CHICAGO, Jan. 22 /PRNewswire-FirstCall/ --
Fidelity Bancorp, Inc. (Nasdaq: FBCI), the parent company of Fidelity Federal
Savings Bank, today reported fiscal 2003 first quarter earnings of $0.58 per
diluted share for the quarter ended December 31, 2002. The company also
announced its board of directors declared a quarterly dividend of $0.10 per
share, payable February 14, 2003 to stockholders of record as of February 1,
2003. All figures reported for earnings per share and dividends have been
adjusted to reflect the company's three-for-two stock split, which occurred
February 28, 2002.
First quarter earnings per diluted share were down $0.03 per share from
$0.61 for the quarter ended December 31, 2001 due to a greater number of
diluted common shares outstanding at December 31, 2002. In addition, during
the quarter ended December 31, 2001, there was a $613,000 gain on the sale of
loans and investments compared with $314,000 for the quarter ended
December 31, 2002. Without gains on investments and loans, earnings per
diluted share for the quarter ended December 31, 2002 were $0.52, compared
with $0.49 for the prior year period. Net income for the quarter ended
December 31, 2002 was $1.9 million, essentially unchanged from the same period
in 2001.
"Despite the continuing high rate of repayments we experienced during the
quarter, core earnings remained stable and strong," said Raymond S.
Stolarczyk, chairman and chief executive officer. "I'm pleased that we were
able to protect our net interest margin to the extent we did."
The company's net interest margin declined to 2.90% for the quarter ended
December 31, 2002, compared with 3.08% for the same period in 2001. Net
interest income, after provision for loan losses, was $4.9 million for the
quarter ended December 31, 2002, unchanged from the prior year period. A
decline in interest expense helped stabilize net interest income. Total
interest expense was $4.9 million as of December 31, 2002, down 23% from
$6.4 million in 2001.
Interest expense on borrowed funds declined 22%, to $2.0 million for the
quarter ended December 31, 2002, from $2.5 million in 2001. Borrowed funds
increased slightly to $187.0 million at December 31, 2002, compared with
$180.7 million at September 30, 2002.
For the quarter ended December 31, 2002, interest expense on deposits was
$2.9 million, compared with $3.8 million a year ago, down $900,000, or 23%.
Lower interest rates on deposits in general and reduced rates paid on maturing
CDs that were retained contributed to the decrease in deposit interest
expense.
In spite of lower interest rates, customers continued to seek out the
security of FDIC insurance and guaranteed returns. For the quarter ended
December 31, 2002, deposits increased $29.1 million, or 7%, to $463.3 million
from $434.1 million as of September 30, 2002.
"In this relatively low rate environment, we're pleased that our efforts
to grow deposits have been successful," said Thomas E. Bentel, president and
chief operating officer.
The improvement in interest expense was somewhat offset by a decrease in
interest income. Total interest income declined 13% to $9.9 million as of
December 31, 2002, compared with $11.4 million in 2001. Interest income from
loans receivable was $7.0 million for the quarter ended December 31, 2002,
compared with $8.3 million in 2001. Income from loans receivable fell
primarily as the result of a decline in the quarterly outstanding average
balances. High repayments during the first quarter of fiscal 2003 adversely
affected both volume and yield.
Net loans receivable at December 31, 2002 were $401.8 million, down from
$414.7 million, or 3%, from September 30, 2002. Demand for higher-yielding
loan products has remained strong, but did not offset continued high loan
repayments. New loans closed, including multi-family and commercial mortgages
and loans secured by commercial leases, totaled $33.0 million for the quarter
ended December 31, 2002. Loan repayments totaled $54.0 million for the
quarter ended December 31, 2002, compared with $42.6 million for the same
period in 2001.
Non-interest income declined to $693,000 for the quarter ended
December 31, 2002, from $985,000 in the year earlier period. In the quarter
ended December 31, 2001, the sale of $21.9 million in loans held for sale
resulted in a $541,000 pre-tax gain, compared with a $43,000 pre-tax gain for
the quarter ended December 31, 2002. Securities sales were $271,000 as of
December 31, 2002 compared with $72,000 in the prior year period. Insurance
and annuity commissions totaled $217,000 for the quarter, essentially
unchanged from $220,000 in 2001.
Non-interest expense was $2.6 million for the quarter ended December 31,
2002, compared with $2.8 million for the same period in 2001, down 6%.
Efforts to control expenses were reflected in the company's improved
efficiency ratio, which measured 45.83% for the quarter ended December 31,
2002 compared with 46.04% in 2001.
The company's asset quality remained excellent. At December 31, 2002, the
ratio of non-performing assets to total assets was 0.38%, compared with 0.39%
at September 30, 2002.
The company saw improvement in other measures in the first quarter. Book
value per share at December 31, 2002 was $18.75, compared with $18.17 at
September 30, 2002. The increase in book value per share was due to earnings
retained.
On December 17, 2002 Fidelity Bancorp, Inc. announced it has agreed to be
acquired by MAF Bancorp, Inc. (Nasdaq: MAFB) in an all-stock transaction.
Subject to regulatory approval and the approval of Fidelity shareholders, the
transaction is expected to close in mid-2003.
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 document (including information incorporated by reference) contains,
and future oral and written statements of the Company and its management may
contain, forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the financial
condition, results of operations, plans, objectives, future performance and
business of the Company. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of the Company's management and on
information currently available to management, are generally identifiable by
the use of words such as "believe," "expect," "anticipate," "plan," "intend,"
"estimate," "may," "will," "would," "could," "should" or other similar
expressions. Additionally, all statements in this document, including
forward-looking statements, speak only as of the date they are made, and the
Company undertakes no obligation to update any statement in light of new
information or future events.
A number of factors, many of which are beyond the ability of the Company
to control or predict, could cause actual results to differ materially from
those in its forward-looking statements. These factors include, among others,
the following: (i) the strength of the local and national economy; (ii) the
economic impact of past and any future terrorist attacks, acts of war or
threats thereof and the response of the United States to any such threats and
attacks; (iii) changes in state and federal laws, regulations and governmental
policies concerning the Company's general business; (iv) changes in interest
rates and prepayment rates of the Company's assets; (v) increased competition
in the financial services sector and the inability to attract new customers;
(vi) changes in technology and the ability to develop and maintain secure and
reliable electronic systems; (vii) the loss of key executives or employees;
(viii) changes in consumer spending; (ix) unexpected results of acquisitions;
(x) unexpected outcomes of existing or new litigation involving the Company;
and (xi) changes in accounting policies and practices. These risks and
uncertainties should be considered in evaluating forward-looking statements
and undue reliance should not be placed on such statements. Additional
information concerning the Company and its business, including additional
factors that could materially affect the Company's financial results, is
included in the Company's filings with the Securities and Exchange Commission.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)
Assets December 31,September 30,
2002 2002
Cash and due from banks $4,254 $3,828
Interest-earning deposits 107 1,045
Federal funds sold 100 100
Cash and cash equivalents 4,461 4,973
FHLB of Chicago stock, at cost 32,375 31,972
Mortgage-backed securities available for sale 253,916 216,505
Securities available for sale 28,444 22,396
Loans held for sale 167 83
Loans receivable, net of allowance for
loan losses of $1,917 at December 31, 2002
and $1,826 at September 30, 2002 401,788 414,685
Accrued interest receivable 3,847 3,637
Premises and equipment 3,559 3,410
Other assets 1,298 1,254
$729,855 698,915
Liabilities and Stockholders' Equity
Liabilities
Deposits 463,273 434,134
Borrowed funds 187,025 180,650
Advance payments by borrowers for taxes
and insurance 3,522 6,158
Due to broker 9,331 13,169
Other liabilities 8,725 8,813
Total liabilities 671,876 642,924
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 5,673,464 shares;
3,091,515 and 3,081,490 shares outstanding
at December 31, 2002 and September 30, 2002,
respectively 57 57
Additional paid-in capital 38,410 38,410
Retained earnings, substantially restricted 49,448 47,864
Treasury stock, at cost (2,581,949 and
2,591,974 shares at December 31, 2002 and
September 30, 2002, respectively) (30,808) (30,932)
Common stock acquired by Bank Recognition
and Retention Plans (138) (149)
Accumulated other comprehensive income 1,010 741
Total stockholders' equity 57,979 55,991
$729,855 698,915
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
(Dollars in thousands, except per share data)
Three Months Ended
December 31,
2002 2001
Interest Income:
Loans receivable $6,977 $8,270
Securities 882 916
Mortgage-backed securities 2,017 2,195
Other interest income 6 10
9,882 11,391
Interest Expense:
Deposits 2,930 3,822
Borrowed funds 1,970 2,535
4,900 6,357
Net interest income before provision
for loan losses 4,982 5,034
Provision for loan losses 94 140
Net interest income after provision
for loan losses 4,888 4,894
Non-interest Income:
Fees and commissions 153 143
Insurance and annuity commissions 217 220
Gain on sale of securities 271 72
Gain on sale of loans 43 541
Other 9 9
693 985
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,540 1,699
Office occupancy and equipment 367 370
Data processing 118 132
Advertising and promotions 182 158
Other 394 412
2,601 2,771
Income before income taxes 2,980 3,108
Income tax expense 1,088 1,163
Net income $1,892 $1,945
Earnings per share - basic $0.61 $0.64
Earnings per share - diluted $0.58 $0.61
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except per share data)
December 31, September 30,
2002 2002
Selected Financial Highlights:
Total assets $729,855 698,915
Interest-earning assets 716,897 686,786
Loans receivable, net 401,788 414,685
Deposits 463,273 434,134
Borrowed funds 187,025 180,650
Non-performing assets 2,804 2,738
Non-performing loans 2,391 2,333
Allowance for loan losses 1,917 1,826
Stockholders' equity 57,979 55,991
Book value per share 18.75 18.17
Shares outstanding - actual number 3,091,515 3,081,490
Asset Quality Ratios:
Non-performing loans to loans receivable, net 0.60% 0.56%
Non-performing loans to total assets 0.33% 0.33%
Non-performing assets to total assets 0.38% 0.39%
Allowance for loan losses to total
non-performing loans 80.18% 78.27%
Allowance for loan losses to loans
receivable, net 0.48% 0.44%
Three Months Ended December 31,
2002 2001
Selected Operating Activities (annualized):
Return on average assets 1.08% 1.16%
Return on average equity 13.27% 15.39%
Net interest rate spread during period 2.58% 2.65%
Net interest margin 2.90% 3.08%
Net interest income to non-interest expense 191.54% 181.67%
Efficiency ratio 45.83% 46.04%
Basic earnings per share (A) $0.61 $0.64
Diluted earnings per share (A) $0.58 $0.61
(A) Adjusted for the February 28, 2002 3-for-2 stock split which was
effected in the form of a stock dividend.
SOURCE Fidelity Bancorp, Inc.
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/107861.html
CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Elizabeth A. Doolan, Sr. Vice
President & CFO, of Fidelity Bancorp, Inc., +1-773-736-4414
|
