Fidelity D & D Bancorp, Inc. Reports 2024 Financial Results

DUNMORE, Pa., January 29, 2025 — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC), along with its banking subsidiary, The Fidelity Deposit and Discount Bank, has released its consolidated financial results for the year ending December 31, 2024.

Financial Performance Summary

For the full year 2024, the bank achieved a net income of $20.8 million, translating to diluted earnings per share of $3.60. This represents a notable increase compared to the previous year's net income of $18.2 million, or $3.19 diluted earnings per share. The growth in net income, amounting to $2.6 million or 14%, was mainly driven by a significant surge of $7.6 million in non-interest income.

In 2023, the company faced a setback with a $6.5 million loss from the sale of available-for-sale securities, which adversely impacted non-interest income. Additionally, there was a $3.7 million increase in non-interest expenses that partially offset some of the gains in 2024.

During the fourth quarter of 2024, Fidelity D & D Bancorp recorded net income of $5.8 million, or $1.01 diluted earnings per share, contrasting sharply with a mere $0.5 million, or $0.08 earnings per share, in the fourth quarter of 2023. This quarter-over-quarter increase of $5.3 million can be attributed partly to the previous year's lower non-interest income and a $1.5 million uptick in net interest income, raising it to $16.4 million.

Management Insights

Dan Santaniello, President and CEO, expressed satisfaction with the quarter's performance, crediting the bank's strategic initiatives for the positive results. Notable achievements included growth in both deposits and loans, contributing to year-end asset balances of $2.6 billion and positioning the bank well for strong performance in 2025.

Year-To-Date Operating Results Overview

The bank's net interest income stood at $61.9 million for the twelve months ending December 31, 2024, down slightly from $62.1 million in 2023. This small decrease was a result of rising interest expenses outpacing the growth of interest income. However, the loan portfolio helped bolster interest income, generating $12.6 million more due to increased loan yields and higher average balances.

Expense Overview

The overall cost of interest-bearing liabilities increased significantly, reaching 2.60% for the year, up from 1.93% in 2023. This spike was fueled by a 72 basis point increase in rates paid on a larger average balance of interest-bearing deposits. The bank maintained a robust performance with a return on average assets reaching 0.90%, up from 0.79% in the previous year.

Non-Interest Income and Expenses

Total non-interest income for 2024 surged to $19.0 million, marking a 67% rise from $11.4 million in 2023. This increase is primarily linked to the loss from securities sales in the prior year. Overall, total non-interest expenses increased by $3.6 million to $55.5 million, largely due to heightened salaries and benefits as well as professional fees.

Equity and Asset Quality

The total assets of Fidelity D & D Bancorp increased to $2.6 billion as of December 31, 2024, showcasing a growth trend primarily driven by a robust loans and leases portfolio. Meanwhile, total liabilities rose to $2.38 billion, a 3% increase, primarily propelled by a $182.4 million elevation in deposits, which were essential for funding loan growth.

Shareholder Returns

Shareholders’ equity also saw a favorable increase, reaching $204.0 million, reflecting an increase of $14.5 million from the previous year. The growth was aided by retained earnings while cash dividends paid to shareholders totaled $8.9 million.

Outlook

Looking ahead, Fidelity D & D Bancorp is optimistic about maintaining its growth trajectory as it continues to invest in strategic initiatives that strengthen its market position and improve overall financial health.

Conclusion

Fidelity D & D Bancorp's comprehensive financial results portray a robust year, demonstrating resilience and strategic growth amidst market challenges. With a significant rise in both net income and total non-interest income, the bank is well-equipped to navigate the upcoming fiscal year.

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