8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

______________

Date of Report (Date of earliest event reported): October 27, 2021

FIDELITY D & D BANCORP, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	001-38229	23-3017653
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Blakely and Drinker Streets, Dunmore, PA	18512
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (570) 342-8281

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	FDBC	The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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FIDELITY D & D BANCORP, INC.

CURRENT REPORT ON FORM 8-K

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 27, 2021, Fidelity D & D Bancorp, Inc. issued a press release announcing its fourth quarter dividend and describing its results of operations for the quarter and year-to-date ended September 30, 2021. A copy of the related press release is being furnished as Exhibit 99.1 to this Form 8-K.

The information in this Item 2.02 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Copy of the Press Release, dated October 27, 2021.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FIDELITY D & D BANCORP, INC.

Date: October 27, 2021	By: /s/ Salvatore R. DeFrancesco, Jr.
	Salvatore R. DeFrancesco, Jr.
	Treasurer and Chief Financial Officer

EX-99.1

Exhibit 99.1

FIDELITY D & D BANCORP, INC.

FOR IMMEDIATE RELEASE

Date:  October 27, 2021

Contacts:

Daniel J. Santaniello	Salvatore R. DeFrancesco, Jr.
President and Chief Executive Officer	Treasurer andChief Financial Officer
570-504-8035	570-504-8000

FIDELITY D & D BANCORP, INC.

REPORTS THIRD QUARTER2021FINANCIAL RESULTS

Dunmore, PA –Fidelity D & D Bancorp, Inc.  (NASDAQ: FDBC) and its banking subsidiary,The Fidelity Deposit and Discount Bank,  announced its most recent dividend declaration and unaudited, consolidated financial results for the three and nine month periods ended September 30, 2021.

Unaudited Financial Information

Net income for the three months ended September 30, 2021was  $4.9 million,  or $0.85 diluted earnings per share,  compared to $5.0 million, or $0.99 diluted earnings per share, for the three months endedSeptember 30, 2020.  The $0.1million, or 2%,reduction in net incomeresultedfrom a  $5.7 million increase in non-interest expenses which more than offset the $4.6 million increase in net interest income andreduction of $1.1 million in the provision for loan losses.  Merger-related expenses were $2.2 million for the third quarter of 2021, or $2.0 million higher than merger-related expenses for the third quarter of 2020 due to the timing of the mergers.  Diluted earnings per share decreased by $0.14 per share due to the higher non-interest expenses from merger-related expenses incurred from the merger during the third quarter of 2021which also resulted in an increase in the average shares outstanding. 

As previously announced, Fidelity D & D Bancorp, Inc. (the “Company”) acquired Landmark Bancorp, Inc. (“Landmark”) and its wholly-owned subsidiary Landmark Community Bank effective July 1, 2021.  The fair value of assets acquired included  $375.5 million in total assets, $308.5 million in deposits and $298.9 million in loans added to the Company’s balance sheet.  The reported results include provisional estimates of the accounting for the acquisition of Landmark which are subject to revision in future periods when the application of the accounting guidance for business combinations is finalized.  Based on the closing price on June 30, 2021, the merger valuation was $42.9 million. 

Excluding merger-related expenses, adjusted net income was  $6.6 million for the thirdquarter of 2021, or $1.16 diluted earnings per share, compared toadjusted net income of$5.1 million, or $1.03 diluted earnings per share, for the third quarter of 2020.  For more detail on adjusted net income which is a non-GAAP measurement, refer to the “Non-GAAP Measures” table within the Selected Financial Ratios and Other Data section.

“We are very pleased with third quarter financial results. The Fidelity Bankers have continued to be focused on the execution of the strategic initiative of building long-term relationships through organic and inorganic growth,” stated Daniel J. Santaniello, President and Chief Executive Officer. “While the year-to-date 2021 financial results have been adversely impacted with the anticipated and non-recurring expenses associated with the acquisition of Landmark Bancorp, the Board of Directors and Management are pleased with the Company’s core operating results.  We believe the addition of the Landmark Bankers and the acquired strong balance sheet will continue to build long-term shareholder value.”

Paycheck Protection Program

On July 1, 2021, the Company acquired $20.3 million in Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) loans as a result of the merger with Landmark.

As ofSeptember 30, 2021, the outstanding PPP loan balances totaled $66.8 million.  Total PPP loans generated approximately $9.4 million of SBA processing fees, net of origination expenses, of which $7.3 million was earned to date with $1.4 million and $4.2 million recognized during the three and nine months ended September 30, 2021.  The $2.1 million remaining balance is expected to continue to be earned over the remaining life of the loans; however, the fees may be recognized earlier upon loan forgiveness by the SBA or if paid off by the borrower.

Consolidated Third Quarter Operating Results Overview

Net interest income was $17.2million for the third quarter of 2021, a 37% increase over the  $12.5million earned for the thirdquarter of 2020.The $4.7 million improvement in net interest income resulted primarilyfrom a  $594.3 million increase inthe average balance of interest-earning assets which offset the declining yields on these assets supplemented by lower interest expense from a decrease in rates paid on interest-bearing liabilities and payoff of the FHLB advances.  The loan portfolio had the biggest impact, producing a  $3.4 million increase in interest income from $286.6 million in higher average balances primarily from the addition of Landmark loans to the balance sheet.  Higher interest income in the commercial portfolio was the driver with $180.8 million in larger average balances adding $2.7million, which included$0.4million from additional SBA feesattributable to PPP loans recognized during the third quarter of 2021versus the 2020 period.  Interest income in the consumer and residential portfolios also contributed to the increase due to the larger average balances in those portfolios.  Interest income from the investment portfolio increased $1.1 million as $319.5 million in increased average balances offset declining yields.  Interest expense was $0.2 million lowerdue to decreases in deposit rates.  The average balance of interest-bearing deposits increased $467.0million and the rates paid on these deposits decreased 17 basis points.

The overall cost of interest-bearing liabilities was 0.26% for the third quarter of 2021,  a decrease of 15 basis points from the 0.41% paid for thethird quarter of 2020.  The cost of funds decreased 11 basis points to 0.19% for the third quarter of 2021 from 0.30% for the thirdquarter of 2020.  The Company’s fully-taxable equivalent (“FTE”) (non-GAAP measurement)net interest spread was 3.14% for the third quarter of 2021, or six basis points higher than the 3.08% recorded for the thirdquarter of 2020.  FTE net interest margin increased by two basis points to 3.22% for the three months ended September 30, 2021 from 3.20% for the same 2020 period.

The provision for loan losses was $0.4 million for the third quarter of 2021, a $1.1 milliondecrease compared to $1.5 million for the third quarter of 2020.The decrease in the provision compared to the quarter ended September 30, 2020 was attributed to the COVID-19-related provisioning that occurred during the third quarter of 2020, which was not similarly warranted for the quarter ended September 30, 2021 due to the improvement in the Company’s economic environment compared to the third quarter of 2020.  This amount of provisioning reflected what management deemed necessary to maintain the allowance for loan and lease losses at an adequate level.  

Total non-interest income decreased $0.4 million, or 8%, to$4.0 million for the thirdquarter of 2021compared to$4.4 million for the third quarter of 2020.   The decrease in non-interest income was attributable to $1.2 millionlower gains on loan salesduring the third quarter of 2021 compared to the same 2020 period due to managements’ decision to hold mortgages longer to earn interest income during the third quarter of 2021.  Partially offsetting this decrease was $0.2 million higher interchange fees,  $0.2 million in additional service charges on deposits, $0.1 million growth in trust fiduciary fees and $0.1 million higher earnings on bank-owned life insurance.

Non-interest expenses increased$5.7 million, or 60%, for the third quarter of 2021 to $15.2million from $9.5 million for the same quarter of 2020.  Most of the increase was due to the $2.0 million higher nonrecurring

merger-related expenses, primarily consisting of data processing, salaries and employee benefits and professional services expenses in connection with the Landmark acquisition.  The majority of the expenses related to the MNB acquisition were recognized during the second quarter of 2020 while most of the expenses related to the Landmark acquisition were recognized during the third quarter of 2021.  The Company also recognized $1.6 million in added salaries and employee benefits primarily due to an increase in the number of bankers post-merger and higher performance-based incentive compensation.  Advertising and marketing expenses increased $0.5 million due to higher advertising costs and a $0.2 million donation to Fidelity D & D Charitable Foundation.  Additionally, premises and equipment expenses were $0.4 million higher and data processing and communications expenses grew $0.2 million due to new property, equipment and systems in place after the Landmark merger. 

The provision for income taxes decreased $0.3 million during the third quarter of 2021  due to a larger proportion of tax-free income compared to the third quarter of 2020.  

Consolidated Year-To-Date Operating Results Overview

Net interest income was $44.0 million for the nine months ended September 30, 2021 compared to $31.4 million for the nine months ended September 30, 2020.  The $12.6 million, or 40%, improvement was the result of earnings from a larger average balance of interest-earning assets combined with lower interest expense due to declining rates paid on interest-bearing liabilities.  The loan portfolio drove the increased interest income which grew $8.7 million from higher average balances due primarily to loans acquired from the merger with Landmark.The higher interest incomeincluded $4.2 millionin SBA fees recognizedattributable to PPP loans during the first nine months of 2021,a  $2.4million increase compared tothe $1.8 million recognized for the first nine months of 2020.  Interest income from investments increased $2.3 million from a $263.9 million larger average balance in the portfolio. On the funding side, interest expense decreased by $1.6 million due to lower rates paid on interest-bearing deposits and a smaller balance of average borrowings.  FTE net interest spread was 3.14% for the first nine months of 2021, or two basis points lower than the 3.16% recorded for the first nine months of 2020.  Over the same time period, the Company’s FTE net interest margin decreased by eight basis points to 3.23% from 3.31%.

For the nine months ended September 30, 2021, the provision for loan losses was $1.6 million compared to $3.7million for the same 2020 period.  The $2.1 million decrease in the provision was attributed to the COVID-19-related provisioning that occurred during the nine months ended September 30, 2020 which was not similarly warranted during the nine months ended September 30, 2021 due to the improvement in the Company’s economic environment compared to the year earlier period.  This amount of provisioning reflected the changing risk profile within the loan portfolio to what management deemed necessary to maintain the allowance for loan and lease losses at an adequate level.

Total non-interest income for the nine months ended September 30, 2021 was $14.1 million, an increase of $4.3 million, or 43%, from $9.8 million for the nine months ended September 30, 2020.  The increase in other income was primarily due to $1.7 million more in gains on loan sales and $1.1 million higher interchange fees.  Other increases that contributed to the non-interest income growthwere as follows: $0.3 million in loan service fees,  $0.3 million in earnings on bank-owned life insurance, $0.3 million in trust fiduciary fees and $0.3 million in service charges on deposits.  

Non-interest expenses increased to $37.5 million for the nine months ended September 30, 2021, an increase of $9.4 million, or 33%, from $28.1 million for the nine months ended September 30, 2020.  The largest driver of this increase was a $4.2 million increase in salaries and employee benefit expenses from more salaries for a larger employee base and higher performance-based incentive compensation.  In addition, there was $1.1 million more premises and equipment expenses, $0.9 million higher professional services and $0.9 million more in advertising and marketing expenses.  Merger-related expenses were $0.7 million higher for the nine months ended September 30, 2021 from the Landmark merger compared to expenses incurred for the nine months ended September 30, 2020 from the MNB merger.

The provision for income taxes increased $1.2 million during first nine months of 2021 compared to the same 2020 period due to the higher income before taxes. 

Consolidated Balance Sheet & Asset Quality Overview

During the first nine months of 2021, the Company’s total assets increased$712 million, or 42%, to $2.4  billion as of September 30, 2021from $1.7  billion at December 31, 2020.  During the same time period, total liabilities increased $673 million, or 44%, from $1.5 billion to $2.2 billion.  This growth resulted primarily from the Landmark merger.  Deposit growth, excluding deposits acquired from Landmark, of $345million was used to purchase $342 million in securities and fundorganic loan portfolio growth.The deposit growthincludesincreases in personal, public and business accounts, some of which are associated with government-provided funding programs in response to the pandemic and this funding may be temporary.

Total non-performing assets were $6.1 million, or 0.25% of total assets, at September 30, 2021, compared to $6.7 million, or 0.39% of total assets, at December 31, 2020.  Past due and non-accrual loans to total loans were 0.27% at September 30, 2021 compared to 0.47% at December 31, 2020.  Net charge-offs to average total loans decreased to 0.02% at September 30, 2021 comparedto 0.08% at September 30, 2020 and 0.08% at December 31, 2020.

Shareholders’ equity increased $38.9 million, or 23%, to $205.6 million at September 30, 2021 from $166.7 million at December 31, 2020.  The increase was primarily caused by $35.1 million in common stock issued as a result of the Landmark merger.  Net income of $16.2 million was partially offset by $4.7 million in cash dividends paid to shareholders and a $8.8 million, after tax, reduction in net unrealized gains from the investment portfolio stemming from the substantial increase in intermediate to long-term U.S. treasury interest rates.  An additional  $1.1 million recorded from the issuance of common stock under the Company’s stock plans and stock-based compensationalso contributed to the increase in shareholders' equity.  The Company remains well capitalized with Tier 1 capital at 7.99% of total average assets as ofSeptember 30, 2021.Tangible book value per share was $32.57 at September 30, 2021 compared to $31.72 at December 31, 2020.

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 23 full-service offices throughout Lackawanna, Luzerne and Northampton Counties, along with the 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 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 wasaccomplished by having provided nearly 1,400 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the marketsservedthroughout 2020.  The Companycontinues  its mission of exceeding client expectations through a unique banking experience, providing 24 hour, 7 days a week service to clients through branch offices, online at www.bankatfidelity.com, and through the Customer Care Center at 800-388-4380.  The Company's deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures to provide information useful to the reader in understandingits 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 used 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 GAAP to non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release.

Management believes merger-related expenses are not standard costs necessary for operations.  These charges principally represent professional fees and system conversion and integration costs related to the transaction.  These costs are specific to each individual transaction and may vary significantly based on the size and complexity of the transaction.  Management also believes the FHLB prepayment fee incurred to payoff FHLB advances is non-recurring and should be excluded from normal operating expenses for proper comparison.

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 21% for 2021 and 2020.

Forward-looking statements

Certain of the matters discussed in this press releaseconstitute 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:

§ the effects of economic conditions particularly with regard to the negative impact of severe, wide-ranging and continuing disruptions caused by the spread of Coronavirus Disease 2019 (COVID-19) 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;

§ acquisitions and integration of acquired businesses, including but not limited to, the recent acquisition of MNB Corporation (“MNB”) and its wholly-owned bank subsidiary, and Landmark and its wholly-owned bank subsidiary;

§ 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 the Tax Cuts and Jobs Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations promulgated there under;

§ 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 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 in 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;

§ technological changes;

§ the interruption or breach in security of our information systems 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;

§ volatilities in the securities markets;

§ 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.

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Balance Sheets

(dollars in thousands)

At Period End:	September 30, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	167,386	$	69,346
Investment securities		686,926		392,420
Restricted investments in bank stock		3,321		2,813
Loans and leases		1,435,997		1,149,438
Allowance for loan losses		(15,601)		(14,202)
Premises and equipment, net		29,406		27,626
Life insurance cash surrender value		52,417		44,285
Goodwill and core deposit intangible		21,678		8,787
Other assets		30,269		18,997
Total assets	$	2,411,799	$	1,699,510
Liabilities
Non-interest-bearing deposits	$	586,952	$	407,496
Interest-bearing deposits		1,576,498		1,102,009
Total deposits		2,163,450		1,509,505
Secured borrowings		16,885		-
FHLB advances		-		5,000
Other liabilities		25,895		18,335
Total liabilities		2,206,230		1,532,840
Shareholders' equity		205,569		166,670
Total liabilities and shareholders' equity	$	2,411,799	$	1,699,510
Average Year-To-Date Balances:	September 30, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	156,840	$	126,155
Investment securities		515,812		280,983
Restricted investments in bank stock		3,160		3,044
Loans and leases		1,248,495		1,019,373
Allowance for loan losses		(16,182)		(11,277)
Premises and equipment, net		28,807		26,123
Life insurance cash surrender value		47,200		29,912
Goodwill and core deposit intangible		8,994		5,316
Other assets		21,853		16,036
Total assets	$	2,014,979	$	1,495,665
Liabilities
Non-interest-bearing deposits	$	494,582	$	340,211
Interest-bearing deposits		1,309,140		933,981
Total deposits		1,803,722		1,274,192
Short-term borrowings		129		49,165
Secured borrowings		6,787		-
FHLB advances		1,134		10,608
Other liabilities		20,607		17,765
Total liabilities		1,832,379		1,351,730
Shareholders' equity		182,600		143,935
Total liabilities and shareholders' equity	$	2,014,979	$	1,495,665

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Statements of Income

(dollars in thousands)

		Three Months Ended				Nine Months Ended
		Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
Interest income
Loans and leases	$	15,359	$	11,994	$	39,817	$	31,126
Securities and other		2,814		1,705		6,863		4,534
Total interest income		18,173		13,699		46,680		35,660
Interest expense
Deposits		(878)		(1,070)		(2,583)		(3,781)
Borrowings and debt		(121)		(93)		(147)		(516)
Total interest expense		999		1,163		2,730		4,297
Net interest income		17,174		12,536		43,950		31,363
Provision for loan losses		(450)		(1,500)		(1,550)		(3,700)
Non-interest income		4,009		4,370		14,102		9,833
Non-interest expense		(15,185)		(9,474)		(37,492)		(28,089)
Income before income taxes		5,548		5,932		19,010		9,407
Provision for income taxes		(689)		(955)		(2,788)		(1,545)
Net income	$	4,859	$	4,977	$	16,222	$	7,862
	Three Months Ended
		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Interest income
Loans and leases	$	15,359	$	11,950	$	12,508	$	12,115	$	11,994
Securities and other		2,814		2,217		1,832		1,720		1,705
Total interest income		18,173		14,167		14,340		13,835		13,699
Interest expense
Deposits		(878)		(841)		(864)		(975)		(1,070)
Borrowings and debt		(121)		-		(26)		(39)		(93)
Total interest expense		999		841		890		1,014		1,163
Net interest income		17,174		13,326		13,450		12,821		12,536
Provision for loan losses		(450)		(300)		(800)		(1,550)		(1,500)
Non-interest income		4,009		4,577		5,516		4,835		4,370
Non-interest expense		(15,185)		(10,851)		(11,456)		(10,230)		(9,474)
Income before income taxes		5,548		6,752		6,710		5,876		5,932
Provision for income taxes		(689)		(1,056)		(1,043)		(704)		(955)
Net income	$	4,859	$	5,696	$	5,667	$	5,172	$	4,977

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Balance Sheets

(dollars in thousands)

At Period End:		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Assets
Cash and cash equivalents	$	167,386	$	170,064	$	222,953	$	69,346	$	131,778
Investment securities		686,926		554,955		436,622		392,420		340,310
Restricted investments in bank stock		3,321		3,231		2,931		2,813		2,766
Loans and leases		1,435,997		1,134,158		1,153,160		1,149,438		1,151,010
Allowance for loan losses		(15,601)		(15,245)		(14,839)		(14,202)		(12,884)
Premises and equipment, net		29,406		27,615		27,275		27,626		28,411
Life insurance cash surrender value		52,417		44,858		44,582		44,285		33,068
Goodwill and core deposit intangible		21,678		8,613		8,697		8,787		8,877
Other assets		30,269		20,984		31,711		18,997		27,707
Total assets	$	2,411,799	$	1,949,233	$	1,913,092	$	1,699,510	$	1,711,043
Liabilities
Non-interest-bearing deposits	$	586,952	$	491,051	$	518,352	$	407,496	$	408,840
Interest-bearing deposits		1,576,498		1,266,609		1,204,548		1,102,009		1,108,283
Total deposits		2,163,450		1,757,660		1,722,900		1,509,505		1,517,123
Secured borrowings		16,885		-		-		-		-
FHLB advances		-		-		-		5,000		5,000
Other liabilities		25,895		19,388		26,610		18,335		27,309
Total liabilities		2,206,230		1,777,048		1,749,510		1,532,840		1,549,432
Shareholders' equity		205,569		172,185		163,582		166,670		161,611
Total liabilities and shareholders' equity	$	2,411,799	$	1,949,233	$	1,913,092	$	1,699,510	$	1,711,043
Average Quarterly Balances:		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Assets
Cash and cash equivalents	$	185,835	$	171,968	$	111,904	$	116,964	$	180,030
Investment securities		640,900		489,424		414,626		363,728		322,875
Restricted investments in bank stock		3,430		3,152		2,891		2,826		2,763
Loans and leases		1,430,142		1,150,286		1,162,112		1,150,652		1,143,590
Allowance for loan losses		(18,716)		(15,285)		(14,500)		(13,085)		(11,814)
Premises and equipment, net		31,381		27,502		27,495		28,228		28,481
Life insurance cash surrender value		52,285		44,751		44,478		33,512		32,978
Goodwill and core deposit intangible		9,579		8,648		8,746		8,837		8,926
Other assets		23,420		20,593		21,527		16,502		17,703
Total assets	$	2,358,256	$	1,901,039	$	1,779,279	$	1,708,164	$	1,725,532
Liabilities
Non-interest-bearing deposits	$	579,629	$	464,818	$	437,740	$	408,623	$	407,605
Interest-bearing deposits		1,522,149		1,249,347		1,151,855		1,111,291		1,055,183
Total deposits		2,101,778		1,714,165		1,589,595		1,519,914		1,462,788
Short-term borrowings		68		177		144		-		78,056
Secured borrowings		20,140		-		-		-		-
FHLB advances		49		-		3,389		5,000		5,000
Other liabilities		23,798		19,026		18,944		19,051		19,462
Total liabilities		2,145,833		1,733,368		1,612,072		1,543,965		1,565,306
Shareholders' equity		212,423		167,671		167,207		164,199		160,226
Total liabilities and shareholders' equity	$	2,358,256	$	1,901,039	$	1,779,279	$	1,708,164	$	1,725,532

FIDELITY D & D BANCORP, INC.

Selected Financial Ratios and Other Data

		Three Months Ended
		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Selected returns and financial ratios
Basic earnings per share	$	0.86	$	1.14	$	1.14	$	1.04	$	1.00
Diluted earnings per share	$	0.85	$	1.13	$	1.13	$	1.03	$	0.99
Dividends per share	$	0.30	$	0.30	$	0.30	$	0.30	$	0.28
Yield on interest-earning assets (FTE)*		3.40%		3.29%		3.61%		3.53%		3.49%
Cost of interest-bearing liabilities		0.26%		0.27%		0.31%		0.36%		0.41%
Cost of funds		0.19%		0.20%		0.23%		0.26%		0.30%
Net interest spread (FTE)*		3.14%		3.02%		3.30%		3.17%		3.08%
Net interest margin (FTE)*		3.22%		3.10%		3.39%		3.28%		3.20%
Return on average assets		0.82%		1.20%		1.29%		1.20%		1.15%
Return on average equity		9.07%		13.63%		13.75%		12.53%		12.36%
Return on average tangible equity*		9.50%		14.37%		14.50%		13.25%		12.61%
Efficiency ratio (FTE)*		69.79%		59.01%		59.11%		56.68%		55.08%
Expense ratio		1.88%		1.32%		1.35%		1.26%		1.18%

		Nine Months Ended
		Sep. 30, 2021		Sep. 30, 2020
Basic earnings per share	$	3.11	$	1.76
Diluted earnings per share	$	3.09	$	1.75
Dividends per share	$	0.90	$	0.84
Yield on interest-earning assets (FTE)*		3.42%		3.76%
Cost of interest-bearing liabilities		0.28%		0.60%
Cost of funds		0.20%		0.45%
Net interest spread (FTE)*		3.14%		3.16%
Net interest margin (FTE)*		3.23%		3.31%
Return on average assets		1.08%		0.74%
Return on average equity		11.88%		7.66%
Return on average tangible equity*		12.49%		7.90%
Efficiency ratio (FTE)*		62.98%		67.04%
Expense ratio		1.55%		1.71%

Non-GAAP Measures		Three Months Ended				Nine Months Ended
(dollars in thousands except per share data)		Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
Net income	$	4,859	$	4,977	$	16,222	$	7,862
Merger-related expenses, net of income taxes		1,739		172		2,629		2,011
FHLB prepayment penalty, net of income taxes		-		(1)		291		380
Adjusted net income*	$	6,598	$	5,148	$	19,142	$	10,253
Adjusted basic earnings per share*	$	1.17	$	1.04	$	3.67	$	2.30
Adjusted diluted earnings per share*	$	1.16	$	1.03	$	3.64	$	2.29
Interest income adjustment to FTE*	$	577	$	295	$	1,480	$	704
Adjusted return on average assets*		1.11%		1.19%		1.27%		0.96%
Adjusted return on average tangible equity*		12.90%		12.81%		14.74%		10.00%

Other financial data		At period end:
(dollars in thousands except per share data)		Sep. 30, 2021		Jun. 30, 2021		Mar. 31, 2021		Dec. 31, 2020		Sep. 30, 2020
Book value per share	$	36.41	$	34.47	$	32.75	$	33.48	$	32.47
Tangible book value per share*	$	32.57	$	32.74	$	31.00	$	31.72	$	30.68
Equity to assets		8.52%		8.83%		8.55%		9.81%		9.45%
Allowance for loan losses to:
Total loans		1.12%		1.35%		1.30%		1.27%		1.13%
Non-accrual loans		5.68x		4.81x		3.78x		3.77x		3.27x
Non-accrual loans to total loans		0.19%		0.28%		0.34%		0.33%		0.34%
Non-performing assets to total assets		0.25%		0.31%		0.36%		0.39%		0.41%
Net charge-offs to average total loans		0.02%		0.03%		0.06%		0.08%		0.08%
Capital Adequacy Ratios
Total risk-based capital ratio		14.77%		16.27%		16.47%		16.46%		16.39%
Common equity tier 1 risk-based capital ratio		13.61%		15.02%		15.21%		15.21%		15.14%
Tier 1 risk-based capital ratio		13.61%		15.02%		15.21%		15.21%		15.14%
Leverage ratio		7.99%		8.38%		8.72%		8.81%		8.90%

* See non-GAAP Financial Measures above. 

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Document And Entity Information	Oct. 27, 2021
Document And Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 27, 2021
Entity Registrant Name	FIDELITY D & D BANCORP, INC.
Entity Incorporation, State or Country Code	PA
Entity File Number	001-38229
Entity Tax Identification Number	23-3017653
Entity Address, Address Line One	Blakely and Drinker Streets
Entity Address, City or Town	Dunmore
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18512
City Area Code	570
Local Phone Number	342-8281
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	FDBC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001098151
Amendment Flag	false