Fidelity D & D Bancorp, Inc. Reports First Quarter 2026 Financial Results

DUNMORE, Pa., April 22, 2026 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ:FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three-month period ended March 31, 2026.

Unaudited Financial Information

Net income for the quarter ended March 31, 2026 was $7.5 million, or $1.28 per diluted share, compared to $6.0 million, or $1.03 per diluted share, for the quarter ended March 31, 2025.  The $1.5 million, or 25%, increase in net income resulted primarily from a $2.4 million increase in net interest income coupled with a $0.2 million increase in non-interest income. This was partially offset by a $0.6 million increase in non-interest expense and a $0.6 million increase in the provision for credit losses on the growth of loans and unfunded commitments.

"We are pleased to report strong first quarter results for 2026," said Daniel J. Santaniello, President and Chief Executive Officer. "Fidelity Bank reached quarter-end assets of $2.9 billion, delivering a 25% year-over-year increase in net income to $7.5 million and a 24% increase in diluted earnings per share. These results reflect solid asset growth, consistent operational execution, and continued strength across our core businesses. I am grateful to our bankers whose expertise, collaboration, and commitment continue to drive our performance and support our shared success as we carry this momentum forward."

Consolidated First Quarter Operating Results Overview

Net interest income was $19.4 million for the first quarter of 2026, representing a 14% increase over the $17.0 million earned for the first quarter of 2025.  The $2.4 million increase in net interest income resulted from the increase of $2.2 million in interest income primarily due to a $160.6 million increase in the average balance of interest-earning assets and a 4 basis point increase in fully-taxable equivalent ("FTE") (non-GAAP measurement) yields. The loan portfolio had the most significant impact, producing a $2.0 million increase in FTE interest income from $132.8 million in higher quarterly average balances and an increase of 5 basis points in FTE loan yields. Additionally, the Company experienced an increase of $0.6 million in interest earned from interest-bearing deposits with other financial institutions from $77.3 million in higher average balances. The increase in interest income was coupled with a $0.2 million decrease in interest expense due to a 22 basis points decrease in rates paid on interest-bearing deposits which more than offset the increase from $138.0 million in higher average balances compared to the first quarter of 2025.

The FTE yield on interest-earning assets was 4.77% for the first quarter of 2026, an increase of 4 basis points from 4.73% for the first quarter of 2025. The overall cost of interest-bearing liabilities was 2.27% for the first quarter of 2026, a decrease of 22 basis points from the 2.49% for the first quarter of 2025.  The cost of funds decreased 16 basis points from 1.93% to 1.77% for the first quarters of 2025 and 2026, respectively. The Company's FTE net interest spread was 2.50% for the first quarter of 2026, an increase of 26 basis points from 2.24% recorded for the first quarter of 2025.  FTE net interest margin increased to 3.08% for the three months ended March 31, 2026 from 2.89% for the same period of 2025.

For the three months ended March 31, 2026, the provision for credit losses on loans was $875 thousand and the provision for credit losses on unfunded commitments was $90 thousand, compared to a $455 thousand provision for credit losses on loans and a $85 thousand net benefit in the provision for credit losses on unfunded loan commitments for the three months ended March 31, 2025. For the three months ended March 31, 2026, the increase in the provision for credit losses on loans compared to the prior year period was due to significantly higher loan growth. For the three months ended March 31, 2026, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to the originated growth in the portfolio, specifically in commercial construction commitments.

Total non-interest income increased $0.2 million, or 4%, to $5.2 million for the first quarter of 2026 compared to $5.0 million for the first quarter of 2025. The increase in non-interest income was primarily attributed to increases of $0.4 million in fees from commercial loans with interest rate hedges and $0.3 million in wealth management revenue with the largest contributor being personal trust fees. These increases were partially offset by a $0.6 million lower gain on sold loans due to a $0.5 million gain on the sale of a commercial loan during the first quarter of 2025. Additionally, the Company saw an increase of $0.2 million in commercial loan late fees due to two substandard loans that were paid off in the first quarter of 2026.

Non-interest expenses increased $0.6 million, or 4%, for the first quarter of 2026 to $15.2 million from $14.6 million for the same quarter of 2025. The increase in non-interest expenses was attributed to the increases in salaries and benefits expense of $0.4 million primarily due to an increase in the number of bankers and incentive-based compensation throughout the quarter.

The provision for income taxes decreased $0.1 million during the three months ended March 31, 2026 compared to the same period in 2025 primarily due to a $0.5 million discount recognized in the provision from utilizing/applying purchased renewable energy tax credits in the first quarter of 2026.

Consolidated Balance Sheet & Asset Quality Overview

The Company's total assets had a balance of $2.9 billion as of March 31, 2026, an increase of $111.2 million from December 31, 2025. The increase resulted from $111.9 million of growth in the loans and leases portfolio as of March 31, 2026 compared to December 31, 2025. Cash and cash equivalents increased $6.9 million and premises and equipment increased $3.8 million over the same period. Asset growth was offset by a decrease of $11.6 million in the investment portfolio primarily due to the sale of $5.8 million in available-for-sale securities and $5.1 million in paydowns.

During the same time period, total liabilities increased $105.4 million, or 4%. Deposit growth of $109.1 million was utilized to fund loan growth and increase interest-bearing cash balances. For interest-bearing deposit accounts, the Company experienced increases of $63.5 million in money market deposits, $19.6 million in interest-bearing checking accounts, and $10.6 million in savings and clubs; these increases were partially offset by a $6.7 million decrease in time deposits. Additionally, the Company experienced an increase of $22.2 million in non-interest-bearing checking accounts. As of March 31, 2026, the ratio of insured and collateralized deposits to total deposits was approximately 73%.

Shareholders' equity increased $5.8 million, or 2%, to $244.7 million at March 31, 2026 from $238.9 million at December 31, 2025. The increase was caused by $4.9 million higher retained earnings from net income of $7.5 million plus a $0.4 million, after tax, improvement in accumulated other comprehensive income, partially offset by $2.5 million in cash dividends paid to shareholders. An additional $0.5 million was recorded from the issuance of common stock under the Company's stock plans and restricted stock activity. At March 31, 2026, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.38% of total average assets as of March 31, 2026. Total risk-based capital was 14.45% of risk-weighted assets and Tier 1 risk-based capital was 13.33% of risk-weighted assets as of March 31, 2026. Tangible book value per share was $38.67 at March 31, 2026 compared to $37.88 at December 31, 2025.  Tangible common equity decreased to 7.91% of total assets at March 31, 2026 compared to 8.01% at December 31, 2025 due to a 4% increase in total tangible assets compared to a 3% increase in tangible common equity.

Asset Quality

Total non-performing assets were $2.4 million, or 0.09% of total assets, at March 31, 2026, compared to $2.2 million, or 0.08% of total assets, at December 31, 2025. Past due and non-accrual loans to total loans were 0.28% at March 31, 2026 compared to 0.26% at December 31, 2025. Net charge-offs to average total loans were 0.02% at March 31, 2026 compared to 0.03% at December 31, 2025.

About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank

Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank ("Fidelity Bank").  Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company's vision is to serve as the best bank for the community, which was accomplished by having provided over 6,190 hours of volunteer time and over $1.5 million in donations to non-profit organizations directly within the markets served throughout 2025. Fidelity Bank's deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities.  The Company's non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company's operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Adjusted non-interest income used in the calculation of certain non-GAAP performance measures excludes gains and losses on securities sales in order to enhance comparability between reporting periods. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.

Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent ("FTE"), 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 2026 and 2025. FTE adjustments affect interest income and related ratios only and do not impact reported GAAP net income.

Forward-looking statements

Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  The words "expect," "anticipate," "intend," "plan," "believe," "estimate," and similar expressions are intended to identify such forward-looking statements.

The Company's actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:

• local, regional and national economic conditions and changes thereto;
• the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy;
• the risks of changes and volatility of interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities and interest rate protection agreements, as well as interest rate risks;
• securities markets and monetary fluctuations and volatility;
• disruption of credit and equity markets;
• 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;
• effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions;
• 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 laws and regulations concerning taxes, banking, securities and insurance and their application with which the Company and its subsidiaries must comply;
• the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters;
• the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;
• the effects of economic conditions of any other pandemic, epidemic or other health-related crisis such as COVID-19 and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers' ability to repay loans;
• the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes;
• technological changes;
• the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses;
• acquisitions and integration of acquired businesses;
• the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities;
• acts of war, terrorism, or armed conflict; and
• the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release.  The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

For more information please visit our investor relations web site located through www.bankatfidelity.com.

FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands)
At Period End:	March 31, 2026				December 31, 2025
Assets
Cash and cash equivalents	$	154,995			$	148,060
Investment securities		512,308				523,946
Restricted investments in bank stock		4,482				4,373
Loans and leases		2,023,671				1,911,724
Allowance for credit losses on loans		(20,942	)			(20,168	)
Premises and equipment, net		52,738				48,950
Life insurance cash surrender value		59,792				59,396
Goodwill and core deposit intangible		20,181				20,242
Other assets		52,040				51,535
Total assets	$	2,859,265			$	2,748,058
Liabilities
Non-interest-bearing deposits	$	574,808			$	552,581
Interest-bearing deposits		2,001,686				1,914,772
Total deposits		2,576,494				2,467,353
Short-term borrowings		10				20
Secured borrowings		4,825				5,995
Other liabilities		33,284				35,830
Total liabilities		2,614,613				2,509,198
Shareholders' equity		244,652				238,860
Total liabilities and shareholders' equity	$	2,859,265			$	2,748,058

Average Year-To-Date Balances:	March 31, 2026				December 31, 2025
Assets
Cash and cash equivalents	$	175,362			$	133,171
Investment securities		523,776				544,390
Restricted investments in bank stock		4,427				4,189
Loans and leases		1,945,837				1,866,637
Allowance for credit losses on loans		(20,289	)			(20,315	)
Premises and equipment, net		50,358				40,457
Life insurance cash surrender value		59,656				58,786
Goodwill and core deposit intangible		20,203				20,358
Other assets		50,183				42,032
Total assets	$	2,809,513			$	2,689,705
Liabilities
Non-interest-bearing deposits	$	558,264			$	543,794
Interest-bearing deposits		1,964,972				1,884,507
Total deposits		2,523,236				2,428,301
Short-term borrowings		16				17
Secured borrowings		5,557				6,127
Other liabilities		36,931				36,296
Total liabilities		2,565,740				2,470,741
Shareholders' equity		243,773				218,964
Total liabilities and shareholders' equity	$	2,809,513			$	2,689,705

FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Statements of Income (dollars in thousands)
	Three Months Ended
	Mar. 31, 2026				Mar. 31, 2025
Interest income
Loans and leases	$	26,618			$	24,596
Securities and other		3,842				3,712
Total interest income		30,460				28,308
Interest expense
Deposits		(10,981	)			(11,187	)
Borrowings		(73	)			(88	)
Total interest expense		(11,054	)			(11,275	)
Net interest income		19,406				17,033
Provision for credit losses on loans		(875	)			(455	)
Net (provision) benefit for credit losses on unfunded loan commitments		(90	)			85
Non-interest income		5,189				4,973
Non-interest expense		(15,191	)			(14,554	)
Income before income taxes		8,439				7,082
Provision for income taxes		(979	)			(1,091	)
Net income	$	7,460			$	5,991

	Three Months Ended
	Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025
Interest income
Loans and leases	$	26,618			$	27,269			$	26,660			$	25,328			$	24,596
Securities and other		3,842				3,815				4,022				4,437				3,712
Total interest income		30,460				31,084				30,682				29,765				28,308
Interest expense
Deposits		(10,981	)			(11,717	)			(12,158	)			(11,738	)			(11,187	)
Borrowings		(73	)			(87	)			(95	)			(98	)			(88	)
Total interest expense		(11,054	)			(11,804	)			(12,253	)			(11,836	)			(11,275	)
Net interest income		19,406				19,280				18,429				17,929				17,033
Provision for credit losses on loans		(875	)			(100	)			(200	)			(300	)			(455	)
Net (provision) benefit for credit losses on unfunded loan commitments		(90	)			(170	)			(110	)			(20	)			85
Non-interest income		5,189				5,122				5,105				5,359				4,973
Non-interest expense		(15,191	)			(14,921	)			(14,632	)			(14,710	)			(14,554	)
Income before income taxes		8,439				9,211				8,592				8,258				7,082
Provision for income taxes		(979	)			(1,271	)			(1,246	)			(1,337	)			(1,091	)
Net income	$	7,460			$	7,940			$	7,346			$	6,921			$	5,991

FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands)
At Period End:	Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025
Assets
Cash and cash equivalents	$	154,995			$	148,060			$	142,161			$	165,495			$	211,195
Investment securities		512,308				523,946				529,263				545,821				540,960
Restricted investments in bank stock		4,482				4,373				4,301				4,240				4,021
Loans and leases		2,023,671				1,911,724				1,914,893				1,837,477				1,817,509
Allowance for credit losses on loans		(20,942	)			(20,168	)			(20,218	)			(19,976	)			(20,017	)
Premises and equipment, net		52,738				48,950				45,422				40,097				34,995
Life insurance cash surrender value		59,792				59,396				58,995				58,849				58,458
Goodwill and core deposit intangible		20,181				20,242				20,303				20,364				20,431
Other assets		52,040				51,535				41,630				46,208				43,758
Total assets	$	2,859,265			$	2,748,058			$	2,736,750			$	2,698,575			$	2,711,310
Liabilities
Non-interest-bearing deposits	$	574,808			$	552,581			$	539,118			$	558,074			$	555,684
Interest-bearing deposits		2,001,686				1,914,772				1,927,795				1,877,254				1,901,775
Total deposits		2,576,494				2,467,353				2,466,913				2,435,328				2,457,459
Short-term borrowings		10				20				20				10				10
Secured borrowings		4,825				5,995				6,059				6,134				6,190
Other liabilities		33,284				35,830				34,511				39,191				35,977
Total liabilities		2,614,613				2,509,198				2,507,503				2,480,663				2,499,636
Shareholders' equity		244,652				238,860				229,247				217,912				211,674
Total liabilities and shareholders' equity	$	2,859,265			$	2,748,058			$	2,736,750			$	2,698,575			$	2,711,310

Average Quarterly Balances:	Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025
Assets
Cash and cash equivalents	$	175,362			$	150,706			$	122,808			$	161,316			$	97,384
Investment securities		523,776				529,518				544,476				546,149				557,726
Restricted investments in bank stock		4,427				4,345				4,277				4,158				3,973
Loans and leases		1,945,837				1,927,366				1,892,439				1,832,162				1,813,040
Allowance for credit losses on loans		(20,289	)			(20,478	)			(20,400	)			(20,357	)			(20,019	)
Premises and equipment, net		50,358				47,400				42,602				35,954				35,722
Life insurance cash surrender value		59,656				59,255				58,875				58,697				58,307
Goodwill and core deposit intangible		20,203				20,263				20,325				20,386				20,459
Other assets		50,183				39,527				42,724				42,729				43,177
Total assets	$	2,809,513			$	2,757,902			$	2,708,126			$	2,681,194			$	2,609,769
Liabilities
Non-interest-bearing deposits	$	558,264			$	549,911			$	544,511			$	547,278			$	533,286
Interest-bearing deposits		1,964,972				1,930,040				1,901,166				1,878,548				1,826,957
Total deposits		2,523,236				2,479,951				2,445,677				2,425,826				2,360,243
Short-term borrowings		16				20				16				10				22
Secured borrowings		5,557				6,028				6,093				6,162				6,226
Other liabilities		36,931				37,754				36,415				36,050				34,937
Total liabilities		2,565,740				2,523,753				2,488,201				2,468,048				2,401,428
Shareholders' equity		243,773				234,149				219,925				213,146				208,341
Total liabilities and shareholders' equity	$	2,809,513			$	2,757,902			$	2,708,126			$	2,681,194			$	2,609,769

FIDELITY D & D BANCORP, INC. Selected Financial Ratios and Other Financial Data
	Three Months Ended
	Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025
Selected returns and financial ratios
Basic earnings per share	$	1.29			$	1.38			$	1.27			$	1.20			$	1.04
Diluted earnings per share	$	1.28			$	1.37			$	1.27			$	1.20			$	1.03
Dividends per share	$	0.43			$	0.43			$	0.40			$	0.40			$	0.40
Yield on interest-earning assets (FTE)*		4.77	%			4.83	%			4.83	%			4.77	%			4.73	%
Cost of interest-bearing liabilities		2.27	%			2.42	%			2.55	%			2.52	%			2.49	%
Cost of funds		1.77	%			1.88	%			1.98	%			1.95	%			1.93	%
Net interest spread (FTE)*		2.50	%			2.41	%			2.28	%			2.25	%			2.24	%
Net interest margin (FTE)*		3.08	%			3.04	%			2.95	%			2.92	%			2.89	%
Return on average assets		1.08	%			1.14	%			1.08	%			1.04	%			0.93	%
Pre-provision net revenue to average assets*		1.36	%			1.36	%			1.30	%			1.28	%			1.16	%
Return on average equity		12.41	%			13.45	%			13.25	%			13.02	%			11.66	%
Return on average tangible equity*		13.53	%			14.73	%			14.60	%			14.40	%			12.93	%
Efficiency ratio (FTE)*		58.53	%			58.35	%			60.17	%			61.17	%			61.67	%
Expense ratio		1.36	%			1.36	%			1.39	%			1.40	%			1.37	%

Other financial data	At period end:
(dollars in thousands except per share data)	Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025
Assets under management	$	1,096,776			$	1,058,881			$	1,037,414			$	1,030,268			$	955,647
Book value per share	$	42.14			$	41.39			$	39.75			$	37.78			$	36.70
Tangible book value per share*	$	38.67			$	37.88			$	36.23			$	34.25			$	33.16
Equity to assets		8.56	%			8.69	%			8.38	%			8.08	%			7.81	%
Tangible common equity ratio*		7.91	%			8.01	%			7.69	%			7.38	%			7.11	%
Allowance for credit losses on loans to:
Total loans		1.04	%			1.06	%			1.06	%			1.09	%			1.10	%
Non-accrual loans		8.65x				10.66x				7.78x				6.50x				3.36x
Non-accrual loans to total loans		0.12	%			0.10	%			0.14	%			0.17	%			0.33	%
Non-performing assets to total assets		0.09	%			0.08	%			0.11	%			0.13	%			0.23	%
Net charge-offs to average total loans		0.02	%			0.03	%			0.03	%			0.05	%			0.02	%
Capital Adequacy Ratios
Total risk-based capital ratio		14.45	%			14.78	%			14.52	%			14.72	%			14.74	%
Common equity tier 1 risk-based capital ratio		13.33	%			13.65	%			13.39	%			13.57	%			13.57	%
Tier 1 risk-based capital ratio		13.33	%			13.65	%			13.39	%			13.57	%			13.57	%
Leverage ratio		9.38	%			9.34	%			9.27	%			9.16	%			9.22	%

* Non-GAAP Financial Measures - see reconciliations below

FIDELITY D & D BANCORP, INC. Reconciliations of Non-GAAP Financial Measures to GAAP
Reconciliations of Non-GAAP Measures to GAAP	Three Months Ended
(dollars in thousands)	Mar. 31, 2026				Dec. 31, 2025				Sep. 30, 2025				Jun. 30, 2025				Mar. 31, 2025
FTE net interest income (non-GAAP)
Interest income (GAAP)	$	30,460			$	31,084			$	30,682			$	29,765			$	28,308
Adjustment to FTE		784				800				785				760				771
Interest income adjusted to FTE (non-GAAP)		31,244				31,884				31,467				30,525				29,079
Interest expense (GAAP)		11,054				11,804				12,253				11,836				11,275
Net interest income adjusted to FTE (non-GAAP)	$	20,190			$	20,080			$	19,214			$	18,689			$	17,804
Efficiency Ratio (non-GAAP)
Non-interest expenses (GAAP)	$	15,191			$	14,921			$	14,632			$	14,710			$	14,554
Net interest income (GAAP)		19,406				19,280				18,429				17,929				17,033
Plus: taxable equivalent adjustment		784				800				785				760				771
Non-interest income (GAAP)		5,189				5,122				5,105				5,359				4,973
Loss (Gain) on sales of securities		577				371				(3	)			-				822
Net interest income (FTE) plus adjusted non-interest income (non-GAAP)	$	25,956			$	25,573			$	24,316			$	24,048			$	23,599
Efficiency ratio (non-GAAP) (1)		58.53	%			58.35	%			60.17	%			61.17	%			61.67	%
(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest income.
Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP)
Total assets (GAAP)	$	2,859,265			$	2,748,058			$	2,736,750			$	2,698,575			$	2,711,310
Less: Intangible assets		(20,181	)			(20,242	)			(20,303	)			(20,364	)			(20,431	)
Tangible assets		2,839,084				2,727,816				2,716,447				2,678,211				2,690,879
Total shareholders' equity (GAAP)		244,652				238,860				229,247				217,912				211,674
Less: Intangible assets		(20,181	)			(20,242	)			(20,303	)			(20,364	)			(20,431	)
Tangible common equity		224,471				218,618				208,944				197,548				191,243
Common shares outstanding, end of period		5,805,180				5,771,110				5,767,288				5,767,490				5,767,500
Tangible Common Book Value per Share	$	38.67			$	37.88			$	36.23			$	34.25			$	33.16
Tangible Common Equity Ratio		7.91	%			8.01	%			7.69	%			7.38	%			7.11	%
Pre-Provision Net Revenue to Average Assets
Income before taxes (GAAP)	$	8,439			$	9,211			$	8,592			$	8,258			$	7,082
Plus: Provision for credit losses		965				270				310				320				370
Total pre-provision net revenue (non-GAAP)		9,404				9,481				8,902				8,578				7,452
Total (annualized) (non-GAAP)	$	38,139			$	37,615			$	35,316			$	34,404			$	30,220
Average assets	$	2,809,513			$	2,757,902			$	2,708,126			$	2,681,194			$	2,609,769
Pre-Provision Net Revenue to Average Assets (non-GAAP)		1.36	%			1.36	%			1.30	%			1.28	%			1.16	%

Contacts:
Daniel J. Santaniello	Salvatore R. DeFrancesco, Jr.
President and Chief Executive Officer	Treasurer and Chief Financial Officer
570-504-8035	570-504-8000