Financial Performance - For the nine months ended September 30, 2025, net income was $20.3 million, or $3.50 diluted earnings per share, a 35% increase compared to $15.0 million, or $2.59 diluted earnings per share for the same period in 2024[136] - Net income for Q3 2025 was $7.3 million, a 48% increase from $5.0 million in Q3 2024, resulting in earnings per diluted share of $1.27 compared to $0.86[148] - For the nine months ended September 30, 2025, net income was $20.3 million, a 35% increase from $15.0 million in the same period of 2024, with earnings per diluted share rising from $2.59 to $3.50[149] - Net interest income for Q3 2025 was $18.4 million, a 19% increase from $15.4 million in Q3 2024, driven by a $3.4 million increase in interest income[151] - For the nine months ended September 30, 2025, net interest income was $53.4 million, up from $45.5 million in the same period of 2024, reflecting a $9.8 million increase in interest income[153] - Total non-interest income for the nine months ended September 30, 2025 was $15.4 million, an increase of $1.2 million, or 9% from $14.2 million for the same period in 2024[172] - Non-interest expenses increased to $43.9 million for the nine months ended September 30, 2025, an increase of $2.8 million, or 7% from $41.1 million for the same period in 2024[174] Asset and Equity Growth - As of September 30, 2025, tangible common book value per share was $36.23, up from $32.55 as of September 30, 2024, primarily due to an increase in retained earnings from net income[137] - The tangible common equity ratio as of September 30, 2025, was 7.69%, up from 7.19% as of September 30, 2024[143] - Shareholders' equity rose to $219,925, up from $198,794, reflecting a growth of 10.6% year-over-year[161] - Total assets as of September 30, 2025, were $2.736 billion, an increase from $2.616 billion as of September 30, 2024[143] - The Company’s total assets increased by $152.1 million to $2.7 billion as of September 30, 2025, driven by a $113.5 million growth in the loans and leases portfolio[180] Loan Portfolio and Credit Quality - The total loan portfolio increased to $1,915.6 million, up from $1,800.7 million at December 31, 2024, representing a growth of 6.4%[204] - The growth in the loan portfolio was attributed to a $130.0 million increase in the commercial portfolio, including significant loans to a single borrower totaling $30.6 million[202] - The allowance for credit losses reflects management's best estimate of expected credit losses, with a formal review conducted quarterly[222] - The total non-performing assets decreased by $4.8 million, or 61%, to $3.02 million as of September 30, 2025, from $7.8 million on December 31, 2024[244] - Non-accrual loans amounted to $2.6 million as of September 30, 2025, down from $7.3 million on December 31, 2024[245] Interest Income and Rate Management - Interest income adjusted to fully-taxable equivalent (FTE) for the nine months ended September 30, 2025, was $91.071 million, compared to $81.235 million for the same period in 2024, reflecting a growth of 12.7%[141] - The FTE yield on interest-earning assets was 4.83% for Q3 2025, up 15 basis points from 4.68% in Q3 2024, while the overall cost of interest-bearing liabilities decreased to 2.55% from 2.70%[152] - The Company's FTE net interest spread increased to 2.28% in Q3 2025, a 30 basis point improvement from 1.98% in Q3 2024[152] - The FTE net interest margin increased to 2.92% for the nine months ended September 30, 2025, up 22 basis points from 2.70% in the same period of 2024[154] - The Company expects to operate in a moderately declining interest rate environment, with anticipated federal funds rate cuts of 25 basis points in December 2025 and an additional 50 basis points by the end of 2026[156] Operational Efficiency - The efficiency ratio for the nine months ended September 30, 2025, improved to 61.00% from 66.44% for the same period in 2024, indicating better cost management[142] - The Company continues to focus on growing its core business of retail and business lending while maintaining strong asset quality and controlling operating expenses[134] - The Company plans to grow its loan portfolio by utilizing excess cash holdings and managing deposit costs to maintain a reasonable spread[156] Deposits and Funding - Total deposits grew by $126.1 million, which was utilized to fund loan growth and maintain excess in interest-bearing cash[180] - As of September 30, 2025, total deposits increased by $126.1 million, or 5%, to $2.5 billion from $2.3 billion at December 31, 2024[259] - Total uninsured deposits were estimated at $961.7 million, or 39% of total deposits, as of September 30, 2025[261] Interest Rate Risk Management - The Company has established procedures and policy guidelines to manage interest rate risk effectively[290] - The Asset/Liability Committee (ALCO) meets quarterly to monitor interest rate risk and ensure compliance with internal policies[291] - Interest rate risk is monitored using static gap analysis, earnings at risk simulation, and economic value at risk simulation[292] - The Company has a derivative policy in place for managing interest rate risks, with quarterly monitoring by the ALCO Committee[304]

Core Insights - Fidelity Bank has appointed Charles Hangen as Senior Vice President and Chief Risk Officer, emphasizing the importance of risk management in the current financial landscape [1][2][3] Company Overview - Fidelity Bank operates 21 full-service offices across Lackawanna, Luzerne, Lehigh, and Northampton Counties, along with a limited production commercial office and a Wealth Management Office [5] - The bank aims to exceed client expectations through a unique banking experience and has contributed over 5,960 hours of volunteer time and over $1.5 million in donations to non-profit organizations in 2024 [5] Leadership and Expertise - Charles Hangen brings extensive expertise in risk management and strategic leadership, with a strong background in regulatory frameworks [2][3] - Hangen's role will focus on enhancing the enterprise risk management framework and adapting policies to meet evolving financial challenges [2][3] Community Engagement - Hangen is actively involved in his community, serving as an assistant coach for local sports teams, reflecting the bank's commitment to community service [4]

Core Points - Fidelity D & D Bancorp, Inc. announced a fourth quarter dividend of $0.43 per share, representing a 7.5% increase from the previous dividend of $0.40 per share [1][2] - This marks the eleventh consecutive year of dividend growth and more than a twofold increase over the past decade, reflecting the company's commitment to long-term value creation for shareholders [2] - The dividend is payable on December 10, 2025, to shareholders of record as of November 14, 2025 [2] Company Overview - Fidelity D & D Bancorp, Inc. operates through The Fidelity Deposit and Discount Bank, serving Lackawanna, Luzerne, and Northampton Counties with 21 full-service community banking offices [3] - The company also offers digital banking services, including online banking and mobile app functionalities, enhancing customer experience [3]

Financial Performance - Net income for Q3 2025 was $7.3 million, a 48% increase from $5.0 million in Q3 2024, resulting in $1.27 per diluted share[3] - Year-to-date net income reached $20.3 million, up 35% from $15.0 million for the same period in 2024, with earnings of $3.50 per diluted share[4] - Net income for the nine months ended September 30, 2025, was $20,258 thousand, up 35.1% from $14,960 thousand for the same period in 2024[32] - Income before taxes (GAAP) for the nine months ended September 30, 2025, was $23,932 thousand, up from $17,212 thousand for the same period in 2024, a 39.56% increase[39] Net Interest Income - Net interest income for Q3 2025 was $18.4 million, a 19% increase from $15.4 million in Q3 2024, driven by a $3.0 million rise in interest income[6] - Net interest income for the three months ended September 30, 2025, was $18,429 thousand, an increase of 19.5% compared to $15,431 thousand for the same period in 2024[32] - Net interest income (GAAP) for the nine months ended September 30, 2025, was $53,391 thousand, up from $45,491 thousand in 2024, reflecting a 17.38% increase[39] Non-Interest Income - Total non-interest income for Q3 2025 was $5.1 million, a 3% increase from $5.0 million in Q3 2024, primarily due to higher trust and interchange fees[9] - Non-interest income for the nine months ended September 30, 2025, was $15,437 thousand, reflecting a growth of 8.9% from $14,167 thousand in the same period of 2024[32] Assets and Equity - Total assets increased to $2.7 billion as of September 30, 2025, up $152.1 million from December 31, 2024, driven by loan portfolio growth[18] - Total assets increased to $2,736,750 thousand as of September 30, 2025, up from $2,584,616 thousand at December 31, 2024, representing a growth of 5.9%[30] - Shareholders' equity increased by $25.3 million, or 12%, to $229.3 million at September 30, 2025, supported by higher retained earnings[20] - Shareholders' equity increased to $229,247 thousand as of September 30, 2025, up from $203,969 thousand at December 31, 2024, representing an increase of 12.4%[30] Credit Quality - Total non-performing assets decreased to $3.0 million, or 0.11% of total assets, from $7.8 million, or 0.30% of total assets, at December 31, 2024[21] - The provision for credit losses on loans was $955 thousand for the nine months ended September 30, 2025, down from $1.1 million for the same period in 2024, reflecting improved asset quality[14] - The company reported a provision for credit losses on loans of $200 thousand for the three months ended September 30, 2025, down from $675 thousand in the same period of 2024[32] - The allowance for credit losses on loans was $20,218 thousand as of September 30, 2025, compared to $19,666 thousand at December 31, 2024, indicating a slight increase in reserves[30] Operational Efficiency - The efficiency ratio (FTE) improved to 60.17% for the quarter ended September 30, 2025, down from 61.17% in the previous quarter, showing enhanced operational efficiency[36] - Efficiency ratio (non-GAAP) improved to 60.17% in Q3 2025 from 61.17% in Q2 2025, indicating enhanced operational efficiency[39] Deposits - Total deposits rose to $2,466,913 thousand as of September 30, 2025, compared to $2,340,820 thousand at December 31, 2024, marking an increase of 5.4%[30] - Total deposits reached $2,466,913 thousand, an increase from $2,435,328 thousand in the previous quarter, marking a growth of 1.3%[34] Economic Outlook - The company anticipates potential impacts from economic conditions, including inflation and interest rate volatility, which may affect future performance[26]

Core Insights - Fidelity D & D Bancorp, Inc. reported strong financial results for the third quarter and year-to-date periods, with net income increasing significantly compared to the previous year [4][2][3]. Financial Performance - For the quarter ended September 30, 2025, net income was $7.3 million, or $1.27 per diluted share, a 48% increase from $5.0 million, or $0.86 per diluted share, in the same quarter of 2024 [2][4]. - Year-to-date net income for the nine months ended September 30, 2025, was $20.3 million, or $3.50 per diluted share, compared to $15.0 million, or $2.59 per diluted share, for the same period in 2024, marking a 35% increase [3][4]. Revenue Growth - The increase in net income for the third quarter was primarily driven by a $3.0 million increase in net interest income and a $0.5 million decrease in provision for credit losses [2][4]. - For the nine months ended September 30, 2025, net interest income rose by $7.9 million, attributed to a $9.8 million increase in interest income [3][11]. Interest Income and Expenses - Net interest income for the third quarter of 2025 was $18.4 million, a 19% increase from $15.4 million in the same quarter of 2024 [5][11]. - The overall cost of interest-bearing liabilities decreased to 2.55% for the third quarter of 2025, down from 2.70% in the same quarter of 2024 [6][12]. Asset Quality - Total non-performing assets decreased to $3.0 million, or 0.11% of total assets, as of September 30, 2025, compared to $7.8 million, or 0.30% of total assets, at December 31, 2024 [21]. - The provision for credit losses on loans was $200 thousand for the third quarter of 2025, down from $675 thousand in the same quarter of 2024, reflecting improved asset quality [7][13]. Balance Sheet Highlights - Total assets increased to $2.7 billion as of September 30, 2025, up by $152.1 million from December 31, 2024, driven by growth in loans and leases [18][20]. - Shareholders' equity rose to $229.3 million, a 12% increase from $204.0 million at December 31, 2024, supported by retained earnings from net income [20][18]. Non-Interest Income and Expenses - Total non-interest income for the third quarter of 2025 was $5.1 million, a slight increase of 3% from $5.0 million in the same quarter of 2024 [8][14]. - Non-interest expenses increased by $0.8 million, or 6%, to $14.6 million for the third quarter of 2025, primarily due to higher salaries and benefits [9][15].

Core Viewpoint - Fidelity D & D Bancorp, Inc. announces the retirement of Director Richard Hotchkiss effective September 16, 2025, highlighting his significant contributions to the company during his tenure [1][5]. Company Overview - Fidelity D & D Bancorp, Inc. is the parent company of The Fidelity Deposit and Discount Bank, a community bank headquartered in Dunmore, PA, and operates 21 full-service offices across several counties [1][6]. - The bank offers a range of services including personal and commercial banking products, wealth management, and digital banking options [6]. Director's Background - Richard Hotchkiss joined the Fidelity Bank Board of Directors on May 5, 2020, following a merger and has held various leadership roles, including Chair of the Credit Administration Committee [2][3]. - Prior to his role at Fidelity Bank, he had a long career in administration and internal affairs at MNB Corporation and Merchants Bank of Bangor, where he was elected Chairman of the Board in 1997 [3]. Leadership Acknowledgment - The President & CEO of Fidelity Bank, Daniel J. Santaniello, expressed gratitude for Hotchkiss's leadership and the lasting impact he made on the organization [5]. - The Chairman of the Board, Brian J. Cali, acknowledged Hotchkiss's commitment to shaping the bank's governance and organizational structure [5]. Community Engagement - Fidelity Bank emphasizes its commitment to the community, having provided over 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations in 2024 [6].

Here's the structured report outline in Markdown format, following all your requirements: PART I – Financial Information This section provides the unaudited financial information for Fidelity D & D Bancorp, Inc. [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements and related notes for Fidelity D & D Bancorp, Inc. for periods ended June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position at specific dates, presenting assets, liabilities, and equity Consolidated Balance Sheets (dollars in thousands) | (dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Executive Summary & Performance Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Performance%20Highlights) Fidelity D & D Bancorp, Inc. reports strong Q2 and year-to-date 2025 financial performance, with significant growth in net income and EPS [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Financial%20Highlights) Q2 2025 net income rose 40% to $6.9 million, with diluted EPS at $1.20, driven by increased net interest and non-interest income Q2 2025 Financial Performance Summary | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--------------------- | :------ | :------ | :---------- | :--------- | | Net income | $6.9 M | $4.9 M | $2.0 M | 40% | | Diluted EPS | $1.20 | $0.86 | $0.34 | 39.5% | - The increase in net income was primarily driven by a **$2.8 million** increase in net interest income and a **$0.8 million** increase in non-interest income[3](index=3&type=chunk) - Partially offsetting factors included a **$1.1 million** increase in non-interest expense and a **$0.6 million** increase in the provision for income tax[3](index=3&type=chunk) [Year-to-Date 2025 Financial Highlights](index=1&type=section&id=1.2%20Year-to-Date%202025%20Financial%20Highlights) Year-to-date 2025 net income increased 29% to $12.9 million, with diluted EPS at $2.23, reflecting strong interest and non-interest income growth Year-to-Date 2025 Financial Performance Summary | Metric | YTD 2025 | YTD 2024 | Change ($M) | Change (%) | | :--------------------- | :------- | :------- | :---------- | :--------- | | Net income | $12.9 M | $10.0 M | $2.9 M | 29% | | Diluted EPS | $2.23 | $1.73 | $0.50 | 28.9% | - The year-to-date net income increase stemmed from a **$4.9 million** increase in net interest income and a **$1.1 million** increase in non-interest income[4](index=4&type=chunk) - These gains were partially offset by a **$2.0 million** increase in non-interest expense and a **$1.0 million** increase in the provision for income tax[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=1.3%20CEO%20Commentary) CEO Daniel J. Santaniello lauded strong Q2 and YTD performance, crediting disciplined loan growth, enhanced yields, and robust capital position - 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**[5](index=5&type=chunk) - Performance was driven by a **19%** increase in net interest income, reflecting disciplined loan portfolio expansion and enhanced yields, as well as a **16%** rise in non-interest income[5](index=5&type=chunk) - Year-to-date, net income grew **29%** to **$12.9 million**, supported by a strong relationship-based deposit strategy and prudent expense management[6](index=6&type=chunk) Shareholders' equity increased **7%**, strengthening the capital position for future growth[6](index=6&type=chunk) [Consolidated Second Quarter Operating Results](index=1&type=section&id=Consolidated%20Second%20Quarter%20Operating%20Results) This section details Fidelity D & D Bancorp's Q2 2025 operating results, covering net interest income, credit loss provisions, and non-interest items [Net Interest Income](index=1&type=section&id=2.1%20Net%20Interest%20Income) Q2 2025 net interest income grew 19% to $17.9 million, driven by higher interest income from increased assets and improved FTE yield Q2 Net Interest Income Performance | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | Change (%) | | :---------------------- | :----------- | :----------- | :---------- | :--------- | | Net interest income | $17.9 | $15.1 | $2.8 | 19% | | Interest income | $29.8 | $26.0 | $3.7 | 14.2% | | Interest expense | $11.8 | $10.9 | $0.9 | 8.3% | - The increase in interest income was primarily due to a **$213.6 million** increase in the average balance of interest-earning assets and a **19 basis point** increase in FTE yield[8](index=8&type=chunk) - FTE net interest margin increased to **2.92%** for Q2 2025 from **2.71%** for Q2 2024, mainly driven by growth in higher yielding taxable commercial loans[9](index=9&type=chunk) [Provision for Credit Losses](index=2&type=section&id=2.2%20Provision%20for%20Credit%20Losses) Q2 2025 loan loss provision increased to $300 thousand due to higher charge-offs, while unfunded commitment provision decreased Q2 Provision for Credit Losses | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change ($ thousands) | | :-------------------------------------- | :-------------------- | :-------------------- | :------------------- | | Provision for credit losses on loans | $300 | $275 | $25 | | Provision for unfunded commitments | $20 | $140 | ($120) | - The increase in loan loss provision was due to **$155 thousand** in higher net charge-offs and a higher average total loan balance[10](index=10&type=chunk) - The decrease in provision for unfunded commitments was due to lower levels of unfunded commitments during the quarter, specifically commercial construction commitments, due to increased utilization[10](index=10&type=chunk) [Non-Interest Income](index=2&type=section&id=2.3%20Non-Interest%20Income) Total non-interest income for Q2 2025 rose 16% to $5.4 million, driven by higher trust fees, BOLI benefits, and service charges Q2 Non-Interest Income Performance | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | Change (%) | | :-------------------- | :----------- | :----------- | :---------- | :--------- | | Total non-interest income | $5.4 | $4.6 | $0.8 | 16% | - Key contributors to the increase included **$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[11](index=11&type=chunk) [Non-Interest Expenses](index=2&type=section&id=2.4%20Non-Interest%20Expenses) Non-interest expenses increased 8% to $14.7 million in Q2 2025, primarily due to higher salaries, premises, and advertising costs Q2 Non-Interest Expenses | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | Change (%) | | :------------------ | :----------- | :----------- | :---------- | :--------- | | Non-interest expenses | $14.7 | $13.6 | $1.1 | 8% | - Primary increases were in salaries and benefits expense (**$0.8 million**), premises and equipment expense (**$0.2 million**), and advertising expense (**$0.2 million**)[12](index=12&type=chunk) - These increases were partially offset by a **$0.2 million** decrease in professional services[12](index=12&type=chunk) [Provision for Income Taxes](index=3&type=section&id=2.5%20Provision%20for%20Income%20Taxes) Q2 2025 income tax provision increased by $0.6 million, directly correlating with a $2.6 million rise in pre-tax income - Provision for income taxes increased by **$0.6 million** in Q2 2025 compared to Q2 2024[13](index=13&type=chunk) - This increase was primarily due to a **$2.6 million** increase in income before taxes[13](index=13&type=chunk) [Consolidated Year-To-Date Operating Results](index=3&type=section&id=Consolidated%20Year-To-Date%20Operating%20Results) This section details Fidelity D & D Bancorp's year-to-date 2025 operating results, covering key income and expense components [Net Interest Income](index=3&type=section&id=3.1%20Net%20Interest%20Income) Year-to-date net interest income increased $4.9 million to $35.0 million, driven by higher interest income and improved FTE yield Year-to-Date Net Interest Income Performance | Metric | YTD 2025 ($M) | YTD 2024 ($M) | Change ($M) | Change (%) | | :---------------------- | :------------ | :------------ | :---------- | :--------- | | Net interest income | $35.0 | $30.1 | $4.9 | 16.3% | | Interest income | $58.1 | $51.7 | $6.4 | 12.4% | | Interest expense | $23.1 | $21.6 | $1.5 | 6.9% | - Interest income growth was primarily due to a **$181.0 million** increase in average interest-earning assets and a **20 basis point** increase in FTE yield[14](index=14&type=chunk) - FTE net interest margin increased by **21 basis points** to **2.91%** for YTD 2025, as yields earned on loans and leases outpaced rates paid on interest-bearing deposits[15](index=15&type=chunk) [Provision for Credit Losses](index=3&type=section&id=3.2%20Provision%20for%20Credit%20Losses) Year-to-date loan loss provision rose to $755 thousand due to higher charge-offs, while unfunded commitment provision became a net benefit Year-to-Date Provision for Credit Losses | Metric | YTD 2025 ($ thousands) | YTD 2024 ($ thousands) | Change ($ thousands) | | :-------------------------------------- | :--------------------- | :--------------------- | :------------------- | | Provision for credit losses on loans | $755 | $400 | $355 | | Provision for unfunded commitments | ($65) (net benefit) | $90 | ($155) | - The increase in loan loss provision was due to **$215 thousand** in higher net charge-offs and a higher average total loan balance[16](index=16&type=chunk) - The decrease in provision for unfunded commitments was due to lower growth in unfunded commitments from increased utilization, specifically commercial construction commitments[16](index=16&type=chunk) [Non-Interest Income](index=3&type=section&id=3.3%20Non-Interest%20Income) Year-to-date non-interest income increased 12% to $10.3 million, driven by higher fees and a BOLI death benefit, despite securities losses Year-to-Date Non-Interest Income Performance | Metric | YTD 2025 ($M) | YTD 2024 ($M) | Change ($M) | Change (%) | | :-------------------- | :------------ | :------------ | :---------- | :--------- | | Total non-interest income | $10.3 | $9.2 | $1.1 | 12% | - Key drivers included **$0.3 million** higher fees from trust fiduciary activities, **$0.2 million** more in interchange fees, a **$0.2 million** BOLI death benefit, and an increase of **$0.2 million** in service charges on commercial loans[17](index=17&type=chunk) - 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[17](index=17&type=chunk) [Non-Interest Expenses](index=3&type=section&id=3.4%20Non-Interest%20Expenses) Year-to-date non-interest expenses rose 7% to $29.3 million, primarily due to increased salaries, advertising, and premises costs Year-to-Date Non-Interest Expenses | Metric | YTD 2025 ($M) | YTD 2024 ($M) | Change ($M) | Change (%) | | :------------------ | :------------ | :------------ | :---------- | :--------- | | Non-interest expenses | $29.3 | $27.3 | $2.0 | 7% | - Salaries and benefits expense increased **$1.3 million** due to an increase in bankers, group insurance costs, and banker incentives[18](index=18&type=chunk) - Other increases included **$0.5 million** in advertising and marketing expenses and **$0.5 million** in premises and equipment expense[18](index=18&type=chunk) - These increases were partially offset by **$0.3 million** less in professional services expense[18](index=18&type=chunk) [Provision for Income Taxes](index=3&type=section&id=3.5%20Provision%20for%20Income%20Taxes) Year-to-date income tax provision increased $1.0 million, driven by higher pre-tax income and reduced tax credits - Provision for income taxes increased by **$1.0 million** during YTD 2025 compared to YTD 2024[19](index=19&type=chunk) - This was primarily due to a **$3.9 million** increase in income before taxes and **$0.2 million** less in tax credits[19](index=19&type=chunk) [Consolidated Balance Sheet & Asset Quality Overview](index=3&type=section&id=Consolidated%20Balance%20Sheet%20%26%20Asset%20Quality%20Overview) This section provides an overview of Fidelity D & D Bancorp's balance sheet, capital adequacy, and asset quality as of June 30, 2025 [Balance Sheet Changes](index=3&type=section&id=4.1%20Balance%20Sheet%20Changes) Total assets grew $114.0 million to $2.7 billion, funded by a $100.0 million increase in liabilities, primarily from deposit growth Balance Sheet Summary at Period End | Metric | June 30, 2025 ($B) | Dec 31, 2024 ($B) | Change ($M) | Change (%) | | :-------------------- | :----------------- | :---------------- | :---------- | :--------- | | Total assets | $2.7 | $2.6 | $114.0 | 4.4% | | Total liabilities | $2.48 | $2.38 | $100.0 | 4.2% | | Total deposits | $2.44 | $2.34 | $94.5 | 4.0% | - Asset growth resulted from **$82.1 million** in cash and cash equivalents and **$37.9 million** in the loans and leases portfolio[20](index=20&type=chunk) - Deposit growth of **$94.5 million** was utilized to fund loan growth and increase interest-bearing cash balances, with increases across money market, interest-bearing checking, time deposits, savings, and non-interest-bearing checking accounts[21](index=21&type=chunk)[22](index=22&type=chunk) [Shareholders' Equity and Capital Adequacy](index=4&type=section&id=4.2%20Shareholders%27%20Equity%20and%20Capital%20Adequacy) Shareholders' equity increased 7% to $217.9 million, driven by retained earnings and improved AOCI, maintaining a strong capital position Shareholders' Equity Summary | Metric | June 30, 2025 ($M) | Dec 31, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------- | :----------------- | :---------------- | :---------- | :--------- | | Shareholders' equity | $217.9 | $204.0 | $13.9 | 7% | - The increase was caused by **$8.3 million** higher retained earnings from net income and a **$4.9 million** (after tax) improvement in accumulated other comprehensive income, partially offset by **$4.7 million** in cash dividends[23](index=23&type=chunk) - The Company remains well capitalized, with **Tier 1 capital at 9.16%** of total average assets, **total risk-based capital at 14.72%**, and **Tier 1 risk-based capital at 13.57%** as of June 30, 2025[23](index=23&type=chunk) [Asset Quality](index=5&type=section&id=4.3%20Asset%20Quality) Asset quality improved significantly, with non-performing assets decreasing to 0.13% of total assets, despite a slight rise in net charge-offs Asset Quality Ratios | Metric | June 30, 2025 | Dec 31, 2024 | Change (bps) | | :---------------------------------- | :------------ | :----------- | :----------- | | Total non-performing assets to total assets | 0.13% | 0.30% | -17 | | Past due and non-accrual loans to total loans | 0.41% | 0.71% | -30 | | Net charge-offs to average total loans | 0.05% | 0.03% | +2 | [Company Information](index=5&type=section&id=Company%20Information) This section provides an overview of Fidelity D & D Bancorp, Inc., its operations, services, and community engagement [About Fidelity D & D Bancorp, Inc.](index=5&type=section&id=5.1%20About%20Fidelity%20D%20%26%20D%20Bancorp%2C%20Inc.) Fidelity D & D Bancorp, Inc. operates 21 full-service offices, offering comprehensive banking and wealth management services, with strong community involvement - Operates **21 full-service offices** across Lackawanna, Luzerne, Lehigh, and Northampton Counties, and a Wealth Management Office in Schuylkill County[25](index=25&type=chunk) - Provides digital banking (online, mobile app, Client Care Center), Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products[25](index=25&type=chunk) - Demonstrated community commitment in 2024 with over **5,960 hours** of volunteer time and over **$1.3 million** in donations to non-profit organizations[25](index=25&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the Company's use of non-GAAP financial measures to provide supplementary insights into its operating performance [Explanation and Use](index=5&type=section&id=6.1%20Explanation%20and%20Use) Non-GAAP measures, like FTE adjustments, provide supplementary insights into operating performance and trends, used internally but not replacing GAAP - Non-GAAP financial measures are used to provide information useful in understanding operating performance and trends, and to facilitate comparisons with other financial institutions[26](index=26&type=chunk) - Management uses these measures internally to assess and better understand underlying business performance and trends related to core business activities[26](index=26&type=chunk) - Interest income is adjusted to a fully-taxable equivalent (FTE) basis, using a **21%** corporate federal tax rate, to allow for uniform comparison among yields on interest-earning assets[27](index=27&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking statements disclaimer, detailing various risks and uncertainties that could impact actual financial results [Disclaimer and Risk Factors](index=5&type=section&id=7.1%20Disclaimer%20and%20Risk%20Factors) Forward-looking statements are subject to known and unknown risks, including economic conditions, interest rate volatility, and regulatory changes - The press release contains forward-looking statements that may involve known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially[28](index=28&type=chunk) - Risk factors include local, regional, and national economic conditions, inflation, interest rate volatility, securities markets and monetary fluctuations, regulatory changes (e.g., Basel III), governmental policies, litigation, accounting policy changes, and competition[29](index=29&type=chunk) - Additional risks include technological changes, cybersecurity breaches, acquisitions, assumptions underlying loan loss reserves, acts of war or terrorism, and the potential for incorrect analyses or unsuccessful strategies[32](index=32&type=chunk) [Financial Statements and Supplementary Data](index=7&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section presents unaudited consolidated financial statements, including balance sheets, income statements, key ratios, and non-GAAP reconciliations [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=8.1%20Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Unaudited condensed consolidated balance sheets detail financial positions, assets, liabilities, and equity at period ends and average year-to-date Condensed Consolidated Balance Sheets (Period End) **At Period End (dollars in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $165,495 | $83,353 | | Investment securities | $545,821 | $557,221 | | Loans and leases | $1,837,477 | $1,800,856 | | Total assets | $2,698,575 | $2,584,616 | | 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 | | Total liabilities | $2,480,663 | $2,380,647 | | Shareholders' equity | $217,912 | $203,969 | Average Year-to-Date Balances **Average Year-To-Date Balances (dollars in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total assets | $2,645,679 | $2,493,659 | | Total deposits | $2,393,215 | $2,225,354 | | Shareholders' equity | $210,757 | $196,558 | [Unaudited Condensed Consolidated Statements of Income](index=8&type=section&id=8.2%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) Unaudited condensed consolidated income statements detail revenues, expenses, and net income for quarterly and year-to-date periods Condensed Consolidated Statements of Income (Three Months Ended June 30) **Three Months Ended June 30 (dollars in thousands):** | Metric | Jun. 30, 2025 | Jun. 30, 2024 | | :-------------------------------------- | :------------ | :------------ | | Total interest income | $29,765 | $26,039 | | Total interest expense | ($11,836) | ($10,922) | | Net interest income | $17,929 | $15,117 | | Provision for credit losses on loans | ($300) | ($275) | | Non-interest income | $5,359 | $4,615 | | Non-interest expense | ($14,710) | ($13,616) | | Net income | $6,921 | $4,935 | Condensed Consolidated Statements of Income (Six Months Ended June 30) **Six Months Ended June 30 (dollars in thousands):** | Metric | Jun. 30, 2025 | Jun. 30, 2024 | | :-------------------------------------- | :------------ | :------------ | | Total interest income | $58,073 | $51,665 | | Total interest expense | ($23,111) | ($21,604) | | Net interest income | $34,962 | $30,061 | | Provision for credit losses on loans | ($755) | ($400) | | Non-interest income | $10,332 | $9,188 | | Non-interest expense | ($29,264) | ($27,306) | | Net income | $12,912 | $9,993 | [Selected Financial Ratios and Other Financial Data](index=10&type=section&id=8.3%20Selected%20Financial%20Ratios%20and%20Other%20Financial%20Data) This section presents key financial ratios and performance indicators, including EPS, profitability, efficiency, and asset quality metrics Selected Returns and Financial Ratios (Three Months Ended June 30) **Selected Returns and Financial Ratios (Three Months Ended June 30):** | Metric | Jun. 30, 2025 | Jun. 30, 2024 | | :---------------------------------- | :------------ | :------------ | | Diluted earnings per share | $1.20 | $0.86 | | Dividends per share | $0.40 | $0.38 | | Yield on interest-earning assets (FTE)* | 4.77% | 4.58% | | Cost of interest-bearing liabilities | 2.52% | 2.58% | | Net interest margin (FTE)* | 2.92% | 2.71% | | Return on average assets | 1.04% | 0.81% | | Return on average equity | 13.02% | 10.44% | | Efficiency ratio (FTE)* | 61.17% | 66.47% | Selected Returns and Financial Ratios (Six Months Ended June 30) **Selected Returns and Financial Ratios (Six Months Ended June 30):** | Metric | Jun. 30, 2025 | Jun. 30, 2024 | | :---------------------------------- | :------------ | :------------ | | 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% | | Net interest margin (FTE)* | 2.91% | 2.70% | | Return on average assets | 0.98% | 0.82% | | Return on average equity | 12.35% | 10.57% | | Efficiency ratio (FTE)* | 61.42% | 67.01% | Other Financial Data (Period End) **Other Financial Data (At period end, dollars in thousands except per share data):** | Metric | Jun. 30, 2025 | Dec. 31, 2024 | | :-------------------------------------- | :------------ | :------------ | | Tangible book value per share* | $34.25 | $31.98 | | Tangible common equity ratio* | 7.38% | 7.16% | | Non-performing assets to total assets | 0.13% | 0.30% | | Total risk-based capital ratio | 14.72% | 14.78% | | Leverage ratio | 9.16% | 9.22% | [Reconciliations of Non-GAAP Financial Measures to GAAP](index=12&type=section&id=8.4%20Reconciliations%20of%20Non-GAAP%20Financial%20Measures%20to%20GAAP) Detailed reconciliations of non-GAAP financial measures to GAAP are provided for transparency, covering FTE net interest income and efficiency ratio - Detailed reconciliations are provided for FTE net interest income, efficiency ratio, tangible book value per share/tangible common equity ratio, and pre-provision net revenue to average assets[43](index=43&type=chunk) - These reconciliations show the adjustments from GAAP interest income to FTE interest income, and how non-interest expenses are divided by adjusted net interest income (FTE) plus adjusted non-interest income for the efficiency ratio calculation[43](index=43&type=chunk)

Core Insights - Fidelity D & D Bancorp, Inc. reported strong financial results for the second quarter and first half of 2025, with net income increasing by 40% year-over-year for the quarter and 29% for the year-to-date period [2][3][4]. Financial Performance - For the quarter ended June 30, 2025, net income 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 same quarter in 2024, marking a $2.0 million increase [2][4]. - Year-to-date net income for the six months ended June 30, 2025, was $12.9 million, or $2.23 diluted earnings per share, up from $10.0 million, or $1.73 diluted earnings per share, for the same period in 2024, reflecting a $2.9 million increase [3][5]. Revenue Breakdown - The increase in net income for the second quarter was primarily driven by a $2.8 million increase in net interest income and a $0.8 million increase in non-interest income [2][4]. - For the six months ended June 30, 2025, net interest income rose by $4.9 million, attributed to a $6.4 million increase in interest income, driven by a $181.0 million increase in the average balance of interest-earning assets [13][14]. Expense Management - Non-interest expenses increased by $1.1 million, or 8%, for the second quarter of 2025, primarily due to higher salaries and benefits [11][17]. - Year-to-date non-interest expenses rose to $29.3 million, an increase of $2.0 million, or 7%, compared to the same period in 2024 [17]. Asset Quality - Total non-performing assets decreased to $3.5 million, or 0.13% of total assets, at June 30, 2025, down from $7.8 million, or 0.30% of total assets, at December 31, 2024 [22]. - The provision for credit losses on loans was $755 thousand for the six months ended June 30, 2025, compared to $400 thousand for the same period in 2024 [15]. Balance Sheet Highlights - As of June 30, 2025, total assets were $2.7 billion, an increase of $114.0 million from December 31, 2024, driven by growth in cash and cash equivalents and the loans and leases portfolio [19][21]. - Shareholders' equity increased by $13.9 million, or 7%, to $217.9 million at June 30, 2025, from $204.0 million at December 31, 2024 [21]. Capital Position - The company remains well-capitalized, with Tier 1 capital at 9.16% of total average assets and total risk-based capital at 14.72% of risk-weighted assets as of June 30, 2025 [21].

Core Points - Fidelity D & D Bancorp, Inc. has declared a third quarter dividend of $0.40 per share, payable on September 10, 2025, to shareholders of record as of August 15, 2025 [1] Company Overview - Fidelity D & D Bancorp, Inc. operates through The Fidelity Deposit and Discount Bank, serving Lackawanna, Luzerne, Northampton, and Lehigh Counties with 21 full-service community banking offices [2] - The company also offers a digital banking experience through its Online Banking and Fidelity Mobile Banking app [2] Investor Relations - Additional information can be found on the company's investor relations website at www.bankatfidelity.com [3]