CHICAGO, Oct. 16 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
of $4.2 million or $1.96 per diluted share for the year ended September 30,
2000. The company also announced its board of directors declared a quarterly
dividend of $0.12 per share, payable November 15, 2000 to stockholders of
record as of October 31, 2000.
Earnings per diluted share for the year ended September 30, 2000 were up
11 percent, or $0.20 per share, from $1.76 in 1999 to $1.96 in 2000. Net
income increased 3 percent from $4.1 million for the year ended September 30,
1999, to $4.2 million in 2000. Earnings per share and net income increased as
the result of increased non-interest income and lower non-interest expense.
For the fourth quarter ended September 30, 2000, earnings per diluted
share were $0.47 per share, compared with $0.49 for the same quarter in 1999.
Net income for the quarter ended September 30, 2000 was $975,000, compared
with $1.1 million in 1999. Net income and earnings per share were down in the
fourth quarter as the result of higher interest expense.
"Our earnings for the fourth quarter and year end were affected by the
Federal Reserve's series of interest rate increases," said Raymond S.
Stolarczyk, chairman and chief executive officer. "Many of our savers took
note of the higher interest rate environment and transferred their funds to
time deposits, driving our interest expense higher in this highly competitive
marketplace. Interest expense on borrowed funds also increased due to higher
rates and lengthening the maturities on advances to reduce interest rate
risk."
The company improved its interest rate sensitivity by lengthening the
maturities on $75 million of Federal Home Loan Bank advances during the second
half of the fiscal year.
Interest income from loans receivable was $38.3 million for the year ended
September 30, 2000, compared with $33.8 million a year earlier, up $4.5
million or 13 percent. For the 12-month period, loans receivable, net of
allowance for loan losses, grew 5 percent from $507.5 million at September 30,
1999 to $534.0 million at September 30, 2000.
"We've changed our loan production strategy to focus on returns rather
than volume," Stolarczyk said. "While we made nearly $190 million in mortgage
loans in 1999, they were at an average yield of 7.0 percent. In 2000, we
closed a little over $100 million in mortgages, but at an average yield of 8.6
percent. To get those higher yields we're reshaping the balance sheet with
construction and commercial real estate loans. Maintaining a high quality
loan portfolio remains an equally important priority."
At September 30, 2000, the company's ratio of non-performing assets to
total assets was 0.06 percent, compared with 0.08 percent at September 30,
1999.
Net interest income after provision for loan losses for the year ended
September 30, 2000 was $14.6 million, compared with $15.4 million one year
earlier. The income produced from higher yielding loans was offset by higher
interest expense. Interest expense on deposits for the year ended September
30, 2000 was $18.0 million, compared with $15.0 million in 1999. Higher
interest rates and some deposit growth resulted in the increase. At September
30, 2000, deposits were $381.4 million, up 7 percent from $357.0 million in
1999.
Interest expense on borrowed funds increased to $11.1 million for the year
ended September 30, 2000, compared with $8.7 million in 1999, the result of
higher rates and an increase in borrowed funds. Borrowed funds totaled $205.2
million at September 30, 2000, compared with $186.3 million in 1999.
Non-interest income contributed strongly to the company's earnings,
especially with respect to insurance and annuity commissions. For the year
ended September 30, 2000, non-interest income grew 37 percent, from $1.1
million in 1999 to $1.6 million in 2000. Insurance and annuity commissions
were up 48 percent to $1.1 million from $721,000 in 1999.
"We've expanded our product line to include insurance and investments that
have hit the mark with our customer base," said Thomas E. Bentel, president
and chief operating officer. "I'm particularly pleased that we've increased
sales of these products and added 500 new deposit and loan households without
any additions to staff. As a result, our efficiency continues to improve."
The company's non-interest expense for the year ended September 30, 2000
was $9.3 million, compared with $9.8 million in 1999, a 5 percent decrease.
The decline in non-interest expense contributed to improvement in the
company's ratio of operating expenses to average assets, which improved from
1.77 percent in 1999 to 1.54 percent at September 30, 2000.
In the company's current stock repurchase program, its 10th, there are up
to 28,800 shares of stock which may be repurchased. 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, 2000 was $21.14 per share,
compared with $19.03 at September 30, 1999.
The company also announced that its annual meeting of stockholders will be
held on January 24, 2001. 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 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 Sept. 30, Sept. 30,
2000 1999
Cash and due from banks $4,690 $2,714
Interest-earning deposits 1,405 576
Federal funds sold 100 100
FHLB of Chicago stock, at cost 10,065 9,615
Mortgage-backed securities held to
maturity, at amortized cost
(approximate fair value of $3,202
and $3,637 at September 30, 2000
and 1999, respectively) 3,179 3,585
Investment securities available for sale,
at fair value 74,366 66,070
Loans receivable, net of allowance for
loan losses of $950 at $780 at
September 30, 2000 and 1999, respectively 533,999 507,557
Accrued interest receivable 4,161 3,665
Real estate in foreclosure 3 -
Premises and equipment 3,925 4,202
Deposit base intangible 13 34
Other assets 1,125 1,163
$637,031 599,281
Liabilities and Stockholders' Equity
Liabilities
Deposits 381,433 357,016
Borrowed funds 205,150 186,250
Advance payments by borrowers for taxes
and insurance 2,198 7,986
Other liabilities 5,447 6,008
Total liabilities 594,228 557,260
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 September 30, 2000 and 1999, respectively 38 38
Additional paid-in capital 38,780 38,690
Retained earnings, substantially restricted 37,022 33,771
Treasury stock, at cost (1,757,265 and
1,574,504 shares at September 30, 2000
and 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 (191) (198)
Accumulated other comprehensive loss (1,266) (1,480)
Total stockholders' equity 42,803 42,021
$637,031 599,281
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,
2000 1999 2000 1999
Interest Income:
Loans receivable $9,945 9,148 38,329 33,787
Investment securities 1,314 1,298 5,236 4,951
Mortgage-backed securities 55 68 239 506
Interest-earning deposits 11 10 41 46
Federal funds sold 2 1 6 4
11,327 10,525 43,851 39,294
Interest Expense:
Deposits 5,038 3,851 17,992 15,070
Borrowed funds 3,043 2,605 11,120 8,692
8,081 6,456 29,112 23,762
Net interest income before
provision for loan losses 3,246 4,069 14,739 15,532
Provision for loan losses 70 70 180 165
Net interest income after
provision for loan losses 3,176 3,999 14,559 15,367
Non-interest Income:
Fees and commissions 113 94 452 374
Insurance and annuity commissions 292 199 1,063 721
Other 11 14 53 51
416 307 1,568 1,146
Non-interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,228 1,451 5,331 5,784
Office occupancy and equipment 308 339 1,452 1,512
Data processing 127 139 521 498
Advertising and promotions 85 96 554 399
Other 268 421 1,441 1,615
Amortization of deposit
base intangible 4 8 21 32
2,020 2,454 9,320 9,840
Income before income taxes 1,572 1,852 6,807 6,673
Income tax expense 597 735 2,565 2,543
Net income $975 1,117 4,242 4,130
Earnings per share - basic $0.48 0.52 2.04 1.85
Earnings per share - diluted $0.47 0.49 1.96 1.76
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
Sept. 30, Sept. 30,
2000 1999
Selected Financial Highlights:
Total assets $637,031 599,281
Interest-earning assets 623,114 587,503
Loans receivable, net 533,999 507,557
Deposits 381,433 357,016
Borrowed funds 205,150 186,250
Non-performing assets 379 343
Non-performing loans 382 343
Allowance for loan losses 950 780
Stockholders' equity 42,803 42,021
Book value per share 21.14 19.03
Shares outstanding - actual number 2,025,085 2,207,846
Asset Quality Ratios:
Non-performing loans to loans receivable, net 0.07% 0.07%
Non-performing loans to total assets 0.06% 0.06%
Non-performing assets to total assets 0.06% 0.08%
Allowance for loan losses to total
non-performing loans 250.66% 227.41%
Allowance for loan losses to loans
receivable, net 0.18% 0.15%
Three Month ended Year ended
September 30, September 30,
2000 1999 2000 1999
Selected Operating Activities (annualized):
Return on average assets 0.63% 0.76% 0.70% 0.74%
Return on average equity 9.46% 10.66% 10.17% 9.42%
Net interest rate spread
during period 1.67% 2.40% 2.06% 2.43%
Net interest margin 2.14% 2.82% 2.49% 2.87%
Net interest income to
non-interest expense 160.69% 165.81% 158.14% 157.85%
Operating expenses to
average assets 1.31% 1.66% 1.54% 1.77%
Basic earnings per share $0.48 $0.52 $2.04 $1.85
Diluted earnings per share $0.47 $0.49 $1.96 $1.76
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, or
Thomas E. Bentel, President & COO, or Elizabeth A. Doolan, Vice
President & CFO, all of Fidelity Bancorp, Inc., 773-736-4414
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