Fidelity D & D Bancorp, Inc. (FDBC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Fidelity D & D Bancorp, Inc. (FDBC) Financial Services Profile

Fidelity D & D Bancorp, Inc., established in 1902, is a Pennsylvania-based regional bank offering diverse financial services, including commercial and consumer lending, deposit accounts, and trust services. With a market capitalization of $318M and a dividend yield of 3.62%, FDBC serves individuals, small businesses, and corporate clients across three counties.

What Is the Investment Thesis for FDBC?

Fidelity D & D Bancorp presents a stable investment profile within the regional banking sector. With a P/E ratio of 10.40 and a dividend yield of 3.62%, the company demonstrates consistent profitability and shareholder returns. The bank's strong gross margin of 66.1% and profit margin of 20.9% indicate efficient operations. Growth catalysts include expanding its commercial lending portfolio and increasing its market share within its Pennsylvania footprint. However, potential risks include interest rate sensitivity and competition from larger regional and national banks. The company's beta of 0.82 suggests lower volatility compared to the broader market. Ongoing investments in technology and digital banking solutions could enhance customer experience and drive future growth. The company's ability to maintain asset quality and manage credit risk will be crucial for sustained performance.

Based on FMP financials and quantitative analysis

FDBC Key Highlights

Market capitalization of $318M, reflecting its position as a regional bank.

• P/E ratio of 10.40, indicating a potentially undervalued stock compared to its earnings.
• Dividend yield of 3.62%, offering a steady income stream for investors.
• Gross margin of 66.1%, showcasing efficient cost management.
• Profit margin of 20.9%, demonstrating strong profitability in the banking sector.

Who Are FDBC's Competitors?

FDBC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FDBC's Key Strengths?

Strong local market presence.

• Diversified loan portfolio.
• Experienced management team.
• Solid capital base.

What Are FDBC's Weaknesses?

Limited geographic reach.

• Reliance on traditional banking services.
• Smaller scale compared to larger regional banks.
• Vulnerability to interest rate fluctuations.

What Could Drive FDBC Stock Higher?

Implementation of digital banking initiatives to improve customer experience and attract new customers.

• Potential acquisitions of smaller community banks to expand market share.
• Expansion of wealth management services to generate fee income.
• Growth in commercial lending portfolio driven by economic recovery in Pennsylvania.

What Are the Key Risks for FDBC?

Financial-distress signal — its Altman Z-Score of -0.55 sits in the distress zone (elevated bankruptcy risk).

• Interest rate hikes by the Federal Reserve could negatively impact net interest margin.
• Increased competition from larger regional and national banks.
• Economic downturn in Pennsylvania could lead to credit quality deterioration.
• Cybersecurity threats and data breaches could damage the bank's reputation and result in financial losses.

What Are the Growth Opportunities for FDBC?

• Expansion of Commercial Lending Portfolio: Fidelity D & D Bancorp can expand its commercial lending portfolio by targeting small and medium-sized businesses (SMBs) in its existing markets. The SMB lending market in Pennsylvania is estimated at $50 billion. By offering competitive rates and personalized service, FDBC can increase its market share. This initiative can be implemented over the next 3-5 years, leveraging the bank's existing relationships and local market knowledge.
• Digital Banking Initiatives: Investing in digital banking platforms and mobile applications can attract younger customers and improve customer retention. The digital banking market is growing at a rate of 10% annually. By offering user-friendly online and mobile banking services, FDBC can enhance customer experience and reduce operational costs. This initiative can be rolled out within the next 1-2 years.
• Wealth Management Services: Expanding wealth management services can generate fee income and diversify revenue streams. The wealth management market in Pennsylvania is estimated at $200 billion. By offering financial planning, investment management, and trust services, FDBC can attract high-net-worth individuals and families. This initiative can be developed over the next 3-5 years.
• Strategic Acquisitions: Acquiring smaller community banks or credit unions in adjacent markets can expand FDBC's geographic footprint and customer base. The consolidation trend in the banking industry presents opportunities for strategic acquisitions. By carefully selecting targets and integrating operations, FDBC can achieve economies of scale and increase its market share. This initiative depends on identifying suitable targets and securing regulatory approvals.
• Insurance Product Offerings: Fidelity D & D Bancorp can further integrate and promote its alternative financial and insurance products to its customer base. This cross-selling strategy can increase revenue per customer and enhance customer loyalty. The insurance market in Pennsylvania is substantial, offering opportunities for growth. This initiative can be implemented immediately by training staff and marketing the products effectively.

What Threats Does FDBC Face?

• Increased competition from larger banks and fintech companies.
• Regulatory changes and compliance costs.
• Economic downturn and credit quality deterioration.
• Cybersecurity risks.

What Are FDBC's Competitive Advantages?

• Strong local presence and brand recognition in Pennsylvania.
• Long-standing customer relationships.
• Experienced management team.
• Conservative lending practices.

What Does FDBC Do?

Fidelity D & D Bancorp, Inc., founded in 1902, serves as the holding company for The Fidelity Deposit and Discount Bank. The bank provides a comprehensive suite of banking, trust, and financial services tailored to individuals, small businesses, and corporate entities. Its offerings encompass a variety of deposit accounts, including savings, checking, money market, and certificates of deposit, alongside a diverse lending portfolio featuring commercial and industrial loans, commercial real estate financing, consumer credit, and residential mortgages. Beyond traditional banking services, Fidelity D & D Bancorp extends its capabilities to include alternative financial and insurance products, complemented by asset management services. As of April 21, 2022, the company's operational footprint includes 22 full-service banking offices strategically located in Lackawanna, Luzerne, and Northampton counties, Pennsylvania. Headquartered in Dunmore, Pennsylvania, Fidelity D & D Bancorp has cultivated a long-standing presence in the region, emphasizing personalized customer service and community engagement. The bank's evolution reflects its commitment to adapting to the changing financial needs of its clientele while maintaining a focus on prudent risk management and sustainable growth.

What Products and Services Does FDBC Offer?

• Provides banking services to individuals, small businesses, and corporate customers.
• Offers savings, checking, and money market accounts.
• Provides commercial and industrial loans.
• Offers commercial real estate financing.
• Provides consumer and residential mortgage loans.
• Offers alternative financial and insurance products.
• Provides asset management services.
• Operates 22 full-service banking offices in Pennsylvania.

How Does FDBC Make Money?

• Generates revenue from interest income on loans.
• Earns fees from deposit accounts and other services.
• Provides trust and wealth management services for a fee.
• Offers insurance products and earns commissions.

What Industry Does FDBC Operate In?

Fidelity D & D Bancorp operates within the competitive regional banking industry. The industry is characterized by increasing regulatory scrutiny, technological disruption, and consolidation. Regional banks face competition from larger national banks, credit unions, and fintech companies. The market is influenced by interest rate movements, economic growth, and consumer confidence. Fidelity D & D Bancorp's focus on community banking and personalized service differentiates it from larger competitors. The regional banking sector is expected to grow modestly, driven by increased lending activity and fee income.

Who Are FDBC's Key Customers?

• Individuals seeking personal banking services.
• Small businesses requiring commercial loans and deposit accounts.
• Corporate clients needing financial services.
• High-net-worth individuals seeking wealth management services.

Fidelity D & D Bancorp, Inc. (FDBC) Valuation Context

Valued at $318M, FDBC is classified as a small-cap stock. Relative to its peer group, FDBC's quantitative score of 89/100 is roughly in line with the peer average of 90/100.

FDBC Revenue & Earnings Trend

In Q2 FY2026, FDBC generated $37.2M in top-line revenue, marking a sequential increase of 4.4%. The company recorded net income of $7.8M, with diluted EPS of $1.33. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, FDBC averaged $1.32 in diluted EPS.

Company Profile

Fidelity D & D Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Dunmore, US. The company is led by CEO Daniel J. Santaniello. FDBC has traded publicly since 1999.

Return on equity for Fidelity D & D Bancorp, Inc. stands at 12.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. FDBC trades at a trailing price-to-earnings ratio of 10.40, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 10.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.27 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 9.7%, the inverse of the P/E and a quick read on earnings relative to price.

Fidelity D & D Bancorp, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.55 places it in the distress zone, a signal of elevated financial risk.

Over the past six months, Fidelity D & D Bancorp, Inc. insiders filed 2 SEC Form 4 transactions — 0 sales and 2 purchases. On net that is roughly 1K shares acquired (about $57K) — insiders putting money in tends to read as conviction.

FDBC Financials

FDBC Latest News

FDBC Analyst Consensus

FDBC MoonshotScore

What Investors Ask About Fidelity D & D Bancorp, Inc. (FDBC) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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