FFLC Fflc Bancorp - Common Stock (MM)

FFLC Bancorp, Inc. Announces Increased Net Income for the 1st Quarter and Declares Quarterly Dividend LEESBURG, Fla., April 15 /PRNewswire-FirstCall/ -- FFLC Bancorp, Inc. (NASDAQ:FFLC), the holding company for First Federal Savings Bank of Lake County, reported a 29% increase in net income from $2.3 million earned for the quarter ended March 31, 2004 to $2.9 million for the quarter ended March 31, 2005. For the quarter ended March 31, 2005, basic income per share also increased 29% to $.54 per share, compared to $.42 per share for the quarter ended March 31, 2004. Net income per share on a diluted basis increased 29% to $.53 per share for the quarter ended March 31, 2005 compared to $.41 for the quarter ended March 31, 2004. Total assets grew 13% from $982.0 million at March 31, 2004 to $1.1 billion at March 31, 2005. For the quarter ended March 31, 2005, net interest income after provision for loan losses increased 20% to $8.6 million compared to $7.2 million for the quarter ended March 31, 2004. That increase resulted primarily from a $1.9 million increase in interest income, which, in turn, was primarily due to a 14% or $121.1 million increase in average interest earning assets outstanding during the 2005 quarter compared to the 2004 quarter. In addition, the yield on interest earning assets increased from 5.89% for the 2004 quarter to 5.93% for the quarter ended March 31, 2005. Noninterest expense increased $424,000 or 9% for the quarter ended March 31, 2005, compared to the 2004 period. That increase was primarily the result of the growth of the Company and corresponding increases in salaries and employee benefits expenses. Stockholders' equity increased to $86.5 million at March 31, 2005 from $84.5 million at December 31, 2004. Book value per share increased from $15.62 at December 31, 2004 to $15.98 at March 31, 2005. DIVIDEND On April 14, 2005, the Board of Directors declared a cash dividend of $.14 per share on the common stock, payable May 9, 2005 to shareholders of record at the close of business on April 25, 2005. The $.14 per share cash dividend represents an 8% increase over the $.13 per share paid in May 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. PENDING MERGER On January 14, 2005, the Company entered into a definitive agreement for the Company and First Federal Savings Bank of Lake County to be acquired by Colonial BancGroup, Inc., a bank holding company incorporated in Delaware with a subsidiary bank, Colonial Bank, N.A., operating in Alabama, Florida, Georgia, Nevada and Texas. Under the terms of the agreement, shareholders of the Company will elect to receive either 2.0 shares of Colonial stock or $42.00 in cash for each share of the Company stock they own. The cash consideration will be capped at 35% of the transaction and an over-election of cash will result in a pro rata distribution of stock. Completion of the transaction is subject to approval by the shareholders of the Company at the Annual Meeting of Shareholders to be held on May 12, 2005, and various regulatory agencies. SELECTED FINANCIAL DATA ($ in thousands, except per share amounts) SELECTED BALANCE SHEET DATA At March 31 At December 31 2005 2004 Total assets $1,109,943 $1,065,287 Deposits $834,628 $795,160 Total gross loans receivable $962,123 $936,822 Allowance for loan losses $6,780 $6,492 Total stockholders' equity $86,494 $84,492 Shares outstanding 5,412,202 5,408,287 Market price per share $41.42 $35.10 Book value per share $15.98 $15.62 Nonperforming loans $2,762 $2,835 Nonperforming assets $3,032 $3,058 Equity as a percentage of total assets 7.79% 7.93% Interest-earning assets to interest- bearing liabilities 1.08 1.08 ASSET QUALITY RATIOS At March 31 At December 31 2005 2004 Nonperforming assets to total assets 0.27% 0.29% Nonperforming loans to total loans 0.29% 0.30% Allowance for loan losses to nonperforming loans 245.47% 228.99% Allowance for loan losses to nonperforming assets 223.61% 212.30% Allowance for loan losses to total gross loans receivable 0.70% 0.69% SELECTED INCOME AND OTHER DATA For the three months ended March 31, 2005 2004 Net interest income before provision for loan losses $8,977 $7,550 Provision for loan losses $349 $339 Ratio of net charge-offs to average loans 0.03% 0.09% Net income $2,926 $2,264 Basic net income per share $0.54 $0.42 Diluted net income per share $0.53 $0.41 Total gross loans originated by department: * Residential $35,223 $37,413 Commercial $36,648 $37,966 Consumer $37,208 $26,631 $109,079 $102,010 * Includes undisbursed amounts of construction loans and lines of credit. PERFORMANCE RATIOS (1) For the three months ended March 31, 2005 2004 Return on average assets 1.08% 0.94% Return on average equity 13.53% 11.53% Average equity to average assets 7.99% 8.17% Noninterest expense to average assets 1.84% 1.90% Net interest spread 3.32% 3.19% Net interest margin 3.52% 3.36% Operating efficiency ratio 49.72% 53.55% (1) Ratios are annualized FFLC Bancorp, Inc. Consolidated Balance Sheets ($ in thousands, except per share amounts) At March 31 At December 31 Assets 2005 2004 Cash and due from banks $42,758 $26,348 Interest-earning deposits 54,043 38,258 Cash and cash equivalents 96,801 64,606 Securities available for sale, at market 57,111 74,513 Loans, net of allowance for loan losses of $6,780 in 2005 and $6,492 in 2004 912,604 883,980 Accrued interest receivable 4,118 3,893 Premises and equipment, net 22,247 22,522 Foreclosed assets 270 223 Federal Home Loan Bank stock, at cost 9,016 8,782 Deferred income taxes 1,671 1,496 Other assets 6,105 5,272 Total $1,109,943 $1,065,287 Liabilities and Stockholders' Equity Liabilities: Non-interest bearing demand deposits $51,774 $41,796 NOW and money-market accounts 210,958 187,487 Savings accounts 30,182 29,891 Certificates 541,715 535,986 Total deposits 834,629 795,160 Advances from Federal Home Loan Bank 153,000 153,000 Other borrowed funds 20,092 17,031 Junior subordinated debentures 5,155 5,155 Accrued expenses and other liabilities 10,573 10,449 Total liabilities 1,023,449 980,795 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, 6,415,575 in 2005 and 6,411,660 in 2004, shares issued 64 64 Additional paid-in-capital 32,409 32,353 Retained income 74,449 72,281 Accumulated other comprehensive income (loss) (429) (207) Treasury stock, at cost (1,003,373 shares in 2005 and 1,003,373 shares in 2004) (19,999) (19,999) Total stockholders' equity 86,494 84,492 Total $1,109,943 $1,065,287 FFLC Bancorp, Inc. Consolidated Statements of Income and Comprehensive Income ($ in thousands, except per share amounts) For the three months ended Mar. 31, 2005 2004 Interest Income: Loans $14,226 $12,492 Securities 534 603 Other 341 125 Total interest income 15,101 13,220 Interest Expense: Deposits 4,210 3,736 Borrowed funds 1,914 1,934 Total interest expense 6,124 5,670 Net interest income 8,977 7,550 Provision for loan losses 349 339 Net interest income after provision for loan losses 8,628 7,211 Noninterest Income: Deposit account fees 348 259 Other service charges and fees 456 450 Net gain on sales of loans held for sale 79 150 Net gain on sales of securities available for sale 56 0 Other 123 119 Total noninterest income 1,062 978 Noninterest Expense: Salaries and employee benefits 3,003 2,660 Occupancy expense 801 702 Data processing expense 371 391 Professional services 191 132 Advertising and promotion 142 164 Other 483 518 Total noninterest expense 4,991 4,567 Income before income taxes 4,699 3,622 Income taxes 1,773 1,358 Net Income $2,926 $2,264 Basic income per share $0.54 $0.42 Weighted average number of shares outstanding for Basic 5,410,973 5,394,301 Diluted income per share $0.53 $0.41 Weighted average number of shares outstanding for Diluted 5,525,928 5,488,954 Dividends per share $0.14 $0.13 Comprehensive income * $2,704 $2,278 * Includes net income and change in unrealized gain (loss) on securities available for sale and derivative instruments. DATASOURCE: FFLC Bancorp, Inc. CONTACT: Stephen T. Kurtz, President and CEO, FFLC Bancorp, Inc., +1-352-787-3311, or fax, +1-352-787-7206 Web site: http://www.1stfederal.com/

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