CHICAGO, April 16 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
second quarter earnings of $0.50 per diluted share for the period ended
March 31, 2001. The company also announced its board of directors declared a
quarterly dividend of $0.12 per share, payable May 15, 2001 to stockholders of
record as of April 30, 2001.
Earnings per diluted share for the quarter ended March 31, 2001 were down
$0.02 per share, or 4%, from $0.52 per share for the same period in 2000. Net
income for the quarter ended March 31, 2001 was $1.0 million, compared with
$1.1 million for the same quarter in 2000, down 7%. Earnings per share and
net income for the quarter were down from the previous year's results due to
increased interest expense, despite increases in interest income and lower
non-interest expense.
For the first six months of the fiscal year, earnings per diluted share
were $0.91, down $0.11 per share from $1.02 per diluted share in the first six
months of 2000. Net income for the first six months of 2001 was $1.9 million,
compared with $2.3 million in 2000, down $349,000 or 15%.
"We are still feeling the impact of higher funding costs on both deposits
and borrowed funds even though the Federal Reserve cut interest rates twice
during our second quarter," said Raymond S. Stolarczyk, Chairman and Chief
Executive Officer. "But as a result of those rate cuts, we have replaced some
higher-cost funds with lower-rate deposits, easing the pressure on our
interest margin. In the meantime, attractive returns on new loans are also
contributing to improvements in our interest margin," he said.
Interest income from loans receivable for the six months ended March 31,
2001 was $20.3 million, up $1.6 million or 8% from $18.7 million in 2000. The
average yield on loans receivable increased from 7.40% for the six months
ended March 31, 2000 to 7.58% for the same period in 2001. During the second
quarter, reductions in interest rates sparked refinance activity, which
affected the company's volume of loans receivable. Net loans receivable at
March 31, 2001 were $520.4 million, down 3% or $13.6 million from
$534.0 million at September 30, 2000. Total interest income for the six
months ended March 31, 2001 was $23.6 million, up $2.1 million or 10% from
$21.5 million for the same period in 2000.
The increase in interest income was offset by higher interest expense.
Interest expense on deposits and borrowed funds for the six months ended
March 31, 2001 was $16.6 million, compared with $13.6 million for the same
period in 2000. Higher interest expense was primarily due to an increase in
deposits and an increase in first quarter funding costs as customers
transferred funds from savings accounts to higher-rate certificates of
deposit.
Deposits increased to $388.3 million at March 31, 2001, from
$381.4 million at September 30, 2000, a $6.9 million or 2% increase. Funds
received from deposit growth and loan repayments enabled the bank to reduce
borrowed funds by $10.8 million or 5% to $194.4 million at March 31, 2001.
Non-interest income for the six months ended March 31, 2001 was $897,000,
up $160,000 or 22% from $737,000 in 2000. During the first quarter of fiscal
2001, the bank sold its interest in a real estate investment and recorded a
$106,000 gain. The bank also recorded a $125,000 gain on the sale of
investments in the second quarter. Commissions from annuity and insurance
sales were down $99,000 or 20% to $403,000 for the six months ended March 31,
2001, from $502,000 for the same period in 2000. For the quarter, however,
sales commissions were down just $21,000 or 8% to $257,000 from $278,000 in
the second quarter of 2000.
"Investor uncertainty about the stock market, interest rates and the
presidential race had a significant impact on first-half annuity and insurance
sales," said Thomas E. Bentel, President and Chief Operating Officer.
"However, toward the latter part of the second quarter, we've seen some
settling of that uncertainty, and customer demand for these products is on the
upswing."
The company continued to benefit from tight expense controls, which
contributed to a decline in non-interest expense. General and administrative
expenses were $4.8 million for the six months ended March 31, 2001, down
$151,000 or 3% from $4.9 million in 2000. The company's efficiency improved
for the first six months, with the ratio of operating expenses to average
assets falling to 1.51% for the six months ended March 31, 2001, compared with
1.66% for the first half of the previous year.
The company's asset quality remained excellent. The ratio of
non-performing assets to total assets was 0.11% at March 31, 2001, compared
with 0.06% at September 30, 2000.
The company's book value per share was $22.58 at March 31, 2001, up from
$21.14 at September 30, 2000. There remain 7,800 shares of stock to be
repurchased under the company's current stock repurchase program, its 10th.
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 within 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; (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 March 31, September 30,
2001 2000
Cash and due from banks $9,132 $4,690
Interest-earning deposits 1,095 1,405
Federal funds sold 100 100
Cash and cash equivalents 10,327 6,195
FHLB of Chicago stock, at cost 10,695 10,065
Mortgage-backed securities held to maturity,
at amortized cost (approximate fair value of
$3,075 at March 31, 2001 and $3,202
September 30, 2000) 3,000 3,179
Investment securities available for sale,
at fair value 81,577 74,366
Loans receivable, net of allowance for loan
losses of $1,056 at March 31, 2001 and $950
at September 30, 2000 520,434 533,999
Loans held for sale 240 -
Accrued interest receivable 3,602 4,161
Real estate in foreclosure 11 3
Premises and equipment 3,901 3,925
Deposit base intangible 6 13
Other assets 5,442 1,125
$639,235 637,031
Liabilities and Stockholders' Equity
Liabilities
Deposits 388,325 381,433
Borrowed funds 194,350 205,150
Advance payments by borrowers for taxes
and insurance 3,253 2,198
Other liabilities 7,749 5,447
Total liabilities 593,677 594,228
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;
2,017,810 and 2,025,085 shares outstanding at
March 31, 2001 and September 30, 2000,
respectively 38 38
Additional paid-in capital 38,747 38,780
Retained earnings, substantially restricted 38,450 37,022
Treasury stock, at cost (1,764,540 and
1,757,265 shares at March 31, 2001 and
September 30, 2000, respectively) (31,541) (31,391)
Common stock acquired by Employee Stock
Ownership Plan - (189)
Common stock acquired by Bank Recognition
and Retention Plans (184) (191)
Accumulated other comprehensive income (loss) 48 (1,266)
Total stockholders' equity 45,558 42,803
$639,235 637,031
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Ended Six Months Ended
March 31, March 31,
2001 2000 2001 2000
Interest Income:
Loans receivable $10,059 9,449 20,293 18,739
Investment securities 1,527 1,296 3,159 2,618
Mortgage-backed
securities 53 62 106 127
Interest-earning
deposits 10 7 22 18
Federal funds sold 7 1 9 2
11,656 10,815 23,589 21,504
Interest Expense:
Deposits 4,962 4,231 9,977 8,297
Borrowed funds 3,121 2,690 6,659 5,302
8,083 6,921 16,636 13,599
Net interest income
before provision
for loan losses 3,573 3,894 6,953 7,905
Provision for loan
losses 40 15 110 55
Net interest income
after provision for
loan losses 3,533 3,879 6,843 7,850
Non-interest Income:
Fees and commissions 115 107 233 209
Insurance and annuity
commissions 257 278 403 502
Gain on sale of
investment
securities available
for sale 125 - 125 -
Other 15 14 136 26
512 399 897 737
Non-interest Expense:
General and
administrative
expenses:
Salaries and
employee benefits 1,393 1,409 2,804 2,834
Office occupancy
and equipment 379 399 753 757
Data processing 143 139 277 266
Advertising and
promotions 49 110 204 292
Other 387 404 748 783
Amortization of
deposit base
intangible 3 6 7 12
2,354 2,467 4,793 4,944
Income before income
taxes 1,691 1,811 2,947 3,643
Income tax expense 642 683 1,035 1,382
Net income $1,049 1,128 1,912 2,261
Earnings per share
- basic $0.52 0.54 0.95 1.06
Earnings per share
- diluted $0.50 0.52 0.91 1.02
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
March 31, Sept. 30,
2001 2000
Selected Financial Highlights:
Total assets $639,235 637,031
Interest-earning assets 617,141 623,114
Loans receivable, net 520,434 533,999
Deposits 388,325 381,433
Borrowed funds 194,350 205,150
Non-performing assets 691 382
Non-performing loans 680 379
Allowance for loan losses 1,056 950
Stockholders' equity 45,558 42,803
Book value per share 22.58 21.14
Shares outstanding - actual number 2,017,810 2,025,085
Asset Quality Ratios:
Non-performing loans to loans
receivable, net 0.13% 0.07%
Non-performing loans to total assets 0.11% 0.06%
Non-performing assets to total assets 0.11% 0.06%
Allowance for loan losses to total
non-performing loans 155.29% 250.66%
Allowance for loan losses to loans
receivable, net 0.20% 0.18%
Three Months ended Six Months ended
March 31, March 31,
2001 2000 2001 2000
Selected Operating
Activities (annualized):
Return on average
assets 0.66% 0.75% 0.60% 0.76%
Return on average
equity 9.29% 10.83% 8.61% 10.73%
Net interest rate
spread during period 1.81% 2.25% 1.76% 2.29%
Net interest margin 2.29% 2.65% 2.22% 2.70%
Net interest income
to non-interest
expense 151.78% 157.84% 145.07% 159.89%
Operating expenses
to average assets 1.49% 1.65% 1.51% 1.66%
Basic earnings per
share $0.52 $0.54 $0.95 $1.06
Diluted earnings
per share $0.50 $0.52 $0.91 $1.02
SOURCE Fidelity Bancorp, Inc.
 back to top
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, of Fidelity Bancorp, Inc., 773-736-4414
|
