WEST PALM BEACH, Fla., Oct. 19 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) the holding company for Fidelity Federal Bank
& Trust, announced today the company's net income for the quarter ended
September 30, 2004 was $6.2 million or $.42 basic and $.41 diluted earnings
per share. This compared with $4.4 million or $.30 basic and diluted earnings
per share for the quarter ended September 30, 2003.
For the nine months ended September 30, 2004, the company's net income was
$17.6 million or $1.20 basic and $1.16 diluted earnings per share. This
compared with $14.4 million net income and $1.00 basic and $.99 diluted
earnings per share for the nine months ended September 30, 2003.
For the third quarter, the company's net interest income, before provision
for loan losses, increased by 31.7% to $27.7 million compared to the same
quarter in 2003. This was a direct result of growth in the company's earning
assets and the company's margin expansion to 3.46% compared to 3.10% for the
quarter ended September 30, 2003. Compared to September 30, 2003, the
company's net loans receivable grew 22.6% to $2.56 billion and investments or
assets available for sale increased by 23.4% to $650.3 million.
This growth was primarily funded by an increase in lower costing core
deposits of 14.2%, together with an increase in borrowings from the Federal
Home Loan Bank and more efficient use of cash on deposit with FHLB. The
company's results also included approximately $250,000 in estimated damages
from two hurricanes in September. In addition, the results included
approximately $200,000 for consultant fees associated with revenue
enhancements and Sarbanes-Oxley 404 compliance.
Chairman and CEO Vince Elhilow said, "This was an event-filled quarter for
us. We were hit in September by an unprecedented two hurricanes, Frances and
Jeanne. Our people moved quickly and expertly to keep service open in branches
where we had electricity. As power was restored, we promptly resumed
operations. Thankfully, financial damage to the bank was minimal. We heard
from a number of our customers thanking us for our service during a very
difficult period for many of them. I am proud of the way that many of our
employees reached out to help those less fortunate in need of assistance.
Also, in the quarter we announced the acquisition of First Community Bancorp,
which has assets of $163 million and operates five branches in Palm Beach
county. This will be an excellent fit with our current 43 branches. We
continue to be on track to close this transaction in the first quarter of
2005, subject to appropriate regulatory approvals and First Community
shareholder approval."
Core deposits, consisting of checking, savings and money market accounts
increased by $24.3 million during the quarter and now comprise 76.3% of the
company's deposits. Certificates of deposit represented the remaining 23.7%.
At September 30, 2004, the company's deposits totaled $2.69 billion.
In September, the board of directors approved payment of a quarterly
dividend to stockholders of $.10 per share on the company's common stock. The
dividend, payable to stockholders of record as of September 30, 2004, was
distributed on October 15, 2004.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $3.44 billion and deposits of $2.69 billion and operates
in Florida through 43 offices in Palm Beach, Martin and St. Lucie counties.
An investment profile on Fidelity Bankshares may be found on the website
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) 852-2383, e-mail:
info@hawkassociates.com . Information about Fidelity Bankshares, Inc. can be
found on the website 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 the website:
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
September 30, September 30,
2004 2003
FOR THE PERIOD (In Thousands)
Interest income $42,986 $35,428
Interest expense 15,246 14,371
Net interest income 27,740 21,057
Chargeoffs 149 245
Recoveries -- --
Gain on sale of loans 134 118
Gain (loss) on sale of mortgage-
backed and investment securities 82 --
Net income 6,182 4,385
PER COMMON SHARE
Net income:
Basic EPS $0.42 $0.30
Diluted EPS 0.41 0.30
Dividends declared 0.10 0.10
Book value 13.37 11.97
Stock price:
High 38.80 27.72
Low 33.41 21.57
Close 37.19 26.57
AVERAGE FOR THE PERIOD (In
Thousands)
Assets $3,430,108 $2,899,313
Loans receivable, net 2,501,748 2,069,732
Mortgage-backed securities 498,839 482,695
Investments 209,950 163,062
Deposits 2,691,603 2,327,024
Borrowed funds 460,146 332,227
Stockholders' equity 197,062 178,726
SELECTED RATIOS
Return on average assets 0.72% 0.60%
Return on average equity 12.55% 9.81%
Interest rate spread on average
assets for the period 3.42% 3.06%
Net yield on average interest
earning assets for the period 3.46% 3.10%
Net yield on interest earning
assets at end of period 3.45% 2.96%
Interest rate spread at end of
period 3.38% 2.92%
Ratio of interest earning assets
to interest bearing liabilities
at end of period 103.83% 101.86%
Ratio of non performing assets to
total assets 0.19% 0.19%
Ratio of valuation allowances to
non performing assets 204.99% 184.36%
Ratio of valuation allowances to
loans receivable, net 0.51% 0.48%
Stockholders' equity as a
percentage of assets 5.87% 6.14%
PERIOD END (In Thousands)
Total assets $3,444,565 $2,929,388
Interest earning cash and
investment securities 187,538 134,830
Mortgage-backed and corporate
debt securities 474,118 501,098
Loans receivable, net 2,555,173 2,083,513
Federal Home Loan Bank Stock 19,263 13,645
Real estate owned and held for
investment -- 45
Loan loss reserve 13,069 10,042
All other assets 208,473 196,257
Borrowed funds 475,386 325,211
Common shares outstanding, net of
treasury shares 15,131,946 15,020,202
Stockholders' equity 202,239 179,844
Certain amounts in prior year have been reclassified to conform with
the September 30, 2004 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Nine Months Nine Months Year
Ended Ended Ended
September September December
30, 30, 31,
2004 2003 2003
FOR THE PERIOD (In Thousands)
Interest income $120,139 $106,595 $143,683
Interest expense 43,901 43,067 57,164
Net interest income 76,238 63,528 86,519
Chargeoffs 248 318 322
Recoveries 25 1 1
Gain on sale of loans 391 3,731 4,159
Gain (loss) on sale of mortgage-
backed and investment securities 1,135 -- (2,364)
Net income 17,557 14,433 17,921
PER COMMON SHARE
Net income:
Basic EPS $1.20 $1.00 $1.24
Diluted EPS 1.16 0.99 1.22
Dividends declared 0.30 0.30 0.40
Book value 13.37 11.97 12.28
Stock price:
High 38.80 27.72 32.47
Low 30.62 17.24 17.20
Close 37.19 26.57 31.40
AVERAGE FOR THE PERIOD
(In Thousands)
Assets $3,285,858 $2,738,664 $2,798,378
Loans receivable, net 2,365,363 2,007,061 2,037,993
Mortgage-backed securities 468,492 372,268 399,898
Investments 228,878 175,499 174,896
Deposits 2,618,154 2,176,154 2,235,207
Borrowed funds 404,414 335,645 335,832
Stockholders' equity 192,764 174,871 176,477
SELECTED RATIOS
Return on average assets 0.71% 0.70% 0.64%
Return on average equity 12.14% 11.00% 10.15%
Interest rate spread on average
assets for the period 3.29% 3.28% 3.28%
Net yield on average interest
earning assets for the period 3.32% 3.32% 3.31%
Net yield on interest earning
assets at end of period 3.45% 2.96% 3.30%
Interest rate spread at end of
period 3.38% 2.92% 3.29%
Ratio of interest earning assets
to interest bearing liabilities at
end of period 103.83% 101.86% 100.49%
Ratio of non performing assets to
total assets 0.19% 0.19% 0.37%
Ratio of valuation allowances to
non performing assets 204.99% 184.36% 99.12%
Ratio of valuation allowances to
loans receivable, net 0.51% 0.48% 0.51%
Stockholders' equity as a
percentage of assets 5.87% 6.14% 6.05%
PERIOD END (In Thousands)
Total assets $3,444,565 $2,929,388 $3,048,222
Interest earning cash and
investment securities 187,538 134,830 156,528
Mortgage-backed and corporate debt
securities 474,118 501,098 471,228
Loans receivable, net 2,555,173 2,083,513 2,191,696
Federal Home Loan Bank Stock 19,263 13,645 13,322
Real estate owned and held for
investment -- 45 --
Loan loss reserve 13,069 10,042 11,119
All other assets 208,473 196,257 215,448
Borrowed funds 475,386 325,211 358,970
Common shares outstanding, net of
treasury shares 15,131,946 15,020,202 15,024,648
Stockholders' equity 202,239 179,844 184,509
Certain amounts in prior year have been reclassified to conform with
the September 30, 2004 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $42,986 $35,428 $120,139 $106,595
Interest expense 15,246 14,371 43,901 43,067
Net interest income before
provision for loan
losses 27,740 21,057 76,238 63,528
Provision for loan losses 783 558 2,174 2,041
Net interest income after
provision for loan
losses 26,957 20,499 74,064 61,487
Other income
Fees on deposit accounts 2,740 2,957 8,374 7,061
Fees for other banking
services 2,830 2,555 8,499 7,412
All other income 675 357 2,992 4,427
Total other income 6,245 5,869 19,865 18,900
Operating expense
Compensation and
benefits 13,110 11,235 37,576 33,635
Occupancy and equipment 4,403 3,703 12,356 10,534
All other operating
expense 5,564 4,207 15,158 12,522
Total operating
expense 23,077 19,145 65,090 56,691
Income before taxes 10,125 7,223 28,839 23,696
Provision for income taxes 3,943 2,838 11,282 9,263
Net income $6,182 $4,385 $17,557 $14,433
Earnings per share:
Basic $.42 $.30 $1.20 $1.00
Diluted $.41 $.30 $1.16 $.99
Certain amounts in prior year have been reclassified to conform with
the September 30, 2004 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
September 30, December 31,
2004 2003
(In Thousands)
Assets
Cash and interest earning deposits $76,587 $109,887
Assets available for sale 650,330 593,959
Loans:
Residential mortgage 1,734,258 1,509,249
Commercial mortgage 914,106 753,890
Consumer 215,634 185,450
Commercial business 133,764 131,292
Gross loans 2,997,762 2,579,881
Less:
Loans in process 426,928 374,974
Deferred costs (income) 2,592 2,092
Allowance for loan losses 13,069 11,119
Loans, Net 2,555,173 2,191,696
Office properties and equipment 77,158 70,663
FHLB stock 19,263 13,322
REO -- --
All other assets 66,054 68,695
Total assets $3,444,565 $3,048,222
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,054,888 $1,774,222
Certificates of deposit 638,638 685,879
Total deposits 2,693,526 2,460,101
Repurchase agreements 37,816 42,089
Borrowings from FHLB 385,250 264,561
Subordinated debentures I 29,639 29,639
Subordinated debentures II 22,681 22,681
All other liabilities 73,414 44,642
Total liabilities 3,242,326 2,863,713
Stockholders' equity 202,239 184,509
Total liabilities and equity $3,444,565 $3,048,222
Certain amounts in prior year have been reclassified to conform with the
September 30, 2004 presentation.
SOURCE Fidelity Bankshares, Inc.
 back to top
Related links:
http://www.fidfed.com
http://www.hawkassociates.com
http://www.hawkassociates.com/fffl/profile.htm
Company News On-Call:
http://www.prnewswire.com/comp/281429.html
CONTACT:
Vince A. Elhilow, Chairman and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, +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
|
