Share of Total Loan Portfolio under COVID-19 Loan Forbearance falls to 2.2%

DUNMORE, Pa., Oct. 15, 2020 (GLOBE NEWSWIRE) -- 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.