CHICAGO, Jan. 18 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
first quarter earnings of $0.51 per diluted share for the period ended
December 31, 1999. The company also announced its board of directors
increased the quarterly dividend by nine percent from $0.11 to $0.12 per
share, payable February 15, 2000 to stockholders of record as of January 31,
2000.
Earnings per diluted share for the quarter ended December 31, 1999 were up
$0.15 per share from $0.36 for the same period one year ago. The increase in
earnings per share was the result of greater income from loans receivable and
fewer shares outstanding.
For the quarter ended December 31, 1999, net income was $1.1 million.
Net income for the quarter was up $224,000, or 25 percent from one year ago,
the result of greater interest income from loans receivable and an increase in
non-interest income. Management's efforts to control operating expenses also
contributed to the increase in net income.
"Our income strategy in the past has focused on volume of loans," said
Raymond S. Stolarczyk, chairman and chief executive officer. "We are making a
transition to income from higher loan yields, and our results show success in
managing that transition," he said.
Net interest income for the first quarter was $10.7 million, compared with
$9.3 million for the quarter ended December 31, 1998, an increase of
15 percent. Interest income from loans receivable for the quarter ended
December 31, 1999 was $9.3 million, up $1.4 million or 17 percent from
$7.9 million in the previous year.
Net loans receivable were $507.1 million at December 31, 1999, compared
with $507.6 million at September 30, 1999. Loans receivable were stable,
despite higher rates on mortgages which resulted in a slow-down in consumer
demand for home loans. In addition, higher than expected repayments on
existing loans early in the quarter affected loan growth.
The company's asset quality remained excellent, with the ratio of
non-performing assets to total assets totaling 0.06 percent at December 31,
1999, unchanged from September 30, 1999.
Deposits remained stable for the quarter, reflecting customer confidence
in the bank's ability to meet the challenges of the Year 2000 date change. At
December 31, 1999, deposits were $358.0 million, compared with $357.0 million
at September 30, 1999. Interest expense on deposits was $4.1 million for the
quarter ended December 31, 1999 compared with $3.9 million the prior year.
Interest expense on borrowed funds was up, primarily due to higher interest
rates prompted by the Federal Reserve's actions to increase short-term
interest rates.
"The time and dollars invested in preparing for the Year 2000 paid off
with great success," said Thomas E. Bentel, president and chief operating
officer. "We are extremely pleased that our customers demonstrated their
confidence in our abilities by leaving their money in the bank."
First quarter operating expenses were tightly controlled. Non-interest
expenses were $2.5 million for the quarter ended December 31, 1999, up just
$60,000 from the prior year. The company's efficiency improved in the
quarter, with the ratio of operating expenses to average assets falling to
1.66 percent for the quarter ended December 31, 1999, from 1.86 percent for
the quarter ended December 31, 1998.
The company's return on average equity increased to 10.6 percent for the
quarter ended December 31, 1999, compared with 7.7 percent for the same
quarter one year ago. In addition, the company's book value per share
increased to $19.23 at December 31, 1999, compared with $19.03 at September
30, 1999.
The company announced its 10th stock repurchase plan on October 19, 1999.
Under the plan, up to 110,000 shares, or 5 percent, may be purchased. There
are 50,500 remaining shares available to be purchased. The company views
stock repurchase programs as part of an ongoing strategy to build value for
shareholders.
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
Assets December 31, September 30,
1999 1999
Cash and due from banks $4,525 $2,714
Interest-earning deposits 821 576
Federal funds sold 100 100
FHLB of Chicago stock, at cost 9,615 9,615
Mortgage-backed securities
held to maturity, at amortized
cost (approximate fair value
of $3,396 at December 31, 1999
and $3,637 September 30, 1999) 3,376 3,585
Investment securities available
for sale, at fair value 64,294 66,070
Loans receivable, net of allowance
for loan losses of $818 at
December 31, 1999 and $780
at September 30, 1999 507,108 507,557
Accrued interest receivable 2,818 3,665
Real estate in foreclosure 145 -
Premises and equipment 4,168 4,202
Deposit base intangible 28 34
Other assets 1,358 1,163
$598,356 599,281
Liabilities and Stockholders'
Equity
Liabilities
Deposits 357,964 357,016
Borrowed funds 188,540 186,250
Advance payments by borrowers
for taxes and insurance 5,244 7,986
Other liabilities 5,294 6,008
Total liabilities 557,042 557,260
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;
2,148,766 and 2,207,846 shares
outstanding at December 31, 1999
and September 30, 1999,
respectively 38 38
Additional paid-in capital 38,764 38,690
Retained earnings, substantially
restricted 34,661 33,771
Treasury stock, at cost
(1,633,584 and 1,574,504
shares at December 31, 1999
and September 30, 1999,
respectively) (29,199) (28,168)
Common stock acquired by
Employee Stock Ownership Plan (189) (632)
Common stock acquired by
Bank Recognition and Retention
Plans (196) (198)
Accumulated other comprehensive
income (2,565) (1,480)
Total stockholders' equity 41,314 42,021
$598,356 599,281
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Ended
December 31,
1999 1998
Interest Income:
Loans receivable $9,290 7,937
Investment securities 1,322 1,130
Mortgage-backed securities 65 184
Interest-earning deposits 11 18
Federal funds sold 1 1
10,689 9,270
Interest Expense:
Deposits 4,066 3,865
Borrowed funds 2,612 1,775
6,678 5,640
Net interest income before
provision for loan losses 4,011 3,630
Provision for loan losses 40 25
Net interest income after
provision for loan losses 3,971 3,605
Non-interest Income:
Fees and commissions 103 96
Insurance and annuity commissions 224 153
Other 12 13
339 262
Non-interest Expense:
General and administrative
expenses:
Salaries and employee benefits 1,425 1,421
Office occupancy and equipment 358 365
Data processing 127 134
Advertising and promotions 182 100
Federal deposit insurance premiums 51 52
Other 329 337
Amortization of deposit base
intangible 6 9
2,478 2,418
Income before income taxes 1,832 1,449
Income tax expense 699 540
Net income $1,133 $909
Earnings per share - basic $0.53 $0.38
Earnings per share - diluted $0.51 $0.36
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
December 31, September 30,
1999 1999
Selected Financial Highlights:
Total assets $598,356 599,281
Interest-earning assets 585,314 587,503
Loans receivable, net 507,108 507,557
Deposits 357,964 357,016
Borrowed funds 188,540 186,250
Non-performing assets 356 343
Non-performing loans 211 343
Allowance for loan losses 818 780
Stockholders' equity 41,314 42,021
Book value per share 19.23 19.03
Shares outstanding -
actual number 2,148,766 2,207,846
Asset Quality Ratios:
Non-performing loans to
loans receivable, net 0.04% 0.07%
Non-performing loans to
total assets 0.04% 0.06%
Non-performing assets to
total assets 0.06% 0.06%
Allowance for loan losses
to total non-performing loans 387.68% 227.41%
Allowance for loan losses to
loans receivable, net 0.16% 0.15%
Three Months ended
December 31,
1999 1998
Selected Operating Activities (annualized):
Return on average assets 0.76% 0.70%
Return on average equity 10.63% 7.71%
Net interest rate spread during
period 2.32% 2.37%
Net interest margin 2.74% 2.88%
Net interest income to
non-interest expense 161.86% 150.12%
Operating expenses to
average assets 1.66% 1.86%
Basic earnings per share $0.53 $0.38
Diluted earnings per share $0.51 $0.36
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
Related links:
www.fidelitybk.com
CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Jim Kinney, Sr. VP & CFO, of
Fidelity Bancorp Inc., 773-736-4414
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