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Jun 30, 2021
Fidelity D & D Bancorp Q2 2021 Earnings Report
Announced record quarterly net income and earnings per share.
Key Takeaways
Fidelity D & D Bancorp, Inc. reported a significant increase in net income for the three months ended June 30, 2021, with net income reaching $5.7 million, or $1.13 diluted earnings per share, compared to $0.3 million, or $0.05 diluted earnings per share, for the same period in 2020. The improvement was driven by increased net interest income, additional non-interest income, a reduction in the provision for loan losses, and lower non-interest expenses. The company also acquired Landmark Bancorp, Inc. effective July 1, 2021.
Net income for the quarter was $5.7 million, or $1.13 diluted earnings per share, a significant increase from $0.3 million, or $0.05 diluted earnings per share, in the same period last year.
Net interest income increased by $2.5 million due to a rise in average balance of interest-earning assets and lower interest expense on liabilities.
Non-interest income increased by $1.9 million, primarily due to higher gains on loan sales and increased interchange fees.
Non-interest expenses decreased by $0.5 million, mainly due to lower merger-related expenses compared to the previous year.
Forward Guidance
Fidelity Bank's growth strategy is currently focused on executing the planned 3rd quarter integration of the Landmark Community Bank clients, branch offices, and core operating systems. It is the company's belief that the addition of the Landmark Bankers, clients and expanded market presence will provide long-term shareholder value.
Positive Outlook
- Continued growth in loans.
- Continued growth in deposits.
- Continued growth in non-interest income.
- Effective management of expenses.
- Landmark Community Bank integration.
Challenges Ahead
- Effects of economic conditions particularly with regard to the negative impact of severe, wide-ranging and continuing disruptions caused by the spread of Coronavirus Disease 2019 (COVID-19) and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers’ ability to repay loans.
- Acquisitions and integration of acquired businesses, including but not limited to, the recent acquisition of MNB Corporation (“MNB”) and its wholly-owned bank subsidiary, and Landmark and its wholly-owned bank subsidiary.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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