CHICAGO, July 20 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
of $934,000, or $0.32 per diluted share for the third quarter ended June 30,
1998. The company also announced its board of directors declared a quarterly
dividend of $0.10 per share, payable August 14, 1998 to stockholders of record
as of July 31, 1998.
Compared with third quarter earnings in 1997, when net income was
$1.0 million or $0.37 per diluted share, net income was down 9.5 percent.
Earnings per share were down $0.05 per share. The decline in earnings was due
primarily to a greater provision for loan losses and an increase in expenses
related to employee benefits.
For the nine months ended June 30, 1998, Fidelity's net income was
$2.9 million, stable compared with the year earlier period. Earnings per
diluted share for the first nine months of 1998 were $1.03 per share, down
$0.03 per share from one year ago, due to an increase in the number of shares
outstanding. Instead of producing an increase in income, record additions to
earning assets went to replenishing record mortgage repayments.
For the nine months ended June 30, 1998, loans receivable increased
$21.2 million, or 5.5 percent, to $409.5 million from $388.3 million at
September 30, 1997. For the nine month period, principal repayments totaled
$83.2 million. New loans closed during the first nine months showed a sharp
increase, totaling $104.7 million, up $37.8 million or 56.5 percent from 1997.
As a result of the loan growth, the company increased its provision for loan
losses.
Interest income was $27.0 million for the nine months ended June 30, 1998,
compared with $26.8 million in 1997. While interest income from loans
receivable was up $1.3 million or 6.2 percent, to $22.5 million for the nine
months, income from investment and mortgage-backed securities was down
$1.1 million.
"Mortgage repayments had a significant impact on our results for both the
quarter and nine months," said Raymond S. Stolarczyk, chairman and chief
executive officer. "The effect of the refinance market is evident when you
consider that new loan production over the last nine months equaled 20 percent
of our total assets, and yet we've only just succeeded in growing our
interest-earning assets beyond where they were at September 30th. Our ability
to generate assets in volume is helping us to overcome this challenge, and I
am pleased that the quality of these loans remains excellent," he said.
Total assets were $501.7 million at June 30, 1998, compared with
$495.6 million at September 30, 1997. For the first time in the bank's
92 year history, total assets topped the half billion mark.
Deposits increased $4.5 million for the nine months ended June 30, 1998,
totaling $327.9 million. Borrowed funds decreased $3.6 million to
$109.8 million in the same period. Interest expense was $16.2 million,
compared with $16.0 million in 1997.
"We have made good progress in replacing higher-yielding certificates of
deposit with transaction accounts," said Thomas E. Bentel, president and chief
operating officer. "Our goal with this strategy is to reduce interest
expense, and indeed third quarter interest expense was down slightly from a
year ago."
Bentel added that the bank's conversion to new computer hardware and
software was completed in the third quarter with little disruption to
customers or the day-to-day running of the bank. "We now have more
flexibility in servicing our customers and the opportunity to introduce new,
income-producing products," he said.
As announced on May 21, 1998, the company plans to repurchase five percent
of its common stock as part of its ongoing commitment to build value for
Fidelity Bancorp stockholders. There are 142,000 shares remaining to be
repurchased.
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.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
Dollars in thousands
Assets June 30, September 30,
1998 1997
(unaudited)
Cash and due from banks $1,929 436
Interest-bearing deposits 1,306 2,314
Federal funds sold 100 100
Investment in dollar-denominated
mutual funds, at fair value -- 3,154
FHLB of Chicago stock 5,513 5,700
Mortgage-backed securities held to
maturity, at amortized cost
(approximate fair value of $13,246
at June 30, 1998 and $17,124 at
September 30, 1997) 13,067 16,875
Investment securities available for
sale, at fair value 61,559 70,297
Loans receivable, net of allowance
for loan losses of $554 at June 30,
1998 and $460 at September
30, 1997 409,486 388,262
Accrued interest receivable 2,827 3,445
Real estate in foreclosure 424 215
Premises and equipment 4,378 3,593
Deposit base intangible 75 107
Other assets 1,044 1,136
$501,708 495,634
Liabilities and Stockholders' Equity
Liabilities
Deposits 327,921 323,443
Borrowed funds 109,800 113,400
Advance payments by borrowers for
taxes and insurance 4,913 2,197
Other liabilities 5,900 6,977
Total liabilities 448,534 446,017
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
2,833,468 and 2,794,978 shares at
June 30, 1998 and September 30,
1997, respectively 38 38
Additional paid-in capital 37,822 37,494
Retained earnings, substantially
restricted 30,020 27,939
Treasury stock, at cost (948,882
and 987,372 shares at June 30,
1998 and September 30, 1997,
respectively) (13,399) (13,855)
Common stock acquired by Employee
Stock Ownership Plan (1,092) (1,662)
Common stock acquired by Bank
Recognition and Retention Plans (277) (471)
Unrealized gain on investment securities
available for sale, less applicable
taxes 62 134
Total stockholders' equity 53,174 49,617
$501,708 495,634
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,
1998 1997 1998 1997
(unaudited)
Interest Income:
Loans receivable $7,566 7,130 22,467 21,160
Investment securities 1,137 1,450 3,624 4,425
Mortgage-backed
securities 245 340 806 1,075
Interest earning
deposits 21 16 67 35
Federal funds sold 9 6 21 11
Investment in mutual
funds -- 42 17 124
8,978 8,984 27,002 26,830
Interest Expense:
Deposits 3,955 4,022 12,042 11,820
Borrowed funds 1,376 1,364 4,161 4,141
5,331 5,386 16,203 15,961
Net interest income
before provision for
loan losses 3,647 3,598 10,799 10,869
Provision for loan
losses 90 15 151 54
Net interest income after
provision for loan
losses 3,557 3,583 10,648 10,815
Non-Interest Income:
Fees and commissions 75 85 244 287
Insurance and annuity
commissions 181 192 517 482
Other 15 17 44 45
271 294 805 814
Non-Interest Expense:
General and administrative
expenses:
Salaries and employee
benefits 1,477 1,343 4,284 4,016
Office occupancy and
equipment 331 305 929 903
Data processing 138 116 390 357
Advertising and
promotions 47 130 199 468
Federal deposit
insurance premiums 55 59 164 267
Other 298 334 932 1,034
Total general and
administrative
expenses 2,346 2,287 6,898 7,045
Amortization of
intangible 10 12 32 39
2,356 2,299 6,930 7,084
Income before
income taxes 1,472 1,578 4,523 4,545
Income tax expense 538 546 1,652 1,682
Net income $934 $1,032 2,871 2,863
Earnings per share -
basic $0.34 $0.39 1.06 1.09
Earnings per share -
diluted $0.32 $0.37 1.00 1.03
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights
Dollars in thousands (except for book value and earnings per share)
June 30, 1998 September 30, 1997
(unaudited)
Selected Financial Highlights:
Total assets $501,788 495,634
Interest-earning assets 491,031 486,702
Loans receivable, net (A) 409,486 388,262
Deposits 327,921 323,443
Borrowed funds 109,800 113,400
Non-performing assets 1,207 2,023
Non-performing loans 784 1,808
Allowance for loan losses 554 460
Stockholders' equity 53,174 49,617
Book value per share 18.77 17.75
Shares outstanding - actual
number 2,833,468 2,794,978
Asset Quality Ratios:
Non-performing loans to loans
receivable, net (B) 0.19% 0.47%
Non-performing loans to
total assets (B) 0.16% 0.36%
Non-performing assets to
total assets (B) 0.24% 0.41%
Allowance for loan losses to
total non-performing loans (B) 70.7% 25.4%
Allowance for loan losses to
loans receivable, net 0.14% 0.12%
Three Months ended Nine Months ended
June 30, June 30,
1998 1997 1998 1997
(unaudited)
Selected Operating
Activities (annualized):
Return on average
assets 0.76% 0.84% 0.78% 0.79%
Return on average
equity 7.0% 8.1% 7.3% 7.6%
Net interest rate spread
during period 2.48% 2.42% 2.44% 2.49%
Net interest margin 3.08% 3.00% 3.03% 3.06%
Net interest income to
operating expenses 155% 157% 156% 153%
Operating expenses to
average assets 1.93% 1.88% 1.89% 1.95%
Basic earnings per
share $0.34 $0.39 $1.06 $1.09
Diluted earnings per
share $0.32 $0.37 $1.00 $1.03
(A) The loans receivable portfolio includes $93,000 and $408,000 of
Bennett Funding Group commercial equipment leases at June 30, 1998 and
September 30, 1997.
(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, all of
Fidelity Bancorp, 773-736-4414
|
