WEST PALM BEACH, Fla., July 20 /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, 2004, was $5.7 million or $.39 basic and $.38 diluted earnings per
share. This compared with $4.9 million or $.34 basic and diluted earnings per
share for the quarter ended June 30, 2003.
The company's other income for the second quarter was $7.2 million, an
increase of $1.1 million, compared to the same quarter in 2003. During the
quarter, the company sold $10.5 million of securities, resulting in a gain of
approximately $467,000. These securities were sold as the company continued
to restructure its investment portfolio in an effort to reduce interest rate
risk as interest rates begin to rise. By comparison, the quarter ended June
30, 2003 included no such gains.
The company realized gains on the sale of loans of $151,000, compared to
$1.1 million for the second quarter a year ago. The company began selling most
of its 30-year, fixed rate, residential mortgage production in 2003 in an
effort to minimize interest rate risk in an expected increasing rate
environment. Thus far in 2004, customer demand for 30-year, fixed rate
residential loans has been limited with customers opting for three to seven
year hybrid adjustable rate loans. Consequently, loan sales have been
significantly limited in 2004 compared to 2003. Miscellaneous other income
for the quarter included a gain of $500,000 resulting from the sale of surplus
land adjacent to one of the bank's branches.
The company substantially completed the restructuring of its securities
portfolio during the second quarter. As a result, the company's net interest
margin at June 30, 2004 was 3.33%, compared to 3.10% at March 31, 2004 and
3.30% at December 31, 2003.
For the six months ended June 30, 2004, the company's net income was
$11.4 million, or $.78 basic and $.75 diluted earnings per share. This
compares to $10.0 million net income and $.70 basic and $.69 diluted earnings
per share for the six months ended June 30, 2003.
Chairman and CEO Vince Elhilow said, "Our core deposits, consisting of
checking, savings and money market accounts increased by $66.5 million during
the quarter and now comprise 75.9% of total deposits. Certificates of deposit
represent the remaining 24.1%. Total deposits reached $2.68 billion, an
increase of $412.0 million or 18.2% during the 12 months ended June 30 2004.
We expect our steadily growing core deposit base will help minimize interest
rate risk in an environment of increasing interest rates."
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, 2004, was
distributed on July 15, 2004.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $3.40 billion and deposits of $2.68 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.
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) 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.
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 Six Months Six Months Year
Ended Ended Ended Ended Ended
June 30, June 30, June 30, June 30, Dec. 31,
2004 2003 2004 2003 2003
FOR THE PERIOD
(In Thousands)
Interest
income $39,091 $36,336 $77,153 $71,167 $143,683
Interest
expense 14,506 14,650 28,655 28,696 57,164
Net interest
income 24,585 21,686 48,498 42,471 86,519
Chargeoffs 32 -- 99 71 322
Recoveries 22 -- 25 1 1
Gain on sale
of loans 151 1,054 257 3,613 4,159
Gain (loss)
on sale of
mortgage-backed
and investment
securities 467 -- 1,053 -- (2,364)
Net income 5,688 4,931 11,375 10,048 17,921
PER COMMON SHARE
Net income:
Basic EPS $0.39 $0.34 $0.78 $0.70 $1.24
Diluted EPS 0.38 0.34 0.75 0.69 1.22
Dividends
declared 0.10 0.10 0.20 0.20 0.40
Book value 12.50 11.81 12.50 11.81 12.28
Stock price:
High 37.10 23.60 38.45 23.60 32.47
Low 30.62 18.07 30.62 17.24 17.20
Close 35.45 22.30 35.45 22.30 31.40
AVERAGE FOR
THE PERIOD
(In Thousands)
Assets $3,317,404 $2,760,628 $3,220,109 $2,660,386 $2,798,378
Loans
receivable,
net 2,365,533 1,991,316 2,296,421 1,972,871 2,037,993
Mortgage-
backed
securities 439,250 419,888 453,152 316,139 399,898
Investments 268,536 159,697 238,446 181,813 174,896
Deposits 2,654,778 2,196,940 2,581,122 2,099,292 2,235,207
Borrowed
funds 395,366 334,483 376,242 337,382 335,832
Stockholders'
equity 191,213 175,042 189,786 173,023 176,477
SELECTED RATIOS
Return on
average
assets 0.69% 0.71% 0.71% 0.76% 0.64%
Return on
average
equity 11.90% 11.27% 11.99% 11.61% 10.15%
Interest rate
spread on
average
assets
for the
period 3.19% 3.33% 3.23% 3.41% 3.28%
Net yield on
average
interest
earning
assets
for the
period 3.20% 3.37% 3.25% 3.44% 3.31%
Net yield on
interest
earning
assets at
end of
period 3.33% 3.33% 3.33% 3.33% 3.30%
Interest rate
spread at
end of
period 3.32% 3.30% 3.32% 3.30% 3.29%
Ratio of
interest
earning
assets to
interest
bearing
liabilities
at end of
period 100.41% 101.20% 100.41% 101.20% 100.49%
Ratio of
non performing
assets to
total
assets 0.31% 0.18% 0.31% 0.18% 0.37%
Ratio of
valuation
allowances to
non performing
assets 117.09% 185.84% 117.09% 185.84% 99.12%
Ratio of
valuation
allowances
to loans
receivable,
net 0.51% 0.48% 0.51% 0.48% 0.51%
Stockholders'
equity as a
percentage
of assets 5.56% 6.26% 5.56% 6.26% 6.05%
PERIOD END
(In Thousands)
Total
assets $3,402,619 $2,833,313 $3,402,619 $2,833,313 $3,048,222
Interest
earning cash
and investment
securities 192,279 136,633 192,279 136,633 156,528
Mortgage-backed
and corporate
debt
securities 503,254 452,093 503,254 452,093 471,228
Loans
receivable,
net 2,448,022 2,037,970 2,448,022 2,037,970 2,191,696
Federal Home
Loan Bank
Stock 19,905 13,645 19,905 13,645 13,322
Real estate
owned and
held for
investment 7 232 7 232 --
Loan loss
reserve 12,436 9,730 12,436 9,730 11,119
Other
assets 259,057 192,740 259,057 192,740 215,448
Borrowed
funds 474,648 331,505 474,648 331,505 358,970
Common shares
outstanding,
net of
treasury
shares 15,130,026 15,015,197 15,130,026 15,015,197 15,024,648
Stockholders'
equity 189,113 177,354 189,113 177,354 184,509
Certain amounts in prior year have been reclassified to conform with the
June 30, 2004 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $39,091 $36,336 $77,153 $71,167
Interest expense 14,506 14,650 28,655 28,696
Net interest income before
provision for loan losses 24,585 21,686 48,498 42,471
Provision for loan losses 794 693 1,391 1,483
Net interest income after
provision for loan losses 23,791 20,993 47,107 40,988
Other income
Fees on deposit accounts 2,795 2,202 5,634 4,104
Fees for other banking
services 2,997 2,563 5,669 4,857
All other income 1,365 1,255 2,317 4,070
Total other income 7,157 6,020 13,620 13,031
Operating expense
Compensation and benefits 12,521 11,304 24,466 22,400
Occupancy and equipment 3,943 3,415 7,953 6,831
All other operating
expense 5,083 4,167 9,594 8,315
Total operating
expense 21,547 18,886 42,013 37,546
Income before taxes 9,401 8,127 18,714 16,473
Provision for income taxes 3,713 3,196 7,339 6,425
Net income $5,688 $4,931 $11,375 $10,048
Earnings per share:
Basic $.39 $.34 $.78 $.70
Diluted $.38 $.34 $.75 $.69
Certain amounts in prior year have been reclassified to conform with
the June 30, 2004 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
June 30, December 31,
2004 2003
(In Thousands)
Assets
Cash and interest earning deposits $117,295 $109,887
Assets available for sale 672,493 593,959
Loans:
Residential mortgage 1,659,920 1,509,249
Commercial mortgage 877,047 753,890
Consumer 201,270 185,450
Commercial business 128,705 131,292
Gross loans 2,866,942 2,579,881
Less:
Loans in process 403,442 374,974
Deferred costs (income) 3,042 2,092
Allowance for loan losses 12,436 11,119
Loans, Net 2,448,022 2,191,696
Office properties and equipment 76,204 70,663
FHLB stock 19,905 13,322
REO 7 --
All other assets 68,693 68,695
Total assets $3,402,619 $3,048,222
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,030,565 $1,774,222
Certificates of deposit 645,439 685,879
Total deposits 2,676,004 2,460,101
Repurchase agreements 34,651 42,089
Borrowings from FHLB 387,679 264,561
Subordinated debentures I 29,639 29,639
Subordinated debentures II 22,681 22,681
All other liabilities 62,852 44,642
Total liabilities 3,213,506 2,863,713
Stockholders' equity 189,113 184,509
Total liabilities and equity $3,402,619 $3,048,222
Certain amounts in prior year have been reclassified to conform with the
June 30, 2004 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:
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., +1-305-852-2383, or email,
info@hawkassociates.com, for Fidelity Bankshares
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