Fidelity 205 DATURA STREET
Bankshares WEST PALM BEACH, FL 33401
(561) 803-9900
Fidelity Bankshares 2005 Net Income Up 40.1% to
$32.1M, EPS $1.28; Q4 Net Income $8.4M,
EPS $0.33 Assets Reach $4.1B; Deposits $3.5B
West Palm Beach, FL, January 18, 2006 -- Fidelity Bankshares, Inc. (Nasdaq:
FFFL), the holding company for Fidelity Federal Bank & Trust, announced today
that the company's net income for the year ended December 31, 2005 increased by
40.1% to $32.1 million, or $1.32 basic and $1.28 diluted earnings per share of
common stock, from $22.9 million, or $1.04 basic and $1.01 diluted earnings per
share of common stock in 2004.
Net income for the fourth quarter ended December 31, 2005 increased 56.6% to
$8.4 million or $0.34 basic and $0.33 diluted earnings per share of common
stock, compared to net income for the fourth quarter of 2004 of $5.3 million, or
$0.24 basic and $0.23 diluted earnings per share of common stock.
The net interest margin for the fourth quarter was 3.68%, compared with 3.48%
for the fourth quarter of 2004 and 3.74% for the third quarter of 2005. For the
year ended December 31, 2005, the net interest margin was 3.74%, compared to
3.36% for the year ended December 31, 2004.
Core deposits, which exclude all certificates of deposit, were 74.5% of total
deposits at December 31, 2005, compared with 77.5% at December 31, 2004 and
76.3% at September 30, 2005. As a result of local governmental approval delays,
the opening of two new offices during the quarter did not occur until January
2006. The company, therefore, relied on the issue of short-term certificates of
deposit to provide for loan funding needs. These offices have now opened, and
the company expects core deposits generated by these new branches will replace
the short-term certificates of deposit.
Chairman and CEO Vince Elhilow said, "This was another good year for our bank
operations and our shareholders, despite difficulties presented by the
continuing flattening of the interest rate yield curve and disruption to our
operations caused by Hurricane Wilma. We are now operating 50 full-service
branch locations and three loan production offices in five South Florida
counties. We surpassed $4 billion in assets as we continued to gain share in one
of the most attractive banking markets in America."
The company's board of directors declared a cash dividend of $0.08 per share for
stockholders of record on January 19, 2006. This distribution will be paid on
January 27, 2006.
At December 31, 2005, Fidelity Bankshares, Inc., through its subsidiary Fidelity
Federal Bank & Trust, had assets of $4.08 billion and deposits of $3.54 billion.
The Bank opened two new offices in January in northern Broward County in an area
contiguous to Boca Raton. It now operates in Florida through 50 branches and
three loan production offices in Palm Beach, Martin, Broward, Indian River and
St. Lucie counties.
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An investment profile on Fidelity Bankshares may be found on
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) 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.
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Fidelity Bankshares Inc.
Selected Unaudited Financial Data
December 31, December 31,
2005 2004
------------------------------------------------
(In Thousands)
Assets
Cash and interest earning deposits $ 188,723 $ 149,409
Assets available for sale 410,473 505,629
Assets held to maturity 242,497 89,167
Loans:
Residential mortgage 1,523,740 1,389,153
Commercial mortgage 1,082,719 831,165
Consumer 295,622 231,333
Commercial business 153,916 121,331
----------------- -----------------
Gross loans 3,055,997 2,572,982
Less:
Deferred costs (income) 3,116 2,654
Allowance for loan losses 16,171 13,628
----------------- -----------------
Loans, Net 3,036,710 2,556,700
----------------- -----------------
----------------- -----------------
Office properties and equipment 91,164 83,439
FHLB stock 11,398 17,399
REO 1,793 -
Goodwill 14,256 2,171
Core Deposit Intangible 6,528 -
All other assets 78,050 66,625
----------------- -----------------
Total assets $ 4,081,592 $ 3,470,539
================= =================
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $ 2,638,794 $ 2,182,020
Certificates of deposit 902,080 632,650
----------------- -----------------
Total deposits 3,540,874 2,814,670
Repurchase agreements 54,113 46,097
Borrowings from FHLB 92,364 250,855
Subordinated debentures 53,608 53,608
All other liabilities 55,956 54,026
----------------- -----------------
----------------- -----------------
Total liabilities 3,796,915 3,219,256
----------------- -----------------
----------------- -----------------
Stockholders' equity 284,677 251,283
----------------- -----------------
Total liabilities and equity $ 4,081,592 $ 3,470,539
================= =================
Certain amounts in prior year have been reclassified to conform with the
December 31, 2005 presentation.
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Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
FOR THE PERIOD (In Thousands)
------------------------------------------------------------------------------------------------------------------------
Interest income $57,168 $44,525 $206,551 $164,664
Interest expense 23,305 15,963 76,211 59,864
Net interest income 33,863 28,562 130,340 104,800
Chargeoffs 64 5 330 252
Recoveries 1 - 1 25
Gain on sale of loans 85 228 728 619
Gain (loss) on sale of mortgage-backed and investment securities - (728) - 407
Net income 8,360 5,340 32,082 22,897
PER COMMON SHARE
------------------------------------------------------------------------------------------------------------------------
Net Income: (1)
Basic EPS $0.34 $0.24 $1.32 $1.04
Diluted EPS 0.33 0.23 1.28 1.01
Dividends declared (1) 0.08 0.08 0.32 0.28
Book value (1) 11.34 10.29 11.34 10.29
Stock price: (1)
High 34.20 28.85 34.20 28.85
Low 26.25 24.24 22.27 20.41
Close 32.70 28.51 32.70 28.51
AVERAGE FOR THE PERIOD (In Thousands)
------------------------------------------------------------------------------------------------------------------------
Assets $3,988,405 $3,491,085 $3,762,005 $3,336,797
Loans receivable, net 2,964,449 2,600,046 2,723,586 2,424,354
Mortgage-backed securities 622,820 458,718 645,458 466,035
Investments 96,964 222,708 118,138 227,328
Deposits 3,343,502 2,810,154 3,132,413 2,665,929
Borrowed funds 281,622 386,959 294,572 400,498
Stockholders' equity 281,997 216,287 270,210 199,273
SELECTED RATIOS
------------------------------------------------------------------------------------------------------------------------
Return on average assets 0.84% 0.61% 0.85% 0.69%
Return on average equity 11.86% 9.88% 11.87% 11.49%
Interest rate spread on average assets for the period 3.64% 3.43% 3.70% 3.33%
Net yield on average interest earning assets for the period 3.68% 3.48% 3.74% 3.36%
Ratio of interest earning assets to interest bearing
liabilities at end of period 99.95% 103.16% 99.95% 103.16%
Ratio of non performing assets to total assets 0.22% 0.19% 0.22% 0.19%
Ratio of valuation allowances to non performing assets 176.94% 211.85% 176.94% 211.85%
Ratio of valuation allowances to loans receivable, net 0.53% 0.53% 0.53% 0.53%
Stockholders' equity as a percentage of assets 6.97% 7.24% 6.97% 7.24%
PERIOD END (In Thousands, except for share data)
------------------------------------------------------------------------------------------------------------------------
Total assets $4,081,592 $3,470,539 $4,081,592 $3,470,539
Interest earning cash and investment securities 92,202 106,238 92,202 106,238
Mortgage-backed securities 598,834 529,640 598,834 529,640
Loans receivable, net 3,036,710 2,556,700 3,036,710 2,556,700
Federal Home Loan Bank Stock 11,398 17,399 11,398 17,399
Real estate owned and held for investment 1,793 - 1,793 -
Loan loss reserve 16,171 13,628 16,171 13,628
All other assets 340,655 260,562 340,655 260,562
Borrowed funds 200,085 350,560 200,085 350,560
Common shares outstanding (1) 25,114,716 24,425,050 25,114,716 24,425,050
Stockholders' equity 284,677 251,283 284,677 251,283
(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
December 31, 2005 presentation.
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Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
-------------------------------------- --------------------------------------
(In Thousands, except for share and (In Thousands, except for share and
per share data) per share data)
Selected Operating Data:
Interest income $57,168 $44,525 $206,551 $164,664
Interest expense 23,305 15,963 76,211 59,864
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Net interest income before
provision for loan losses 33,863 28,562 130,340 104,800
Provision for loan losses 579 562 1,877 2,736
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Net interest income after
provision for loan losses 33,284 28,000 128,463 102,064
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Other income
Fees on deposit accounts 3,037 2,674 11,309 11,048
Fees for other banking services 3,147 2,657 12,518 11,156
Gain on sale of loans 85 228 728 619
Gain on sale of securities - (728) - 407
Other income 551 477 1,936 1,943
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Total other income 6,820 5,308 26,491 25,173
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Operating expense
Compensation and benefits 15,211 12,899 58,448 50,475
Occupancy and equipment 5,545 4,256 20,846 16,612
All other operating expense 5,874 7,405 23,903 22,563
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Total operating expense 26,630 24,560 103,197 89,650
----------------- ---------------- ----------------- ----------------
----------------- ---------------- ----------------- ----------------
Income before taxes 13,474 8,748 51,757 37,587
Provision for income taxes 5,114 3,408 19,675 14,690
Net income $8,360 $5,340 $32,082 $22,897
================= ================ ================= ================
================= ================ ================= ================
Earnings per share: (1)
Basic $ .34 $ .24 $ 1.32 $ 1.04
================= ================ ================= ================
================= ================ ================= ================
Diluted $ .33 $ .23 $ 1.28 $ 1.01
================= ================ ================= ================
================= ================ ================= ================
Shares used for EPS computations: (1)
Basic 24,556,045 22,288,494 24,344,880 22,068,136
================= ================ ================= ================
================= ================ ================= ================
Diluted 25,279,606 23,040,279 25,012,528 22,748,552
================= ================ ================= ================
================= ================ ================= ================
(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
December 31, 2005 presentation.
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