Fidelity D & D Bancorp, Inc. · NASDAQ:FDBC
Fidelity D & D Bancorp — Investor Presentation (August 2017)
34 slides from Fidelity D & D Bancorp's investor presentation, Aug 10, 2017
Slide 1: Investor Presentation August 2017
SP Fidelity Dé fee ‘BANCORP xc! Investor Presentation August 2017 TN i (om | Si Hah Mi
Slide 2: Forward-looking Statements
Q Forward-looking Statements This presentation contains forward-looking statements that describe our future plans, strategies and expectations. Forward-looking statementscan be identified by the fact that they do not relate strictly to historical or current facts. They ofteninclude words such as “be
Slide 3: Vision Statement
Vision Statement Fidelity Bankers are passionate about success and committed to building strong relationships through superior service. Fidelity Bank will be the best bank for our bankers to work at, our clients to bank with, our shareholders to invest in, and for our community to prosper. Fideluy D
Slide 4: Core Values
Core Values Psion consti Fidelity Bankers strive for excellence and do Fidelity Bankers respect our clients. their best work every day. Fidelity Bankers are passionate about Fidelity Bankers listen carefully to delivering outstanding value and customer our clients and prepare thoughtful service. sol
Slide 5: Experienced Management Team
Experienced Management Team THE FIDELITY DEPOSIT AND DISCOUNT BANK Years at Fidelity Years in bankii DanielJ. Santaniello 16 27 President and CEO (6.5 as CEO) Salvatore R. DeFrancesco, Jr. 14 22 Chief Financial Officer Eugene J. Walsh 8 25 Chief Operating Officer Timothy P. O’Brien 9 49 Chief Lendin
Slide 6: Mortgage
F Mortgage ¢ #1 Mortgage Lender in Northeastern PA 6" year Ly ina row xf ¢ Best Bank for Mortgages 2 Scranton Times Fiklty © BANCORY.«.
Slide 7: Customer Experience
Customer Experience 2016 Blind awareness study — conducted 8/16 - 13.3% share — 2"4 to PNC ¢ Fidelity Bank outperforms the local competition on multiple criteria when giving a rating of extremely satisfied Criteria Fidelity Bank Friendliness of Tellers 79.4% Professionalism Bank Mgt. 73.5% Appearanc
Slide 8: Enhance online delivery channels
Enhance online delivery channels Bankatfidelity.com \ fi Is your business ready to accept Credit Card payments? “'4,060°000 VIEWS OF OUR NEW WEBSITE! In less than 6 months of launching ° BANCORP «.
Slide 9: Mobile Channel Optimization
Mobile Channel Optimization Fidelity Mobile Business Mobiliti fF Banking August, 2017 The Fidelity Dep... smith ee Grows New Anytime Tablet Banking App New Custom Branded Anytime Mobile App Fikltg 2 BANCORP
Slide 10: Teach Children to Save (TCTS) financial literacy school visits
Teach Children to Save (TCTS)— financial literacy school visits Fidelity Bank is celebrating Community Banking Month throughout April (Our Bankers will visit over 750 children at 14 area schools to teach financial literacy through the “Teach Children to Save" intative. We may be coming det Bank toa
Slide 11: Profiles Banking Excellence
PROFILES BANKING EXCELLENOE Fidelity’s team effort produces results and win/win for the community
Slide 12: We outperformed the market
We outperformed the market ‘oO YNNVMWOVT Y Voted Best Bank (3 years in a row) v Top 50 Bank in Social Media (2 years in a row) ¥ Top 200 Community Bank (4 years in a row) ¥ Top Community Bank in measured awareness (over last two measurement periods) Y Outperformed in deposits gathered, mortgages ori
Slide 13: Deposit Market Share
Deposit Market Share ‘Scranton--Wilkes-Barre-Hazleton, PA US. Deposit Market Share by MSA Tota Tota Active Total Tota Deposit Total Total Active Total Deport Pant "Sranches” Depoais 2016 Mutat Sire 2016 Sear Deport Deposit "Branches Deposts2011 Rank 2015 Parent Company Name _Parentciy ‘State 2015 (S
Slide 14: Deposit Market Share
Deposit Market Share Deposit Market Share for Selected Markets Pending Ownership, including Bank, Savings Bank, Thrift Branches (Ownership as of 8/7/2017, Branches and Deposits as of 6/30/2016 ‘COUNTY: Lackawanna, PA 2016 Total 2016 Total 2016 Total| 2015 Total 2016 20 2016 Number Deposits in Market
Slide 15: Mortgage Market Share
Mortgage Market Share Fidelity Deposit and Discount Bank | Mortgage Origination Market Share (Market Share) 2076 201 2016 Funded Loans Market share) Funded Loans] Funded Loans] Mark Company Type (Rank (actual) ($009) (ectua)| share) Fidality Deposit & Discount Bk(PA) Commi Bank 1 32 38 50K ao 0781]
Slide 16: A True Community Bank
A True Community Bank Fidelity Bank in Dunmore, Pa 1903 Fidelity is proud to be a locally owned and operated community bank serving the individuals, families and businesses of our area for over 114 years. Fidelity Bank continuingthe mission of serving our area as a trusted financial advisor. > Board
Slide 17: Branch Locations
Branch Locations Abington Office Keystone Industrial Park Office Scranton Financial Center (570) 586-3212 (570) 348-4003 (570) 504-8001 1311 Morgan Highway 1232 Keystone Industrial Park Rd 338 North Washington Avenue Clarks Summit, PA 18411 Dunmore, PA 18512 Scranton, PA 18503 Dunmore Office Kingsto
Slide 18: Financial Information
Financial Information
Slide 19: 2016 Full Year Overview
2016 FULL YEAR OVERVIEW. (Comparisons versus full year 2015) = Net income of $7.7 million, an increase of $0.6 million or 8.3% = Earnings per share (diluted) of $3.13, an increase of $0.23 or 7.9% = Net interest income of $25.1 million, an increase of $1.7 million or 7.0% = Net Interest Margin of 3.
Slide 20: Diversified Loan Portfolio
) DIVERSIFIED LOAN PORTFOLIO 6/30/17 Residential Construction 15% Residential RE 21.48% ‘ConsumerOther 10% |cRENon-owner ‘Auto Loans& Leste ‘Occupied 111s a 85% Home Equity 12/31/11 ‘CRE Owner Occus Installment Construction eet aaee Residencial 07% construction Residential RE 1.086 19.7% ‘Consumer O
Slide 21: Loan Growth
LOAN GROWTH $636,418, $597,976 9556564 $515,695 $478,200 $433,556 | zon. 2032 2013 2014 2035 2016 sune 2017 Fie 21 BANCORP.
Slide 22: Available-for-Sale Investment Portfolio
AVAILABLE-FOR-SALE INVESTMENT PORTFOLIO 6/30/17 Eauities os Agency- GSE 119% Municipals 28.7% MBS-GSE Residential sao 12/31/11 Equities MBS-GSE 0.4% Corporate Bonds Residential 1.4% Total Portfolio $153 Million a) ‘Agency: GSE Tax-Equivalent Yield 3.29% Effective Duration 3.3 years Price Change +200
Slide 23: Attractive Deposit Mix
ATTRACTIVE DEPOSIT MIX 6/30/17 (Ds Non-interest Bearing 24.7% Interest Bearing 12/31/11 Checking EK Non-interest Bearing 18.6% Savings & Clubs 18.2% $707 Million Total Deposits 0.47% Cost of interest-bearing deposits Interest Bearing Checking 15.3% ‘Savings & Clubs 20% $516 Million Total Deposits 0.
Slide 24: High-Quality, Low-Cost Checking Deposit Base
HIGH-QUALITY, LOW-COST CHECKING DEPOSIT BASE $373 a6 $253 $276 gaa 9223 : fi . 2011-2012, 2013.,S 201420152016 —_—sune 2017 lM interest Bearing Checking fl Non-Interest Bearing Checking Cost of Funds 0.88% oll 2012, 2018S 2014 = 20152016 June 2017 Note: Cost of funds includes the effect of average n
Slide 25: Balance Sheet Growth
BALANCE SHEET GROWTH 855,468 792,944 729,358 676,485 703,459 TOL) 606,742 5 —— 626,438 51 514,660 See os 506,327 -_ 469,216 398,186 fea 2011 2012 2013 2014 2018 2016 June 2017 mmmaDeposits =aNetLoans mmm Borrowings © =eeAssets Filion 25 BANCORP .«.
Slide 26: Strong Profitability
STRONG PROFITABILITY Net Income 1.15% __syearensn 90% 7, __syeareasR 880 ose, 100% «202% «= 1.01% $7,122 $7,108 $6,352 085% = os1% $5,045 $4,902 I l $4,163 012 «2013-2018. 2015-2016 une 2017-2011 20122013. 2014 20152018 June 2017 Diluted EPS ROAE spear CAGR 6.54% ‘$3.02 oad 11.70% $2.90 10.01% 10.18
Slide 27: Net Interest Income
NET INTEREST INCOME 5-Year $25,137 $23,485 $21,927 $20,842 $20,640 $20,885 | | | | 2011 2012 2013 2014 2015 2016 June 2017 Net interest income has increased as loan growth has outweighed net interest margin compression. Fidelity BANCORP s«.
Slide 28: Stable Net Interest Margin
STABLE NET INTEREST MARGIN 600% soon | 475% 4.39% 431% 423% is . 08% 405% og 4.00% - — — “2 2 — ~~ —. 2 aes 3.80% 3.80% 3.75% 3.70% 3.72% 3.74% 2.00% 200% | 1.08% 077% 1.00% | 0.99% — onts 051% 0.46% 051% -2- —— —e- ~~ = 0.0% aon 201 2012 201 2015 201s June 2017 —B-Net interest Margin “Yield on Earn
Slide 29: Earnings Momentum
$3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 EARNINGS MOMENTUM $3.13 $2.90 $2.62 $2.28 $2.44 ; 2011 2013" 2018 2015, 2016 Mmm Revenue —=o—Diluted EPS 6.54% 5-Year CAGR on Diluted EPS 2.55% 5-Year CAGR on Revenue $36,000 $35,000 $34,000 $33,000 $32,000 $31,000 $30,000 excludes Securities Gainsin20
Slide 30: Asset Quality
ASSET QUALITY Allowance for Loan Losses/ Total Loans 2.07% 187% 178% 71% HI | LI | zou 20: 2013 «2014 = 2015-2016. -—_June 2017 NCOs/Average Loans NPAs/Assets dite, eee 3.58% 2.94% 176% sci 1.18% ae 0.16% = 0.16% il T 11% 019% 2011 201220132014 «2015-2016 June 2017 201120122, 2013-««2016 «20152016 J
Slide 31: Wealth Management Division
WEALTH MANAGEMENT DIVISION Cc a a> | a / + Locally-based Wealth Management Division with Fidelity Asset Management and Trust Departments. + Team is comprised of 6 professionals. « $398 millionin assets under management at June 30, 2017, integrating over $50 million of Trust assets from Gratz Bank. «
Slide 32: Strong Capital Levels
STRONG CAPITAL LEVELS Tier 1 Risk-Based Ratio Total Risk-Based Ratio 15.18% 15.25% 13.80% 13.97% 13.72% 13.62% 14.50% 13.25% 13.51% 12.23% — | til | 201120: 201 20152016 June 2017, oll 2012S «2013S 201420152016 June 2017 Leverage Ratio 10.32% 10.32% 10.18% 10.03% 9.65% 9.68% I ! 2011-2012, 2018. 201
Slide 33: Contact Information
Contact Information Salvatore R. DeFrancesco, Jr. CPACGMA Executive Vice President & Chief Financial Officer 570-504-8000 Sal.DeFrancesco@fddbank.com | J. Santaniello President & CEO 570-504-8035 Dan.Santaniello@fddbank.com Fikelity 3 BANCORP »«
Slide 34: Thank You!
Thank You!
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