WEST PALM BEACH, Fla., Oct. 18 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL), the holding company for Fidelity Federal Bank
& Trust, announced today that net income for the third quarter ended Sept. 30,
2005 was $8.3 million or $0.34 basic and $0.33 diluted earnings per share.
This compared with $6.2 million or $0.28 basic and $0.27 diluted earnings per
share in the third quarter of 2004. The increase of $2.1 million represented a
34% improvement in net income compared to the same quarter in 2004.
Net income for the nine months ended Sept. 30, 2005 was $23.7 million or
$0.98 basic and $0.95 diluted earnings per share. This compared to
$17.6 million or $0.80 basic and $0.78 diluted earnings per share for the
comparable nine months in 2004. This was an increase of $6.2 million or 35%
compared to the same period in 2004.
The company experienced mild net interest margin compression during the
quarter. The net interest margin declined five basis points, from 3.64% at
June 30, 2005 to 3.59% at Sept. 30, 2005.
Fidelity Bankshares Chairman and CEO Vince A. Elhilow said, "Our core
deposits excluding CDs were up 17.9% on an annualized basis, or $108.4 million
for the quarter and $350.1 million for the first nine months. This was
consistent with our target of 15% to 20% annual expansion of deposits and
loans. At the end of September, core deposits represented 76.3% of our
deposits and CDs were 23.7%. Our branch expansion program is continuing. We
expect to open two new branches late in the fourth quarter, and an additional
branch will open early in the first quarter of 2005.
"Our loan demand continues to be strong," Elhilow continued. "Through the
end of September, loan production rose 18.7% for commercial loans, 18.9% for
consumer loans and 13.9% for residential mortgage loans compared to the same
nine-month period in 2004."
The company's board of directors approved a cash dividend of $0.08 per
share for stockholders of record on Sept. 30, 2005. This distribution was
paid on Oct. 14, 2005.
At Sept. 30, 2005, Fidelity Bankshares, Inc., through its subsidiary
Fidelity Federal Bank & Trust, had assets of $3.94 billion and deposits of
$3.32 billion and operates in Florida through 48 offices in Palm Beach, Martin
and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on
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) 451-1888, e-mail:
info@hawkassociates.com . Information about Fidelity Bankshares, Inc. can be
found on 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 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
Ended Ended
Sept. 30, Sept. 30,
2005 2004
FOR THE PERIOD (In Thousands)
Interest income $53,983 $42,986
Interest expense 20,311 15,246
Net interest income 33,672 27,740
Chargeoffs 168 149
Recoveries -- --
Gain on sale of loans 170 134
Gain (loss) on sale of mortgage-
backed and investment securities -- 81
Net income 8,259 6,182
PER COMMON SHARE
Net Income: (1)
Basic EPS $0.34 $0.28
Diluted EPS 0.33 0.27
Dividends declared (1) 0.08 0.07
Book value (1) 11.14 8.91
Stock price: (1)
High 33.07 25.87
Low 26.21 22.27
Close 30.55 24.79
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $3,880,869 $3,430,108
Loans receivable, net 2,805,926 2,501,748
Mortgage-backed securities 657,055 498,839
Investments 140,148 209,950
Deposits 3,277,983 2,691,603
Borrowed funds 257,149 460,146
Stockholders' equity 277,408 197,062
SELECTED RATIOS
Return on average assets 0.85% 0.72%
Return on average equity 11.91% 12.55%
Interest rate spread on average
assets for the period 3.69% 3.42%
Net yield on average interest
earning assets for the period 3.74% 3.46%
Net yield on interest earning
assets at end of period 3.59% 3.45%
Interest rate spread at end of
period 3.55% 3.38%
Ratio of interest earning assets to
interest bearing liabilities at
end of period 101.64% 103.83%
Ratio of non performing assets to
total assets 0.10% 0.19%
Ratio of valuation allowances to
non performing assets 405.94% 204.99%
Ratio of valuation allowances to
loans receivable, net 0.54% 0.51%
Stockholders' equity as a
percentage of assets 7.10% 5.87%
PERIOD END (In Thousands)
Total assets $3,939,945 $3,444,565
Interest earning cash and
investment securities 96,697 187,538
Mortgage-backed securities 635,537 474,118
Loans receivable, net 2,896,565 2,555,173
Federal Home Loan Bank Stock 12,694 19,263
Real estate owned and held for
investment 1,793 --
Loan loss reserve 15,655 13,069
All other assets 296,659 208,473
Borrowed funds 265,070 475,386
Common shares outstanding (1) 25,100,515 22,697,919
Stockholders' equity 279,617 202,239
(1) Reflects 3 for 2 stock split distributed in form of a stock
dividend paid on January 14, 2005 to stockholders of record on
December 31, 2004.
Certain amounts in prior year have been reclassified to conform with the
September 30, 2005 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Nine Months Nine Months Year
Ended Ended Ended
Sept. 30, Sept. 30, Dec. 31,
2005 2004 2004
FOR THE PERIOD (In Thousands)
Interest income $149,384 $120,139 $164,664
Interest expense 52,906 43,901 59,864
Net interest income 96,478 76,238 104,800
Chargeoffs 266 248 252
Recoveries -- 25 25
Gain on sale of loans 643 391 619
Gain (loss) on sale of mortgage-
backed and investment securities -- 1,134 407
Net income 23,722 17,557 22,897
PER COMMON SHARE
Net Income: (1)
Basic EPS $0.98 $0.80 $1.04
Diluted EPS 0.95 0.78 1.01
Dividends declared (1) 0.24 0.20 0.28
Book value (1) 11.14 8.91 10.29
Stock price: (1)
High 33.07 25.87 28.85
Low 22.27 20.41 20.41
Close 30.55 24.79 28.51
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $3,689,239 $3,285,858 $3,336,797
Loans receivable, net 2,642,416 2,365,363 2,424,354
Mortgage-backed securities 653,088 468,492 466,035
Investments 125,273 228,878 227,328
Deposits 3,061,221 2,618,154 2,665,929
Borrowed funds 298,935 404,414 400,498
Stockholders' equity 266,436 192,764 199,273
SELECTED RATIOS
Return on average assets 0.86% 0.71% 0.69%
Return on average equity 11.87% 12.14% 11.49%
Interest rate spread on average
assets for the period 3.72% 3.29% 3.33%
Net yield on average interest
earning assets for the period 3.76% 3.32% 3.36%
Net yield on interest earning assets
at end of period 3.59% 3.45% 3.59%
Interest rate spread at end of
period 3.55% 3.38% 3.53%
Ratio of interest earning assets to
interest bearing liabilities at
end of period 101.64% 103.83% 100.12%
Ratio of non performing assets to
total assets 0.10% 0.19% 0.19%
Ratio of valuation allowances to non
performing assets 405.94% 204.99% 211.85%
Ratio of valuation allowances to
loans receivable, net 0.54% 0.51% 0.53%
Stockholders' equity as a percentage
of assets 7.10% 5.87% 7.24%
PERIOD END (In Thousands)
Total assets $3,939,945 $3,444,565 $3,470,539
Interest earning cash and investment
securities 96,697 187,538 106,238
Mortgage-backed securities 635,537 474,118 529,640
Loans receivable, net 2,896,565 2,555,173 2,556,700
Federal Home Loan Bank Stock 12,694 19,263 17,399
Real estate owned and held for
investment 1,793 -- --
Loan loss reserve 15,655 13,069 13,628
All other assets 296,659 208,473 260,562
Borrowed funds 265,070 475,386 350,560
Common shares outstanding 25,100,515 22,697,919 24,425,050
Stockholders' equity 279,617 202,239 251,283
(1) Reflects 3 for 2 stock split distributed in form of a stock
dividend paid on January 14, 2005 to stockholders of record on
December 31, 2004.
Certain amounts in prior year have been reclassified to conform with the
September 30, 2005 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2005 2004 2005 2004
(In Thousands) (In Thousands)
Selected Operating
Data:
Interest income $53,983 $42,986 $149,384 $120,139
Interest expense 20,311 15,246 52,906 43,901
Net interest
income before
provision for
loan losses 33,672 27,740 96,478 76,238
Provision for loan
losses 304 783 1,298 2,174
Net interest
income after
provision for
loan losses 33,368 26,957 95,180 74,064
Other income
Fees on deposit
accounts 2,972 2,740 8,272 8,374
Fees for other
banking
services 3,250 2,830 9,371 8,499
Gain on sale of
loans 170 134 643 391
Gain on sale of
securities -- 81 -- 1,134
All other income 540 460 1,384 1,467
Total other
income 6,932 6,245 19,670 19,865
Operating expense
Compensation and
benefits 15,073 13,110 43,237 37,576
Occupancy and
equipment 5,484 4,403 15,301 12,356
All other
operating
expense 6,432 5,564 18,029 15,158
Total
operating
expense 26,989 23,077 76,567 65,090
Income before
taxes 13,311 10,125 38,283 28,839
Provision for
income taxes 5,052 3,943 14,561 11,282
Net income $8,259 $6,182 $23,722 $17,557
Earnings per
share: (1)
Basic $.34 $.28 $.98 $.80
Diluted $.33 $.27 $.95 $.78
Shares used for EPS
computations: (1)
Basic 24,538,667 22,066,215 24,273,719 21,994,416
Diluted 25,257,742 22,717,519 24,910,007 22,634,965
(1) Reflects 3 for 2 stock split distributed in the form of a stock
dividend paid on January 14, 2005 to stockholders of record on
December 31, 2004.
Certain amounts in prior year have been reclassified to conform with the
September 30, 2005 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
Sept. 30, Dec. 31,
2005 2004
(In Thousands)
Assets
Cash and interest earning deposits $145,866 $149,409
Assets available for sale 439,257 505,629
Assets held to maturity 255,878 89,167
Loans:
Residential mortgage 1,826,197 1,715,636
Commercial mortgage 1,192,313 972,546
Consumer 285,749 231,333
Commercial business 151,857 125,791
Gross loans 3,456,116 3,045,306
Less:
Loans in process 540,058 472,324
Deferred costs (income) 3,838 2,654
Allowance for loan losses 15,655 13,628
Loans, Net 2,896,565 2,556,700
Office properties and equipment 90,977 83,439
FHLB stock 12,694 17,399
REO 1,793 --
All other assets 96,915 68,796
Total assets $3,939,945 $3,470,539
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,532,082 $2,182,020
Certificates of deposit 785,669 632,650
Total deposits 3,317,751 2,814,670
Repurchase agreements 90,693 46,097
Borrowings from FHLB 120,769 250,855
Subordinated debentures 53,608 53,608
All other liabilities 77,507 54,026
Total liabilities 3,660,328 3,219,256
Stockholders' equity 279,617 251,283
Total liabilities and equity $3,939,945 $3,470,539
Certain amounts in prior year have been reclassified to conform with the
September 30, 2005 presentation.
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidelityfederal.com
http://www.hawkassociates.com
http://www.hawkassociates.com/fffl/profile.htm
CONTACT:
Vince A. Elhilow, Chairman and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity,
+1-561-803-9900; or Frank Hawkins or Julie Marshall, both of Hawk
Associates, +1-305-451-1888, or info@hawkassociates.com, for
Fidelity
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