Fidelity D&D Bancorp (NASDAQ:FDBC) reported record full-year results for 2025 on Wednesday, as the parent company of Fidelity Bank successfully navigated a volatile interest rate environment to deliver double-digit profit growth.
Net income for the year soared 36% to $28.2 million, or $4.86 per diluted share, up from $20.8 million in 2024.
The primary engine of growth was a substantial increase in net interest income, which rose $10.8 million to $72.7 million.
Management attributed the gains to a "targeted relationship strategy" that expanded the loan portfolio and improved fully-taxable equivalent (FTE) net interest margins to 2.95%.
For the fourth quarter alone, net income reached $7.94 million, a 36% jump that capped off the company's most profitable year to date.
Meanwhile, the bank’s balance sheet health remained a standout in the regional banking sector.
Asset quality actually improved during the year, with non-performing assets dropping to just $2.2 million—representing a negligible 0.08% of total assets.
Shareholders’ equity also saw significant gains, with tangible book value per share rising to $37.88 by year-end.
In a move to further reward shareholders, the board recently increased the quarterly dividend by 7.5% to $0.43 per share, marking the eleventh consecutive year of dividend hikes.
The company also returned a total of $9.5 million in cash dividends to shareholders in 2025.