Fidelity D & D Bancorp, Inc. Reports Third Quarter 2025 Financial Results

Core Insights - Fidelity D & D Bancorp, Inc. reported strong financial results for the third quarter and year-to-date periods, with net income increasing significantly compared to the previous year [4][2][3]. Financial Performance - For the quarter ended September 30, 2025, net income was $7.3 million, or $1.27 per diluted share, a 48% increase from $5.0 million, or $0.86 per diluted share, in the same quarter of 2024 [2][4]. - Year-to-date net income for the nine months ended September 30, 2025, was $20.3 million, or $3.50 per diluted share, compared to $15.0 million, or $2.59 per diluted share, for the same period in 2024, marking a 35% increase [3][4]. Revenue Growth - The increase in net income for the third quarter was primarily driven by a $3.0 million increase in net interest income and a $0.5 million decrease in provision for credit losses [2][4]. - For the nine months ended September 30, 2025, net interest income rose by $7.9 million, attributed to a $9.8 million increase in interest income [3][11]. Interest Income and Expenses - Net interest income for the third quarter of 2025 was $18.4 million, a 19% increase from $15.4 million in the same quarter of 2024 [5][11]. - The overall cost of interest-bearing liabilities decreased to 2.55% for the third quarter of 2025, down from 2.70% in the same quarter of 2024 [6][12]. Asset Quality - Total non-performing assets decreased to $3.0 million, or 0.11% of total assets, as of September 30, 2025, compared to $7.8 million, or 0.30% of total assets, at December 31, 2024 [21]. - The provision for credit losses on loans was $200 thousand for the third quarter of 2025, down from $675 thousand in the same quarter of 2024, reflecting improved asset quality [7][13]. Balance Sheet Highlights - Total assets increased to $2.7 billion as of September 30, 2025, up by $152.1 million from December 31, 2024, driven by growth in loans and leases [18][20]. - Shareholders' equity rose to $229.3 million, a 12% increase from $204.0 million at December 31, 2024, supported by retained earnings from net income [20][18]. Non-Interest Income and Expenses - Total non-interest income for the third quarter of 2025 was $5.1 million, a slight increase of 3% from $5.0 million in the same quarter of 2024 [8][14]. - Non-interest expenses increased by $0.8 million, or 6%, to $14.6 million for the third quarter of 2025, primarily due to higher salaries and benefits [9][15].