Exhibit 99.1
FIDELITY D & D BANCORP, INC.
FOR IMMEDIATE RELEASE
Date: July 16, 2008
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 2008 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, 2008 of $1,204,000, a 4% increase compared to $1,159,000 for the same quarter of 2007. Earnings per share on a fully diluted basis for the quarter totaled $0.59, up $0.03 from $0.56 for the prior year period.
Net income for the six months ended June 30, 2008 was $2,293,000, a 4% increase compared to net income of $2,203,000 for the same 2007 period. Earnings per share were $1.11 and $1.07 for the six months ended June 30, 2008 and 2007, respectively.
Net interest income increased to $4,943,000 for the quarter ended June 30, 2008 from $4,323,000 recorded during the same quarter of 2007. Primarily, the overall lower costs on interest bearing deposits and borrowings resulted in further net interest income earned for the second quarter of 2008. This improved the net interest margin to 3.71% for the second quarter of 2008 compared to 3.34% for same 2007 period.
Net interest income increased to $9,490,000 for the six months ended June 30, 2008 from $8,627,000 recorded during the same quarter of 2007. Net interest margin was 3.54% during the first half of 2008 compared to 3.35% during the same 2007 period.
“We continue to be gratified with the improved results we have attained,” said Steven C Ackmann, President and CEO. “Financial markets have been especially challenging over the first half of 2008, yet we have posted strong loan growth during the second quarter and continued to make improvements in our margins and asset quality. The next quarter will be important for us as we look forward to the opening of our much-anticipated West Scranton Office in August.”
A provision for loan loss was required primarily due to loan growth during the second quarter of 2008. The provision for loan loss was $125,000 for the quarter and six month period of 2008 as compared to no requirement for the same 2007 quarter and six month period, respectively. The allowance for loan losses was 1.00% of total loans at June 30, 2008, down from 1.24% at June 30, 2007.
Total other income recorded for the quarter ended June 30, 2008 was $1,266,000, compared with $1,329,000 for the same quarter in 2007. Excluding the $105,000 disparity from net gains recorded during the second quarter of 2007, other income for the second quarter of 2008 exceeded the 2007 level from more loan fee income activity. Total other income for the six months ended June 30, 2008 was $2,561,000, up compared to $2,543,000 for the same period in 2007.
Total other operating expenses increased from $4,088,000 to $4,445,000 for the quarters ending June 30, 2007 and 2008, respectively. The operating expense increase resulted primarily from salary and benefit expenses plus more collection expenses. Much of the salary and benefit increase came from hiring, including staff for the new West Scranton Office, as well as seasonal staffing increases. Total other operating expenses increased 8% from $8,201,000 for the six months ending June 30, 2007 to $8,837,000 for 2008.
The Company’s assets grew $11,151,000 to total $598,564,000 at June 30, 2008 from $587,413,000 at December 31, 2007.
Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 11 community banking offices and 16 automated teller machine locations.
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, 2008 | | Mar. 31, 2008 | | Dec. 31, 2007 | | Sep. 30, 2007 | | Jun. 30, 2007 | |
Assets | | | | | | | | | | | |
Total cash and cash equivalents | | $ | 16,040,466 | | $ | 23,378,954 | | $ | 10,408,816 | | $ | 13,371,112 | | $ | 12,220,533 | |
Investment securities | | 129,244,167 | | 136,320,024 | | 122,984,160 | | 121,896,653 | | 107,964,486 | |
Federal Home Loan Bank Stock | | 4,358,300 | | 3,387,800 | | 3,302,900 | | 3,558,300 | | 4,151,900 | |
Loans and leases | | 418,650,319 | | 399,582,768 | | 427,076,030 | | 426,163,776 | | 425,652,831 | |
Allowance for loan losses | | (4,188,571 | ) | (4,378,924 | ) | (4,824,401 | ) | (4,990,855 | ) | (5,294,537 | ) |
Premises and equipment, net | | 12,912,023 | | 12,947,438 | | 12,964,932 | | 13,306,479 | | 13,331,402 | |
Life insurance cash surrender value | | 8,645,597 | | 8,564,950 | | 8,488,663 | | 8,408,987 | | 8,331,225 | |
Other assets | | 12,901,595 | | 14,073,523 | | 7,011,455 | | 7,386,687 | | 7,134,628 | |
| | | | | | | | | | | |
Total assets | | $ | 598,563,896 | | $ | 593,876,533 | | $ | 587,412,555 | | $ | 589,101,139 | | $ | 573,492,468 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 74,765,086 | | $ | 69,486,801 | | $ | 64,795,621 | | $ | 70,544,329 | | $ | 72,067,616 | |
Interest-bearing deposits | | 373,468,779 | | 386,356,675 | | 360,912,740 | | 368,512,228 | | 349,263,741 | |
Total deposits | | 448,233,865 | | 455,843,476 | | 425,708,361 | | 439,056,557 | | 421,331,357 | |
Short-term borrowings | | 29,674,336 | | 9,879,537 | | 39,656,354 | | 28,579,498 | | 29,601,083 | |
Long-term debt | | 62,285,582 | | 62,494,906 | | 62,708,677 | | 62,917,875 | | 66,125,522 | |
Other liabilities | | 5,318,030 | | 9,465,660 | | 4,147,869 | | 4,658,726 | | 4,235,491 | |
Total liabilities | | 545,511,813 | | 537,683,579 | | 532,221,261 | | 535,212,656 | | 521,293,453 | |
| | | | | | | | | | | |
Shareholders’ equity | | 53,052,083 | | 56,192,954 | | 55,191,294 | | 53,888,483 | | 52,199,015 | |
| | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 598,563,896 | | $ | 593,876,533 | | $ | 587,412,555 | | $ | 589,101,139 | | $ | 573,492,468 | |
Average Quarterly Balances: | | Jun. 30, 2008 | | Mar. 31, 2008 | | Dec. 31, 2007 | | Sep. 30, 2007 | | Jun. 30, 2007 | |
Assets | | | | | | | | | | | |
Total cash and cash equivalents | | $ | 12,025,621 | | $ | 23,587,839 | | $ | 10,518,246 | | $ | 10,793,137 | | $ | 11,362,306 | |
Investment securities | | 138,429,282 | | 133,209,250 | | 127,523,724 | | 118,204,518 | | 112,993,078 | |
Loans and leases, net | | 402,874,033 | | 406,336,700 | | 422,759,661 | | 420,402,304 | | 415,200,287 | |
Premises and equipment, net | | 12,951,487 | | 12,981,354 | | 13,138,740 | | 13,311,760 | | 10,994,719 | |
Other assets | | 19,358,141 | | 15,966,685 | | 15,601,033 | | 15,406,872 | | 16,905,957 | |
| | | | | | | | | | | |
Total assets | | $ | 585,638,564 | | $ | 592,081,828 | | $ | 589,541,404 | | $ | 578,118,591 | | $ | 567,456,347 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 65,591,257 | | $ | 66,504,221 | | $ | 69,565,292 | | $ | 72,383,671 | | $ | 70,718,373 | |
Interest-bearing deposits | | 378,477,080 | | 380,896,695 | | 364,668,618 | | 359,341,338 | | 344,421,824 | |
Total deposits | | 444,068,337 | | 447,400,916 | | 434,233,910 | | 431,725,009 | | 415,140,197 | |
Short-term borrowings and long-term debt | | 81,129,443 | | 84,068,238 | | 95,511,724 | | 88,544,109 | | 95,203,717 | |
Other liabilities | | 5,005,066 | | 4,456,310 | | 4,710,308 | | 4,723,440 | | 4,208,926 | |
Total liabilities | | 530,202,846 | | 535,925,464 | | 534,455,942 | | 524,992,558 | | 514,552,840 | |
| | | | | | | | | | | |
Shareholders’ equity | | 55,435,718 | | 56,156,364 | | 55,085,462 | | 53,126,033 | | 52,903,507 | |
| | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 585,638,564 | | $ | 592,081,828 | | $ | 589,541,404 | | $ | 578,118,591 | | $ | 567,456,347 | |
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
| | Three Months Ended | | Six Months Ended | | | |
| | Jun. 30, 2008 | | Jun. 30, 2007 | | Jun. 30, 2008 | | Jun. 30, 2007 | | | |
Interest income | | | | | | | | | | | |
Loans and leases | | $ | 6,860,510 | | $ | 7,260,240 | | $ | 13,747,720 | | $ | 14,544,786 | | | |
Securities and other | | 1,752,556 | | 1,424,138 | | 3,610,178 | | 2,771,408 | | | |
| | | | | | | | | | | |
Total interest income | | 8,613,066 | | 8,684,378 | | 17,357,898 | | 17,316,194 | | | |
| | | | | | | | | | | |
Interest expense | | | | | | | | | | | |
Deposits | | 2,831,400 | | 3,222,678 | | 6,065,136 | | 6,556,701 | | | |
Borrowings and debt | | 838,502 | | 1,139,144 | | 1,802,762 | | 2,132,747 | | | |
| | | | | | | | | | | |
Total interest expense | | 3,669,902 | | 4,361,822 | | 7,867,898 | | 8,689,448 | | | |
| | | | | | | | | | | |
Net interest income | | 4,943,164 | | 4,322,556 | | 9,490,000 | | 8,626,746 | | | |
| | | | | | | | | | | |
Provision for loan losses | | 125,000 | | — | | 125,000 | | — | | | |
Other income | | 1,265,669 | | 1,329,114 | | 2,561,211 | | 2,542,777 | | | |
Other expenses | | 4,444,540 | | 4,087,553 | | 8,837,289 | | 8,200,596 | | | |
Provision for income taxes | | 435,347 | | 405,384 | | 796,029 | | 765,843 | | | |
Net income | | $ | 1,203,946 | | $ | 1,158,733 | | $ | 2,292,893 | | $ | 2,203,084 | | | |
| | Three Months Ended | |
| | Jun. 30, 2008 | | Mar. 31, 2008 | | Dec. 31, 2007 | | Sep. 30, 2007 | | Jun. 30, 2007 | |
Interest income | | | | | | | | | | | |
Loans and leases | | $ | 6,860,510 | | $ | 6,887,210 | | $ | 7,344,466 | | $ | 7,345,777 | | $ | 7,260,240 | |
Securities and other | | 1,752,556 | | 1,857,622 | | 1,726,351 | | 1,546,569 | | 1,424,138 | |
| | | | | | | | | | | |
Total interest income | | 8,613,066 | | 8,744,832 | | 9,070,817 | | 8,892,346 | | 8,684,378 | |
| | | | | | | | | | | |
Interest expense | | | | | | | | | | | |
Deposits | | 2,831,400 | | 3,233,736 | | 3,392,598 | | 3,420,693 | | 3,222,678 | |
Borrowings and debt | | 838,502 | | 964,260 | | 1,108,038 | | 1,049,298 | | 1,139,144 | |
| | | | | | | | | | | |
Total interest expense | | 3,669,902 | | 4,197,996 | | 4,500,636 | | 4,469,991 | | 4,361,822 | |
| | | | | | | | | | | |
Net interest income | | 4,943,164 | | 4,546,836 | | 4,570,181 | | 4,422,355 | | 4,322,556 | |
| | | | | | | | | | | |
Credit for loan losses | | 125,000 | | — | | — | | (60,000 | ) | — | |
Other income | | 1,265,669 | | 1,295,542 | | 1,353,677 | | 1,308,761 | | 1,329,114 | |
Other expenses | | 4,444,540 | | 4,392,749 | | 4,246,993 | | 4,189,171 | | 4,087,553 | |
Provision for income taxes | | 435,347 | | 360,682 | | 446,299 | | 424,023 | | 405,384 | |
Net income | | $ | 1,203,946 | | $ | 1,088,947 | | $ | 1,230,566 | | $ | 1,177,922 | | $ | 1,158,733 | |
FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Data
| | Three Months Ended | |
| | Jun. 30, 2008 | | Mar. 31, 2008 | | Dec. 31, 2007 | | Sep. 30, 2007 | | Jun. 30, 2007 | |
Selected returns and financial ratios | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.59 | | $ | 0.52 | | $ | 0.59 | | $ | 0.57 | | $ | 0.56 | |
Dividends per share | | $ | 0.25 | | $ | 0.25 | | $ | 0.25 | | $ | 0.24 | | $ | 0.22 | |
Yield on interest-earning assets (FTE) | | 6.39 | % | 6.39 | % | 6.56 | % | 6.56 | % | 6.61 | % |
Cost of interest-bearing liabilities | | 3.21 | % | 3.63 | % | 3.88 | % | 3.96 | % | 3.98 | % |
Net interest spread | | 3.18 | % | 2.76 | % | 2.68 | % | 2.60 | % | 2.63 | % |
Net interest margin | | 3.71 | % | 3.37 | % | 3.35 | % | 3.31 | % | 3.34 | % |
Return on average assets | | 0.83 | % | 0.74 | % | 0.83 | % | 0.81 | % | 0.82 | % |
Return on average equity | | 8.73 | % | 7.80 | % | 8.86 | % | 8.80 | % | 8.79 | % |
Efficiency ratio | | 70.17 | % | 73.64 | % | 70.47 | % | 72.05 | % | 71.16 | % |
Expense ratio | | 2.19 | % | 2.10 | % | 1.97 | % | 2.01 | % | 1.98 | % |
| | Six Months Ended | | | | | | | |
| | Jun. 30, 2008 | | Jun. 30, 2007 | | | | | | | |
Diluted earnings per share | | $ | 1.11 | | $ | 1.07 | | | | | | | |
Dividends per share | | $ | 0.50 | | $ | 0.44 | | | | | | | |
Yield on interest-earning assets (FTE) | | 6.39 | % | 6.63 | % | | | | | | |
Cost of interest-bearing liabilities | | 3.42 | % | 3.98 | % | | | | | | |
Net interest spread | | 2.97 | % | 2.65 | % | | | | | | |
Net interest margin | | 3.54 | % | 3.35 | % | | | | | | |
Return on average assets | | 0.78 | % | 0.78 | % | | | | | | |
Return on average equity | | 8.26 | % | 8.46 | % | | | | | | |
Efficiency ratio | | 71.85 | % | 71.99 | % | | | | | | |
Expense ratio | | 2.15 | % | 2.04 | % | | | | | | |
Other data
| | Jun. 30, 2008 | | Mar. 31, 2008 | | Dec. 31, 2007 | | Sep. 30, 2007 | | Jun. 30, 2007 | |
| | | | | | | | | | | |
Book value per share | | $ | 25.63 | | $ | 27.08 | | $ | 26.62 | | $ | 26.00 | | $ | 25.25 | |
Equity to assets | | 8.86 | % | 9.46 | % | 9.40 | % | 9.15 | % | 9.10 | % |
Allowance for loan losses to: | | | | | | | | | | | |
Total loans | | 1.00 | % | 1.10 | % | 1.13 | % | 1.17 | % | 1.24 | % |
Non-accrual loans | | 1.14 | x | 0.97 | x | 1.27 | x | 1.07 | x | 1.21 | x |
Non-accrual loans to net loans | | 0.88 | % | 1.14 | % | 0.90 | % | 1.10 | % | 1.04 | % |
Non-performing assets to total assets | | 0.79 | % | 0.84 | % | 0.67 | % | 0.81 | % | 0.78 | % |
| | | | | | | | | | | | | | | | |
