Welcome!

News Feed Item

Fidelity Bancorp, Inc. Announces Fourth Quarter and Year-End Earnings for Fiscal 2012

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%


Contact:
Mr. Richard G. Spencer
President and Chief Executive Officer
(412) 367-3303 ext. 3121
E-mail: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.