FDBC

Fidelity D&D is a small, conservatively-run Pennsylvania community bank (21 branches, all in-state) trading at just 10.9x FY2025 diluted EPS of $4.86 — inexpensive for a lender that grew net income 35.6% to $28.2M and diluted EPS 35.0% last year. The balance sheet is the standout: effectively zero debt (only $20K short-term borrowings, long-term debt reported at $0 since FY2016), stockholders' equity up 17.1% to $239M, retained earnings up 13.3% to $159M, and cash up 77.6% to $148M. Operating cash flow of $42.4M comfortably funds the $9.4M dividend (a ~33% payout) with room to spare. At 11.8% ROE and roughly 1.3x book (market cap ~$307M on 5.81M shares vs. $239M equity), you're paying a modest premium for a well-capitalized, profitable franchise.

The elevated FY2025 capex ($17.5M, +276%) is not a red flag but the tail end of a one-time build: the MD&A/Properties disclosure confirms the company is completing a new Scranton corporate headquarters (the former Scranton Electric Building) in Q2 2026, after which the current downtown Scranton financial center 'is expected to be sold in 2026.' That means the capex bulge should normalize and a property sale could add a one-off gain, while consolidating scattered leased offices (limited production office, training center) into the owned HQ. The filing notes no material litigation and a stable ~1,536-shareholder base.