Fidelity D & D Bancorp, Inc. (FDBC), parent to The Fidelity Deposit and Discount Bank, released its Q3 2024 financial results, reflecting stable income growth and strategic investment in operations.
For the quarter ending September 30, 2024, Fidelity posted a net income of $5.0 million, or $0.86 per diluted share, compared to $5.3 million, or $0.93 per diluted share, in Q3 2023.
This slight decline was due to increased non-interest expenses and higher credit loss provisions, offset by gains in net interest and non-interest income, underscoring the bank’s financial resilience.
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Net Interest Income Boosted by Strong Loan Portfolio Growth
Fidelity recorded a 5% year-over-year increase in net interest income, reaching $15.4 million in Q3 2024. This growth was driven by higher interest-earning assets, including a $122.8 million boost in average loan balances.
While increased interest expenses partially offset this rise, primarily due to higher deposit rates, the loan portfolio’s performance contributed significantly to revenue growth.
Rising Non-Interest Income and Operational Expenses
The bank reported a 15% increase in non-interest income for Q3 2024, totaling $5.0 million, with notable gains in fees from trust fiduciary activities, financial services, and service charges.
Non-interest expenses rose 8% to $13.8 million due to increased personnel costs, professional fees, and taxes from expansion.
Robust Balance Sheet with Improved Capital Ratios
Fidelity D & D Bancorp’s assets grew to $2.6 billion as of September 30, 2024, driven by loan portfolio growth.
Shareholders’ equity rose 9% to $207.3 million, with a tangible book value per share of $32.55. The bank holds strong capital with a 9.30% Tier 1 ratio and 14.56% total risk-based ratio, supporting growth.
Optimistic Outlook for Fidelity Bank’s Future Growth
CEO Daniel J. Santaniello emphasized Fidelity’s disciplined growth strategy and strong commitment to clients, shareholders, and communities.
Our third quarter results reflect strong balance sheet growth, increased capital levels, liquidity, and non-interest income,” stated Daniel J. Santaniello, President and Chief Executive Officer.
Q3 also reflected an increase in net interest margin. We remain focused, disciplined and thoughtful as we execute on our strategic plan. The Fidelity Bankers continue to demonstrate exemplary efforts and Fidelity Bank is well positioned for the future and committed to our clients, shareholders, and the communities we serve.”
Fidelity Bank, backed by strong capital, growing loans, and asset quality, is poised for future market opportunities.
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