Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Investor Presentation (December 2021)
23 slides from Fidelity D & D Bancorp's investor presentation, Dec 9, 2021
Slide 1: Investor Presentation December 9, 2021
NASDAQ: FDBC INVESTOR PRESENTATION DECEMBER 9, 2021
Slide 2: Forward-looking statements
Forward-looking statements Certainof the matters discussed inthis Investment Presentation may constitute forward-looking statements for purposes ofthe SecuritiesAct of 1933, asamended, andthe Securities Exchange Act of 1934, as amended, andas such may involve knownand unknown risks, uncertainties an
Slide 3: Who We Are
Who We Are Vision Statement: Fidelity bankers are passionate about success and committed to building strong relationships through exceptional client experiences. Fidelity Bank will be the best bank for our bankers to work, our clients to bank, our shareholders to invest, and for our community to pro
Slide 4: Fidelity D & D Bancorp, Inc. Overview
| Fidelity D & D Bancorp, Inc. Overview Company Overview fea Honesdale Headquarters Dunmore, PA Ticker / Exchange FDBC/ NASDAQ Market Capitalization $295.8 Outstanding Shares 5,688,730 Year Established 1902 e wa Branches 23 See S69 : a) bax suowsbitg Hadlelorg ech Financial Overview AY x Total Asset
Slide 5: Key Highlights
| Key Highlights High performing community bank with a proven track record of strong organic growth in a low growth legacy market + Low-cost core deposits + 7 consecutive years of increased dividend payout + Proven ability to successfully complete acquisitions and integrations * Credit culture that
Slide 6: Making our Move
| Making our Move 2017 2018 2019 Fidelity D & D Bancorp, Inc. was addedto the broader market Russell 2000 index. $1 Billion Attained total assets Fac of $1 billion through idelity BANK YW Branch expansion to organicgrowth. Back Mountain. Currently $38 million in deposits. LANDMARK ‘Community Bank Ac
Slide 7: Deposit Market Share
| Deposit Market Share Lackawanna, PA Luzerne, PA wor | mast | manst wor | mianat | manst rant | mattuton cranes | “eo) | ‘Shaw Man | inattston cranes | “teoy | ‘Shoe 7 aaaK 1 PNCFinancil Senin Groupe. 12 aaa.iae 23.6% Northampton, PA 1aegase 180% 10 nox 2 Mar ban Cap. 101300912 167% 2_aton nani Car
Slide 8: Your Fidelity Bank Team
Slide 9: Community Involvement & Accolades
Community Involvement & Accolades 8,293 hours donated by Bankers since 2017 to community organizations through the Volunteer Time Off program. $1.3 million given in philanthropic supportto organizations, groups and schools throughout the community in 2020. e of the "Top 200 nity Banks" in the U.S. b
Slide 10: Investment Thesis
Investment Thesis High Performing Community Bank © Above peer group average total return to shareholders. Strong organic and inorganic growth since 2016: ~ Assets: 204% Gross Loans: 132% - Deposits: 208% ~ Net Income (YTD annualized): 185% Well Diversified Balance Sheet ¢ Loans mix is 57.9% commerci
Slide 11: Acquisition of MNB Corporation
Acquisition of MNB Corporation + Extended Fidelity Bank franchise into Lehigh Valley markets with stronger demographics and economic growth + Low risk, mature franchise with long-term relationships + Organization had excellent credit quality * Core EPS accretion of 11% in 2020 and 17% in 2021 + Was
Slide 12: Acquisition of Landmark Bancorp, Inc.
Acquisition of Landmark Bancorp, Inc. Materially increased Fidelity Bank’s market share in Luzerne County + Superior cost saves and rightsizing Landmark's profitability will drive attractive EPS accretion of 13.6% in 2022 + Defended against a competitor entering Luzerne and Lackawanna Counties + Mat
Slide 13: Wealth Management
Wealth Management Asset Management Ser Team Based Model Througha client centric approach, fs Pil. ig Focused Fi ial Plannit Wealth Management non-interest Seen ese peek income increased from $1.3 million ral dn] etiioment Planning in 2016 to $3.1 million in 2021 (annualized) or 138%. Investment Mana
Slide 14: Strategy & Initiatives
Strategy & Initiatives timize Branch Network Continue digital evolutions ortunistic acquisitions of vhole-banks Continued organic growth in legacy and acquired markets through Fidelity Bank’s relationship management strategy. Focus on integration of Fidelity Bank’s culture and realize revenue enhanc
Slide 15: Outstanding COVID-19 Accommodations as of 9/30/2021
Outstanding COVID-19 Accommodations as of 9/30/2021, umber of (dota in See ree eo COVID-19 Response thousand) 30/2020 6/30/2020 9/30/2021 connec aT s Not owner occupied 97 $66,283 * Fidelity Bank accommodated — —a : over 1,429 loans, totaling $202 [raped erg a os million under the provisions of Co J
Slide 16: Paycheck Protection Program
Paycheck Protection Program Originated over $236 million in 2,573 PPP loans, generating over $10 million in fees including $2.3 million unearned. - First Round - $159 million in 1,051 loans ($5.6 million in fees earned) - Second Round - $77 million in 1,022 loans ($4.4 million earned, $2.2 million u
Slide 17: Financial Performance & Highlights
| Financial Performance & Highlights FY FY FY FY As of and for the nine 12/31/2017 12/31/2018 12/31/2019 12/31/2020 months ended 9/30/2021 Balance Sheet Total Assets $863,637 ‘$981,102 31,009,927 51,699,510 $2,411,789 Total Net Loans $640,353 $724,024 $745,306 31,135,236 31,420,386 Total Deposits $7
Slide 18: Balance Sheet Mix
Balance Sheet Mix Loan Portfolio Deposit Base CommercialR/E Owner 184% Residential Mortgages 24.5% Commercial& Industria 17.3% Indirect Auto 97% Direct Consumer Commercial R/E Non Owner 7.8% 22.2% * Gross loans of $1.4 billion which includes $64.7 million of PPP loans * 4.45% loan yield in Q3 2021 *
Slide 19: Yield & Cost Trends
| Yield & Cost Trends Yi on Loans 350% 328% 17m 3.18% ial 4.51% 3.00% 455% wise 441% 2.50% 435% 4.28% 42% 429% 2.06% 2.00% 4.15% 1.50% 3.95% 1.00% 3.75% 2017201 20192020 YTDQ8 2021 2017 2018 = 2019-2020 YTD32021 1.00% oa en ia 076% 3.50% 330% 323% 0.60% 050% 3.00% 039% 0.40% pa 2.50% 0.19% 0.20% 2.0
Slide 20: Profitability Trends
| Profitability Trends Return on Average Assets 130% oN cme 1.18% asi 1.03% ae 1.00% aon 087% 080% 070% 0.60% 050% 2017 2018 2019 2020 yr a3 2021 Net Income 18,000 15500 16,222 15,000 5500 13035 ‘i am 11576 10.500 9,000 7500 6000 2017 2018 2019 2020 yr 03 2021 + Source FOOC 10 an 10-08 dis in housan
Slide 21: Credit Quality Trends
| Credit Quality Trends Nonperforming Assets /Total Assets 080% 0.73% 160% 1.42% 0.70% 0.68% 1.40% 134% 120% 127% 0.5036 1.20% 112% 0.5036 1.00% 0.4036 0.805% 0.3036 0.25% 0.5036 0.2036 0.4036 0.1056 0.2056 0.00% 0.00% 2017 2018 2019 2020 32021 2017 2019 2020 © 32021 Net Charge-Offs (Recoveries) / A
Slide 22: Shareholder Value
| Shareholder Value 20,000 eee cre: aes: $4.00 $200,000 $185,282 290 $303 $282 16,222 $180,000 eer 150005 $3.00 160,000 11,006 aha ‘$140,000 1000 8716 $120,000 singe 100,000 93388 5,000 1.00 90,000 60,000 ° $0.00 40,000 2x7 2o18_—=S 20192020 sa2021 ais 2m19,= 202002021 Tangible Book Value Per Share
Slide 23: Stock Market Performance
| stock Market Performance Market Performance —Last ‘Summary Maket Profile 1 I 1 Ticker OBC 1 Exchange NASDAGGM ame 1 1 Stock Price $5043 1 Market Cap. ($M) $207 1 Dividend Yield 238% 100 aa! 1 Average Daily Value (Months) [Avg Dally Volume (Shares) 4363 woo 1 Avg Dally Volume (8000s) $20 i fone | W
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