WEST PALM BEACH, Fla., April 20 /PRNewswire Interactive News Release/ --
Fidelity Bankshares, Inc. (Nasdaq: FFFL), the holding company for Fidelity
Federal Bank & Trust, announced today the company's net income for the first
quarter ended March 31, 2001 was $558,000 or $.09 basic earnings per share.
This compared with $2,975,000 or $.46 basic earnings per share in the
comparable quarter of 2000. As described in the company's annual report, the
first quarter 2001 results included a one-time charge against income of
approximately $1.1 million relating to the company's planned computer upgrade.
Net income for the quarter ended March 31, 2000 included non-recurring income
of approximately $2.4 million, which resulted from the receipt of common stock
in connection with the demutualization of the John Hancock Insurance Company.
Interest income for the quarter rose 13.5% to $34.6 million, compared with
$30.5 million for the same quarter ended March 31, 2000. Other income,
excluding non-recurring income in both periods, rose 37.8% to $2.6 million,
compared with $1.9 million in the first quarter of 2000.
In the quarter ended March 31, 2001, the company also incurred additional
specific loan loss provisions of $280,000 relating to a non-performing
commercial loan credit. This was partially offset by a gain of $241,000 on
the sale of $34 million in mortgage loans. The company experienced yield
compression during the first quarter of 2001, as the yield on the bank's
earning assets declined by 26 basis points, while the cost of interest bearing
liabilities declined by 20 basis points, compared to the quarter ended
December 31, 2000. Most notable in the yield compression was the decline in
yield of 48 basis points for the company's investment in mortgage-backed
securities, which includes an investment in trust preferred securities. The
Company holds an investment of approximately $40 million in investment grade,
adjustable rate, trust preferred securities which adjust monthly. As a
result, in periods of rapidly declining rates, such as experienced at the
beginning of the quarter, the yield on these assets decline rapidly, while the
Company's certificate of deposit liabilities reprice as the deposit
instruments mature. Predominately, the bank's certificates of deposit have
maturities of one year or less.
Vince Elhilow, president of Fidelity Bankshares, Inc., said, "The bank
continued to experience healthy deposit growth with an increase in the first
quarter of $54.9 million. Of this amount, 78.9% were core deposits, rather
than certificates of deposit. As a result, the company's deposit composition
as of March 31, 2001 was 40.8% core deposits and 59.2% certificates of
deposit, a significant improvement when compared to 35.9% core and 64.1%
certificates as of March 31, 2000.
"The $1.1 million computer upgrade charge is related to an investment in
expanding and enhancing our depository and lending products and services for
individuals and businesses including Internet banking opportunities. We
expect this project to be completed during the fourth quarter," Elhilow said.
In March, the company's board of directors approved the payment of a
quarterly cash dividend of $.25 per share on the company's common stock to its
stockholders. The dividend was paid to stockholders of record as of March 30,
2001 and was distributed on April 13, 2001.
Financial highlights, selected unaudited financial data and selected
unaudited operating data are below.
Fidelity Bankshares Inc., through its wholly owned subsidiary Fidelity
Federal Bank & Trust, has assets of $2.0 billion and deposits of nearly
$1.6 billion and operates in Florida through 36 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.
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. Unaudited Financial Highlights
Three Months Ended Year Ended
March 31, 2001 March 31, 2000 Dec. 31, 2000
FOR THE PERIOD (In Thousands)
Interest income $34,598 $30,476 $132,580
Interest expense 22,778 19,089 85,671
Net interest income 11,820 11,387 46,909
Net income 558 2,975 8,521
PER COMMON SHARE
Net income:
Basic EPS $0.09 $0.46 $1.31
Diluted EPS 0.08 0.46 1.31
Dividends declared 0.25 0.25 1.00
Book value 14.33 12.93 14.08
Stock price:
High 28.50 16.75 20.75
Low 19.75 13.38 13.38
Close 28.38 13.75 19.63
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $1,957,692 $1,755,034 $1,849,957
Loans receivable, net 1,379,215 1,193,410 1,272,362
Mortgage-backed securities 319,510 368,162 349,498
Investments 124,248 71,360 100,667
Deposits 1,512,984 1,361,619 1,400,130
Borrowed funds 327,262 286,083 336,065
Stockholders' equity 92,546 82,490 85,461
SELECTED RATIOS
Return on average assets 0.11% 0.68% 0.46%
Return on average equity 2.41% 14.43% 9.97%
Interest rate spread on
average assets
for the period 2.64% 2.84% 2.77%
Net yield on average
interest earning assets
for the period 2.59% 2.79% 2.72%
Net yield on interest
earning assets
at end of period 2.67% 2.82% 2.74%
Interest rate spread
at end of period 2.71% 2.88% 2.78%
Ratio of interest
earning assets to
interest bearing
liabilities at
end of period 99.21% 98.81% 98.94%
Ratio of non performing
assets to total assets 0.26% 0.20% 0.26%
Ratio of valuation
allowances to
non performing
assets 105.68% 102.67% 98.41%
Ratio of valuation
allowances to
loans receivable, net 0.39% 0.31% 0.36%
Stockholders' equity as
a percentage of assets 4.64% 4.67% 4.77%
PERIOD END (In Thousands)
Total assets $2,011,313 $1,799,390 $1,922,897
Investments 171,509 86,349 105,163
Loans receivable, net 1,387,077 1,222,459 1,361,232
Mortgage-backed securities 316,852 365,471 322,223
Deposits 1,552,680 1,399,534 1,497,818
Borrowed funds 337,660 293,139 310,005
Stockholders' equity 93,346 84,034 91,651
Fidelity Bankshares Inc. Selected Unaudited Operating Data
Three Months Ended
March 31, 2001 March 31, 2000
(In thousands)
Selected Operating Data:
Interest Income $34,598 $30,476
Interest expense 22,778 19,089
Net interest income 11,820 11,387
Provision for loan losses 580 201
Net interest income after
provision for loan losses 11,240 11,186
Other income 2,856 4,312
Operating expense 13,175 10,681
Income before taxes 921 4,817
Provision for income taxes 363 1,842
Net income $558 $2,975
Basic EPS $.09 $.46
Diluted EPS $.08 $.46
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 or fax,
800-758-5804, ext. 281429
CONTACT:
Vince A. Elhilow, President and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, 561-659-9900; or Frank Hawkins or Julie Marshall,
both of Hawk Associates, Inc., 305-852-2383, or
info@hawkassociates.com, for Fidelity Bankshares
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