EX-99.1 2 a09-19547_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FIDELITY D & D BANCORP, INC.

FOR IMMEDIATE RELEASE

 

Date: July 22, 2009

 

  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 2009 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, 2009 of $912,000 compared to $1,204,000 for the same quarter of 2008.  This net income decline resulted from increased other operating expenses principally related to an increase in FDIC insurance assessments of $321,000, which includes a special assessment of $255,000.  Earnings per share on a fully diluted basis for the quarter totaled $0.44 down from $0.59 for the prior year period.

 

Net income for the six months ended June 30, 2009 was $1,737,000 compared to net income of $2,293,000 for the same 2008 period.  Earnings per share were $0.84 and $1.11 for the six months ended June 30, 2009 and 2008, respectively.  Provision for loan loss, other-than-temporary impairment, and FDIC insurance assessments, partially offset by mortgage banking gains, were the primary drivers reducing net income for the first six months of 2009 compared to the same 2008 period.

 

Net interest income decreased to $4,740,000 for the quarter ended June 30, 2009 from $4,943,000 recorded during the same quarter of 2008.  The cost reduction from lowering rates on interest bearing liabilities lagged behind the effect the current interest rate environment had on earning asset yields.  As a result, net interest income dipped $203,000, or 4%, for the second quarter of 2009.  This earnings decline, in relation to the $15,496,000 reduction in average earning assets, maintained the net interest margin at 3.70% for the second quarter of 2009, compared to 3.71% for same 2008 period.

 

Net interest income increased to $9,565,000 for the six months ended June 30, 2009 from $9,490,000 recorded during the same quarter of 2008.  Net interest margin was 3.71% during the first half of 2009 compared to 3.54% during the same 2008 period.

 

“While the worst of the financial crisis seems to be behind us, the current recession and the tumult in the industry has made the first half of 2009 one of the most challenging for bankers, ever,” said Steven C. Ackmann, President and CEO. “Our charges for security impairments and the high FDIC fees and special FDIC assessment have been largely offset by a terrific first six months of mortgage banking. We’re gratified of the stabile trends in our credit quality, but continue to monitor the loan portfolio closely to stay on top of any developing credit issues.”  Mr. Ackmann further stated, “Meanwhile, we continue to lend to qualified borrowers seen in the high volume of mortgage originations plus our 6% commercial loan growth in the first half.  Additionally, our deposit gathering efforts produced growth of 4.8% for the first half of 2009.”

 


 

The provision for loan loss was $300,000 for the second quarter and $725,000 for six month period ending June 30, 2009, as compared to $125,000 requirements for the same 2008 quarter and six month periods. A provision for loan loss was required due to internally classified credit downgrades, weakening economic conditions plus commercial loan growth during the second quarter of 2009.  The allowance for loan losses was 1.22% of total loans at June 30, 2009, up from 1.00% at June 30, 2008.

 

Total other income recorded for the quarter ended June 30, 2009 was $1,458,000, 15% higher when compared with $1,266,000 for the same quarter in 2008.  Mortgage banking produced $268,000 more gains recorded in other income during the second quarter of 2009, which more than offset fewer deposit service charges collected, when compared to other income recorded for the second quarter of 2008.

 

Total other income for the six months ended June 30, 2009 was $2,772,000, compared to $2,561,000 for the same period in 2008.  Mortgage banking services produced $667,000 of additional gains that more than offset a $326,000 non-cash other-than-temporary impairment and $220,000 lower deposit service charge levels during the six months ended June 30, 2009 compared to the same 2008 period.

 

Total other operating expenses increased 7% from $4,445,000 to $4,739,000 for the quarters ending June 30, 2008 and 2009, respectively.  The other operating expenses primarily increased from recognizing a $255,000 FDIC special assessment premium and added premises and equipment expenses resulting mostly from the West Scranton branch opening in August 2008.

 

Total other operating expenses increased 6% from $8,837,000 for the six months ending June 30, 2008 to $9,401,000 for 2009. The operating expense increase resulted from $383,000 of additional FDIC premiums, including the mentioned special assessment, and $239,000 in added occupancy expenses.

 

The Company’s assets contracted $15,265,000 to total $560,454,000 at June 30, 2009 from $575,719,000 at December 31, 2008, caused from mortgage sale proceeds utilized to pay off debt and improve liquidity and interest rate risk positions.

 

Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 11 community banking office locations.  The Bank’s deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

 

For more information please visit our investor relations web site located through www.bankatfidelity.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, 2009

 

Mar. 31, 2009

 

Dec. 31, 2008

 

Sep. 30, 2008

 

Jun. 30, 2008

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

15,569,573

 

$

20,800,732

 

$

12,771,147

 

$

13,375,299

 

$

16,040,466

 

Investment securities

 

77,319,094

 

78,949,503

 

84,187,579

 

87,179,549

 

129,244,167

 

Federal Home Loan Bank Stock

 

4,781,100

 

4,781,100

 

4,781,100

 

4,770,700

 

4,358,300

 

Loans and leases

 

427,432,128

 

426,269,981

 

441,036,694

 

431,293,559

 

418,650,319

 

Allowance for loan losses

 

(5,215,736

)

(5,097,641

)

(4,745,234

)

(4,205,566

)

(4,188,571

)

Premises and equipment, net

 

15,544,799

 

15,871,074

 

16,056,362

 

16,018,219

 

12,912,023

 

Life insurance cash surrender value

 

8,962,081

 

8,886,844

 

8,807,784

 

8,728,568

 

8,645,597

 

Other assets

 

16,061,169

 

16,323,980

 

12,823,565

 

12,383,084

 

12,901,595

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

560,454,208

 

$

566,785,573

 

$

575,718,997

 

$

569,543,412

 

$

598,563,896

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

69,503,187

 

$

69,296,833

 

$

71,442,651

 

$

69,619,234

 

$

74,765,086

 

Interest-bearing deposits

 

384,370,177

 

394,857,294

 

361,869,281

 

365,812,303

 

373,468,779

 

Total deposits

 

453,873,364

 

464,154,127

 

433,311,932

 

435,431,537

 

448,233,865

 

Short-term borrowings

 

8,880,343

 

10,741,814

 

38,129,704

 

17,086,314

 

29,674,336

 

Long-term debt

 

42,000,000

 

42,000,000

 

52,000,000

 

62,071,661

 

62,285,582

 

Other liabilities

 

6,577,952

 

4,427,884

 

3,316,710

 

4,335,911

 

5,318,030

 

Total liabilities

 

511,331,659

 

521,323,825

 

526,758,346

 

518,925,423

 

545,511,813

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

49,122,549

 

45,461,748

 

48,960,651

 

50,617,989

 

53,052,083

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

560,454,208

 

$

566,785,573

 

$

575,718,997

 

$

569,543,412

 

$

598,563,896

 

 

Average Quarterly Balances:

 

 

 

Jun. 30, 2009

 

Mar. 31, 2009

 

Dec. 31, 2008

 

Sep. 30, 2008

 

Jun. 30, 2008

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

22,538,111

 

$

12,902,871

 

$

11,389,500

 

$

11,483,829

 

$

12,025,621

 

Investment securities

 

78,537,567

 

86,550,978

 

90,153,057

 

117,713,728

 

138,429,282

 

Loans and leases, net

 

422,830,387

 

433,903,852

 

434,511,745

 

421,771,678

 

402,874,033

 

Premises and equipment, net

 

15,751,986

 

16,048,369

 

15,948,591

 

13,315,976

 

12,951,487

 

Other assets

 

23,783,296

 

22,889,530

 

21,628,663

 

19,744,364

 

19,358,141

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

563,441,347

 

$

572,295,600

 

$

573,631,556

 

$

584,029,575

 

$

585,638,564

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

68,908,889

 

$

68,083,243

 

$

69,665,796

 

$

69,069,124

 

$

65,591,257

 

Interest-bearing deposits

 

389,822,588

 

380,508,523

 

366,709,783

 

360,426,504

 

378,477,080

 

Total deposits

 

458,731,477

 

448,591,766

 

436,375,579

 

429,495,628

 

444,068,337

 

Short-term borrowings and long-term debt

 

52,414,957

 

72,666,503

 

83,447,025

 

97,685,420

 

81,129,443

 

Other liabilities

 

4,372,934

 

3,366,585

 

4,093,554

 

4,466,079

 

5,005,066

 

Total liabilities

 

515,519,368

 

524,624,854

 

523,916,158

 

531,647,127

 

530,202,846

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

47,921,979

 

47,670,746

 

49,715,398

 

52,382,448

 

55,435,718

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

563,441,347

 

$

572,295,600

 

$

573,631,556

 

$

584,029,575

 

$

585,638,564

 

 


 

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Statements of Income

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

Jun. 30, 2009

 

Jun. 30, 2008

 

Jun. 30, 2009

 

Jun. 30, 2008

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

6,470,352

 

$

6,860,510

 

$

13,145,874

 

$

13,747,720

 

 

 

Securities and other

 

985,161

 

1,752,556

 

2,137,052

 

3,610,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

7,455,513

 

8,613,066

 

15,282,926

 

17,357,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

2,138,133

 

2,831,400

 

4,329,905

 

6,065,136

 

 

 

Borrowings and debt

 

576,811

 

838,502

 

1,387,632

 

1,802,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

 

2,714,944

 

3,669,902

 

5,717,537

 

7,867,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

4,740,569

 

4,943,164

 

9,565,389

 

9,490,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

300,000

 

125,000

 

725,000

 

125,000

 

 

 

Other income

 

1,458,269

 

1,265,669

 

2,771,631

 

2,561,211

 

 

 

Other expenses

 

4,738,834

 

4,444,540

 

9,400,776

 

8,837,289

 

 

 

Provision for income taxes

 

247,851

 

435,347

 

474,033

 

796,029

 

 

 

Net income

 

$

912,153

 

$

1,203,946

 

$

1,737,211

 

$

2,292,893

 

 

 

 

 

 

Three Months Ended

 

 

 

Jun. 30, 2009

 

Mar. 31, 2009

 

Dec. 31, 2008

 

Sep. 30, 2008

 

Jun. 30, 2008

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

6,470,352

 

$

6,675,522

 

$

6,911,146

 

$

6,905,422

 

$

6,860,510

 

Securities and other

 

985,161

 

1,151,891

 

1,272,950

 

1,514,018

 

1,752,556

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

7,455,513

 

7,827,413

 

8,184,096

 

8,419,440

 

8,613,066

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

2,138,133

 

2,191,772

 

2,454,253

 

2,598,805

 

2,831,400

 

Borrowings and debt

 

576,811

 

810,821

 

821,689

 

941,488

 

838,502

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

 

2,714,944

 

3,002,593

 

3,275,942

 

3,540,293

 

3,669,902

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

4,740,569

 

4,824,820

 

4,908,154

 

4,879,147

 

4,943,164

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

300,000

 

425,000

 

685,000

 

130,000

 

125,000

 

Other income

 

1,458,269

 

1,313,362

 

1,172,647

 

844,443

 

1,265,669

 

Other expenses

 

4,738,834

 

4,661,942

 

4,700,740

 

4,672,654

 

4,444,540

 

Provision for income taxes

 

247,851

 

226,182

 

93,121

 

179,821

 

435,347

 

Net income

 

$

912,153

 

$

825,058

 

$

601,940

 

$

741,115

 

$

1,203,946

 

 


 

FIDELITY D & D BANCORP, INC.

Selected Financial Ratios and Other Data

 

 

 

Three Months Ended

 

 

 

Jun. 30, 2009

 

Mar. 31, 2009

 

Dec. 31, 2008

 

Sep. 30, 2008

 

Jun. 30, 2008

 

Selected returns and financial ratios

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.44

 

$

0.40

 

$

0.30

 

$

0.35

 

$

0.59

 

Dividends per share

 

$

0.25

 

$

0.25

 

$

0.25

 

$

0.25

 

$

0.25

 

Yield on interest-earning assets (FTE)

 

5.74

%

5.97

%

6.13

%

6.17

%

6.39

%

Cost of interest-bearing liabilities

 

2.46

%

2.69

%

2.90

%

3.07

%

3.21

%

Net interest spread

 

3.28

%

3.28

%

3.23

%

3.10

%

3.18

%

Net interest margin

 

3.70

%

3.73

%

3.72

%

3.62

%

3.71

%

Return on average assets

 

0.65

%

0.58

%

0.42

%

0.50

%

0.83

%

Return on average equity

 

7.63

%

7.02

%

4.82

%

5.63

%

8.73

%

Efficiency ratio

 

70.16

%

70.33

%

73.33

%

74.84

%

70.17

%

Expense ratio

 

2.16

%

2.15

%

2.35

%

2.35

%

2.19

%

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

Jun. 30, 2009

 

Jun. 30, 2008

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.84

 

$

1.11

 

 

 

 

 

 

 

Dividends per share

 

$

0.50

 

$

0.50

 

 

 

 

 

 

 

Yield on interest-earning assets (FTE)

 

5.85

%

6.39

%

 

 

 

 

 

 

Cost of interest-bearing liabilities

 

2.58

%

3.42

%

 

 

 

 

 

 

Net interest spread

 

3.27

%

2.97

%

 

 

 

 

 

 

Net interest margin

 

3.71

%

3.54

%

 

 

 

 

 

 

Return on average assets

 

0.62

%

0.78

%

 

 

 

 

 

 

Return on average equity

 

7.33

%

8.26

%

 

 

 

 

 

 

Efficiency ratio

 

70.24

%

71.85

%

 

 

 

 

 

 

Expense ratio

 

2.15

%

2.15

%

 

 

 

 

 

 

 

Other data

 

 

 

Jun. 30, 2009

 

Mar. 31, 2009

 

Dec. 31, 2008

 

Sep. 30, 2008

 

Jun. 30, 2008

 

Book value per share

 

$

23.59

 

$

21.94

 

$

23.73

 

$

24.55

 

$

25.63

 

Equity to assets

 

8.76

%

8.02

%

8.50

%

8.89

%

8.86

%

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

1.22

%

1.20

%

1.08

%

0.98

%

1.00

%

Non-accrual loans

 

0.70

x

0.70

x

1.36

x

1.35

x

1.14

x

Non-accrual loans to net loans

 

1.75

%

1.72

%

0.80

%

0.73

%

0.88

%

Non-performing assets to total assets

 

1.57

%

1.56

%

0.96

%

0.90

%

0.79

%