CHICAGO, Jan. 14 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
first quarter earnings of $0.92 per diluted share for the period ended
December 31, 2001. The company also announced that its board of directors
increased the quarterly dividend by 8%, from $0.12 to $0.13 per share, payable
on February 15, 2002 to stockholders of record as of January 31, 2002.
For the quarter ended December 31, 2001, earnings per diluted share
increased $0.51 to $0.92 from $0.41 for the same period in 2000. Net income
for the quarter was $1.9 million, compared with $863,000 in 2000. Earnings
per share and net income increased due to reduced interest expense and
increased non-interest income.
"The quarter's excellent results reflect our ongoing effort to improve our
interest rate spread," said Raymond S. Stolarczyk, chairman and chief
executive officer. "We have made good strides in moving our balance sheet to
higher-yielding loans, even as interest rates reached historic lows. In the
coming quarters, we expect earnings to continue to benefit from our improved
net interest margin. However, we do not foresee future gains of this
magnitude in non-interest income produced by loan sales."
The company's net interest margin, the primary driver of its earnings,
increased from 2.16% for the quarter ended December 31, 2000 to 3.08% in 2001.
Net interest income, before provision for loan losses, was $5.0 million for
the quarter ended December 31, 2001, up $1.7 million or 49% from $3.4 million
in 2000. The increase in the company's net interest income was primarily the
result of a significant decrease in interest expense. Total interest expense
for the quarter ended December 31, 2001 was $6.4 million, down $2.2 million or
26% from $8.6 million one year ago. Over the past year, the Federal Reserve
lowered interest rates 11 times, resulting in a gradual reduction of interest
costs on both borrowed funds and deposits.
Interest expense on borrowed funds declined 28%, to $2.5 million for the
quarter ended December 31, 2001, from $3.5 million in 2000. Borrowed funds
remained stable at $187.9 million at December 31, 2001, compared with
$187.3 million at September 30, 2001.
For the quarter ended December 31, 2001, interest expense on deposits was
$3.8 million, compared with $5.0 million a year ago, down $1.2 million, or
24%. Despite significant cuts in interest rates, especially on some
promotionally priced certificates of deposit, deposits increased $18.8 million
or 5%, from $399.6 million at September 30, 2001, to $418.4 million at
December 31, 2001.
"Customer retention has been a focus these past months, so I'm pleased
we've actually added deposits, topping the $400 million mark for the first
time," said Thomas E. Bentel, president and chief operating officer. "During
the latter part of fiscal 2000 and early fiscal 2001, we paid a slight premium
on certificates of deposit to retain existing customers and attract new ones.
Over the past 12 months, as savings rates have dropped, many of those
customers have stayed with us, often times extending the term of their
accounts at maturity."
The improvement in interest expense was somewhat offset by a decrease in
interest income. Total interest income was $11.4 million for the quarter
ended December 31, 2001, compared with $11.9 million for the same period in
2000, down $542,000 or 5%. Interest income from loans receivable was
$8.3 million for the quarter ended December 31, 2001, compared with
$10.2 million in 2000. Income from loans receivable fell primarily the result
of a decline in the quarterly outstanding average balances. High repayments
and loan sales that took place in the latter half of fiscal 2001 and the first
quarter of 2002 adversely affected both volume and yield. Income from
mortgage-backed securities, however, was $2.2 million for the quarter ended
December 31, 2001, compared with $53,000 for the same period in 2000. An
initiative to maintain earning asset levels resulted in the purchase of
mortgage-backed securities with proceeds from repayments and the sale of
single-family conforming mortgages.
Net loans receivable at December 31, 2001 were $432.3 million, up
$9.3 million or 2% from September 30, 2001. Solid demand for higher-yielding
loan products helped offset continued high loan repayments, resulting in loans
receivable growth. New loans closed, including multi-family and commercial
mortgages and loans secured by commercial leases, totaled $49.2 million for
the quarter ended December 31, 2001. Loan repayments totaled $41.7 million
for the quarter ended December 31, 2001, compared with $26.5 million for the
same period in 2000.
Non-interest income was up $600,000, to $985,000 for the quarter ended
December 31, 2001, from $385,000 in the year earlier period. The increase was
primarily the result of a $541,000 before tax gain on the sale of
$23.1 million of loans held for sale. In addition, insurance and annuity
commissions totaled $220,000 for the quarter, up $74,000 or 51% from $146,000
in 2000. A reduction in the rate of commissions earned by the bank was
overcome by an aggressive sales effort.
Non-interest expense increased to $2.8 million for the quarter ended
December 31, 2001, compared with $2.4 million in the same period in 2000, up
14%. Employee benefits, including higher group health insurance premiums,
increased personnel and normal annual salary increases were responsible for
the rise. The company's health insurance premiums are expected to increase in
the second quarter and throughout the remainder of fiscal 2002.
The company's asset quality remained excellent, although a weakened
economy was reflected in an up tick in the company's ratio of non-performing
assets to total assets. At December 31, 2001, the ratio of non-performing
assets to total assets was 0.26%, compared with 0.10% at September 30, 2001.
"The company's non-performing assets ratio continues to be significantly
better than our national and regional peers," said Bentel. "In addition, we
don't expect asset quality to have an adverse effect on this fiscal year's
earnings."
Book value per share at December 31, 2001 was $23.85, compared with $24.44
at September 30, 2001. The decrease in book value per share was attributable
to an unrealized decline in market value in the securities available for sale
portfolio.
The company saw significant improvement in other measures in the first
quarter. For example, the company's return on average equity increased to
15.39% for the quarter ended December 31, 2001, compared with 7.90% for the
quarter ended December 31, 2000.
Fidelity Bancorp, Inc. is the holding company for Fidelity Federal Savings
Bank, which provides retail banking services through five full-service
locations in Chicago, Franklin Park and Schaumburg. Established in 1906 and
headquartered in northwest Chicago, the bank is primarily in the business of
attracting retail deposits from the general public and investing those funds
in mortgages and consumer loans. The bank also provides investments that are
not FDIC insured through its insurance agency and Invest Financial
Corporation. Fidelity's common stock is traded on The Nasdaq Stock Market
under the symbol "FBCI."
Fidelity Bancorp Inc.'s news releases are available by mail or fax by
contacting the company. News releases are also available on the Internet by
visiting http://www.prnewswire.com and clicking on "Today's News" and then "Company
News" from the pull down menu. The company's SEC filings are available
electronically on the Internet at http://www.sec.gov/cgi-bin/srch-edgar?0000912219 .
This news release contains forward-looking statements, which are subject
to numerous assumptions, risk and uncertainties. Actual results could differ
materially from those contained in or implied by such forward-looking
statements for a variety of factors including: (1) developments in general
economic conditions, including interest rate and currency fluctuations, market
fluctuations and perceptions, and inflation; (2) changes in the economy which
could materially change anticipated credit quality trends and the ability to
generate loans and deposits; (3) a failure of the capital markets to function
consistently with customary levels; (4) a delay in or an inability to execute
strategic initiatives designed to grow revenues and/or manage expenses; (5)
legislative developments, including changes in laws concerning taxes, banking,
securities, insurance and other aspects of the industry; and (6) changes in
the competitive environment for financial services organizations and the
company's ability to adapt to such changes.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)
Assets December 31, 2001 September 30, 2001
Cash and due from banks $2,595 $7,107
Interest-earning deposits 2,257 1,397
Federal funds sold 100 100
Cash and cash equivalents 4,952 8,604
FHLB of Chicago stock, at cost 18,230 18,055
Mortgage-backed securities available
for sale 152,898 127,685
Securities available for sale 33,079 42,066
Loans held for sale 16,380 41,219
Loans receivable, net of allowance for
loan losses of $1,349 at December 31,
2001 and $1,236 at September 30, 2001 432,327 422,980
Accrued interest receivable 3,626 3,650
Premises and equipment 3,798 3,850
Other assets 1,165 657
$666,455 668,706
Liabilities and Stockholders' Equity
Liabilities
Deposits 418,369 399,619
Borrowed funds 187,930 187,345
Advance payments by borrowers for
taxes and insurance 4,244 7,193
Due to broker - 14,918
Other liabilities 7,666 10,247
Total liabilities 618,209 619,322
Stockholders' Equity
Preferred stock, $.01 par value;
authorized 2,500,000 shares; none
outstanding - -
Common stock, $.01 par value;
authorized 8,000,000 shares; issued
3,782,350 shares; 2,022,867 and
2,020,367 shares outstanding at
December 31, 2001 and September 30,
2001, respectively 38 38
Additional paid-in capital 38,623 38,636
Retained earnings, substantially
restricted 42,628 40,926
Treasury stock, at cost
(1,759,483 and 1,761,983 shares at
December 31, 2001 and September 30,
2001, respectively) (31,496) (31,540)
Common stock acquired by Bank
Recognition and Retention Plans (176) (178)
Accumulated other comprehensive
income (loss) (1,371) 1,502
Total stockholders' equity 48,246 49,384
$666,455 668,706
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
(Dollars in thousands, except per share data)
Three Months Ended December 31,
2001 2000
Interest Income:
Loans receivable $8,270 10,234
Securities 916 1,632
Mortgage-backed securities 2,195 53
Other interest income 10 14
11,391 11,933
Interest Expense:
Deposits 3,822 5,015
Borrowed funds 2,535 3,538
6,357 8,553
Net interest income before provision
for loan losses 5,034 3,380
Provision for loan losses 140 70
Net interest income after provision
for loan losses 4,894 3,310
Non-interest Income:
Fees and commissions 143 118
Insurance and annuity commissions 220 146
Gain on sale of securities 72 -
Gain on sale of loans 541 -
Other 9 121
985 385
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,699 1,411
Office occupancy and equipment 370 374
Data processing 132 134
Advertising and promotions 158 155
Other 412 365
2,771 2,439
Income before income taxes 3,108 1,256
Income tax expense 1,163 393
Net income $1,945 $863
Earnings per share - basic $0.96 $0.43
Earnings per share - diluted $0.92 $0.41
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except per share data)
December 31, September 30,
2001 2001
Selected Financial Highlights:
Total assets $666,455 668,706
Interest-earning assets 655,271 653,502
Loans receivable, net 432,327 422,980
Deposits 418,369 399,619
Borrowed funds 187,930 187,345
Non-performing assets 1,760 677
Non-performing loans 1,363 677
Allowance for loan losses 1,349 1,236
Stockholders' equity 48,246 49,384
Book value per share 23.85 24.44
Shares outstanding - actual number 2,022,867 2,020,367
Asset Quality Ratios:
Non-performing loans to loans
receivable, net 0.32% 0.16%
Non-performing loans to total assets 0.20% 0.10%
Non-performing assets to total assets 0.26% 0.10%
Allowance for loan losses to total
non-performing loans 98.99% 182.57%
Allowance for loan losses to loans
receivable, net 0.31% 0.29%
Three Months ended
December 31,
2001 2000
Selected Operating Activities (annualized):
Return on average assets 1.16% 0.54%
Return on average equity 15.39% 7.90%
Net interest rate spread during period 2.65% 1.70%
Net interest margin 3.08% 2.16%
Net interest income to non-interest expense 181.67% 138.58%
Operating expenses to average assets 1.65% 1.52%
Basic earnings per share $0.96 $0.43
Diluted earnings per share $0.92 $0.41
SOURCE Fidelity Bancorp, Inc.
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CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Elizabeth A. Doolan, Sr. Vice
President & CFO, all of Fidelity Bancorp, Inc., +1-773-736-4414
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