DUNMORE, Pa., April 25 /PRNewswire-FirstCall/ -- Fidelity D & D
Bancorp, Inc., (OTC:FDBC) (BULLETIN BOARD: FDBC) , parent company
of The Fidelity Deposit and Discount Bank, announced net income for
the quarter ended March 31, 2007 of $1,044,000 compared to
$1,032,000 for the same quarter of 2006. Earnings per share on a
fully diluted basis for the quarter totaled $0.51, up a penny from
$0.50 for the prior year period. Net interest income increased
$74,000 to $4,304,000 for the quarter ended March 31, 2007 from
$4,230,000 recorded during the same quarter of 2006. Earnings from
loan growth coupled with higher interest rates, non-interest
bearing deposit growth, plus a reduction in long-term debt each
contributed to offset rising interest costs and improve the net
interest margin to 3.36% for the first quarter of 2007 from 3.34%
for same 2006 period. No provision for loan loss was required
during the first quarter of 2007 compared to $75,000 in the same
quarter of 2006. The allowance for loan losses was 1.27% of total
loans at March 31, 2007, down from 1.37% at March 31, 2006. Total
other income recorded for the quarter ended March 31, 2007 was
$1,214,000, compared with $1,129,000 for the same quarter in 2006.
A gain recorded on sale of an investment property in the first
quarter of 2007 produced the increase in other income compared to
the first quarter of 2006. Total other operating expenses increased
from $3,923,000 to $4,113,000 for the quarters ending March 31,
2006 and 2007, respectively. The operating expense increase
resulted primarily from more salary and benefit expenses, occupancy
lease costs and professional service fees occurring during in the
first quarter of 2007 as compared to 2006. The Company's assets
grew $2,308,000 to total $564,626,000 at March 31, 2007 from
$562,318,000 at December 31, 2006. "This is a challenging
environment for bankers. We were affected early in this rate cycle,
but are gratified that we have made progress in improving our
earnings and strengthening our balance sheet going forward," stated
Steven C. Ackmann, President and CEO. "The opening of our new
Greenridge office will be an important step in this progress. The
relocation into this newly constructed full service office will
occur in May 2007. Join us for the grand opening celebration on
June 2nd and 3rd." Fidelity D & D Bancorp, Inc. serves
Lackawanna and Luzerne Counties through The Fidelity Deposit and
Discount Bank's 12 community banking offices and 18 ATM locations.
For more information please visit our web site at
http://www.the-fidelity.com/. This press release may contain
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Actual results and trends could
differ materially from those set forth in such statements due to
various factors. These factors include the possibility that
increased demand or prices for the company's financial services and
products may not occur, changing economic, interest rate and
competitive conditions, technological developments and other risks
and uncertainties, including those detailed in the company's
filings with the Securities and Exchange Commission. FIDELITY D
& D BANCORP, INC. Unaudited Condensed Consolidated Balance
Sheets At Period End: Mar. 31, 2007 Dec. 31, 2006 Sep. 30, 2006
Assets Total cash and cash equivalents $14,435,738 $13,800,848
$20,832,779 Investment securities 101,291,577 100,410,736
101,740,346 Federal Home Loan Bank Stock 3,598,600 3,795,100
3,259,400 Loans and leases 422,955,523 422,765,351 415,915,591
Allowance for loan losses (5,359,758) (5,444,303) (5,843,538)
Premises and equipment, net 10,941,355 11,324,465 11,296,696 Life
insurance cash surrender value 8,254,777 8,177,961 8,105,171 Other
assets 8,508,130 7,487,830 7,534,038 Total assets $564,625,942
$562,317,988 $562,840,483 Liabilities Non-interest-bearing deposits
$71,623,735 $73,741,975 $71,548,817 Interest-bearing deposits
342,443,261 336,592,620 348,180,970 Total deposits 414,066,996
410,334,595 419,729,787 Short-term borrowings 31,607,966 33,656,150
22,826,739 Long-term debt 62,331,630 62,536,210 65,590,062 Other
liabilities 3,985,911 4,179,170 3,730,970 Total liabilities
511,992,503 510,706,125 511,877,558 Shareholders' equity 52,633,439
51,611,863 50,962,925 Total liabilities and shareholders' equity
$564,625,942 $562,317,988 $562,840,483 At Period End: Jun. 30, 2006
Mar. 31, 2006 Assets Total cash and cash equivalents $12,121,597
$10,486,895 Investment securities 113,547,682 116,205,852 Federal
Home Loan Bank Stock 4,558,400 4,699,000 Loans and leases
423,660,466 417,049,567 Allowance for loan losses (5,738,470)
(5,716,473) Premises and equipment, net 11,521,561 11,543,777 Life
insurance cash surrender value 8,033,031 7,962,307 Other assets
7,423,958 7,055,858 Total assets $575,128,225 $569,286,783
Liabilities Non-interest-bearing deposits $70,560,800 $67,692,897
Interest-bearing deposits 352,294,555 340,811,377 Total deposits
422,855,355 408,504,274 Short-term borrowings 31,659,106 27,422,536
Long-term debt 68,324,751 81,029,348 Other liabilities 3,253,894
3,396,492 Total liabilities 526,093,106 520,352,650 Shareholders'
equity 49,035,119 48,934,133 Total liabilities and shareholders'
equity $575,128,225 $569,286,783 Average Quarterly Balances: Mar.
31, 2007 Dec. 31, 2006 Sep. 30, 2006 Assets Total cash and cash
equivalents $12,185,856 $10,970,802 $10,133,961 Investment
securities 108,698,773 114,670,680 116,520,987 Loans and leases,
net 419,942,066 412,624,062 414,380,326 Premises and equipment, net
11,194,541 11,260,563 11,480,499 Other assets 14,415,629 13,908,846
12,321,122 Total assets $566,436,864 $563,434,953 $564,836,895
Liabilities Non-interest-bearing deposits $69,737,257 $70,975,409
$68,170,366 Interest-bearing deposits 354,901,749 344,024,072
349,113,993 Total deposits 424,639,006 414,999,481 417,284,359
Short-term borrowings and long-term debt 85,273,730 92,572,901
93,953,798 Other liabilities 4,341,031 4,501,801 3,968,526 Total
liabilities 514,253,767 512,074,183 515,206,683 Shareholders'
equity 52,183,097 51,360,770 49,630,212 Total liabilities and
shareholders' equity $566,436,864 $563,434,953 $564,836,895 Average
Quarterly Balances: Jun. 30, 2006 Mar. 31, 2006 Assets Total cash
and cash equivalents $10,258,096 $10,654,773 Investment securities
122,638,043 117,482,664 Loans and leases, net 414,575,812
408,418,489 Premises and equipment, net 11,523,344 11,647,257 Other
assets 12,054,841 12,177,876 Total assets $571,050,136 $560,381,059
Liabilities Non-interest-bearing deposits $67,504,856 $66,195,050
Interest-bearing deposits 337,651,638 330,301,631 Total deposits
405,156,494 396,496,681 Short-term borrowings and long- term debt
113,726,078 111,943,866 Other liabilities 3,374,110 3,096,023 Total
liabilities 522,256,682 511,536,570 Shareholders' equity 48,793,454
48,844,489 Total liabilities and shareholders' equity $571,050,136
$560,381,059 FIDELITY D & D BANCORP, INC. Unaudited Condensed
Consolidated Statements of Income Three Months Ended Mar. 31, Dec.
31, Sep. 30, 2007 2006 2006 Interest income Loans and leases
$7,284,546 $7,268,584 $7,226,814 Securities and other 1,347,270
1,401,955 1,367,752 Total interest income 8,631,816 8,670,539
8,594,566 Interest expense Deposits 3,334,023 3,213,402 3,132,402
Borrowings and debt 993,603 1,097,766 1,148,667 Total interest
expense 4,327,626 4,311,168 4,281,069 Net interest income 4,304,190
4,359,371 4,313,497 Provision for loan losses - - 75,000 Other
income 1,213,663 1,173,086 1,136,275 Other expenses 4,113,043
4,011,713 3,995,764 Provision for income taxes 360,459 395,688
349,032 Net income $1,044,351 $1,125,056 $1,029,976 Jun. 30, Mar.
31, 2006 2006 Interest income Loans and leases $7,001,132
$6,630,776 Securities and other 1,370,036 1,262,661 Total interest
income 8,371,168 7,893,437 Interest expense Deposits 2,750,117
2,396,906 Borrowings and debt 1,355,627 1,266,222 Total interest
expense 4,105,744 3,663,128 Net interest income 4,265,424 4,230,309
Provision for loan losses 175,000 75,000 Other income 1,083,952
1,128,825 Other expenses 3,948,149 3,922,750 Provision for income
taxes 287,607 329,753 Net income $938,620 $1,031,631 Selected
Financial Ratios and Other Data Three Months Ended Mar. 31, Dec.
31, Sep. 30, 2007 2006 2006 Selected returns and financial ratios
Diluted earnings per share $0.51 $0.54 $0.51 Dividends per share
$0.22 $0.22 $0.22 Yield on interest-earning assets (FTE) 6.65%
6.55% 6.45% Cost of interest-bearing liabilities 3.99% 3.92% 3.83%
Net interest spread 2.66% 2.63% 2.62% Net interest margin 3.36%
3.34% 3.29% Return on average assets 0.75% 0.79% 0.72% Return on
average equity 8.12% 8.69% 8.18% Efficiency ratio 72.86% 71.31%
71.85% Expense ratio 2.11% 2.03% 2.03% Other data Book value per
share $25.51 $25.09 $24.82 Equity to assets 9.32% 9.18% 9.05%
Allowance for loan losses to: Total loans 1.27% 1.29% 1.41%
Non-accrual loans 1.69x 1.62x Non-accrual loans to net loans 0.76%
0.80% 1.00% Non-performing assets to total assets 0.67% 0.65% 0.93%
Jun. 30, Mar. 31, 2006 2006 Selected returns and financial ratios
Diluted earnings per share $0.45 $0.50 Dividends per share $0.22
$0.22 Yield on interest-earning assets (FTE) 6.29% 6.13% Cost of
interest-bearing liabilities 3.65% 3.36% Net interest spread 2.64%
2.77% Net interest margin 3.26% 3.34% Return on average assets
0.66% 0.75% Return on average equity 7.66% 8.51% Efficiency ratio
72.15% 71.39% Expense ratio 2.03% 2.04% Other data Book value per
share $23.93 $23.93 Equity to assets 8.53% 8.60% Allowance for loan
losses to: Total loans 1.36% 1.37% Non-accrual loans 0.77x 0.65x
Non-accrual loans to net loans 1.79% 2.15% Non-performing assets to
total assets 1.36% 1.60% DATASOURCE: Fidelity D&D Bancorp, Inc.
CONTACT: Steven C. Ackmann, President and Chief Executive Officer,
+1-570-346-4156, or Salvatore R. DeFrancesco, Jr., Treasurer and
Chief Financial Officer, +1-570-504-8000, both of Fidelity D&D
Bancorp, Inc. Web site: http://www.the-fidelity.com/
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