Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — FY2024 Earnings Presentation
28 slides from Fidelity D & D Bancorp's earnings presentation, Jan 29, 2025
Slide 1: Investor Presentation January 29, 2025
BANCORP sx: NASDAQ: FDBC INVESTOR PRESENTATION JANUARY 29, 2025
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Slide 3: Vision Statement
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 prosper. idelit
Slide 4: Fidelity D & D Bancorp, Inc. Overview
Fidelity D & D Bancorp, Inc. Overview Company Overview Thee / xchange osc /nasosa Market captalzaton sve3277 ussanding shares sens ear etabanes 1902 ranches By oe Financial Overview rots Loan S.e00856 UTM ROME osee | TotalDeposes $2,340.20 THN am eons orposs 76S0% LIMEfHe Rate cy ica ania weet 720%
Slide 5: Key Highlights
Key Highlights High performing ‘community focused Low-cost core deposits bank with a proven track with strong market share record of strong organic Inlegacy market ‘growth in alow growth Tegaey market Consent crt Proven ait 29 canuethe hs eo om eee Seattt snd Sry ands cee incradon forte et Commitmen
Slide 6: Making our Move
| Making our Move $2.6 Billion and Crest Unions ‘Americas Best Regional Banks and Credit Unions
Slide 7: Deposit Market Share
Deposit Market Share Lackawanna, PA. Lureme, PA
Slide 8: Your Fidelity Team
Your Fidelity wan Team Daniel. ssntanielo Salvatore Defrancex, | Eugene. Wabh ‘uth Trkington lena. acy Present vecutwe Vie Presdert ExecveVce resent exactve Vice resent | ExcctNe Vice resort Cretececutneottcer | | Chit Faccal ction [Chet Operating Oticer [GeerareetaaneO%=| | Chet endingoicer Joined
Slide 9: Investment Thesis
| Investment Thesis bh Performing Community Bank ‘+ Above peer group average total return to shareholders. Strong growth since 2020: + Assets: 52.1% = Gross Loans: 56.7% + Deposits: 55.1% = Net income: 59.5% Diversified Balance Sheet ‘+ High quality investments portfolio 21.7% of total assets. Low-C
Slide 10: Acquisition of MNB Corporation
Acquisition of MNB Corporation + Extended Fidelity Bank franchise into Lehigh Valley markets with strong demographics and economic growth. + Low risk, mature franchise with long-term relationships. + Organization had excellent credit quality. + Core EPS accretion of 17% in 2021. ‘+ Was marginally ac
Slide 11: Lehigh Valley Expansion
Lehigh Valley Expansion Why Lehigh Valley? ‘Super regional financial institutions dominate market share. Organic growth opportunity with median household income $80k; median home value $236K. Differentiated client experience, ‘community bank carve out potential (voted Best Bank in the Lehigh Valley
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, attractive EPS accretion of 13.6% in 2022. + Defended against a competitor entering Luzerne and Lackawanna Counties. + Mature f
Slide 13: Wealth Management
Wealth Management Fidelity Through a client centric approach, A Eee ae Single Advisor Model Wealth Management non-interest income increased + Planning Focused Financial Planning from $2.5 ion in 2020 Repent tery + Trust Planning and Individual Retirement Administration Planning or 17.08% CAGR. Estat
Slide 14: Strategic Initiatives & Strategy
Strategic Initiatives & Strategy Strengthen Optimize the Create awell _ Invest in. Continue to evolve Ensure a Fidelity’s Engines of Growth defined and Human Talent high-performing distinctive Core Foundation executable culture Fidelity Brand Strategic Plan Strengthen the Bank’s Core Foundation Inve
Slide 15: Financial Performance & Highlights
Financial Performance & Highlights Balance sheet Totals: Sussgsio —$zatoioe = «$2a7ea72—saso3ass gasses Totanet oars suaas26 §—Siassi2n1 Si san.os2 = S.567749 © S.78190 Totaldeposts $1s09505 §269.865 Szuesm3—«Saaseans 52340820 TotalEquty $i6se70 “$214,728 $162,950 3189473, $203,963, Loan/Deposts (6)
Slide 16: Balance Sheet Mix
Balance Sheet Mix Loan Portfolio son sis siaho ate sie + Gross loans of $1.8 + 5.43% loan yield year to date 12/31/2024 + 56.9% of loans are C&l and CRE Loans were up $114 million from 2023 or T%. Non-Owner Occupied CRE at 218% of Total Capital. Loan-to-Deposit Ratio of 76.9%. Consumer Loans include
Slide 17: Balance Sheet Mix
Balance Sheet Mix Deposit Base 7 *+ Cost of Total Deposits up 59 bps from vreont 2023. + Cost of Interest-Bearing Liabilities was up 67 bps from 2023. + Deposits increased $182.4 million or 2.5%, + Non-interest Bearing Deposits were 23% of total deposits at year end 2024. + Loans-to-Deposit Ratio wa
Slide 18: Yield & Cost Trends
| Yield & Cost Trends Yield on investment Securities Yield on Loans ie li ns | 5008 4am aay 4208 ees _ wenn Cost of Deposits Net Interest Margin
Slide 19: Profitability Trends
| Profitability Trends Return on Average Assets Netincome sce “ ia 7 L| |
Slide 20: Credit Quality Trends
| Credit Quality Trends Nonperforming
Slide 21: Shareholder Value
Shareholder Value [Tangible shareholders’ Equity ‘cane ss0360 si sosiaes sisese7 159000 suze ~ | | | ssa Tangible [ividends suse suas ied $2528 | | aa 8128 ~ : | | | s1000 sao $030 $900
Slide 22: Capital Strength
Capital Strength
Slide 23: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income ($ in thousands) and Net Interest In Margin (%) Quarterly Highlights Net interest Margin decreased 9 bpsto2.72%, primarily due to the increase in cost of interest— ‘bearing liabilities outpacing the increase in yield on interest eaming as
Slide 24: Stock Market Performance
| stock Market Performance suse Davluneamonthd Sep sb Vole Shae) 9680 sap D8 Yoke (0008 $308 stockist Hen aoea02s) s an rel Te Book Voue ss26% rae Maas on Pree Us Be
Slide 25: Digital Alignment and Culture Engagement
| Digital Alignment and Culture Engagement BRester= rere + Strong Senior + Empower Leadership to employees to owe fostard look a exiting processes and + Drive ait remove rion. culture internally Besteraly. + Encourage climate of + Dita touchponts autonomy. from client to employees. 1 Set peorties th
Slide 26: Digital Roadmap
Digital Roadmap
Slide 27: Digital Adoption Rates
| Digital Adoption Rates
Slide 28: Community Involvement & Accolades
Community Involvement & Accolades arters (Qi 2014 -8 2028) en times ince 2014, Fidelity BANK re G 2) ed Be 7 Ss g A y yl KA 8 y = A B ‘American Banker 2028 19200 Community Banks 181 Mortgage Lender in Lackawanna County & Top 5 Best Bank” Mortgage Lender in NEPA and ahighVallay* Tribune 2028 “Ameried
Fidelity D & D Bancorp — FY2024 Earnings Presentation on 6ix