CHICAGO, July 19 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported third
quarter earnings of $0.48 per diluted share for the period ended June 30,
1999. The company also announced its board of directors declared a quarterly
dividend of $0.11 per share, payable August 13, 1999 to stockholders of record
as of July 30, 1999.
Compared with third quarter earnings in 1998, earnings per diluted share
were up $0.16, or 50 percent. Net income for the quarter ended June 30, 1999
was $1.1 million, compared with $934,000 for the same period in 1998, an
increase of $176,000, or 19 percent. Both earnings per share and net income
rose as a result of higher income from loans receivable.
For the nine months ended June 30, 1999, Fidelity's earnings per diluted
share were $1.26, compared with $1.00 per share in 1998, up $0.26 or 26
percent. Net income for the nine months ended June 30, 1999 was $3.0 million,
compared with $2.9 million for the nine month period in 1998.
Loans receivable increased $61.5 million from $425.6 million at
September 30, 1998, to $487.1 million at June 30, 1999. New loan production
in the nine month period totaled $155.9 million, up sharply from $104.7
million for the same period in 1998. In the third quarter new loans closed
totaled $53.2 million.
Interest income was $28.8 million for the nine months ended June 30, 1999,
compared with $27.0 million in 1998, up $1.8 million. Net interest income
after provision for loan losses was up $720,000 to $11.4 million, compared
with $10.6 million in 1998. The net increase is primarily due to increased
interest income from loans receivable.
Non-interest income also contributed to the company's results. For the
quarter ended June 30, 1999, non-interest income was $360,000, compared with
$271,000 in 1998, a 33 percent increase. The increase was primarily the
result of increased income from insurance and annuity sales. For the nine
months ended June 30, 1999, non-interest income was $839,000, compared with
$805,000 in 1998.
"We are pleased with the earning asset growth rate experienced during the
last quarter," said Thomas E. Bentel, president and chief operating officer.
"Loan demand has remained strong during the recent shift from a refinance to a
purchase market. More income from these earning assets and fee income
produced the quarter's excellent results. In addition, a slow down in the
rate of prepayments has also contributed to our success," he said.
The company's assets grew as a result of the new loan volume. At
June 30, 1999, total assets were $577.4 million, up $63.8 million from
$513.6 million at September 30, 1998. The caliber of the company's loan
portfolio was reflected in its asset quality ratios. The ratio of non-
performing assets to total assets was 0.06 percent at June 30, 1999, compared
with 0.16 percent at September 30, 1998.
Deposits remained stable, up slightly to $341.2 million at June 30, 1999
from $330.7 million at September 30, 1998. Interest expense on deposits was
$11.2 million, down 6.8 percent from the same period in 1998. Interest expense
on borrowed funds was up, due to an increase in borrowed funds. Additional
borrowings were used as a comparatively lower-cost funding source for new
loans.
The company completed its ninth stock repurchase plan during the third
quarter. The plan, announced November 18, 1998, allowed the purchase of up to
240,000 shares, or 10 percent of the company's stock. The company's board of
directors has viewed stock repurchases as a capital strategy for building
stockholder value.
For the quarter ended June 30, 1999, the company's return on average
equity improved to 10.38 percent from 7.0 percent in 1998. For the nine
months ended June 30, 1999, return on average equity was 9.0 percent, compared
with 7.3 percent for the same period in 1998.
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 ofFinancial Condition (unaudited)
Dollars in thousands
June 30, September 30,
1999 1998
Assets
Cash and due from banks $2,110 $1,320
Interest-earning deposits 837 555
Federal funds sold 100 100
FHLB of Chicago stock, at cost 9,185 6,510
Mortgage-backed securities held to
maturity, at amortized cost
(approximate fair value of $3,882 at
June 30, 1999 and $11,513
September 30, 1998) 3,799 11,177
Investment securities available for sale,
at fair value 66,069 58,979
Loans receivable, net of allowance for
loan losses of $709 at June 30, 1999
and $591 September 30, 1998 487,059 425,608
Accrued interest receivable 2,775 3,547
Real estate in foreclosure -- 131
Premises and equipment 4,246 4,401
Deposit base intangible 42 66
Other assets 1,144 1,169
$577,366 513,563
Liabilities and Stockholders' Equity
Liabilities
Deposits 341,181 330,670
Borrowed funds 184,400 121,400
Advance payments by borrowers for taxes
and insurance 5,427 6,919
Other liabilities 5,513 5,977
Total liabilities 536,521 464,966
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; 2,205,346 and
2,589,784 shares outstanding at
June 30, 1999 and September 30, 1998,
respectively 38 38
Additional paid-in capital 38,435 38,117
Retained earnings, substantially restricted 32,896 30,646
Treasury stock, at cost (1,577,004 and
1,192,566 shares at June 30, 1999 and
September 30, 1998, respectively) (28,212) (19,210)
Common stock acquired by Employee Stock
Ownership Plan (632) (1,092)
Common stock acquired by Bank Recognition
and Retention Plans (201) (242)
Accumulated other comprehensive income (loss)(1,479) 340
Total stockholders' equity 40,845 48,597
$577,366 513,563
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings (unaudited)
Dollars in thousands (except for earnings per share)
Three Months Ended Nine Months Ended
June 30, June 30,
1999 1998 1999 1998
Interest Income:
Loans receivable $8,590 7,566 24,639 22,467
Investment securities 1,284 1,137 3,653 3,624
Mortgage-backed
securities 90 245 438 806
Interest-earning
deposits 9 21 36 67
Federal funds sold 1 9 3 21
Investment in
dollar-denominated
mutual funds -- -- -- 17
9,974 8,978 28,769 27,002
Interest Expense:
Deposits 3,732 3,955 11,219 12,042
Borrowed funds 2,254 1,376 6,087 4,161
5,986 5,331 17,306 16,203
Net interest income
before provision for
loan losses 3,988 3,647 11,463 10,799
Provision for loan losses 55 90 95 151
Net interest income after
provision for loan
losses 3,933 3,557 11,368 10,648
Non-interest Income:
Fees and commissions 90 75 280 244
Insurance and annuity
commissions 258 181 522 517
Other 12 15 37 44
360 271 839 805
Non-interest Expense:
General and
administrative expenses:
Salaries and employee
benefits 1,472 1,477 4,333 4,284
Office occupancy and
equipment 414 331 1,173 929
Data processing 116 138 359 390
Advertising and
promotions 98 47 303 199
Federal deposit
insurance premiums 53 55 157 164
Other 357 298 1,037 932
Amortization of deposit
base intangible 7 10 24 32
2,517 2,356 7,386 6,930
Income before income
tax expense 1,776 1,472 4,821 4,523
Income tax expense 666 538 1,808 1,652
Net income $1,110 934 3,013 2,871
Earnings per share -
basic $0.51 0.34 1.33 1.06
Earnings per share -
diluted $0.48 0.32 1.26 1.00
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
June 30, September 30,
1999 1998
Selected Financial Highlights:
Total assets $577,366 513,563
Interest-earning assets 567,049 502,929
Loans receivable, net (A) 487,059 425,608
Deposits 341,181 330,670
Borrowed funds 184,400 121,400
Non-performing assets 370 962
Non-performing loans 370 831
Allowance for loan losses 709 591
Stockholders' equity 40,845 48,597
Book value per share 18.52 18.76
Shares outstanding -- actual number 2,205,346 2,589,784
Asset Quality Ratios:
Non-performing loans to loans receivable, net (B) 0.08% 0.20%
Non-performing loans to total assets (B) 0.06% 0.16%
Non-performing assets to total assets (B) 0.06% 0.19%
Allowance for loan losses to total
non-performing loans (B) 191.62% 71.12%
Allowance for loan losses to loans
receivable, net 0.15% 0.14%
Three Months Nine Months
ended June 30, ended June 30,
1999 1998 1999 1998
Selected Operating Activities
(annualized):
Return on average assets 0.78% 0.76% 0.74% 0.78%
Return on average equity 10.38% 7.00% 9.02% 7.31%
Net interest rate spread
during period 2.46% 2.49% 2.44% 2.43%
Net interest margin 2.88% 3.08% 2.89% 3.03%
Net interest income to
operating expenses 158% 155% 155% 156%
Operating expenses to
average assets 1.78% 1.93% 1.81% 1.89%
Basic earnings per share $0.51 $0.34 $1.33 $1.06
Diluted earnings per share $0.48 $0.32 $1.26 $1.00
(A) The loans receivable portfolio includes $0 and $30,000 of Bennett
Funding Group commercial equipment leases at June 30, 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,
Thomas E. Bentel, President & COO, or Jim Kinney, Sr. VP & CFO of
Fidelity Bancorp, 773-736-4414
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