Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Investor Presentation (May 2018)
43 slides from Fidelity D & D Bancorp's investor presentation, May 2, 2018
Slide 1: Best Bank
Fidelity BANK
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements that describe our future plans, strategies and expectations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “be
Slide 3: 2017 Highlights
F, 2017 Highlights
Slide 4: Best Bank
Slide 5: Bank Strong, Bank with Fidelity
Bank Strong, Bank with Fidelity 116 years Fidelity Bank in Dunmore, Pa 1903 Fidelity is proud to be a locally owned and operated community bank serving the individuals, families and businesses of our area for over 116 years. We're continuing our mission of serving our area as a trusted financial adv
Slide 6: Best team: Fidelity Bankers
‘BEST team 180 FIDELITY BANKERS PASS! DELIVERING:A, 1) nyt EN idelity BANK
Slide 7: Strategic Acquisitions
Strategic Acquisitions Integrated the purchase of Wayne Bank’s West Scranton Office into Fidelity Bank’s West Scranton Office Acquired Gratz Bank’s Trust Department The Gratz Bank to Transfer Trust Accounts and Business to Fidelity Deposit and Discount Bank Fidelity BANK
Slide 8: Market Share - Deposits
Market Share - Deposits * Ranked 3" out of 18 Banks in Lackawanna County. ‘OD WNNYMWOVT @ Moosic Fidelity BANK
Slide 9: Community Bank Offices
10 Community Bank Offices
Slide 10: Stock Upgraded - October 6, 2017
Stock Upgraded - October 6, 2017 Fidelity D & D Bancorp Upgraded and Listed on the Nasdaq Global Market Stock Exchange Fidelit BANK
Slide 11: Increased Dividend
S) ¢ Increased Dividend 4 out of the last 5 Years ¢ Bonus Dividend Declared for the 5th Consecutive Year 90 Dividends Per Share (Dollars) 85 $0.88 80 15 10 65 13° °'14 15 1617 Fidelity BANK ~~
Slide 12: Digital Banking
Digital Banking Fidelity Bank Website 2008 Unsecured Personal Loan 999% APR Current Fidelity Bank Website Bank Website 2018 The evolution to a responsive design that adapts to all devices in today’s marketplace.
Slide 13: 2017 Fidelity Bank Accolades
F) 2017 Fidelity Bank Accolades: #1" IN NORTHEASTERN PENNSYLVANIA a wi 7 YEARS IN A ROW.” Best Bank number one mortgage lender in Northeastern Pennsylvania. * Voted “ 2017 Best Bank” by the Times Tribune readers * Five Star Bauer rating, for the 15" consecutive quarter. * ABA’s Top 200 Community Ban
Slide 14: Volunteer Hours to our community
Volunteer Hours to our community 2017 Bankwide total volunteer hours: 2017 Total Bankers 1,369 Ey 2017 Total of these that ) are after hours (unpaid) Ng 2017 Bankers participating 57 after hours: 45 Fidelity san Fidelity BANK ““
Slide 15: Tax Cuts and Jobs Act of 2017
Tax Cuts and Jobs Act of 2017 * Only locally headquartered company to share the tax benefit with their employees in the form of a bonus. * $1,000 for Full-Time Bankers ¢ $500 for Part-Time Bankers * Created Fidelity D & D Charitable Foundation * Seed Funded with $500,000 Fidelit BANK
Slide 16: Financial Performance
F, Financial Performance
Slide 17: Key Financial Data
Key Financial Data 2017 2016 % change INet Income ($000) $8,716) $7,963| 13% IEPS (diluted) $2.33 $2.09 12% ROAA 1.03 1.02%| ROAE 10.34: 9.64%| IFDBC Price® $43.01) $24.37| 76% IBook Value $23.4¢ $21.91] 7% Price/Earnings 17.57 11.50x| IPrice/Book Value 181 1.11 [Dividend Per Share $0.88) $0.83} 6%
Slide 18: Assets
875 Assets (Dollars in millions) 860 $864 800 7715 750 725 700 675 650 625 610 570 13 14 ‘15 ‘16 7 Compound Annual Growth Rate = 8.47% Fidelity BANK
Slide 19: Total Loans & Leases, Net
640 Total Loans & Leases, Net (Dollars in millions) $631 625 610 590 560 530 500 470 455 440 425 410 13 14 "15 16 7 Compound Annual Growth Rate = 7.63% 19 Fidelity BANK
Slide 20: Loan Diversity (Portfolio)
Loan Diversity (Portfolio) 12/31/17 Residential Construction 1.5556 C&l Residential RE 21.44% CRE Non-owner Occupied 14.5456 Consumer Other 0.885% Auto Loans& Leases’ 13.08% Occupied Installment Construction 47.13% 4.28% 0.97% Fidelity BANK
Slide 21: NPAs as a Percentage of Loans and OREO
2.50% 2.30% + 2.10% 4 1.90% 1.70% 1.50% + 1.30% 1.10% 0.90% 0.70% 0.50% + NPAs as a Percentage of Loans and OREO 186% 154% 2.30% 1.75% 0.98% 2013 2014 2015 2016 2017
Slide 22: Allowance as a % of Non-Performing Loans
S 25 15 Os Allowance as a % of Non-Performing Loans 2.67% 2013 2014 2015 2016 2017
Slide 23: Deposits
7715 Deposits (Dollars in millions) 750 720 $730 700 670 630 590 550 535 520 505 490 Compound Annual Growth Rate = 8.35% 13 14 15 16 ‘Ad, Fidelity BANK ~
Slide 24: Deposit Composition
Deposit Composition 12/31/17 co $107,066 14.66% Non - Interest Bearing $178,631 24.47% = Non-interest Bearing MMDA $111,921 B interest-bearing Checking Bae w= Savings & Clubs = MMDA CDs Interest Bearing Savings & Clubs Checking $129,992 $202,536 17.80% 27.18% Fidelity BANK
Slide 25: Net Interest Margin
Net Interest Margin Net Interest Margin 3.90% 3.80% 3.70% 3.60% 3.50% 3.40% 3.30% 3.20% 2013, 2014 2015, 2016 2017 mmm FBC! 3.80% 3.75% 3.70% 3.72% 3.70% i Peer 357% 3.55% 3.49% 3.45% 3.52% Peer Source: SNL Financial Mid- Atlantic: DE, DC, MD, NJ, NY, PA Banks $500 Million to $2 Billion in Assets Fi
Slide 26: Wealth Management Revenue
‘$1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $o Wealth Management Revenue 5,188,678 3.038737 28388 2013 2014 2015 2016 2017 mTrust $630,358 $674,174 $739,330 $721,447 $1,040,563 ™ Financial Services $558,320 $544,563 $504,008 $585,959 $595,840
Slide 27: Return on Average Assets
1.20% 1.10% 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% Return on Average Assets 2013, 2018 2015, 2016 2017 mn FDBC| 1.15% 0.96% 1.00% 1.02% 1.03% —u—Peer 0.73% 0.87% 0.80% 0.82% 0.71% Peer Source: SNL Financial Mid- Atlantic: DE, DC, MD, NJ, NY, PA Banks $500 Million to $2 Billion in Assets Fidelity BANK
Slide 28: Return on Average Equity
Return on Average Equity 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 2013 2018 2015 2016 2017 mmm FBC! 11.70% 9.12% 9.55% 9.64% 10.34% Peer 7.65% 5.88% 3.34% 8.20% 7.01% Peer Source: SNL Financial Mid- Atlantic: DE, DC, MD, NJ, NY, PA Banks $500 Million to $2 Billion in Assets Fidelity BANK
Slide 29: Capital Ratios
Capital Ratios Tier 1 Risk-Based Ratio wee 13.97% | [ 13.71% mee 1370% 2013 2018 2015 2016 2017 Leverage Ratio Total Risk-Based Ratio aeaae 15.25% 10.32% toss 10.52% 34.99% 46a0K 14.95% l I I ' L | 2018 2018 2015 2016 2017 Se apis 2018 2017 Fidelity BANK
Slide 30: Total Return Performance
400 Total Return Performance 360 300 + Fidelity D & D Bancorp, Inc. m= NASDAQ Composite Index 4 SNL Bank Pink > $500M Index g 250 $ 3 2m 160 400 50 49312 193113 42314 493115 193116 493117 Period Ending Index RM? WMS 12314 12731516 12/34/17 Fidelity D & D Bancorp, Inc. 700.00 135.01 17469 188.83 2050
Slide 31: Strategic Initiatives
F, Strategic Initiatives
Slide 32: Deliver Relationship Banking
Deliver Relationship Banking | | The Fidelity Bank Sales 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 u
Slide 33: Continue to build a team of trusted advisors
Q Continue to build a team of trusted advisors To win more business by deepening the relationship with existing clients and bringing new clients to Fidelity Bank Fidelity BANK
Slide 34: Market Expansion
Market Expansion Mountain Top "OD WNNYMYOVT
Slide 35: Business Mobility
Business Mobiliti Digital Bank Online applications for consumer deposits, loans and mortgages Mobile app for business and consumers
Slide 36: Wealth Management Division
a WEALTH MANAGEMENT DIVISION as Locally-based Wealth Management Division. ° Trust Service * Retail Brokerage and Investment Management Team is comprised of 9 professionals. Begin External Branding Continue to Build out the Team — Talent Acquisition Disciplined Acquisitions Cm LM Sueitiy Bank
Slide 37: Russell 2000 Index
Russell 2000 Index May 11, 2018 — Market Snapshot date for price and share data June 9, 2018 - Preliminary list of Reconstitution changes released June 15, 2018 — Update to preliminary list of Reconstitution changes released June 22, 2018 — Reconstitution changes final after the close of the U.S. ma
Slide 38: Financial Information
F, Financial Information Performance 1* Quarter of 2018
Slide 39: Key Financial Data
Key Financial Data 1st Q 2018 1st Q 2017 % change INet Income ($000) $2,528) $1,98 28% INet Income Pre-Tax ($000) $3,034] $2,661) 14% IEPS (diluted) $0.67) $0.53) 26% ROAA 1.175 0.99: ROAE 11.75 9.85 FDBC Price* $49.05) $27.74 77% [Book Value $23.32) $22.18} 5% Price/Earnings 19.76% 12.68x IPrice/Bo
Slide 40: Market Data — March 31, 2018
Market Data — March 31, 2018 ¢ 3,751,480 Shares Outstanding ¢ 1,842 Shares Average Daily Volume * $49.23 Closing Market Price on 3/31/18 * 2.1x Price to Book Value ¢ $186 Million Market Capitalization * $0.24 per Share Dividend * 1.85% Dividend Yield Fidelity BANK
Slide 41: Thank You!
Thank You!
Slide 42: Headquarters, Leadership and Locations
HEADQUARTERS: 101 North Blakely Street, Dunmore, PA LEADERSHIP: Daniel J. Santaniello President and Chief Executive Officer Timothy O’Brien Senior Executive Vice President and Chief Lending Officer Salvatore R. DeFrancesco, Jr. Executive Vice President and Chief Financial Officer Michael J. Pacyna,
Slide 43: Best Bank for Clients to Bank and Shareholders to Invest - 2017
BEST BANK FOR CLIENTS TO BANK - 2017 *Increased new online deposit account openings and new loans by over 112% by investing in enhanced retail and business online and mobile banking applications *Originated more residential mortgage loans in Northeastern Pennsylvania than any other financial institu
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