NASDAQ$FDBC

Fidelity D & D Bancorp Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Fidelity D & D Bancorp reported a decrease in net income due to an increase in non-interest expenses, which included nonrecurring merger-related expenses, but achieved growth in average interest-earning assets funded by increases in average deposits and shareholders’ equity.

Fidelity D & D Bancorp, Inc. reported a net income of $2.6 million, or $0.69 diluted earnings per share, for the quarter ended March 31, 2020. This represents a decrease compared to the $2.8 million, or $0.73 diluted earnings per share, reported for the same quarter in 2019. The reduction in net income was primarily due to an increase in non-interest expenses, including merger-related expenses.

  • Net income decreased by 6% due to increased non-interest expenses, including $0.3 million in merger-related expenses.
  • Excluding merger-related expenses, adjusted net income would have increased by 3% compared to Q1 2019.
  • Average interest-earning assets increased by 5%, funded by growth in average deposits and shareholders’ equity.
  • Company provided hardship relief to 1,324 customers with balances totaling $165 million through March 31, 2020, in response to the pandemic's economic impact.

Headline financials

Total Revenue

$10.8M

Previous: $10.4M+3.8%
EPS (adj)

$0.69

Previous: $0.73-5.5%
Net Interest Margin

3.5%

Previous: 3.6%-4.1%
Efficiency Ratio

66.7%

Previous: 64.2%+4.0%
Return on Avg Assets

1.0%

Previous: 1.2%-11.9%
Return on Avg Equity

9.7%

Previous: 12.0%-18.7%
Capital Expenditures

-$271K

Previous: -$334K+18.9%
Free Cash Flow

$2.36M

Previous: $2.47M-4.3%
Net Income

$2.63M

Previous: $2.8M-6.0%
Operating Income

$7.29M

Previous: $7.26M+0.5%
Gross Profit

$10.8M

Previous: $10.4M+3.8%
Cash & Equivalents

$59M

Previous: $15.3M+285.1%
Total Assets

$1.06B

Previous: $964M+10.2%
Stock-Based Comp

$243K

Previous: $279K-12.9%

Revenue & EPS history

Fidelity D & D Bancorp · Revenue · Quarterly

$10.8M

Q1 2020+3.8%vs Q1 2019

Forward guidance

Fidelity Bank is preparing for the successful integration of Merchants Bank during the 2nd quarter of 2020 and is well positioned to navigate through the current economic uncertainties.

Tailwinds

  • Strong balance sheet
  • Strong capital
  • Successful integration of Merchants Bank during the 2nd quarter of 2020
  • Well positioned to navigate through the current economic uncertainties

Headwinds

  • Economic conditions particularly with regard to the negative impact of severe and wide-ranging disruptions caused by the spread of Coronavirus Disease 2019 (COVID-19) on current customers, specifically the effect of the economy on loan customers’ ability to repay loans
  • The costs and effects of litigation and of unexpected or adverse outcomes in such litigation
  • The impact of new or changes in existing laws and regulations, including the Tax Cuts and Jobs Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations promulgated there under
  • Impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules
  • Governmental monetary and fiscal policies, as well as legislative and regulatory changes

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

39%

26 / 66 earnings

Positive

+15.2%

Q3 2011

Best reaction

-10.6%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%+0.6%-0.5%
Q4 2025-1.9%+6.5%+0.4%
Q3 2025+2.2%+2.4%+2.6%
Q2 2025-0.8%-1.6%+8.5%
Q1 2025+2.9%-0.4%-1.8%
Q4 2024+1.5%+2.7%+2.1%
Q3 2024+2.5%+4.5%+6.9%
Q2 2024-0.6%-4.8%-10.2%
Q1 2024-3.6%-2.9%-2.9%
Q4 2023+3.0%+8.7%-1.8%
Q3 2023-0.4%+0.2%+15.7%
Q2 2023-1.3%+0.7%-8.3%
Q1 2023-0.7%-4.1%-11.0%
Q4 2022-0.6%-0.8%+6.5%
Q3 2022+0.9%+0.9%+4.5%
Q2 2022+6.7%+5.5%+4.4%
Q1 2022-1.8%-3.4%+0.4%
Q4 2021+1.4%+3.4%-1.2%
Q3 2021+1.7%+3.8%+4.6%
Q2 2021-0.8%+0.5%+3.2%
Q1 2021+0.2%+4.3%-1.5%
Q4 2020-9.0%-10.4%-6.6%
Q3 2020+2.2%+2.0%+27.5%
Q2 2020-10.6%-9.7%-6.4%
Q1 2020-0.5%-4.1%-2.0%
Q4 2019+1.1%-4.9%-18.6%
Q3 2019-1.0%+0.4%+2.7%
Q2 2019-4.3%-2.2%-11.4%
Q1 2019-2.8%-0.4%-0.2%
Q4 2018-0.2%+1.5%-0.9%
Q3 2018+2.6%-0.6%-12.0%
Q2 2018+0.4%-7.2%-9.9%
Q1 2018-2.5%-4.3%+1.0%
Q4 2017+0.3%+0.3%+5.9%
Q3 2017+3.9%+5.6%+17.4%
Q2 2017+0.5%+1.3%+8.3%
Q1 2017-1.7%-1.7%-0.8%
Q4 2016+0.0%+3.2%+2.7%
Q3 2016-1.5%-1.5%+0.4%
Q2 2016+2.3%+1.5%+1.5%
Q1 2016+0.0%
Q4 2015-1.4%
Q3 2015-1.3%
Q2 2015+0.0%
Q1 2015+0.0%
Q4 2014+5.9%
Q3 2014+0.2%
Q2 2014+0.2%
Q1 2014-0.4%
Q4 2013+0.0%
Q3 2013+7.8%
Q2 2013+0.0%
Q4 2012+0.0%
Q1 2013-0.9%
Q4 2011+0.0%
Q1 2010+0.0%
Q3 2012+0.0%
Q2 2012-0.2%
Q1 2011+0.0%
Q1 2012+0.0%
Q4 2009+2.1%
Q3 2010+15.2%
Q3 2011+15.2%
Q4 2010+0.0%
Q2 2010+0.0%
Q2 2011+0.0%

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