Fidelity D & D Bancorp, Inc. Reports First Quarter 2023 Financial Results
Fidelity D & D Bancorp (NASDAQ: FDBC) reported a net income of $7.0 million for the first quarter of 2023, down 6% from $7.5 million in Q1 2022. Diluted earnings per share also fell 6% to $1.24, attributed to a decline in net interest income and increased non-interest expenses. Net interest income decreased to $17.0 million, primarily due to a 99 basis point rise in interest expense. The company’s total assets grew to $2.4 billion, reflecting a $65 million increase since December 2022. Shareholder equity increased 8% to $175.9 million. Non-performing assets rose to $3.4 million, a 0.14% ratio of total assets. The bank maintains a solid capital position with Tier 1 capital at 8.92%.
- Total assets increased by $65 million to $2.4 billion.
- Shareholders' equity grew by $12.9 million, or 8%, to $175.9 million.
- Tangible book value per share improved from $25.18 to $27.33.
- Net income declined by $0.5 million, or 6%, compared to Q1 2022.
- Diluted earnings per share fell by $0.08, or 6%.
- Net interest income decreased by $0.3 million, or 2%.
DUNMORE, Pa., April 21, 2023 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three-month period ended March 31, 2023.
Unaudited Financial Information
Net income for the quarter ended March 31, 2023 was
“The first quarter results continue to be positive and reflect the strength and stability of Fidelity Bank. During the first quarter, despite the market disruption in March, the bank increased its capital position, grew loans, and maintained strong credit quality, while at the same time effectively managing expenses.” stated Daniel J. Santaniello, President and Chief Executive Officer. “Fidelity Bank’s strong balance sheet positions the company well to continue growing through a well-executed strategic plan that focuses on building relationships and delivering value to clients.”
Consolidated First Quarter Operating Results Overview
Net interest income was
The overall cost of interest-bearing liabilities was
The provision for credit losses on loans was
Total non-interest income decreased
Non-interest expenses increased
The provision for income taxes increased
Consolidated Balance Sheet & Asset Quality Overview
The Company’s total assets grew to
Shareholders’ equity increased
Asset Quality
Total non-performing assets were
About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank
Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“Fidelity Bank”). Fidelity Bank operates 20 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties, along with a limited production commercial office in Luzerne County and a Fidelity Bank Wealth Management Minersville Office in Schuylkill County. Fidelity Bank provides a digital and virtual experience via digital services, and digital account opening offered through online banking at bankatfidelity.com and the mobile app. Additionally, Fidelity Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and an array of personal and business banking products and services. Part of the Company’s vision is to serve as the best bank for the community, which was accomplished by having provided over 4,100 hours of volunteer time and over
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The Company’s non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company’s operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.
Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent (FTE), in order to calculate certain ratios within this document. This treatment allows a uniform comparison among yields on interest-earning assets. Interest income was FTE adjusted, using the corporate federal tax rate of
Forward-looking statements
Certain of the matters discussed in this press release 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; | |
■ | securities markets and monetary fluctuations and volatility; | |
■ | 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 and their application with which the Company and its subsidiaries must comply; | |
■ | the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; | |
■ | 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; | |
■ | the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet; | |
■ | the effects of economic conditions particularly with regard to the negative impact of lingering disruptions caused by the spread of Coronavirus Disease 2019 (COVID-19) and any other pandemic, epidemic or other health-related crisis and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers’ ability to repay loans; | |
■ | technological changes; | |
■ | the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses; | |
■ | acquisitions and integration of acquired businesses; | |
■ | the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities; | |
■ | acts of war or terrorism; | |
■ | disruption of credit and equity markets; and | |
■ | the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful. |
The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information please visit our investor relations web site located through www.bankatfidelity.com.
Contacts: | |
Daniel J. Santaniello | Salvatore R. DeFrancesco, Jr. |
President and Chief Executive Officer | Treasurer and Chief Financial Officer |
570-504-8035 | 570-504-8000 |
FIDELITY D & D BANCORP, INC. | ||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||
(dollars in thousands) | ||||||||
At Period End: | March 31, 2023 | December 31, 2022 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 63,038 | $ | 29,091 | ||||
Investment securities | 614,526 | 643,606 | ||||||
Restricted investments in bank stock | 5,968 | 5,268 | ||||||
Loans and leases | 1,627,155 | 1,565,811 | ||||||
Allowance for credit losses on loans | (17,910 | ) | (17,149 | ) | ||||
Premises and equipment, net | 31,408 | 31,307 | ||||||
Life insurance cash surrender value | 53,567 | 54,035 | ||||||
Goodwill and core deposit intangible | 21,071 | 21,168 | ||||||
Other assets | 44,198 | 45,235 | ||||||
Total assets | $ | 2,443,021 | $ | 2,378,372 | ||||
Liabilities | ||||||||
Non-interest-bearing deposits | $ | 591,055 | $ | 602,608 | ||||
Interest-bearing deposits | 1,552,036 | 1,564,305 | ||||||
Total deposits | 2,143,091 | 2,166,913 | ||||||
Short-term borrowings | 88,989 | 12,940 | ||||||
Secured borrowings | 7,560 | 7,619 | ||||||
Other liabilities | 27,494 | 27,950 | ||||||
Total liabilities | 2,267,134 | 2,215,422 | ||||||
Shareholders' equity | 175,887 | 162,950 | ||||||
Total liabilities and shareholders' equity | $ | 2,443,021 | $ | 2,378,372 |
Average Year-To-Date Balances: | March 31, 2023 | December 31, 2022 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 29,192 | $ | 81,532 | ||||
Investment securities | 623,097 | 684,588 | ||||||
Restricted investments in bank stock | 5,418 | 3,565 | ||||||
Loans and leases | 1,609,655 | 1,500,796 | ||||||
Allowance for credit losses on loans | (18,380 | ) | (16,612 | ) | ||||
Premises and equipment, net | 31,477 | 30,640 | ||||||
Life insurance cash surrender value | 53,995 | 53,443 | ||||||
Goodwill and core deposit intangible | 21,120 | 21,359 | ||||||
Other assets | 43,690 | 40,265 | ||||||
Total assets | $ | 2,399,264 | $ | 2,399,576 | ||||
Liabilities | ||||||||
Non-interest-bearing deposits | $ | 585,987 | $ | 594,541 | ||||
Interest-bearing deposits | 1,559,212 | 1,593,805 | ||||||
Total deposits | 2,145,199 | 2,188,346 | ||||||
Short-term borrowings | 48,937 | 1,031 | ||||||
Secured borrowings | 7,548 | 8,886 | ||||||
Other liabilities | 29,651 | 28,434 | ||||||
Total liabilities | 2,231,335 | 2,226,697 | ||||||
Shareholders' equity | 167,929 | 172,879 | ||||||
Total liabilities and shareholders' equity | $ | 2,399,264 | $ | 2,399,576 |
FIDELITY D & D BANCORP, INC. | ||||||||
Unaudited Condensed Consolidated Statements of Income | ||||||||
(dollars in thousands) | ||||||||
Three Months Ended | ||||||||
Mar. 31, 2023 | Mar. 31, 2022 | |||||||
Interest income | ||||||||
Loans and leases | $ | 19,018 | $ | 14,775 | ||||
Securities and other | 3,320 | 3,403 | ||||||
Total interest income | 22,338 | 18,178 | ||||||
Interest expense | ||||||||
Deposits | (4,618 | ) | (822 | ) | ||||
Borrowings and debt | (695 | ) | (65 | ) | ||||
Total interest expense | (5,313 | ) | (887 | ) | ||||
Net interest income | 17,025 | 17,291 | ||||||
Provision for credit losses on loans | (180 | ) | (525 | ) | ||||
(Provision) credit for credit losses on unfunded loan commitments | (225 | ) | 11 | |||||
Non-interest income | 4,489 | 4,554 | ||||||
Non-interest expense | (12,857 | ) | (12,665 | ) | ||||
Income before income taxes | 8,252 | 8,666 | ||||||
Provision for income taxes | (1,212 | ) | (1,144 | ) | ||||
Net income | $ | 7,040 | $ | 7,522 |
Three Months Ended | ||||||||||||||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans and leases | $ | 19,018 | $ | 17,425 | $ | 16,320 | $ | 15,500 | $ | 14,775 | ||||||||||
Securities and other | 3,320 | 3,869 | 3,815 | 3,565 | 3,403 | |||||||||||||||
Total interest income | 22,338 | 21,294 | 20,135 | 19,065 | 18,178 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | (4,618 | ) | (2,822 | ) | (1,550 | ) | (950 | ) | (822 | ) | ||||||||||
Borrowings and debt | (695 | ) | (145 | ) | (75 | ) | 30 | (65 | ) | |||||||||||
Total interest expense | (5,313 | ) | (2,967 | ) | (1,625 | ) | (920 | ) | (887 | ) | ||||||||||
Net interest income | 17,025 | 18,327 | 18,510 | 18,145 | 17,291 | |||||||||||||||
Provision for credit losses on loans | (180 | ) | (525 | ) | (525 | ) | (525 | ) | (525 | ) | ||||||||||
(Provision) credit for credit losses on unfunded loan commitments | (225 | ) | (11 | ) | 6 | 8 | 11 | |||||||||||||
Non-interest income | 4,489 | 3,920 | 3,911 | 4,256 | 4,554 | |||||||||||||||
Non-interest expense | (12,857 | ) | (12,854 | ) | (13,034 | ) | (12,808 | ) | (12,665 | ) | ||||||||||
Income before income taxes | 8,252 | 8,857 | 8,868 | 9,076 | 8,666 | |||||||||||||||
Provision for income taxes | (1,212 | ) | (1,711 | ) | (1,179 | ) | (1,412 | ) | (1,144 | ) | ||||||||||
Net income | $ | 7,040 | $ | 7,146 | $ | 7,689 | $ | 7,664 | $ | 7,522 |
FIDELITY D & D BANCORP, INC. | ||||||||||||||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
At Period End: | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 63,038 | $ | 29,091 | $ | 134,042 | $ | 109,125 | $ | 97,403 | ||||||||||
Investment securities | 614,526 | 643,606 | 635,787 | 674,833 | 711,583 | |||||||||||||||
Restricted investments in bank stock | 5,968 | 5,268 | 3,639 | 3,622 | 3,231 | |||||||||||||||
Loans and leases | 1,627,155 | 1,565,811 | 1,524,328 | 1,494,316 | 1,479,114 | |||||||||||||||
Allowance for credit losses on loans | (17,910 | ) | (17,149 | ) | (16,779 | ) | (16,590 | ) | (16,081 | ) | ||||||||||
Premises and equipment, net | 31,408 | 31,307 | 30,971 | 30,855 | 31,336 | |||||||||||||||
Life insurance cash surrender value | 53,567 | 54,035 | 53,711 | 53,383 | 53,065 | |||||||||||||||
Goodwill and core deposit intangible | 21,071 | 21,168 | 21,264 | 21,360 | 21,462 | |||||||||||||||
Other assets | 44,198 | 45,235 | 48,805 | 44,036 | 39,661 | |||||||||||||||
Total assets | $ | 2,443,021 | $ | 2,378,372 | $ | 2,435,768 | $ | 2,414,940 | $ | 2,420,774 | ||||||||||
Liabilities | ||||||||||||||||||||
Non-interest-bearing deposits | $ | 591,055 | $ | 602,608 | $ | 616,844 | $ | 610,987 | $ | 599,497 | ||||||||||
Interest-bearing deposits | 1,552,036 | 1,564,305 | 1,636,389 | 1,606,637 | 1,610,508 | |||||||||||||||
Total deposits | 2,143,091 | 2,166,913 | 2,253,233 | 2,217,624 | 2,210,005 | |||||||||||||||
Short-term borrowings | 88,989 | 12,940 | 10 | 10 | - | |||||||||||||||
Secured borrowings | 7,560 | 7,619 | 7,688 | 7,736 | 10,572 | |||||||||||||||
Other liabilities | 27,494 | 27,950 | 28,350 | 26,951 | 24,954 | |||||||||||||||
Total liabilities | 2,267,134 | 2,215,422 | 2,289,281 | 2,252,321 | 2,245,531 | |||||||||||||||
Shareholders' equity | 175,887 | 162,950 | 146,487 | 162,619 | 175,243 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,443,021 | $ | 2,378,372 | $ | 2,435,768 | $ | 2,414,940 | $ | 2,420,774 |
Average Quarterly Balances: | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 29,192 | $ | 73,023 | $ | 88,863 | $ | 69,086 | $ | 95,319 | ||||||||||
Investment securities | 623,097 | 637,825 | 672,595 | 693,121 | 736,021 | |||||||||||||||
Restricted investments in bank stock | 5,418 | 3,840 | 3,645 | 3,538 | 3,228 | |||||||||||||||
Loans and leases | 1,609,655 | 1,540,999 | 1,511,268 | 1,482,629 | 1,467,362 | |||||||||||||||
Allowance for credit losses on loans | (18,380 | ) | (17,113 | ) | (16,911 | ) | (16,441 | ) | (15,966 | ) | ||||||||||
Premises and equipment, net | 31,477 | 31,190 | 30,956 | 31,091 | 29,301 | |||||||||||||||
Life insurance cash surrender value | 53,995 | 53,925 | 53,599 | 53,277 | 52,960 | |||||||||||||||
Goodwill and core deposit intangible | 21,120 | 21,210 | 21,308 | 21,405 | 21,517 | |||||||||||||||
Other assets | 43,690 | 47,715 | 42,564 | 40,878 | 29,679 | |||||||||||||||
Total assets | $ | 2,399,264 | $ | 2,392,614 | $ | 2,407,887 | $ | 2,378,584 | $ | 2,419,421 | ||||||||||
Liabilities | ||||||||||||||||||||
Non-interest-bearing deposits | $ | 585,987 | $ | 609,262 | $ | 589,227 | $ | 593,121 | $ | 586,363 | ||||||||||
Interest-bearing deposits | 1,559,212 | 1,589,129 | 1,614,573 | 1,579,150 | 1,592,173 | |||||||||||||||
Total deposits | 2,145,199 | 2,198,391 | 2,203,800 | 2,172,271 | 2,178,536 | |||||||||||||||
Short-term borrowings | 48,937 | 3,875 | 10 | 206 | - | |||||||||||||||
Secured borrowings | 7,548 | 7,654 | 7,707 | 9,644 | 10,584 | |||||||||||||||
Other liabilities | 29,651 | 30,489 | 29,031 | 27,164 | 27,008 | |||||||||||||||
Total liabilities | 2,231,335 | 2,240,409 | 2,240,548 | 2,209,285 | 2,216,128 | |||||||||||||||
Shareholders' equity | 167,929 | 152,205 | 167,339 | 169,299 | 203,293 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,399,264 | $ | 2,392,614 | $ | 2,407,887 | $ | 2,378,584 | $ | 2,419,421 |
FIDELITY D & D BANCORP, INC. | ||||||||||||||||||||
Selected Financial Ratios and Other Financial Data | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | ||||||||||||||||
Selected returns and financial ratios | ||||||||||||||||||||
Basic earnings per share | $ | 1.25 | $ | 1.27 | $ | 1.36 | $ | 1.35 | $ | 1.33 | ||||||||||
Diluted earnings per share | $ | 1.24 | $ | 1.26 | $ | 1.36 | $ | 1.35 | $ | 1.32 | ||||||||||
Dividends per share | $ | 0.36 | $ | 0.36 | $ | 0.33 | $ | 0.33 | $ | 0.33 | ||||||||||
Yield on interest-earning assets (FTE)* | 4.06 | % | 3.78 | % | 3.60 | % | 3.50 | % | 3.34 | % | ||||||||||
Cost of interest-bearing liabilities | 1.33 | % | 0.74 | % | 0.40 | % | 0.23 | % | 0.22 | % | ||||||||||
Cost of funds | 0.98 | % | 0.53 | % | 0.29 | % | 0.17 | % | 0.16 | % | ||||||||||
Net interest spread (FTE)* | 2.73 | % | 3.04 | % | 3.20 | % | 3.27 | % | 3.12 | % | ||||||||||
Net interest margin (FTE)* | 3.13 | % | 3.27 | % | 3.32 | % | 3.34 | % | 3.18 | % | ||||||||||
Return on average assets | 1.19 | % | 1.18 | % | 1.27 | % | 1.29 | % | 1.26 | % | ||||||||||
Pre-provision net revenue to average assets* | 1.46 | % | 1.56 | % | 1.55 | % | 1.62 | % | 1.54 | % | ||||||||||
Return on average equity | 17.00 | % | 18.63 | % | 18.23 | % | 18.16 | % | 15.01 | % | ||||||||||
Return on average tangible equity* | 19.45 | % | 21.64 | % | 20.89 | % | 20.79 | % | 16.78 | % | ||||||||||
Efficiency ratio (FTE)* | 57.72 | % | 56.02 | % | 56.40 | % | 55.49 | % | 56.26 | % | ||||||||||
Expense ratio | 1.41 | % | 1.48 | % | 1.51 | % | 1.44 | % | 1.36 | % |
Other financial data | At period end: | |||||||||||||||||||
(dollars in thousands except per share data) | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |||||||||||||||
Pre-provision net revenue* | $ | 8,657 | $ | 9,393 | $ | 9,387 | $ | 9,593 | $ | 9,180 | ||||||||||
Interest income adjustment to FTE* | $ | 760 | $ | 700 | $ | 687 | $ | 682 | $ | 668 | ||||||||||
Assets under management | $ | 809,897 | $ | 736,401 | $ | 678,431 | $ | 619,420 | $ | 672,166 | ||||||||||
Book value per share | $ | 31.05 | $ | 28.94 | $ | 26.02 | $ | 28.77 | $ | 30.97 | ||||||||||
Tangible book value per share* | $ | 27.33 | $ | 25.18 | $ | 22.24 | $ | 24.99 | $ | 27.17 | ||||||||||
Equity to assets | 7.20 | % | 6.85 | % | 6.01 | % | 6.73 | % | 7.24 | % | ||||||||||
Tangible common equity ratio* | 6.39 | % | 6.01 | % | 5.19 | % | 5.90 | % | 6.41 | % | ||||||||||
Allowance for credit losses on loans to: | ||||||||||||||||||||
Total loans | 1.10 | % | 1.10 | % | 1.10 | % | 1.11 | % | 1.09 | % | ||||||||||
Non-accrual loans | 5.36x | 6.77x | 5.23x | 5.17x | 6.97x | |||||||||||||||
Non-accrual loans to total loans | 0.21 | % | 0.16 | % | 0.20 | % | 0.21 | % | 0.16 | % | ||||||||||
Non-performing assets to total assets** | 0.14 | % | 0.17 | % | 0.19 | % | 0.20 | % | 0.17 | % | ||||||||||
Net charge-offs to average total loans | 0.04 | % | 0.04 | % | 0.04 | % | 0.01 | % | 0.02 | % | ||||||||||
Capital Adequacy Ratios | ||||||||||||||||||||
Total risk-based capital ratio | 14.59 | % | 14.35 | % | 14.34 | % | 14.30 | % | 14.18 | % | ||||||||||
Common equity tier 1 risk-based capital ratio | 13.42 | % | 13.27 | % | 13.27 | % | 13.21 | % | 13.11 | % | ||||||||||
Tier 1 risk-based capital ratio | 13.42 | % | 13.27 | % | 13.27 | % | 13.21 | % | 13.11 | % | ||||||||||
Leverage ratio | 8.92 | % | 8.69 | % | 8.51 | % | 8.43 | % | 8.14 | % |
* Non-GAAP Financial Measures - see reconciliations below
**Note that based on the Company’s adoption of ASU 2022-02, Financial Instruments-Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures, the recognition and measurement guidance related to troubled debt restructurings (TDR) has been eliminated. As such, TDRs were removed from non-performing assets for the current reporting period to adhere to this standard. Prior periods included accruing TDRs in non-performing assets.
FIDELITY D & D BANCORP, INC. | ||||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures to GAAP | ||||||||||||||||||||
Reconciliations of Non-GAAP Measures to GAAP | Three Months Ended | |||||||||||||||||||
(dollars in thousands) | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |||||||||||||||
FTE net interest income (non-GAAP) | ||||||||||||||||||||
Interest income (GAAP) | $ | 22,338 | $ | 21,294 | $ | 20,135 | $ | 19,065 | $ | 18,178 | ||||||||||
Adjustment to FTE | 760 | 700 | 687 | 682 | 668 | |||||||||||||||
Interest income adjusted to FTE (non-GAAP) | 23,098 | 21,994 | 20,822 | 19,747 | 18,846 | |||||||||||||||
Interest expense (GAAP) | 5,313 | 2,967 | 1,625 | 920 | 887 | |||||||||||||||
Net interest income adjusted to FTE (non-GAAP) | $ | 17,785 | 19,027 | 19,197 | 18,827 | 17,959 | ||||||||||||||
Efficiency Ratio (non-GAAP) | ||||||||||||||||||||
Non-interest expenses (GAAP) | $ | 12,857 | $ | 12,854 | $ | 13,034 | $ | 12,808 | $ | 12,665 | ||||||||||
Net interest income (GAAP) | 17,025 | 18,327 | 18,510 | 18,145 | 17,291 | |||||||||||||||
Plus: taxable equivalent adjustment | 760 | 700 | 687 | 682 | 668 | |||||||||||||||
Non-interest income (GAAP) | 4,489 | 3,920 | 3,911 | 4,256 | 4,554 | |||||||||||||||
Net interest income (FTE) plus non-interest income (non-GAAP) | $ | 22,274 | $ | 22,947 | $ | 23,108 | $ | 23,083 | $ | 22,513 | ||||||||||
Efficiency ratio (non-GAAP) | 57.72 | % | 56.02 | % | 56.40 | % | 55.49 | % | 56.26 | % | ||||||||||
Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP) | ||||||||||||||||||||
Total assets (GAAP) | $ | 2,443,021 | $ | 2,378,372 | $ | 2,435,768 | $ | 2,414,940 | $ | 2,420,774 | ||||||||||
Less: Intangible assets, primarily goodwill | (21,071 | ) | (21,167 | ) | (21,264 | ) | (21,360 | ) | (21,462 | ) | ||||||||||
Tangible assets | 2,421,950 | 2,357,205 | 2,414,504 | 2,393,580 | 2,399,312 | |||||||||||||||
Total shareholders' equity (GAAP) | 175,887 | 162,950 | 146,487 | 162,619 | 175,243 | |||||||||||||||
Less: Intangible assets, primarily goodwill | (21,071 | ) | (21,167 | ) | (21,264 | ) | (21,360 | ) | (21,462 | ) | ||||||||||
Tangible common equity | 154,816 | 141,783 | 125,223 | 141,259 | 153,781 | |||||||||||||||
Common shares outstanding, end of period | 5,665,255 | 5,630,794 | 5,630,332 | 5,651,777 | 5,659,068 | |||||||||||||||
Tangible Common Book Value per Share | $ | 27.33 | $ | 25.18 | $ | 22.24 | $ | 24.99 | $ | 27.17 | ||||||||||
Tangible Common Equity Ratio | 6.39 | % | 6.01 | % | 5.19 | % | 5.90 | % | 6.41 | % | ||||||||||
Pre-Provision Net Revenue to Average Assets | ||||||||||||||||||||
Income before taxes (GAAP) | $ | 8,252 | $ | 8,857 | $ | 8,868 | $ | 9,076 | $ | 8,666 | ||||||||||
Plus: Provision for credit losses | 405 | 536 | 519 | 517 | 514 | |||||||||||||||
Total pre-provision net revenue (non-GAAP) | 8,657 | 9,393 | 9,387 | 9,593 | 9,180 | |||||||||||||||
Total (annualized) (non-GAAP) | $ | 35,110 | $ | 37,267 | $ | 37,240 | $ | 38,476 | $ | 37,232 | ||||||||||
Average assets | $ | 2,399,264 | $ | 2,392,614 | $ | 2,407,887 | $ | 2,378,584 | $ | 2,419,421 | ||||||||||
Pre-Provision Net Revenue to Average Assets (non-GAAP) | 1.46 | % | 1.56 | % | 1.55 | % | 1.62 | % | 1.54 | % |
FAQ
What were Fidelity D & D Bancorp's earnings for Q1 2023?
How much did diluted earnings per share change for FDBC?
What was the total asset growth for FDBC in Q1 2023?
What is the current Tier 1 capital ratio for Fidelity D & D Bancorp?