Fidelity D & D Bancorp, Inc. Reports Second Quarter 2025 Financial Results

DUNMORE, Pa., July 23, 2025 (GLOBE NEWSWIRE) -- 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, 2025. Unaudited Financial Information Net income for the quarter ended June 30, 2025 was $6.9 million, or $1.20 diluted earnings per share, compared to $4.9 million, or $0.86 diluted earnings per share, for the quarter ended June 30, 2024. The $2.0 million, or 40%, increase in net income resulted primarily from a $2.8 million increase in net interest income coupled with a $0.8 million increase in non-interest income. This was partially offset by a $1.1 million increase in non-interest expense and a $0.6 million increase in the provision for income tax. For the six months ended June 30, 2025, net income was $12.9 million, or $2.23 diluted earnings per share, compared to $10.0 million, or $1.73 diluted earnings per share, for the six months ended June 30, 2024. The $2.9 million, or 29%, increase in net income stemmed from the $4.9 million increase in net interest income and $1.1 million increase in non-interest income. This was partially offset by a $2.0 million increase in non-interest expense and a $1.0 million increase in the provision for income tax. “I am pleased to share that we delivered another strong quarter, underscoring the continued momentum of our strategy and the dedication of our entire team,” stated Daniel J. Santaniello, President and Chief Executive Officer. “Second quarter 2025 net income increased 40% over last year’s second quarter to $6.9 million, with diluted earnings per share rising to $1.20. This performance was driven by a 19% increase in net interest income—reflecting our disciplined loan portfolio expansion and enhanced yields as well as a 16% rise in non-interest income. Year-to-date, net income has grown 29% to $12.9 million, a clear testament to the strength of our relationship-based deposit strategy and prudent expense management. Our asset quality remains solid, and we further strengthened our capital position, with shareholders' equity up 7% providing a strong foundation for continued growth in the second half of 2025. These results reflect more than financial performance—they speak to the strength of our culture, our commitment to our clients, and our deep roots in the communities we serve. I want to sincerely thank our talented and dedicated team of bankers, whose expertise and focus on service excellence drive our success every day. Together, we continue to build a stronger, more resilient financial institution—one that delivers meaningful value to our bankers, clients, shareholders, and communities.” Consolidated Second Quarter Operating Results Overview Net interest income was $17.9 million for the second quarter of 2025, a 19% increase over the $15.1 million earned for the second quarter of 2024. The $2.8 million increase in net interest income resulted from the increase of $3.7 million in interest income primarily due to a $213.6 million increase in the average balance of interest-earning assets and a 19 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yield. The loan portfolio had the most significant impact, producing a $2.8 million increase in FTE interest income from $124.6 million in higher quarterly average balances and an increase of 24 basis points in FTE loan yield. Additionally, the Company experienced an increase of $1.1 million in interest earned from interest-bearing deposits with other financial institutions from $102.0 million in higher average balances. Slightly offsetting the higher interest income, there was a $0.9 million increase in interest expense due to a $178.8 million quarter-over-quarter increase in average interest-bearing liability balances. The increase was due to growth of $208.3 million in average interest-bearing deposit balances. However, this deposit growth was partially offset by a $28.5 million decrease in average short-term borrowings. The FTE yield on interest-earning assets was 4.77% for the second quarter of 2025, an increase of 19 basis points from the 4.58% for the second quarter of 2024. The overall cost of interest-bearing liabilities was 2.52% for the second quarter of 2025, a decrease of 6 basis points from the 2.58% for the second quarter of 2024. The cost of funds decreased 1 basis point from 1.96% to 1.95% for the second quarters of 2024 and 2025, respectively. The Company’s FTE net interest spread was 2.25% for the second quarter of 2025, an increase of 25 basis points from 2.00% recorded for the second quarter of 2024. FTE net interest margin increased to 2.92% for the three months ended June 30, 2025 from 2.71% for the same period of 2024 primarily due to the growth in higher yielding taxable commercial loans. For the three months ended June 30, 2025, the provision for credit losses on loans was $300 thousand and the provision for unfunded commitments was $20 thousand compared to a $275 thousand provision for credit losses on loans and a $140 thousand provision for credit losses on unfunded loan commitments for the three months ended June 30, 2024. For the three months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $155 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the three months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower levels of unfunded commitments during the quarter due to increased utilization, specifically commercial construction commitments, compared to the year earlier period. Total non-interest income increased $0.8 million, or 16%, to $5.4 million for the second quarter of 2025 compared to $4.6 million for the second quarter of 2024. The increase in non-interest income was primarily attributed to increases of $0.2 million in trust fees, a $0.2 million BOLI death benefit, $0.2 million in loan service charges, and $0.1 million in interchange fees. Non-interest expenses increased $1.1 million, or 8%, for the second quarter of 2025 to $14.7 million from $13.6 million for the same quarter of 2024. The increase in non-interest expenses was primarily due to the increases in salaries and benefits expense of $0.8 million, premises and equipment expense of $0.2 million, and advertising expense of $0.2 million. These increases were partially offset by a $0.2 million decrease in professional services for the three months ended June 30, 2025 compared to the same period of 2024. The provision for income taxes increased $0.6 million during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a $2.6 million increase in income before taxes. Consolidated Year-To-Date Operating Results Overview Net interest income was $35.0 million for the six months ended June 30, 2025 compared to $30.1 million for the six months ended June 30, 2024. The $4.9 million increase in net interest income resulted from the increase of $6.4 million in interest income primarily due to a $181.0 million increase in the average balance of interest-earning assets and a 20 basis point increase in FTE yield. On the asset side, the loan portfolio interest income growth resulted from producing $5.3 million more in interest income from an increase of 25 basis points in FTE loan yields on $120.5 million in higher average balances. Additionally, the Company experienced an increase of $1.5 million in interest earned from interest-bearing deposits with other financial institutions from $71.6 million in higher average balances. The increase in interest income was partially offset by a decrease of $0.3 million in interest earned on the investment portfolio due to decreases of 6 basis points in yield and $11.3 million in average balances. On the funding side, total interest expense increased by $1.5 million primarily due to an increase in interest expense paid on deposits of $2.5 million from a 2 basis points higher rates paid on a $194.0 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $1.0 million for the six months ended June 30, 2025 compared to the same period in 2024. The overall cost of interest-bearing liabilities was 2.51% for the six months ended June 30, 2025 compared to 2.54% for the six months ended June 30, 2024. The cost of funds decreased 1 basis point to 1.94% for the six months ended June 30, 2025 from 1.95% from the same period of 2024. The FTE yield on earning assets was 4.75% for the six months ended June 30, 2025, an increase of 20 basis points from the 4.55% year-to-date June 30, 2024. The Company’s FTE net interest spread was 2.24% for the six months ended June 30, 2025, an increase of 23 basis points from the 2.01% recorded for the same period of 2024. FTE net interest margin increased by 21 basis points to 2.91% for the six months ended June 30, 2025 from 2.70% for the same 2024 period primarily due to the increase in yields earned on loans and leases outpacing the rates paid on interest-bearing deposits. For the six months ended June 30, 2025, the provision for credit losses on loans was $755 thousand and the provision for credit losses on unfunded loan commitments was a net benefit of $65 thousand compared to a $400 thousand provision for credit losses on loans and a $90 thousand provision for credit losses on unfunded commitments for the six months ended June 30, 2024. For the six months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $215 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the six months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower growth in unfunded commitments during the period due to increased utilization, specifically commercial construction commitments, compared to the year earlier period. Total non-interest income for the six months ended June 30, 2025 was $10.3 million, an increase of $1.1 million, or 12%, from $9.2 million for the six months ended June 30, 2024. The increase was primarily due to $0.3 million higher fees from trust fiduciary activities. The Company also had $0.2 million more non-interest income resulting from an increase in interchange fees, a $0.2 million BOLI death benefit, and an increase of $0.2 million in service charges on commercial loans. During the first half of 2025, gains of $0.5 million on the sale of a commercial loan and $0.3 million from the sale of a property were offset by $0.8 million in losses recognized on the sale of securities. Non-interest expenses increased to $29.3 million for the six months ended June 30, 2025, an increase of $2.0 million, or 7%, from $27.3 million for the six months ended June 30, 2024. Salaries and benefits expense increased $1.3 million due to an increase in bankers, group insurance costs, and banker incentives in the first half of 2025, compared to the same period in 2024. Additionally, the Company saw an increase of $0.5 million in advertising and marketing expenses primarily due to a $0.3 million increase in Neighborhood Assistance Program donations from which the Company recognized $0.2 million in additional tax credits causing a corresponding decrease in PA shares tax expense. There was also an increase of $0.5 million in premises and equipment expense primarily due to higher costs for software licenses, subscriptions, and maintenance. The increases were partially offset by $0.3 million less in professional services expense. The provision for income taxes increased $1.0 million during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a $3.9 million increase in income before taxes and $0.2 million less in tax credits. Consolidated Balance Sheet & Asset Quality Overview The Company’s total assets had a balance of $2.7 billion as of June 30, 2025, an increase of $114.0 million from December 31, 2024. The increase resulted from $82.1 million in growth in cash and cash equivalents as of June 30, 2025 compared to December 31, 2024. The loans and leases portfolio increased $37.9 million over the same period. Asset growth was offset by a decrease of $11.4 million in the investment portfolio primarily due to the sale of $17.5 million in available-for-sale securities and $11.3 million in paydowns partially offset by $14.7 million in purchases of securities. During the same time period, total liabilities increased $100.0 million, or 4%. Deposit growth of $94.5 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $37.2 million in money market deposits, $17.2 million in interest-bearing checking accounts, $14.4 million in time deposits, and $1.6 million in savings and clubs. The deposit growth is primarily driven by growth in existing account balances from the relationship building strategy along with targeted direct marketing campaigns driving new client acquisitions and active management of promotional and retention rates. Additionally, the Company experienced an increase of $24.1 million in non-interest-bearing checking accounts. As of June 30, 2025, the ratio of insured and collateralized deposits to total deposits was approximately 75%. Shareholders’ equity increased $13.9 million, or 7%, to $217.9 million at June 30, 2025 from $204.0 million at December 31, 2024. The increase was caused by $8.3 million higher retained earnings from net income of $12.9 million plus a $4.9 million, after tax, improvement in accumulated other comprehensive income from lower net unrealized losses recorded on available-for-sale securities, partially offset by $4.7 million in cash dividends paid to shareholders. An additional $0.9 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At June 30, 2025, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.16% of total average assets as of June 30, 2025. Total risk-based capital was 14.72% of risk-weighted assets and Tier 1 risk-based capital was 13.57% of risk-weighted assets as of June 30, 2025. Tangible book value per share was $34.25 at June 30, 2025 compared to $31.98 at December 31, 2024. Tangible common equity was 7.38% of total assets at June 30, 2025 compared to 7.16% at December 31, 2024. Asset Quality Total non-performing assets were $3.5 million, or 0.13% of total assets, at June 30, 2025, compared to $7.8 million, or 0.30% of total assets, at December 31, 2024. Past due and non-accrual loans to total loans were 0.41% at June 30, 2025 compared to 0.71% at December 31, 2024. Net charge-offs to average total loans were 0.05% at June 30, 2025 compared to 0.03% at December 31, 2024. About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank 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 continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial 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 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the markets served throughout 2024. 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 non-GAAP financial measures to GAAP are presented in the tables below. 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 2025 and 2024. 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: ■local, regional and national economic conditions and changes thereto; ■the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy; ■the risks of changes and volatility of 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; ■securities markets and monetary fluctuations and volatility; ■ disruption of credit and equity markets; ■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 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; ■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 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; ■the effects of economic conditions of any other pandemic, epidemic or other health-related crisis such as 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; ■the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes; ■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; ■acts of war or terrorism; 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, 2025 December 31, 2024 Assets Cash and cash equivalents $165,495 $83,353 Investment securities 545,821 557,221 Restricted investments in bank stock 4,240 3,961 Loans and leases 1,837,477 1,800,856 Allowance for credit losses on loans (19,976) (19,666)Premises and equipment, net 40,097 35,914 Life insurance cash surrender value 58,849 58,069 Goodwill and core deposit intangible 20,364 20,504 Other assets 46,208 44,404 Total assets $2,698,575 $2,584,616 Liabilities Non-interest-bearing deposits $558,074 $533,935 Interest-bearing deposits 1,877,254 1,806,885 Total deposits 2,435,328 2,340,820 Short-term borrowings 10 - Secured borrowings 6,134 6,266 Other liabilities 39,191 33,561 Total liabilities 2,480,663 2,380,647 Shareholders' equity 217,912 203,969 Total liabilities and shareholders' equity $2,698,575 $2,584,616 Average Year-To-Date Balances: June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $129,527 $55,773 Investment securities 551,906 557,537 Restricted investments in bank stock 4,066 3,960 Loans and leases 1,822,654 1,741,349 Allowance for credit losses on loans (20,189) (19,391)Premises and equipment, net 35,839 35,580 Life insurance cash surrender value 58,503 56,455 Goodwill and core deposit intangible 20,423 20,641 Other assets 42,950 41,755 Total assets $2,645,679 $2,493,659 Liabilities Non-interest-bearing deposits $540,320 $527,825 Interest-bearing deposits 1,852,895 1,697,529 Total deposits 2,393,215 2,225,354 Short-term borrowings 16 32,446 Secured borrowings 6,194 6,830 Other liabilities 35,497 32,471 Total liabilities 2,434,922 2,297,101 Shareholders' equity 210,757 196,558 Total liabilities and shareholders' equity $2,645,679 $2,493,659 FIDELITY D & D BANCORP, INC.Unaudited Condensed Consolidated Statements of Income(dollars in thousands) Three Months Ended Six Months Ended Jun. 30, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024 Interest income Loans and leases $25,328 $22,516 $49,924 $44,649 Securities and other 4,437 3,523 8,149 7,016 Total interest income 29,765 26,039 58,073 51,665 Interest expense Deposits (11,738) (10,459) (22,925) (20,400)Borrowings and debt (98) (463) (186) (1,204) Total interest expense (11,836) (10,922) (23,111) (21,604) Net interest income 17,929 15,117 34,962 30,061 Provision for credit losses on loans (300) (275) (755) (400)Net (provision) benefit for credit losses on unfunded loan commitments (20) (140) 65 (90)Non-interest income 5,359 4,615 10,332 9,188 Non-interest expense (14,710) (13,616) (29,264) (27,306) Income before income taxes 8,258 5,701 15,340 11,453 Provision for income taxes (1,337) (766) (2,428) (1,460)Net income $6,921 $4,935 $12,912 $9,993 Three Months Ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Interest income Loans and leases $25,328 $24,596 $24,584 $24,036 $22,516 Securities and other 4,437 3,712 3,475 3,263 3,523 Total interest income 29,765 28,308 28,059 27,299 26,039 Interest expense Deposits (11,738) (11,187) (11,468) (11,297) (10,459)Borrowings and debt (98) (88) (217) (571) (463) Total interest expense (11,836) (11,275) (11,685) (11,868) (10,922) Net interest income 17,929 17,033 16,374 15,431 15,117 Provision for credit losses on loans (300) (455) (250) (675) (275)Net benefit (provision) for credit losses on unfunded loan commitments (20) 85 85 (135) (140)Non-interest income 5,359 4,973 4,847 4,979 4,615 Non-interest expense (14,710) (14,554) (14,395) (13,840) (13,616) Income before income taxes 8,258 7,082 6,661 5,760 5,701 Provision for income taxes (1,337) (1,091) (826) (793) (766)Net income $6,921 $5,991 $5,835 $4,967 $4,935 FIDELITY D & D BANCORP, INC.Unaudited Condensed Consolidated Balance Sheets(dollars in thousands) At Period End: Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Assets Cash and cash equivalents $165,495 $211,195 $83,353 $120,169 $78,085 Investment securities 545,821 540,960 557,221 559,819 552,495 Restricted investments in bank stock 4,240 4,021 3,961 3,944 3,968 Loans and leases 1,837,477 1,817,509 1,800,856 1,795,548 1,728,509 Allowance for credit losses on loans (19,976) (20,017) (19,666) (19,630) (18,975)Premises and equipment, net 40,097 34,995 35,914 36,057 35,808 Life insurance cash surrender value 58,849 58,458 58,069 57,672 57,278 Goodwill and core deposit intangible 20,364 20,431 20,504 20,576 20,649 Other assets 46,208 43,758 44,404 41,778 42,828 Total assets $2,698,575 $2,711,310 $2,584,616 $2,615,933 $2,500,645 Liabilities Non-interest-bearing deposits $558,074 $555,684 $533,935 $549,710 $527,572 Interest-bearing deposits 1,877,254 1,901,775 1,806,885 1,792,796 1,641,558 Total deposits 2,435,328 2,457,459 2,340,820 2,342,506 2,169,130 Short-term borrowings 10 10 - 25,000 98,120 Secured borrowings 6,134 6,190 6,266 6,323 7,237 Other liabilities 39,191 35,977 33,561 34,843 30,466 Total liabilities 2,480,663 2,499,636 2,380,647 2,408,672 2,304,953 Shareholders' equity 217,912 211,674 203,969 207,261 195,692 Total liabilities and shareholders' equity $2,698,575 $2,711,310 $2,584,616 $2,615,933 $2,500,645 Average Quarterly Balances: Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Assets Cash and cash equivalents $161,316 $97,384 $67,882 $41,991 $58,351 Investment securities 546,149 557,726 560,453 554,578 551,445 Restricted investments in bank stock 4,158 3,973 3,957 3,965 3,983 Loans and leases 1,832,162 1,813,040 1,797,023 1,763,254 1,707,598 Allowance for credit losses on loans (20,357) (20,019) (20,050) (19,323) (19,171)Premises and equipment, net 35,954 35,722 36,065 36,219 35,433 Life insurance cash surrender value 58,697 58,307 57,919 57,525 55,552 Goodwill and core deposit intangible 20,386 20,459 20,529 20,602 20,677 Other assets 42,729 43,177 41,454 41,734 42,960 Total assets $2,681,194 $2,609,769 $2,565,232 $2,500,545 $2,456,828 Liabilities Non-interest-bearing deposits $547,278 $533,286 $538,506 $522,827 $530,048 Interest-bearing deposits 1,878,548 1,826,957 1,769,265 1,702,187 1,670,211 Total deposits 2,425,826 2,360,243 2,307,771 2,225,014 2,200,259 Short-term borrowings 10 22 10,326 37,220 28,477 Secured borrowings 6,162 6,226 6,297 6,429 7,269 Other liabilities 36,050 34,937 34,695 31,999 30,734 Total liabilities 2,468,048 2,401,428 2,359,089 2,300,662 2,266,739 Shareholders' equity 213,146 208,341 206,143 199,883 190,089 Total liabilities and shareholders' equity $2,681,194 $2,609,769 $2,565,232 $2,500,545 $2,456,828 FIDELITY D & D BANCORP, INC.Selected Financial Ratios and Other Financial Data Three Months Ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Selected returns and financial ratios Basic earnings per share $1.20 $1.04 $1.02 $0.87 $0.86 Diluted earnings per share $1.20 $1.03 $1.01 $0.86 $0.86 Dividends per share $0.40 $0.40 $0.40 $0.38 $0.38 Yield on interest-earning assets (FTE)* 4.77% 4.73% 4.68% 4.68% 4.58%Cost of interest-bearing liabilities 2.52% 2.49% 2.60% 2.70% 2.58%Cost of funds 1.95% 1.93% 2.00% 2.08% 1.96%Net interest spread (FTE)* 2.25% 2.24% 2.08% 1.98% 2.00%Net interest margin (FTE)* 2.92% 2.89% 2.78% 2.70% 2.71%Return on average assets 1.04% 0.93% 0.90% 0.79% 0.81%Pre-provision net revenue to average assets* 1.28% 1.16% 1.06% 1.05% 1.00%Return on average equity 13.02% 11.66% 11.26% 9.89% 10.44%Return on average tangible equity* 14.40% 12.93% 12.50% 11.02% 11.72%Efficiency ratio (FTE)* 61.17% 61.67% 65.48% 65.33% 66.47%Expense ratio 1.40% 1.37% 1.48% 1.41% 1.47% Six months ended Jun. 30, 2025 Jun. 30, 2024 Basic earnings per share $2.24 $1.74 Diluted earnings per share $2.23 $1.73 Dividends per share $0.80 $0.76 Yield on interest-earning assets (FTE)* 4.75% 4.55%Cost of interest-bearing liabilities 2.51% 2.54%Cost of funds 1.94% 1.95%Net interest spread (FTE)* 2.24% 2.01%Net interest margin (FTE)* 2.91% 2.70%Return on average assets 0.98% 0.82%Pre-provision net revenue to average assets* 1.22% 0.98%Return on average equity 12.35% 10.57%Return on average tangible equity* 13.68% 11.87%Efficiency ratio (FTE)* 61.42% 67.01%Expense ratio 1.38% 1.49% Other financial data At period end: (dollars in thousands except per share data) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Assets under management $1,030,268 $955,647 $921,994 $942,190 $906,861 Book value per share $37.78 $36.70 $35.56 $36.13 $34.12 Tangible book value per share* $34.25 $33.16 $31.98 $32.55 $30.52 Equity to assets 8.08% 7.81% 7.89% 7.92% 7.83%Tangible common equity ratio* 7.38% 7.11% 7.16% 7.19% 7.06%Allowance for credit losses on loans to: Total loans 1.09% 1.10% 1.09% 1.09% 1.10%Non-accrual loans 6.50x 3.36x 2.68x 2.77x 2.75x Non-accrual loans to total loans 0.17% 0.33% 0.41% 0.39% 0.40%Non-performing assets to total assets 0.13% 0.23% 0.30% 0.29% 0.28%Net charge-offs to average total loans 0.05% 0.02% 0.03% 0.02% 0.03% Capital Adequacy Ratios Total risk-based capital ratio 14.72% 14.74% 14.78% 14.56% 14.69%Common equity tier 1 risk-based capital ratio 13.57% 13.57% 13.60% 13.38% 13.52%Tier 1 risk-based capital ratio 13.57% 13.57% 13.60% 13.38% 13.52%Leverage ratio 9.16% 9.22% 9.22% 9.30% 9.30% * Non-GAAP Financial Measures - see reconciliations below FIDELITY D & D BANCORP, INC.Reconciliations of Non-GAAP Financial Measures to GAAPReconciliations of Non-GAAP Measures to GAAP Three Months Ended (dollars in thousands) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 FTE net interest income (non-GAAP) Interest income (GAAP) $29,765 $28,308 $28,059 $27,299 $26,039 Adjustment to FTE 760 771 764 775 751 Interest income adjusted to FTE (non-GAAP) 30,525 29,079 28,823 28,074 26,790 Interest expense (GAAP) 11,836 11,275 11,685 11,868 10,922 Net interest income adjusted to FTE (non-GAAP) $18,689 $17,804 $17,138 $16,206 $15,868 Efficiency Ratio (non-GAAP) Non-interest expenses (GAAP) $14,710 $14,554 $14,395 $13,840 $13,616 Net interest income (GAAP) 17,929 17,033 16,374 15,431 15,117 Plus: taxable equivalent adjustment 760 771 764 775 751 Non-interest income (GAAP) 5,359 4,973 4,847 4,979 4,615 Plus: Loss on sales of securities - 822 - - - Net interest income (FTE) plus adjusted non-interest income (non-GAAP) $24,048 $23,599 $21,985 $21,185 $20,483 Efficiency ratio (non-GAAP) (1) 61.17% 61.67% 65.47% 65.33% 66.48%(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest income. Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP) Total assets (GAAP) $2,698,575 $2,711,310 $2,584,616 $2,615,933 $2,500,645 Less: Intangible assets (20,364) (20,431) (20,504) (20,576) (20,649)Tangible assets 2,678,211 2,690,879 2,564,112 2,595,357 2,479,996 Total shareholders' equity (GAAP) 217,912 211,674 203,969 207,261 195,692 Less: Intangible assets (20,364) (20,431) (20,504) (20,576) (20,649)Tangible common equity 197,548 191,243 183,465 186,685 175,043 Common shares outstanding, end of period 5,767,490 5,767,500 5,736,252 5,736,025 5,735,728 Tangible Common Book Value per Share $34.25 $33.16 $31.98 $32.55 $30.52 Tangible Common Equity Ratio 7.38% 7.11% 7.16% 7.19% 7.06% Pre-Provision Net Revenue to Average Assets Income before taxes (GAAP) $8,258 $7,082 $6,661 $5,760 $5,701 Plus: Provision for credit losses 320 370 165 810 415 Total pre-provision net revenue (non-GAAP) 8,578 7,452 6,826 6,570 6,116 Total (annualized) (non-GAAP) $34,404 $30,220 $27,157 $26,423 $24,600 Average assets $2,681,194 $2,609,769 $2,565,232 $2,500,545 $2,456,828 Pre-Provision Net Revenue to Average Assets (non-GAAP) 1.28% 1.16% 1.06% 1.05% 1.00% Reconciliations of Non-GAAP Measures to GAAP Six months ended (dollars in thousands) Jun. 30, 2025 Jun. 30, 2024 FTE net interest income (non-GAAP) Interest income (GAAP) $58,073 $51,665 Adjustment to FTE 1,531 1,497 Interest income adjusted to FTE (non-GAAP) 59,604 53,162 Interest expense (GAAP) 23,111 21,604 Net interest income adjusted to FTE (non-GAAP) $36,493 31,558 Efficiency Ratio (non-GAAP) Non-interest expenses (GAAP) $29,264 $27,306 Net interest income (GAAP) 34,962 30,061 Plus: taxable equivalent adjustment 1,531 1,497 Non-interest income (GAAP) 10,332 9,188 Plus: Loss on sales of securities 822 - Net interest income (FTE) plus non-interest income (non-GAAP) $47,647 $40,746 Efficiency ratio (non-GAAP) (1) 61.42% 67.01%(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income. Pre-Provision Net Revenue to Average Assets Income before taxes (GAAP) $15,340 $11,453 Plus: Provision for credit losses 690 490 Total pre-provision net revenue (non-GAAP) $16,030 $11,943 Total (annualized) (non-GAAP) $32,326 $23,951 Average assets $2,645,679 $2,453,998 Pre-Provision Net Revenue to Average Assets (non-GAAP) 1.22% 0.98% Contacts: Daniel J. SantanielloSalvatore R. DeFrancesco, Jr.President and Chief Executive OfficerTreasurer and Chief Financial Officer570-504-8035570-504-8000

Fidelity D & D Bancorp, Inc. Reports Second Quarter 2025 Financial Results

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