Name: FIDELITY D & D BANCORP INC Q3 2025 Earnings Call
Start: 2025-10-22T15:04:59.000Z

Executive Summary

Q3 2025 EPS was $1.27, with net income of $7.35M, up 48% year over year; strength was driven by higher net interest income and lower credit loss provisioning, partly offset by higher non-interest expense and taxes .
Total “revenue” (net interest income + non-interest income) rose to ~$23.53M, up both sequentially and year over year as FTE net interest margin expanded to 2.95% and spread to 2.28% on loan growth and improved asset yields .
Asset quality improved materially: non-performing assets fell to 0.11% of total assets, non-accrual loans dropped to 0.14% of loans, and net charge-offs remained low at 0.03% .
The Board raised the Q4 dividend 7.5% to $0.43 (from $0.40), marking 11 consecutive years of dividend growth; this is a potential stock reaction catalyst for income-oriented investors .
Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was unavailable; we anchor comparisons to actuals and trajectory commentary; recommend updating models to reflect margin/credit improvements (Values retrieved from S&P Global).

What Went Well and What Went Wrong

Margin expansion and strong core earnings: FTE net interest margin increased to 2.95% and spread to 2.28%, supporting net interest income of $18.43M; CEO highlighted “very strong results…long-term targeted relationship strategy…$1.27 per diluted share” .
Balance sheet growth with better funding mix: loans reached $1.915B and deposits $2.467B, driven by new primary households, targeted marketing, and retention strategy .
Credit quality improved: non-performing assets fell to 0.11% of assets; provisions declined versus prior year on improved NPAs and non-accruals .

Operating expense pressure: non-interest expense rose ~6% YoY to $14.63M on higher salaries/benefits and premises and equipment costs .
Higher tax burden: provision for income taxes increased to $1.25M QoQ and YoY in line with stronger pre-tax income, which partially offset bottom-line leverage .
Mixed non-interest income components: gains on sold loans and loan service charges were lower YoY, partly offset by trust and interchange fee growth .

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Net Interest Income ($USD Millions)	$15.43	$17.03	$17.93	$18.43
Non-Interest Income ($USD Millions)	$4.98	$4.97	$5.36	$5.11
Total “Revenue” ($USD Millions; NII+Non-Interest)	$20.41 ]	$22.01 ]	$23.29 ]	$23.53 ]
Provision for Credit Losses – Loans ($USD Millions)	$0.68	$0.46	$0.30	$0.20
Provision for Credit Losses – Unfunded Commitments ($USD Millions)	$0.14	($0.09) benefit	$0.02	$0.11
Non-Interest Expense ($USD Millions)	$13.84	$14.55	$14.71	$14.63
Income Before Taxes ($USD Millions)	$5.76	$7.08	$8.26	$8.59
Provision for Income Taxes ($USD Millions)	$0.79	$1.09	$1.34	$1.25
Net Income ($USD Millions)	$4.97	$5.99	$6.92	$7.35
Diluted EPS ($)	$0.86	$1.03	$1.20	$1.27

KPI	Q3 2024	Q1 2025	Q2 2025	Q3 2025
FTE Net Interest Margin (%)	2.70%	2.89%	2.92%	2.95%
FTE Net Interest Spread (%)	1.98%	2.24%	2.25%	2.28%
Efficiency Ratio (FTE) (%)	65.33%	61.67%	61.17%	60.17%
ROAA (%)	0.79%	0.93%	1.04%	1.08%
ROAE (%)	9.89%	11.66%	13.02%	13.25%
Net Charge-Offs / Avg Loans (%)	0.02%	0.02%	0.05%	0.03%

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Loans & Leases ($USD Millions)	$1,795.55	$1,817.51	$1,837.48	$1,914.89
Total Deposits ($USD Millions)	$2,342.51	$2,457.46	$2,435.33	$2,466.91
NPAs / Total Assets (%)	0.29%	0.23%	0.13%	0.11%
Non-Accrual Loans / Total Loans (%)	0.39%	0.33%	0.17%	0.14%
Tangible Book Value per Share ($)	$32.55	$33.16	$34.25	$36.23

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2025	$0.40 (Q3 2025 declared)	$0.43	Raised 7.5%
Financial guidance (revenue/margins/OpEx)	FY/Q4 2025	Not provided	Not provided	Maintained “no formal guidance” (no numeric ranges discussed in filings)

Note: No Q3 2025 earnings call transcript was available; themes synthesized from management’s press releases.

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Net interest margin and spread	NIM 2.89%, spread 2.24% (Q1); NIM 2.92%, spread 2.25% (Q2) on loan growth and higher asset yields	NIM 2.95%, spread 2.28%; growth in higher-yielding taxable commercial loans	Improving sequentially and YoY
Deposit strategy and funding	Targeted relationship strategy; strong deposit growth supporting cash balances (Q1–Q2)	Continued deposit growth (+$126.1M YTD) and 74% insured/collateralized ratio	Stable, positive
Loan growth	Loans rose to $1.818B (Q1) and $1.837B (Q2)	Loans at $1.915B, with higher average balances driving interest income	Accelerating
Asset quality	NPAs 0.23% (Q1) → 0.13% (Q2); non-accruals down	NPAs 0.11%; non-accrual loans 0.14% of loans; lower provisioning vs PY	Improving
Capital and TBV	TBV/share $33.16 (Q1), $34.25 (Q2); leverage ratio ~9.2%	TBV $36.23; leverage ratio 9.27%; well-capitalized	Strengthening
Non-interest income mix	Trust/interchange up; securities loss in H1	Continued trust/interchange growth; lower loan sale gains & loan fees YoY	Mixed

“We are pleased to report very strong results for the third quarter…generated a 48% year over year net income growth to $7.3 million…resulting in $1.27 per diluted share.” — Daniel J. Santaniello, President & CEO .
“Year-to-date net income reached $20.3 million, supported by disciplined loan portfolio expansion, strong deposit growth, and enhanced yields across interest-earning assets.” — Santaniello .
Q1 message reinforced focus on expense discipline, healthy credit, and strategic execution into 2025, underpinning positive outlook .

No Q3 2025 earnings call transcript was available in our document set; no public Q&A themes to report for the period [ListDocuments/SearchDocuments returned none].

S&P Global consensus for Q3 2025 EPS and revenue was unavailable at time of analysis; recommend monitoring for post-result estimate revisions (Values retrieved from S&P Global).
In absence of consensus, we benchmark actuals against sequential and YoY trends: EPS $1.27 (+6% QoQ; +48% YoY) and NIM 2.95% (up 3 bps QoQ; +25 bps YoY) .

Earnings quality improved: higher net interest income and expanding NIM drove EPS to $1.27; provisioning eased on better credit metrics .
Funding remains a strength: deposit growth supported asset expansion and helped manage cost of funds (1.98%), underpinning spread gains .
Credit risk trending favorably: NPAs and non-accruals declined further; net charge-offs are low, reducing pressure on provisions .
Operating efficiency improved: FTE efficiency ratio fell to 60.17%, with continued leverage from higher revenues vs OpEx .
Capital accretion and TBV growth: TBV/share rose to $36.23; well-capitalized positioning supports growth and dividend increases .
Dividend as near-term catalyst: Q4 dividend raised to $0.43 (+7.5%), extending 11 years of growth, attractive for income-focused holders .
Model updates: With consensus unavailable, recalibrate assumptions for NIM trajectory, deposit mix, and credit costs; expect estimate upward revisions if NIM and asset quality trends persist (Values retrieved from S&P Global).