EX-99.1 2 a07-20276_1ex99d1.htm 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

%