WEST PALM BEACH, Fla., Oct. 17 /PRNewswire/ --
Fidelity Bankshares, Inc. (Nasdaq: FFFL), the holding company for Fidelity
Federal Bank & Trust, today released forward looking estimates concerning
operations for the remainder of 2001. Chief Financial Officer Richard Aldred
said, "We are providing investors with our best estimates of what we are
expecting in our business operations for the rest of this year. These
estimates are targets based on internal budgets, not predictions of
performance. Actual results may differ materially based on a variety of
external factors including the overall health and performance of the economy."
Loan production
The bank expects loan production for the fourth quarter of 2001 to total
approximately $175 million. Of this amount, the company expects that 65% will
be in the form of single family residential mortgages, 20% will be represented
by commercial mortgages, 4% will be generated in commercial business loans and
the remaining 11% will be consumer loans.
Loan funding
The company is currently experiencing repayments in its loan portfolio of
approximately 20%. The company will use this cash flow, together with
increases in deposits, to fund the majority of its loan growth. To the extent
the company needs additional funding for its loan production, securities in
the mortgage-backed and trust preferred portfolio will be liquidated.
Deposits and borrowings
The company expects its deposits to increase by approximately $30 million
in the fourth quarter. Of this amount, the company expects half to be lower
costing core deposits, with the remainder being certificates of deposit,
primarily of one year to thirty months duration. During the fourth quarter,
approximately $285 million of the company's certificates of deposit will be
maturing. Predominately, these certificates had an original average duration
of eight months. The company does not anticipate any increases in other
borrowings.
Other income
The company expects that other income in the fourth quarter will continue
at a level of $3 million, exclusive of any non-recurring income.
Operating expense
The company expects to incur approximately $14.2 million in operating
expense in the fourth quarter.
This press release contains certain "forward-looking statements" which may
be identified by the use of such words as "believe", "expect", "intend",
"anticipate", "should", "planned", "estimated" and "potential". Examples of
forward-looking statements include, but are not limited to, estimates with
respect to our financial condition, results of operations and business that
are subject to various factors which could cause actual results to differ
materially from these estimates and most other statements that are not
historical in nature. These factors include, but are not limited to, general
and local economic conditions, changes in interest rates, deposit flows,
demand for mortgage and other loans, real estate values, and competition;
changes in accounting principles, policies or guidelines; changes in
legislation or regulation; and other economic, competitive, governmental,
regulatory, and technological factors affecting our operations, pricing,
products and services.
SOURCE Fidelity Bankshares, Inc.
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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, 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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