Fidelity D&D Bancorp Inc. reported earnings results for the third quarter and nine months ended September 30, 2009. The company announced net loss for the quarter ended September 30, 2009 of $3,211,000 compared to net income of $741,000 for the same quarter of 2008. The net loss resulted from increased provision for loan losses, recognition of additional other-than-temporary impairment investment losses, write-downs of foreclosed other real estate properties and higher other operating expenses including increased FDIC insurance premiums and collection expenses related to non-performing loans plus recognizing incurred consulting costs. Loss per share for the quarter was $1.55 compared to earnings per share of $0.35 for the same prior year period. Net interest income was $4,421,000 for the quarter ended September 30, 2009 compared to the $4,879,000 recorded during the same quarter of 2008. The cost reduction from lowering rates on interest-bearing liabilities lagged behind the effect the current interest rate environment had on earning-asset yields. Ten million dollars in long-term debt costing 6.12% was paid-off early in September 2009 which included a prepayment penalty of $505,000. As a result, net interest income declined $458,000, or 9%, for the third quarter of 2009. This earnings decline, in relation to the $15,104,000 reduction in average earning assets, reduced net interest margin to 3.43% for the third quarter of 2009, compared to 3.62% for same 2008 period. Net loss for the nine months ended September 30, 2009 was $1,473,000 compared to net income of $3,034,000 for the same 2008 year-to-date period. Loss per share was $0.71 for the nine months ended September 30, 2009 and earnings per share was $1.46 for the same 2008 period. Provision for loan losses, other-than-temporary impairment, less overdraft deposit service charges, higher FDIC insurance assessments, increased collections, professional, and other real estate expenses, all partially offset by mortgage banking gains, were the drivers producing a net loss for the first nine months of 2009 compared to 2008. Net interest income decreased to $13,986,000 for the nine months ended September 30, 2009 from $14,369,000 recorded during the same year-to-date period of 2008. Comparing these periods, average earning assets during 2009 declined by $15,236,000. As a result, net interest margin was 3.62% during the first nine months of 2009 compared to 3.57% during the same 2008 period. For the period, the company reported negative return on average assets of 2.25% compared to positive return on average assets of 0.50% in the previous year period. Negative return on average equity of 25.75% compared to positive return on average equity of 5.63% in the previous year period. Book value per share was $23.01 compared to $24.55 in the previous year period.

Fidelity D&D Bancorp Inc. announced the payment of the company's third quarter dividend of $0.25 per share. The dividend is payable on September 10, 2009 to shareholders of record at the close of business on August 20, 2009.

Fidelity D&D Bancorp Inc. announced the resignation of Steven C. Ackmann, President and Chief Executive Officer, effective August 31, 2009. Patrick J. Dempsey, the company's Chairman of the Board, will serve as the company's interim Chief Executive Officer until the completion of the executive search process.