10-Q · May 8, 2026
Fidelity D & D Bancorp reported a strong first quarter in 2026, with net income of $7.5 million and diluted EPS of $1.28, marking a 25% increase compared to Q1 2025. The company experienced robust revenue growth…
Earnings analysis · 10-Q
FDBC earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Fidelity D&D reported Q2 diluted EPS of $1.33, up from $1.20 a year earlier, while reported revenue was $26.24 million versus $35 million in the supplied prior-year history. The balance sheet had $2.971 billion of…
Read full summary
Fidelity D&D reported Q2 diluted EPS of $1.33, up from $1.20 a year earlier, while reported revenue was $26.24 million versus $35 million in the supplied prior-year history. The balance sheet had $2.971 billion of assets and $2.068 billion of loans, with a modestly asset-sensitive one-year cumulative gap of $44.5 million, or 1.5% of assets. Rate simulations remained within policy limits, but a 200-basis-point decline would reduce modeled net interest income by 3.2% and economic value of equity by 8.1%; no quantitative operating guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.33
What stood out
-
EPS increased year over year
Reported diluted EPS was $1.33 in Q2 2026, up from $1.20 in Q2 2025, an increase of $0.13 or approximately 10.8% year over year. Reported revenue was $26.24 million versus $35 million in the supplied prior-year quarterly history.
-
Loan assets remain the core balance-sheet asset
At June 30, 2026, total assets were $2.971 billion, including $207.660 million of cash and cash equivalents, $518.496 million of investment securities, and $2.068 billion of loans and leases.
-
Balance sheet is modestly asset sensitive
The company maintained a one-year cumulative positive interest-rate gap of $44.5 million, equal to 1.5% of total assets, indicating that more assets than liabilities reprice within one year.
-
Rate-risk simulations remain within policy limits
Management's +200-basis-point simulation projected a 2.9% increase in net interest income and a 6.1% increase in net income. The company's policy limits are materially wider, at plus or minus 10% for net interest income and plus or minus 25% for net income.
-
Capital remains above stated threshold
The risk-based capital ratio was 14.29% at June 30, 2026, above management's stated 10% threshold used when evaluating economic-value-at-risk outcomes.
-
Management is assessing interest-rate hedges
Management stated it is evaluating balance-sheet hedging opportunities with an independent third-party vendor with derivative expertise; any hedge would require Board pre-approval and quarterly ALCO monitoring.
What to watch
-
Falling rates could pressure earnings
The positive one-year cumulative gap of $44.5 million, or 1.5% of total assets, exposes net interest income to falling rates. The simulation estimated that a 200-basis-point decline would reduce net interest income by 3.2% and economic value of equity by 8.1%.
-
Deposit behavior may differ from models
The filing notes that deposit repricing, runoff, prepayments and early withdrawals may differ from model assumptions. Interest-bearing transaction deposits totaled $1.644 billion and certificates of deposit totaled $332.099 million at June 30, 2026, creating meaningful funding sensitivity if more expensive alternatives are required.
-
No material risk-factor updates
Management stated that there were no material changes to the risk factors disclosed in the 2025 Form 10-K filed March 13, 2026. Accordingly, the filing does not identify a new risk-factor development relative to the prior annual report.
Management's outlook
The filing provides no explicit quantitative revenue or EPS guidance. Interest-rate simulation outcomes are risk scenarios, not operating guidance.
Earlier filings 4
10-K · March 13, 2026
Fidelity D & D Bancorp’s 2025 results show multi-quarter revenue and margin expansion concentrated in its Pennsylvania regional markets. Total revenue for 2025 was approximately $140.0M (quarters: $33M, $35M, $36M,…
10-Q · November 7, 2025
Fidelity D & D Bancorp reported a stronger quarter: total revenue of $23,534,000 and diluted EPS of $1.27 for Q3 2025, driven by higher interest income and lower provisions. Balance sheet growth was funded primarily by…
10-Q · August 8, 2025
Fidelity D & D Bancorp reported Q2 2025 core revenue (net interest income before provision + noninterest income) of $23,288,000, up 18.0% from $19,732,000 in Q2 2024. Net income rose to $6,921,000 (diluted EPS $1.20)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.