CHICAGO, Jan. 20 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
for the first quarter ended December 31, 1997. The company also announced
that its board of directors increased the quarterly dividend $0.02 per share,
or 25.0 percent, to $0.10 per share, payable February 13, 1998 to shareholders
of record as of January 30, 1998.
For the first quarter ended December 31, 1997, Fidelity earned $977,000,
or $0.34 per diluted share, compared with $834,000 or $0.30 per diluted share
in the first quarter last year, a 13.3 percent increase in earnings per share.
The earnings growth was primarily the result of higher average loans
outstanding, an increase in fee income and a decrease in general and
administrative expenses.
"I'm pleased with our first quarter results," said Raymond S. Stolarczyk,
chairman and chief executive officer. "Despite significant loan repayments
sparked by the long-term rate decrease, our loans receivable continue to grow.
In addition, we continue to control expenses and add fee income, all of which
have had a positive impact on earnings."
Interest income from loans receivable increased to $7.5 million from
$7.0 million in 1996, a 7.3 percent increase. Loans receivable, net of
allowance for loan losses were $393.0 million at December 31, 1997, compared
with $388.3 million at September 30, 1997.
Fee income from sales of annuities and insurance grew dramatically in the
first quarter, rising to $180,000 as of December 31, 1997, compared with
$101,000 in 1996, a 78.2 percent increase. Income generated from sales of
these products helped increase non-interest income 26.2 percent to $284,000 at
December 31, 1997, compared with $225,000 in 1996.
Total general and administrative expenses were $2.2 million at December
31, 1997, compared with $2.4 million in 1996, a 7.0 percent decrease.
Stolarczyk attributed the decline to decreases in advertising expenses,
federal deposit insurance premiums and other expenses. As a result, the
company's ratio of operating expenses to average assets reflected continued
improvement in the first quarter, falling to 1.78 percent, from 1.99 percent
the previous year.
In the first quarter, deposits grew $6.5 million to $329.9 million at
December 31, 1997, from $323.4 million at September 30, 1997. Growth in
deposits came primarily from transaction accounts, as higher-cost certificates
of deposit were allowed to roll off. As the result of higher average deposits
outstanding, at higher average costs, interest expense for the quarter ended
December 31, 1997 was $4.1 million, compared with $3.9 million the previous
year.
"Over the past two quarters, sustaining deposit growth at acceptable costs
has been a challenge," said Thomas E. Bentel, president and chief operating
officer. "Given the uncertain interest rate outlook, we don't expect that
challenge to diminish in the coming year."
The company's book value was $18.22 per share at December 31, 1997,
compared with $17.75 at September 30, 1997.
"We have a commitment to shareholders, which I believe can be seen in the
earnings that we've delivered and the efficient operations we've managed,"
Stolarczyk said. "Looking forward, we are carefully monitoring the Treasury
yield curve and refinance activity to determine how our net interest margin
and future profits might be impacted," he said.
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 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
visit 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)
December 31, September 30,
Assets 1997 1997
(unaudited)
Cash and due from banks $1,985 436
Interest-bearing deposits 1,142 2,314
Federal funds sold 100 100
Investment in dollar-denominated mutual funds,
at fair value -- 3,154
FHLB of Chicago stock 5,700 5,700
Mortgage-backed securities held to maturity,
at amortized cost (approximate market value
of $16,051 at December 31, 1997 and $17,124
at September 30, 1997) 15,814 16,875
Investment securities available for sale,
at fair value 62,860 70,297
Loans receivable, net of allowance
for loan losses of $503 at December 31, 1997
and $460 at September 30, 1997 392,999 388,262
Accrued interest receivable 2,976 3,445
Real estate in foreclosure 1,068 215
Premises and equipment 3,703 3,593
Deposit base intangible 96 107
Other assets 1,230 1,136
$489,673 495,634
Liabilities and Stockholders' Equity
Liabilities
Deposits 329,920 323,443
Borrowed funds 97,300 113,400
Advance payments by borrowers for taxes
and insurance 4,646 2,197
Other liabilities 6,538 6,977
Total liabilities 438,404 446,017
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 2,813,709 and 2,794,978 shares at
December 31, 1997 and September 30, 1997,
respectively 38 38
Additional paid-in capital 37,590 37,494
Retained earnings, substantially restricted 28,691 27,939
Treasury stock, at cost (968,641 and 987,372
shares at December 31, 1997 and
September 30, 1997, respectively) (13,592) (13,855)
Common stock acquired by
Employee Stock Ownership Plan (1,092) (1,662)
Common stock acquired by Bank Recognition
and Retention Plans (403) (471)
Unrealized gain on investment securities
available for sale, less applicable taxes 37 134
Total stockholders' equity 51,269 49,617
$489,673 495,634
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
(Dollars in thousands)
Three months ended December 31, 1997 and 1996
1997 1996
(unaudited)
Interest Income:
Loans receivable $7,476 6,966
Investment securities 1,259 1,505
Mortgage-backed securities 289 376
Interest earning deposits 28 10
Federal funds sold 10 3
Investment in mutual funds 17 42
9,079 8,902
Interest Expense:
Deposits 4,110 3,874
Borrowed funds 1,458 1,472
5,568 5,346
Net interest income before provision
for loan losses 3,511 3,556
Provision for loan losses 46 39
Net interest income after
provision for loan losses 3,465 3,517
Non-Interest Income:
Fees and commissions 90 112
Insurance and annuity commissions 180 101
Other 14 12
284 225
Non-Interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,341 1,279
Office occupancy and equipment 291 296
Data processing 127 114
Advertising and promotions 112 165
Federal deposit insurance premiums 54 158
Other 284 364
Total general and administrative expenses 2,209 2,376
Amortization of intangible 11 14
Recovery of loss on impairment of
investment securities available for sale (22) --
2,198 2,390
Income before income taxes 1,551 1,352
Income tax expense 574 518
Net income $ 977 834
Earnings per share - basic $ 0.36 0.31
Earnings per share - diluted $ 0.34 0.30
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights
Dollars in thousands (except for book value and earnings per share)
December 31, September 30,
1997 1997
Selected Financial Highlights:
Total assets $489,673 495,634
Interest-earning assets 478,615 486,702
Loans receivable, net (A) 392,999 388,262
Deposits 329,920 323,443
Borrowed funds 97,300 113,400
Non-performing assets (B) 1,703 2,023
Non-performing loans (B) 1,625 1,808
Allowance for loan losses 503 460
Stockholders' equity 51,269 49,617
Book value per share 18.22 17.75
Shares outstanding - actual number 2,813,709 2,794,978
Asset Quality Ratios:
Non-performing loans to loans receivable, net (B) 0.41% 0.47%
Non-performing loans to total assets (B) 0.33% 0.36%
Non-performing assets to total assets (B) 0.35% 0.41%
Allowance for loan losses to total
non-performing loans (B) 31.0% 25.4%
Allowance for loan losses to loans receivable, net 0.13% 0.12%
Three Months Ended
December 31,
1997 1996
Selected Operating Activities (annualized):
Return on average assets 0.79% 0.69%
Return on average equity 7.65% 6.77%
Net interest rate spread during period 2.32% 2.47%
Net interest margin 2.92% 3.03%
Net interest income to operating expense 160% 149%
Operating expenses to average assets 1.78% 1.99%
Basic earnings per share $0.36 $0.31
Diluted earnings per share $0.34 $0.30
(A) The loans receivable portfolio includes $276,000 and $408,000 of
Bennett Funding Group commercial equipment leases December 31,
1997 and September 30, 1997, respectively.
(B) The non-performing loans include Bennett Funding Group commercial
equipment leases.
SOURCE Fidelity Bancorp, Inc.
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CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO or Jim Kinney, Sr. VP & CFO, all of
Fidelity Bancorp, 773-736-4414, or Fax, 773-736-6471
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
107861
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