CHICAGO, July 17 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported fiscal
third quarter earnings of $0.48 per diluted share for the period ended June
30, 2000. The company also announced its board of directors declared a
quarterly dividend of $0.12 per share, payable August 15, 2000 to stockholders
of record as of July 31, 2000.
Compared with the year earlier period, earnings per diluted share for the
quarter were unchanged. Net income for the quarter ended June 30, 2000 was
$1.0 million, compared with $1.1 million for the third quarter of 1999.
Earnings per share and net income were affected by the Federal Reserve's
interest rate increases, which resulted in higher interest expense. In
addition, the company took action to improve its interest rate sensitivity by
lengthening the maturity on $75 million in Federal Home Loan Bank advances.
This action resulted in higher interest expense on borrowed funds.
For the first nine months of the fiscal year, Fidelity reported earnings
per diluted share of $1.50 per share, compared with $1.26 per share for the
nine-month period in 1999. Earnings per diluted share were up $0.24 per
share, or 19 percent. Net income for the nine months ended June 30, 2000 was
$3.3 million, compared with $3.0 million in 1999, an increase of $254,000 or 8
percent. Tightly controlled non-interest expenses and improvements in
non-interest income contributed to improvements in net income and earnings per
share.
Interest income from loans receivable was $28.4 million for the nine
months ended June 30, 2000, compared with $24.6 million a year earlier, up
$3.7 million or 15 percent. In the nine-month period, loans receivable, net
of allowance for loan losses, grew 3 percent from $507.6 million at September
30, 1999 to $522.0 million at June 30, 2000.
"Our loan portfolio has grown just marginally, and yet interest income is
up substantially," said Raymond S. Stolarczyk, chairman and chief executive
officer. "That's the result of a change in our strategy -- from increasing
the volume of earning assets to increasing the yield, without compromising
asset quality. Our nine-month earnings and asset quality ratios reflect our
success in this effort."
Net interest income after provision for loan losses for the nine months
ended June 30, 2000 was $11.4 million, unchanged from the previous year. 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, 2000 was $13.0 million, compared with
$11.2 million in 1999. Interest expense on borrowed funds also increased, to
$8.1 million as of June 30, 2000, from $6.1 million for the same period in
1999 due to higher interest rates and larger average balances.
Interest expense on deposits increased due to a combination of higher
interest rates and deposit growth. At June 30, 2000, deposits were
$395.1 million, up $38.1 million or 11 percent from $357.0 million at
September 30, 1999. Borrowed funds were reduced by $20.6 million with a
portion of the new deposits and ended the nine-month period at $165.7 million.
Non-interest income, primarily from insurance and annuity commissions, was
up significantly in the nine-month period. Non-interest income grew
37 percent to $1.2 million as of June 30, 2000 from $839,000 for the same
period in 1999.
At the same time, non-interest expense declined. For the nine months
ended June 30, 2000, non-interest expense was $7.3 million, compared with
$7.4 million in 1999. As a result, the ratio of operating expenses to average
assets improved to 1.6 percent for the nine months ended June 30, 2000, from
1.8 percent one year earlier.
"Our ability to increase fee income from product sales while at the same
time reducing expenses is indicative of an ever-improving sales group and the
hard work of a dedicated operations team," said Thomas E. Bentel, president
and chief operating officer.
The company's board of directors and management team are committed to
using stock repurchase programs to help build value for stockholders. The
company may repurchase up to 28,800 shares of stock in the current repurchase
program, its 10th. The repurchase of shares and increases in net income have
led to increases in the company's book value per share. Book value per share
at June 30, 2000 was $19.97 per share, compared with $19.03 at September 30,
1999.
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; and
(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 Commission.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
Dollars in thousands (except per share data)
Assets June 30, September 30,
2000 1999
Cash and due from banks $2,490 $2,714
Interest-earning deposits 2,819 576
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 $3,209 June 30, 2000
and $3,637 September 30, 1999) 3,207 3,585
Investment securities available for sale,
at fair value 63,828 66,070
Loans receivable, net of allowance for loan
losses of $845 at June 30, 2000 and
$780 at September 30, 1999 521,977 507,557
Accrued interest receivable 3,030 3,665
Real estate in foreclosure 49 --
Premises and equipment 4,018 4,202
Deposit base intangible 17 34
Other assets 1,235 1,163
$612,552 599,281
Liabilities and Stockholders' Equity
Liabilities
Deposits 395,147 357,016
Borrowed funds 165,650 186,250
Advance payments by borrowers for taxes
and insurance 5,740 7,986
Other liabilities 5,573 6,008
Total liabilities 572,110 557,260
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; 2,025,085
and 2,207,846 shares outstanding
at June 30, 2000
and September 30, 1999, respectively 38 38
Additional paid-in capital 38,743 38,690
Retained earnings, substantially restricted 36,290 33,771
Treasury stock, at cost (1,757,265
and 1,574,504 shares at June 30, 2000
and September 30, 1999, respectively) (31,391) (28,168)
Common stock acquired by Employee Stock
Ownership Plan (189) (632)
Common stock acquired by Bank Recognition
and Retention Plans (193) (198)
Accumulated other comprehensive income (loss) (2,856) (1,480)
Total stockholders' equity 40,442 42,021
$612,552 599,281
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,
2000 1999 2000 1999
Interest Income:
Loans receivable $9,645 8,590 28,384 24,639
Investment securities 1,304 1,284 3,922 3,653
Mortgage-backed securities 57 90 184 438
Interest-earning deposits 12 9 30 36
Federal funds sold 2 1 4 3
11,020 9,974 32,524 28,769
Interest Expense:
Deposits 4,657 3,732 12,954 11,219
Borrowed funds 2,775 2,254 8,077 6,087
7,432 5,986 21,031 17,306
Net interest income before
provision for loan losses 3,588 3,988 11,493 11,463
Provision for loan losses 55 55 110 95
Net interest income after
provision for loan losses 3,533 3,933 11,383 11,368
Non-interest Income:
Fees and commissions 130 90 339 280
Insurance and annuity commissions 269 258 771 522
Other 16 12 42 37
415 360 1,152 839
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,269 1,472 4,103 4,333
Office occupancy and equipment 387 414 1,144 1,173
Data processing 128 116 394 359
Advertising and promotions 177 98 469 303
Federal deposit insurance
premiums 55 53 159 157
Other 335 357 1,014 1,037
Amortization of deposit base
intangible 5 7 17 24
2,356 2,517 7,300 7,386
Income before income taxes 1,592 1,776 5,235 4,821
Income tax expense 586 666 1,968 1,808
Net income $1,006 1,110 3,267 3,013
Earnings per share -- basic $0.49 0.51 1.56 1.33
Earnings per share -- diluted $0.48 0.48 1.50 1.26
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
June 30, September 30,
2000 1999
Selected Financial Highlights:
Total assets $612,552 599,281
Interest-earning assets 601,713 587,503
Loans receivable, net 521,977 507,557
Deposits 395,147 357,016
Borrowed funds 165,650 186,250
Non-performing assets 587 343
Non-performing loans 538 343
Allowance for loan losses 845 780
Stockholders' equity 40,442 42,021
Book value per share 19.97 19.03
Shares outstanding - actual number 2,025,085 2,207,846
Asset Quality Ratios:
Non-performing loans to loans receivable, net 0.10% 0.07%
Non-performing loans to total assets 0.09% 0.06%
Non-performing assets to total assets 0.10% 0.06%
Allowance for loan losses to total
non-performing loans 157.06% 227.41%
Allowance for loan losses to loans
receivable, net 0.16% 0.15%
Three Months ended Nine Months ended
June 30, June 30,
2000 1999 2000 1999
Selected Operating Activities (annualized):
Return on average assets 0.66% 0.78% 0.73% 0.74%
Return on average equity 9.75% 10.38% 10.40% 9.02%
Net interest rate spread
during period 1.99% 2.46% 2.19% 2.44%
Net interest margin 2.41% 2.88% 2.60% 2.89%
Net interest income to
non-interest expense 152.29% 158.44% 157.44% 155.20%
Operating expenses to
average assets 1.55% 1.78% 1.62% 1.81%
Basic earnings per share $0.49 $0.51 $1.56 $1.33
Diluted earnings per share $0.48 $0.48 $1.50 $1.26
SOURCE Fidelity Bancorp, Inc.
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Related links:
http://www.sec.gov/cgi-bin/srch-edgar?0000912219
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 Elizabeth A. Doolan, VP & CFO,
773-736-4414, all of Fidelity Bancorp
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