CHICAGO, April 20 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
of $960,000 or $0.34 per diluted share for the second quarter ended March 31,
1998. The company also announced that its board of directors declared a
quarterly dividend of $0.10 per share, payable May 15, 1998 to shareholders of
record as of April 30, 1998.
Compared with second quarter earnings in 1997, when net income was
$997,000 or $0.36 per diluted share, earnings per share were down $0.02 or
5.6 percent. The decrease in earnings was due in part to a slight decrease in
insurance and annuity commissions. During the quarter, business development
activity by the INVEST representatives was curtailed due to a systems
conversion by INVEST which required representatives to provide a greater than
usual amount of service on the accounts of existing customers. In addition,
earnings for the quarter were affected by a decrease in the company's net
interest margin caused by compression in the yield curve.
For the first six months of the fiscal year, Fidelity reported net income
totaling $1.9 million or $0.68 per diluted share. Earnings per share were up
3.0 percent compared with the year earlier period, when net income was
$1.8 million or $0.66 per diluted share. The increase in net income for the
first half of the year was primarily the result of a decrease in general and
administrative expenses.
For the six months ended March 31, 1998 loans receivable increased
$1.6 million to $389.8 million from $388.3 million at September 30, 1997,
despite record loan principal repayments of $55.6 million. Production of new
loans during the first six months was $57.6 million, an increase of
32.0 percent or $14 million from the year earlier period.
Interest income was $18.0 million for the six months ended March 31, 1998,
compared with $17.8 million in 1997, an increase of 1.0 percent. Higher
income from loans receivable contributed to the increase.
"I am pleased that our mortgage delivery system has helped us meet the
challenges presented by a sharp increase in mortgage refinance activity and
repayments of principal," said Raymond S. Stolarczyk, chairman and chief
executive officer. "Despite dramatically increased repayments, we have had an
increase in loans receivable for the first six months of the year. The
strength of our delivery system is evident," he said.
Deposits increased by $7.0 million during the six months ended March 31,
1998, totaling $330.4 million, compared with $323.4 million at September 30,
1997. Borrowed funds decreased $20.7 million to $92.7 million at March 31,
1998. Interest expense was $10.9 million for the period, up slightly from
$10.6 million in 1997.
"The challenge of attracting deposits and sustaining growth at acceptable
costs has not diminished for us," said Thomas E. Bentel, president and chief
operating officer. "However, nearly all of our growth has been in transaction
accounts, with a sizable number of certificate of deposit dollars being
replaced with lower cost funds."
For the six month period ended March 31, 1998, non-interest income was
$534,000, compared with $520,000 in 1997, despite the second quarter decline
in commissions from insurance and annuity sales.
The ratio of operating expenses to average assets for the six month period
showed continued improvement, falling to 1.87 percent compared with
1.98 percent in 1997. This reflects a continued focus on expense control.
The ratio of non-performing assets to total assets also improved, an indicator
of the company's excellent asset quality.
"We expect the strong loan demand that we have seen over the last several
quarters to continue into the third quarter," said Stolarczyk. "The volume of
mortgage applications we have taken in the past three months has resulted in a
full pipeline, and we expect the majority of these loans to close this quarter
at attractive yields," 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 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
visit 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
March 31, September 30,
1998 1997
(unaudited)
Assets
Cash and due from banks $1,791 436
Interest-earning deposits 1,038 2,314
Federal funds sold 100 100
Investment in dollar-denominated
mutual funds, at fair value -- 3,154
FHLB of Chicago stock 5,700 5,700
Mortgage-backed securities held to
maturity, at amortized cost
(approximate fair value of $15,104
at March 31, 1998 and $17,124 at
September 30, 1997) 14,902 16,875
Investment securities available for
sale, at fair value 62,006 70,297
Loans receivable, net of allowance
for loan losses of $468 at March 31,
1998 and $460 at September 30, 1997 389,844 388,262
Accrued interest receivable 3,130 3,445
Real estate in foreclosure 671 215
Premises and equipment 3,931 3,593
Deposit base intangible 85 107
Other assets 1,142 1,136
$484,340 495,634
Liabilities and Stockholders' Equity
Liabilities
Deposits 330,445 323,443
Borrowed funds 92,700 113,400
Advance payments by borrowers
for taxes and insurance 2,808 2,197
Other liabilities 6,143 6,977
Total liabilities 432,096 446,017
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 and outstanding
2,821,530 and 2,794,978 shares at
March 31, 1998 and September 30, 1997,
respectively 38 38
Additional paid-in capital 37,725 37,494
Retained earnings, substantially
restricted 29,370 27,939
Treasury stock, at cost (960,820 and
987,372 shares at March 31, 1998 and
September 30, 1997, respectively) (13,483) (13,855)
Common stock acquired by Employee
Stock Ownership Plan (1,092) (1,662)
Common stock acquired by Bank
Recognition and Retention Plans (340) (471)
Unrealized gain on investment
securities available for sale,
less applicable taxes 26 134
Total stockholders' equity 52,244 49,617
$484,340 495,634
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months ended Six Months ended
Mar. 31, Mar. 31,
1998 1997 1998 1997
(unaudited)
Interest Income:
Loans receivable $7,425 7,064 14,901 14,030
Investment securities 1,206 1,470 2,487 2,975
Mortgage-backed
securities 272 359 561 735
Interest-earning deposits 18 9 46 19
Federal funds sold 2 2 12 5
Investment in mutual funds -- 40 17 82
8,923 8,944 18,024 17,846
Interest Expense:
Deposits 3,977 3,924 8,087 7,798
Borrowed funds 1,327 1,305 2,785 2,777
5,304 5,229 10,872 10,575
Net interest income before
provision for loan
losses 3,619 3,715 7,152 7,271
Provision for loan losses 15 -- 61 39
Net interest income after
provision for loan
losses 3,604 3,715 7,091 7,232
Non-Interest Income:
Fees and commissions 79 90 169 202
Insurance and annuity
commissions 156 189 336 290
Other 15 16 29 28
250 295 534 520
Non-Interest Expense:
General and administrative expenses:
Salaries and employee
benefits 1,466 1,394 2,807 2,673
Office occupancy and
equipment 307 302 598 598
Data processing 125 127 252 241
Advertising and
promotions 40 173 152 338
Federal deposit
insurance premiums 55 50 109 208
Other 350 335 634 699
Total general and
administrative expenses 2,343 2,381 4,552 4,757
Amortization of intangible 11 14 22 28
2,354 2,395 4,574 4,785
Income before income
taxes 1,500 1,615 3,051 2,967
Income tax expense 540 618 1,114 1,136
Net income $960 997 1,937 1,831
Earnings per share
- basic $0.36 0.38 0.72 0.70
Earnings per share
- diluted $0.34 0.36 0.68 0.66
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights
Dollars in thousands (except for book value and earnings per share)
March 31, 1998 Sept. 30, 1997
(unaudited)
Selected Financial Highlights:
Total assets $484,340 495,634
Interest-earning assets 473,590 486,702
Loans receivable, net (a) 389,844 388,262
Deposits 330,445 323,443
Borrowed funds 92,700 113,400
Non-performing assets 1,384 2,023
Non-performing loans 713 1,808
Allowance for loan losses 468 460
Stockholders' equity 52,244 49,617
Book value per share outstanding 18.52 17.75
Shares outstanding
- actual number 2,821,530 2,794,978
Asset Quality Ratios:
Non-performing loans to loans
receivable, net (b) 0.18% 0.47%
Non-performing loans to total
assets (b) 0.15% 0.36%
Non-performing assets to total
assets (b) 0.29% 0.41%
Allowance for loan losses to
total non-performing loans (b) 65.6% 25.4%
Allowance for loan losses to
loans receivable, net 0.12% 0.12%
Three Months ended Six Months ended
March 31, March 31,
1998 1997 1998 1997
(unaudited)
Selected Operating Activities (annualized):
Return on average assets 0.79% 0.82% 0.79% 0.76%
Return on average equity 7.3% 7.9% 7.5% 7.4%
Net interest rate spread
during period 2.44% 2.56% 2.39% 2.52%
Net interest margin 3.05% 3.14% 2.99% 3.09%
Net interest income to
operating expense 154% 155% 156% 152%
Operating expenses to
average assets 1.93% 1.98% 1.87% 1.98%
Basic earnings per share $0.36 $0.38 $0.72 $0.70
Diluted earnings per share $0.34 $0.36 $0.68 $0.66
(a) The loans receivable portfolio includes $177,000 and $408,000 of
Bennett Funding Group commercial equipment leases at March 31, 1998 and
September 30, 1997, respectively.
(b) The non-performing loans include Bennett Funding Group commercial
equipment leases.
SOURCE Fidelity Bancorp, Inc.
 back to top
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 107861
CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or, Jim Kinney, Sr. VP & CFO,
773-736-4414, all of Fidelity Bancorp, Inc.
|
