|By Marketwired .||
|November 21, 2012 04:06 PM EST||
PITTSBURGH, PA -- (Marketwire) -- 11/21/12 -- Fidelity Bancorp, Inc. of Pittsburgh, Pennsylvania (the "Company") (NASDAQ: FSBI), the holding company for Fidelity Bank, reported net income for the year ended September 30, 2012 of $806,000 or $.13 per diluted share, compared to net income of $1.535 million or $.37 per diluted share for the prior year. The $729,000 decrease in earnings for fiscal 2012 primarily reflects a decrease in net interest income of $925,000, an increase in the provision for loan losses of $375,000 and an increase in operating expenses of $832,000, partially offset by an increase in other income of $1.03 million (excluding impairment charges), and an increase in income tax benefit of $347,000. Other Than Temporary Impairment ("OTTI") charges were $1.5 million for both the fiscal years ended September 30, 2012 and 2011.
Net loss of $51,000 was recorded for the three-month period ending September 30, 2012, or $.05 per diluted share, compared to net income of $597,000, or $.16 per diluted share for the same period in the prior year. The $648,000 decrease in net income for the fourth quarter of fiscal 2012 primarily relates to a decrease in net interest income of $435,000 and an increase in operating expenses of $537,000, partially offset by an increase in other income of $150,000 and an increase in income tax benefit of $174,000. Operating expenses were impacted by merger related costs associated with the proposed merger agreement with WesBanco, Inc. announced on July 19, 2012.
Net interest income before provision for loan losses decreased to $13.9 million for the year ended September 30, 2012, compared to $14.8 million in the prior year. The decrease in net interest income before provision for loan losses for the fiscal year reflects lower net earning assets during the period, resulting in a decrease in the net interest spread caused by the average yield on interest-earning assets decreasing more than the average rate paid on interest-bearing liabilities. The Company's tax equivalent interest rate spread decreased to 2.32% for the year ending September 30, 2012 compared to 2.39% in the prior year.
Net interest income before provision for loan losses was $3.3 million for the three-months ended September 30, 2012, compared to $3.7 million in the prior year period. The decrease reflects lower net earning assets during the period, as well as a decrease in the net interest rate spread resulting from the average yield on interest-earning assets decreasing more than the average rate paid on interest-bearing liabilities.
The Company recorded a $1.575 million provision for loan losses for the year ended September 30, 2012, compared to $1.2 million in the prior year period, an increase of $375,000. For both the three-months ended September 30, 2012 and 2011, the Company recorded a $300,000 provision for loan losses. The provision for loan losses is charged to operations to bring the total allowance for loan losses to a level that reflects management's best estimate of the losses inherent in the portfolio. When determining the provision for loan losses, the company considers a number of factors some of which include specific credit reviews, non-performing, delinquency and charge-off trends, concentrations of credit, loan volume trends and broader local and national economic trends. Net charge-offs for fiscal 2012 were $2.8 million compared to $1.3 million for fiscal 2011. Non-performing loans increased to $7.3 million at September 30, 2012 compared to $6.8 million at September 30, 2011. Non-performing assets and foreclosed real estate were 2.23% of total assets at September 30, 2012 compared to 1.49% at September 30, 2011. The allowance for loan losses was 61.55% of non-performing loans and 1.37% of net loans at September 30, 2012, compared to 84.51% and 1.64%, respectively, at September 30, 2011.
Other income, excluding OTTI charges, increased $1.0 million or 22.0% to $5.7 million for the year ended September 30, 2012, compared to $4.7 million for the same period last year. Other income, excluding OTTI charges, was $1.7 million for the three-month period ended September 30, 2012, compared to $1.2 million in the prior year. The increase for the current fiscal year primarily reflects an increase in the gain on sales of loans of $512,000, an increase in loan service charges and fees of $204,000 and an increase in other income of $294,000. Partially offsetting these increases were decreases in deposit service charges and fees of $72,000. The increase for the three months ended September 30, 2012, as compared to the same period in the prior year, excluding OTTI charges, primarily reflects an increase in loan service charges and fees of $113,000, an increase in realized gain on sale of securities of $230,000, an increase in gain on sale of loans of $203,000 and an increase in other income of $61,000, partially offset by a decrease in deposit service charges and fees of $38,000.
OTTI charges recorded during the three-month period ending September 30, 2012 were $525,000, compared to $91,000 in the prior year period. The quarterly 2012 charges related to one corporate obligation. OTTI charges were $1.5 million during both the twelve-month periods ending September 30, 2012 and 2011. The impairment charges for the current fiscal year relate to the Company's holdings of a private label mortgage-backed security, a pooled trust preferred security, a corporate obligation and three common stocks of local financial institutions. The impairment charges in the prior year period related to the Company's holdings of five pooled trust preferred securities ("trups"), a single issue preferred security, a private label mortgage-backed security, and common stock of a local financial institution. The impairment charges on pooled trups for both periods resulted from several factors, including a downgrade in their credit ratings, failure to pass their principal coverage tests, indications of a break in yield, and the decline in the net present value of their projected cash flows. Management of the Company has deemed the impairment on the trups to be other-than-temporary based upon these factors and the duration and extent to which the market value has been less than cost, the inability to forecast a recovery in market value, and other factors concerning the issuers in the pooled securities. At September 30, 2012, the Company had holdings in 13 different trust preferred offerings, with a book value of $13.9 million. The cumulative net unrealized loss on these securities amounted to $5.8 million at September 30, 2012.
Operating expenses for the year ended September 30, 2012, increased $832,000 or 5.5% to $16.0 million compared to $15.1 million for the prior year. For the final three-month period in this fiscal year, operating expenses were $4.3 million compared to $3.8 million in the prior year period. The increase in operating expenses for the year ended September 30, 2012 is attributed to an increase in compensation and benefits expense of $190,000, an increase in office occupancy and equipment expense of $18,000, an increase in professional fees of $241,000, an increase in service bureau expense of $23,000 and an increase in other operating expenses of $605,000, partially offset by a decrease in depreciation and amortization of $35,000, a decrease in advertising expense of $55,000, and a decrease in federal deposit insurance premiums of $155,000. The increase for the three-month period ended September 30, 2012, as compared to the same period in the prior year, primarily reflects an increase in compensation and benefits of $97,000, an increase in professional fees of $249,000, and an increase in other expenses of $130,000. Operating expenses in fiscal 2012 were impacted by merger related costs associated with the proposed merger agreement with WesBanco, Inc. announced on July 19, 2012.
The Company had an income tax benefit of $211,000 for the fiscal year ended September 30, 2012, compared to a tax provision of $136,000 in the prior fiscal year. For the three months ended September 30, 2012, the Company had an income tax benefit of $29,000, compared to a tax expense of $145,000 for the same period last year. The tax benefits for the prior periods were significantly impacted by the impairment charges during the respective periods. The OTTI charges recorded in the prior periods caused pre-tax income to be lower than tax-exempt income; therefore a tax benefit was recorded.
Total assets at September 30, 2012 were $647.1 million, a decrease of $19.8 million as compared to assets of $666.9 as of September 30, 2011. Net loans outstanding decreased $13.6 million or 3.9% to $332.7 million at September 30, 2012, compared to September 30, 2011. The decline in the loan portfolio in fiscal 2012 resulted, to a large extent, from the decision to sell residential mortgage loans originated that did not meet certain interest rate levels, rather than retaining them in the portfolio. Savings and time deposits increased $14.6 million to $460.7 million at September 30, 2012 compared to $446.1 million at September 30, 2011. Borrowed funds were $127.9 million at September 30, 2012, a decrease of $36.5 million as compared to September 30, 2011. Stockholders' equity was $53.1 million at September 30, 2012 compared to $50.5 million at September 30, 2011.
The Company's filings with the Securities and Exchange Commission are available on-line through the Company's Internet website at www.fidelitybancorp-pa.com.
Fidelity Bancorp, Inc. is the holding company for Fidelity Bank, a Pennsylvania-chartered, FDIC-insured savings bank conducting business through thirteen offices in Allegheny and Butler counties.
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. and Subsidiaries Income Statement for the Three Months and Year Ended September 30, 2012 and 2011 (unaudited) (In thousands, except per share data) Three Months Ended Year Ended September 30, September 30, 2012 2011 2012 2011 ------------ ----------- ----------- ----------- Interest income $ 5,563 $ 6,493 $ 23,603 $ 26,710 Interest expense 2,250 2,745 9,712 11,894 ------------ ----------- ----------- ----------- Net interest income 3,313 3,748 13,891 14,816 Provision for loan losses 300 300 1,575 1,200 ------------ ----------- ----------- ----------- Net interest income after provision for loan losses 3,013 3,448 12,316 13,616 Noninterest income 1,221 1,071 4,232 3,176 Noninterest expense 4,314 3,777 15,953 15,121 ------------ ----------- ----------- ----------- Income (loss) before income taxes (80) 742 595 1,671 Income tax provision (benefit) (29) 145 (211) 136 ------------ ----------- ----------- ----------- Net income (loss) (51) 597 806 1,535 Preferred stock dividend (88) (88) (350) (350) Amortization of preferred stock discount (15) (15) (60) (60) ------------ ----------- ----------- ----------- Net income (loss) available to common stockholders $ (154) $ 494 $ 396 $ 1,125 ============ =========== =========== =========== Basic earnings (loss) per common share $ (0.05) $ 0.16 $ 0.13 $ 0.37 Diluted earnings (loss) per common share $ (0.05) $ 0.16 $ 0.12 $ 0.37 Net interest margin (tax equivalent) 2.24% 2.47% 2.32% 2.39% Annualized return on average assets 0.12% 0.36% 0.22% 0.22% Annualized return on average equity 1.55% 4.69% 3.06% 3.06% Balance Sheet Data (unaudited) (In thousands, except share data) September September 30, 2012 30, 2011 ------------ ----------- Total assets $ 647,077 $ 666,915 Cash and cash equivalents 38,429 24,856 Total investment securities 236,405 259,386 Loans receivable, net 332,676 346,285 Deposits 460,715 446,102 Borrowed funds (includes subordinated debt) 127,923 164,407 Stockholders' equity 53,080 50,491 Book value per common share $ 15.03 $ 14.24 Average equity to average assets 7.86% 7.34% Allowance for loan losses to loans receivable 1.37% 1.64% Non-performing assets to total assets 2.23% 1.49% Non-performing loans to total loans 2.17% 1.97%
Mr. Richard G. Spencer
President and Chief Executive Officer
(412) 367-3303 ext. 3121
E-mail: Email Contact
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 23, 2017 09:45 PM EDT Reads: 1,886
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 23, 2017 09:30 PM EDT Reads: 3,516
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Apr. 23, 2017 08:45 PM EDT Reads: 1,964
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 23, 2017 08:45 PM EDT Reads: 585
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 23, 2017 06:45 PM EDT Reads: 2,280
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Apr. 23, 2017 05:30 PM EDT Reads: 3,585
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Apr. 23, 2017 05:30 PM EDT Reads: 832
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Apr. 23, 2017 05:15 PM EDT Reads: 1,473
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 23, 2017 03:30 PM EDT Reads: 2,433
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
Apr. 23, 2017 03:30 PM EDT Reads: 3,275
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 23, 2017 03:30 PM EDT Reads: 1,918
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
Apr. 23, 2017 03:15 PM EDT Reads: 1,845
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyor belt between the Software Factory and production stages. Artifacts are ...
Apr. 23, 2017 03:15 PM EDT Reads: 783
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
Apr. 23, 2017 02:45 PM EDT Reads: 1,411
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 23, 2017 02:15 PM EDT Reads: 2,365