Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Shareholder Meeting (May 2019)
42 slides from Fidelity D & D Bancorp's shareholder meeting presentation, May 8, 2019
Slide 1: THE SKYe!S TBE se UMiTy
THE SKYe!S TBE se UMiTy 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: Net Income
Net Income $7,103 3 8 3 E Awarded 5 Star “Superior” rating from Bauer Financial for 5 consecutive year. Fidelity BANK
Slide 4: Return on Average Assets
1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Return on Average Assets 2014 2015 2016 2017 2018 SNL Mid Atlantic peer group consists of banks having assets —e=tSNL Peer: Group between $500 million and $1 billion in PA, DE, DC, MD, NY and Fidelity BANK
Slide 5: Return on Average Equity
Mo American Recognized as “Top 200 Community Bankers Association. 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% Banks in U.S.” for 6 years in a row. Return on Average Equity 12.36% 2014 2015 —+—SNL Peer Group 2016 2017 2018 ‘SNL Mid Atlantic peer group consists of banks having assets bet
Slide 6: Forbes 2018 Best-in-State Banks
g Forbes2018 Forbes2018__ BEST-IN-STATE BAN KS Fidelity BANK
Slide 7: Asset Growth
$1,100,000 $1,000,000 $900,000 $800,000 ‘Thousands $ $700,000 $600,000 $500,000 Asset Growth $676,485 $792,944 $981,102 $863,637 2014 2015 2016 2017 2018
Slide 8: ... And celebrating years!
... And celebrating 117 years! Fidelity BANK
Slide 9: Total Loans
Total Loans (Before Allowance for Loan Losses) $718,008 $638,599 $597,976 $556,544 : - - 2014 2015 2016 2017 2018 tw Commercial Real Estate ta Commercial & Industrial tw Residential 1-4 family Consumer
Slide 10: Total Deposits
$800,000 $700,000 $600,000 $500,000 $400,000 Thousands$ $300,000 $200,000 $100,000 $o Total Deposits $770,183 $730,146 $703,459 $620,675 $586,944 2014 2015 2016 2017 2018 Checking mSavings MMA mCDs
Slide 11: Net Interest Margin
3.40% 3.20% 3.00% Net Interest Margin 3.70% 2014 2015 2016 2017 2018 ° SNL Mid Atlantic peer group consists of banks having assets between SNL Peer Grou $509 million and $1 billion in PA, DE, DC, MO, NY and NI Fidelity BANK
Slide 12: Noninterest Income to Total Revenue
30.00% 25.00% 20.00% 15.00% 10.00% Noninterest Income to Total Revenue 25.12% 2014 2015 2016 2017 2018 SNLMiéAtlanticpeer group consistsof banks having assetsbetween —+—SNIL Peer Group $500 milionandi billioninPA, OE, DC, MD, NY and NI. Fidelity BANK
Slide 13: Annual Operating Expenses
$28,000 $26,000 $24,000 ~ $22,000 = $20,000 3 $18,000 F 516,000 $14,000 $12,000 $10,000 Annual Operating Expenses $24,836 $25,072 $21,022 922,655 ] l ; 2014 2015 2016 2017 2018 Fidelity BANK
Slide 14: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets 2.00% 1.76% 1.50% 1.18% 1.00% 0.73% 0.64% . U a 0.00% + 2014 2015 2016 2017 2018 ——SNL Peer Group SNLMid Atlanticpeer group consists of banks having assetsbetween {$500 millionand$t billion inPA, DE, OC, MD, NYand NJ.
Slide 15: $100,000 $95,000 $90,000 $85,000 $80,000 $75,000 $70,000 $80,631 $76,351 Thousands $ $72,219 $65,000 $60,000
$100,000 $95,000 $90,000 $85,000 $80,000 $75,000 $70,000 $80,631 $76,351 Thousands $ $72,219 $65,000 $60,000 2014 2015 2016
Slide 16: Leverage Ratio
12.00% 11.00% - 10.00% 9.00% - 8.00% 7.00% - 6.00% Leverage Ratio 10.14% 2014 2015 ——SNL Peer Group 2016 2017 2018 SNL Mid Atlantic peer group consists of banks having assets between $500 million and $1 billion in PA, DE, DC, MD, NY and NI.
Slide 17: Total Return Performance
Fidelity FANCORP xc Total Return Performance ro “Fay 08 0 Barco ne son 1040 Compost ne a —#- SNL Bank NASDAQ Index 20 3 an “200 19 ‘0 0 ama —~—Casina—~—~Cane~SCIR SSCS Period Ending Index 423413 12/3114 12/34/15 12/34/46 __ 12/31/17 __ 12/31/48. Fidelity D & D Bancorp, Inc. 100.00 129.39 139.86 151.
Slide 18: Performance 1st Quarter of 2019
F, Performance 1*t Quarter of 2019
Slide 19: Key Financial Data
Key Financial Data Q1 2019 Qi 2018 % Change Net Income ($000) $2,802 $2,528 11% Net Income Pre-Tax ($000) $3,342 $3,034! 10% EPS (diluted) $0.73 $0.67 9% ROAA 1.18%) 1.17% ROAE 11.98% 11.75% FDBC Price* $59.41 $49.05 21% Book Value $25.85 $23.32] 11% Price/Earnings 19.71x 19.80x Price/Book Value 2.2
Slide 20: Strategic Initiatives
F, Strategic Initiatives v Market place expansion Y Client Experience through Digital Transformation v Wealth Management ¥ Community Commitment
Slide 21: The Fidelity Bank Relationship Culture
The Fidelity Bank Relationship Culture The Fidelity Bank Sales Culture + Based on genuine relationship * Meets and exceeds client and prospect expectations + Enablethe client to bank when and where they prefer A proactive sales process that deliversresults What is important to individuals, families
Slide 22: Breaking down the Traditional Model
Breaking down the Traditional Model Moving to A “Branch Lite” World Us branch and deposit aggregates sme Numberofbranches -o-Totaldepeaite (rilon) 100,000 B 12.308 71.960 1.281 Numberof branches i 80,000 - M 6 2008" 2009 2010 | 20112012 201320142015 «2016. -—«2017'-=—«2OTE Datacompled Sept 14,2018.
Slide 23: Breaking down the Traditional Model
Breaking down the Traditional Model Moving to A “Branch Lite” World Us branch and deposit aggregates me Nuenberofbranches a Totaldeposte (iin) 100,000 8 97,500 ora 12.208 rasss aie ‘i 71.221 i 92,500 90,000 87,500 Numberof branches 85,000 82,500 80,000 . : : : 6 2008” 2009” 2010 2011 «2012 «20122016
Slide 24: Community Locations
11 Community Locations Abington Office (570) 586-3212 131.1 Morgan Highway Clarks Summit, PA 18411 Back Mountain Office (570) 675-3332 2363 Memorial Dallas, PA 18612 ighway Dunmore Office (570) 342-8281 101 N. Blakely Street Dunmore, PA 18512 Green Ridge Office (570) 342-5532 111 Green Ridge Street
Slide 25: Back Mountain Office Opening
Back Mountain Office Opening
Slide 26: Growth in our Markets
a Growth in our Markets DALLAS AMIN Euan or ir { KINGSTON | “wit re PITTSTON MOUNTAIN TOP
Slide 27: Remodeling of Main Office
of Main Office Remodeling
Slide 28: Total Branch Transactions
Total Branch Transactions 1,000,000, 900,000 | 800,000 | 700,000 600,000, “7 Total Branch Transactions @ Total for 2016 964,951 fotals for 2017 877,554 ‘Totals for 2018 731,599
Slide 29: Total Branch Transactions
1,000,000 900,000. - 800,000 - 700,000 600,000 - Total for 2016 | Totals for 2017 Total Branch Transactions Total Branch Transactions 964,951 877,554 [MTotals for 2018 731,599 Ml Fidelity BANK
Slide 30: Total Mobile App Customers by user
Total Mobile App Customers by user TOTAL FOR 2016: | \ 5,931 TOTAL FOR 2017: } 7,796 TOTAL FOR 2018: 10,148 | yt | GFadelty nase
Slide 31: Total Mobile Deposit Customers by user
Total Mobile Deposit Customers by user a! i ! Total Mobile — seposReustomersby 2016: 623 “= 2017: 1,313 623 = 2018: 4,476 4,476 Fidelity BANK
Slide 32: 8 Years in a Row
N N N SN SN) N N IN INN 4 ISN N N N Na SSY N N N NR NS = \ SN NWA JN N aQ N N NaN N_N NN NS D) VS IN NEPA 8 YEARS IN A ROW!
Slide 33: Simple Nexus Integration
Simple Nexus Integration $673.50 FFilelity env
Slide 34: Wealth Management (Dollars in Thousands)
Wealth Management (Dollars in Thousands) 2,078 if 2016 2017 2018 Fidelity BANK
Slide 35: Congratulations Bill McAndrew!
Congratulations Bill McAndrew! Al LPL Financial Ranks in the top 19% of 15,000 LPL Financial Advisors. Fidelity BANK
Slide 36: Best Bank For The Community To Prosper - 2018
Best Bank For The Community To Prosper -2018 Provided over $800,000 in philanthropic supportto organizations, groups, schools and universities and clubs throughout the community Contributed over 1,660 volunteer hours to help a countless number of Lackawannaand Luzerne county non-profit organizations
Slide 37: Service Year Recognition
q Service Year Recognition Patricia Bohan Fidelity eax
Slide 38: Congratulations to this year's award winners!
| Congratulations to this year’s award winners! Deposit Operations Team Leader Outstanding Service Partner Michelle McMaster Branch Manager Financial Center Branch Office Banker of the Year ad, James Igoe Electronic Banking Specialist Excellence in Customer Service Fidelity BANK
Slide 39: THANK YOU!
THANK YOU!
Slide 40: Annual Meeting Attendee Handout
2019 Fidelity D & D Bancorp, Inc. Annual Meeting Attendee Handout May 7, 2019
Slide 41: Headquarters, Leadership and Locations
HEADQUARTERS: 101 North Blakely Street, Dunmore, PA LEADERSHIP: Daniel J. Santaniello President Chief Executive Officer Timothy O’Brien Senior Executive Vice President Chief Lending Officer Salvatore R. DeFrancesco, Jr. Executive Vice President Chief Financial Officer Michael J. Pacyna, Jr. Executiv
Slide 42: Best Bank for Clients to Bank - 2018
BEST BANK FOR CLIENTS TO BANK - 2018 *Increased the number of Mobile Deposit customers by over 240% and the number of Business Mobiliti customers by 246% by investing in cutting-edge technology for smart phones and tablets *Originated more residential mortgage loans in Northeastern Pennsylvania than
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