Fidelity D & D Bancorp, Inc. Announces 2024 Financial Results

DUNMORE, Pa., Jan. 29, 2025 — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, have reported their unaudited financial results for the periods ending December 31, 2024.

Financial Overview

For the year ending December 31, 2024, Fidelity D & D Bancorp reported a net income of $20.8 million, which translates to $3.60 per diluted share. This marks an increase from the previous year, which had a net income of $18.2 million, or $3.19 per diluted share. The uptick in net income for 2024 represents an increase of $2.6 million, or 14%, primarily driven by a $7.6 million rise in non-interest income compared to 2023. This rise in income was notably influenced by large losses from available-for-sale securities that occurred in 2023.

For the fourth quarter of 2024, the bank's net income stood at $5.8 million, or $1.01 per diluted share, in contrast to $0.5 million, or $0.08 per diluted share, during the same period in 2023. This marked improvement was influenced by a notable $6.5 million loss reported in the fourth quarter of 2023 on the sale of securities and also benefited from a $1.5 million rise in net interest income.

Management Commentary

Dan Santaniello, President and CEO of Fidelity D & D Bancorp, expressed satisfaction with the company’s performance for the fourth quarter. He attributed this success to strategically planned initiatives that led to enhanced net interest margins. Additionally, he acknowledged robust growth in deposits and loans, noting year-end assets reached $2.6 billion, supporting the reported net income of $20.8 million. Santaniello complemented the efforts of their employees and their commitment to serving clients and communities.

Year-to-Date Operating Performance

Net interest income totaled $61.9 million for 2024, slightly down from $62.1 million in 2023. This decrease of $0.2 million was largely attributed to a rise in interest expenses outpacing growth in interest income. The loan portfolio contributed significantly to interest income, increasing by $12.6 million due to a growth in average loan balances and yields. During this period, total interest expense climbed by $13.4 million.

The overall cost of interest-bearing liabilities rose to 2.60% for the year, a notable increase from 1.93% in the previous year. Meanwhile, the FTE yield on interest-earning assets rose to 4.62%, leading to a reduced net interest spread and margin when compared to the prior year. The company also noted a provision for credit losses on loans totaling $1.3 million during 2024, reflecting an improved economic outlook.

Fourth Quarter Performance Detailed

For the fourth quarter, net interest income was reported at $16.4 million, an increase of 10% compared to $14.9 million a year earlier. This gain results from increases in interest income primarily sourced from higher average balances of interest-earning assets alongside improvements in loan portfolio yields. Non-interest expense for this quarter increased to $14.4 million, while total non-interest income rose to $4.8 million.

Balance Sheet Highlights

As of December 31, 2024, Fidelity's total assets amounted to $2.6 billion, marking an increase from $2.5 billion in the previous year, fueled by $114.3 million growth in loans. However, cash and cash equivalents saw a decrease. Notably, total liabilities increased by $67.0 million, accompanied by growth in both money market and time deposits reflecting competitive rate strategies.

Shareholders' Equity and Market Position

Shareholders’ equity reached $204.0 million at year-end, up from $189.5 million prior, bolstered by net income and slight improvements in accumulated comprehensive income. As of the reported date, non-performing assets were noted at $7.8 million, constituting 0.30% of total assets. The company's strong capital position was reflected in its robust tier ratios, indicating adequate regulatory capitalization.

Conclusion

The 2024 financial results from Fidelity D & D Bancorp indicate both resilience and growth amidst challenging economic conditions. The increase in income, continued deposit growth, and effective asset management reflect the bank's strategic objectives and commitment to serving its stakeholders effectively.

Finance, Earnings, Companies