Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________to______________________ Commission file number: 001-38229 FIDELITY D & D BANCORP, INC. STATE OF INCORPORATION: IRS EMPLOYER IDENTIFICATI ...

DUNMORE, Pa., May 06, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC), parent company of The Fidelity Deposit and Discount Bank, announce their declaration of the Company’s second quarter dividend of $0.40 per share. The dividend is payable June 10, 2025 to shareholders of record at the close of business on May 20, 2025. Fidelity D & D Bancorp, Inc. serves Lackawanna, Luzerne, Northampton and Lehigh Counties through The Fidelity Deposit and Discount Bank’s 21 f ...

Financial Performance - Net income for Q1 2025 was $6.0 million, or $1.03 diluted earnings per share, an 18% increase from $5.1 million, or $0.88 per share in Q1 2024 [3]. - Net income for the three months ended March 31, 2025, was $5,991 thousand, up 18.5% from $5,057 thousand for the same period in 2024 [25]. - Basic earnings per share rose to $1.04 for the three months ended March 31, 2025, compared to $1.02 for the previous quarter, reflecting a 1.96% increase [29]. - Income before taxes (GAAP) for Q1 2025 was $7,082,000, compared to $6,661,000 in Q4 2024, marking an increase of 6.30% [32]. Assets and Equity - Total assets reached $2.7 billion as of March 31, 2025, an increase of $126.7 million from December 31, 2024 [11]. - Total assets increased to $2,711,310 thousand as of March 31, 2025, up from $2,584,616 thousand at December 31, 2024, representing a growth of 4.9% [23]. - Shareholders' equity increased by $7.7 million, or 4%, to $211.7 million at March 31, 2025, from $204.0 million at December 31, 2024 [13]. - Shareholders' equity increased to $211,674 thousand as of March 31, 2025, up from $203,969 thousand at December 31, 2024, reflecting a growth of 3.4% [23]. Income and Expenses - Net interest income was $17.0 million for Q1 2025, a 14% increase from $14.9 million in Q1 2024, driven by a $2.7 million increase in interest income [5]. - Total non-interest income rose by $0.4 million, or 9%, to $5.0 million in Q1 2025 compared to $4.6 million in Q1 2024 [8]. - Non-interest expenses increased by $0.9 million, or 6%, to $14.6 million in Q1 2025 from $13.7 million in Q1 2024 [9]. - Total interest expense for the three months ended March 31, 2025, was $11,275 thousand, compared to $10,682 thousand for the same period in 2024, an increase of 5.5% [25]. Credit Quality - The provision for credit losses on loans was $455 thousand in Q1 2025, compared to $125 thousand in Q1 2024, reflecting higher loan growth and net charge-offs [7]. - The allowance for credit losses on loans was $20,019 thousand as of March 31, 2025, compared to $19,391 thousand at December 31, 2024, indicating a slight increase in provisions [23]. - Total non-performing assets decreased to $6.1 million, or 0.23% of total assets, down from $7.8 million, or 0.30% at December 31, 2024 [14]. - Non-performing assets to total assets decreased to 0.23% as of March 31, 2025, down from 0.30% at December 31, 2024, reflecting improved asset quality [30]. Capital Ratios - The company maintains a Tier 1 capital ratio of 9.22% of total average assets as of March 31, 2025, indicating strong capitalization [13]. - The total risk-based capital ratio remained stable at 14.74% as of March 31, 2025, compared to 14.78% in the previous quarter, indicating strong capital adequacy [30]. - Tangible common equity ratio was 7.11% in Q1 2025, slightly down from 7.16% in Q4 2024, indicating a minor decrease in capital efficiency [32]. Efficiency and Management - The efficiency ratio (FTE) improved to 61.67% in Q1 2025, down from 65.48% in Q4 2024, indicating better cost management [29]. - Efficiency ratio (non-GAAP) improved to 61.67% in Q1 2025 from 65.47% in Q4 2024, showing a positive trend in operational efficiency [32]. - Total pre-provision net revenue (non-GAAP) reached $7,452,000 in Q1 2025, up from $6,826,000 in Q4 2024, a growth of 9.15% [32]. Deposits and Loans - Total deposits rose to $2,457,459 thousand as of March 31, 2025, compared to $2,340,820 thousand at December 31, 2024, reflecting an increase of 5.0% [23]. - Interest income from loans and leases increased to $24,596 thousand for the three months ended March 31, 2025, compared to $22,133 thousand for the same period in 2024, marking a growth of 11.1% [25].

Core Insights - Fidelity D & D Bancorp, Inc. reported a net income of $6.0 million for Q1 2025, an increase of 18% from $5.1 million in Q1 2024, driven by higher net interest income and non-interest income [2][3][4] - The company achieved total assets of $2.7 billion as of March 31, 2025, reflecting a growth of $126.7 million from the previous quarter [3][10] - The outlook for the year remains positive, supported by effective expense management and healthy credit metrics [3] Financial Performance - Net interest income rose to $17.0 million in Q1 2025, a 14% increase from $14.9 million in Q1 2024, primarily due to a $2.7 million increase in interest income [4][5] - Non-interest income increased by 9% to $5.0 million, attributed to growth in wealth management and interchange fees [7] - Non-interest expenses grew by 6% to $14.6 million, with salary and benefits expenses being the main contributors [8] Asset Quality - Total non-performing assets decreased to $6.1 million, or 0.23% of total assets, down from 0.30% at the end of 2024 [14] - The provision for credit losses on loans was $455 thousand, reflecting higher loan growth and net charge-offs compared to the previous year [6][14] Balance Sheet Highlights - Total liabilities increased by $119.0 million, or 5%, driven by deposit growth of $116.6 million [11] - Shareholders' equity rose by 4% to $211.7 million, supported by retained earnings from net income [12][13] - The company maintains a strong capital position with a Tier 1 capital ratio of 9.22% as of March 31, 2025 [13] Key Ratios - The FTE yield on interest-earning assets was 4.73%, up 21 basis points from the previous year [5][30] - The net interest margin increased to 2.89% from 2.69% year-over-year, indicating improved efficiency in generating income from assets [5][30] - Return on average assets was 0.93%, while return on average equity was 11.66% for the quarter [30]

Financial Performance - The Company generated $20.8 million in net income for 2024, representing a 14% increase from $18.2 million in 2023, with diluted earnings per share rising from $3.19 to $3.60[120] - Net income for the year ended December 31, 2024, was $20.8 million, a 14% increase from $18.2 million in 2023, driven by a $7.6 million increase in non-interest income[226][227] - Net interest income for 2024 was $61.9 million, slightly down from $62.1 million in 2023, due to interest expense growing faster than interest income[228] - Non-interest income for the year ended December 31, 2024, amounted to $19.0 million, a $7.6 million, or 67%, increase compared to $11.4 million in 2023, primarily driven by a $6.5 million loss on the sale of securities in 2023[242] - Total other operating expenses for the year ended December 31, 2024, were $55.5 million, an increase of $3.6 million, or 7%, compared to $51.9 million in 2023[243] Asset and Liability Management - Total assets increased by $81.5 million, or 3%, to $2.6 billion as of December 31, 2024, primarily due to growth in the loan portfolio[129] - Total assets increased by $81.5 million, or 3%, to $2.58 billion as of December 31, 2024, compared to $2.50 billion in 2023[130] - Total liabilities of the Company were reported at $2,380,647 thousand as of December 31, 2024[284] - The Company maintained $83.4 million in cash and cash equivalents and $333.5 million in investments AFS and loans HFS as of December 31, 2024[273] - The Company had approximately $733.2 million available borrowing capacity from the FHLB, $20.0 million from correspondent banks, and $157.3 million from the FRB, totaling $1.7 billion in liquidity, representing 66% of total assets[273] Loan Portfolio - The Company had gross loans and leases totaling $1.8 billion as of December 31, 2024, an increase of $113.6 million, or 7%, compared to $1.7 billion at December 31, 2023[160] - The Company originated a total of $303.4 million in loans in 2024, a decrease of $34.2 million compared to 2023, with consumer loans down by $37.3 million to $33.0 million[166] - Total loans, including loans held-for-sale, increased to $1.8 billion in 2024 from $1.7 billion in 2023[208] - The commercial portfolio grew by $121.4 million, or 13%, due to various loan originations totaling $17 million in commercial & industrial loans and $39 million in commercial real estate loans[161] - Non-owner occupied commercial real estate loans increased by $56.5 million, or 17%, from $337.7 million in 2023 to $394.2 million in 2024[178] Deposits and Funding - Total deposits rose by $182.4 million, or 8%, to $2.34 billion as of December 31, 2024, from $2.16 billion in 2023[133] - Certificates of deposit (CDs) increased by $125.9 million, or 59%, primarily due to promotional rates and a transfer of approximately $45 million from interest-bearing checking accounts[133] - Money market accounts grew by $110.4 million, driven by competitive rate offers for new accounts[133] - As of December 31, 2024, total uninsured deposits were estimated at $883.6 million, or 38% of total deposits[135] Credit Quality - Non-performing assets rose to 0.30% of total assets as of December 31, 2024, up from 0.13% at the end of the previous year[125] - The allowance for credit losses increased by $0.9 million, or 5%, to $19.7 million from $18.8 million at December 31, 2023[194] - Net charge-offs for the year ended December 31, 2024, totaled $465 thousand, a decrease of $113 thousand, or 20%, from $578 thousand in 2023[199] - The commercial real estate loan portfolio comprised 45% of the total allowance for credit losses as of December 31, 2024, down 2 percentage points from the previous year[202] Interest Rate and Margin - The overall cost of interest-bearing liabilities increased to 2.60% for the twelve months ended December 31, 2024, up from 1.93% for the same period in 2023[229] - The Company's net interest spread decreased to 2.02% for the twelve months ended December 31, 2024, down 23 basis points from 2.25% in 2023[229] - The net interest margin decreased by 9 basis points to 2.72% for the twelve months ended December 31, 2024, from 2.81% for the same period in 2023[229] - The Company expects to improve net interest margin in 2025 compared to 2024, despite pressures from higher costs of funds[128] Capital and Regulatory Compliance - The Company's risk-based capital ratio was 14.78% as of December 31, 2024, exceeding the minimum requirement[292] - The Company’s capital resources are subject to regulatory capital requirements, and it is currently considered a small bank holding company, not subject to these requirements[260] - The effective income tax rate for 2024 was approximately 12.9%, up from 10.1% in 2023, due to a $3.6 million increase in income before taxes[246] - The Company’s dividend payout ratio was 42.96% for the year ended December 31, 2024, compared to 46.06% in 2023, indicating a strategy to retain more earnings to strengthen capital[262] Strategic Initiatives - The company opened a new Easton Branch and remodeled the Main Branch in Dunmore, PA, contributing to a $1.7 million increase in premises and equipment[219] - The company is in the process of constructing a new corporate headquarters, with total costs expected to range from $20 million to $22 million[220] - The Company plans to evaluate its branch network for potential consolidation and explore opportunities for market expansion[221]

Financial Performance - Net income for the year ended December 31, 2024, was $20.8 million, a 14% increase from $18.2 million in 2023, with diluted earnings per share rising from $3.19 to $3.60[3] - Non-interest income for 2024 totaled $19.0 million, an increase of $7.6 million, or 67%, compared to $11.4 million in 2023, primarily due to a $6.5 million loss on the sale of securities in 2023[10] - The company experienced a $1.5 million increase in net interest income for Q4 2024, totaling $16.4 million, a 10% increase from Q4 2023[13] - Net income for the twelve months ended December 31, 2024, was $20,794,000, representing an increase of 14.3% compared to $18,210,000 for the twelve months ended December 31, 2023[35] - Net income for Q4 2024 was $5,835,000, a significant increase from $468,000 in Q4 2023, representing a growth of over 1100%[41] - Adjusted net income for the twelve months ended December 31, 2024, was $20,794,000, compared to $23,320,000 for the same period in 2023, reflecting a decrease of approximately 6.5%[41] Asset and Liability Management - Total assets grew to $2.6 billion as of December 31, 2024, an increase of $81.5 million from the previous year, driven by a $114.3 million growth in the loans and leases portfolio[20] - Total assets as of December 31, 2024, were $2,584,616,000, up 3.2% from $2,503,159,000 as of December 31, 2023[33] - Total deposits increased to $2,340,820,000 as of December 31, 2024, a rise of 8.4% from $2,158,425,000 as of December 31, 2023[33] - Total liabilities decreased to $2,380,647 as of December 31, 2024, from $2,408,672 on September 30, 2024, a reduction of 1.16%[37] - Cash and cash equivalents decreased to $83,353 as of December 31, 2024, from $120,169 on September 30, 2024, a decline of 30.67%[37] Credit Quality - The provision for credit losses on loans was $1.3 million for 2024, down from $1.5 million in 2023, reflecting lower net charge-offs and improved economic forecasts[9] - Total non-performing assets were $7.8 million, or 0.30% of total assets, as of December 31, 2024, compared to $3.3 million, or 0.13%, in 2023[23] - The provision for credit losses on loans for the twelve months ended December 31, 2024, was $1,325,000, a decrease from $1,491,000 for the same period in 2023[35] - Non-performing assets to total assets ratio was 0.30% as of December 31, 2024, slightly up from 0.13% in 2023, suggesting a potential increase in asset quality concerns[41] Shareholder Equity - Shareholders' equity increased by $14.5 million, or 8%, to $204.0 million at December 31, 2024, driven by higher retained earnings from net income[22] - Shareholders' equity as of December 31, 2024, was $203,969,000, an increase of 7.5% from $189,479,000 as of December 31, 2023[33] - Total shareholders' equity as of December 31, 2024, was $203,969, a decrease from $207,261 on September 30, 2024[37] Interest Income and Expenses - The overall cost of interest-bearing liabilities was 2.60% for 2024, up from 1.93% in 2023, while the FTE yield on interest-earning assets increased to 4.62%[8] - Interest income (GAAP) for the twelve months ended December 31, 2024, was $107,022,000, an increase from $93,835,000 in 2023, representing a growth of approximately 14%[45] - Interest expense for the three months ended December 31, 2024, was $11,685,000, an increase of 17.6% from $9,939,000 for the same period in 2023[35] - The cost of interest-bearing liabilities decreased to 2.60% for the three months ended December 31, 2024, down from 2.70% in the previous quarter[39] Operational Efficiency - Non-interest expenses increased to $55.5 million for 2024, a rise of $3.6 million, or 7%, primarily due to higher salaries and benefits expenses[11] - The efficiency ratio (non-GAAP) for Q4 2024 was reported at 65.47%, slightly higher than 63.74% in Q4 2023[42] - Pre-provision net revenue to average assets (non-GAAP) for 2024 was 1.02%, an increase from 0.90% in 2023, indicating improved operational efficiency[45] Capital Adequacy - The tangible common equity ratio was 7.16% as of December 31, 2024, compared to 6.79% at the end of 2023, indicating improved capital strength[43] - The total risk-based capital ratio improved to 14.78% as of December 31, 2024, compared to 14.67% at the end of 2023, indicating stronger capital adequacy[41]

Core Insights - Fidelity D & D Bancorp, Inc. reported a net income of $20.8 million for the year ended December 31, 2024, representing a 14% increase from $18.2 million in 2023, primarily driven by a $7.6 million increase in non-interest income [2][4][8] - The company achieved total assets of $2.6 billion as of December 31, 2024, an increase of $81.5 million from the previous year, with significant growth in the loans and leases portfolio [17][19] Financial Performance - For the year ended December 31, 2024, net interest income was $61.9 million, a slight decline of less than 1% from $62.1 million in 2023, attributed to rising interest expenses outpacing interest income [5][6] - Non-interest income for 2024 totaled $19.0 million, a 67% increase from $11.4 million in 2023, largely due to the previous year's $6.5 million loss on the sale of securities [8][14] - Non-interest expenses rose to $55.5 million in 2024, a 7% increase from $51.9 million in 2023, driven by higher salaries and benefits expenses [9][15] Quarterly Results - In Q4 2024, net income was $5.8 million, significantly up from $0.5 million in Q4 2023, with net interest income increasing to $16.4 million from $14.9 million year-over-year [3][11] - The provision for credit losses on loans for Q4 2024 was $0.2 million, compared to a $0.1 million provision in Q4 2023, reflecting higher net charge-offs [13][16] Balance Sheet and Asset Quality - Total liabilities increased by $67.0 million, or 3%, with a notable deposit growth of $182.4 million used to fund loan growth [18] - Shareholders' equity rose to $204.0 million at December 31, 2024, an 8% increase from $189.5 million in 2023, supported by higher retained earnings [19] - Non-performing assets were $7.8 million, or 0.30% of total assets, as of December 31, 2024, up from $3.3 million, or 0.13%, in the previous year [20]

Dividend Announcement - Fidelity D & D Bancorp, Inc. declared a first quarter dividend of $0.40 per share for 2025, representing a 5% increase from the previous year's first quarter dividend of $0.38 per share [1] - The dividend is scheduled to be payable on March 10, 2025, to shareholders of record as of February 14, 2025 [1] Company Overview - Fidelity D & D Bancorp, Inc. operates through The Fidelity Deposit and Discount Bank, which serves 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]

Financial Performance - For the nine months ended September 30, 2024, net income was $15.0 million, or $2.59 diluted earnings per share, compared to $17.7 million, or $3.11 diluted earnings per share for the same period in 2023, representing a decrease of 15.3% in net income and 16.7% in earnings per share [173]. - Net income for Q3 2024 was $5.0 million, or $0.86 diluted earnings per share, down from $5.3 million, or $0.93 diluted earnings per share in Q3 2023, reflecting a 5.7% decline [186]. - For the nine months ended September 30, 2024, net income was $15.0 million, or $2.59 diluted earnings per share, compared to $17.7 million, or $3.11 diluted earnings per share for the same period in 2023, a decrease of 15% [186]. - Total non-interest income for the third quarter of 2024 increased by $0.7 million, or 15%, to $5.0 million, primarily due to higher service charges and fees from trust fiduciary activities [213]. - Total non-interest income for the nine months ended September 30, 2024 was $14.2 million, an increase of $0.8 million, or 7%, from the same period in 2023 [214]. Asset Growth - Total assets as of September 30, 2024, were $2.615 billion, an increase from $2.477 billion as of September 30, 2023, representing a growth of 5.6% [181]. - The Company reported a total interest expense of $33,472 thousand for the nine months ended September 30, 2024, up from $21,849 thousand in the same period of 2023 [204]. - The Company’s total assets increased to $2.6 billion as of September 30, 2024, up by $0.1 billion from December 31, 2023, primarily due to a $107.9 million growth in the loans and leases portfolio [219]. - Total assets increased to $2,469,627 thousand as of September 30, 2024, compared to $2,405,100 thousand in the previous year [204]. - The carrying value of investment securities amounted to $559.8 million, or 21% of total assets, as of September 30, 2024, down from $568.3 million, or 23% of total assets, as of December 31, 2023 [224]. Loan Portfolio - Total loans and leases reached $1,763,254 thousand in September 2024, an increase from $1,640,411 thousand in September 2023, marking a growth of 7.48% [200]. - The commercial portfolio increased by $113 million, or 13%, to $1.0 billion compared to the December 31, 2023 balance of $0.9 billion [245]. - For the nine months ended September 30, 2024, commercial and industrial loans increased $16.0 million, or 10%, from $152.6 million at December 31, 2023 to $168.6 million [247]. - Municipal loans increased $18.6 million, or 20%, from $94.7 million on December 31, 2023, to $113.3 million at September 30, 2024 [249]. - The total loans, including loans held-for-sale, amounted to $1,795,548 thousand as of September 30, 2024, an increase from $1,686,555 thousand at December 31, 2023 [283]. Interest Income and Margin - Interest income adjusted to fully-taxable equivalent (non-GAAP) for the nine months ended September 30, 2024, was $81.235 million, up from $71.181 million for the same period in 2023, marking a growth of 14.2% [178]. - Net interest income for Q3 2024 increased by 5% to $15.4 million from $14.6 million in Q3 2023, driven by a $3.6 million increase in interest income [189]. - The net interest margin improved to 2.70% in September 2024, compared to 2.63% in September 2023 [202]. - The overall cost of interest-bearing liabilities was 2.70% for Q3 2024, up 53 basis points from 2.17% in Q3 2023 [191]. - The FTE yield on interest-earning assets was 4.68% for Q3 2024, an increase of 50 basis points from 4.18% in Q3 2023 [191]. Efficiency and Expenses - The efficiency ratio (non-GAAP) for the nine months ended September 30, 2024, was 66.44%, compared to 62.33% for the same period in 2023, indicating a decline in operational efficiency [180]. - Non-interest expenses for the third quarter of 2024 rose by $1.0 million, or 8%, to $13.8 million, mainly due to increased salaries and benefits expenses [215]. - Non-interest expenses for the nine months ended September 30, 2024 increased to $41.1 million, up by $2.0 million, or 5%, compared to the same period in 2023 [216]. Credit Quality - The provision for credit losses is adjusted based on management's estimates of expected credit losses in the loan portfolio, reflecting ongoing analysis and review by the Special Assets Committee [207]. - Non-performing assets increased to $7,584 thousand as of September 30, 2024, representing 0.29% of total assets, compared to 0.13% at December 31, 2023 [284]. - The allowance for credit losses increased by $0.8 million, or 4%, to $19.6 million from $18.8 million on December 31, 2023 [269]. - The net charge-offs for the nine months ended September 30, 2024, were $0.3 million, reflecting a decrease from previous periods [269]. - Loans past due 90 days or more accruing totaled $66 thousand as of September 30, 2024, compared to $14 thousand at December 31, 2023 [286]. Capital and Liquidity - The company's risk-based capital ratio was 14.56% as of September 30, 2024, exceeding the 10% guideline [326]. - The Company had approximately $704.4 million available borrowing capacity from the FHLB, representing 64% of total assets [337]. - The dividend payout ratio was 44.2% for the nine months ended September 30, 2024 [338]. - As of September 30, 2024, total uninsured deposits were estimated to be $926.8 million, or 40% of total deposits [303]. - The Company incurred $5.7 million in costs for the corporate headquarters building, with remaining costs estimated to range from $19 million to $22 million [293]. Market and Economic Conditions - The local unemployment rates as of September 30, 2024, were 3.4% in the northern market area and 3.1% in the southern market area, both showing a decrease from 3.5% and 3.2% respectively at December 31, 2023 [172]. - The median home values in the Scranton-Wilkes-Barre-Hazleton metro and Allentown-Bethlehem-Easton metro increased by 7.0% and 5.8% year-over-year, respectively, with expected growth of 1.0% and 2.0% in the next year [172]. - The company expects to operate in a moderately declining interest rate environment through the end of 2024 and into fiscal year 2025 [194]. - The company expects the trend of cash usage due to inflation and competitive interest rates to continue throughout the remainder of 2024 [300]. - The company maintains strict underwriting principles to mitigate the impact of economic conditions on its loan portfolio [261].

Financial Performance - Net income for Q3 2024 was $5.0 million, or $0.86 diluted earnings per share, a decrease from $5.3 million, or $0.93 per share in Q3 2023 [2]. - For the nine months ended September 30, 2024, net income was $15.0 million, or $2.59 diluted earnings per share, down 15% from $17.7 million, or $3.11 per share in the same period of 2023 [3]. - Net income for the three months ended September 30, 2024, was $4,967 thousand, compared to $5,340 thousand for the same period in 2023, a decrease of 7% [26]. - Basic earnings per share for the quarter were $0.87, slightly up from $0.86 in the previous quarter [31]. - Income before taxes (GAAP) was $5,760,000, compared to $5,701,000 in the previous quarter, showing a slight increase of 1.0% [35]. Income and Revenue - Net interest income for Q3 2024 increased by 5% to $15.4 million from $14.6 million in Q3 2023, driven by a $3.6 million increase in interest income [4]. - Total non-interest income for Q3 2024 increased by 15% to $5.0 million compared to $4.3 million in Q3 2023 [7]. - Total interest income for the three months ended September 30, 2024, was $27,299 thousand, compared to $23,678 thousand for the same period in 2023, reflecting a year-over-year increase of 15.5% [26]. - Net interest income for the nine months ended September 30, 2024, was $45,491 thousand, slightly down from $47,146 thousand in the same period of 2023, a decrease of 3.5% [26]. - Non-interest income for the three months ended September 30, 2024, was $4,979 thousand, up from $4,325 thousand in the same period of 2023, an increase of 15.1% [26]. Assets and Liabilities - Total assets reached $2.6 billion as of September 30, 2024, an increase of $0.1 billion from $2.5 billion at the end of 2023 [14]. - Total assets increased to $2,615,933 thousand as of September 30, 2024, compared to $2,503,159 thousand at December 31, 2023, representing a growth of 4.5% [23]. - Loans and leases rose to $1,795,548 thousand, up from $1,686,555 thousand, indicating an increase of 6.5% [23]. - Total deposits increased to $2,342,506 thousand as of September 30, 2024, from $2,158,425 thousand, marking an increase of 8.5% [24]. - The company experienced a $184.1 million increase in deposits, which was utilized to pay down $92.0 million in short-term borrowings [14]. Equity and Capital - Shareholders' equity increased by $17.8 million, or 9%, to $207.3 million at September 30, 2024, from $189.5 million at December 31, 2023 [15]. - The allowance for credit losses on loans was $19,630 thousand as of September 30, 2024, compared to $18,806 thousand at December 31, 2023, an increase of 4.4% [23]. - Total risk-based capital ratio stood at 14.56%, slightly down from 14.69% in the previous quarter, indicating stable capital adequacy [33]. - Book value per share rose to $36.13, compared to $34.12 in the prior quarter, reflecting an increase of 5.9% [33]. - Tangible common equity ratio improved to 7.19%, up from 7.06% in the previous quarter, indicating a stronger capital position [33]. Cost Management - The overall cost of interest-bearing liabilities rose to 2.70% in Q3 2024, up 53 basis points from 2.17% in Q3 2023 [5]. - Interest expense for deposits rose to $11,297 thousand for the three months ended September 30, 2024, compared to $8,488 thousand in the same period of 2023, an increase of 33.3% [26]. - Efficiency ratio improved to 65.33% from 66.47% in the previous quarter, indicating better cost management [31]. - Efficiency ratio (non-GAAP) improved to 65.33%, down from 66.48% in the previous quarter, indicating better cost management [34]. - Pre-provision net revenue to average assets increased to 1.05%, up from 1.00% in the previous quarter, reflecting improved profitability [34]. Future Outlook - The company anticipates potential impacts from economic conditions, inflation, and interest rate volatility on future performance [20].