EXHIBIT 99.1
FFLC Bancorp, Inc.
Holding Company for
First Federal Savings Bank
P.O. Box 490420 Leesburg, Florida 34749-0420
Voice (352) 787-3311 - Fax (352) 787-7206
FOR IMMEDIATE RELEASE Contact: Stephen T. Kurtz
April 11, 2003 President & CEO
FFLC BANCORP, INC., Announces Increased Income for the 1st Quarter and Declares
Quarterly Dividend
Leesburg, Florida. FFLC Bancorp, Inc. (NASDAQ NMS: FFLC), the holding company
for First Federal Savings Bank of Lake County, reported a 7% increase in net
income to $2.4 million for the quarter ended March 31, 2003, compared to the
$2.2 million earned for the comparable 2002 quarter. Total assets grew 13% to
$950.7 million at March 31, 2003 from $840.5 million at March 31, 2002.
On a per share basis, basic income increased to $.44 per share for the quarter
ended March 31, 2003, compared to $.41 per share for the 2002 quarter. Net
income per share on a diluted basis, increased to $.43 for the quarter ended
March 31, 2003, compared to $.41 for the 2002 quarter.
Net interest income after provision for loan losses increased 9% to $6.6 million
for the quarter ended March 31, 2003 compared to $6.1 million for the 2002
quarter. That increase resulted primarily from a $949,000 decrease in interest
expense. The decrease in interest expense was due primarily to an 86 basis point
decrease in the annual cost of liabilities to 3.16% for the 2003 quarter from
4.02% for the 2002 quarter, partially offset by a $81.1 million increase in
average interest-bearing liabilities outstanding during the 2003 quarter
compared to the 2002 quarter.
Noninterest expense increased $678,000 or 20% for the quarter ended March 31,
2003, compared to the 2002 period. That increase was primarily the result of the
growth of the company and the corresponding increase in salaries and employee
benefits.
Stockholders' equity increased to $72.7 million at March 31, 2003, from $71.1
million at December 31, 2002. Book value per share increased to $13.53 at March
31, 2003, from $13.22 at December 31, 2002. During the first quarter of 2003,
the Company repurchased 2,605 shares of its common stock at a cost of $89,000
under the stock repurchase program.
DIVIDEND
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On April 10, 2003, the Board of Directors approved a cash dividend of $.10 per
share on the common stock, payable May 5, 2003 to shareholders of record at the
close of business on April 21, 2003. The $.10 per share cash dividend represents
an 17% increase over the $.09 per share paid for the first quarter of 2002.
The stock of FFLC Bancorp, Inc. is quoted on the NASDAQ National Market System
under the symbol "FFLC". First Federal's web site is located at
http://www.1stfederal.com. FFLC Bancorp, Inc.'s SEC filings are available at the
web site, in the "FFLC Bancorp" section of the web site. The press releases and
other supplemental information are also available on the web site.
Page 1
SELECTED FINANCIAL DATA
($ in thousands, except per share amounts)
SELECTED BALANCE SHEET DATA At March 31 At December 31
2003 2002
Total assets $950,656 $915,821
Deposits $694,218 $668,058
Total gross loans receivable $755,329 $756,555
Allowance for loan losses $5,311 $5,181
Total stockholders' equity $72,727 $71,062
Shares outstanding (2) 5,377,166 5,374,913
Market price per share $25.50 $19.71
Book value per share (2) $13.53 $13.22
Nonperforming loans $2,787 $2,592
Nonperforming assets $3,693 $3,218
Equity as a percentage of total assets 7.65% 7.76%
Interest-earning assets to interest-bearing liabilities 1.06 1.06
ASSET QUALITY RATIOS At March 31 At December 31
2003 2002
Nonperforming assets to total assets 0.39% 0.35%
Nonperforming loans to total loans 0.37% 0.34%
Allowance for loan losses to nonperforming loans 190.56% 199.88%
Allowance for loan losses to nonperforming assets 143.81% 161.00%
Allowance for loan losses to total gross loans receivable 0.70% 0.68%
SELECTED INCOME AND OTHER DATA For the three months
ended March 31,
2003 2002
Net interest income before provision for loan losses $7,035 $6,352
Provision for loan losses $406 $258
Net income $2,354 $2,208
Basic net income per share (2) $0.44 $0.41
Diluted net income per share (2) $0.43 $0.41
Total gross loans originated by department: *
Residential $45,013 $30,877
Commercial $25,898 $24,008
Consumer $20,973 $18,103
* - Includes undisbursed amounts of construction loans and lines of credit.
PERFORMANCE RATIOS (1) For the three months
ended March 31,
2003 2002
Return on average assets 1.01% 1.06%
Return on average equity 13.01% 13.54%
Average equity to average assets 7.77% 7.83%
Noninterest expense to average assets 1.77% 1.65%
Net interest spread 3.01% 2.94%
Net interest margin 3.20% 3.19%
Operating efficiency ratio 49.56% 47.54%
(1) Ratios are annualized
(2) 2002 adjusted to reflect the three-for-two stock split declared in February
2003.
FFLC Bancorp, Inc.
Consolidated Balance Sheets
($ in thousands, except per share amounts)
At March 31 At December 31
Assets 2003 2002
---------------- -----------------
Cash and due from banks $36,223 $20,157
Interest-earning deposits 58,027 49,237
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Cash and cash equivalents 94,250 69,394
Securities available for sale, at market 88,720 77,324
Loans, net 733,567 735,338
Accrued interest receivable 3,720 4,181
Foreclosed assets 906 626
Premises and equipment, net 19,617 19,369
Federal Home Loan Bank stock, at cost 7,700 7,700
Other assets 2,176 1,889
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Total $950,656 $915,821
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Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing demand deposits $24,854 $18,867
NOW and money-market accounts 149,750 137,858
Savings accounts 25,951 25,403
Certificates 493,663 485,930
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Total deposits 694,218 668,058
Advances from Federal Home Loan Bank 149,000 149,000
Other borrowed funds 17,081 14,303
Guaranteed preferred beneficial interest in junior subordinated debentures 5,000 5,000
Accrued expenses and other liabilities 12,630 8,398
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Total liabilities 877,929 844,759
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Stockholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding 0 0
Common stock, $.01 par value, 9,000,000 shares authorized, 6,371,440
in 2003 and 4,574,944 in 2002, shares issued 64 46
Additional paid-in-capital 31,660 31,638
Retained income 60,219 58,409
Accumulated other comprehensive income, net of taxes 540 636
Treasury stock, at cost (994,274 shares in 2003 and 991,669 shares in 2002) (19,756) (19,667)
---------------- -----------------
Total stockholders' equity 72,727 71,062
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Total $950,656 $915,821
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FFLC Bancorp, Inc.
Consolidated Statements of Income and Comprehensive Income
($ in thousands, except per share amounts)
For the three months ended March 31,
2003 2002
---------------- -----------------
Interest Income:
Loans $12,722 $12,842
Securities 588 761
Other interest-earning assets 267 240
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Total interest income 13,577 13,843
---------------- -----------------
Interest Expense:
Deposits 4,415 5,218
Other borrowed funds 2,127 2,273
---------------- -----------------
Total interest expense 6,542 7,491
---------------- -----------------
Net interest income 7,035 6,352
Provision for loan losses 406 258
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Net interest income after
provision for loan losses 6,629 6,094
---------------- -----------------
Noninterest Income:
Deposit account fees 231 218
Other service charges and fees 584 461
Net gain on sales of loans held for sale 271 46
Other 197 168
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Total noninterest income 1,283 893
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Noninterest Expense:
Salaries and employee benefits 2,446 2,016
Occupancy expense 648 573
Data processing expense 273 252
Professional services 103 102
Advertising and promotion 137 111
Other 515 390
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Total noninterest expense 4,122 3,444
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Income before income taxes 3,790 3,543
Income taxes 1,436 1,335
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Net Income $2,354 $2,208
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Basic income per share $0.44 $0.41
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Diluted income per share $0.43 $0.41
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Dividends per share $0.10 $0.09
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Comprehensive income * $2,258 $1,985
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Weighted average number of shares outstanding for Basic 5,373,607 5,351,664
================ =================
Weighted average number of shares outstanding for Diluted 5,479,331 5,459,600
================ =================
* Includes net income and change in unrealized gain (loss) on securities
available for sale and derivative instruments.