Assets Reach $3.47 Billion; Deposits $2.81 Billion
WEST PALM BEACH, Fla., Jan. 19 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL), the holding company for Fidelity Federal Bank
& Trust, announced today that the company's net income for the fourth quarter
ended December 31, 2004 was $5.3 million or $0.24 basic and $0.23 diluted
earnings per share of common stock. This compared with net income for the
fourth quarter of 2003 of $3.5 million or $0.16 basic and diluted earnings per
share of common stock. Per share amounts for all periods discussed reflect,
retroactively, the company's three-for-two stock split distributed in the form
of a stock dividend on January 14, 2005 to stockholders of record on December
31, 2004.
Net income for the year ended December 31, 2004 increased by 27.8% to
$22.9 million or $1.04 basic and $1.01 diluted earnings per share of common
stock versus $17.9 million or $0.82 basic and $0.81 diluted earnings per share
of common stock in 2003.
In the fourth quarter of 2004, the company recorded losses from securities
sales of $728,000 compared to losses of $2.4 million in the fourth quarter
2003. The company redeemed trust-preferred securities bearing interest at a
fixed rate of 8.375% and replaced them with floating rate trust-preferred
securities indexed to the three-month LIBOR rate. As a result of this
redemption of trust-preferred securities, during the fourth quarter of 2004,
the company wrote off $1.1 million of deferred issuance costs on these
securities. Consulting, accounting and audit fees were $551,000 higher in the
fourth quarter of 2004 than in the fourth quarter of 2003. Approximately
$456,000 of this amount was associated with Sarbanes-Oxley compliance.
Results for the fourth quarter of 2004 also reflect a $250,000 expense
representing the company's portion of a lawsuit settlement related to the
bankruptcy of a former customer.
The company's net interest margin increased for the third consecutive
quarter. At March 31, 2004, June 30, 2004, September 30, 2004 and December 31,
2004, the company's net interest margin was 3.09%, 3.33%, 3.45% and 3.59%,
respectively.
Fidelity Bankshares Chairman and CEO Vince Elhilow said, "Our continued
margin expansion was attributed in large measure to the ongoing growth of core
deposits that have less interest rate sensitivity. These deposits increased
during the quarter by $127.1 million. Core deposits, consisting of checking,
money market and savings accounts, represented 77.5% of the company's deposits
at year end while certificates of deposit accounted for 22.5% of total
deposits."
The company's assets increased by $422.0 million in 2004 even though two
hurricanes strongly impacted its area of operations. Core deposits increased
by $407.8 million during the year but were offset by declines in certificates
of deposit of $53.2 million. The company announced the acquisition of First
Community Bancorp, a Palm Beach County bank with $163 million in assets.
Anticipated to close late in the first quarter or early in the second quarter
of 2005, the acquisition is expected to be accretive in the first 12 months.
On December 15, 2004, the company successfully completed a secondary
stock offering of 1.15 million shares of its common stock. The offering
raised $44 million of additional capital, which will be used to continue the
company's expansion.
The company's board of directors also approved a three-for-two stock
split, in the form of a stock dividend, to stockholders of record on December
31, 2004. In addition, the board approved a cash dividend of $0.08 per share,
including the shares distributed as a stock dividend, for stockholders of
record on December 31, 2004. Both distributions were paid on January 14,
2005.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $3.47 billion and deposits of $2.81 billion and operates
in Florida through 43 offices in Palm Beach, Martin and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on the website
http://www.hawkassociates.com/fffl/profile.htm .
Financial statements for the quarter are attached.
For more information, contact Vince A. Elhilow, chairman, CEO and
president, or Chief Financial Officer Richard D. Aldred at (561) 803-9900, or
Frank Hawkins or Julie Marshall, Hawk Associates, Inc., at (305) 852-2383, e-
mail: info@hawkassociates.com . Information about Fidelity Bankshares, Inc.
can be found on the website http://www.fidelityfederal.com . Copies of
Fidelity Bankshares press releases, SEC filings, current price quotes, stock
charts and other valuable information for investors may be found on the
website http://www.hawkassociates.com .
Forward-Looking Statements: When used in this report, the words or phrases
"will likely result," "are expected to," "will continue," "is anticipated,"
"estimate," "project" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, including, among other things, changes in economic
conditions in the company's market area, changes in policies by regulatory
agencies, fluctuations in interest rates, demand for loans in the company's
market area and competition that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The company wishes to caution readers not to place undue reliance
on any such forward-looking statements, which speak only as of the date made.
The company wishes to advise readers that the factors listed above could
affect the company's financial performance and could cause the company's
actual results for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current statements.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2004 2003 2004 2003
FOR THE PERIOD (In
Thousands)
Interest income $44,525 $37,088 $164,664 $143,683
Interest expense 15,963 14,097 59,864 57,164
Net interest income 28,562 22,991 104,800 86,519
Chargeoffs 5 5 253 322
Recoveries -- 1 25 1
Gain on sale of loans 228 428 619 4,159
Gain (loss) on sale of
mortgage-backed and
investment securities (728) (2,364) 407 (2,364)
Net income 5,340 3,487 22,897 17,921
PER COMMON SHARE
Net Income: (1)
Basic EPS $0.24 $0.16 $1.04 $0.82
Diluted EPS 0.23 0.16 1.01 0.81
Dividends declared (1) 0.08 0.07 0.28 0.27
Book value (1) 10.26 8.19 10.26 8.19
Stock price: (1)
High 28.85 21.67 28.85 21.67
Low 24.24 17.55 20.41 11.49
Close 28.51 20.93 28.51 20.93
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $3,491,085 $2,980,415 $3,336,797 $2,798,378
Loans receivable, net 2,600,046 2,129,779 2,424,354 2,037,993
Mortgage-backed
securities 458,718 481,885 466,035 399,898
Investments 222,708 173,099 227,328 174,896
Deposits 2,810,154 2,410,633 2,665,929 2,235,207
Borrowed funds 386,959 335,177 400,498 335,832
Stockholders' equity 216,287 181,333 199,273 176,477
SELECTED RATIOS
Return on average
assets 0.61% 0.47% 0.69% 0.64%
Return on average
equity 9.88% 7.69% 11.49% 10.15%
Interest rate spread on
average assets for the
period 3.43% 3.27% 3.33% 3.28%
Net yield on average
interest earning
assets for the period 3.48% 3.30% 3.36% 3.31%
Net yield on interest
earning assets at end
of period 3.59% 3.30% 3.59% 3.30%
Interest rate spread at
end of period 3.53% 3.29% 3.53% 3.29%
Ratio of interest
earning assets to
interest bearing
liabilities at end of
period 103.16% 100.54% 103.16% 100.54%
Ratio of non performing
assets to total assets 0.19% 0.32% 0.19% 0.32%
Ratio of valuation
allowances to non
performing assets 211.85% 114.12% 211.85% 114.12%
Ratio of valuation
allowances to loans
receivable, net 0.53% 0.51% 0.53% 0.51%
Stockholders' equity as
a percentage of assets 7.22% 6.05% 7.22% 6.05%
PERIOD END (In
Thousands)
Total assets $3,470,234 $3,048,222 $3,470,234 $3,048,222
Interest earning cash
and investment
securities 106,238 156,528 106,238 156,528
Mortgage-backed and
corporate debt
securities 529,640 471,228 529,640 471,228
Loans receivable, net 2,556,700 2,191,696 2,556,700 2,191,696
Federal Home Loan Bank
Stock 17,399 13,322 17,399 13,322
Real estate owned and
held for investment -- -- -- --
Loan loss reserve 13,628 11,119 13,628 11,119
All other assets 260,257 215,448 260,257 215,448
Borrowed funds 350,560 358,970 350,560 358,970
Common shares
outstanding, net of
treasury shares (1) 24,425,050 22,536,972 24,425,050 22,536,972
Stockholders' equity 250,546 184,509 250,546 184,509
(1) Reflects 3-for-2 stock split distributed in form of a stock
dividend.
Certain amounts in prior year have been reclassified to conform with
the December 31, 2004 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
(In Thousands) (In Thousands)
Selected Operating
Data:
Interest income $44,525 $37,088 $164,664 $143,683
Interest expense 15,963 14,097 59,864 57,164
Net interest income
before provision for
loan losses 28,562 22,991 104,800 86,519
Provision for loan
losses 562 1,081 2,736 3,122
Net interest income
after provision for
loan losses 28,000 21,910 102,064 83,397
Other income
Fees on deposit
accounts 2,674 2,984 11,048 10,045
Fees for other
banking services 2,657 2,376 11,156 9,788
All other income (23) (1,744) 2,969 2,683
Total other
income 5,308 3,616 25,173 22,516
Operating expense
Compensation and
benefits 12,899 11,167 50,475 44,802
Occupancy and
equipment 4,256 3,943 16,612 14,476
All other
operating
expense 7,405 4,713 22,563 17,235
Total operating
expense 24,560 19,823 89,650 76,513
Income before taxes 8,748 5,703 37,587 29,400
Provision for
income taxes 3,408 2,216 14,690 11,479
Net income $5,340 $3,487 $22,897 $17,921
Earnings per share: (1)
Basic $.24 $.16 $1.04 $.82
Diluted $.23 $.16 $1.01 $.81
Shares used for EPS
computations: (1)
Basic 22,288,494 21,847,519 22,068,136 21,747,880
Diluted 23,040,191 22,423,363 22,747,417 22,063,321
(1) Reflects 3-for-2 stock split distributed in the form of a stock
dividend.
Certain amounts in prior year have been reclassified to conform with
the December 31, 2004 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
December 31, December 31,
2004 2003
(In Thousands)
Assets
Cash and interest earning deposits $149,409 $109,887
Assets available for sale 505,629 593,959
Assets held to maturity 89,167 --
Loans:
Residential mortgage 1,715,636 1,509,249
Commercial mortgage 972,546 753,890
Consumer 231,333 185,450
Commercial business 125,791 131,292
Gross loans 3,045,306 2,579,881
Less:
Loans in process 472,324 374,974
Deferred costs (income) 2,654 2,092
Allowance for loan losses 13,628 11,119
Loans, Net 2,556,700 2,191,696
Office properties and equipment 83,439 73,553
FHLB stock 17,399 13,322
REO -- --
All other assets 68,491 65,805
Total assets $3,470,234 $3,048,222
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,182,020 $1,774,222
Certificates of deposit 632,650 685,879
Total deposits 2,814,670 2,460,101
Repurchase agreements 46,097 42,089
Borrowings from FHLB 250,855 264,561
Subordinated debentures 53,608 52,320
All other liabilities 54,458 44,642
Total liabilities 3,219,688 2,863,713
Stockholders' equity 250,546 184,509
Total liabilities and equity $3,470,234 $3,048,222
Certain amounts in prior year have been reclassified to conform with the
December 31, 2004 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidelityfederal.com
http://www.hawkassociates.com
http://www.hawkassociates.com/fffl/profile.htm
CONTACT:
Vince A. Elhilow, chairman, CEO and
president, or Richard D. Aldred, Chief Financial Officer, both of
Fidelity Bankshares, Inc., +1-561-803-9900; or Investors, Frank
Hawkins or Julie Marshall, both of Hawk Associates, Inc.,
+1-305-852-2383, or info@hawkassociates.com, for Fidelity
Bankshares, Inc.
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