SCRANTON, Pa., Oct. 21, 2026 (GLOBE NEWSWIRE) — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, Fidelity Bank, announced its unaudited, consolidated financial results for the three and nine-month periods ended September 30, 2026.

Unaudited Financial Information

Net income for the quarter ended September 30, 2026 was $8.9 million, or $1.53 per diluted share, compared to $7.3 million, or $1.27 per diluted share, for the quarter ended September 30, 2025. The $1.6 million, or 21%, increase in net income resulted primarily from a $3.4 million increase in net interest income coupled with a $1.0 million increase in non-interest income. This was partially offset by a $1.5 million increase in non-interest expense and a $0.9 million increase in the provision for credit losses on loans due to the growth of loans.

For the nine months ended September 30, 2026, net income was $24.2 million, or $4.16 diluted earnings per share, compared to $20.3 million, or $3.50 diluted earnings per share, for the nine months ended September 30, 2025.  The $3.9 million, or 20%, increase in net income stemmed from the $8.6 million increase in net interest income and $1.4 million increase in non-interest income. This was partially offset by a $3.4 million increase in non-interest expense and a $1.8 million increase in the net provision for credit losses on loans and unfunded commitments.

“We delivered record earnings in the third quarter, generating net income of $8.9 million, or $1.53 per diluted share, with total assets reaching $3.0 billion,” said Daniel J. Santaniello, President and Chief Executive Officer. “These results reflect the strong focus and dedication of our Bankers as we continue to execute on our strategic initiatives, including the successful opening of our new Corporate Center in downtown Scranton. We remain confident in our position as we enter the fourth quarter and look ahead to 2027.”

Consolidated Third Quarter Operating Results Overview

Net interest income increased $3.4 million, or 18%, compared with the third quarter of 2025, driven by higher average loan balances, improved loan yields and lower funding costs. Average loans increased $237.3 million, while the fully-taxable equivalent (“FTE”) (non-GAAP measurement) yield on loans increased 4 basis points, resulting in higher interest income. Funding costs also benefited from a 29 basis point decline in the average rate paid on interest-bearing deposits, which more than offset the impact of a $76.4 million increase in average interest-bearing deposit balances. Collectively, these factors contributed to a 35 basis point increase in FTE net interest margin to 3.30%.

The FTE yield on interest-earning assets was 4.95% for the third quarter of 2026, an increase of 12 basis points from 4.83% for the third quarter of 2025. The overall cost of interest-bearing liabilities was 2.26% for the third quarter of 2026, a decrease of 29 basis points from the 2.55% for the third quarter of 2025. The cost of funds decreased 23 basis points from 1.98% to 1.75% for the third quarters of 2025 and 2026, respectively. The Company’s FTE net interest spread was 2.69% for the third quarter of 2026, an increase of 41 basis points from 2.28% recorded for the third quarter of 2025.

For the three months ended September 30, 2026, the provision for credit losses on loans was $1.1 million and a $50 thousand benefit for credit losses on unfunded commitments, compared to a $200 thousand provision for credit losses on loans and a $110 thousand provision for credit losses on unfunded commitments for the three months ended September 30, 2025. For the three months ended September 30, 2026, the increase in the provision for credit losses on loans compared to the prior year period primarily reflected growth in the loan portfolio. For the three months ended September 30, 2026, the decrease in the provision for credit losses on unfunded commitments compared to the prior-year period was primarily due to a reduction in unfunded construction commitments. 

Total non-interest income increased $1.0 million, or 20%, to $6.1 million for the third quarter of 2026 compared to $5.1 million for the third quarter of 2025. The increase included $0.4 million of higher wealth management revenue and a $0.3 million gain on the sale of bank property. Commercial loan fee income also increased $0.2 million, primarily attributable to a prepayment penalty recognized during the quarter.

Non-interest expenses increased $1.5 million, or 10%, for the third quarter of 2026 to $16.1 million from $14.6 million for the same quarter of 2025. The increase in non-interest expenses was attributed to added salaries and benefits expense of $0.6 million, primarily reflecting higher staffing levels to support business growth and strategic initiatives. Additionally, the Company experienced increases of $0.4 million in premises and equipment expenses primarily due to costs for software and subscriptions and depreciation. Donations expense increased $0.3 million in the third quarter of 2026 compared to the same period in the prior year, primarily reflecting a one-time charitable contribution. Despite the increase in non-interest expense, the efficiency ratio improved to 56.11% from 60.17% in the prior-year period, reflecting improved operating leverage.

The provision for income taxes increased $0.6 million during the three months ended September 30, 2026 compared to the same period in 2025 primarily due to a $2.2 million increase in income before taxes.

Consolidated Year-To-Date Operating Results Overview

Net interest income was $62.0 million for the nine months ended September 30, 2026 compared to $53.4 million for the nine months ended September 30, 2025. The $8.6 million increase in net interest income resulted from the increase of $6.5 million in interest income primarily due to a $134.6 million increase in the average balance of interest-earning assets and an 8 basis point increase in FTE yield. The largest contributor to interest income growth was the loan portfolio which produced an additional $8.8 million in interest income from an increase of 5 basis points in FTE loan yields on $193.1 million in higher average balances. The increase in interest income was partially offset by a decrease of $1.5 million in interest earned on the investment portfolio due to decreases of 17 basis points in yield and $49.8 million in average balances. Additionally, the Company experienced a decrease of $2.0 million in interest expense on deposits due to a 26 basis point decrease in rates paid on interest-bearing deposits which more than offset the increase from $98.6 million in higher average balances during the nine months ended September 30, 2026.

The overall cost of interest-bearing liabilities was 2.26% for the nine months ended September 30, 2026 compared to 2.52% for the nine months ended September 30, 2025. The cost of funds decreased 21 basis points to 1.75% for the nine months ended September 30, 2026 from 1.96% for the same period of 2025. The FTE yield on interest earning assets was 4.86% for the nine months ended September 30, 2026, an increase of 8 basis points from the 4.78% year-to-date September 30, 2025. The Company’s FTE net interest spread was 2.60% for the nine months ended September 30, 2026, an increase of 34 basis points from the 2.26% recorded for the same period of 2025. FTE net interest margin increased by 28 basis points to 3.20% for the nine months ended September 30, 2026 from 2.92% for the same 2025 period, primarily reflecting lower rates paid on interest-bearing deposits and higher yields earned on loans and leases.

For the nine months ended September 30, 2026, the provision for credit losses on loans was $2.4 million and the provision for credit losses on unfunded commitments was $380 thousand compared to a $955 thousand provision for credit losses on loans and a $45 thousand provision for credit losses on unfunded commitments for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, the increase in the provision for credit losses on loans compared to the prior year period was due to higher loan growth. For the nine months ended September 30, 2026, the increase in the provision for unfunded commitments compared to the prior-year period was due to growth in originations within the portfolio, specifically in commercial construction commitments.

Total non-interest income for the nine months ended September 30, 2026 was $16.8 million, an increase of $1.4 million, or 9%, from $15.4 million for the nine months ended September 30, 2025. The increase was primarily due to $1.0 million growth in wealth management revenue. Additionally, the Company saw increases of $0.3 million in fees from commercial loans with interest rate hedges and $0.4 million in service charges on commercial loans during the nine months ended September 30, 2026 compared to the same 2025 period. Partially offsetting the increase in non-interest income was a decrease of $0.6 million in gains from sold loans primarily due to a $0.5 million gain on the sale of a commercial loan during the nine months ended September 30, 2025.

Non-interest expenses increased to $47.3 million for the nine months ended September 30, 2026, an increase of $3.4 million, or 8%, from $43.9 million for the nine months ended September 30, 2025. Salaries and benefits expense increased $1.8 million due to an increase in bankers in the nine months ended September 30, 2026, compared to the same period in 2025. Additionally, the Company experienced an increase of $0.6 million in premises and equipment expenses primarily due to new technology and higher software costs. Donations expense increased $0.5 million compared to the prior-year period, primarily due to a $0.3 million contribution made to the Fidelity D & D Charitable Foundation. Professional services expense increased $0.4 million primarily attributable to improvement initiatives throughout the bank and relocation-related costs incurred in connection with the transition of bankers to the Company’s new corporate headquarters, which was completed in the third quarter of 2026.

The provision for income taxes increased $0.8 million during the nine months ended September 30, 2026 compared to the same period in 2025 primarily due to a $4.8 million increase in income before taxes. Partially offsetting the increase in income tax expense was approximately $0.5 million of benefit associated with purchased renewable energy tax credits.

Consolidated Balance Sheet & Asset Quality Overview

The Company’s total assets had a balance of $3.0 billion as of September 30, 2026, an increase of $280.3 million from December 31, 2025. The increase resulted from $261.7 million of net growth in the loans and leases portfolio as of September 30, 2026 compared to December 31, 2025. Cash and cash equivalents increased $25.5 million over the same period. Investment securities decreased $10.7 million from December 31, 2025, reflecting principal paydowns, maturities and sales, and changes in the fair value of available-for-sale securities, partially offset by security purchases.

During the same time period, total liabilities increased $272.2 million, or 11%. Deposit growth of $142.9 million was utilized to fund loan growth and increase interest-bearing cash balances. Short-term borrowings increased $132.7 million during the period. The Company experienced an increase of $40.7 million in non-interest-bearing checking accounts. For interest-bearing deposit accounts, the Company experienced increases of $73.3 million in money market deposits, $44.2 million in interest-bearing checking accounts and $5.1 million in savings and clubs. These increases were partially offset by a decrease of $20.4 million in time deposits. As of September 30, 2026, the ratio of insured and collateralized deposits to total deposits was approximately 72%.

Shareholders’ equity increased $8.1 million, or 3%, to $247.0 million at September 30, 2026 from $238.9 million at December 31, 2025. The increase was caused by $16.7 million from retained earnings produced from net income of $24.2 million and $1.2 million associated with common stock issuance and restricted stock. This activity was partially offset by $7.6 million of cash dividends and a $9.7 million after-tax reduction in accumulated other comprehensive income. At September 30, 2026, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.64% of total average assets as of September 30, 2026. Total risk-based capital was 14.10% of risk-weighted assets and Tier 1 risk-based capital was 12.97% of risk-weighted assets as of September 30, 2026. Tangible book value per share was $39.06 at September 30, 2026 compared to $37.88 at December 31, 2025.  Tangible common equity decreased to 7.54% of total assets at September 30, 2026 compared to 8.01% at December 31, 2025 due to a 10% increase in total tangible assets compared to a 4% increase in tangible common equity.

Asset Quality

Total non-performing assets were $2.6 million, or 0.08% of total assets, at September 30, 2026, compared to $2.2 million, or 0.08% of total assets, at December 31, 2025. Past due and non-accrual loans to total loans were 0.19% at September 30, 2026 compared to 0.26% at December 31, 2025. Net charge-offs to average total loans were 0.01% at September 30, 2026 compared to 0.03% at December 31, 2025.

About Fidelity D & D Bancorp, Inc. and Fidelity Bank

Fidelity D & D Bancorp, Inc. has built a strong history as a trusted financial advisor to the clients served by Fidelity Bank.  Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company’s vision is to serve as the best bank for the community, which was accomplished by having provided over 6,190 hours of volunteer time and over $1.5 million in donations to non-profit organizations directly within the markets served throughout 2025. Fidelity Bank’s deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities.  The Company’s non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures are supplemental to GAAP used to prepare the Company’s operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Adjusted non-interest income used in the calculation of certain non-GAAP performance measures excludes gains and losses on securities sales in order to enhance comparability between reporting periods. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.

Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent (“FTE”), in order to calculate certain ratios within this document.  This treatment allows a uniform comparison among yields on interest-earning assets.  Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2026 and 2025. FTE adjustments affect interest income and related ratios only and do not impact reported GAAP net income.

Forward-looking statements

Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” and similar expressions are intended to identify such forward-looking statements.

The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:

  ■ local, regional and national economic conditions and changes thereto;
  ■ the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy;
  ■ the risks of changes and volatility of interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities and interest rate protection agreements, as well as interest rate risks;
  ■ securities markets and monetary fluctuations and volatility;
  ■  disruption of credit and equity markets;
  ■ impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules;
  ■ governmental monetary and fiscal policies, as well as legislative and regulatory changes;
  ■ effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions;
  ■ the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
  ■ the impact of new or changes in existing laws and regulations, including laws and regulations concerning taxes, banking, securities and insurance and their application with which the Company and its subsidiaries must comply;
  ■ the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters;
  ■ the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;
  ■ the effects of economic conditions of any other pandemic, epidemic or other health-related crisis such as 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;
  ■ the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes;
  ■  technological changes; 
  ■  the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses;
  ■ acquisitions and integration of acquired businesses;
  ■ the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities;
  ■ acts of war, terrorism, or armed conflict; and
  ■ the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release.  The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

For more information please visit our investor relations web site located through www.bankatfidelity.com. 

FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)

At Period End:   September 30, 2026     December 31, 2025  
Assets                
Cash and cash equivalents   $ 173,606     $ 148,060  
Investment securities     513,270       523,946  
Restricted investments in bank stock     7,729       4,373  
Loans and leases     2,175,412       1,911,724  
Allowance for credit losses on loans     (22,391 )     (20,168 )
Premises and equipment, net     48,122       48,950  
Life insurance cash surrender value     60,593       59,396  
Goodwill and core deposit intangible     20,076       20,242  
Other assets     52,002       51,535  
                 
Total assets   $ 3,028,419     $ 2,748,058  
                 
Liabilities                
Non-interest-bearing deposits   $ 593,270     $ 552,581  
Interest-bearing deposits     2,017,002       1,914,772  
Total deposits     2,610,272       2,467,353  
Short-term borrowings     132,708       20  
Secured borrowings     4,709       5,995  
Other liabilities     33,746       35,830  
Total liabilities     2,781,435       2,509,198  
                 
Shareholders’ equity     246,984       238,860  
                 
Total liabilities and shareholders’ equity   $ 3,028,419     $ 2,748,058  

Average Year-To-Date Balances:   September 30, 2026     December 31, 2025  
Assets                
Cash and cash equivalents   $ 117,413     $ 133,171  
Investment securities     513,320       544,390  
Restricted investments in bank stock     4,775       4,189  
Loans and leases     2,039,312       1,866,637  
Allowance for credit losses on loans     (21,217 )     (20,315 )
Premises and equipment, net     50,249       40,457  
Life insurance cash surrender value     60,056       58,786  
Goodwill and core deposit intangible     20,147       20,358  
Other assets     48,495       42,032  
                 
Total assets   $ 2,832,550     $ 2,689,705  
                 
Liabilities                
Non-interest-bearing deposits   $ 574,072     $ 543,794  
Interest-bearing deposits     1,967,786       1,884,507  
Total deposits     2,541,858       2,428,301  
Short-term borrowings     964       17  
Secured borrowings     5,027       6,127  
Other liabilities     36,165       36,296  
Total liabilities     2,584,014       2,470,741  
                 
Shareholders’ equity     248,536       218,964  
                 
Total liabilities and shareholders’ equity   $ 2,832,550     $ 2,689,705  


FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
(dollars in thousands)

    Three Months Ended     Nine Months Ended  
    Sep. 30, 2026     Sep. 30, 2025     Sep. 30, 2026     Sep. 30, 2025  
Interest income                                
Loans and leases   $ 30,271     $ 26,660     $ 85,364     $ 76,583  
Securities and other     2,836       4,022       9,920       12,172  
                                 
Total interest income     33,107       30,682       95,284       88,755  
                                 
Interest expense                                
Deposits     (11,219 )     (12,158 )     (33,087 )     (35,083 )
Borrowings     (76 )     (95 )     (222 )     (281 )
                                 
Total interest expense     (11,295 )     (12,253 )     (33,309 )     (35,364 )
                                 
Net interest income     21,812       18,429       61,975       53,391  
                                 
Provision for credit losses on loans     (1,109 )     (200 )     (2,384 )     (955 )
Net benefit (provision) for credit losses on unfunded loan commitments     50       (110 )     (380 )     (45 )
Non-interest income     6,124       5,105       16,796       15,437  
Non-interest expense     (16,108 )     (14,632 )     (47,291 )     (43,896 )
                                 
Income before income taxes     10,769       8,592       28,716       23,932  
                                 
Provision for income taxes     (1,851 )     (1,246 )     (4,489 )     (3,674 )
Net income   $ 8,918     $ 7,346     $ 24,227     $ 20,258  

    Three Months Ended  
    Sep. 30, 2026     Jun. 30, 2026     Mar. 31, 2026     Dec. 31, 2025     Sep. 30, 2025  
Interest income                                        
Loans and leases   $ 30,271     $ 28,475     $ 26,618     $ 27,269     $ 26,660  
Securities and other     2,836       3,242       3,842       3,815       4,022  
                                         
Total interest income     33,107       31,717       30,460       31,084       30,682  
                                         
Interest expense                                        
Deposits     (11,219 )     (10,887 )     (10,981 )     (11,717 )     (12,158 )
Borrowings     (76 )     (73 )     (73 )     (87 )     (95 )
                                         
Total interest expense     (11,295 )     (10,960 )     (11,054 )     (11,804 )     (12,253 )
                                         
Net interest income     21,812       20,757       19,406       19,280       18,429  
                                         
Provision for credit losses on loans     (1,109 )     (400 )     (875 )     (100 )     (200 )
Net benefit (provision) for credit losses on unfunded loan commitments     50       (340 )     (90 )     (170 )     (110 )
Non-interest income     6,124       5,483       5,189       5,122       5,105  
Non-interest expense     (16,108 )     (15,992 )     (15,191 )     (14,921 )     (14,632 )
                                         
Income before income taxes     10,769       9,508       8,439       9,211       8,592  
                                         
Provision for income taxes     (1,851 )     (1,659 )     (979 )     (1,271 )     (1,246 )
Net income   $ 8,918     $ 7,849     $ 7,460     $ 7,940     $ 7,346  


FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)

At Period End:   Sep. 30, 2026     Jun. 30, 2026     Mar. 31, 2026     Dec. 31, 2025     Sep. 30, 2025  
Assets                                        
Cash and cash equivalents   $ 173,606     $ 207,660     $ 154,995     $ 148,060     $ 142,161  
Investment securities     513,270       509,032       512,308       523,946       529,263  
Restricted investments in bank stock     7,729       9,464       4,482       4,373       4,301  
Loans and leases     2,175,412       2,088,893       2,023,671       1,911,724       1,914,893  
Allowance for credit losses on loans     (22,391 )     (21,314 )     (20,942 )     (20,168 )     (20,218 )
Premises and equipment, net     48,122       45,929       52,738       48,950       45,422  
Life insurance cash surrender value     60,593       60,189       59,792       59,396       58,995  
Goodwill and core deposit intangible     20,076       20,126       20,181       20,242       20,303  
Other assets     52,002       51,245       52,040       51,535       41,630  
                                         
Total assets   $ 3,028,419     $ 2,971,224     $ 2,859,265     $ 2,748,058     $ 2,736,750  
                                         
Liabilities                                        
Non-interest-bearing deposits   $ 593,270     $ 582,920     $ 574,808     $ 552,581     $ 539,118  
Interest-bearing deposits     2,017,002       1,975,732       2,001,686       1,914,772       1,927,795  
Total deposits     2,610,272       2,558,652       2,576,494       2,467,353       2,466,913  
Short-term borrowings     132,708       119,802       10       20       20  
Secured borrowings     4,709       4,767       4,825       5,995       6,059  
Other liabilities     33,746       35,098       33,284       35,830       34,511  
Total liabilities     2,781,435       2,718,319       2,614,613       2,509,198       2,507,503  
                                         
Shareholders’ equity     246,984       252,905       244,652       238,860       229,247  
                                         
Total liabilities and shareholders’ equity   $ 3,028,419     $ 2,971,224     $ 2,859,265     $ 2,748,058     $ 2,736,750  

Average Quarterly Balances:   Sep. 30, 2026     Jun. 30, 2026     Mar. 31, 2026     Dec. 31, 2025     Sep. 30, 2025  
Assets                                        
Cash and cash equivalents   $ 62,996     $ 115,115     $ 175,362     $ 150,706     $ 122,808  
Investment securities     505,408       510,978       523,776       529,518       544,476  
Restricted investments in bank stock     5,255       4,633       4,427       4,345       4,277  
Loans and leases     2,129,763       2,040,314       1,945,837       1,927,366       1,892,439  
Allowance for credit losses on loans     (21,952 )     (21,394 )     (20,289 )     (20,478 )     (20,400 )
Premises and equipment, net     46,928       53,498       50,358       47,400       42,602  
Life insurance cash surrender value     60,451       60,051       59,656       59,255       58,875  
Goodwill and core deposit intangible     20,094       20,143       20,203       20,263       20,325  
Other assets     49,158       46,163       50,183       39,527       42,724  
                                         
Total assets   $ 2,858,101     $ 2,829,501     $ 2,809,513     $ 2,757,902     $ 2,708,126  
                                         
Liabilities                                        
Non-interest-bearing deposits   $ 583,802     $ 579,871     $ 558,264     $ 549,911     $ 544,511  
Interest-bearing deposits     1,977,585       1,960,662       1,964,972       1,930,040       1,901,166  
Total deposits     2,561,387       2,540,533       2,523,236       2,479,951       2,445,677  
Short-term borrowings     1,517       1,343       16       20       16  
Secured borrowings     4,738       4,796       5,557       6,028       6,093  
Other liabilities     37,050       34,509       36,931       37,754       36,415  
Total liabilities     2,604,692       2,581,181       2,565,740       2,523,753       2,488,201  
                                         
Shareholders’ equity     253,409       248,320       243,773       234,149       219,925  
                                         
Total liabilities and shareholders’ equity   $ 2,858,101     $ 2,829,501     $ 2,809,513     $ 2,757,902     $ 2,708,126  

FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Financial Data

    Three Months Ended  
    Sep. 30, 2026     Jun. 30, 2026     Mar. 31, 2026     Dec. 31, 2025     Sep. 30, 2025  
Selected returns and financial ratios                                        
Basic earnings per share   $ 1.54     $ 1.34     $ 1.29     $ 1.38     $ 1.27  
Diluted earnings per share   $ 1.53     $ 1.33     $ 1.28     $ 1.37     $ 1.27  
Dividends per share   $ 0.43     $ 0.43     $ 0.43     $ 0.43     $ 0.40  
Yield on interest-earning assets (FTE)*     4.95 %     4.86 %     4.77 %     4.83 %     4.83 %
Cost of interest-bearing liabilities     2.26 %     2.24 %     2.27 %     2.42 %     2.55 %
Cost of funds     1.75 %     1.73 %     1.77 %     1.88 %     1.98 %
Net interest spread (FTE)*     2.69 %     2.62 %     2.50 %     2.41 %     2.28 %
Net interest margin (FTE)*     3.30 %     3.22 %     3.08 %     3.04 %     2.95 %
Return on average assets     1.24 %     1.11 %     1.08 %     1.14 %     1.08 %
Pre-provision net revenue to average assets*     1.64 %     1.45 %     1.36 %     1.36 %     1.30 %
Return on average equity     13.96 %     12.68 %     12.41 %     13.45 %     13.25 %
Return on average tangible equity*     15.16 %     13.80 %     13.53 %     14.73 %     14.60 %
Efficiency ratio (FTE)*     56.11 %     59.19 %     58.53 %     58.35 %     60.17 %
Expense ratio     1.38 %     1.49 %     1.36 %     1.36 %     1.39 %

    Nine months ended  
    Sep. 30, 2026     Sep. 30, 2025  
Basic earnings per share   $ 4.18     $ 3.51  
Diluted earnings per share   $ 4.16     $ 3.50  
Dividends per share   $ 1.29     $ 1.20  
Yield on interest-earning assets (FTE)*     4.86 %     4.78 %
Cost of interest-bearing liabilities     2.26 %     2.52 %
Cost of funds     1.75 %     1.96 %
Net interest spread (FTE)*     2.60 %     2.26 %
Net interest margin (FTE)*     3.20 %     2.92 %
Return on average assets     1.14 %     1.02 %
Pre-provision net revenue to average assets*     1.49 %     1.25 %
Return on average equity     13.03 %     12.67 %
Return on average tangible equity*     14.18 %     14.00 %
Efficiency ratio (FTE)*     57.90 %     61.00 %
Expense ratio     1.41 %     1.39 %

Other financial data   At period end:  
(dollars in thousands except per share data)   Sep. 30, 2026     Jun. 30, 2026     Mar. 31, 2026     Dec. 31, 2025     Sep. 30, 2025  
Assets under management   $ 1,161,520     $ 1,219,415     $ 1,096,776     $ 1,058,881     $ 1,037,414  
Book value per share   $ 42.52     $ 43.54     $ 42.14     $ 41.39     $ 39.75  
Tangible book value per share*   $ 39.06     $ 40.08     $ 38.67     $ 37.88     $ 36.23  
Equity to assets     8.16 %     8.51 %     8.56 %     8.69 %     8.38 %
Tangible common equity ratio*     7.54 %     7.89 %     7.91 %     8.01 %     7.69 %
Allowance for credit losses on loans to:                                        
Total loans     1.03 %     1.02 %     1.04 %     1.06 %     1.06 %
Non-accrual loans   8.72x     12.23x     8.65x     10.66x     7.78x  
Non-accrual loans to total loans     0.12 %     0.08 %     0.12 %     0.10 %     0.14 %
Non-performing assets to total assets     0.08 %     0.06 %     0.09 %     0.08 %     0.11 %
Net charge-offs to average total loans     0.01 %     0.01 %     0.02 %     0.03 %     0.03 %
                                         
Capital Adequacy Ratios                                        
Total risk-based capital ratio     14.10 %     14.29 %     14.45 %     14.78 %     14.52 %
Common equity tier 1 risk-based capital ratio     12.97 %     13.17 %     13.33 %     13.65 %     13.39 %
Tier 1 risk-based capital ratio     12.97 %     13.17 %     13.33 %     13.65 %     13.39 %
Leverage ratio     9.64 %     9.51 %     9.38 %     9.34 %     9.27 %

* Non-GAAP Financial Measures – see reconciliations below

FIDELITY D & D BANCORP, INC.
Reconciliations of Non-GAAP Financial Measures to GAAP

Reconciliations of Non-GAAP Measures to GAAP   Three Months Ended  
(dollars in thousands)   Sep. 30, 2026     Jun. 30, 2026     Mar. 31, 2026     Dec. 31, 2025     Sep. 30, 2025  
FTE net interest income (non-GAAP)                                        
Interest income (GAAP)   $ 33,107     $ 31,717     $ 30,460     $ 31,084     $ 30,682  
Adjustment to FTE     774       777       784       800       785  
Interest income adjusted to FTE (non-GAAP)     33,881       32,494       31,244       31,884       31,467  
Interest expense (GAAP)     11,295       10,960       11,054       11,804       12,253  
Net interest income adjusted to FTE (non-GAAP)   $ 22,586     $ 21,534     $ 20,190     $ 20,080     $ 19,214  
                                         
Efficiency Ratio (non-GAAP)                                        
Non-interest expenses (GAAP)   $ 16,108     $ 15,992     $ 15,191     $ 14,921     $ 14,632  
                                         
Net interest income (GAAP)     21,812       20,757       19,406       19,280       18,429  
Plus: taxable equivalent adjustment     774       777       784       800       785  
Non-interest income (GAAP)     6,124       5,483       5,189       5,122       5,105  
Plus: Loss (gain) on sales of securities     –       –       577       371       (3 )
Net interest income (FTE) plus adjusted non-interest income (non-GAAP)   $ 28,710     $ 27,017     $ 25,956     $ 25,573     $ 24,316  
Efficiency ratio (non-GAAP) (1)     56.11 %     59.19 %     58.53 %     58.35 %     60.17 %
(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest income.
                                         
Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP)                                        
Total assets (GAAP)   $ 3,028,419     $ 2,971,224     $ 2,859,265     $ 2,748,058     $ 2,736,750  
Less: Intangible assets     (20,076 )     (20,126 )     (20,181 )     (20,242 )     (20,303 )
Tangible assets     3,008,343       2,951,098       2,839,084       2,727,816       2,716,447  
Total shareholders’ equity (GAAP)     246,984       252,905       244,652       238,860       229,247  
Less: Intangible assets     (20,076 )     (20,126 )     (20,181 )     (20,242 )     (20,303 )
Tangible common equity     226,908       232,779       224,471       218,618       208,944  
                                         
Common shares outstanding, end of period     5,808,508       5,808,518       5,805,180       5,771,110       5,767,288  
Tangible Common Book Value per Share   $ 39.06     $ 40.08     $ 38.67     $ 37.88     $ 36.23  
Tangible Common Equity Ratio     7.54 %     7.89 %     7.91 %     8.01 %     7.69 %
                                         
Pre-Provision Net Revenue to Average Assets                                        
Income before taxes (GAAP)   $ 10,769     $ 9,508     $ 8,439     $ 9,211     $ 8,592  
Plus: Provision for credit losses     1,059       740       965       270       310  
Total pre-provision net revenue (non-GAAP)     11,828       10,248       9,404       9,481       8,902  
Total (annualized) (non-GAAP)   $ 46,925     $ 41,103     $ 38,139     $ 37,615     $ 35,316  
                                         
Average assets   $ 2,858,101     $ 2,829,501     $ 2,809,513     $ 2,757,902     $ 2,708,126  
Pre-Provision Net Revenue to Average Assets (non-GAAP)     1.64 %     1.45 %     1.36 %     1.36 %     1.30 %

Reconciliations of Non-GAAP Measures to GAAP   Nine months ended  
(dollars in thousands)   Sep. 30, 2026     Sep. 30, 2025  
FTE net interest income (non-GAAP)                
Interest income (GAAP)   $ 95,284     $ 88,755  
Adjustment to FTE     2,335       2,316  
Interest income adjusted to FTE (non-GAAP)     97,619       91,071  
Interest expense (GAAP)     33,309       35,364  
Net interest income adjusted to FTE (non-GAAP)   $ 64,310       55,707  
                 
Efficiency Ratio (non-GAAP)                
Non-interest expenses (GAAP)   $ 47,291     $ 43,896  
                 
Net interest income (GAAP)     61,975       53,391  
Plus: taxable equivalent adjustment     2,335       2,316  
Non-interest income (GAAP)     16,796       15,437  
Plus: Loss on sales of securities     577       819  
Net interest income (FTE) plus non-interest income (non-GAAP)   $ 81,683     $ 71,963  
Efficiency ratio (non-GAAP) (1)     57.90 %     61.00 %
(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income.
                 
Pre-Provision Net Revenue to Average Assets                
Income before taxes (GAAP)   $ 28,716     $ 23,932  
Plus: Provision for credit losses     2,764       1,000  
Total pre-provision net revenue (non-GAAP)   $ 31,480     $ 24,932  
Total (annualized) (non-GAAP)   $ 42,088     $ 33,334  
                 
Average assets   $ 2,832,550     $ 2,666,723  
Pre-Provision Net Revenue to Average Assets (non-GAAP)     1.49 %     1.25 %

Contacts:

Daniel J. Santaniello Salvatore R. DeFrancesco, Jr.
President and Chief Executive Officer Treasurer and Chief Financial Officer
570-504-8035 570-504-8000


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