WEST PALM BEACH, Fla., Oct. 21 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL) the holding company for Fidelity Federal Bank
& Trust, announced today the company's net income for the third quarter ended
September 30, 2003 increased 4.6% to $4.4 million or $.30 basic and diluted
earnings per share. This compared to $4.2 million or $.28 basic and diluted
earnings per share for the quarter ended September 30, 2002. Net interest
income after provision for loan losses increased 8.7% to $20.5 million.
Net income for the nine months ended September 30, 2003 was up 17.3% to
$14.4 million or $1.00 basic and $.99 diluted earnings per share over $12.3
million or $.81 basic and diluted earnings per share in the same period in
2002. Net interest income after provision for loan losses rose 13.1% in the
first nine months to $61.5 million. Other income rose 53.5% to $18.9 million
compared with $12.3 million during the first nine months of 2002.
During the third quarter, the company sold $39.2 million of its
residential loan production compared to $42.5 million sold during the second
quarter ended June 30, 2003. Third quarter gains from the sale of these loans
were $118,000 compared with $1.1 million in the second quarter. From June 30,
2003 through August, long-term treasury rates rose by over 100 basis points.
Mortgage rates also rose sharply. As a result, a considerable amount of
residential mortgages originated for sale were liquidated for losses in the
quarter. By the end of the quarter, gains had more than offset the earlier
losses.
Interest income from the company's mortgage-backed investment portfolio
declined by $1.2 million during the third quarter from the second quarter.
This was attributable to accelerated amortization of premiums on one class of
these investments in addition to normal amortization as the underlying
mortgages prepaid. At September 30, 2003, the remaining unamortized balance of
premiums on this class of mortgage-backed securities was $486,000 compared to
$2.0 million at June 30, 2003.
The company again experienced margin compression during the third quarter.
At September 30, 2003 the company's net yield on earning assets was 2.96%,
compared to 3.30% at June 30, 2003. The compression was attributable to
prepayments of loans in the company's loan portfolio, replacement of these
loans with loans originated in the current lower rate environment, replacement
of prepayments of securities at lower rates and the investment of funds
obtained from increased deposits in short-term securities.
The company experienced net deposit growth of $94.0 million during the
third quarter although certificates of deposit declined by $18.4 million.
Chairman and CEO Vince Elhilow said, "Our balance sheet continues to
become more bank-like. Residential mortgage loans comprise an increasingly
smaller percentage of our total loan portfolio, while commercial real estate
mortgages, consumer loans and commercial business loans have increased. Core
deposits, consisting of checking, savings and money market accounts now
comprise 69.9% of our deposits, while certificates of deposit represent the
remaining 30.1%." At December 31, 2002 and September 30, 2002, core deposits
made up 59.6% and 56.3%, respectively, of the company's deposits."
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, 2003, was
distributed on October 10, 2003.
Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $2.9 billion and deposits of $2.4 billion and operates in
Florida through 42 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.
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. Email:
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.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months
Ended Ended
September 30, September 30,
2003 2002
FOR THE PERIOD (In Thousands)
Interest income $35,428 $34,952
Interest expense 14,371 15,627
Net interest income 21,057 19,325
Chargeoffs 245 67
Recoveries -- 27
Gain on sale of loans 118 24
Net income 4,385 4,194
PER COMMON SHARE
Net income:
Basic EPS $0.30 $0.28
Diluted EPS 0.30 0.28
Dividends declared 0.10 0.10
Book value 11.97 11.49
Stock price:
High 27.72 22.10
Low 21.57 16.60
Close 26.57 17.90
AVERAGE FOR THE PERIOD (In Thousands)
Assets $2,899,313 $2,394,593
Loans receivable, net 2,069,732 1,786,306
Mortgage-backed securities 482,695 183,508
Investments 163,062 247,772
Deposits 2,327,024 1,775,345
Borrowed funds 332,227 376,912
Stockholders' equity 178,726 175,831
SELECTED RATIOS
Return on average assets 0.60% 0.70%
Return on average equity 9.81% 9.54%
Interest rate spread on average
assets for the period 3.06% 3.40%
Net yield on average interest
earning assets for the period 3.10% 3.49%
Net yield on interest earning
assets at end of period 2.96% 3.53%
Interest rate spread at end of
period 2.92% 3.46%
Ratio of interest earning assets
to interest bearing liabilities
at end of period 101.86% 102.61%
Ratio of non performing assets to
total assets 0.19% 0.23%
Ratio of valuation allowances to
non performing assets 184.36% 137.65%
Ratio of valuation allowances to
loans receivable, net 0.48% 0.43%
Stockholders' equity as a
percentage of assets 6.14% 7.12%
PERIOD END (In Thousands)
Total assets $2,929,388 $2,445,920
Interest earning cash and
investment securities 148,475 253,686
Mortgage-backed and corporate
debt securities 501,098 164,751
Loans receivable, net 2,083,513 1,848,423
Real estate owned and held for
investment 45 --
Loan loss reserve 10,042 7,860
All other assets 196,257 179,060
Borrowed funds 325,221 375,637
Common shares outstanding, net of
treasury shares 15,020,202 15,168,572
Stockholders' equity 179,844 174,250
Certain amounts in prior year have been reclassified to conform with
the September 30, 2003 presentation.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Nine Months Nine Months Year
Ended Ended Ended
September September December
30, 30, 31,
2003 2002 2002
FOR THE PERIOD (In Thousands)
Interest income $106,595 $102,932 $137,867
Interest expense 43,067 47,276 61,768
Net interest income 63,528 55,656 76,099
Chargeoffs 318 307 575
Recoveries 1 43 60
Gain on sale of loans 3,731 67 74
Net income 14,433 12,303 16,798
PER COMMON SHARE
Net income:
Basic EPS $1.00 $0.81 $1.12
Diluted EPS 0.99 0.81 1.11
Dividends declared 0.30 0.30 0.40
Book value 11.97 11.49 11.38
Stock price:
High 27.72 22.47 22.47
Low 17.24 15.60 15.60
Close 26.57 17.90 17.90
AVERAGE FOR THE PERIOD (In Thousands)
Assets $2,738,664 $2,325,925 $2,349,597
Loans receivable, net 2,007,061 1,701,713 1,747,561
Mortgage-backed securities 372,268 205,306 193,510
Investments 175,499 255,625 245,997
Deposits 2,176,154 1,718,548 1,752,321
Borrowed funds 335,645 376,646 372,000
Stockholders' equity 174,871 178,744 176,955
SELECTED RATIOS
Return on average assets 0.70% 0.71% 0.71%
Return on average equity 11.00% 9.18% 9.49%
Interest rate spread on average
assets for the period 3.28% 3.34% 3.40%
Net yield on average interest
earning assets for the period 3.32% 3.43% 3.48%
Net yield on interest earning
assets at end of period 2.96% 3.53% 3.63%
Interest rate spread at end of
period 2.92% 3.46% 3.60%
Ratio of interest earning assets
to interest bearing liabilities
at end of period 101.86% 102.61% 101.03%
Ratio of non performing assets to
total assets 0.19% 0.23% 0.27%
Ratio of valuation allowances to
non performing assets 184.36% 137.65% 126.21%
Ratio of valuation allowances to
loans receivable, net 0.48% 0.43% 0.43%
Stockholders' equity as a
percentage of assets 6.14% 7.12% 6.93%
PERIOD END (In Thousands)
Total assets $2,929,388 $2,445,920 $2,439,397
Interest earning cash and
investment securities 148,475 253,686 166,286
Mortgage-backed and corporate debt
securities 501,098 164,751 145,139
Loans receivable, net 2,083,513 1,848,423 1,936,370
Real estate owned and held for
investment 45 -- --
Loan loss reserve 10,042 7,860 8,318
All other assets 196,257 179,060 191,602
Borrowed funds 325,221 375,637 326,537
Common shares outstanding, net of
treasury shares 15,020,202 15,168,572 14,860,327
Stockholders' equity 179,844 174,250 169,087
Certain amounts in prior year have been reclassified to conform with
the September 30, 2003 presentation.
Fidelity Bankshares, Inc.
Selected Unaudited Operating Data
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
(In Thousands) (In Thousands)
Selected Operating Data:
Interest income $35,428 $34,952 $106,595 $102,932
Interest expense 14,371 15,627 43,067 47,276
Net interest income before
provision for loan
losses 21,057 19,325 63,528 55,656
Provision for loan losses 558 459 2,041 1,276
Net interest income after
provision for loan
losses 20,499 18,866 61,487 54,380
Other income
Fees on deposit accounts 2,957 1,884 7,061 5,229
Fees for other banking
services 2,555 2,194 7,412 6,175
Gain on sale of loans
and investments 118 88 3,731 131
All other income 239 271 696 777
Total other income 5,869 4,437 18,900 12,312
Operating expense
Compensation and
benefits 11,235 9,875 33,635 27,483
Occupancy and equipment 3,703 2,954 10,534 8,500
All other operating
expense 4,207 3,630 12,522 10,506
Total operating
expense 19,145 16,459 56,691 46,489
Income before taxes 7,223 6,844 23,696 20,203
Provision for income taxes 2,838 2,650 9,263 7,900
Net income $4,385 $4,194 $14,433 $12,303
Earnings per share:
Basic $.30 $.28 $1.00 $.81
Diluted $.30 $.28 $.99 $.81
Certain amounts in prior year have been reclassified to conform with
the September 30, 2003 presentation.
Fidelity Bankshares, Inc.
Selected Unaudited Financial Data
September 30, December 31,
2003 2002
(In Thousands)
Assets
Cash and interest earning deposits $167,813 $129,666
Assets available for sale 526,887 235,018
Loans:
Residential mortgage 1,468,965 1,456,483
Commercial mortgage 648,818 459,426
Consumer 167,906 141,343
Commercial business 125,190 146,205
Gross loans 2,410,879 2,203,457
Less:
Loans in process 316,032 260,381
Deferred costs (income) 1,292 (1,612)
Allowance for loan losses 10,042 8,318
Loans, Net 2,083,513 1,936,370
Office properties and equipment 70,260 67,784
FHLB stock 13,645 12,919
REO 45 --
All other assets 67,225 57,640
Total assets $2,929,388 $2,439,397
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $1,648,246 $1,130,586
Certificates of deposit 709,720 767,755
Total deposits 2,357,966 1,898,341
Repurchase agreements 28,725 44,416
Borrowings from FHLB 267,746 253,371
Subordinated debentures 28,750 28,750
All other liabilities 66,357 45,432
Total liabilities 2,749,544 2,270,310
Stockholders' equity 179,844 169,087
Total liabilities and equity $2,929,388 $2,439,397
Certain amounts in prior year have been reclassified to conform with the
September 30, 2003 presentation.
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
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
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