Fidelity Bankshares 205 DATURA STREET
WEST PALM BEACH, FL 33401
(561) 803-9900
Fidelity Bankshares Q1 Net Income Up 16% to $7.9M; EPS $0.31
Assets Reach $4.2B; Deposits $3.7B
West Palm Beach, FL, April 18, 2006 -- Fidelity Bankshares, Inc. (Nasdaq: FFFL)
announced today net income of $7.9 million or $0.32 basic and $0.31 diluted
earnings per share for the first quarter ended March 31, 2006. This was a gain
of 16% over net income of $6.8 million, or $0.29 basic and $0.28 diluted
earnings per share in the first quarter of 2005.
Net interest margin for the quarter was 3.49%, compared to 3.71% for the first
quarter of 2005. The net interest margin for the quarter ended December 31, 2005
was 3.68%. During the fourth quarter of 2005, the company encountered local
governmental approval delays in opening two new offices. As a result, the
company relied on short-term certificates of deposit to fund its growth. These
certificates of deposit, which are scheduled to mature during the second quarter
of 2006, caused eight of the 19 basis points of margin compression experienced
in the first quarter compared to the quarter ended December 31, 2005.
Operating expense for the quarter was $26.9 million, compared to $23.9 million
for the same quarter in 2005. This increase of $3.0 million, or 12.2%, was
attributable to operating 42 branches in the quarter ended March 31, 2005,
compared to 51 offices in 2006. Compared to the quarter ended December 31, 2005,
operating expense increased by $946,000, reflecting the operation of three
additional offices opened in the first quarter.
Fidelity Bankshares Chairman and CEO Vince Elhilow said, "We opened three new
offices during the quarter including a major new branch in Ft. Lauderdale's
financial district that includes a loan production office and a full-service
banking facility. Deposits during the quarter increased by $126.6 million, or
14.3% on an annualized basis. Our core deposits, which exclude all certificates
of deposit, increased to 77.6% of total deposits at the end of the first quarter
from 74.5% of total deposits at December 31, 2005. By comparison, core deposits
at the end of the first quarter a year ago were 79.2% of total deposits."
The board of directors declared a cash dividend of $0.08 per share for
stockholders of record on March 31, 2006. This distribution was paid on April
14, 2006.
At March 31, 2006, Fidelity Bankshares, Inc., through its subsidiary Fidelity
Federal Bank & Trust, had assets of $4.24 billion and deposits of $3.67 billion
and operates in Florida through 51 offices in Palm Beach, Broward, Martin and
St. Lucie counties.
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.
Fidelity Bankshares, Inc.
Financial Highlights
(Unaudited)
Three Months Three Months Year
Ended Ended Ended
March 31, March 31, December 31,
2006 2005 2005
FOR THE PERIOD (In Thousands)
- ------------------------------------------------------------------------------------------------------------------------------
Interest income $61,665 $45,324 $206,551
Interest expense 27,438 15,251 76,211
Net interest income 34,227 30,073 130,340
Chargeoffs 90 2 330
Recoveries - - 1
Gain on sale of loans 115 352 728
Net income 7,876 6,816 32,082
PER COMMON SHARE
- ------------------------------------------------------------------------------------------------------------------------------
Net Income:
Basic EPS $0.32 $0.29 $1.32
Diluted EPS 0.31 0.28 1.28
Dividends declared 0.08 0.08 0.32
Book value 11.58 10.32 11.34
Stock price:
High 35.05 28.85 34.20
Low 30.80 22.35 22.27
Close 33.63 22.98 32.70
AVERAGE FOR THE PERIOD (In Thousands)
- ------------------------------------------------------------------------------------------------------------------------------
Total assets $4,208,435 $3,483,063 $3,762,083
Loans receivable, net 3,109,292 2,508,282 2,723,586
Securities available for sale 406,497 494,879 467,603
Securities held to maturity 239,719 180,147 242,217
Deposits 3,665,085 2,819,875 3,132,413
Borrowed funds 205,172 347,883 294,572
Stockholders' equity 289,118 252,576 270,217
SELECTED RATIOS
- ------------------------------------------------------------------------------------------------------------------------------
Return on average assets 0.75% 0.78% 0.85%
Return on average equity 10.90% 10.79% 11.87%
Interest rate spread on average assets for the period 3.45% 3.67% 3.70%
Net yield on average interest earning assets for the period 3.49% 3.71% 3.74%
Ratio of interest earning assets to interest bearing
liabilities at end of period 117.27% 118.88% 114.89%
Ratio of non performing assets to total assets 0.16% 0.20% 0.22%
Ratio of valuation allowances to non performing assets 239.01% 203.65% 176.94%
Ratio of valuation allowances to loans receivable,
net 0.52% 0.58% 0.53%
Stockholders' equity as a percentage of assets 6.88% 7.18% 6.98%
PERIOD END (In Thousands, except for share data)
- ------------------------------------------------------------------------------------------------------------------------------
Total assets $4,240,091 $3,509,292 $4,082,611
Interest earning cash 104,590 35,762 39,283
Securities available for sale 380,490 480,730 410,473
Securities held to maturity 237,445 285,685 242,497
Loans receivable, net 3,202,425 2,449,695 3,036,710
Federal Home Loan Bank stock 11,959 16,968 11,398
Foreclosed assets, net - 7 1,793
Loan loss reserve 16,521 14,198 16,171
All other assets 303,182 240,445 340,457
Deposits 3,667,496 2,867,569 3,540,874
Borrowed funds 214,580 325,886 200,085
Common shares outstanding 25,171,641 24,427,375 25,114,716
Stockholders' equity 291,549 251,982 284,768
Certain amounts in prior year have been reclassified to conform with the
March 31, 2006 presentation.
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Fidelity Bankshares Inc.
Selected Unaudited Operating Data
Three Months Ended
March 31,
2006 2005
---- ----
--------------------------------------------------------
(In Thousands, except for share and per share data)
Selected Operating Data:
Interest income $61,665 $45,324
Interest expense 27,438 15,251
----------------- -----------------
Net interest income before
provision for loan losses 34,227 30,073
Provision for loan losses 440 572
----------------- -----------------
Net interest income after
provision for loan losses 33,787 29,501
----------------- -----------------
Other income
Service charges on deposit accounts 3,017 2,501
Fees for other banking services 2,286 2,233
Net gain on sale of loans 115 352
Other income 414 387
----------------- -----------------
Total other income 5,832 5,473
----------------- -----------------
Operating expense
Compensation and benefits 15,498 13,608
Occupancy and equipment 3,772 3,350
Data processing 1,839 1,438
All other operating expense 5,751 5,540
----------------- -----------------
Total operating expense 26,860 23,936
----------------- -----------------
Income before taxes 12,759 11,038
Provision for income taxes 4,883 4,222
----------------- ----------------
Net income $7,876 $6,816
================= =================
Earnings per share:
Basic $.32 $.29
================= =================
Diluted $.31 $.28
================= =================
Shares used for EPS computations:
Basic 24,617,982 23,838,307
================= =================
Diluted 25,369,064 24,571,467
================= =================
Certain amounts in prior year have been reclassified to conform with the
March 31, 2006 presentation.
Fidelity Bankshares Inc.
Selected Unaudited Financial Data
March 31, December 31,
2006 2005
---------------------------------------------
(In Thousands)
Assets
Cash and interest earning deposits $206,135 $189,940
Securities available for sale 380,490 410,473
Securities held to maturity 237,445 242,497
Loans:
Residential mortgage 1,616,125 1,523,740
Commercial mortgage 1,145,713 1,082,719
Consumer 306,739 295,622
Commercial business 153,908 153,916
---------------- ----------------
Gross loans 3,222,485 3,055,997
Less:
Deferred fees (costs), net 3,539 3,116
Allowance for loan losses 16,521 16,171
---------------- ----------------
Loans, net 3,202,425 3,036,710
---------------- ----------------
Office properties and equipment 92,389 91,164
FHLB stock 11,959 11,398
Foreclosed assets, net - 1,793
Goodwill 14,256 14,256
Core deposit intangible 6,337 6,528
All other assets 88,655 77,852
---------------- ----------------
Total assets $4,240,091 $4,082,611
================ ================
Liabilities and Equity
Liabilities:
Deposits:
Checking, savings and money
market accounts $2,846,448 $2,638,794
Certificates of deposit 821,048 902,080
---------------- ----------------
Total deposits 3,667,496 3,540,874
Repurchase agreements 77,094 54,113
Borrowings from FHLB 83,878 92,364
Subordinated debentures 53,608 53,608
All other liabilities 66,466 56,884
---------------- ----------------
Total liabilities 3,948,542 3,797,843
---------------- ----------------
Stockholders' equity 291,549 284,768
---------------- ----------------
Total liabilities and equity $4,240,091 $4,082,611
================ ================
Certain amounts in prior year have been reclassified to conform with the
March 31, 2006 presentation.