Parent Company Only

12 Months Ended

Dec. 31, 2016

20.PARENT COMPANY ONLY

The following is the condensed financial information for Fidelity D & D Bancorp, Inc. on a parent company only basis as of and for the years indicated:


Condensed Balance Sheets	As of December 31,
(dollars in thousands)	2016		2015
Assets:
Cash	$	141	$	190
Investment in subsidiary		80,192		75,767
Securities available-for-sale		631		545
Other assets		35		64
Total	$	80,999	$	76,566

Liabilities and shareholders' equity:
Liabilities	$	368	$	215
Capital stock and retained earnings		79,250		74,163
Accumulated other comprehensive income		1,381		2,188
Total	$	80,999	$	76,566


Condensed Income Statements	Years ended December 31,
(dollars in thousands)	2016		2015		2014
Income:
Equity in undistributed earnings of subsidiary	$	5,289	$	4,659	$	4,458
Dividends from subsidiary		2,960		2,844		2,242
Other income		21		20		22
Total income		8,270		7,523		6,722
Operating expenses		864		610		539
Income before taxes		7,406		6,913		6,183
Credit for income taxes		287		190		169
Net income	$	7,693	$	7,103	$	6,352


Statements of Comprehensive Income	Years ended December 31,
(dollars in thousands)	2016		2015		2014
Bancorp net loss	$	(556)	$	(400)	$	(348)
Equity in net income of subsidiary		8,249		7,503		6,700
Net income		7,693		7,103		6,352

Other comprehensive (loss) income, before tax:
Unrealized holding gains (losses) on available-for-sale securities		86		(49)		71
Reclassification adjustment for gains realized in income		-		-		-
Net unrealized gains (losses)		86		(49)		71
Tax effect		(29)		17		(24)
Unrealized gain (loss), net of tax		57		(32)		47
Equity in other comprehensive (loss) income of subsidiary		(864)		(523)		1,457
Other comprehensive (loss) income, net of tax		(807)		(555)		1,504
Total comprehensive income, net of tax	$	6,886	$	6,548	$	7,856


Condensed Statements of Cash Flows	Years ended December 31,
(dollars in thousands)	2016		2015		2014
Cash flows from operating activities:
Net income	$	7,693	$	7,103	$	6,352
Adjustments to reconcile net income to net cash used in operations:
Equity in earnings of subsidiary		(8,249)		(7,503)		(6,700)
Stock-based compensation expense		519		225		207
Changes in other assets and liabilities, net		(36)		(2)		(35)
Net cash used in operating activities		(73)		(177)		(176)

Cash flows provided by investing activities:
Dividends received from subsidiary		2,960		2,844		2,242
Net cash provided by investing activities		2,960		2,844		2,242

Cash flows used in financing activities:
Dividends paid, net of dividend reinvestment		(3,061)		(2,844)		(2,088)
Cash contributions from dividend reinvestment plan		-		-		104
Exercise of stock options		14		101		-
Withholdings to purchase capital stock		111		102		80
Net cash used in financing activities		(2,936)		(2,641)		(1,904)
Net change in cash		(49)		26		162

Cash, beginning		190		164		2

Cash, ending	$	141	$	190	$	164