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Fidelity D & D Bancorp net income saw 15% increase

Staff writer ▼ | August 1, 2013
Fidelity D & D Bancorp, parent company of The Fidelity Deposit and Discount Bank, announced net income for the quarter ended June 30, 2013 of $1.5 million, an $0.2 million, or 15% increase compared to Q2 2012.
Fidelity D & D Bancorp
Fidelity D & D BancorpFidelity D & D Bancorp, parent company of The Fidelity Deposit and Discount Bank, announced net income for the quarter ended June 30, 2013 of $1.5 million, an $0.2 million, or 15% increase compared to Q2 2012.


Earnings improvement occurred by maintaining the level of net interest income from loan growth, while producing more other income and incurring less operating expenses over the previous year's second quarter. The added revenue improved the return on average assets (ROA) to 1% for the second quarter of 2013 compared to 0.87% for the same 2012 quarter.

Earnings per share on a diluted basis were $0.64 and $0.57 for the three months ended June 30, 2013 and 2012, respectively.

"We are all very pleased with the results of the second quarter of 2013 which are a direct reflection of management's continued focus on and execution of its strategic plan. Asset quality showed a marked improvement while also achieving solid loan growth," stated Daniel J. Santaniello, president and chief executive officer.

Net income for the six months ended June 30, 2013 was $2.9 million, an increase of $0.3 million, or 13%, compared to net income of $2.6 million for the six months ended June 30, 2012.

The Company's assets increased $13.7 million, or 2%, to total $615.2 million at June 30, 2013 from $601.5 million at December 31, 2012. The growth resulted primarily from adding $27.1 million in net loan balances by deploying excess cash balances, sold loans and investment portfolio run-off of $9.2 million, $5.2 million and $4.2 million, respectively, plus $4.9 million in deposit growth during the first half of 2013.

Net interest income was preserved at $5.2 million for the quarters ended June 30, 2013 and 2012. The redeployment of lower yielding cash and securities run-off into $34.7 million average balance loan growth while maintaining average balance of earning assets mitigated the effect lower interest rates had on interest income earnings.

Net interest income increased $146 thousand, or 1%, to $10.4 million for the six months ended June 30, 2013 from $10.3 million recorded during the same period of 2012.

Net interest margin was 3.84% during the first half of 2013 compared to 3.77% during the first half of 2012, an improvement of 7 basis points from lowering rates on interest-bearing liabilities by 10 basis points but, more so, the redeployment within average earning assets base, stemming from the average balance growth of $34.7 million in loans.


 

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