Assets Reach $3.51B; Deposits $2.87B
WEST PALM BEACH, Fla., April 19 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) announced today that net income for the first
quarter ended March 31, 2005 rose 19.8% to $6.8 million or $0.29 basic and
$0.28 diluted earnings per share compared with $5.7 million or $0.26 basic and
$0.25 diluted earnings per share in the first quarter of 2004.
The company's net interest margin increased for the fourth consecutive
quarter. At March 31, 2005, the company's net interest margin was 3.65%. This
represented an improvement of 56 basis points since March 31, 2004 and was the
primary reason for the company's improvement in net income.
Core deposits, excluding all certificates of deposit, increased by
$89.0 million from December 31, 2004 to March 31, 2005. This was offset by a
decline in certificate of deposit balances of $36.1 million, resulting in a
net increase in the bank's total deposits of $52.9 million. Compared to the
first quarter of 2004, total deposits increased by $226.2 million. At March
31, 2005, core deposits comprised 79.2% of the bank's total deposits, while
certificates of deposit comprised 20.8%. Core deposits represented 74.4% of
the bank's total deposits at March, 31, 2004.
The company closed on the acquisition of First Community Bancorp on
April 1, 2005. The company had originally intended to close on the
transaction early in the first quarter. However, due to Sarbanes/Oxley
considerations, the closing was delayed until April 1. The closing added
$137.7 million of deposits to Fidelity. Of these deposits, $20.4 million were
certificates of deposit, while $117.3 million or 85.2% were core deposits,
including $45.1 million of non-interest bearing checking deposits. The
company expects to incur approximately $1 million in merger-related expenses
in the second quarter related to the transaction and expects the acquisition
to be accretive to net income thereafter.
Fidelity Bankshares Chairman and CEO Vince Elhilow said, "This was another
quarter of solid performance and, in fact, was our fourth consecutive quarter
of net interest margin improvement. Although we have a cautious view regarding
the magnitude and speed of the Federal Reserve's continuing upward revision of
interest rates, we expect the net interest margin to benefit from our payoff
of $100 million worth of Federal Home Loan bank borrowings during the second
quarter. We also are delighted to welcome First Community Bancorp to Fidelity.
The acquisition will not only strengthen our position in the western portion
of Palm Beach County and boost our balance sheet, but it also adds some
excellent people to our staff."
The board approved a cash dividend of $0.08 per share for stockholders of
record on March 31, 2005. This distribution was paid on April 15, 2005.
In the continuing effort by the board of directors to strengthen the
company's corporate governance practices and procedures, the independent
members of the board have elected Donald E. Warren, M.D., as lead director.
In this capacity, Warren will be available to consult with the CEO regarding
concerns of the board and consult with senior executives about any concerns
they may have.
At March 31, 2005, Fidelity Bankshares, Inc., through its subsidiary
Fidelity Federal Bank & Trust, had assets of $3.51 billion and deposits of
$2.87 billion and operates in Florida through 42 offices in Palm Beach, Martin
and St. Lucie counties. The acquisition of First Community added five new
offices.
An investment profile on Fidelity Bankshares may be found on the website
http://www.hawkassociates.com/fffl/profile.htm .
Financial statements for the quarter follow.
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 investor relations information 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 Three
Months Months Year
Ended Ended Ended
March 31, March 31, December 31,
2005 2004 2004
FOR THE PERIOD (In Thousands)
Interest income $45,324 $38,062 $164,664
Interest expense 15,251 14,149 59,864
Net interest income 30,073 23,913 104,800
Chargeoffs 1 67 252
Recoveries -- 4 25
Gain on sale of loans 352 105 619
Gain (loss) on sale of mortgage-
backed and investment securities -- 587 407
Net income 6,816 5,687 22,897
PER COMMON SHARE
Net Income (1):
Basic EPS $0.29 $0.26 $1.04
Diluted EPS 0.28 0.25 1.01
Dividends declared (1) 0.08 0.07 0.28
Book value (1) 10.32 8.53 10.29
Stock price (1):
High 28.85 25.63 28.85
Low 22.35 20.83 20.41
Close 22.98 24.45 28.51
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $3,483,063 $3,127,984 $3,336,797
Loans receivable, net 2,508,282 2,227,308 2,424,354
Mortgage-backed securities 609,098 467,053 466,035
Investments 121,800 208,358 227,328
Deposits 2,819,875 2,507,224 2,665,929
Borrowed funds 347,883 357,119 400,498
Stockholders' equity 252,576 189,084 199,273
SELECTED RATIOS
Return on average assets 0.78% 0.73% 0.69%
Return on average equity 10.79% 12.03% 11.49%
Interest rate spread on average
assets for the period 3.67% 3.27% 3.33%
Net yield on average interest
earning assets for the period 3.71% 3.30% 3.36%
Net yield on interest earning
assets at end of period 3.65% 3.09% 3.59%
Interest rate spread at end of
period 3.60% 3.09% 3.53%
Ratio of interest earning assets to
interest bearing liabilities at
end of period 102.36% 99.88% 103.16%
Ratio of non-performing assets to
total assets 0.20% 0.32% 0.19%
Ratio of valuation allowances to
non-performing assets 203.65% 112.97% 211.85%
Ratio of valuation allowances to
loans receivable, net 0.58% 0.51% 0.53%
Stockholders' equity as a
percentage of assets 7.18% 5.94% 7.24%
PERIOD END (In Thousands)
Total assets $3,509,292 $3,240,786 $3,470,539
Interest earning cash and
investment securities 100,139 335,463 106,238
Mortgage-backed securities 702,039 360,961 529,640
Loans receivable, net 2,449,695 2,280,624 2,556,700
Federal Home Loan Bank Stock 16,968 13,055 17,399
Real estate owned and held for
investment 7 17 --
Loan loss reserve 14,198 11,652 13,628
All other assets 240,444 250,666 260,562
Borrowed funds 325,886 352,256 350,560
Common shares outstanding, net of
treasury shares (1) 24,427,375 22,605,387 24,425,050
Stockholders' equity 251,982 192,684 251,283
(1) Reflects 3 for 2 stock split distributed in form of a stock dividend
paid on January 15, 2005 to stockholders of record on December 31,
2004. Certain amounts in prior year have been reclassified to conform
with the March 31, 2005 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended March 31,
2005 2004
(In Thousands)
Selected Operating Data:
Interest income $45,324 $38,062
Interest expense 15,251 14,149
Net interest income before
provision for loan losses 30,073 23,913
Provision for loan losses 572 596
Net interest income after
provision for loan losses 29,501 23,317
Other income
Fees on deposit accounts 2,501 2,839
Fees for other banking services 2,896 2,672
All other income 739 952
Total other income 6,136 6,463
Operating expense
Compensation and benefits 13,949 11,944
Occupancy and equipment 4,788 4,010
All other operating expense 5,862 4,512
Total operating expense 24,599 20,466
Income before taxes 11,038 9,314
Provision for income taxes 4,222 3,627
Net income $6,816 $5,687
Earnings per share (1):
Basic $.29 $.26
Diluted $.28 $.25
Shares used for EPS
computations (1):
Basic 23,838,307 21,927,343
Diluted 24,571,457 22,674,753
(1) Reflects 3 for 2 stock split distributed in the form of a stock
dividend paid on January 15, 2005 to stockholders of record on
December 31, 2004. Certain amounts in prior year have been
reclassified to conform with the March 31, 2005 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
March 31, December 31,
2005 2004
(In Thousands)
Assets
Cash and interest earning deposits $117,194 $149,409
Assets available for sale 480,730 505,629
Assets held to maturity 285,685 89,167
Loans:
Residential mortgage 1,584,259 1,715,636
Commercial mortgage 976,469 972,546
Consumer 245,170 231,333
Commercial business 122,587 125,791
Gross loans 2,928,485 3,045,306
Less:
Loans in process 461,838 472,324
Deferred costs (income) 2,754 2,654
Allowance for loan losses 14,198 13,628
Loans, Net 2,449,695 2,556,700
Office properties and equipment 85,300 83,439
FHLB stock 16,968 17,399
REO 7 --
All other assets 73,713 68,796
Total assets $3,509,292 $3,470,539
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,271,016 $2,182,020
Certificates of deposit 596,553 632,650
Total deposits 2,867,569 2,814,670
Repurchase agreements 49,818 46,097
Borrowings from FHLB 222,460 250,855
Subordinated debentures 53,608 53,608
All other liabilities 63,855 54,026
Total liabilities 3,257,310 3,219,256
Stockholders' equity 251,982 251,283
Total liabilities and equity $3,509,292 $3,470,539
Certain amounts in prior year have been reclassified to conform with the
March 31, 2005 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidelityfederal.com
http://www.hawkassociates.com/fffl/profile.htm
http://www.hawkassociates.com
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 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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