In This Article:
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Net Income: $5.1M for Q1 2024, down from $7.0M in Q1 2023, a decline of 27.6%.
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Diluted Earnings Per Share: $0.88 in Q1 2024 versus $1.24 in Q1 2023.
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Net Interest Income: Decreased by 12% to $14.9M in Q1 2024 from $17.0M in Q1 2023.
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Non-Interest Income: Increased slightly by 2% to $4.6M in Q1 2024 from $4.5M in Q1 2023.
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Non-Interest Expenses: Rose by 6% to $13.7M in Q1 2024 from $12.9M in Q1 2023.
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Total Assets: Decreased to $2.5B as of March 31, 2024, down from $2.5B as of December 31, 2023.
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Shareholders Equity: Increased slightly by 1% to $191.6M at the end of Q1 2024 from $189.5M at the end of 2023.
Fidelity D & D Bancorp Inc (NASDAQ:FDBC), the parent company of The Fidelity Deposit and Discount Bank, disclosed its financial results for the first quarter of 2024 on April 24, 2024. The company reported a decrease in net income, primarily due to increased interest expenses. The detailed financial outcomes can be explored in their recent 8-K filing.
Company Overview
Fidelity D & D Bancorp Inc operates through its wholly-owned subsidiary, The Fidelity Deposit and Discount Bank, offering a broad range of traditional banking services. The bank operates 21 full-service branches across several Pennsylvania counties, providing personal and corporate banking services, asset management, and insurance products. Its primary financial offerings include various deposit accounts and comprehensive loan services to both retail and commercial customers.
Financial Performance Analysis
The first quarter of 2024 saw Fidelity D & D Bancorp Inc earning a net income of $5.1 million, or $0.88 per diluted share, a decline from $7.0 million, or $1.24 per diluted share, in the same quarter of the previous year. This 27% decrease in net income was largely driven by a significant rise in interest expenses, which surged by $5.4 million due to higher rates on interest-bearing deposits and increased short-term borrowings. Despite these challenges, the bank managed to grow its interest income by $3.3 million, aided by an $87.0 million increase in the average balance of loans and leases and higher yields on these assets.
Daniel J. Santaniello, President and CEO, commented on the results, stating,
Our performance in the first quarter of 2024 demonstrates our resilience and adaptability in navigating through challenging economic conditions. Despite the decline in net income related to the interest rate environment, our ongoing commitment to delivering value to our clients, our shareholders, our bankers, and the communities we serve has provided tremendous value."