WEST PALM BEACH, Fla., April 17 /PRNewswire-FirstCall/ --
Fidelity Bankshares, Inc. (Nasdaq: FFFL) the holding company for Fidelity
Federal Bank & Trust, announced today the company's net income for the quarter
ended March 31, 2002, was $4.0 million or $.26 basic and diluted earnings per
share. This compares to $558,000 or $.04 basic and $.03 diluted earnings per
share for the quarter ended March 31, 2001. The results for the quarter ended
March 31, 2001 included a $1.1 million, pre-tax charge against income relating
to the company's planned computer conversion, which was completed in November
2001, and amortization of $56,000 in goodwill, which is no longer required
under FAS 142.
Vince Elhilow, president and CEO commented, "While we were pleased with
our continued net income improvement, most gratifying is the fact that our
core deposits, consisting of checking, savings and money market accounts, now
comprise 52% of our deposits." At December 31, 2001 and March 31, 2001, core
deposits made up 45.5% and 40.8%, respectively, of the company's deposits. "In
addition," said Elhilow, "we've recorded another solid quarter of loan
growth." The company's net loans totaled $1.667 billion at March 31, 2002,
compared to $1.583 billion at December 31, 2001 and $1.387 billion at March
31, 2001.
Commenting on the company's previously issued earnings guidance for the
2002 fiscal year, Elhilow said, "We continue to feel comfortable with our
previously issued guidance of $.90 to $.96 per share, though we are now
leaning toward the upper limits of that range. We experienced margin
compression of approximately 40 basis points during the current quarter, much
of which resulted from a focus on prime-based lending. Although our net yield
on interest earning assets at March 31, 2002 is currently 3.30%, we expect
some compression in the second half of the year as a result of increasing
interest rates. We will update our guidance estimates after the close of the
June 30, 2002 quarter."
While interest income declined by $921,000 in the quarter ending March 31,
2002 compared to the quarter ending March 31, 2001, this was offset by a
decline of $6.9 million in the company's interest expense for the same period.
The decline in interest expense resulted from the current low interest rate
environment and the company's improved core deposit mix. As a result, the
company's net interest income increased by $6.0 million or 50.7%. In
addition, other income, net of non-recurring income in both periods, improved
by $751,000 or 27.1% in the March 31, 2002 quarter compared to the same
quarter in 2001.
In March, the Board of Directors approved payment of a quarterly dividend
to stockholders of $.10 per share on the company's common stock. The
dividend, payable to stockholders of record as of March 29, 2002, was
distributed on April 12, 2002.
Financial highlights, selected unaudited financial data and selected
unaudited operating data follow.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $2.35 billion and deposits of $1.74 billion and operates
in Florida through 38 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) 659-9900 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.fidfed.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. Selected Unaudited Operating Data
Fidelity Bankshares, Inc.
As of March 31,
2002 (Unaudited) 2001
(In Thousands)
Assets
Cash and interest earnings deposits $248,402 $122,560
Assets available for sale 306,327 396,190
Loans:
Residential mortgage 1,289,640 1,122,731
Commercial mortgage 319,429 185,720
Consumer 113,054 91,189
Commercial business 141,765 131,947
Gross loans 1,863,888 1,531,587
Less:
Loans in process 191,604 141,889
Deferred costs (income) (2,274) (2,633)
Allowance for loan losses 7,338 5,452
Loans, Net 1,667,220 1,386,879
Office properties and equipment 60,256 57,131
FHLB stock 15,763 14,718
REO 73 180
All other assets 50,830 44,307
Total assets $2,348,871 $2,021,965
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $902,896 $634,025
Certificates of deposit 835,664 918,466
Total deposits 1,738,560 1,552,491
Repurchase agreements 37,814 38,072
Borrowings from FHLB 312,337 270,838
Subordinated debentures 28,750 28,750
All other liabilities 51,451 38,467
Total liabilities 2,168,912 1,928,618
Stockholders' equity 179,959 93,347
Total Liabilities and equity $2,348,871 $2,021,965
Certain amounts in prior year have been reclassified to conform with the
March 31, 2002 presentation.
Fidelity Bankshares Inc. Selected Unaudited Financial Data
Fidelity Bankshares, Inc.
Three Months Ended
March 31,
2002 (Unaudited) 2001
(In Thousands)
Selected Operating Data:
Interest income $33,677 $34,598
Interest expense 15,865 22,778
Net interest income before
provision for loan losses 17,812 11,820
Provision for loan losses 501 580
Net interest income after
provision for loan losses 17,311 11,240
Other income
Fees on deposit accounts 1,618 1,172
Fees for other banking services 1,656 1,307
All other income 272 535
Total other income 3,546 3,014
Operating expense
Compensation and benefits 8,470 7,060
Occupancy and equipment 2,706 2,442
All other operating expense 3,078 3,831
Total operating expense 14,254 13,333
Income before taxes 6,603 921
Provision for income taxes 2,595 363
Net income $4,008 $558
Earnings per share: (1)
Basic $.26 $.04
Diluted $.26 $.03
(1) All per share data retroactively adjusted to reflect the second
step conversion of Fidelity Bankshares, MHC.
Certain amounts in prior year have been reclassified to conform with the
March 31, 2002 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months Year
Ended Ended Ended
March 31, March 31, December 31,
2002 2001 2001
FOR THE PERIOD (In Thousands) (Unaudited) (Unaudited) (Audited)
Interest income $33,677 $34,598 $138,480
Interest expense 15,865 22,778 81,422
Net interest income 17,812 11,820 57,058
Gain on sale of loans 4 240 296
Net income 4,008 558 7,880
PER COMMON SHARE (1)
Net income:
Basic EPS $0.26 $0.04 $0.52
Diluted EPS 0.26 0.03 0.51
Dividends declared 0.10 0.10 0.40
Book value 11.40 5.93 11.25
Stock price:
High 18.42 11.79 18.40
Low 15.60 8.17 8.17
Close 18.00 11.74 15.97
AVERAGE FOR THE PERIOD (In
Thousands)
Assets $2,249,893 $1,957,692 $2,061,994
Loans receivable, net 1,621,798 1,379,215 1,458,899
Mortgage-backed securities 220,934 319,510 291,068
Investments 245,236 124,248 152,449
Deposits 1,648,584 1,512,984 1,536,758
Borrowed funds 375,425 327,262 327,544
Stockholders' equity 179,782 92,546 144,323
SELECTED RATIOS
Return on average assets 0.71% 0.11% 0.38%
Return on average equity 8.92% 2.41% 5.46%
Interest rate spread on average
assets for the period 3.32% 2.64% 2.91%
Net yield on average interest
earning assets for the period 3.41% 2.59% 3.00%
Net yield on interest earning
assets at end of period 3.30% 2.67% 3.70%
Interest rate spread at end of
period 3.20% 2.71% 3.60%
Ratio of interest earning assets
to interest bearing liabilities
at end of period 103.17% 99.21% 103.07%
Ratio of non performing assets to
total assets 0.26% 0.26% 0.24%
Ratio of valuation allowances to
non performing assets 120.88% 105.68% 130.94%
Ratio of valuation allowances to
loans receivable, net 0.44% 0.39% 0.43%
Stockholders' equity as a
percentage of assets 7.66% 4.64% 8.31%
PERIOD END (In Thousands)
Total assets $2,348,871 $2,011,313 $2,136,935
Cash and investment securities 305,792 171,509 152,446
Mortgage-backed securities 211,581 316,852 237,671
Loans receivable, net 1,667,220 1,387,077 1,583,425
Real estate owned and held for
investment 73 180 219
Chargeoffs 16 34 117
Recoveries 6 1 5
Loan loss reserve 7,338 5,452 6,847
Other assets 35,175 19,252 34,997
Borrowed funds 378,901 337,660 355,342
Common shares outstanding 15,790,056 6,855,368 15,781,244
Stockholders' equity 179,959 93,347 177,612
(1) All per share data retroactively adjusted to reflect the second
step conversion of Fidelity Bankshares, MHC.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidfed.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., +1-561-659-9900; or Frank Hawkins or Julie
Marshall, both of Hawk Associates, Inc., +1-305-852-2383, or
info@hawkassociates.com
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