Exhibit 99.1
First Financial Bancorp Reports 89% Increase in Quarterly Earnings and
78% Increase in Year to Date Earnings
LODI, Calif.--(BUSINESS WIRE)--July 20, 2004--First Financial
Bancorp (OTCBB:FLLC) the parent company (the Company) of Bank of Lodi,
N.A., today reported net income for the second quarter of 2004
totaling $678,000, an 89% increase from $359,000 in net income for the
same period in 2003. Diluted earnings per share for the second quarter
of 2004 totaled $0.35, an 84% increase from the $0.19 per diluted
share earnings for the second quarter in 2003. Net income for the
six-month period ended June 30, 2004 totaled $1,245,000, a 78%
increase over the $701,000 earned during the same period last year.
Year to date diluted earnings per share for the first six months of
2004 totaled $0.65, an increase of 76% over the prior year per diluted
share earnings, which totaled $0.37.
The Company has continued to experience double-digit growth in
each of its key strategic areas -- assets, loan and deposits. When
comparing June 30, 2004 to the same date last year, total assets
increased $43.6 million, or 15.5%, total loans increased $37.0 million
or 21.5% and total deposits increased $28.2 million or 11.4%. Return
on average equity for the three and six month periods ended June 30,
2004 totaled 13.07% and 12.12%, respectively, compared to 7.29% and
7.17% for the same periods in 2003. Return on average assets during
the same periods totaled 0.83% and 0.77% in 2004 compared to 0.53% and
0.52% in 2003, respectively.
"We are exceptionally pleased with the achievements of this
quarter and the past six months and are so proud of the hard work of
our fine employees who have made this possible. We have consistently
stated our belief that once we reached $300 million in assets our
results would demonstrate the value of our efforts and please our
investors. That was our plan and now, as a result of the continued
success of our strategic plan, we earned more money during the first
six months of 2004 than we earned during all of 2003," reported Leon
Zimmerman, President and Chief Executive Officer. "We now have great
momentum and we intend to rely on our plan to produce continued
success," Zimmerman continued. "In fact, when considering the effect
on net income for the expenses associated with the dissident directors
and the pending litigation, our Company would have earned more income
these past six months than it has earned during any year in the
history of our Company," reported Zimmerman. Zimmerman further
reported that, "the branch recently opened in downtown Sacramento is
now profitable, and is operating ahead of plan. It has been tremendous
to see the success we are experiencing in Sacramento, having achieved
profitability after only nine months of operation."
Average earning assets and deposits continued to grow in 2004,
increasing 31% and 24%, respectively, over 2003. Net interest income
totaled $3,348,000 in the second quarter of 2004, compared to
$2,872,000 for the same period last year, representing an increase of
$476,000. Compared to year-to-date 2003, net interest income in 2004
increased $1,027,000, or 19%, to $6,528,000 from $5,501,000. The
increase is reflective of a $1,080,000 increase in interest income,
which is primarily due to the increase in the loan and securities
portfolios. The Company's average cost of funding its earning assets
decreased from 1.23% during the second quarter of 2003 to 0.88% during
the second quarter of 2004, and decreased to 0.97% during the six
months ended June 30, 2004 from 1.24% for the same period of 2003.
During the first six months of 2004, the net interest margin decreased
to 4.59% compared to 5.11% for the same period of 2003, principally as
a result of the continued low interest rate environment.
The provision for loan losses totaled $165,000 and $235,000 for
the three and six month periods ended June 30, 2004. This compares to
a provision of $55,000 and $312,000 during the three and six month
periods ended June 30, 2003. Net charge-offs for the six-month period
ended June 30, 2004 totaled $607,000 as compared to $109,000 for the
same period in 2003. During the second quarter of 2004, the Company's
net charge-offs totaled $588,000, which were primarily related to
nonperforming agricultural loans of a single borrower. Total
nonperforming loans decreased $2,030,000 during the first six months
of 2004. At June 30, 2004, nonperforming loans totaled $1,850,000 or
0.9% of gross loans as compared to $3,880,000, or 2.1% at December 31,
2003 and $2,350,000, or 1.4% at June 30, 2003. The ratio of the
allowance for loan losses to gross loans was 1.4% and 1.9% at June 30,
2004 and 2003, respectively.
Noninterest income totaled $1,058,000 for the quarter ended June
30, 2004 representing a decrease of $34,000, or 3.1% when compared to
the prior year quarter. For the six months ended June 30, 2004,
noninterest income decreased $227,000, or 10% when compared to the
same period of 2003. The decreases in noninterest income are
principally related to a decline in the Company's residential mortgage
lending activity during 2004 when compared to 2003. During the three
and six month periods ended June 30, 2004, the gain on the sale of
loans decreased $117,000, or 36.6% and $279,000, or 44.6%,
respectively, as compared to 2003. Included in noninterest income at
June 30, 2004 is the gain on the sale of investment securities of
$65,000, which is a decrease of $23,000 when compared to 2003.
The Company experienced a decrease in noninterest expense totaling
$132,000, or 3.9% for the second quarter of 2004 compared to 2003. The
leading factor contributing to the decrease in noninterest expense was
a $126,000, or 6.7% decrease in salaries and employee benefits (which
includes commissions paid to residential mortgage lending officers).
For the first six months of 2004, noninterest expense increased
$90,000, or 1.4%, compared to the first six months of 2003. Included
in noninterest expense during 2004 are year-to-date costs totaling
$195,000 associated with responding to the actions initiated by three
dissident directors and $24,000 associated with pending litigation.
In April 2002, the Board of Directors authorized a stock
repurchase program approving the repurchase of up to $2 million of the
Company's stock. As of June 30, 2004 the Company had acquired a total
of 51,087 shares at a cost of approximately $712,000 pursuant to the
stock repurchase program. The repurchase program has been extended to
December 31, 2004.
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, at any one of its nine branches located in the
communities of Lodi, Woodbridge, Lockeford, Galt, Plymouth, San
Andreas, Elk Grove, Folsom and Sacramento or its loan production
office located in Folsom, Ca.
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.
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FIRST FINANCIAL BANCORP AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2004 2003 2004 2003
--------------------- ---------------------
Total interest income $ 3,994 $ 3,561 $ 7,917 $ 6,837
Total interest expense 646 689 1,389 1,336
---------- ---------- ---------- ----------
Net interest income 3,348 2,872 6,528 5,501
Provision for loan losses 165 55 235 312
Noninterest income 1,058 1,092 2,043 2,270
Noninterest expense 3,273 3,405 6,579 6,489
Provision for income taxes 290 145 512 269
---------- ---------- ---------- ----------
Net income $ 678 $ 359 $ 1,245 $ 701
========== ========== ========== ==========
Basic earnings per share:
Net income available
for common stock
shareholders $0.38 $0.20 $0.70 $0.39
Weighted average shares 1,785,657 1,792,859 1,782,254 1,792,923
Diluted earnings per share:
Net income available
for common stock
shareholders $0.35 $0.19 $0.65 $0.37
Weighted average shares 1,925,060 1,897,839 1,917,872 1,880,417
Selected ratios:
Annualized return on
average total equity 13.07% 7.29% 12.12% 7.17%
Annualized return on
average total assets 0.83% 0.53% 0.77% 0.52%
Average equity to
average assets 6.37% 7.29% 6.35% 6.56%
Net interest margin 4.61% 5.11% 4.59% 5.11%
Selected Balance Sheet Data
(in thousands)
(Unaudited)
--------------------------------------
June 30, December 31, June 30,
2004 2003 2003
------------ ------------- -----------
Total assets $ 324,138 321,260 280,512
Securities, available for sale 73,215 90,270 47,971
Total loans, gross 209,220 182,565 172,218
Allowance for loan losses 2,890 3,262 3,260
Total deposits 274,747 278,155 246,539
Other borrowings 24,433 19,255 10,339
Total stockholders' equity 20,524 19,967 19,817
Nonperforming loans $ 1,850 3,880 2,350
CONTACT: First Financial Bancorp
Leon Zimmerman, 209-367-2000