WEST PALM BEACH, Fla., July 15 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) the holding company for Fidelity Federal Bank
& Trust, announced today the company's net income for the second quarter ended
June 30, 2003 increased 20.2% to $4.9 million or $.34 basic and diluted
earnings per share. This compared to $4.1 million or $.27 basic and diluted
earnings per share for the quarter ended June 30, 2002. Net interest income
before credit adjustments increased by 17.1% to $21.7 million for the quarter.
Other income, derived from deposit account fees, insurance sales and other
fee income, together with income from the company's loan sales business,
increased by $1.9 million or 45% over the second quarter of 2002.
Net income for the six months ended June 30, 2003 rose 23.9% to
$10.0 million or $.70 basic and $.69 diluted earnings per share over
$8.1 million or $.53 basic and diluted earnings per share in the same period
in 2002. Net interest income before credit adjustments rose 16.9% in the
first six months to $42.5 million. Other income was up 65% over the first six
months of 2002. Excluding the non-recurring gain on the sale of loans in
March 2003, the increase in other income would have been 46% for the six
months of 2003, compared to the first six months end of 2002.
During the second quarter, the company again experienced mild margin
compression. At June 30, 2003 the company's net yield on earning assets was
3.34%, compared to 3.43% at March 31, 2003. However, the company also
continued to increase deposits. While certificates of deposit declined by
$29.2 million during the second quarter, the company recorded net deposit
growth of $135.9 million. These funds were invested in short-term, temporary
investments and interest earning deposits at much lower yields than retail
loans, contributing to the company's margin compression.
Chairman and CEO Vince Elhilow said, "We are pleased with our progress in
increasing other income and our continuing efforts to make our balance sheet
more bank-like. Other income, due mainly to the inception of our loan sales
business this year, increased to 18.3% of interest income compared to 11.6% a
year ago. Loan sales have exceeded our most optimistic projections so far
this year. It is unclear whether that pace can be maintained. While our
total loan portfolio was up 16.9% over a year ago, our residential loan
portfolio grew only 6.6%."
Elhilow added, "Core deposits, consisting of checking, savings and money
market accounts, now comprise 67.8% of our deposits, while certificates of
deposit represent the remaining 32.2%. At December 31, 2002 and June 30,
2002, core deposits made up 59.6% and 53.9%, respectively, of the company's
deposits."
In June, 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 June 30, 2003, was
distributed on July 15, 2003.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $2.8 billion and deposits of $2.3 billion and operates in
Florida through 42 offices in Palm Beach, Martin 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 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 Six Months Six Months Year
Ended Ended Ended Ended Ended
June 30, June 30, June 30, June 30, Dec. 31,
2003 2002 2003 2002 2002
FOR THE PERIOD (In Thousands)
Interest income $36,336 $34,303 $71,167 $67,980 $137,867
Interest expense 14,650 15,784 28,696 31,649 61,768
Net interest
income 21,686 18,519 42,471 36,331 76,099
Chargeoffs -- 223 71 240 575
Recoveries -- 10 1 16 60
Gain on sale
of loans 3,613 21 3,611 43 74
Net income 4,931 4,101 10,048 8,109 16,798
PER COMMON SHARE
Net income:
Basic EPS $0.34 $0.27 $0.70 $0.53 $1.12
Diluted EPS 0.34 0.27 0.69 0.53 1.11
Dividends declared 0.10 0.10 0.20 0.20 0.40
Book value 11.81 11.41 11.81 11.41 11.37
Stock price:
High 23.60 27.47 23.60 22.47 22.47
Low 18.07 17.70 17.24 15.60 15.60
Close 22.30 22.11 22.30 22.11 17.90
AVERAGE FOR THE PERIOD (In Thousands)
Assets $2,760,628 $2,346,348 $2,660,386 $2,290,928 $2,349,524
Loans
receivable,
net 1,991,316 1,698,285 1,972,871 1,656,709 1,745,639
Mortgage-backed
securities 419,888 205,737 316,139 216,387 193,510
Investments 159,697 272,290 181,813 259,937 229,660
Deposits 2,196,940 1,727,755 2,099,292 1,689,559 1,752,316
Borrowed funds 334,483 378,010 337,382 376,510 372,000
Stockholders'
equity 175,042 181,319 173,023 180,635 177,009
SELECTED RATIOS
Return on average
assets 0.71% 0.70% 0.76% 0.71% 0.71%
Return on average
equity 11.27% 9.05% 11.61% 8.98% 9.49%
Interest rate
spread on
average assets
for the period 3.33% 3.31% 3.41% 3.32% 3.45%
Net yield on
average interest
earning assets
for the period 3.37% 3.40% 3.44% 3.41% 3.51%
Net yield on
interest earning
assets at end
of period 3.33% 3.48% 3.33% 3.48% 3.63%
Interest rate
spread at end
of period 3.30% 3.39% 3.30% 3.39% 3.60%
Ratio of interest
earning assets
to interest
bearing
liabilities at
end of period 101.20% 102.95% 101.20% 102.95% 101.01%
Ratio of non-
performing assets
to total assets 0.18% 0.24% 0.18% 0.24% 0.27%
Ratio of valuation
allowances to
non performing
assets 185.84% 126.86% 185.84% 126.86% 126.21%
Ratio of valuation
allowances to
loans receivable,
net 0.48% 0.43% 0.48% 0.43% 0.43%
Stockholders'
equity as a
percentage of
assets 6.26% 7.66% 6.26% 7.66% 6.93%
PERIOD END (In Thousands)
Total assets $2,833,313 $2,355,600 $2,833,313 $2,355,600 $2,439,397
Interest earning
cash and
investment
securities 136,633 249,278 136,633 249,278 166,286
Mortgage-backed
and corporate
debt securities 452,093 191,444 452,093 191,444 145,139
Loans
receivable,
net 2,037,970 1,744,594 2,037,970 1,744,594 1,935,999
Real estate
owned and held
for investment 232 -- 232 -- --
Loan loss
reserve 9,730 7,441 9,730 7,441 8,318
Other assets 53,217 35,882 53,217 35,882 41,528
Borrowed funds 331,505 377,119 331,505 377,119 326,537
Common shares
outstanding,
net of treasury
shares 15,015,197 15,802,206 15,015,197 15,802,206 14,860,327
Stockholders'
equity 177,354 180,325 177,354 180,325 169,087
Certain amounts in prior year have been reclassified to conform with the
June 30, 2003 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $36,336 $34,303 $71,167 $67,980
Interest expense 14,650 15,784 28,696 31,649
Net interest income before
provision for loan
losses 21,686 18,519 42,471 36,331
Provision for loan losses 693 316 1,483 817
Net interest income after
provision for loan
losses 20,993 18,203 40,988 35,514
Other income
Fees on deposit
accounts 2,202 1,727 4,104 3,345
Fees for other banking
services 2,563 2,149 4,857 3,980
All other income 1,255 277 4,070 549
Total other
income 6,020 4,153 13,031 7,874
Operating expense
Compensation and
benefits 11,304 9,113 22,400 17,608
Occupancy and
equipment 3,415 2,840 6,831 5,546
All other operating
expense 4,167 3,647 8,315 6,875
Total operating
expense 18,886 15,600 37,546 30,029
Income before taxes 8,127 6,756 16,473 13,359
Provision for income taxes 3,196 2,655 6,425 5,250
Net income $4,931 $4,101 $10,048 $8,109
Earnings per share:
Basic $.34 $.27 $.70 $.53
Diluted $.34 $.27 $.69 $.53
Certain amounts in prior year have been reclassified to conform with
the June 30, 2003 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
June 30, December 31,
2003 2002
(In Thousands)
Assets
Cash and interest earning deposits $153,740 $129,666
Assets available for sale 487,865 235,018
Loans:
Residential mortgage 1,431,790 1,456,483
Commercial mortgage 613,178 459,054
Consumer 160,907 141,343
Commercial business 125,425 146,205
Gross loans 2,331,300 2,203,085
Less:
Loans in process 282,970 260,380
Deferred costs (income) 630 (1,612)
Allowance for loan losses 9,730 8,318
Loans, Net 2,037,970 1,935,999
Office properties and equipment 69,588 67,784
FHLB stock 13,645 12,919
REO 232 --
All other assets 70,273 58,011
Total assets $2,833,313 $2,439,397
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $1,535,797 $1,130,586
Certificates of deposit 728,168 767,755
Total deposits 2,263,965 1,898,341
Repurchase agreements 31,557 44,416
Borrowings from FHLB 271,198 253,371
Subordinated debentures 28,750 28,750
All other liabilities 60,489 45,432
Total liabilities 2,655,959 2,270,310
Stockholders' equity 177,354 169,087
Total liabilities and equity $2,833,313 $2,439,397
Certain amounts in prior year have been reclassified to conform with
the June 30, 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:
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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