Fidelity D & D Bancorp (FDBC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FIDELITY D & D BANCORP, INC.

FOR IMMEDIATE RELEASE

Date: April 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.

FIRST 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 March 31, 2007 of $1,044,000 compared to $1,032,000 for the same quarter of 2006.  Earnings per share on a fully diluted basis for the quarter totaled $0.51, up a penny from $0.50 for the prior year period.

Net interest income increased $74,000 to $4,304,000 for the quarter ended March 31, 2007 from $4,230,000 recorded during the same quarter of 2006.  Earnings from loan growth coupled with higher interest rates, non-interest bearing deposit growth, plus a reduction in long-term debt each contributed to offset rising interest costs and improve the net interest margin to 3.36% for the first quarter of 2007 from 3.34% for same 2006 period.

No provision for loan loss was required during the first quarter of 2007 compared to $75,000 in the same quarter of 2006. The allowance for loan losses was 1.27% of total loans at March 31, 2007, down from 1.37% at March 31, 2006.

Total other income recorded for the quarter ended March 31, 2007 was $1,214,000, compared with $1,129,000 for the same quarter in 2006.  A gain recorded on sale of an investment property in the first quarter of 2007 produced the increase in other income compared to the first quarter of 2006.

Total other operating expenses increased from $3,923,000 to $4,113,000 for the quarters ending March 31, 2006 and 2007, respectively.  The operating expense increase resulted primarily from more salary and benefit expenses, occupancy lease costs and professional service fees occurring during in the first quarter of 2007 as compared to 2006.

The Company’s assets grew $2,308,000 to total $564,626,000 at March 31, 2007 from $562,318,000 at December 31, 2006.

“This is a challenging environment for bankers. We were affected early in this rate cycle, but are gratified that we have made progress in improving our earnings and strengthening our balance sheet going forward,” stated Steven C. Ackmann, President and CEO. “The opening of our new Greenridge office will be an important step in this progress.  The relocation into this newly constructed full service office will occur in May 2007.  Join us for the grand opening celebration on June 2nd and 3rd.”

Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 12 community banking offices and 18 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.

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Balance Sheets

At Period End:	Mar. 31, 2007			Dec. 31, 2006			Sep. 30, 2006			Jun. 30, 2006			Mar. 31, 2006
Assets
Total cash and cash equivalents	$	14,435,738		$	13,800,848		$	20,832,779		$	12,121,597		$	10,486,895
Investment securities	101,291,577			100,410,736			101,740,346			113,547,682			116,205,852
Federal Home Loan Bank Stock	3,598,600			3,795,100			3,259,400			4,558,400			4,699,000
Loans and leases	422,955,523			422,765,351			415,915,591			423,660,466			417,049,567
Allowance for loan losses	(5,359,758		)	(5,444,303		)	(5,843,538		)	(5,738,470		)	(5,716,473		)
Premises and equipment, net	10,941,355			11,324,465			11,296,696			11,521,561			11,543,777
Life insurance cash surrender value	8,254,777			8,177,961			8,105,171			8,033,031			7,962,307
Other assets	8,508,130			7,487,830			7,534,038			7,423,958			7,055,858
Total assets	$	564,625,942		$	562,317,988		$	562,840,483		$	575,128,225		$	569,286,783
Liabilities
Non-interest-bearing deposits	$	71,623,735		$	73,741,975		$	71,548,817		$	70,560,800		$	67,692,897
Interest-bearing deposits	342,443,261			336,592,620			348,180,970			352,294,555			340,811,377
Total deposits	414,066,996			410,334,595			419,729,787			422,855,355			408,504,274
Short-term borrowings	31,607,966			33,656,150			22,826,739			31,659,106			27,422,536
Long-term debt	62,331,630			62,536,210			65,590,062			68,324,751			81,029,348
Other liabilities	3,985,911			4,179,170			3,730,970			3,253,894			3,396,492
Total liabilities	511,992,503			510,706,125			511,877,558			526,093,106			520,352,650
Shareholders’ equity	52,633,439			51,611,863			50,962,925			49,035,119			48,934,133
Total liabilities and shareholders’ equity	$	564,625,942		$	562,317,988		$	562,840,483		$	575,128,225		$	569,286,783

Average Quarterly Balances:	Mar. 31, 2007		Dec. 31, 2006		Sep. 30, 2006		Jun. 30, 2006		Mar. 31, 2006
Assets
Total cash and cash equivalents	$	12,185,856	$	10,970,802	$	10,133,961	$	10,258,096	$	10,654,773
Investment securities	108,698,773		114,670,680		116,520,987		122,638,043		117,482,664
Loans and leases, net	419,942,066		412,624,062		414,380,326		414,575,812		408,418,489
Premises and equipment, net	11,194,541		11,260,563		11,480,499		11,523,344		11,647,257
Other assets	14,415,629		13,908,846		12,321,122		12,054,841		12,177,876
Total assets	$	566,436,864	$	563,434,953	$	564,836,895	$	571,050,136	$	560,381,059
Liabilities
Non-interest-bearing deposits	$	69,737,257	$	70,975,409	$	68,170,366	$	67,504,856	$	66,195,050
Interest-bearing deposits	354,901,749		344,024,072		349,113,993		337,651,638		330,301,631
Total deposits	424,639,006		414,999,481		417,284,359		405,156,494		396,496,681
Short-term borrowings and long-term debt	85,273,730		92,572,901		93,953,798		113,726,078		111,943,866
Other liabilities	4,341,031		4,501,801		3,968,526		3,374,110		3,096,023
Total liabilities	514,253,767		512,074,183		515,206,683		522,256,682		511,536,570
Shareholders’ equity	52,183,097		51,360,770		49,630,212		48,793,454		48,844,489
Total liabilities and shareholders’ equity	$	566,436,864	$	563,434,953	$	564,836,895	$	571,050,136	$	560,381,059

FIDELITY D & D BANCORP, INC.

Unaudited Condensed Consolidated Statements of Income

	Three Months Ended
	Mar. 31, 2007		Dec. 31, 2006		Sep. 30, 2006		Jun. 30, 2006		Mar. 31, 2006
Interest income
Loans and leases	$	7,284,546	$	7,268,584	$	7,226,814	$	7,001,132	$	6,630,776
Securities and other	1,347,270		1,401,955		1,367,752		1,370,036		1,262,661
Total interest income	8,631,816		8,670,539		8,594,566		8,371,168		7,893,437
Interest expense
Deposits	3,334,023		3,213,402		3,132,402		2,750,117		2,396,906
Borrowings and debt	993,603		1,097,766		1,148,667		1,355,627		1,266,222
Total interest expense	4,327,626		4,311,168		4,281,069		4,105,744		3,663,128
Net interest income	4,304,190		4,359,371		4,313,497		4,265,424		4,230,309
Provision for loan losses	—		—		75,000		175,000		75,000
Other income	1,213,663		1,173,086		1,136,275		1,083,952		1,128,825
Other expenses	4,113,043		4,011,713		3,995,764		3,948,149		3,922,750
Provision for income taxes	360,459		395,688		349,032		287,607		329,753
Net income	$	1,044,351	$	1,125,056	$	1,029,976	$	938,620	$	1,031,631

Selected Financial Ratios and Other Data

	Three Months Ended
	Mar. 31, 2007			Dec. 31, 2006			Sep. 30, 2006			Jun. 30, 2006			Mar. 31, 2006
Selected returns and financial ratios
Diluted earnings per share	$	0.51		$	0.54		$	0.51		$	0.45		$	0.50
Dividends per share	$	0.22		$	0.22		$	0.22		$	0.22		$	0.22
Yield on interest-earning assets (FTE)	6.65		%	6.55		%	6.45		%	6.29		%	6.13		%
Cost of interest-bearing liabilities	3.99		%	3.92		%	3.83		%	3.65		%	3.36		%
Net interest spread	2.66		%	2.63		%	2.62		%	2.64		%	2.77		%
Net interest margin	3.36		%	3.34		%	3.29		%	3.26		%	3.34		%
Return on average assets	0.75		%	0.79		%	0.72		%	0.66		%	0.75		%
Return on average equity	8.12		%	8.69		%	8.18		%	7.66		%	8.51		%
Efficiency ratio	72.86		%	71.31		%	71.85		%	72.15		%	71.39		%
Expense ratio	2.11		%	2.03		%	2.03		%	2.03		%	2.04		%
Other data
	$	25.51		$	25.09		$	24.82		$	23.93		$	23.93
Equity to assets	9.32		%	9.18		%	9.05		%	8.53		%	8.60		%
Allowance for loan losses to:
Total loans	1.27		%	1.29		%	1.41		%	1.36		%	1.37		%
Non-accrual loans	1.69		x	1.62		x	1.43		x	0.77		x	0.65		x
Non-accrual loans to net loans	0.76		%	0.80		%	1.00		%	1.79		%	2.15		%
Non-performing assets to total assets	0.67		%	0.65		%	0.93		%	1.36		%	1.60		%