Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Shareholder Meeting (May 2016)
69 slides from Fidelity D & D Bancorp's shareholder meeting presentation, May 4, 2016
Slide 1: Unique
UNIQUE Filelty env
Slide 2: Net Income
Net Income (Dollars millions) $7.1 $17 (%.Q) 1112.13, 14.15 ‘16 Fidelity err
Slide 3: Net Income Per Share
Net Income Per Share ° (Dollars millions) 1 12 4 13 2:91 Fidelity or
Slide 4: Assets
Assets (Dollars millions) $729 BANK
Slide 5: Balance Sheet Growth
Balance Sheet Growth ($000) Deposits
Slide 6: Total Loans & Leases, Net
Total Loans & Leases, Net $546 (Dollars millions)
Slide 7: 2015 Loan Results
2015 Loan Results ttt 10% 6% 5% ‘Commercial Residential ‘Consumer
Slide 8: Deposits
Deposits (Dollars millions) 600 $621 BANK
Slide 9: 2015 Deposit Results
2015 Deposit Results ttt 6% 10% 67% Retail Interest Consumer Public & Non Interest bearing Core Deposits Deposit Checking Growth Growth Growth Fidelity oinx
Slide 10: Deposit Market Share
Deposit Market Share Institution 2014 Vs, 2015 Total Market Share (6) Filelity oa
Slide 11: Wealth Management Revenue
Wealth Management Revenue $1,243 (Trust & Financial Services) ~ a |
Slide 12: Non-Interest Income
Non-Interest Income (Excluding Securities Gains / Losses) $75 $75 $7.0 $6.5 $6.0 $5.5 $5.0 $4.5 = (DollarsMillions) 11 12,13, 14.15 Fileliy. ow
Slide 13: Total Number of Consumer and Business Households
Total Number of Consumer and Business Households 22,194 19,791 20,000 “ | | | lI 11 12.13 14 Fidelity onnx
Slide 14: Total Past Due & Non Accrual %
Total Past Due & Non Accrual %
Slide 15: Above the Crowd
1] Above the Crowd SAGE AWA\RD'S SCRANTON AWARDS FOR GROWTH&EXCELLENCE 2015 AWARD WINNER: EXCELLENCE IN LEADERSHIP. * SAGE Awards— Excellence in Leadership + 5 Star Bauer Rating + Top 50 Bank in Social Media (2 years in a row) Filelity cov
Slide 16: Top Community Banks in the US
TOP 200 COMMUNITY BANKS INTHE US. i E 2013 — 119th 1 Times Sevbune 2014 — 130th 2015 ~ 114th 2013, 2024, 2015 Fidelity ome
Slide 17: #1 Mortgage Lender in the Area
#1 MORTGAGE LENDER | IN THE AREA! 6M YEAR IN AROW! Filelity cx
Slide 18: Growing Our Online Presence
Growing Our Online Presence Filelity cane
Slide 19: Productive Year
Productive Year Fiserv Outsource New Retail Products Update Online Business Banking Remote ATMs — Moosic Street, Scranton — Wyoming Avenue, West Pittston — (2)Marywood University
Slide 20: Our Community Service can't be matched
Our Community Service can’t be match! * Over 600+ hours served. * Over 60+ organizations served.
Slide 21: Total Return Performance
[ Fidelity D & D Bancorp, Inc. ] ‘Total Return Performance erat 08 Dancers su Enchant» S00 anne Ta wane a vain ams Inder Tae AM ane oT oa Fenty DED Boca, Fe Tooo fore Ties — ore to507 2108 ‘SAL Bank Pak> 500M i000 982 feasts 37 Fidelity. sinx
Slide 22: Slide 22
Slide 23: 2016 Annual Meeting of Shareholders
Fidelity D & D Bancorp, Inc. 2016 Annual Meeting of Shareholders ‘Supplemental Financial information Year ended December 31,2015 and First Quarter 2016 Salvatore R. DeFrancesco, Jr, CPA, CGMA Treasurer and Chief Financial Officer May3, 2016
Slide 24: Forward-looking Statements
Forward-looking Statements Ths presentation contine forwerdookng attements tet describe ourfutre plas tateies and expectation. Fonwardootng statement can be “ented bythe et that they donot ate sty to tora! or cent fete: They often ncade words uch “beseve“expeck” “ene,” “intend” Spans “estimate” or w
Slide 25: Income Statement Summary
Income Statement Summary Dollars in Thousands except per share infomation _-_Yeat-To-Date December 31, 2015 2014 Variance Net Interest Income S 23485 § 24,927 § 11558 7% Provision for Loan Loss 4.075 4.060 61% Net Interest Income afer Loan Loss 22.410 20.867 543796 Gain on sale of securities 80 599
Slide 26: Net Interest Margin
Net Interest Margin 4.50% 4.25% 4.00% 3.75% —¢ 3.50% = i B.75Y (3.6 3.25% 3.00% 2.75% 2.50% + 2011 2012 2013 2014 2015 Years ‘The UBPR peer groupareallinsured commercial banks having assets between $300 million and $1 billion. —#— UBPR Peer Group
Slide 27: Condensed Balance Sheet
Condensed Balance Sheet Datars Those December 21, December 31 varios ‘mS ‘mie s % Assets Cash & cash equivalers Ss wer s zast|s (gs7e] 506 Serie aez2 eras] za] 28% Lars end Lesres seen stoeei| eo] ae ‘Allowance for Loan Loss ee 13173) (oea| a Net Loans 3ag.103 60708 | B15) __a% Premées & Equipment 1
Slide 28: Balance Sheet Growth
Fidelity D & D Bancorp, Inc. Balance Sheet Grovth 00 00 = = 20900 = ‘conn | mre so152s 23925 ‘apr ass ss.602 isan Faso sas 500,900 469,216 aoe = oases 3 oop00 Boe = 300 p00 20 00 ‘00 p00 201 2012 2018 2014 2015 eabposis Saha ans maa Beroungs mas DBD Bancorp, In
Slide 29: Unaudited Income Statement Summary
Unaudited Income Statement Summary Veur-To-Date March 21 nore ots Were Netinterest Income Ss 61 5e07 S$ 531 9% Provision for Loan Loss 150, 150, = o% ‘Net Inerest Income afer Loan Lose 3988 Sar esis Gain on sale of secures : 2 @) -100% ‘Ohher Income 1.287 1748 (61) Total Other Operating neomie 1687
Slide 30: Net Interest Margin
Net Interest Margin 4.25% 7 BH H 325% + |_| | at 2018 22015 93 2015 94 2015 Quarter Ended at 2016 Fidelity aD Bancorp, Inc
Slide 31: Condensed Balance Sheet
Condensed Balance Sheet cobs Hoss March31, December 31,| HGH) March3t, ¥OY Sunstes mie zis || veience | 2076" | verianoe Assets Cash cash enuivalents S stot szzr7|s_aaaia|stassa]s zt08 Seauriies wees 125282 aa) tasast Dis Loans and Leases sere «667620 fn] ones] eae Allowance fer Lean Loss 2386) Bean
Slide 32: Capital Adequacy Ratios
Capital Adequacy Ratios March 31, December 31, March 31, 2016 2015 2015 Total - Risk Based Capital 15.1% 14.0% 15.2% [ Tier | - Common Equity 13.9% 13.6% 13.9% 65% Tier | - Risk Based Capital 13.9% 13.6% 13.9% 80% Leverage 10.1% 10.1% 10.1% [5.0% Fidelity DED Bancorp, Inc
Slide 33: Wealth: Trust Department Overview
“WEALTH Trust Department Overview
Slide 34: Trust Solutions
Trust Solutions Personal Trust * Revocable Trusts * Irrevocable Trusts * Testamentary Trusts + Investment Management * IRAs * Guardianships * Life Insurance Trusts + Special Needs Trusts Fidelity ans
Slide 35: Planning for elder care needs
Planning for elder care needs Special Needs/Disability issues for children and adults Estate Planning and Settlement Wealth Transfer and Estate Management Investing for Wealth Accumulation and Wealth Preservation Filelity orn
Slide 36: Growth of the Business
Growth of the Business * Ofthe 6 local community banks in our peer group with trust departments, Fidelity is 2"4 largest in assets and 3 largest in revenue generation. Fillelity ers
Slide 37: Personal Trust Assets
Personal Trust Assets Year End Market Value $120,000 $100,000 $80,000 $60,000 = aullllll Fidelity ons
Slide 38: Revenue Trends
@Revenue Trends $800,000 ~ $700,000 +“ $600,000 $5000 ti<“<i<‘COSOS™~™S gaonn00 —<C~Ststsi‘<C~SS*SYT $300,000 ~ | ee $200,000 +“ aac) B SEES | 2010 | 2011 | 2012 2013 2014 | 2015 2016
Slide 39: Profitability- Income & Expenses
Profitability- Income & Expenses 800,000, $$ 700,000 | 600,000 | 500,000 + 400,000 + 300,000 200,000 100,000 o+ 2010 2011 2012 2013 2014 2015 Income m Expenses Fidelity onnx
Slide 40: Department Performance
Department Performance Another year of continuous upward trends: Nei x Revenue increases Positive Income after Direct Expenses « * Positive Income after Indirect Expenses * Positive contribution to ROA Increases due to consistent growth & conscientious expense control Fidelity oan
Slide 41: Our Clients and Our Reputation
Our Clients and Our Reputation * Ourtypical clients are those looking for broad planning for their lifetimes and beyond * We help manage our clients’ lives as: “Trustee *Guardian *Executor =Powerof Attorney *Trusted Financial Advisor + Trust Department services are more than money management or inve
Slide 42: Corporate Trust
Corporate Trust Local School Districts Local Municipalities ~ Cities — Boroughs — Counties Local Sewer Authorities Pipeline for new business Fidelity oan
Slide 43: 2016 Outlook
2016 Outlook + Anticipating a great year... Increases in revenue, asset growth, new households Retention of our clients New business pipeline Referrals to other lines of business Enhancement of COI relationships Continued expense control Remain committed to compliant business practices Fidelity ean
Slide 44: Managing Wealth from Trust Relationships at Fidelity Bank
Managing Wealth from Trust Relationships at Fidelity Bank Trusted Financial Advisors Serving the Needs of our Clients & Achieving the Goals of our Organization Fidelity sans.
Slide 45: Asset Management Services
Fidelity Asset Management Services At Fidelity Deposit and Discount Bank Bill McAndrews Senior Vice President ‘Amanda Vinciguerra, Wealth Management ‘& Financial Advisor 2 ‘Admin, Assistant Fidelity ani
Slide 46: Helping Meet Customers Needs Life Events
Helping Meet Customers Needs Life Events + New Additions to the family — College Planning Strategies, TAP program, 529, Plans + Marriage — Consider integrating employee and retirement benefits — Assess your insurance coverageneeds — budgeting/maintaining bank accounts + Divorce — Transfer of Assets
Slide 47: Helping Meet Customers Needs Life Events
Helping Meet Customers Needs Life Events * Death — Transfer of assets — Beneficiary IRA's — Income replacement Strategies — Insurance * Lost of a job or a new job = 401k rollovers — Income replacement Strategies — Emergency funds — Revaluate investment strategy Fidelity env
Slide 48: Helping Meet Customers Needs
Helping Meet Customers Needs Life Events + Retirement Planning — Just starting out — Reaching your peak earning years — Preparing to retire — Retired + April 15th — Tax management Strategies Fidelity ean.
Slide 49: Providing Solutions for College
Providing Solutions for College * Tax Free College Investment Programs *:'529's * PA Tuition Account Program Fidelity ans.
Slide 50: Providing Solutions for Retirement
Providing Solutions for Retirement 401k’s IRA’s ROTH IRA's SEP IRA's Solo K’s SIMPLE IRA Plans Fidelity ann
Slide 51: Providing Solutions
Providing Solutions to keep more of what you earn * Tax Free Municipal Bonds * Tax Deferred Annuities — Fixed Annuities — Variable Annuities — Index Annuities — Immediate Annuities Fidelity orn
Slide 52: Providing Solutions for Professional Money Management
Providing Solutions for Professional Money management + JP Morgan + Vanguard i; Sel + Russell Investments + Standard & Poors Investments + UBS + Loring Ward + Lazard * Guggenheim Fidelity arsix
Slide 53: Providing Solutions for growth and income
Providing Solutions for growth and income Mutual Funds Stocks Taxable Bonds Tax Free Bonds Fidelity ans
Slide 54: AUM by Product Type
AUM by Product Type Sales \ mSecurites m= Mutual Funds m Variable Annuities Fixed Annuities 1m Fixed Index Annuities m= Unit Investment Trusts Fidelity sav
Slide 55: Annual Gross Revenue
Annual Gross Revenue $800,000.00 $700,000.00 $600,000.00 $500,000.00 5 m Revenue 400,000.00 Trails $300,000.00 = Advisory Fees $200,000.00 $100,000.00 Ss 2011 «2012, «2013, 2014S 2015 Fideliyy sax
Slide 56: Assets Under Management
Assets Under Management $140,000,000.00 $120,000,000.00 $100,000,000.00 $80,000,000.00 $60,000,000.00 $40,000,000.00 $20,000,000.00 $ AUM 2011 2012 2013 2014 =AUM 2015 Fidelity. or
Slide 57: Advisory Revenue Trends
$160,000.00 $140,000.00 $120,000.00 $100,000.00 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $ Advisory Revenue Advisory Revenue Trends a 2011 2012 2013 2014 2015 Fidelity anv
Slide 58: Annual Trail Revenue Trend
$120,000.00 $100,000.00 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $s Annual Trail Revenue Revenue Trend 2011 2012 2013 2014 2015 Fidelit y BANK
Slide 59: $3.2 million in revenue generated over the past years
* $3.2 million in revenue generated over the past 5 years Fidelity ean
Slide 60: Anytime, Anywhere
g ANYTIME, ANYWHERE Fidelity sans.
Slide 61: Customer experience happens everywhere
Customer experience happens everywhere. a A Fidelity Banker will meet any place and any time!
Slide 62: Importance in Choosing a Bank
Importance in Choosing a Bank Millennials Non-Millennials * 35% -Branch close to home * 39% - Branch close to home * 33% - ATM access * 33% - ATM access + 14% - digital capabilities + 15% - in branch sales + 13% -in branch sales assistance assistance Fidelity oan
Slide 63: Setting the stage
Setting the stage Creatinga proactive bank that thinks about the needs of its, customer. It’s about delivery in all channels Todays Banker's Channels Filelty en
Slide 64: Get closer than ever to your customers
"Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves." - Steve Jobs, Apple
Slide 65: Decline in teller transactions
Decline in teller transactions + Teller transactionsare dropping + Electronic transactionsare increasing..such asdebit cards, ACH, direct deposit, web bill pay, and personto person payments Fillelity ern
Slide 66: Customers aren't abandoning branches, but they are using them less
Customers aren’t abandoning branches, but they are using them less. + They still use them — 61% still visit a bank branch at least once per quarter + Itis the primary sales channel — Branches are still the primary channel for customer acqui consultative sales for both consumers and small business —
Slide 67: New Markets, New Initiatives
New Markets, New Initiatives SP uzerne county Fidelity -—
Slide 68: Community outreach
Community outreach with Social media outlets.
Slide 69: Thank You!
Thank You!
Fidelity D & D Bancorp — Shareholder Meeting (May 2016) on 6ix