FFFL Fidelity Bankshares

Assets Reach $4.1B; Deposits $3.5B WEST PALM BEACH, Fla., Jan. 18 /PRNewswire-FirstCall/ -- 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. 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: . 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 Three Twelve Twelve Months Months Months Months Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 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 interest margin 3.68% 3.48% 3.74% 3.36% 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. 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 (In Thousands, except for share and per share data) share and 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. 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. DATASOURCE: Fidelity Bankshares, Inc. 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, +1-305-451-1888, for Fidelity Bankshares Web site: http://www.fidelityfederal.com/ http://www.hawkassociates.com/ http://www.hawkassociates.com/fffl/profile.htm

Copyright