Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Merger or Acquisition (February 2021)
14 slides from Fidelity D & D Bancorp's merger presentation, Feb 26, 2021
Slide 1: Proposed Acquisition of Landmark Bancorp, Inc.
Fidelity D & D Bancorp, Inc. Proposed Acquisition of Landmark Bancorp, Inc.
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act, relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Fi
Slide 3: Table of Contents
Table of Contents Transaction Summary Transaction Overview Overview of Pro Forma Franchise Transaction Terms Transaction Rationale Deposit Market Share Deposit Mix Loan Mix Expected Financial Impact 10. Summary CHONDARWNE
Slide 4: Transaction Summary
Transaction Summary OAcquirer: Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) OAcquiree: Landmark Bancorp, Inc. (OTC Pink LDKB) OTransaction Value: $43.4 million based on FDBC’s 10-day average closing price at 2/25/21 OUConsideration: 82.1% stock/17.9% cash QJEst’d One-Time Charges: $5.4 million
Slide 5: Transaction Overview
Transaction Overview * Fidelity D & D Bancorp, Inc. (FDBC) proposes to purchase 100% of the outstanding stock of Landmark Bancorp, Inc. ¢ LDKB will merge into a Fidelity acquisition subsidiary; Landmark Community Bank will merge into Fidelity Deposit and Discount Bank * Landmark shareholders will re
Slide 6: Overview of Pro Forma Franchise
Overview of Pro Forma Franchise Pro Forma Highlights ec Total Assets: $2,048 Gross Loans: $1,422 = Total Deposits: $1,796 Branches: 25) ‘ * Attractive combination of established local 5 Ge franchises ee” * Meaningful branch overlap provides opportunities Gor REET TERE for superior cost savings fy “
Slide 7: Transaction Terms
Transaction Terms * Buyer * Seller * Stock consideration * Consideration mix * Indicative price per share * Market premium * Implied aggregate transaction value * Implied price/TBV * Price/2020 earnings adjusted for cost saves * LDKB Board representation * Required approvals + Expected closing Fidel
Slide 8: Transaction Rationale
Transaction Rationale WW. Strategic Rationale —— Financial Attributes Risk Materially boosts FDBC’s market share in Luzerne County Superior cost saves and rightsizing LDKB’s profitability should drive attractive EPS accretion Defends against a competitor entering Luzerne and Lackawanna Counties Matu
Slide 9: Deposit Market Share: Luzerne County
Institution Name PNC Financial Services Group (PA) M&qT Bank Corp. (NY) Wells Fargo & Co. (CA) Citizens Financial Group Inc. (RI) Community Bank System Inc. (NY) FNCB Bancorp Inc. (PA) Penns Woods Bancorp Inc. (PA) Truist Financial Corp. (NC) First Keystone Corp. (PA) Landmark Bancorp, Inc. Fidelity
Slide 10: Deposit Market Share: Lackawanna County
Institution Name PNC Financial Services Group Peoples Financial Services Fidelity D & D Bancorp, Inc. FNCB Bancop Inc. Wells Fargo & Co NBT Bancorp Inc. Community Bank System Inc F.N.B. Corp. Citizens Savings Bank Honat Bancorp Landmark Bancorp, Inc. Total for Instituions in County Deposit Market Sh
Slide 11: Deposit Mix at 12/31/20
Deposit Mix at 12/31/20 FDBC LDKB (CDs > $100,000__ a Be» $1,000 Ds <$100,000__ CDs < $100,000. 4% 1%] savings —_—— 12% ~~ recounts 46% Transaction ‘Accounts mul 57% FDBC & LDKB had Pro Forma Combined similar levels of non- cos» sono interest bearing/total eeicnab_ a Source: Bank call report for & L
Slide 12: Loan Portfolio Mix at 12/31/20
Loan Portfolio Mix at 12/31/20 FDBC LDKB Commerical, Residential Real Indust & Estate Commericial, eden Real Other 19% Industrial — es Other en 26% Home Equity & Consumer Home Equity & 12% aa Consumer 17% /| Commercial Real pretartoowts co veal Estate sneer Real % state Construction & 26% 47% Develo
Slide 13: Expected Financial Impact
Expected Financial Impact Assumptions/Current Estimates Financial Impact * 2.6% loan mark, inclusive of interest rate ¢ EPS accretion of approximately 4.9% mark in 2021 and 13.6% in 2022 * 0.2% core deposit intangible mark, 10- * 0.8% dilutive to tangible book value year amortization, sum-of-the-yea
Slide 14: Summary
Summary * Creates significant franchise value * Superior cost savings * Pro forma assets of $2.0 billion ¢ Higher lending limit and enhanced products and services * Materially boosts FDBC’s market share in Luzerne County and, to a lesser extent, in Lackawanna County * Expansion into markets that FDB
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