Exhibit 99.1
FIDELITY D & D BANCORP, INC.
FOR IMMEDIATE RELEASE
Date: October 17, 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.
THIRD 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 September 30, 2007 of $1,178,000, a 14% increase compared to $1,030,000 for the same quarter of 2006. Earnings per share on a fully diluted basis for the quarter totaled $0.57, up from $0.51 for the prior year period.
Net income for the nine months ended September 30, 2007 was $3,381,000, a 13% increase compared to net income of $3,000,000 for the same 2006 period. Earnings per share were $1.64 and $1.47 for the nine months ended September 30, 2007 and 2006, respectively.
Net interest income increased to $4,422,000 for the quarter ended September 30, 2007 from $4,313,000 recorded during the same quarter of 2006. Growth in the security and loan portfolios produced more interest income, which was partially offset by rising interest costs, resulting in higher net interest income earned for the third quarter of 2007. This improved the net interest margin to 3.31% for the third quarter of 2007 from 3.29% for same 2006 period.
Net interest income increased to $13,049,000 for the nine months ended September 30, 2007 from $12,809,000 recorded during the same quarter of 2006. Net interest margin was 3.34% during the nine months of 2007, up four basis points from 3.30% during the same 2006 period.
A credit to provision for loan loss was required during the quarter ended September 30, 2007 due to improved credit quality of classified loans. The third quarter and the first nine months of 2007 was a $60,000 credit compared to charges of $75,000 and $325,000 in the same 2006 quarter and nine month period, respectively. The allowance for loan losses was 1.17% of total loans at September 30, 2007, down from 1.41% at September 30, 2006.
Steven C. Ackmann, President and CEO stated, “We are pleased with the continued increase in quarterly earnings even in the face of a challenging rate and credit environment for banks in general. We are further encouraged by the 7% increase in deposits since the beginning of the year. Those increases came from enhanced products; strong selling efforts by our dedicated core of personal bankers and impressive growth in our popular, newly relocated Greenridge office. This quarter also saw us begin construction of our new West Scranton Branch; look for it to open late in the first quarter of 2008.”
Total other income recorded for the quarter ended September 30, 2007 was $1,309,000, compared with $1,136,000 for the same quarter in 2006. Growth in deposit service charges, other fee income and gains recorded from loan sales during in the third quarter of 2007 produced the $172,000 increase in other income compared to the third quarter of 2006. Total other income for the nine months ended September 30, 2007 was $3,852,000, up $503,000 compared to $3,349,000 for the same period in 2006.
Total other operating expenses increased from $3,996,000 to $4,189,000 for the quarters ending September 30, 2006 and 2007, respectively. The operating expense increase resulted primarily from salary and incentive expenses plus more occupancy, donation and ATM expenses occurring during in the third quarter of 2007 as compared to 2006. Total other operating expenses increased from $11,867,000 for the nine months ending September 30, 2006 to $12,390,000 for 2007.
The Company’s assets grew $26,783,000, or 5%, to total $589,101,000 at September 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 20 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: | | Sep. 30, 2007 | | Jun. 30, 2007 | | Mar. 31, 2007 | | Dec. 31, 2006 | | Sep. 30, 2006 | |
Assets | | | | | | | | | | | |
Total cash and cash equivalents | | $ | 13,371,112 | | $ | 12,220,533 | | $ | 14,435,738 | | $ | 13,800,848 | | $ | 20,832,779 | |
Investment securities | | 121,896,653 | | 107,964,486 | | 101,291,577 | | 100,410,736 | | 101,740,346 | |
Federal Home Loan Bank Stock | | 3,558,300 | | 4,151,900 | | 3,598,600 | | 3,795,100 | | 3,259,400 | |
Loans and leases | | 426,163,776 | | 425,652,831 | | 422,955,523 | | 422,765,351 | | 415,915,591 | |
Allowance for loan losses | | (4,990,855 | ) | (5,294,537 | ) | (5,359,758 | ) | (5,444,303 | ) | (5,843,538 | ) |
Premises and equipment, net | | 13,306,479 | | 13,331,402 | | 10,941,355 | | 11,324,465 | | 11,296,696 | |
Life insurance cash surrender value | | 8,408,987 | | 8,331,225 | | 8,254,777 | | 8,177,961 | | 8,105,171 | |
Other assets | | 7,386,687 | | 7,134,628 | | 8,508,130 | | 7,487,830 | | 7,534,038 | |
| | | | | | | | | | | |
Total assets | | $ | 589,101,139 | | $ | 573,492,468 | | $ | 564,625,942 | | $ | 562,317,988 | | $ | 562,840,483 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 70,544,329 | | $ | 72,067,616 | | $ | 71,623,735 | | $ | 73,741,975 | | $ | 71,548,817 | |
Interest-bearing deposits | | 368,512,228 | | 349,263,741 | | 342,443,261 | | 336,592,620 | | 348,180,970 | |
Total deposits | | 439,056,557 | | 421,331,357 | | 414,066,996 | | 410,334,595 | | 419,729,787 | |
Short-term borrowings | | 28,579,498 | | 29,601,083 | | 31,607,966 | | 33,656,150 | | 22,826,739 | |
Long-term debt | | 62,917,875 | | 66,125,522 | | 62,331,630 | | 62,536,210 | | 65,590,062 | |
Other liabilities | | 4,658,726 | | 4,235,491 | | 3,985,911 | | 4,179,170 | | 3,730,970 | |
Total liabilities | | 535,212,656 | | 521,293,453 | | 511,992,503 | | 510,706,125 | | 511,877,558 | |
| | | | | | | | | | | |
Shareholders’ equity | | 53,888,483 | | 52,199,015 | | 52,633,439 | | 51,611,863 | | 50,962,925 | |
| | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 589,101,139 | | $ | 573,492,468 | | $ | 564,625,942 | | $ | 562,317,988 | | $ | 562,840,483 | |
Average Quarterly Balances: | | Sep. 30, 2007 | | Jun. 30, 2007 | | Mar. 31, 2007 | | Dec. 31, 2006 | | Sep. 30, 2006 | |
Assets | | | | | | | | | | | |
Total cash and cash equivalents | | $ | 10,793,137 | | $ | 11,362,306 | | $ | 12,185,856 | | $ | 10,970,802 | | $ | 10,133,961 | |
Investment securities | | 118,204,518 | | 112,993,078 | | 108,698,773 | | 114,670,680 | | 116,520,987 | |
Loans and leases, net | | 420,402,304 | | 415,200,287 | | 419,942,066 | | 412,624,062 | | 414,380,326 | |
Premises and equipment, net | | 13,311,760 | | 10,994,719 | | 11,194,541 | | 11,260,563 | | 11,480,499 | |
Other assets | | 15,406,872 | | 16,905,957 | | 14,415,628 | | 13,908,846 | | 12,321,122 | |
| | | | | | | | | | | |
Total assets | | $ | 578,118,591 | | $ | 567,456,347 | | $ | 566,436,864 | | $ | 563,434,953 | | $ | 564,836,895 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 72,383,671 | | $ | 70,718,373 | | $ | 69,737,257 | | $ | 70,975,409 | | $ | 68,170,366 | |
Interest-bearing deposits | | 359,341,338 | | 344,421,824 | | 354,901,749 | | 344,024,072 | | 349,113,993 | |
Total deposits | | 431,725,009 | | 415,140,197 | | 424,639,006 | | 414,999,481 | | 417,284,359 | |
Short-term borrowings and long-term debt | | 88,544,109 | | 95,203,717 | | 85,273,730 | | 92,572,901 | | 93,953,798 | |
Other liabilities | | 4,723,440 | | 4,208,926 | | 4,341,031 | | 4,501,801 | | 3,968,526 | |
Total liabilities | | 524,992,558 | | 514,552,840 | | 514,253,767 | | 512,074,183 | | 515,206,683 | |
| | | | | | | | | | | |
Shareholders’ equity | | 53,126,033 | | 52,903,507 | | 52,183,097 | | 51,360,770 | | 49,630,212 | |
| | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 578,118,591 | | $ | 567,456,347 | | $ | 566,436,864 | | $ | 563,434,953 | | $ | 564,836,895 | |
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
| | Three Months Ended | | Nine Months Ended | |
| | Sep. 30, 2007 | | Sep. 30, 2006 | | Sep. 30, 2007 | | Sep. 30, 2006 | |
Interest income | | | | | | | | | |
Loans and leases | | $ | 7,345,777 | | $ | 7,226,814 | | $ | 21,890,563 | | $ | 20,858,722 | |
Securities and other | | 1,546,569 | | 1,367,752 | | 4,317,977 | | 4,000,449 | |
| | | | | | | | | |
Total interest income | | 8,892,346 | | 8,594,566 | | 26,208,540 | | 24,859,171 | |
| | | | | | | | | |
Interest expense | | | | | | | | | |
Deposits | | 3,420,693 | | 3,132,402 | | 9,977,394 | | 8,279,425 | |
Borrowings and debt | | 1,049,298 | | 1,148,667 | | 3,182,045 | | 3,770,516 | |
| | | | | | | | | |
Total interest expense | | 4,469,991 | | 4,281,069 | | 13,159,439 | | 12,049,941 | |
| | | | | | | | | |
Net interest income | | 4,422,355 | | 4,313,497 | | 13,049,101 | | 12,809,230 | |
| | | | | | | | | |
Provision for loan losses | | (60,000 | ) | 75,000 | | (60,000 | ) | 325,000 | |
Other income | | 1,308,761 | | 1,136,275 | | 3,851,538 | | 3,349,052 | |
Other expenses | | 4,189,171 | | 3,995,764 | | 12,389,767 | | 11,866,663 | |
Provision for income taxes | | 424,023 | | 349,032 | | 1,189,866 | | 966,392 | |
Net income | | $ | 1,177,922 | | $ | 1,029,976 | | $ | 3,381,006 | | $ | 3,000,227 | |
| | Three Months Ended | |
| | Sep. 30, 2007 | | Jun. 30, 2007 | | Mar. 31, 2007 | | Dec. 31, 2006 | | Sep. 30, 2006 | |
Interest income | | | | | | | | | | | |
Loans and leases | | $ | 7,345,777 | | $ | 7,260,240 | | $ | 7,284,546 | | $ | 7,268,584 | | $ | 7,226,814 | |
Securities and other | | 1,546,569 | | 1,424,138 | | 1,347,270 | | 1,401,955 | | 1,367,752 | |
| | | | | | | | | | | |
Total interest income | | 8,892,346 | | 8,684,378 | | 8,631,816 | | 8,670,539 | | 8,594,566 | |
| | | | | | | | | | | |
Interest expense | | | | | | | | | | | |
Deposits | | 3,420,693 | | 3,222,678 | | 3,334,023 | | 3,213,402 | | 3,132,402 | |
Borrowings and debt | | 1,049,298 | | 1,139,144 | | 993,603 | | 1,097,766 | | 1,148,667 | |
| | | | | | | | | | | |
Total interest expense | | 4,469,991 | | 4,361,822 | | 4,327,626 | | 4,311,168 | | 4,281,069 | |
| | | | | | | | | | | |
Net interest income | | 4,422,355 | | 4,322,556 | | 4,304,190 | | 4,359,371 | | 4,313,497 | |
| | | | | | | | | | | |
Provision for loan losses | | (60,000 | ) | — | | — | | — | | 75,000 | |
Other income | | 1,308,761 | | 1,329,114 | | 1,213,663 | | 1,173,086 | | 1,136,275 | |
Other expenses | | 4,189,171 | | 4,087,553 | | 4,113,043 | | 4,011,713 | | 3,995,764 | |
Provision for income taxes | | 424,023 | | 405,384 | | 360,459 | | 395,688 | | 349,032 | |
Net income | | $ | 1,177,922 | | $ | 1,158,733 | | $ | 1,044,351 | | $ | 1,125,056 | | $ | 1,029,976 | |
FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Data
| | Three Months Ended | |
| | Sep. 30, 2007 | | Jun. 30, 2007 | | Mar. 31, 2007 | | Dec. 31, 2006 | | Sep. 30, 2006 | |
Selected returns and financial ratios | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.57 | | $ | 0.56 | | $ | 0.51 | | $ | 0.54 | | $ | 0.51 | |
Dividends per share | | $ | 0.24 | | $ | 0.22 | | $ | 0.22 | | $ | 0.22 | | $ | 0.22 | |
Yield on interest-earning assets (FTE) | | 6.56 | % | 6.61 | % | 6.65 | % | 6.55 | % | 6.45 | % |
Cost of interest-bearing liabilities | | 3.96 | % | 3.98 | % | 3.99 | % | 3.92 | % | 3.83 | % |
Net interest spread | | 2.60 | % | 2.63 | % | 2.66 | % | 2.63 | % | 2.62 | % |
Net interest margin | | 3.31 | % | 3.34 | % | 3.36 | % | 3.34 | % | 3.29 | % |
Return on average assets | | 0.81 | % | 0.82 | % | 0.75 | % | 0.79 | % | 0.72 | % |
Return on average equity | | 8.80 | % | 8.79 | % | 8.12 | % | 8.69 | % | 8.18 | % |
Efficiency ratio | | 72.05 | % | 71.16 | % | 72.86 | % | 71.31 | % | 71.85 | % |
Expense ratio | | 2.01 | % | 1.98 | % | 2.11 | % | 2.03 | % | 2.03 | % |
| | Nine Months Ended | | | | | | | |
| | Sep. 30, 2007 | | Sep. 30, 2006 | | | | | | | |
Diluted earnings per share | | $ | 1.64 | | $ | 1.47 | | | | | | | |
Dividends per share | | $ | 0.68 | | $ | 0.66 | | | | | | | |
Yield on interest-earning assets (FTE) | | 6.60 | % | 6.29 | % | | | | | | |
Cost of interest-bearing liabilities | | 3.98 | % | 3.62 | % | | | | | | |
Net interest spread | | 2.62 | % | 2.67 | % | | | | | | |
Net interest margin | | 3.34 | % | 3.30 | % | | | | | | |
Return on average assets | | 0.79 | % | 0.71 | % | | | | | | |
Return on average equity | | 8.57 | % | 8.12 | % | | | | | | |
Efficiency ratio | | 72.01 | % | 71.80 | % | | | | | | |
Expense ratio | | 2.02 | % | 2.03 | % | | | | | | |
Other data
| | Sep. 30, 2007 | | Jun. 30, 2007 | | Mar. 31, 2007 | | Dec. 31, 2006 | | Sep. 30, 2006 | |
Book value per share | | $ | 26.00 | | $ | 25.25 | | $ | 25.51 | | $ | 25.09 | | $ | 24.82 | |
Equity to assets | | 9.15 | % | 9.10 | % | 9.32 | % | 9.18 | % | 9.05 | % |
Allowance for loan losses to: | | | | | | | | | | | |
Total loans | | 1.17 | % | 1.24 | % | 1.27 | % | 1.29 | % | 1.41 | % |
Non-accrual loans | | 1.07 | x | 1.21 | x | 1.69 | x | 1.62 | x | 1.43 | x |
Non-accrual loans to net loans | | 1.10 | % | 1.04 | % | 0.76 | % | 0.80 | % | 1.00 | % |
Non-performing assets to total assets | | 0.81 | % | 0.78 | % | 0.67 | % | 0.65 | % | 0.93 | % |
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