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

DUNMORE, Pa., Jan. 29, 2025 - Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, have released their unaudited consolidated financial results for the fiscal year and the fourth quarter ended December 31, 2024.

Financial Performance Overview

For the year ending December 31, 2024, Fidelity D & D Bancorp reported a net income of $20.8 million, which translates to $3.60 in diluted earnings per share. This represents a notable increase from the previous year, where net income stood at $18.2 million, or $3.19 per diluted share. The growth of $2.6 million, or 14%, was largely driven by a significant rise of $7.6 million in non-interest income for 2024, compared to 2023. In contrast, during 2023, the Company experienced a $6.5 million loss from the sale of available-for-sale securities, which adversely impacted non-interest income. However, it was partially mitigated by a $3.7 million rise in non-interest expenses.

Quarterly Insights

In the fourth quarter of 2024, the Company's net income reached $5.8 million, equivalent to $1.01 in diluted earnings per share. This is a significant increase from just $0.5 million, or $0.08 per diluted share, in the same quarter of the previous year. The increase of $5.3 million in net income stemmed from the earlier mentioned securities loss in the prior year along with a $1.5 million increase in net interest income, which rose to $16.4 million from $14.9 million year-over-year. This quarter’s improvements are somewhat balanced by a $1.6 million rise in non-interest expenses.

“We are pleased to report that solid performance in Q4 is the result of our successful strategic initiatives and improved net interest margin,” stated Dan Santaniello, President and CEO. “Positive trends in deposit and lending growth, along with overall balance sheet improvements and strong credit metrics, have led us to year-end asset balances of $2.6 billion and net income of $20.8 million. I’d like to commend our staff for their relentless efforts in meeting the needs of our clients, shareholders, and communities, thereby setting us up for a strong 2025.”

Year-to-Date Operating Results Analysis

Total net interest income for 2024 was reported as $61.9 million, slightly down from $62.1 million in 2023. This minor decrease of $0.2 million was attributed to a scenario where interest expenses increased more rapidly than interest income. On the asset side, interest income improved due to a $12.6 million growth primarily driven by a rise of 45 basis points in fully taxable equivalent (FTE) loan yields associated with $106.1 million in higher average loan balances. However, total interest expenses surged by $13.4 million due to a $14.2 million increase in interest paid on deposits.

Income Tax and Non-Interest Revenue Insights

The provision for credit losses on loans for 2024 was noted at $1.3 million, alongside a $0.1 million provision for credit losses on unfunded commitments, down from $1.5 million for loans in 2023. Furthermore, non-interest income totaled $19.0 million in 2024, marking a $7.6 million increase, or 67%, compared to $11.4 million in the previous year. The increase was primarily due to the previous year’s $6.5 million loss due to the sale of securities, with additional growth in trust fiduciary fees, service charges on loans, and debit card interchange fees contributing as well.

Balance Sheet and Asset Quality Details

As of December 31, 2024, total assets for Fidelity D & D Bancorp climbed to $2.6 billion, an increase of $81.5 million compared to the previous year. This growth was propelled mainly by a $114.3 million rise in loans and leases. However, the cash and cash equivalents experienced a decline of $28.6 million, and the investment portfolio decreased by $11.1 million as well. Overall liabilities rose by $67 million, primarily supported by deposit growth to fuel loans and reduce short-term borrowings.

Fidelity D & D Bancorp’s shareholding equity increased by $14.5 million, or 8%, to reach $204 million, fueled by retained earnings as a result of net income, alongside slight improvements in accumulated other comprehensive income.

Conclusion and Community Commitment

Fidelity D & D Bancorp has consistently aimed for a community-driven approach. In 2024, the Company invested over 5,960 volunteer hours and provided more than $1.3 million in donations to non-profits serving the local areas. This commitment ensures not only financial success but also a strong positive impact on the communities they operate in.

The details presented clearly indicate a robust financial performance, influencing both their operational standing and their community engagement efforts for a promising future ahead.

Fidelity, Bancorp, financial, results, earnings