CHICAGO, Oct. 21 /PRNewswire-FirstCall/ --
Fidelity Bancorp, Inc. (Nasdaq: FBCI), the parent company of Fidelity Federal
Savings Bank, today reported fiscal fourth quarter earnings of $2.0 million or
$0.61 per diluted share for the quarter ended September 30, 2002. For the
fiscal year ended September 30, 2002, the company reported net income totaling
$8.0 million and earnings per diluted share of $2.49. The company also
announced that its board of directors increased the quarterly dividend 11%,
from $0.09 to $0.10 per share, payable November 15, 2002 to stockholders of
record as of October 31, 2002. All figures reported for earnings per share
and dividends have been adjusted to reflect the company's three-for-two stock
split, which occurred February 28, 2002.
Earnings per diluted share for the quarter ended September 30, 2002 were
up $0.02 per share, from $0.59 per share for the same period in 2001. Net
income for the quarter ended September 30, 2002 was $2.0 million, compared
with $1.9 million for the same quarter in 2001. Earnings per share and net
income for the quarter were up from the previous year's results primarily due
to an improved net interest margin.
For the fiscal year, earnings per diluted share were up $0.95 per share,
or 62%, from $1.54 per share in 2001. Net income increased 64%, to
$8.0 million for the year ended September 30, 2002, compared with $4.9 million
for the 2001 period.
"Net interest margin improvement over the past four quarters led to
excellent results for the year," said Raymond S. Stolarczyk, chairman and
chief executive officer. "Maintaining earning asset yields has been our
focus, and that combined with declining interest expense produced the record
year-end results."
The bank's net interest margin increased to 3.32% for the year ended
September 30, 2002, from 2.41% in 2001. Net interest income was $21.6 million
for the year ended September 30, 2002, compared with $15.0 million in 2001, up
$6.6 million or 44%.
Total interest expense for the year ended September 30, 2002 was
$22.2 million, down $9.3 million or 30% from $31.5 million in 2001. Interest
expense on borrowed funds declined 30% to $8.6 million for the year ended
September 30, 2002, compared with $12.3 million in 2001. The decline was due
to maturing borrowed funds being replaced with funds borrowed at lower rates
and a slight decrease in total borrowed funds.
For the year ended September 30, 2002, interest expense on deposits was
$13.7 million, down $5.4 million or 28% from $19.1 million in 2001. Lower
interest rates and a greater number of transaction accounts in the deposit mix
led to the decline in interest expense.
Total deposits were $434.1 million as of September 30, 2002, up 9% from
$399.6 million at September 30, 2001. Transaction accounts, which made up 46%
of total deposits, were up 12% for the fiscal year. The company remains
focused on transaction account growth as a means to build deposits and control
interest expense.
The company was successful in preserving its level of total interest
income, in spite of continued high loan turnover and the low interest rate
environment. Total interest income was $43.8 million for the year ended
September 30, 2002, down just $2.7 million or 6% from $46.5 million in 2001.
Interest income from loans receivable was $31.3 million for the year ended
September 30, 2002, compared with $39.3 million in 2001. Income from loans
receivable fell primarily as a result of a decline in the average balance of
loans outstanding due to loan sales. The decline in interest income from
loans receivable was offset by an increase in interest income from mortgage-
backed securities, which totaled $8.8 million for the year ended September 30,
2002, compared with $1.2 million in 2001.
Net loans receivable at September 30, 2002 were $414.7 million, compared
with $423.0 million at September 30, 2001. While loan demand has remained
steady, the low interest rate environment produced increased repayments. New
loans closed, including multi-family and commercial mortgages and loans
secured by commercial leases, totaled $170.1 million for the year ended
September 30, 2002.
Non-interest income was up $1.1 million to $3.4 million for the year ended
September 30, 2002 from $2.3 million in 2001. During fiscal 2002, the sale of
loans and investments produced a $1.8 million pre-tax gain, compared with a
$977,000 pre-tax gain in 2001. Insurance and annuity commissions contributed
$863,000 for the year, up $43,000 or 5% from $820,000 in 2001. Without the
gain on the sale of loans and investments, non-interest income for the fiscal
year ended September 30, 2002 was up $244,000, or 18% from 2001.
Non-interest expense increased to $11.7 million for the year ended
September 30, 2002, compared with $9.7 million in 2001, up 21%. Contributing
to the increase were employee benefits, including higher group health
insurance premiums, increased personnel and normal annual salary increases;
accelerated depreciation for obsolescence in the company's computer hardware
and software; and increased legal and consulting fees associated with
strategic planning for new initiatives.
A primary contributor to the company's excellent results for the year was
the ongoing maintenance of its asset quality, despite a weakened economy. At
September 30, 2002, the ratio of non-performing assets to total assets was
0.23%.
Book value per share at September 30, 2002 was $18.17, compared with
$16.30 at September 30, 2001. The increase in book value per share was due to
earnings retained.
The company saw a significant improvement in return on equity, as well as
certain other measures. The company's return on average equity increased to
15.39% for the year ended September 30, 2002, compared with 11.11% for the
year ended September 30, 2001. The company's operating efficiency also
improved, as reflected in its efficiency ratio, which improved to 46.82% for
the year ended September 30, 2002, from 56.07% for the year ended September
30, 2001.
The company will host a telephone conference call to discuss the quarter's
results on Tuesday, October 22, 2002 at 2:30 p.m. (CT). To participate in the
call, dial (800) 388-8975 and reference Fidelity's fourth quarter earnings
call. The annual meeting of stockholders will be held on January 22, 2003 at
10:00 a.m. (CT) 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 by mail or fax by
contacting the company. News releases are also available on the Internet by
visiting http://www.prnewswire.com and clicking on "Today's News" and then "Company
News" from the pull down menu. The company's SEC filings are available
electronically on the Internet at http://www.sec.gov/cgi-bin/srch-edgar?0000912219.
This document (including information incorporated by reference) contains,
and future oral and written statements of the Company and its management may
contain, forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the financial
condition, results of operations, plans, objectives, future performance and
business of the Company. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of the Company's management and on
information currently available to management, are generally identifiable by
the use of words such as "believe," "expect," "anticipate," "plan," "intend,"
"estimate," "may," "will," "would," "could," "should" or other similar
expressions. Additionally, all statements in this document, including
forward-looking statements, speak only as of the date they are made, and the
Company undertakes no obligation to update any statement in light of new
information or future events.
A number of factors, many of which are beyond the ability of the Company
to control or predict, could cause actual results to differ materially from
those in its forward-looking statements. These factors include, among others,
the following: (i) the strength of the local and national economy; (ii) the
economic impact of September 11th; (iii) changes in state and federal laws,
regulations and governmental policies concerning the Company's general
business; (iv) changes in interest rates and prepayment rates of the Company's
assets; (v) increased competition in the financial services sector and the
inability to attract new customers; (vi) changes in technology and the ability
to develop and maintain secure and reliable electronic systems; (vii) the loss
of key executives or employees; (viii) changes in consumer spending; (ix)
unexpected results of acquisitions; (x) unexpected outcomes of existing or new
litigation involving the Company; and (xi) changes in accounting policies and
practices. These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements. Additional information concerning the Company and its business,
including additional factors that could materially affect the Company's
financial results, is included in the Company's filings with the Securities
and Exchange Commission.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition (unaudited)
Dollars in thousands
Assets September 30,September 30,
2002 2001
Cash and due from banks $3,828 7,107
Interest-earning deposits 1,045 1,397
Federal funds sold 100 100
Cash and cash equivalents 4,973 8,604
FHLB of Chicago stock, at cost 31,972 18,055
Mortgage-backed securities available for sale 216,505 127,685
Securities available for sale 22,396 42,006
Loans held for sale 83 41,219
Loans receivable, net of allowance for loan
losses of $1,826 at and $1,236 at September 30,
2002 and 2001, respectively 414,685 422,980
Accrued interest receivable 3,637 3,650
Premises and equipment 3,410 3,850
Other assets 1,254 657
$698,915 668,706
Liabilities and Stockholders' Equity
Liabilities
Deposits 434,134 399,619
Borrowed funds 180,650 187,345
Advance payments by borrowers for taxes
and insurance 6,158 7,193
Due to broker 13,169 14,918
Other liabilities 8,813 10,247
Total liabilities 642,924 619,322
Stockholders' Equity
Preferred stock - -
Common stock 57 38
Additional paid-in capital 38,410 38,636
Retained earnings, substantially restricted 47,864 40,926
Treasury stock, at cost (30,932) (31,540)
Common stock acquired by Bank Recognition
and Retention Plans (149) (178)
Accumulated other comprehensive income 741 1,502
Total stockholders' equity 55,991 49,384
$698,915 668,706
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,
2002 2001 2002 2001
Interest Income:
Loans receivable $7,540 9,512 31,269 39,337
Securities 791 1,278 3,745 5,822
Mortgage-backed securities 2,118 866 8,787 1,223
Other interest income 13 24 39 72
10,462 11,680 43,840 46,454
Interest Expense:
Deposits 3,014 4,384 13,656 19,121
Borrowed funds 1,850 2,873 8,586 12,340
4,864 7,257 22,242 31,461
Net interest income before
provision for loan losses 5,598 4,423 21,598 14,993
Provision for loan losses 150 115 600 295
Net interest income after
provision for loan losses 5,448 4,308 20,998 14,698
Non-interest Income:
Fees and commissions 175 106 670 457
Insurance and annuity commissions 225 195 863 820
Gain on sale of investment
securities 543 29 1,122 231
Gain on sale of loans 14 626 690 640
Other 10 10 41 159
967 966 3,386 2,307
Non-interest Expense:
General and administrative
expenses:
Salaries and employee benefits 1,700 1,475 6,544 5,578
Office occupancy and equipment 590 521 1,993 1,666
Data processing 127 92 498 467
Advertising and promotions 101 116 550 443
Other 800 446 2,112 1,546
3,318 2,650 11,697 9,700
Income before income taxes 3,097 2,624 12,687 7,305
Income tax expense 1,140 751 4,684 2,433
Net income $1,957 1,873 8,003 4,872
Earnings per share - basic $0.64 0.62 2.61 1.61
Earnings per share - diluted $0.61 0.59 2.49 1.54
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights (unaudited)
Dollars in thousands (except for book value and earnings per share)
September 30,September 30,
2002 2001
Selected Financial Highlights:
Total assets $698,915 668,706
Interest-earning assets 686,786 653,442
Loans receivable, net 414,685 422,980
Deposits 434,134 399,619
Borrowed funds 180,650 187,345
Non-performing assets 1,622 677
Non-performing loans 1,217 677
Allowance for loan losses 1,826 1,236
Stockholders' equity 55,991 49,384
Book value per share (A) 18.17 16.30
Shares outstanding - actual number (A) 3,081,490 3,030,490
Asset Quality Ratios:
Non-performing loans to loans receivable, net 0.29% 0.16%
Non-performing loans to total assets 0.17% 0.10%
Non-performing assets to total assets 0.23% 0.10%
Allowance for loan losses to total
non-performing loans 150.04% 182.57%
Allowance for loan losses to loans receivable,
net 0.44% 0.29%
Three Month ended Year ended
September 30, September 30,
2002 2001 2002 2001
Selected Financial Ratios &
Other Data (annualized):
Return on average assets 1.19% 1.15% 1.20% 0.77%
Return on average equity 14.13% 15.71% 15.39% 11.11%
Net interest rate spread during
period 3.09% 2.32% 2.93% 1.95%
Net interest margin 3.47% 2.77% 3.32% 2.41%
Net interest income to
non-interest expense 168.72% 166.91% 184.65% 154.57%
Efficiency ratio 50.54% 49.17% 46.82% 56.07%
Basic earnings per share (A) $0.64 $0.62 $2.61 $1.61
Diluted earnings per share (A) $0.61 $0.59 $2.49 $1.54
(A) Adjusted for the February 28, 2002 3-for-2 stock split which was
effected in the form of a stock dividend.
SOURCE Fidelity Bancorp, Inc.
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CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, Thomas
E. Bentel, President & COO, or Elizabeth A. Doolan, Sr. Vice
President & CFO, all of Fidelity Bancorp, +1-773-736-4414
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