WEST PALM BEACH, Fla., Jan. 20 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) the holding company for Fidelity Federal Bank
& Trust, announced today the company's net income for the year ended December
31, 2003 was $17.9 million or $1.24 basic and $1.22 diluted earnings per share
of common stock. By comparison, net income for the year ended December 31,
2002 was $16.8 million or $1.12 basic and $1.11 diluted earnings per share of
common stock.
For the fourth fiscal quarter ended December 31, 2003 net income was
$3.5 million or $.24 basic and $.23 diluted earnings per share, compared to
$4.5 million or $.31 basic and diluted earnings per share of common stock in
the comparable quarter last year. At year-end, assets totaled $3.05 billion
while deposits were $2.46 billion.
During the fourth quarter, the company sold $85 million of securities
bearing a weighted average interest rate of 2.26%, incurring a loss of
approximately $2.4 million. The proceeds from those sales were reinvested in
an equivalent amount of securities bearing a weighted average interest rate of
3.37%. During the quarter the company also closed a branch in Palm Beach
County and consolidated the deposits at a nearby branch. As a result, the
company incurred approximately $310,000 in lease termination costs and write
off of leasehold improvements. In the aggregate, these transactions
effectively reduced earnings per share for the quarter and the year by $.11
per share.
The company's net interest margin, or net yield on earning assets, at
December 31, 2003 was 3.30%, an improvement from 2.96% at September 30, 2003.
The fourth quarter improvement was attributable to a decline in prepayments on
mortgage-backed securities, the December sale of certain low interest yielding
investments and the reinvestment of those proceeds into higher yield
investments.
In December, the company issued $22 million in trust preferred securities
in a pooled transaction, of which $20 million of the proceeds were invested in
Fidelity Federal Bank & Trust, while the remainder was retained by the company
for general corporate purposes.
Chairman and CEO Vince Elhilow said, "We reported nearly $18 million in
net income in 2003 and continued to increase our deposits and customer base,
further strengthening our position as one of the largest Florida-based
financial institutions. Our net deposit growth for the year was $561.8 million
although certificates of deposit declined by $81.9 million. Core deposits,
consisting of checking, savings and money market accounts, now comprise 72.1%
of our total deposits with certificates of deposit accounting for the
remaining 27.9%. Our vibrant deposit growth underscores both the strength of
our growing network of branches as well as the highly professional efforts of
our employees in serving the financial needs of the growing communities we
serve. The investment of $20 million into the bank in the fourth quarter
enables us to continue our franchise expansion in what is certainly one of the
most dynamic banking markets in the country."
The company's cost of deposits at December 31, 2003 was 1.49%. This
compares with 1.93% at December 31, 2002 and 2.50% at December 31, 2001.
During 2003, the company's net loans grew by $261.8 million or 13.5%,
despite unprecedented levels of loan prepayments. At December 31, 2003, 57.5%
of the company's loan portfolio was residential mortgages compared to 65.5% at
December 31, 2002. The balance of the company's loan portfolio consists of
commercial mortgages, consumer and commercial business loans.
In December, the Board of Directors approved payment of a quarterly
dividend to stockholders of $.10 per share of the company's common stock. The
dividend, payable to stockholders of record as of December 31, 2003, was
distributed on January 14, 2004.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $3.05 billion and deposits of $2.46 billion. The bank
operates in Florida through 41 branches and four loan deposit offices in Palm
Beach, Martin, Broward, Indian River and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on the website
http://www.hawkassociates.com/fffl/profile.htm.
For more information contact Chairman and CEO Vince A. Elhilow or Chief
Financial Officer Richard D. Aldred at (561) 803-9900 or Frank Hawkins or
Julie Marshall, Hawk Associates, Inc. at (305) 852-2383. Email:
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.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
FOR THE PERIOD (In
Thousands)
Interest income $37,089 $34,935 $143,683 $137,867
Interest expense 14,098 14,492 57,164 61,768
Net interest income 22,991 20,443 86,519 76,099
Chargeoffs 5 269 322 575
Recoveries 1 17 2 60
Gain on sale of loans 429 7 4,159 74
Net income 3,487 4,495 17,921 16,798
PER COMMON SHARE
Net income:
Basic EPS $0.24 $0.31 $1.24 $1.12
Diluted EPS 0.23 0.31 1.22 1.11
Dividends declared 0.10 0.10 0.40 0.40
Book value 12.29 10.74 12.29 11.38
Stock price:
High 32.50 19.35 32.50 22.47
Low 26.32 17.20 17.24 15.60
Close 31.40 17.90 31.40 17.90
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $2,980,415 $2,432,858 $2,798,378 $2,349,597
Loans receivable, net 2,129,779 1,883,945 2,037,993 1,747,646
Mortgage-backed
securities 481,885 158,505 399,898 193,510
Investments 173,099 217,336 174,896 245,997
Deposits 2,410,633 1,852,372 2,235,207 1,752,321
Borrowed funds 335,177 358,215 335,832 372,000
Stockholders' equity 181,333 171,807 176,477 176,955
SELECTED RATIOS
Return on average
assets 0.47% 0.74% 0.64% 0.71%
Return on average
equity 7.69% 10.47% 10.15% 9.49%
Interest rate spread on
average assets for the
period 3.27% 3.56% 3.28% 3.40%
Net yield on average
interest earning
assets for the period 3.30% 3.62% 3.31% 3.48%
Net yield on interest
earning assets at end
of period 3.30% 3.63% 3.30% 3.63%
Interest rate spread at
end of period 3.29% 3.60% 3.29% 3.60%
Ratio of interest
earning assets to
interest bearing
liabilities at end of
period 100.54% 101.15% 100.54% 101.01%
Ratio of non performing
assets to total assets 0.32% 0.27% 0.32% 0.27%
Ratio of valuation
allowances to non
performing assets 114.12% 126.21% 114.12% 126.21%
Ratio of valuation
allowances to loans
receivable, net 0.51% 0.43% 0.51% 0.43%
Stockholders' equity as
a percentage of assets 6.06% 6.93% 6.06% 6.93%
PERIOD END (In
Thousands)
Total assets $3,046,524 $2,439,397 $3,046,524 $2,439,397
Interest earning cash
and investment
securities 169,850 166,286 169,850 166,286
Mortgage-backed and
corporate debt
securities 471,228 145,139 471,228 145,139
Loans receivable, net 2,191,696 1,936,370 2,191,696 1,936,370
Real estate owned and
held for investment -- -- -- --
Loan loss reserve 11,119 8,318 11,119 8,318
All other assets 213,750 191,602 213,750 191,602
Borrowed funds 357,400 326,537 357,400 326,537
Common shares
outstanding, net of
treasury shares 15,024,648 14,860,327 15,024,648 14,860,327
Stockholders' equity 184,715 169,087 184,715 169,087
Certain amounts in prior year have been reclassified to conform with
the December 31, 2003 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $37,089 $34,935 $143,683 $137,867
Interest expense 14,098 14,492 57,164 61,768
Net interest income before
provision for loan
losses 22,991 20,443 86,519 76,099
Provision for loan losses 1,081 710 3,122 1,986
Net interest income after
provision for loan
losses 21,910 19,733 83,397 74,113
Other income
Fees on deposit accounts 3,021 2,056 10,082 7,285
Fees for other banking
services 2,375 2,312 9,788 8,487
Gain on sale of loans 429 7 4,159 74
Gain (loss) on sale of
investments (2,364) -- (2,364) 64
All other income 155 304 851 1,081
Total other income 3,616 4,679 22,516 16,991
Operating expense
Compensation and
benefits 11,167 9,690 44,802 37,173
Occupancy and equipment 3,943 3,149 14,477 11,649
All other operating
expense 4,713 4,241 17,234 14,747
Total operating
expense 19,823 17,080 76,513 63,569
Income before taxes 5,703 7,332 29,400 27,535
Provision for income taxes 2,216 2,837 11,479 10,737
Net income $3,487 $4,495 $17,921 $16,798
Earnings per share:
Basic $.24 $.31 $1.24 $1.12
Diluted $.23 $.31 $1.22 $1.11
Certain amounts in prior year have been reclassified to conform with
the December 31, 2003 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
December 31, December 31,
2003 2002
(In Thousands)
Assets
Cash and interest earning deposits $109,887 $129,666
Assets available for sale 593,959 235,018
Loans:
Residential mortgage 1,509,249 1,456,483
Commercial mortgage 753,890 459,426
Consumer 185,450 141,343
Commercial business 131,292 146,205
Gross loans 2,579,881 2,203,457
Less:
Loans in process 374,974 260,381
Deferred costs (income) 2,092 (1,612)
Allowance for loan losses 11,119 8,318
Loans, Net 2,191,696 1,936,370
Office properties and equipment 70,663 67,784
FHLB stock 13,322 12,919
REO -- --
All other assets 66,997 57,640
Total assets $3,046,524 $2,439,397
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $1,774,222 $1,130,586
Certificates of deposit 685,879 767,755
Total deposits 2,460,101 1,898,341
Repurchase agreements 42,089 44,416
Borrowings from FHLB 264,561 253,371
Subordinated debentures 28,750 28,750
Subordinated debentures II 22,000 --
All other liabilities 44,308 45,432
Total liabilities 2,861,809 2,270,310
Stockholders' equity 184,715 169,087
Total liabilities and equity $3,046,524 $2,439,397
Certain amounts in prior year have been reclassified to conform with the
December 31, 2003 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidfed.com
Company News On-Call:
http://www.prnewswire.com/comp/281429.html
CONTACT:
Vince A. Elhilow, Chairman and CEO or Richard
D. Aldred, Chief Financial Officer, both of Fidelity Bankshares,
+1-561-803-9900; or Frank Hawkins or Julie Marshall, both of Hawk
Associates, Inc., +1-305-852-2383, or email,
info@hawkassociates.com, for Fidelity Bankshares
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