Fidelity D & D Bancorp Reports 40% Increase in Q2 Net Income, Total Assets Reach $2.7 Billion

Fidelity D & D Bancorp, Inc. reported a significant increase in its financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ending June 30, 2025, the company achieved a net income of $6.9 million, or $1.20 per diluted share, compared to $4.9 million, or $0.86 per diluted share, for the same period in 2024. This represents a 40% increase in quarterly net income. For the six months ended June 30, 2025, net income rose to $12.9 million, or $2.23 per diluted share, up from $10.0 million, or $1.73 per diluted share, in the prior year, marking a 29% increase.

The company's total assets increased to $2.7 billion as of June 30, 2025, up from $2.6 billion at the end of 2024. This growth was primarily driven by an $82.1 million increase in cash and cash equivalents and a $37.9 million rise in the loans and leases portfolio. Total deposits also saw a notable increase of $94.5 million, reaching $2.4 billion, attributed to growth in interest-bearing checking accounts and money market accounts. The company’s allowance for credit losses increased slightly to $20.0 million, reflecting a proactive approach to managing credit risk amid a growing loan portfolio.

In terms of operational developments, Fidelity D & D Bancorp has focused on enhancing its core business of retail and business lending while maintaining strong asset quality. The company has also been actively managing its investment portfolio, which saw a decrease of $11.4 million during the first half of 2025. The company’s strategy includes reallocating cash flow to focus on higher-yielding assets and managing deposit costs effectively. Additionally, the company has been involved in a significant construction project for its new headquarters, which is expected to be completed in mid-2026.

Looking ahead, the company anticipates operating in a moderately declining interest rate environment, with expectations of potential rate cuts later in 2025. Management is focused on maintaining a strong liquidity position and optimizing the balance sheet to support growth while managing interest rate risks. The company’s capital position remains robust, with a tangible common equity ratio of 7.38% as of June 30, 2025, exceeding regulatory requirements. Overall, Fidelity D & D Bancorp is well-positioned to navigate the evolving economic landscape while continuing to enhance shareholder value.