Company Reports Assets of $4.4B; Deposits $3.4B
WEST PALM BEACH, Fla., Oct. 18 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) announced today that net income for the
third quarter ended September 30, 2006 was $5.7 million, or $0.23 basic and
$0.22 diluted earnings per share. For the comparable quarter a year ago,
net income was $8.3 million, or $0.34 basic and $0.33 diluted earnings per
share.
Net income for the nine months ended September 30, 2006 was $22.2
million, or $0.90 basic and $0.87 diluted earnings per share, compared to
$23.7 million, or $0.98 basic and $0.95 diluted earnings per share, for the
comparable nine months in 2005.
The quarterly results included $1.0 million in merger-related expenses.
In addition to merger-related expense, the company's operating expense
increased by $3.5 million. Net interest income did not increase due to
margin compression associated with increased interest expense. The net
interest margin for the quarter was 3.31%, compared to 3.74% for the same
period in 2005. By comparison, the net interest margin for the quarter
ended June 30, 2006 was 3.67%.
Operating expense for the nine months ended September 30, 2006
increased by $9.9 million. The company's net interest income for the nine
months increased by only $7.0 million, due to margin compression. The
company's net interest margin for the nine-month period was 3.49%, compared
to 3.76% for the same period in 2005.
"The proxy materials for our stockholders to approve the acquisition of
Fidelity by National City Corporation have been mailed. We will hold the
stockholders meeting on November 20, 2006," said Chairman and CEO Vince
Elhilow. "We are expecting overwhelming support for the merger of these two
fine companies. We have been truly impressed by the professionalism,
thoroughness and attention to detail of the National City integration and
transition team members. Our customers can be assured of a smooth and
seamless transition as well as the availability of a host of new financial
products. The planning process is proceeding very smoothly."
The board of directors declared a cash dividend of $0.08 per share for
stockholders of record on September 29, 2006. This distribution was paid on
October 13, 2006.
At September 30, 2006, Fidelity Bankshares, Inc., through its
subsidiary Fidelity Federal Bank & Trust, had assets of $4.4 billion and
deposits of $3.4 billion. The company operates in Florida through 52
offices in Palm Beach, Broward, Martin and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on
http://hawkassociates.com/ffflprofile.aspx.
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. 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.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months
Ended Ended
September 30, September 30,
2006 2005
FOR THE PERIOD (In Thousands)
Interest income $67,466 $53,983
Interest expense 34,156 20,561
Net interest income 33,310 33,422
Chargeoffs 8 168
Recoveries 1 -
Gain on sale of loans 41 170
Net income 5,652 8,259
PER COMMON SHARE
Net Income:
Basic EPS $0.23 $0.34
Diluted EPS 0.22 0.33
Dividends declared 0.08 0.08
Book value 11.99 11.14
Stock price:
High 39.35 33.07
Low 31.65 26.21
Close 39.01 30.55
AVERAGE FOR THE PERIOD (In Thousands)
Total assets $4,317,405 $3,881,085
Loans receivable, net 3,351,973 2,805,926
Securities available for sale 359,438 456,100
Securities held to maturity 259,568 262,507
Deposits 3,360,193 3,278,454
Borrowed funds 573,475 257,149
Stockholders' equity 300,173 277,408
SELECTED RATIOS
Return on average assets 0.52% 0.85%
Return on average equity 7.53% 11.91%
Interest rate spread on average
assets for the period 2.74% 3.33%
Net yield on average interest
earning assets for the period 3.31% 3.74%
Ratio of interest earning assets
to interest bearing liabilities at
end of period 116.94% 118.08%
Ratio of non performing assets to
total assets 0.43% 0.10%
Ratio of valuation allowances to
non performing assets 92.51% 405.94%
Ratio of valuation allowances to
loans receivable, net 0.51% 0.54%
Stockholders' equity as a
percentage of assets 6.95% 7.10%
PERIOD END (In Thousands, except
for share data)
Total assets $4,381,549 $3,940,354
Interest earning cash 26,658 37,098
Securities available for sale 342,425 439,257
Securities held to maturity 254,720 255,878
Loans receivable, net 3,429,229 2,896,565
Federal Home Loan Bank stock 23,127 12,694
Foreclosed assets, net 14 1,793
Loan loss reserve 17,390 15,655
All other assets 305,376 297,069
Deposits 3,424,219 3,317,792
Borrowed funds 576,218 265,070
Common shares outstanding 25,384,215 25,100,515
Stockholders' equity 304,303 279,617
Certain amounts in prior year have been reclassified to conform with the
September 30, 2006 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Nine Months Nine Months Year
Ended Ended Ended
Sept. 30, Sept. 30, Dec. 31,
2006 2005 2005
FOR THE PERIOD (In Thousands)
Interest income $193,752 $149,384 $206,551
Interest expense 90,297 52,906 76,211
Net interest income 103,455 96,478 130,340
Chargeoffs 105 266 330
Recoveries 4 - 1
Gain on sale of loans 265 643 728
Net income 22,179 23,722 32,082
PER COMMON SHARE
Net Income:
Basic EPS $0.90 $0.98 $1.32
Diluted EPS 0.87 0.95 1.28
Dividends declared 0.24 0.24 0.32
Book value 11.99 11.14 11.34
Stock price:
High 39.35 33.07 34.20
Low 30.79 22.27 22.27
Close 39.01 30.55 32.70
AVERAGE FOR THE PERIOD (In Thousands)
Total assets $4,247,371 $3,689,405 $3,762,083
Loans receivable, net 3,236,617 2,642,416 2,723,586
Securities available for sale 380,017 479,928 467,603
Securities held to maturity 244,377 240,117 242,217
Deposits 3,503,503 3,061,604 3,132,413
Borrowed funds 378,782 298,935 294,572
Stockholders' equity 294,371 266,436 270,217
SELECTED RATIOS
Return on average assets 0.70% 0.86% 0.85%
Return on average equity 10.05% 11.87% 11.87%
Interest rate spread on average
assets for the period 2.96% 3.39% 3.70%
Net yield on average interest
earning assets for the period 3.49% 3.76% 3.74%
Ratio of interest earning assets to
interest bearing liabilities at
end of period 117.40% 117.78% 114.89%
Ratio of non performing assets to
total assets 0.43% 0.10% 0.22%
Ratio of valuation allowances to
non performing assets 92.51% 405.94% 176.94%
Ratio of valuation allowances to
loans receivable, net 0.51% 0.54% 0.53%
Stockholders' equity as a
percentage of assets 6.95% 7.10% 6.98%
PERIOD END (In Thousands, except
for share data)
Total assets $4,381,549 $3,940,354 $4,082,611
Interest earning cash 26,658 37,098 39,283
Securities available for sale 342,425 439,257 410,473
Securities held to maturity 254,720 255,878 242,497
Loans receivable, net 3,429,229 2,896,565 3,036,710
Federal Home Loan Bank stock 23,127 12,694 11,398
Foreclosed assets, net 14 1,793 1,793
Loan loss reserve 17,390 15,655 16,171
All other assets 305,376 297,069 340,457
Deposits 3,424,219 3,317,792 3,540,874
Borrowed funds 576,218 265,070 200,085
Common shares outstanding 25,384,215 25,100,515 25,114,716
Stockholders' equity 304,303 279,617 284,768
Certain amounts in prior year have been reclassified to conform with the
September 30, 2006 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
(In Thousands, except for (In Thousands, except for
share and per share data) share and per share data)
Selected Operating
Data:
Interest income $67,466 $53,983 $193,752 $149,384
Interest expense 34,156 20,561 90,297 52,906
Net interest
income 33,310 33,422 103,455 96,478
Provision for
loan losses 694 304 1,320 1,298
Net interest
income after
provision for
loan losses 32,616 33,118 102,135 95,180
Other income:
Service charges
on deposit
accounts 3,489 2,972 9,605 8,272
Fees for other
banking
services 2,554 2,375 7,331 6,950
Net gain on
sale of loans 41 170 265 643
Other income 405 540 1,254 1,384
Total other
income 6,489 6,057 18,455 17,249
Operating
expense:
Employee
compensation
and benefits 15,495 14,669 45,960 42,091
Occupancy and
equipment 4,280 3,673 12,349 10,484
Data processing 1,916 1,811 5,487 4,817
Other operating
expense 7,659 5,711 20,279 16,754
Total
operating
expense 29,350 25,864 84,075 74,146
Income before
provision for
income taxes 9,755 13,311 36,515 38,283
Provision for
income taxes 4,103 5,052 14,336 14,561
Net income $5,652 $8,259 $22,179 $23,722
Earnings per
share:
Basic $0.23 $0.34 $0.90 $0.98
Diluted $0.22 $0.33 $0.87 $0.95
Shares used for
EPS computations:
Basic 24,757,741 24,538,667 24,686,148 24,273,719
Diluted 25,460,685 25,257,742 25,347,529 24,910,007
Certain amounts in prior year have been reclassified to conform with
the September 30, 2006 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
September 30, December 31,
2006 2005
(In Thousands)
Assets
Cash and interest-earning deposits $118,748 $189,940
Securities available for sale 342,425 410,473
Securities held to maturity 254,720 242,497
Loans receivable:
Residential mortgage 1,745,470 1,523,740
Commercial mortgage 1,236,160 1,082,719
Consumer 314,561 295,622
Commercial business 153,304 153,916
Gross loans 3,449,495 3,055,997
Less:
Deferred fees (costs), net 2,876 3,116
Allowance for loan losses 17,390 16,171
Loans receivable, net 3,429,229 3,036,710
Office properties and equipment, net 94,294 91,164
FHLB stock 23,127 11,398
Foreclosed assets, net 14 1,793
Goodwill 14,256 14,256
Core deposit intangibles 5,957 6,528
Other assets 98,779 77,852
Total Assets $4,381,549 $4,082,611
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,533,052 $2,638,794
Certificates of deposit 891,167 902,080
Total deposits 3,424,219 3,540,874
Other borrowed funds 190,123 54,113
Advances from FHLB 332,487 92,364
Junior subordinated debentures 53,608 53,608
Other liabilities 76,809 56,884
Total liabilities 4,077,246 3,797,843
Stockholders' equity 304,303 284,768
Total Liabilities and Equity $4,381,549 $4,082,611
SOURCE Fidelity Bankshares, Inc.
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Related links:
http://www.fidfed.com
http://hawkassociates.com/ffflprofile.aspx
http://www.hawkassociates.com
CONTACT:
Vince A. Elhilow, Chairman and CEO, or
Richard D. Aldred, Chief Financial Officer, of Fidelity
Bankshares, Inc., +1-561-803-9900; or Frank Hawkins, or Julie
Marshall, of Hawk Associates, Inc., +1-305-451-1888, or
info@hawkassociates.com
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