Key Highlights

  • Second quarter net income was $7.8 million, or $1.33 per diluted share, versus $6.9 million, or $1.20, a year earlier.
  • Net interest income grew 16% to $20.8 million; the non-GAAP tax-equivalent margin reached 3.22%, up from 2.92%.
  • Loans and leases grew a net $174.9 million since year-end to about $2.09 billion, and total assets reached $2.97 billion.
  • Non-performing assets were $1.8 million, or 0.06% of total assets, and net charge-offs were 0.01% of average loans.

Fidelity D & D Bancorp (NASDAQ:FDBC) shares were trading near their 52-week high at USD 58.00 on October 19, 2026, down 0.26%. The Dunmore, Pennsylvania, holding company for The Fidelity Deposit and Discount Bank last reported quarterly results on July 22, and they show more earning assets, a wider margin and quiet credit measures.

Second-quarter earnings: higher income and a wider margin

Net income for the quarter ended June 30, 2026 was $7.8 million, or $1.33 per diluted share, compared with $6.9 million, or $1.20, in the second quarter of 2025. For the six months, net income was $15.3 million, or $2.63 per diluted share, against $12.9 million, or $2.23.

Net interest income rose 16% to $20.8 million from $17.9 million. The company pointed to larger average earning-asset balances, up $113.1 million, a higher yield and lower deposit costs, with rates paid on interest-bearing deposits down 28 basis points. The fully taxable equivalent net interest margin, a non-GAAP measure, was 3.22% against 2.92% a year earlier.

Non-interest income of $5.5 million rose 2%, led by wealth management, whose revenue increased $0.4 million. Non-interest expense rose 9% to $16.0 million, mainly on salaries and benefits tied to added bankers, plus higher professional services and software costs. The tax-equivalent efficiency ratio, also non-GAAP, was 59.19%. Return on average assets was 1.11% and return on average equity was 12.68%.

Loan growth, funding and credit quality

Total assets were $2.97 billion at June 30, compared with $2.75 billion at year-end 2025. Loans and leases stood at about $2.09 billion, which the company described as net growth of $174.9 million since December 31. Deposits rose $91.3 million to $2.56 billion. Short-term borrowings increased $119.8 million, which the company said funded loan growth and interest-bearing cash.

Credit measures were quiet. Non-performing assets were $1.8 million, or 0.06% of total assets. Past-due and non-accrual loans were 0.22% of total loans against 0.26%, and net charge-offs were 0.01% of average loans against 0.03%. The allowance for credit losses was $21.3 million, or 1.02% of loans, down from 1.06%. Second-quarter provisions were $400 thousand for loans and $340 thousand for unfunded commitments, which the company tied to loan growth and higher construction commitments.

Shareholders' equity rose $14.0 million to $252.9 million. The company reported a Tier 1 leverage ratio of 9.51%, a total risk-based capital ratio of 14.29% and common equity Tier 1 and Tier 1 risk-based ratios of 13.17%, and said it remains well capitalized. The tangible common equity ratio, a non-GAAP measure, was 7.89%, below 8.01% at year-end, while tangible book value per share, also non-GAAP, was $40.08, up from $37.88. Assets under management reached $1.22 billion, up from $1.06 billion at year-end.

Dividend, stated risks and management's outlook

The board declared a third quarter dividend of $0.43 per share on July 22, payable September 10 to shareholders of record on August 14. Second-quarter dividends declared were also $0.43, up from $0.40 a year earlier, and six-month dividends were $0.86 against $0.80. Cash dividends paid in the first half totaled $5.0 million. The earnings release mentions no acquisitions or share repurchases.

The earnings release gives no numerical guidance. The chief executive called the quarter outstanding, pointed to revenue growth, favorable credit performance and strategic initiatives, and said management is confident in the company's momentum for the rest of 2026. That is the company's own view, not a forecast by this article. Its forward-looking statements cite risks including interest rate changes, inflation, economic conditions, competition, cybersecurity threats, deposit fluctuations and regulatory change. Third-quarter results had not been published when this article was prepared.