Company Reports Assets of $4.2B; Deposits $3.4B
WEST PALM BEACH, Fla., July 18 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) announced today that net income for the
second fiscal quarter ended June 30, 2006 was $8.7 million or $0.35 basic
and $0.34 diluted earnings per share. This compared with net income of $8.6
million, or $0.35 basic and diluted earnings per share for the second
quarter of 2005.
During the quarter, the company terminated certain leases of office
properties. This resulted in a pre-tax charge against income of $243,000
for early termination of a lease and write-off of unamortized leasehold
improvements.
Net income for the six months ended June 30, 2006 was $16.5 million, or
$0.67 basic and $0.65 diluted earnings per share, compared to $15.5 million
or $0.64 basic and $0.63 diluted earnings per share for the six months
ended June 30, 2005.
The net interest margin for the quarter ended June 30, 2006 was 3.67%,
compared to 3.83% for the quarter ended June 30, 2005. On a
consecutive-quarter basis, the net interest margin for the quarter ended
March 31, 2006 was 3.49% and for the quarter ended December 31, 2005 was
3.68%.
Fidelity Bankshares Chairman and CEO Vince Elhilow said, "During the
quarter our deposits decreased by $310.1 million from March 31, 2006. We
were able to partially offset this with an increase of $113.5 million in
our repurchase agreements or collateralized sweep accounts, which are used
by our commercial customers. Therefore, in the aggregate, our customer
accounts declined by a net of $196.6 million. Of this net decline, $63.4
million was attributable to a decrease in certificates of deposit. In Boca
Raton, we opened our 52nd branch during the quarter and we are moving ahead
with plans to open four new offices, which are currently under
construction.
"Due to the relatively high market rates for certificates of deposit,
money market and savings deposits, we are going to continue to use
short-term borrowings from the Federal Home Loan Bank to fund loan growth
and operations, pending the opening of the four new branches. These
short-term borrowings will be repaid from deposits generated by the new
branch openings. Our core deposits, which exclude all certificates of
deposit as well as the sweep accounts mentioned above, were 77.4% of total
deposits at the end of the quarter, up from 74.5% of total deposits at the
end of last year. At the end of the second quarter a year ago, core
deposits were 75.8% of total deposits. This is good progress," Elhilow
said.
The company's board of directors declared a cash dividend of $0.08 per
share for stockholders of record on June 30, 2006. This distribution was
paid on July 14, 2006.
At June 30, 2006, Fidelity Bankshares, Inc., through its subsidiary
Fidelity Federal Bank & Trust, had assets of $4.2 billion and deposits of
$3.4 billion and operates in Florida through 52 offices in Palm Beach,
Broward, Martin and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on
http://www.hawkassociates.com/fidelitybankshares/profile.php .
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 . 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 .
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Three Six Six Year
Months Months Months Months Ended
Ended Ended Ended Ended
June 30, June 30, June 30, June 30, December 31,
2006 2005 2006 2005 2005
FOR THE PERIOD (In
Thousands)
Interest income $64,621 $50,076 $126,286 $95,400 $206,551
Interest expense 28,703 17,093 56,141 32,344 76,211
Net interest
income 35,918 32,983 70,145 63,056 130,340
Chargeoffs 7 96 97 97 330
Recoveries 2 -- 2 -- 1
Gain on sale of
loans 109 121 224 473 728
Net income 8,651 8,647 16,527 15,463 32,082
PER COMMON SHARE
Net Income:
Basic EPS $0.35 $0.35 $0.67 $0.64 $1.32
Diluted EPS 0.34 0.35 0.65 0.63 1.28
Dividends declared 0.08 0.08 0.16 0.16 0.32
Book value 11.66 10.95 11.66 10.95 11.34
Stock price:
High 33.81 26.98 35.05 28.85 34.20
Low 30.79 22.27 30.79 22.27 22.27
Close 31.82 26.52 31.82 26.52 32.70
AVERAGE FOR THE PERIOD
(In Thousands)
Total assets $4,211,354 $3,685,764 $4,205,581 $3,595,145 $3,762,083
Loans
receivable, net 3,245,922 2,609,769 3,177,984 2,559,305 2,723,586
Securities
available for
sale 374,635 489,232 390,478 492,040 467,603
Securities held to
maturity 233,627 276,790 236,656 228,736 242,217
Deposits 3,487,591 3,080,406 3,575,957 2,950,947 3,132,413
Borrowed funds 353,653 292,771 279,823 320,175 294,572
Stockholders'
equity 293,140 267,856 291,069 261,392 270,217
SELECTED RATIOS
Return on average
assets 0.82% 0.94% 0.79% 0.86% 0.85%
Return on average
equity 11.80% 12.91% 11.36% 11.83% 11.87%
Interest rate
spread on
average assets
for the period 3.62% 3.81% 3.54% 3.74% 3.70%
Net yield on
average interest
earning assets
for the period 3.67% 3.83% 3.58% 3.77% 3.74%
Ratio of interest
earning assets
to interest
bearing
liabilities
at end of
period 117.01% 115.68% 117.01% 115.68% 114.89%
Ratio of non
performing
assets to
total assets 0.25% 0.16% 0.25% 0.16% 0.22%
Ratio of valuation
allowances to non
performing
assets 159.28% 258.10% 159.28% 258.10% 176.94%
Ratio of valuation
allowances to loans
receivable, net 0.51% 0.57% 0.51% 0.57% 0.53%
Stockholders' equity
as a percentage
of assets 6.95% 7.23% 6.95% 7.23% 6.98%
PERIOD END
(In Thousands,
except for
share data)
Total assets $4,234,980 $3,797,288 $4,234,980 $3,797,288 $4,082,611
Interest
earning cash 26,269 5,207 26,269 5,207 39,283
Securities
available for
sale 349,473 467,764 349,473 467,764 410,473
Securities held to
maturity 263,600 270,278 263,600 270,278 242,497
Loans receivable,
net 3,272,228 2,718,696 3,272,228 2,718,696 3,036,710
Federal Home
Loan Bank
stock 20,365 12,847 20,365 12,847 11,398
Foreclosed
assets, net 1 7 1 7 1,793
Loan loss reserve 16,703 15,519 16,703 15,519 16,171
All other assets 303,044 322,489 303,044 322,489 340,457
Deposits 3,357,367 3,197,784 3,357,367 3,197,784 3,540,874
Borrowed funds 514,903 255,129 514,903 255,129 200,085
Common shares
outstanding 25,247,626 25,097,604 25,247,626 25,097,604 25,114,716
Stockholders'
equity 294,467 274,478 294,467 274,478 284,768
Certain amounts in prior year have been reclassified to conform with the
June 30, 2006 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Six
Months Months
Ended Ended
June 30, June 30,
2006 2005 2006 2005
(In Thousands, except (In Thousands, except
for share and per share for share and per share
data) data)
Selected
Operating Data:
Interest
income $64,621 $50,076 $126,286 $95,400
Interest
expense 28,703 17,093 56,141 32,344
Net interest
income before
provision for
loan losses 35,918 32,983 70,145 63,056
Provision for
loan losses 186 422 626 994
Net interest
income after
provision for
loan losses 35,732 32,561 69,519 62,062
Other income
Service charges
on deposit
accounts 3,099 2,799 6,116 5,300
Fees for other
banking
services 2,491 2,342 4,777 4,575
Net gain on
sale of
loans 109 121 224 473
Other income 435 457 849 844
Total other
income 6,134 5,719 11,966 11,192
Operating
expense
Compensation
and benefits 14,967 13,814 30,465 27,422
Occupancy and
equipment 4,297 3,461 8,069 6,811
Data
processing 1,733 1,568 3,572 3,006
All other
operating
expense 6,868 5,503 12,619 11,043
Total
operating
expense 27,865 24,346 54,725 48,282
Income before
taxes 14,001 13,934 26,760 24,972
Provision for
income taxes 5,350 5,287 10,233 9,509
Net income $8,651 $8,647 $16,527 $15,463
Earnings per
share:
Basic $0.35 $0.35 $0.67 $0.64
Diluted $0.34 $0.35 $0.65 $0.63
Shares used for
EPS computations:
Basic 24,681,186 24,436,475 24,649,759 24,139,049
Diluted 25,329,066 24,995,395 25,305,543 24,176,758
Certain amounts in prior year have been reclassified to conform with
the June 30, 2006 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
June 30, December 31,
2006 2005
(In Thousands)
Assets
Cash and interest earning
deposits $121,798 $189,940
Securities available for sale 349,473 410,473
Securities held to maturity 263,600 242,497
Loans:
Residential mortgage 1,669,488 1,523,740
Commercial mortgage 1,167,675 1,082,719
Consumer 308,909 295,622
Commercial business 146,083 153,916
Gross loans 3,292,155 3,055,997
Less:
Deferred fees (costs),
net 3,224 3,116
Allowance for loan
losses 16,703 16,171
Loans, net 3,272,228 3,036,710
Office properties and
equipment 93,888 91,164
FHLB
stock 20,365 11,398
Foreclosed assets, net 1 1,793
Goodwill 14,256 14,256
Core deposit intangible 6,147 6,528
All other assets 93,224 77,852
Total assets $4,234,980 $4,082,611
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and
money market accounts $2,599,742 $2,638,794
Certificates of deposit 757,625 902,080
Total deposits 3,357,367 3,540,874
Repurchase agreements 190,613 54,113
Borrowings from FHLB 270,682 92,364
Subordinated debentures 53,608 53,608
All other liabilities 68,243 56,884
Total liabilities 3,940,513 3,797,843
Stockholders' equity 294,467 284,768
Total liabilities and
equity $4,234,980 $4,082,611
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidelityfederal.com
http://www.hawkassociates.com
http://www.hawkassociates.com/fidelitybankshares/profile.php
CONTACT:
Vince A. Elhilow, Chairman and CEO, or
Richard D. Aldred, Chief Financial Officer, +1-561-803-9900, both
of Fidelity Bankshares, Inc.; or Frank Hawkins or Julie Marshall,
both of Hawk Associates, Inc., +1-305-451-1888, or
info@hawkassociates.com, for Fidelity Bankshares, Inc.
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