Dividend declared
The Board of Directors of Fidelity D-D Bancorp, Inc. (the “Company”) announced its third-quarter dividend of $0.28 consistent with a consistent percentage of the Company. The dividend will be paid on 10 September 2020 to holders of the records recorded at the close of the public on 20 August 2020.
Unaudited economic information
As announced a moment ago, Compabig Apple acquired MNB Corporation (MNB) and its wholly owned subsidiary Merchants Bank of Bangor as of May 1, 2020. The fair charge of total assets added $451 million in assets, $39 five million in deposits and $2four5 million in loans to the Compabig apple balance sheet. The effects presented come with provisional accounting stipulaters for the acquisition of MNB that are subject to review over long-term periods when the application of accounting rules for business combinations is very durable. Based on the last charge of April 30, 2020, the merger valuation was $5.4 million. Merger fees totaled $2.2 million on a gross basis until June 30, 2020.
Daniel J. Santaniello, President and CEO, said: “During the provision pandemic, Fidelity Bankers continued to specialize in delivering the long-term strategic relationship design initiative through biological and inbiological growth. Although the economic effects for the first component of 2020 were negatively impacted through the expected and non-recurring expenses applicable with the acquisition of MNB Corporation, the Board of Directors and the control are satisfied with the key effects of the Bank’s operation. We believe that the addition of Leh8 Valley Bankers and the strong balance sheet will continue to create long-term shareholder value.
Mr. Santaniello also commented: “In addition, the economic effects of the combined apple by a quarter of 2020 were affected through COVID-1nine. During these unprecedented periods, the comparative apple has taken the mandatory breeding station to unite the fitness and well-being of bankers, consumers and the Fidelity community. Through the collective efforts of Fidelity Bankers, several projects have been taken to build a partnership with clients and help them through the economic crisis. $157 million, provided 1.42 nine loan extensions to customers and strengthened the provision for credit losses. With a solid balance and capital, we, the combined apple, are well placed to withstand economic mismatches.”
The combined apple announced proactive projects in March 2020 to support its consumers, Fidelity Bankers and communities suffering from the effects of the coronavirus pandemic. Management activated its pandemic reaction plan in March 2020, business continuity while limiting the health, advocacy and well-being of bankers, consumers and the community. Special Meabounds included:
Apple Compabig processed 1,413 programs for more than $157 million in loans under the Small Business Administration (SBA) PayCheck Protection Program (PPP), demonstrating Apple Compatig’s commitment to supporting all small businesses. These PPP loans generated approximately $5.2 million in SBA processing costs, net of assembly costs, of which $0.8 million earned at the time of a quarter. The remaining balance of $4.4 million is expected to continue to be earned over the remaining life of the loan. However, most of those rates can only be identified at the time when a 2020 component if canceled through the SBA. Fidelity Deposit and Discount Bank is a deposit collection facility eligible for the settlement mechanism of the Payment Verification Policy (PPPLF) program that has received an extension of credits under PPPLF to finance PPP loans.
Consolidated summary of the effects of the open quarter
The net interest source of the coins was $10.8 million at the time of a 2020 quarter, 3% more than the $7.8 million earned at the time of a 201 quarter nine. The $3.0 million improvement in the net interest source of currencies resulted from an average balance of higher interest-score assets of $four26.1 million. offset the decline in the returns of those assets. The loan portfolio had the biggest impact, leading to a $2.6 million design on interest bills directly compared to $30nine.nine million in line with average balances, is a great friend due to the addition of BNM loans to the balance sheet. The Compabig apple also recorded a $0.8 million in interest due to the provision in SBA rates recorded at the time of a 2020 quarter in PPP loans. Interest on the design of the investment portfolio increased through $0.1 million, as the average increase in offset balances minimizes returns. Interest expenses were minimized through $0.4 million because they minimize deposit rates and minimize borrowed fees. The average balance of the disposition of interest-bearing deposits increased through $2ninefour.1 million and the fees paid on those deposits were minimized through four basic elements, leading to a minimum of $0.3 million in interest expenses. MNB’s interest deposits had favorable rates and reduced the interest deposit rate on the Compabig apple. The Compabig apple used an additional $63.4 million in medium- and short-term loans, however, excessive loans were replaced through PPPLF financing by minimizing interest rates by reducing interest expenses on loans by $0.1 million. The overall charge of borrowers with interest was 0.57% at the time one quarter of 2020, a minimum of 56 basic elements of 1.13% paid for a quarter of 201 ninety. The budget burden was reduced to a minimum through four basic elements to 0.four2% for the time being in a quarter of 2020 compared directly to 0.88% for the time a quarter of 201nine. The net interest spread of the largest taxable equivalent (ETP) friend of the Compabig apple (not GAAP) was 3.20% at the time one quarter of 2020, 3 basic things not until the 3.23% recorded for a similar quarter of 201 nine. Compabig’s net ETP (non-GAAP) interest margin was 20 basis elements to 20 basis items for the 3 months ended June 30, 2020, directly compared to 3.5% for a similar period consisting of 201nine.
The provision for credit losses was currently $1.nine million for the time one quarter of 2020, a distribution of $1.6 million of $0.3 million for the time one quarter of 201nine. The really extensive design at the source during the previous year was due to the upstream design station at quality points resulting from public fitness and the economic crisis caused by the COVID-1nine pandemic. This amount of provision reflected which control concept is so mandatory to keep the source of loan and rental losses at a smart enough level.
The distribution of non-interest-related expenses increased through $four. Nine million, or 76%, at the moment one quarter of 2020 to $11.3 million, directly compared to $6.four million for a similar 201 quarter nine. Most of the design was due to $1.nine million in similar one-time merger expenses, primarily applicable with professional services, salaries and benefits, and data processing costs applicable with the acquisition of MNB. The combined apple also recorded $1.6 million in more salaries and profits mainly due to a design in the diversity of bankers after the merger. During the first quarter of 2020, Apple Compabig’s prepaid FHLB advances due to unfavorable rates from friends who are incontinuously favorable in FHLB’s advances in relation to fees on other financing resources and incurred an early repayment penalty of $0.f5 million. The Compabig apple also recorded an upstream design station of $0. five million in professional services, $0. four million in locals and equipment, and $0. four million in knowledge processing and communications costs mainly due to pandemic and acquisition costs applicable to MNB Corporation. These design upstream stations were compensated by friends larger through an additional $0.4 million in applicable assembly loan transfer costs with P3 loans.
The provision for the source of tax coins was minimized by $0.five million at the time of a quarter of 2020 compared to the similar quarter of 201 nine due to minimizing the source of pre-tax currencies. However, the effective tax rate for the time 2020 quarter was 21% compared directly to 16% for the time one quarter of 201 nine due to non-deductible merger facilitation expenses.
Consolidated Opescore Produces the Birth of the Year
The net interest source of the coins was $18.8 million for the six months ended June 30, 2020, directly compared to $1five.7 million for the six months ended June 30, 201 nine. The improvement of $3.1 million, or 20%, was the result of the gains of an upstream asset consistent with the average interest balance – productive assets combined with minimizing interest expenses due to minimizing interest rates paid on interest-earning liabilities. The loan portfolio ended with an increase in interest payments, the increase of which increased by $2.7 million due to higher average balances due to borrowing, PPP loans and increased design loan growth activities. On the liability side, interest spending was minimized through $0.5 million due to lower interest rates paid on deposits and interest-accruing loans. ETP’s net interest margin was 3.21% for the first component of 2020, seven core elements that did not reach 3.28% for the first component of 201nine. During the similar consistency period, the Company’s net ETP interest margin was kept to a minimum through nine core elements to 3.3% to 3.15%.
The total source of interest-free coins for the six months ended June 30, 2020 was $five million, a disposal of $0. five million, or 10%, of $five million for the six months ended June 30, 2019. The distribution of other profits included: $0.3 million in loan service fees, $0.3 million in loan sales earnings, $0.2 million in in-off fees and $0.2 million in accepting as true with fees. These design upstream stations were partially compensated by friends through a minimum fee at economic centers of $0.2 million, a $0.1 million provision in loan control fee repayment and $0.1 million fewer deposit service charges.
Provision of non-interest expenses up to $18.6 million for the six months ended June 30, 2020, a provision of $5.4 million, or four1%, of $13.2 million for the six months ended June 30, 2019. The main reason for this provision was a $2.2 million provision in merger-like expenses in connection with the acquisition of MNB. In addition, there was $1.8 million in more salary and benefit expenses, $0.6 million in services compatible with professional services, $0. five million in FHLB prepaid fees, $0. four million in plus charges and equipment, and a $0 design. four million. in knowledge processing charges. These design upshift stations were compensated by friends more largely through $0.5 million relief on other expenses due to a higher transfer of charges for P3 loans.
The provision for the source of coins in taxes was minimized by $0.5 million in the first component of 2020 compared to the similar era in 201 nine due to the source of coins before minimized taxes. However, the effective tax rate at the moment a component of 2020 was 17% compared directly to 16% at the time a component of 201nine due to non-deductible merger facilitation charges.
Consolidated balance sheet and asset summary
Total non-active assets were $5.6 million, or 0.31% of total assets, as of June 30, 2020, directly compared to $5.0 million, or 0.50% of total assets, as of December 31, 2019. The total loan amount was 0.46% compared directly to 0.67% as of December 31, 2019. Net depreciation of average total loans decreased to 0.06% as of June 30, 2020 from 0.15% to December 31, 2019.
Wealth design rose through $50.3 million, or four7 percent, to $1 million7.1 million as of June 30, 2020, from $106.8 million to December 31, 201 nine. The design was mainly due to $four and five. Four million rare consistent percentages emitted the merger. The net source of $2.nine million coins was supplemented by an improvement of $3.6 million, after tax, in net unsatified earnings in the investment portfolio. An additional $0.nine million for issuing consistent, uncommon percentages under Apple Compabig’s consistent percentage plans and stock-based repayment was offset by $2.5 million in currency dividends paid to consistent shareholders. The Compabig apple remains well capitalized and is located for continuous expansion with an overall fairness of 8.72% of total assets as of June 30, 2020. The income charge consistent with a steady percentage was $2 nine.77 as of June 30, 2020, directly compared to $28.20 as of December 31, 201 nine.
Fidelity D-D Bancorp, Inc. has created a strong stake as trusted economic advisors for clients served through Fidelity Depo and Discount Bank and is proud to be an active member of the Northeast Pennsylvania and Leh8 Valley community. Part of the Bank’s assignment is to be a tight business wife in its market position sectors through volunteering, the best friend, 3,000 hours of volunteer time, either one year for non-evident compatibility organizations. Compabig Apple serves several offices in eastern Pennsylvania, providing non-public banking and advertising products and services, adding wealth control plans through fiduciary activities with the Bank’s full trusted powers; and be providing a full range of asset control services. The Bank provides 24/7 service to consumers through its branches, online at www.bankatfidelity.com and during the customer service center at 800-388-4380. The Bank’s deposits are insured through the Federal Insurance Corporation of Depo directly, to the extent permitted by law.
Non-GAAP financial measures
Non-GAAP economic meabounds shall counterpoint the GAAP used to organize the outcome of the Company’s operations and shall not be read in isolation or used as an alterlocal to GAAP. In the case of such disclosure or publication, Regulation G of the Securities and Exposure Command (SEC) requires: (i) the presentation of the directly comparable economic average calculated and submitted in accordance with the GAGA and (ii) a reconciliation of the differences between the non-GAAP economic meabound submitted and the directly comparable maximum economic meabound calculated and submitted in accordance with GAAP. Reconciliations between GAAP and non-GAAP operational measures and directly comparable maximum GAAP economic measures are included in the tables at the end of this press release.
Management believes that merger-like expenses do not appear to be popular costs required for operations. These fees mainly constitute professional fees and integration costs and formula applicable to the transaction. These costs are explicit for any of the individual transactions and could be diverse, namely debugging along and complexity of the transaction. Management also believes that the costs of paying FHLB payments incurred to pay FHLB advances do not appear recurring and the preference for scoring overheads for comparison purposes is excluded.
Interest income was fully-taxable equivalent (FTE) adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable in order to calculate certain ratios within this document. This treatment allows a uniform comparison among yields on interest-earning assets. Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2020 and 2019.
Forward-looking statements
The Compabig apple warns readers not to unduly rely on advance statements, which reflect studies only as of the date of this release. Compabig Apple has no mandatory obligation to update the direct declarations of the abig apple to reflect the parties or times after the date of this release.
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