DUNMORE, Pa., April 24, 2019 (GLOBE NEWSWIRE) -- Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary Fidelity Deposit and Discount Bank, announced net income for the quarter ended March 31, 2019 of $2.8 million, or $0.73 diluted earnings per share, compared to $2.5 million, or $0.67 diluted earnings per share, for the quarter ended March 31, 2018. The $0.3 million, or 11%, growth in net income resulted primarily from $0.7 million higher net interest income combined with a $0.2 million increase in non-interest income, partially offset by a $0.6 million increase in operating expenses. The Company experienced a $78.5 million, or 10%, increase in average interest-earning assets funded by a $43.2 million increase in average deposits, $29.1 million more in average borrowings and a $7.7 million increase in average shareholders’ equity for the first quarter of 2019 compared to the first quarter of 2018. Return on average assets (ROA) and return on average equity (ROE) were 1.18% and 11.98 %, respectively, for the first quarter of 2019 and 1.17% and 11.75%, respectively, for the first quarter of 2018.
“Fidelity Bank’s results during the first quarter continue to be strong, setting the stage for a successful 2019,” stated Daniel J. Santaniello, President and Chief Executive Officer. “The Bank celebrated the grand opening of the new Back Mountain Office in Dallas, Pa. The continued growth of earnings, capital and strong financial results position the bank to continue to invest in the strategic priorities that deliver an extraordinary client experience and create long-term shareholder value.”
Consolidated First Quarter Operating Results Overview
Net interest income was $7.9 million for the first quarter of 2019, a $0.7 million, or 9%, increase over the $7.2 million earned for the first quarter of 2018. The net interest income growth resulted from a $78.5 million larger average balance of interest-earning assets that generated a 33 basis point higher fully-taxable equivalent (FTE) yield which increased interest income by $1.5 million. The loan portfolio had the biggest impact, producing a $1.3 million increase in FTE interest income with all portfolios contributing to the increase. Yields on average quarterly balances of $334.4 million in floating rate loans at March 31, 2019 benefited from 75 basis points in short-term rate increases by the Federal Reserve since the first quarter of 2018. The investment portfolio benefited from the Company investing $18.8 million more, on average, in mortgage backed securities and municipal securities earning higher yields which caused interest income on investments to increase $0.2 million. Partially offsetting the increase in net interest income from higher interest income, interest expense increased $0.9 million. The average balance of interest-bearing deposits increased $32.9 million and the rates paid on these deposits increased 32 basis points resulting in $0.5 million in additional interest expense. The Company also utilized $43.7 million in average borrowings at a higher cost over deposit rates, which contributed another $0.3 million to interest expense. The cost of interest-bearing liabilities was 1.07% for the first quarter of 2019, an increase of 47 basis points over the 0.60% paid for the first quarter of 2018. The Company’s FTE net interest spread was 3.38% for the first quarter of 2019, or 14 basis points lower than the 3.52% recorded for the same 2018 quarter. The decrease was due to the rates paid on interest-bearing liabilities increasing faster than the yields earned on interest-earning assets. The Company’s FTE net interest margin decreased by only two basis points to 3.66% for the three months ended March 31, 2019 from 3.68% for the same 2018 period. The Company mitigated the compression on FTE net interest margin from higher rates paid on interest-bearing liabilities through managing cost of funds by generating $10.3 million more in average non-interest bearing deposits during the quarter. The cost of funds increased 36 basis points despite a 47 basis point higher rate paid on interest-bearing liabilities.
The provision for loan losses was $0.3 million for the first quarter of 2019 practically unchanged from the first quarter of 2018. Continued provisioning was in response to the Company’s level of attention to credit quality and to replenish loan net charge-offs, $0.4 million of which was from one commercial relationship, in order to maintain an allowance level that the Company deemed adequate.
Total other income increased $0.2 million to $2.5 million for the first quarter of 2019 compared to $2.3 million for the first quarter of 2018. Service charges on loans increased $0.1 million due to more service charges on commercial loans. Fees from financial services were $58 thousand higher during the first quarter of 2019 compared to the same 2018 quarter. In addition, there was $64 thousand in unrealized losses recognized on the fair value change of equity securities in the first quarter of 2018 and these equity securities were subsequently sold and no gain or loss was recognized for the first quarter of 2019. These increases were partially offset by $0.1 million less in trust income due primarily to a $68 thousand estate fee recognized during the first quarter of 2018.
Other expenses increased $0.6 million, or 9%, for the first quarter of 2019 to $6.8 million from $6.2 million for the same 2018 quarter. The increase was primarily due to $0.3 million in higher salaries and employee benefits, $0.1 million in additional premises and equipment expense due to a new branch which opened in December of 2018 and $57 thousand more data processing and communication expense.
The provision for income taxes remained unchanged at $0.5 million for both the first quarter of 2019 and 2018. Higher income before income taxes was offset by increases in tax exempt income.
Consolidated Balance Sheet & Asset Quality Overview
The Company’s total assets decreased $16.9 million, or 2%, to $964.2 million at March 31, 2019 from $981.1 million at December 31, 2018. This asset decline resulted primarily from a $20.0 million net reduction in the loan portfolio. The decrease in the loan portfolio was mostly due to 3 large payoffs from unrelated commercial borrowers, a decline in the volume of dealer loans originated and less mortgage loans held-for-sale. The cash inflow from the decrease in the loan portfolio plus deposit growth of $55.1 million was used to pay down $80.5 million in borrowings. During the first quarter, deposits typically grow due to the seasonal timing of public tax deposits. The Company will focus on increasing assets using its relationship management strategy to grow loans and deposits and achieve profitable returns. The Company has begun its Luzerne County expansion plans with the opening of the Back Mountain branch in December 2018 while constructing the Mountain Top branch set to open in the third quarter of 2019.
Total non-performing assets were $6.0 million, or 0.62% of total assets, at March 31, 2019 compared to $6.3 million, or 0.64% of total assets, at December 31, 2018. Non-performing assets decreased $0.3 million from prior period, as a $0.5 million decrease in accruing troubled debt restructured loans was partially offset by an increase of $0.2 million in other real estate owned. Net charge-offs to average total loans increased to 0.27% at March 31, 2019 compared to 0.13% at December 31, 2018.
During the first quarter of 2019, the Company purchased an additional $2.0 million of bank-owned life insurance. On January 1, 2019, the Company recognized right-of-use assets and lease liabilities for leases classified as operating leases to transition to ASU 2016-02, Leases (Topic 842). The Company elected to apply the provisions of the new lease standard prospectively as of the effective date, without adjusting comparative periods. At March 31, 2019, the right-of-use assets and operating lease liabilities amounted to $4.1 million and $4.5 million, respectively.
Shareholders’ equity increased $4.2 million, or 4%, to $97.7 million at March 31, 2019 from $93.5 million at December 31, 2018. Net income growth of $2.8 million was supplemented by a $2.0 million, after tax, improvement in net unrealized gains from the investment portfolio. An additional $0.5 million recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense, was offset by $1.0 million in cash dividends paid to shareholders. The Company remains well capitalized and is positioned for continued growth with total shareholders’ equity at 10.14% of total assets at March 31, 2019. Book value per share was $25.85 at March 31, 2019 compared to $24.89 at December 31, 2018.
Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisors to the customers served by The Fidelity Deposit and Discount Bank, and is proud to be an active member of the community of Northeastern Pennsylvania. The Company serves multiple office locations throughout Lackawanna and Luzerne Counties providing personal and business banking products and services, including wealth management assistance through fiduciary activities with the Bank’s full trust powers; as well as offering a full array of asset management services. The Bank provides 24 hour, 7 day a week service to customers through branch offices, online at www.bankatfidelity.com, and through the Customer Care Center at 800-388-4380. The 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 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 on current customers, 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.
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
| At Period End: | March 31, 2019 | December 31, 2018 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 15,310 | $ | 17,485 | ||
| Investment securities | 182,496 | 182,810 | ||||
| Federal Home Loan Bank stock | 3,663 | 6,339 | ||||
| Loans and leases | 702,496 | 722,687 | ||||
| Allowance for loan losses | (9,522 | ) | (9,747 | ) | ||
| Premises and equipment, net | 18,186 | 18,289 | ||||
| Life insurance cash surrender value | 22,761 | 20,615 | ||||
| Other assets | 28,830 | 22,624 | ||||
| Total assets | $ | 964,220 | $ | 981,102 | ||
| Liabilities | ||||||
| Non-interest-bearing deposits | $ | 230,610 | $ | 194,731 | ||
| Interest-bearing deposits | 594,675 | 575,452 | ||||
| Total deposits | 825,285 | 770,183 | ||||
| Short-term borrowings | 5,906 | 76,366 | ||||
| FHLB advances | 21,704 | 31,704 | ||||
| Other liabilities | 13,583 | 9,292 | ||||
| Total liabilities | 866,478 | 887,545 | ||||
| Shareholders' equity | 97,742 | 93,557 | ||||
| Total liabilities and shareholders' equity | $ | 964,220 | $ | 981,102 | ||
| Average Year-To-Date Balances: | March 31, 2019 | December 31, 2018 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 16,548 | $ | 18,639 | ||
| Investment securities | 184,017 | 172,085 | ||||
| Loans and leases, net | 699,156 | 668,090 | ||||
| Premises and equipment, net | 18,281 | 16,389 | ||||
| Other assets | 47,793 | 42,739 | ||||
| Total assets | $ | 965,795 | $ | 917,942 | ||
| Liabilities | ||||||
| Non-interest-bearing deposits | $ | 195,349 | $ | 196,790 | ||
| Interest-bearing deposits | 598,582 | 564,763 | ||||
| Total deposits | 793,931 | 761,553 | ||||
| Short-term borrowings | 40,587 | 37,558 | ||||
| FHLB advances | 23,593 | 22,109 | ||||
| Other liabilities | 12,783 | 7,697 | ||||
| Total liabilities | 870,894 | 828,917 | ||||
| Shareholders' equity | 94,901 | 89,025 | ||||
| Total liabilities and shareholders' equity | $ | 965,795 | $ | 917,942 | ||
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Statements of Income
(dollars in thousands)
| Three Months Ended | |||||||||||||||
| Mar. 31, 2019 | Mar. 31, 2018 | ||||||||||||||
| Interest income | |||||||||||||||
| Loans and leases | $ | 8,158 | $ | 6,911 | |||||||||||
| Securities and other | 1,497 | 1,232 | |||||||||||||
| Total interest income | 9,655 | 8,143 | |||||||||||||
| Interest expense | |||||||||||||||
| Deposits | 1,331 | 804 | |||||||||||||
| Borrowings and debt | 414 | 80 | |||||||||||||
| Total interest expense | 1,745 | 884 | |||||||||||||
| Net interest income | 7,910 | 7,259 | |||||||||||||
| Provision for loan losses | (255 | ) | (300 | ) | |||||||||||
| Other income | 2,457 | 2,283 | |||||||||||||
| Other expenses | (6,770 | ) | (6,208 | ) | |||||||||||
| Income before income taxes | 3,342 | 3,034 | |||||||||||||
| Provision for income taxes | (540 | ) | (506 | ) | |||||||||||
| Net income | $ | 2,802 | $ | 2,528 | |||||||||||
| Three Months Ended | |||||||||||||||
| Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |||||||||||
| Interest income | |||||||||||||||
| Loans and leases | $ | 8,158 | $ | 8,173 | $ | 7,779 | $ | 7,250 | $ | 6,911 | |||||
| Securities and other | 1,497 | 1,451 | 1,249 | 1,285 | 1,232 | ||||||||||
| Total interest income | 9,655 | 9,624 | 9,028 | 8,535 | 8,143 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 1,331 | 1,140 | 981 | 886 | 804 | ||||||||||
| Borrowings and debt | 414 | 520 | 336 | 126 | 80 | ||||||||||
| Total interest expense | 1,745 | 1,660 | 1,317 | 1,012 | 884 | ||||||||||
| Net interest income | 7,910 | 7,964 | 7,711 | 7,523 | 7,259 | ||||||||||
| Provision for loan losses | (255 | ) | (325 | ) | (400 | ) | (425 | ) | (300 | ) | |||||
| Other income | 2,457 | 2,263 | 2,283 | 2,371 | 2,283 | ||||||||||
| Other expenses | (6,770 | ) | (6,530 | ) | (6,172 | ) | (6,162 | ) | (6,208 | ) | |||||
| Income before income taxes | 3,342 | 3,372 | 3,422 | 3,307 | 3,034 | ||||||||||
| Provision for income taxes | (540 | ) | (525 | ) | (559 | ) | (539 | ) | (506 | ) | |||||
| Net income | $ | 2,802 | $ | 2,847 | $ | 2,863 | $ | 2,768 | $ | 2,528 | |||||
FIDELITY D & D BANCORP, INC.
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
| At Period End: | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | ||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 15,310 | $ | 17,485 | $ | 16,944 | $ | 17,972 | $ | 36,305 | |||||
| Investment securities | 182,496 | 182,810 | 171,451 | 164,403 | 165,768 | ||||||||||
| Federal Home Loan Bank stock | 3,663 | 6,339 | 4,717 | 3,490 | 2,320 | ||||||||||
| Loans and leases | 702,496 | 722,687 | 704,886 | 686,993 | 642,705 | ||||||||||
| Allowance for loan losses | (9,522 | ) | (9,747 | ) | (9,944 | ) | (9,527 | ) | (9,408 | ) | |||||
| Premises and equipment, net | 18,186 | 18,289 | 16,204 | 16,189 | 16,350 | ||||||||||
| Life insurance cash surrender value | 22,761 | 20,615 | 20,464 | 20,315 | 20,168 | ||||||||||
| Other assets | 28,830 | 22,624 | 25,132 | 22,766 | 23,209 | ||||||||||
| Total assets | $ | 964,220 | $ | 981,102 | $ | 949,854 | $ | 922,601 | $ | 897,417 | |||||
| Liabilities | |||||||||||||||
| Non-interest-bearing deposits | $ | 230,610 | $ | 194,731 | $ | 206,588 | $ | 212,364 | $ | 206,729 | |||||
| Interest-bearing deposits | 594,675 | 575,452 | 572,473 | 565,894 | 568,562 | ||||||||||
| Total deposits | 825,285 | 770,183 | 779,061 | 778,258 | 775,291 | ||||||||||
| Short-term borrowings | 5,906 | 76,366 | 40,269 | 29,553 | 8,642 | ||||||||||
| FHLB advances | 21,704 | 31,704 | 31,704 | 18,704 | 18,704 | ||||||||||
| Other liabilities | 13,583 | 9,292 | 8,768 | 7,234 | 7,278 | ||||||||||
| Total liabilities | 866,478 | 887,545 | 859,802 | 833,749 | 809,915 | ||||||||||
| Shareholders' equity | 97,742 | 93,557 | 90,052 | 88,852 | 87,502 | ||||||||||
| Total liabilities and shareholders' equity | $ | 964,220 | $ | 981,102 | $ | 949,854 | $ | 922,601 | $ | 897,417 | |||||
| Average Quarterly Balances: | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | ||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 16,548 | $ | 14,682 | $ | 14,597 | $ | 21,017 | $ | 24,412 | |||||
| Investment securities | 184,017 | 183,548 | 169,280 | 168,981 | 166,374 | ||||||||||
| Loans and leases, net | 699,156 | 705,209 | 686,318 | 648,006 | 631,821 | ||||||||||
| Premises and equipment, net | 18,281 | 16,499 | 16,257 | 16,295 | 16,507 | ||||||||||
| Other assets | 47,793 | 44,686 | 43,483 | 42,047 | 40,685 | ||||||||||
| Total assets | $ | 965,795 | $ | 964,624 | $ | 929,935 | $ | 896,346 | $ | 879,799 | |||||
| Liabilities | |||||||||||||||
| Non-interest-bearing deposits | $ | 195,349 | $ | 200,936 | $ | 203,530 | $ | 197,355 | $ | 185,090 | |||||
| Interest-bearing deposits | 598,582 | 573,211 | 554,652 | 565,560 | 565,655 | ||||||||||
| Total deposits | 793,931 | 774,147 | 758,182 | 762,915 | 750,745 | ||||||||||
| Short-term borrowings | 40,587 | 59,289 | 55,141 | 19,250 | 15,885 | ||||||||||
| FHLB advances | 23,593 | 31,704 | 18,725 | 18,704 | 19,204 | ||||||||||
| Other liabilities | 12,783 | 8,625 | 8,077 | 7,330 | 6,729 | ||||||||||
| Total liabilities | 870,894 | 873,765 | 840,125 | 808,199 | 792,563 | ||||||||||
| Shareholders' equity | 94,901 | 90,859 | 89,810 | 88,147 | 87,236 | ||||||||||
| Total liabilities and shareholders' equity | $ | 965,795 | $ | 964,624 | $ | 929,935 | $ | 896,346 | $ | 879,799 | |||||
FIDELITY D & D BANCORP, INC.
Selected Financial Ratios and Other Data
| Three Months Ended | |||||||||||||||
| Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |||||||||||
| Selected returns and financial ratios | |||||||||||||||
| Basic earnings per share | $ | 0.74 | $ | 0.76 | $ | 0.76 | $ | 0.74 | $ | 0.67 | |||||
| Diluted earnings per share | $ | 0.73 | $ | 0.75 | $ | 0.75 | $ | 0.73 | $ | 0.67 | |||||
| Dividends per share | $ | 0.26 | $ | 0.26 | $ | 0.24 | $ | 0.24 | $ | 0.24 | |||||
| Yield on interest-earning assets (FTE)* | 4.45 | % | 4.31 | % | 4.20 | % | 4.17 | % | 4.12 | % | |||||
| Cost of interest-bearing liabilities | 1.07 | % | 0.99 | % | 0.83 | % | 0.67 | % | 0.60 | % | |||||
| Cost of funds | 0.82 | % | 0.76 | % | 0.63 | % | 0.51 | % | 0.46 | % | |||||
| Net interest spread (FTE)* | 3.38 | % | 3.32 | % | 3.37 | % | 3.50 | % | 3.52 | % | |||||
| Net interest margin (FTE)* | 3.66 | % | 3.58 | % | 3.60 | % | 3.69 | % | 3.68 | % | |||||
| Return on average assets | 1.18 | % | 1.17 | % | 1.22 | % | 1.24 | % | 1.17 | % | |||||
| Return on average equity | 11.98 | % | 12.43 | % | 12.65 | % | 12.60 | % | 11.75 | % | |||||
| Efficiency ratio (FTE)* | 64.15 | % | 62.66 | % | 60.65 | % | 61.20 | % | 63.95 | % | |||||
| Expense ratio | 1.81 | % | 1.76 | % | 1.66 | % | 1.70 | % | 1.81 | % | |||||
| Other financial data | At period end: | ||||||||||||||
| (dollars in thousands except per share data) | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | ||||||||||
| Interest income adjustment to FTE* | $ | 187 | $ | 196 | $ | 182 | $ | 175 | $ | 165 | |||||
| Book value per share | $ | 25.85 | $ | 24.89 | $ | 23.97 | $ | 23.68 | $ | 23.32 | |||||
| Equity to assets | 10.14 | % | 9.54 | % | 9.48 | % | 9.63 | % | 9.75 | % | |||||
| Allowance for loan losses to: | |||||||||||||||
| Total loans | 1.36 | % | 1.36 | % | 1.42 | % | 1.39 | % | 1.47 | % | |||||
| Non-accrual loans | 2.54 | x | 2.27 | x | 2.63 | x | 3.45 | x | 3.24 | x | |||||
| Non-accrual loans to total loans | 0.53 | % | 0.59 | % | 0.54 | % | 0.40 | % | 0.45 | % | |||||
| Non-performing assets to total assets | 0.62 | % | 0.64 | % | 0.65 | % | 0.66 | % | 0.79 | % | |||||
| Net charge-offs to average total loans | 0.27 | % | 0.13 | % | 0.08 | % | 0.12 | % | 0.05 | % | |||||
| Capital Adequacy Ratios | |||||||||||||||
| Total risk-based capital ratio | 15.24 | % | 14.75 | % | 14.87 | % | 14.82 | % | 15.19 | % | |||||
| Common equity tier 1 risk-based capital ratio | 13.99 | % | 13.50 | % | 13.61 | % | 13.57 | % | 13.93 | % | |||||
| Tier 1 risk-based capital ratio | 13.99 | % | 13.50 | % | 13.61 | % | 13.57 | % | 13.93 | % | |||||
| Leverage ratio | 9.99 | % | 9.79 | % | 9.93 | % | 10.02 | % | 9.98 | % | |||||
* Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2019 and 2018, to recognize the income from tax-exempt interest-earning assets as if the interest was taxable.
| Daniel J. Santaniello | Salvatore R. DeFrancesco, Jr. |
| President and Chief Executive Officer | Treasurer and Chief Financial Officer |
| 570-504-8035 | 570-504-8000 |