205 DATURA STREET
WEST PALM BEACH, FL 33401
(561) 803-9900
PRESS RELEASE
FOR IMMEDIATE RELEASE
Fidelity Bankshares Declares
3-for-2 Split; Increases Cash Dividend 20%;
Announces Filing of Registration Statement for Sale of One Million
Shares of Common Stock
West Palm Beach, Fla., November 19, 2004 -- Fidelity Bankshares, Inc. (Nasdaq:
FFFL), the holding company for Fidelity Federal Bank & Trust, said today the
company has filed a registration statement with the Securities and Exchange
Commission proposing to sell approximately one million shares of its common
stock, subject to a 15% underwriters' over-allotment. Excluding the
over-allotment, this would represent the sale of common stock equal to
approximately 6.6% of the shares currently outstanding.
Fidelity Bankshares Chairman Vince A. Elhilow said, "This offering will produce
an additional infusion of capital which will enable the bank to continue its
franchise expansion. It will also position us to use a future issue of trust
preferred securities, if needed, to further leverage our stockholders'
interests."
Keefe, Bruyette & Woods, Ryan Beck & Co. and Janney, Montgomery and Scott LLC
are assisting the company in the transaction.
The company also announced that its board of directors has approved a
three-for-two split of its common stock, in the form of a stock dividend,
effective for stockholders of record on December 31, 2004.
Concurrently with the stock split, the board set a cash dividend for
stockholders of record on December 31, 2004 at $0.08 per share. Payable on
January 14, 2005, the dividend represents a 20% increase in the company's cash
dividend payments.
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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.
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.