CHICAGO, Jan. 21 /PRNewswire/ -- Fidelity Bancorp, Inc.
(Nasdaq-NNM: FBCI), the parent company of Fidelity Federal Savings Bank, today
reported earnings for the first quarter ended December 31, 1996. The company
also announced that its board of directors increased the quarterly dividend
$0.02, or 33 percent, to $0.08 per share, payable February 14, 1997 to
shareholders of record as of January 31, 1997.
For the first quarter ended December 31, 1996, Fidelity earned
$834,000, or $0.30 per fully diluted share, compared with $0.23 per share in
the first quarter last year, an increase of 30.4 percent. The increase in
earnings was primarily the result of higher interest income on loans
receivable, which was $7.0 million for the quarter, up 27.3 percent from one
year ago. Interest-earning assets at December 31, 1996 were $473.8 million,
compared with $391.8 million in 1995, a 20.9 percent increase.
"The quarter's results show that our efforts to grow earning assets have
paid off," said Raymond S. Stolarczyk, chairman and chief executive officer.
"In this relatively stable rate environment, the loans that we've added to our
portfolio and the controls we've placed on expenses are having the desired
impact on earnings. I'm pleased with our progress."
The bank's efforts to grow its retail franchise also continued. In the
first quarter, deposits grew $24.5 million to $327.4 million at December 31,
1996. Fidelity's two newest offices, in Chicago and Schaumburg, contributed
significantly to the increase in deposits. Both offices have attracted more
customer deposits than originally projected, and are operating profitably in a
shorter-than-expected time frame.
"We're succeeding in our strategy to grow the bank by entering new
markets, while at the same time attracting more customers from our existing
market areas," Stolarczyk said.
Interest expense on deposits and borrowed funds for the first quarter was
$5.3 million, up from $4.2 million one year ago. Both total deposits and
borrowed funds were up significantly for the quarter from one year ago.
Although interest expense on deposits can be expected to increase as customer
relationships are added, expenses on borrowed funds may decrease as borrowings
are reduced. Despite the increase in interest expense, net interest income
before provision for loan losses for the quarter was up 11.9 percent, or
$377,000 from one year ago. Net interest margin was 3.03 percent for the
quarter ended December 31, 1996, compared with 3.30 percent last year.
The company's ratio of operating expenses to average assets reflected
continued improvement in the first quarter, falling to 1.99 percent, from
2.23 percent last year. Stolarczyk attributed the improvement to growth in
earning assets and only modest increases in general and administrative
expenses.
On November 26, 1996, the company completed its sixth share repurchase
program. As a component of its strategy to build shareholder value, the
company has repurchased a total of 1,002,472 shares since its public offering,
at an average cost of $14.03 through December 31, 1996.
"We have a commitment to shareholders, which I believe can be seen in the
earnings that we've delivered, the growth that we've achieved, the efficient
operations we've managed and the shares that we've repurchased," Stolarczyk
said. "One of our rewards has been a steadily increasing book value, which
was $17.67 at December 31, 1996, compared with $17.04 per share at
September 30, 1996," 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."
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)
Assets December 31, September 30,
1996 1996
(unaudited)
Cash and due from banks $2,109 3,848
Interest-bearing deposits 673 225
Federal funds sold 200 200
Investment in dollar-denominated
mutual funds, at fair value 3,147 3,146
FHLB of Chicago stock 5,795 5,795
Mortgage-backed securities held
to maturity, at amortized cost
(approximate market value of
$21,243 at December 31, 1996
and $21,766 at
September 30, 1996) 20,989 21,673
Investment securities available
for sale, at fair value 77,519 78,104
Loans receivable, net of allowance
for loan losses of $847 at
December 31, 1996 and $810 at
September 30, 1996 365,509 354,255
Accrued interest receivable 3,032 3,199
Real estate in foreclosure 86 97
Premises and equipment 3,691 3,780
Deposit base intangible 144 158
Other assets 1,212 1,382
Total $484,106 475,862
Liabilities and Stockholders' Equity
Liabilities
Deposits 327,441 302,934
Borrowed funds 97,600 115,300
Advance payments by borrowers
for taxes and insurance 4,131 1,953
Other liabilities 5,698 6,847
Total liabilities 434,870 427,034
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 2,786,578 and 2,866,108
shares at December 31, 1996 and
September 30, 1996, respectively 38 38
Additional paid-in capital 37,109 37,079
Retained earnings, substantially
restricted 28,517 27,851
Treasury stock, at cost (995,772
and 916,242 shares at December 31,
1996 and September 30, 1996,
respectively) (13,973) (12,619)
Common stock acquired by Employee
Stock Ownership Plan (1,662) (2,078)
Common stock acquired by Bank
Recognition and Retention Plans (644) (708)
Unrealized loss on investment
securities available for sale, less
applicable taxes (149) (735)
Total stockholders' equity 49,236 48,828
Total $484,106 475,862
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
(Dollars in thousands)
Three months ended December 31, 1996 and 1995
1996 1995
(unaudited)
Interest Income:
Loans receivable $6,966 5,473
Investment securities 1,505 1,429
Mortgage-backed securities 376 458
Interest earning deposits 10 22
Federal funds sold 3 22
Investment in mutual funds 42 3
Total 8,902 7,407
Interest Expense:
Deposits 3,874 3,462
Borrowed funds 1,472 766
Total 5,346 4,228
Net interest income before
provision for loan losses 3,556 3,179
Provision for loan losses 39 --
Net interest income after provision
for loan losses 3,517 3,179
Non-Interest Income:
Fees and commissions 112 96
Insurance and annuity commissions 101 134
Other 12 7
Total 225 237
Non-Interest Expense:
General and administrative expenses:
Salaries and employee benefits 1,279 1,219
Office occupancy and equipment 296 299
Data processing 114 110
Advertising and promotions 165 131
Federal deposit insurance premiums 158 161
Other 364 283
Total general and administrative
expenses 2,376 2,203
Amortization of intangible 14 16
Total 2,390 2,219
Income before income taxes 1,352 1,197
Income tax expense 518 465
Net income $834 732
Earnings per share - primary and
fully diluted $0.30 0.23
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights
Dollars in thousands (except for book value and earnings per share)
December 31, 1996 September 30, 1996
Selected Financial Highlights:
Total assets $484,106 475,862
Interest-earning assets 473,832 463,398
Loans receivable, net (A) 365,509 354,255
Deposits 327,441 302,934
Borrowed funds 97,600 115,300
Non-performing assets 3,123 3,183
Non-performing loans 3,037 3,086
Allowance for loan losses 847 810
Stockholders' equity 49,236 48,828
Book value per share 17.67 17.04
Shares outstanding - actual number 2,786,578 2,866,108
Asset Quality Ratios:
Non-performing loans to loans
receivable, net (B) 0.83% 0.87%
Non-performing loans to total assets (B) 0.63% 0.65%
Non-performing assets to total
assets (B) 0.65% 0.67%
Allowance for loan losses to total
non-performing loans (B) 27.9% 26.3%
Allowance for loan losses to loans
receivable, net 0.23% 0.23%
Three Months Ended
December 31,
1996 1995
Selected Operating Activities (annualized):
Return on average assets 0.69% 0.74%
Return on average equity 6.8% 5.5%
Net interest rate spread during period 2.47% 2.57%
Net interest margin 3.03% 3.30%
Net interest income to operating expense 149% 143%
Operating expenses to average assets 1.99% 2.23%
Primary earnings per share $0.30 $0.23
Fully diluted earnings per share $0.30 $0.23
(A) The loans receivable portfolio includes $2.0 million of Bennett
Funding Group commercial equipment leases December 31, 1996 and September 30,
1996.
(B) The non-performing loans include $2.0 million of Bennett Funding
Group commercial equipment leases.
SOURCE Fidelity Bancorp, Inc.
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CONTACT:
Raymond S. Stolarczyk, Chairman & CEO, or
Thomas E. Bentel, President & COO, or Jim Kinney, Sr. VP & CFO,
of Fidelity Bancorp, 773-736-4414
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