Fidelity D & D Bancorp(FDBC) - 2025 Q4 - Annual Results

Financial Performance - Net income for the year ended December 31, 2025, was $28.2 million, a 36% increase from $20.8 million in 2024, with diluted earnings per share rising to $4.86 from $3.60[3] - Net interest income for 2025 was $72.7 million, up $10.8 million or 17% from $61.9 million in 2024, driven by a $181.6 million increase in average interest-earning assets[6] - Total non-interest income for 2025 was $20.6 million, an increase of $1.6 million or 8% from $19.0 million in 2024, primarily due to growth in wealth management revenue and service charges[9] - Non-interest expenses rose to $58.8 million in 2025, a 6% increase from $55.5 million in 2024, mainly due to higher salaries and benefits expenses[10] - Net income for the twelve months ended December 31, 2025, reached $28,198 thousand, a significant increase of 35.5% from $20,794 thousand in 2024[34] - Non-interest income for the twelve months ended December 31, 2025, was $20,559 thousand, up from $19,013 thousand in 2024, reflecting a growth of 8.1%[34] - Total pre-provision net revenue increased to $9,481 thousand for the quarter ended December 31, 2025, compared to $6,826 thousand in the same quarter last year, a growth of 39.0%[42] - Income before taxes increased to $9,211 thousand for the quarter ended December 31, 2025, compared to $6,661 thousand in the same quarter last year, reflecting a growth of 38.5%[42] Asset Quality - The provision for credit losses on loans was $1.1 million for 2025, down from $1.3 million in 2024, reflecting improved asset quality[8] - Total non-performing assets decreased to $2.2 million, or 0.08% of total assets, down from $7.8 million or 0.30% in 2024, showing significant improvement in asset quality[22] - The allowance for credit losses on loans was $20,168 thousand as of December 31, 2025, compared to $19,666 thousand in 2024, indicating a slight increase of 2.55%[32] - The company reported a provision for credit losses on loans of $1,055 thousand for the twelve months ended December 31, 2025, down from $1,325 thousand in 2024, indicating improved credit quality[34] - Non-performing assets to total assets decreased to 0.08% as of December 31, 2025, down from 0.30% a year earlier, indicating improved asset quality[40] Capital and Equity - Shareholders' equity increased by $34.9 million or 17% to $238.9 million at December 31, 2025, driven by higher retained earnings and improvements in accumulated other comprehensive loss[21] - The Company remains well capitalized with Tier 1 capital at 9.34% of total average assets as of December 31, 2025[21] - Total risk-based capital ratio remained stable at 14.78% as of December 31, 2025, consistent with the previous year[40] - Book value per share rose to $41.39, reflecting an increase of 16.1% from $35.56 a year ago[40] - Tangible common equity ratio improved to 8.01% as of December 31, 2025, compared to 7.16% a year earlier[40] Deposits and Loans - Total assets increased to $2.7 billion as of December 31, 2025, a $163.4 million rise from the previous year, with loans and leases growing by $110.4 million[19] - Total deposits rose to $2,467,353 thousand as of December 31, 2025, compared to $2,340,820 thousand in 2024, marking an increase of 5.4%[32] - Loans and leases totaled $1,911,724 million as of December 31, 2025, slightly down from $1,914,893 million in the previous quarter[36] - Total deposits reached $2,467,353 million as of December 31, 2025, slightly up from $2,466,913 million in the previous quarter[36] Operational Efficiency - Efficiency ratio (FTE) improved to 58.35% for the quarter ended December 31, 2025, compared to 60.17% in the prior quarter[38] - Efficiency ratio (non-GAAP) improved to 58.35% for the quarter ended December 31, 2025, down from 65.48% a year earlier, indicating enhanced operational efficiency[41] Community Engagement - The company provided over 6,190 hours of volunteer time and donated over $1.5 million to non-profit organizations in 2025, emphasizing its commitment to community service[23] Other Financial Metrics - Basic earnings per share rose to $1.38 for the quarter ended December 31, 2025, compared to $1.27 in the prior quarter[38] - Return on average equity improved to 13.45% for the quarter ended December 31, 2025, up from 13.25% in the previous quarter[38] - Net interest margin (FTE) increased to 3.04% for the quarter ended December 31, 2025, compared to 2.95% in the prior quarter[38] - Cost of interest-bearing liabilities decreased to 2.42% for the quarter ended December 31, 2025, down from 2.55% in the prior quarter[38] - Dividends per share increased to $0.43 for the quarter ended December 31, 2025, compared to $0.40 in the previous quarter[38] - Average assets grew to $2,757,902 thousand as of December 31, 2025, up from $2,565,232 thousand a year earlier, representing an increase of 7.5%[42] - Assets under management increased to $1,058,881 thousand as of December 31, 2025, up from $955,647 thousand a year earlier, representing a growth of 10.8%[40] - Net interest income adjusted to FTE reached $20,080 thousand for the quarter ended December 31, 2025, up from $17,138 thousand in the same quarter last year, marking a growth of 17.0%[41]