The consistent NIM expansion and strong loan growth signal accelerating earnings power, but the reliance on $119.8M in short-term borrowings to fund growth introduces funding risk if deposit competition intensifies. Monitor the Q3 2026 expense trajectory and whether the bank can convert the higher-cost borrowings into core deposit growth.
Price Chart
Executive Summary
Fidelity D & D Bancorp reported Q2 2026 net income of $7.8M ($1.33/diluted share), up 13% YoY from $6.9M ($1.20/share), driven by a 16% increase in net interest income to $20.8M. The bank continues to show strong loan growth and margin expansion, with total assets reaching $3.0B, though non-interest expenses rose 9% YoY and the bank took on $119.8M in short-term borrowings to fund growth. The sequential improvement from Q1 2026 ($1.28 EPS) and continued NIM expansion to 3.22% confirm the positive trajectory, but elevated expense growth tempers the outlook.
Key Financial Metrics
Key Facts
- Q2 2026 net income of $7.8M ($1.33/diluted share) vs $6.9M ($1.20) in Q2 2025, a 13% increase
- Net interest income rose 16% YoY to $20.8M, driven by loan growth and 9bps FTE yield expansion
- FTE net interest margin expanded 30bps to 3.22% from 2.92% a year ago
- Total assets grew to $3.0B, up $223.1M from Dec 2025, with $174.9M net loan growth
- Non-performing assets declined to 0.06% of total assets from 0.08% at Dec 2025
- Non-interest expenses increased 9% YoY to $16.0M, driven by higher salaries and benefits
- Short-term borrowings jumped to $119.8M from $20K at Dec 2025 to fund loan growth
- Tangible book value per share rose to $40.08 from $37.88 at Dec 2025
Financial Impact
Net income up $0.9M YoY (+13%); NII up $2.9M (+16%)
Risk Factors
- Non-interest expenses growing faster than revenue (9% vs 16% NII growth) could pressure operating leverage
- Heavy reliance on $119.8M in short-term borrowings creates funding cost risk if rates remain elevated
- Tangible common equity ratio declined to 7.89% from 8.01% at Dec 2025, signaling modest capital erosion from rapid asset growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-024048 |
| Document: fdbc20260518_8k.htm | 0001437749-26-024048 |
| Document: 0001437749-26-024048-index-headers.html | 0001437749-26-024048 |
| Document: 0001437749-26-024048-index.html | 0001437749-26-024048 |
| Document: 0001437749-26-024048.txt | 0001437749-26-024048 |
| 8-K Data (Synthetic) | 0001437749-26-024048 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $62.97 | awaiting T+60 | — | $65.09 (+3.37%) |
Oct 21, 2026 5d ago | 8-K | $58.97 | awaiting T+60 | — | $65.09 (+10.38%) |
Jul 22, 2026 13w ago | 8-K | $51.35 $57.84 | ▲ +12.64% | ▲ +9.38% | $65.09 (+26.76%) |
Apr 22, 2026 26w ago | 8-K | $45.59 $52.47 | ▲ +15.09% | ▲ +10.31% | $65.09 (+42.77%) |
Apr 22, 2026 26w ago | Press Release | $45.59 $52.47 | ▲ +15.09% | ▲ +10.31% | $65.09 (+42.77%) |
US Market Status
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