Fidelity D & D Bancorp (FDBC) AI Stock Analysis

• Market Cap: $251.94M
• Dividend Yield: 3.61%
• Average Volume (3M): 8.25K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.74
• Revenue Growth: 17.97%
• EPS Growth: 68.34%
• Country: US
• Employees: 289
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.37
• Shares Outstanding: 5,805,183
• 10 Day Avg. Volume: 6,380
• 30 Day Avg. Volume: 8,249
• PEG Ratio: 0.26
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 10.14
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $48.00 ▼(-0.72% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by strong financial positioning (notably improved leverage and solid profitability) and attractive valuation (low P/E plus a high dividend yield). These positives are partly offset by weak technical momentum (price below key moving averages with a negative MACD) and mixed corporate-event signals due to the Chief Credit Officer termination.

Positive Factors

Strong cash generation

Extremely strong operating cash flow relative to net income indicates durable internal funding capacity. This supports dividend payments, loan funding, and loss-absorption without reliance on wholesale funding, enhancing resilience and strategic optionality over the medium term.

Conservative balance sheet

Minimal leverage and a strong equity ratio provide long-term stability versus peers, lowering interest and refinancing risk. A conservatively capitalized structure supports regulatory flexibility and endurance through credit cycles, preserving franchise value in stress scenarios.

High profit margins

Sustained high gross and net margins reflect efficient cost management and healthy fee/interest spreads. Margin durability supports cash generation and reinvestment, enabling competitive pricing, local relationship banking and the capacity to fund growth or shareholder distributions.

Negative Factors

Modest return on equity

A low ROE signals limited efficiency in converting equity into shareholder returns. Over months, modest ROE constrains capital returns and may indicate under‐utilized assets or low risk appetite; improving asset yield or measured leverage will be needed to raise long-term investor returns.

Slower recent revenue growth

Steady but slow TTM revenue growth suggests limited top-line momentum from loans or fees. Without stronger organic loan growth, fee diversification, or market expansion, earnings growth may remain constrained, pressuring medium-term profitability expansion.

Credit leadership turnover risk

Removal of the Chief Credit Officer and reassignment of duties creates a structural governance shift in credit oversight. Transitional gaps in underwriting or portfolio monitoring elevate medium-term credit execution risk until roles and processes are reestablished under the new risk framework.

Fidelity D & D Bancorp Business Overview & Revenue Model

Company Description

Fidelity D & D Bancorp, Inc. operates as the bank holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, trust, and financial services to individuals, small businesses, and corporate customers. The company accepts savings, clubs, interest-bearing and non-interest-bearing checking, money market, and short- and long-term time deposits, as well as certificates of deposit. It also offers commercial and industrial, commercial real estate, consumer, and residential mortgage loans. In addition, the company provides alternative financial and insurance products with asset management services. As of April 21, 2022, it operated 22 full-service banking offices in Lackawanna, Luzerne, and Northampton counties, Pennsylvania. Fidelity D & D Bancorp, Inc. was founded in 1902 and is headquartered in Dunmore, Pennsylvania.

How the Company Makes Money

FDBC makes money primarily through its banking subsidiary by generating net interest income and noninterest income. Net interest income is earned from the spread between interest and fees collected on interest-earning assets (such as commercial real estate loans, commercial and industrial loans, residential mortgages, consumer loans, and investment securities) and the interest it pays on funding sources (such as checking accounts, savings accounts, money market accounts, time deposits, and borrowings). Loan-related revenue includes interest accrued over time and certain loan fees (e.g., origination and servicing-related fees) that are recognized in accordance with applicable accounting rules. In addition to interest-based earnings, the bank generates noninterest income from fees and service charges associated with deposit accounts (e.g., account maintenance and transaction-related fees), payment services (e.g., debit/ATM-related fees), and other customer banking services; the availability and mix of specific fee categories beyond these general items is null. The company’s profitability is influenced by factors typical to community banks, including loan growth and credit performance (provision for credit losses), funding mix and deposit pricing, changes in market interest rates that affect asset yields and deposit costs, and operating efficiency.

Fidelity D & D Bancorp Financial Statement Overview

Summary

Solid fundamentals supported by steady revenue growth through 2025 and healthy profitability (2025 net margin ~20%, operating margin ~24%). Balance sheet strength improved materially with sharply lower leverage (debt-to-equity down to ~0.03 in 2025) and higher equity, though ROE is below its 2022 peak and cash flows have been historically volatile despite a strong 2025 rebound and good cash conversion.

Income Statement

Revenue has grown consistently from 2020 to 2025 (annual growth positive each year, accelerating to ~3.8% in 2025), and profitability remains solid with 2025 net margin around 20% and operating margin around 24%. That said, margins have been meaningfully lower than the unusually strong 2021–2022 period (when net margin was ~30–32%), suggesting some normalization/pressure versus prior peak profitability.

Balance Sheet

Leverage improved sharply: debt-to-equity fell from ~0.71 (2023) to ~0.08 (2024) and ~0.03 (2025), indicating a notably cleaner capital position in the most recent year. Equity has also expanded (about $239M in 2025 vs. ~$190M in 2023), supporting balance-sheet resilience. Returns on equity are healthy but not at peak levels (about 11.8% in 2025 vs. ~18.4% in 2022), pointing to somewhat lower efficiency than the best recent year.

Cash Flow

Cash generation strengthened in 2025, with operating cash flow rising to ~$42M and free cash flow also ~$42M, and free cash flow matching net income (conversion is strong). However, cash flow has been volatile over time, including negative free cash flow in 2020 and a decline in free cash flow in 2023, which tempers the quality/stability score despite the strong recent rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	140.40M	125.08M	104.56M	93.89M	79.77M
Gross Profit	91.96M	79.42M	72.34M	87.02M	78.30M
EBITDA	33.14M	29.54M	25.96M	40.72M	33.43M
Net Income	28.20M	20.79M	18.21M	30.02M	24.01M
Balance Sheet
Total Assets	2.75B	2.58B	2.50B	2.38B	2.42B
Cash, Cash Equivalents and Short-Term Investments	672.01M	414.81M	455.99M	449.95M	835.86M
Total Debt	16.87M	16.99M	134.12M	31.03M	21.57M
Total Liabilities	2.51B	2.38B	2.31B	2.22B	2.21B
Stockholders Equity	238.86M	203.97M	189.48M	162.95M	211.73M
Cash Flow
Free Cash Flow	24.82M	24.90M	22.74M	43.91M	4.68M
Operating Cash Flow	42.36M	29.56M	29.69M	49.43M	7.20M
Investing Cash Flow	-95.25M	-113.59M	-35.27M	-115.39M	-303.24M
Financing Cash Flow	117.60M	55.43M	88.44M	-1.82M	323.57M

Fidelity D & D Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDBC, the sentiment is Negative. The current price of 48.35 is above the 20-day moving average (MA) of 44.54, above the 50-day MA of 44.41, and above the 200-day MA of 43.29, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDBC.

Fidelity D & D Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDBC	73 Outperform	$251.94M	7.93	11.95%	3.61%	17.97%	68.34%
PKBK	71 Outperform	$323.18M	6.62	12.02%	2.84%	12.91%	21.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WNEB	62 Neutral	$257.11M	12.15	5.51%	2.18%	7.37%	27.35%
CHMG	58 Neutral	$249.21M	8.67	6.27%	2.40%	-6.25%	-38.79%
ISBA	57 Neutral	$328.24M	19.67	8.45%	2.13%	7.29%	33.75%

Fidelity D & D Bancorp Corporate Events

Fidelity D & D Bancorp Appoints New Chief Lending Officer

On February 5, 2026, Fidelity Bank announced that Peter A. Gray has joined its executive management team as Executive Vice President, Chief Lending Officer and Market President for the Lehigh Valley, bringing more than 20 years of community banking, lending, and operational transformation experience. Gray, a seasoned leader with prior senior roles in regional financial institutions and a strong record in efficiency-focused strategic initiatives, business development, and revenue enhancement, is expected to strengthen Fidelity Bank’s commercial lending oversight and alignment with regulatory and strategic objectives in the Lehigh Valley market, reinforcing the bank’s relationship-driven model and deepening its presence in a key Pennsylvania growth region.

The most recent analyst rating on (FDBC) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Fidelity D & D Bancorp stock, see the FDBC Stock Forecast page.

Fidelity D & D Bancorp Adds Two New Directors

On January 2, 2026, Fidelity D & D Bancorp and its subsidiary, The Fidelity Deposit and Discount Bank, elected James Clemente, CPA, MT, and Rocco A. DelVecchio to their Boards of Directors, with Clemente’s term running until the 2028 annual meeting of shareholders and DelVecchio’s until the 2026 meeting. Clemente, a managing partner at Snyder & Clemente with more than 45 years of experience in accounting, taxation, and advisory work and prior service on another community bank board, and DelVecchio, a seasoned financial services executive and former consultant to Fidelity Bank with prior CEO and COO roles overseeing multi-billion-dollar loan and deposit portfolios, are expected to strengthen the bank’s governance, risk oversight, and strategic direction through their committee assignments and deepen its expertise in accounting, taxation, and growth-focused banking, supporting long-term value creation for clients, shareholders, and the communities the bank serves.

The most recent analyst rating on (FDBC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Fidelity D & D Bancorp stock, see the FDBC Stock Forecast page.

Fidelity D & D Bancorp Terminates Chief Credit Officer

On December 12, 2025, Fidelity Deposit and Discount Bank, the banking subsidiary of Fidelity D & D Bancorp, terminated the employment of Executive Vice President and Chief Credit Officer Michael J. Pacyna Jr. and entered into a separation agreement detailing his severance terms. Under the agreement, Pacyna is to receive 28 weeks of severance and his 2025 executive bonus payable in January 2026 totaling $239,975.02, with potential additional conditional severance of up to $46,587.64 and continuation of the bank’s employer-paid health insurance premiums through at least June 30, 2026, and potentially through September 30, 2026, depending on his future employment status; his non-compete period was reduced from two years to 15 months, his supplemental executive employment plan remains in effect, and all departments previously overseen by the Chief Credit Officer have been reassigned to the bank’s Chief Risk Officer, signaling a shift in the institution’s risk and credit management structure.

The most recent analyst rating on (FDBC) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Fidelity D & D Bancorp stock, see the FDBC Stock Forecast page.