Q4 EPS $.31 in 2002 vs. $.24 in 2001
Assets Reach $2.4 Billion, Deposits $1.9 Billion
WEST PALM BEACH, Fla., Jan. 22 /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 Dec. 31, 2002 was $16.8 million or $1.12 basic and $1.11 diluted
earnings per share of common stock. By comparison, net income for the year
ended Dec. 31, 2001 was $7.9 million or $.52 basic and $.51 diluted earnings
per share of common stock.
For the quarter ended Dec. 31, 2002 net income was $4.5 million or $.31
basic and diluted earnings per share, compared to $3.7 million or $.24 basic
and diluted earnings per share of common stock for the quarter ended Dec. 31,
2001. At year-end, assets were $2.4 billion. Deposits were nearly
$1.9 billion.
Return on average equity in 2002 improved from 5.46% to 9.49% and return
on average assets improved from 0.38% to 0.71%. Net interest margin rose to
3.50% for the year compared with 2.85% a year earlier.
Vince Elhilow, chairman and CEO of Fidelity Bankshares, Inc., said, "The
year 2002 was our 50th year serving the banking needs of our community and we
are very pleased that it also was the most successful in our history. The
financial results were enhanced by nearly $1.1 billion in new loan
originations and highlighted by major improvements in several key ratios. The
new loan originations more than offset unprecedented levels of loan
prepayments as customers refinanced their homes and moved to lower rate
mortgages. We continued to benefit from growth driven by our branch expansion
and steady gains in deposit market share in one of America's most dynamic
banking markets. In January, we opened our 41st branch. Deposits for the year
grew 21.7%. Core deposits which include all deposits except certificates of
deposit, grew to 59.6% of total deposits from 45.5% at Dec. 31, 2001.
"Looking ahead, we are comfortable with consensus analysts' estimates of
$1.21 for 2003. We continue to implement our long-range business plan, which
this year will include commencement of loan sales into the secondary markets.
Adding this planned core element to our operations will enable the company to
better manage interest rate risk and more efficiently manage our capital while
increasing non-operating income, which we believe will enable us to continue
to improve our return on average equity and return on average assets," Elhilow
said.
In December 2002, the company's board of directors approved payment of a
quarterly dividend payment of $.10 per share of common stock to stockholders.
The dividend was paid on January 15, 2003 to stockholders of record on
December 31, 2002.
Financial highlights, selected unaudited financial data and selected
unaudited operating data follow.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, operates in Florida through 41 offices in Palm Beach, Martin and St.
Lucie counties. The bank offers traditional banking products as well as trust,
investment and insurance services, a full line of mortgage and commercial
loans and business banking services including loans and lines of credit.
An investment profile on Fidelity Bankshares may be found on the website
http://www.hawkassociates.com/fffl/profile.htm .
For more information contact President 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,
2002 2001 2002 2001
FOR THE PERIOD
(In Thousands)
Interest income $34,935 $34,234 $137,867 $138,480
Interest expense 14,492 16,839 61,768 81,422
Net interest income 20,443 17,395 76,099 57,058
Chargeoffs 269 13 575 117
Recoveries 17 -- 60 5
Gain on sale of loans 7 27 74 296
Net income 4,495 3,708 16,798 7,880
PER COMMON SHARE
Net income:
Basic EPS $0.31 $0.24 $1.12 $0.52
Diluted EPS 0.31 0.24 1.11 0.51
Dividends declared 0.10 0.10 0.40 0.40
Book value 10.74 11.25 10.74 11.25
Stock price:
High 19.35 18.40 22.47 18.40
Low 17.20 12.90 15.60 8.17
Close 17.90 15.97 17.90 15.97
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $2,432,448 $2,124,920 $2,349,524 $2,057,145
Loans receivable, net 1,891,998 1,612,194 1,752,196 1,562,319
Mortgage-backed
securities 158,505 260,778 193,510 298,550
Investments 202,185 156,690 229,660 140,053
Deposits 1,852,358 1,571,217 1,752,316 1,534,114
Borrowed funds 358,216 332,273 372,000 328,840
Stockholders' equity 171,981 178,056 177,009 144,324
SELECTED RATIOS
Return on average
assets 0.74% 0.70% 0.71% 0.38%
Return on average
equity 10.45% 8.33% 9.49% 5.46%
Interest rate spread on
average assets for the
period 3.58% 3.21% 3.43% 2.55%
Net yield on average
interest earning
assets for the period 3.63% 3.43% 3.50% 2.85%
Net yield on interest
earning assets at end
of period 3.64% 3.70% 3.64% 3.70%
Interest rate spread at
end of period 3.61% 3.60% 3.61% 3.60%
Ratio of interest
earning assets to
interest bearing
liabilities at end
of period 101.15% 103.07% 101.15% 103.07%
Ratio of non-performing
assets to total assets 0.27% 0.24% 0.27% 0.24%
Ratio of valuation
allowances to non
performing assets 126.21% 130.94% 126.21% 130.94%
Ratio of valuation
allowances to loans
receivable, net 0.43% 0.43% 0.43% 0.43%
Stockholders' equity as
a percentage of assets 6.99% 8.30% 6.99% 8.30%
PERIOD END
(In Thousands)
Total assets $2,438,282 $2,140,392 $2,438,282 $2,140,392
Interest earning cash
and investment
securities 166,286 152,446 166,286 152,446
Mortgage-backed and
corporate debt
securities 145,139 237,671 145,139 237,671
Loans receivable, net 1,939,131 1,586,882 1,939,131 1,586,882
Real estate owned and
held for investment -- 219 -- 219
Loan loss reserve 8,318 6,847 8,318 6,847
Other assets 38,209 34,997 38,209 34,997
Borrowed funds 326,537 355,342 326,537 355,342
Common shares
outstanding 15,869,787 15,781,244 15,869,787 15,781,244
Stockholders' equity 170,538 177,612 170,538 177,612
Certain amounts in prior year have been reclassified to conform with the
December 31, 2002 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
(In Thousands) (In Thousands)
Selected Operating
Data:
Interest income $34,935 $34,234 $137,867 $138,480
Interest expense 14,492 16,839 61,768 81,422
Net interest income
before provision
for loan losses 20,443 17,395 76,099 57,058
Provision for loan
losses 710 665 1,986 2,054
Net interest income
after provision
for loan losses 19,733 16,730 74,113 55,004
Other income
Fees on deposit
accounts 2,056 1,874 7,285 5,610
Fees for other
banking services 2,312 1,804 8,487 6,333
All other income 311 648 1,219 1,870
Total other
income 4,679 4,326 16,991 13,813
Operating expense
Compensation and
benefits 9,690 8,572 37,173 31,714
Occupancy and
equipment 3,149 2,781 11,649 10,558
All other
operating expense 4,241 3,560 14,747 13,499
Total operating
expense 17,080 14,913 63,569 55,771
Income before taxes 7,332 6,143 27,535 13,046
Provision for income
taxes 2,837 2,435 10,737 5,166
Net income $4,495 $3,708 $16,798 $7,880
Earnings per share:
Basic $.31 $.24 $1.12 $.52
Diluted $.31 $.24 $1.11 $.51
Certain amounts in prior year have been reclassified to conform with the
December 31, 2002 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
December 31, December 31,
2002 2001
(In Thousands)
Assets
Cash and interest earning deposits $129,666 $96,291
Assets available for sale 235,018 332,193
Loans:
Residential mortgage 1,456,474 1,254,169
Commercial mortgage 454,418 288,321
Consumer 141,343 105,077
Commercial business 145,258 132,881
Gross loans 2,197,493 1,780,448
Less:
Loans in process 251,656 189,008
Deferred costs (income) (1,612) (2,289)
Allowance for loan losses 8,318 6,847
Loans, Net 1,939,131 1,586,882
Office properties and equipment 67,784 59,235
FHLB stock 12,919 14,577
REO -- 219
All other assets 53,764 50,995
Total assets $2,438,282 $2,140,392
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $1,130,586 $709,601
Certificates of deposit 767,755 849,835
Total deposits 1,898,341 1,559,436
Repurchase agreements 44,416 36,326
Borrowings from FHLB 253,371 290,266
Subordinated debentures 28,750 28,750
All other liabilities 42,866 48,002
Total liabilities 2,267,744 1,962,780
Stockholders' equity 170,538 177,612
Total liabilities and equity $2,438,282 $2,140,392
Certain amounts in prior year have been reclassified to conform with the
December 31, 2002 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidelityfederal.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/281429.html
CONTACT:
Vince A. Elhilow, President and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, Inc., +1-561-803-9900; or 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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