On July 24, 2024, Fidelity D & D Bancorp Inc (FDBC, Financial) released its 8-K filing detailing the unaudited, consolidated financial results for the three and six-month periods ended June 30, 2024. Fidelity D & D Bancorp Inc is a bank holding company that offers a full range of traditional banking services through its wholly-owned subsidiary, The Fidelity Deposit and Discount Bank. The Bank operates primarily in Lackawanna, Luzerne, and Northampton Counties, Pennsylvania.
Second Quarter Financial Performance
For the quarter ended June 30, 2024, Fidelity D & D Bancorp Inc reported a net income of $4.9 million, or $0.86 diluted earnings per share, compared to $5.4 million, or $0.94 diluted earnings per share, for the same period in 2023. The $0.5 million decline in net income was primarily driven by a $0.4 million decrease in net interest income due to higher interest expenses.
Net interest income for the second quarter of 2024 was $15.1 million, a 2% decrease from $15.5 million in the second quarter of 2023. The decline was mainly due to a $3.4 million increase in interest expense, which was partially offset by a $3.1 million increase in interest income.
Year-To-Date Financial Performance
For the six months ended June 30, 2024, net income was $10.0 million, or $1.73 diluted earnings per share, compared to $12.4 million, or $2.18 diluted earnings per share, for the same period in 2023. The 19% decline in net income was attributed to a $2.4 million reduction in net interest income and $1.0 million higher non-interest expenses.
Net interest income for the six months ended June 30, 2024, was $30.1 million, compared to $32.5 million for the same period in 2023. The reduction was due to interest expenses growing faster than interest income.
Balance Sheet and Asset Quality
As of June 30, 2024, total assets were $2.5 billion, a slight decrease from $2.5 billion as of December 31, 2023. The decline was primarily due to reductions in cash and cash equivalents and the investment portfolio, partially offset by growth in the loans and leases portfolio.
Shareholders' equity increased by $6.2 million to $195.7 million at June 30, 2024, from $189.5 million at December 31, 2023. This increase was driven by retained earnings improvement from net income, partially offset by cash dividends paid to shareholders.
| Metric | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $2.5 billion | $2.5 billion |
| Total Deposits | $2.2 billion | $2.2 billion |
| Shareholders' Equity | $195.7 million | $189.5 million |
Commentary and Analysis
Second quarter results reflect our prudent balance sheet management and expense discipline," stated Daniel J. Santaniello, President and Chief Executive Officer. "The elevated rates and ongoing inverted yield curve continue to compress the net interest margin, with early signs of margin stabilization. Our credit quality continues to remain strong, and we are well positioned to bolster shareholder value through growth in the second half of the year."
Despite the challenges posed by higher interest expenses, Fidelity D & D Bancorp Inc has managed to maintain strong credit quality and a stable balance sheet. The company's focus on prudent balance sheet management and expense discipline has helped mitigate some of the adverse effects of the current interest rate environment.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Fidelity D & D Bancorp Inc for further details.
