CHICAGO, April 19 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported second
quarter earnings of $0.42 per diluted share for the period ended March 31,
1999. The company also announced its board of directors declared a quarterly
dividend of $0.11 per share, payable May 14, 1999 to stockholders of record as
of April 30, 1999.
Earnings were up $0.08 per diluted share, or 23.5 percent, for the quarter
ended March 31, 1999, from $0.34 per diluted share for the same period in
1998. Earnings per diluted share for the quarter increased primarily as a
result of increased net interest income from a greater number of loans
receivable and a smaller number of shares outstanding. Net income for the
quarter ended March 31, 1999 was $994,000, compared with $960,000 for the same
period in 1998, an increase of 3.5 percent.
For the first six months of the fiscal year, Fidelity reported earnings
per diluted share of $0.78, compared with $0.68 per diluted share in the first
six months of 1998, an increase of $0.10 per share, or 14.7 percent. Net
income for the first six months was $1.9 million, flat compared with 1998's
results.
For the six months ended March 31, 1999, loans receivable increased
$33.0 million to $458.6 million, from $425.6 million at September 30, 1998.
During the first six months, principal repayments continued to be higher
than usual, totaling $69.5 million. However, new loan production more than
offset the repayments; total loans closed in the first six months reached
$102.7 million. Compared with the same period in 1998, loan originations for
the first six months of 1999 were up $45.0 million or 78.2 percent.
Net interest income after provision for loan losses was $7.4 million for
the first six months of the year, up 4.9 percent from $7.1 million for the
same period in 1998. Greater interest income from loans receivable
contributed to the increase in net interest income.
"In the first six months of this year, we have demonstrated that we are
on track with our earning assets, growing them at a good pace," said Raymond
S. Stolarczyk. "Our loan production has been very strong this year, and the
quality of our loan portfolio remains excellent. This has contributed to the
increase in earnings per share."
The quality of the bank's loan portfolio was reflected in its asset
quality ratios. The ratio of non-performing assets to total assets was
0.07 percent at March 31, 1999, compared with 0.19 percent at September 30,
1998.
Deposits remained stable, at $334.9 million at March 31, 1999, up slightly
from $330.7 million at September 30, 1998. Interest expense on deposits was
$7.5 million for the six months ended March 31, 1999, down 7.4 percent from
the same period in 1998. Interest expense on borrowed funds was up, due to an
increase in borrowed funds. Additional borrowings were necessary as the
result of significant new loan growth.
"We continue to look for low-cost sources to fund our new loans," said
Thomas E. Bentel, president and chief operating officer. "While we remain
committed to growing retail deposit relationships, we turn to the wholesale
markets when customer deposits don't meet our funding needs."
While salaries and employee benefits held steady, general and
administrative expenses were up for the first six months of 1999.
Non-interest expenses were $4.9 million for the first six months of 1999,
compared with $4.6 million in 1998. The increase primarily was due to
increased depreciation expenses relating to the bank's new computer
hardware and software, which were upgraded in 1998. Despite the increase in
non-interest expenses, the ratio of operating expenses to average assets
was 1.83 percent for the six months ended March 31, 1999, improved from
1.87 percent for the same period in 1998.
On November 18, 1998, the company announced a plan to repurchase up to
240,000 shares, or ten percent of its common stock. Up to 64,600 shares may
be repurchased in the current program, the company's ninth. The company's
board of directors views stock repurchases as a capital strategy for building
stockholder value.
Return on equity for the six months ended March 31, 1999 was 8.4 percent,
compared with 7.5 percent for the same period in 1998.
"We are pleased that return on equity was measurably improved in the first
half of the year," Stolarczyk said. "Our loan growth and increases in
earnings per share and ROE reflect positive trends for Fidelity's long-term
performance," he said.
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 (unaudited)
Dollars in thousands
March 31, September 30,
1999 1998
Assets
Cash and due from banks $1,994 $1,320
Interest-earning deposits 220 555
Federal funds sold 100 100
FHLB of Chicago stock, at cost 8,460 6,510
Mortgage-backed securities held to maturity,
at amortized cost (approximate fair value of
$8,901 at March 31, 1999 and $11,513
September 30, 1998) 8,783 11,177
Investment securities available for sale,
at fair value 67,849 58,979
Loans receivable, net of allowance for
loan losses of $654 at
March 31, 1999 and $591 September 30, 1998 458,644 425,608
Accrued interest receivable 3,486 3,547
Real estate in foreclosure 259 131
Premises and equipment 4,279 4,401
Deposit base intangible 49 66
Other assets 1,104 1,169
$555,227 513,563
Liabilities and Stockholders' Equity
Liabilities
Deposits 334,906 330,670
Borrowed funds 169,200 121,400
Advance payments by borrowers for
taxes and insurance 2,893 6,919
Other liabilities 5,775 5,977
Total liabilities 512,774 464,966
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;
2,268,746 and 2,589,784 shares outstanding at
March 31, 1999 and September 30, 1998,
respectively 38 38
Additional paid-in capital 38,313 38,117
Retained earnings, substantially restricted 32,035 30,646
Treasury stock, at cost (1,513,604 and
1,192,566 shares at March 31, 1999 and
September 30, 1998, respectively) (26,739) (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 (356) 340
Total stockholders' equity 42,453 48,597
$555,227 513,563
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings (unaudited)
Dollars in thousands (except for earnings per share)
Three Months Ended Six Months Ended
March 31, March 31,
1999 1998 1999 1998
Interest Income:
Loans receivable $8,112 7,425 16,049 14,901
Investment securities 1,239 1,206 2,369 2,487
Mortgage-backed securities 164 272 348 561
Interest-earning deposits 9 18 27 46
Federal funds sold 1 2 2 12
Investment in dollar-denominated
mutual funds -- -- -- 17
9,525 8,923 18,795 18,024
Interest Expense:
Deposits 3,622 3,977 7,487 8,087
Borrowed funds 2,058 1,327 3,833 2,785
5,680 5,304 11,320 10,872
Net interest income before
provision for loan losses 3,845 3,619 7,475 7,152
Provision for loan losses 15 15 40 61
Net interest income after
provision for loan losses 3,830 3,604 7,435 7,091
Fees and commissions 94 79 190 169
Insurance and annuity commissions 111 156 264 336
Other 12 15 25 29
217 250 479 534
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,440 1,466 2,861 2,807
Office occupancy and equipment 394 307 759 598
Data processing 109 125 243 252
Advertising and promotions 105 40 205 152
Federal deposit insurance premiums 52 55 104 109
Other 343 350 680 634
Amortization of deposit
base intangible 8 11 17 22
2,451 2,354 4,869 4,574
Income before income tax expense 1,596 1,500 3,045 3,051
Income tax expense 602 540 1,142 1,114
Net income $994 960 1,903 1,937
Earnings per share -- basic $0.45 0.36 0.83 0.72
Earnings per share -- diluted $0.42 0.34 0.78 0.68
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
March 31, September 30,
1999 1998
Selected Financial Highlights:
Total assets $555,227 513,563
Interest-earning assets 544,056 502,929
Loans receivable, net (a) 458,644 425,608
Deposits 334,906 330,670
Borrowed funds 169,200 121,400
Non-performing assets 387 962
Non-performing loans 128 831
Allowance for loan losses 654 591
Stockholders' equity 42,453 48,597
Book value per share 18.71 18.76
Shares outstanding -- actual number 2,268,746 2,589,784
Asset Quality Ratios:
Non-performing loans to loans receivable, net (b) 0.03% 0.20%
Non-performing loans to total assets (b) 0.02% 0.16%
Non-performing assets to total assets (b) 0.07% 0.19%
Allowance for loan losses to total
non-performing loans (b) 510.94% 71.12%
Allowance for loan losses to loans
receivable, net 0.14% 0.14%
Three Months ended Six Months ended
March 31, March 31,
1999 1998 1999 1998
Selected Operating Activities
(annualized):
Return on average assets 0.73% 0.79% 0.71% 0.79%
Return on average equity 9.1% 7.3% 8.4% 7.5%
Net interest rate spread
during period 2.47% 2.44% 2.43% 2.39%
Net interest margin 2.90% 3.05% 2.89% 2.99%
Net interest income to
operating expenses 157% 154% 153% 156%
Operating expenses to average assets1.80% 1.93% 1.83% 1.87%
Basic earnings per share $0.45 $0.36 $0.83 $0.72
Diluted earnings per share $0.42 $0.34 $0.78 $0.68
(a) The loans receivable portfolio includes $0 and $30,000 of Bennett
Funding Group commercial equipment leases at March 31, 1999 and
September 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, or
Thomas E. Bentel, President & COO, or Jim Kinney, Sr. VP & CFO,
of Fidelity Bancorp, Inc., 773-736-4414
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