Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) reported unaudited financial results for the three and nine-month periods ended September 30, 2026, announcing record earnings for the third quarter. The company reported net income of $8.9 million for the third quarter of 2026, or $1.53 per diluted share, compared to $7.3 million, or $1.27 per diluted share, in the prior year period. This represents a $1.6 million, or 21%, increase in net income.
The increase in net income was driven primarily by a $3.4 million rise in net interest income and a $1.0 million increase in non-interest income. These gains were partially offset by a $1.5 million increase in non-interest expenses and a $1.1 million increase in the provision for credit losses on loans due to loan growth. For the nine months ended September 30, 2026, net income totaled $24.2 million, or $4.16 per diluted share, compared to $20.3 million, or $3.50 per diluted share, in the same period of 2025.
Net interest income for the third quarter of 2026 increased $3.4 million, or 18%, compared to the prior year. This growth was attributed to higher average loan balances and improved loan yields, coupled with lower funding costs. The company’s fully-taxable equivalent (FTE) net interest margin increased to 3.30% for the third quarter of 2026, up 35 basis points from the prior year. Total non-interest income for the quarter was $6.1 million, an increase of $1.0 million, or 20%, driven by higher wealth management revenue and a gain on the sale of bank property.
Non-interest expenses for the quarter increased to $16.1 million, a rise of $1.5 million, or 10%, primarily due to added salaries and benefits and higher premises and equipment costs. Despite the expense increase, the efficiency ratio improved to 56.11% from 60.17% in the prior year. As of September 30, 2026, total assets stood at $3.0 billion, an increase of $280.3 million from December 31, 2025. This growth was funded by deposit growth of $142.9 million and an increase in short-term borrowings of $132.7 million.
The company’s capital ratios remain strong, with Tier 1 capital at 9.64% of total average assets and total risk-based capital at 14.10% of risk-weighted assets. Asset quality metrics were stable, with total non-performing assets at $2.6 million, or 0.08% of total assets, and past due and non-accrual loans to total loans at 0.19%. The company declared cash dividends of $7.6 million during the nine-month period.
