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
twelve month periods ended December 31, 2023.
Unaudited Financial Information
Net income recorded for the year ended December 31, 2023 was
$18.2 million, or $3.19 diluted earnings per share, compared to
$30.0 million, or $5.29 diluted earnings per share, for the year
ended December 31, 2022. The $11.8 million, or 39% decline in
net income stemmed from the $10.2 million reduction in net interest
income and $5.2 million less non-interest income primarily from
losses on the sale of securities partially offset by $3.4
million lower provision for income taxes.
During the fourth quarter of 2023, the Company sold certain
available-for-sale securities with a carrying value of $35.6
million for a $6.5 million pre-tax loss in order to deleverage the
reliance on short-term borrowings in order to reposition the
balance sheet. Excluding the loss on the sale of securities of $5.1
million, net of tax, adjusted net income was $23.3 million, or
$4.08 adjusted diluted earnings per share, for the year ended
December 31, 2023, a $6.7 million decrease compared to
2022. For more detail on adjusted net income which is a
non-GAAP measurement, refer to the “Non-GAAP Measures” table within
the Selected Financial Ratios and Other Data section.
“2023 core earnings remained strong as we repositioned the
balance sheet to provide flexibility through uncertain economic
climates. We continue to execute well,” stated Daniel J.
Santaniello, President and Chief Executive Officer. “Our balance
sheet and credit quality are strong, and expenses remain well
managed. We continue to be focused, disciplined and thoughtful as
we execute on our strategic plan. The Fidelity Bankers have
demonstrated exemplary efforts and Fidelity Bank is well positioned
for the future and committed to our clients, shareholders, and the
communities we serve.”
Net income for the quarter ended December 31, 2023 was $0.5
million, or $0.08 diluted earnings per share, compared to
$7.1 million, or $1.26 diluted earnings per share, for the
quarter ended December 31, 2022. The $6.6 million, or
93%, decline in net income resulted
primarily from $5.9 million lower non-interest income due to
the $6.5 million loss on the sale of securities during the fourth
quarter of 2023. Net interest income declined $3.4 million which
was partially offset by a $2.1 million reduction in the provision
for income taxes and $0.4 million less in the provision for credit
losses on loans.
Excluding the loss on the sale of securities of $5.1 million,
net of tax, adjusted net income was $5.6 million, or $0.97 adjusted
diluted earnings per share, for the quarter ended December 31,
2023, a $1.5 million decrease compared to the same period in
2022. For more detail on adjusted net income which is a
non-GAAP measurement, refer to the “Non-GAAP Measures” table within
the Selected Financial Ratios and Other Data section.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $62.1 million for the year ended
December 31, 2023 compared to $72.3 million for the year ended
December 31, 2022. The $10.2 million, or 14%, decline
was the result of interest expense growing faster than interest
income. On the asset side, the loan portfolio caused interest
income growth by producing $16.6 million more interest income
from an increase of 68 basis points in FTE loan yields on $134.5
million in higher average balances. Interest income in the
commercial portfolio increased $9.2 million during the
year ended December 31, 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 $1.1 million from the
$67.1 million lower average balance in the portfolio. On the
funding side, interest expense increased by $25.4 million
primarily due to the 144 basis point higher rate paid
on interest-bearing deposits. The Company also required
$48.8 million more in average short-term borrowings which added
$2.3 million in interest expense. FTE net interest spread was 2.25%
for 2023, or 91 basis points lower than the 3.16% recorded
for 2022. Over the same time period, the Company’s FTE
net interest margin decreased by 47 basis points to 2.81% from
3.28%.
The provision for credit losses on loans was $1.5 million
which was partially offset by a benefit for credit losses on
unfunded loan commitments of $0.2 million for 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 year ended December 31, 2023, the
benefit for credit losses on unfunded commitments was due to a
reduction in unfunded commitments during the year. For the year
ended December 31, 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 year ended December 31, 2023
was $11.4 million, a decrease of $5.2 million, or 31%, from
$16.6 million for the year ended December 31, 2022. Non-interest
income would have increased $1.3 million if not for the $6.5
million loss on the sale of securities during 2023. In
addition, the Company also recorded $0.7 million lower gains on
loans sold and $0.3 million less service charges on loans.
Partially offsetting these decreases was $0.5 million in additional
trust fiduciary fees, $0.5 million more service charges on
deposits, $0.3 million in recoveries from acquired charged-off
loans, $0.3 million higher commercial swap fees, $0.3 million in
additional mortgage servicing fees and $0.2 million more debit
card interchange fees.
Non-interest expenses increased to $51.9 million for the year
ended December 31, 2023, an increase of $0.5 million, or 1%, from
$51.4 million for the year ended December 31, 2022. The
largest driver of this increase was a $1.2 million increase in
premises and equipment expenses which increased $0.6 million
primarily from additional depreciation, equipment maintenance and
software subscription related expenses. In addition, the Company
incurred $0.5 million more in fraud losses, $0.4 million higher
FDIC assessment and a $0.4 million increase in professional service
expenses. Partially offsetting these increases, salaries and
employee benefits expenses decreased $1.3 million, primarily from
less incentive based compensation, and PA shares tax expense
declined $0.6 million from a lower capital taxable base.
The provision for income taxes decreased $3.4 million during
2023 compared to 2022 due to a $0.5 million increase in tax
credits and the lower income before taxes.
Consolidated Fourth Quarter Operating Results
Overview
Net interest income was $14.9 million for the fourth quarter of
2023, a 19% decrease over the $18.3 million earned for
the fourth quarter of 2022. The $3.4 million decline in net
interest income resulted primarily from the $7.0 million
increase in interest expense primarily due to a 156 basis
point increase in the rates paid on interest-bearing deposits
supplemented by $27.7 million higher average balances of
interest-bearing deposits. The Company also required $44.6
million more in average short-term borrowings during the fourth
quarter of 2023 which contributed $0.5 million in additional
interest expense compared to the fourth quarter of
2022. Partially offsetting the higher interest expense,
interest income grew $3.5 million primarily due to a $123.9 million
increase in the average balance of loans and leases and
a 63 basis point increase in fully-taxable
equivalent ("FTE") yields earned thereon, producing $4.0 million
higher FTE interest income. Partially offsetting the higher
interest income in the loan portfolio, interest income from the
investment portfolio declined $0.4 million primarily from the
decrease of $79.6 million in the average balance of
securities.
The overall cost of interest-bearing liabilities was 2.36% for
the fourth quarter of 2023, an increase of 162 basis points from
the 0.74% paid for the fourth quarter of 2022. The cost
of funds increased 126 basis points to 1.79% for the fourth quarter
of 2023 from 0.53% for the fourth quarter of 2022. The
Company’s FTE (non-GAAP measurement) net interest spread
was 2.00% for the fourth quarter of 2023, down 104 basis
points from the 3.04% recorded for the fourth quarter of
2022. FTE net interest margin decreased by 61 basis
points to 2.66% for the three months ended December 31, 2023 from
3.27% 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. Average
non-interest bearing deposits, which impact net interest margin,
decreased $75.6 million quarter-over-quarter resulting in the
widening gap between spread and margin.
The provision for credit losses on loans was $0.1 million
partially offset by a net benefit in the provision
for credit losses on unfunded loan commitments of
$0.1 million for the fourth quarter of 2023. For the
three months ended December 31, 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 December 31, 2023, the $0.1 million benefit for credit losses
on unfunded commitments was due to a reduction in unfunded
commitments during the quarter.
Total non-interest income decreased $5.9 million due to the $6.5
million loss recognized on the sale of securities during the fourth
quarter of 2023. Partially offsetting this decrease was the
$0.3 million increase in wealth management revenue, $0.1 million in
mortgage servicing fees and $0.1 million higher service charges on
deposits.
Non-interest expenses remained relatively unchanged for the
fourth quarter of 2023 compared to the same quarter of 2022.
Increases of $0.2 million in premises and equipment
expenses and $0.2 million in fraud losses were partially
offset by decreases of $0.2 million in professional
services.
The provision for income taxes decreased $2.1 million during the
fourth quarter of 2023 primarily due to the lower level of
operating income compared to the fourth quarter of 2022.
Consolidated Balance Sheet & Asset Quality
Overview
The Company’s total assets grew to $2.5 billion as of
December 31, 2023, an increase of $125 million from December
31, 2022. Growth in the loan portfolio of $121 million and
$83 million in cash and cash equivalents was partially offset
by a reduction of the investment portfolio by $75
million. The decline in the investment portfolio was primarily
due to sales of $67 million in securities and $25 million in
paydowns partially offset by a $16 million increase
in market value of available-for-sale securities. Also
noteworthy during 2023, the market value of held-to-maturity
securities increased by $10 million, with $27 million in unrealized
losses at December 31, 2023. During the same time period, total
liabilities increased $98 million, or 4%. Growth of $104
million in short-term borrowings replaced deposit declines of $8
million with the remaining balance used to fund loan growth
with the excess increasing cash balances. Transactional deposit mix
changed with overall balances down primarily from customers'
investing part of their funds in higher yields and increased
consumer spending. This reduction was partially mitigated
through the $96 million growth achieved by promotional CD
offerings during 2023. As of December 31, 2023, the ratio of
insured and collateralized deposits to total deposits was
approximately 77%.
Shareholders’ equity increased $26.5 million, or 16%, to $189.5
million at December 31, 2023 from $163.0 million at December
31, 2022. The increase was caused by a $14.7 million, after
tax, improvement in accumulated other comprehensive income
from lower net unrealized losses recorded on
available-for-sale investment securities plus retained earnings
increase from net income of $18.2 million, partially offset by $8.4
million in cash dividends paid to shareholders. An additional
$3.3 million was recorded from the issuance of common stock under
the Company’s stock plans and stock-based compensation
expense. Partially offsetting these increases was a
cumulative-effect adjustment made for adoption of ASU 2016-13
during the first quarter of 2023 which reduced retained earnings by
$1.3 million. At December 31, 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 9.15% of total average assets as
of December 31, 2023. Total risk-based capital was
14.67% of risk-weighted assets and Tier 1 risk-based capital was
13.42% of risk-weighted assets as of December 31, 2023.
Tangible book value per share was $29.57 at December 31, 2023
compared to $25.18 at December 31, 2022. Tangible common
equity was 6.79% of total assets at December 31, 2023 compared to
6.01% at December 31, 2022.
Asset Quality
Total non-performing assets were $3.3 million, or 0.13% of
total assets, at December 31, 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 0.46% at December 31, 2023
compared to 0.28% at December 31, 2022. Net charge-offs to
average total loans were 0.04% at December 31, 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 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 5,980 hours of
volunteer time and over $1.4 million in donations to non-profit
organizations directly within the markets served throughout
2023. 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 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: |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
111,949 |
|
|
$ |
29,091 |
|
Investment securities |
|
|
568,273 |
|
|
|
643,606 |
|
Restricted investments in bank stock |
|
|
3,905 |
|
|
|
5,268 |
|
Loans and leases |
|
|
1,686,555 |
|
|
|
1,565,811 |
|
Allowance for credit losses on loans |
|
|
(18,806 |
) |
|
|
(17,149 |
) |
Premises and equipment, net |
|
|
34,232 |
|
|
|
31,307 |
|
Life insurance cash surrender value |
|
|
54,572 |
|
|
|
54,035 |
|
Goodwill and core deposit intangible |
|
|
20,812 |
|
|
|
21,168 |
|
Other assets |
|
|
41,667 |
|
|
|
45,235 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,503,159 |
|
|
$ |
2,378,372 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
536,143 |
|
|
$ |
602,608 |
|
Interest-bearing deposits |
|
|
1,622,282 |
|
|
|
1,564,305 |
|
Total deposits |
|
|
2,158,425 |
|
|
|
2,166,913 |
|
Short-term borrowings |
|
|
117,000 |
|
|
|
12,940 |
|
Secured borrowings |
|
|
7,372 |
|
|
|
7,619 |
|
Other liabilities |
|
|
30,883 |
|
|
|
27,950 |
|
Total liabilities |
|
|
2,313,680 |
|
|
|
2,215,422 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
189,479 |
|
|
|
162,950 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,503,159 |
|
|
$ |
2,378,372 |
|
Average Year-To-Date Balances: |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
35,462 |
|
|
$ |
81,532 |
|
Investment securities |
|
|
597,359 |
|
|
|
684,588 |
|
Restricted investments in bank stock |
|
|
4,212 |
|
|
|
3,565 |
|
Loans and leases |
|
|
1,635,286 |
|
|
|
1,500,796 |
|
Allowance for credit losses on loans |
|
|
(18,680 |
) |
|
|
(16,612 |
) |
Premises and equipment, net |
|
|
32,215 |
|
|
|
30,640 |
|
Life insurance cash surrender value |
|
|
54,085 |
|
|
|
53,443 |
|
Goodwill and core deposit intangible |
|
|
20,977 |
|
|
|
21,359 |
|
Other assets |
|
|
44,180 |
|
|
|
40,265 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,405,096 |
|
|
$ |
2,399,576 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
558,962 |
|
|
$ |
594,541 |
|
Interest-bearing deposits |
|
|
1,586,527 |
|
|
|
1,593,805 |
|
Total deposits |
|
|
2,145,489 |
|
|
|
2,188,346 |
|
Short-term borrowings |
|
|
49,860 |
|
|
|
1,031 |
|
Secured borrowings |
|
|
7,489 |
|
|
|
8,886 |
|
Other liabilities |
|
|
29,881 |
|
|
|
28,434 |
|
Total liabilities |
|
|
2,232,719 |
|
|
|
2,226,697 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
172,377 |
|
|
|
172,879 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,405,096 |
|
|
$ |
2,399,576 |
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Statements of Income(dollars in
thousands) |
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
Dec. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Dec. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
21,407 |
|
|
$ |
17,425 |
|
|
$ |
80,629 |
|
|
$ |
64,020 |
|
Securities and other |
|
|
3,434 |
|
|
|
3,869 |
|
|
|
13,206 |
|
|
|
14,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
24,840 |
|
|
|
21,294 |
|
|
|
93,835 |
|
|
|
78,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
(9,232 |
) |
|
|
(2,822 |
) |
|
|
(28,945 |
) |
|
|
(6,144 |
) |
Borrowings and debt |
|
|
(707 |
) |
|
|
(145 |
) |
|
|
(2,843 |
) |
|
|
(254 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
(9,939 |
) |
|
|
(2,967 |
) |
|
|
(31,788 |
) |
|
|
(6,398 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
14,901 |
|
|
|
18,327 |
|
|
|
62,047 |
|
|
|
72,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
|
(111 |
) |
|
|
(525 |
) |
|
|
(1,491 |
) |
|
|
(2,100 |
) |
Net benefit (provision) for credit losses on unfunded loan
commitments |
|
|
65 |
|
|
|
(11 |
) |
|
|
165 |
|
|
|
13 |
|
Non-interest income (loss) |
|
|
(1,944 |
) |
|
|
3,920 |
|
|
|
11,405 |
|
|
|
16,642 |
|
Non-interest expense |
|
|
(12,804 |
) |
|
|
(12,854 |
) |
|
|
(51,870 |
) |
|
|
(51,361 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
107 |
|
|
|
8,857 |
|
|
|
20,256 |
|
|
|
35,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision) benefit for income taxes |
|
|
361 |
|
|
|
(1,711 |
) |
|
|
(2,046 |
) |
|
|
(5,447 |
) |
Net income |
|
$ |
468 |
|
|
$ |
7,146 |
|
|
$ |
18,210 |
|
|
$ |
30,021 |
|
|
|
Three Months Ended |
|
|
|
Dec. 31, 2023 |
|
|
Sep. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
21,407 |
|
|
$ |
20,502 |
|
|
$ |
19,703 |
|
|
$ |
19,018 |
|
|
$ |
17,425 |
|
Securities and other |
|
|
3,434 |
|
|
|
3,176 |
|
|
|
3,276 |
|
|
|
3,320 |
|
|
|
3,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
24,840 |
|
|
|
23,678 |
|
|
|
22,979 |
|
|
|
22,338 |
|
|
|
21,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
(9,232 |
) |
|
|
(8,488 |
) |
|
|
(6,607 |
) |
|
|
(4,618 |
) |
|
|
(2,822 |
) |
Borrowings and debt |
|
|
(707 |
) |
|
|
(551 |
) |
|
|
(890 |
) |
|
|
(695 |
) |
|
|
(145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
(9,939 |
) |
|
|
(9,039 |
) |
|
|
(7,497 |
) |
|
|
(5,313 |
) |
|
|
(2,967 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
14,901 |
|
|
|
14,639 |
|
|
|
15,482 |
|
|
|
17,025 |
|
|
|
18,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
|
(111 |
) |
|
|
(525 |
) |
|
|
(675 |
) |
|
|
(180 |
) |
|
|
(525 |
) |
Net benefit (provision) for credit losses on unfunded loan
commitments |
|
|
65 |
|
|
|
275 |
|
|
|
50 |
|
|
|
(225 |
) |
|
|
(11 |
) |
Non-interest income (loss) |
|
|
(1,944 |
) |
|
|
4,325 |
|
|
|
4,535 |
|
|
|
4,489 |
|
|
|
3,920 |
|
Non-interest expense |
|
|
(12,804 |
) |
|
|
(12,784 |
) |
|
|
(13,425 |
) |
|
|
(12,857 |
) |
|
|
(12,854 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
107 |
|
|
|
5,930 |
|
|
|
5,967 |
|
|
|
8,252 |
|
|
|
8,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision) benefit for income taxes |
|
|
361 |
|
|
|
(590 |
) |
|
|
(605 |
) |
|
|
(1,212 |
) |
|
|
(1,711 |
) |
Net income |
|
$ |
468 |
|
|
$ |
5,340 |
|
|
$ |
5,362 |
|
|
$ |
7,040 |
|
|
$ |
7,146 |
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Balance Sheets(dollars in thousands) |
|
At Period End: |
|
Dec. 31, 2023 |
|
|
Sep. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
111,949 |
|
|
$ |
110,471 |
|
|
$ |
69,632 |
|
|
$ |
63,038 |
|
|
$ |
29,091 |
|
Investment securities |
|
|
568,273 |
|
|
|
576,688 |
|
|
|
604,264 |
|
|
|
614,526 |
|
|
|
643,606 |
|
Restricted investments in bank stock |
|
|
3,905 |
|
|
|
3,800 |
|
|
|
3,728 |
|
|
|
5,968 |
|
|
|
5,268 |
|
Loans and leases |
|
|
1,686,555 |
|
|
|
1,647,552 |
|
|
|
1,631,472 |
|
|
|
1,627,155 |
|
|
|
1,565,811 |
|
Allowance for credit losses on loans |
|
|
(18,806 |
) |
|
|
(18,757 |
) |
|
|
(18,350 |
) |
|
|
(17,910 |
) |
|
|
(17,149 |
) |
Premises and equipment, net |
|
|
34,232 |
|
|
|
32,625 |
|
|
|
31,329 |
|
|
|
31,408 |
|
|
|
31,307 |
|
Life insurance cash surrender value |
|
|
54,572 |
|
|
|
54,226 |
|
|
|
53,892 |
|
|
|
53,567 |
|
|
|
54,035 |
|
Goodwill and core deposit intangible |
|
|
20,812 |
|
|
|
20,897 |
|
|
|
20,981 |
|
|
|
21,071 |
|
|
|
21,168 |
|
Other assets |
|
|
41,667 |
|
|
|
49,318 |
|
|
|
44,284 |
|
|
|
44,198 |
|
|
|
45,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,503,159 |
|
|
$ |
2,476,820 |
|
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
536,143 |
|
|
$ |
549,741 |
|
|
$ |
582,473 |
|
|
$ |
591,055 |
|
|
$ |
602,608 |
|
Interest-bearing deposits |
|
|
1,622,282 |
|
|
|
1,602,018 |
|
|
|
1,569,519 |
|
|
|
1,552,036 |
|
|
|
1,564,305 |
|
Total deposits |
|
|
2,158,425 |
|
|
|
2,151,759 |
|
|
|
2,151,992 |
|
|
|
2,143,091 |
|
|
|
2,166,913 |
|
Short-term borrowings |
|
|
117,000 |
|
|
|
124,000 |
|
|
|
76,111 |
|
|
|
88,989 |
|
|
|
12,940 |
|
Secured borrowings |
|
|
7,372 |
|
|
|
7,439 |
|
|
|
7,498 |
|
|
|
7,560 |
|
|
|
7,619 |
|
Other liabilities |
|
|
30,883 |
|
|
|
28,190 |
|
|
|
27,887 |
|
|
|
27,494 |
|
|
|
27,950 |
|
Total liabilities |
|
|
2,313,680 |
|
|
|
2,311,388 |
|
|
|
2,263,488 |
|
|
|
2,267,134 |
|
|
|
2,215,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
189,479 |
|
|
|
165,432 |
|
|
|
177,744 |
|
|
|
175,887 |
|
|
|
162,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,503,159 |
|
|
$ |
2,476,820 |
|
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
Average Quarterly Balances: |
|
Dec. 31, 2023 |
|
|
Sep. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
42,176 |
|
|
$ |
33,238 |
|
|
$ |
37,125 |
|
|
$ |
29,192 |
|
|
$ |
73,023 |
|
Investment securities |
|
|
558,423 |
|
|
|
598,604 |
|
|
|
610,009 |
|
|
|
623,097 |
|
|
|
637,825 |
|
Restricted investments in bank stock |
|
|
3,854 |
|
|
|
3,763 |
|
|
|
3,834 |
|
|
|
5,418 |
|
|
|
3,840 |
|
Loans and leases |
|
|
1,664,905 |
|
|
|
1,640,411 |
|
|
|
1,625,509 |
|
|
|
1,609,655 |
|
|
|
1,540,999 |
|
Allowance for credit losses on loans |
|
|
(19,222 |
) |
|
|
(18,812 |
) |
|
|
(18,296 |
) |
|
|
(18,380 |
) |
|
|
(17,113 |
) |
Premises and equipment, net |
|
|
33,629 |
|
|
|
31,746 |
|
|
|
31,989 |
|
|
|
31,477 |
|
|
|
31,190 |
|
Life insurance cash surrender value |
|
|
54,449 |
|
|
|
54,110 |
|
|
|
53,782 |
|
|
|
53,995 |
|
|
|
53,925 |
|
Goodwill and core deposit intangible |
|
|
20,844 |
|
|
|
20,930 |
|
|
|
21,018 |
|
|
|
21,120 |
|
|
|
21,210 |
|
Other assets |
|
|
46,028 |
|
|
|
44,346 |
|
|
|
42,630 |
|
|
|
43,690 |
|
|
|
47,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,405,086 |
|
|
$ |
2,408,336 |
|
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
$ |
533,663 |
|
|
$ |
548,682 |
|
|
$ |
568,202 |
|
|
$ |
585,987 |
|
|
$ |
609,262 |
|
Interest-bearing deposits |
|
|
1,616,826 |
|
|
|
1,607,793 |
|
|
|
1,561,412 |
|
|
|
1,559,212 |
|
|
|
1,589,129 |
|
Total deposits |
|
|
2,150,489 |
|
|
|
2,156,475 |
|
|
|
2,129,614 |
|
|
|
2,145,199 |
|
|
|
2,198,391 |
|
Short-term borrowings |
|
|
48,490 |
|
|
|
37,595 |
|
|
|
64,558 |
|
|
|
48,937 |
|
|
|
3,875 |
|
Secured borrowings |
|
|
7,412 |
|
|
|
7,470 |
|
|
|
7,529 |
|
|
|
7,548 |
|
|
|
7,654 |
|
Other liabilities |
|
|
30,745 |
|
|
|
29,638 |
|
|
|
29,479 |
|
|
|
29,651 |
|
|
|
30,489 |
|
Total liabilities |
|
|
2,237,136 |
|
|
|
2,231,178 |
|
|
|
2,231,180 |
|
|
|
2,231,335 |
|
|
|
2,240,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
167,950 |
|
|
|
177,158 |
|
|
|
176,420 |
|
|
|
167,929 |
|
|
|
152,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,405,086 |
|
|
$ |
2,408,336 |
|
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
|
FIDELITY D & D BANCORP, INC.Selected Financial
Ratios and Other Financial Data |
|
|
|
Three Months Ended |
|
|
|
Dec. 31, 2023 |
|
|
Sep. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.08 |
|
|
$ |
0.94 |
|
|
$ |
0.95 |
|
|
$ |
1.25 |
|
|
$ |
1.27 |
|
Diluted earnings per share |
|
$ |
0.08 |
|
|
$ |
0.93 |
|
|
$ |
0.94 |
|
|
$ |
1.24 |
|
|
$ |
1.26 |
|
Dividends per share |
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
Yield on interest-earning assets (FTE)* |
|
|
4.36 |
% |
|
|
4.18 |
% |
|
|
4.12 |
% |
|
|
4.06 |
% |
|
|
3.78 |
% |
Cost of interest-bearing liabilities |
|
|
2.36 |
% |
|
|
2.17 |
% |
|
|
1.84 |
% |
|
|
1.33 |
% |
|
|
0.74 |
% |
Cost of funds |
|
|
1.79 |
% |
|
|
1.63 |
% |
|
|
1.37 |
% |
|
|
0.98 |
% |
|
|
0.53 |
% |
Net interest spread (FTE)* |
|
|
2.00 |
% |
|
|
2.01 |
% |
|
|
2.28 |
% |
|
|
2.73 |
% |
|
|
3.04 |
% |
Net interest margin (FTE)* |
|
|
2.66 |
% |
|
|
2.63 |
% |
|
|
2.82 |
% |
|
|
3.13 |
% |
|
|
3.27 |
% |
Return on average assets |
|
|
0.08 |
% |
|
|
0.88 |
% |
|
|
0.89 |
% |
|
|
1.19 |
% |
|
|
1.18 |
% |
Pre-provision net revenue to average assets* |
|
|
0.03 |
% |
|
|
1.02 |
% |
|
|
1.10 |
% |
|
|
1.46 |
% |
|
|
1.56 |
% |
Return on average equity |
|
|
1.10 |
% |
|
|
11.96 |
% |
|
|
12.19 |
% |
|
|
17.00 |
% |
|
|
18.63 |
% |
Return on average tangible equity* |
|
|
1.26 |
% |
|
|
13.56 |
% |
|
|
13.84 |
% |
|
|
19.45 |
% |
|
|
21.64 |
% |
Efficiency ratio (FTE)* |
|
|
63.74 |
% |
|
|
65.01 |
% |
|
|
64.72 |
% |
|
|
57.72 |
% |
|
|
56.02 |
% |
Expense ratio |
|
|
2.43 |
% |
|
|
1.39 |
% |
|
|
1.48 |
% |
|
|
1.41 |
% |
|
|
1.48 |
% |
|
|
Years ended |
|
|
|
Dec. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Basic earnings per share |
|
$ |
3.21 |
|
|
$ |
5.32 |
|
Diluted earnings per share |
|
$ |
3.19 |
|
|
$ |
5.29 |
|
Dividends per share |
|
$ |
1.46 |
|
|
$ |
1.35 |
|
Yield on interest-earning assets (FTE)* |
|
|
4.18 |
% |
|
|
3.56 |
% |
Cost of interest-bearing liabilities |
|
|
1.93 |
% |
|
|
0.40 |
% |
Cost of funds |
|
|
1.44 |
% |
|
|
0.29 |
% |
Net interest spread (FTE)* |
|
|
2.25 |
% |
|
|
3.16 |
% |
Net interest margin (FTE)* |
|
|
2.81 |
% |
|
|
3.28 |
% |
Return on average assets |
|
|
0.76 |
% |
|
|
1.25 |
% |
Pre-provision net revenue to average assets* |
|
|
0.90 |
% |
|
|
1.57 |
% |
Return on average equity |
|
|
10.56 |
% |
|
|
17.37 |
% |
Return on average tangible equity* |
|
|
12.03 |
% |
|
|
19.81 |
% |
Efficiency ratio (FTE)* |
|
|
62.67 |
% |
|
|
56.02 |
% |
Expense ratio |
|
|
1.69 |
% |
|
|
1.45 |
% |
|
FIDELITY D & D BANCORP, INC.Selected Financial
Ratios and Other Financial Data |
|
Non-GAAP Measures |
|
Three Months Ended |
|
|
Twelve Months Ended |
|
(dollars in thousands except per share data) |
|
Dec. 31, 2023 |
|
|
Dec. 31, 2022 |
|
|
Dec. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Net income |
|
$ |
468 |
|
|
$ |
7,146 |
|
|
$ |
18,210 |
|
|
$ |
30,021 |
|
Loss
(gain) on the sale of available-for-sale debt securities, net of
income taxes |
|
|
5,109 |
|
|
|
- |
|
|
|
5,110 |
|
|
|
(3 |
) |
Adjusted net income* |
|
$ |
5,577 |
|
|
$ |
7,146 |
|
|
$ |
23,320 |
|
|
$ |
30,018 |
|
Adjusted basic earnings per
share* |
|
$ |
0.98 |
|
|
$ |
1.27 |
|
|
$ |
4.11 |
|
|
$ |
5.32 |
|
Adjusted diluted earnings per
share* |
|
$ |
0.97 |
|
|
$ |
1.26 |
|
|
$ |
4.08 |
|
|
$ |
5.29 |
|
Adjusted return on average
assets* |
|
|
0.92 |
% |
|
|
1.18 |
% |
|
|
0.97 |
% |
|
|
1.25 |
% |
Adjusted return on average
tangible equity* |
|
|
15.04 |
% |
|
|
21.64 |
% |
|
|
15.40 |
% |
|
|
19.81 |
% |
Other financial data |
|
At period end: |
|
(dollars in thousands except per share data) |
|
Dec. 31, 2023 |
|
|
Sep. 30, 2023 |
|
|
Jun. 30, 2023 |
|
|
Mar. 31, 2023 |
|
|
Dec. 31, 2022 |
|
Assets under management |
|
$ |
876,287 |
|
|
$ |
799,968 |
|
|
$ |
840,068 |
|
|
$ |
809,897 |
|
|
$ |
736,401 |
|
Book value per share |
|
$ |
33.22 |
|
|
$ |
29.04 |
|
|
$ |
31.29 |
|
|
$ |
31.05 |
|
|
$ |
28.94 |
|
Tangible book value per share* |
|
$ |
29.57 |
|
|
$ |
25.37 |
|
|
$ |
27.59 |
|
|
$ |
27.33 |
|
|
$ |
25.18 |
|
Equity to assets |
|
|
7.57 |
% |
|
|
6.68 |
% |
|
|
7.28 |
% |
|
|
7.20 |
% |
|
|
6.85 |
% |
Tangible common equity ratio* |
|
|
6.79 |
% |
|
|
5.89 |
% |
|
|
6.48 |
% |
|
|
6.39 |
% |
|
|
6.01 |
% |
Allowance for credit losses on loans to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
1.12 |
% |
|
|
1.14 |
% |
|
|
1.13 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
Non-accrual loans |
|
5.68x |
|
|
6.24x |
|
|
5.25x |
|
|
5.36x |
|
|
6.77x |
|
Non-accrual loans to total loans |
|
|
0.20 |
% |
|
|
0.18 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.16 |
% |
Non-performing assets to total assets** |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
Net charge-offs to average total loans |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
|
14.67 |
% |
|
|
14.76 |
% |
|
|
14.71 |
% |
|
|
14.59 |
% |
|
|
14.35 |
% |
Common equity tier 1
risk-based capital ratio |
|
|
13.42 |
% |
|
|
13.58 |
% |
|
|
13.52 |
% |
|
|
13.42 |
% |
|
|
13.27 |
% |
Tier 1 risk-based capital
ratio |
|
|
13.42 |
% |
|
|
13.58 |
% |
|
|
13.52 |
% |
|
|
13.42 |
% |
|
|
13.27 |
% |
Leverage ratio |
|
|
9.15 |
% |
|
|
9.22 |
% |
|
|
9.08 |
% |
|
|
8.92 |
% |
|
|
8.69 |
% |
* 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) |
|
Dec. 31,2023 |
|
|
Sep. 30,2023 |
|
|
Jun. 30,2023 |
|
|
Mar. 31,2023 |
|
|
Dec. 31,2022 |
|
FTE net interest income (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (GAAP) |
|
$ |
24,840 |
|
|
$ |
23,678 |
|
|
$ |
22,979 |
|
|
$ |
22,338 |
|
|
$ |
21,294 |
|
Adjustment to FTE |
|
|
664 |
|
|
|
700 |
|
|
|
725 |
|
|
|
760 |
|
|
|
700 |
|
Interest income adjusted to
FTE (non-GAAP) |
|
|
25,504 |
|
|
|
24,378 |
|
|
|
23,704 |
|
|
|
23,098 |
|
|
|
21,994 |
|
Interest expense (GAAP) |
|
|
9,939 |
|
|
|
9,039 |
|
|
|
7,497 |
|
|
|
5,313 |
|
|
|
2,967 |
|
Net
interest income adjusted to FTE (non-GAAP) |
|
$ |
15,565 |
|
|
|
15,339 |
|
|
|
16,207 |
|
|
|
17,785 |
|
|
|
19,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
(non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses
(GAAP) |
|
$ |
12,804 |
|
|
$ |
12,784 |
|
|
$ |
13,425 |
|
|
$ |
12,857 |
|
|
$ |
12,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
|
14,901 |
|
|
|
14,639 |
|
|
|
15,482 |
|
|
|
17,025 |
|
|
|
18,327 |
|
Plus: taxable equivalent
adjustment |
|
|
664 |
|
|
|
700 |
|
|
|
725 |
|
|
|
760 |
|
|
|
700 |
|
Non-interest income
(GAAP) |
|
|
(1,944 |
) |
|
|
4,325 |
|
|
|
4,535 |
|
|
|
4,489 |
|
|
|
3,920 |
|
Less:
(Loss) gain on sales of securities |
|
|
(6,467 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
Net
interest income (FTE) plus adjusted non-interest income
(non-GAAP) |
|
$ |
20,089 |
|
|
$ |
19,664 |
|
|
$ |
20,742 |
|
|
$ |
22,275 |
|
|
$ |
22,947 |
|
Efficiency ratio (non-GAAP) (1) |
|
|
63.74 |
% |
|
|
65.01 |
% |
|
|
64.72 |
% |
|
|
57.72 |
% |
|
|
56.02 |
% |
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
per Share/Tangible Common Equity Ratio (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
$ |
2,503,159 |
|
|
$ |
2,476,820 |
|
|
$ |
2,441,232 |
|
|
$ |
2,443,021 |
|
|
$ |
2,378,372 |
|
Less:
Intangible assets, primarily goodwill |
|
|
(20,812 |
) |
|
|
(20,897 |
) |
|
|
(20,981 |
) |
|
|
(21,071 |
) |
|
|
(21,167 |
) |
Tangible assets |
|
|
2,482,347 |
|
|
|
2,455,923 |
|
|
|
2,420,251 |
|
|
|
2,421,950 |
|
|
|
2,357,205 |
|
Total shareholders' equity
(GAAP) |
|
|
189,479 |
|
|
|
165,432 |
|
|
|
177,744 |
|
|
|
175,887 |
|
|
|
162,950 |
|
Less:
Intangible assets, primarily goodwill |
|
|
(20,812 |
) |
|
|
(20,897 |
) |
|
|
(20,981 |
) |
|
|
(21,071 |
) |
|
|
(21,167 |
) |
Tangible common equity |
|
|
168,667 |
|
|
|
144,535 |
|
|
|
156,763 |
|
|
|
154,816 |
|
|
|
141,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding, end of period |
|
|
5,703,636 |
|
|
|
5,696,351 |
|
|
|
5,681,260 |
|
|
|
5,665,255 |
|
|
|
5,630,794 |
|
Tangible Common Book Value per Share |
|
$ |
29.57 |
|
|
$ |
25.37 |
|
|
$ |
27.59 |
|
|
$ |
27.33 |
|
|
$ |
25.18 |
|
Tangible Common Equity Ratio |
|
|
6.79 |
% |
|
|
5.89 |
% |
|
|
6.48 |
% |
|
|
6.39 |
% |
|
|
6.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue to Average Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
(GAAP) |
|
$ |
107 |
|
|
$ |
5,930 |
|
|
$ |
5,967 |
|
|
$ |
8,252 |
|
|
$ |
8,857 |
|
Plus:
Provision for credit losses |
|
|
47 |
|
|
|
250 |
|
|
|
625 |
|
|
|
405 |
|
|
|
536 |
|
Total pre-provision net
revenue (non-GAAP) |
|
|
154 |
|
|
|
6,180 |
|
|
|
6,592 |
|
|
|
8,657 |
|
|
|
9,393 |
|
Total (annualized)
(non-GAAP) |
|
$ |
609 |
|
|
$ |
24,517 |
|
|
$ |
26,440 |
|
|
$ |
35,110 |
|
|
$ |
37,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets |
|
$ |
2,405,086 |
|
|
$ |
2,408,336 |
|
|
$ |
2,407,600 |
|
|
$ |
2,399,264 |
|
|
$ |
2,392,614 |
|
Pre-Provision Net Revenue to Average Assets (non-GAAP) |
|
|
0.03 |
% |
|
|
1.02 |
% |
|
|
1.10 |
% |
|
|
1.46 |
% |
|
|
1.56 |
% |
|
FIDELITY D & D BANCORP, INC.Reconciliations of
Non-GAAP Financial Measures to GAAP |
|
Reconciliations of Non-GAAP Measures to GAAP |
|
Years ended |
|
(dollars in thousands) |
|
Dec. 31, 2023 |
|
|
Dec. 31, 2022 |
|
FTE net interest income (non-GAAP) |
|
|
|
|
|
|
|
|
Interest income (GAAP) |
|
$ |
93,835 |
|
|
$ |
78,672 |
|
Adjustment to FTE |
|
|
2,850 |
|
|
|
2,738 |
|
Interest income adjusted to
FTE (non-GAAP) |
|
|
96,685 |
|
|
|
81,410 |
|
Interest expense (GAAP) |
|
|
31,788 |
|
|
|
6,398 |
|
Net
interest income adjusted to FTE (non-GAAP) |
|
$ |
64,897 |
|
|
|
75,012 |
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
(non-GAAP) |
|
|
|
|
|
|
|
|
Non-interest expenses
(GAAP) |
|
$ |
51,870 |
|
|
$ |
51,361 |
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
|
62,047 |
|
|
|
72,274 |
|
Plus: taxable equivalent
adjustment |
|
|
2,850 |
|
|
|
2,738 |
|
Non-interest income
(GAAP) |
|
|
11,405 |
|
|
|
16,642 |
|
Less:
(Loss) gain on sales of securities |
|
|
(6,468 |
) |
|
|
4 |
|
Net
interest income (FTE) plus non-interest income (non-GAAP) |
|
$ |
82,770 |
|
|
$ |
91,650 |
|
Efficiency ratio (non-GAAP) (1) |
|
|
62.67 |
% |
|
|
56.04 |
% |
(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) |
|
$ |
20,256 |
|
|
$ |
35,468 |
|
Plus:
Provision for credit losses |
|
|
1,327 |
|
|
|
2,087 |
|
Total pre-provision net
revenue (non-GAAP) |
|
$ |
21,583 |
|
|
$ |
37,555 |
|
|
|
|
|
|
|
|
|
|
Average
assets |
|
$ |
2,405,096 |
|
|
$ |
2,401,922 |
|
Pre-Provision Net Revenue to Average Assets (non-GAAP) |
|
|
0.90 |
% |
|
|
1.56 |
% |
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