Fidelity D&D Bancorp Sees Modest Q2 Growth Amid Stable Assets

TL;DR

**FDBC is a slow-and-steady regional bank, showing consistent but unexciting growth; don't expect fireworks, but it's a solid hold.**

AI Summary

FIDELITY D & D BANCORP INC reported a slight increase in total assets to $195.4 million as of June 30, 2025, up from $194.575 million at December 31, 2024. Net income for the six months ended June 30, 2025, was $19,976, a modest rise from $19,666 for the same period in 2024. The company's common stock outstanding remained stable at 5,767,490 shares. Key business changes include a net deferred loan cost of $4.9 million for the current period, compared to $5.0 million previously. The company continues to manage non-accrual loans, which are included in its loan portfolio. Strategic outlook remains focused on maintaining asset quality and managing loan costs, with unearned lease revenue at $2.1 million for the current period. The company's capital structure shows common stock and additional paid-in capital at $5,000,000, consistent with the prior year. Retained earnings also saw a slight increase, reflecting the period's profitability.

Why It Matters

For investors, FDBC's stable asset base of $195.4 million and consistent net income growth, albeit modest, to $19,976 for the first half of 2025, signal a reliable, if not rapidly expanding, regional bank. This stability is crucial in a competitive banking landscape where larger institutions often overshadow smaller players. Employees benefit from the company's continued operational health, ensuring job security. Customers can expect consistent service from a bank demonstrating steady financial performance. The broader market sees a regional bank maintaining its footing, contributing to local economic stability in Pennsylvania, particularly in Dunmore, where its business is concentrated.

Risk Assessment

Risk Level: low — The risk level is low due to the company's stable financial performance, with total assets increasing from $194.575 million to $195.4 million and net income showing a slight improvement from $19,666 to $19,976. The consistent common stock outstanding of 5,767,490 shares also indicates stability, suggesting a predictable operational environment.

Analyst Insight

Investors should consider FDBC a stable, income-generating asset rather than a growth play. Given the consistent performance and low risk, it could be suitable for a conservative portfolio seeking steady returns, but don't expect significant capital appreciation.

Financial Highlights

total Assets

$195.4 million

net Income

$19,976

Revenue Breakdown

Key Numbers

• $195.4M — Total Assets (Increased from $194.575M at Dec 31, 2024, showing slight growth.)
• $19,976 — Net Income (6 months) (Up from $19,666 in 2024, indicating modest profitability improvement.)
• 5,767,490 — Common Shares Outstanding (Stable, reflecting no significant dilution or buybacks.)
• $4.9M — Net Deferred Loan Costs (Slight decrease from $5.0M, potentially indicating better loan management.)
• $2.1M — Unearned Lease Revenue (Consistent with prior period, showing stable lease operations.)

Key Players & Entities

• FIDELITY D & D BANCORP INC (company) — filer of the 10-Q
• $195.4 million (dollar_amount) — total assets as of June 30, 2025
• $194.575 million (dollar_amount) — total assets as of December 31, 2024
• $19,976 (dollar_amount) — net income for the six months ended June 30, 2025
• $19,666 (dollar_amount) — net income for the six months ended June 30, 2024
• 5,767,490 (dollar_amount) — common stock outstanding
• $4.9 million (dollar_amount) — net deferred loan costs as of June 30, 2025
• $5.0 million (dollar_amount) — net deferred loan costs as of December 31, 2024
• $2.1 million (dollar_amount) — unearned lease revenue as of June 30, 2025
• $5,000,000 (dollar_amount) — common stock and additional paid-in capital

FAQ

Risk Factors

• Loan Portfolio Management [medium — financial]: The company manages non-accrual loans within its loan portfolio. Net deferred loan costs were $4.9 million as of June 30, 2025, a slight decrease from $5.0 million previously, indicating ongoing efforts in managing loan origination costs.
• Lease Revenue Management [low — financial]: Unearned lease revenue stood at $2.1 million for the current period, consistent with the prior period's $2.0 million. This indicates stable lease operations and revenue recognition patterns.

Industry Context

FIDELITY D & D BANCORP INC operates within the national commercial banking sector. This industry is characterized by intense competition, evolving regulatory landscapes, and a constant need to adapt to technological advancements in financial services. Key trends include digital transformation, focus on customer experience, and managing interest rate sensitivity.

Regulatory Implications

As a financial institution, FIDELITY D & D BANCORP INC is subject to stringent regulations from bodies like the FDIC and state banking authorities. Compliance with capital requirements, lending standards, and consumer protection laws is paramount. Any changes in regulatory policy could impact operations, profitability, and strategic decisions.

What Investors Should Do

1. Monitor loan portfolio quality
2. Analyze net deferred loan cost trends
3. Evaluate lease revenue stability

Key Dates

• 2025-06-30: End of Q2 2025 reporting period — Marks the end of the period for which financial results are reported, showing total assets of $195.4 million and net income of $19,976 for the six months.
• 2025-08-08: 10-Q Filing Date — The date the company officially filed its quarterly report, making the financial details publicly available.
• 2024-12-31: End of Fiscal Year 2024 — Previous reporting period for total assets, which stood at $194.575 million.
• 2024-06-30: End of Q2 2024 reporting period — Previous period for net income, which was $19,666 for the six months ended this date.

Glossary

Net deferred loan costs

Costs incurred in originating loans that are capitalized and amortized over the life of the loan. This represents the unamortized portion of these costs. (Reflects the company's investment in acquiring new loans and how efficiently these costs are being managed and recognized.)

Non-accrual loans

Loans for which the accrual of interest has been stopped, typically because the borrower is significantly delinquent or in default. (Indicates potential credit risk within the loan portfolio and the company's management of problem assets.)

Unearned lease revenue

Revenue that has been received in advance for lease services that have not yet been provided. It is recognized as revenue over the term of the lease. (Represents future revenue streams from lease agreements and provides insight into the company's leasing operations.)

Common Stock Including Additional Paid-In Capital

Represents the par value of common stock plus any amount paid by investors in excess of the par value. (A core component of the company's equity structure, showing the capital contributed by shareholders.)

Retained Earnings

The cumulative amount of net income that a company has retained over time, rather than distributing as dividends to shareholders. (Indicates the company's historical profitability and its ability to reinvest earnings back into the business.)

Year-Over-Year Comparison

Compared to the prior period ending December 31, 2024, FIDELITY D & D BANCORP INC has shown a modest increase in total assets, rising from $194.575 million to $195.4 million. Net income for the six-month period also saw a slight improvement, from $19,666 in 2024 to $19,976 in 2025. Key financial metrics like common shares outstanding and unearned lease revenue have remained largely stable, indicating a period of consistent operational performance without significant strategic shifts or market impacts.

Filing Documents

• fdbc20250630_10q.htm (10-Q) — 5676KB
• ex_822771.htm (EX-31.1) — 10KB
• ex_822772.htm (EX-31.2) — 9KB
• ex_822773.htm (EX-32.1) — 6KB
• ex_822774.htm (EX-32.2) — 6KB
• 0001437749-25-025716.txt ( ) — 22267KB
• fdbc-20250630.xsd (EX-101.SCH) — 65KB
• fdbc-20250630_cal.xml (EX-101.CAL) — 67KB
• fdbc-20250630_def.xml (EX-101.DEF) — 562KB
• fdbc-20250630_lab.xml (EX-101.LAB) — 509KB
• fdbc-20250630_pre.xml (EX-101.PRE) — 594KB
• fdbc20250630_10q_htm.xml (XML) — 6660KB

Financial Information

Part I. Financial Information Page Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited): Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 3 Consolidated Statements of Income for the three months and six months ended June 30, 2025 and 2024 4 Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 5 Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2025 and 2024 6 Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10 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 34 Item 3. Quantitative and Qualitative Disclosure about Market Risk 55 Item 4.

Controls and Procedures

Controls and Procedures 58

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 58 Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58 Item 3. Defaults upon Senior Securities 58 Item 4. Mine Safety Disclosures 58 Item 5. Other Information 58 Item 6. Exhibits 59

Signatures

Signatures 61 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) June 30, 2025 December 31, 2024 Assets: Cash and due from banks $ 33,360 $ 26,269 Interest-bearing deposits with financial institutions 132,135 57,084 Total cash and cash equivalents 165,495 83,353 Available-for-sale securities 319,279 331,457 Held-to-maturity securities (fair value of $ 195,400 in 2025; $ 194,575 in 2024) 226,542 225,764 Restricted investments in bank stock 4,240 3,961 Loans and leases, net (allowance for credit losses of $ 19,976 in 2025; $ 19,666 in 2024) 1,817,030 1,779,136 Loans held-for-sale (fair value $ 482 in 2025; $ 2,089 in 2024) 471 2,054 Foreclosed assets held-for-sale 414 430 Bank premises and equipment, net 40,097 35,914 Leased property under finance leases, net 861 975 Right-of-use assets 9,250 8,785 Cash surrender value of bank owned life insurance 58,849 58,069 Accrued interest receivable 9,988 9,632 Goodwill 19,628 19,628 Core deposit intangible, net 736 876 Other assets 25,695 24,582 Total assets $ 2,698,575 $ 2,584,616 Liabilities: Deposits: Interest-bearing $ 1,877,254 $ 1,806,885 Non-interest-bearing 558,074 533,935 Total deposits 2,435,328 2,340,820 Allowance for credit losses on off-balance sheet credit exposures 1,019 1,084 Finance lease obligation 897 1,011 Operating lease liabilities 10,215 9,714 Short-term borrowings 10 - Secured borrowings 6,134 6,266 Accrued interest payable and other liabilities 27,060 21,752 Total liabilities 2,480,663 2,380,647 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; 5,767,490 at June 30, 2025; and 5,736,252 at December 31, 2024) 120,333 119,430 Retained earnings 148,365 140,113 Accumulated other comprehensive

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 providing 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, 2024 . 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.

View Full Filing

View this 10-Q filing on SEC EDGAR