Exhibit 99
For More Information, Call: FOR IMMEDIATE RELEASE
Connie Ayres LaPlante
Treasurer
740-588-2265
FIRST FEDERAL BANCORP REPORTS
FOURTH QUARTER RESULTS
ZANESVILLE, Ohio (November 1, 2004) 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,
2004.
Net income for the fourth quarter 2004 was $0.3 million or $0.10 per
diluted share compared to $0.5 million or $0.15 per diluted share for the
same period last year. This was principally due to an increase in the
provision for loan losses, reflecting the 11% growth in loans since
September 30, 2003 and repossessed assets due to the weak economy.
J. William Plummer, President and Chief Executive Officer, commented,
"During the three months ended September 30, 2004 loans outstanding
increased for the seventh consecutive quarter compared to the prior year,
and we continue to benefit from a solid balance sheet. The growth in
commercial and small business loans combined with the increase in deposits
during fiscal year 2004 is expected to contribute positively to performance
in future periods."
Fourth Quarter Results
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Net interest income rose to $2.1 million for the fourth quarter of 2004
from $2.0 million for the same period last year. Solid growth in
automobile and home equity loans was partially offset by a modest decline
in non-residential and variable rate mortgage loans. For the three months
ended September 30, 2004, asset yields declined at a faster rate than
deposit yields compared to a year ago. This resulted in a net interest
margin of 3.30% for the fourth quarter 2004 versus 3.52% for the same
period a year ago.
Non-interest income was $0.5 million for the fourth quarter 2004 and 2003.
Non-interest expense was $1.8 million for the fourth quarter 2004 and 2003.
Lower marketing expenses for the three months ended September 30, 2004 were
offset by higher professional fees related to the pending merger agreement
with Park National Corporation.
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Fiscal Year 2004 Results
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Net interest income increased to $8.5 million for the twelve months ended
September 30, 2004 from $8.4 million for the same period last year. Net
interest margin declined to 3.41% from 3.68% a year ago. Non-interest
income was $1.8 million for fiscal year 2004 and 2003. Non-interest
expense declined slightly to $7.0 million for fiscal year 2004 compared to
$7.1 million for the same period last year. Net income was $1.7 million or
$0.49 per diluted share for fiscal year 2004 compared to $1.8 million or
$0.54 for fiscal year 2003.
Balance Sheet
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Total assets were $258.4 million at September 30, 2004 compared to $234.5
million on the same date in 2003, an increase of 10%. Net loans receivable
rose 11.0% to $228.1 million at September 30, 2004 from $205.5 million on
the same date last year. This improvement was principally due to solid
growth in non-residential loans, variable rate mortgages, home equity
loans, and automobile loans, while commercial loans remained stable
compared to a year ago.
Total deposits rose 7.4% to $176.5 million at September 30, 2004 from
$164.4 million on the same date last year. Most of the increase occurred
in jumbo certificates of deposit, which are $100,000 or more per account,
from national sources which enabled the bank to attract deposit funds at
lower rates for longer-terms.
Total shareholders' equity increased 7% to $23.6 million at September 30,
2004 from $22.1 million on the same date last year. Shareholders' equity
rose to $6.98 per diluted share at year-end 2004 compared to $6.59 on
September 30, 2003.
Asset Quality
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Non-performing assets were 0.41% of total assets at September 30, 2004
compared with 0.22% on the same date last year particularly due to the
increase in net loans outstanding and change in loan mix year-over-year.
The loan loss reserve represented 0.86% of net loans outstanding at
September 30, 2004 versus 0.73% on the same date a year ago.
Special Meeting of Shareholders
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A special meeting of the shareholders of First Federal Bancorp, Inc. has
been scheduled for November 8, 2004 at 10:00 a.m. Eastern Standard Time, to
consider and vote upon the adoption of the Agreement and Plan of Merger by
and among Park National Corporation and First Federal Bancorp, Inc.
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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.
FIRST FEDERAL BANCORP, INC.
FINANCIAL HIGHLIGHTS
(In Thousands, except per share amounts)
Three Months Ended Twelve Months Ended
September 30, September 30,
2004 2003 2004 2003
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Selected Operations Data:
Total Interest Income $3,409 $3,347 $13,500 $13,915
Total Interest Expense 1,280 1,298 5,006 5,509
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Net Interest Income $2,129 $2,049 $ 8,494 $ 8,406
Provision For Loan Losses 244 15 767 270
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Net Interest Income After
Provision for Loan Losses $1,885 $2,034 $ 7,727 $ 8,136
Noninterest Income 454 515 1,843 1,793
Noninterest Expense 1,774 1,759 6,996 7,146
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Income Before Income Tax $ 565 $ 790 $ 2,574 $ 2,783
Provision For Income Tax 220 273 914 960
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Net Income $ 345 $ 517 $ 1,660 $ 1,823
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Earnings Per Share:
Basic $ 0.10 $ 0.16 $ 0.51 $ 0.56
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Diluted $ 0.10 $ 0.15 $ 0.49 $ 0.54
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Weighted Average Common and
Common Equivalent Shares:
Basic 3,291,686 3,235,319 3,276,471 3,236,642
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Diluted 3,424,215 3,337,336 3,384,532 3,349,713
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FIRST FEDERAL BANCORP, INC.
FINANCIAL HIGHLIGHTS
(In Thousands, except per share amounts)
At September 30, 2004 At September 30, 2003
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Selected Financial Condition Data:
Assets $258,395 $234,528
Loans Receivable - Net $228,107 $205,476
Mortgage-Backed Securities $207 $303
Investment Securities $7,096 $8,168
FHLB Stock $4,981 $4,783
Deposits $176,482 $164,447
Total Equity $23,633 $22,078
Total Equity Per Share $6.98 $6.59
At or for the At or for the
Three Months Twelve Months
Ended September 30, Ended September 30,
2004 2003 2004 2003
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Selected Financial Ratios And Other Data:
Performance Ratios (Annualized):
Return on Average Assets .54% .89% .67% .80%
Return on Average Equity 5.95% 9.44% 7.32% 8.44%
Interest Rate Spread:
Average During Period 3.33% 3.57% 3.45% 3.74%
Net Interest Margin 3.30% 3.52% 3.41% 3.68%
Noninterest Expense to Average Assets 2.75% 3.03% 2.81% 3.13%
Quality Ratios:
Nonperforming Assets to Total
Assets at End of Period .41% .22% .41% .22%
Efficiency Ratio 61.04% 67.62% 62.53% 65.57%
Loan Loss Allowance to Net
Loans at End of Period 0.86% 0.73% 0.86% 0.73%
Capital Ratios:
Total Equity to Total Assets
at End of Period 9.15% 9.41% 9.15% 9.41%
Average Interest-earning Assets to
Average Interest-bearing Liabilities 107.18% 107.09% 107.16% 106.70%
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