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
July 10, 2003 President & CEO
FFLC Bancorp, Inc. Added to Russell Indexes
According to the final membership list issued by the Frank Russell Company, FFLC
Bancorp, Inc., joined the Russell 3000(R) Index when the broad-market index was
reconstituted on June 30. Index membership went into effect July 1 and will
remain in place for one year. Membership in the Russell 3000(R) meant FFLC was
automatically included in the small-cap Russell 2000(R) Index.
Stephen T. Kurtz, FFLC Bancorp's President and CEO, again expressed his pleasure
that the Company would be included in the Russell indexes. "This is a major
milestone for FFLC to be included in these well-known indexes. FFLC has
continued to grow through the efforts of a great group of directors and
employees, the support of our stockholders and the communities we have the
pleasure of serving."
Membership in Russell's 21 U.S. equity indexes is determined primarily by market
capitalization rankings and style attributes. Russell indexes are widely used by
managers for index funds and as benchmarks for both passive and active
investment strategies. About $250 billion is invested in index funds based on
Russell's indexes and an additional $850 billion is benchmarked to them.
Investment managers who oversee these funds purchase shares of member stocks
according to that company's weighting in the particular index.
Annual reconstitution of the Russell indexes captures the 3,000 largest U.S.
stocks as of the end of May, ranking them by total market capitalization to
create the Russell 3000. The largest 1,000 companies in the ranking comprise the
Russell 1000 Index while the remaining 2,000 companies become the widely used
Russell 2000 Index.
FFLC Bancorp, Inc. with over $900 million in assets is the holding company for
First Federal Savings Bank of Lake County, based in Leesburg, Florida. First
Federal Savings Bank of Lake County conducts business in Lake, Sumter, Citrus
and Marion Counties, Florida, through a network of fourteen branch offices. 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, press releases and
other supplemental information are available at the web site, in the "FFLC
Bancorp" section.
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
July 11, 2003 President & CEO
FFLC BANCORP, INC., Announces Increased Income for the 2nd Quarter
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 June 30, 2003, compared to the $2.2
million earned for the comparable 2002 quarter. On a per share basis, basic
income increased to $.44 per share for the quarter ended June 30, 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 June 30, 2003, compared to $.40 for the
2002 quarter. Total assets grew 3% to $922.9 million at June 30, 2003 from
$891.9 million at June 30, 2002.
Net income for the six months ended June 30, 2003 increased 7% to $4.7 million,
compared to $4.4 million for the first six months of 2002. On a per share basis,
basic income increased to $.88 per share for the six months ended June 30, 2003,
compared to $.83 per share for the 2002 period. Net income per share on a
diluted basis increased to $.86 for the six months ended June 30, 2003, compared
to $.81 for the 2002 period.
Net interest income after provision for loan losses increased 7% to $6.6 million
for the quarter ended June 30, 2003, compared to $6.2 million for the 2002
quarter. That increase resulted primarily from a $967,000 decrease in interest
expense. The decrease in interest expense was due primarily to a 76 basis point
decrease in the cost of liabilities, to 3.06% for the 2003 quarter from 3.82%
for the 2002 quarter, partially offset by a $61.2 million increase in average
interest-bearing liabilities outstanding during the 2003 quarter compared to the
2002 quarter.
Nonperforming loans increased to $5.2 million at June 30, 2003, from $2.8
million at March 31, 2003. A commercial line of credit and a mortgage loan to an
agriculture borrower totaling $2.7 million were classified as substandard.
Management estimates the fair value of the combined collateral, including
accounts receivable, real estate, and a certificate of deposit, to approximate
$3.2 million and, accordingly, no loss is anticipated on those loans.
Noninterest expense increased $666,000 or 19% for the quarter ended June 30,
2003, compared to the 2002 period. That increase was primarily the result of the
growth of the Company and corresponding increases in salaries and employee
benefits.
Stockholders' equity increased to $74.5 million at June 30, 2003, from $72.7
million at March 31, 2003. Book value per share increased to $13.81 at June 30,
2003, from $13.53 at March 31, 2003. During the second quarter of 2003, the
Company repurchased 5,774 shares of its common stock at a cost of $158,000 under
the stock repurchase program.
First Federal Savings Bank of Lake County conducts business in Lake, Sumter,
Citrus and Marion Counties, Florida, through a network of fourteen branch
offices. The stock of FFLC Bancorp, Inc. is quoted on the NASDAQ National Market
System under the symbol "FFLC". First Federal's web site is located at
http://www.1stfederal.com. FFLC Bancorp, Inc.'s SEC filings, press releases and
other supplemental information are available at the web site, in the "FFLC
Bancorp" section.
SELECTED FINANCIAL DATA
($ in thousands, except per share amounts)
SELECTED BALANCE SHEET DATA At June 30 At December 31
2003 2002
Total assets $ 922,934 $ 915,821
Deposits $ 682,057 $ 668,058
Total gross loans receivable $ 766,729 $ 756,555
Allowance for loan losses $ 5,426 $ 5,181
Total stockholders' equity $ 74,473 $ 71,062
Shares outstanding (2) 5,393,055 5,374,913
Market price per share $ 25.97 $ 19.71
Book value per share (2) $ 13.81 $ 13.22
Nonperforming loans $ 5,216 $ 2,592
Nonperforming assets $ 5,934 $ 3,218
Equity as a percentage of total assets 8.07% 7.76%
Interest-earning assets to interest-bearing liabilities 1.07 1.06
ASSET QUALITY RATIOS At June 30 At December 31
2003 2002
Nonperforming assets to total assets 0.64% 0.35%
Nonperforming loans to total loans 0.68% 0.34%
Allowance for loan losses to nonperforming loans 104.03% 199.88%
Allowance for loan losses to nonperforming assets 91.44% 161.00%
Allowance for loan losses to total gross loans receivable 0.71% 0.68%
SELECTED INCOME AND OTHER DATA For the six months
ended June 30,
2003 2002
Net interest income before provision for loan losses $14,047 $13,182
Provision for loan losses $ 794 $ 871
Ratio of net charge-offs to average loans (1) 0.15% 0.13%
Net income $ 4,720 $ 4,421
Basic net income per share (2) $ 0.88 $ 0.83
Diluted net income per share (2) $ 0.86 $ 0.81
Total gross loans originated by department: *
Residential $96,591 $70,953
Commercial $52,936 $54,110
Consumer $47,247 $42,481
* - Includes undisbursed amounts of construction loans and lines of credit.
PERFORMANCE RATIOS (1) For the six months
ended June 30,
2003 2002
Return on average assets 1.01% 1.05%
Return on average equity 12.87% 13.38%
Average equity to average assets 7.86% 7.83%
Noninterest expense to average assets 1.80% 1.67%
Net interest spread 3.00% 3.04%
Net interest margin 3.19% 3.28%
Operating efficiency ratio 50.02% 47.10%
(1) Ratios are annualized
(2) 2002 adjusted to reflect the three-for-two stock split declared in February
2003.
FFLC Bancorp, Inc.
Consolidated Balance Sheets
($ in thousands, except per share amounts)
At June 30 At December 31
Assets 2003 2002
Cash and due from banks $ 35,786 $ 20,157
Interest-earning deposits 27,411 49,237
-------- --------
Cash and cash equivalents 63,197 69,394
Securities available for sale, at market 82,530 77,324
Loans, net of allowance for loan losses of $5,426 in 2003 and $5,181 in 2002 743,137 735,338
Accrued interest receivable 3,846 4,181
Foreclosed assets 718 626
Premises and equipment, net 20,408 19,369
Federal Home Loan Bank stock, at cost 6,900 7,700
Deferred income taxes 861 487
Other assets 1,337 1,402
-------- --------
Total $922,934 $915,821
======== ========
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing demand deposits $ 24,606 $ 18,867
NOW and money-market accounts 147,523 137,858
Savings accounts 25,886 25,403
Certificates 484,042 485,930
-------- --------
Total deposits 682,057 668,058
Advances from Federal Home Loan Bank 133,000 149,000
Other borrowed funds 17,287 14,303
Guaranteed preferred beneficial interest in junior subordinated debentures 5,000 5,000
Accrued expenses and other liabilities 11,117 8,398
-------- --------
Total liabilities 848,461 844,759
-------- --------
Stockholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding 0 0
Common stock, $.01 par value, 15,000,000 shares authorized, 6,393,103
in 2003 and 4,574,944 in 2002, shares issued 64 46
Additional paid-in-capital 31,794 31,638
Retained income 62,045 58,409
Accumulated other comprehensive income, net of taxes 484 636
Treasury stock, at cost (1,000,048 shares in 2003 and 991,669 shares in 2002 (19,914) (19,667)
--------- ---------
Total stockholders' equity 74,473 71,062
--------- ---------
Total $ 922,934 $ 915,821
========= =========
FFLC Bancorp, Inc.
Consolidated Statements of Income and Comprehensive Income
($ in thousands, except per share amounts)
For the three months ended June 30, For the six months ended June 30,
2003 2002 2003 2002
---- ---- ---- ----
Interest Income:
Loans $ 12,590 $ 13,151 $ 25,312 $ 25,993
Securities 537 779 1,125 1,540
Other interest-earning assets 202 184 469 424
---------- ---------- ---------- ----------
Total interest income 13,329 14,114 26,906 27,957
---------- ---------- ---------- ----------
Interest Expense:
Deposits 4,230 4,954 8,645 10,172
Borrowed funds 2,087 2,330 4,214 4,603
---------- ---------- ---------- ----------
Total interest expense 6,317 7,284 12,859 14,775
---------- ---------- ---------- ----------
Net interest income 7,012 6,830 14,047 13,182
Provision for loan losses 388 613 794 871
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 6,624 6,217 13,253 12,311
---------- ---------- ---------- ----------
Noninterest Income:
Deposit account fees 255 233 486 451
Other service charges and fees 702 433 1,286 914
Net gain on sales of loans held for sale 359 126 630 152
Other 116 83 313 251
---------- ---------- ---------- ----------
Total noninterest income 1,432 875 2,715 1,768
---------- ---------- ---------- ----------
Noninterest Expense:
Salaries and employee benefits 2,500 2,134 4,946 4,150
Occupancy expense 702 585 1,350 1,158
Data processing expense 280 240 553 492
Professional services 120 95 223 197
Advertising and promotion 116 123 253 234
Other 545 420 1,060 810
---------- ---------- ---------- ----------
Total noninterest expense 4,263 3,597 8,385 7,041
---------- ---------- ---------- ----------
Income before income taxes 3,793 3,495 7,583 7,038
Income taxes 1,427 1,282 2,863 2,617
---------- ---------- ---------- ----------
Net Income $ 2,366 $ 2,213 $ 4,720 $ 4,421
========== ========== ========== ==========
Basic income per share $ 0.44 $ 0.41 $ 0.88 $ 0.83
========== ========== ========== ==========
Diluted income per share $ 0.43 $ 0.40 $ 0.86 $ 0.81
========== ========== ========== ==========
Dividends per share $ 0.10 $ 0.09 $ 0.20 $ 0.19
========== ========== ========== ==========
Comprehensive income * $ 2,310 $ 2,474 $ 4,568 $ 4,459
========== ========== ========== ==========
Weighted average number of shares outstanding for Basic 5,385,407 5,356,839 5,380,428 5,354,199
========== ========== ========== ==========
Weighted average number of shares outstanding for Diluted 5,483,407 5,468,751 5,480,746 5,464,815
========== ========== ========== ==========
* Includes net income and change in unrealized gain (loss) on securities
available for sale and derivative instruments.
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
July 11, 2003 President & CEO
FFLC BANCORP, INC.(NASDAQ NMS: FFLC) Announces 30% Increase In Quarterly
Dividend
Leesburg, Florida. On July 9, 2003, FFLC's Board of Directors approved a 30%
increase in the quarterly dividend, from $.10 per share paid during the first
two quarters of 2003, to $.13 per share which is payable August 4, 2003 to
shareholders of record at the close of business on July 21, 2003. The increase
in the quarterly dividend is in response to the continued profitability of the
Company's operating subsidiary, First Federal Savings Bank of Lake County, as
well as recent reductions in federal taxes on corporate dividends. The $.13 per
share dividend represents a 29.5% dividend payout ratio on the June 30, 2003
quarterly basic income per share of $.44.
"The increase in the quarterly dividend reflects the Company's commitment to
providing an attractive total return to our shareholders", said Steve Kurtz,
FFLC President and Chief Executive Officer. "By paying a higher dividend, we
give shareholders the flexibility of either reinvesting in our Company through
our dividend reinvestment program, or using the additional dividends for
personal needs. We believe that most investors will continue to consider both
dividend yield and capital appreciation as important components of total return,
and we are committed to do all that we can to provide our shareholders with a
competitive return on their investment."
Since its initial public offering in 1994, FFLC has increased its dividend each
year. Prior to this increase, FFLC increased its dividend on average 17.5% over
each of the past nine years.
First Federal Savings Bank of Lake County conducts business in Lake, Sumter,
Citrus and Marion Counties, Florida, through a network of fourteen branch
offices. 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, press releases and
other supplemental information are available at the web site, in the "FFLC
Bancorp" section.