FIDELITY D & D BANCORP, INC. FOR IMMEDIATE RELEASE Date: January 28, 2026 Contacts: Daniel J. Santaniello Salvatore R. DeFrancesco, Jr. 570-504-8035 570-504-8000 FIDELITY D & D BANCORP, INC. REPORTS 2025 FINANCIAL RESULTS Dunmore, PA – Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank ("the Company"), announced its unaudited, consolidated financial results for the three and twelve month periods ended December 31, 2025. Unaudited Financial Informat ...

DUNMORE, Pa., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank ("the Company"), announced its unaudited, consolidated financial results for the three and twelve month periods ended December 31, 2025. Unaudited Financial Information Net income recorded for the year ended December 31, 2025 was $28.2 million, or $4.86 diluted earnings per share, compared to $20.8 million, or $3.60 diluted earnings per share, for the ...

DUNMORE, Pa., Jan. 22, 2026 (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 2026 first quarter dividend of $0.43 per share, a 7.5% increase above the prior year’s first quarter dividend paid of $0.40 per share. The dividend is payable March 10, 2026 to shareholders of record at the close of business on February 13, 2026. Fidelity D & D Bancorp, Inc. serves Lackawan ...

Core Viewpoint - Fidelity D & D Bancorp, Inc. (FDBC) has experienced a modest stock price increase of nearly 1% since the last analysis, with total shareholder returns (TSR) rising by approximately 2%, which lags behind the performance of the SPDR S&P 500 ETF [1] Summary by Relevant Sections - Stock Performance - FDBC's stock price has risen nearly 1% [1] - Total shareholder returns (TSR) have increased by roughly 2% [1] - Comparative Analysis - The performance of FDBC has not kept pace with the SPDR S&P 500 ETF [1]

Core Viewpoint - Fidelity D & D Bancorp, Inc. (FDBC) has experienced a modest stock price increase of nearly 1% since the last analysis, with total shareholder returns (TSR) rising by approximately 2%, which lags behind the performance of the SPDR S&P 500 ETF [1] Summary by Relevant Sections - Stock Performance - FDBC's stock price has risen nearly 1% [1] - Total shareholder returns (TSR) have increased by roughly 2% [1] - Comparative Analysis - The performance of FDBC has not kept pace with the SPDR S&P 500 ETF [1]

Core Insights - Fidelity Bank has appointed James Clemente and Rocco DelVecchio to its Board of Directors, enhancing its leadership team with experienced professionals in accounting and financial services [1][2]. Group 1: Appointments - James Clemente has been elected as a director of Fidelity D & D Bancorp, Inc. until the 2028 annual meeting of shareholders, while Rocco DelVecchio will serve until the 2026 annual meeting [2]. - Clemente brings over 45 years of experience in accounting and consulting, specializing in taxation and business acquisitions, and has previously served as a director for another local community bank [3]. - DelVecchio has extensive leadership experience in financial services, having held senior roles at another bank and most recently served as a consultant for Fidelity Bank [4]. Group 2: Leadership Statements - Brian J. Cali, Chairman of the Board, emphasized Clemente's expertise in accounting and community involvement as vital for guiding Fidelity Bank's strategic direction [5]. - Cali also highlighted DelVecchio's leadership and banking experience as significant assets for the Board, reflecting the values of Fidelity Bank [5]. - Daniel J. Santaniello, President & CEO, expressed confidence that the new directors' expertise will contribute to building long-term value for clients and communities [5]. Group 3: Company Overview - Fidelity Bank operates 21 full-service offices across several counties and offers a digital banking experience [6]. - The bank has a commitment to community service, having provided over 5,960 hours of volunteer time and over $1.5 million in donations to non-profit organizations in 2024 [6].

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]