Exhibit 99.1
FIDELITY D & D BANCORP, INC.
FOR IMMEDIATE RELEASE
Date: April 29, 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.
FIRST 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 March 31, 2009 of $825,000 compared to $1,089,000 for the first quarter of 2008. Earnings per share on a fully diluted basis for the quarter totaled $0.40 compared to $0.52 for the prior year period.
Net interest income increased $278,000 to $4,825,000 for the quarter ended March 31, 2009 from $4,547,000 recorded during the first quarter of 2008. The lower rates on interest-bearing deposits produced cost savings, which coupled with the interest income generated by the commercial loan growth offset the lower yields on earning assets, resulting in additional net interest income earned for the first quarter of 2009. These factors improved net interest margin to 3.73% for the first quarter of 2009, compared to 3.37% for same 2008 period.
A provision for loan loss of $425,000 was recorded during the first quarter of 2009 with no provision required for the 2008 period. The allowance for loan losses was 1.20% of total loans at March 31, 2009, up from 1.10% at March 31, 2008.
Total other income recorded for the quarter ended March 31, 2009 was $1,313,000, compared to $1,296,000 for the same quarter in 2008. Robust mortgage banking activities produced gains that offset a non-cash other-than-temporary impairment charge and lower deposit fee levels during the quarter.
Total other operating expenses increased $269,000 from $4,393,000 to $4,662,000 for the quarters ended March 31, 2008 and 2009, respectively. The operating expense increase resulted primarily from salary and employee benefits and occupancy expenses incurred during in the first quarter of 2009 as compared to 2008.
“Performance in the first quarter was encouraging with gross margins strong and loan growth continuing,” stated Steven C. Ackmann, President and CEO. “Our profits were negatively impacted by further write-downs that occurred in the investment portfolio. With the lack of active markets for many of these securities, we are forced to rely upon valuation models, which are leading us and many others in the industry to take charges on securities.”
The Company’s assets totaled $566,786,000 at March 31, 2009 down from $575,719,000 at December 31, 2008.
Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s twelve community banking offices. 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: | | Mar. 31, 2009 | | Dec. 31, 2008 | | Sep. 30, 2008 | | Jun. 30, 2008 | | Mar. 31, 2008 | |
Assets | | | | | | | | | | | |
Total cash and cash equivalents | | $ | 20,800,732 | | $ | 12,771,147 | | $ | 13,375,299 | | $ | 16,040,466 | | $ | 23,378,954 | |
Investment securities | | 78,949,503 | | 84,187,579 | | 87,179,549 | | 129,244,167 | | 136,320,024 | |
Federal Home Loan Bank Stock | | 4,781,100 | | 4,781,100 | | 4,770,700 | | 4,358,300 | | 3,387,800 | |
Loans and leases | | 426,269,981 | | 441,036,694 | | 431,293,559 | | 418,650,319 | | 399,582,768 | |
Allowance for loan losses | | (5,097,641 | ) | (4,745,234 | ) | (4,205,566 | ) | (4,188,571 | ) | (4,378,924 | ) |
Premises and equipment, net | | 15,871,074 | | 16,056,362 | | 16,018,219 | | 12,912,023 | | 12,947,438 | |
Life insurance cash surrender value | | 8,886,844 | | 8,807,784 | | 8,728,568 | | 8,645,597 | | 8,564,950 | |
Other assets | | 16,323,980 | | 12,823,565 | | 12,383,084 | | 12,901,595 | | 14,073,523 | |
| | | | | | | | | | | |
Total assets | | $ | 566,785,573 | | $ | 575,718,997 | | $ | 569,543,412 | | $ | 598,563,896 | | $ | 593,876,533 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 69,296,833 | | $ | 71,442,651 | | $ | 69,619,234 | | $ | 74,765,086 | | $ | 69,486,801 | |
Interest-bearing deposits | | 394,857,294 | | 361,869,281 | | 365,812,303 | | 373,468,779 | | 386,356,675 | |
Total deposits | | 464,154,127 | | 433,311,932 | | 435,431,537 | | 448,233,865 | | 455,843,476 | |
Short-term borrowings | | 10,741,814 | | 38,129,704 | | 17,086,314 | | 29,674,336 | | 9,879,537 | |
Long-term debt | | 42,000,000 | | 52,000,000 | | 62,071,661 | | 62,285,582 | | 62,494,906 | |
Other liabilities | | 4,427,884 | | 3,316,710 | | 4,335,911 | | 5,318,030 | | 9,465,660 | |
Total liabilities | | 521,323,825 | | 526,758,346 | | 518,925,423 | | 545,511,813 | | 537,683,579 | |
| | | | | | | | | | | |
Shareholders’ equity | | 45,461,748 | | 48,960,651 | | 50,617,989 | | 53,052,083 | | 56,192,954 | |
| | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 566,785,573 | | $ | 575,718,997 | | $ | 569,543,412 | | $ | 598,563,896 | | $ | 593,876,533 | |
Average Quarterly Balances: | | Mar. 31, 2009 | | Dec. 31, 2008 | | Sep. 30, 2008 | | Jun. 30, 2008 | | Mar. 31, 2008 | |
Assets | | | | | | | | | | | |
Total cash and cash equivalents | | $ | 12,902,871 | | $ | 11,389,500 | | $ | 11,483,829 | | $ | 12,025,621 | | $ | 23,587,839 | |
Investment securities | | 86,550,978 | | 90,153,057 | | 117,713,728 | | 138,429,282 | | 133,209,250 | |
Loans and leases, net | | 433,903,852 | | 434,511,745 | | 421,771,678 | | 402,874,033 | | 406,336,700 | |
Premises and equipment, net | | 16,048,369 | | 15,948,591 | | 13,315,976 | | 12,951,487 | | 12,981,354 | |
Other assets | | 22,889,530 | | 21,628,663 | | 19,744,364 | | 19,358,141 | | 15,966,685 | |
| | | | | | | | | | | |
Total assets | | $ | 572,295,600 | | $ | 573,631,556 | | $ | 584,029,575 | | $ | 585,638,564 | | $ | 592,081,828 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 68,083,243 | | $ | 69,665,796 | | $ | 69,069,124 | | $ | 65,591,257 | | $ | 66,504,221 | |
Interest-bearing deposits | | 380,508,523 | | 366,709,783 | | 360,426,504 | | 378,477,080 | | 380,896,695 | |
Total deposits | | 448,591,766 | | 436,375,579 | | 429,495,628 | | 444,068,337 | | 447,400,916 | |
Short-term borrowings and long-term debt | | 72,666,503 | | 83,447,025 | | 97,685,420 | | 81,129,443 | | 84,068,238 | |
Other liabilities | | 3,366,585 | | 4,093,554 | | 4,466,079 | | 5,005,066 | | 4,456,310 | |
Total liabilities | | 524,624,854 | | 523,916,158 | | 531,647,127 | | 530,202,846 | | 535,925,464 | |
| | | | | | | | | | | |
Shareholders’ equity | | 47,670,746 | | 49,715,398 | | 52,382,448 | | 55,435,718 | | 56,156,364 | |
| | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 572,295,600 | | $ | 573,631,556 | | $ | 584,029,575 | | $ | 585,638,564 | | $ | 592,081,828 | |
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
| | Three Months Ended | | | | | | | |
| | Mar. 31, 2009 | | Mar. 31, 2008 | | | | | | | |
Interest income | | | | | | | | | | | |
Loans and leases | | $ | 6,675,522 | | $ | 6,887,210 | | | | | | | |
Securities and other | | 1,151,891 | | 1,857,622 | | | | | | | |
| | | | | | | | | | | |
Total interest income | | 7,827,413 | | 8,744,832 | | | | | | | |
| | | | | | | | | | | |
Interest expense | | | | | | | | | | | |
Deposits | | 2,191,772 | | 3,233,736 | | | | | | | |
Borrowings and debt | | 810,821 | | 964,260 | | | | | | | |
| | | | | | | | | | | |
Total interest expense | | 3,002,593 | | 4,197,996 | | | | | | | |
| | | | | | | | | | | |
Net interest income | | 4,824,820 | | 4,546,836 | | | | | | | |
| | | | | | | | | | | |
Provision for loan losses | | 425,000 | | — | | | | | | | |
Other income | | 1,313,362 | | 1,295,542 | | | | | | | |
Other expenses | | 4,661,942 | | 4,392,749 | | | | | | | |
Provision for income taxes | | 226,182 | | 360,682 | | | | | | | |
Net income | | $ | 825,058 | | $ | 1,088,947 | | | | | | | |
| | Three Months Ended | |
| | Mar. 31, 2009 | | Dec. 31, 2008 | | Sep. 30, 2008 | | Jun. 30, 2008 | | Mar. 31, 2008 | |
Interest income | | | | | | | | | | | |
Loans and leases | | $ | 6,675,522 | | $ | 6,911,146 | | $ | 6,905,422 | | $ | 6,860,510 | | $ | 6,887,210 | |
Securities and other | | 1,151,891 | | 1,272,950 | | 1,514,018 | | 1,752,556 | | 1,857,622 | |
| | | | | | | | | | | |
Total interest income | | 7,827,413 | | 8,184,096 | | 8,419,440 | | 8,613,066 | | 8,744,832 | |
| | | | | | | | | | | |
Interest expense | | | | | | | | | | | |
Deposits | | 2,191,772 | | 2,454,253 | | 2,598,805 | | 2,831,400 | | 3,233,736 | |
Borrowings and debt | | 810,821 | | 821,689 | | 941,488 | | 838,502 | | 964,260 | |
| | | | | | | | | | | |
Total interest expense | | 3,002,593 | | 3,275,942 | | 3,540,293 | | 3,669,902 | | 4,197,996 | |
| | | | | | | | | | | |
Net interest income | | 4,824,820 | | 4,908,154 | | 4,879,147 | | 4,943,164 | | 4,546,836 | |
| | | | | | | | | | | |
Provision for loan losses | | 425,000 | | 685,000 | | 130,000 | | 125,000 | | — | |
Other income | | 1,313,362 | | 1,172,647 | | 844,443 | | 1,265,669 | | 1,295,542 | |
Other expenses | | 4,661,942 | | 4,700,740 | | 4,672,654 | | 4,444,540 | | 4,392,749 | |
Provision for income taxes | | 226,182 | | 93,121 | | 179,821 | | 435,347 | | 360,682 | |
Net income | | $ | 825,058 | | $ | 601,940 | | $ | 741,115 | | $ | 1,203,946 | | $ | 1,088,947 | |
FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Data
| | Three Months Ended | |
| | Mar. 31, 2009 | | Dec. 31, 2008 | | Sep. 30, 2008 | | Jun. 30, 2008 | | Mar. 31, 2008 | |
Selected returns and financial ratios | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.40 | | $ | 0.30 | | $ | 0.35 | | $ | 0.59 | | $ | 0.52 | |
Dividends per share | | $ | 0.25 | | $ | 0.25 | | $ | 0.25 | | $ | 0.25 | | $ | 0.25 | |
Yield on interest-earning assets (FTE) | | 5.97 | % | 6.13 | % | 6.17 | % | 6.39 | % | 6.39 | % |
Cost of interest-bearing liabilities | | 2.69 | % | 2.90 | % | 3.07 | % | 3.21 | % | 3.63 | % |
Net interest spread | | 3.28 | % | 3.23 | % | 3.10 | % | 3.18 | % | 2.76 | % |
Net interest margin | | 3.73 | % | 3.72 | % | 3.62 | % | 3.71 | % | 3.37 | % |
Return on average assets | | 0.58 | % | 0.42 | % | 0.50 | % | 0.83 | % | 0.74 | % |
Return on average equity | | 7.02 | % | 4.82 | % | 5.63 | % | 8.73 | % | 7.80 | % |
Efficiency ratio | | 70.33 | % | 73.33 | % | 74.84 | % | 70.17 | % | 73.64 | % |
Expense ratio | | 2.15 | % | 2.35 | % | 2.35 | % | 2.19 | % | 2.10 | % |
Other data
| | Mar. 31, 2009 | | Dec. 31, 2008 | | Sep. 30, 2008 | | Jun. 30, 2008 | | Mar. 31, 2008 | |
Book value per share | | $ | 21.94 | | $ | 23.73 | | $ | 24.55 | | $ | 25.63 | | $ | 27.08 | |
Equity to assets | | 8.02 | % | 8.50 | % | 8.89 | % | 8.86 | % | 9.46 | % |
Allowance for loan losses to: | | | | | | | | | | | |
Total loans | | 1.20 | % | 1.08 | % | 0.98 | % | 1.00 | % | 1.10 | % |
Non-accrual loans | | 0.70 | x | 1.36 | x | 1.35 | x | 1.14 | x | 0.97 | x |
Non-accrual loans to net loans | | 1.72 | % | 0.80 | % | 0.73 | % | 0.88 | % | 1.14 | % |
Non-performing assets to total assets | | 1.56 | % | 0.96 | % | 0.90 | % | 0.79 | % | 0.84 | % |
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