CHICAGO, Oct. 15 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
of $1.9 million or $0.89 per diluted share for the fourth quarter ended
September 30, 2001. For the fiscal year ended September 30, 2001, the company
reported earnings of $4.9 million or $2.31 per diluted share. The company
also announced its board of directors declared a quarterly dividend of $0.12
per share, payable November 15, 2001 to stockholders of record as of October
31, 2001.
For the fourth quarter ended September 30, 2001, earnings per diluted
share increased $0.42 to $0.89 from $0.47 in 2000. Net income for the fourth
quarter was $1.9 million, compared with $1.0 million in 2000.
Earnings per diluted share for the year ended September 30, 2001 increased
18%, or $0.35, from $1.96 in 2000 to $2.31 in 2001. Net income increased 15%,
from $4.2 million for the year ended September 30, 2000, to $4.9 million in
2001.
For both the fourth quarter and the year, earnings per share and net
income were up due to improved net interest margin in the fourth quarter and
higher non-interest income. Contributing to the increase in non-interest
income were certain non-recurring items totaling $955,000, which were
comprised of gains on sale of reclassified loans totaling $618,000, gains from
the sale of investment securities totaling $231,000 and a gain on the sale of
a real estate investment totaling $106,000.
"We seized an opportunity to take advantage of the interest rate
environment by selling some loans that were likely to repay, and reclassifying
others for future opportunities," said Raymond S. Stolarczyk, chairman and
chief executive officer. "At the same time, we purchased mortgage-backed
securities with the proceeds of the sales to ensure a continuing income stream
from earning assets. This allowed us to achieve excellent earnings in an
otherwise flat earnings year, without limiting the potential for future
earnings," he said.
The company sold $55.5 million in single-family mortgages, resulting in a
$640,000 gain. With the proceeds, mortgage-backed securities were purchased
and were classified as available for sale. An additional $41.2 million in
fixed-rate mortgage loans were classified as available for sale. By
reclassifying assets, the company aims to improve its ability to manage pre-
payment risk and take advantage of investment opportunities in the wholesale
market, while at the same time managing earning assets to produce income both
in the present and future.
The reclassification of assets and sale of loans resulted in a decrease in
loans receivable, from $534.3 million at September 30, 2000 to $423.0 million
at September 30, 2001. Dramatically higher loan pre-payments also contributed
to the decrease. For the 12-month period ended September 30, 2001, loan
repayments were $152.6 million, versus $84.0 million in 2000. Originations of
new loans totaled $140.1 million for the year ended September 30, 2001,
compared with $110.2 million in 2000.
Interest earning assets grew by $30.3 million or 5% during the year, from
$623.1 million at September 30, 2000, to $653.4 million in 2001. As a result,
interest income grew 6% or $2.6 million to $46.5 million for the year ended
September 30, 2001, from $43.9 million in 2000. Total assets grew 5% or
$31.7 million to $668.7 million at September 30, 2001, compared with
$637.0 million in 2000. Asset quality remained excellent, with the company's
ratio of non-performing assets to total assets at September 30, 2001 measuring
0.10%, compared with 0.06% at September 30, 2000.
Net interest income after provision for loan losses for the year ended
September 30, 2001 was $14.7 million, compared with $14.6 million in 2000.
The income produced from earning assets was partially offset by higher
interest expense. Interest expense on deposits for the year ended September
30, 2001 was $19.1 million, up $1.1 million from $18.0 million in 2000.
Higher interest rates early in the year and deposit growth throughout the year
resulted in the increase. Recent rate cuts by the Federal Reserve had a
positive effect on interest expense on deposits, as interest expense declined
13% to $4.4 million in the fourth quarter of 2001 from $5.0 million in 2000.
At September 30, 2001, deposits were $399.6 million, up 5 percent from
$381.4 million in 2000.
"We expect interest expense to drop further, as indicated by the fourth
quarter numbers," said Thomas E. Bentel, president and chief operating
officer. "We're encouraged that core deposit relationships have not only been
maintained, but have grown in the face of declining deposit rates."
Interest expense on borrowed funds increased to $12.3 million for the year
ended September 30, 2001, compared with $11.1 million in 2000. Borrowed funds
totaled $187.3 million at September 30, 2001, compared with $205.2 million in
2000.
Non-interest income for the year ended September 30, 2001 was
$2.3 million, up $700,000 from $1.6 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 $871,000 in aggregate
on the sale of investments and loans in the second, third and fourth quarters.
Commissions from sales of annuities and insurance were down $243,000 to
$820,000 for the year ended September 30, 2001, from $1.1 million in the year
earlier period. Sales of annuities and insurance products remained strong,
however, changes in the rate of commission earned resulted in less income from
sales.
The company's non-interest expense for the year ended September 30, 2001
was $9.7 million, compared with $9.3 million in 2000. Higher group insurance
costs contributed to the 4% increase. The company's ratio of operating
expenses to average assets was stable, at 1.53 percent for 2001 compared to
1.54 percent for 2000.
During the fiscal year, the company completed its 10th repurchase program.
The repurchase of shares and increases in net income have combined to increase
the company's book value per share. Book value per share at September 30,
2001 was $24.44, compared with $21.14 per share at September 30, 2000. The
company's return on equity also improved, from 10.2% for 2000 to 11.1% for
2001.
The company will host a telephone conference call to discuss the quarter
and fiscal year results on Tuesday, October 16, 2001 at 2:30 p.m. (CST). To
participate in the call, dial (800) 553-2165 and reference
ID #1274252.
The company also announced that its annual meeting of stockholders will be
held on January 23, 2002. The meeting will be held at 10:00 a.m. at the
company's headquarters, located at 5455 W. Belmont Avenue in Chicago.
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 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)
September 30,
September 30,
Assets 2001 2000
Cash and due from banks $7,107 $4,690
Interest-earning deposits 1,397 1,405
Federal funds sold 100 100
FHLB of Chicago stock, at cost 18,055 10,065
Mortgage-backed securities held to maturity,
at amortized cost - 2,901
Mortgage-backed securities available for sale,
at fair value 127,685 -
Investment securities available for sale,
at fair value 42,006 74,366
Loans held for sale 41,219 -
Loans receivable, net of allowance for loan losses
of $1,236 and $950 at September 30, 2001 and
2000, respectively 422,980 534,277
Accrued interest receivable 3,650 4,161
Real estate in foreclosure - 3
Premises and equipment 3,850 3,925
Deposit base intangible 2 13
Other assets 655 1,125
$668,706 $637,031
Liabilities and Stockholders' Equity
Liabilities
Deposits 399,619 381,433
Borrowed funds 187,345 205,150
Advance payments by borrowers for taxes
and insurance 7,193 2,198
Due to broker 14,918 -
Other liabilities 10,247 5,447
Total liabilities 619,322 594,228
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; 2,020,367 and
2,025,085 shares outstanding at September 30,
2001 and 2000, respectively 38 38
Additional paid-in capital 38,636 38,780
Retained earnings, substantially restricted 40,926 37,022
Treasury stock, at cost (1,761,983 and 1,757,265
shares at September 30, 2001 and 2000,
respectively) (31,540) (31,391)
Common stock acquired by Employee Stock
Ownership Plan - (189)
Common stock acquired by Bank Recognition
and Retention Plans (178) (191)
Accumulated other comprehensive income (loss) 1,502 (1,266)
Total stockholders' equity 49,384 42,803
$668,706 $637,031
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Ended Year Ended
September 30, September 30,
2001 2000 2001 2000
Interest Income:
Loans receivable $9,512 9,945 39,337 38,329
Investment securities 1,278 1,314 5,822 5,236
Mortgage-backed securities 866 55 1,223 239
Interest-earning deposits 21 11 58 41
Federal funds sold 3 2 14 6
11,680 11,327 46,454 43,851
Interest Expense:
Deposits 4,384 5,038 19,121 17,992
Borrowed funds 2,873 3,043 12,340 11,120
7,257 8,081 31,461 29,112
Net interest income before
provision for loan losses 4,423 3,246 14,993 14,739
Provision for loan losses 115 70 295 180
Net interest income after
provision for loan losses 4,308 3,176 14,698 14,559
Non-interest Income:
Fees and commissions 106 113 457 452
Insurance and annuity commissions 195 292 820 1,063
Gain on sale of investment
securities 29 -- 231 --
Gain on sale of loans 626 -- 640 --
Other 10 11 159 53
966 416 2,307 1,568
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,475 1,228 5,578 5,331
Office occupancy and equipment 521 308 1,666 1,452
Data processing 92 127 467 521
Advertising and promotions 116 85 443 554
Other 444 268 1,535 1,441
Amortization of deposit base
intangible 2 4 11 21
2,650 2,020 9,700 9,320
Income before income taxes 2,624 1,572 7,305 6,807
Income tax expense 751 597 2,433 2,565
Net income $1,873 975 4,872 4,242
Earnings per share - basic $0.93 0.48 2.42 2.04
Earnings per share - diluted $0.89 0.47 2.31 1.96
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
September 30, September 30,
2001 2000
Selected Financial Highlights:
Total assets $668,706 637,031
Interest-earning assets 653,442 623,114
Loans receivable, net 422,980 534,277
Deposits 399,619 381,433
Borrowed funds 187,345 205,150
Non-performing assets 677 379
Non-performing loans 677 382
Allowance for loan losses 1,236 950
Stockholders' equity 49,384 42,803
Book value per share 24.44 21.14
Shares outstanding - actual number 2,020,367 2,025,085
Asset Quality Ratios:
Non-performing loans to loans receivable, net 0.16% 0.07%
Non-performing loans to total assets 0.10% 0.06%
Non-performing assets to total assets 0.10% 0.06%
Allowance for loan losses to total
non-performing loans 182.57% 250.66%
Allowance for loan losses to loans receivable,
net 0.27% 0.18%
Three Month ended Year ended
September 30, September 30,
2001 2000 2001 2000
Selected Operating Activities (annualized):
Return on average assets 1.15% 0.63% 0.77% 0.70%
Return on average equity 15.71% 9.46% 11.11% 10.17%
Net interest rate spread during
period 2.32% 1.67% 1.95% 2.06%
Net interest margin 2.77% 2.14% 2.41% 2.49%
Net interest income to
non-interest expense 166.91% 160.69% 154.57% 158.14%
Operating expenses to average
assets 1.62% 1.31% 1.53% 1.54%
Basic earnings per share $0.93 $0.48 $2.42 $2.04
Diluted earnings per share $0.89 $0.47 $2.31 $1.96
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, all of Fidelity Bancorp, +1-773-736-4414
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