Fidelity Sells Affordable Housing Subs

Fidelity Federal Bancorp, Evansville, Ind., has completed the sale of two affordable housing subsidiaries and related assets to Pedcor Funding Corp. for approximately $1.7 million in cash.Fidelity said the sale resulted in a pretax gain of $223,000 for the fourth quarter, noting that it had previously recorded an impairment charge of $905,000 related to the asset sales. "Completion of this transaction has substantially increased regulatory capital for United Fidelity Bank [Fidelity Federal's savings bank subsidiary] and provided additional liquidity for Fidelity Federal Bancorp," said Fidelity president Donald R. Neel. "This will allow us to further sharpen our focus on community banking activities." Fidelity can be found online at http://www.unitedfidelity.com.