CHICAGO, Oct. 18 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
of $4.1 million or $1.76 per diluted share for the year ended September 30,
1999. The company also announced its board of directors declared a quarterly
dividend of $0.11 per share, payable November 15, 1999 to stockholders of
record as of October 29, 1999.
For the year ended September 30, 1999, earnings per diluted share were up
$0.43 per share, or 32 percent, from $1.33 in 1998 to $1.76 in 1999. Net
income increased 9 percent, from $3.8 million in 1998 to $4.1 million in 1999.
Earnings per share and net income increased as the result of higher income
from a greater volume of loans receivable.
For the fourth quarter ended September 30, 1999, earnings per diluted
share were $0.49 per share, up $0.16 or 48 percent from $0.33 per diluted
share in the fourth quarter of 1998. Net income for the quarter ended
September 30, 1999 was $1.1 million, compared with $909,000 in 1998, an
increase of $208,000 or 23 percent.
"I'm very pleased with our results for the quarter and the year," said
Raymond S. Stolarczyk, chairman and chief executive officer. "We made more
loans in our community than ever. Many of them were higher yielding loans,
like mortgages on small apartment buildings and to self-employed homebuyers.
Outstanding loan growth coupled with good expense controls and a drop in
refinance activity produced our record earnings."
Loans receivable, net of allowance for loan losses, were $507.6 million at
September 30, 1999, up $81.9 million or 19 percent from $425.6 million in
1998. New loans closed during the year totaled $196.9 million, up
$54.1 million or 38 percent from 1998.
Interest income for the year ended September 30, 1999 was $39.3 million,
compared with $36.1 million in 1998, an increase of $3.2 million or 9 percent.
Net interest income after provision for loan losses was $15.4 million; up
$1.3 million from $14.1 million in 1998.
At September 30, 1999, the company's assets totaled $599.3 million,
compared with $513.6 million at September 30, 1998. During the year, assets
grew $85.7 million or 16.7 percent. Amid record loan growth, asset quality
remained strong. The ratio of non-performing assets to total assets improved
to 0.06 percent at September 30, 1999, from 0.19 in 1998.
For the year ended September 30, 1999, deposits were $357.0 million,
compared with $330.7 million for the same period in 1998, an increase of
8 percent. Deposit interest expense for the year declined slightly, from
$15.9 million for the year ended September 30, 1998, to $15.1 million in 1999.
Interest expense on borrowed funds was up, due to an increase in borrowed
funds. Borrowed funds were used as a comparatively lower-cost funding source
for loan growth.
Non-interest expenses rose slightly for the year, to $9.8 million for the
year ended September 30, 1999, from $9.2 million in 1998. The increase was
primarily due to higher advertising expenditures, other expenses, and
depreciation of the company's recently upgraded computer system. The
company's efficiency improved, however, as measured by the ratio of operating
expenses to average assets, which was 1.8 percent for the year ended September
30, 1999 compared with 1.9 percent for the same period in 1998. For the
quarter ended September 30, 1999, the company's ratio of operating expenses to
average assets was 1.7 percent, compared with 1.8 for the three months ended
September 30, 1998.
The company's return on average equity increased to 9.4 percent for the
year ended September 30, 1999, compared with 7.3 percent in 1998. For the
quarter ended September 30, 1999, return on average equity also improved,
increasing to 10.7 percent for 1999 from 7.0 percent in 1998. Book value per
share was $19.03 per share at September 30, 1999, compared with $18.76 at
September 30, 1998.
The company also announced that its annual meeting of stockholders will be
held on January 26, 2000. 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; (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
September 30, September 30,
1999 1998
Assets
Cash and due from banks $2,714 1,320
Interest-earning deposits 576 555
Federal funds sold 100 100
FHLB of Chicago stock, at cost 9,615 6,510
Mortgage-backed securities held
to maturity, at amortized cost
(approximate fair value of
$3,637 and $11,513 at September
30, 1999 and 1998, respectively) 3,585 11,177
Investment securities available
for sale, at fair value 66,070 58,979
Loans receivable, net of allowance
for loan losses of $780 and $591
September 30, 1999 and 1998,
respectively 507,557 425,608
Accrued interest receivable 3,665 3,547
Real estate in foreclosure -- 131
Premises and equipment 4,202 4,401
Deposit base intangible 34 66
Other assets 1,163 1,169
$599,281 513,563
Liabilities and Stockholders' Equity
Liabilities
Deposits 357,016 330,670
Borrowed funds 186,250 121,400
Advance payments by borrowers
for taxes and insurance 7,986 6,919
Other liabilities 6,008 5,977
Total liabilities 557,260 464,966
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; 2,207,846 and
2,589,784 shares outstanding at
September 30, 1999 and 1998,
respectively 38 38
Additional paid-in capital 38,690 38,117
Retained earnings, substantially
restricted 33,771 30,646
Treasury stock, at cost (1,574,504
and 1,192,566 shares at
September 30, 1999 and 1998,
respectively) (28,168) (19,210)
Common stock acquired by Employee
Stock Ownership Plan (632) (1,092)
Common stock acquired by Bank
Recognition and Retention Plans (198) (242)
Accumulated other comprehensive
income (loss) (1,480) 340
Total stockholders' equity 42,021 48,597
$599,281 513,563
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings (unaudited)
Dollars in thousands (except for earnings per share)
Three Months Ended Year Ended
September 30, September 30,
1999 1998 1999 1998
Interest Income:
Loans receivable $9,148 7,764 33,787 30,231
Investment securities 1,298 1,157 4,951 4,759
Mortgage-backed
securities 68 212 506 1,018
Interest-earning
deposits 10 13 46 80
Federal funds sold 1 1 4 22
Investment in
dollar-denominated
mutual funds -- -- -- 17
10,525 9,147 39,294 36,127
Interest Expense:
Deposits 3,851 3,854 15,070 15,936
Borrowed funds 2,605 1,739 8,692 5,900
6,456 5,633 23,762 21,836
Net interest income
before provision
for loan losses 4,069 3,514 15,532 14,291
Provision for loan
losses 70 30 165 181
Net interest income
after provision for
loan losses 3,999 3,484 15,367 14,110
Non-interest Income:
Fees and commissions 94 88 374 332
Insurance and annuity
commissions 199 200 721 717
Other 14 14 51 58
307 302 1,146 1,107
Non-interest Expense:
General and
administrative
expenses:
Salaries and
employee benefits 1,451 1,398 5,784 5,682
Office occupancy
and equipment 339 364 1,512 1,293
Data processing 139 134 498 524
Advertising and
promotions 96 64 399 263
Federal deposit
insurance premiums 54 57 211 221
Other 367 284 1,404 1,216
Amortization of deposit
base intangible 8 9 32 41
Recovery on impairment
of investment
securities available
for sale -- -- -- (22)
2,454 2,310 9,840 9,218
Income before income
tax expense 1,852 1,476 6,673 5,999
Income tax expense 735 567 2,543 2,219
Net income $1,117 909 4,130 3,780
Earnings per share
- basic $0.52 0.34 1.85 1.41
Earnings per share
- diluted $0.49 0.33 1.76 1.33
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
September 30, September 30,
1999 1998
Selected Financial Highlights:
Total assets $599,281 513,563
Interest-earning assets 587,503 502,929
Loans receivable, net (A) 507,557 425,608
Deposits 357,016 330,670
Borrowed funds 186,250 121,400
Non-performing assets 343 962
Non-performing loans 343 831
Allowance for loan losses 780 591
Stockholders' equity 42,021 48,597
Book value per share 19.03 18.76
Shares outstanding - actual number 2,207,846 2,589,784
Asset Quality Ratios:
Non-performing loans to loans
receivable, net (B) 0.07% 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) 227.41% 71.12%
Allowance for loan losses
to loans receivable, net 0.15% 0.14%
Three Months ended Year ended
September 30, September 30,
1999 1998 1999 1998
Selected Operating
Activities (annualized):
Return on average
assets 0.76% 0.71% 0.74% 0.76%
Return on average
equity 10.66% 6.96% 9.42% 7.30%
Net interest rate
spread during period 2.40% 2.22% 2.43% 2.38%
Net interest margin 2.82% 2.83% 2.87% 2.98%
Net interest income
to operating expenses 166% 152% 158% 155%
Operating expenses
to average assets 1.66% 1.81% 1.77% 1.87%
Basic earnings per
share $0.52 $0.34 $1.85 $1.41
Diluted earnings per
share $0.49 $0.33 $1.76 $1.33
(A) The loans receivable portfolio includes $0 and $30,000 of Bennett
Funding Group commercial equipment leases at and September 30, 1999
and 1998, respectively
(B) The non-performing loans include Bennett Funding Group commercial
equipment leases.
SOURCE Fidelity Bancorp, Inc.
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Related links:
http://www.sec.gov/cgi-bin/srch-edgar?0000912219
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 Jim Kinney, Sr. VP & CFO,
of Fidelity Bancorp, Inc., 773-736-4414
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