DUNMORE, Pa., March 26, 2013 /PRNewswire/ -- Fidelity D
& D Bancorp, Inc. (OTC Bulletin Board: FDBC), parent company of
The Fidelity Deposit and Discount Bank, reported today that
information became available in 2013 that confirmed the collateral
value of an impaired commercial real estate loan was
overestimated. Based on this information, the Company revised
the collateral valuation estimate used in its impairment analysis
as of December 31, 2012. These
developments occurred after year-end but before the financial
statements are available for issuance. Therefore, the
Company's previously reported 2012 fourth quarter and full year
financial results have been updated, following GAAP, to reflect
additional loan loss reserve requirements from the reduction in the
estimated collateral value.
"We are pleased with the 2012 financial results. In spite
of the challenging economic environment, the Company reported a
significant increase in revenue when compared to the previous
year," stated Daniel J. Santaniello,
President and Chief Executive Officer. "This update to our
2012 financial results is reflective of the Board of Director's and
Management's commitment to maintain a disciplined and transparent
business practices."
The Company has updated its previously reported 2012 fourth
quarter and full year financial results to provide an additional
$0.6 million provision for loan
losses to increase the allowance for loan losses to the requisite
level. Therefore, updated 2012 fourth quarter and full year
earnings were reduced to $0.9 million
and $4.9 million, respectively, or
$0.40 per share and $2.14 per share, respectively. Whereas previously
reported 2012 fourth quarter and full-year earnings were
$1.3 million and $5.3 million, respectively, or $.58 per share and $2.32 per share, respectively.
The updated provision for loan losses was $1.3 million for the fourth quarter of 2012
compared to the $450 thousand
required for the fourth quarter of 2011. The updated
provision for loan losses was $3.3
million for the 2012 year, compared to $1.8 million required in 2011. The adjusted
allowance for loan losses is 2.02% of total loans at December 31, 2012, up now from 1.97% at
December 31, 2011.
Reflecting this adjustment, the Company's assets totaled
$601.5 million at December 31, 2012, down from $606.7 million at December
31, 2011. Shareholders' equity grew $5.3 million, or 10%. The Bank's regulatory
capital ratios for the period ending December 31, 2012 were Total Risk Based Capital
Ratio of 13.5%, Tier I Capital Ratio of 12.2% and Leverage Ratio of
9.6%, all of which exceed the current "well capitalized" regulatory
requirements. The impact of this change did not have a
significant effect on the Bank's capital ratios.
The updated financial results will be reflected in the Company's
Annual Report on Form 10-K, and are included in the following
selected financial highlights.
Financial Highlights
Select Financial Information:
Unaudited Balance Sheet Summary
|
As
Reported
|
As
Updated
|
(dollars
in thousands)
|
December 31, 2012
|
December 31, 2012
|
Assets
|
|
|
Loans and leases
|
$
444,101
|
$
444,101
|
Allowance for loan losses
|
(8,372)
|
(8,972)
|
Other assets
|
16,800
|
17,004
|
|
|
|
Total
assets
|
$
601,921
|
$
601,525
|
|
|
|
Shareholders' equity
|
$
59,342
|
$
58,946
|
|
|
|
Total liabilities
and shareholders' equity
|
$
601,921
|
$
601,525
|
|
|
|
Unaudited Income Summary
|
|
|
|
|
|
(dollars
in thousands)
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
As
Reported
|
As
Updated
|
|
As
Reported
|
As
Updated
|
|
Dec.
31, 2012
|
Dec.
31, 2012
|
|
Dec.
31, 2012
|
Dec.
31, 2012
|
Provision for loan
losses
|
$
650
|
$
1,250
|
|
$
2,650
|
$
3,250
|
Provision for income
taxes
|
452
|
248
|
|
1,763
|
1,559
|
Net
income
|
$
1,325
|
$
929
|
|
$
5,298
|
$
4,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Financial Ratios and Other
Data
|
|
|
|
|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
As
Reported
|
As
Updated
|
|
As
Reported
|
As
Updated
|
|
Dec.
31, 2012
|
Dec.
31, 2012
|
|
Dec.
31, 2012
|
Dec.
31, 2012
|
Selected returns and financial
ratios
|
|
|
|
|
|
Diluted earnings per share
|
$
0.58
|
$
0.40
|
|
$
2.32
|
$
2.14
|
Return on average assets
|
0.88%
|
0.61%
|
|
0.87%
|
0.81%
|
Return on average equity
|
8.90%
|
6.24%
|
|
9.31%
|
8.62%
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
As
Reported
|
As
Updated
|
|
|
|
|
Dec.
31, 2012
|
Dec.
31, 2012
|
|
|
|
Book value per share
|
$
25.54
|
$
25.37
|
|
|
|
Equity to assets
|
9.86%
|
9.80%
|
|
|
|
Allowance for loan losses to:
|
|
|
|
|
|
Total loans
|
1.89%
|
2.02%
|
|
|
|
Non-accrual
loans
|
0.69x
|
0.74x
|
|
|
|
Non-performing assets to total
assets
|
2.94%
|
2.94%
|
|
|
|
Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit
and Discount Bank's 11 community banking office locations.
The Bank's deposits are insured by the Federal Deposit Insurance
Corporation up to the full extent permitted by law.
Forward-Looking Statements
Certain of the matters discussed in this press release may
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:
- the effects of economic deterioration on current customers,
specifically the effect of the economy on loan customers' ability
to repay loans;
- the costs and effects of litigation and of unexpected or
adverse outcomes in such litigation;
- the effects of new laws and regulations, specifically the
impact of the Dodd-Frank Wall Street Reform and Consumer Protection
Act;
- governmental monetary and fiscal policies, as well as
legislative and regulatory changes;
- 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 risks of changes in 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;
- 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 the Company's 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;
- technological changes;
- acquisitions and integration of acquired businesses;
- the failure of assumptions underlying the establishment of
reserves for loan and lease losses and estimations of values of
collateral and various financial assets and liabilities;
- volatilities in the securities markets;
- deteriorating economic conditions;
- acts of war or terrorism; and
- disruption of credit and equity markets.
For more information please visit our investor relations web
site located through www.bankatfidelity.com
SOURCE Fidelity D & D Bancorp, Inc.