Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking
subsidiary, The Fidelity Deposit and Discount Bank, announced its
unaudited, consolidated financial results for the three and twelve
month periods ended December 31, 2021 reporting new record high
results.
Unaudited Financial Information
Net income for the three months ended December 31, 2021 was $7.8
million, or $1.37 diluted earnings per share, compared to $5.2
million, or $1.03 diluted earnings per share, for the three months
ended December 31, 2020. The $2.6 million, or 51%, improvement in
net income resulted from the $5.1 million increase in net interest
income and $1.1 million reduction in the provision for loan losses
which more than offset a $2.4 million increase in non-interest
expenses and $0.6 million less in non-interest income. Diluted
earnings per share increased by $0.34 per share, or 33%, due to the
higher net income.
“Fidelity Bank is very pleased with the 2021 financial results.
We have achieved record financial results and increased our already
strong capital position. During the year we successfully executed
the acquisition of Landmark Bancorp, Inc.,” stated Daniel J.
Santaniello, President and Chief Executive Officer. “During the
fourth quarter of 2021, the benefits of the Landmark Bancorp, Inc.
acquisition were realized. The continued growth in loans, deposits,
and non-interest income, while effectively managing expenses,
reflects the Fidelity Bankers’ commitment to building relationships
and partnering with our clients to achieve mutual financial
success.”
Net income recorded for the year ended December 31, 2021 was
$24.0 million, or $4.48 diluted earnings per share, compared to
$13.0 million, or $2.82 diluted earnings per share, for the same
2020 period. The $11.0 million, or 84%, increase was driven by
higher net interest income and additional non-interest income which
resulted in $21.3 million, or 36%, total revenue growth.
Additionally, the provision for loan losses was $3.3 million lower
year-over-year which also contributed to the net income growth.
Partially offsetting this growth were $11.8 million, or 31%, higher
non-interest expenses.
Excluding merger-related expenses of $2.5 million and an FHLB
prepayment penalty of $0.3 million, each net of tax, adjusted net
income was $26.8 million, or $5.00 diluted earnings per share, for
the year ended December 31, 2021, a 74% increase compared to $15.4
million, or $3.34 diluted earnings per share, for the same 2020
period. 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.
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. Based on the closing
price on June 30, 2021, the merger valuation was $42.9 million.
Paycheck Protection Program
As of December 31, 2021, the outstanding Small Business
Administration’s (“SBA”) Paycheck Protection Program (“PPP”) loan
balances totaled $41.1 million. Total PPP loans generated
approximately $9.4 million of SBA processing fees, net of
origination expenses, of which $8.2 million was earned to date with
$0.9 million and $5.1 million recognized during the three and
twelve months ended December 31, 2021. The $1.2 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 Fourth Quarter Operating Results
Overview
Net interest income was $17.9 million for the fourth quarter of
2021, a 39% increase over the $12.8 million earned for the fourth
quarter of 2020. The $5.1 million improvement in net interest
income resulted primarily from a $666.1 million increase in the
average balance of interest-earning assets which offset the 13
basis point declining yields on these earning assets. The loan
portfolio had the biggest impact, producing a $3.5 million increase
in interest income from $302.0 million in higher average balances
primarily from the addition of Landmark loans to the balance sheet.
The commercial portfolio was the largest contributor with $149.4
million in larger average balances earning 34 basis point higher
yields adding $2.4 million in interest income during the fourth
quarter of 2021 versus the fourth quarter of 2020, despite
recognition of $0.4 million less SBA fees attributable to PPP loans
over the same time periods. Interest income from the investment
portfolio increased $1.5 million as $371.5 million in increased
average balances offset the 20 basis point declining yields.
Interest income in the consumer and residential portfolios also
contributed $1.1 million to the increase due to the $152.6 million
larger average balances in those portfolios. Interest expense was
$0.1 million lower due to decreases in deposit rates. The average
balance of interest-bearing deposits increased $464.6 million and
the rates paid on these deposits decreased 13 basis points.
The overall cost of interest-bearing liabilities was 0.23% for
the fourth quarter of 2021, a decrease of 13 basis points from the
0.36% paid for the fourth quarter of 2020. The cost of funds
decreased nine basis points to 0.17% for the fourth quarter of 2021
from 0.26% for the fourth quarter of 2020. The Company’s
fully-taxable equivalent (“FTE”) (non-GAAP measurement) net
interest spread was 3.17% for the fourth quarter of 2021, unchanged
from the 3.17% recorded for the fourth quarter of 2020. FTE net
interest margin decreased by four basis points to 3.24% for the
three months ended December 31, 2021 from 3.28% for the same 2020
period due to the growth rate on the average balance of
interest-earning assets outpacing the growth of net interest
income.
The provision for loan losses was $0.5 million for the fourth
quarter of 2021, a $1.1 million decrease compared to $1.6 million
for the fourth quarter of 2020. The decrease in the provision
compared to the quarter ended December 31, 2020 was due to the
higher level of economic certainty in the Company’s operating area
when compared to the previous year's fourth quarter. 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 $0.6 million, or 13%, to
$4.2 million for the fourth quarter of 2021 compared to $4.8
million for the fourth quarter of 2020. The decrease in
non-interest income was attributable to $1.1 million lower gains on
loan sales during the fourth quarter of 2021 compared to the same
2020 period due to managements’ decision to hold mortgages longer
to earn interest income. Partially offsetting this decrease was
$0.3 million growth in wealth management fees and $0.2 million in
additional service charges on deposits.
Non-interest expenses increased $2.4 million, or 23%, for the
fourth quarter of 2021 to $12.6 million from $10.2 million for the
same quarter of 2020. Most of the increase was due to the $1.2
million higher salaries and employee benefits primarily due to an
increase in the number of bankers post-merger. Additionally,
premises and equipment expenses were $0.3 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 increased $0.5 million during the
fourth quarter of 2021 due to higher income before taxes compared
to the fourth quarter of 2020.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $61.8 million for the year ended
December 31, 2021 compared to $44.2 million for the year ended
December 31, 2020. The $17.6 million, or 40%, improvement was the
result of earnings from a $607.3 million larger average balance of
interest-earning assets combined with lower interest expense due to
the 27 basis point lower rates paid on interest-bearing
liabilities. The loan portfolio drove the increased interest income
which grew $12.2 million from $280.6 million higher average
balances due primarily to loans acquired from the merger with
Landmark. The higher interest income included $5.1 million in SBA
fees recognized attributable to the $176.1 million of PPP loans
forgiven/paid down during 2021, a $2.0 million increase compared to
the $3.1 million in SBA fees recognized for 2020. Interest income
from investments increased $3.8 million from a $291.1 million
larger average balance in the portfolio. On the funding side,
interest expense decreased by $1.7 million due to the 26 basis
point lower rates paid on interest-bearing deposits and a $49.7
million smaller balance of average borrowings. FTE net interest
spread was 3.16% for 2021, or unchanged from the 3.16% recorded for
2020. Over the same time period, the Company’s FTE net interest
margin decreased by seven basis points to 3.23% due to the growth
rate on the average balance of interest-earning assets outpacing
the growth of net interest income.
For the year ended December 31, 2021, the provision for loan
losses was $2.0 million compared to $5.3 million for the same 2020
period. The $3.3 million decrease in the provision was attributed
to the COVID-19-related provisioning that occurred during the year
ended December 31, 2020 which was not similarly warranted during
the year ended December 31, 2021 due to the higher level of
economic certainty in the Company’s operating area when 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 year ended December 31, 2021
was $18.3 million, an increase of $3.6 million, or 25%, from $14.7
million for the year ended December 31, 2020. The increase in other
income was primarily due to $1.1 million higher interchange fees.
Other increases that contributed to the non-interest income growth
were as follows: $0.7 million in wealth management fees from $88.8
million growth in assets under management and administration, $0.6
million in gains on loan sales, $0.5 million in service charges on
deposits, $0.4 million in earnings on bank-owned life insurance and
$0.3 in loan service charges.
Non-interest expenses increased to $50.1 million for the year
ended December 31, 2021, an increase of $11.8 million, or 31%, from
$38.3 million for the year ended December 31, 2020. The largest
driver of this increase was a $5.4 million increase in salaries and
employee benefit expenses from more salaries for a larger banker
base and higher performance-based incentive compensation. In
addition, there was $1.4 million more premises and equipment
expenses, $1.0 million more in advertising and marketing expenses,
$0.5 million higher professional services, $0.4 million higher FDIC
assessment, $0.3 million more automated transaction processing
expenses and $0.3 million increase in data processing and
communication. Merger-related expenses were $0.6 million higher for
the year ended December 31, 2021 from the Landmark merger compared
to expenses incurred for the year ended December 31, 2020 from the
MNB merger.
The provision for income taxes increased $1.8 million during
2021 compared to the same 2020 period due to the higher income
before taxes.
Consolidated Balance Sheet & Asset Quality
Overview
During 2021, the Company’s total assets increased $720 million,
or 42%, to $2.4 billion as of December 31, 2021 from $1.7 billion
at December 31, 2020. Approximately half of this growth was
attributed to the Landmark merger. During the same time period,
total liabilities increased $675 million, or 44%, from $1.5 billion
to $2.2 billion. Deposit growth of $393 million, excluding deposit
accounts acquired from Landmark, was used to purchase securities
earning significantly higher yields than cash balances. 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 $6.4 million, or 0.27% of total
assets, at December 31, 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 0.35% at December 31, 2021 compared to 0.47% at
December 31, 2020. Net charge-offs to average total loans decreased
to 0.04% at December 31, 2021 compared to 0.08% at December 31,
2020.
Shareholders’ equity increased $45.0 million, or 27%, to $211.7
million at December 31, 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
$24.0 million was partially offset by $6.6 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 increase in intermediate to long-term U.S.
Treasury interest rates. An additional $1.4 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 7.94% of total average assets as of December 31,
2021. Tangible book value per share was $33.68 at December 31, 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 over 3,100
hours of volunteer time and over $1.8 million in donations to
non-profit organizations directly within the markets served
throughout 2021. 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
acquisitions of MNB Corporation (“MNB”) and its wholly-owned bank
subsidiary and Landmark Bancorp Inc. (“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: |
December 31, 2021 |
December 31, 2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
96,877 |
|
$ |
69,346 |
|
Investment securities |
|
738,980 |
|
|
392,420 |
|
Restricted investments in bank stock |
|
3,206 |
|
|
2,813 |
|
Loans and leases |
|
1,464,855 |
|
|
1,149,438 |
|
Allowance for loan losses |
|
(15,624 |
) |
|
(14,202 |
) |
Premises and equipment, net |
|
29,310 |
|
|
27,626 |
|
Life insurance cash surrender value |
|
52,745 |
|
|
44,285 |
|
Goodwill and core deposit intangible |
|
21,570 |
|
|
8,787 |
|
Other assets |
|
27,185 |
|
|
18,997 |
|
|
|
|
|
|
Total assets |
$ |
2,419,104 |
|
$ |
1,699,510 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest-bearing deposits |
$ |
590,283 |
|
$ |
407,496 |
|
Interest-bearing deposits |
|
1,579,582 |
|
|
1,102,009 |
|
Total deposits |
|
2,169,865 |
|
|
1,509,505 |
|
Secured borrowings |
|
10,620 |
|
|
- |
|
FHLB advances |
|
- |
|
|
5,000 |
|
Other liabilities |
|
26,890 |
|
|
18,335 |
|
Total liabilities |
|
2,207,375 |
|
|
1,532,840 |
|
|
|
|
|
|
Shareholders' equity |
|
211,729 |
|
|
166,670 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,419,104 |
|
$ |
1,699,510 |
|
|
|
|
|
|
Average Year-To-Date Balances: |
December 31, 2021 |
December 31, 2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
146,986 |
|
$ |
126,155 |
|
Investment securities |
|
568,785 |
|
|
280,983 |
|
Restricted investments in bank stock |
|
3,181 |
|
|
3,044 |
|
Loans and leases |
|
1,299,960 |
|
|
1,019,373 |
|
Allowance for loan losses |
|
(16,100 |
) |
|
(11,277 |
) |
Premises and equipment, net |
|
28,956 |
|
|
26,123 |
|
Life insurance cash surrender value |
|
48,570 |
|
|
29,912 |
|
Goodwill and core deposit intangible |
|
12,180 |
|
|
5,316 |
|
Other assets |
|
23,069 |
|
|
16,036 |
|
|
|
|
|
|
Total assets |
$ |
2,115,587 |
|
$ |
1,495,665 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-interest-bearing deposits |
$ |
517,599 |
|
$ |
340,211 |
|
Interest-bearing deposits |
|
1,376,364 |
|
|
933,981 |
|
Total deposits |
|
1,893,963 |
|
|
1,274,192 |
|
Short-term borrowings |
|
97 |
|
|
49,165 |
|
Secured borrowings |
|
9,122 |
|
|
- |
|
FHLB advances |
|
848 |
|
|
10,608 |
|
Other liabilities |
|
22,322 |
|
|
17,765 |
|
Total liabilities |
|
1,926,352 |
|
|
1,351,730 |
|
|
|
|
|
|
Shareholders' equity |
|
189,235 |
|
|
143,935 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,115,587 |
|
$ |
1,495,665 |
|
FIDELITY D & D BANCORP,
INC.Unaudited Condensed Consolidated Statements of
Income(dollars in thousands)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
Dec. 31, 2021 |
|
Dec. 31, 2020 |
|
Dec. 31, 2021 |
|
Dec. 31, 2020 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
15,614 |
|
$ |
12,115 |
|
$ |
55,431 |
|
$ |
43,241 |
|
|
|
Securities and other |
|
3,174 |
|
|
1,720 |
|
|
10,037 |
|
|
6,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
18,788 |
|
|
13,835 |
|
|
65,468 |
|
|
49,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(873 |
) |
|
(975 |
) |
|
(3,456 |
) |
|
(4,756 |
) |
|
|
Borrowings and debt |
|
(37 |
) |
|
(39 |
) |
|
(183 |
) |
|
(555 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
910 |
|
|
1,014 |
|
|
3,639 |
|
|
5,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
17,878 |
|
|
12,821 |
|
|
61,829 |
|
|
44,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(450 |
) |
|
(1,550 |
) |
|
(2,000 |
) |
|
(5,250 |
) |
|
|
Non-interest income |
|
4,185 |
|
|
4,835 |
|
|
18,287 |
|
|
14,668 |
|
|
|
Non-interest expense |
|
(12,614 |
) |
|
(10,230 |
) |
|
(50,107 |
) |
|
(38,319 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
8,999 |
|
|
5,876 |
|
|
28,009 |
|
|
15,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(1,213 |
) |
|
(704 |
) |
|
(4,001 |
) |
|
(2,249 |
) |
|
|
Net income |
$ |
7,786 |
|
$ |
5,172 |
|
$ |
24,008 |
|
$ |
13,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
Jun. 30, 2021 |
|
Mar. 31, 2021 |
|
Dec. 31, 2020 |
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
15,614 |
|
$ |
15,359 |
|
$ |
11,950 |
|
$ |
12,508 |
|
$ |
12,115 |
|
Securities and other |
|
3,174 |
|
|
2,814 |
|
|
2,217 |
|
|
1,832 |
|
|
1,720 |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
18,788 |
|
|
18,173 |
|
|
14,167 |
|
|
14,340 |
|
|
13,835 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(873 |
) |
|
(878 |
) |
|
(841 |
) |
|
(864 |
) |
|
(975 |
) |
Borrowings and debt |
|
(37 |
) |
|
(121 |
) |
|
- |
|
|
(26 |
) |
|
(39 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
910 |
|
|
999 |
|
|
841 |
|
|
890 |
|
|
1,014 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
17,878 |
|
|
17,174 |
|
|
13,326 |
|
|
13,450 |
|
|
12,821 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(450 |
) |
|
(450 |
) |
|
(300 |
) |
|
(800 |
) |
|
(1,550 |
) |
Non-interest income |
|
4,185 |
|
|
4,009 |
|
|
4,577 |
|
|
5,516 |
|
|
4,835 |
|
Non-interest expense |
|
(12,614 |
) |
|
(15,185 |
) |
|
(10,851 |
) |
|
(11,456 |
) |
|
(10,230 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
8,999 |
|
|
5,548 |
|
|
6,752 |
|
|
6,710 |
|
|
5,876 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(1,213 |
) |
|
(689 |
) |
|
(1,056 |
) |
|
(1,043 |
) |
|
(704 |
) |
Net income |
$ |
7,786 |
|
$ |
4,859 |
|
$ |
5,696 |
|
$ |
5,667 |
|
$ |
5,172 |
|
FIDELITY D & D BANCORP,
INC.Unaudited Condensed Consolidated Balance
Sheets(dollars in thousands)
At Period End: |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
Jun. 30, 2021 |
|
Mar. 31, 2021 |
|
Dec. 31, 2020 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
96,877 |
|
$ |
167,386 |
|
$ |
170,064 |
|
$ |
222,953 |
|
$ |
69,346 |
|
Investment securities |
|
738,980 |
|
|
686,926 |
|
|
554,955 |
|
|
436,622 |
|
|
392,420 |
|
Restricted investments in bank stock |
|
3,206 |
|
|
3,321 |
|
|
3,231 |
|
|
2,931 |
|
|
2,813 |
|
Loans and leases |
|
1,464,855 |
|
|
1,435,997 |
|
|
1,134,158 |
|
|
1,153,160 |
|
|
1,149,438 |
|
Allowance for loan losses |
|
(15,624 |
) |
|
(15,601 |
) |
|
(15,245 |
) |
|
(14,839 |
) |
|
(14,202 |
) |
Premises and equipment, net |
|
29,310 |
|
|
29,406 |
|
|
27,615 |
|
|
27,275 |
|
|
27,626 |
|
Life insurance cash surrender value |
|
52,745 |
|
|
52,417 |
|
|
44,858 |
|
|
44,582 |
|
|
44,285 |
|
Goodwill and core deposit intangible |
|
21,570 |
|
|
21,678 |
|
|
8,613 |
|
|
8,697 |
|
|
8,787 |
|
Other assets |
|
27,185 |
|
|
30,269 |
|
|
20,984 |
|
|
31,711 |
|
|
18,997 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,419,104 |
|
$ |
2,411,799 |
|
$ |
1,949,233 |
|
$ |
1,913,092 |
|
$ |
1,699,510 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
590,283 |
|
$ |
586,952 |
|
$ |
491,051 |
|
$ |
518,352 |
|
$ |
407,496 |
|
Interest-bearing deposits |
|
1,579,582 |
|
|
1,576,498 |
|
|
1,266,609 |
|
|
1,204,548 |
|
|
1,102,009 |
|
Total deposits |
|
2,169,865 |
|
|
2,163,450 |
|
|
1,757,660 |
|
|
1,722,900 |
|
|
1,509,505 |
|
Secured borrowings |
|
10,620 |
|
|
16,885 |
|
|
- |
|
|
- |
|
|
- |
|
FHLB advances |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,000 |
|
Other liabilities |
|
26,890 |
|
|
25,895 |
|
|
19,388 |
|
|
26,610 |
|
|
18,335 |
|
Total liabilities |
|
2,207,375 |
|
|
2,206,230 |
|
|
1,777,048 |
|
|
1,749,510 |
|
|
1,532,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
211,729 |
|
|
205,569 |
|
|
172,185 |
|
|
163,582 |
|
|
166,670 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,419,104 |
|
$ |
2,411,799 |
|
$ |
1,949,233 |
|
$ |
1,913,092 |
|
$ |
1,699,510 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances: |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
Jun. 30, 2021 |
|
Mar. 31, 2021 |
|
Dec. 31, 2020 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
117,746 |
|
$ |
185,835 |
|
$ |
171,968 |
|
$ |
111,904 |
|
$ |
116,964 |
|
Investment securities |
|
725,977 |
|
|
640,900 |
|
|
489,424 |
|
|
414,626 |
|
|
363,728 |
|
Restricted investments in bank stock |
|
3,246 |
|
|
3,430 |
|
|
3,152 |
|
|
2,891 |
|
|
2,826 |
|
Loans and leases |
|
1,452,676 |
|
|
1,430,142 |
|
|
1,150,286 |
|
|
1,162,112 |
|
|
1,150,652 |
|
Allowance for loan losses |
|
(15,857 |
) |
|
(18,716 |
) |
|
(15,285 |
) |
|
(14,500 |
) |
|
(13,085 |
) |
Premises and equipment, net |
|
29,399 |
|
|
31,381 |
|
|
27,502 |
|
|
27,495 |
|
|
28,228 |
|
Life insurance cash surrender value |
|
52,635 |
|
|
52,285 |
|
|
44,751 |
|
|
44,478 |
|
|
33,512 |
|
Goodwill and core deposit intangible |
|
21,632 |
|
|
9,579 |
|
|
8,648 |
|
|
8,746 |
|
|
8,837 |
|
Other assets |
|
26,679 |
|
|
23,420 |
|
|
20,593 |
|
|
21,527 |
|
|
16,502 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,414,133 |
|
$ |
2,358,256 |
|
$ |
1,901,039 |
|
$ |
1,779,279 |
|
$ |
1,708,164 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
585,899 |
|
$ |
579,629 |
|
$ |
464,818 |
|
$ |
437,740 |
|
$ |
408,623 |
|
Interest-bearing deposits |
|
1,575,844 |
|
|
1,522,149 |
|
|
1,249,347 |
|
|
1,151,855 |
|
|
1,111,291 |
|
Total deposits |
|
2,161,743 |
|
|
2,101,778 |
|
|
1,714,165 |
|
|
1,589,595 |
|
|
1,519,914 |
|
Short-term borrowings |
|
- |
|
|
68 |
|
|
177 |
|
|
144 |
|
|
- |
|
Secured borrowings |
|
16,053 |
|
|
20,140 |
|
|
- |
|
|
- |
|
|
- |
|
FHLB advances |
|
- |
|
|
49 |
|
|
- |
|
|
3,389 |
|
|
5,000 |
|
Other liabilities |
|
27,410 |
|
|
23,798 |
|
|
19,026 |
|
|
18,944 |
|
|
19,051 |
|
Total liabilities |
|
2,205,206 |
|
|
2,145,833 |
|
|
1,733,368 |
|
|
1,612,072 |
|
|
1,543,965 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
208,927 |
|
|
212,423 |
|
|
167,671 |
|
|
167,207 |
|
|
164,199 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,414,133 |
|
$ |
2,358,256 |
|
$ |
1,901,039 |
|
$ |
1,779,279 |
|
$ |
1,708,164 |
|
FIDELITY D & D BANCORP,
INC.Selected Financial Ratios and Other Data
|
|
Three Months Ended |
|
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
Jun. 30, 2021 |
|
Mar. 31, 2021 |
|
Dec. 31, 2020 |
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.38 |
|
$ |
0.86 |
|
$ |
1.14 |
|
$ |
1.14 |
|
$ |
1.04 |
|
Diluted earnings per share |
$ |
1.37 |
|
$ |
0.85 |
|
$ |
1.13 |
|
$ |
1.13 |
|
$ |
1.03 |
|
Dividends per share |
$ |
0.33 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.30 |
|
Yield on interest-earning assets (FTE)* |
|
3.40 |
% |
|
3.40 |
% |
|
3.29 |
% |
|
3.61 |
% |
|
3.53 |
% |
Cost of interest-bearing liabilities |
|
0.23 |
% |
|
0.26 |
% |
|
0.27 |
% |
|
0.31 |
% |
|
0.36 |
% |
Cost of funds |
|
0.17 |
% |
|
0.19 |
% |
|
0.20 |
% |
|
0.23 |
% |
|
0.26 |
% |
Net interest spread (FTE)* |
|
3.17 |
% |
|
3.14 |
% |
|
3.02 |
% |
|
3.30 |
% |
|
3.17 |
% |
Net interest margin (FTE)* |
|
3.24 |
% |
|
3.22 |
% |
|
3.10 |
% |
|
3.39 |
% |
|
3.28 |
% |
Return on average assets |
|
1.28 |
% |
|
0.82 |
% |
|
1.20 |
% |
|
1.29 |
% |
|
1.20 |
% |
Return on average equity |
|
14.79 |
% |
|
9.07 |
% |
|
13.63 |
% |
|
13.75 |
% |
|
12.53 |
% |
Return on average tangible equity* |
|
16.49 |
% |
|
9.50 |
% |
|
14.37 |
% |
|
14.50 |
% |
|
13.25 |
% |
Efficiency ratio (FTE)* |
|
55.52 |
% |
|
69.79 |
% |
|
59.01 |
% |
|
59.11 |
% |
|
56.68 |
% |
Expense ratio |
|
1.38 |
% |
|
1.88 |
% |
|
1.32 |
% |
|
1.35 |
% |
|
1.26 |
% |
|
|
Twelve Months Ended |
|
|
Dec. 31, 2021 |
|
Dec. 31, 2020 |
Basic earnings per share |
$ |
4.51 |
|
$ |
2.84 |
|
Diluted earnings per share |
$ |
4.48 |
|
$ |
2.82 |
|
Dividends per share |
$ |
1.23 |
|
$ |
1.14 |
|
Yield on interest-earning assets (FTE)* |
|
3.42 |
% |
|
3.69 |
% |
Cost of interest-bearing liabilities |
|
0.26 |
% |
|
0.53 |
% |
Cost of funds |
|
0.19 |
% |
|
0.40 |
% |
Net interest spread (FTE)* |
|
3.16 |
% |
|
3.16 |
% |
Net interest margin (FTE)* |
|
3.23 |
% |
|
3.30 |
% |
Return on average assets |
|
1.13 |
% |
|
0.87 |
% |
Return on average equity |
|
12.69 |
% |
|
9.06 |
% |
Return on average tangible equity* |
|
13.56 |
% |
|
9.40 |
% |
Efficiency ratio (FTE)* |
|
60.92 |
% |
|
63.92 |
% |
Expense ratio |
|
1.50 |
% |
|
1.58 |
% |
Non-GAAP Measures |
|
Three Months Ended |
|
Twelve Months Ended |
(dollars in thousands except per share data) |
|
Dec. 31, 2021 |
|
Dec. 31, 2020 |
|
Dec. 31, 2021 |
|
Dec. 31, 2020 |
Net income |
$ |
7,786 |
|
$ |
5,172 |
|
$ |
24,008 |
|
$ |
13,035 |
|
Merger-related expenses, net of income taxes |
|
(87 |
) |
|
13 |
|
|
2,542 |
|
|
2,026 |
|
FHLB prepayment penalty, net of income taxes |
|
- |
|
|
- |
|
|
291 |
|
|
380 |
|
Adjusted net income* |
$ |
7,699 |
|
$ |
5,185 |
|
$ |
26,841 |
|
$ |
15,441 |
|
Adjusted basic earnings per share* |
$ |
1.36 |
|
$ |
1.04 |
|
$ |
5.04 |
|
$ |
3.37 |
|
Adjusted diluted earnings per share* |
$ |
1.35 |
|
$ |
1.03 |
|
$ |
5.00 |
|
$ |
3.34 |
|
Interest income adjustment to FTE* |
$ |
655 |
|
$ |
391 |
|
$ |
2,135 |
|
$ |
1,095 |
|
Adjusted return on average assets* |
|
1.27 |
% |
|
1.21 |
% |
|
1.27 |
% |
|
1.03 |
% |
Adjusted return on average tangible equity* |
|
16.31 |
% |
|
12.56 |
% |
|
15.16 |
% |
|
10.73 |
% |
Other financial data |
|
At period end: |
(dollars in thousands except per share data) |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
Jun. 30, 2021 |
|
Mar. 31, 2021 |
|
Dec. 31, 2020 |
Book value per share |
$ |
37.50 |
|
$ |
36.41 |
|
$ |
34.47 |
|
$ |
32.75 |
|
$ |
33.48 |
|
Tangible book value per share* |
$ |
33.68 |
|
$ |
32.57 |
|
$ |
32.74 |
|
$ |
31.00 |
|
$ |
31.72 |
|
Equity to assets |
|
8.75 |
% |
|
8.52 |
% |
|
8.83 |
% |
|
8.55 |
% |
|
9.81 |
% |
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.09 |
% |
|
1.12 |
% |
|
1.35 |
% |
|
1.30 |
% |
|
1.27 |
% |
Non-accrual loans |
|
5.30 |
x |
|
5.68 |
x |
|
4.81 |
x |
|
3.78 |
x |
|
3.77 |
x |
Non-accrual loans to total loans |
|
0.20 |
% |
|
0.19 |
% |
|
0.28 |
% |
|
0.34 |
% |
|
0.33 |
% |
Non-performing assets to total assets |
|
0.27 |
% |
|
0.25 |
% |
|
0.31 |
% |
|
0.36 |
% |
|
0.39 |
% |
Net charge-offs to average total loans |
|
0.04 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
0.06 |
% |
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
14.51 |
% |
|
14.52 |
% |
|
16.27 |
% |
|
16.47 |
% |
|
16.46 |
% |
Common equity tier 1
risk-based capital ratio |
|
13.40 |
% |
|
13.38 |
% |
|
15.02 |
% |
|
15.21 |
% |
|
15.21 |
% |
Tier 1 risk-based capital
ratio |
|
13.40 |
% |
|
13.38 |
% |
|
15.02 |
% |
|
15.21 |
% |
|
15.21 |
% |
Leverage ratio |
|
7.94 |
% |
|
7.89 |
% |
|
8.38 |
% |
|
8.72 |
% |
|
8.81 |
% |
* 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