CHICAGO, April 22 /PRNewswire-FirstCall/ --
Fidelity Bancorp, Inc. (Nasdaq: FBCI), the parent company of Fidelity Federal
Savings Bank, today reported fiscal second quarter earnings of $1.41 per
diluted share for the period ended March 31, 2003. The company also announced
its board of directors declared a quarterly dividend of $0.10 per share,
payable May 15, 2003 to stockholders of record as of April 30, 2003.
Earnings per diluted share for the quarter ended March 31, 2003 were up
$0.82 per share, or 139%, from $0.59 per share for the same period in 2002.
Net income for the quarter ended March 31, 2003 was $4.6 million, compared
with $1.9 million for the same quarter in 2002, up 145%. Earnings per share
and net income for the quarter were up from the previous year's results
primarily due to a $3.3 million pre-tax recovery of an investment that had
previously been charged off. The amount of the recovery represented a payment
equal to 110% of the original amount invested by the company; after taxes, it
totaled approximately $2.7 million as a result of using available capital loss
carry forwards.
For the first six months of the fiscal year, earnings per diluted share
were $2.00, up $0.80 per share from $1.20 per diluted share in the first six
months of 2002. Net income for the first six months of 2003 was $6.5 million,
up 70% from the net income reported for the same period in 2002. Increases in
earnings per share and net income in the first half of the year were also
primarily due to the recovery mentioned above.
"Obviously we were delighted with the recovery of the Reliance Acceptance
Group investment," said Raymond S. Stolarczyk, chairman and chief executive
officer. "Over a five-year period we actively sought recovery of the full
amount, and our persistence was rewarded with a full recovery, plus 10%."
The company's net interest margin declined to 2.85% for the six months
ended March 31, 2003 from 3.15% for the same period in 2002. Net interest
income, after provision for loan losses, was $9.8 million for the six months
ended March 31, 2003, down 2% or $178,000 from $10.0 million in 2002. A
decline in interest expense helped stabilize net interest income. Total
interest expense was $9.6 million for the six months ended March 31, 2003,
down 20% from $12.0 million for the same period in 2002.
Interest expense on borrowed funds declined 17%, to $3.9 million for the
six months ended March 31, 2003, from $4.6 million in 2002. Borrowed funds
increased by 7% to $194.0 million at March 31, 2003, compared with
$180.6 million at September 30, 2002.
For the six months ended March 31, 2003, interest expense on deposits was
$5.8 million, down $1.6 million or 21% from $7.4 million in 2002. Lower rates
on deposits in general and reduced rates paid on certificates of deposit
contributed to the decrease in deposit interest expense.
With continued volatility in the stock market, customers continued to seek
the security of Federally insured deposits. As a result, deposits increased
to $458.3 million at March 31, 2003, from $434.1 million at September 30,
2002, an increase of $24.2 million or 6%.
The low interest rate environment and ongoing mortgage refinance market
had a negative effect on interest income. Total interest income was
$19.6 million for the six months ended March 31, 2003, compared with
$22.2 million for the same period in 2002, down $2.6 million or 12%. Interest
income from loans receivable and mortgage-backed securities was $17.9 million
for the six months ended March 31, 2003, compared with $20.2 million in 2002.
In order to combat lower yields that have resulted from the current refinance
market, management has continued to take advantage of market opportunities,
engaging in the sale of mortgage-backed securities when yields are deemed
appropriate.
"Over the past several quarters, we have used securities sales to
counteract the effect of current repayment speeds," said Stolarczyk. "This
has been highly effective in the preservation of income from earning assets."
Loan repayments totaled $98.7 million for the six months ended March 31,
2003, compared with $92.9 million for the same period in 2002. Demand for
higher-yielding multi-family mortgages was strong, but did not offset loan
repayments. New loans closed, including multi-family and commercial mortgages
and loans secured by commercial leases, totaled $57.2 million for the six
months ended March 31, 2003. Net loans receivable at March 31, 2003 were
$380.9 million, down $33.8 million or 8%, from $414.7 million at September 30,
2002.
Non-interest income was $4.9 million for the six-month period ended March
31, 2003 compared with $1.7 million in the year earlier period. Included in
the increase was the $3.3 million recovery on a previously charged-off
investment. For the six months ended March 31, 2003, the gain on sales of
loans and securities totaled $815,000, compared with $961,000 for the same
period in 2002. Insurance and annuity commissions totaled $426,000 for the
first six months of 2003, essentially unchanged from $430,000 in 2002.
Non-interest expense was $5.3 million for the six months ended March 31,
2003, compared with $5.6 million for the same period in 2002, down 4%. The
ratio of operating expenses to average assets improved to 1.50% for the six
months ended March 31, 2003, compared with 1.68% in 2002.
The company's asset quality remained excellent. At March 31, 2003, the
company's ratio of non-performing assets to total assets was 0.37%, compared
with 0.39% at September 30, 2002.
Book value per share at March 31, 2003 was $19.50, compared with $18.17 at
September 30, 2002. The company also saw a significant improvement in return
on equity, as well as certain other measures. The company's return on average
equity increased to 22.1% for the six months ended March 31, 2003, compared
with 15.1% for the same period ended March 31, 2002.
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 terrorist activities and armed conflict; (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 March 31, September 30,
2003 2002
Cash and due from banks $4,291 3,828
Interest-earning deposits 656 1,045
Federal funds sold 100 100
Cash and cash equivalents 5,047 4,973
FHLB of Chicago stock, at cost 33,273 31,972
Mortgage-backed securities available for sale 271,634 216,505
Securities available for sale 22,932 22,396
Loans held for sale 82 83
Loans receivable, net of allowance for loan
losses of $2,015 at March 31, 2003 and
$1,826 at September 30, 2002 380,929 414,685
Accrued interest receivable 3,320 3,637
Premises and equipment 3,490 3,410
Due from broker 1,079 -
Other assets 1,413 1,254
$723,199 698,915
Liabilities and Stockholders' Equity
Liabilities
Deposits 458,325 434,134
Borrowed funds 194,000 180,650
Advance payments by borrowers for taxes
and insurance 2,161 6,158
Due to broker - 13,169
Other liabilities 7,098 8,813
Total liabilities 661,584 642,924
Stockholders' Equity
Preferred stock - -
Common stock 57 57
Additional paid-in capital 38,122 38,410
Retained earnings, substantially restricted 53,739 47,864
Treasury stock, at cost (30,328) (30,932)
Common stock acquired by Bank Recognition
and Retention Plans (127) (149)
Accumulated other comprehensive income 152 741
Total stockholders' equity 61,615 55,991
$723,199 698,915
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Six Months
Ended March 31, Ended March 31,
2003 2002 2003 2002
Interest Income:
Loans receivable $6,662 7,794 13,639 16,064
Securities 801 1,088 1,683 2,004
Mortgage-backed securities 2,286 1,950 4,303 4,145
Other interest income 4 8 10 18
9,753 10,840 19,635 22,231
Interest Expense:
Deposits 2,850 3,537 5,780 7,359
Borrowed funds 1,898 2,110 3,868 4,645
4,748 5,647 9,648 12,004
Net interest income before
provision for loan losses 5,005 5,193 9,987 10,227
Provision for loan losses 94 110 188 250
Net interest income after
provision for loan losses 4,911 5,083 9,799 9,977
Non-interest Income:
Fees and commissions 111 157 264 300
Insurance and annuity
commissions 209 210 426 430
Gain on sale of securities 483 223 754 295
Gain on sale of loans 18 125 61 666
Recovery of a previously
charged-off investment 3,324 - 3,324 -
Other 20 11 29 20
4,165 726 4,858 1,711
Non-interest Expense:
General and administrative
expenses:
Salaries and employee
benefits 1,656 1,576 3,196 3,275
Office occupancy and
equipment 401 506 768 876
Data processing 122 130 240 262
Advertising and promotions 132 156 314 314
Other 431 444 825 856
2,742 2,812 5,343 5,583
Income before income taxes 6,334 2,997 9,314 6,105
Income tax expense 1,727 1,119 2,815 2,282
Net income $4,607 $1,878 6,499 3,823
Earnings per share - basic $1.46 $0.61 2.08 1.25
Earnings per share - diluted $1.41 $0.59 2.00 1.20
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
March 31, September 30,
2003 2002
Selected Financial Highlights:
Total assets $723,199 698,915
Interest-earning assets 709,606 686,786
Loans receivable, net 380,929 414,685
Deposits 458,325 434,134
Borrowed funds 194,000 180,650
Non-performing assets 2,672 2,738
Non-performing loans 2,070 2,333
Allowance for loan losses 2,015 1,826
Stockholders' equity 61,615 55,991
Book value per share 19.50 18.17
Shares outstanding - actual number 3,159,553 3,081,490
Asset Quality Ratios:
Non-performing loans to loans receivable,
net 0.54% 0.56%
Non-performing loans to total assets 0.29% 0.33%
Non-performing assets to total assets 0.37% 0.39%
Allowance for loan losses to total
non-performing loans 97.34% 78.27%
Allowance for loan losses to loans
receivable, net 0.53% 0.44%
Three Months Six Months
Ended March 31, Ended March 31,
2003 2002 2003 2002
Selected Operating Activities
(annualized):
Return on average assets 2.53% 1.14% 1.82% 1.15%
Return on average equity 29.94% 14.90% 22.10% 15.14%
Net interest rate spread
during period 2.50% 2.85% 2.54% 2.75%
Net interest margin 2.80% 3.23% 2.85% 3.15%
Net interest income to
non-interest expense 182.53% 184.67% 186.92% 183.18%
Operating expenses to
average assets 1.51% 1.71% 1.50% 1.68%
Basic earnings per share $1.46 $0.61 $2.08 $1.25
Diluted earnings per share $1.41 $0.59 $2.00 $1.20
SOURCE Fidelity Bancorp, Inc.
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CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Elizabeth A. Doolan, Sr. Vice
President & CFO, all of Fidelity Bancorp, Inc., +1-773-736-4414
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