SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 15, 1997
Fidelity Bankshares, Inc.
---------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0 -29040 65-0717085
- ----------------------- ----------------- ----------------
(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification No.)
Registrant's telephone number, including area code:
(561) 659-9900
Not Applicable
---------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
On April 15, 1997, Fidelity Bankshares, Inc. (the
"Registrant") announced that it is commencing a stock repurchase
program to acquire up to 337,000 shares of its common stock par
value $.10 per share, which represents approximately 5% of the
outstanding common stock. The stock repurchase program is
expected to be completed within one year. For further
information, see the Registrant's press release dated April 15,
1997, which is included as Exhibit 99 to this report.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
The following Exhibits are filed as part of this report:
Exhibit 99 Press Release of Fidelity Bankshares, Inc.
dated April 15, 1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, hereunto duly authorized.
FIDELITY BANKSHARES, INC.
DATE: April 18, 1997 By: /s/ Vince A. Elhilow
------------------------------
Vince A. Elhilow
President and Chief Executive
Officer
<PAGE>
EXHIBIT INDEX
The following Exhibits are filed as part of this report:
Exhibit 99 Press Release of Fidelity Bankshares,
Inc.
<PAGE>
Fidelity Bankshares, Inc. Announces Stock Repurchase
Program And Quarterly Earnings
WEST PALM BEACH, Fla., April 15 -- Fidelity Bankshares, Inc., the
holding company for Fidelity Federal Savings Bank of Florida
(Nasdaq: FFFL), announced today that its Board of Directors has
authorized a stock repurchase program to acquire up to 337,000
shares of the Company's 6,765,653 shares of outstanding common
stock. This represents approximately 5% of the total outstanding
common stock. Fidelity Bankshares MHC, the Company's Mutual
Holding Company parent, owns 3,542,000 shares and the remaining
3,223,653 shares are owned by the public.
Vince A. Elhilow, President and Chief Executive Officer of the
Company, stated that the Board of Directors has authorized the
repurchase program, which will be in effect for one year. Mr.
Elhilow stated that the Board of Directors adopted the Stock
Repurchase Program as an additional capital management tool to
continue enhancing stockholder value.
According to Mr. Elhilow, any repurchases, if and when made,
generally would be effected through open market purchases,
although he did not rule out the possibility of unsolicited
negotiated transactions or other types of repurchases. No shares
will be repurchased from Directors or Officers of the Company.
Mr. Elhilow explained that the price to be paid for the shares
purchased on any open market would not exceed the greater of the
highest independent bid or independent sales price of the
Company's stock on the Nasdaq National Market. The number of
shares to be purchased in the open market during any day
generally is not to exceed 25% of the average daily trading
volume of the common stock, except for block purchases.
Mr. Elhilow also announced that the Company's net income for the
quarter ended March 31, 1997, was $1,234,000 or $.18 per share of
common stock. Net income for the quarter ended March 31, 1996 was
$1,496,000 or $.22 per share of common stock. Net income for the
quarter ended March 31, 1997 includes a non-recurring charge of
$125,000, reflecting costs associated with the Company's
reorganization into a mid-tier holding company, while net income
for the quarter ended March 31, 1996 included non-recurring
income of $537,000, relating to gains on sales of securities.
In March the Company declared its regular quarterly dividend of
$.20 per share of common stock. This dividend was paid to
stockholders on April 15, 1997.
Interest income for the quarter ended March 31, 1997 was $16.3
million compared to $14.3 million for the same quarter in 1996.
The Company's interest expense was $9.0 million and $7.6 million
for the quarters ended March 31, 1997 and 1996, respectively.
Provisions for loan losses decreased to $51,000 for the quarter
ended March 31, 1997 from $76,000 for the comparable 1996
quarter. The Company's net interest income after loan loss
provisions was $7,279,000 for the quarter ended March 31, 1997
compared to $6,678,000 for the quarter ended March 31, 1996.
Other income decreased to $902,000 for the quarter ended March
31, 1997 compared to $1,420,O00 in 1996, due primarily to a
decrease in net gain on sale of loans, mortgage-backed securities
and investments. Operating expense for the quarter ended March
31, 1997 was $6.0 million compared to $5.6 million for the same
quarter in 1996.
<PAGE>
Fidelity Bankshares, Inc.
Financial Highlights
<TABLE>
<CAPTION>
Year Quarter Quarter
Ended Ended Ended
December 31, March 31, March 31,
1996 1996 1997
<S> <C> <C> <C>
FOR THE PERIOD (Unaudited In Thousands)
Interest income $60,240 $14,333 $16,297
Interest expense 32,131 7,579 8,967
Net interest income 28,109 6,754 7,330
Net income 3,550 1,496 1,234
PER COMMON SHARE
Net income:
Primary $0.53 $0.22 $0.18
Fully diluted 0.53 0.22 0.18
Dividends declared 0.70 0.15 0.20
Book value 12.12 12.18 12.08
Stock price:
High 18.50 16.50 20.00
Low 11.75 13.25 17.50
Close 17.75 13.25 20.00
AVERAGE FOR THE PERIOD (In Thousands)
Assets $824,025 $783,264 $895,513
Loans receivable, net 605,507 549,042 674,694
Mortgage-backed
securities 135,973 151,629 128,998
Investments 35,530 35,257 41,696
Deposits 636,297 601,555 714,820
Borrowed funds 85,608 82,372 81,949
Stockholders' equity 81,339 81,513 82,104
/TABLE
<PAGE>
<TABLE>
<S> <C> <C> <C>
SELECTED RATIOS
Return on average assets 0.43% 0.76% 0.55%
Return on average equity 4.36% 7.34% 6.01%
Interest rate spread on average
assets for the period 3.14% 3.19% 3.05%
Net yield on average interest
earning assets for the period 3.62% 3.67% 3.47%
Interest rate spread at end of
period 3.20% 3.45% 3.15%
Net yield on interest earning assets
at end of period 3.61% 3.85% 3.57%
Ratio of interest earning assets to
interest bearing liabilities at end
of period 109.99% 106.10% 109.94%
Ratio of non performing assets to
total asset 0.39% 0.37% 0.31%
Ratio of valuation allowances to non
performing assets 66.53% 76.39% 74.23%
Ratio of valuation allowances to loans
receivable, net 0.34% 0.39% 0.31%
Stockholders' equity as a percentage
of assets 9.36% 10.24% 8.82%
PERIOD END (Unaudited In Thousands)
Total assets $873,562 $791,897 $926,891
Investments 41,740 24,957 43,801
Loans receivable, net 661,700 571,299 688,298
Mortgage-backed securities 123,599 135,148 143,660
Deposits 694,718 611,327 743,850
Borrowed funds 83,621 78,040 81,104
Stockholders' equity 81,723 81,076 81,755
</TABLE>
<PAGE>
<TABLE>
Selected Unaudited Financial Data
Fidelity Bankshares, Inc.
March 31,
1996 1997
(In Thousands)
<S> <C> <C>
Selected Financial Data:
Total assets $791,897 $926,891
Loans, net 571,299 688,298
Cash and cash equivalents 25,055 44,781
Assets available for sale 145,611 154,635
Real estate owned 389 853
Deposits 611,327 743,850
FHLB advances 76,729 80,069
Stockholders' equity 81,076 81,755
</TABLE>
TABLE
<PAGE>
Selected Unaudited Operating Data
Fidelity Bankshares, Inc.
Quarter Ended
March 31,
1996 1997
(In Thousands)
<S> <C> <C>
Selected Operating Data:
Interest income $14,333 $16,297
Interest expense 7,579 8,967
Net interest income 6,754 7,330
Provision for loan losses 76 51
Net interest income after
provision for loan losses 6,678 7,279
Other income 1,420 902
Operating expense 5,552 6,041
Income before taxes 2,546 2,140
Provision for income taxes 1,050 906
Net income $1,496 $1,234
</TABLE>
