Federal Trust (FDT) 8-K Federal Trust Corporation Announces Year-End Results for 2004

Exhibit 99.1

Federal Trust Corporation Announces
Year-End Results for 2004

          SANFORD, Fla., Feb. 1 /PRNewswire-FirstCall/ -- James V. Suskiewich, President and Chief Executive Officer of Federal Trust Corporation (Amex: FDT), reported today that the Company earnings for the year ended December 31, 2004 were $3,089,000 or $.44 per share, compared to $2,777,000 or $.42 per share for 2003.

          At December 31, 2004, Federal Trust’s total assets were $602.8 million, an increase of $134.6 million, or 29% from December 31, 2003. Stockholders’ equity at the end of 2004 was $39.4 million, and the book value per share was $4.97.

          “Federal Trust Corporation, experienced another great year as a result of our being able to execute our growth plans and market strategy,” stated President Suskiewich. “Our cash operating earnings increased 35% in 2004 compared to 2003, credit quality remained strong, $10.4 million in new capital was raised, and we continued to expand our Central Florida footprint” added President Suskiewich.

          During the fourth quarter of 2004, the Company recorded an other-than-temporary non-cash impairment charge of approximately $659,000 after tax, or $.09 per share. The charge related to the Company’s $9.5 million investment in Freddie Mac and Fannie Mae adjustable rate preferred stock. These investment grade securities declined in value in 2004 due to the recent events at Freddie Mac and Fannie Mae coupled with the record low interest rates which caused the dividend payment rate to decline from the original rates at the time of issuance.  President Suskiewich concluded his remarks on the adjustable rate preferred stock saying, “While we believe that the value of these investments will recover in the future as the dividend rates adjust, we are unable to determine at this time when and how much the prices will recover.”

          President Suskiewich also stated, “As we move forward in 2005, we will continue to build our franchise. We expect to begin construction on two new branches in the near future and they should open during the second half of 2005. We have also identified three additional branch sites to continue expanding our footprint in 2006.”

          Federal Trust Corporation’s common stock is traded on the American Stock Exchange under the symbol “FDT.” At January 28, 2005, the closing price was $10.00 per share.

          Federal Trust Corporation is a unitary thrift holding company and is the parent company of Federal Trust Bank, a $598 million federally-chartered, FDIC-insured savings bank. Federal Trust Bank operates from six full-service offices in Sanford, Winter Park, Casselberry, New Smyrna Beach, Deltona, and Orange City, Florida. The Company’s Executive and Administrative Offices are located in Sanford, Florida.

          The following information is in thousands except per share data.

	At Quarter End
	Dec. 31, 2004		Dec. 31, 2003		% Change
Total assets	$	602,780	$	468,198		29	%
Investment securities		41,172		33,615		22	%
Loans		521,331		398,401		31	%
Deposits		404,116		314,630		28	%
Shareholders’ equity		39,387		26,457		49	%
Book value per share	$	4.97	$	4.05		23	%

	Three Months Ended
	Reported Earnings									Operating earnings excluding other-than-temporary impairment
	Dec. 31, 2004			Dec. 31, 2003			% Change			Dec. 31, 2004			Dec.31, 2003			% Change
Interest income	$	7,119		$	5,431			31	%	$	7,119		$	5,431			31	%
Interest expense		3,228			2,326			39	%		3,228			2,326			39	%
Net interest income		3,891			3,105			25	%		3,891			3,105			25	%
Provision for loan losses		330			255			29	%		330			255			29	%
Non-interest income		444			681			(35	)%		444			681			(35	)%
Other-than-temporary impairment		1,055			—			—			—			—			—
Non-interest expenses		2,259			2,523			10	%		2,259			2,523			10	%
Provision for income taxes		204			287			(29	)%		600			287			106	%
Net earnings		487			721			(32	)%		1,146			721			59	%
Earnings per share-basic	$	.06		$	0.11			(45	)%	$	.14		$	.11			27	%
Earnings per share-fully diluted	$	.06		$	0.11			(45	)%	$	.14		$	.11			27	%
Average common shares
Outstanding-basic		7,931			6,467			23	%		7,931			6,467			23	%
Average common shares
Outstanding-diluted		8,155			6,602			24	%		8,155			6,602			24	%
Return on average assets		.33	%		.62	%		(47	)%		.78	%		.62	%		26	%
Return on average equity		4.98	%		11.04	%		(55	)%		11.72	%		11.04	%		6	%
Net interest margin		2.83	%		2.83	%		0	%		2.83	%		2.83	%		0	%

	Twelve Months Ended
	Reported Earnings									Operating earnings excluding other-than-temporary impairment
	Dec. 31, 2004			Dec. 31, 2003			% Change			Dec. 31, 2004			Dec. 31, 2003			% Change
Interest Income	$	24,591		$	20,921			18	%	$	24,591		$	20,921			18	%
Interest expense		10,851			9,750			11	%		10,851			9,750			11	%
Net interest income		13,740			11,171			23	%		13,740			11,171			23	%
Provision for loan losses		1,180			650			82	%		1,180			650			82	%
Non-interest income		2,409			2,358			2	%		2,409			2,358			2	%
Other-than-temporary impairment		1,055			—			—			—			—			—
Non-interest expenses		9,334			8,826			6	%		9,334			8,826			6	%
Provision for income taxes		1,491			1,276			17	%		1,887			1,276			48	%
Net earnings		3,089			2,777			11	%		3,748			2,777			35	%
Earnings per share-basic	$	.44		$	0.42			5	%	$	.53		$	.42			26	%
Earnings per share-fully diluted	$	.43		$	0.42			2	%	$	.52		$	.42			24	%
Average common shares
Outstanding-basic		7,082			6,549			8	%		7,082			6,549			8	%
Average common shares
Outstanding-diluted		7,262			6,662			9	%		7,262			6,662			9	%
Return on average assets		.59	%		0.64	%		(8	)%		.72	%		.64	%		13	%
Return on average equity		9.80	%		10.79	%		(9	)%		11.89	%		10.79	%		10	%
Net interest margin		2.80	%		2.73	%		3	%		2.80	%		2.73	%		3	%

          This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Federal Trust Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions and related actions by the United States military abroad adversely affect the Company’s businesses and economic conditions as a whole; 5) changes in the interest rate environment reduce interest margins and impact funding sources; 6) changes in market rates and prices adversely impact the value of financial products and assets; 7) legislation or regulatory environments, requirements or changes adversely affect businesses in which the Company is engaged; 8) litigation and regulatory liabilities, including costs, expenses, settlements and judgments, adversely affect the Company or its businesses, and; 9) decisions to downsize, sell or close units or otherwise change the business mix of the Company. For further information regarding Federal Trust Corporation, please read the Federal Trust Corporation reports filed with the SEC available at http://www.sec.gov .

          Press releases and other information about Federal Trust Corporation can be found on the PR Newswire at http://www.prnewswire.com .

          For more information, contact:
          Marcia Zdanys,
          Corporate Secretary/Investor Relations
          (407) 323-1833

SOURCE  Federal Trust Corporation
312 West First Street
Sanford, Fl 32771 
          -0-                                                            02/01/2005
    /CONTACT:  Marcia Zdanys, Corporate Secretary/Investor Relations, Federal
Trust Corporation, +1-407-323-1833/
          /Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/19990513/FDTRLOGO
                       AP Archive:  http://photoarchive.ap.org
                       PRN Photo Desk, photodesk@prnewswire.com /
          /Web site:  http://www.federaltrust.com /