Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking
subsidiary, The Fidelity Deposit and Discount Bank, announced its
most recent dividend declaration and unaudited, consolidated
financial results for the three and six month periods ended June
30, 2021.
Dividend Declared
The Board of Directors of Fidelity D & D Bancorp, Inc. (the
“Company”) announced their declaration of the Company’s third
quarter dividend of $0.30 per share to shareholders of record at
the close of business on August 20, 2021, payable September 10,
2021.
Unaudited Financial Information
Net income for the three months ended June 30, 2021 was $5.7
million, or $1.13 diluted earnings per share, compared to $0.3
million, or $0.05 diluted earnings per share, for the three months
ended June 30, 2020. The $5.4 million improvement in net income
resulted from a $2.5 million increase in net interest income, $1.9
million in additional non-interest income, a reduction of $1.6
million in the provision for loan losses and $0.5 million lower
non-interest expenses. The merger with MNB Corporation (“MNB”)
occurred during the second quarter of 2020 and resulted in $1.9
million in merger-related expenses during that quarter.
Additionally, the earnings during the second quarter of 2020 were
adversely impacted by the beginning of the COVID-19 pandemic. With
the pandemic restrictions lifted during 2021, the Company was able
to experience the positive effects of the combined balance sheet
post-merger. Second quarter diluted earnings per share increased by
$1.08 per share due to the higher net income.
Excluding merger-related expenses, adjusted net income was $6.1
million for the second quarter of 2021, or $1.21 diluted earnings
per share, compared to adjusted net income of $2.2 million, or
$0.48 diluted earnings per share, for the second quarter of 2020.
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.
“With the posting of the second quarter financial results, we
are very pleased to announce record quarterly net income and
earnings per share,” stated Daniel J. Santaniello, President and
Chief Executive Officer. “The continued growth in loans, deposits,
and non-interest income, while effectively managing expenses,
reflect the Fidelity Bankers’ commitment to building relationships
and partnering with our clients to achieve mutual financial
success. Fidelity Bank’s growth strategy is currently focused
on executing the planned 3rd quarter integration of
the Landmark Community Bank clients, branch offices, and core
operating systems. It is our belief that the addition
of the Landmark Bankers, clients and expanded
market presence will provide long-term shareholder
value.”
Landmark
As previously announced, the Company acquired Landmark Bancorp,
Inc. (“Landmark”) and its wholly-owned subsidiary Landmark
Community Bank effective July 1, 2021. With the combination of the
two organizations, the Company, on a consolidated basis, has
approximately $2.3 billion in assets, $2.1 billion in deposits, and
$1.4 billion in loans. The reported results are preliminary and are
subject to revision in future periods when the application of the
accounting guidance for business combinations is finalized.
Merger-related costs related to the acquisition of Landmark totaled
$0.9 million on a gross basis year-to-date through June 30,
2021.
Paycheck Protection Program
As of June 30, 2021, the Company has processed 2,573
applications totaling over $236 million in loans through the Small
Business Administration’s (“SBA”) Paycheck Protection Program
(“PPP”) proving the Company’s commitment to support small
businesses within its service area, with 1,551 applications
totaling over $159 million processed during the first round of PPP,
which ended on August 8, 2020, and 1,022 applications totaling over
$77 million processed during the second round of PPP, which ended
on May 31, 2021.
As of June 30, 2021, the outstanding PPP loan balances totaled
$97.6 million. Total PPP loans generated approximately $9.4 million
of SBA processing fees, net of origination expenses, of which $5.9
million was earned to date with $1.1 million and $2.8 million
recognized during the three and six months ended June 30, 2021. The
$3.5 million remaining balance is expected to continue to be earned
over the remaining life of the loans; however, the fees may be
recognized earlier upon loan forgiveness by the SBA or if paid off
by the borrower.
Consolidated Second Quarter Operating Results
Overview
Net interest income was $13.3 million for the second quarter of
2021, a 23% increase over the $10.8 million earned for the second
quarter of 2020. The $2.5 million improvement in net interest
income resulted primarily from a $457.3 million increase in the
average balance of interest-earning assets which offset the
declining yields on these assets supplemented by lower interest
expense from a decrease in rates paid on interest-bearing
liabilities. The loan portfolio had the biggest impact, producing a
$1.2 million increase in interest income from $126.1 million in
higher average balances. Higher interest income in the commercial
portfolio was the driver with $111.8 million in larger average
balances adding $1.4 million, which included $0.3 million from
additional SBA fees recognized during the second quarter of 2021
versus the 2020 period, attributable to PPP loans. The growth in
interest income on commercial loans offset lower interest income in
the consumer and residential portfolios. Interest income from the
investment portfolio increased $0.7 million as $247.4 million in
increased average balances offset lower yields. Interest expense
was $0.6 million lower due to decreases in deposit rates and a
lower average balance of borrowings. The average balance of
interest-bearing deposits increased $353.0 million and the rates
paid on these deposits decreased 27 basis points resulting in $0.4
million less in interest expense. During the second quarter of
2020, the Company obtained an extension of credit under the
Paycheck Protection Program Liquidity Facility (PPPLF) to fund
originated PPP loans and also had FHLB advances. During the second
quarter of 2021, the Company did not require any borrowings due to
the growth in deposits which reduced interest expense on borrowings
by $0.2 million.
The overall cost of interest-bearing liabilities was 0.27% for
the second quarter of 2021, a decrease of 30 basis points from the
0.57% paid for the second quarter of 2020. The cost of funds
decreased 22 basis points to 0.20% for the second quarter of 2021
from 0.42% for the second quarter of 2020. The Company’s
fully-taxable equivalent (“FTE”) (non-GAAP measurement) net
interest spread was 3.02% for the second quarter of 2021, or 18
basis points lower than the 3.20% recorded for the second quarter
of 2020. FTE net interest margin decreased by 24 basis points to
3.10% for the three months ended June 30, 2021 from 3.34% for the
same 2020 period.
The provision for loan losses was $0.3 million for the second
quarter of 2021, a $1.6 million decrease compared to $1.9 million
for the second quarter of 2020. The decrease in the provision
compared to the quarter ended June 30, 2020 was attributed to the
COVID-19-related provisioning that occurred during the second
quarter of 2020. This amount of provisioning reflected what
management deemed necessary to maintain the allowance for loan and
lease losses at an adequate level.
Total non-interest income increased $1.9 million, or 69%, to
$4.6 million for the second quarter of 2021 compared to $2.7
million for the second quarter of 2020. The increase in
non-interest income was primarily due to $0.7 million higher gains
on loan sales during the second quarter of 2021 compared to the
same 2020 period due to increased mortgage loan activity. The
Company also recognized $0.5 million higher interchange fees, $0.2
million more in loan fees, $0.2 million in additional service
charges on deposits and $0.1 million growth in trust fiduciary
fees.
Non-interest expenses decreased $0.5 million, or 4%, for the
second quarter of 2021 to $10.8 million from $11.3 million for the
same quarter of 2020. The main reason for the decrease was $1.5
million less in merger-related expenses due to the timing of the
MNB acquisition compared to the Landmark acquisition. There was
also a $0.5 million FHLB prepayment penalty incurred during the
second quarter of 2020 from the early payoff of a FHLB advance.
Additionally, data processing and communications expense decreased
by $0.2 million. Partially offsetting these decreases was a $0.7
million increase in salaries and employee benefits due to an
increase in the number of bankers post-merger with MNB. The Company
also experienced increases of $0.2 million in premises and
equipment expenses, $0.2 million in professional services expenses
and $0.1 million in automated transaction processing.
The provision for income taxes increased $1.0 million during the
second quarter of 2021 due to higher income before income taxes
compared to the second quarter of 2020.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $26.8 million for the six months ended
June 30, 2021 compared to $18.8 million for the six months ended
June 30, 2020. The $8.0 million, or 42%, improvement was the result
of earnings from a larger average balance of interest-earning
assets combined with lower interest expense from a decrease in
rates paid on interest-bearing liabilities. The loan portfolio
drove the increased interest income which grew $5.3 million from
higher average balances due primarily to commercial loan activity
from commercial real estate and PPP lending. The higher interest
income included $2.0 million from additional SBA fees recognized
during the first half of 2021 attributable to PPP loans. Interest
income from investments increased $1.2 million from a $235.4
million larger average balance in the portfolio. On the funding
side, interest expense decreased by $1.4 million due to lower rates
paid on interest-bearing deposits and a smaller balance of average
borrowings. FTE net interest spread was 3.15% for the first half of
2021, or six basis points lower than the 3.21% recorded for the
first half of 2020. Over the same time period, the Company’s FTE
net interest margin decreased by 15 basis points to 3.24% from
3.39%.
For the six months ended June 30, 2021, the provision for loan
losses was $1.1 million compared to $2.2 million for the same 2020
period. The $1.1 million decrease in the provision was attributed
to the COVID-19-related provisioning that occurred during the six
months ended June 30, 2020 which was not similarly warranted during
the six months ended June 30, 2021. This amount of provisioning
reflected what management deemed necessary to maintain the
allowance for loan and lease losses at an adequate level.
Total non-interest income for the six months ended June 30, 2021
was $10.1 million, an increase of $4.6 million, or 85%, from $5.5
million for the six months ended June 30, 2020. The increase in
other income was primarily due to $2.8 million more in gains on
loan sales and $0.9 million higher interchange fees. Other
increases that contributed to the non-interest income growth were
as follows: $0.3 million in loan service fees, $0.2 million in
earnings on bank-owned life insurance, $0.2 million in trust
fiduciary fees and $0.2 million in service charges on deposits.
Non-interest expenses increased to $22.3 million for the six
months ended June 30, 2021, an increase of $3.7 million, or 20%,
from $18.6 million for the six months ended June 30, 2020. The
largest driver of this increase was a $2.6 million increase in
salaries and employee benefit expenses. In addition, there was $0.7
million more premises and equipment expenses, $0.7 million higher
professional services and $0.5 million more in advertising and
marketing expenses. These increases were partially offset by $1.3
million less merger-related expenses recognized for the first half
of 2021 as the majority of the merger-related expenses for the
Landmark acquisition will be incurred during the second half of
2021.
The provision for income taxes increased $1.5 million during
first half of 2021 compared to the same 2020 period due to the
higher income before taxes.
Consolidated Balance Sheet & Asset Quality
Overview
During the first half of 2021, the Company’s total assets
increased $250 million, or 15%, to $1.9 billion as of June 30, 2021
from $1.7 billion at December 31, 2020. During the same time
period, total liabilities increased $244 million, or 16%, from $1.5
billion to $1.8 billion. Deposit growth of $248 million was used to
pay down borrowings, purchase securities and fund loan portfolio
growth. The deposit growth includes increases in personal, public
and business accounts, some of which are associated with
government-provided funding programs in response to the pandemic
and this funding may be temporary.
Total non-performing assets were $6.0 million, or 0.31% of total
assets, at June 30, 2021, compared to $6.7 million, or 0.39% of
total assets, at December 31, 2020. Past due and non-accrual loans
to total loans were 0.72% at June 30, 2021 compared to 0.47% at
December 31, 2020. Net charge-offs to average total loans decreased
to 0.03% at June 30, 2021 compared 0.06% at June 30, 2020 and
declining from 0.08% at December 31, 2020.
Shareholders’ equity increased $5.5 million, or 3%, to $172.2
million at June 30, 2021 from $166.7 million at December 31, 2020.
The increase was primarily caused by $11.4 million in net income
partially offset by $3.0 million in cash dividends paid to
shareholders resulting in a net increase to retained earnings. The
net increase in retained earnings partially offset the $3.6
million, after tax, reduction in net unrealized gains from the
investment portfolio stemming from the substantial increase in
intermediate to long-term U.S. treasury interest rates. An
additional $0.5 million recorded from the issuance of common stock
under the Company’s stock plans and stock-based compensation also
contributed to the increase in shareholders' equity. The Company
remains well capitalized and is positioned for continued growth
with Tier 1 capital at 8.38% of total average assets as of June 30,
2021. Tangible book value per share was $32.74 at June 30, 2021
compared to $31.72 at December 31, 2020.
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 operates
20 full-service offices throughout Lackawanna, Luzerne and
Northampton Counties, along with the Fidelity Bank Wealth
Management Minersville Office in Schuylkill County. Fidelity Bank
provides a digital and virtual experience via online banking and
mobile app, digital services, and digital account opening.
Additionally, Fidelity Bank offers full-service Trust &
Investment Departments, 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 nearly 1,400 hours of volunteer
time and over $1.3 million in donations to non-profit organizations
directly within the markets served throughout 2020. The Company
continues its mission of exceeding client expectations through a
unique banking experience, providing 24 hour, 7 days a week service
to clients through branch offices, online at
www.bankatfidelity.com, and through the Customer Care Center at
800-388-4380. The Company'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 used 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 GAAP to non-GAAP operating measures to the most directly
comparable GAAP financial measures are included in the tables at
the end of this release.
Management believes merger-related expenses are not standard
costs necessary for operations. These charges principally represent
professional fees and system conversion and integration costs
related to the transaction. These costs are specific to each
individual transaction and may vary significantly based on the size
and complexity of the transaction. Management also believes the
FHLB prepayment fee incurred to payoff FHLB advances is
non-recurring and should be excluded from normal operating expenses
for proper comparison.
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
2021 and 2020.
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:
- the effects of economic conditions
particularly with regard to the negative impact of severe,
wide-ranging and continuing disruptions caused by the spread of
Coronavirus Disease 2019 (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;
- acquisitions and integration of
acquired businesses, including but not limited to, the recent
acquisition of MNB Corporation (“MNB”) and its wholly-owned bank
subsidiary, and Landmark and its wholly-owned bank subsidiary;
- 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 the Tax Cuts and Jobs Act
and Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010 and the regulations promulgated there under;
- 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 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 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;
- the interruption or breach in
security of our information systems 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;
- volatilities in the securities
markets;
- acts of war or terrorism;
- disruption of credit and equity
markets; and
- the risk that
our analyses of these risks and forces could be incorrect and/or
that the strategies developed to address them could be
unsuccessful.
The Company cautions readers not to place undue reliance on
forward-looking statements, which reflect analyses only as of the
date of this release. The Company has no obligation to update any
forward-looking statements to reflect events or circumstances after
the date of this release.
For more information please visit our investor relations
web site located through www.bankatfidelity.com.
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Balance Sheets(dollars in thousands) |
|
|
|
|
|
|
At Period End: |
June 30, 2021 |
|
December 31, 2020 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
170,064 |
|
$ |
69,346 |
|
Investment securities |
|
554,955 |
|
|
392,420 |
|
Restricted investments in bank stock |
|
3,231 |
|
|
2,813 |
|
Loans and leases |
|
1,134,158 |
|
|
1,149,438 |
|
Allowance for loan losses |
|
(15,245 |
) |
|
(14,202 |
) |
Premises and equipment, net |
|
27,615 |
|
|
27,626 |
|
Life insurance cash surrender value |
|
44,858 |
|
|
44,285 |
|
Goodwill and core deposit intangible |
|
8,613 |
|
|
8,787 |
|
Other assets |
|
20,984 |
|
|
18,997 |
|
|
|
|
|
|
Total assets |
$ |
1,949,233 |
|
$ |
1,699,510 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest-bearing deposits |
$ |
491,051 |
|
$ |
407,496 |
|
Interest-bearing deposits |
|
1,266,609 |
|
|
1,102,009 |
|
Total deposits |
|
1,757,660 |
|
|
1,509,505 |
|
FHLB advances |
|
- |
|
|
5,000 |
|
Other liabilities |
|
19,388 |
|
|
18,335 |
|
Total liabilities |
|
1,777,048 |
|
|
1,532,840 |
|
|
|
|
|
|
Shareholders' equity |
|
172,185 |
|
|
166,670 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,949,233 |
|
$ |
1,699,510 |
|
|
|
|
|
|
|
|
|
|
|
Average Year-To-Date Balances: |
June 30, 2021 |
|
December 31, 2020 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
142,102 |
|
$ |
126,155 |
|
Investment securities |
|
452,232 |
|
|
280,983 |
|
Restricted investments in bank stock |
|
3,022 |
|
|
3,044 |
|
Loans and leases |
|
1,156,166 |
|
|
1,019,373 |
|
Allowance for loan losses |
|
(14,894 |
) |
|
(11,277 |
) |
Premises and equipment, net |
|
27,121 |
|
|
25,433 |
|
Life insurance cash surrender value |
|
44,615 |
|
|
29,912 |
|
Goodwill and core deposit intangible |
|
8,697 |
|
|
5,316 |
|
Other assets |
|
21,434 |
|
|
16,726 |
|
|
|
|
|
|
Total assets |
$ |
1,840,495 |
|
$ |
1,495,665 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest-bearing deposits |
$ |
451,354 |
|
$ |
340,211 |
|
Interest-bearing deposits |
|
1,200,870 |
|
|
933,981 |
|
Total deposits |
|
1,652,224 |
|
|
1,274,192 |
|
Short-term borrowings |
|
161 |
|
|
49,165 |
|
FHLB advances |
|
1,685 |
|
|
10,608 |
|
Other liabilities |
|
18,985 |
|
|
17,765 |
|
Total liabilities |
|
1,673,055 |
|
|
1,351,730 |
|
|
|
|
|
|
Shareholders' equity |
|
167,440 |
|
|
143,935 |
|
Total liabilities and shareholders' equity |
$ |
1,840,495 |
|
$ |
1,495,665 |
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Statements of Income(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
Jun. 30, 2021 |
|
|
Jun. 30, 2020 |
|
|
Jun. 30, 2021 |
|
|
Jun. 30, 2020 |
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
11,950 |
|
$ |
10,772 |
|
$ |
24,458 |
|
$ |
19,131 |
|
|
|
Securities and other |
|
2,217 |
|
|
1,478 |
|
|
4,049 |
|
|
2,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
14,167 |
|
|
12,250 |
|
|
28,507 |
|
|
21,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
841 |
|
|
1,195 |
|
|
1,705 |
|
|
2,711 |
|
|
|
Borrowings and debt |
|
- |
|
|
234 |
|
|
26 |
|
|
423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
841 |
|
|
1,429 |
|
|
1,731 |
|
|
3,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
13,326 |
|
|
10,821 |
|
|
26,776 |
|
|
18,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(300 |
) |
|
(1,900 |
) |
|
(1,100 |
) |
|
(2,200 |
) |
|
|
Non-interest income |
|
4,577 |
|
|
2,708 |
|
|
10,093 |
|
|
5,463 |
|
|
|
Non-interest expense |
|
(10,851 |
) |
|
(11,311 |
) |
|
(22,307 |
) |
|
(18,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
6,752 |
|
|
318 |
|
|
13,462 |
|
|
3,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(1,056 |
) |
|
(66 |
) |
|
(2,099 |
) |
|
(589 |
) |
|
|
Net income |
$ |
5,696 |
|
$ |
252 |
|
$ |
11,363 |
|
$ |
2,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
|
Jun. 30, 2020 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
11,950 |
|
$ |
12,508 |
|
$ |
12,115 |
|
$ |
11,994 |
|
$ |
10,772 |
|
Securities and other |
|
2,217 |
|
|
1,832 |
|
|
1,720 |
|
|
1,705 |
|
|
1,478 |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
14,167 |
|
|
14,340 |
|
|
13,835 |
|
|
13,699 |
|
|
12,250 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
841 |
|
|
864 |
|
|
975 |
|
|
1,070 |
|
|
1,195 |
|
Borrowings and debt |
|
- |
|
|
26 |
|
|
39 |
|
|
93 |
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
841 |
|
|
890 |
|
|
1,014 |
|
|
1,163 |
|
|
1,429 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
13,326 |
|
|
13,450 |
|
|
12,821 |
|
|
12,536 |
|
|
10,821 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(300 |
) |
|
(800 |
) |
|
(1,550 |
) |
|
(1,500 |
) |
|
(1,900 |
) |
Non-interest income |
|
4,577 |
|
|
5,516 |
|
|
4,835 |
|
|
4,370 |
|
|
2,708 |
|
Non-interest expense |
|
(10,851 |
) |
|
(11,456 |
) |
|
(10,230 |
) |
|
(9,474 |
) |
|
(11,311 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
6,752 |
|
|
6,710 |
|
|
5,876 |
|
|
5,932 |
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(1,056 |
) |
|
(1,043 |
) |
|
(704 |
) |
|
(955 |
) |
|
(66 |
) |
Net income |
$ |
5,696 |
|
$ |
5,667 |
|
$ |
5,172 |
|
$ |
4,977 |
|
$ |
252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Balance Sheets(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
At Period End: |
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
|
Jun. 30, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
170,064 |
|
$ |
222,953 |
|
$ |
69,346 |
|
$ |
131,778 |
|
$ |
264,798 |
|
Investment securities |
|
554,955 |
|
|
436,622 |
|
|
392,420 |
|
|
340,310 |
|
|
293,073 |
|
Restricted investments in bank stock |
|
3,231 |
|
|
2,931 |
|
|
2,813 |
|
|
2,766 |
|
|
3,065 |
|
Loans and leases |
|
1,134,158 |
|
|
1,153,160 |
|
|
1,149,438 |
|
|
1,151,010 |
|
|
1,141,692 |
|
Allowance for loan losses |
|
(15,245 |
) |
|
(14,839 |
) |
|
(14,202 |
) |
|
(12,884 |
) |
|
(11,671 |
) |
Premises and equipment, net |
|
27,615 |
|
|
27,275 |
|
|
27,626 |
|
|
28,411 |
|
|
28,479 |
|
Life insurance cash surrender value |
|
44,858 |
|
|
44,582 |
|
|
44,285 |
|
|
33,068 |
|
|
32,852 |
|
Goodwill and core deposit intangible |
|
8,613 |
|
|
8,697 |
|
|
8,787 |
|
|
8,877 |
|
|
8,967 |
|
Other assets |
|
20,984 |
|
|
31,711 |
|
|
18,997 |
|
|
27,707 |
|
|
40,275 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,949,233 |
|
$ |
1,913,092 |
|
$ |
1,699,510 |
|
$ |
1,711,043 |
|
$ |
1,801,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
491,051 |
|
$ |
518,352 |
|
$ |
407,496 |
|
$ |
408,840 |
|
$ |
414,918 |
|
Interest-bearing deposits |
|
1,266,609 |
|
|
1,204,548 |
|
|
1,102,009 |
|
|
1,108,283 |
|
|
1,018,771 |
|
Total deposits |
|
1,757,660 |
|
|
1,722,900 |
|
|
1,509,505 |
|
|
1,517,123 |
|
|
1,433,689 |
|
Short-term borrowings |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
152,791 |
|
FHLB advances |
|
- |
|
|
- |
|
|
5,000 |
|
|
5,000 |
|
|
5,000 |
|
Other liabilities |
|
19,388 |
|
|
26,610 |
|
|
18,335 |
|
|
27,309 |
|
|
52,890 |
|
Total liabilities |
|
1,777,048 |
|
|
1,749,510 |
|
|
1,532,840 |
|
|
1,549,432 |
|
|
1,644,370 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
172,185 |
|
|
163,582 |
|
|
166,670 |
|
|
161,611 |
|
|
157,160 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,949,233 |
|
$ |
1,913,092 |
|
$ |
1,699,510 |
|
$ |
1,711,043 |
|
$ |
1,801,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances: |
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
|
Jun. 30, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
171,968 |
|
$ |
111,904 |
|
$ |
116,964 |
|
$ |
180,030 |
|
$ |
184,692 |
|
Investment securities |
|
489,424 |
|
|
414,626 |
|
|
363,728 |
|
|
322,875 |
|
|
246,879 |
|
Restricted investments in bank stock |
|
3,152 |
|
|
2,891 |
|
|
2,826 |
|
|
2,763 |
|
|
3,159 |
|
Loans and leases |
|
1,150,286 |
|
|
1,162,112 |
|
|
1,150,652 |
|
|
1,143,590 |
|
|
1,024,234 |
|
Allowance for loan losses |
|
(15,285 |
) |
|
(14,500 |
) |
|
(13,085 |
) |
|
(11,814 |
) |
|
(10,222 |
) |
Premises and equipment, net |
|
27,040 |
|
|
27,203 |
|
|
27,671 |
|
|
27,502 |
|
|
25,507 |
|
Life insurance cash surrender value |
|
44,751 |
|
|
44,478 |
|
|
33,512 |
|
|
32,978 |
|
|
29,716 |
|
Goodwill and core deposit intangible |
|
8,648 |
|
|
8,746 |
|
|
8,837 |
|
|
8,926 |
|
|
3,124 |
|
Other assets |
|
21,055 |
|
|
21,819 |
|
|
17,059 |
|
|
18,682 |
|
|
17,462 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,901,039 |
|
$ |
1,779,279 |
|
$ |
1,708,164 |
|
$ |
1,725,532 |
|
$ |
1,524,551 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
464,818 |
|
$ |
437,740 |
|
$ |
408,623 |
|
$ |
407,605 |
|
$ |
348,275 |
|
Interest-bearing deposits |
|
1,249,347 |
|
|
1,151,855 |
|
|
1,111,291 |
|
|
1,055,183 |
|
|
896,304 |
|
Total deposits |
|
1,714,165 |
|
|
1,589,595 |
|
|
1,519,914 |
|
|
1,462,788 |
|
|
1,244,579 |
|
Short-term borrowings |
|
177 |
|
|
144 |
|
|
- |
|
|
78,056 |
|
|
102,652 |
|
FHLB advances |
|
- |
|
|
3,389 |
|
|
5,000 |
|
|
5,000 |
|
|
17,555 |
|
Other liabilities |
|
19,026 |
|
|
18,944 |
|
|
19,051 |
|
|
19,462 |
|
|
17,624 |
|
Total liabilities |
|
1,733,368 |
|
|
1,612,072 |
|
|
1,543,965 |
|
|
1,565,306 |
|
|
1,382,410 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
167,671 |
|
|
167,207 |
|
|
164,199 |
|
|
160,226 |
|
|
142,141 |
|
Total liabilities and shareholders' equity |
$ |
1,901,039 |
|
$ |
1,779,279 |
|
$ |
1,708,164 |
|
$ |
1,725,532 |
|
$ |
1,524,551 |
|
|
FIDELITY D & D BANCORP, INC.Selected Financial
Ratios and Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
|
Jun. 30, 2020 |
|
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.14 |
|
$ |
1.14 |
|
$ |
1.04 |
|
$ |
1.00 |
|
$ |
0.05 |
|
Diluted earnings per share |
$ |
1.13 |
|
$ |
1.13 |
|
$ |
1.03 |
|
$ |
0.99 |
|
$ |
0.05 |
|
Dividends per share |
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.28 |
|
$ |
0.28 |
|
Yield on interest-earning assets (FTE)* |
|
3.29 |
% |
|
3.61 |
% |
|
3.53 |
% |
|
3.49 |
% |
|
3.77 |
% |
Cost of interest-bearing liabilities |
|
0.27 |
% |
|
0.31 |
% |
|
0.36 |
% |
|
0.41 |
% |
|
0.57 |
% |
Cost of funds |
|
0.20 |
% |
|
0.23 |
% |
|
0.26 |
% |
|
0.30 |
% |
|
0.42 |
% |
Net interest spread (FTE)* |
|
3.02 |
% |
|
3.30 |
% |
|
3.17 |
% |
|
3.08 |
% |
|
3.20 |
% |
Net interest margin (FTE)* |
|
3.10 |
% |
|
3.39 |
% |
|
3.28 |
% |
|
3.20 |
% |
|
3.34 |
% |
Return on average assets |
|
1.20 |
% |
|
1.29 |
% |
|
1.20 |
% |
|
1.15 |
% |
|
0.07 |
% |
Return on average equity |
|
13.63 |
% |
|
13.75 |
% |
|
12.53 |
% |
|
12.36 |
% |
|
0.71 |
% |
Return on average tangible equity* |
|
14.37 |
% |
|
14.50 |
% |
|
13.25 |
% |
|
12.61 |
% |
|
0.73 |
% |
Efficiency ratio (FTE)* |
|
59.01 |
% |
|
59.11 |
% |
|
56.68 |
% |
|
55.08 |
% |
|
82.28 |
% |
Expense ratio |
|
1.32 |
% |
|
1.35 |
% |
|
1.26 |
% |
|
1.18 |
% |
|
2.27 |
% |
|
|
Six Months Ended |
|
|
Jun. 30, 2021 |
|
Jun. 30, 2020 |
Basic earnings per share |
$ |
2.28 |
|
$ |
0.69 |
|
Diluted earnings per share |
$ |
2.26 |
|
$ |
0.68 |
|
Dividends per share |
$ |
0.60 |
|
$ |
0.56 |
|
Yield on interest-earning assets (FTE)* |
|
3.44 |
% |
|
3.94 |
% |
Cost of interest-bearing liabilities |
|
0.29 |
% |
|
0.73 |
% |
Cost of funds |
|
0.21 |
% |
|
0.56 |
% |
Net interest spread (FTE)* |
|
3.15 |
% |
|
3.21 |
% |
Net interest margin (FTE)* |
|
3.21 |
% |
|
3.39 |
% |
Return on average assets |
|
1.24 |
% |
|
0.46 |
% |
Return on average equity |
|
13.68 |
% |
|
4.63 |
% |
Return on average tangible equity* |
|
14.43 |
% |
|
4.69 |
% |
Efficiency ratio (FTE)* |
|
59.06 |
% |
|
75.37 |
% |
Expense ratio |
|
1.34 |
% |
|
2.08 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
|
Three Months Ended |
|
Six Months Ended |
(dollars in thousands except per share data) |
|
Jun. 30, 2021 |
|
|
Jun. 30, 2020 |
|
|
Jun. 30, 2021 |
|
|
Jun. 30, 2020 |
|
Net income |
$ |
5,696 |
|
$ |
252 |
|
$ |
11,363 |
|
$ |
2,886 |
|
Merger-related expenses, net of income taxes |
|
375 |
|
|
1,577 |
|
|
890 |
|
|
1,839 |
|
FHLB prepayment penalty, net of income taxes |
|
- |
|
|
381 |
|
|
291 |
|
|
380 |
|
Adjusted net income* |
$ |
6,071 |
|
$ |
2,210 |
|
$ |
12,544 |
|
$ |
5,105 |
|
Adjusted basic earnings per share* |
$ |
1.22 |
|
$ |
0.48 |
|
$ |
2.51 |
|
$ |
1.22 |
|
Adjusted diluted earnings per share* |
$ |
1.21 |
|
$ |
0.48 |
|
$ |
2.49 |
|
$ |
1.21 |
|
Interest income adjustment to FTE* |
$ |
487 |
|
$ |
217 |
|
$ |
903 |
|
$ |
408 |
|
Adjusted return on average assets* |
|
1.28 |
% |
|
0.58 |
% |
|
1.37 |
% |
|
0.81 |
% |
Adjusted return on average tangible equity* |
|
15.31 |
% |
|
6.40 |
% |
|
15.94 |
% |
|
8.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other financial data |
|
At period end: |
(dollars in thousands except per share data) |
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
|
Jun. 30, 2020 |
|
Book value per share |
$ |
34.47 |
|
$ |
32.75 |
|
$ |
33.48 |
|
$ |
32.47 |
|
$ |
31.57 |
|
Tangible book value per share* |
$ |
32.74 |
|
$ |
31.00 |
|
$ |
31.72 |
|
$ |
30.68 |
|
$ |
29.77 |
|
Equity to assets |
|
8.83 |
% |
|
8.55 |
% |
|
9.81 |
% |
|
9.45 |
% |
|
8.72 |
% |
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.35 |
% |
|
1.30 |
% |
|
1.27 |
% |
|
1.13 |
% |
|
1.04 |
% |
Non-accrual loans |
|
4.81 |
x |
|
3.78 |
x |
|
3.77 |
x |
|
3.27 |
x |
|
2.74 |
x |
Non-accrual loans to total loans |
|
0.28 |
% |
|
0.34 |
% |
|
0.33 |
% |
|
0.34 |
% |
|
0.37 |
% |
Non-performing assets to total assets |
|
0.31 |
% |
|
0.36 |
% |
|
0.39 |
% |
|
0.41 |
% |
|
0.31 |
% |
Net charge-offs to average total loans |
|
0.03 |
% |
|
0.06 |
% |
|
0.08 |
% |
|
0.08 |
% |
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
16.27 |
% |
|
16.47 |
% |
|
16.46 |
% |
|
16.39 |
% |
|
15.83 |
% |
Common equity tier 1
risk-based capital ratio |
|
15.02 |
% |
|
15.21 |
% |
|
15.21 |
% |
|
15.14 |
% |
|
14.61 |
% |
Tier 1 risk-based capital
ratio |
|
15.02 |
% |
|
15.21 |
% |
|
15.21 |
% |
|
15.14 |
% |
|
14.61 |
% |
Leverage ratio |
|
8.38 |
% |
|
8.72 |
% |
|
8.81 |
% |
|
8.90 |
% |
|
10.02 |
% |
* See non-GAAP Financial Measures above.
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 and D Bancorp (NASDAQ:FDBC)
過去 株価チャート
から 6 2024 まで 7 2024
Fidelity D and D Bancorp (NASDAQ:FDBC)
過去 株価チャート
から 7 2023 まで 7 2024