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 9, 2004 President & CEO
FFLC BANCORP, INC., Announces Record Net Income for the 2nd Quarter, Assets
Surpass $1 Billion 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 $2.4
million for the quarter ended June 30, 2004, compared to $2.4 million earned for
the quarter ended June 30, 2003 and $2.3 million for the quarter ended March 31,
2004. Total assets grew to $1.0 billion at June 30, 2004 from $947.9 million at
December 31, 2003. On a per share basis, basic income was $.45 per share for the
quarter ended June 30, 2004, compared to $.44 per share for the quarter ended
June 30, 2003, and $.42 per share for the quarter ended March 31, 2004. Net
income per share on a diluted basis was $.44 for the quarter ended June 30,
2004, compared to $.43 for the 2003 quarter, and $.41 per share for the quarter
ended March 31, 2004. The quarter ended June 30, 2004, was the most profitable
in the Company's history.
Net income for the six months ended June 30, 2004 was $4.7 million, compared to
$4.7 million for the first six months of 2003. On a per share basis, basic
income was $.87 per share for the six months ended June 30, 2004 compared to
$.88 per share in 2003. On a diluted basis, net income per share was $.85 for
the six months ended June 30, 2004, compared to $.86 for the 2003 period.
Net interest income after provision for loan losses increased 11% to $7.3
million for the quarter ended June 30, 2004 compared to $6.6 million for the
2003 quarter. That increase resulted primarily from a $647,000 decrease in
interest expense. The decrease in interest expense was due primarily to a 43
basis point decline in the annual cost of interest-bearing liabilities from
3.06% for the 2003 quarter to 2.63% for the 2004 quarter. That decline was
partially offset by a $38.4 million increase in average interest-bearing
liabilities outstanding during the 2004 quarter when compared to the 2003
quarter.
Noninterest expense increased $411,000 or 10% for the quarter ended June 30,
2004, compared to the 2003 period and increased $107,000 or 2.3% compared to the
quarter ended March 31, 2004. Those increases were primarily the result of the
growth of the Company and corresponding increases in salaries and employee
benefits and data processing expenses.
Stockholders' equity increased to $80.5 million at June 30, 2004, from $78.9
million at March 31, 2004. Book value per share increased to $14.92 at June 30,
2004, from $14.62 at March 31, 2004.
President Steve Kurtz noted that the Company reached three important milestones
during 2004. "We are celebrating the 70th anniversary of the founding of the
Bank, the 10th anniversary of becoming a NASDAQ-listed stock company, and we
reached total assets in excess of $1.0 billion. While each of those is a
remarkable milestone in itself, the combination is a tribute to the quality and
commitment of the First Federal team. Our directors, officers and staff are
dedicated to serving our communities, and we have been blessed with many loyal
and supportive customers."
NEW BRANCH OFFICE
The Bank opened the new Villages-466 branch in The Villages area of Sumter
County during the second quarter of 2004, bringing the number of full-service
banking facilities to sixteen, serving Lake, Sumter, Citrus and Marion Counties,
Florida.
DIVIDEND
On July 7, 2004, the Board of Directors declared a cash dividend of $.13 per
share on the common stock, payable August 2, 2004 to shareholders of record at
the close of business on July 19, 2004.
First Federal Savings Bank of Lake County conducts business in Lake, Sumter,
Citrus and Marion Counties, Florida, through a network of sixteen branch
offices. The stock of FFLC Bancorp, Inc. is quoted on the NASDAQ National Market
System
under the symbol "FFLC". First Federal's web site is located at
http://www.1stfederal.com. FFLC Bancorp, Inc.'s SEC filings, press releases and
other supplemental information are available at the web site, in the "FFLC
Bancorp" section.
SELECTED FINANCIAL DATA
($ in thousands, except per share amounts)
SELECTED BALANCE SHEET DATA At June 30 At December 31
2004 2003
Total assets $1,010,995 $ 947,914
Deposits $ 740,247 $ 705,589
Total gross loans receivable $ 877,240 $ 797,351
Allowance for loan losses $ 5,891 $ 5,490
Total stockholders' equity $ 80,489 $ 77,356
Shares outstanding 5,396,179 5,397,154
Market price per share $ 25.14 $ 28.75
Book value per share $ 14.92 $ 14.33
Nonperforming loans $ 5,651 $ 5,287
Nonperforming assets $ 6,802 $ 6,168
Equity as a percentage of total assets 7.96% 8.16%
Interest-earning assets to interest-bearing liabilities 1.07 1.07
ASSET QUALITY RATIOS At June 30 At December 31
2004 2003
Nonperforming assets to total assets 0.67% 0.65%
Nonperforming loans to total loans 0.64% 0.66%
Allowance for loan losses to nonperforming loans 104.25% 103.84%
Allowance for loan losses to nonperforming assets 86.61% 89.01%
Allowance for loan losses to total gross loans receivable 0.67% 0.69%
SELECTED INCOME AND OTHER DATA For the six months
ended June 30,
2004 2003
Net interest income before provision for loan losses $ 15,269 $ 14,047
Provision for loan losses $ 733 $ 794
Ratio of net charge-offs to average loans 0.08% 0.15%
Net income $ 4,678 $ 4,720
Basic net income per share $ 0.87 $ 0.88
Diluted net income per share $ 0.85 $ 0.86
Total gross loans originated by department: *
Residential $ 88,425 $ 96,591
Commercial $ 81,107 $ 52,936
Consumer $ 60,638 $ 47,247
---------- ----------
$ 230,170 $ 196,774
========== ==========
* - Includes undisbursed amounts of construction loans and lines of credit
PERFORMANCE RATIOS (1) For the six months
ended June 30,
2004 2003
Return on average assets 0.96% 1.01%
Return on average equity 11.80% 12.87%
Average equity to average assets 8.11% 7.86%
Noninterest expense to average assets 1.89% 1.80%
Net interest spread 3.18% 3.00%
Net interest margin 3.35% 3.19%
Operating efficiency ratio 52.84% 50.02%
(1) Ratios are annualized
FFLC Bancorp, Inc.
Consolidated Balance Sheets
($ in thousands, except per share amounts)
At June 30 At December 31
Assets 2004 2003
----------- -----------
Cash and due from banks $ 36,129 $ 35,072
Interest-earning deposits 17,160 27,088
----------- -----------
Cash and cash equivalents 53,289 62,160
Securities available for sale, at market 73,126 82,137
Loans, net of allowance for loan losses of $5,891 in 2004 and $5,490 in 2003 842,423 767,987
Accrued interest receivable 3,759 3,849
Foreclosed assets 1,151 881
Premises and equipment, net 22,879 21,448
Federal Home Loan Bank stock, at cost 7,650 6,900
Deferred income taxes 1,340 1,134
Other assets 5,378 1,418
----------- -----------
Total $ 1,010,995 $ 947,914
=========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing demand deposits $ 39,953 $ 31,481
NOW and money-market accounts 180,025 161,527
Savings accounts 28,344 26,636
Certificates 491,925 485,945
----------- -----------
Total deposits 740,247 705,589
Advances from Federal Home Loan Bank 153,000 133,000
Other borrowed funds 17,242 17,786
Junior subordinated debentures 5,155 5,155
Accrued expenses and other liabilities 14,862 9,028
----------- -----------
Total liabilities 930,506 870,558
----------- -----------
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, 6,398,202
in 2004 and 6,397,202 in 2003, shares issued 64 64
Additional paid-in-capital 32,160 31,837
Retained income 68,346 65,071
Accumulated other comprehensive income, net of taxes (118) 297
Treasury stock, at cost (1,002,023 shares in 2004 and 1,000,048 shares in 2003) (19,963) (19,913)
----------- -----------
Total stockholders' equity 80,489 77,356
----------- -----------
Total $ 1,010,995 $ 947,914
=========== ===========
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,
2004 2003 2004 2003
Interest Income:
Loans $ 12,704 $ 12,590 $ 25,196 $ 25,312
Securities 566 537 1,169 1,125
Other interest-earning assets 119 202 244 469
---------- ---------- ---------- ----------
Total interest income 13,389 13,329 26,609 26,906
---------- ---------- ---------- ----------
Interest Expense:
Deposits 3,697 4,230 7,433 8,645
Borrowed funds 1,973 2,087 3,907 4,214
---------- ---------- ---------- ----------
Total interest expense 5,670 6,317 11,340 12,859
---------- ---------- ---------- ----------
Net interest income 7,719 7,012 15,269 14,047
Provision for loan losses 394 388 733 794
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 7,325 6,624 14,536 13,253
---------- ---------- ---------- ----------
Noninterest Income:
Deposit account fees 356 255 615 486
Other service charges and fees 565 702 1,015 1,286
Net gain on sales of loans held for sale 130 359 280 630
Other 191 116 310 313
---------- ---------- ---------- ----------
Total noninterest income 1,242 1,432 2,220 2,715
---------- ---------- ---------- ----------
Noninterest Expense:
Salaries and employee benefits 2,648 2,500 5,308 4,946
Occupancy expense 718 702 1,420 1,350
Data processing expense 389 280 780 553
Professional services 138 120 270 223
Advertising and promotion 189 116 353 253
Other 592 545 1,110 1,060
---------- ---------- ---------- ----------
Total noninterest expense 4,674 4,263 9,241 8,385
---------- ---------- ---------- ----------
Income before income taxes 3,893 3,793 7,515 7,583
Income taxes 1,479 1,427 2,837 2,863
---------- ---------- ---------- ----------
Net Income $ 2,414 $ 2,366 $ 4,678 $ 4,720
========== ========== ========== ==========
Basic income per share $ 0.45 $ 0.44 $ 0.87 $ 0.88
========== ========== ========== ==========
Diluted income per share $ 0.44 $ 0.43 $ 0.85 $ 0.86
========== ========== ========== ==========
Dividends per share $ 0.13 $ 0.10 $ 0.26 $ 0.20
========== ========== ========== ==========
Comprehensive income * $ 1,985 $ 2,310 $ 4,263 $ 4,568
========== ========== ========== ==========
Weighted average number of shares outstanding for Basic 5,396,185 5,385,407 5,395,344 5,380,428
========== ========== ========== ==========
Weighted average number of shares outstanding for Diluted 5,482,649 5,483,407 5,484,720 5,480,746
========== ========== ========== ==========
* Includes net income and change in unrealized gain (loss) on securities
available for sale and derivative instruments.