WEST PALM BEACH, Fla., July 16 /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, 2002 was $4.1 million or $.27 basic and diluted
earnings per share. This compared with $1.3 million or $.09 basic and $.08
diluted earnings per share for the quarter ended June 30, 2001.
Interest income for the second quarter 2002 declined by $651,000 to $34.3
million, compared to the second quarter of 2001. Interest expense, however,
declined by $6.3 million to $15.8 million resulting in a $5.6 million or 43.8%
improvement in net interest income. Other income grew by $790,000 or 24.9%,
while operating expenses increased by 13.6% to $15.4 million.
Net income for the six months ended June 30, 2002 was $8.1 million or $.53
basic and diluted earnings per share, compared to $1.9 million or $.12 basic
and diluted earnings per share in the first half of 2001. Interest income for
the first half of the year declined by $1.6 million to $68 million, compared
to the six months ended June 30, 2001. This was offset by a decrease of $13.2
million in interest expense. As a result, the company recorded a $11.6 million
improvement in net interest income to $36.3 million. Non-operating income
increased by $1.3 million but was offset by an increase of $2.8 million in
operating expense.
On a sequential basis, the company's net income was $4.1 million, $4.0
million, $3.7 million and $2.3 million for the quarters ended June 30, 2002,
March 31, 2002, December 31, 2001 and September 30, 2001.
Vince Elhilow, president and CEO said, "We benefited in the first half of
the year from significant decreases in comparative interest costs as a result
of our ability to reprice certificates of deposit after June 30, 2001. This
was one factor which significantly contributed to net income improvement.
Another important factor was our core deposits, consisting of checking,
savings and money market accounts increased to 54% of total deposits at June
30, 2002, up from 45.5% at December 31, 2001 and 42% at June 30, 2001.
Commenting on the company's previously issued earnings guidance for the
2002 fiscal year, Elhilow said, "We now believe we will exceed the upper limit
of our previously issued guidance of $0.90 to $0.96 per share. We plan to
update our guidance for the balance of the year in August."
In June, the Board of Directors approved payment of a quarterly dividend
to stockholders of $0.10 per share on the company's common stock. The
dividend, payable to stockholders of record as of June 28, 2002, was
distributed on July 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 $2.36 billion and deposits of $1.75 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, Inc. 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.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.
This press release contains certain "forward-looking statements", which
may be identified by the use of such words as "believe", "expect", "intend,
"anticipate", "should", "planned", "estimated" and "potential". Examples of
forward-looking statements include, but are not limited to, estimates with
respect to our financial condition, results of operations and business that
are subject to various factors which could cause actual results to differ
materially from these estimates and most other statements that are not
historical in nature. These factors include, but are not limited to, general
and local economic conditions, changes in interest rates, deposit flows,
demand for mortgage and other loans, real estate values, and competition;
changes in accounting principles, policies or guidelines; changes in
legislation or regulation; and other economic, competitive, governmental,
regulatory, and technological factors affecting our operations, pricing,
products and services.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
2002 2001 2002 2001
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $34,303 $34,954 $67,980 $69,552
Interest expense 15,784 22,072 31,649 44,850
Net interest income
before provision
for loan losses 18,519 12,882 36,331 24,702
Provision for loan
losses 316 326 817 906
Net interest income
after provision for
loan losses 18,203 12,556 35,514 23,796
Other income
Fees on deposit
accounts 1,727 1,217 3,345 2,389
Fees for other
banking services 1,953 1,593 3,609 2,899
All other income 277 357 549 893
Total other
income 3,957 3,167 7,503 6,181
Operating expense
Compensation and
benefits 9,138 7,942 17,608 15,002
Occupancy and
equipment 2,840 2,642 5,546 5,083
All other operating
expense 3,426 2,981 6,504 6,813
Total operating
expense 15,404 13,565 29,658 26,898
Income before taxes 6,756 2,158 13,359 3,079
Provision for income
taxes 2,655 857 5,250 1,220
Net income $4,101 $1,301 $8,109 $1,859
Earnings per share:
Basic $.27 $.09 $.53 $.12
Diluted $.27 $.08 $.53 $.12
Certain amounts in prior year have been reclassified to conform with the
June 30, 2002 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
June 30, December 31,
2002 2001
(Unaudited) (Audited)
(In Thousands)
Assets
Cash and interest earnings deposits $185,779 $96,291
Assets available for sale 296,618 332,193
Loans:
Residential mortgage 1,335,472 1,254,169
Commercial mortgage 370,523 233,157
Consumer 123,585 105,077
Commercial business 140,917 188,045
Gross loans 1,970,497 1,780,448
Less:
Loans in process 220,444 192,465
Deferred costs (income) (1,982) (2,289)
Allowance for loan losses 7,441 6,847
Loans, Net 1,744,594 1,583,425
Office properties and equipment 62,322 59,235
FHLB stock 15,763 14,577
REO -- 219
All other assets 50,524 50,995
Total assets $2,355,600 $2,136,935
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $941,564 $709,601
Certificates of deposit 803,992 849,835
Total deposits 1,745,556 1,559,436
Repurchase agreements 39,854 36,326
Borrowings from FHLB 308,515 290,266
Subordinated debentures 28,750 28,750
All other liabilities 52,600 44,545
Total liabilities 2,175,275 1,959,323
Stockholders' equity 180,325 177,612
Total liabilities and equity $2,355,600 $2,136,935
Certain amounts in prior year have been reclassified to conform with the
June 30, 2002 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months
Ended Ended
June 30, June 30,
2002 2001
FOR THE PERIOD (In Thousands) (Unaudited) (Unaudited)
Interest income $34,303 $34,954
Interest expense 15,784 22,072
Net interest income 18,519 12,882
Chargeoffs 223 49
Recoveries 10 3
Gain on sale of loans 21 21
Net income 4,101 1,301
PER COMMON SHARE
Net income:
Basic EPS $0.27 $0.09
Diluted EPS 0.27 0.08
Dividends declared 0.10 0.10
Book value 11.41 11.06
Stock price:
High 22.47 14.40
Low 17.70 10.76
Close 22.11 14.39
AVERAGE FOR THE PERIOD (In Thousands)
Assets $2,346,334 $2,057,087
Loans receivable, net 1,703,838 1,418,665
Mortgage-backed securities 205,737 314,288
Investments 254,083 161,583
Deposits 1,753,222 1,551,303
Borrowed funds 378,010 327,379
Stockholders' equity 181,319 133,584
SELECTED RATIOS
Return on average assets 0.70% 0.25%
Return on average equity 9.05% 3.90%
Interest rate spread on average
assets for the period 3.38% 2.68%
Net yield on average interest
earning assets for the period 3.42% 2.72%
Net yield on interest earning
assets at end of period 3.48% 2.91%
Interest rate spread at end of
period 3.39% 2.75%
Ratio of interest earning assets
to interest bearing liabilities
at end of period 102.95% 103.66%
Ratio of non performing assets to
total assets 0.24% 0.22%
Ratio of valuation allowances to
non performing assets 126.86% 123.55%
Ratio of valuation allowances to
loans receivable, net 0.43% 0.40%
Stockholders' equity as a
percentage of assets 7.66% 8.45%
PERIOD END (In Thousands)
Total assets $2,355,600 $2,064,239
Cash and investment securities 249,278 166,420
Mortgage-backed and corporate
debt securities 191,444 300,031
Loans receivable, net 1,744,594 1,447,970
Real estate owned and held for
investment -- 98
Loan loss reserve 7,441 5,732
Other assets 35,882 29,311
Borrowed funds 377,119 325,775
Common shares outstanding 15,802,206 15,767,038
Stockholders' equity 180,325 174,424
Certain amounts in prior year have been reclassified to conform with
the June 30, 2002 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Six Months Six Months Year
Ended Ended Ended
June 30, June 30, December 31,
2002 2001 2001
FOR THE PERIOD (In Thousands) (Unaudited) (Unaudited) (Audited)
Interest income $67,980 $69,552 $138,480
Interest expense 31,649 44,850 81,422
Net interest income 36,331 24,702 57,058
Chargeoffs 240 84 117
Recoveries 16 4 5
Gain on sale of loans 43 260 296
Net income 8,109 1,859 7,880
PER COMMON SHARE
Net income:
Basic EPS $0.53 $0.12 $0.52
Diluted EPS 0.53 0.12 0.51
Dividends declared 0.20 0.20 0.40
Book value 11.41 11.06 11.25
Stock price:
High 22.47 14.40 18.40
Low 15.60 8.17 8.17
Close 22.11 14.39 15.97
AVERAGE FOR THE PERIOD (In Thousands)
Assets $2,290,916 $2,011,270 $2,061,994
Loans receivable, net 1,661,744 1,400,634 1,458,899
Mortgage-backed securities 216,387 319,929 291,068
Investments 242,836 133,408 152,449
Deposits 1,717,036 1,528,994 1,536,758
Borrowed funds 376,510 328,849 327,544
Stockholders' equity 180,635 115,882 144,323
SELECTED RATIOS
Return on average assets 0.71% 0.18% 0.38%
Return on average equity 8.98% 3.21% 5.46%
Interest rate spread on average
assets for the period 3.39% 2.67% 2.91%
Net yield on average interest
earning assets for the period 3.43% 2.66% 3.00%
Net yield on interest earning
assets at end of period 3.48% 2.91% 3.70%
Interest rate spread at end of
period 3.39% 2.75% 3.60%
Ratio of interest earning assets
to interest bearing
liabilities at end of period 102.95% 103.66% 103.07%
Ratio of non performing assets to
total assets 0.24% 0.22% 0.24%
Ratio of valuation allowances to
non performing assets 126.86% 123.55% 130.94%
Ratio of valuation allowances to
loans receivable, net 0.43% 0.40% 0.43%
Stockholders' equity as a
percentage of assets 7.66% 8.45% 8.31%
PERIOD END (In Thousands)
Total assets $2,355,600 $2,064,239 $2,136,935
Cash and investment securities 249,278 166,420 152,446
Mortgage-backed and corporate debt
securities 191,444 300,031 237,671
Loans receivable, net 1,744,594 1,447,970 1,583,425
Real estate owned and held for
investment -- 98 219
Loan loss reserve 7,441 5,732 6,847
Other assets 35,882 29,311 34,997
Borrowed funds 377,119 325,775 355,342
Common shares outstanding 15,802,206 15,767,038 15,781,244
Stockholders' equity 180,325 174,424 177,612
Certain amounts in prior year have been reclassified to conform with
the June 30, 2002 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidfed.com
CONTACT:
Vince A. Elhilow, President and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, +1-561-659-9900; or Frank Hawkins or Julie Marshall,
both of Hawk Associates, Inc., +1-305-852-2383, or email,
info@hawkassociates.com
CompanyNewsOn-Call:
http://www.prnewswire.com/gh/cnoc/comp/281429.html
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