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]
Fidelity D & D Bancorp(FDBC) - 2024 Q4 - Annual Results