CHICAGO, April 21 /PRNewswire/ -- Fidelity Bancorp, Inc. (Nasdaq: FBCI),
the parent company of Fidelity Federal Savings Bank, today reported earnings
for the second quarter ended March 31, 1997. The company also announced that
its board of directors declared a quarterly dividend of $0.08 per share,
payable May 15, 1997 to shareholders of record as of April 30, 1997.
For the quarter ended March 31, 1997, net income was $997,000, compared
with $784,000 for the same quarter a year ago, an increase of 27.2 percent.
Earnings per fully diluted share for the quarter were $0.36 per share, up
$0.10 per share, or 38.5 percent from the second quarter of 1996.
For the first six months of the fiscal year, Fidelity reported similar
gains in net income and earnings per share. For the six months ended
March 31, 1997, Fidelity's net income was $1.8 million, compared with
$1.5 million for the first six months of 1996. Earnings per fully diluted
share for the first six months were $0.65 per share, up 32.7 percent from the
six-month period one year ago.
The dramatic growth in earnings for the quarter and six months was
primarily due to greater interest income. Income from loans receivable, the
chief contributor to interest income, was $7.1 million for the quarter ended
March 31, 1997, up 23.7 percent from the prior year.
"The combination of an increase in earning assets and relief in Federal
deposit insurance premiums has really paid off this fiscal year. Shareholders
have been rewarded with a sizeable increase in earnings per share," said
Raymond S. Stolarczyk, chairman and chief executive officer.
Growth in Fidelity's assets and liabilities continued. Loans receivable,
net of allowance for loan losses, grew at an annualized growth rate of
9.8 percent during the first half of fiscal 1997 to $371.5 million at
March 31, 1997.
Deposits grew at an annualized growth rate of 18.1 percent, ending the
first six months at $330.4 million. Growth in deposits for the quarter was
the result of the promotion of transaction accounts, including the
introduction of a new line of checking accounts. The increase in deposits
contributed to greater interest expense on deposits and borrowings for the
quarter, which was $5.2 million, compared with $4.2 million the previous year.
"The acquisition of new deposits has allowed Fidelity to fund a higher
number of loans with deposits and to pay down more rate-sensitive borrowings,"
said Thomas E. Bentel, president and chief operating officer. "However,
maintaining our current deposit growth rate at acceptable costs for the
remainder of this year will be a challenge in a rising rate environment."
The company's ratio of operating expenses to average assets showed
continued improvement, ending the quarter at 1.98 percent, compared with
2.18 percent in 1996. Return on equity for the quarter ended March 31, 1997
was 7.9 percent, considerably improved from 5.9 percent the previous year.
"By many standards and measures, we have shown good results this quarter,"
said Stolarczyk. "We're achieving growth at satisfactory expense levels and
returning good value to our shareholders," 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 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 March 31, September 30,
1997 1996
(unaudited)
Cash and due from banks $1,194 3,848
Interest-bearing deposits 933 225
Federal funds sold 200 200
Investment in mutual funds, at fair value 3,149 3,146
FHLB of Chicago stock 5,795 5,795
Mortgage-backed securities held to maturity,
at amortized cost (approximate fair value
of $19,897 at March 31, 1997 and $21,766
at September 30, 1996) 19,891 21,673
Investment securities available for sale,
at fair value 75,227 78,104
Loans receivable, net of allowance for
loan losses of $843 at March 31, 1997 and
$810 at September 30, 1996 371,530 354,255
Accrued interest receivable 3,173 3,199
Real estate in foreclosure -- 97
Premises and equipment 3,614 3,780
Deposit base intangible 130 158
Other assets 1,174 1,382
Total $486,010 475,862
Liabilities and Stockholders' Equity
Liabilities
Deposits 330,383 302,934
Borrowed funds 97,100 115,300
Advance payments by borrowers for
taxes and insurance 3,408 1,953
Other liabilities 5,598 6,847
Total liabilities 436,489 427,034
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 March 31, 1997 and
September 30, 1996, respectively 38 38
Additional paid-in capital 37,198 37,079
Retained earnings, substantially restricted 29,291 27,851
Treasury stock, at cost (990,372 and 916,242
shares at March 31, 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 (580) (708)
Unrealized loss on investment securities
available for sale, less applicable taxes (867) (735)
Total stockholders' equity 49,521 48,828
Total $486,010 475,862
FIDELITY BANCORP and SUBSIDIARY
Consolidated Statements of Earnings
Dollars in thousands (except for earnings per share)
Three Months ended Six Months ended
March 31, March 31,
1997 1996 1997 1996
(unaudited)
Interest Income:
Loans receivable $7,064 5,710 14,030 11,183
Investment securities 1,470 1,314 2,975 2,743
Mortgage-backed securities 359 437 735 895
Interest earning deposits 9 18 19 40
Federal funds sold 2 11 5 33
Investment in mutual funds 40 3 82 6
Total 8,944 7,493 17,846 14,900
Interest Expense:
Deposits 3,924 3,532 7,798 6,994
Borrowed funds 1,305 665 2,777 1,431
Total 5,229 4,197 10,575 8,425
Net interest income before
provision for loan losses 3,715 3,296 7,271 6,475
Provision for loan losses -- 80 39 80
Net interest income after
provision for loan losses 3,715 3,216 7,232 6,395
Non-Interest Income:
Fees and commissions 90 100 202 196
Insurance and annuity
commissions 189 162 290 296
Other 16 14 28 21
Total 295 276 520 513
Non-Interest Expense:
General and administrative
expenses:
Salaries and employee
benefits 1,394 1,200 2,673 2,419
Office occupancy and
equipment 302 296 598 595
Data processing 127 116 241 226
Advertising and promotions 173 108 338 239
Federal deposit insurance
premiums 50 168 208 329
Other 335 307 699 590
Total general and
administrative expenses 2,381 2,195 4,757 4,398
Amortization of intangible 14 16 28 32
Total 2,395 2,211 4,785 4,430
Income before income taxes 1,615 1,281 2,967 2,478
Income tax expense 618 497 1,136 962
Net income $997 784 1,831 1,516
Earnings per share - primary $0.36 0.26 0.66 0.49
Earnings per share - fully
diluted $0.36 0.26 0.65 0.49
FIDELITY BANCORP and SUBSIDIARY
Financial Highlights
Dollars in thousands (except for book value and earnings per share)
March 31, 1997 September 30, 1996
(unaudited)
Selected Financial Highlights:
Total assets $486,010 475,862
Interest-earning assets 476,725 463,398
Loans receivable, net (A) 371,530 354,255
Deposits 330,383 302,934
Borrowed funds 97,100 115,300
Non-performing assets 3,415 3,183
Non-performing loans 3,415 3,086
Allowance for loan losses 843 810
Stockholders' equity 49,521 48,828
Book value per share outstanding 17.74 17.04
Shares outstanding - actual number 2,791,978 2,866,108
Asset Quality Ratios:
Non-performing loans to loans
receivable, net (B) 0.92% 0.87%
Non-performing loans to total assets (B) 0.70% 0.65%
Non-performing assets to total assets (B) 0.70% 0.67%
Allowance for loan losses to total
non-performing loans (B) 24.7% 26.3%
Allowance for loan losses to loans
receivable, net 0.23% 0.23%
Three Months ended Six Months ended
March 31, March 31,
1997 1996 1997 1996
(unaudited)
Selected Operating Activities (annualized):
Return on average assets 0.82% 0.77% 0.76% 0.75%
Return on average equity 7.9% 5.9% 7.4% 5.7%
Net interest rate spread
during period 2.56% 2.65% 2.52% 2.61%
Net interest margin 3.14% 3.35% 3.09% 3.33%
Net interest income to
operating expense 155% 149% 152% 146%
Operating expenses to
average assets 1.98% 2.18% 1.98% 2.21%
Primary earnings per share $0.36 $0.26 $0.66 $0.49
Fully diluted earnings
per share $0.36 $0.26 $0.65 $0.49
(A) The loans receivable portfolio includes $2.0 million of Bennett
Funding Group commercial equipment leases at March 31, 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, or
Thomas E. Bentel, President & COO, or Jim Kinney, Sr. VP & CFO,
of Fidelity Bancorp, 773-736-6471
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