WEST PALM BEACH, Fla., July 19 /PRNewswire/ --
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, 2001 was $1,301,000 or $.08 diluted earnings per share.
This compared with $1,733,000 or $.11 diluted earnings per share in the
comparable quarter of 2000. Interest income for the quarter rose 7.2% to $35.0
million compared with $32.6 million for the same quarter ended June 30, 2000.
Other income, excluding non-recurring income in both periods, rose 28.3% to
$3.0 million, compared with $2.3 million in the second quarter of 2000.
The company's total assets reached $2.06 billion and deposits rose 8.5%
from June 30, 2000 to $1.5 billion.
Net interest income, which included interest income on proceeds of the
company's recently completed public offering, improved by $1.1 million in the
June 30, 2001 quarter. In addition, other income improved by $664,000.
Offsetting these improvements was an increase in operating expense of $2.5
million. This included $1.4 million for increased employee compensation and
benefits largely reflecting an acceleration of hiring for the year 2001 to
facilitate proper training of new employees for a planned computer conversion
in October 2001. The new computer system is expected to enhance the bank's
depository and lending products and services including Internet banking
opportunities. The company does not anticipate any substantial employee
staffing additions for the balance of the year. At June 30, 2001 the company
had 641 employees. This compared with 596 employees at March 31, 2001 and 578
employees at December 31, 2000.
On a sequential basis, net income for the quarter ended June 30, 2001 was
$1.3 million compared to $558,000 for the quarter ended March 31, 2001.
Excluding a one-time $1.1 million charge during the quarter ended March 31,
2001 related to the planned computer conversion, the Company's operating
expenses increased by $1.4 million during the quarter ended June 30, 2001
compared to the previous quarter, principally as a result of the increase in
number of employees.
The company's net income for the six months ended June 30, 2001 was
$1,859,000 or $.12 diluted earnings per share of common stock, as compared to
net income of $4,708,000 or $.30 diluted earnings per share of common stock
for the same period in 2000. While earnings in the six months ended June 30,
2001 were negatively impacted by the $1.1 million computer charge, other
income for the six months ended June 30, 2000 included non-recurring income of
$2.4 million, which resulted from the receipt of stock of John Hancock
Financial as a result of their demutualization.
Vince Elhilow, president and CEO of Fidelity Bankshares, Inc., said, "This
was a historic quarter for our company with the successful completion of the
second stage conversion from mutual to stock holding company entirely owned by
public shareholders. Our financial results in the first half of this year were
heavily impacted by our investment in our new computer system that will be
installed during the fourth quarter. This includes both the one-time charge
of $1.1 million in the first quarter as well as the increases in personnel
reflected in our second quarter results. We believe this is a necessary
investment to insure the most effective transition possible to the new system,
which will facilitate our growth in coming years."
"Looking ahead," Elhilow said, "our financial results for the balance of
the year will reflect the investment we are making this year in our computer
conversion. Nevertheless, we expect to benefit from solid top line growth
reflecting the continuing benefit from our new branches."
In June 2001, the company's board of directors approved the payment of a
quarterly cash dividend of $.10 per share of common stock to stockholders. The
dividend was paid July 13, 2001 to stockholders of record as of June 30, 2001.
This was the 30th consecutive quarterly dividend paid by the company.
Financial highlights, selected unaudited financial data and selected
unaudited operating data follow.
Fidelity Bankshares Inc., through its wholly-owned subsidiary Fidelity
Federal Bank & Trust, has assets of $2.1 billion and deposits of nearly $1.5
billion and operates in Florida through 37 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
Year 3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended Ended
Dec. 31, June 30, June 30, June 30, June 30,
2000 2001 2000 2001 2000
FOR THE PERIOD (In Thousands)
Interest
income $132,580 $34,954 $32,601 $69,552 $63,077
Interest
expense 85,671 22,072 20,768 44,850 39,857
Net interest
income 46,909 12,882 11,833 24,702 23,220
Net income 8,521 1,301 1,733 1,859 4,708
PER COMMON SHARE
Net income:
Basic EPS $0.54 $0.09 $0.11 $0.12 $0.30
Diluted EPS 0.54 0.08 0.11 0.12 0.30
Dividends
declared 0.41 0.10 0.10 0.20 0.20
Book value 5.83 11.06 5.38 11.06 5.38
Stock price:
High 8.59 14.40 6.88 14.40 6.93
Low 5.54 10.76 5.73 8.17 5.54
Close 8.12 14.39 6.36 14.39 6.36
AVERAGE FOR THE PERIOD (In Thousands)
Assets $1,859,805 $2,074,030 $1,845,407 $2,021,083 $1,804,307
Loans
receivable,
net 1,272,362 1,418,665 1,248,559 1,400,634 1,220,708
Mortgage-
backed
securities 349,498 307,628 356,900 313,100 362,427
Investments 100,667 174,392 103,963 146,150 87,849
Deposits 1,400,130 1,535,546 1,390,896 1,520,205 1,372,932
Borrowed
funds 336,065 330,415 334,692 327,578 312,851
Stockholders'
equity 85,461 133,584 83,880 115,882 83,064
SELECTED RATIOS
Return on
average
assets 0.46% 0.25% 0.38% 0.18% 0.52%
Return on
average
equity 9.97% 3.90% 8.26% 3.21% 11.34%
Interest rate
spread on
average assets
for the
period 2.77% 2.62% 2.82% 2.62% 2.82%
Net yield on
average
interest
earning
assets
for the
period 2.72% 2.71% 2.77% 2.66% 2.78%
Net yield on
interest
earning
assets at
end of period 2.74% 2.91% 2.76% 2.91% 2.76%
Interest rate
spread at end
of period 2.78% 2.75% 2.81% 2.75% 2.81%
Ratio of
interest
earning assets
to interest
bearing
liabilities
at end of
period 98.94% 103.66% 99.05% 103.66% 99.05%
Ratio of non-
performing
assets to
total assets 0.26% 0.22% 0.17% 0.22% 0.17%
Ratio of
valuation
allowances
to non-performing
assets 98.41% 123.55% 128.66% 123.55% 128.66%
Ratio of
valuation
allowances to
loans
receivable,
net 0.36% 0.40% 0.32% 0.40% 0.32%
Stockholders'
equity as a
percentage of
assets 4.74% 8.45% 4.46% 8.45% 4.46%
PERIOD END (In Thousands)
Total
assets $1,933,449 $2,064,556 $1,896,167 $2,064,556 $1,896,167
Investments 105,163 166,746 125,721 166,746 125,721
Loans
receivable,
net 1,361,232 1,447,970 1,275,808 1,447,970 1,275,808
Mortgage-
backed
securities 322,223 262,194 351,261 262,194 351,261
Deposits 1,497,818 1,515,820 1,396,914 1,515,820 1,396,914
Borrowed
funds 310,005 325,775 373,418 325,775 373,418
Stockholders'
equity 91,651 174,424 84,487 174,424 84,487
All references above to share data (including per share amounts, earnings
per share, and book value per share) have been restated giving
retroactive recognition to the exchange ratio due to the completion of
our second stage stock conversion referred to in our press release.
Fidelity Bankshares, Inc.
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
(In Thousands, except per share data)
Selected Operating Data:
Interest income $34,954 $32,601 $69,552 $63,077
Interest expense 22,072 20,768 44,850 39,857
Net interest income 12,882 11,833 24,702 23,220
Provision for loan
losses 326 364 906 565
Net interest income
after provision for
loan losses 12,556 11,469 23,796 22,655
Other income 3,010 2,346 5,866 6,658
Operating expense 13,408 10,943 26,583 21,624
Income before taxes 2,158 2,872 3,079 7,689
Provision for income
taxes 857 1,139 1,220 2,981
Net income $1,301 $1,733 $1,859 $4,708
Basic EPS $.09 $ .11 $ .12 $ .30
Diluted EPS $.08 $ .11 $ .12 $ .30
SOURCE Fidelity Bankshares, Inc.
 back to top
Related links:
http://www.fidfed.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/281429.html
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, +1-305-852-2383, or email,
info@hawkassociates.com
|
