Exhibit 99.1
For More Information, Call: FOR IMMEDIATE RELEASE
Connie Ayres LaPlante
Treasurer
740-588-2265
FIRST FEDERAL BANCORP ANNOUNCES
IMPROVED SECOND QUARTER RESULTS
ZANESVILLE, Ohio (April 21, 2004) J. William Plummer, President and Chief
Executive Officer, First Federal Bancorp, Inc. (NASDAQ: FFBZ) today
reported net income increased approximately 7% to $523,000, or $0.16 per
diluted share, for the three months ended March 31, 2004 from $490,000, or
$0.15 per diluted share, the prior year. This improvement was due to
increases in non-interest income and net interest income that were
partially offset by higher non-interest expense and provision for loan
losses compared to the same period last year.
J. William Plummer, President and Chief Executive Officer, stated "Our
results for the second quarter benefited from solid growth in assets and
non-interest income. The Bank's total assets increased approximately 7%
during the quarter compared to a year ago, led by higher yielding small
business commercial loans, as well as earning assets including variable
rate residential loans and consumer loans. As a result of this growth, the
Bank's provision for loan losses was increased consistent with our credit
policy. The 31% increase in non-interest income for the second quarter
compared to last year benefited from mortgage servicing rights, and, to a
lesser extent, growth in service fees. We are actively pursuing efforts to
reduce the Bank's non-interest expenses without sacrificing customer
service."
Second Quarter Results
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Net interest income increased approximately 3% to $2.2 million for the
quarter ended March 31, 2004 from $2.1 million last year. Net interest
margin declined 0.20% to 3.56% for the second quarter 2004 versus a year
ago principally due to deposit mix. Jumbo deposits, which are $100,000 or
more per account, from national sources rose $9.3 million to $22.5 million
and replaced Federal Home Loan Bank borrowings. This enabled the Bank to
realize further benefits from current interest rates.
Non-interest income rose to $0.5 million for second quarter 2004 versus
$0.4 million for the same period in 2003. Continuation of low interest
rates contributed to a $136,000 reversal of previously impaired mortgage
servicing rights versus a charge of $42,000 for the same period last year.
Other service fee and miscellaneous income increased 5% and 8%,
respectively, for the second quarter 2004 compared to the prior year.
Non-interest expense was $1.8 million for the second quarter 2004 or 2%
above the same period a year ago. This difference was primarily due to
salaries and benefits as well as increased advertising.
Six-Month Results
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Net income was $0.9 million, or $0.27 per diluted share, for the six months
ended March 31, 2004 and 2003.
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Net interest margin declined 0.23% to 3.50% for the first half of fiscal
2004 from 3.73% a year ago. The provision for loan losses for the six
months ended March 31, 2004 was $0.2 million above last year as a result of
solid growth in the total loan portfolio since fiscal year-end 2003 and
planned changes in loan mix of the Bank's portfolio.
Non-interest income increased to $1.0 million for the first six months of
fiscal year 2004 from $0.7 million the prior year. For the six months
ended March 31, 2004 a total of $236,000 of previously impaired mortgage
servicing rights were recognized as income compared to a charge of $130,000
for the same period last year.
Non-interest expense was $3.5 million for the first half of fiscal year
2004 compared to $3.4 million for the same period last year. Factors that
contributed to this increase included higher salaries and advertising as
well as expenses for the remodeling of one of the Bank's branch offices.
Balance Sheet
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Loans receivable increased $14.5 million to $220.0 million at March 31,
2004 compared to year-end fiscal 2003 and were $21.6 million above the same
date a year ago. Solid increases have been achieved in small business
commercial, home equity and variable rate residential mortgage loans during
the past year.
First Federal's non-performing asset ratio was 0.31% of total assets at
March 31, 2004 compared to 0.24% the prior year. Net charge-offs declined
to 0.08% of loans receivable for the first half of this year compared with
0.11% a year ago. The allowance for loan losses was 0.74% at March 31,
2004 versus 0.77% on the same date last year.
Shareholders' equity was $22.7 million at March 31, 2004, an increase of
$0.6 million from September 30, 2003 and $21.5 million a year ago. Book
value per diluted share was $6.74 at March 31, 2004 compared to $6.59 and
$6.41 per share, respectively, at year-end fiscal 2003 and March 31, 2003.
Cash Dividend and Stock Buyback
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The Board of Directors declared a $0.06 cash dividend for the quarter ended
March 31, 2004 that represents a 9% increase over the same period a year
ago.
In June 2002, the Board of Directors authorized the repurchase of up to 5%
of First Federal Bancorp's common shares outstanding from time to time in
public market and private transactions for a two-year period. As of March
31, 2004, First Federal Bancorp, Inc. had repurchased 74,700 of its common
shares at an average price of $7.55 per share.
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.
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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.
FIRST FEDERAL BANCORP, INC.
FINANCIAL HIGHLIGHTS
(In thousands, except per share amounts)
At March 31, At September 30,
2004 2003
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Selected Financial Condition Data:
Assets $250,500 $234,528
Loans, net $220,006 $205,478
Mortgage-backed securities $249 $303
Investment securities $7,642 $8,168
FHLB stock $4,880 $4,783
Deposits $179,303 $164,447
Total equity $22,695 $22,078
Total equity per share $6.74 $6.59
Three Months Ended Six Months Ended
March 31, March 31,
2004 2003 2004 2003
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Selected Operations Data:
Total interest income $3,410 $3,501 $6,711 $7,105
Total interest expense 1,226 1,373 2,476 2,905
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Net interest income $2,184 $2,128 $4,235 $4,200
Provision for loan losses 70 (6) 293 69
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Net interest income after
provision for loan losses $2,114 $2,134 $3,942 $4,131
Noninterest income 463 353 977 660
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Noninterest expense 1,779 1,739 3,544 3,390
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Income before income tax $ 798 $ 748 $1,375 $1,401
Provision for income tax 275 258 475 483
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Net income $ 523 $ 490 $ 900 $ 918
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Earnings per share:
Basic $.16 $.15 $.28 $.28
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Diluted $.16 $.15 $.27 $.27
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Weighted average common and
common equivalent shares:
Basic 3,267,126 3,234,782 3,263,978 3,246,284
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Diluted 3,370,893 3,349,369 3,368,845 3,365,043
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FIRST FEDERAL BANCORP, INC.
FINANCIAL HIGHLIGHTS
At or for the Three Months At or for the Six Months
ended March 31, ended March 31,
2004 2003 2004 2003
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Selected Financial Ratios And Other Data:
Performance Ratios (Annualized):
Return on average assets 0.85% 0.87% 0.74% 0.81%
Return on average equity 9.35% 9.13% 8.06% 8.58%
Interest rate spread:
Average during period 3.62% 3.83% 3.55% 3.79%
Net interest margin 3.56% 3.76% 3.50% 3.73%
Noninterest expense to average assets 2.90% 3.07% 2.93% 3.01%
Quality Ratios:
Nonperforming assets to total assets
at end of period 0.31% 0.24% 0.31% 0.24%
Efficiency ratio 62.85% 64.64% 63.74% 64.40%
Loan loss allowance to net loans at
end of period 0.74% 0.77% 0.74% 0.77%
Capital Ratios:
Total equity to total assets at
end of period 9.06% 9.37% 9.06% 9.37%
Average interest-earning assets to
average interest-bearing Liabilities 106.98% 106.47% 107.26% 106.51%
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