WEST PALM BEACH, Fla., July 18 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL), the holding company for Fidelity Federal Bank
& Trust, announced today that net income for the second quarter ended June 30,
2005 rose 52% to $8.6 million or $0.35 basic and diluted earnings per share,
compared with $5.7 million or $0.26 basic and $0.25 diluted earnings per share
for the quarter ended June 30, 2004.
Net income for the six months ended June 30, 2005 rose 36% to
$15.5 million or $0.64 basic and $0.63 diluted earnings per share, compared to
$11.4 million or $0.52 basic and $0.50 diluted earnings per share for the six
months ended June 30, 2004.
The company's net interest rate spread increased for the fifth consecutive
quarter. On June 30, 2005, the company's net interest rate spread was 3.63%.
This represented an improvement of 54 basis points since March 31, 2004 and
was the primary reason for the company's improvement in net income for the
quarter and six months ended June 30, 2005, compared to the quarter and six
months ended June 30, 2004.
Core deposits, excluding all certificates of deposit, increased by
$152.6 million in the second quarter and $241.6 million for the six months
ended June 30, 2005. Of these increases, $117.2 million was attributable to
the acquisition of First Community Bancorp, which closed on April 1, 2005.
Certificate of deposit balances increased by $177.6 million for the quarter
and $141.5 million for the first six months of 2005. Compared to the first
quarter, total deposits increased by $330.2 million, of which $137.7 million
resulted from the acquisition of First Community. At June 30, 2005, core
deposits comprised 75.8% of the bank's deposits, while certificates of deposit
comprised 24.2%.
Through June 30, 2005, the company's loan production increased by 9.3%,
compared to the same six-month period in 2004. Consumer loan production,
which includes home equity lines of credit, with rates tied to the prime rate,
increased by 19.6% for the six months ended June 30, 2005, compared to the six
months ended June 30, 2004.
Fidelity Bankshares Chairman and CEO Vince A. Elhilow said, "We are
pleased with the financial performance of First Community Bancorp during its
initial quarter as part of Fidelity. As anticipated, the addition of First
Community strengthened our balance sheet and our position in the western part
of Palm Beach County. We had expected to incur as much as $1 million in
expenses relating to the acquisition and integration of First Community. These
expenses, largely severance, retention and stay bonuses for employees of First
Community, did not materialize as that company, prior to closing, reduced
employees through attrition, with the result that Fidelity absorbed all
remaining employees. All other acquisition costs were minimal."
The board approved a cash dividend of $0.08 per share for stockholders of
record on June 30, 2005. This distribution was paid on July 15, 2005.
On June 30, 2005, Fidelity Bankshares, Inc., through its subsidiary
Fidelity Federal Bank & Trust, had assets of $3.8 billion and deposits of
$3.2 billion and operates in Florida through 47 offices in Palm Beach, Martin
and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on
http://www.hawkassociates.com/fffl/profile.htm .
Financial statements for the quarter follow.
For more information, contact Chairman 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) 451-1888, e-mail:
info@hawkassociates.com . Information about Fidelity Bankshares, Inc. can be
found on 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 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 Months Three Months
Ended Ended
June 30, June 30,
2005 2004
FOR THE PERIOD (In Thousands)
Interest income $50,076 $39,091
Interest expense 17,344 14,506
Net interest income 32,732 24,585
Chargeoffs 96 32
Recoveries -- --
Gain on sale of loans 121 151
Gain (loss) on sale of mortgage-
backed and investment securities -- 467
Net income 8,647 5,688
PER COMMON SHARE
Net Income: (1)
Basic EPS $0.35 $0.26
Diluted EPS 0.35 0.25
Dividends declared (1) 0.08 0.07
Book value (1) 10.96 8.33
Stock price: (1)
High 26.98 24.73
Low 22.27 20.41
Close 26.52 23.63
AVERAGE FOR THE PERIOD (In Thousands)
Assets $3,685,764 $3,317,404
Loans receivable, net 2,609,769 2,365,533
Mortgage-backed securities 692,585 439,250
Investments 113,669 268,536
Deposits 3,080,406 2,654,778
Borrowed funds 292,771 395,366
Stockholders' equity 267,856 191,213
SELECTED RATIOS
Return on average assets 0.94% 0.69%
Return on average equity 12.91% 11.90%
Interest rate spread on average
assets for the period 3.81% 3.19%
Net yield on average interest
earning assets for the period 3.83% 3.20%
Net yield on interest earning
assets at end of period 3.64% 3.33%
Interest rate spread at end of
period 3.63% 3.32%
Ratio of interest earning assets to
interest bearing liabilities at
end of period 100.63% 100.41%
Ratio of non performing assets to
total assets 0.16% 0.31%
Ratio of valuation allowances to
non performing assets 258.10% 117.09%
Ratio of valuation allowances to
loans receivable, net 0.57% 0.51%
Stockholders' equity as a
percentage of assets 7.24% 5.56%
PERIOD END (In Thousands)
Total assets $3,797,106 $3,402,619
Interest earning cash and
investment securities 70,024 192,278
Mortgage-backed securities 673,226 503,254
Loans receivable, net 2,718,696 2,448,022
Federal Home Loan Bank Stock 12,847 19,905
Real estate owned and held for
investment 7 7
Loan loss reserve 15,519 12,436
All other assets 322,306 239,153
Borrowed funds 255,129 474,650
Common shares outstanding, net of
treasury shares (1) 25,097,604 22,695,039
Stockholders' equity 275,019 189,113
Six Months Six Months Year
Ended Ended Ended
June 30, June 30, December 31,
2005 2004 2004
FOR THE PERIOD (In Thousands)
Interest income $95,400 $77,153 $164,664
Interest expense 32,595 28,655 59,864
Net interest income 62,805 48,498 104,800
Chargeoffs 97 99 252
Recoveries -- 25 25
Gain on sale of loans 473 257 619
Gain (loss) on sale of mortgage-
backed and investment securities -- 1,053 407
Net income 15,463 11,375 22,897
PER COMMON SHARE
Net Income: (1)
Basic EPS $0.64 $0.52 $1.04
Diluted EPS 0.63 0.50 1.01
Dividends declared (1) 0.16 0.13 0.28
Book value (1) 10.96 8.33 10.29
Stock price: (1)
High 28.85 25.63 28.85
Low 22.27 20.41 20.41
Close 26.52 23.63 28.51
AVERAGE FOR THE PERIOD (In Thousands)
Assets $3,595,145 $3,220,109 $3,336,797
Loans receivable, net 2,559,305 2,296,421 2,424,354
Mortgage-backed securities 651,071 453,152 466,035
Investments 117,712 238,446 227,328
Deposits 2,950,947 2,581,122 2,665,929
Borrowed funds 320,175 376,242 400,498
Stockholders' equity 261,392 189,786 199,273
SELECTED RATIOS
Return on average assets 0.86% 0.71% 0.69%
Return on average equity 11.83% 11.99% 11.49%
Interest rate spread on average
assets for the period 3.74% 3.23% 3.33%
Net yield on average interest
earning assets for the period 3.77% 3.25% 3.36%
Net yield on interest earning assets
at end of period 3.64% 3.33% 3.59%
Interest rate spread at end of
period 3.63% 3.32% 3.53%
Ratio of interest earning assets to
interest bearing liabilities at
end of period 100.63% 100.41% 100.12%
Ratio of non performing assets to
total assets 0.16% 0.31% 0.19%
Ratio of valuation allowances to non
performing assets 258.10% 117.09% 211.85%
Ratio of valuation allowances to
loans receivable, net 0.57% 0.51% 0.53%
Stockholders' equity as a percentage
of assets 7.24% 5.56% 7.24%
PERIOD END (In Thousands)
Total assets $3,797,106 $3,402,619 $3,470,539
Interest earning cash and investment
securities 70,024 192,278 106,238
Mortgage-backed securities 673,226 503,254 529,640
Loans receivable, net 2,718,696 2,448,022 2,556,700
Federal Home Loan Bank Stock 12,847 19,905 17,399
Real estate owned and held for
investment 7 7 --
Loan loss reserve 15,519 12,436 13,628
All other assets 322,306 239,153 260,562
Borrowed funds 255,129 474,650 350,560
Common shares outstanding, net of
treasury shares (1) 25,097,604 22,695,039 24,425,050
Stockholders' equity 275,019 189,113 251,283
(1) Reflects 3 for 2 stock split distributed in form of a stock dividend
paid on January 14, 2005 to stockholders of record on December 31, 2004.
Certain amounts in prior year have been reclassified to conform with
the June 30, 2005 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $50,076 $39,091 $95,400 $77,153
Interest expense 17,344 14,506 32,595 28,655
Net interest
income before
provision for
loan losses 32,732 24,585 62,805 48,498
Provision for loan
losses 422 794 994 1,391
Net interest
income after
provision for
loan losses 32,310 23,791 61,811 47,107
Other income
Fees on deposit
accounts 2,799 2,795 5,300 5,634
Fees for other
banking services 3,226 2,997 6,122 5,669
Gain on sale of
loans 121 151 473 257
Gain on sale of
securities -- 467 -- 1,053
All other income 457 747 844 1,007
Total other
income 6,603 7,157 12,739 13,620
Operating expense
Compensation and
benefits 14,215 12,521 28,164 24,466
Occupancy and
equipment 5,029 3,943 9,817 7,953
All other
operating expense 5,735 5,083 11,597 9,594
Total operating
expense 24,979 21,547 49,578 42,013
Income before taxes 13,934 9,401 24,972 18,714
Provision for
income taxes 5,287 3,713 9,509 7,339
Net income $8,647 $5,688 $15,463 $11,375
Earnings per
share: (1)
Basic $.35 $.26 $.64 $.52
Diluted $.35 $.25 $.63 $.50
Shares used for
EPS computations:(1)
Basic 24,436,475 21,995,924 24,139,048 21,958,122
Diluted 24,995,395 22,714,866 24,716,758 22,699,404
(1) Reflects 3 for 2 stock split distributed in the form of a stock
dividend paid on January 14, 2005 to stockholders of record on December
31, 2004.
Certain amounts in prior year have been reclassified to conform with
the June 30, 2005 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
June 30, December 31,
2005 2004
(In Thousands)
Assets
Cash and interest earning deposits $139,816 $149,409
Assets available for sale 467,764 505,629
Assets held to maturity 270,278 89,167
Loans:
Residential mortgage 1,715,212 1,715,636
Commercial mortgage 1,102,415 972,546
Consumer 275,010 231,333
Commercial business 133,327 125,791
Gross loans 3,225,964 3,045,306
Less:
Loans in process 488,688 472,324
Deferred costs (income) 3,061 2,654
Allowance for loan losses 15,519 13,628
Loans, Net 2,718,696 2,556,700
Office properties and equipment 91,543 83,439
FHLB stock 12,847 17,399
REO 7 --
All other assets 96,155 68,796
Total assets $3,797,106 $3,470,539
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,423,638 $2,182,020
Certificates of deposit 774,146 632,650
Total deposits 3,197,784 2,814,670
Repurchase agreements 77,358 46,097
Borrowings from FHLB 124,163 250,855
Subordinated debentures 53,608 53,608
All other liabilities 69,174 54,026
Total liabilities 3,522,087 3,219,256
Stockholders' equity 275,019 251,283
Total liabilities and equity $3,797,106 $3,470,539
Certain amounts in prior year have been reclassified to conform with the
June 30, 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 and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, +1-561-803-9900; or Frank Hawkins or Julie Marshall,
both of Hawk Associates, Inc., +1-305-451-1888, or
info@hawkassociates.com, for Fidelity Bankshares
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