EXHIBIT 99.1
For More Information, Call: FOR IMMEDIATE RELEASE
Connie Ayres LaPlante
Treasurer
740-588-2265
FIRST FEDERAL BANCORP REPORTS
FOURTH QUARTER RESULTS
ZANESVILLE, Ohio (November 20, 2003) J. William Plummer, President and Chief
Executive Officer of First Federal Bancorp, Inc. (NASDAQ: FFBZ) today
reported results for the three months and fiscal year ended September 30,
2003.
Net income for the fourth quarter 2003 improved to $0.5 million or $0.15 per
diluted share from $0.2 million or $0.05 per diluted share for the same
period last year.
The fourth quarter 2002 results included a non-cash charge related to SFAS
125, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities", which represented $0.2 million or $0.04 per
diluted share, and a pre-tax charge of $0.2 million or $0.04 per diluted
share related to termination of First Federal's defined benefit plan.
J. William Plummer, President and Chief Executive Officer, commented, "During
the fourth quarter 2003 we increased loans outstanding, maintained strong
credit quality, and continued to benefit from a solid balance sheet. In this
environment of historically low interest rates we remained focused on asset
strength and our long-term objectives. The growth in commercial and small
business loans combined with the increase in deposits during fiscal 2003 is
expected to contribute positively to First Federal's performance in future
periods. Our outlook for fiscal 2004 is improved compared to last year, but
remains cautious pending further evidence of sustained improvement in the
economy."
Fourth Quarter Results
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Net loans improved approximately $10.0 million to $205.5 million at September
30, 2003 versus the same date a year ago. Commercial and small business loan
growth was solid, offsetting declines in automobile loans which resulted from
the continuation of aggressive financing programs by automobile
manufacturers.
Net interest income was $2.0 million for the fourth quarters of 2003 versus
$2.1 million for the same period last year. For the three months ended
September 30, 2003, asset yields declined at a faster rate than deposit
yields compared to a year ago. This resulted in a net interest margin of
3.52% for the fourth quarter 2003 versus 3.71% for the same period last year.
Non-interest income rose to $0.5 million for the fourth quarter 2003 compared
with $0.2 million for the same period last year. The principal reasons for
the quarter-over-quarter difference include lower mortgage servicing rights,
higher loan servicing fees due to the
larger number of loans outstanding, and other miscellaneous fees. There was
a non-cash charge of $0.2 million recorded in the fourth quarter 2002 related
to SFAS 125.
Non-interest expense declined to $1.8 million for the fourth quarter 2003
from $1.9 million for the same period last year. The prior year results
included a pre-tax charge of approximately $0.2 million related to
termination of First Federal's defined benefit plan. Otherwise, non-interest
expense increased compared to last year due to higher consulting and
professional fees, miscellaneous expenses, and a new loan production office
that opened during the latter part of the fourth quarter 2003.
Fiscal Year 2003 Results
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Net interest income was $8.4 million for the twelve months ended September
30, 2003 versus $8.8 million for the same period last year. Net interest
margin declined to 3.74% from 3.87% a year ago.
Non-interest income was $1.8 million for fiscal year 2003 versus $1.4 million
the prior year. The 2002 results included a pre-tax charge of approximately
$0.2 million related to SFAS 125. Most of the year-over-year difference was
due to lower mortgage servicing rights in fiscal year 2003.
Non-interest expense was $7.1 million for fiscal year 2003 compared to $7.0
million for the same period last year. This increase was principally due to
higher consulting and professional fees as well as other miscellaneous
expenses. Net income was $1.8 million or $0.54 per diluted share for fiscal
year 2003 compared to $1.9 million or $0.56 for fiscal year 2002.
Balance Sheet
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Total assets were $234.5 million at September 30, 2003 compared to $226.5
million on the same date a year ago. Net loans receivable increased 5.1% to
$205.5 million at September 30, 2003 versus $195.5 million on the same date
in 2002. This improvement was principally due to solid growth in commercial
loans as well as non-residential loans, and to a lesser extent, variable rate
mortgages and home equity loans. These increases were partially offset by a
$5.1 million decline in automobile loans due to aggressive financing plans by
automobile manufacturers and increased competition.
Return on average assets was 0.89% for the fourth quarter 2003 versus 0.30%
for the same period last year. For fiscal year 2003, return on average
assets was 0.80% compared to 0.81% for fiscal year 2002.
Total deposits rose 4.2% to $164.4 million at September 30, 2003 compared
with $157.7 million on the same date last year. Most of the increase
occurred in low cost transaction accounts which are generally a more stable
source of funds.
Total shareholders' equity improved to $22.1 million at September 30, 2003
from $21.3 million on the same date last year. Shareholders' equity rose to
$6.59 per diluted share at year-end 2003 compared to $6.30 on September 30,
2002.
The return on average equity was 9.44% and 8.44%, respectively, for the
fourth quarter and fiscal year 2003 versus 3.14% and 8.95% for the same
periods a year ago.
Asset Quality
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Non-performing assets were 0.22% of total assets at September 30, 2003
compared with 0.19% on the same date last year due to the increase in net
loans outstanding year-over-year. The loan loss reserve represented 0.73% of
net loans outstanding at September 30, 2003 versus 0.86% on the same date a
year ago. This decline was attributable to a reduction in repossessed loans
during fiscal 2003 and the lower amount of automobile loans outstanding
compared to fiscal year 2002.
Share Repurchase Program
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As of September 30, 2003, First Federal had repurchased 74,400 common shares
at an average price of $7.55 per share pursuant to the stock repurchase
program which expires in June 2004. The Board of Directors authorized the
repurchase of up to 164,622 of First Federal's outstanding common shares this
program. There were 3,349,713 average weighted fully diluted common shares
outstanding for fiscal year 2003.
About First Federal Bancorp, Inc.
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First Federal Bancorp, Inc. is the parent company of First Federal Savings
Bank of Eastern Ohio, whose primary markets include Coshocton, Guernsey,
Licking, Morgan, Muskingum, Perry, and Tuscarawas counties. Additional
information is available by contacting Connie Ayres LaPlante, Treasurer,
First Federal Bancorp, Inc., at (740) 588-2265.
Statements made in this press release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ materially from
estimated results. Such risks and uncertainties are detailed in the
Company's filings with the Securities and Exchange Commission. All forward-
looking statements made in this press release are based on information
presently available to management. The Company assumes no obligation to
update any forward-looking statements.
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FIRST FEDERAL BANCORP, INC.
FINANCIAL HIGHLIGHTS
(In Thousands, except per share amounts)
Three Months Ended Twelve Months Ended
September 30, September 30,
2003 2002 2003 2002
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Selected Operations Data:
Total Interest Income $ 3,347 $ 3,761 $ 13,915 $ 15,832
Total Interest Expense 1,298 1,650 5,509 7,031
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Net Interest Income $ 2,049 $ 2,111 $ 8,406 $ 8,801
Provision For Loan Losses 15 136 270 357
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Net Interest Income After Provision
for Loan Losses $ 2,034 $ 1,975 $ 8,136 $ 8,444
Noninterest Income 515 191 1,793 1,398
Noninterest Expense 1,759 1,899 7,146 6.957
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Income Before Income Tax $ 790 $ 267 $ 2,783 $ 2,882
Provision For Income Tax 273 99 960 1,015
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Net Income $ 517 $ 169 $ 1,823 $ 1,867
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Earnings Per Share:
Basic $ 0.16 $ 0.05 $ 0.56 $ 0.58
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Diluted $ 0.15 $ 0.05 $ 0.54 $ 0.56
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Weighted Average Common and Common
Equivalent Shares:
Basic 3,235,319 3,278,691 3,236,642 3,205,099
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Diluted 3,337,336 3,382,695 3,349,713 3,357,180
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FIRST FEDERAL BANCORP, INC.
FINANCIAL HIGHLIGHTS
(In Thousands, except per share amounts)
At September 30, 2003 At September 30, 2002
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Selected Financial Condition Data:
Assets $234,528 $226,451
Loans Receivable - Net $205,476 $195,526
Mortgage-Backed Securities $ 303 $ 416
Investment Securities $ 8,168 $ 9,694
FHLB Stock $ 4,783 $ 4,591
Deposits $164,447 $157,688
Total Equity $ 22,078 $ 21,294
Total Equity Per Share $ 6.59 $ 6.30
At or for the Three Months At or for the Twelve Months
Ended September 30, Ended September 30,
2003 2002 2003 2002
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Selected Financial Ratios And Other Data:
Performance Ratios (Annualized):
Return on Average Assets . 89% .30% .80% .81%
Return on Average Equity 9.44% 3.14% 8.44% 8.95%
Interest Rate Spread:
Average During Period 3.57% 3.78% 3.68% 3.83%
At End of Period 3.74% 3.97% 3.92% 4.10%
Net Interest Margin 3.52% 3.71% 3.74% 3.87%
Noninterest Expense to Average Assets 3.03% 3.33% 3.13% 3.03%
Quality Ratios:
Nonperforming Assets to Total Assets at End of Period. 22% .19% .22% .19%
Efficiency Ratio 67.62% 72.50% 65.57% 63.05%
Loan Loss Allowance to Net Loans at End of Period 0.73% 0.86% 0.73% 0.86%
Capital Ratios:
Total Equity to Total Assets at End of Period 9.41% 9.40% 9.41% 9.40%
Average Interest-earning Assets to Average Interest-bearing
Liabilities 107.09% 106.08% 106.70% 108.29%
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