FDBC

DUNMORE, Pa., July 22, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three and six-month periods ended June 30, 2026. Unaudited Financial Information Net income for the quarter ended June 30, 2026 was $7.8 million, or $1.33 per diluted share, compared to $6.9 million, or $1.20 per diluted share, for the quarter ended June 30, 2025. The $0.9 million, or 13%, increase in net income resulted primarily from a $2.9 million increase in net interest income coupled with a $0.1 million increase in non-interest income. This was partially offset by a $1.3 million increase in non-interest expense and a $0.4 million increase in the provision for credit losses due to the growth of loans and unfunded commitments. For the six months ended June 30, 2026, net income was $15.3 million, or $2.63 diluted earnings per share, compared to $12.9 million, or $2.23 diluted earnings per share, for the six months ended June 30, 2025.  The $2.4 million, or 19%, increase in net income stemmed from the $5.2 million increase in net interest income and $0.4 million increase in non-interest income. This was partially offset by a $1.9 million increase in non-interest expense and a $1.0 million increase in the provision for credit losses on loans and unfunded commitments. “We delivered an outstanding second quarter, driven by strong revenue growth and favorable credit performance,” said Daniel J. Santaniello, President and Chief Executive Officer. “Our continued execution on key strategic initiatives propelled total assets to nearly $3.0 billion. These results reflect the strength of our franchise, the dedication of our bankers, and their unwavering commitment to the client experience. I am deeply grateful for their contributions and remain confident in our momentum and our ability to build on this success throughout the remainder of 2026.” Consolidated Second Quarter Operating Results Overview Net interest income was $20.8 million for the second quarter of 2026, representing a 16% increase over the $17.9 million earned for the second quarter of 2025. The $2.9 million increase in net interest income resulted from the increase of $1.9 million in interest income primarily due to a $113.1 million increase in the average balance of interest-earning assets and a 9 basis points increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yields. The loan portfolio had the most significant impact, producing a $3.2 million increase in FTE interest income from $208.2 million in higher quarterly average balances and an increase of 5 basis points in FTE loan yields. The increase in interest income was coupled with a $0.8 million decrease in interest expense on deposits due to a 28 basis points decrease in rates paid on interest-bearing deposits which more than offset the increase from $82.1 million in higher average balances compared to the second quarter of 2025. The FTE yield on interest-earning assets was 4.86% for the second quarter of 2026, an increase of 9 basis points from 4.77% for the second quarter of 2025. The overall cost of interest-bearing liabilities was 2.24% for the second quarter of 2026, a decrease of 28 basis points from the 2.52% for the second quarter of 2025. The cost of funds decreased 22 basis points from 1.95% to 1.73% for the second quarters of 2025 and 2026, respectively. The Company’s FTE net interest spread was 2.62% for the second quarter of 2026, an increase of 37 basis points from 2.25% recorded for the second quarter of 2025. FTE net interest margin increased to 3.22% for the three months ended June 30, 2026 from 2.92% for the same period of 2025. For the three months ended June 30, 2026, the provision for credit losses on loans was $400 thousand and the provision for credit losses on unfunded commitments was $340 thousand, compared to a $300 thousand provision for credit losses on loans and a $20 thousand provision for credit losses on unfunded commitments for the three months ended June 30, 2025. For the three months ended June 30, 2026, the increase in the provision for credit losses on loans compared to the prior year period was due to more funded loan growth. For the three months ended June 30, 2026, the increase in the provision for credit losses on unfunded commitments compared to the prior period was primarily due to higher commercial construction commitments and loan originations within the portfolio. Total non-interest income increased $0.1 million, or 2%, to $5.5 million for the second quarter of 2026 compared to $5.4 million for the second quarter of 2025. The increase in non-interest income was primarily attributed to an increase of $0.4 million in wealth management revenue. This increase was partially offset by a $0.2 million in BOLI death benefit recognized during the second quarter of 2025. Non-interest expenses increased $1.3 million, or 9%, for the second quarter of 2026 to $16.0 million from $14.7 million for the same quarter of 2025. The increase in non-interest expenses was attributed to added salaries and benefits expense of $0.8 million primarily due to an increase in the number of bankers quarter-over-quarter. Additionally, the Company experienced an increase of $0.2 million in professional services expenses and $0.1 million in premises and equipment expenses primarily due to costs for software and subscriptions. These increases were partially offset by a decrease of $0.2 million in advertising costs. The provision for income taxes increased $0.3 million during the three months ended June 30, 2026 compared to the same period in 2025 primarily due to a $1.3 million increase in income before taxes. Consolidated Year-To-Date Operating Results Overview Net interest income was $40.2 million for the six months ended June 30, 2026 compared to $35.0 million for the six months ended June 30, 2025. The $5.2 million increase in net interest income resulted from the increase of $4.1 million in interest income primarily due to a $136.8 million increase in the average balance of interest-earning assets and a 7 basis points increase in FTE yield. The largest contributor to interest income growth was the loan portfolio which produced $5.2 million in interest income from an increase of 5 basis points in FTE loan yields on $170.7 million in higher average balances. The increase in interest income was partially offset by a decrease of $1.0 million in interest earned on the investment portfolio due to decreases of 17 basis points in yield and $49.9 million in average balances. Additionally, the Company experienced a decrease of $1.1 million in interest expense on deposits due to a 25 basis points decrease in rates paid on interest-bearing deposits which more than offset the increase from $109.9 million in higher average balances during the first half of 2026. The overall cost of interest-bearing liabilities was 2.25% for the six months ended June 30, 2026 compared to 2.51% for the six months ended June 30, 2025. The cost of funds decreased 19 basis points to 1.75% for the six months ended June 30, 2026 from 1.94% for the same period of 2025. The FTE yield on earning assets was 4.82% for the six months ended June 30, 2026, an increase of 7 basis points from the 4.75% year-to-date June 30, 2025. The Company’s FTE net interest spread was 2.57% for the six months ended June 30, 2026, an increase of 33 basis points from the 2.24% recorded for the same period of 2025. FTE net interest margin increased by 24 basis points to 3.15% for the six months ended June 30, 2026 from 2.91% for the same 2025 period primarily due to the decrease on rates paid on interest-bearing deposits coupled with a slight increase on yields earned from loans and leases. For the six months ended June 30, 2026, the provision for credit losses on loans was $1.3 million and the provision for credit losses on unfunded commitments was $430 thousand compared to a $755 thousand provision for credit losses on loans and a $65 thousand benefit for credit losses on unfunded commitments for the six months ended June 30, 2025. For the six months ended June 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 six months ended June 30, 2026, the increase in the provision for unfunded commitments compared to the prior period was due to growth in originations within the portfolio, specifically in commercial construction commitments. Total non-interest income for the six months ended June 30, 2026 was $10.7 million, an increase of $0.4 million, or 3%, from $10.3 million for the six months ended June 30, 2025. The increase was primarily due to $0.7 million growth in wealth management revenue. Additionally, the Company saw an increase of $0.2 million in commercial loan late fees due to two substandard loans that were paid off and $0.4 million increase in fees from commercial loans with interest rate hedges during the first half of 2026. Partially offsetting the increase in non-interest income was a decrease of $0.7 million in gains from sold loans primarily due to a $0.5 million gain on the sale of a commercial loan during the first half of 2025. Non-interest expenses increased to $31.2 million for the six months ended June 30, 2026, an increase of $1.9 million, or 7%, from $29.3 million for the six months ended June 30, 2025. Salaries and benefits expense increased $1.2 million due to an increase in bankers in the first half of 2026, compared to the same period in 2025. Additionally, the Company experienced an increase of $0.3 million in professional services expense. Premises and equipment expense increased $0.2 million primarily due to new technology and higher software costs. The provision for income taxes increased $0.2 million during the six months ended June 30, 2026 compared to the same period in 2025 primarily due to a $2.6 million increase in income before taxes. Partially offsetting the increase in the provision for income taxes was a $0.5 million discount recognized in the provision from utilizing/applying 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 June 30, 2026, an increase of $223.1 million from December 31, 2025. The increase resulted from $174.9 million of net growth in the loans and leases portfolio as of June 30, 2026 compared to December 31, 2025. Cash and cash equivalents increased $59.6 million over the same period. Asset growth was offset by a decrease of $14.9 million in the investment portfolio primarily due to $10.5 million in paydowns and the sale of $5.8 million in available-for-sale securities. During the same time period, total liabilities increased $209.1 million, or 8%. Deposit growth of $91.3 million and short-term borrowings of $119.8 million were utilized to fund loan growth and increase interest-bearing cash balances. The Company experienced an increase of $30.3 million in non-interest-bearing checking accounts. For interest-bearing deposit accounts, the Company experienced increases of $77.7 million in money market deposits and $7.0 million in savings and clubs; these increases were partially offset by decreases of $20.9 million in time deposits and $2.8 million in interest-bearing checking accounts. As of June 30, 2026, the ratio of insured and collateralized deposits to total deposits was approximately 72%. Shareholders’ equity increased $14.0 million, or 6%, to $252.9 million at June 30, 2026 from $238.9 million at December 31, 2025. The increase was caused by $10.3 million higher retained earnings from net income of $15.3 million plus a $2.9 million, after tax, improvement in accumulated other comprehensive income, partially offset by $5.0 million in cash dividends paid to shareholders. An additional $0.9 million was recorded from the issuance of common stock under the Company’s stock plans and restricted stock activity. At June 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 9.51% of total average assets as of June 30, 2026. Total risk-based capital was 14.29% of risk-weighted assets and Tier 1 risk-based capital was 13.17% of risk-weighted assets as of June 30, 2026. Tangible book value per share was $40.08 at June 30, 2026 compared to $37.88 at December 31, 2025.  Tangible common equity decreased to 7.89% of total assets at June 30, 2026 compared to 8.01% at December 31, 2025 due to an 8% increase in total tangible assets compared to a 7% increase in tangible common equity. Asset Quality Total non-performing assets were $1.8 million, or 0.06% of total assets, at June 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 0.22% at June 30, 2026 compared to 0.26% at December 31, 2025. Net charge-offs to average total loans were 0.01% at June 30, 2026 compared to 0.03% at December 31, 2025. About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“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 should be 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: 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. * Non-GAAP Financial Measures - see reconciliations below Contacts:

DUNMORE, Pa., April 22, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three-month period ended March 31, 2026. Unaudited Financial Information Net income for the quarter ended March 31, 2026 was $7.5 million, or $1.28 per diluted share, compared to $6.0 million, or $1.03 per diluted share, for the quarter ended March 31, 2025. The $1.5 million, or 25%, increase in net income resulted primarily from a $2.4 million increase in net interest income coupled with a $0.2 million increase in non-interest income. This was partially offset by a $0.6 million increase in non-interest expense and a $0.6 million increase in the provision for credit losses on the growth of loans and unfunded commitments. "We are pleased to report strong first quarter results for 2026,” said Daniel J. Santaniello, President and Chief Executive Officer. “Fidelity Bank reached quarter-end assets of $2.9 billion, delivering a 25% year-over-year increase in net income to $7.5 million and a 24% increase in diluted earnings per share. These results reflect solid asset growth, consistent operational execution, and continued strength across our core businesses. I am grateful to our bankers whose expertise, collaboration, and commitment continue to drive our performance and support our shared success as we carry this momentum forward.” Consolidated First Quarter Operating Results Overview Net interest income was $19.4 million for the first quarter of 2026, representing a 14% increase over the $17.0 million earned for the first quarter of 2025. The $2.4 million increase in net interest income resulted from the increase of $2.2 million in interest income primarily due to a $160.6 million increase in the average balance of interest-earning assets and a 4 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yields. The loan portfolio had the most significant impact, producing a $2.0 million increase in FTE interest income from $132.8 million in higher quarterly average balances and an increase of 5 basis points in FTE loan yields. Additionally, the Company experienced an increase of $0.6 million in interest earned from interest-bearing deposits with other financial institutions from $77.3 million in higher average balances. The increase in interest income was coupled with a $0.2 million decrease in interest expense due to a 22 basis points decrease in rates paid on interest-bearing deposits which more than offset the increase from $138.0 million in higher average balances compared to the first quarter of 2025. The FTE yield on interest-earning assets was 4.77% for the first quarter of 2026, an increase of 4 basis points from 4.73% for the first quarter of 2025. The overall cost of interest-bearing liabilities was 2.27% for the first quarter of 2026, a decrease of 22 basis points from the 2.49% for the first quarter of 2025. The cost of funds decreased 16 basis points from 1.93% to 1.77% for the first quarters of 2025 and 2026, respectively. The Company’s FTE net interest spread was 2.50% for the first quarter of 2026, an increase of 26 basis points from 2.24% recorded for the first quarter of 2025. FTE net interest margin increased to 3.08% for the three months ended March 31, 2026 from 2.89% for the same period of 2025. For the three months ended March 31, 2026, the provision for credit losses on loans was $875 thousand and the provision for credit losses on unfunded commitments was $90 thousand, compared to a $455 thousand provision for credit losses on loans and a $85 thousand net benefit in the provision for credit losses on unfunded loan commitments for the three months ended March 31, 2025. For the three months ended March 31, 2026, the increase in the provision for credit losses on loans compared to the prior year period was due to significantly higher loan growth. For the three months ended March 31, 2026, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to the originated growth in the portfolio, specifically in commercial construction commitments. Total non-interest income increased $0.2 million, or 4%, to $5.2 million for the first quarter of 2026 compared to $5.0 million for the first quarter of 2025. The increase in non-interest income was primarily attributed to increases of $0.4 million in fees from commercial loans with interest rate hedges and $0.3 million in wealth management revenue with the largest contributor being personal trust fees. These increases were partially offset by a $0.6 million lower gain on sold loans due to a $0.5 million gain on the sale of a commercial loan during the first quarter of 2025. Additionally, the Company saw an increase of $0.2 million in commercial loan late fees due to two substandard loans that were paid off in the first quarter of 2026. Non-interest expenses increased $0.6 million, or 4%, for the first quarter of 2026 to $15.2 million from $14.6 million for the same quarter of 2025. The increase in non-interest expenses was attributed to the increases in salaries and benefits expense of $0.4 million primarily due to an increase in the number of bankers and incentive-based compensation throughout the quarter. The provision for income taxes decreased $0.1 million during the three months ended March 31, 2026 compared to the same period in 2025 primarily due to a $0.5 million discount recognized in the provision from utilizing/applying purchased renewable energy tax credits in the first quarter of 2026. Consolidated Balance Sheet & Asset Quality Overview The Company’s total assets had a balance of $2.9 billion as of March 31, 2026, an increase of $111.2 million from December 31, 2025. The increase resulted from $111.9 million of growth in the loans and leases portfolio as of March 31, 2026 compared to December 31, 2025. Cash and cash equivalents increased $6.9 million and premises and equipment increased $3.8 million over the same period. Asset growth was offset by a decrease of $11.6 million in the investment portfolio primarily due to the sale of $5.8 million in available-for-sale securities and $5.1 million in paydowns. During the same time period, total liabilities increased $105.4 million, or 4%. Deposit growth of $109.1 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $63.5 million in money market deposits, $19.6 million in interest-bearing checking accounts, and $10.6 million in savings and clubs; these increases were partially offset by a $6.7 million decrease in time deposits. Additionally, the Company experienced an increase of $22.2 million in non-interest-bearing checking accounts. As of March 31, 2026, the ratio of insured and collateralized deposits to total deposits was approximately 73%. Shareholders’ equity increased $5.8 million, or 2%, to $244.7 million at March 31, 2026 from $238.9 million at December 31, 2025. The increase was caused by $4.9 million higher retained earnings from net income of $7.5 million plus a $0.4 million, after tax, improvement in accumulated other comprehensive income, partially offset by $2.5 million in cash dividends paid to shareholders. An additional $0.5 million was recorded from the issuance of common stock under the Company’s stock plans and restricted stock activity. At March 31, 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 9.38% of total average assets as of March 31, 2026. Total risk-based capital was 14.45% of risk-weighted assets and Tier 1 risk-based capital was 13.33% of risk-weighted assets as of March 31, 2026. Tangible book value per share was $38.67 at March 31, 2026 compared to $37.88 at December 31, 2025. Tangible common equity decreased to 7.91% of total assets at March 31, 2026 compared to 8.01% at December 31, 2025 due to a 4% increase in total tangible assets compared to a 3% increase in tangible common equity. Asset Quality Total non-performing assets were $2.4 million, or 0.09% of total assets, at March 31, 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 0.28% at March 31, 2026 compared to 0.26% at December 31, 2025. Net charge-offs to average total loans were 0.02% at March 31, 2026 compared to 0.03% at December 31, 2025. About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“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 should be 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. * Non-GAAP Financial Measures - see reconciliations below

DUNMORE, Pa., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank ("the Company"), announced its unaudited, consolidated financial results for the three and twelve month periods ended December 31, 2025. Unaudited Financial Information Net income recorded for the year ended December 31, 2025 was $28.2 million, or $4.86 diluted earnings per share, compared to $20.8 million, or $3.60 diluted earnings per share, for the year ended December 31, 2024. The $7.4 million, or 36% increase in net income resulted primarily from the $10.8 million increase in net interest income and $1.6 million increase in non-interest income partially offset by a $3.3 million increase in non-interest expenses for 2025 compared to 2024. Net income for the quarter ended December 31, 2025 was $7.9 million, or $1.37 diluted earnings per share, compared to $5.8 million, or $1.01 diluted earnings per share, for the quarter ended December 31, 2024. The $2.1 million increase in net income stemmed from the $2.9 million increase in net interest income and $0.3 million increase in non-interest income. This was partially offset by a $0.5 million increase in non-interest expense and a $0.5 million increase in the provision for income taxes. “We are pleased to report record fourth quarter results, representing the strongest financial quarter in our history,” said Daniel J. Santaniello, President and Chief Executive Officer. “The Bank hit year end assets of $2.7 billion, delivering a 36% year over year increase in net income of $28.2 million and a 35% increase in diluted earnings per share. The full year results reflect the execution of our strategic initiatives, disciplined balance sheet management, and continued improvement in our net interest margin. I am grateful to our bankers for their dedication and focus on serving our clients and our communities well, positioning us for a strong 2026.” Consolidated Year-To-Date Operating Results Overview Net interest income was $72.7 million for the year ended December 31, 2025 compared to $61.9 million for the year ended December 31, 2024. The $10.8 million increase in net interest income resulted from the increase of $12.8 million in interest income primarily due to a $181.6 million increase in the average balance of interest-earning assets and a 17 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yield. On the asset side, the loan portfolio interest income growth resulted from producing $10.6 million more in interest income from an increase of 21 basis points in FTE loan yields on $125.3 million higher average balances. Additionally, the Company experienced an increase of $3.1 million in interest earned from interest-bearing deposits with other financial institutions from $74.6 million higher average balances. The increase in interest income was partially offset by a decrease of $0.8 million in interest earned on the investment portfolio due to decreases of 7 basis points in yield and $18.5 million in average balances. On the funding side, total interest expense increased by $2.0 million primarily due to an increase in interest expense paid on deposits of $3.6 million from the $187.0 million larger average balance of interest-bearing deposits, partially offset by a decrease within interest expense on borrowings of $1.6 million for the twelve months ended December 31, 2025 compared to the same period in 2024. The overall cost of interest-bearing liabilities was 2.49% for the twelve months ended December 31, 2025 compared to 2.60% for the twelve months ended December 31, 2024. The cost of funds decreased 5 basis points to 1.94% for the twelve months ended December 31, 2025 from 1.99% for the same period of 2024. The FTE yield on earning assets was 4.79% for the year ended December 31, 2025, an increase of 17 basis points from the 4.62% for the year ended December 31, 2024. The Company’s FTE net interest spread (non-GAAP measurement) was 2.30% for the twelve months ended December 31, 2025, an increase of 28 basis points from the 2.02% recorded for the same period of 2024. FTE net interest margin (non-GAAP measurement) increased by 23 basis points to 2.95% for the twelve months ended December 31, 2025 from 2.72% for the same 2024 period due to the increase of 17 basis points in FTE yields earned on interest-earning assets along with a decline of 11 basis points in the rates paid on interest-bearing liabilities. For the year ended December 31, 2025, the provision for credit losses on loans was $1.1 million and the provision for credit losses on unfunded commitments was $0.2 million, compared to a $1.3 million provision for credit losses on loans and a $0.1 million provision for credit losses on unfunded commitments for the year ended December 31, 2024. For the year ended December 31, 2025, the decrease in the provision for credit losses on loans compared to the prior year period was due to improved asset quality. For the year ended December 31, 2025, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to originated growth in the portfolio, specifically in commercial construction commitments. Total non-interest income for the year ended December 31, 2025 was $20.6 million, an increase of $1.6 million, or 8%, from $19.0 million for the year ended December 31, 2024. The increase was primarily due to increases of $0.6 million in wealth management revenue, $0.3 million in interchange fees, $0.3 million from service charges on commercial loans, and $0.2 million in service charges on deposits. The Company also had $0.2 million more non-interest income resulting from a BOLI death benefit gain. During the twelve months ended December 31, 2025, the Company also recognized gains of $0.5 million on sale of commercial loans and $0.3 million from the sale of a property. Partially offsetting these increases was $1.2 million in losses recognized on the sale of available-for-sale securities. Non-interest expenses increased to $58.8 million for the year ended December 31, 2025, an increase of $3.3 million, or 6%, from $55.5 million for the year ended December 31, 2024. Salaries and benefits expense increased $2.0 million due to an increase in employees and incentive-based compensation throughout the year ended December 31, 2025. Additionally, furniture, fixtures, and equipment expenses increased $0.8 million over the same period primarily due to an increase in software costs. There were additional increases throughout the period in advertising and marketing expenses of $0.4 million and occupancy expenses of $0.2 million. These increases were partially offset by reductions in professional fees of $0.3 million. The provision for income taxes increased $1.8 million during 2025 compared to 2024 primarily due to a $9.2 million increase in income before taxes. Consolidated Fourth Quarter Operating Results Overview Net interest income was $19.3 million for the fourth quarter of 2025, an 18% increase over the $16.4 million earned for the fourth quarter of 2024. The $2.9 million increase in net interest income resulted from an increase of $3.0 million in interest income primarily due to a $167.2 million increase in the average balance of interest-earning assets and a 15 basis points increase in the FTE yield. The loan portfolio had the biggest impact, producing a $2.7 million increase in interest income from $130.3 million in higher quarterly average balances and an increase of 17 basis points in the FTE loan yield. Additionally, the Company experienced an increase of $0.7 million in interest earned from interest-bearing deposits with other financial institutions from $76.1 million in higher average balances. The higher interest income was offset by a $0.4 million decrease in interest from investment securities due to a $39.7 million quarter-over-quarter decrease in average balances and a decrease of 12 basis points in the FTE investment yield. The higher interest income was partially offset by $0.1 million more in interest expense primarily due to an increase in interest expense paid on deposits of $0.2 million from $160.8 million larger average balance of interest-bearing deposits. The FTE yield on interest-earning assets was 4.83% for the fourth quarter of 2025, an increase of 15 basis points compared to 4.68% for the fourth quarter of 2024. The overall cost of interest-bearing liabilities was 2.42% for the fourth quarter of 2025, a decrease of 18 basis points from the 2.60% paid in the same period of 2024. The cost of funds decreased 12 basis points to 1.88% for the fourth quarter of 2025 from 2.00% for the fourth quarter of 2024. The Company’s FTE net interest spread was 2.41% for the fourth quarter of 2025, up 33 basis points from the 2.08% recorded for the fourth quarter of 2024. FTE net interest margin increased by 26 basis points to 3.04% for the three months ended December 31, 2025 from 2.78% for the same 2024 period due to a decline of 18 basis points in the rates paid on interest-bearing liabilities combined with an improvement of 15 basis points in yields earned on interest-earning assets. For the three months ended December 31, 2025, the provision for credit losses on loans was $100 thousand and the provision for unfunded commitments was $170 thousand, compared to a $250 thousand provision for credit losses on loans and $85 thousand net benefit in the provision for credit losses on unfunded loan commitments for the three months ended December 31, 2024. For the three months ended December 31, 2025, the decrease in the provision for credit losses on loans was due to lower net charge-offs coupled with improved asset quality compared to the same period of 2024. For the three months ended December 31, 2025, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to originated growth in the portfolio, specifically in commercial construction commitments. Total non-interest income increased $0.3 million, or 6%, to $5.1 million in the fourth quarter of 2025 compared to $4.8 million for the same period of 2024. The increase in non-interest income was primarily due to increases of $0.2 million in wealth management revenue and $0.2 million in commercial loan fee income. The increases were partially offset by $0.4 million in losses recognized on sale of securities. Non-interest expenses increased $0.5 million, or 3%, for the fourth quarter of 2025 to $14.9 million from $14.4 million for the same quarter of 2024. The increase in non-interest expenses was primarily due to the $0.3 million increase in furniture, fixtures, and equipment expenses coupled with an increase of $0.1 million in salaries and benefits expense from higher salaries related to new hires and severance accrual and banker incentives. The provision for income taxes increased $0.5 million during the fourth quarter of 2025 compared to the same period in 2024 primarily due to a $2.5 million increase in income before taxes. Offsetting this in the fourth quarter of 2025, the Company completed a renewable energy tax credit purchase which reduced the provision for income taxes by $0.3 million. Consolidated Balance Sheet & Asset Quality Overview The Company's total assets had a balance of $2.7 billion as of December 31, 2025, an increase of $163.4 million from December 31, 2024. The increase resulted from $110.4 million in growth in the loans and leases portfolio during the twelve months ended December 31, 2025. Cash and cash equivalents increased $64.7 million over the same period. Asset growth was offset by a decrease of $33.3 million in the investment portfolio primarily due to the sale of $45.7 million in available-for-sale securities and $23.0 million in paydowns partially offset by $25.1 million in purchases. During the same time period, total liabilities increased $128.6 million, or 5%. Deposit growth of $126.5 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $92.8 million in money market deposits, $14.1 million in time deposits, and $2.1 million in interest-bearing checking accounts; slightly offset by a decrease of $1.1 million in savings and clubs. The deposit growth is driven by new primary households, an increase in existing account balances and a retention strategy with targeted marketing in support of building client relationships. Additionally, the Company experienced an increase of $18.6 million in non-interest-bearing checking accounts. As of December 31, 2025, the ratio of insured and collateralized deposits to total deposits was approximately 73%. Shareholders’ equity increased $34.9 million, or 17%, to $238.9 million at December 31, 2025 from $204.0 million at December 31, 2024. The increase was caused by $18.7 million higher retained earnings from net income of $28.2 million plus a $14.9 million, after tax, improvement in accumulated other comprehensive loss from lower net unrealized losses recorded on available-for-sale securities, partially offset by $9.5 million in cash dividends paid to shareholders. An additional $1.3 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At December 31, 2025, 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 9.34% of total average assets as of December 31, 2025. Total risk-based capital was 14.78% of risk-weighted assets and Tier 1 risk-based capital was 13.65% of risk-weighted assets as of December 31, 2025. Tangible book value per share was $37.88 at December 31, 2025 compared to $31.98 at December 31, 2024. Tangible common equity was 8.01% of total assets at December 31, 2025 compared to 7.16% at December 31, 2024. Asset Quality Total non-performing assets were $2.2 million, or 0.08% of total assets at December 31, 2025, compared to $7.8 million, or 0.30% of total assets at December 31, 2024. Past due and non-accrual loans to total loans were 0.26% at December 31, 2025 compared to 0.71% at December 31, 2024. Net charge-offs to average total loans were 0.03% at December 31, 2025 compared to 0.03% at December 31, 2024. About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“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 should be 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. 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 2025 and 2024. 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 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 or terrorism; 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.

DUNMORE, Pa., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three- and nine-month periods ended September 30, 2025. Unaudited Financial Information Net income for the quarter ended September 30, 2025 was $7.3 million, or $1.27 per diluted share, compared to $5.0 million, or $0.86 per diluted share, for the quarter ended September 30, 2024. The $2.3 million, or 48%, increase in net income resulted primarily from a $3.0 million increase in net interest income coupled with a $0.5 million decrease in provision for credit losses on loans and unfunded commitments. This was partially offset by a $0.8 million increase in non-interest expense and a $0.4 million increase in the provision for income taxes. For the nine months ended September 30, 2025, net income was $20.3 million, or $3.50 per diluted share, compared to $15.0 million, or $2.59 per diluted share, for the nine months ended September 30, 2024. The $5.3 million, or 35%, increase in net income stemmed from the $7.9 million increase in net interest income and $1.3 million increase in non-interest income. This was partially offset by a $2.8 million increase in non-interest expense and a $1.4 million increase in the provision for income taxes. “We are pleased to report very strong results for the third quarter, paced by the effectiveness of our long-term targeted relationship strategy that has generated a 48% year over year net income growth to $7.3 million, driven by a $3.0 million increase in net interest income, resulting in $1.27 per diluted share,” stated Daniel J. Santaniello, President and Chief Executive Officer. “Year-to-date net income reached $20.3 million, supported by disciplined loan portfolio expansion, strong deposit growth, and enhanced yields across interest-earning assets. These results reflect the strength of our business model and the momentum across the organization to achieve our targets for 2025." Consolidated Third Quarter Operating Results Overview Net interest income was $18.4 million for the third quarter of 2025, representing a 19% increase over the $15.4 million earned for the third quarter of 2024. The $3.0 million increase in net interest income resulted from the increase of $3.4 million in interest income primarily due to a $196.9 million increase in the average balance of interest-earning assets and a 15 basis points increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yield. The loan portfolio had the most significant impact, producing a $2.6 million increase in FTE interest income from $129.2 million in higher quarterly average balances and an increase of 16 basis points in FTE loan yield. Additionally, the Company experienced an increase of $0.8 million in interest earned from interest-bearing deposits with other financial institutions from $78.8 million in higher average balances. The higher interest income was offset by a $0.4 million increase in interest expense due to a $161.4 million quarter-over-quarter increase in average interest-bearing liability balances. The increase was due to growth of $199.0 million in average interest-bearing deposit balances. However, this deposit growth was partially offset by a $37.2 million decrease in average short-term borrowings. The FTE yield on interest-earning assets was 4.83% for the third quarter of 2025, an increase of 15 basis points from 4.68% for the third quarter of 2024. The overall cost of interest-bearing liabilities was 2.55% for the third quarter of 2025, a decrease of 15 basis points from the 2.70% for the third quarter of 2024. The cost of funds decreased 10 basis points from 2.08% to 1.98% for the third quarters of 2024 and 2025, respectively. The Company’s FTE net interest spread was 2.28% for the third quarter of 2025, an increase of 30 basis points from 1.98% recorded for the third quarter of 2024. FTE net interest margin increased to 2.95% for the three months ended September 30, 2025 from 2.70% for the same period of 2024 due to the growth in higher yielding taxable commercial loans. For the three months ended September 30, 2025, the provision for credit losses on loans was $200 thousand and the provision for unfunded commitments was $110 thousand compared to a $675 thousand provision for credit losses on loans and a $135 thousand provision for credit losses on unfunded loan commitments for the three months ended September 30, 2024. For the three months ended September 30, 2025, the decrease in the provision for credit losses on loans and the provision for unfunded commitments compared to the prior year period was due to improved asset quality, specifically non-performing assets and non-accrual loans, compared to the same period in 2024. Total non-interest income increased $0.1 million, or 3%, to $5.1 million for the third quarter of 2025 compared to $5.0 million for the third quarter of 2024. The increase in non-interest income was primarily attributed to increases of $0.1 million in trust fees and $0.1 million in interchange fees. The increases were partially offset by a $0.1 million lower gains on sold loans and $0.1 million less in loan service charges. Non-interest expenses increased $0.8 million, or 6%, for the third quarter of 2025 to $14.6 million from $13.8 million for the same quarter of 2024. The increase in non-interest expenses was primarily due to the increases in salaries and benefits expense of $0.6 million primarily due to higher banker incentives and premises and equipment expense of $0.2 million. These increases were partially offset by a $0.1 million decrease in advertising expense for the three months ended September 30, 2025 compared to the same period of 2024. The provision for income taxes increased $0.4 million during the three months ended September 30, 2025 compared to the same period in 2024 primarily due to a $2.8 million increase in income before taxes. Consolidated Year-To-Date Operating Results Overview Net interest income was $53.4 million for the nine months ended September 30, 2025 compared to $45.5 million for the nine months ended September 30, 2024. The $7.9 million increase in net interest income resulted from the increase of $9.8 million in interest income primarily due to a $186.4 million increase in the average balance of interest-earning assets and a 19 basis point increase in FTE yield. On the asset side, the loan portfolio interest income growth resulted from producing $8.0 million more in interest income from an increase of 22 basis points in FTE loan yields on $123.5 million higher average balances. Additionally, the Company experienced an increase of $2.3 million in interest earned from interest-bearing deposits with other financial institutions from $74.0 million higher average balances. The increase in interest income was partially offset by a decrease of $0.5 million in interest earned on the investment portfolio due to decreases of 5 basis points in yield and $11.3 million in average balances. On the funding side, total interest expense increased by $1.9 million primarily due to an increase in interest expense paid on deposits of $3.4 million from $195.7 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $1.4 million for the nine months ended September 30, 2025 compared to the same period in 2024. The overall cost of interest-bearing liabilities was 2.52% for the nine months ended September 30, 2025 compared to 2.60% for the nine months ended September 30, 2024. The cost of funds decreased 3 basis points to 1.96% for the nine months ended September 30, 2025 from 1.99% for the same period of 2024. The FTE yield on earning assets was 4.78% for the nine months ended September 30, 2025, an increase of 19 basis points from the 4.59% year-to-date September 30, 2024. The Company’s FTE net interest spread was 2.26% for the nine months ended September 30, 2025, an increase of 27 basis points from the 1.99% recorded for the same period of 2024. FTE net interest margin increased by 22 basis points to 2.92% for the nine months ended September 30, 2025 from 2.70% for the same 2024 period primarily due to the increase in yields earned on loans and leases along with a decline in the rates paid on interest-bearing deposits. For the nine months ended September 30, 2025, the provision for credit losses on loans was $955 thousand and the provision for credit losses on unfunded loan commitments was $45 thousand compared to a $1.1 million provision for credit losses on loans and a $225 thousand provision for credit losses on unfunded commitments for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the decrease in the provision for credit losses on loans and the provision for unfunded commitments compared to the prior year period was due to improved asset quality, specifically non-performing assets and non-accrual loans, compared to the same period in 2024. Total non-interest income for the nine months ended September 30, 2025 was $15.4 million, an increase of $1.2 million, or 9%, from $14.2 million for the nine months ended September 30, 2024. The increase was primarily due to increases of $0.4 million in trust fees and $0.3 million in interchange fees. The Company also had $0.2 million more non-interest income resulting from a BOLI death benefit gain. During the nine months ended September 30, 2025, gains of $0.5 million on the sale of a commercial loan and $0.3 million from the sale of a property were offset by $0.8 million in losses recognized on the sale of securities. Non-interest expenses increased to $43.9 million for the nine months ended September 30, 2025, an increase of $2.8 million, or 7%, from $41.1 million for the nine months ended September 30, 2024. Salaries and benefits expense increased $1.9 million due to an increase in bankers, group insurance costs, and banker incentives during the nine months ended September 30, 2025, compared to the same period in 2024. Additionally, the Company saw an increase of $0.4 million in advertising and marketing expenses primarily due to a $0.3 million increase in Neighborhood Assistance Program donations from which the Company recognized $0.2 million in additional tax credits causing a corresponding decrease in PA shares tax expense. There was also an increase of $0.7 million in premises and equipment expense primarily due to higher costs for software licenses, subscriptions, and maintenance. The increases were partially offset by $0.3 million less in professional services expense. The provision for income taxes increased $1.4 million during the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to a $6.7 million increase in income before taxes and $0.1 million less in tax credits. Consolidated Balance Sheet & Asset Quality Overview The Company’s total assets had a balance of $2.7 billion as of September 30, 2025, an increase of $152.1 million from December 31, 2024. The increase resulted from $113.5 million growth in the loans and leases portfolio as of September 30, 2025 compared to December 31, 2024. Cash and cash equivalents increased $58.8 million over the same period. Asset growth was offset by a decrease of $28.0 million in the investment portfolio primarily due to the sale of $40.0 million in available-for-sale securities and $17.6 million in paydowns partially offset by $20.2 million in purchases of securities. During the same time period, total liabilities increased $126.9 million, or 5%. Deposit growth of $126.1 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $95.3 million in money market deposits, $16.5 million in time deposits, $8.6 million in interest-bearing checking accounts, and $0.5 million in savings and clubs. The deposit growth is driven by new primary households, an increase in existing account balances and a retention strategy with targeted marketing in support of building client relationships. Additionally, the Company experienced an increase of $5.2 million in non-interest-bearing checking accounts. As of September 30, 2025, the ratio of insured and collateralized deposits to total deposits was approximately 74%. Shareholders’ equity increased $25.3 million, or 12%, to $229.3 million at September 30, 2025 from $204.0 million at December 31, 2024. The increase was caused by $13.3 million higher retained earnings from net income of $20.3 million plus a $11.0 million, after tax, improvement in accumulated other comprehensive income from lower net unrealized losses recorded on available-for-sale securities, partially offset by $7.0 million in cash dividends paid to shareholders. An additional $1.1 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At September 30, 2025, 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 9.27% of total average assets as of September 30, 2025. Total risk-based capital was 14.52% of risk-weighted assets and Tier 1 risk-based capital was 13.39% of risk-weighted assets as of September 30, 2025. Tangible book value per share was $36.23 at September 30, 2025 compared to $31.98 at December 31, 2024. Tangible common equity was 7.69% of total assets at September 30, 2025 compared to 7.16% at December 31, 2024. Asset Quality Total non-performing assets were $3.0 million, or 0.11% of total assets, at September 30, 2025, compared to $7.8 million, or 0.30% of total assets, at December 31, 2024. Past due and non-accrual loans to total loans were 0.59% at September 30, 2025 compared to 0.71% at December 31, 2024. Net charge-offs to average total loans were 0.03% at September 30, 2025 compared to 0.03% at December 31, 2024. About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“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 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the markets served throughout 2024. 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 should be 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. 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 2025 and 2024. 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: 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) FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Statements of Income (dollars in thousands) FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands) FIDELITY D & D BANCORP, INC. Selected Financial Ratios and Other Financial Data * Non-GAAP Financial Measures - see reconciliations below FIDELITY D & D BANCORP, INC. Reconciliations of Non-GAAP Financial Measures to GAAP Contacts:

DUNMORE, Pa., July 23, 2025 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three and six-month periods ended June 30, 2025. Unaudited Financial Information Net income for the quarter ended June 30, 2025 was $6.9 million, or $1.20 diluted earnings per share, compared to $4.9 million, or $0.86 diluted earnings per share, for the quarter ended June 30, 2024. The $2.0 million, or 40%, increase in net income resulted primarily from a $2.8 million increase in net interest income coupled with a $0.8 million increase in non-interest income. This was partially offset by a $1.1 million increase in non-interest expense and a $0.6 million increase in the provision for income tax. For the six months ended June 30, 2025, net income was $12.9 million, or $2.23 diluted earnings per share, compared to $10.0 million, or $1.73 diluted earnings per share, for the six months ended June 30, 2024. The $2.9 million, or 29%, increase in net income stemmed from the $4.9 million increase in net interest income and $1.1 million increase in non-interest income. This was partially offset by a $2.0 million increase in non-interest expense and a $1.0 million increase in the provision for income tax. “I am pleased to share that we delivered another strong quarter, underscoring the continued momentum of our strategy and the dedication of our entire team,” stated Daniel J. Santaniello, President and Chief Executive Officer. “Second quarter 2025 net income increased 40% over last year’s second quarter to $6.9 million, with diluted earnings per share rising to $1.20. This performance was driven by a 19% increase in net interest income—reflecting our disciplined loan portfolio expansion and enhanced yields as well as a 16% rise in non-interest income. Year-to-date, net income has grown 29% to $12.9 million, a clear testament to the strength of our relationship-based deposit strategy and prudent expense management. Our asset quality remains solid, and we further strengthened our capital position, with shareholders' equity up 7% providing a strong foundation for continued growth in the second half of 2025. These results reflect more than financial performance—they speak to the strength of our culture, our commitment to our clients, and our deep roots in the communities we serve. I want to sincerely thank our talented and dedicated team of bankers, whose expertise and focus on service excellence drive our success every day. Together, we continue to build a stronger, more resilient financial institution—one that delivers meaningful value to our bankers, clients, shareholders, and communities.” Consolidated Second Quarter Operating Results Overview Net interest income was $17.9 million for the second quarter of 2025, a 19% increase over the $15.1 million earned for the second quarter of 2024. The $2.8 million increase in net interest income resulted from the increase of $3.7 million in interest income primarily due to a $213.6 million increase in the average balance of interest-earning assets and a 19 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yield. The loan portfolio had the most significant impact, producing a $2.8 million increase in FTE interest income from $124.6 million in higher quarterly average balances and an increase of 24 basis points in FTE loan yield. Additionally, the Company experienced an increase of $1.1 million in interest earned from interest-bearing deposits with other financial institutions from $102.0 million in higher average balances. Slightly offsetting the higher interest income, there was a $0.9 million increase in interest expense due to a $178.8 million quarter-over-quarter increase in average interest-bearing liability balances. The increase was due to growth of $208.3 million in average interest-bearing deposit balances. However, this deposit growth was partially offset by a $28.5 million decrease in average short-term borrowings. The FTE yield on interest-earning assets was 4.77% for the second quarter of 2025, an increase of 19 basis points from the 4.58% for the second quarter of 2024. The overall cost of interest-bearing liabilities was 2.52% for the second quarter of 2025, a decrease of 6 basis points from the 2.58% for the second quarter of 2024. The cost of funds decreased 1 basis point from 1.96% to 1.95% for the second quarters of 2024 and 2025, respectively. The Company’s FTE net interest spread was 2.25% for the second quarter of 2025, an increase of 25 basis points from 2.00% recorded for the second quarter of 2024. FTE net interest margin increased to 2.92% for the three months ended June 30, 2025 from 2.71% for the same period of 2024 primarily due to the growth in higher yielding taxable commercial loans. For the three months ended June 30, 2025, the provision for credit losses on loans was $300 thousand and the provision for unfunded commitments was $20 thousand compared to a $275 thousand provision for credit losses on loans and a $140 thousand provision for credit losses on unfunded loan commitments for the three months ended June 30, 2024. For the three months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $155 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the three months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower levels of unfunded commitments during the quarter due to increased utilization, specifically commercial construction commitments, compared to the year earlier period. Total non-interest income increased $0.8 million, or 16%, to $5.4 million for the second quarter of 2025 compared to $4.6 million for the second quarter of 2024. The increase in non-interest income was primarily attributed to increases of $0.2 million in trust fees, a $0.2 million BOLI death benefit, $0.2 million in loan service charges, and $0.1 million in interchange fees. Non-interest expenses increased $1.1 million, or 8%, for the second quarter of 2025 to $14.7 million from $13.6 million for the same quarter of 2024. The increase in non-interest expenses was primarily due to the increases in salaries and benefits expense of $0.8 million, premises and equipment expense of $0.2 million, and advertising expense of $0.2 million. These increases were partially offset by a $0.2 million decrease in professional services for the three months ended June 30, 2025 compared to the same period of 2024. The provision for income taxes increased $0.6 million during the three months ended June 30, 2025 compared to the same period in 2024 primarily due to a $2.6 million increase in income before taxes. Consolidated Year-To-Date Operating Results Overview Net interest income was $35.0 million for the six months ended June 30, 2025 compared to $30.1 million for the six months ended June 30, 2024. The $4.9 million increase in net interest income resulted from the increase of $6.4 million in interest income primarily due to a $181.0 million increase in the average balance of interest-earning assets and a 20 basis point increase in FTE yield. On the asset side, the loan portfolio interest income growth resulted from producing $5.3 million more in interest income from an increase of 25 basis points in FTE loan yields on $120.5 million in higher average balances. Additionally, the Company experienced an increase of $1.5 million in interest earned from interest-bearing deposits with other financial institutions from $71.6 million in higher average balances. The increase in interest income was partially offset by a decrease of $0.3 million in interest earned on the investment portfolio due to decreases of 6 basis points in yield and $11.3 million in average balances. On the funding side, total interest expense increased by $1.5 million primarily due to an increase in interest expense paid on deposits of $2.5 million from a 2 basis points higher rates paid on a $194.0 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $1.0 million for the six months ended June 30, 2025 compared to the same period in 2024. The overall cost of interest-bearing liabilities was 2.51% for the six months ended June 30, 2025 compared to 2.54% for the six months ended June 30, 2024. The cost of funds decreased 1 basis point to 1.94% for the six months ended June 30, 2025 from 1.95% from the same period of 2024. The FTE yield on earning assets was 4.75% for the six months ended June 30, 2025, an increase of 20 basis points from the 4.55% year-to-date June 30, 2024. The Company’s FTE net interest spread was 2.24% for the six months ended June 30, 2025, an increase of 23 basis points from the 2.01% recorded for the same period of 2024. FTE net interest margin increased by 21 basis points to 2.91% for the six months ended June 30, 2025 from 2.70% for the same 2024 period primarily due to the increase in yields earned on loans and leases outpacing the rates paid on interest-bearing deposits. For the six months ended June 30, 2025, the provision for credit losses on loans was $755 thousand and the provision for credit losses on unfunded loan commitments was a net benefit of $65 thousand compared to a $400 thousand provision for credit losses on loans and a $90 thousand provision for credit losses on unfunded commitments for the six months ended June 30, 2024. For the six months ended June 30, 2025, the increase in the provision for credit losses on loans compared to the prior year period was due to $215 thousand in higher net charge-offs and a higher average total loan balance compared to the same period in 2024. For the six months ended June 30, 2025, the decrease in the provision for unfunded commitments was due to lower growth in unfunded commitments during the period due to increased utilization, specifically commercial construction commitments, compared to the year earlier period. Total non-interest income for the six months ended June 30, 2025 was $10.3 million, an increase of $1.1 million, or 12%, from $9.2 million for the six months ended June 30, 2024. The increase was primarily due to $0.3 million higher fees from trust fiduciary activities. The Company also had $0.2 million more non-interest income resulting from an increase in interchange fees, a $0.2 million BOLI death benefit, and an increase of $0.2 million in service charges on commercial loans. During the first half of 2025, gains of $0.5 million on the sale of a commercial loan and $0.3 million from the sale of a property were offset by $0.8 million in losses recognized on the sale of securities. Non-interest expenses increased to $29.3 million for the six months ended June 30, 2025, an increase of $2.0 million, or 7%, from $27.3 million for the six months ended June 30, 2024. Salaries and benefits expense increased $1.3 million due to an increase in bankers, group insurance costs, and banker incentives in the first half of 2025, compared to the same period in 2024. Additionally, the Company saw an increase of $0.5 million in advertising and marketing expenses primarily due to a $0.3 million increase in Neighborhood Assistance Program donations from which the Company recognized $0.2 million in additional tax credits causing a corresponding decrease in PA shares tax expense. There was also an increase of $0.5 million in premises and equipment expense primarily due to higher costs for software licenses, subscriptions, and maintenance. The increases were partially offset by $0.3 million less in professional services expense. The provision for income taxes increased $1.0 million during the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a $3.9 million increase in income before taxes and $0.2 million less in tax credits. Consolidated Balance Sheet & Asset Quality Overview The Company’s total assets had a balance of $2.7 billion as of June 30, 2025, an increase of $114.0 million from December 31, 2024. The increase resulted from $82.1 million in growth in cash and cash equivalents as of June 30, 2025 compared to December 31, 2024. The loans and leases portfolio increased $37.9 million over the same period. Asset growth was offset by a decrease of $11.4 million in the investment portfolio primarily due to the sale of $17.5 million in available-for-sale securities and $11.3 million in paydowns partially offset by $14.7 million in purchases of securities. During the same time period, total liabilities increased $100.0 million, or 4%. Deposit growth of $94.5 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $37.2 million in money market deposits, $17.2 million in interest-bearing checking accounts, $14.4 million in time deposits, and $1.6 million in savings and clubs. The deposit growth is primarily driven by growth in existing account balances from the relationship building strategy along with targeted direct marketing campaigns driving new client acquisitions and active management of promotional and retention rates. Additionally, the Company experienced an increase of $24.1 million in non-interest-bearing checking accounts. As of June 30, 2025, the ratio of insured and collateralized deposits to total deposits was approximately 75%. Shareholders’ equity increased $13.9 million, or 7%, to $217.9 million at June 30, 2025 from $204.0 million at December 31, 2024. The increase was caused by $8.3 million higher retained earnings from net income of $12.9 million plus a $4.9 million, after tax, improvement in accumulated other comprehensive income from lower net unrealized losses recorded on available-for-sale securities, partially offset by $4.7 million in cash dividends paid to shareholders. An additional $0.9 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At June 30, 2025, 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 9.16% of total average assets as of June 30, 2025. Total risk-based capital was 14.72% of risk-weighted assets and Tier 1 risk-based capital was 13.57% of risk-weighted assets as of June 30, 2025. Tangible book value per share was $34.25 at June 30, 2025 compared to $31.98 at December 31, 2024. Tangible common equity was 7.38% of total assets at June 30, 2025 compared to 7.16% at December 31, 2024. Asset Quality Total non-performing assets were $3.5 million, or 0.13% of total assets, at June 30, 2025, compared to $7.8 million, or 0.30% of total assets, at December 31, 2024. Past due and non-accrual loans to total loans were 0.41% at June 30, 2025 compared to 0.71% at December 31, 2024. Net charge-offs to average total loans were 0.05% at June 30, 2025 compared to 0.03% at December 31, 2024. About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“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 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the markets served throughout 2024. 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 should be 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. 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 2025 and 2024. 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: 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. * Non-GAAP Financial Measures - see reconciliations below