Fidelity Bancorp, Inc. Announces Second Quarter Earnings And Quarterly Dividend

Apr 19, 2001, 01:00 ET from Fidelity Bancorp, Inc.

    PITTSBURGH, April 19 /PRNewswire/ --
 Fidelity Bancorp, Inc. of Pittsburgh, Pennsylvania (Nasdaq:   FSBI), the holding
 company for Fidelity Bank, today announced second quarter earnings for the
 three-month period ending March 31, 2001.  Net income for the period was
 $906,000, or $.43 per share (diluted), compared to $1.01 million or $.48 per
 share (diluted) in the prior year quarter.  The Company's annualized return on
 average assets was .66% and return on average equity was 10.73% compared to
 .81% and 16.33% respectively, for the same period in the prior year.
     For the six-month period ending March 31, 2001, net income was
 $1.79 million, or $.84 per share (diluted), compared to $2.08 million or
 $.98 per share (diluted) in the prior year period.  Annualized return on
 assets was .65% and return on equity was 11.10% for the fiscal 2001 period,
 compared to .87% and 16.65%, respectively, for the same period in the prior
 year.
     Net interest income before provision for loan losses increased $33,000 or
 1.1% to $3.10 million for the three-month period ending March 31, 2001,
 compared to $3.07 million in the prior year period.  For the six months ended
 March 31, 2001, net interest income before provision for loan losses decreased
 $242,000 or 3.8% to $6.05 million, compared to $6.29 million in the prior year
 period.  An increase in net loans outstanding was primarily responsible for
 the increase in net interest income before provision for loan losses for the
 three-month period.  The increasing rate environment experienced throughout
 the year 2000 reduced the Company's net interest rate spread, thus accounting
 for the decrease for the six-month period.
     Total assets at March 31, 2001 were $555.7 million compared to
 $511.2 million at March 31, 2000, an increase of $44.6 million or 8.7%.  Net
 loans increased $38.0 million or 12.8% to $335.5 million at March 31, 2001,
 over the prior year amount of $297.5 million.  Savings and time deposits
 increased $32.5 million or 11.8% to $309.0 million at March 31, 2001, compared
 to $276.5 million in the prior year.  Federal Home Loan Bank advances and
 other borrowings increased $3.4 million or 1.8% to $196.1 million at March 31,
 2001, compared to $192.7 million in the prior year.  Balance sheet growth for
 the current fiscal period reflects the acquisition of Pennwood Bank in July
 2000.
     The Bank has maintained good asset quality as non-performing loans and
 real estate owned was .40% of total assets at March 31, 2001.  The allowance
 for loan losses was 146.1% of non-performing loans at March 31, 2001.  The
 provision for loan losses decreased to $110,000 and $200,000 for the three-
 and six-month periods ending March 31, 2001, respectively, down from $120,000
 and $240,000 in the comparable prior year period.
     Other income decreased $13,000 or 2.7% to $470,000 for the quarter ended
 March 31, 2001 compared to $483,000 for the same period last year.  For the
 six months ended March 31, 2001, other income was $918,000, an increase of
 $3,000 or .3% over the prior year period.  Results of the current fiscal
 period include a gain on the sale of investments and mortgage-backed
 securities of $30,000 versus a gain of $84,000 for the same period last year.
 The decrease in gains on investment and mortgage-backed security sales was
 partially offset by an increase in loan service charges and fees and other
 operating income.
     Operating expenses for the quarter ended March 31, 2001, increased
 $270,000 or 13.3% to $2.30 million compared to $2.03 million for the
 comparable prior year period.  For the six-month period in this fiscal year,
 operating expenses increased $389,000 or 9.5% to $4.47 million, compared to
 $4.08 million in the prior year period.  The increase in operating expenses is
 partially attributed to the operation of the Bellevue branch obtained in the
 Pennwood acquisition.
     Provision for income taxes decreased $133,000 or 34.2% to $256,000 for the
 quarter ended March 31, 2001 compared to $389,000 for same period last year.
 For the six months ended March 31, 2001, the provision for income taxes
 decreased $302,000 or 37.4% to $506,000 compared to $808,000 for the same
 period last year.  The decrease is attributed to reduced earnings and a
 reduced effective tax rate.
     Commenting on the Bank's performance, William L. Windisch, Chairman and
 Chief Executive Officer, said, "While earnings for the first half of this
 fiscal year are below the corresponding period last year, results are meeting
 our projections.  The impact of the combination of the current interest rate
 environment and increases in certain infrastructure costs is responsible for
 the lower earnings.  We anticipate results in the second half of the year will
 improve over the first six months."
 
     COMMON STOCK DIVIDEND
     The Board of Directors of Fidelity Bancorp, Inc., yesterday declared a
 quarterly cash dividend of $.10 per share on the Company's common stock.  The
 dividend is payable May 31, 2001 to stockholders of record May 15, 2001.  This
 represents the 51st consecutive quarterly cash dividend paid to shareholders.
     The Company's filings with the Securities and Exchange Commission are
 available electronically on the Internet and can be found at
 www.sec.gov/cgi-bin/srch-edgar?0000769207.
 
     Statements contained in this news release which are not historical facts
 are forward-looking statements as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements are
 subject to risks and uncertainties which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by
 Fidelity Bancorp, Inc. with the Securities and Exchange Commission from time
 to time.
 
     Fidelity Bancorp, Inc. is the holding company of Fidelity Bank, a
 Pennsylvania chartered, FDIC-insured savings bank conducting business through
 ten offices in Allegheny and Butler counties.
 
     Fidelity Bancorp, Inc. and Subsidiaries
     Income Statement for the Three and Six Months Ended
     March 31, 2001 and 2000 - Unaudited
     (In thousands, except per share data)
 
                                        Three Months Ended   Six Months Ended
                                             March 31,           March 31,
 
                                          2001       2000     2001        2000
 
     Interest income:
        Loans                           $6,687     $5,665  $13,414     $11,197
        Mortgage-backed securities       1,415      1,536    2,856       3,084
        Investment securities            1,604      1,528    3,140       2,892
        Deposits with other
         institutions                       13          7       24          17
           Total interest income         9,719      8,736   19,434      17,190
 
     Interest expense:
        Savings deposits                 3,224      2,644    6,366       5,187
        Borrowed funds                   3,138      2,768    6,509       5,202
        Guaranteed preferred beneficial
           interest in Company's
           debentures                      256        256      512         512
           Total interest expense        6,618      5,668   13,387      10,901
 
     Net interest income before
      provision
      for loan losses                    3,101      3,068    6,047       6,289
     Provision for loan losses             110        120      200         240
     Net interest income after
      provision
      for loan losses                    2,991      2,948    5,847       6,049
     Other income:
        Loan service charges and fees       59         39      128          98
        Gain (loss) on sale of
         investment
         and mortgage-backed
         securities                         31         86       30          84
        Gain on sale of loans                4          3        4           5
        Deposit service charges and
         fees                              153        154      316         325
        Other operating income             223        201      440         403
           Total other income              470        483      918         915
 
     Operating expenses:
        Compensation and benefits        1,317      1,200    2,617       2,431
        Office occupancy and equipment     245        174      459         344
        Depreciation and amortization      158        146      315         287
        Federal insurance premiums          14         14       30          54
        (Gain)loss on real estate
         owned, net                          8          3        1          24
        Intangible amortization             29        -         57         -
        Other operating expenses           528        492      988         938
           Total operating expenses      2,299      2,029    4,467       4,078
 
     Income before income tax provision  1,162      1,402    2,298       2,886
     Income tax provision                  256        389      506         808
     Net income                           $906     $1,013   $1,792      $2,078
 
     Basic earnings per share            $0.43      $0.49    $0.86       $0.99
     Diluted earnings per share          $0.43      $0.48    $0.84       $0.98
 
 
 
     Balance Sheet (Unaudited)
     (In thousands, except share data)
 
                                        March 31,2001        September 30, 2000
 
     Assets:
        Cash and due from depository
         institutions                        $7,936                     $7,119
        Interest-earning demand deposits        419                      1,072
        Investment securities held-to-
         maturity                            15,174                      9,936
        Investment securities available-
         for-sale                            79,603                     74,062
        Mortgage-backed securities held-
         to-maturity                         20,627                     12,449
        Mortgage-backed securities
         available-for-sale                  67,473                     71,601
        Loans receivable, net               335,458                    337,438
        Loans held for sale                     860                        -
        Real estate owned                       224                        181
        Federal Home Loan Bank stock, at
         cost                                10,764                     10,764
        Accrued interest receivable           3,225                      3,143
        Office premises and equipment         5,537                      5,576
        Goodwill and other intangible
         assets                               1,669                      1,710
        Deferred tax assets                   1,478                      3,444
        Prepaid income taxes                    541                         35
        Prepaid expenses and sundry assets    4,721                      4,679
           Total assets                    $555,709                   $543,209
 
     Liabilities and Stockholders' Equity:
     Liabilities:
        Savings and time deposits          $309,041                   $290,631
        Federal Home Loan Bank advances     190,505                    202,885
        Other borrowings                        114                        396
        Guaranteed preferred beneficial
         interest in Company's debentures    10,250                     10,250
        Repurchase agreements                 5,471                      4,980
        Advance payments by borrowers for
         taxes and insurance                  2,760                      1,427
        Accrued interest payable              1,747                      2,050
        Other accrued expenses and sundry
         liabilities                          1,343                      1,003
           Total liabilities                521,231                    513,622
 
     Stockholders' equity:
        Common stock, $.01 par value per
         share, 10,000,000 shares authorized,
         2,224,480 and 2,212,336
         shares issued                           22                         22
        Treasury stock, 149,092 and
         117,232 shares                      (2,100)                    (1,680)
        Additional paid-in capital           14,645                     14,524
        Retained earnings - substantially
         restricted                          21,479                     20,106
        Accumulated other comprehensive
         income (loss), net of tax              432                     (3,385)
           Total stockholders' equity        34,478                     29,587
 
           Total liabilities and
            stockholders' equity           $555,709                   $543,209
 
 
 
     Other Data:
 
                                        At or For the Three Month Period Ended
 
                                                    March 31,
 
                                               2001             2000
 
     Annualized return on assets              0.66%            0.81%
     Annualized return on equity             10.73%           16.33%
     Equity to assets                         6.20%            5.09%
     Interest rate spread (tax equivalent)    2.32%            2.46%
     Net interest margin (tax equivalent)     2.50%            2.73%
     Non-interest expense to average
      assets                                  1.67%            1.62%
     Loan loss allowance to net loans         0.87%            0.86%
     Non-performing loans and real estate
       owned to total assets at end-of-
       period                                 0.40%            0.24%
 
 
                                        At or For the Six Month Period Ended
 
                                                    March 31,
 
                                               2001             2000
 
     Annualized return on assets              0.65%            0.87%
     Annualized return on equity             11.10%           16.65%
     Equity to assets                         6.20%            5.09%
     Interest rate spread (tax equivalent)    2.32%            2.65%
     Net interest margin (tax equivalent)     2.45%            2.83%
     Non-interest expense to average
      assets                                  1.63%            1.64%
     Loan loss allowance to net loans         0.87%            0.86%
     Non-performing loans and real estate
       owned to total assets at end-of-
       period                                 0.40%            0.24%
 
 

SOURCE Fidelity Bancorp, Inc.
    PITTSBURGH, April 19 /PRNewswire/ --
 Fidelity Bancorp, Inc. of Pittsburgh, Pennsylvania (Nasdaq:   FSBI), the holding
 company for Fidelity Bank, today announced second quarter earnings for the
 three-month period ending March 31, 2001.  Net income for the period was
 $906,000, or $.43 per share (diluted), compared to $1.01 million or $.48 per
 share (diluted) in the prior year quarter.  The Company's annualized return on
 average assets was .66% and return on average equity was 10.73% compared to
 .81% and 16.33% respectively, for the same period in the prior year.
     For the six-month period ending March 31, 2001, net income was
 $1.79 million, or $.84 per share (diluted), compared to $2.08 million or
 $.98 per share (diluted) in the prior year period.  Annualized return on
 assets was .65% and return on equity was 11.10% for the fiscal 2001 period,
 compared to .87% and 16.65%, respectively, for the same period in the prior
 year.
     Net interest income before provision for loan losses increased $33,000 or
 1.1% to $3.10 million for the three-month period ending March 31, 2001,
 compared to $3.07 million in the prior year period.  For the six months ended
 March 31, 2001, net interest income before provision for loan losses decreased
 $242,000 or 3.8% to $6.05 million, compared to $6.29 million in the prior year
 period.  An increase in net loans outstanding was primarily responsible for
 the increase in net interest income before provision for loan losses for the
 three-month period.  The increasing rate environment experienced throughout
 the year 2000 reduced the Company's net interest rate spread, thus accounting
 for the decrease for the six-month period.
     Total assets at March 31, 2001 were $555.7 million compared to
 $511.2 million at March 31, 2000, an increase of $44.6 million or 8.7%.  Net
 loans increased $38.0 million or 12.8% to $335.5 million at March 31, 2001,
 over the prior year amount of $297.5 million.  Savings and time deposits
 increased $32.5 million or 11.8% to $309.0 million at March 31, 2001, compared
 to $276.5 million in the prior year.  Federal Home Loan Bank advances and
 other borrowings increased $3.4 million or 1.8% to $196.1 million at March 31,
 2001, compared to $192.7 million in the prior year.  Balance sheet growth for
 the current fiscal period reflects the acquisition of Pennwood Bank in July
 2000.
     The Bank has maintained good asset quality as non-performing loans and
 real estate owned was .40% of total assets at March 31, 2001.  The allowance
 for loan losses was 146.1% of non-performing loans at March 31, 2001.  The
 provision for loan losses decreased to $110,000 and $200,000 for the three-
 and six-month periods ending March 31, 2001, respectively, down from $120,000
 and $240,000 in the comparable prior year period.
     Other income decreased $13,000 or 2.7% to $470,000 for the quarter ended
 March 31, 2001 compared to $483,000 for the same period last year.  For the
 six months ended March 31, 2001, other income was $918,000, an increase of
 $3,000 or .3% over the prior year period.  Results of the current fiscal
 period include a gain on the sale of investments and mortgage-backed
 securities of $30,000 versus a gain of $84,000 for the same period last year.
 The decrease in gains on investment and mortgage-backed security sales was
 partially offset by an increase in loan service charges and fees and other
 operating income.
     Operating expenses for the quarter ended March 31, 2001, increased
 $270,000 or 13.3% to $2.30 million compared to $2.03 million for the
 comparable prior year period.  For the six-month period in this fiscal year,
 operating expenses increased $389,000 or 9.5% to $4.47 million, compared to
 $4.08 million in the prior year period.  The increase in operating expenses is
 partially attributed to the operation of the Bellevue branch obtained in the
 Pennwood acquisition.
     Provision for income taxes decreased $133,000 or 34.2% to $256,000 for the
 quarter ended March 31, 2001 compared to $389,000 for same period last year.
 For the six months ended March 31, 2001, the provision for income taxes
 decreased $302,000 or 37.4% to $506,000 compared to $808,000 for the same
 period last year.  The decrease is attributed to reduced earnings and a
 reduced effective tax rate.
     Commenting on the Bank's performance, William L. Windisch, Chairman and
 Chief Executive Officer, said, "While earnings for the first half of this
 fiscal year are below the corresponding period last year, results are meeting
 our projections.  The impact of the combination of the current interest rate
 environment and increases in certain infrastructure costs is responsible for
 the lower earnings.  We anticipate results in the second half of the year will
 improve over the first six months."
 
     COMMON STOCK DIVIDEND
     The Board of Directors of Fidelity Bancorp, Inc., yesterday declared a
 quarterly cash dividend of $.10 per share on the Company's common stock.  The
 dividend is payable May 31, 2001 to stockholders of record May 15, 2001.  This
 represents the 51st consecutive quarterly cash dividend paid to shareholders.
     The Company's filings with the Securities and Exchange Commission are
 available electronically on the Internet and can be found at
 www.sec.gov/cgi-bin/srch-edgar?0000769207.
 
     Statements contained in this news release which are not historical facts
 are forward-looking statements as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements are
 subject to risks and uncertainties which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by
 Fidelity Bancorp, Inc. with the Securities and Exchange Commission from time
 to time.
 
     Fidelity Bancorp, Inc. is the holding company of Fidelity Bank, a
 Pennsylvania chartered, FDIC-insured savings bank conducting business through
 ten offices in Allegheny and Butler counties.
 
     Fidelity Bancorp, Inc. and Subsidiaries
     Income Statement for the Three and Six Months Ended
     March 31, 2001 and 2000 - Unaudited
     (In thousands, except per share data)
 
                                        Three Months Ended   Six Months Ended
                                             March 31,           March 31,
 
                                          2001       2000     2001        2000
 
     Interest income:
        Loans                           $6,687     $5,665  $13,414     $11,197
        Mortgage-backed securities       1,415      1,536    2,856       3,084
        Investment securities            1,604      1,528    3,140       2,892
        Deposits with other
         institutions                       13          7       24          17
           Total interest income         9,719      8,736   19,434      17,190
 
     Interest expense:
        Savings deposits                 3,224      2,644    6,366       5,187
        Borrowed funds                   3,138      2,768    6,509       5,202
        Guaranteed preferred beneficial
           interest in Company's
           debentures                      256        256      512         512
           Total interest expense        6,618      5,668   13,387      10,901
 
     Net interest income before
      provision
      for loan losses                    3,101      3,068    6,047       6,289
     Provision for loan losses             110        120      200         240
     Net interest income after
      provision
      for loan losses                    2,991      2,948    5,847       6,049
     Other income:
        Loan service charges and fees       59         39      128          98
        Gain (loss) on sale of
         investment
         and mortgage-backed
         securities                         31         86       30          84
        Gain on sale of loans                4          3        4           5
        Deposit service charges and
         fees                              153        154      316         325
        Other operating income             223        201      440         403
           Total other income              470        483      918         915
 
     Operating expenses:
        Compensation and benefits        1,317      1,200    2,617       2,431
        Office occupancy and equipment     245        174      459         344
        Depreciation and amortization      158        146      315         287
        Federal insurance premiums          14         14       30          54
        (Gain)loss on real estate
         owned, net                          8          3        1          24
        Intangible amortization             29        -         57         -
        Other operating expenses           528        492      988         938
           Total operating expenses      2,299      2,029    4,467       4,078
 
     Income before income tax provision  1,162      1,402    2,298       2,886
     Income tax provision                  256        389      506         808
     Net income                           $906     $1,013   $1,792      $2,078
 
     Basic earnings per share            $0.43      $0.49    $0.86       $0.99
     Diluted earnings per share          $0.43      $0.48    $0.84       $0.98
 
 
 
     Balance Sheet (Unaudited)
     (In thousands, except share data)
 
                                        March 31,2001        September 30, 2000
 
     Assets:
        Cash and due from depository
         institutions                        $7,936                     $7,119
        Interest-earning demand deposits        419                      1,072
        Investment securities held-to-
         maturity                            15,174                      9,936
        Investment securities available-
         for-sale                            79,603                     74,062
        Mortgage-backed securities held-
         to-maturity                         20,627                     12,449
        Mortgage-backed securities
         available-for-sale                  67,473                     71,601
        Loans receivable, net               335,458                    337,438
        Loans held for sale                     860                        -
        Real estate owned                       224                        181
        Federal Home Loan Bank stock, at
         cost                                10,764                     10,764
        Accrued interest receivable           3,225                      3,143
        Office premises and equipment         5,537                      5,576
        Goodwill and other intangible
         assets                               1,669                      1,710
        Deferred tax assets                   1,478                      3,444
        Prepaid income taxes                    541                         35
        Prepaid expenses and sundry assets    4,721                      4,679
           Total assets                    $555,709                   $543,209
 
     Liabilities and Stockholders' Equity:
     Liabilities:
        Savings and time deposits          $309,041                   $290,631
        Federal Home Loan Bank advances     190,505                    202,885
        Other borrowings                        114                        396
        Guaranteed preferred beneficial
         interest in Company's debentures    10,250                     10,250
        Repurchase agreements                 5,471                      4,980
        Advance payments by borrowers for
         taxes and insurance                  2,760                      1,427
        Accrued interest payable              1,747                      2,050
        Other accrued expenses and sundry
         liabilities                          1,343                      1,003
           Total liabilities                521,231                    513,622
 
     Stockholders' equity:
        Common stock, $.01 par value per
         share, 10,000,000 shares authorized,
         2,224,480 and 2,212,336
         shares issued                           22                         22
        Treasury stock, 149,092 and
         117,232 shares                      (2,100)                    (1,680)
        Additional paid-in capital           14,645                     14,524
        Retained earnings - substantially
         restricted                          21,479                     20,106
        Accumulated other comprehensive
         income (loss), net of tax              432                     (3,385)
           Total stockholders' equity        34,478                     29,587
 
           Total liabilities and
            stockholders' equity           $555,709                   $543,209
 
 
 
     Other Data:
 
                                        At or For the Three Month Period Ended
 
                                                    March 31,
 
                                               2001             2000
 
     Annualized return on assets              0.66%            0.81%
     Annualized return on equity             10.73%           16.33%
     Equity to assets                         6.20%            5.09%
     Interest rate spread (tax equivalent)    2.32%            2.46%
     Net interest margin (tax equivalent)     2.50%            2.73%
     Non-interest expense to average
      assets                                  1.67%            1.62%
     Loan loss allowance to net loans         0.87%            0.86%
     Non-performing loans and real estate
       owned to total assets at end-of-
       period                                 0.40%            0.24%
 
 
                                        At or For the Six Month Period Ended
 
                                                    March 31,
 
                                               2001             2000
 
     Annualized return on assets              0.65%            0.87%
     Annualized return on equity             11.10%           16.65%
     Equity to assets                         6.20%            5.09%
     Interest rate spread (tax equivalent)    2.32%            2.65%
     Net interest margin (tax equivalent)     2.45%            2.83%
     Non-interest expense to average
      assets                                  1.63%            1.64%
     Loan loss allowance to net loans         0.87%            0.86%
     Non-performing loans and real estate
       owned to total assets at end-of-
       period                                 0.40%            0.24%
 
 SOURCE  Fidelity Bancorp, Inc.