CHICAGO, July 16 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
third quarter earnings of $0.52 per diluted share for the period ended June
30, 2001. The company also announced its board of directors declared a
quarterly dividend of $0.12 per share, payable August 15, 2001 to stockholders
of record as of July 31, 2001.
Compared with the year earlier period, earnings per diluted share for the
quarter were up $0.04, or 8%, from $0.48. Net income for the quarter ended
June 30, 2001 was $1.09 million, compared with $1.01 million for the same
period in 2000, an increase of 8%.
The increases in earnings per share and net income were the result of
increased interest income, income from the sale of investments and lower
non-interest expense.
For the first nine months of the fiscal year, earnings per diluted share
were $1.42, compared with $1.50 for the nine-month period in 2000. Earnings
per diluted share were down $0.08 per share, or 5%. Net income for the nine
months ended June 30, 2001 was $3.0 million, compared with $3.3 million in
2000, a decrease of $268,000 or 8%. Improvements in interest income,
non-interest expense and non-interest income were offset by higher interest
expense on deposits and borrowed funds, resulting in the decline in earnings
per share and net income.
"We are encouraged by our third quarter results," said Raymond S.
Stolarczyk, chairman and chief executive officer. "The net interest margin
has improved since the second quarter and we expect to see further improvement
as maturing certificates of deposit roll off or renew at a lower cost."
Interest income from loans receivable was $29.8 million for the nine
months ended June 30, 2001 compared with $28.4 million a year earlier, up
$1.4 million or 5%. Loans receivable, net of allowance for loan losses,
declined 4% to $513.6 million at June 30, 2001, from $534.3 at September 30,
2000, the result of repayments from substantial refinance activity.
"It's significant that interest income from loans rose," said Stolarczyk.
"That's the result of our emphasis on adding assets that both yield a higher
return and fit our standard for asset quality."
The increase in income from loans receivable produced by higher-yielding
earning assets was offset by higher interest expense. Interest expense on
deposits for the nine months ended June 30, 2001 was $14.7 million, compared
with $13.0 million in 2000. Interest expense on deposits was up due to an
increased volume of certificates of deposits at higher rates. Interest
expense on borrowed funds also increased, to $9.5 million for the nine months
ended June 30, 2001, from $8.1 million for the same period in 2000 due to
increased borrowings at a higher rate. At June 30, 2001, deposits were
$389.2 million, up $7.7 million or 2% from $381.4 million at September 30,
2000. Borrowed funds were reduced by $14.9 million and were $190.3 million at
June 30, 2001.
"Interest rates have fallen significantly over the past three quarters,
and we are just now beginning to realize the benefits," said Thomas E. Bentel,
president and chief operating officer. "Even in the face of falling rates
we've successfully retained core customer relationships, resulting in stable
deposits."
Non-interest income for the nine months ended June 30, 2001 was
$1.3 million, up $189,000 or 16% from $1.2 million in 2000. During the first
quarter of fiscal 2001, the company realized a $106,000 gain from the sale of
a real estate investment. The company also recorded a gain of $202,000 on the
sale of investments during the second and third quarters. Commissions from
annuity and insurance sales were down $146,000 or 19% to $625,000 for the nine
months ended June 30, 2001, from $771,000 in the year earlier period.
Expense controls resulted in a 3% decline in non-interest expense, to
$7.1 million for the nine months ended June 30, 2001, from $7.3 million in the
year earlier period. As a result, the ratio of operating expenses to average
assets improved to 1.5% from 1.6% one year earlier.
In April 2001, the company completed its 10th stock repurchase program. A
total of 220,000 shares were repurchased at an average price of $17.91 per
share. The repurchase of shares and increases in net income have led to
steady increases in the company's book value per share. Book value per share
at June 30, 2001 was $22.87, compared to $21.14 at September 30, 2000.
The company will host a telephone conference call to discuss the quarter's
results on Tuesday, July 17, 2001 at 2:30 p.m. (CST). To participate in the
call, dial 1 (800) 491-4331 and reference I.D 1123184.
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 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. For additional
information about these factors, please review our filings with the Securities
and Exchange Commissions.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
Dollars in thousands (except per share data)
Assets June 30, September 30,
2001 2000
Cash and due from banks $5,529 $4,690
Interest-earning deposits 244 1,405
Federal funds sold 100 100
Cash and cash equivalents 5,873 6,195
FHLB of Chicago stock, at cost 10,879 10,065
Mortgage-backed securities held to maturity,
at amortized cost - 2,901
Mortgage-backed securities available for sale,
at fair value 29,489 -
Investment securities available for sale, at
fair value 71,010 74,366
Loans receivable, net of allowance for loan
losses of $1,120 at June 30, 2001 and $950 at
September 30, 2000 513,597 534,277
Loans held for sale 235 -
Accrued interest receivable 3,696 4,161
Real estate in foreclosure - 3
Premises and equipment 3,940 3,925
Deposit base intangible 4 13
Other assets 435 1,125
$639,158 637,031
Liabilities and Stockholders' Equity
Liabilities
Deposits 389,153 381,433
Borrowed funds 190,260 205,150
Advance payments by borrowers for taxes and
insurance 5,608 2,198
Other liabilities 8,076 5,447
Total liabilities 593,097 594,228
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;
2,014,110 and 2,025,085 shares outstanding at
June 30, 2001 and September 30, 2000,
respectively 38 38
Additional paid-in capital 38,729 38,780
Retained earnings, substantially restricted 39,295 37,022
Treasury stock, at cost (1,768,240 and
1,757,265 shares at June 30, 2001 and
September 30, 2000, respectively) (31,636) (31,391)
Common stock acquired by Employee Stock
Ownership Plan - (189)
Common stock acquired by Bank Recognition and
Retention Plans (181) (191)
Accumulated other comprehensive loss (184) (1,266)
Total stockholders' equity 46,061 42,803
$639,158 637,031
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Ended Nine Months Ended
June 30, June 30,
2001 2000 2001 2000
Interest Income:
Loans receivable $9,532 9,645 29,825 28,384
Investment securities 1,385 1,304 4,544 3,922
Mortgage-backed
securities 251 57 357 184
Interest-earning
deposits 15 12 37 30
Federal funds sold 2 2 11 4
11,185 11,020 34,774 32,524
Interest Expense:
Deposits 4,760 4,657 14,737 12,954
Borrowed funds 2,808 2,775 9,467 8,077
7,568 7,432 24,204 21,031
Net interest income
before provision for
loan losses 3,617 3,588 10,570 11,493
Provision for loan
losses 70 55 180 110
Net interest income
after provision for
loan losses 3,547 3,533 10,390 11,383
Non-interest Income:
Fees and commissions 118 130 351 339
Insurance and annuity
commissions 222 269 625 771
Gain on sale of
investment securities 77 - 202 -
Other 27 16 163 42
444 415 1,341 1,152
Non-interest Expense:
General and
administrative
expenses:
Salaries and
employee benefits 1,299 1,269 4,103 4,103
Office occupancy
and equipment 392 387 1,145 1,144
Data processing 98 128 375 394
Advertising and
promotions 123 177 327 469
Other 343 390 1,091 1,173
Amortization of deposit
base intangible 2 5 9 17
2,257 2,356 7,050 7,300
Income before income
taxes 1,734 1,592 4,681 5,235
Income tax expense 647 586 1,682 1,968
Net income $1,087 1,006 2,999 3,267
Earnings per share
- basic $0.54 0.49 1.49 1.56
Earnings per share
- diluted $0.52 0.48 1.42 1.50
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book
value and earnings per share)
June 30, September 30,
2001 2000
Selected Financial Highlights:
Total assets $639,158 637,031
Interest-earning assets 625,210 623,114
Loans receivable, net 513,597 533,999
Deposits 389,153 381,433
Borrowed funds 190,260 205,150
Non-performing assets 890 382
Non-performing loans 890 379
Allowance for loan losses 1,120 950
Stockholders' equity 46,061 42,803
Book value per share 22.87 21.14
Shares outstanding - actual number 2,014,110 2,025,085
Asset Quality Ratios:
Non-performing loans to loans
receivable, net 0.17% 0.07%
Non-performing loans to total assets 0.14% 0.06%
Non-performing assets to total assets 0.14% 0.06%
Allowance for loan losses to total
non-performing loans 125.84% 250.66%
Allowance for loan losses to loans
receivable, net 0.22% 0.18%
Three Months ended Nine Months ended
June 30, June 30,
2001 2000 2001 2000
Selected Operating
Activities
(annualized):
Return on average
assets 0.70% 0.66% 0.63% 0.73%
Return on average
equity 9.37% 9.75% 8.87% 10.40%
Net interest rate
spread during period 1.89% 1.99% 1.80% 2.19%
Net interest margin 2.37% 2.41% 2.27% 2.60%
Net interest income
to non-interest
expense 160.26% 152.29% 149.93% 157.44%
Operating expenses
to average assets 1.45% 1.55% 1.49% 1.62%
Basic earnings per
share $0.54 $0.49 $1.49 $1.56
Diluted earnings
per share $0.52 $0.48 $1.42 $1.50
SOURCE Fidelity Bancorp, Inc.
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Company News On-Call:
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CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Elizabeth A. Doolan, Vice
President & CFO, +1-773-736-4414, all of Fidelity Bancorp, Inc.
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