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Fidelity Bancorp Inc. (FSBI) filed Annual Report for the period ended 2011-09-30.
Fidelity Bancorp Inc. has a market cap of $27.4 million; its shares were traded at around $8.96 with a P/E ratio of 24.9 and P/S ratio of 0.9. The dividend yield of Fidelity Bancorp Inc. stocks is 0.9%.
This is the annual revenues and earnings per share of FSBI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FSBI.
Highlight of Business Operations:
The Company reported net income of $1.5 million and net income available to common stockholders of $1.1 million or $0.37 per diluted common share compared to net income of $678,000 and net income available to common stockholders of $268,000 or $0.09 per diluted common share for fiscal 2010. The $857,000 increase in earnings for fiscal 2011 primarily reflects a decrease in the provision for loan losses of $400,000 and a decrease of $2.1 million in other-than-temporary impairment (“OTTI”) charges on certain investment securities, partially offset by a decrease in gains on sales of investment securities of $309,000, an increase in operating expenses of $346,000, and an increase in the provision for income taxes of $721,000.Net loans receivable decreased $26.8 million or 7.2% to $346.3 million at September 30, 2011 from $373.1 million at September 30, 2010. Loans originated totaled $108.0 million in fiscal 2011, including amounts disbursed under lines of credit, versus $86.7 million in fiscal 2010. Mortgage loans originated amounted to $68.5 million, including $15.4 million originated for sale, compared to $58.6 million, including $31.1 million originated for sale, in fiscal 2011 and 2010, respectively. The Bank did not purchase any mortgage loans in fiscal 2011 or fiscal 2010. The increase in the level of mortgage loan originations in fiscal 2011 primarily reflects an increase in customer refinancing as compared to fiscal 2010 as rates remained at historically low levels. The origination of adjustable rate mortgages (ARM’s) increased to $29.9 million in fiscal 2011 from $19.7 million in fiscal 2010. During fiscal 2011, the Bank continued to emphasize ARM’s, since they would perform better in a rising rate environment. Due to the low interest rate environment during fiscal 2011, for asset/liability purposes, the Bank continued to sell a portion of the fixed rate, single-family mortgage loans that were originated, rather than retaining them in the Bank’s portfolio. Gains of $300,000 were realized on these sales in fiscal 2011. Principal repayments on outstanding mortgage loans increased to $73.5 million in fiscal 2011 as compared to $65.3 million in fiscal 2010. The combination of the above factors resulted in an overall decrease in mortgage loans receivable to $232.4 million at September 30, 2011 from $252.7 million at September 30, 2010.
Stockholders’ equity increased $905,000 or 1.8% to $50.5 million at September 30, 2011 compared to $49.6 million at September 30, 2010. This result reflects net income of $1.5 million; stock options exercised of $1,000; stock issued under the Dividend Reinvestment Plan of $16,000; stock-based compensation expense of $37,000; and a contribution of treasury stock to the Employee Stock Ownership Plan of $250,000. Offsetting these increases were common and preferred stock cash dividends paid of $595,000 and an increase in the accumulated other comprehensive loss of $339,000, which is a result of changes in the net unrealized losses on the available-for-sale securities, changes in non-credit losses on available-for-sale and held-to-maturity securities, and by the unrealized loss recognized on the cash flow hedge as discussed in Note 18, “Derivative Instrument”. On December 12, 2008, the Company sold $7.0 million in preferred stock to the U.S. Department of Treasury as a participant in the federal government’s TARP Capital Purchase Program. In connection with the investment, the Company also issued a ten-year warrant to the Treasury which permits the Treasury to purchase up to 121,387 shares of its common stock at an exercise price of $8.65 per share. The Series B Preferred Stock will pay dividends at the rate of 5% per annum until the fifth anniversary of issuance and, unless earlier redeemed, at the rate of 9% thereafter. Until the third anniversary of the issuance of the Series B Preferred Stock or its earlier redemption or transfer by the Treasury Department to an unaffiliated holder, the Company may not increase the dividend on the common stock or repurchase any shares of common stock. Approximately $3.4 million of the balances in retained earnings as of September 30, 2011 and 2010 represent base year bad debt deductions for tax purposes only, as they are considered restricted accumulated earnings.
The Company recorded net income of $1.5 million and net income available to common stockholders of $1.1 million or $0.37 per diluted common share for the year ended September 30, 2011 compared to net income of $678,000 and net income available to common stockholders of $268,000 or $0.09 per diluted common share for fiscal 2010. The $857,000 increase in earnings for fiscal 2011 primarily reflects a decrease in the provision for loan losses of $400,000 and a decrease of $2.1 million in other-than-temporary impairment (“OTTI”) charges on certain investment securities, partially offset by a decrease in gains on sales of investment securities of $309,000, an increase in operating expenses of $346,000, and in increase in the provision for income taxes of $721,000. The net income available to common stockholders and diluted earnings per common share also reflects $410,000 in preferred stock dividends and discount accretion during the fiscal period ended September 30, 2011 and 2010.
The Company recognized in earnings impairment charges on securities of $1.5 million during fiscal 2011 compared to $3.6 million in fiscal 2010. During the fiscal year ended September 30, 2011, $1.1 million of impairment charges were recorded on six investments in pooled trust preferred securities resulting from several factors, including a downgrade on 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 has deemed the impairment on these six trust preferred securities 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 security. The Company also recorded $135,000 of impairment charges on a single-issuer trust preferred security. These impairment charges were a result of the financial institution issuer being put on regulatory order after several quarters of losses and it started deferring interest payments on both its trust preferred and its TARP preferred shares outstanding. During the fiscal year ended September 30, 2010, $3.5 million of impairment charges were recorded on six investments in pooled trust preferred securities resulting from several factors, including a downgrade on 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 has deemed the impairment on these six trust preferred securities 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 security. For the fiscal year ended September 30, 2011, the Company recognized in earnings impairment charges of $204,000 and in other comprehensive income non-credit impairment charges of $17,000 relating to one private label mortgage-backed security. The impairment charges resulted from a downgrade in its credit rating, as well as independent third-party analysis of the underlying collateral for the bond. For the fiscal year ended September 30, 2010, the Company recognized in earnings impairment charges of $57,000 and in other comprehensive income non-credit impairment charges of $294,000 relating to one private label mortgage-backed security. The impairment charges resulted from a downgrade in its credit rating, as well as independent third-party analysis of the underlying collateral for the bond. Based on the factors concerning the issuer, management of the Company deemed the impairment on this security to be other-than-temporary. During the fiscal year ended September 30, 2011, the Company recognized in earnings impairment charges of $87,000 on one investment in common stock of a local financial institution resulting from the duration and extent to which the market value has been less than cost and the performance of the financial institution over the past two years. There were no impairment charges taken on these equity securities for the fiscal year ended September 30, 2010.
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