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
October 10, 2003 President & CEO
FFLC BANCORP, INC., Reports 3rd Quarter Earnings 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 5% increase in net
income to $2.3 million for the quarter ended September 30, 2003, compared to the
$2.2 million earned for the comparable 2002 quarter. Basic income per share
increased to $.42 per share for the quarter ended September 30, 2003, compared
to $.41 per share for the 2002 quarter. Net income per share on a diluted basis
increased to $.42 for the quarter ended September 30, 2003, compared to $.40 for
the 2002 quarter. Total assets grew to $925.7 million at September 30, 2003 from
$921.1 million at September 30, 2002.
Net income for the nine months ended September 30, 2003 increased 6% to $7.0
million, compared to $6.6 million for the first nine months of 2002. Basic
income per share increased to $1.30 per share for the nine months ended
September 30, 2003, compared to $1.23 per share for the 2002 period. Net income
per share on a diluted basis increased to $1.28 for the nine months ended
September 30, 2003, compared to $1.21 for the 2002 period.
Net interest income after provision for loan losses increased 4% to $6.7 million
for the quarter ended September 30, 2003, compared to $6.4 million for the 2002
quarter primarily as a result of a $1.6 million decrease in interest expense.
The decrease in interest expense was due primarily to a 78 basis point decrease
in the cost of interest-bearing liabilities to 2.92% for the 2003 quarter from
3.70% for the 2002 quarter.
Nonperforming loans increased to $5.2 million at September 30, 2003, from $2.6
million at December 31, 2002. As reported in the prior quarter, a commercial
line of credit and a mortgage loan to an agricultural 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 $661,000 or 18% for the quarter ended September
30, 2003 and $2.0 million for the nine months then ended or 19% compared to the
2002 periods. Those increases were primarily the result of the growth of the
Company and corresponding increases in salaries, employee benefits and other
expense.
Stockholders' equity increased to $75.9 million at September 30, 2003, from
$74.5 million at June 30, 2003. Book value per share increased to $14.07 at
September 30, 2003, from $13.81 at June 30, 2003.
DIVIDEND
- --------
On October 9, 2003, the Board of Directors approved a cash dividend of $.13 per
share on the common stock, payable November 3, 2003 to shareholders of record at
the close of business on October 20, 2003. The $.13 per share cash dividend
represents an 44% increase over the $.09 per share paid for the third quarter of
2002.
First Federal Savings Bank of Lake County conducts business in Lake, Sumter,
Citrus and Marion Counties, Florida, through a network of fourteen branch
offices. The stock of FFLC Bancorp, Inc. is quoted on the NASDAQ National Market
System under the symbol "FFLC". First Federal's web site is
Page 1
located at http://www.1stfederal.com. FFLC Bancorp, Inc.'s SEC filings, press
releases and other supplemental information are available at the web site, in
the "FFLC Bancorp" section.
Page 2
SELECTED FINANCIAL DATA
($ in thousands, except per share amounts)
SELECTED BALANCE SHEET DATA At Sept. 30 At December 31
2003 2002
Total assets $ 925,684 $ 915,821
Deposits $ 685,499 $ 668,058
Total gross loans receivable $ 766,729 $ 756,555
Allowance for loan losses $ 5,411 $ 5,181
Total stockholders' equity $ 75,882 $ 71,062
Shares outstanding (2) 5,393,880 5,374,913
Market price per share $ 29.03 $ 19.71
Book value per share (2) $ 14.07 $ 13.22
Nonperforming loans $ 5,181 $ 2,592
Nonperforming assets $ 5,908 $ 3,218
Equity as a percentage of total assets 8.20% 7.76%
Interest-earning assets to interest-bearing liabilities 1.07 1.06
ASSET QUALITY RATIOS At Sept. 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 104.44% 199.88%
Allowance for loan losses to nonperforming assets 91.59% 161.00%
Allowance for loan losses to total gross loans receivable 0.71% 0.68%
SELECTED INCOME AND OTHER DATA For the nine months
ended September 30,
2003 2002
Net interest income before provision for loan losses $ 21,027 $ 19,985
Provision for loan losses $ 1,124 $ 1,270
Ratio of net charge-offs to average loans (1) 0.24% 0.22%
Net income $7,013 $ 6,598
Basic net income per share (2) $1.30 $ 1.23
Diluted net income per share (2) $1.28 $ 1.21
Total gross loans originated by department: *
Residential $ 154,174 $ 105,243
Commercial $ 75,174 $ 72,432
Consumer $ 71,628 $ 62,107
* - Includes undisbursed amounts of construction loans and lines of credit.
PERFORMANCE RATIOS (1) For the nine months
ended September 30,
2003 2002
Return on average assets 1.01% 1.01%
Return on average equity 12.63% 13.16%
Average equity to average assets 7.96% 7.70%
Noninterest expense to average assets 1.84% 1.66%
Net interest spread 3.01% 3.00%
Net interest margin 3.20% 3.23%
Operating efficiency ratio 50.86% 47.82%
(1) Ratios are annualized
(2) 2002 adjusted to reflect the three-for-two stock split declared in February
2003.
Page 3
FFLC Bancorp, Inc.
Consolidated Balance Sheets
($ in thousands, except per share amounts)
At Sept. 30 At December 31
Assets 2003 2002
---- ----
Cash and due from banks $ 33,590 $ 20,157
Interest-earning deposits 41,926 49,237
--------- ---------
Cash and cash equivalents 75,516 69,394
Securities available for sale, at market 78,601 77,324
Loans, net of allowance for loan losses of $5,411 in 2003 and $5,181 in 2002 737,430 735,338
Accrued interest receivable 3,454 4,181
Foreclosed assets 727 626
Premises and equipment, net 20,730 19,369
Federal Home Loan Bank stock, at cost 6,900 7,700
Deferred income taxes 962 487
Other assets 1,364 1,402
--------- ---------
Total $ 925,684 $ 915,821
========= =========
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing demand deposits $ 26,402 $ 18,867
NOW and money-market accounts 153,888 137,858
Savings accounts 26,023 25,403
Certificates 479,186 485,930
--------- ---------
Total deposits 685,499 668,058
Advances from Federal Home Loan Bank 133,000 149,000
Other borrowed funds 15,152 14,303
Guaranteed preferred beneficial interest in junior subordinated debenture 5,000 5,000
Accrued expenses and other liabilities 11,151 8,398
--------- ---------
Total liabilities 849,802 844,759
--------- ---------
Stockholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstandin0 0
Common stock, $.01 par value, 15,000,000 shares authorized, 6,393,928
in 2003 and 4,574,944 in 2002, shares issued 64 46
Additional paid-in-capital 31,811 31,638
Retained income 63,638 58,409
Accumulated other comprehensive income, net of taxes 283 636
Treasury stock, at cost (1,000,048 shares in 2003 and 991,669 shares in 2002 (19,914) (19,667)
--------- ---------
Total stockholders' equity 75,882 71,062
--------- ---------
Total $ 925,684 $ 915,821
========= =========
Page 4
FFLC Bancorp, Inc.
Consolidated Statements of Income and Comprehensive Income
($ in thousands, except per share amounts)
For the three months ended Sept.30, For the nine months ended Sept. 30,
2003 2002 2003 2002
--------------- ---------------- --------------- ---------------
Interest Income:
Loans $ 12,264 $ 13,300 $ 37,576 $ 39,293
Securities 482 782 1,607 2,322
Other interest-earning assets 160 298 629 722
---------- ---------- ---------- ----------
Total interest income 12,906 14,380 39,812 42,337
---------- ---------- ---------- ----------
Interest Expense:
Deposits 3,916 5,225 12,561 15,397
Borrowed funds 2,010 2,352 6,224 6,955
---------- ---------- ---------- ----------
Total interest expense 5,926 7,577 18,785 22,352
---------- ---------- ---------- ----------
Net interest income 6,980 6,803 21,027 19,985
Provision for loan losses 330 399 1,124 1,270
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 6,650 6,404 19,903 18,715
---------- ---------- ---------- ----------
Noninterest Income:
Deposit account fees 276 245 762 696
Other service charges and fees 670 430 1,956 1,344
Net gain on sales of loans held for sale 381 73 1,011 225
Other 138 114 451 365
---------- ---------- ---------- ----------
Total noninterest income 1,465 862 4,180 2,630
---------- ---------- ---------- ----------
Noninterest Expense:
Salaries and employee benefits 2,624 2,254 7,570 6,404
Occupancy expense 704 630 2,054 1,788
Data processing expense 333 238 886 730
Professional services 123 115 346 312
Advertising and promotion 111 105 364 339
Other 540 432 1,600 1,242
---------- ---------- ---------- ----------
Total noninterest expense 4,435 3,774 12,820 10,815
---------- ---------- ---------- ----------
Income before income taxes 3,680 3,492 11,263 10,530
Income taxes 1,387 1,315 4,250 3,932
---------- ---------- ---------- ----------
Net Income $ 2,293 $ 2,177 $ 7,013 $ 6,598
========== ========== ========== ==========
Basic income per share $ 0.42 $ 0.41 $ 1.30 $ 1.23
========== ========== ========== ==========
Diluted income per share $ 0.42 $ 0.40 $ 1.28 $ 1.21
========== ========== ========== ==========
Dividends per share $ 0.13 $ 0.09 $ 0.33 $ 0.28
========== ========== ========== ==========
Comprehensive income * $ 2,092 $ 2,278 $ 6,660 $ 6,737
========== ========== ========== ==========
Weighted average number of shares outstanding for Basic 5,389,768 5,365,227 5,383,140 5,357,775
========== ========== ========== ==========
Weighted average number of shares outstanding for Diluted 5,482,560 5,471,244 5,481,431 5,466,338
========== ========== ========== ==========
* Includes net income and change in unrealized gain (loss) on securities
available for sale and derivative instruments.
Page 5