Exhibit 99.1
FIDELITY D & D BANCORP, INC.
PRESS RELEASE
Date: July 19, 2006
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 2006 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 second quarter ended June 30, 2006 of $939,000, a $197,000 decline compared to net income of $1,136,000 for the same quarter of 2005. Earnings per share were $0.45 and $0.56 for the quarters ended June 30, 2006 and 2005, respectively.
Net income for the six months ended June 30, 2006 was $1,970,000, or $0.96 per share, a $185,000, or 9%, decrease compared to net income of $2,155,000, or $1.06 per share, for the same period in 2005.
Net interest income was $4,265,000 for the quarter ended June 30, 2006, a decrease of $53,000, or 1%, over the $4,318,000 reported during the same quarter of 2005.
Total interest income increased by $1,268,000 from $7,103,000 to $8,371,000, offset by an interest expense increase of $1,321,000 from $2,785,000 to $4,106,000 for the quarters ended June 30, 2005 and 2006, respectively. Despite the loan and deposit growth, along with pay-downs of long-term debt, interest expense outpaced interest income leading to a 28 basis point decline in net interest margin to 3.26% in the second quarter of 2006, compared to 3.54% for the second quarter of 2005.
The provision for loan losses was $175,000 for the second quarter of 2006 compared to $300,000 in the same quarter of 2005. The allowance for loan losses was 1.36% of total loans at June 30, 2006, down from 1.51% at June 30, 2005.
Total other income posted for the quarter ended June 30, 2006 was $1,084,000 compared with $1,127,000 for the same quarter in 2005. The decrease in service charges and fees collected were below the prior year period levels and was offset, in part, from gains recorded on loan sales.
Total other operating expenses increased 9%, from $3,612,000 to $3,948,000 for the quarters ending June 30, 2005 and 2006, respectively. The operating expense increase resulted primarily from added salary and employee benefits expense. Other costs which factor into the increase were equipment expense, collection expense and ATM processing costs.
Steve Ackmann, CEO commented; “The rate environment for the first half of this year has been a difficult one for many community banks, Fidelity included. Throughout June we have seen our deposit and other funding costs rise faster than our asset yields. This problem has been compounded with our persistent efforts to rehabilitate our non-performing assets, which impacts us both through continued lower interest income and higher collection expense. The results for the first half should not obscure progress that we continue to make in several areas, including a further decrease in non-performing assets, improved deposit levels, as well as a healthy increase in loans”
The Company’s total assets were $575,128,000 at June 30, 2006 as compared to $544,061,000 at December 31, 2005.
Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 12 community banking offices and 20 ATM locations.
For more information please visit our web site 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.
