CHICAGO, Jan. 19 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported first
quarter earnings of $0.36 per diluted share for the period ended Dec. 31,
1998. The company also announced its board of directors increased the
quarterly dividend one cent, or 10 percent, to $0.11 per share, payable
Feb. 12, 1999 to stockholders of record as of Jan. 29, 1999.
Earnings were up $0.02 per diluted share for the quarter ended Dec. 31,
1998, from $0.34 per diluted share for the first quarter of 1997. Net income
as of December 31, 1998 was $909,000, compared with $977,000 in 1997. The
increase in earnings per share was the result of an increase in net interest
income from a greater number of loans receivable, and a smaller number of
shares outstanding.
"We're building our earning assets again," said Raymond S. Stolarczyk,
chairman and chief executive officer, "and our earnings per share reflect
that. With this quarter's results we're off to a good start."
Interest income was $9.3 million for the quarter ended Dec. 31, 1998,
compared with $9.1 million for the same period in 1997, an increase of 2.1
percent. Interest income from loans receivable was up 6.2 percent from
$7.5 million as of Dec. 31, 1997, to $7.9 million as of Dec. 31, 1998.
Loans receivable, net of allowance for loan losses, were $441.4 million at
Dec. 31, 1998, up 3.1 percent from $425.6 million at Sept. 30, 1998. Loan
originations for the first quarter were $54.0 million, compared with $28.8
million one year ago. Principal repayments continued to be high, totaling
$38.0 million for the quarter. Total assets grew 5.3 percent from $513.6
million at September 30, 1998 to $540.7 million at Dec. 31, 1998.
"Even though mortgage refinance activity continues at high levels, we have
kept ahead of repayments by pumping up new loan production," Stolarczyk said.
"As a result, our interest-earning assets grew by $25 million in the first
quarter. And we're confident we can keep growth in earning assets on track
through the year."
The high quality of the bank's loans was reflected in its asset quality
ratios. The ratio of non-performing assets to total assets declined to 0.13
percent at Dec. 31, 1998 from 0.19 percent at Sept. 30, 1998.
In the first quarter, deposits grew $7.8 million to $338.4 million at
Dec. 31, 1998 from $330.7 million at Sept. 30, 1998. Deposit growth came
primarily from transaction accounts. Interest expense on deposits was down
6.0 percent, from $4.1 million at Dec. 31, 1997 to $3.9 million at Dec. 31,
1998.
"We have been managing our liabilities pricing to reduce some higher-cost
certificates of deposit, replacing them with lower-cost transaction accounts,"
said Thomas E. Bentel, president and chief operating officer. "At the same
time, we have taken steps to lower transaction account pricing. I'm pleased
that we were able to lower interest expense while still growing core
deposits," he said.
The company's net interest rate spread increased from 2.32 percent as of
Dec. 31, 1997 to 2.37 percent as of Dec. 31, 1998. The net interest rate
spread improved because the cost of funds went down more quickly than the
yield on assets.
General and administrative expenses were $2.4 million for the quarter
ended Dec. 31, 1998, compared with $2.2 million for the same period in 1997.
The increase was attributed to higher salaries and benefits, other expenses
and depreciation of the company's recently upgraded computer system. The Year
2000 compliant computer system was a needed infrastructure improvement that
allows the bank more flexibility in serving its customers. In part because of
slow asset growth in the previous four quarters, the company's operating
expenses to average assets increased from 1.8 percent in the first quarter of
1998 to 1.9 percent for the quarter ended Dec. 31, 1998.
On Nov. 18, 1998, the company announced a plan to repurchase 240,000
shares, or ten percent of its common stock. There are 126,500 shares
remaining to be repurchased in the current program. The company's board of
directors views stock repurchases as a capital strategy for building
stockholder value.
"While stock repurchases have the desired effect on our earnings per
share, they also have had the effect of marginally decreasing our book value,"
Stolarczyk said. The company's book value per share was $18.69 at Dec. 31,
1998, down from $18.76 at Sept. 30, 1998.
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.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
Dollars in thousands
Assets Dec. 31, 1998 Sept. 30, 1998
Cash and due from banks $4,527 $1,320
Interest-earning deposits 498 555
Federal funds sold 100 100
FHLB of Chicago stock, at cost 7,410 6,510
Mortgage-backed securities held
to maturity, at amortized cost
(approximate fair value of $10,027
at Dec. 31, 1998 and $11,513
Sept. 30, 1998) 9,910 11,177
Investment securities available
for sale, at fair value 68,377 58,979
Loans receivable, net of allowance
for loan losses of $630 at
Dec. 31, 1998 and $591 Sept. 30,
1998 441,409 425,608
Accrued interest receivable 2,594 3,547
Real estate in foreclosure 380 131
Premises and equipment 4,297 4,401
Deposit base intangible 57 66
Other assets 1,120 1,169
$540,679 513,563
Liabilities and Stockholders' Equity
Liabilities
Deposits 338,447 330,670
Borrowed funds 148,200 121,400
Advance payments by borrowers for
taxes and insurance 4,710 6,919
Other liabilities 5,940 5,977
Total liabilities 497,297 464,966
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;
2,321,684 and 2,589,784 shares
outstanding at Dec. 31, 1998
and Sept. 30, 1998, respectively 38 38
Additional paid-in capital 38,225 38,117
Retained earnings, substantially
restricted 31,297 30,646
Treasury stock, at cost
(1,460,666 and 1,192,566 shares at
Dec. 31, 1998 and Sept. 30, 1998,
respectively) (25,315) (19,210)
Common stock acquired by
Employee Stock Ownership Plan (632) (1,092)
Common stock acquired by Bank
Recognition and Retention Plans (206) (242)
Accumulated other comprehensive
income (25) 340
Total stockholders' equity 43,382 48,597
$540,679 513,563
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Ended
Dec. 31,
1998 1997
Interest Income:
Loans receivable $7,937 7,476
Investment securities 1,130 1,259
Mortgage-backed securities 184 289
Interest-earning deposits 18 28
Federal funds sold 1 10
Investment in dollar-denominated
mutual funds -- 17
9,270 9,079
Interest Expense:
Deposits 3,865 4,110
Borrowed funds 1,775 1,458
5,640 5,568
Net interest income before provision
for loan losses 3,630 3,511
Provision for loan losses 25 46
Net interest income after provision
for loan losses 3,605 3,465
Non-interest Income:
Fees and commissions 96 90
Insurance and annuity commissions 153 180
Other 13 14
262 284
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,421 1,341
Office occupancy and equipment 365 291
Data processing 134 127
Advertising and promotions 100 112
Federal deposit insurance premiums 52 54
Other 337 284
Amortization of deposit base intangible 9 11
Recovery of impairment of investment
securities available for sale -- (22)
2,418 2,198
Income before income taxes 1,449 1,551
Income tax expense 540 574
Net income $909 977
Earnings per share -- basic $0.38 $0.36
Earnings per share -- diluted $0.36 $0.34
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
Dec. 31, 1998 Sept. 30, 1998
Selected Financial Highlights:
Total assets $540,679 513,563
Interest-earning assets 527,704 502,929
Loans receivable, net (A) 441,409 425,608
Deposits 338,447 330,670
Borrowed funds 148,200 121,400
Non-performing assets 719 962
Non-performing loans 339 831
Allowance for loan losses 530 591
Stockholders' equity 43,382 48,597
Book value per share 18.69 18.76
Shares outstanding -- actual number 2,321,684 2,589,784
Asset Quality Ratios:
Non-performing loans to loans
receivable, net (B) 0.08% 0.20%
Non-performing loans to total assets (B) 0.06% 0.16%
Non-performing assets to total assets (B) 0.13% 0.19%
Allowance for loan losses to total
non-performing loans (B) 185.84% 71.12%
Allowance for loan losses to loans
receivable, net 0.14% 0.14%
Three Months ended Dec. 31,
1998 1997
Selected Operating Activities (annualized):
Return on average assets 0.70% .79%
Return on average equity 7.71% 7.65%
Net interest rate spread during period 2.37% 2.32%
Net interest margin 2.88% 2.92%
Net interest income to operating
expenses 150.12% 159.74%
Operating expenses to average assets 1.86% 1.78%
Basic earnings per share $0.38 $0.36
Diluted earnings per share $0.36 $0.34
(A) The loans receivable portfolio includes $0 and $30,000 of Bennett Funding
Group commercial equipment leases at Dec. 31, 1998 and Sept. 30, 1998,
respectively
(B) The non-performing loans include Bennett Funding Group commercial
equipment leases.
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 Jim Kinney, Sr. VP & CFO, all of
Fidelity Bancorp, Inc., 773-736-4414
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