Executive Summary

Fidelity D & D Bancorp, Inc. (“FDBC”), a national commercial bank headquartered in Dunmore, PA, has released its 2025 Annual Report as of December 31, 2025. The report provides a comprehensive overview of the company’s financial condition, risk management, capital structure, and governance practices. Here are the key highlights and potential items of interest for shareholders and investors.

Key Financial Highlights

• Securities Portfolio:
  • Debt Securities Available for Sale (Amortized Cost, Excluding Accrued Interest): \$333.0 million as of December 31, 2025, down from \$384.3 million in 2024, indicating a reduction in available-for-sale securities.
  • Held-to-Maturity Securities (Fair Value): \$203.1 million as of December 31, 2025 (up from \$194.6 million in 2024).
• Loan Portfolio:
  • Allowance for Credit Losses (Excluding Accrued Interest): \$268,000 as of December 31, 2025 (up from \$166,000 in 2024).
  • Loans Held for Sale (Fair Value): \$588,000 as of December 31, 2025 (down from \$2.1 million in 2024).
• Capital Structure:
  • No preferred shares issued (5,000,000 authorized, none outstanding).
  • Common stock: 10,000,000 shares authorized; 5,771,110 shares issued and outstanding as of December 31, 2025 (an increase from 5,736,252 in 2024).
  • Treasury shares: 180 as of December 31, 2025 (up from 54 in 2024).

Corporate Governance & Risk Management

• Cybersecurity:
  • Board of Directors assumes responsibility for overseeing the information security program.
  • The Information Technology Steering Committee (ITSC), composed of leaders from various departments, governs and oversees the company’s information security program.
  • Processes for third-party cybersecurity risk oversight are in place and operational.
  • The company affirms that no material cybersecurity risks have affected, or are reasonably likely to materially affect, the company.
• Insider Trading Policies:
  • Insider trading policies and procedures are formally adopted and in effect.
  • No adoption or termination of Rule 10b5-1 trading plans during Q4 2025.

Share-Based Compensation and Tax Matters

• Share-based Compensation: Certain awards vest fully after three years, or vest one-third per year over three years; some awards vest after one year.
• Tax Matters: No unrecognized tax benefits, penalties, or interest accrued as of December 31, 2025. New Jersey state taxes make up more than 50% of category tax effects.

Loan Quality and Credit Assessment

• Internal Credit Risk Assessment:
  • Detailed reporting on credit quality, including Pass, Special Mention, Substandard, and Doubtful categories for commercial, municipal, and real estate portfolios.
  • Loan restructuring activity, including extended maturities, principal forgiveness, and interest rate reductions, is tracked and disclosed.
• Non-Performing and Performing Loans:
  • Disclosure of performing and non-performing assets across all major loan classes (commercial, municipal, consumer, real estate, construction, automobile, home equity, and other loans).
  • No significant increases in non-performing loans or other credit quality deterioration reported for 2025.

Other Noteworthy Disclosures

• Lease Accounting: Future minimum lease payments are calculated at the company’s incremental borrowing rate and are deemed immaterial; estimated executory costs (e.g., taxes, maintenance) not deducted due to immateriality.
• Federal Reserve Requirements: No reserve requirement balances as of December 31, 2025.
• Net Deferred Loan Costs: Noted balances for deferred loan costs and unamortized fair value mark discounts on acquired loans.

Potential Price Sensitive Information

• Capital Structure Stability: No issuance of preferred stock or significant changes in common stock structure, supporting capital base stability.
• Credit Quality: No material adverse change in credit quality reported, which is supportive for share value.
• Cybersecurity: No material cybersecurity events reported, reducing the risk premia for investors.
• Insider Trading: No new or terminated trading plans; policies in place, which adds to governance comfort.
• Securities Portfolio: A shift from available-for-sale to held-to-maturity securities could impact future interest income and market risk profile.

Conclusion

Overall, Fidelity D & D Bancorp, Inc. reports stable financials and governance. There are no material events or adverse developments for 2025. The capital structure remains robust, credit quality is stable, and no cybersecurity or insider trading concerns are noted. The reduction in available-for-sale securities and increase in held-to-maturity securities may reflect a strategic shift in asset-liability management. These factors, while not immediately price-moving, reinforce the company’s stability and may support positive investor sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full SEC filings and consult professional advisors before making any investment decisions. The summary above does not guarantee the future performance of Fidelity D & D Bancorp, Inc.

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