CHICAGO, April 17 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
second quarter earnings of $0.52 per diluted share for the period ended
March 31, 2000. The company also announced its board of directors declared a
quarterly dividend of $0.12 per share, payable May 15, 2000 to stockholders of
record as of April 28, 2000.
Compared with the year earlier period, earnings per diluted share were up
24 percent, or $0.10 per share. The increase in earnings per share was the
result of increased interest and non-interest income as well as fewer
shares outstanding. Net income for the quarter ended March 31, 2000 was
$1.1 million, up $134,000 or 13 percent from the second quarter of 1999.
For the first six months of the fiscal year, Fidelity reported earnings
per diluted share of $0.96, compared with $0.78 per diluted share in the first
six months of 1999. Earnings per share were up $0.18 per share, or 23
percent. Net income for the first six months increased by 19 percent, from
$1.9 million in 1999 to $2.3 million in 2000.
"Over the past year, our focus has shifted from asset growth to producing
higher returns on assets," said Raymond S. Stolarczyk, chairman and chief
executive officer. "Our efforts in this area and outstanding fee income
growth produced the earnings increase, despite pressure on the interest
margin."
Net loans receivable were $514.4 million at March 31, 2000, compared with
$458.6 million at March 31, 1999. While net loans receivable were up 12
percent, interest income from loans receivable was up 17 percent. For the six
months ended March 31, 2000, interest income from loans receivable was
$18.7 million, compared with $16.0 million for the same period in 1999.
Net interest income after provision for loan losses for the six months
ended March 31, 2000 was $7.9 million, compared with $7.5 million for the same
period in 1999. The significant increase in income from loans receivable was
offset by higher interest expense. Interest expense for the first six months
was $13.6 million, compared with $11.3 million in 1999. Higher interest
expense was primarily due to an increase in deposits, as well as an increase
in the cost of both borrowed funds and deposits.
Deposits increased to $376.8 million at March 31, 2000, from
$357.0 million at September 30, 1999, a 6 percent increase. Each of Fidelity
Federal Savings Bank's five offices added customer households and deposits
during the second quarter, and all now exceed at least $40 million in
deposits. Growth in deposits during the quarter enabled the bank to reduce
borrowed funds, which were $180.3 million at March 31, 2000, compared with
$186.2 million at September 30, 1999.
Non-interest income contributed strongly to the company's results. For
the six months ended March 31, 2000 non-interest income was $737,000, compared
with $479,000 for the same period in 1999. Commissions on insurance and
annuity sales were primarily responsible for the increase.
"Our success in growing fee income is largely due to the expansion of our
product line to meet the needs of our customer base, and greater productivity
from our licensed sales team," said Thomas E. Bentel, president and chief
operating officer. "Our sales efforts will be expanded with the opening of a
satellite office that will be devoted to non-FDIC insured products and other
fee-generating sales," he added.
Tightly controlled operating expenses also contributed to the company's
strong results. Non-interest expenses totaled $4.9 million at March 31, 2000,
up just $75,000 from the year earlier. The company's efficiency improved for
the first six months, with the ratio of operating expenses to average assets
falling to 1.66 percent from 1.83 percent in the prior year.
The company's return on average equity increased to 10.7 percent for the
six months ended March 31, 2000, compared with 8.39 percent for the same
period in 1999. The company's book value was $19.71 at March 31, 2000,
compared with $19.03 at September 30, 1999. There remain 72,000 shares of the
company's stock to be repurchased under a previously announced repurchase
program.
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; (6) changes in the
competitive environment for financial services organizations and the company's
ability to adapt to such changes; and (7) the company's ability and resources
to effect articulated business strategies and manage risks associated with the
Year 2000 issue.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
Dollars in thousands
Assets March 31, September 30,
2000 1999
Cash and due from banks $4,018 $2,714
Interest-earning deposits 671 576
Federal funds sold 100 100
FHLB of Chicago stock, at cost 9,782 9,615
Mortgage-backed securities held to
maturity, at amortized cost (approximate fair
value of $3,271 at March 31, 2000
and $3,637 September 30, 1999) 3,270 3,585
Investment securities available for sale,
at fair value 64,262 66,070
Loans receivable, net of allowance for loan
losses of $830 at March 31, 2000
and $780 at September 30, 1999 514,353 507,557
Accrued interest receivable 3,693 3,665
Real estate in foreclosure 131 --
Premises and equipment 4,101 4,202
Deposit base intangible 22 34
Other assets 1,192 1,163
$605,595 599,281
Liabilities and Stockholders' Equity
Liabilities
Deposits 376,809 357,016
Borrowed funds 180,325 186,250
Advance payments by borrowers for taxes
and insurance 3,175 7,986
Other liabilities 4,656 6,008
Total liabilities 564,965 557,260
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;
2,061,169 and 2,207,846 shares outstanding at
March 31, 2000 and September 30,
1999, respectively 38 38
Additional paid-in capital 38,789 38,690
Retained earnings, substantially restricted 35,532 33,771
Treasury stock, at cost (1,721,181 and 1,574,504
shares at March 31, 2000 and September
30, 1999, respectively) (30,760) (28,168)
Common stock acquired by Employee Stock
Ownership Plan (189) (632)
Common stock acquired by Bank Recognition
and Retention Plans (194) (198)
Accumulated other comprehensive income (2,586) (1,480)
Total stockholders' equity 40,630 42,021
$605,595 599,281
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,
2000 1999 2000 1999
Interest Income:
Loans receivable $9,449 8,112 18,739 16,049
Investment securities 1,296 1,239 2,618 2,369
Mortgage-backed securities 62 164 127 348
Interest-earning deposits 7 9 18 27
Federal funds sold 1 1 2 2
10,815 9,525 21,504 18,795
Interest Expense:
Deposits 4,231 3,622 8,297 7,487
Borrowed funds 2,690 2,058 5,302 3,833
6,921 5,680 13,599 11,320
Net interest income
before provision
for loan losses 3,894 3,845 7,905 7,475
Provision for loan losses 15 15 55 40
Net interest income
after provision
for loan losses 3,879 3,830 7,850 7,435
Non-interest Income:
Fees and commissions 107 94 209 190
Insurance and annuity
commissions 278 111 502 264
Other 14 12 26 25
399 217 737 479
Non-interest Expense:
General and administrative expenses:
Salaries and employee
benefits 1,409 1,440 2,834 2,861
Office occupancy and
equipment 399 394 757 759
Data processing 139 109 266 243
Advertising and
promotions 110 105 292 205
Federal deposit
insurance premiums 53 52 104 104
Other 351 343 679 680
Amortization of deposit
base intangible 6 8 12 17
2,467 2,451 4,944 4,869
Income before
income taxes 1,811 1,596 3,643 3,045
Income tax expense 683 602 1,382 1,142
Net income $1,128 994 $2,261 $1,903
Earnings per share
- basic $0.54 $0.45 $1.00 $0.83
Earnings per share
- diluted $0.52 $0.42 $0.96 $0.78
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
March 31, September 30,
2000 1999
Selected Financial Highlights:
Total assets $605,595 599,281
Interest-earning assets 592,438 587,503
Loans receivable, net 514,353 507,557
Deposits 376,809 357,016
Borrowed funds 180,325 186,250
Non-performing assets 677 343
Non-performing loans 546 343
Allowance for loan losses 830 780
Stockholders' equity 40,630 42,021
Book value per share 19.71 19.03
Shares outstanding - actual number 2,061,169 2,207,846
Asset Quality Ratios:
Non-performing loans to loans receivable, net 0.11% 0.07%
Non-performing loans to total assets 0.09% 0.06%
Non-performing assets to total assets 0.11% 0.06%
Allowance for loan losses to total
non-performing loans 152.01% 227.41%
Allowance for loan losses to loans
receivable, net 0.16% 0.15%
Three Month ended Six Months ended
March 31, March 31,
2000 1999 2000 1999
Selected Operating Activities (annualized):
Return on average
assets 0.75% 0.73% 0.76% 0.71%
Return on average
equity 10.83% 9.13% 10.73% 8.39%
Net interest rate spread
during period 2.25% 2.47% 2.29% 2.43%
Net interest margin 2.65% 2.90% 2.70% 2.89%
Net interest income to
non-interest
expense 157.84% 156.87% 159.89% 153.52%
Operating expenses to
average assets 1.65% 1.80% 1.66% 1.83%
Basic earnings
per share $0.54 $0.45 $1.00 $0.83
Diluted earnings
per share $0.52 $0.42 $0.96 $0.78
SOURCE Fidelity Bancorp, Inc.
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Related links:
http://www.fidelitybk.com
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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