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):  July 25, 2007

FIDELITY D & D BANCORP, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	333-90273	23-3017653
(State or other	(Commission	(IRS Employer
jurisdiction of	File Number)	Identification No.)
incorporation)

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):

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

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

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

oPre-commencementcommunications pursuant to Rule 13e-4(c) under the Exchange Act
 (17 CFR 240.13e-4(c))

FIDELITY D & D BANCORP, INC.
CURRENT REPORT ON FORM 8-K

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 25, 2007, Fidelity D & D Bancorp, Inc. issued a press release describing its results of operations for the quarter and six months ended June 30, 2007.  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.

(c) Exhibits.

	Exhibit Number	Description
99.1		Copy of the Press Release, dated July 25, 2007.

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:  July 25, 2007	By:	/s/ Salvatore R. DeFrancesco, Jr.
		Salvatore R. DeFrancesco, Jr.
		Treasurer and Chief Financial Officer

2

EXHIBIT INDEX

EXHIBIT NO.
99.1	Copy of the Press Release, dated July 25, 2007.

3

EX-99.1

Exhibit 99.1

FIDELITY D & D BANCORP, INC.
FOR IMMEDIATE RELEASE

Date: July 25, 2007

Contacts:
	Steven C. Ackmann	Salvatore R. DeFrancesco, Jr.
	President and	Treasurer and
	Chief Executive Officer	Chief Financial Officer
	570-346-4156	570-504-8000

FIDELITY D & D BANCORP, INC.
SECOND QUARTER 2007 FINANCIAL RESULTS

Dunmore, PA — Fidelity D & D Bancorp, Inc. (OTC Bulletin Board: FDBC), parent company of The Fidelity Deposit and Discount Bank, announced net income for the quarter ended June 30, 2007 of $1,159,000, a 23% increase compared to $939,000 for the same quarter of 2006.  Earnings per share on a fully diluted basis for the quarter totaled $0.56, up from $0.45 for the prior year period.

Net income for the six months ended June 30, 2007 was $2,203,000, a 12% increase compared to net income of $1,970,000 for the same 2006 period.  Earnings per share were $1.07 and $0.96 for the six months ended June 30, 2007 and 2006, respectively

Net interest income increased to $4,323,000 for the quarter ended June 30, 2007 from $4,265,000 recorded during the same quarter of 2006.  Growth in money market and non-interest bearing deposits, along with reductions in repurchase agreements and long-term debt each contributed towards containing rising interest costs below interest income growth while operating in a higher interest rate environment.  This improved the net interest margin to 3.34% for the second quarter of 2007 from 3.26% for same 2006 period.

Net interest income increased to $8,627,000 for the six months ended June 30, 2007 from $8,496,000 recorded during the same quarter of 2006.  Net interest margin was 3.35% during the first half of 2007, up five basis points from 3.30% during the same 2006 period.

No provision for loan loss was required during the second quarter or six months of 2007 compared to $175,000 and $250,000 in the same 2006 quarter and six month period, respectively. The allowance for loan losses was 1.24% of total loans at June 30, 2007, down from 1.36% at June 30, 2006.

“Our continuing efforts to improve asset quality and build a more stable deposit structure lead to improvements in both our margin and net income in this latest period,” said Steven C. Ackmann, President and CEO. “The recent opening of our new Green Ridge office, which is receiving widespread praise and exceeding our early expectations, is an important part of this strategy of building a solid core deposit base. Continuing with this plan, we anticipate breaking ground on our new West Scranton office on August 2, 2007.”

Total other income recorded for the quarter ended June 30, 2007 was $1,329,000, compared with $1,084,000 for the same quarter in 2006.  A gain recorded on sale of a foreclosed property in the second quarter of 2007 along with growth in service charge and fee income produced the $245,000 increase in

other income compared to the second quarter of 2006.  Total other income for the six months ended June 30, 2007 was $2,543,000, up compared to $2,213,000 for the same period in 2006.

Total other operating expenses increased from $3,948,000 to $4,088,000 for the quarters ending June 30, 2006 and 2007, respectively.  The operating expense increase resulted primarily from salary and benefit expenses plus more advertising expenses, associated with our Green Ridge branch grand opening, occurring during in the second quarter of 2007 as compared to 2006.  Total other operating expenses increased 4% from $7,871,000 for the six months ending June 30, 2006 to $8,201,000 for 2007.

The Company’s assets grew $11,174,000 to total $573,492,000 at June 30, 2007 from $562,318,000 at December 31, 2006.

Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 12 community banking offices and 19 ATM locations.

For more information please visit our investor relations web site located at www.the-fidelity.com.

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include the possibility that increased demand or prices for the company’s financial services and products may not occur, changing economic, interest rate and competitive conditions, technological developments and other risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission.

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Balance Sheets

At Period End:	Jun. 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sep. 30, 2006			Jun. 30, 2006
Assets
Total cash and cash equivalents	$	12,220,533		$	14,435,738		$	13,800,848		$	20,832,779		$	12,121,597
Investment securities	107,964,486			101,291,577			100,410,736			101,740,346			113,547,682
Federal Home Loan Bank Stock	4,151,900			3,598,600			3,795,100			3,259,400			4,558,400
Loans and leases	425,652,831			422,955,523			422,765,351			415,915,591			423,660,466
Allowance for loan losses	(5,294,537		)	(5,359,758		)	(5,444,303		)	(5,843,538		)	(5,738,470		)
Premises and equipment, net	13,331,402			10,941,355			11,324,465			11,296,696			11,521,561
Life insurance cash surrender value	8,331,225			8,254,777			8,177,961			8,105,171			8,033,031
Other assets	7,134,628			8,508,130			7,487,830			7,534,038			7,423,958
Total assets	$	573,492,468		$	564,625,942		$	562,317,988		$	562,840,483		$	575,128,225
Liabilities
Non-interest-bearing deposits	$	72,067,616		$	71,623,735		$	73,741,975		$	71,548,817		$	70,560,800
Interest-bearing deposits	349,263,741			342,443,261			336,592,620			348,180,970			352,294,555
Total deposits	421,331,357			414,066,996			410,334,595			419,729,787			422,855,355
Short-term borrowings	29,601,083			31,607,966			33,656,150			22,826,739			31,659,106
Long-term debt	66,125,522			62,331,630			62,536,210			65,590,062			68,324,751
Other liabilities	4,235,491			3,985,911			4,179,170			3,730,970			3,253,894
Total liabilities	521,293,453			511,992,503			510,706,125			511,877,558			526,093,106
Shareholders’ equity	52,199,015			52,633,439			51,611,863			50,962,925			49,035,119
Total liabilities and shareholders’ equity	$	573,492,468		$	564,625,942		$	562,317,988		$	562,840,483		$	575,128,225

Average Quarterly Balances:	Jun. 30, 2007		Mar. 31, 2007		Dec. 31, 2006		Sep. 30, 2006		Jun. 30, 2006
Assets
Total cash and cash equivalents	$	11,362,306	$	12,185,856	$	10,970,802	$	10,133,961	$	10,258,096
Investment securities	112,993,078		108,698,773		114,670,680		116,520,987		122,638,043
Loans and leases, net	415,200,287		419,942,066		412,624,062		414,380,326		414,575,812
Premises and equipment, net	10,994,719		11,194,541		11,260,563		11,480,499		11,523,344
Other assets	16,905,957		14,415,628		13,908,846		12,321,122		12,054,841
Total assets	$	567,456,347	$	566,436,864	$	563,434,953	$	564,836,895	$	571,050,136
Liabilities
Non-interest-bearing deposits	$	70,718,373	$	69,737,257	$	70,975,409	$	68,170,366	$	67,504,856
Interest-bearing deposits	344,421,824		354,901,749		344,024,072		349,113,993		337,651,638
Total deposits	415,140,197		424,639,006		414,999,481		417,284,359		405,156,494
Short-term borrowings and long-term debt	95,203,717		85,273,730		92,572,901		93,953,798		113,726,078
Other liabilities	4,208,926		4,341,031		4,501,801		3,968,526		3,374,110
Total liabilities	514,552,840		514,253,767		512,074,183		515,206,683		522,256,682
Shareholders’ equity	52,903,507		52,183,097		51,360,770		49,630,212		48,793,454
Total liabilities and shareholders’ equity	$	567,456,347	$	566,436,864	$	563,434,953	$	564,836,895	$	571,050,136

FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income

	Three Months Ended				Six Months Ended
	Jun. 30, 2007		Jun. 30, 2006		Jun. 30, 2007		Jun. 30, 2006
Interest income
Loans and leases	$	7,260,240	$	7,001,132	$	14,544,786	$	13,631,908
Securities and other	1,424,138		1,370,036		2,771,408		2,632,697
Total interest income	8,684,378		8,371,168		17,316,194		16,264,605
Interest expense
Deposits	3,222,678		2,750,117		6,556,701		5,147,023
Borrowings and debt	1,139,144		1,355,627		2,132,747		2,621,849
Total interest expense	4,361,822		4,105,744		8,689,448		7,768,872
Net interest income	4,322,556		4,265,424		8,626,746		8,495,733
Provision for loan losses	—		175,000		—		250,000
Other income	1,329,114		1,083,952		2,542,777		2,212,777
Other expenses	4,087,553		3,948,149		8,200,596		7,870,899
Provision for income taxes	405,384		287,607		765,843		617,360
Net income	$	1,158,733	$	938,620	$	2,203,084	$	1,970,251

	Three Months Ended
	Jun. 30, 2007		Mar. 31, 2007		Dec. 31, 2006		Sep. 30, 2006		Jun. 30, 2006
Interest income
Loans and leases	$	7,260,240	$	7,284,546	$	7,268,584	$	7,226,814	$	7,001,132
Securities and other	1,424,138		1,347,270		1,401,955		1,367,752		1,370,036
Total interest income	8,684,378		8,631,816		8,670,539		8,594,566		8,371,168
Interest expense
Deposits	3,222,678		3,334,023		3,213,402		3,132,402		2,750,117
Borrowings and debt	1,139,144		993,603		1,097,766		1,148,667		1,355,627
Total interest expense	4,361,822		4,327,626		4,311,168		4,281,069		4,105,744
Net interest income	4,322,556		4,304,190		4,359,371		4,313,497		4,265,424
Provision for loan losses	—		—		—		75,000		175,000
Other income	1,329,114		1,213,663		1,173,086		1,136,275		1,083,952
Other expenses	4,087,553		4,113,043		4,011,713		3,995,764		3,948,149
Provision for income taxes	405,384		360,459		395,688		349,032		287,607
Net income	$	1,158,733	$	1,044,351	$	1,125,056	$	1,029,976	$	938,620

FIDELITY D & D BANCORP, INC.

Selected Financial Ratios and Other Data

	Three Months Ended
	Jun. 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sep. 30, 2006			Jun. 30, 2006
Selected Returns and financial ratios
Diluted earnings per share	$	0.56		$	0.51		$	0.54		$	0.51		$	0.45
Dividends per share	$	0.22		$	0.22		$	0.22		$	0.22		$	0.22
Yield on interest-earning assets (FTE)	6.61		%	6.65		%	6.55		%	6.45		%	6.29		%
Cost of interest-bearing liabilities	3.98		%	3.99		%	3.92		%	3.83		%	3.65		%
Net interest spread	2.63		%	2.66		%	2.63		%	2.62		%	2.64		%
Net interest margin	3.34		%	3.36		%	3.34		%	3.29		%	3.26		%
Return on average assets	0.82		%	0.75		%	0.79		%	0.72		%	0.66		%
Return on average equity	8.79		%	8.12		%	8.69		%	8.18		%	7.66		%
Efficiency ratio	71.16		%	72.86		%	71.31		%	71.85		%	72.15		%
Expense ratio	1.98		%	2.11		%	2.03		%	2.03		%	2.03		%

	Six Months Ended
	Jun. 30, 2007			Jun. 30, 2006
Diluted earnings per share	$	1.07		$	0.96
Dividends per share	$	0.44		$	0.44
Yield on interest-earning assets (FTE)	6.63		%	6.21		%
Cost of interest-bearing liabilities	3.98		%	3.51		%
Net interest spread	2.65		%	2.70		%
Net interest margin	3.35		%	3.30		%
Return on average assets	0.78		%	0.70		%
Return on average equity	8.46		%	8.08		%
Efficiency ratio	71.99		%	71.77		%
Expense ratio	2.04		%	2.03		%

Other data

	Jun. 30, 2007			Mar. 31, 2007			Dec. 31, 2006			Sep. 30, 2006			Jun. 30, 2006
Book value per share	$	25.25		$	25.51		$	25.09		$	24.82		$	23.93
Equity to assets	9.10		%	9.32		%	9.18		%	9.05		%	8.53		%
Allowance for loan losses to:
Total loans	1.24		%	1.27		%	1.29		%	1.41		%	1.36		%
Non-accrual loans	1.21		x	1.69		x	1.62		x	1.43		x	0.77		x
Non-accrual loans to net loans	1.04		%	0.76		%	0.80		%	1.00		%	1.79		%
Non-performing assets to total assets	0.78		%	0.67		%	0.65		%	0.93		%	1.36		%