Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Shareholder Meeting (May 2017)
49 slides from Fidelity D & D Bancorp's shareholder meeting presentation, May 4, 2017
Slide 1: Welcome!
F, Welcome!
Slide 2: Fidelity's Vision Statement
Fidelity’s Vision Statement Our Vision. Our Values. We are passionate about success and committed to building strong relationships through superior service. We will be the best bank for our employeesto work at, our customers to bank with, our shareholders to invest in, and for our community to prosp
Slide 3: Service Year Recognition
Logan Hansman Amanda Burke Carrie Hart Katie Wilcox Kristi Cleveland Pat Boles Rich Ainey Service Year Recognition Patricia Curley Cyndi Uchic kristin Grow Maryann Ellefsen Mary MeNichols Christine Onder Michelle Bistran Rona Covalesky Catherine Plishka Lirika Nashi Kevin Scotch Dan Santaniello Nico
Slide 4: Congratulations
Congratulations BANKER OUTSTANDING OF THE YEAR SERVICE PARTNER June A. Capooci Jill Marie Valentini Kristin Grow Customer Service Representative Retall Branch Manager Customer Care Center Manager Dunmore Bi g¢ Branch Fidelity BANK
Slide 5: Congratulations Elaine Motichka!
Congratulations Elaine Motichka! Congratulation Elaine on your upcoming retirement and all the years of great service you have provided to Fidelity Bank! Elaine was hired at Fidelity 6/17/1968! Fidelity ens
Slide 6: 2017 Annual Meeting of Shareholders: Supplemental Financial Information
Fidelity D & D Bancorp, Inc. 2017 Annual Meeting of Shareholders Supplemental Financial information Yearended December 31, 2016 and First Quarter 2017 Salvatore R. DeFrancesco, Jr., CPA, CGMA ‘Treasurer and Chief Financial Officer May 2, 2017
Slide 7: Forward-looking Statements
Forward-looking Statements Ths presentation contineforwerdiookng attements thet describe ourfutre plas tateies and expectation. Forwardootng statement can be “ented bythe et that they donot ete sty to eto or cuenta, They often ncade words uch “beSeve “expec” “entciet,” “intend ‘pan? “estimate” words
Slide 8: Income Statement Summary
Income Statement Summary To-Date December 31 sands ecceptpershareinfrmaton —_Yea 2016 _2015 "Variance Net Interest Income S 25137 § 23,485 $1652 7% Provision for Loan Loss 11025. 4,075 (60) 96 Net inferest Income afer Loan Loss 24112 2.410 4702 8% Gain on sale of securities, 8 a1) 29% Gain on sale o
Slide 9: Net Interest Margin
Net Interest Margin 450% 428% 4.00% 378% 3.50% 3.28% 3.00% 2.78% 2.60% + 2012 2013 ania 2018 2016 Years ‘The UBPR peer groupareallinsured commercial banks having assets between $300 million and $1 billion. =e UBPR Peer Crolt
Slide 10: Condensed Balance Sheet
Condensed Balance Sheet Dollars in Thoweands December 31, December 31 yrD 2016 2015 Variance Assets Cash & cash equivalents 25843 § 12277 | $13,586 | 110% Securties 130,037 125,232] 4,805] 4% Loans and Leases 600,348 557,620| 42718] 8% Allowance for Loan Loss (9.364) (9.527)| 463 | _-296 Net Loans 5
Slide 11: Balance Sheet Growth
Fidelity D & D Bancorp, Inc. Balance Sheet Growth ($000) 900,000 ‘00,000 700,000 600,000 500,000 400,000 300,000 200,000 +100,000 792,944 729,358 erm 676,485 703,459 623,825 Ca ao944 Boers. cao 588,430 514,560 529,698 506,327 & 424504 69716 2012 2013 2014 2015 2016 SSdepats SaNtlons Rarenge SEAR]
Slide 12: Unaudited Income Statement Summary
Unaudited Income Statement Summary Dols in Th Variance: Net Interest Income § 540 9% Provision for Loan Loss 475 117% Net Interest Income after Loan Loss: 365 6% Gain on sale of loans TT 165% Depost service charges 55 11% Other Income 487__ 17% ‘Total Other Operating Income A18 25% Salaries and Bene
Slide 13: Net Interest Margin
B Net Interest Margin 4.00% 378% + = 3.60% + Qt 2016 2.2016 aa 2016 Qa 2016 Qi 207 Quarter Ended +—UBPR Peer Group Fidelity
Slide 14: Condensed Balance Sheet
Condensed Balance Sheet March 31, December31, |) V0 YOY 2017" 2016 Variance: Variance Assets Cash & cash equivalents s 29116 s 25,8435 3.273 $ (11,975 Securities 184223 130,037 | 24,186 25,550 Loans and Leases 623.130 600,348 | 22.782 65.837 Allowance for Loan Loss (9543) 364) (184) (164) Net Loans
Slide 15: Capital Adequacy Ratios
Capital Adequacy Ratios March 31, December 31, March 31, 2017 2016 2016 Total - Risk Based Capital 14.4% 14.9% 15.1% Tier | - Common Equity 13.2% 13.6% 13.9% Tier | - Risk Based Capital 13.2% 13.6% 13.9% Leverage 9.9% 10.3% 10.1%
Slide 16: Core Earnings Per Share
Core Earnings Per Share CAGR 10.54%
Slide 17: Dividend Per Share
Dividend Per Share size CAGR 5.53% _ Fidelity, ass
Slide 18: Total Return Performance
FideltyD &D Bancorp, Inc. Total Return Performance een 94 9 arson. ie
Slide 19: Loan Growth
Loan Growth (Dollars in Thousands) CAGR 7.95% Fry
Slide 20: New Loans Originated 2016
New Loans Originated 2016 - 2 eS a Bsr ~ Over $274 Million a € ~ iy ‘ '
Slide 21: Mortgage
Mortgage * #1 Mortgage Lender in Northeastern PA 7* year ina row * Best Bank for Mortgages scranton times
Slide 22: Retail and Business Checking
Retail and Business Checking (Dollars in Millions) CAGR 8.55% Fidelity ero
Slide 23: New Relationship Retail Checking
New Relationship Retail Checking (not Free!) * Unique Products per household + 2016-4.28 vs + 2010-3.97 * Profit Per Household + 2016-$216 + 2010-$55 * 2016 Household Retention Total Bank 91% vs Peer Benchmark of 85% Fidelity din
Slide 24: Non-interest Income
Non-interest Income (Dollars in Thousands) CAGR 9.13% Felelity exo
Slide 25: Wealth Management
Wealth Management ( Dollars in Thousands) ors Es ma ay = CAGR 3.70%
Slide 26: Wealth Management
Wealth Management Bill has ranked 15 out of 400 Invest Financial Representatives making him in the top 4% of the United States, Congrats Bill! William P. McAndrew Senior Vice President and Investment Advisor Fidelity six
Slide 27: Asset Quality
Dec Mar Asset Quality Total Past Due & Non Accrual % g & June Sep Mar June Sep Dec 2014 - 2015 - 2016 Fidelity ears
Slide 28: Continuous Improvement
Continuous Improvement * Eynon into Peckville Consolidation * Wayne West Scranton Bank Branch * Gratz Trust Department * Fidelity At work + EMV Chip Card
Slide 29: Above the Crowd Financial Performance
Above the Crowd Financial Performance * Top 200 Bank in the Country american ganker — Fourth Consecutive Year — ¢ 5 Star Bauer Rating — Fourth Consecutive Year
Slide 30: Delivery of the strategic vision
GF, Delivery of the strategic vision.
Slide 31: Get closer than ever to your customer
——— “Get closer than ever to your customer. So close that you tell them what they _ need well before they realize it NS ‘ themselves.” ee -Steve Jobs, Apple
Slide 32: The Relationship Model
The Relationship Model
Slide 33: The Fidelity Bank Relationship Culture
The Fidelity Bank Relationship Culture * Based on a genuine relationship " Meets and exceeds client and prospect expectations = A proactive sales process that delivers results What is important to individuals, families and local businesses needs to be what is important to us. Fey one
Slide 34: Unaided Brand Awareness
Unaided Brand Awareness 2016 Blind awareness study — conducted 8/16 - 13.3% share — 2" to PNC * Fidelity Bank outperforms the local competition on multiple criteria when giving a rating of extremely satisfied Criteria Friendliness of Tellers Professionalism Bank Mgt. Appearance of Branches Reputatio
Slide 35: Leaders in customer experience lead in profits
@ Leaders in customer experience lead in profits * Companies that lead in customer experience outperform financially the $ & P 500 by 29% and outperform the customer experience laggards by 75%. Company Profit Customer Experience Benchmark Fidelity sins
Slide 36: Surveying the customer experience
Surveying the customer experience NPS FOR MORTGAGE NPS FOR RETAIL NPS FOR BUSINESS NET PROMOTER SCORE
Slide 37: Decline in teller transactions
Decline in teller transactions + Tellertransactions are dropping + Electronictransactionsare increasing...such as debit cards, ACH, direct, deposit, web bill pay, and person to person payments —
Slide 38: Customers aren't abandoning branches
Customers aren’t abandoning branches, but they are using them less. * They still use them = 61% still visit a bank branch at least once per quarter + Itis the primary sales channel — Branches are still the primary channel for customer acquisition and consultative sales for both consumers and small b
Slide 39: Universal Banker
Universal Banker Enhanced customer experience Higher level of Banker Refocus on sales growth, taking low-value interactions to other channels Improved employee retention and satisfaction Improved customer satisfaction
Slide 40: Enhanced Responsive Delivery channels
Enhanced Responsive Delivery channels Isyour business ready to ‘accept Credit Card payments? Inless than 6 months of launchiny Fidelity ons
Slide 41: Business Mobility and Fidelity Mobile
o7g Business Mobiliti Fidelity Mobile Y coming in 2017 Banking OPEN | Fidelity Dep. New Custom Branded Anytime Mobile App Fadelity dine | j= NewAnytime Tablet Banking App
Slide 42: Focus on Training 2017
x S&S AR &: Focus on Training 2017 More hours and initiatives approved then ever before Universal Banker Training Fidelity Bank University Integrated Teller Training Products and Services training Continuous Improvement by Learning our craft Fidelity wavs
Slide 43: Our Community Service can't be matched!
Our Community Service can’t be match!
Slide 44: Community Service Total Hours
Our Community Service can’t be match! 876 TOTAL HOURS! $580 thousand of Financial Support
Slide 45: New Markets, New Initiatives
New Markets, New Initiatives Luzerne County. Filelity eave
Slide 46: Luzerne County Advisory Board
Luzerne County Advisory Board * William Joyce— Chairman * Thomas Blaskiewicz * Brent Berger * Thomas Egan * John Jablowksi * Atty. Lawrence Moran Atty. Cathy O’Donnell * David Rudis, CPA Fideli y BANK
Slide 47: New Dallas Location
New Dallas Location
Slide 48: Positioning the Corporate Center for the future
Positioning the Corporate Center for the future. 3D Render of Corporate Headquarters Fidelity sin
Slide 49: Looking Down the Road
Looking Down the Road “If we don't like change, we will like irrelevance even less.” -General Eric Shinseki “Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to
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