WEST PALM BEACH, Fla., Oct. 17 /PRNewswire/ -- Fidelity Bankshares, Inc.
(Nasdaq: FFFL) the holding company for Fidelity Federal Bank & Trust,
announced today the company's net income for the third fiscal quarter ended
September 30, 2000 was $1,847,000 or $.28 basic earnings per share of common
stock compared with $1,640,000 or $.25 basic earnings per share of common
stock for the comparable quarter a year earlier. Total assets at the end of
the quarter were $1.9 billion, compared with $1.7 billion on Dec. 31, 1999.
Total deposits at the end of the quarter were $1.4 billion.
Interest income for the quarter rose 20.3% to $34.4 million, compared with
$28.6 million for the same quarter ended September 30, 1999. Other income rose
56.0% to $3.0 million, compared with $1.9 million in the third quarter of
1999, principally reflecting income from the sale of John Hancock Financial
stock, but also increased fees on deposits and insurance sales.
The company's net income for the nine months ended September 30, 2000 was
$6,555,000 or $1.01 basic earnings per share of common stock. This compared
with net income for the nine months ended September 30, 1999 of $4,394,000 or
$.68 basic earnings per share of common stock.
Vince Elhilow, president of Fidelity Bankshares, Inc., said, "We benefited
from another excellent quarter that included solid growth from our 12 new
offices, which so far have generated $191 million in new deposits, of which
nearly 34% are core deposits. Net income and interest income are both growing
in line with our expectations and we are pleased that our total assets have
now passed $1.9 billion."
Operating expenses during the third quarter were $11.5 million, an
increase of $2.3 million over the comparable period a year earlier. The
increase included expenses associated with operations of the 12 new offices.
In the third quarter of 1999, operating expense included only six of the new
offices, three of which were opened during that quarter. Operating expenses
for the third quarter 2000 also were impacted by a $1.5 million increase in
employee compensation and benefits associated with the branch expansion.
While most of the increase in compensation expense was related to the bank's
expansion, $276,000 of the compensation increase was attributable to health
care costs.
For the nine months ended September 30, 2000, operating expenses were
$33.1 million, an increase of $6.8 million over the quarter ended September
30, 1999. This included a $4.6 million in increased compensation expense
primarily related to the opening of the new branches. However, increased
health care costs were responsible for $434,000 in increased compensation
expense.
After improving to 2.88% at March 31, 2000, the company's net interest
rate spread declined to 2.81% at June 30, 2000 and 2.80% at September 30,
2000, as the effects of the Federal Reserve's rate hikes began to be felt.
The company expects this interest margin compression to continue through the
remainder of 2000.
In September 2000, the company's board of directors approved the payment
of a quarterly cash dividend of $.25 per share of common stock to
stockholders, excluding the 3,542,000 shares held by the company's mutual
holding company parent. This dividend was paid October 13, 2000 to
stockholders of record as of September 30, 2000.
During the third quarter, the bank sold securities of John Hancock
Financial, received pursuant to Hancock's demutualization and public offering,
as a result of the bank's ownership of policies which were used to fund
certain employee retirement benefits. This resulted in a gain of
approximately $600,000 ($.06 per share after tax) during the quarter. The
company sold the remaining 50,000 shares of Hancock with a gain of
approximately $500,000 in the fourth quarter of 2000.
Financial highlights, selected unaudited financial data and selected
unaudited operating data are below.
Fidelity Bankshares, through its wholly owned subsidiary Fidelity Federal
Bank & Trust, has assets of over $1.9 billion and deposits of over
$1.4 billion and operates in Florida through 34 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
filling, 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 Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended Ended
Dec. 31, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 2000 1999 2000 1999
FOR THE
PERIOD
(In
Thousands)
Interest
income $110,925 $34,446 $28,622 $97,523 $81,646
Interest
expense 72,255 22,639 18,515 62,496 53,538
Net interest
income 38,670 11,807 10,107 35,027 28,108
Net income 9,114 1,847 1,640 6,555 4,394
PER COMMON
SHARE
Net income:
Basic EPS $1.42 $0.28 $0.25 $1.01 $0.68
Diluted EPS 1.40 0.28 0.25 1.00 0.68
Dividends
declared 1.00 0.25 0.25 0.75 0.75
Book value 12.83 13.36 12.51 13.36 12.51
Stock price:
High 23.25 20.75 19.50 20.75 23.25
Low 14.13 15.25 15.50 13.38 15.25
Close 14.13 20.50 16.00 20.50 16.00
AVERAGE FOR
THE PERIOD
(In
Thousands)
Assets $1,663,240 $1,902,458 $1,705,383 $1,828,692 $1,647,396
Loans
receivable,
net 1,067,107 1,300,405 1,095,904 1,247,033 1,043,910
Mortgage-
backed
securities 409,653 347,183 410,049 357,409 418,817
Investments 86,181 122,594 98,254 97,960 88,397
Deposits 1,221,590 1,409,450 1,248,239 1,385,141 1,195,376
Borrowed
funds 333,439 372,999 345,952 330,853 343,342
Stock-
holders'
equity 82,567 85,719 81,118 83,983 82,810
SELECTED
RATIOS
Return on
average
assets 0.55% 0.39% 0.38% 0.48% 0.36%
Return
on average
equity 11.04% 8.62% 8.09% 10.41% 7.07%
Interest rate
spread on
average
assets
for the
period 2.45% 2.70% 2.49% 2.78% 2.38%
Net yield on
average
interest
earning
assets
for the
period 2.47% 2.67% 2.52% 2.74% 2.42%
Net yield on
interest
earning
assets at
end of
period 2.76% 2.77% 2.68% 2.77% 2.68%
Interest
rate spread
at end of
period 2.79% 2.80% 2.66% 2.80% 2.66%
Ratio of
interest
earning
assets to
interest
bearing
liabilities
at end of
period 99.36% 99.40% 100.49% 99.40% 100.49%
Ratio of
non
performing
assets to
total assets 0.20% 0.20% 0.14% 0.20% 0.14%
Ratio of
valuation
allowances
to non
performing
assets 102.59% 117.57% 140.75% 117.57% 140.75%
Ratio of
valuation
allowances
to loans
receivable,
net 0.31% 0.34% 0.31% 0.34% 0.31%
Stockholders'
equity as a
percentage
of assets 4.85% 4.56% 4.69% 4.56% 4.69%
PERIOD END
(In
Thousands)
Total
assets $1,718,933 $1,904,850 $1,733,918 $1,904,850 $1,733,918
Investments 61,477 101,941 107,494 101,941 107,494
Loans
receivable,
net 1,164,421 1,328,192 1,120,408 1,328,192 1,120,408
Mortgage-
backed
securities 375,171 342,632 400,124 342,632 400,124
Deposits 1,321,510 1,412,433 1,278,613 1,412,433 1,278,613
Borrowed
funds 290,479 371,802 342,827 371,802 342,827
Stock-
holders'
equity 83,304 86,871 81,247 86,871 81,247
Selected Unaudited Financial Data:
Fidelity Bankshares, Inc.
September 30, December 31,
2000 1999
(In Thousands)
Selected Financial Data:
Total assets $1,904,850 $1,718,933
Loans, net 1,328,192 1,164,421
Cash and cash equivalents 50,944 60,801
Assets available for sale 425,509 404,230
Real estate owned --- 775
Deposits 1,412,433 1,321,510
FHLB advances 326,289 247,073
Stockholders' equity 86,871 83,304
Selected Unaudited Operating Data:
Fidelity Bankshares, Inc.
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
(In Thousands, except per share data)
Selected Operating
Data:
Interest income $34,446 $28,622 $97,523 $81,646
Interest expense 22,639 18,515 62,496 53,538
Net interest income 11,807 10,107 35,027 28,108
Provision for loan
losses 363 161 928 268
Net interest income
after provision for
loan losses 11,444 9,946 34,099 27,840
Other income 2,983 1,912 9,641 5,623
Operating expense 11,464 9,199 33,088 26,323
Income before taxes 2,963 2,659 10,652 7,140
Provision for
income taxes 1,116 1,019 4,097 2,746
Net income $1,847 $1,640 $6,555 $4,394
Basic EPS $.28 $ .25 $ 1.01 $ .68
Diluted EPS $.28 $ .25 $ 1.00 $ .68
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 or fax,
800-758-5804, ext. 281429
CONTACT:
Vince A. Elhilow, President and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, 561-659-9900; or Frank Hawkins or Julie Marshall,
both of Hawk Associates, 305-852-2383, or
info@hawkassociates.com, for Fidelity Bankshares
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