DUNMORE, Pa., April 29, 2015 /PRNewswire/ -- Fidelity D & D
Bancorp, Inc., (OTC Bulletin Board: FDBC), parent company of The
Fidelity Deposit and Discount Bank, announced net income for the
quarter ended March 31, 2015 of
$1.6 million, an improvement of
$0.1 million, or 8%, compared to
$1.5 million for the first quarter of
2014. Net interest income growth, along with a lower
provision for loan losses, more than offset the non-interest
expenses increase, when compared to the prior year first
quarter. Earnings per share on a diluted basis for the
quarter were $0.63 and $0.61 for the three months ended March 31, 2015 and 2014, respectively.
"Fidelity's strong first quarter financial results set the stage
for a successful 2015," stated Daniel J.
Santaniello, President and Chief Executive Officer.
"The growth in earnings and core deposits, strong mortgage loan
originations, and improved asset quality are the highlights for the
first quarter. I attribute the continued improvement to each
and every Fidelity Banker's commitment to provide value through a
customer-centric approach."
Net interest income increased $312
thousand, or 6%, to $5.6
million for the quarter ended March
31, 2015, from $5.3 million
recorded during the first quarter of 2014. Net interest
income earned was higher, despite the 19 basis point decline in
yield on interest earning assets outpacing the 7 basis point
savings on rates of interest-bearing liabilities. Additional
revenue from a $36 million and
$5 million larger average balance
loan and investment portfolio, respectively, pushed interest income
up by $302 thousand. The
Company also experienced lower interest costs, due primarily from a
$6 million lower debt level and the
continued lower repricing of certificates-of-deposits. This
more than offset the added interest expense from $33 million and $27
million growth in money market and interest-bearing checking
account balances, respectively, netting to an $11 thousand interest expense savings. Cost of
funds further declined 5 basis points from these interest savings
plus the $5 million growth in average
non-interest bearing deposits. The earning asset growth at lower
yields pressured spread lower, but was moderated by interest cost
savings, which reduced net interest margin by 15 basis points to
3.64% for the first quarter of 2015, compared to 3.79% for the same
2014 quarter.
A provision for loan losses of $150
thousand was recorded during the first quarter of 2015
compared to $300 thousand required
for the same 2014 period. The provision for loan losses funded the
allowance for loan losses for the loan growth experienced during
the quarter. Improved asset quality allowed for the overall
reduction in provision for loan losses compared to last year's
first quarter. The allowance for loan losses was 1.77% of
total loans at March 31, 2015
compared to the 1.84% of total loans at March 31, 2014.
Total other income recorded for the quarters ended March 31, 2015 and 2014 was $1.7 million. Revenue growth occurred with
a $101 thousand increase in gains
from loans sold, increases of $59
thousand from loan service charges, $53 thousand in fiduciary fees and $12 thousand net loan servicing fees recognized
during the first quarter of 2015, more than offset the $205 thousand fewer gains from the sale of
securities recognized compared to the first quarter of 2014.
Total other operating expense increased $302 thousand, or 6%, to $5.1 million from $4.8
million for the quarters ended March
31, 2015 and 2014, respectively. The other operating
expenses primarily increased from $177
thousand more salary and employee benefits plus increases of
$55 thousand from advertising and
marketing, $34 thousand in additional
foreclosed asset expenses, $24
thousand on added equipment depreciation and $20 thousand in professional expenses incurred
during the 2015 period.
The Company's assets increased $26.0
million to total $702.5
million at March 31, 2015
compared to $676.5 million of total
assets at December 31, 2014.
This asset growth resulted from $4.2
million added loans and leases and $28.6 million in securities; funded from
utilizing $6.9 million in cash plus
the $10.3 million increase in
interest-bearing deposits, $4.5
million additional non-interest-bearing deposits and
$9.8 million more short-term
borrowings with repurchase agreement customers, plus a $1.3 million increase in shareholders'
equity.
Fidelity D & D Bancorp, Inc. has built a strong history as
trusted advisors to the customers served by The Fidelity Deposit
and Discount Bank, and is proud to be an active member of the
community of Northeastern Pennsylvania. The Company serves
Lackawanna and Luzerne Counties through The Fidelity Deposit
and Discount Bank's 11 community banking office locations providing
personal and business banking products and services, including
wealth management assistance through fiduciary activities with the
Bank's full trust powers; as well as offering a full array of asset
management services. The Bank provides 24 hour, 7 day a week
service to customers through branch offices, online at
www.bankatfidelity.com, and through the Customer Care Center at
800-388-4380. 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 impact of new laws and regulations, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
and the regulations promulgated there under;
- impacts of the new 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 effect of changes in accounting policies and practices, as
may be adopted by banking 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 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;
- 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;
- volatility in the securities markets;
- 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.
FIDELITY D
& D BANCORP, INC.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(dollars in
thousands)
|
|
|
|
|
|
At Period
End:
|
March 31,
2015
|
December 31,
2014
|
Assets
|
|
|
|
|
Total
cash and cash equivalents
|
$
|
18,983
|
$
|
25,851
|
Investment securities
|
|
126,481
|
|
97,896
|
Federal
Home Loan Bank Stock
|
|
1,291
|
|
1,306
|
Loans
and leases
|
|
520,855
|
|
516,661
|
Allowance for loan losses
|
|
(9,208)
|
|
(9,173)
|
Premises
and equipment, net
|
|
14,931
|
|
14,846
|
Life
insurance cash surrender value
|
|
10,825
|
|
10,741
|
Other
assets
|
|
18,349
|
|
18,357
|
|
|
|
|
|
Total
assets
|
$
|
702,507
|
$
|
676,485
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Non-interest-bearing deposits
|
$
|
133,846
|
$
|
129,370
|
Interest-bearing deposits
|
|
467,896
|
|
457,574
|
Total
deposits
|
|
601,742
|
|
586,944
|
Short-term borrowings
|
|
13,773
|
|
3,969
|
Long-term debt
|
|
10,000
|
|
10,000
|
Other
liabilities
|
|
3,470
|
|
3,353
|
Total
liabilities
|
|
628,985
|
|
604,266
|
|
|
|
|
|
Shareholders' equity
|
|
73,522
|
|
72,219
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
702,507
|
$
|
676,485
|
|
|
|
|
|
|
|
|
|
|
Average
Year-To-Date Balances:
|
March 31,
2015
|
December 31,
2014
|
Assets
|
|
|
|
|
Total
cash and cash equivalents
|
$
|
38,192
|
$
|
22,857
|
Investment securities
|
|
109,588
|
|
109,166
|
Loans
and leases, net
|
|
507,185
|
|
486,552
|
Premises
and equipment, net
|
|
14,929
|
|
14,271
|
Other
assets
|
|
28,861
|
|
28,013
|
|
|
|
|
|
Total
assets
|
$
|
698,755
|
$
|
660,859
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Non-interest-bearing deposits
|
$
|
132,327
|
$
|
131,691
|
Interest-bearing deposits
|
|
463,849
|
|
425,517
|
Total
deposits
|
|
596,176
|
|
557,208
|
Short-term borrowings and long-term debt
|
|
25,794
|
|
29,949
|
Other
liabilities
|
|
3,811
|
|
4,075
|
Total
liabilities
|
|
625,781
|
|
591,232
|
|
|
|
|
|
Shareholders' equity
|
|
72,974
|
|
69,627
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
698,755
|
$
|
660,859
|
|
|
|
|
|
FIDELITY D & D
BANCORP, INC.
|
Unaudited Condensed
Consolidated Statements of Income
|
(dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Mar. 31,
2015
|
|
Mar. 31,
2014
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
|
$
|
5,638
|
$
|
5,407
|
|
|
|
|
|
|
Securities and other
|
|
666
|
|
595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest income
|
|
6,304
|
|
6,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
557
|
|
489
|
|
|
|
|
|
|
Borrowings and debt
|
|
140
|
|
218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest expense
|
|
697
|
|
707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
5,607
|
|
5,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
(150)
|
|
(300)
|
|
|
|
|
|
|
Other income
|
|
1,750
|
|
1,738
|
|
|
|
|
|
|
Other expenses
|
|
(5,087)
|
|
(4,785)
|
|
|
|
|
|
|
Provision for income taxes
|
|
(547)
|
|
(492)
|
|
|
|
|
|
|
Net
income
|
$
|
1,573
|
$
|
1,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Mar. 31,
2015
|
|
Dec. 31,
2014
|
|
Sep. 30,
2014
|
|
Jun. 30,
2014
|
|
Mar. 31,
2014
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
|
$
|
5,638
|
$
|
5,749
|
$
|
5,656
|
$
|
5,524
|
$
|
5,407
|
Securities and other
|
|
666
|
|
653
|
|
639
|
|
621
|
|
595
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest income
|
|
6,304
|
|
6,402
|
|
6,295
|
|
6,145
|
|
6,002
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
557
|
|
541
|
|
507
|
|
498
|
|
489
|
Borrowings and debt
|
|
140
|
|
218
|
|
223
|
|
223
|
|
218
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest expense
|
|
697
|
|
759
|
|
730
|
|
721
|
|
707
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
5,607
|
|
5,643
|
|
5,565
|
|
5,424
|
|
5,295
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
(150)
|
|
(250)
|
|
(210)
|
|
(300)
|
|
(300)
|
Other income
|
|
1,750
|
|
2,047
|
|
1,748
|
|
1,821
|
|
1,738
|
Other expenses
|
|
(5,087)
|
|
(5,247)
|
|
(4,910)
|
|
(4,761)
|
|
(4,785)
|
Provision for income taxes
|
|
(547)
|
|
(555)
|
|
(562)
|
|
(557)
|
|
(492)
|
Net
income
|
$
|
1,573
|
$
|
1,638
|
$
|
1,631
|
$
|
1,627
|
$
|
1,456
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY D
& D BANCORP, INC.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
At Period
End:
|
|
Mar. 31,
2015
|
|
Dec. 31,
2014
|
|
Sep. 30,
2014
|
|
Jun. 30,
2014
|
|
Mar. 31,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
$
|
18,983
|
$
|
25,851
|
$
|
19,685
|
$
|
14,439
|
$
|
32,099
|
Investment securities
|
|
126,481
|
|
97,896
|
|
114,425
|
|
102,699
|
|
102,213
|
Federal
Home Loan Bank Stock
|
|
1,291
|
|
1,306
|
|
2,282
|
|
2,954
|
|
2,176
|
Loans
and leases
|
|
520,855
|
|
516,661
|
|
503,453
|
|
497,133
|
|
484,015
|
Allowance for loan losses
|
|
(9,208)
|
|
(9,173)
|
|
(9,277)
|
|
(9,029)
|
|
(8,899)
|
Premises
and equipment, net
|
|
14,931
|
|
14,846
|
|
14,590
|
|
14,341
|
|
14,410
|
Life
insurance cash surrender value
|
|
10,825
|
|
10,741
|
|
10,654
|
|
10,569
|
|
10,485
|
Other
assets
|
|
18,349
|
|
18,357
|
|
18,073
|
|
17,200
|
|
17,930
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
702,507
|
$
|
676,485
|
$
|
673,885
|
$
|
650,306
|
$
|
654,429
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits
|
$
|
133,846
|
$
|
129,370
|
$
|
134,943
|
$
|
126,008
|
$
|
132,096
|
Interest-bearing deposits
|
|
467,896
|
|
457,574
|
|
436,925
|
|
412,495
|
|
422,670
|
Total
deposits
|
|
601,742
|
|
586,944
|
|
571,868
|
|
538,503
|
|
554,766
|
Short-term borrowings
|
|
13,773
|
|
3,969
|
|
11,225
|
|
21,872
|
|
12,327
|
Long-term debt
|
|
10,000
|
|
10,000
|
|
16,000
|
|
16,000
|
|
16,000
|
Other
liabilities
|
|
3,470
|
|
3,353
|
|
3,734
|
|
4,005
|
|
3,487
|
Total
liabilities
|
|
628,985
|
|
604,266
|
|
602,827
|
|
580,380
|
|
586,580
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
73,522
|
|
72,219
|
|
71,058
|
|
69,926
|
|
67,849
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
702,507
|
$
|
676,485
|
$
|
673,885
|
$
|
650,306
|
$
|
654,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly
Balances:
|
|
Mar. 31,
2015
|
|
Dec. 31,
2014
|
|
Sep. 30,
2014
|
|
Jun. 30,
2014
|
|
Mar. 31,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Total
cash and cash equivalents
|
$
|
38,192
|
$
|
31,377
|
$
|
15,766
|
$
|
19,461
|
$
|
24,831
|
Investment securities
|
|
109,588
|
|
115,934
|
|
111,335
|
|
106,034
|
|
103,197
|
Loans
and leases, net
|
|
507,185
|
|
500,985
|
|
490,712
|
|
482,406
|
|
471,738
|
Premises
and equipment, net
|
|
14,929
|
|
14,540
|
|
14,432
|
|
14,428
|
|
13,674
|
Other
assets
|
|
28,861
|
|
29,142
|
|
28,142
|
|
27,098
|
|
27,651
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
698,755
|
$
|
691,978
|
$
|
660,387
|
$
|
649,427
|
$
|
641,091
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits
|
$
|
132,327
|
$
|
138,644
|
$
|
131,201
|
$
|
129,069
|
$
|
127,736
|
Interest-bearing deposits
|
|
463,849
|
|
451,632
|
|
424,256
|
|
415,555
|
|
410,185
|
Total
deposits
|
|
596,176
|
|
590,276
|
|
555,457
|
|
544,624
|
|
537,921
|
Short-term borrowings and long-term debt
|
|
25,794
|
|
25,391
|
|
30,071
|
|
31,907
|
|
32,503
|
Other
liabilities
|
|
3,811
|
|
4,467
|
|
4,285
|
|
3,942
|
|
3,595
|
Total
liabilities
|
|
625,781
|
|
620,134
|
|
589,813
|
|
580,473
|
|
574,019
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
72,974
|
|
71,844
|
|
70,574
|
|
68,954
|
|
67,072
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
698,755
|
$
|
691,978
|
$
|
660,387
|
$
|
649,427
|
$
|
641,091
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY D & D
BANCORP, INC.
|
Selected Financial
Ratios and Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Mar. 31,
2015
|
|
Dec. 31,
2014
|
|
Sep. 30,
2014
|
|
Jun. 30,
2014
|
|
Mar. 31,
2014
|
Selected returns
and financial ratios
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
$
|
0.65
|
$
|
0.67
|
$
|
0.68
|
$
|
0.67
|
$
|
0.61
|
Diluted
earnings per share
|
$
|
0.63
|
$
|
0.67
|
$
|
0.67
|
$
|
0.67
|
$
|
0.61
|
Dividends per share
|
$
|
0.25
|
$
|
0.35
|
$
|
0.25
|
$
|
0.25
|
$
|
0.25
|
Yield on
interest-earning assets (FTE)
|
|
4.08%
|
|
4.12%
|
|
4.25%
|
|
4.27%
|
|
4.27%
|
Cost of
interest-bearing liabilities
|
|
0.58%
|
|
0.63%
|
|
0.64%
|
|
0.65%
|
|
0.65%
|
Net
interest spread
|
|
3.50%
|
|
3.49%
|
|
3.61%
|
|
3.62%
|
|
3.62%
|
Net
interest margin
|
|
3.64%
|
|
3.65%
|
|
3.78%
|
|
3.79%
|
|
3.79%
|
Return
on average assets
|
|
0.91%
|
|
0.94%
|
|
0.98%
|
|
1.01%
|
|
0.92%
|
Return
on average equity
|
|
8.74%
|
|
9.04%
|
|
9.17%
|
|
9.47%
|
|
8.80%
|
Efficiency ratio
|
|
66.86%
|
|
62.48%
|
|
64.92%
|
|
64.68%
|
|
67.89%
|
Expense
ratio
|
|
1.93%
|
|
1.74%
|
|
1.90%
|
|
1.87%
|
|
2.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial
data
|
|
Three Months
Ended
|
|
|
Mar. 31,
2015
|
|
Dec. 31,
2014
|
|
Sep. 30,
2014
|
|
Jun. 30,
2014
|
|
Mar. 31,
2014
|
Book
value per share
|
$
|
30.13
|
$
|
29.75
|
$
|
29.37
|
$
|
28.90
|
$
|
28.13
|
Equity
to assets
|
|
10.47%
|
|
10.68%
|
|
10.54%
|
|
10.75%
|
|
10.37%
|
Allowance for loan losses to:
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
1.77%
|
|
1.78%
|
|
1.84%
|
|
1.82%
|
|
1.84%
|
Non-accrual
loans
|
|
2.41x
|
|
2.18x
|
|
2.07x
|
|
2.22x
|
|
2.40x
|
Non-accrual loans to total loans
|
|
0.73%
|
|
0.82%
|
|
0.89%
|
|
0.82%
|
|
0.77%
|
Non-performing assets to total assets
|
|
1.15%
|
|
1.18%
|
|
1.09%
|
|
1.08%
|
|
1.07%
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fidelity-d--d-bancorp-inc-reports-first-quarter-2015-financial-results-300074579.html
SOURCE Fidelity D & D Bancorp, Inc.