8-K
FIDELITY D & D BANCORP INC (FDBC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
______________
Date of Report (Date of earliest event reported): October 15, 2020
FIDELITY D & D BANCORP, INC.
(Exact name of Registrant as specified in its charter)
| Pennsylvania | 001-38229 | 23-3017653 |
|---|---|---|
| (State or other<br><br>jurisdiction of<br><br>incorporation) | (Commission<br><br>File Number) | (IRS Employer<br><br>Identification No.) |
| Blakely and Drinker Streets, Dunmore, PA | 18512 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
__(570) 342-8281__
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the Registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, no par value | FDBC | The NASDAQ Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
CURRENT REPORT ON FORM 8-K
ITEM 7.01Regulation FD Disclosure.
On October 15, 2020, Fidelity D & D Bancorp, Inc. (the “Company”) and its wholly-owned subsidiary, The Fidelity Deposit and Discount Bank (the “Bank”) issued a press release to update certain loan payment deferral information related to the COVID-19 pandemic. The Bank provided forbearance relief to 1,429 customers impacted by COVID-19 through June 30, 2020. The modifications were grouped into deferred payments of no more than six months, interest only, lines of credit only and other. The current amount of accommodations continues to decline from $201.8 million, or 17.9%, of the total loan portfolio at June 30, 2020 to $25.1 million, or 2.2%, of the total loan portfolio at September 30, 2020.
The table below provides detail about the COVID-19 accommodations as of June 30, 2020 and updated as of September 30, 2020:
| As of June 30, 2020 | As of September 30, 2020 | |||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | Number of Loans | Total Modification Balance | Number of Loans | Total Modification Balance | ||
| Commercial and industrial | 170 | $ | 20,525 | 34 | $ | 2,317 |
| Commercial real estate: | ||||||
| Non-owner occupied | 197 | 66,283 | 51 | 9,753 | ||
| Owner occupied | 223 | 61,730 | 34 | 6,835 | ||
| Construction | 2 | 1,650 | - | - | ||
| Total Commercial | 592 | 150,188 | 119 | 18,905 | ||
| Consumer: | ||||||
| Home equity installment | 99 | 5,695 | 10 | 633 | ||
| Home equity line of credit | 92 | 6,570 | 11 | 615 | ||
| Auto loans | 443 | 8,222 | 40 | 757 | ||
| Other | 34 | 383 | 10 | 56 | ||
| Total Consumer | 668 | 20,870 | 71 | 2,061 | ||
| Residential: | ||||||
| Real estate | 157 | 27,604 | 21 | 4,073 | ||
| Construction | 12 | 3,130 | 1 | 102 | ||
| Total Residential | 169 | 30,734 | 22 | 4,175 | ||
| Total | 1,429 | $ | 201,792 | 212 | $ | 25,141 |
| Total loans and leases | $ | 1,125,252 | $ | 1,138,795 | ||
| % of total loans and leases | 17.9% | 2.2% |
In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K (this “Report”) is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of Section 18 of the Exchange Act. The information in Item 7.01 of this Report shall not be incorporated by reference into any filing or other document filed by the Company with the Securities and Exchange Commission (the “SEC”) pursuant to the Securities Act of 1933, as amended (the “Securities Act”), the rules and regulations of the SEC thereunder, the Exchange Act, or the rules and regulations of the SEC thereunder, except as shall be expressly set forth by specific reference in such filing or document.
The Company does not intend to update this information and has no current intention of releasing similar information in the future.
The press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
ITEM 9.01Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release dated as of October 15, 2020. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.
| FIDELITY D & D BANCORP, INC. | |
|---|---|
| (Registrant) | |
| Dated: October 16, 2020 | /s/ Salvatore R. DeFrancesco, Jr. |
| Salvatore R. DeFrancesco, Jr. | |
| Treasurer and Chief Financial Officer | |
| (Principal Financial Officer) |
Ex 991 COVID-19 Deferement Press Release
FOR IMMEDIATE RELEASE
Contact:
Eugene J. Walsh
Executive Vice President & Chief Operating Officer
(570) 504-2249
Share of Total Loan Portfolio under COVID-19 Loan Forbearance falls to 2.2%
DUNMORE, PA – October 15, 2020 – Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) announced today that its wholly owned subsidiary, The Fidelity Deposit and Discount Bank (“Fidelity Bank”), has substantially reduced its loan forbearance by assisting local businesses impacted due to the COVID-19 pandemic through the Federal Client Assistance Program or forbearance process. Beginning the week of March 16, 2020, and consistent with guidelines and directives issued by the Federal Financial Institutions Examination Council (FFIEC), Fidelity Bank provided accommodations to commercial and retail borrowers. The program temporarily allowed businesses to defer principal and/or interest portions of contractual payments for up to six (6) months.
Fidelity Bank granted initial forbearance to 1,429 borrowers, all located within the communities the bank serves, totaling $201.8 million in principal balances, and representing 17.9% of the total loan and lease portfolio as of June 30, 2020. Fidelity Bank has received second forbearance requests from just 95 of those borrowers, totaling $11.8 million in principal balances and representing 1.0% of the September 30, 2020 total loan and lease portfolio.
Fidelity Bank had a grand total of 212 borrowers in forbearance totaling $25.1 million, or 2.2% of the total loan and lease portfolio as of September 30, 2020. Grand total forbearance includes borrowers still under initial forbearance terms, borrowers whose initial terms expired and received a second forbearance, and borrowers who received first-time forbearance during the third quarter of 2020.
Fidelity Bank’s President & CEO, Daniel J. Santaniello, stated, “The Client Assistance Program demonstrates how our relationship banking strategy has built strong partnerships with our commercial and retail borrowers. Our prudent and pragmatic credit culture illustrates the resilience of Fidelity Bank’s asset quality even during COVID’s economic uncertainty. The Fidelity Bankers have worked hard to help their clients maneuver these unprecedented times and remain committed to navigating them into the future.”
About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank
Fidelity D & D Bancorp, Inc. and its wholly owned subsidiary, The Fidelity Deposit and Discount Bank have built a strong history as trusted financial advisors to the clients served by Fidelity Bank, which has built a strong history as a locally owned and operated community bank. Serving the individuals, families, and businesses for over 118 years within Lackawanna and Luzerne Counties and the Lehigh Valley, there are 20 branch offices along with Fidelity Bank Wealth Management offices in Schuylkill County. A full-service, 24-hour, 7 day a week Customer Care Center serves as a virtual branch, accepting and assisting those clients who prefer to open accounts and transact business via telephone, chat or online. Additionally, Fidelity Bank offers full-service Trust & Investment Departments, a Mortgage Center, and an array of personal and business banking products and services.
Fidelity Bank has been recognized nationally for its sound financial performance, and superior customer experience. It has been identified as one of the Top 200 Community Banks in the country by American Banker for six years in a row, and Forbes ranked it one of the Best In-State Banks for the past two years. The company has been the #1
mortgage lender in the Lackawanna County market for over 8 years. Fidelity Bank is passionate about success and committed to building strong relationships through superior service. Fidelity Bank's deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.
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 Fidelity D & D Bancorp, Inc. (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:
| · | the effects of economic conditions particularly with regard to the negative impact of severe, wide-ranging and continuing disruptions caused by the spread of Coronavirus Disease 2019 (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 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 the Tax Cuts and Jobs Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations promulgated there under; | | --- | --- | | · | 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 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 risks of changes in 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; | | --- | --- | | · | 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; | | --- | --- | | · | technological changes; | | --- | --- | | · | the interruption or breach in security of our information systems 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; | | --- | --- | | · | volatilities in the securities markets; | | --- | --- | | · | acts of war or terrorism; | | --- | --- | | · | disruption of credit and equity markets; 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.