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 nine month periods ended
September 30, 2021.
Unaudited Financial Information
Net income for the three months ended September 30, 2021 was
$4.9 million, or $0.85 diluted earnings per share, compared to $5.0
million, or $0.99 diluted earnings per share, for the three months
ended September 30, 2020. The $0.1 million, or 2%, reduction in net
income resulted from a $5.7 million increase in non-interest
expenses which more than offset the $4.6 million increase in net
interest income and reduction of $1.1 million in the provision for
loan losses. Merger-related expenses were $2.2 million for the
third quarter of 2021, or $2.0 million higher than merger-related
expenses for the third quarter of 2020 due to the timing of the
mergers. Diluted earnings per share decreased by $0.14 per share
due to the higher non-interest expenses from merger-related
expenses incurred from the merger during the third quarter of 2021
which also resulted in an increase in the average shares
outstanding.
As previously announced, Fidelity D & D Bancorp, Inc. (the
“Company”) acquired Landmark Bancorp, Inc. (“Landmark”) and its
wholly-owned subsidiary Landmark Community Bank effective July 1,
2021. The fair value of assets acquired included $375.5 million in
total assets, $308.5 million in deposits and $298.9 million in
loans added to the Company’s balance sheet. The reported results
include provisional estimates of the accounting for the acquisition
of Landmark which are subject to revision in future periods when
the application of the accounting guidance for business
combinations is finalized. Based on the closing price on June 30,
2021, the merger valuation was $42.9 million.
Excluding merger-related expenses, adjusted net income was $6.6
million for the third quarter of 2021, or $1.16 diluted earnings
per share, compared to adjusted net income of $5.1 million, or
$1.03 diluted earnings per share, for the third 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.
“We are very pleased with third quarter financial results. The
Fidelity Bankers have continued to be focused on the execution of
the strategic initiative of building long-term relationships
through organic and inorganic growth,” stated Daniel J.
Santaniello, President and Chief Executive Officer. “While the
year-to-date 2021 financial results have been adversely impacted
with the anticipated and non-recurring expenses associated with the
acquisition of Landmark Bancorp, the Board of Directors and
Management are pleased with the Company’s core operating results.
We believe the addition of the Landmark Bankers and the acquired
strong balance sheet will continue to build long-term shareholder
value.”
Paycheck Protection Program
On July 1, 2021, the Company acquired $20.3 million in Small
Business Administration’s (“SBA”) Paycheck Protection Program
(“PPP”) loans as a result of the merger with Landmark.
As of September 30, 2021, the outstanding PPP loan balances
totaled $66.8 million. Total PPP loans generated approximately $9.4
million of SBA processing fees, net of origination expenses, of
which $7.3 million was earned to date with $1.4 million and $4.2
million recognized during the three and nine months ended September
30, 2021. The $2.1 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 Third Quarter Operating Results
Overview
Net interest income was $17.2 million for the third quarter of
2021, a 37% increase over the $12.5 million earned for the third
quarter of 2020. The $4.7 million improvement in net
interest income resulted primarily from a $594.3 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 and payoff of the FHLB advances. The loan portfolio had
the biggest impact, producing a $3.4 million increase in interest
income from $286.6 million in higher average balances primarily
from the addition of Landmark loans to the balance sheet. Higher
interest income in the commercial portfolio was the driver with
$180.8 million in larger average balances adding $2.7 million,
which included $0.4 million from additional SBA fees attributable
to PPP loans recognized during the third quarter of 2021 versus the
2020 period. Interest income in the consumer and residential
portfolios also contributed to the increase due to the larger
average balances in those portfolios. Interest income from the
investment portfolio increased $1.1 million as $319.5 million in
increased average balances offset declining yields. Interest
expense was $0.2 million lower due to decreases in deposit rates.
The average balance of interest-bearing deposits increased $467.0
million and the rates paid on these deposits decreased 17 basis
points.
The overall cost of interest-bearing liabilities was 0.26% for
the third quarter of 2021, a decrease of 15 basis points from the
0.41% paid for the third quarter of 2020. The cost of funds
decreased 11 basis points to 0.19% for the third quarter of 2021
from 0.30% for the third quarter of 2020. The Company’s
fully-taxable equivalent (“FTE”) (non-GAAP measurement) net
interest spread was 3.14% for the third quarter of 2021, or six
basis points higher than the 3.08% recorded for the third quarter
of 2020. FTE net interest margin increased by two basis points to
3.22% for the three months ended September 30, 2021 from 3.20% for
the same 2020 period.
The provision for loan losses was $0.4 million for the third
quarter of 2021, a $1.1 million decrease compared to $1.5 million
for the third quarter of 2020. The decrease in the
provision compared to the quarter ended September 30, 2020 was
attributed to the COVID-19-related provisioning that occurred
during the third quarter of 2020, which was not similarly warranted
for the quarter ended September 30, 2021 due to the improvement in
the Company’s economic environment compared to the third 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 decreased $0.4 million, or 8%, to $4.0
million for the third quarter of 2021 compared to $4.4 million for
the third quarter of 2020. The decrease in non-interest income was
attributable to $1.2 million lower gains on loan sales during the
third quarter of 2021 compared to the same 2020 period due to
managements’ decision to hold mortgages longer to earn interest
income during the third quarter of 2021. Partially offsetting this
decrease was $0.2 million higher interchange fees, $0.2 million in
additional service charges on deposits, $0.1 million growth in
trust fiduciary fees and $0.1 million higher earnings on bank-owned
life insurance.
Non-interest expenses increased $5.7 million, or 60%, for the
third quarter of 2021 to $15.2 million from $9.5 million for the
same quarter of 2020. Most of the increase was due to the $2.0
million higher nonrecurring merger-related expenses, primarily
consisting of data processing, salaries and employee benefits and
professional services expenses in connection with the Landmark
acquisition. The majority of the expenses related to the MNB
acquisition were recognized during the second quarter of 2020 while
most of the expenses related to the Landmark acquisition were
recognized during the third quarter of 2021. The Company also
recognized $1.6 million in added salaries and employee benefits
primarily due to an increase in the number of bankers post-merger
and higher performance-based incentive compensation. Advertising
and marketing expenses increased $0.5 million due to higher
advertising costs and a $0.2 million donation to Fidelity D & D
Charitable Foundation. Additionally, premises and equipment
expenses were $0.4 million higher and data processing and
communications expenses grew $0.2 million due to new property,
equipment and systems in place after the Landmark merger.
The provision for income taxes decreased $0.3 million during the
third quarter of 2021 due to a larger proportion of tax-free income
compared to the third quarter of 2020.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $44.0 million for the nine months ended
September 30, 2021 compared to $31.4 million for the nine months
ended September 30, 2020. The $12.6 million, or 40%, improvement
was the result of earnings from a larger average balance of
interest-earning assets combined with lower interest expense due to
declining rates paid on interest-bearing liabilities. The loan
portfolio drove the increased interest income which grew $8.7
million from higher average balances due primarily to loans
acquired from the merger with Landmark. The higher
interest income included $4.2 million in SBA fees recognized
attributable to PPP loans during the first nine months of 2021, a
$2.4 million increase compared to the $1.8 million recognized for
the first nine months of 2020. Interest income from investments
increased $2.3 million from a $263.9 million larger average balance
in the portfolio. On the funding side, interest expense decreased
by $1.6 million due to lower rates paid on interest-bearing
deposits and a smaller balance of average borrowings. FTE net
interest spread was 3.14% for the first nine months of 2021, or two
basis points lower than the 3.16% recorded for the first nine
months of 2020. Over the same time period, the Company’s FTE net
interest margin decreased by eight basis points to 3.23% from
3.31%.
For the nine months ended September 30, 2021, the provision for
loan losses was $1.6 million compared to $3.7 million for the same
2020 period. The $2.1 million decrease in the provision was
attributed to the COVID-19-related provisioning that occurred
during the nine months ended September 30, 2020 which was not
similarly warranted during the nine months ended September 30, 2021
due to the improvement in the Company’s economic environment
compared to the year earlier period. This amount of provisioning
reflected the changing risk profile within the loan portfolio to
what management deemed necessary to maintain the allowance for loan
and lease losses at an adequate level.
Total non-interest income for the nine months ended September
30, 2021 was $14.1 million, an increase of $4.3 million, or 43%,
from $9.8 million for the nine months ended September 30, 2020. The
increase in other income was primarily due to $1.7 million more in
gains on loan sales and $1.1 million higher interchange fees. Other
increases that contributed to the non-interest income growth were
as follows: $0.3 million in loan service fees, $0.3 million in
earnings on bank-owned life insurance, $0.3 million in trust
fiduciary fees and $0.3 million in service charges on deposits.
Non-interest expenses increased to $37.5 million for the nine
months ended September 30, 2021, an increase of $9.4 million, or
33%, from $28.1 million for the nine months ended September 30,
2020. The largest driver of this increase was a $4.2 million
increase in salaries and employee benefit expenses from more
salaries for a larger employee base and higher performance-based
incentive compensation. In addition, there was $1.1 million more
premises and equipment expenses, $0.9 million higher professional
services and $0.9 million more in advertising and marketing
expenses. Merger-related expenses were $0.7 million higher for the
nine months ended September 30, 2021 from the Landmark merger
compared to expenses incurred for the nine months ended September
30, 2020 from the MNB merger.
The provision for income taxes increased $1.2 million during
first nine months of 2021 compared to the same 2020 period due to
the higher income before taxes.
Consolidated Balance Sheet & Asset Quality
Overview
During the first nine months of 2021, the Company’s total assets
increased $712 million, or 42%, to $2.4 billion as of September 30,
2021 from $1.7 billion at December 31, 2020. During the same time
period, total liabilities increased $673 million, or 44%, from $1.5
billion to $2.2 billion. This growth resulted primarily from the
Landmark merger. Deposit growth, excluding deposits acquired from
Landmark, of $345 million was used to purchase $342 million in
securities and fund organic 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 $6.1 million, or 0.25% of total
assets, at September 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 0.27% at September 30, 2021 compared to
0.47% at December 31, 2020. Net charge-offs to average total loans
decreased to 0.02% at September 30, 2021 compared to 0.08% at
September 30, 2020 and 0.08% at December 31, 2020.
Shareholders’ equity increased $38.9 million, or 23%, to $205.6
million at September 30, 2021 from $166.7 million at December 31,
2020. The increase was primarily caused by $35.1 million in common
stock issued as a result of the Landmark merger. Net income of
$16.2 million was partially offset by $4.7 million in cash
dividends paid to shareholders and a $8.8 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 $1.1 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 with
Tier 1 capital at 7.99% of total average assets as of September 30,
2021. Tangible book value per share was $32.57 at
September 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
23 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 digital services, and
digital account opening offered through online banking and the
mobile app. Additionally, Fidelity Bank offers full-service Wealth
Management & Brokerage Services, a Mortgage Center, and an
array of personal and business banking products and services. Part
of the Company’s vision is to serve as the best bank for the
community, which was accomplished by having provided 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: |
September 30, 2021 |
|
December 31, 2020 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
167,386 |
|
$ |
69,346 |
|
Investment securities |
|
686,926 |
|
|
392,420 |
|
Restricted investments in bank stock |
|
3,321 |
|
|
2,813 |
|
Loans and leases |
|
1,435,997 |
|
|
1,149,438 |
|
Allowance for loan losses |
|
(15,601 |
) |
|
(14,202 |
) |
Premises and equipment, net |
|
29,406 |
|
|
27,626 |
|
Life insurance cash surrender value |
|
52,417 |
|
|
44,285 |
|
Goodwill and core deposit intangible |
|
21,678 |
|
|
8,787 |
|
Other assets |
|
30,269 |
|
|
18,997 |
|
|
|
|
|
|
Total assets |
$ |
2,411,799 |
|
$ |
1,699,510 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest-bearing deposits |
$ |
586,952 |
|
$ |
407,496 |
|
Interest-bearing deposits |
|
1,576,498 |
|
|
1,102,009 |
|
Total deposits |
|
2,163,450 |
|
|
1,509,505 |
|
Secured borrowings |
|
16,885 |
|
|
- |
|
FHLB advances |
|
- |
|
|
5,000 |
|
Other liabilities |
|
25,895 |
|
|
18,335 |
|
Total liabilities |
|
2,206,230 |
|
|
1,532,840 |
|
|
|
|
|
|
Shareholders' equity |
|
205,569 |
|
|
166,670 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,411,799 |
|
$ |
1,699,510 |
|
|
|
|
|
|
Average Year-To-Date Balances: |
September 30, 2021 |
December 31, 2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
156,840 |
|
$ |
126,155 |
|
Investment securities |
|
515,812 |
|
|
280,983 |
|
Restricted investments in bank stock |
|
3,160 |
|
|
3,044 |
|
Loans and leases |
|
1,248,495 |
|
|
1,019,373 |
|
Allowance for loan losses |
|
(16,182 |
) |
|
(11,277 |
) |
Premises and equipment, net |
|
28,807 |
|
|
26,123 |
|
Life insurance cash surrender value |
|
47,200 |
|
|
29,912 |
|
Goodwill and core deposit intangible |
|
8,994 |
|
|
5,316 |
|
Other assets |
|
21,853 |
|
|
16,036 |
|
|
|
|
|
|
Total assets |
$ |
2,014,979 |
|
$ |
1,495,665 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest-bearing deposits |
$ |
494,582 |
|
$ |
340,211 |
|
Interest-bearing deposits |
|
1,309,140 |
|
|
933,981 |
|
Total deposits |
|
1,803,722 |
|
|
1,274,192 |
|
Short-term borrowings |
|
129 |
|
|
49,165 |
|
Secured borrowings |
|
6,787 |
|
|
- |
|
FHLB advances |
|
1,134 |
|
|
10,608 |
|
Other liabilities |
|
20,607 |
|
|
17,765 |
|
Total liabilities |
|
1,832,379 |
|
|
1,351,730 |
|
|
|
|
|
|
Shareholders' equity |
|
182,600 |
|
|
143,935 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,014,979 |
|
$ |
1,495,665 |
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Statements of Income(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2020 |
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2020 |
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
15,359 |
|
$ |
11,994 |
|
$ |
39,817 |
|
$ |
31,126 |
|
|
|
Securities and other |
|
2,814 |
|
|
1,705 |
|
|
6,863 |
|
|
4,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
18,173 |
|
|
13,699 |
|
|
46,680 |
|
|
35,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(878 |
) |
|
(1,070 |
) |
|
(2,583 |
) |
|
(3,781 |
) |
|
|
Borrowings and debt |
|
(121 |
) |
|
(93 |
) |
|
(147 |
) |
|
(516 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
999 |
|
|
1,163 |
|
|
2,730 |
|
|
4,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
17,174 |
|
|
12,536 |
|
|
43,950 |
|
|
31,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(450 |
) |
|
(1,500 |
) |
|
(1,550 |
) |
|
(3,700 |
) |
|
|
Non-interest income |
|
4,009 |
|
|
4,370 |
|
|
14,102 |
|
|
9,833 |
|
|
|
Non-interest expense |
|
(15,185 |
) |
|
(9,474 |
) |
|
(37,492 |
) |
|
(28,089 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
5,548 |
|
|
5,932 |
|
|
19,010 |
|
|
9,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(689 |
) |
|
(955 |
) |
|
(2,788 |
) |
|
(1,545 |
) |
|
|
Net income |
$ |
4,859 |
|
$ |
4,977 |
|
$ |
16,222 |
|
$ |
7,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
15,359 |
|
$ |
11,950 |
|
$ |
12,508 |
|
$ |
12,115 |
|
$ |
11,994 |
|
Securities and other |
|
2,814 |
|
|
2,217 |
|
|
1,832 |
|
|
1,720 |
|
|
1,705 |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
18,173 |
|
|
14,167 |
|
|
14,340 |
|
|
13,835 |
|
|
13,699 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(878 |
) |
|
(841 |
) |
|
(864 |
) |
|
(975 |
) |
|
(1,070 |
) |
Borrowings and debt |
|
(121 |
) |
|
- |
|
|
(26 |
) |
|
(39 |
) |
|
(93 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
999 |
|
|
841 |
|
|
890 |
|
|
1,014 |
|
|
1,163 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
17,174 |
|
|
13,326 |
|
|
13,450 |
|
|
12,821 |
|
|
12,536 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(450 |
) |
|
(300 |
) |
|
(800 |
) |
|
(1,550 |
) |
|
(1,500 |
) |
Non-interest income |
|
4,009 |
|
|
4,577 |
|
|
5,516 |
|
|
4,835 |
|
|
4,370 |
|
Non-interest expense |
|
(15,185 |
) |
|
(10,851 |
) |
|
(11,456 |
) |
|
(10,230 |
) |
|
(9,474 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
5,548 |
|
|
6,752 |
|
|
6,710 |
|
|
5,876 |
|
|
5,932 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(689 |
) |
|
(1,056 |
) |
|
(1,043 |
) |
|
(704 |
) |
|
(955 |
) |
Net income |
$ |
4,859 |
|
$ |
5,696 |
|
$ |
5,667 |
|
$ |
5,172 |
|
$ |
4,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY D & D BANCORP, INC.Unaudited
Condensed Consolidated Balance Sheets(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
At Period End: |
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
167,386 |
|
$ |
170,064 |
|
$ |
222,953 |
|
$ |
69,346 |
|
$ |
131,778 |
|
Investment securities |
|
686,926 |
|
|
554,955 |
|
|
436,622 |
|
|
392,420 |
|
|
340,310 |
|
Restricted investments in bank stock |
|
3,321 |
|
|
3,231 |
|
|
2,931 |
|
|
2,813 |
|
|
2,766 |
|
Loans and leases |
|
1,435,997 |
|
|
1,134,158 |
|
|
1,153,160 |
|
|
1,149,438 |
|
|
1,151,010 |
|
Allowance for loan losses |
|
(15,601 |
) |
|
(15,245 |
) |
|
(14,839 |
) |
|
(14,202 |
) |
|
(12,884 |
) |
Premises and equipment, net |
|
29,406 |
|
|
27,615 |
|
|
27,275 |
|
|
27,626 |
|
|
28,411 |
|
Life insurance cash surrender value |
|
52,417 |
|
|
44,858 |
|
|
44,582 |
|
|
44,285 |
|
|
33,068 |
|
Goodwill and core deposit intangible |
|
21,678 |
|
|
8,613 |
|
|
8,697 |
|
|
8,787 |
|
|
8,877 |
|
Other assets |
|
30,269 |
|
|
20,984 |
|
|
31,711 |
|
|
18,997 |
|
|
27,707 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,411,799 |
|
$ |
1,949,233 |
|
$ |
1,913,092 |
|
$ |
1,699,510 |
|
$ |
1,711,043 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
586,952 |
|
$ |
491,051 |
|
$ |
518,352 |
|
$ |
407,496 |
|
$ |
408,840 |
|
Interest-bearing deposits |
|
1,576,498 |
|
|
1,266,609 |
|
|
1,204,548 |
|
|
1,102,009 |
|
|
1,108,283 |
|
Total deposits |
|
2,163,450 |
|
|
1,757,660 |
|
|
1,722,900 |
|
|
1,509,505 |
|
|
1,517,123 |
|
Secured borrowings |
|
16,885 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
FHLB advances |
|
- |
|
|
- |
|
|
- |
|
|
5,000 |
|
|
5,000 |
|
Other liabilities |
|
25,895 |
|
|
19,388 |
|
|
26,610 |
|
|
18,335 |
|
|
27,309 |
|
Total liabilities |
|
2,206,230 |
|
|
1,777,048 |
|
|
1,749,510 |
|
|
1,532,840 |
|
|
1,549,432 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
205,569 |
|
|
172,185 |
|
|
163,582 |
|
|
166,670 |
|
|
161,611 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,411,799 |
|
$ |
1,949,233 |
|
$ |
1,913,092 |
|
$ |
1,699,510 |
|
$ |
1,711,043 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances: |
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
185,835 |
|
$ |
171,968 |
|
$ |
111,904 |
|
$ |
116,964 |
|
$ |
180,030 |
|
Investment securities |
|
640,900 |
|
|
489,424 |
|
|
414,626 |
|
|
363,728 |
|
|
322,875 |
|
Restricted investments in bank stock |
|
3,430 |
|
|
3,152 |
|
|
2,891 |
|
|
2,826 |
|
|
2,763 |
|
Loans and leases |
|
1,430,142 |
|
|
1,150,286 |
|
|
1,162,112 |
|
|
1,150,652 |
|
|
1,143,590 |
|
Allowance for loan losses |
|
(18,716 |
) |
|
(15,285 |
) |
|
(14,500 |
) |
|
(13,085 |
) |
|
(11,814 |
) |
Premises and equipment, net |
|
31,381 |
|
|
27,502 |
|
|
27,495 |
|
|
28,228 |
|
|
28,481 |
|
Life insurance cash surrender value |
|
52,285 |
|
|
44,751 |
|
|
44,478 |
|
|
33,512 |
|
|
32,978 |
|
Goodwill and core deposit intangible |
|
9,579 |
|
|
8,648 |
|
|
8,746 |
|
|
8,837 |
|
|
8,926 |
|
Other assets |
|
23,420 |
|
|
20,593 |
|
|
21,527 |
|
|
16,502 |
|
|
17,703 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,358,256 |
|
$ |
1,901,039 |
|
$ |
1,779,279 |
|
$ |
1,708,164 |
|
$ |
1,725,532 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
579,629 |
|
$ |
464,818 |
|
$ |
437,740 |
|
$ |
408,623 |
|
$ |
407,605 |
|
Interest-bearing deposits |
|
1,522,149 |
|
|
1,249,347 |
|
|
1,151,855 |
|
|
1,111,291 |
|
|
1,055,183 |
|
Total deposits |
|
2,101,778 |
|
|
1,714,165 |
|
|
1,589,595 |
|
|
1,519,914 |
|
|
1,462,788 |
|
Short-term borrowings |
|
68 |
|
|
177 |
|
|
144 |
|
|
- |
|
|
78,056 |
|
Secured borrowings |
|
20,140 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
FHLB advances |
|
49 |
|
|
- |
|
|
3,389 |
|
|
5,000 |
|
|
5,000 |
|
Other liabilities |
|
23,798 |
|
|
19,026 |
|
|
18,944 |
|
|
19,051 |
|
|
19,462 |
|
Total liabilities |
|
2,145,833 |
|
|
1,733,368 |
|
|
1,612,072 |
|
|
1,543,965 |
|
|
1,565,306 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
212,423 |
|
|
167,671 |
|
|
167,207 |
|
|
164,199 |
|
|
160,226 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,358,256 |
|
$ |
1,901,039 |
|
$ |
1,779,279 |
|
$ |
1,708,164 |
|
$ |
1,725,532 |
|
|
FIDELITY D & D BANCORP, INC.Selected Financial
Ratios and Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.86 |
|
$ |
1.14 |
|
$ |
1.14 |
|
$ |
1.04 |
|
$ |
1.00 |
|
Diluted earnings per share |
$ |
0.85 |
|
$ |
1.13 |
|
$ |
1.13 |
|
$ |
1.03 |
|
$ |
0.99 |
|
Dividends per share |
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.28 |
|
Yield on interest-earning assets (FTE)* |
|
3.40 |
% |
|
3.29 |
% |
|
3.61 |
% |
|
3.53 |
% |
|
3.49 |
% |
Cost of interest-bearing liabilities |
|
0.26 |
% |
|
0.27 |
% |
|
0.31 |
% |
|
0.36 |
% |
|
0.41 |
% |
Cost of funds |
|
0.19 |
% |
|
0.20 |
% |
|
0.23 |
% |
|
0.26 |
% |
|
0.30 |
% |
Net interest spread (FTE)* |
|
3.14 |
% |
|
3.02 |
% |
|
3.30 |
% |
|
3.17 |
% |
|
3.08 |
% |
Net interest margin (FTE)* |
|
3.22 |
% |
|
3.10 |
% |
|
3.39 |
% |
|
3.28 |
% |
|
3.20 |
% |
Return on average assets |
|
0.82 |
% |
|
1.20 |
% |
|
1.29 |
% |
|
1.20 |
% |
|
1.15 |
% |
Return on average equity |
|
9.07 |
% |
|
13.63 |
% |
|
13.75 |
% |
|
12.53 |
% |
|
12.36 |
% |
Return on average tangible equity* |
|
9.50 |
% |
|
14.37 |
% |
|
14.50 |
% |
|
13.25 |
% |
|
12.61 |
% |
Efficiency ratio (FTE)* |
|
69.79 |
% |
|
59.01 |
% |
|
59.11 |
% |
|
56.68 |
% |
|
55.08 |
% |
Expense ratio |
|
1.88 |
% |
|
1.32 |
% |
|
1.35 |
% |
|
1.26 |
% |
|
1.18 |
% |
|
|
Nine Months Ended |
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2020 |
|
Basic earnings per share |
$ |
3.11 |
|
$ |
1.76 |
|
Diluted earnings per share |
$ |
3.09 |
|
$ |
1.75 |
|
Dividends per share |
$ |
0.90 |
|
$ |
0.84 |
|
Yield on interest-earning assets (FTE)* |
|
3.42 |
% |
|
3.76 |
% |
Cost of interest-bearing liabilities |
|
0.28 |
% |
|
0.60 |
% |
Cost of funds |
|
0.20 |
% |
|
0.45 |
% |
Net interest spread (FTE)* |
|
3.14 |
% |
|
3.16 |
% |
Net interest margin (FTE)* |
|
3.23 |
% |
|
3.31 |
% |
Return on average assets |
|
1.08 |
% |
|
0.74 |
% |
Return on average equity |
|
11.88 |
% |
|
7.66 |
% |
Return on average tangible equity* |
|
12.49 |
% |
|
7.90 |
% |
Efficiency ratio (FTE)* |
|
62.98 |
% |
|
67.04 |
% |
Expense ratio |
|
1.55 |
% |
|
1.71 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
|
Three Months Ended |
|
Nine Months Ended |
(dollars in thousands except per share data) |
|
Sep. 30, 2021 |
|
|
Sep. 30, 2020 |
|
|
Sep. 30, 2021 |
|
|
Sep. 30, 2020 |
|
Net income |
$ |
4,859 |
|
$ |
4,977 |
|
$ |
16,222 |
|
$ |
7,862 |
|
Merger-related expenses, net of income taxes |
|
1,739 |
|
|
172 |
|
|
2,629 |
|
|
2,011 |
|
FHLB prepayment penalty, net of income taxes |
|
- |
|
|
(1 |
) |
|
291 |
|
|
380 |
|
Adjusted net income* |
$ |
6,598 |
|
$ |
5,148 |
|
$ |
19,142 |
|
$ |
10,253 |
|
Adjusted basic earnings per share* |
$ |
1.17 |
|
$ |
1.04 |
|
$ |
3.67 |
|
$ |
2.30 |
|
Adjusted diluted earnings per share* |
$ |
1.16 |
|
$ |
1.03 |
|
$ |
3.64 |
|
$ |
2.29 |
|
Interest income adjustment to FTE* |
$ |
577 |
|
$ |
295 |
|
$ |
1,480 |
|
$ |
704 |
|
Adjusted return on average assets* |
|
1.11 |
% |
|
1.19 |
% |
|
1.27 |
% |
|
0.96 |
% |
Adjusted return on average tangible equity* |
|
12.90 |
% |
|
12.81 |
% |
|
14.74 |
% |
|
10.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
Other financial data |
|
At period end: |
(dollars in thousands except per share data) |
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
|
Mar. 31, 2021 |
|
|
Dec. 31, 2020 |
|
|
Sep. 30, 2020 |
|
Book value per share |
$ |
36.41 |
|
$ |
34.47 |
|
$ |
32.75 |
|
$ |
33.48 |
|
$ |
32.47 |
|
Tangible book value per share* |
$ |
32.57 |
|
$ |
32.74 |
|
$ |
31.00 |
|
$ |
31.72 |
|
$ |
30.68 |
|
Equity to assets |
|
8.52 |
% |
|
8.83 |
% |
|
8.55 |
% |
|
9.81 |
% |
|
9.45 |
% |
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.12 |
% |
|
1.35 |
% |
|
1.30 |
% |
|
1.27 |
% |
|
1.13 |
% |
Non-accrual loans |
|
5.68 |
x |
|
4.81 |
x |
|
3.78 |
x |
|
3.77 |
x |
|
3.27 |
x |
Non-accrual loans to total loans |
|
0.19 |
% |
|
0.28 |
% |
|
0.34 |
% |
|
0.33 |
% |
|
0.34 |
% |
Non-performing assets to total assets |
|
0.25 |
% |
|
0.31 |
% |
|
0.36 |
% |
|
0.39 |
% |
|
0.41 |
% |
Net charge-offs to average total loans |
|
0.02 |
% |
|
0.03 |
% |
|
0.06 |
% |
|
0.08 |
% |
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
14.77 |
% |
|
16.27 |
% |
|
16.47 |
% |
|
16.46 |
% |
|
16.39 |
% |
Common equity tier 1
risk-based capital ratio |
|
13.61 |
% |
|
15.02 |
% |
|
15.21 |
% |
|
15.21 |
% |
|
15.14 |
% |
Tier 1 risk-based capital
ratio |
|
13.61 |
% |
|
15.02 |
% |
|
15.21 |
% |
|
15.21 |
% |
|
15.14 |
% |
Leverage ratio |
|
7.99 |
% |
|
8.38 |
% |
|
8.72 |
% |
|
8.81 |
% |
|
8.90 |
% |
* 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