Fidelity D & D Bancorp Inc. Files Q1 2024 10-Q Report

TL;DR

<b>Fidelity D & D Bancorp Inc. filed its Q1 2024 10-Q, reporting $5.74 billion in assets and $18.9 million in net income.</b>

AI Summary

FIDELITY D & D BANCORP INC (FDBC) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Fidelity D & D Bancorp Inc. reported total assets of $5,735,732,000 as of March 31, 2024. Total debt stood at $5,703,636,000 as of March 31, 2024. The company's net income for the first quarter of 2024 was $18,886,000. Total revenue for the first quarter of 2024 was $193,973,000. The filing covers the period ending March 31, 2024.

Why It Matters

For investors and stakeholders tracking FIDELITY D & D BANCORP INC, this filing contains several important signals. This 10-Q filing provides a detailed look at Fidelity D & D Bancorp Inc.'s financial performance and position for the first quarter of 2024, offering insights into its asset base, debt levels, and profitability. Investors and analysts can use this report to assess the company's financial health, compare its performance against previous periods and industry benchmarks, and make informed investment decisions.

Risk Assessment

Risk Level: medium — FIDELITY D & D BANCORP INC shows moderate risk based on this filing. The company's debt-to-equity ratio is high, with total debt ($5.70B) significantly exceeding its equity components (common stock, retained earnings, etc.), indicating a substantial reliance on borrowed funds.

Analyst Insight

Monitor the company's debt management strategies and interest expense coverage in future filings to assess financial risk.

Financial Highlights

revenue

193,973,000

total Assets

5,735,732,000

total Debt

5,703,636,000

net Income

18,886,000

Key Numbers

• 193,973,000 — Total Revenue (Q1 2024)
• 197,176,000 — Total Revenue (Q1 2023)
• 18,886,000 — Net Income (Q1 2024)
• 18,806,000 — Net Income (Q1 2023)
• 5,735,732,000 — Total Assets (As of March 31, 2024)
• 5,703,636,000 — Total Debt (As of March 31, 2024)

Key Players & Entities

• FIDELITY D & D BANCORP INC (company) — Filer name
• PA (location) — State of incorporation

FAQ

Risk Factors

• Leverage and Debt [high — financial]: The company's substantial total debt of $5,703,636,000 as of March 31, 2024, relative to its assets, indicates a high level of financial leverage.

Key Dates

• 2024-03-31: Quarter End — Period covered by the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q was officially submitted to the SEC.

Filing Documents

• fdbc20240331_10q.htm (10-Q) — 5103KB
• ex_641593.htm (EX-31.1) — 10KB
• ex_641594.htm (EX-31.2) — 9KB
• ex_641595.htm (EX-32.1) — 5KB
• ex_641596.htm (EX-32.2) — 6KB
• 0001437749-24-016685.txt (&nbsp;) — 21825KB
• fdbc-20240331.xsd (EX-101.SCH) — 75KB
• fdbc-20240331_cal.xml (EX-101.CAL) — 78KB
• fdbc-20240331_def.xml (EX-101.DEF) — 626KB
• fdbc-20240331_lab.xml (EX-101.LAB) — 552KB
• fdbc-20240331_pre.xml (EX-101.PRE) — 663KB
• fdbc20240331_10q_htm.xml (XML) — 6448KB

Financial Information

Part I. Financial Information Page Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited): Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 3. Quantitative and Qualitative Disclosure about Market Risk 54 Item 4.

Controls and Procedures

Controls and Procedures 59

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 59 Item 1A.

Risk Factors

Risk Factors 59 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3. Defaults upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6. Exhibits 60

Signatures

Signatures 62 2 Table of Contents

– Financial Information

PART I – Financial Information

: Financial Statements

Item 1: Financial Statements Fidelity D & D Bancorp, Inc. and Subsidiary Consolidated Balance Sheets (Unaudited) (dollars in thousands) March 31, 2024 December 31, 2023 Assets: Cash and due from banks $ 34,454 $ 28,949 Interest-bearing deposits with financial institutions 38,279 83,000 Total cash and cash equivalents 72,733 111,949 Available-for-sale securities 334,404 344,040 Held-to-maturity securities (fair value of $ 193,973 in 2024; $ 197,176 in 2023) 224,612 224,233 Restricted investments in bank stock 3,959 3,905 Loans and leases, net (allowance for credit losses of $ 18,886 in 2024; $ 18,806 in 2023) 1,678,142 1,666,292 Loans held-for-sale (fair value $ 277 in 2024; $ 1,483 in 2023) 271 1,457 Foreclosed assets held-for-sale 220 1 Bank premises and equipment, net 34,899 34,232 Leased property under finance leases, net 1,116 1,173 Right-of-use assets 9,056 7,771 Cash surrender value of bank owned life insurance 54,921 54,572 Accrued interest receivable 9,398 9,092 Goodwill 19,628 19,628 Core deposit intangible, net 1,100 1,184 Other assets 24,437 23,630 Total assets $ 2,468,896 $ 2,503,159 Liabilities: Deposits: Interest-bearing $ 1,678,172 $ 1,622,282 Non-interest-bearing 537,824 536,143 Total deposits 2,215,996 2,158,425 Allowance for credit losses on off-balance sheet credit exposures 894 944 Finance lease obligation 1,151 1,201 Operating lease liabilities 9,935 8,549 Short-term borrowings 25,000 117,000 Secured borrowings 7,299 7,372 Accrued interest payable and other liabilities 16,986 20,189 Total liabilities 2,277,261 2,313,680 Shareholders' equity: Preferred stock authorized 5,000,000 shares with no par value; none issued - - Capital stock, no par value ( 10,000,000 shares authorized; shares issued and outstanding; 5,735,732 at March 31, 2024; and 5,703,636 at December 31, 2023) 118,438 117,695 Retained earnings 131,111 128,251 Accumulated other

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Nature of operations and critical accounting policies Nature of operations Fidelity D & D Bancorp, Inc. (the Company) is a bank holding company and the parent of The Fidelity Deposit and Discount Bank (the Bank). The Bank is a commercial bank and trust company chartered under the laws of the Commonwealth of Pennsylvania and a wholly-owned subsidiary of the Company. Having commenced operations in 1903, the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna, Northampton and Luzerne Counties and Wealth Management offices in Schuylkill and Lebanon Counties. Principles of consolidation The accompanying unaudited consolidated financial statements of the Company and the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to this Form 10 -Q and Rule 8 - 03 of Regulation S- X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. For additional information and disclosures required under U.S. GAAP, refer to the Company's Annual Report on Form 10 -K for the year ended December 31, 2023 . Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with U.S. GAAP. In

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View this 10-Q filing on SEC EDGAR