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

Core Viewpoint - Fidelity D & D Bancorp, Inc. reported strong financial results for the year and fourth quarter ended December 31, 2025, with significant increases in net income and earnings per share, driven by growth in net interest income and non-interest income [2][4]. Financial Performance Overview - For the year ended December 31, 2025, net income 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 [2][4]. - In the fourth quarter of 2025, net income reached $7.9 million, up from $5.8 million in the same quarter of 2024, with diluted earnings per share increasing to $1.37 from $1.01 [3][4]. Net Interest Income - Net interest income for the year was $72.7 million, an increase of $10.8 million from $61.9 million in 2024, attributed to a $12.8 million rise in interest income [5][6]. - For the fourth quarter, net interest income was $19.3 million, an 18% increase from $16.4 million in the fourth quarter of 2024 [12][4]. Non-Interest Income - Total non-interest income for the year was $20.6 million, an 8% increase from $19.0 million in 2024, driven by growth in wealth management revenue and service charges [9][4]. - In the fourth quarter, non-interest income increased to $5.1 million, a 6% rise from $4.8 million in the same quarter of 2024 [15][4]. Non-Interest Expenses - Non-interest expenses for the year rose to $58.8 million, a 6% increase from $55.5 million in 2024, primarily due to higher salaries and benefits [10][4]. - For the fourth quarter, non-interest expenses increased to $14.9 million, up 3% from $14.4 million in the same quarter of 2024 [17][4]. Asset Quality - Total non-performing assets decreased to $2.2 million, or 0.08% of total assets, down from $7.8 million, or 0.30%, at the end of 2024, indicating improved asset quality [22][4]. - The provision for credit losses on loans for the year was $1.1 million, down from $1.3 million in 2024, reflecting better asset quality [7][4]. Balance Sheet Highlights - Total assets increased to $2.7 billion as of December 31, 2025, up $163.4 million from the previous year, driven by growth in loans and leases [19][4]. - Shareholders' equity rose to $238.9 million, a 17% increase from $204.0 million at the end of 2024, supported by higher retained earnings [21][4]. Capital Ratios - The Company maintained a strong capital position with Tier 1 capital at 9.34% of total average assets and total risk-based capital at 14.78% of risk-weighted assets as of December 31, 2025 [21][4].