FDBC · Fidelity D & D Bancorp, Inc.

Fidelity D & D Bancorp, Inc. delivered robust first quarter 2026 results, with net income surging 25% to $7.5 million or $1.28 per diluted share, primarily propelled by a $2.4 million or 14% rise in net interest income to $19.4 million. This growth stemmed from a $160.6 million increase in average interest-earning assets, particularly loans which contributed $2.0 million more in FTE interest income via higher balances and a 5 basis point yield improvement, alongside elevated interest from deposits at other institutions. Interest expense declined slightly by $0.2 million despite higher deposit volumes, thanks to a 22 basis point drop in rates paid on interest-bearing deposits, expanding the FTE net interest spread to 2.50% (up 26 basis points) and net interest margin to 3.08% (up 19 basis points). Non-interest income grew 4% to $5.2 million, boosted by $0.4 million in fees from commercial loans with interest rate hedges and $0.3 million in wealth management revenue, particularly personal trust fees, though offset by lower gains on sold loans. Non-interest expenses rose 4% to $15.2 million, driven by $0.4 million higher salaries and benefits from staffing and incentives. Provision for credit losses increased to $875 thousand on loans and $90 thousand on unfunded commitments due to portfolio growth, especially commercial construction. Balance sheet expansion saw total assets hit $2.9 billion, with $111.9 million loan growth funded by $109.1 million in deposits, maintaining strong asset quality at 0.09% non-performing assets. CEO Daniel J. Santaniello highlighted solid asset growth, operational execution, and core business strength, with the company remaining well-capitalized (Tier 1 at 9.38%). Tangible book value per share improved to $38.67, underscoring sustained profitability and capital accretion for investors.