Fidelity D & D Bancorp Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Fidelity D & D Bancorp Inc. filed its 2023 10-K, reporting $5.7 billion in assets and $1.66 million in net income.</b>

AI Summary

FIDELITY D & D BANCORP INC (FDBC) filed a Annual Report (10-K) with the SEC on March 20, 2024. Fidelity D & D Bancorp Inc. reported total assets of $5,703,636,000 for the fiscal year ended December 31, 2023. Net income for the fiscal year ended December 31, 2023, was $1,660,000. Total debt for the company was $0 as of December 31, 2023. The company's revenue for the fiscal year ended December 31, 2023, was $18,806,000. The company's net minimum lease payments require a reduction of $5,000,000 to present value.

Why It Matters

For investors and stakeholders tracking FIDELITY D & D BANCORP INC, this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and position for the fiscal year 2023, including detailed asset and income figures. Investors can use this report to assess the company's financial health, debt levels, and revenue generation, aiding in investment decisions.

Risk Assessment

Risk Level: low — FIDELITY D & D BANCORP INC shows low risk based on this filing. The company has a low risk profile due to its substantial asset base and lack of reported debt, indicating financial stability.

Analyst Insight

Monitor the company's revenue growth and net income trends in future filings to assess its operational performance.

Financial Highlights

revenue

18,806,000

total Assets

5,703,636,000

total Debt

0

net Income

1,660,000

Key Numbers

• 5,703,636,000 — Total Assets (As of December 31, 2023)
• 1,660,000 — Net Income (Fiscal year ended December 31, 2023)
• 18,806,000 — Revenue (Fiscal year ended December 31, 2023)
• 0 — Total Debt (As of December 31, 2023)
• 5,000,000 — Net Minimum Lease Payments (Present Value Reduction) (Amount necessary to reduce net minimum lease payments to present value)

Key Players & Entities

• FIDELITY D & D BANCORP INC (company) — Filer name
• FDBC (company) — Ticker symbol
• PA (location) — State of incorporation
• 20231231 (date) — Conformed period of report
• 20240320 (date) — Filed as of date
• $5,703,636,000 (dollar_amount) — Total assets as of December 31, 2023
• $1,660,000 (dollar_amount) — Net income for the fiscal year ended December 31, 2023
• $0 (dollar_amount) — Total debt as of December 31, 2023

FAQ

Risk Factors

• Lease Payment Calculations [low — financial]: The company's net minimum lease payments require a reduction of $5,000,000 to present value, calculated at the incremental borrowing rate upon lease inception.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-03-20: Filing Date — Date the 10-K was officially filed with the SEC.

Key Financial Figures

• $48.59 — 30, 2023, based on the closing price of $48.59. The number of shares of common stock o

Filing Documents

• fdbc20231231_10k.htm (10-K) — 5431KB
• ex_639199.htm (EX-10.15) — 82KB
• ex_600660.htm (EX-21) — 3KB
• ex_639719.htm (EX-23.1) — 2KB
• ex_600661.htm (EX-23.2) — 3KB
• ex_600662.htm (EX-31.1) — 9KB
• ex_600663.htm (EX-31.2) — 9KB
• ex_600664.htm (EX-32.1) — 6KB
• ex_600665.htm (EX-32.2) — 6KB
• ex_639198.htm (EX-97) — 23KB
• performancegraph2023.jpg (GRAPHIC) — 70KB
• 0001437749-24-008680.txt (&nbsp;) — 25154KB
• fdbc-20231231.xsd (EX-101.SCH) — 132KB
• fdbc-20231231_cal.xml (EX-101.CAL) — 124KB
• fdbc-20231231_def.xml (EX-101.DEF) — 959KB
• fdbc-20231231_lab.xml (EX-101.LAB) — 817KB
• fdbc-20231231_pre.xml (EX-101.PRE) — 1023KB
• fdbc20231231_10k_htm.xml (XML) — 6379KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 6 Item 1B. Unresolved Staff Comments 16 Item 1C. Cybersecurity 16 Item 2.

Properties

Properties 17 Item 3.

Legal Proceedings

Legal Proceedings 18 Item 4. Mine Safety Disclosures 18 Part II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19 Item 6. [Reserved] 21 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operation 21 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 58 Item 8. Report of Independent Registered Public Accounting Firm 59 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 59 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 124 Item 9A.

Controls and Procedures

Controls and Procedures 124 Item 9B. Other Information 125 Item 9C. Disclosure Relating to Foreign Jurisdictions that Prevent Inspections 125 Part III. Item 10. Directors, Executive Officers and Corporate Governance 126 Item 11.

Executive Compensation

Executive Compensation 126 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 126 Item 13. Certain Relationships and Related Transactions, and Director Independence 127 Item 14. Principal Accountant Fees and Services 127 Part IV. Item 15. Exhibits and Financial Statement Schedules 128 Item 16. Form 10-K Summary 131

Signatures

Signatures 131 2 Table of Contents FIDELITY D & D BANCORP, INC. PART I

Forward-Looking Statements

Forward-Looking Statements Certain of the matters discussed in this Annual Report on Form 10-K may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words "expect," "anticipate," "intend," "plan," "believe," "estimate," and similar expressions are intended to identify such forward-looking statements. The Company's actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation: local, regional and national economic conditions and changes thereto; the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy; the risks of changes and volatility of interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities and interest rate protection agreements, as well as interest rate risks; securities markets and monetary fluctuations and volatility; disruption of credit and equity markets; impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules; governmental monetary and fiscal policies, as well as legislative and regulatory changes; effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; the impact of new or changes in existing laws and regulations, including laws and regulations concerning taxes, banking, securities and insurance

: BUSINESS

ITEM 1: BUSINESS Fidelity D & D Bancorp, Inc. (the Company) was incorporated in the Commonwealth of Pennsylvania, on August 10, 1999, and is a bank holding company, whose wholly-owned state chartered commercial bank subsidiary is The Fidelity Deposit and Discount Bank (the Bank) (collectively, the Company). The Company is headquartered at Blakely and Drinker Streets in Dunmore, Pennsylvania. The Company's primary market area (service area) is comprised of the Borough of Dunmore and the surrounding communities within Lackawanna and Luzerne counties in Northeastern Pennsylvania and Northampton County in Eastern Pennsylvania. Federal and state banking laws contain numerous provisions that affect various aspects of the business and operations of the Company and the Bank. The Company is subject to, among others, the regulations of the Securities and Exchange Commission (the SEC) and the Federal Reserve Board (the FRB) and the Bank is subject to, among others, the regulations of the Pennsylvania Department of Banking and Securities, the Federal Deposit Insurance Corporation (the FDIC) and the rules promulgated by the Consumer Financial Protection Bureau (the CFPB) but continues to be examined and supervised by federal banking regulators for consumer compliance purposes. Refer to Part II, Item 7 "Supervision and Regulation" for descriptions of and references to applicable statutes and regulations which are not intended to be complete descriptions of these provisions or their effects on the Company or the Bank. They are summaries only and are qualified in their entirety by reference to such statutes and regulations. Applicable regulations relate to, among other things: operations consolidation disclosure securities reserves community reinvestment risk management dividends mergers consumer compliance branches capital adequacy The Bank is examined periodically by the Pennsylvania Department of Banking and Securities and the FDIC. The Bank has offered a full r

: RISK FACTORS

ITEM 1A: RISK FACTORS An investment in the Company's common stock is subject to risks inherent to the Company's business. The material risks and uncertainties that management believes affect the Company are described below. Before making an investment decision, you should carefully consider the risks and uncertainties described below together with all of the other information included or incorporated by reference in this report. The risks and uncertainties described below are not the only ones facing the Company. Additional risks and uncertainties that management is not aware of or focused on or that management currently deems immaterial may also impair the Company's business operations. This report is qualified in its entirety by these risk factors. If any of the following risks actually occur, the Company's financial condition and results of operations could be materially and adversely affected. If this were to happen, the value of the Company's common stock could decline significantly, and you could lose all or part of your investment. 6 Table of Contents Risks Related to the Company ' s Business The short-term and long-term effects of inflation and rising costs may adversely affect the Company ' s financial performance. Inflation, both in the short-term and/or in the long-term, may adversely affect the Company's business in that it may increase our overall costs even if it does not adversely affect every aspect of our business evenly. The Company employs various strategies to manage its costs but there is no assurance that these strategies will be successful in containing costs as higher rates of inflation may result in increased costs for goods and services, including employee salaries and benefits, which may adversely affect the Company's results of operation and financial performance. Inflation may also increase the cost of doing business for the Company's borrowers thereby affecting the creditworthiness of current or prospective customers. The Co

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View this 10-K filing on SEC EDGAR