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Fidelity D & D Bancorp, Inc. Reports 2018 Financial Results Improved 26%

DUNMORE, Pa., Jan. 30, 2019 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (FDBC) and its banking subsidiary Fidelity Deposit and Discount Bank, announced net income for the year ended December 31, 2018 of $11.0 million, or $2.90 diluted earnings per share, compared to $8.7 million, or $2.33 diluted earnings per share, for the year ended December 31, 2017. The $2.3 million, or 26%, growth in net income resulted primarily from a $2.6 million increase in net interest income combined with $0.8 million increase in non-interest income, partially offset by a $0.9 million increase in the provision for income taxes and $0.2 million increase in operating expenses. The Company experienced a $70.5 million, or 9%, increase in average interest-earning assets funded by a $56.4 million increase in average deposits, $11.2 million in average borrowings and $4.7 million increase in average shareholders’ equity during 2018 compared to 2017. This balance sheet growth increased the year’s income before income taxes by $3.2 million, or 32%. Return on average assets (ROA) and return on average equity (ROE) were 1.20% and 12.36%, respectively, for 2018 and 1.03% and 10.34%, respectively, for 2017.

“2018 marked another successful year for Fidelity Bank, with record net-income. Earnings per share increased, and our returns on average assets and equity were strong,” stated Daniel J. Santaniello, President and Chief Executive Officer. “Fidelity Bank reached this mark by increasing loans, deposits, and non-interest income, while coupling it with disciplined expense management. For the first time in several years, Fidelity Bank expanded the branch network by opening a new branch in Dallas, Pennsylvania and its surrounding Back Mountain Region. Fidelity Bank is well positioned for continued success in building long-term shareholder value, supported by strong capital levels and Bankers that are committed to a superior client experiences.”

For the quarter ended December 31, 2018, net income increased $0.5 million, or 22%, to $2.8 million from $2.3 million for the same 2017 period. Net income improved despite not having the $1.1 million reduction to provision for income taxes that occurred in the fourth quarter of 2017 resulting from the Tax Cuts and Jobs Act (Tax Act). The quarter-over-quarter increase was primarily driven by a 14% increase in total revenue from a $0.9 million increase in net interest income and a $0.4 million increase in non-interest income combined with $0.4 million less non-interest expenses and $0.2 million lower provision for loan losses. Earnings per share on a diluted basis were $0.75 and $0.61 for the fourth quarters of 2018 and 2017, respectively. ROA and ROE were 1.17% and 12.43%, respectively, for the fourth quarter of 2018 and 1.07% and 10.61%, respectively, for the fourth quarter of 2017.

Consolidated Fourth Quarter Operating Results Overview

Net interest income was $8.0 million for the fourth quarter of 2018, a $0.9 million, or 13%, increase over the $7.1 million earned for the fourth quarter of 2017. The net interest income growth resulted from a $104.0 million larger average balance of interest-earning assets that generated 23 basis point higher fully-taxable equivalent (FTE) yields which increased interest income by $1.7 million. The loan portfolio had the biggest impact, producing a $1.3 million increase in interest income with all portfolios contributing to the increase. Yields on average quarterly balances of $338.5 million in floating rate loans at December 31, 2018 benefited from 100 basis points in short-term rate increases by the Federal Reserve in 2018, and mitigated the effect of adding lower yields on shorter average life indirect consumer loans which experienced the most growth in the loan portfolio. The investment portfolio benefited from the Company investing in $40.7 million more, on average, in mortgage backed securities and municipal securities which caused interest income on investments to increase $0.4 million. Partially offsetting the increase in net interest income from higher interest income, interest expense increased $0.8 million. The average balance of interest-bearing deposits increased $16.9 million and the rates paid on these deposits increased 23 basis points resulting in $0.4 million in additional interest expense. The Company also utilized $60.8 million in average overnight borrowings and FHLB advances at higher rates to fund earning asset growth at higher rates over deposit costs, which contributed another $0.4 million to interest expense. The Company’s lower tax rate in 2018 due to the Tax Act decreased the FTE yields on nontaxable interest-earning assets and had the effect of reducing FTE net interest rate spread and margin both by eight basis points, respectively. As a result of the negative impact of the FTE adjustment from the lower tax rate and the higher volume and rates paid on interest-bearing liabilities, net interest spread was 3.32% for the fourth quarter of 2018, or 18 basis points lower than the 3.50% recorded for the same 2017 quarter. The Company mitigated the effect on FTE net interest margin and cost of funds by generating $26.7 million more in average non-interest bearing deposits during the quarter. The cost of funds increased 31 basis points despite a 41 basis point higher rate paid on interest-bearing liabilities. The Company’s FTE net interest margin decreased by only seven basis points to 3.58% for the three months ended December 31, 2018 from 3.65% for the same 2017 period. Excluding the effect of the tax rate change, margin would have increased by one basis point.

The provision for loan losses was $0.3 million for the fourth quarter of 2018 compared to $0.5 million for the fourth quarter of 2017. Continued provisioning was in response to the Company’s level of loan growth in order to maintain an allowance level that the Company deemed adequate.

Total other income increased $0.4 million to $2.3 million for the fourth quarter of 2018 compared to $1.9 million for the fourth quarter of 2017. The Company utilized a few tax strategies at the end of 2017 in response to the passage of the Tax Act that reduced net interest income by $0.3 million for the fourth quarter of 2017. The remaining $0.1 million increase in non-interest income was primarily due to higher debit card interchange fees.

Other expenses declined $0.4 million, or 6%, for the fourth quarter of 2018 to $6.5 million from $6.9 million for the same 2017 quarter. In response to the Tax Act, the Company strategically accelerated certain expenses to maximize the one time benefits during the fourth quarter of 2017. These expenses included $0.2 million in year-end employee bonuses, $0.1 million from the early payoff of a lease and a $0.5 million charitable donation to a newly formed community foundation. Excluding these expenses, non-interest expense actually increased $0.4 million quarter-over-quarter. The increase was primarily due to $0.2 million in additional advertising expense, $0.1 million more donations and $0.1 million higher salaries.

The provision for income taxes increased $1.4 million from a $0.9 million credit for the fourth quarter of 2017 to $0.5 million for the fourth quarter of 2018. The increase was primarily due to a $1.1 million deferred tax credit adjustment made in the fourth quarter of 2017 resulting from the Tax Act. The remaining increase was due to higher taxable income during the fourth quarter of 2018.

Consolidated Year-To-Date Operating Results Overview

Net interest income was $30.4 million for the year ended December 31, 2018 compared to $27.8 million for the year ended December 31, 2017. The $2.6 million, or 9%, improvement was the result of a larger average balance of higher-yielding interest-earning assets which generated $4.3 million in additional interest income that more than offset a $1.7 million increase in interest expense from higher rates paid on a larger average balance of interest-bearing liabilities. The loan portfolio caused the most impact, producing a $3.2 million increase in interest income, of which $1.9 million was the result of higher average loan balances and $1.3 million stemmed from higher yields earned on loans. The investment portfolio contributed $0.9 million in additional earnings, primarily from a larger average balance of mortgage-backed securities earning a higher yield. On the liability side, higher rates paid on $28.6 million more average interest-bearing deposits caused interest expense to increase by $1.1 million. Additionally, higher rates paid on larger average overnight borrowings resulted in $0.5 million more interest expense and higher rates paid on FHLB advances increased interest expense $0.1 million. FTE net interest spread was 3.42% for 2018, or fourteen basis points lower than the 3.56% recorded for 2017. The lower FTE adjustment in 2018 from the Tax Act had the effect of reducing the spread by eight basis points. Additionally, the rates paid on interest-bearing liabilities rose faster than the yields earned on interest-earning assets, which further reduced the FTE net interest rate spread by 6 basis points. Over the same time period, the Company’s FTE net interest margin decreased by six basis points to 3.64% from 3.70%. If not for the negative impact of the Tax Act, net interest margin would have increased by one basis point due to the $27.7 million increase in average non-interest bearing deposits.

For the year ended December 31, 2018, the provision for loan losses was $1.5 million which was unchanged from December 31, 2017. Loan growth combined with improving asset quality during 2018 supported the lower allowance for loan losses as a percentage of total loans, which fell to 1.36% at December 31, 2018 compared to 1.44% at December 31, 2017.

Total other income for the year ended December 31, 2018 was $9.2 million, an increase of $0.8 million, or 10%, from $8.4 million for the year ended December 31, 2017. The increase in other income was comprised of the following: $0.3 million in interchange fees, $0.3 million in trust fees, and $0.2 million in financial service fees. In addition, there were $0.3 million in one-time losses realized in 2017 due to tax strategies. These increases were partially offset by $0.2 million fewer gains on loan sales and $0.1 million less service charges on loans.

Other expenses increased to $25.0 million for the year ended December 31, 2018, an increase of $0.2 million from $24.8 million for the year ended December 31, 2017. The largest driver of this increase was a $0.6 million increase in salaries and employee benefits expense due to $0.6 million higher salaries, $0.2 million in additional stock-based compensation expense and a $0.1 million increase in post-retirement benefit expenses partially offset by a $0.2 million decrease in bonuses from a one-time payout in 2017. In addition, there was a $0.2 million increase in data processing expense and $0.2 million in additional advertising expense. These increases were partially offset by a $0.3 million decrease in professional fees, $0.4 million less donations, and $0.1 million less collection expense.

Consolidated Balance Sheet & Asset Quality Overview

The Company’s total assets increased $117.5 million, or 14%, to $981.1 million at December 31, 2018 from $863.6 million at December 31, 2017. This asset growth resulted primarily from $82.0 million net growth in the loan portfolio and a $25.4 million increase in securities. Asset growth was funded by a $40.0 million increase in deposits plus $68.4 million in additional borrowings. The Company continued to focus on increasing assets using its relationship management strategy to grow loans and deposits and achieve profitable returns. The Company has begun its Luzerne County expansion plans with the Back Mountain branch opening late in the fourth quarter of 2018 and construction on the Mountain Top branch set to begin in 2019.

Total non-performing assets were $6.3 million, or 0.64% of total assets, at December 31, 2018 compared to $6.3 million, or 0.73% of total assets, at December 31, 2017. Non-performing assets were relatively unchanged from prior period, as a $0.8 million increase in non-accruing loans was offset by a reduction of $0.8 million in other real estate owned. Net charge-offs to average total loans decreased to 0.13% at December 31, 2018 compared to 0.26% at December 31, 2017. The improvement was due to a $0.7 million reduction in net charge-offs compared to December 31, 2017.

Shareholders’ equity increased $6.2 million, or 7%, to $93.6 million at December 31, 2018 from $87.4 million at December 31, 2017. Net income growth of $11.0 million was partially offset by a $2.5 million, after tax, reduction in net unrealized gains from the investment portfolio. An additional $1.4 million recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense, was offset by $3.7 million in cash dividends paid to shareholders. The Company remains well capitalized and is positioned for continued growth with total shareholders’ equity at 9.54% of total assets at December 31, 2018. Book value per share was $24.89 at December 31, 2018 compared to $23.40 at December 31, 2017.

Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisors to the customers served by The Fidelity Deposit and Discount Bank, and is proud to be an active member of the community of Northeastern Pennsylvania. The Company serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 11 community banking office locations providing personal and business banking products and services, including wealth management assistance through fiduciary activities with the Bank’s full trust powers; as well as offering a full array of asset management services. The Bank provides 24 hour, 7 day a week service to customers through branch offices, online at www.bankatfidelity.com, and through the Customer Care Center at 800-388-4380. The Bank's deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

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 effects of economic conditions on current customers, specifically the effect of the economy on loan customers’ ability to repay loans;
  • 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 the Tax Cuts and Jobs Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations promulgated there under;
  • 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 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 risks of changes in 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;
  • 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;
  • technological changes;
  • the interruption or breach in security of our information systems 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;
  • volatilities in the securities markets;
  • acts of war or terrorism;
  • disruption of credit and equity markets; and
  • the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

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

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

 
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
         
At Period End: December 31, 2018 December 31, 2017
Assets        
Cash and cash equivalents $  17,485   $ 15,825  
Investment securities    182,810     157,385  
Federal Home Loan Bank stock    6,339     2,832  
Loans and leases    722,687     640,141  
Allowance for loan losses    (9,747 )   (9,193 )
Premises and equipment, net    18,289     16,576  
Life insurance cash surrender value    20,614     20,017  
Other assets    22,625     20,054  
         
Total assets $  981,102   $ 863,637  
         
Liabilities        
Non-interest-bearing deposits $  194,731   $ 178,631  
Interest-bearing deposits    575,452     551,515  
Total deposits    770,183     730,146  
Short-term borrowings    76,366     18,502  
FHLB advances    31,704     21,204  
Other liabilities    9,292     6,402  
Total liabilities    887,545     776,254  
         
Shareholders' equity    93,557     87,383  
         
Total liabilities and shareholders' equity $  981,102   $ 863,637  
         
         
Average Year-To-Date Balances: December 31, 2018 December 31, 2017
Assets        
Cash and cash equivalents $  18,639   $ 15,644  
Investment securities    172,085     154,738  
Loans and leases, net    668,090     621,440  
Premises and equipment, net    16,389     16,961  
Other assets    42,739     35,564  
         
Total assets $  917,942   $ 844,347  
         
Liabilities        
Non-interest-bearing deposits $  196,790   $ 169,075  
Interest-bearing deposits    564,763     536,123  
Total deposits    761,553     705,198  
Short-term borrowings    37,558     28,673  
FHLB advances    22,109     19,778  
Other liabilities    7,697     6,379  
Total liabilities    828,917     760,028  
         
Shareholders' equity    89,025     84,319  
         
Total liabilities and shareholders' equity $  917,942   $ 844,347  


FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
(dollars in thousands)
                     
    Three Months Ended   Twelve Months Ended    
    Dec. 31, 2018   Dec. 31, 2017   Dec. 31, 2018   Dec. 31, 2017    
Interest income                    
Loans and leases $  8,173   $ 6,850   $  30,113   $ 26,895      
Securities and other    1,451     1,066      5,217     4,169      
                     
Total interest income    9,624     7,916      35,330     31,064      
                     
Interest expense                    
Deposits    1,140     779      3,811     2,750      
Borrowings and debt    520     87      1,062     473      
                     
Total interest expense    1,660     866      4,873     3,223      
                     
Net interest income    7,964     7,050      30,457     27,841      
                     
Provision for loan losses    (325 )   (525 )    (1,450 )   (1,450 )    
Other income    2,263     1,883      9,200     8,367      
Other expenses    (6,530 )   (6,953 )    (25,072 )   (24,836 )    
                     
Income before income taxes    3,372     1,455      13,135     9,922      
                     
Provision for/ benefit from income taxes    (525 )   872      (2,129 )   (1,206 )    
Net income $  2,847   $ 2,327   $  11,006   $ 8,716      
                     
                     
                     
  Three Months Ended
    Dec. 31, 2018   Sep. 30, 2018   Jun. 30, 2018   Mar. 31, 2018   Dec. 31, 2017
Interest income                    
Loans and leases $  8,173   $ 7,779   $ 7,250   $ 6,911   $ 6,850  
Securities and other    1,451     1,249     1,285     1,232     1,066  
                     
Total interest income    9,624     9,028     8,535     8,143     7,916  
                     
Interest expense                    
Deposits    1,140     981     886     804     779  
Borrowings and debt    520     336     126     80     87  
                     
Total interest expense    1,660     1,317     1,012     884     866  
                     
Net interest income    7,964     7,711     7,523     7,259     7,050  
                     
Provision for loan losses    (325 )   (400 )   (425 )   (300 )   (525 )
Other income    2,263     2,283     2,371     2,283     1,883  
Other expenses    (6,530 )   (6,172 )   (6,162 )   (6,208 )   (6,953 )
                     
Income before income taxes    3,372     3,422     3,307     3,034     1,455  
                     
Provision for/ benefit from income taxes    (525 )   (559 )   (539 )   (506 )   872  
Net income $  2,847   $ 2,863   $ 2,768   $ 2,528   $ 2,327  


FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
                     
At Period End:   Dec. 31, 2018   Sep. 30, 2018   Jun. 30, 2018   Mar. 31, 2018   Dec. 31, 2017
Assets                    
Cash and cash equivalents $  17,485   $ 16,944   $ 17,972   $ 36,305   $ 15,825  
Investment securities    182,810     171,451     164,403     165,768     157,385  
Federal Home Loan Bank stock    6,339     4,717     3,490     2,320     2,832  
Loans and leases    722,687     704,886     686,993     642,705     640,141  
Allowance for loan losses    (9,747 )   (9,944 )   (9,527 )   (9,408 )   (9,193 )
Premises and equipment, net    18,289     16,204     16,189     16,350     16,576  
Life insurance cash surrender value    20,614     20,464     20,315     20,168     20,017  
Other assets    22,625     25,132     22,766     23,209     20,054  
                     
Total assets $  981,102   $ 949,854   $ 922,601   $ 897,417   $ 863,637  
                     
Liabilities                    
Non-interest-bearing deposits $  194,731   $ 206,588   $ 212,364   $ 206,729   $ 178,631  
Interest-bearing deposits    575,452     572,473     565,894     568,562     551,515  
Total deposits    770,183     779,061     778,258     775,291     730,146  
Short-term borrowings    76,366     40,269     29,553     8,642     18,502  
FHLB advances    31,704     31,704     18,704     18,704     21,204  
Other liabilities    9,292     8,768     7,234     7,278     6,402  
Total liabilities    887,545     859,802     833,749     809,915     776,254  
                     
Shareholders' equity    93,557     90,052     88,852     87,502     87,383  
                     
Total liabilities and shareholders' equity $  981,102   $ 949,854   $ 922,601   $ 897,417   $ 863,637  
                     
                     
Average Quarterly Balances:   Dec. 31, 2018   Sep. 30, 2018   Jun. 30, 2018   Mar. 31, 2018   Dec. 31, 2017
Assets                    
Cash and cash equivalents $  14,682   $ 14,597   $ 21,017   $ 24,412   $ 19,623  
Investment securities    183,548     169,280     168,981     166,374     155,943  
Loans and leases, net    705,209     686,318     648,006     631,821     629,489  
Premises and equipment, net    16,499     16,257     16,295     16,507     16,802  
Other assets    44,686     43,483     42,047     40,685     37,997  
                     
Total assets $  964,624   $ 929,935   $ 896,346   $ 879,799   $ 859,854  
                     
Liabilities                    
Non-interest-bearing deposits $  200,936   $ 203,530   $ 197,355   $ 185,090   $ 174,282  
Interest-bearing deposits    573,211     554,652     565,560     565,655     556,354  
Total deposits    774,147     758,182     762,915     750,745     730,636  
Short-term borrowings    59,289     55,141     19,250     15,885     12,984  
FHLB advances    31,704     18,725     18,704     19,204     21,801  
Other liabilities    8,625     8,077     7,330     6,729     7,442  
Total liabilities    873,765     840,125     808,199     792,563     772,863  
                     
Shareholders' equity    90,859     89,810     88,147     87,236     86,991  
                     
Total liabilities and shareholders' equity $  964,624   $ 929,935   $ 896,346   $ 879,799   $ 859,854  


FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Data
                     
    Three Months Ended
    Dec. 31, 2018   Sep. 30, 2018   Jun. 30, 2018   Mar. 31, 2018   Dec. 31, 2017
Selected returns and financial ratios                    
Basic earnings per share $  0.76   $ 0.76   $ 0.74   $ 0.67   $ 0.63  
Diluted earnings per share $  0.75   $ 0.75   $ 0.73   $ 0.67   $ 0.61  
Dividends per share $  0.26   $ 0.24   $ 0.24   $ 0.24   $ 0.26  
Yield on interest-earning assets (FTE)   4.31 %   4.20 %   4.17 %   4.12 %   4.08 %
Cost of interest-bearing liabilities   0.99 %   0.83 %   0.67 %   0.60 %   0.58 %
Cost of funds   0.76 %   0.63 %   0.51 %   0.46 %   0.45 %
Net interest spread (FTE)   3.32 %   3.37 %   3.50 %   3.52 %   3.50 %
Net interest margin (FTE)   3.58 %   3.60 %   3.69 %   3.68 %   3.65 %
Return on average assets   1.17 %   1.22 %   1.24 %   1.17 %   1.07 %
Return on average equity   12.43 %   12.65 %   12.60 %   11.75 %   10.61 %
Efficiency ratio (FTE)   62.66 %   60.65 %   61.20 %   63.95 %   75.13 %
Expense ratio   1.76 %   1.66 %   1.70 %   1.81 %   2.34 %
                     
                     
    Twelve Months Ended            
    Dec. 31, 2018   Dec. 31, 2017            
Basic earnings per share $  2.93   $ 2.35              
Diluted earnings per share $  2.90   $ 2.33              
Dividends per share $  0.98   $ 0.88              
Yield on interest-earning assets (FTE)   4.20 %   4.11 %            
Cost of interest-bearing liabilities   0.78 %   0.55 %            
Cost of funds   0.59 %   0.43 %            
Net interest spread (FTE)   3.42 %   3.56 %            
Net interest margin (FTE)   3.64 %   3.70 %            
Return on average assets   1.20 %   1.03 %            
Return on average equity   12.36 %   10.34 %            
Efficiency ratio (FTE)   62.10 %   62.04 %            
Expense ratio   1.73 %   1.75 %            
                     
Other financial data   At period end:
(dollars in thousands except per share data)   Dec. 31, 2018   Sep. 30, 2018   Jun. 30, 2018   Mar. 31, 2018   Dec. 31, 2017
Interest income adjustment to FTE $  718   $ 182   $ 175   $ 165   $ 322  
Book value per share $  24.89   $ 23.97   $ 23.68   $ 23.32   $ 23.40  
Equity to assets   9.54 %   9.48 %   9.63 %   9.75 %   10.12 %
Allowance for loan losses to:                    
Total loans   1.36 %   1.42 %   1.39 %   1.47 %   1.44 %
Non-accrual loans   2.27 x   2.63 x   3.45 x   3.24 x   2.67 x
Non-accrual loans to total loans   0.59 %   0.54 %   0.40 %   0.45 %   0.54 %
Non-performing assets to total assets   0.64 %   0.65 %   0.66 %   0.79 %   0.73 %
Net charge-offs to average total loans   0.13 %   0.08 %   0.12 %   0.05 %   0.26 %
                     
Capital Adequacy Ratios                    
Total risk-based capital ratio   14.75 %   14.87 %   14.82 %   15.19 %   14.90 %
Common equity tier 1 risk-based capital ratio   13.50 %   13.61 %   13.57 %   13.93 %   13.65 %
Tier 1 risk-based capital ratio   13.50 %   13.61 %   13.57 %   13.93 %   13.65 %
Leverage ratio   9.79 %   9.93 %   10.02 %   9.98 %   9.91 %


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