Fidelity D & D Bancorp (FDBC) investor relations material

Executive summary

• Net income for Q2 2026 was $7.8M ($1.34 EPS), up 13% year-over-year; six-month net income was $15.3M ($2.64 EPS), up 19% year-over-year, driven by higher net interest income and non-interest income, partially offset by increased expenses and credit loss provisions.

• Total assets reached nearly $3.0B as of June 30, 2026, up $223.1M since year-end 2025, primarily from loan and lease growth.

• Growth was supported by strong loan growth, improved net interest margins, and modest non-interest income gains.

• Return on average assets (ROA) for Q2 2026 was 1.11%; return on equity (ROE) was 12.68%.

Financial highlights

• Net interest income for Q2 2026 increased 16% to $20.8M; for six months, up 15% to $40.2M.

• Non-interest income for Q2 2026 was $5.5M, up 2%, mainly from higher wealth management revenue; for six months, $10.7M, up 3%.

• Non-interest expenses rose 9% to $16.0M for Q2 and 7% to $31.2M for six months, mainly due to higher salaries, technology, and professional services.

• Provision for credit losses increased to $1.3M for six months, reflecting loan growth and higher commercial construction commitments.

• Book value per share at June 30, 2026 was $43.54; tangible book value per share was $40.08.

Outlook and guidance

• Management expects continued loan growth supported by a strong pipeline and excess cash, with potential use of wholesale borrowings if deposit growth lags.

• Net interest margin (NIM) expected to be influenced by market rate changes, deposit mix, and active balance sheet management.

• Deposit betas and customer behavior will impact funding costs and NIM.

• Management expressed confidence in maintaining momentum and building on current success for the remainder of 2026, citing strong revenue growth and favorable credit performance.