Exhibit 99.1
First Financial Bancorp
P R E S S R E L E A S E
For Immediate Release April 23, 2003
Contact Person:
Leon Zimmerman
President and CEO
(209) 367-2000
First Financial Bancorp Reports
Continued Double Digit Growth and First Quarter 2003 Earnings
Lodi, Calif. (Business Wire) - April 23, 2003 - First Financial
Bancorp (OTCBB: FLLC) the parent company of Bank of Lodi, N.A., today
reported continued success with its growth strategy during the first
quarter of 2003. The Company continued to achieve double digit growth in
each of its key strategic areas - Total Assets, Loans and Demand Deposits.
At March 31, 2003, total assets increased $28 million, or 12%, to total
$260 million, gross loans increased $21 million, or 14%, to total $170
million and total demand deposits increased $21 million, or 21% to total
$122 million when compared to March 31, 2002. In addition, total deposits
increased $20 million or 10% to total $226 million at March 31, 2003 as
compared to March 31, 2002. For the first quarter of 2003, net income
totaled $342,000, or $0.20 per diluted share representing an increase of
22% over prior year's first quarter income of $281,000.
"Our focus continues to be on Growth and Expansion," reported Leon
Zimmerman, President and Chief Executive Officer. "It is exciting to see
all we have accomplished these past few years. I am proud of our entire
team for their hard work and dedication. As a result of their efforts, we
have continued to achieve double digit growth in each of our key strategic
areas."
Net interest income totaled $2,629,000 during the first quarter of
2003, compared to $2,149,000 for the same period last year, representing an
increase of $480,000, or 22%. The increase is attributable primarily to an
increase in interest and fees on loans totaling $217,000 combined with a
$353,000 reduction in interest expense.
The provision for loan losses totaled $257,000 for the first
quarter of 2003. This compares to a provision of $195,000 for the first
quarter of 2002. The ratio of the allowance for loan losses to gross loans
was 1.93% at March 31, 2003 and 2002. The ratio at December 31, 2002 was
1.85%. At March 31, 2003 nonperforming loans totaled $2,709,000, or 1.6% of
gross loans as compared to $3,848,000, or 2.6% at March 31, 2002 and
$2,409,000, or 1.5% at December 31, 2002.
Noninterest income for the first quarter of 2003 decreased
$47,000, or 3.8%, over the same period last year. During the first quarter
of 2002, the Company realized gains on the sale of investment securities
totaling $262,000 versus gains on the sale of investment securities
realized during the first quarter of 2003 totaling $88,000. The Company
realized an increase in service charge revenue in addition to increased
revenue from its mortgage and SBA operations during the first quarter of
2003 as compared to the first quarter of 2002.
Noninterest expense for the first quarter of 2003 increased
$241,000, or 8.5%, over the same period last year. The increase in
non-interest expense results primarily from increases in salary and
benefits, occupancy expenses and other general business expenses.
The provision for income taxes for the first quarter of 2003
totaled $124,000 and represents an increase of $69,000 over the same period
last year. The increase is primarily attributable to the increase in pretax
income.
First Financial Bancorp is the parent of Bank of Lodi, N.A., a
locally owned community bank formed in 1982. Bank of Lodi, N.A. offers
financial services via the web at www.bankoflodi.com, by phone at
888-265-8577 or at any one of its eight branches located in the communities
of Lodi, Woodbridge, Lockeford, Galt, Plymouth, San Andreas, Elk Grove, and
Folsom. Bank of Lodi also offers investment services through its
affiliation with Investment Centers of America.
This press release contains forward looking statements within the
meaning of "safe harbor" provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), and as such, may involve risks and
uncertainties. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies, and expectations, are
generally identifiable by the use of words such as "believe", "expect",
"intend", "anticipate", "estimate", "project", or similar expressions.
These forward-looking statements relate to, among other things,
expectations of the business environment in which the Company operates,
projections of future performance, potential future performance, potential
future credit experience, perceived opportunities in the market, and
statements regarding the Company's mission and vision. The Company's actual
results, performance, and achievements may differ materially from the
results, performance, and achievements expressed or implied in such
forward-looking statements due to a wide range of factors which are set
forth in our annual report on Form 10-K on file with the SEC.
(Tables to Follow)
FIRST FINANCIAL BANCORP AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31,
----------------------------
2003 2002
----------------------------
Total interest income $ 3,276 3,149
Total interest expense 647 1,000
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Net interest income 2,629 2,149
Provision for loan losses 257 195
Noninterest income 1,178 1,225
Noninterest expense 3,084 2,843
Provision for income taxes 124 55
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Net income $ 342 281
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Basic earnings per share:
Net income available for common stock shareholders $0.21 0.17
Weighted average shares 1,623,357 1,623,281
Diluted earnings per share:
Net income available for common stock shareholders $0.20 0.17
Weighted average shares 1,696,035 1,669,979
Selected ratios:
Annualized return on average total equity 7.05% 6.27%
Annualized return on average total assets 0.53% 0.51%
Selected Balance Sheet Data
(in thousands)
(Unaudited)
-------------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
-------------- ----------------- ----------------
Total assets $259,522 255,246 231,143
Securities, available for sale 28,680 33,125 32,657
Total loans, gross 170,061 165,519 149,547
Allowance for loan losses 3,278 3,057 2,866
Total deposits 226,238 210,679 206,046
Trust preferred debt 5,000 5,000 5,000
Total shareholders equity 19,552 19,270 17,970
Nonperforming loans 2,709 2,409 3,848