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 six
month periods ended June 30, 2022.
Unaudited Financial Information
Net income for the quarter ended June 30, 2022 was
$7.7 million, or $1.35 diluted earnings per share,
compared to $5.7 million, or $1.13 diluted earnings per share, for
the quarter ended June 30, 2021. The $2.0 million, or
35%, improvement in net
income resulted from the $4.8 million increase in
net interest income which more than offset a $1.9 million increase
in non-interest expenses, $0.3 million less in non-interest
income and $0.2 million higher provision for loan losses.
Diluted earnings per share increased by $0.22 per share, or 19%,
due to the higher net income.
“Fidelity Bank had a very strong first half of 2022,” stated
Daniel J. Santaniello, President and Chief Executive Officer. “The
Company meaningfully improved net interest income and net interest
margin, produced robust organic loan growth, maintained excellent
asset quality, and expenses remained well controlled. The continued
growth is reflective of the Fidelity Bankers’ commitment to
building relationships and partnering with clients to achieve
mutual financial success.”
For the six months ended June 30, 2022, net income was $15.2
million, or $2.67 diluted earnings per share, compared to $11.4
million, or $2.26 diluted earnings per share, for the six months
ended June 30, 2021. The $3.8 million, or 34% improvement in
net income stemmed from the $8.6 million improvement in net
interest income partially offset by $1.3 million less non-interest
income and $3.1 million higher non-interest expenses.
The acquisition of Landmark Bancorp, Inc. (“Landmark”) during
the third quarter of 2021 resulted in growth in the Company’s
earning assets which contributed to net interest income
growth. The Company continued to operate three community
banking offices acquired from Landmark which increased operating
expenses.
Consolidated Second Quarter Operating Results
Overview
Net interest income was $18.1 million for the second
quarter of 2022, a 36% increase over the $13.3 million
earned for the second quarter of 2021. The $4.8 million
improvement in net interest income resulted primarily from a
$472.8 million increase in the average balance of
interest-earning assets supplemented by a 21 basis point
increase in fully-taxable equivalent yields on these earning
assets. The loan portfolio had the biggest impact, producing
a $3.6 million increase in interest income from
$332.3 million in higher average balances. Interest
income in the commercial portfolio
increased $2.0 million during the second quarter of
2022 versus the second quarter of
2021, despite recognition of $0.6 million less
Small Business Administration ("SBA") fees attributable to
Paycheck Protection Program ("PPP") loans over the same time
periods. Accretion of purchase accounting fair value
adjustments on acquired loans increased by $0.5 million over the
same time periods. Interest income from the investment
portfolio grew $1.3 million from $249.0 million in increased
average balances. Interest expense grew $0.1 million due
to an increase of $339.5 million in average interest-bearing
liabilities partially mitigated by a four basis point decrease
in rates paid on interest-bearing liabilities.
The overall cost of interest-bearing liabilities was 0.23% for
the second quarter of 2022, a decrease of four basis points
from the 0.27% paid for the second quarter of 2021. The
cost of funds decreased three basis points to 0.17% for the second
quarter of 2022 from 0.20% for the second quarter of 2021.
The Company’s fully-taxable equivalent (“FTE”) (non-GAAP
measurement) net interest spread was 3.27% for the second
quarter of 2022, up 25 basis points from the 3.02% recorded for the
second quarter of 2021. FTE net interest margin
increased by 24 basis points to 3.34% for the three months ended
June 30, 2022 from 3.10% for the same 2021 period due to
the increase in yields on interest-earning assets as rates on
interest-bearing liabilities declined.
As of June 30, 2022, the outstanding SBA PPP loan
balances totaled $2.5 million. Total PPP loans
generated approximately $9.4 million of SBA processing fees, net of
origination expenses, of which $9.3 million was earned to date
with $0.5 million and $1.1 million recognized during the three
months ended June 30, 2022 and 2021, respectively. The
$0.1 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.
The provision for loan losses was $0.5 million for the second
quarter of 2022, a $0.2 million increase compared to $0.3
million for the second quarter of 2021. The increase in the
provision compared to the quarter ended June 30, 2021 was due to
the higher provisioning required for experienced loan growth in the
second quarter of 2022 compared to the year earlier period. 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 $0.3 million, or 7%,
to $4.3 million for the second quarter of 2022 compared
to $4.6 million for the second quarter of 2021. The
decrease in non-interest income was attributable to the decline in
residential mortgage activity stemming from increased mortgage
rates which lowered the level of gains by $0.7
million during the second quarter of 2022 compared to the
same 2021 period. The Company also recorded $0.2 million less
service charges on loans primarily from this decline in mortgage
activity. Partially offsetting these decreases was $0.3
million higher service charges on deposits primarily from increased
overdraft activity, $0.1 million higher mortgage servicing
fees and $0.1 million in additional wealth management
fees.
Non-interest expenses increased $1.9 million, or 18%, for
the second quarter of 2022 to $12.8 million from $10.9 million
for the same quarter of 2021. Non-interest expenses would
have increased another $0.4 million if not for merger-related
expenses incurred in the second quarter of 2021. The increase
was due to the $1.6 million higher salaries and employee
benefits primarily due to 14 additional full-time equivalent
employees and higher employee benefit
expenses. Additionally, the Company experienced
increases in premises and equipment expenses of $0.3 million
and $0.2 million in advertising and marketing
expenses.
The provision for income taxes increased $0.4 million during the
second quarter of 2022 due to higher income before taxes
compared to the second quarter of 2021.
Consolidated Year-To-Date Operating Results
Overview
Net interest income was $35.4 million for the six months ended
June 30, 2022 compared to $26.8 million for the six months ended
June 30, 2021. The $8.6 million, or 32%, improvement was the
result of earnings from a larger average balance of
interest-earning assets. The loan portfolio had the biggest
impact, producing $5.8 million more interest income from $318.9
million in higher average balances. Interest income in the
commercial portfolio increased $3.0 million during the six months
ended June 30, 2022 compared to the same 2021 period, despite
recognition of $1.7 million less SBA fees attributable to PPP loans
over the same time periods. Interest income from investments
increased $2.9 million from a $296.3 million larger average balance
in the portfolio. On the funding side, interest expense increased
by $0.1 million due to a larger average balance
of interest-bearing deposits. FTE net interest spread
was 3.19% for the first half of 2022, or four basis points higher
than the 3.15% recorded for the first half of 2021. Over the
same time period, the Company’s FTE net interest margin increased
by two basis points to 3.26% from 3.24%.
For the six months ended June 30, 2022, the provision for loan
losses was $1.1 million relatively unchanged from the same 2021
period as the increased provisioning needed for higher loan growth
was offset by a $0.4 million specific reserve incurred during the
prior year that was not required in the current year. This
amount of provisioning was respective to the loan growth achieved
during 2022 and 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, 2022
was $8.8 million, a decrease of $1.3 million, or 13%, from $10.1
million for the six months ended June 30, 2021. The decrease
in other income was primarily due to $2.3 million lower gains on
loan sales and $0.3 million less service charges on loans due
primarily to a decline in residential mortgage activity.
Partially offsetting these decreases were increases as follows:
$0.5 million in service charges on deposits, $0.2 million in trust
fiduciary fees and $0.2 million in interchange fees.
Non-interest expenses increased to $25.4 million for the six
months ended June 30, 2022, an increase of $3.1 million, or 14%,
from $22.3 million for the six months ended June 30, 2021.
Non-interest expenses would have increased another $1.3 million if
not for merger-related expenses of $0.9 million and a FHLB
prepayment penalty of $0.4 million incurred in the second
quarter of 2021. The largest driver of this increase was a
$3.1 million increase in salaries and employee benefit
expenses. In addition, there was $0.6 million more premises
and equipment expenses and $0.2 million higher PA shares tax
expense. These increases were partially offset by $0.2 million less
advertising and marketing expenses.
The provision for income taxes increased $0.5 million during
first half of 2022 compared to the same 2021 period due to the
higher income before taxes.
Consolidated Balance Sheet & Asset Quality
Overview
The Company’s total assets
remained at $2.4 billion as of June 30,
2022, relatively unchanged from December 31, 2021.
Growth in the loan portfolio of $29 million was offset by a
reduction of the investment portfolio by $64 million due to
recording net unrealized losses resulting from the significantly
higher interest rates in intermediate to long-term U.S. Treasury
interest rates through the first half of 2022.
Partially offsetting the decrease in the investment portfolio was
the $16 million increase in deferred tax assets due to the
unrealized losses in the investment portfolio. During the
same time period, total liabilities increased $45 million, or
2%. Deposit growth of $48 million was used to fund
loan growth with the excess increasing cash balances. During
the second quarter of 2022, the Company accepted $52 million from
various wealth managed trust accounts into a bank pledged money
market account which increased total deposits.
Shareholders’ equity decreased $49.1 million, or 23%, to $162.6
million at June 30, 2022 from $211.7 million at December 31, 2021.
The decrease was caused by a $61.1 million, after tax,
reduction in accumulated other comprehensive income from net
unrealized losses recorded in the investment portfolio
stemming from the increase in intermediate to long-term U.S.
Treasury interest rates. At June 30, 2022, there were no
securities identified with credit-related, other-than-temporary
impairment losses. During the second quarter of 2022, the
Company acquired treasury stock totaling $0.4 million which further
reduced shareholders' equity. Partially offsetting these
decreases, retained earnings improved from net income of $15.2
million, partially offset by $3.8 million in cash dividends paid to
shareholders. An additional $1.0 million recorded from the
issuance of common stock under the Company’s stock plans and
stock-based compensation also partially offset the
decrease in shareholders' equity. Accumulated other
comprehensive income (loss) is excluded from regulatory capital
ratios. The Company remains well capitalized with Tier 1
capital at 8.43% of total average assets as of June 30,
2022. Total risk-based capital was 14.30% of risk-weighted
assets and Tier 1 risk-based capital was 13.21% of risk-weighted
assets as of June 30, 2022. Tangible book value per share was
$24.99 at June 30, 2022 compared to $33.68 at December 31,
2021.
Asset Quality
Total non-performing assets were $4.7 million, or 0.20% of total
assets, at June 30, 2022, compared to $6.4 million, or 0.27% of
total assets, at December 31, 2021. Past due and
non-accrual loans to total loans were 0.30% at June 30, 2022
compared to 0.34% at December 31, 2021. Net charge-offs
to average total loans decreased to 0.01% at June 30, 2022 compared
to 0.04% at December 31, 2021.
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 22 full-service offices throughout Lackawanna, Luzerne and
Northampton Counties, along with a limited production commercial
office in Luzerne County and a 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 at
bankatfidelity.com 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. Fidelity Bank'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 use 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 2022 and 2021.
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 short-term and long-term effects of inflation, and rising costs
to the Company, its customers and on the economy; |
|
■ |
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 any other
pandemic, epidemic or other health-related crisis 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; |
|
■ |
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 laws and regulations
concerning taxes, banking, securities and insurance and their
application with which the Company and its subsidiaries must
comply; |
|
■ |
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, continually evolving
cybersecurity 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; |
|
■ |
inflation, securities markets and
monetary fluctuations and volatility; |
|
■ |
the short-term and long-term
effects of inflation, and rising costs to the Company, its
customers and on the economy; |
|
■ |
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, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
109,125 |
|
|
$ |
96,877 |
|
Investment securities |
|
674,833 |
|
|
|
738,980 |
|
Restricted investments in bank stock |
|
3,622 |
|
|
|
3,206 |
|
Loans and leases |
|
1,494,316 |
|
|
|
1,464,855 |
|
Allowance for loan losses |
|
(16,590 |
) |
|
|
(15,624 |
) |
Premises and equipment, net |
|
30,855 |
|
|
|
29,310 |
|
Life insurance cash surrender value |
|
53,383 |
|
|
|
52,745 |
|
Goodwill and core deposit intangible |
|
21,360 |
|
|
|
21,570 |
|
Other assets |
|
44,036 |
|
|
|
27,185 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,414,940 |
|
|
$ |
2,419,104 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
610,987 |
|
|
$ |
590,283 |
|
Interest-bearing deposits |
|
1,606,637 |
|
|
|
1,579,582 |
|
Total deposits |
|
2,217,624 |
|
|
|
2,169,865 |
|
Short-term borrowings |
|
10 |
|
|
|
- |
|
Secured borrowings |
|
7,736 |
|
|
|
10,620 |
|
Other liabilities |
|
26,951 |
|
|
|
26,890 |
|
Total liabilities |
|
2,252,321 |
|
|
|
2,207,375 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
162,619 |
|
|
|
211,729 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,414,940 |
|
|
$ |
2,419,104 |
|
Average Year-To-Date Balances: |
June 30, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
82,130 |
|
|
$ |
146,986 |
|
Investment securities |
|
714,453 |
|
|
|
568,785 |
|
Restricted investments in bank stock |
|
3,384 |
|
|
|
3,181 |
|
Loans and leases |
|
1,475,038 |
|
|
|
1,299,960 |
|
Allowance for loan losses |
|
(16,205 |
) |
|
|
(16,100 |
) |
Premises and equipment, net |
|
30,201 |
|
|
|
28,956 |
|
Life insurance cash surrender value |
|
53,119 |
|
|
|
48,570 |
|
Goodwill and core deposit intangible |
|
21,460 |
|
|
|
12,180 |
|
Other assets |
|
35,310 |
|
|
|
23,069 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,398,890 |
|
|
$ |
2,115,587 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
589,760 |
|
|
$ |
517,599 |
|
Interest-bearing deposits |
|
1,585,626 |
|
|
|
1,376,364 |
|
Total deposits |
|
2,175,386 |
|
|
|
1,893,963 |
|
Short-term borrowings |
|
104 |
|
|
|
97 |
|
Secured borrowings |
|
10,111 |
|
|
|
9,122 |
|
FHLB advances |
|
- |
|
|
|
848 |
|
Other liabilities |
|
27,087 |
|
|
|
22,322 |
|
Total liabilities |
|
2,212,688 |
|
|
|
1,926,352 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
186,202 |
|
|
|
189,235 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,398,890 |
|
|
$ |
2,115,587 |
|
FIDELITY D & D BANCORP,
INC.Unaudited Condensed Consolidated Statements of
Income(dollars in thousands)
|
Three Months Ended |
|
|
Six months ended |
|
|
Jun. 30, 2022 |
|
Jun. 30, 2021 |
|
Jun. 30, 2022 |
|
Jun. 30, 2021 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
15,500 |
|
|
$ |
11,950 |
|
|
$ |
30,275 |
|
|
$ |
24,458 |
|
Securities and other |
|
3,565 |
|
|
|
2,217 |
|
|
|
6,969 |
|
|
|
4,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
19,065 |
|
|
|
14,167 |
|
|
|
37,244 |
|
|
|
28,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(950 |
) |
|
|
(841 |
) |
|
|
(1,772 |
) |
|
|
(1,705 |
) |
Borrowings and debt |
|
30 |
|
|
|
- |
|
|
|
(35 |
) |
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
920 |
|
|
|
841 |
|
|
|
1,807 |
|
|
|
1,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
18,146 |
|
|
|
13,326 |
|
|
|
35,438 |
|
|
|
26,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(525 |
) |
|
|
(300 |
) |
|
|
(1,050 |
) |
|
|
(1,100 |
) |
Non-interest income |
|
4,256 |
|
|
|
4,577 |
|
|
|
8,810 |
|
|
|
10,093 |
|
Non-interest expense |
|
(12,800 |
) |
|
|
(10,851 |
) |
|
|
(25,454 |
) |
|
|
(22,307 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
9,077 |
|
|
|
6,752 |
|
|
|
17,744 |
|
|
|
13,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(1,412 |
) |
|
|
(1,056 |
) |
|
|
(2,556 |
) |
|
|
(2,099 |
) |
Net income |
$ |
7,664 |
|
|
$ |
5,696 |
|
|
$ |
15,187 |
|
|
$ |
11,363 |
|
|
Three Months Ended |
|
|
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
15,500 |
|
|
$ |
14,775 |
|
|
$ |
15,614 |
|
|
$ |
15,359 |
|
|
$ |
11,950 |
|
Securities and other |
|
3,565 |
|
|
|
3,403 |
|
|
|
3,174 |
|
|
|
2,814 |
|
|
|
2,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
19,065 |
|
|
|
18,178 |
|
|
|
18,788 |
|
|
|
18,173 |
|
|
|
14,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
(950 |
) |
|
|
(822 |
) |
|
|
(873 |
) |
|
|
(878 |
) |
|
|
(841 |
) |
Borrowings and debt |
|
30 |
|
|
|
(65 |
) |
|
|
(37 |
) |
|
|
(121 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
920 |
|
|
|
887 |
|
|
|
910 |
|
|
|
999 |
|
|
|
841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
18,146 |
|
|
|
17,291 |
|
|
|
17,878 |
|
|
|
17,174 |
|
|
|
13,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
(525 |
) |
|
|
(525 |
) |
|
|
(450 |
) |
|
|
(450 |
) |
|
|
(300 |
) |
Non-interest income |
|
4,256 |
|
|
|
4,554 |
|
|
|
4,185 |
|
|
|
4,009 |
|
|
|
4,577 |
|
Non-interest expense |
|
(12,800 |
) |
|
|
(12,654 |
) |
|
|
(12,614 |
) |
|
|
(15,185 |
) |
|
|
(10,851 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
9,077 |
|
|
|
8,666 |
|
|
|
8,999 |
|
|
|
5,548 |
|
|
|
6,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(1,412 |
) |
|
|
(1,144 |
) |
|
|
(1,213 |
) |
|
|
(689 |
) |
|
|
(1,056 |
) |
Net income |
$ |
7,664 |
|
|
$ |
7,522 |
|
|
$ |
7,786 |
|
|
$ |
4,859 |
|
|
$ |
5,696 |
|
FIDELITY D & D BANCORP,
INC.Unaudited Condensed Consolidated Balance
Sheets(dollars in thousands)
At Period End: |
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
109,125 |
|
|
$ |
97,403 |
|
|
$ |
96,877 |
|
|
$ |
167,386 |
|
|
$ |
170,064 |
|
Investment securities |
|
674,833 |
|
|
|
711,583 |
|
|
|
738,980 |
|
|
|
686,926 |
|
|
|
554,955 |
|
Restricted investments in bank stock |
|
3,622 |
|
|
|
3,231 |
|
|
|
3,206 |
|
|
|
3,321 |
|
|
|
3,231 |
|
Loans and leases |
|
1,494,316 |
|
|
|
1,479,114 |
|
|
|
1,464,855 |
|
|
|
1,435,997 |
|
|
|
1,134,158 |
|
Allowance for loan losses |
|
(16,590 |
) |
|
|
(16,081 |
) |
|
|
(15,624 |
) |
|
|
(15,601 |
) |
|
|
(15,245 |
) |
Premises and equipment, net |
|
30,855 |
|
|
|
31,336 |
|
|
|
29,310 |
|
|
|
29,406 |
|
|
|
27,615 |
|
Life insurance cash surrender value |
|
53,383 |
|
|
|
53,065 |
|
|
|
52,745 |
|
|
|
52,417 |
|
|
|
44,858 |
|
Goodwill and core deposit intangible |
|
21,360 |
|
|
|
21,462 |
|
|
|
21,570 |
|
|
|
21,678 |
|
|
|
8,613 |
|
Other assets |
|
44,036 |
|
|
|
39,661 |
|
|
|
27,185 |
|
|
|
30,269 |
|
|
|
20,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
2,414,940 |
|
|
$ |
2,420,774 |
|
|
$ |
2,419,104 |
|
|
$ |
2,411,799 |
|
|
$ |
1,949,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
610,987 |
|
|
$ |
599,497 |
|
|
$ |
590,283 |
|
|
$ |
586,952 |
|
|
$ |
491,051 |
|
Interest-bearing deposits |
|
1,606,637 |
|
|
|
1,610,508 |
|
|
|
1,579,582 |
|
|
|
1,576,498 |
|
|
|
1,266,609 |
|
Total deposits |
|
2,217,624 |
|
|
|
2,210,005 |
|
|
|
2,169,865 |
|
|
|
2,163,450 |
|
|
|
1,757,660 |
|
Short-term borrowings |
|
10 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Secured borrowings |
|
7,736 |
|
|
|
10,572 |
|
|
|
10,620 |
|
|
|
16,885 |
|
|
|
- |
|
Other liabilities |
|
26,951 |
|
|
|
24,954 |
|
|
|
26,890 |
|
|
|
25,895 |
|
|
|
19,388 |
|
Total liabilities |
|
2,252,321 |
|
|
|
2,245,531 |
|
|
|
2,207,375 |
|
|
|
2,206,230 |
|
|
|
1,777,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
162,619 |
|
|
|
175,243 |
|
|
|
211,729 |
|
|
|
205,569 |
|
|
|
172,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,414,940 |
|
|
$ |
2,420,774 |
|
|
$ |
2,419,104 |
|
|
$ |
2,411,799 |
|
|
$ |
1,949,233 |
|
Average Quarterly Balances: |
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
69,086 |
|
|
$ |
95,319 |
|
|
$ |
117,746 |
|
|
$ |
185,835 |
|
|
$ |
171,968 |
|
Investment securities |
|
693,121 |
|
|
|
736,021 |
|
|
|
725,977 |
|
|
|
640,900 |
|
|
|
489,424 |
|
Restricted investments in bank stock |
|
3,538 |
|
|
|
3,228 |
|
|
|
3,246 |
|
|
|
3,430 |
|
|
|
3,152 |
|
Loans and leases |
|
1,482,629 |
|
|
|
1,467,362 |
|
|
|
1,452,676 |
|
|
|
1,430,142 |
|
|
|
1,150,286 |
|
Allowance for loan losses |
|
(16,441 |
) |
|
|
(15,966 |
) |
|
|
(15,857 |
) |
|
|
(18,716 |
) |
|
|
(15,285 |
) |
Premises and equipment, net |
|
31,091 |
|
|
|
29,301 |
|
|
|
29,399 |
|
|
|
31,381 |
|
|
|
27,502 |
|
Life insurance cash surrender value |
|
53,277 |
|
|
|
52,960 |
|
|
|
52,635 |
|
|
|
52,285 |
|
|
|
44,751 |
|
Goodwill and core deposit intangible |
|
21,405 |
|
|
|
21,517 |
|
|
|
21,632 |
|
|
|
9,579 |
|
|
|
8,648 |
|
Other assets |
|
40,878 |
|
|
|
29,679 |
|
|
|
26,679 |
|
|
|
23,420 |
|
|
|
20,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,378,584 |
|
|
$ |
2,419,421 |
|
|
$ |
2,414,133 |
|
|
$ |
2,358,256 |
|
|
$ |
1,901,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
593,121 |
|
|
$ |
586,363 |
|
|
$ |
585,899 |
|
|
$ |
579,629 |
|
|
$ |
464,818 |
|
Interest-bearing deposits |
|
1,579,150 |
|
|
|
1,592,173 |
|
|
|
1,575,844 |
|
|
|
1,522,149 |
|
|
|
1,249,347 |
|
Total deposits |
|
2,172,271 |
|
|
|
2,178,536 |
|
|
|
2,161,743 |
|
|
|
2,101,778 |
|
|
|
1,714,165 |
|
Short-term borrowings |
|
206 |
|
|
|
- |
|
|
|
- |
|
|
|
68 |
|
|
|
177 |
|
Secured borrowings |
|
9,644 |
|
|
|
10,584 |
|
|
|
16,053 |
|
|
|
20,140 |
|
|
|
- |
|
FHLB advances |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
49 |
|
|
|
- |
|
Other liabilities |
|
27,164 |
|
|
|
27,008 |
|
|
|
27,410 |
|
|
|
23,798 |
|
|
|
19,026 |
|
Total liabilities |
|
2,209,285 |
|
|
|
2,216,128 |
|
|
|
2,205,206 |
|
|
|
2,145,833 |
|
|
|
1,733,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
169,299 |
|
|
|
203,293 |
|
|
|
208,927 |
|
|
|
212,423 |
|
|
|
167,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,378,584 |
|
|
$ |
2,419,421 |
|
|
$ |
2,414,133 |
|
|
$ |
2,358,256 |
|
|
$ |
1,901,039 |
|
FIDELITY D & D BANCORP,
INC.Selected Financial Ratios and Other Data
|
Three Months Ended |
|
|
Jun. 30, 2022 |
|
|
Mar. 31, 2022 |
|
|
Dec. 31, 2021 |
|
|
Sep. 30, 2021 |
|
|
Jun. 30, 2021 |
|
Selected returns and financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.35 |
|
|
$ |
1.33 |
|
|
$ |
1.38 |
|
|
$ |
0.86 |
|
|
$ |
1.14 |
|
Diluted earnings per share |
$ |
1.35 |
|
|
$ |
1.32 |
|
|
$ |
1.37 |
|
|
$ |
0.85 |
|
|
$ |
1.13 |
|
Dividends per share |
$ |
0.33 |
|
|
$ |
0.33 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
|
$ |
0.30 |
|
Yield on interest-earning assets (FTE)* |
|
3.50 |
% |
|
|
3.34 |
% |
|
|
3.40 |
% |
|
|
3.40 |
% |
|
|
3.29 |
% |
Cost of interest-bearing liabilities |
|
0.23 |
% |
|
|
0.22 |
% |
|
|
0.23 |
% |
|
|
0.26 |
% |
|
|
0.27 |
% |
Cost of funds |
|
0.17 |
% |
|
|
0.16 |
% |
|
|
0.17 |
% |
|
|
0.19 |
% |
|
|
0.20 |
% |
Net interest spread (FTE)* |
|
3.27 |
% |
|
|
3.12 |
% |
|
|
3.17 |
% |
|
|
3.14 |
% |
|
|
3.02 |
% |
Net interest margin (FTE)* |
|
3.34 |
% |
|
|
3.18 |
% |
|
|
3.24 |
% |
|
|
3.22 |
% |
|
|
3.10 |
% |
Return on average assets |
|
1.29 |
% |
|
|
1.26 |
% |
|
|
1.28 |
% |
|
|
0.82 |
% |
|
|
1.20 |
% |
Return on average equity |
|
18.16 |
% |
|
|
15.01 |
% |
|
|
14.79 |
% |
|
|
9.07 |
% |
|
|
13.63 |
% |
Return on average tangible equity* |
|
20.79 |
% |
|
|
16.78 |
% |
|
|
16.49 |
% |
|
|
9.50 |
% |
|
|
14.37 |
% |
Efficiency ratio (FTE)* |
|
55.45 |
% |
|
|
56.21 |
% |
|
|
55.52 |
% |
|
|
69.79 |
% |
|
|
59.01 |
% |
Expense ratio |
|
1.44 |
% |
|
|
1.36 |
% |
|
|
1.38 |
% |
|
|
1.88 |
% |
|
|
1.32 |
% |
|
Six months ended |
|
|
Jun. 30, 2022 |
|
Jun. 30, 2021 |
Basic earnings per share |
$ |
2.68 |
|
|
$ |
2.28 |
|
Diluted earnings per share |
$ |
2.67 |
|
|
$ |
2.26 |
|
Dividends per share |
$ |
0.66 |
|
|
$ |
0.60 |
|
Yield on interest-earning assets (FTE)* |
|
3.42 |
% |
|
|
3.44 |
% |
Cost of interest-bearing liabilities |
|
0.23 |
% |
|
|
0.29 |
% |
Cost of funds |
|
0.17 |
% |
|
|
0.21 |
% |
Net interest spread (FTE)* |
|
3.19 |
% |
|
|
3.15 |
% |
Net interest margin (FTE)* |
|
3.26 |
% |
|
|
3.24 |
% |
Return on average assets |
|
1.28 |
% |
|
|
1.24 |
% |
Return on average equity |
|
16.45 |
% |
|
|
13.68 |
% |
Return on average tangible equity* |
|
18.59 |
% |
|
|
14.43 |
% |
Efficiency ratio (FTE)* |
|
55.82 |
% |
|
|
59.06 |
% |
Expense ratio |
|
1.40 |
% |
|
|
1.34 |
% |
Non-GAAP Measures |
Three Months Ended |
|
|
Six months ended |
|
(dollars in thousands except per share data) |
Jun. 30, 2022 |
|
Jun. 30, 2021 |
|
Jun. 30, 2022 |
|
Jun. 30, 2021 |
Net income |
$ |
7,664 |
|
|
$ |
5,696 |
|
|
$ |
15,187 |
|
|
$ |
11,363 |
|
Merger-related expenses, net
of income taxes |
|
- |
|
|
|
375 |
|
|
|
- |
|
|
|
890 |
|
FHLB
prepayment penalty, net of income taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
291 |
|
Adjusted net income* |
$ |
7,664 |
|
|
$ |
6,071 |
|
|
$ |
15,187 |
|
|
$ |
12,544 |
|
Adjusted basic earnings per
share* |
$ |
1.35 |
|
|
$ |
1.22 |
|
|
$ |
2.68 |
|
|
$ |
2.51 |
|
Adjusted diluted earnings per
share* |
$ |
1.35 |
|
|
$ |
1.21 |
|
|
$ |
2.67 |
|
|
$ |
2.49 |
|
Interest income adjustment to
FTE* |
$ |
682 |
|
|
$ |
487 |
|
|
$ |
1,350 |
|
|
$ |
903 |
|
Adjusted return on average
assets* |
|
1.29 |
% |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.37 |
% |
Adjusted return on average
tangible equity* |
|
20.79 |
% |
|
|
15.31 |
% |
|
|
18.59 |
% |
|
|
15.94 |
% |
Other financial data |
At period end: |
|
(dollars in thousands except per share data) |
Jun. 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
|
Jun. 30, 2021 |
Book value per share |
$ |
28.77 |
|
|
$ |
30.97 |
|
|
$ |
37.50 |
|
|
$ |
36.41 |
|
|
$ |
34.47 |
|
Tangible book value per share* |
$ |
24.99 |
|
|
$ |
27.17 |
|
|
$ |
33.68 |
|
|
$ |
32.57 |
|
|
$ |
32.74 |
|
Equity to assets |
|
6.73 |
% |
|
|
7.24 |
% |
|
|
8.75 |
% |
|
|
8.52 |
% |
|
|
8.83 |
% |
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.11 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
|
1.12 |
% |
|
|
1.35 |
% |
Non-accrual loans |
5.17x |
|
|
6.97x |
|
|
5.30x |
|
|
5.68x |
|
|
4.81x |
|
Non-accrual loans to total loans |
|
0.21 |
% |
|
|
0.16 |
% |
|
|
0.20 |
% |
|
|
0.19 |
% |
|
|
0.28 |
% |
Non-performing assets to total assets |
|
0.20 |
% |
|
|
0.17 |
% |
|
|
0.27 |
% |
|
|
0.25 |
% |
|
|
0.31 |
% |
Net charge-offs to average total loans |
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.04 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Adequacy Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
ratio |
|
14.30 |
% |
|
|
14.18 |
% |
|
|
14.51 |
% |
|
|
14.52 |
% |
|
|
16.27 |
% |
Common equity tier 1
risk-based capital ratio |
|
13.21 |
% |
|
|
13.11 |
% |
|
|
13.40 |
% |
|
|
13.38 |
% |
|
|
15.02 |
% |
Tier 1 risk-based capital
ratio |
|
13.21 |
% |
|
|
13.11 |
% |
|
|
13.40 |
% |
|
|
13.38 |
% |
|
|
15.02 |
% |
Leverage ratio |
|
8.43 |
% |
|
|
8.14 |
% |
|
|
7.94 |
% |
|
|
7.89 |
% |
|
|
8.38 |
% |
* 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