by retained earnings improvement from
net income of $17.7 million, partially offset by $6.2 million
in cash dividends paid to shareholders. An additional
$2.6 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. Additionally, there was a $10.4 million,
after tax, decline in accumulated other comprehensive income
from higher net unrealized losses recorded on
available-for-sale investment securities. At September 30, 2023,
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 9.22% of
total average assets as of September 30, 2023. Total
risk-based capital was 14.76% of risk-weighted assets and Tier 1
risk-based capital was 13.58% of risk-weighted assets as of
September 30, 2023. Tangible book value per share was $25.37 at
September 30, 2023 compared to $25.18 at December 31, 2022.
Tangible common equity was 5.89% of total assets at September 30,
2023 compared to 6.01% at December 31, 2022.
Asset Quality
Total non-performing assets were $3.4 million, or 0.14% of
total assets, at September 30, 2023, compared to $2.7 million,
or 0.12% of total assets, at December 31, 2022. Past due and
non-accrual loans to total loans were 0.32% at September 30, 2023
compared to 0.28% at December 31, 2022. Net charge-offs to
average total loans were 0.04% at September 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 21 full-service
offices throughout Lackawanna, Luzerne, Lehigh and Northampton
Counties, along with a limited production commercial office in
Luzerne County and a Fidelity Bank Wealth Management 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; |
|
■ |
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 or terrorism; 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: |
September 30, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
110,471 |
|
|
$ |
29,091 |
|
Investment securities |
|
576,688 |
|
|
|
643,606 |
|
Restricted investments in bank stock |
|
3,800 |
|
|
|
5,268 |
|
Loans and leases |
|
1,647,552 |
|
|
|
1,565,811 |
|
Allowance for credit losses on loans |
|
(18,757 |
) |
|
|
(17,149 |
) |
Premises and equipment, net |
|
32,625 |
|
|
|
31,307 |
|
Life insurance cash surrender value |
|
54,226 |
|
|
|
54,035 |
|
Goodwill and core deposit intangible |
|
20,897 |
|
|
|
21,168 |
|
Other assets |
|
49,318 |
|
|
|
45,235 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,476,820 |
|
|
$ |
2,378,372 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
549,741 |
|
|
$ |
602,608 |
|
Interest-bearing deposits |
|
1,602,018 |
|
|
|
1,564,305 |
|
Total deposits |
|
2,151,759 |
|
|
|
2,166,913 |
|
Short-term borrowings |
|
124,000 |
|
|
|
12,940 |
|
Secured borrowings |
|
7,439 |
|
|
|
7,619 |
|
Other liabilities |
|
28,190 |
|
|
|
27,950 |
|
Total liabilities |
|
2,311,388 |
|
|
|
2,215,422 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
165,432 |
|
|
|
162,950 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,476,820 |
|
|
$ |
2,378,372 |
|
|
|
|
|
|
|
Average Year-To-Date Balances: |
September 30, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
33,200 |
|
|
$ |
81,532 |
|
Investment securities |
|
610,480 |
|
|
|
684,588 |
|
Restricted investments in bank stock |
|
4,332 |
|
|
|
3,565 |
|
Loans and leases |
|
1,625,304 |
|
|
|
1,500,796 |
|
Allowance for credit losses on loans |
|
(18,497 |
) |
|
|
(16,612 |
) |
Premises and equipment, net |
|
31,738 |
|
|
|
30,640 |
|
Life insurance cash surrender value |
|
53,963 |
|
|
|
53,443 |
|
Goodwill and core deposit intangible |
|
21,022 |
|
|
|
21,359 |
|
Other assets |
|
43,558 |
|
|
|
40,265 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,405,100 |
|
|
$ |
2,399,576 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
567,487 |
|
|
$ |
594,541 |
|
Interest-bearing deposits |
|
1,576,316 |
|
|
|
1,593,805 |
|
Total deposits |
|
2,143,803 |
|
|
|
2,188,346 |
|
Short-term borrowings |
|
50,322 |
|
|
|
1,031 |
|
Secured borrowings |
|
7,515 |
|
|
|
8,886 |
|
Other liabilities |
|
29,590 |
|
|
|
28,434 |
|
Total liabilities |
|
2,231,230 |
|
|
|
2,226,697 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
173,870 |
|
|
|
172,879 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,405,100 |
|
|
$ |
2,399,576 |
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Statements of Income(dollars in
thousands) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
Sep. 30, 2023 |
|
Sep. 30, 2022 |
|
Sep. 30, 2023 |
|
Sep. 30, 2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
20,502 |
|
|
$ |
16,320 |
|
|
$ |
59,223 |
|
|
$ |
46,595 |
|
Securities and other |
|
3,176 |
|
|
|
3,815 |
|
|
|
9,772 |
|
|
|
10,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
23,678 |
|
|
|
20,135 |
|
|
|
68,995 |
|
|
|
57,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(8,488 |
) |
|
|
(1,550 |
) |
|
|
(19,713 |
) |
|
|
(3,321 |
) |
Borrowings and debt |
|
(551 |
) |
|
|
(75 |
) |
|
|
(2,136 |
) |
|
|
(110 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
(9,039 |
) |
|
|
(1,625 |
) |
|
|
(21,849 |
) |
|
|
(3,431 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
14,639 |
|
|
|
18,510 |
|
|
|
47,146 |
|
|
|
53,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
(525 |
) |
|
|
(525 |
) |
|
|
(1,380 |
) |
|
|
(1,575 |
) |
Net benefit for credit losses on unfunded loan commitments |
|
275 |
|
|
|
6 |
|
|
|
100 |
|
|
|
24 |
|
Non-interest income |
|
4,325 |
|
|
|
3,911 |
|
|
|
13,349 |
|
|
|
12,722 |
|
Non-interest expense |
|
(12,784 |
) |
|
|
(13,034 |
) |
|
|
(39,066 |
) |
|
|
(38,508 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
5,930 |
|
|
|
8,868 |
|
|
|
20,149 |
|
|
|
26,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(590 |
) |
|
|
(1,179 |
) |
|
|
(2,407 |
) |
|
|
(3,735 |
) |
Net income |
$ |
5,340 |
|
|
$ |
7,689 |
|
|
$ |
17,742 |
|
|
$ |
22,875 |
|
|
Three Months Ended |
|
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
20,502 |
|
|
$ |
19,703 |
|
|
$ |
19,018 |
|
|
$ |
17,425 |
|
|
$ |
16,320 |
|
Securities and other |
|
3,176 |
|
|
|
3,276 |
|
|
|
3,320 |
|
|
|
3,869 |
|
|
|
3,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
23,678 |
|
|
|
22,979 |
|
|
|
22,338 |
|
|
|
21,294 |
|
|
|
20,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(8,488 |
) |
|
|
(6,607 |
) |
|
|
(4,618 |
) |
|
|
(2,822 |
) |
|
|
(1,550 |
) |
Borrowings and debt |
|
(551 |
) |
|
|
(890 |
) |
|
|
(695 |
) |
|
|
(145 |
) |
|
|
(75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
(9,039 |
) |
|
|
(7,497 |
) |
|
|
(5,313 |
) |
|
|
(2,967 |
) |
|
|
(1,625 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
14,639 |
|
|
|
15,482 |
|
|
|
17,025 |
|
|
|
18,327 |
|
|
|
18,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
(525 |
) |
|
|
(675 |
) |
|
|
(180 |
) |
|
|
(525 |
) |
|
|
(525 |
) |
Net benefit (provision) for credit losses on unfunded loan
commitments |
|
275 |
|
|
|
50 |
|
|
|
(225 |
) |
|
|
(11 |
) |
|
|
6 |
|
Non-interest income |
|
4,325 |
|
|
|
4,535 |
|
|
|
4,489 |
|
|
|
3,920 |
|
|
|
3,911 |
|
Non-interest expense |
|
(12,784 |
) |
|
|
(13,425 |
) |
|
|
(12,857 |
) |
|
|
(12,854 |
) |
|
|
(13,034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
5,930 |
|
|
|
5,967 |
|
|
|
8,252 |
|
|
|
8,857 |
|
|
|
8,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(590 |
) |
|
|
(605 |
) |
|
|
(1,212 |
) |
|
|
(1,711 |
) |
|
|
(1,179 |
) |
Net income |
$ |
5,340 |
|
|
$ |
5,362 |
|
|
$ |
7,040 |
|
|
$ |
7,146 |
|
|
$ |
7,689 |
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Balance Sheets(dollars in thousands) |
|
At Period End: |
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
110,471 |
|
|
$ |
69,632 |
|
|
$ |
63,038 |
|
|
$ |
29,091 |
|
|
$ |
134,042 |
|
Investment securities |
|
576,688 |
|
|
|
604,264 |
|
|
|
614,526 |
|
|
|
643,606 |
|
|
|
635,787 |
|
Restricted investments in bank stock |
|
3,800 |
|
|
|
3,728 |
|
|
|
5,968 |
|
|
|
5,268 |
|
|
|
3,639 |
|
Loans and leases |
|
1,647,552 |
|
|
|
1,631,472 |
|
|
|
1,627,155 |
|
|
|
1,565,811 |
|
|
|
1,524,328 |
|
Allowance for credit losses on loans |
|
(18,757 |
) |
|
|
(18,350 |
) |
|
|
(17,910 |
) |
|
|
(17,149 |
) |
|
|
(16,779 |
) |
Premises and equipment, net |
|
32,625 |
|
|
|
31,329 |
|
|
|
31,408 |
|
|
|
31,307 |
|
|
|
30,971 |
|
Life insurance cash surrender value |
|
54,226 |
|
|
|
53,892 |
|
|
|
53,567 |
|
|
|
54,035 |
|
|
|
53,711 |
|
Goodwill and core deposit intangible |
|
20,897 |
|
|
|
20,981 |
|
|
|
21,071 |
|
|
|
21,168 |
|
|
|
21,264 |
|
Other assets |
|
49,318 |
|
|
|
44,284 |
|
|
|
44,198 |
|
|
|
45,235 |
|
|
|
48,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,476,820 |
|
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
$ |
2,435,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
549,741 |
|
|
$ |
582,473 |
|
|
$ |
591,055 |
|
|
$ |
602,608 |
|
|
$ |
616,844 |
|
Interest-bearing deposits |
|
1,602,018 |
|
|
|
1,569,519 |
|
|
|
1,552,036 |
|
|
|
1,564,305 |
|
|
|
1,636,389 |
|
Total deposits |
|
2,151,759 |
|
|
|
2,151,992 |
|
|
|
2,143,091 |
|
|
|
2,166,913 |
|
|
|
2,253,233 |
|
Short-term borrowings |
|
124,000 |
|
|
|
76,111 |
|
|
|
88,989 |
|
|
|
12,940 |
|
|
|
10 |
|
Secured borrowings |
|
7,439 |
|
|
|
7,498 |
|
|
|
7,560 |
|
|
|
7,619 |
|
|
|
7,688 |
|
Other liabilities |
|
28,190 |
|
|
|
27,887 |
|
|
|
27,494 |
|
|
|
27,950 |
|
|
|
28,350 |
|
Total liabilities |
|
2,311,388 |
|
|
|
2,263,488 |
|
|
|
2,267,134 |
|
|
|
2,215,422 |
|
|
|
2,289,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
165,432 |
|
|
|
177,744 |
|
|
|
175,887 |
|
|
|
162,950 |
|
|
|
146,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,476,820 |
|
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
$ |
2,435,768 |
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances: |
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
33,238 |
|
|
$ |
37,125 |
|
|
$ |
29,192 |
|
|
$ |
73,023 |
|
|
$ |
88,863 |
|
Investment securities |
|
598,604 |
|
|
|
610,009 |
|
|
|
623,097 |
|
|
|
637,825 |
|
|
|
672,595 |
|
Restricted investments in bank stock |
|
3,763 |
|
|
|
3,834 |
|
|
|
5,418 |
|
|
|
3,840 |
|
|
|
3,645 |
|
Loans and leases |
|
1,640,411 |
|
|
|
1,625,509 |
|
|
|
1,609,655 |
|
|
|
1,540,999 |
|
|
|
1,511,268 |
|
Allowance for credit losses on loans |
|
(18,812 |
) |
|
|
(18,296 |
) |
|
|
(18,380 |
) |
|
|
(17,113 |
) |
|
|
(16,911 |
) |
Premises and equipment, net |
|
31,746 |
|
|
|
31,989 |
|
|
|
31,477 |
|
|
|
31,190 |
|
|
|
30,956 |
|
Life insurance cash surrender value |
|
54,110 |
|
|
|
53,782 |
|
|
|
53,995 |
|
|
|
53,925 |
|
|
|
53,599 |
|
Goodwill and core deposit intangible |
|
20,930 |
|
|
|
21,018 |
|
|
|
21,120 |
|
|
|
21,210 |
|
|
|
21,308 |
|
Other assets |
|
44,346 |
|
|
|
42,630 |
|
|
|
43,690 |
|
|
|
47,715 |
|
|
|
42,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,408,336 |
|
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
$ |
2,407,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
548,682 |
|
|
$ |
568,202 |
|
|
$ |
585,987 |
|
|
$ |
609,262 |
|
|
$ |
589,227 |
|
Interest-bearing deposits |
|
1,607,793 |
|
|
|
1,561,412 |
|
|
|
1,559,212 |
|
|
|
1,589,129 |
|
|
|
1,614,573 |
|
Total deposits |
|
2,156,475 |
|
|
|
2,129,614 |
|
|
|
2,145,199 |
|
|
|
2,198,391 |
|
|
|
2,203,800 |
|
Short-term borrowings |
|
37,595 |
|
|
|
64,558 |
|
|
|
48,937 |
|
|
|
3,875 |
|
|
|
10 |
|
Secured borrowings |
|
7,470 |
|
|
|
7,529 |
|
|
|
7,548 |
|
|
|
7,654 |
|
|
|
7,707 |
|
Other liabilities |
|
29,638 |
|
|
|
29,479 |
|
|
|
29,651 |
|
|
|
30,489 |
|
|
|
29,031 |
|
Total liabilities |
|
2,231,178 |
|
|
|
2,231,180 |
|
|
|
2,231,335 |
|
|
|
2,240,409 |
|
|
|
2,240,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
177,158 |
|
|
|
176,420 |
|
|
|
167,929 |
|
|
|
152,205 |
|
|
|
167,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,408,336 |
|
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
$ |
2,407,887 |
|
|
FIDELITY D & D BANCORP, INC.Selected Financial
Ratios and Other Financial Data |
|
|
Three Months Ended |
|
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.94 |
|
|
$ |
0.95 |
|
|
$ |
1.25 |
|
|
$ |
1.27 |
|
|
$ |
1.36 |
|
Diluted earnings per share |
$ |
0.93 |
|
|
$ |
0.94 |
|
|
$ |
1.24 |
|
|
$ |
1.26 |
|
|
$ |
1.36 |
|
Dividends per share |
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
Yield on interest-earning assets (FTE)* |
|
4.18 |
% |
|
|
4.12 |
% |
|
|
4.06 |
% |
|
|
3.78 |
% |
|
|
3.60 |
% |
Cost of interest-bearing liabilities |
|
2.17 |
% |
|
|
1.84 |
% |
|
|
1.33 |
% |
|
|
0.74 |
% |
|
|
0.40 |
% |
Cost of funds |
|
1.63 |
% |
|
|
1.37 |
% |
|
|
0.98 |
% |
|
|
0.53 |
% |
|
|
0.29 |
% |
Net interest spread (FTE)* |
|
2.01 |
% |
|
|
2.28 |
% |
|
|
2.73 |
% |
|
|
3.04 |
% |
|
|
3.20 |
% |
Net interest margin (FTE)* |
|
2.63 |
% |
|
|
2.82 |
% |
|
|
3.13 |
% |
|
|
3.27 |
% |
|
|
3.32 |
% |
Return on average assets |
|
0.88 |
% |
|
|
0.89 |
% |
|
|
1.19 |
% |
|
|
1.18 |
% |
|
|
1.27 |
% |
Pre-provision net revenue to average assets* |
|
1.02 |
% |
|
|
1.10 |
% |
|
|
1.46 |
% |
|
|
1.56 |
% |
|
|
1.55 |
% |
Return on average equity |
|
11.96 |
% |
|
|
12.19 |
% |
|
|
17.00 |
% |
|
|
18.63 |
% |
|
|
18.23 |
% |
Return on average tangible equity* |
|
13.56 |
% |
|
|
13.84 |
% |
|
|
19.45 |
% |
|
|
21.64 |
% |
|
|
20.89 |
% |
Efficiency ratio (FTE)* |
|
65.01 |
% |
|
|
64.72 |
% |
|
|
57.72 |
% |
|
|
56.02 |
% |
|
|
56.40 |
% |
Expense ratio |
|
1.39 |
% |
|
|
1.48 |
% |
|
|
1.41 |
% |
|
|
1.48 |
% |
|
|
1.51 |
% |
|
|
|
|
Nine months ended |
|
Sep. 30, 2023 |
|
Sep. 30, 2022 |
Basic earnings per share |
$ |
3.13 |
|
|
$ |
4.05 |
|
Diluted earnings per share |
$ |
3.11 |
|
|
$ |
4.03 |
|
Dividends per share |
$ |
1.08 |
|
|
$ |
0.99 |
|
Yield on interest-earning assets (FTE)* |
|
4.12 |
% |
|
|
3.48 |
% |
Cost of interest-bearing liabilities |
|
1.79 |
% |
|
|
0.29 |
% |
Cost of funds |
|
1.33 |
% |
|
|
0.21 |
% |
Net interest spread (FTE)* |
|
2.33 |
% |
|
|
3.19 |
% |
Net interest margin (FTE)* |
|
2.86 |
% |
|
|
3.28 |
% |
Return on average assets |
|
0.99 |
% |
|
|
1.27 |
% |
Pre-provision net revenue to average assets* |
|
1.19 |
% |
|
|
1.57 |
% |
Return on average equity |
|
13.64 |
% |
|
|
17.01 |
% |
Return on average tangible equity* |
|
15.52 |
% |
|
|
19.30 |
% |
Efficiency ratio (FTE)* |
|
62.33 |
% |
|
|
56.05 |
% |
Expense ratio |
|
1.43 |
% |
|
|
1.43 |
% |
|
|
|
Other financial data |
At period end: |
|
(dollars in thousands except per share data) |
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
Assets under management |
$ |
799,968 |
|
|
$ |
840,068 |
|
|
$ |
809,897 |
|
|
$ |
736,401 |
|
|
$ |
678,431 |
|
Book value per share |
$ |
29.04 |
|
|
$ |
31.29 |
|
|
$ |
31.05 |
|
|
$ |
28.94 |
|
|
$ |
26.02 |
|
Tangible book value per share* |
$ |
25.37 |
|
|
$ |
27.59 |
|
|
$ |
27.33 |
|
|
$ |
25.18 |
|
|
$ |
22.24 |
|
Equity to assets |
|
6.68 |
% |
|
|
7.28 |
% |
|
|
7.20 |
% |
|
|
6.85 |
% |
|
|
6.01 |
% |
Tangible common equity ratio* |
|
5.89 |
% |
|
|
6.48 |
% |
|
|
6.39 |
% |
|
|
6.01 |
% |
|
|
5.19 |
% |
Allowance for credit losses on loans to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.14 |
% |
|
|
1.13 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
Non-accrual loans |
6.24x |
|
|
5.25x |
|
|
5.36x |
|
|
6.77x |
|
|
5.23x |
|
Non-accrual loans to total loans |
|
0.18 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
Non-performing assets to total assets** |
|
0.14 |
% |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
|
|
0.19 |
% |
Net charge-offs to average total loans |
|
0.04 |
% |
|
|
0.05 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
14.76 |
% |
|
|
14.71 |
% |
|
|
14.59 |
% |
|
|
14.35 |
% |
|
|
14.34 |
% |
Common equity tier 1
risk-based capital ratio |
|
13.58 |
% |
|
|
13.52 |
% |
|
|
13.42 |
% |
|
|
13.27 |
% |
|
|
13.27 |
% |
Tier 1 risk-based capital
ratio |
|
13.58 |
% |
|
|
13.52 |
% |
|
|
13.42 |
% |
|
|
13.27 |
% |
|
|
13.27 |
% |
Leverage ratio |
|
9.22 |
% |
|
|
9.08 |
% |
|
|
8.92 |
% |
|
|
8.69 |
% |
|
|
8.51 |
% |
* 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) |
Sep. 30, 2023 |
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
FTE net interest income (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (GAAP) |
$ |
23,678 |
|
|
$ |
22,979 |
|
|
$ |
22,338 |
|
|
$ |
21,294 |
|
|
$ |
20,135 |
|
Adjustment to FTE |
|
700 |
|
|
|
725 |
|
|
|
760 |
|
|
|
700 |
|
|
|
687 |
|
Interest income adjusted to
FTE (non-GAAP) |
|
24,378 |
|
|
|
23,704 |
|
|
|
23,098 |
|
|
|
21,994 |
|
|
|
20,822 |
|
Interest expense (GAAP) |
|
9,039 |
|
|
|
7,497 |
|
|
|
5,313 |
|
|
|
2,967 |
|
|
|
1,625 |
|
Net
interest income adjusted to FTE (non-GAAP) |
$ |
15,339 |
|
|
|
16,207 |
|
|
|
17,785 |
|
|
|
19,027 |
|
|
|
19,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
(non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses
(GAAP) |
$ |
12,784 |
|
|
$ |
13,425 |
|
|
$ |
12,857 |
|
|
$ |
12,854 |
|
|
$ |
13,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
14,639 |
|
|
|
15,482 |
|
|
|
17,025 |
|
|
|
18,327 |
|
|
|
18,510 |
|
Plus: taxable equivalent
adjustment |
|
700 |
|
|
|
725 |
|
|
|
760 |
|
|
|
700 |
|
|
|
687 |
|
Non-interest income (GAAP) |
|
4,325 |
|
|
|
4,535 |
|
|
|
4,489 |
|
|
|
3,920 |
|
|
|
3,911 |
|
Net
interest income (FTE) plus non-interest income (non-GAAP) |
$ |
19,664 |
|
|
$ |
20,742 |
|
|
$ |
22,274 |
|
|
$ |
22,947 |
|
|
$ |
23,108 |
|
Efficiency ratio (non-GAAP) |
|
65.01 |
% |
|
|
64.72 |
% |
|
|
57.72 |
% |
|
|
56.02 |
% |
|
|
56.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
per Share/Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
$ |
2,476,820 |
|
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
$ |
2,435,768 |
|
Less:
Intangible assets, primarily goodwill |
|
(20,897 |
) |
|
|
(20,981 |
) |
|
|
(21,071 |
) |
|
|
(21,167 |
) |
|
|
(21,264 |
) |
Tangible assets |
|
2,455,923 |
|
|
|
2,420,251 |
|
|
|
2,421,950 |
|
|
|
2,357,205 |
|
|
|
2,414,504 |
|
Total shareholders' equity
(GAAP) |
|
165,432 |
|
|
|
177,744 |
|
|
|
175,887 |
|
|
|
162,950 |
|
|
|
146,487 |
|
Less:
Intangible assets, primarily goodwill |
|
(20,897 |
) |
|
|
(20,981 |
) |
|
|
(21,071 |
) |
|
|
(21,167 |
) |
|
|
(21,264 |
) |
Tangible common equity |
|
144,535 |
|
|
|
156,763 |
|
|
|
154,816 |
|
|
|
141,783 |
|
|
|
125,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding, end of period |
|
5,696,351 |
|
|
|
5,681,260 |
|
|
|
5,665,255 |
|
|
|
5,630,794 |
|
|
|
5,630,332 |
|
Tangible Common Book Value per Share |
$ |
25.37 |
|
|
$ |
27.59 |
|
|
$ |
27.33 |
|
|
$ |
25.18 |
|
|
$ |
22.24 |
|
Tangible Common Equity Ratio |
|
5.89 |
% |
|
|
6.48 |
% |
|
|
6.39 |
% |
|
|
6.01 |
% |
|
|
5.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue to Average Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
(GAAP) |
$ |
5,930 |
|
|
$ |
5,967 |
|
|
$ |
8,252 |
|
|
$ |
8,857 |
|
|
$ |
8,868 |
|
Plus:
Provision for credit losses |
|
250 |
|
|
|
625 |
|
|
|
405 |
|
|
|
536 |
|
|
|
519 |
|
Total pre-provision net
revenue (non-GAAP) |
|
6,180 |
|
|
|
6,592 |
|
|
|
8,657 |
|
|
|
9,393 |
|
|
|
9,387 |
|
Total (annualized)
(non-GAAP) |
$ |
24,517 |
|
|
$ |
26,440 |
|
|
$ |
35,110 |
|
|
$ |
37,267 |
|
|
$ |
37,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets |
$ |
2,408,336 |
|
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
$ |
2,407,887 |
|
Pre-Provision Net Revenue to Average Assets (non-GAAP) |
|
1.02 |
% |
|
|
1.10 |
% |
|
|
1.46 |
% |
|
|
1.56 |
% |
|
|
1.55 |
% |
|
|
|
Reconciliations of Non-GAAP Measures to GAAP |
Nine months ended |
(dollars in thousands) |
Sep. 30, 2023 |
|
|
Sep. 30, 2022 |
|
FTE net interest income (non-GAAP) |
|
|
|
|
|
|
|
Interest income (GAAP) |
$ |
68,995 |
|
|
$ |
57,378 |
|
Adjustment to FTE |
|
2,186 |
|
|
|
2,038 |
|
Interest income adjusted to FTE (non-GAAP) |
|
71,181 |
|
|
|
59,416 |
|
Interest expense (GAAP) |
|
21,849 |
|
|
|
3,431 |
|
Net interest income adjusted to FTE (non-GAAP) |
$ |
49,332 |
|
|
|
55,985 |
|
|
|
|
|
|
|
|
|
Efficiency Ratio (non-GAAP) |
|
|
|
|
|
|
|
Non-interest expenses (GAAP) |
$ |
39,066 |
|
|
$ |
38,508 |
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
47,146 |
|
|
|
53,947 |
|
Plus: taxable equivalent adjustment |
|
2,186 |
|
|
|
2,038 |
|
Non-interest income (GAAP) |
|
13,349 |
|
|
|
12,722 |
|
Net interest income (FTE) plus non-interest income (non-GAAP) |
$ |
62,681 |
|
|
$ |
68,707 |
|
Efficiency ratio (non-GAAP) |
|
62.33 |
% |
|
|
56.05 |
% |
|
|
|
|
|
|
|
|
Pre-Provision Net Revenue to Average Assets |
|
|
|
|
|
|
|
Income before taxes (GAAP) |
$ |
20,149 |
|
|
$ |
26,610 |
|
Plus: Provision for credit losses |
|
1,280 |
|
|
|
1,551 |
|
Total pre-provision net revenue (non-GAAP) |
|
21,429 |
|
|
|
28,161 |
|
Total (annualized) (non-GAAP) |
$ |
28,650 |
|
|
$ |
37,651 |
|
|
|
|
|
|
|
|
|
Average assets |
$ |
2,405,100 |
|
|
$ |
2,401,922 |
|
Pre-Provision Net Revenue to Average Assets (non-GAAP) |
|
1.19 |
% |
|
|
1.57 |
% |
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