Fidelity D & D Bancorp Inc (FDBC) Reports Q3 2023 Financial Results
Fidelity D & D Bancorp Inc (NASDAQ:FDBC) reported a net income of $5.3 million for Q3 2023, a decrease from $7.6 million in Q3 2022.
Net interest income for Q3 2023 was $14.6 million, a 21% decrease from Q3 2022.
Non-interest income increased by $0.4 million, or 11%, to $4.3 million for Q3 2023.
Total assets grew to $2.5 billion as of September 30, 2023, an increase of $98 million from December 31, 2022.
Fidelity D & D Bancorp Inc (NASDAQ:FDBC) released its unaudited, consolidated financial results for the third quarter of 2023 on October 25, 2023. The company reported a net income of $5.3 million, or $0.93 diluted earnings per share, a decline from $7.6 million, or $1.36 diluted earnings per share, for the same quarter in 2022. This decline in net income was primarily due to a $3.9 million decrease in net interest income, driven by higher interest expenses.
Financial Performance Overview
The company's net interest income for the third quarter of 2023 was $14.6 million, a 21% decrease from the $18.5 million earned in the third quarter of 2022. This decline was primarily due to a $7.4 million increase in interest expense, primarily due to a 171 basis point increase in the rates paid on interest-bearing deposits.
Despite the challenging operating environment, the bank produced strong loan growth, grew non-interest income, maintained excellent asset quality, and controlled expenses. "While the rising costs of deposits and borrowed funds resulted in decreased earnings from a year ago, we remain focused on executing our strategic plan and leveraging the strength of the balance sheet to continue to serve our clients. Fidelity Bank is well positioned for the future and committed to our clients and the communities we serve," stated Daniel J. Santaniello, President and Chief Executive Officer.
Consolidated Balance Sheet & Asset Quality Overview
The company's total assets grew to $2.5 billion as of September 30, 2023, an increase of $98 million from $2.4 billion as of December 31, 2022. This growth was primarily driven by an $80 million increase in the loan portfolio and $81 million of cash and cash equivalents, partially offset by a reduction of the investment portfolio of $67 million.
Shareholders equity increased $2.5 million, or 2%, to $165.4 million at September 30, 2023 from $162.9 million at December 31, 2022. The increase was caused by retained earnings improvement from net income of $17.7 million, partially offset by $6.2 million in cash dividends paid to shareholders.
Asset Quality
Total non-performing assets were $3.4 million, or 0.14% of total assets, at September 30, 2023, compared to $2.7 million, or 0.12% of total assets, at December 31, 2022. Past due and non-accrual loans to total loans were 0.32% at September 30, 2023 compared to 0.28% at December 31, 2022.
Fidelity D & D Bancorp Inc (NASDAQ:FDBC) continues to maintain a strong financial position despite the challenging operating environment. The company remains committed to executing its strategic plan and leveraging the strength of its balance sheet to continue serving its clients.
Explore the complete 8-K earnings release (here) from Fidelity D & D Bancorp Inc for further details.
This article first appeared on GuruFocus.
