Exhibit 99.1

FIDELITY D & D BANCORP, INC.

FOR IMMEDIATE RELEASE

Date: January 31, 2012

Contacts:

FIDELITY D & D BANCORP, INC.

2011 FINANCIAL RESULTS

Dunmore, PA – Fidelity D & D Bancorp, Inc. (OTC Bulletin Board: FDBC), parent company of The Fidelity Deposit and Discount Bank, announced net income for the year ended December 31, 2011 of $5.0 million, or $2.28 per share, compared to a net loss for the year ended December 31, 2010 of $3.2 million, or $1.50 per share. Other Than Temporary Impairment (OTTI) credit losses recognized throughout 2011 totaled $246 thousand, compared to the $11.8 million which caused a net loss for the 2010 year. Other improvements were made during 2011, where financial service, interchange fee and trust revenue increased $212, $157 and $72 thousand, respectively. Also, the provision for loan losses was $285 thousand lower. In addition, net interest income increased $89 thousand while other operating expenses remained flat during 2011 compared to the 2010 year.

“We are very pleased with the 2011 financial results. By staying focused on the customer and the community we serve, along with a commitment to sound business practices, we have achieved very strong earnings,” stated Daniel J. Santaniello, President and Chief Executive Officer. “The Company achieved record high deposits levels and revenues within the Financial Services and Trust Divisions. The accomplishments are particularly gratifying given the challenging regulatory and economic climate that continues to persist. The positive earnings results continue to build upon and reinforce the Company’s strong capital position. We are committed to building upon our successes so that we provide greater value to our customers, shareholders, employees, and communities.”

Net income for the quarter ended December 31, 2011 was $1.2 million compared to net loss of $4.8 million for the same quarter of 2010. The earnings per share for the quarter were $0.54 compared to loss per share of $2.26 for the same prior year period. OTTI credit losses recognized in the fourth quarter of 2011 totaled $165 thousand, compared to the $9.3 million which caused a net loss for the 2010 fourth quarter. The lending, financial service, interchange and trust initiatives engaged during the past year improved the current quarter’s other income $246 thousand and provision for loan losses was $385 thousand lower. These improvements were partially offset by the $589 thousand increase in operating expenses, primarily in salary and benefits and credit collection expenses, compared to the 2010 fourth quarter.

The Company’s assets grew $45.0 million, or 8%, to $606.7 million at December 31, 2011 from $561.7 million at December 31, 2010. This asset growth resulted primarily from the $33.4 million, or 7%, increase in deposits plus a $6.8 million, or 15%, increase in shareholders’ equity. The Bank’s regulatory capital ratios for the period ending December 31, 2011 were Total Risk Based Capital Ratio of 12.9%, Tier I Capital Ratio of 11.7% and Leverage Ratio of 8.7%, all of which decisively exceed the current "well capitalized" regulatory requirements.

Net interest income was maintained at $20.8 million for the years ended December 31, 2011 and 2010, quite an achievement in light of the economic uncertainties surrounding a year at a historically low interest rate environment. As a result, net interest margin remained at 3.89% for 2011 and 2010.

Net interest income was $5.0 million for the quarter ended December 31, 2011, compared to the $5.1 million recorded during the same quarter of 2010. The cost reductions on interest-bearing liabilities from the current interest rate environment no longer matched the effect persistently low rates had on reducing earning-asset yields. In fact, lower average commercial loans coupled with lower yields was partially offset by higher average non-interest bearing deposits and lower deposit rates were the reasons net interest margin declined to 3.67%for the fourth quarter 2011, compared to 3.79% for same 2010 period.

The provision for loan loss was $1.8 million for the 2011 year, as compared to a $2.1 million requirement for the 2010 year. The successful resolution of several commercial credits plus recoveries offset the added requirement from the reduction in overall asset quality, which lead to a lower provision for loan losses.

The provision for loan loss was $450 thousand for the fourth quarter of 2011 compared to the $835 thousand required for the fourth quarter of 2010. Deterioration in overall asset quality primarily occurred from a $3.4 million single well-collateralized owner-occupied commercial real estate loan relationship placed on non-accrual status in the 2011 fourth quarter. Because of this loan’s collateral coverage level, the required provision for loan loss was not significant. This plus the receipt of $399 thousand in recoveries lowered the level of provision for loan loss during the fourth quarter of 2011.

The ratio of non-performing assets to total assets at December 31, 2011 increased to 3.58% from 2.38% at December 31, 2010. The ratio of non-accrual loans to total loans at December 31, 2011 increased 100 basis-points to 3.40%. Net charge-offs were $1.6 million in 2011 and $1.8 million in 2010. The allowance for loan losses was 1.97% of total loans at December 31, 2011, up from 1.90% at December 31, 2010.

Total other income for the year ended December 31 2011 was $5.9 million, compared to $5.4 million for the 2010 year. The higher volume of financial service and interchange transaction fees with increased trust activity were partially off-set by lower deposit service fees collected to push other income up by $514 thousand.

Total other income recorded for the quarter ended December 31, 2011 was a $1.6 million compared with $1.4 million for the same quarter in 2010. The $246 thousand increase occurred from higher financial service revenue, increased loan production improved loan service fees collected, more interchange activity and trust growth occurring during the quarter.

Total other operating expenses remained flat at $18.0 million for the year ending December 31, 2011 and 2010. The reductions in FDIC assessment, salary and benefits and marketing expenses offset increased occupancy and equipment, professional service and loan collection and foreclosure expenditures.

Total other operating expenses increased $589 thousand, or 15%, to $4.5 million from $3.9 million for the quarters ending December 31, 2011 and 2010, respectively. The other operating expenses primarily increased from incentive and insurance accruals within salaries and benefits, higher loan collection and foreclosure expenditures, plus additional data processing costs incurred.

Fidelity D & D Bancorp, Inc. serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 11 community banking office locations. 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 may 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:

For more information please visit our investor relations web site located through www.bankatfidelity.com.