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 STATE OF INCORPORATION: IRS EMPLOYER IDENTIFICATION NO: Pennsylvania 23-3017653 Address of principal executive offices: Blakely & Drinker St. Dunmore, Pennsylvania 18512 TELEPHONE: 570-342-8281 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: | | | registered | | --- | --- | --- | | Title of each class Common ...

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 June 30, 2023 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 IDENTIFICATIO ...

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, 2023 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 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. Commonwealth of Pennsylvania I.R.S. Employer Identification N ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This part contains the company's unaudited financial statements, management's analysis, and market risk disclosures [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements detail the company's financial position and performance as of September 30, 2022 [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) The statements show total assets of $2.44 billion and a significant increase in net income to $22.9 million Balance Sheet Highlights | Indicator | September 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Assets | $2,435,768 | $2,419,104 | | Loans and leases, net | $1,506,163 | $1,417,504 | | Available-for-sale securities | $413,413 | $738,980 | | **Liabilities & Equity** | | | | Total Deposits | $2,253,233 | $2,169,865 | | Total Liabilities | $2,289,281 | $2,207,375 | | Total Shareholders' Equity | $146,487 | $211,729 | Income Statement Highlights | Indicator | Three Months Ended Sep 30, 2022 (in thousands) | Three Months Ended Sep 30, 2021 (in thousands) | Nine Months Ended Sep 30, 2022 (in thousands) | Nine Months Ended Sep 30, 2021 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $18,510 | $17,174 | $53,947 | $43,950 | | Provision for Loan Losses | $525 | $450 | $1,575 | $1,550 | | Net Income | $7,689 | $4,859 | $22,875 | $16,222 | | Diluted EPS | $1.36 | $0.85 | $4.03 | $3.09 | Cash Flow Highlights | Cash Flow Activity (Nine Months Ended) | September 30, 2022 (in thousands) | September 30, 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $40,280 | $13,897 | | Net cash used in investing activities | ($76,894) | ($241,204) | | Net cash provided by financing activities | $73,779 | $325,347 | | **Net increase in cash and cash equivalents** | **$37,165** | **$98,040** | [Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail key accounting policies, the impact of interest rates, and the 2021 Landmark Bancorp acquisition - The company is preparing for the adoption of the **Current Expected Credit Losses (CECL)** methodology on January 1, 2023, and is running parallel models to understand its impact[46](index=46&type=chunk) - During Q2 2022, the company transferred investment securities with a book value of **$245.5 million** from available-for-sale (AFS) to held-to-maturity (HTM) to mitigate the impact of rising interest rates on equity[60](index=60&type=chunk) - On July 1, 2021, the company completed its acquisition of Landmark Bancorp, Inc, with total assets acquired valued at **$375.5 million** and goodwill of **$12.6 million** recorded[163](index=163&type=chunk)[164](index=164&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance, highlighting increased net income driven by higher net interest income [Executive Summary](index=54&type=section&id=Executive%20Summary) The company reports strong earnings growth, though tangible book value per share declined due to unrealized losses Key Performance Indicators | Period | Net Income (in millions) | Diluted EPS | | :--- | :--- | :--- | | Nine Months Ended Sep 30, 2022 | $22.9 | $4.03 | | Nine Months Ended Sep 30, 2021 | $16.2 | $3.09 | - Tangible common book value per share (a non-GAAP measure) **decreased to $22.24** as of September 30, 2022, from $32.57 at the end of 2021, primarily due to unrealized losses on available-for-sale securities[224](index=224&type=chunk) [Results of Operations](index=57&type=section&id=Results%20of%20Operations) Net income growth was driven by a 23% increase in net interest income, offsetting lower non-interest income - Net interest income for the nine months ended September 30, 2022, **increased by $10.0 million (23%)** to $53.9 million, driven by a $401.9 million increase in average interest-earning assets[239](index=239&type=chunk) - Non-interest income for the first nine months of 2022 **decreased by $1.4 million (10%)**, primarily due to a $2.3 million reduction in gains on loan sales[260](index=260&type=chunk) - Non-interest expenses for the first nine months of 2022 **increased by $1.0 million (3%)**, mainly driven by a $2.9 million increase in salaries and employee benefits[262](index=262&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Total assets remained stable at $2.4 billion, with loan growth funded by increased deposits - Gross loans and leases **increased by $90.2 million (6%)** to $1.5 billion during the first nine months of 2022, with growth concentrated in the residential and consumer portfolios[286](index=286&type=chunk)[287](index=287&type=chunk) - Total deposits **grew by $83.4 million (4%)** to $2.3 billion, led by increases in money market and non-interest-bearing checking accounts[355](index=355&type=chunk) - The carrying value of investment securities **decreased by $103.2 million (14%)**, primarily due to an $81.6 million decline in the unrealized gain/loss position in the AFS portfolio[272](index=272&type=chunk) - Non-performing assets **decreased by $1.9 million (30%) to $4.5 million**, representing a healthy 0.19% of total assets at September 30, 2022[334](index=334&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=84&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company manages interest rate risk through simulation models and maintains a strong liquidity and capital position - The interest rate risk model indicates that a **200 basis point increase** in rates would result in a **4.2% decrease** in net interest income over 12 months[382](index=382&type=chunk)[383](index=383&type=chunk) - As of September 30, 2022, the company maintained a one-year cumulative gap of **negative $86.4 million**, indicating a liability-sensitive position[373](index=373&type=chunk) - The company maintains a strong liquidity position with approximately **$1.7 billion in available funding sources**, representing 68% of total assets[391](index=391&type=chunk) Capital Adequacy Ratios | Capital Ratios (Consolidated) | September 30, 2022 | Well-Capitalized Minimum (with buffer) | | :--- | :--- | :--- | | Total Risk-Based Capital | 14.3% | 10.5% | | Tier 1 Common Equity | 13.3% | 7.0% | | Tier 1 Capital | 13.3% | 8.5% | | Leverage Ratio | 8.5% | 4.0% | [Item 4. Controls and Procedures](index=92&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2022 - Based on an evaluation as of the end of the reporting period, the President and CEO and CFO concluded that the Company's **disclosure controls and procedures are effective**[401](index=401&type=chunk) [Part II. Other Information](index=93&type=section&id=Part%20II.%20Other%20Information) This part covers legal proceedings, risk factors, stock repurchases, and filed exhibits [Item 1. Legal Proceedings](index=93&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings outside the ordinary course of business - **No legal proceedings are pending** that would materially and adversely affect the company's financial condition or operations[404](index=404&type=chunk) [Item 1A. Risk Factors](index=93&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the 2021 Form 10-K have occurred - There have been **no material changes** to the risk factors disclosed in the 2021 Form 10-K[405](index=405&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=93&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company executed a stock repurchase plan, buying back 21,545 shares during the third quarter of 2022 Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | June 2022 | 10,294 | $37.60 | | July 2022 | 19,508 | $39.27 | | August 2022 | 2,037 | $39.00 | | **Total** | **31,839** | **$38.71** | - The company announced a stock repurchase plan on May 18, 2022, to purchase up to **3% of its outstanding common stock**, terminating on the earlier of $5 million in purchases or August 9, 2023[406](index=406&type=chunk) [Item 6. Exhibits](index=94&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and interactive data files

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 June 30, 2022 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 IDENTIFICATIO ...

Table Of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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 IDENTIFI ...

Table Of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 OR o 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. COMMONWEALTH OF PENNSYLVANIA I.R.S. EMPLOYER IDENTIFICATION N ...

Table Of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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 IDEN ...

Table Of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 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 IDENTIFIC ...