CHICAGO, July 21 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
of $0.37 per fully diluted share for the quarter ended June 30, 1997, a
32.1 percent increase from $0.28 per share in the same period one year ago.
The company also announced its board of directors declared a quarterly
dividend of $0.08 per share, payable August 15, 1997 to shareholders of record
as of July 31, 1997.
For the quarter ended June 30, 1997, the company reported record quarterly
net income of $1.0 million, compared with $0.8 million for the same period in
1996, a 23.6 percent increase. For the nine months ended June 30, 1997,
similar gains in income and earnings per share were achieved. Earnings per
fully diluted share for the nine month period were $1.02, compared with
$0.77 in 1996, a 32.5 percent increase. Net income for the nine months ended
June 30, 1997 increased 21.8 percent to $2.9 million from $2.4 million in
1996.
The increase in earnings for the quarter and nine months was primarily the
result of higher interest income. Income from loans receivable for the
quarter ended June 30, 1997 was $7.1 million, compared with $6.1 million in
the third quarter of 1996. For the nine month period, income from loans
receivable was $21.2 million, compared with $17.3 million in 1996, an increase
of 22.6 percent. Higher non-interest income in the third quarter also
contributed to an increase in earnings. Fees from insurance and annuity
commissions grew dramatically during the quarter, resulting in a 40.0 percent
increase in non-interest income for the quarter. In addition, a decrease in
Federal deposit insurance premium expense for the quarter and nine months
contributed to the earnings increase.
"Growth in earning assets and earnings per share has been on target since
going public," said Raymond S. Stolarczyk, chairman and chief executive
officer. "With record net income and earnings this quarter, we continue to
hit the mark. We are demonstrating that our loan, deposit and fee income
generating strategies are working."
Loans and deposits, Fidelity's primary lines of business, were up in the
third quarter. Loans receivable, net of allowance for loan losses, increased
at an annualized growth rate of 10.0 percent to $380.7 million at
June 30, 1997.
Compared with previous quarters, deposit growth slowed slightly in the
third quarter. At June 30, 1997, deposits were $335.3 million, an annualized
increase of 14.3 percent.
"Maintaining deposit growth at acceptable interest costs became more
difficult in the third quarter," said Thomas E. Bentel, president and chief
operating officer. "However, we are pleased that each Fidelity branch office
contributed to the deposit increase, and that a good portion of the growth was
in transaction accounts."
During the third quarter, non-performing assets increased slightly. Non-
performing assets at June 30, 1997 amounted to $3.9 million total, consisting
of $1.9 million of loans and $2.0 million of Bennett Funding Group leases.
The $1.9 million amount is up $0.4 million from last quarter because of three
additional residential mortgage loans that were non-performing at the end of
the quarter. Management believes it has reserved sufficiently for these non-
performing assets.
With the exception of a slight decline in asset quality ratios as
explained above, other indicators of financial performance showed improvement
during the quarter. Specifically, the company's ratio of operating expenses
to average assets improved to 1.88 percent at June 30, 1997 from 2.03 percent
in 1996. The company's higher earnings and efforts to control costs
contributed to an increase in return on average equity, which was 8.1 percent
for the quarter ended June 30, 1997, compared with 6.4 percent for the same
period one year ago. Book value per share at June 30, 1997 was $18.22,
compared with $16.99 in 1996.
"I am very pleased with our performance this past quarter, and I believe
shareholders will be pleased to see another quarter with steady improvements
in earnings and book value per share," said Stolarczyk. "The quarter's
results reflect our continuing commitment to enhancing shareholder value."
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.
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Financial Condition
Dollars in thousands
Assets June 30, September 30,
1997 1996
(unaudited)
Cash and due from banks $ 885 3,848
Interest-bearing deposits 640 225
Federal funds sold 7,000 200
Investment in dollar-denominated mutual
funds, at fair value 4,140 3,146
FHLB of Chicago stock 5,175 5,795
Mortgage-backed securities held to maturity,
at amortized cost (approximate fair value
of $18,857 at June 30, 1997 and $21,766
at September 30, 1996) 18,702 21,673
Investment securities available for sale,
at fair value 64,745 78,104
Loans receivable, net of allowance for
loan losses of $857 at June 30, 1997 and
$810 at September 30, 1996 380,733 354,255
Accrued interest receivable 2,924 3,199
Real estate in foreclosure 109 97
Premises and equipment 3,566 3,780
Deposit base intangible 119 158
Other assets 1,105 1,382
Total $489,843 475,862
Liabilities and Stockholders' Equity
Liabilities
Deposits 335,347 302,934
Borrowed funds 91,500 115,300
Advance payments by borrowers for taxes
and insurance 4,685 1,953
Other liabilities 7,430 6,847
Total liabilities 438,962 427,034
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
2,791,978 and 2,866,108 shares at
June 30, 1997 and September 30, 1996,
respectively 38 38
Additional paid-in capital 37,293 37,079
Retained earnings, substantially restricted 30,100 27,851
Treasury stock, at cost (990,372 and
916,242 shares at June 30, 1997 and
September 30, 1996, respectively) (13,897) (12,619)
Common stock acquired by Employee Stock
Ownership Plan (1,662) (2,078)
Common stock acquired by Bank Recognition
and Retention Plans (516) (708)
Unrealized loss on investment securities
available for sale, less applicable taxes (475) (735)
Total stockholders' equity 50,881 48,828
Total $489,843 475,862
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months Nine Months
ended June 30, ended June 30,
1997 1996 1997 1996
(unaudited)
Interest Income:
Loans receivable $7,130 6,076 21,160 17,259
Investment securities 1,450 1,519 4,425 4,262
Mortgage-backed securities 340 415 1,075 1,310
Interest earning deposits 16 13 35 53
Federal funds sold 6 3 11 36
Investment in mutual funds 42 27 124 33
Total 8,984 8,053 26,830 22,953
Interest Expense:
Deposits 4,022 3,471 11,820 10,465
Borrowed funds 1,364 1,178 4,141 2,609
Total 5,386 4,649 15,961 13,074
Net interest income before
provision for loan losses 3,598 3,404 10,869 9,879
Provision for loan losses 15 10 54 90
Net interest income after
provision for loan losses 3,583 3,394 10,815 9,789
Non-Interest Income:
Fees and commissions 85 87 287 283
Insurance and annuity
commissions 192 105 482 401
Other 17 18 45 39
Total 294 210 814 723
Non-Interest Expense:
General and administrative
expenses:
Salaries and employee
benefits 1,343 1,215 4,016 3,634
Office occupancy and
equipment 305 302 903 897
Data processing 116 110 357 336
Advertising and promotions 130 94 468 333
Federal deposit insurance
premiums 59 170 267 499
Other 334 332 1,034 922
Total general and
administrative expenses 2,287 2,223 7,045 6,621
Amortization of intangible 12 16 39 48
Total 2,299 2,239 7,084 6,669
Income before income taxes 1,578 1,365 4,545 3,843
Income tax expense 546 530 1,682 1,492
Net income $1,032 835 2,863 2,351
Earnings per share - primary $0.37 0.28 1.02 0.78
Earnings per share -
fully diluted $0.37 0.28 1.02 0.77
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights
Dollars in thousands (except for book value and earnings per share)
June 30, 1997 September 30, 1996
(unaudited)
Selected Financial Highlights:
Total assets $489,843 475,862
Interest-earning assets 481,135 463,398
Loans receivable, net(A) 380,733 354,255
Deposits 335,347 302,934
Borrowed funds 91,500 115,300
Non-performing assets 3,939 3,183
Non-performing loans 3,830 3,086
Allowance for loan losses 857 810
Stockholders' equity 50,881 48,828
Book value per share 18.22 17.04
Shares outstanding - actual number 2,791,978 2,866,108
Asset Quality Ratios:
Non-performing loans to
loans receivable, net(B) 1.01% 0.87%
Non-performing loans to total assets(B) 0.78% 0.65%
Non-performing assets to total assets(B) 0.80% 0.67%
Allowance for loan losses to total
non-performing loans(B) 22.4% 26.3%
Allowance for loan losses to
loans receivable, net 0.23% 0.23%
Three Months Nine Months
ended June 30, ended June 30,
1997 1996 1997 1996
(unaudited)
Selected Operating Activities
(annualized):
Return on average assets 0.84% 0.76% 0.79% 0.75%
Return on average equity 8.1% 6.4% 7.6% 5.9%
Net interest rate spread
during period 2.42% 2.55% 2.49% 2.59%
Net interest margin 3.00% 3.17% 3.06% 3.27%
Net interest income to
operating expenses 157% 152% 153% 148%
Operating expenses to
average assets 1.88% 2.03% 1.95% 2.14%
Primary earnings per share $0.37 $0.28 $1.02 $0.78
Fully diluted earnings
per share $0.37 $0.28 $1.02 $0.77
(A) -- The loans receivable portfolio includes $2.0 million of Bennett
Funding Group commercial equipment leases at June 30, 1997 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, Thomas
E. Bentel, President & COO, or Jim Kinney, Sr. VP & CFO, of
Fidelity, 773-736-4414
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