Fidelity D & D Bancorp (NASDAQ:FDBC), the parent company of The Fidelity Deposit and Discount Bank, delivered a strong start to 2026, reporting net income of $7.5 million for the quarter ended March 31, 2026.
This represents a 25% increase over the $6 million reported in the first quarter of 2025, supported by the bank's continued expansion in the Pennsylvania and Lehigh Valley markets.
Diluted earnings per share for the quarter reached $1.28, a 24% increase from the $1.03 per share earned in the prior-year period.
The primary driver of the earnings momentum was a 14% rise in net interest income, which climbed to $19.4 million.
This growth was fueled by significant loan demand and wider fully taxable equivalent (FTE) margins, as the bank successfully repriced its portfolio in a higher-for-longer interest rate environment.
The bank's balance sheet showed consistent growth, with total assets reaching $2.9 billion at quarter-end.
This expansion was underpinned by solid loan production, though management maintained a cautious stance on credit quality.
The provision for credit losses saw a modest increase during the quarter, reflecting higher loan volumes and an increase in unfunded commitments.
Non-interest expenses rose 4% to $15.2 million, primarily due to investments in personnel and digital banking technology.
Meanwhile, Fidelity D & D Bancorp remains well-capitalized, reporting a total risk-based capital ratio of 14.45% and a tangible book value per share of $38.67.
Earlier in the quarter, the company signaled its confidence in its capital position by declaring a quarterly dividend of $0.43 per share, a 7.5% increase over the previous year.