CHICAGO, Jan. 16 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
first quarter earnings of $0.41 per diluted share for the period ended
December 31, 2000. The company also announced its board of directors declared
a quarterly dividend of $0.12 per share, payable February 15, 2001 to
stockholders of record as of January 31, 2001.
Earnings per diluted share for the quarter ended December 31, 2000 were
down $0.10 per share from $0.51 for the same period in 1999. Net income for
the quarter ended December 31, 2000 was $863,000, down from $1.1 million in
1999. Despite a significant increase in interest income, earnings per share
and net income declined in the first quarter due to higher interest expense.
"We have made good headway in increasing the yield on our loan portfolio,
resulting in higher interest income," said Raymond S. Stolarczyk, chairman and
chief executive officer. "However, the interest rate environment and
competition for deposits have greatly impacted funding costs. We are
optimistic that the Federal Reserve's recent action to lower interest rates
may offer some interest expense relief."
Interest income from loans receivable for the quarter ended
December 31, 2000 was $10.2 million, up $900,000 or 10 percent from
$9.3 million for the same quarter in 1999. The increase was primarily due to
an increase in the loan portfolio's average yield, from 7.37 percent for the
quarter ended December 31, 1999, to 7.60 percent for the quarter ended
December 31, 2000. In addition, loans receivable increased $7.2 million from
$534.0 million at September 30, 2000 to $541.2 million at December 31, 2000.
Total interest income for the quarter ended December 31, 2000 was
$11.9 million, compared with $10.7 million in 1999, an increase of
$1.2 million or 12 percent.
The increase in interest income was offset by higher interest expense.
Interest expense on deposits and borrowed funds rose $1.9 million to
$8.6 million for the quarter ended December 31, 2000, compared with
$6.7 million for the same period n 1999. The increase in interest expense was
due to higher interest rates on deposits as customers transferred funds from
savings accounts to lock in yields on higher-rate certificates of deposit.
In the first fiscal quarter, deposits grew $4.1 million to $385.5 million
at December 31, 2000, from $381.4 million at September 30, 2000. Borrowed
funds declined $2.1 million to $203.1 million at December 31, 2000 from
$205.2 at September 30, 2000.
"The retention of long-term customer relationships, and the deposits they
represent, remains a priority in building Fidelity's franchise value," said
Thomas E. Bentel, president and chief operating officer. "Recent competitive
offers in the marketplace have impacted the cost of addressing that priority
in terms of higher interest expense."
Non-interest income was up 14 percent or $46,000 to $385,000 for the
quarter ended December 31, 2000, compared with $339,000 for the same period in
1999. During the first fiscal quarter, the bank sold its interest in a real
estate investment, for a gain of $106,000. Commissions from insurance and
annuity sales were down 35 percent, to $146,000 for the quarter ended December
31, 2000, compared with $224,000 for the same period in 1999. Uncertainty
about the stock market, the presidential election and interest rates all
contributed to slower product sales during the quarter.
Non-interest expense for the quarter ended December 31, 2000 declined
slightly to $2.4 million from $2.5 million for the same period in 1999. As a
result, the company's operating expenses to average assets continued to
decline, to 1.52 percent at December 31, 2000, from 1.66 percent at
December 31, 1999.
The company's asset quality remained excellent. The ratio of
non-performing assets to total assets increased slightly to 0.08 percent at
December 31, 2000, from 0.06 percent at September 30, 2000.
In the company's current stock repurchase program, its 10th, up to
12,800 shares of stock may be repurchased. The repurchase of shares has
increased the company's book value per share. Book value per share at
December 31, 2000 was $22.02, compared with $19.23 at December 31, 1999.
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 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 through PR Newswire's
Company News On-Call fax service. For a menu of Fidelity Bancorp's news
releases, or to receive a specific release, call 800-758-5804, ext. 107861, or
at http://www.prnewswire.com on the Internet. 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, September 30,
2000 2000
Cash and due from banks $5,495 $4,690
Interest-earning deposits 616 1,405
Federal funds sold 100 100
FHLB of Chicago stock, at cost 10,485 10,065
Mortgage-backed securities held to
maturity, at amortized cost
(approximate fair value of $3,131
at December 31, 2000 and $3,202
September 30, 2000) 3,065 3,179
Investment securities available
for sale, at fair value 75,801 74,366
Loans receivable, net of allowance
for loan losses of $1,017 at
December 31, 2000 and $950 at
September 30, 2000 541,204 533,999
Accrued interest receivable 3,725 4,161
Real estate in foreclosure 11 3
Premises and equipment 3,879 3,925
Deposit base intangible 9 13
Other assets 432 1,125
$644,822 637,031
Liabilities and Stockholders' Equity
Liabilities
Deposits 385,532 381,433
Borrowed funds 203,130 205,150
Advance payments by borrowers for
taxes and insurance 5,608 2,198
Other liabilities 6,275 5,447
Total liabilities 600,545 594,228
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; 2,010,785 and
2,025,085 shares outstanding at
December 31, 2000 and
September 30, 2000, respectively 38 38
Additional paid-in capital 38,811 38,780
Retained earnings, substantially restricted 37,642 37,022
Treasury stock, at cost
(1,771,565 and 1,757,265 shares at
December 31, 2000 and
September 30, 2000, respectively) (31,651) (31,391)
Common stock acquired by Employee
Stock Ownership Plan - (189)
Common stock acquired by Bank Recognition
and Retention Plans (186) (191)
Accumulated other comprehensive income (377) (1,266)
Total stockholders' equity 44,277 42,803
$644,822 637,031
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
(Dollars in thousands, except per share data)
Three Months Ended
December 31,
2000 1999
Interest Income:
Loans receivable $10,234 9,290
Investment securities 1,632 1,322
Mortgage-backed securities 53 65
Interest-earning deposits 12 11
Federal funds sold 2 1
11,933 10,689
Interest Expense:
Deposits 5,015 4,066
Borrowed funds 3,538 2,612
8,553 6,678
Net interest income before provision
for loan losses 3,380 4,011
Provision for loan losses 70 40
Net interest income after provision
for loan losses 3,310 3,971
Non-interest Income:
Fees and commissions 118 103
Insurance and annuity commissions 146 224
Other 121 12
385 339
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,411 1,425
Office occupancy and equipment 374 358
Data processing 134 127
Advertising and promotions 155 182
Other 361 380
Amortization of deposit base intangible 4 6
2,439 2,478
Income before income taxes 1,256 1,832
Income tax expense 393 699
Net income $863 $1,133
Earnings per share - basic $0.43 $0.53
Earnings per share - diluted $0.41 $0.51
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
December 31, September 30,
2000 2000
Selected Financial Highlights:
Total assets $644,822 637,031
Interest-earning assets 631,271 623,114
Loans receivable, net 541,204 533,999
Deposits 385,532 381,433
Borrowed funds 203,130 205,150
Non-performing assets 519 382
Non-performing loans 508 379
Allowance for loan losses 1,017 950
Stockholders' equity 44,277 42,803
Book value per share 22.02 21.14
Shares outstanding - actual number 2,010,785 2,025,085
Asset Quality Ratios:
Non-performing loans to loans
receivable, net 0.09% 0.07%
Non-performing loans to total assets 0.08% 0.06%
Non-performing assets to total assets 0.08% 0.06%
Allowance for loan losses to total
non-performing loans 200.20% 250.66%
Allowance for loan losses to loans
receivable, net 0.19% 0.18%
Three Months ended
December 31,
2000 1999
Selected Operating Activities (annualized):
Return on average assets 0.54% 0.76%
Return on average equity 7.90% 10.63%
Net interest rate spread during period 1.70% 2.32%
Net interest margin 2.16% 2.74%
Net interest income to non-interest expense 138.58% 161.86%
Operating expenses to average assets 1.52% 1.66%
Basic earnings per share $0.43 $0.53
Diluted earnings per share $0.41 $0.51
SOURCE Fidelity Bancorp, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/107861.html or fax,
800-758-5804, ext. 107861
CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Elizabeth A. Doolan, Vice
President & CFO, 773-736-4414, all of Fidelity Bancorp, Inc.
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