Workflow
Fidelity D & D Bancorp(FDBC) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was 5.1million,or5.1 million, or 0.88 diluted earnings per share, down from 7.0million,or7.0 million, or 1.24 diluted earnings per share in Q1 2023, reflecting a 1.9milliondeclineprimarilyduetoa1.9 million decline primarily due to a 2.1 million decrease in net interest income[3] - Net income for the three months ended March 31, 2024, was 5,057thousand,downfrom5,057 thousand, down from 7,040 thousand for the same period in 2023, a decrease of about 28.3%[26] - Basic earnings per share for the three months ended March 31, 2024, were 0.88,significantlyupfrom0.88, significantly up from 0.08 in the previous quarter[30] - Income before taxes (GAAP) surged to 5,751,000inQ12024from5,751,000 in Q1 2024 from 107,000 in Q4 2023, a significant increase of 5,280.37%[33] Interest Income and Expenses - Net interest income decreased by 12% to 14.9millioninQ12024from14.9 million in Q1 2024 from 17.0 million in Q1 2023, driven by a 5.4millionincreaseininterestexpense[5]Totalinterestincomeincreasedto5.4 million increase in interest expense[5] - Total interest income increased to 25,625 thousand for the three months ended March 31, 2024, compared to 22,338thousandforthesameperiodin2023,reflectinganincreaseofapproximately15.522,338 thousand for the same period in 2023, reflecting an increase of approximately 15.5%[26] - Interest income (GAAP) for Q1 2024 was 25,625,000, an increase from 24,840,000inQ42023,representingagrowthof3.1524,840,000 in Q4 2023, representing a growth of 3.15%[33] - Net interest income adjusted to FTE (non-GAAP) for Q1 2024 was 15,690,000, slightly down from 15,565,000inQ42023,adecreaseof0.8015,565,000 in Q4 2023, a decrease of 0.80%[33] Assets and Liabilities - Total assets decreased by 34 million to 2.5billionasofMarch31,2024,withcashandcashequivalentsdecliningby2.5 billion as of March 31, 2024, with cash and cash equivalents declining by 39 million[12] - Total assets as of March 31, 2024, were 2,468,896,adecreaseof1.382,468,896, a decrease of 1.38% from 2,503,159 on December 31, 2023[28] - Total liabilities decreased from 2,313,680thousandasofDecember31,2023,to2,313,680 thousand as of December 31, 2023, to 2,277,261 thousand as of March 31, 2024, a decline of approximately 1.6%[24] - Average assets for Q1 2024 were 2,451,168,000,anincreasefrom2,451,168,000, an increase from 2,405,086,000 in Q4 2023, representing a growth of 1.92%[33] Shareholders' Equity - Shareholders' equity increased by 2.1million,or12.1 million, or 1%, to 191.6 million at March 31, 2024, driven by retained earnings from net income[13] - Shareholders' equity increased from 189,479thousandasofDecember31,2023,to189,479 thousand as of December 31, 2023, to 191,635 thousand as of March 31, 2024, an increase of about 1.1%[24] - Book value per share increased to 33.41asofMarch31,2024,from33.41 as of March 31, 2024, from 33.22 at the end of December 2023[31] Non-Interest Income and Expenses - Total non-interest income increased by 2% to 4.6millioninQ12024comparedto4.6 million in Q1 2024 compared to 4.5 million in Q1 2023, primarily due to higher trust income[9] - Non-interest income for the three months ended March 31, 2024, was 4,572thousand,slightlyupfrom4,572 thousand, slightly up from 4,489 thousand for the same period in 2023, indicating a growth of approximately 1.9%[26] - Non-interest expenses rose by 6% to 13.7millioninQ12024from13.7 million in Q1 2024 from 12.9 million in Q1 2023, mainly due to higher salaries and insurance expenses[10] Asset Quality - Total non-performing assets were 3.8million,or0.153.8 million, or 0.15% of total assets, at March 31, 2024, compared to 3.3 million, or 0.13% at December 31, 2023[14] - The provision for credit losses on loans was 0.1million,withanetbenefitintheprovisionforcreditlossesonunfundedloancommitmentsof0.1 million, with a net benefit in the provision for credit losses on unfunded loan commitments of 50 thousand in Q1 2024[8] - Non-performing assets to total assets ratio was 0.15% as of March 31, 2024, compared to 0.13% in the previous quarter, indicating a slight increase in asset quality concerns[31] Capital Ratios - The Fidelity Deposit and Discount Bank maintained a Tier 1 capital ratio of 9.15% of total average assets as of March 31, 2024, remaining above well-capitalized limits[13] - The total risk-based capital ratio stood at 14.68% as of March 31, 2024, slightly up from 14.57% at the end of December 2023[31] - Tangible common equity ratio improved to 6.98% in Q1 2024 from 6.79% in Q4 2023, reflecting a stronger capital position[33] Operational Efficiency - The efficiency ratio (FTE) for the quarter was 67.56%, compared to 63.74% in the previous quarter, indicating a decline in operational efficiency[30] - Efficiency ratio (non-GAAP) increased to 67.56% in Q1 2024 from 63.74% in Q4 2023, indicating a decline in operational efficiency[33]