WEST PALM BEACH, Fla., Oct. 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 third
quarter ended September 30, 2002 was $4,194,000 or $.28 per basic and diluted
share. This was an increase of 81.3% from $2,313,000 or $.15 per basic and
diluted share reported for the comparable quarter a year ago.
Interest income for the quarter increased by $258,000 to $34,952,000 from
the comparable quarter in 2001. Interest expense declined $4,106,000 to
$15,627,000 resulting in a 30.3% improvement in net interest income of
$4,388,000. Other income grew by $1,108,000 or 33.3%, while operating expense
increased by 17.7% to $16,459,000.
Net income for the nine months ended September 30, 2002 rose 195% to
$12,303,000 or $.81 per diluted share from $4,172,000 or $.27 per diluted
share in the comparable period in 2001. Interest income for the nine months
declined by $1,314,000 to $102,932,000. This was offset by a decline of
$17,307,000 in interest expense. As a result, the company showed an
improvement of $15,993,000 in net interest income to $55,656,000. Other income
increased by $2,825,000 but was offset by an increase of $5,631,000 in
operating expense.
On a sequential basis, the company has reported net income of $4,194,000,
$4,101,000, $4,008,000 and $3,708,000 for the four quarters ended September
30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001, respectively.
Vince Elhilow, President and CEO, said, "We produced net income
improvement despite an avalanche of loan prepayments and modifications during
the past six months. This is because our production of new loans has more than
kept pace with prepayments and loan modifications. We are also pleased with
the continuing growth of core deposits consisting of checking, savings and
money market accounts. These now comprise 56.3% of our deposits, up from 54%
on June 30, 2002, 52% on March 31, 2002 and 45.5% on December 31, 2001."
Elhilow said, "In May, 2002, the company's stockholders approved stock
option and other stock based compensation plans. In an effort to minimize
dilution to stockholders, we instituted a stock buy-back program to fund these
plans. To date, we have repurchased nearly 682,000 shares of the 1,000,000
shares we intend to purchase. The buy-back plan has also contributed to
improvement in earnings per share."
In September, the Board of Directors approved payment of a quarterly
dividend of $0.10 for each share of common stock. The dividend, payable to
stockholders of record as of September 30, 2002, was distributed on October
11, 2002.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $2.45 billion and deposits of $1.83 billion and operates
in Florida through 39 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 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) 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.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.
Selected Unaudited Operating Data
Three Months Ended Nine Months Ended
September 30, September 30,
(Unaudited) (Unaudited)
2002 2001 2002 2001
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $34,952 $34,694 $102,932 $104,246
Interest expense 15,627 19,733 47,276 64,583
Net interest income
before provision
for loan losses 19,325 14,961 55,656 39,663
Provision for loan
losses 459 483 1,276 1,389
Net interest income
after provision
for loan losses 18,866 14,478 54,380 38,274
Other income
Fees on deposit
accounts 1,884 1,347 5,229 3,736
Fees for other
banking services 2,194 1,653 6,175 4,529
All other income 359 329 908 1,222
Total other
income 4,437 3,329 12,312 9,487
Operating expense
Compensation and
benefits 9,875 8,140 27,483 23,142
Occupancy and
equipment 2,954 2,696 8,500 7,779
All other operating
expense 3,630 3,147 10,506 9,937
Total operating
expense 16,459 13,983 46,489 40,858
Income before taxes 6,844 3,824 20,203 6,903
Provision for income
taxes 2,650 1,511 7,900 2,731
Net income $4,194 $2,313 $12,303 $4,172
Earnings per share:
Basic $.28 $.15 $.81 $.27
Diluted $.28 $.15 $.81 $.27
Certain amounts in prior year have been reclassified to conform with the
September 30, 2002 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
September 30, December 31,
2002 2001
(Unaudited) (Audited)
(In Thousands)
Assets
Cash and interest earnings deposits $177,550 $96,291
Assets available for sale 284,922 332,193
Loans:
Residential mortgage 1,395,568 1,254,169
Commercial mortgage 431,696 233,157
Consumer 133,689 105,077
Commercial business 143,030 188,045
Gross loans 2,103,983 1,780,448
Less:
Loans in process 248,550 192,465
Deferred costs (income) (1,876) (2,289)
Allowance for loan losses 7,860 6,847
Loans, Net 1,849,449 1,583,425
Office properties and equipment 65,476 59,235
FHLB stock 15,763 14,577
REO -- 219
All other assets 52,760 50,995
Total assets $2,445,920 $2,136,935
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $1,032,979 $709,601
Certificates of deposit 800,553 849,835
Total deposits 1,833,532 1,559,436
Repurchase agreements 40,944 36,326
Borrowings from FHLB 305,943 290,266
Subordinated debentures 28,750 28,750
All other liabilities 63,091 44,545
Total liabilities 2,272,260 1,959,323
Stockholders' equity 173,660 177,612
Total liabilities and equity $2,445,920 $2,136,935
Certain amounts in prior year have been reclassified to conform with the
September 30, 2002 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months Nine Months Nine Months Year
Ended Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Dec. 31,
2002 2001 2002 2001 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
FOR THE PERIOD (In Thousands)
Interest
income $34,952 $34,694 $102,932 $104,246 $138,480
Interest
expense 15,627 19,733 47,276 64,583 81,422
Net interest
income 19,325 14,961 55,656 39,663 57,058
Chargeoffs 67 21 307 104 117
Recoveries 27 1 43 5 5
Gain on sale
of loans 24 8 67 268 296
Net income 4,194 2,313 12,303 4,172 7,880
PER COMMON SHARE
Net income:
Basic EPS $0.28 $0.15 $0.81 $0.27 $0.52
Diluted EPS 0.28 0.15 0.81 0.27 0.51
Dividends
declared 0.10 0.10 0.30 0.30 0.40
Book value 10.96 11.23 10.96 11.23 11.25
Stock price:
High 22.10 15.35 22.47 15.35 18.40
Low 16.60 12.40 15.60 8.17 8.17
Close 17.90 13.35 17.90 13.35 15.97
AVERAGE FOR THE PERIOD (In Thousands)
Assets $2,394,782 $2,085,447 $2,325,994 $2,042,081 $2,061,994
Loans
receivable,
net 1,790,353 1,542,217 1,705,084 1,429,077 1,458,899
Mortgage-
backed
securities 181,508 286,801 205,307 303,887 291,068
Investments 231,214 159,926 238,919 149,601 152,449
Deposits 1,791,513 1,535,669 1,742,134 1,526,829 1,536,758
Borrowed
funds 376,913 330,475 376,646 328,396 327,544
Stockholders'
equity 175,683 176,065 178,685 134,101 144,323
SELECTED RATIOS
Return on
average
assets 0.70% 0.44% 0.71% 0.27% 0.38%
Return on
average
equity 9.55% 5.25% 9.18% 4.15% 5.46%
Interest rate
spread on
average
assets for
the period 3.47% 2.75% 3.41% 2.74% 2.91%
Net yield on
average
interest
earning
assets for
the period 3.51% 3.01% 3.45% 2.81% 3.00%
Net yield on
interest
earning
assets at
end of
period 3.53% 3.32% 3.53% 3.32% 3.70%
Interest rate
spread at
end of period 3.46% 3.19% 3.46% 3.19% 3.60%
Ratio of
interest
earning
assets to
interest
bearing
liabilities
at end
of period 102.66% 103.39% 102.66% 103.39% 103.07%
Ratio of non
performing
assets to
total assets 0.23% 0.23% 0.23% 0.23% 0.24%
Ratio of
valuation
allowances
to non-
performing
assets 137.65% 126.28% 137.65% 126.28% 130.94%
Ratio of
valuation
allowances
to loans
receivable,
net 0.42% 0.41% 0.42% 0.41% 0.43%
Stockholders'
equity as a
percentage
of assets 7.10% 8.38% 7.10% 8.38% 8.31%
PERIOD END (In Thousands)
Total
assets $2,445,920 $2,112,605 $2,445,920 $2,112,605 $2,136,935
Cash and
investment
securities 253,686 172,917 253,686 172,917 152,446
Mortgage-
backed and
corporate
debt
securities 164,751 231,915 164,751 231,915 237,671
Loans
receivable,
net 1,849,450 1,512,363 1,849,450 1,512,363 1,583,425
Real estate
owned and
held for
investment -- 51 -- 51 219
Loan loss
reserve 7,860 6,195 7,860 6,195 6,847
Other assets 38,703 30,522 38,703 30,522 34,997
Borrowed
funds 375,637 323,055 375,637 323,055 355,342
Common shares
out-
standing 15,850,506 15,767,038 15,850,506 15,767,038 15,781,244
Stock-
holders'
equity 173,660 177,026 173,660 177,026 177,612
Certain amounts in prior year have been reclassified to conform with the
September 30, 2002 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidfed.com
http://www.hawkassociates.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, Inc., +1-561-803-9900; or Frank Hawkins, or Julie
Marshall, both of Hawk Associates, Inc., +1-305-852-2383, or
info@hawkassociates.com, for Fidelity Bankshares, Inc.
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