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 9, 2004 President & CEO
FFLC BANCORP, INC., Announces Net 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 net income of $2.3
million for the quarter ended March 31, 2004, compared to the $2.4 million
earned for the quarter ended March 31, 2003 and $2.1 million for the quarter
ended December 31, 2003. Total assets grew to $982.0 million at March 31, 2004
from $947.9 million at December 31, 2003.
On a per share basis, basic income was $.42 per share for the quarter ended
March 31, 2004, compared to $.44 per share for the quarter ended March 31, 2003,
and $.40 per share for the quarter ended December 31, 2003. Net income per share
on a diluted basis was $.41 for the quarter ended March 31, 2004, compared to
$.43 for the 2003 quarter, and $.39 per share for the quarter ended December 31,
2003.
Net interest income after provision for loan losses increased 9% to $7.2 million
for the quarter ended March 31, 2004 compared to $6.6 million for the 2003
quarter. That increase resulted primarily from an $872,000 decrease in interest
expense. The decrease in interest expense was due primarily to a 46 basis point
decline in the annual cost of liabilities from 3.16% for the 2003 quarter to
2.70% for the 2004 quarter. That decline was partially offset by a $12.9 million
increase in average interest-bearing liabilities outstanding during the 2004
quarter when compared to the 2003 quarter.
Noninterest expense increased $445,000 or 11% for the quarter ended March 31,
2004, compared to the 2003 period. Those increases were primarily the result of
the growth of the Company and corresponding increases in salaries, employee
benefits and data processing expenses.
Stockholders' equity increased to $78.9 million at March 31, 2004, from $77.4
million at December 31, 2003. Book value per share increased to $14.62 at March
31, 2004, from $14.33 at December 31, 2003.
DIVIDEND
- --------
On April 8, 2004, the Board of Directors declared a cash dividend of $.13 per
share on the common stock, payable May 3, 2004 to shareholders of record at the
close of business on April 19, 2004. The $.13 per share cash dividend represents
a 30% increase over the $.10 per share paid in May 2003.
First Federal Savings Bank of Lake County conducts business in Lake, Sumter,
Citrus and Marion Counties, Florida, through a network of fifteen branch
offices. The stock of FFLC Bancorp, Inc. is quoted on the NASDAQ National Market
System under the symbol "FFLC". First Federal's web site is located at
http://www.1stfederal.com. FFLC Bancorp, Inc.'s SEC filings, press releases and
other supplemental information are available at the web site, in the "FFLC
Bancorp" section.
SELECTED FINANCIAL DATA
($ in thousands, except per share amounts)
SELECTED BALANCE SHEET DATA At March 31 At December 31
2004 2003
Total assets $ 982,038 $ 947,914
Deposits $ 736,534 $ 705,589
Total gross loans receivable $ 824,206 $ 797,351
Allowance for loan losses $ 5,646 $ 5,490
Total stockholders' equity $ 78,934 $ 77,356
Shares outstanding 5,397,554 5,397,154
Market price per share $ 26.70 $ 28.75
Book value per share $ 14.62 $ 14.33
Nonperforming loans $ 4,553 $ 5,287
Nonperforming assets $ 5,601 $ 6,168
Equity as a percentage of total assets 8.04% 8.16%
Interest-earning assets to interest-bearing liabilities 1.07 1.07
ASSET QUALITY RATIOS At March 31 At December 31
2004 2003
Nonperforming assets to total assets 0.57% 0.65%
Nonperforming loans to total loans 0.55% 0.66%
Allowance for loan losses to nonperforming loans 124.01% 103.84%
Allowance for loan losses to nonperforming assets 100.80% 89.01%
Allowance for loan losses to total gross loans receivable 0.69% 0.69%
SELECTED INCOME AND OTHER DATA For the three months
ended March 31,
2004 2003
Net interest income before provision for loan losses $ 7,550 $ 7,035
Provision for loan losses $ 339 $ 406
Ratio of net charge-offs to average loans 0.10% 0.15%
Net income $ 2,264 $ 2,354
Basic net income per share $ 0.42 $ 0.44
Diluted net income per share $ 0.41 $ 0.43
Total gross loans originated by department: *
Residential $37,413 $ 45,013
Commercial $37,966 $ 25,898
Consumer $26,631 $ 20,973
* - Includes undisbursed amounts of construction loans and lines of credit
PERFORMANCE RATIOS (1) For the three months
ended March 31,
2004 2003
Return on average assets 0.94% 1.01%
Return on average equity 11.53% 13.01%
Average equity to average assets 8.17% 7.77%
Noninterest expense to average assets 1.90% 1.77%
Net interest spread 3.19% 3.01%
Net interest margin 3.36% 3.20%
Operating efficiency ratio 53.55% 49.56%
(1) Ratios are annualized
FFLC Bancorp, Inc.
Consolidated Balance Sheets
($ in thousands, except per share amounts)
At March 31 At December 31
2004 2003
---- ----
Assets
Cash and due from banks $ 42,676 $ 35,072
Interest-earning deposits 28,913 27,088
--------- ---------
Cash and cash equivalents 71,589 62,160
Securities available for sale, at market 75,165 82,137
Loans, net of allowance for loan losses of $5,646 in 2004 and $5,490 in 2003 795,433 767,987
Accrued interest receivable 3,598 3,849
Foreclosed assets 1,048 881
Premises and equipment, net 21,933 21,448
Federal Home Loan Bank stock, at cost 6,650 6,900
Deferred income taxes 1,008 1,134
Other assets 5,614 1,418
--------- ---------
Total $ 982,038 $ 947,914
========= =========
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing demand deposits $ 36,412 $ 31,481
NOW and money-market accounts 178,164 161,527
Savings accounts 27,215 26,636
Certificates 494,743 485,945
--------- ---------
Total deposits 736,534 705,589
Advances from Federal Home Loan Bank 133,000 133,000
Other borrowed funds 17,978 17,786
Junior subordinated debentures 5,155 5,155
Accrued expenses and other liabilities 10,437 9,028
--------- ---------
Total liabilities 903,104 870,558
--------- ---------
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, 6,397,702
in 2004 and 6,397,202 in 2003, shares issued 64 64
Additional paid-in-capital 31,841 31,837
Retained income 66,634 65,071
Accumulated other comprehensive income, net of taxes 311 297
Treasury stock, at cost (1,000,148 shares in 2004 and 1,000,048 shares in 2003) (19,916) (19,913)
--------- ---------
Total stockholders' equity 78,934 77,356
--------- ---------
Total $ 982,038 $ 947,914
========= =========
FFLC Bancorp, Inc.
Consolidated Statements of Income and Comprehensive Income
($ in thousands, except per share amounts)
For the three months ended Mar. 31,
2004 2003
---------- ----------
Interest Income:
Loans $ 12,492 $ 12,722
Securities 603 588
Other interest-earning assets 125 267
---------- ----------
Total interest income 13,220 13,577
---------- ----------
Interest Expense:
Deposits 3,736 4,415
Borrowed funds 1,934 2,127
---------- ----------
Total interest expense 5,670 6,542
---------- ----------
Net interest income 7,550 7,035
Provision for loan losses 339 406
---------- ----------
Net interest income after
provision for loan losses 7,211 6,629
---------- ----------
Noninterest Income:
Deposit account fees 259 231
Other service charges and fees 450 584
Net gain on sales of loans held for sale 150 271
Other 119 197
---------- ----------
Total noninterest income 978 1,283
---------- ----------
Noninterest Expense:
Salaries and employee benefits 2,660 2,446
Occupancy expense 702 648
Data processing expense 391 273
Professional services 132 103
Advertising and promotion 164 137
Other 518 515
---------- ----------
Total noninterest expense 4,567 4,122
---------- ----------
Income before income taxes 3,622 3,790
Income taxes 1,358 1,436
---------- ----------
Net Income $ 2,264 $ 2,354
========== ==========
Basic income per share $ 0.42 $ 0.44
========== ==========
Diluted income per share $ 0.41 $ 0.43
========== ==========
Dividends per share $ 0.13 $ 0.10
========== ==========
Comprehensive income * $ 2,278 $ 2,258
========== ==========
Weighted average number of shares outstanding for Basic 5,394,301 5,373,607
========== ==========
Weighted average number of shares outstanding for Diluted 5,488,954 5,479,331
========== ==========
* Includes net income and change in unrealized gain (loss) on securities
available for sale and derivative instruments.