It's like a smaller, Pennsylvania-focused version of PNC Bank, offering a full range of banking, trust, and financial services.

Imagine Bank of America, but operating as a local community bank serving a few specific counties in northeastern Pennsylvania.

• Deposit Services: The bank accepts various types of customer deposits, including checking, savings, money market, and certificates of deposit.
• Loan Services: The bank offers a range of loans such as commercial, industrial, real estate, consumer, and residential mortgages.
• Trust Services: The bank provides fiduciary and financial management services for trusts.
• Asset Management: The bank offers services to manage financial assets for individuals and corporate clients.
• Alternative Financial & Insurance Products: The bank provides a variety of financial instruments and insurance offerings beyond traditional banking.

Fidelity D & D Bancorp (FDBC) serves a diverse customer base, primarily categorized as:

1. Individuals: These customers utilize services such as savings, checking, money market, and time deposits, as well as consumer and residential mortgage loans.
2. Small Businesses: This category includes smaller enterprises that leverage commercial and industrial, and commercial real estate loans, alongside various banking and financial services.
3. Corporate Customers: Larger businesses and organizations that access commercial and industrial, and commercial real estate loans, as well as trust and other comprehensive financial services.

Daniel J. Santaniello, President and Chief Executive Officer

Daniel J. Santaniello has served as President and Chief Executive Officer of Fidelity Bank since December 2010. He joined the company in May 2004, initially as Vice President and Chief Operating Officer. Prior to that, from 2001 to December 2010, he was Executive Vice President and Chief Operating Officer and head of Retail Banking for Fidelity Bank. Mr. Santaniello earned his Bachelor of Science degree in Accounting from Marywood University in 1990 and possesses broad knowledge of banking from his extensive industry experience. He serves on the Board of Directors for the Pennsylvania Association of Bankers, St. Joseph's Center Foundation Board, and the Lackawanna Workforce Investment Board. Under his leadership, Fidelity Bank has been recognized as one of the Top 200 Community Banks in the U.S. by American Banker Magazine for ten consecutive times and has been the #1 mortgage lender in Northeastern Pennsylvania for 13 years in a row, as of 2023.

Salvatore R. DeFrancesco Jr., Executive Vice President, Treasurer and Chief Financial Officer

Salvatore R. DeFrancesco Jr. is a key executive at Fidelity D & D Bancorp, Inc., serving as Executive Vice President, Treasurer, and Chief Financial Officer. In this role, he is responsible for the company's financial health, including financial planning and analysis, accounting, treasury operations, and capital management. Mr. DeFrancesco Jr., who is a CPA and CGMA, plays an instrumental part in developing and implementing financial strategies that support the bank's growth and profitability.

Timothy P. O'Brien, Senior Executive Vice President & Chief Business Development Officer

Timothy P. O'Brien serves as Senior Executive Vice President and Chief Business Development Officer of The Fidelity Deposit and Discount Bank. He brings more than 40 years of banking experience, having held various executive management positions at other local and regional financial institutions. Mr. O'Brien has served on the Board of Directors for St. Joseph's Center, the Scranton Cultural Center, and has been a board member of both the Greater Pittston and Greater Scranton Chambers of Commerce. He was also a member of the Finance and Audit Committees for The Commonwealth Medical College.

Michael J. Pacyna, Jr., Executive Vice President and Chief Credit Officer

Michael J. Pacyna, Jr. is the Executive Vice President and Chief Credit Officer at Fidelity D & D Bancorp. In this role, he is responsible for the company's credit policies and procedures.

Ruth G. Turkington, Executive Vice President and Chief Consumer Banking Officer

Ruth G. Turkington serves as Executive Vice President and Chief Consumer Banking Officer of Fidelity Bank. She oversees the bank's consumer banking operations and strategies.

Here are the key risks to Fidelity D & D Bancorp (FDBC):

1. Concentration of Economic and Credit Risk in Local Markets: Fidelity D & D Bancorp's operations are heavily concentrated in Northeastern and Eastern Pennsylvania, specifically Lackawanna, Luzerne, and Northampton counties. An economic downturn or prolonged slow recovery in these primary market areas could lead to a significant increase in non-performing assets and loan losses, potentially causing operating losses, impaired liquidity, and erosion of capital.
2. Interest Rate Fluctuations and Regulatory Changes: As a financial services provider, Fidelity D & D Bancorp is exposed to the inherent risks associated with fluctuations in interest rates. Additionally, the company is subject to a complex and evolving landscape of federal and state banking laws and regulations, including those from the Securities and Exchange Commission (SEC), the Federal Reserve Board (FRB), the Pennsylvania Department of Banking and Securities, and the Federal Deposit Insurance Corporation (FDIC). Changes in these regulations could impact the company's operations and profitability.
3. Exposure to Uninsured Deposits and Liquidity Risk: A notable portion of Fidelity D & D Bancorp's deposits were uninsured as of December 31, 2025, accounting for approximately 39% of total deposits. This level of uninsured deposits, particularly when combined with the bank's concentrated market exposure in Pennsylvania, could pose a liquidity risk if there were a sudden loss of depositor confidence or broader financial instability.

The clear emerging threat for Fidelity D & D Bancorp is the rapid proliferation and adoption of digital-first banking services and non-bank financial technology (fintech) companies. These include online-only banks, neobanks, and specialized platforms offering payments, lending, and asset management services, which provide consumers and businesses with convenient, often lower-cost, and technologically advanced alternatives to traditional branch-based banking. This trend threatens to erode FDBC's customer base, deposit volumes, and market share across its core banking and financial services offerings.

Banking Services (Deposits)

Commercial and Industrial & Commercial Real Estate Loans

Residential Mortgage Loans

Consumer Loans

Trust and Financial Services & Asset Management Services

Fidelity D & D Bancorp (FDBC) is expected to drive future revenue growth over the next two to three years through a combination of strategic lending focus, favorable market conditions, and operational enhancements:

1. Continued Expansion of Commercial Lending: The company has demonstrated a concentrated effort and success in growing its commercial loan portfolio, specifically in commercial & industrial (C&I), commercial real estate (CRE), and municipal lending. This strategic reallocation towards higher-yielding commercial segments is anticipated to be a key driver of future interest income.
2. Beneficial Interest Rate Environment: Analysts project a likely steepening of the yield curve in 2026, which is expected to disproportionately benefit regional banks such as Fidelity D & D Bancorp. This market condition could lead to improved net interest margins and, consequently, higher net interest income.
3. Growth in Core Deposits: Fidelity D & D Bancorp has shown consistent growth in its core deposit base, particularly in money market and MMDA balances. This "sticky" deposit base provides a stable and lower-cost funding source, enabling the bank to support further loan expansion without relying as heavily on more expensive short-term borrowings.
4. Enhanced Operational Efficiency from Strategic Investments: The company's ongoing investments in a new downtown headquarters, expected to be completed by mid-2026, and continuous upgrades to its IT and banking platforms are aimed at improving operational efficiency. These enhancements are anticipated to support increased capacity and better service delivery, indirectly contributing to revenue growth.
5. Disciplined Loan Portfolio Management and Asset Quality: Fidelity D & D Bancorp maintains strong asset quality and a prudent lending approach, evidenced by low non-performing assets. This disciplined underwriting and active reallocation of the balance sheet towards higher-yielding loans enable sustained, quality loan growth without compromising credit risk, thereby supporting revenue expansion.

Share Repurchases

No information available regarding share repurchases or authorized future share repurchases for Fidelity D & D Bancorp (FDBC) within the last 3-5 years.

Share Issuance

• In 2025, Fidelity D & D Bancorp reported an additional $1.3 million from the issuance of common stock under the company's stock plans and stock-based compensation expense.
• On February 18, 2026, Chairman Brian J. Cali acquired 2,500 restricted common shares as a grant or award, valued at approximately $112,775 based on a reference price of $45.11 per share.
• Also on February 18, 2026, Treasurer & CFO Salvatore R. DeFrancesco Jr. acquired 1,590 restricted common shares as a grant or award, valued at approximately $71,724.90 based on a reference price of $45.11 per share.

Inbound Investments

No information available regarding large inbound investments made in Fidelity D & D Bancorp by third-parties within the last 3-5 years.

Outbound Investments

No information available regarding strategic investments made by Fidelity D & D Bancorp in other companies within the last 3-5 years.

Capital Expenditures

• Fidelity D & D Bancorp's capital expenditures were approximately $8.611 million in 2021, $7.085 million in 2022, $3.516 million in 2023, and $1.667 million in 2024.
• For the first three quarters of 2025, capital expenditures totaled approximately $12.093 million.
• The primary focus of capital expenditures includes the continued construction of a new downtown headquarters, expected to be completed by mid-2026, and ongoing investments in IT and platform upgrades.