FFLC Bancorp, Inc., Announces Increased Net Income for the 4th Quarter and Fiscal Year-End; Increased Dividend; And Date of Annu

FFLC Bancorp, Inc., Announces Increased Net Income for the 4th
Quarter and Fiscal Year-End; Increased Dividend; And Date of Annual Meeting



LEESBURG, Fla., Jan. 14  /PRNewswire-FirstCall/ -- FFLC Bancorp, Inc.
(NASDAQ:FFLC), the holding company for First Federal Savings Bank of Lake
County, reported a 24% increase in net income from $2.1 million earned for the
quarter ended December 31, 2003 to $2.7 million for the quarter ended December
31, 2004.

For the quarter ended December 31, 2004, basic income per share increased 23%
to $.49 per share, compared to $.40 per share for the quarter ended December
31, 2003.  Net income per share on a diluted basis increased 26% to $.49 per
share for the quarter ended December 31, 2004 compared to $.39 for the quarter
ended December 31, 2003.  Total assets grew 12% from $947.9 million at December
31, 2003 to $1.07 billion at December 31, 2004.

For the year ended December 31, 2004, net income increased 10% to $10.0
million, compared to $9.1 million for the year ended December 31, 2003. Basic
income per share increased 9% to $1.86 per share for the year ended December
31, 2004 compared to $1.70 per share for 2003.  Net income per share on a
diluted basis also increased 10% to $1.83 for the year ended December 31, 2004,
compared to $1.67 for 2003.

Net interest income after provision for loan losses increased 14% to $30.4
million for the year ended December 31, 2004 compared to $26.7 million for year
2003, primarily as a result of a $2.6 million increase in interest income and a
$1.2 million decrease in interest expense.  The increase in interest income was
primarily due to an 8% or $68.4 million increase in average interest earning
assets outstanding during 2004 as compared to 2003. That increase was partially
offset by a decline in the yield on interest earning assets from 6.02% for 2003
to 5.86% for 2004.  The decrease in interest expense was due primarily to a 33
basis point decrease in the cost of interest-bearing liabilities from 2.99% for
2003 to 2.66% for 2004.

For the quarter ended December 31, 2004, net interest income after provision
for loan losses increased 18% to $8.1 million compared to $6.8 million for the
quarter ended December 31, 2003.  That increase resulted primarily from a $1.7
million increase in interest income which, in turn, was primarily due to a 14%
or $121.0 million increase in average interest earning assets outstanding
during the 2004 quarter compared to the 2003 quarter.  That increase was
partially offset by a decline in the yield on interest earning assets from
5.91% for the 2003 quarter to 5.89% for the 2004 quarter.

For the year ended December 31, 2004, noninterest expense increased $1.5
million or 8% compared to the year ended December 31, 2003.  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 from $77.4 million at December 31, 2003 to $84.5
million at December 31, 2004.  Book value per share increased from $14.33 at
December 31, 2003 to $15.62 at December 31, 2004.

DIVIDEND

On January 13, 2005, the Board of Directors declared a cash dividend of $.14
per share on the common stock.  This dividend is payable February 7, 2005 to
shareholders of record at the close of business on January 24, 2005.  The $.14
per share cash dividend represents an 8% increase over the $.13 per share paid
for the previous six quarters.

DATE OF ANNUAL MEETING

The Company also announced that the Annual Meeting of Shareholders would be
held on Thursday, May 12, 2005 at the Leesburg Community Building at 109 East
Dixie Avenue, Leesburg, Florida, at 2:00 p.m.

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 December 31   At December 31
                                                     2004             2003

  Total assets                                 $1,065,287         $947,914
  Deposits                                       $795,160         $705,589
  Total gross loans receivable                   $936,822         $797,351
  Allowance for loan losses                        $6,492           $5,490
  Total stockholders' equity                      $84,492          $77,356
  Shares outstanding                            5,408,287        5,397,154
  Market price per share                           $35.10           $28.75
  Book value per share                             $15.62           $14.33
  Nonperforming loans                              $2,835           $5,287
  Nonperforming assets                             $3,058           $6,168
  Equity as a percentage of total assets            7.93%            8.16%
  Interest-earning assets to
   interest-bearing liabilities                      1.08             1.07


  ASSET QUALITY RATIOS                     At December 31   At December 31
                                                     2004             2003

  Nonperforming assets to total assets              0.29%            0.65%
  Nonperforming loans to total loans                0.30%            0.66%
  Allowance for loan losses to
   nonperforming loans                            228.99%          103.84%
  Allowance for loan losses to
   nonperforming assets                           212.30%           89.01%
  Allowance for loan losses to total
   gross loans receivable                           0.69%            0.69%


  SELECTED INCOME AND OTHER DATA                     For the twelve months
                                                       ended December  31,
                                                     2004             2003

  Net interest income before provision
   for loan losses                                $32,038          $28,233
  Provision for loan losses                        $1,675           $1,514
  Ratio of net charge-offs to average
   loans                                            0.08%            0.16%
  Net income                                      $10,019           $9,148
  Basic net income per share                        $1.86            $1.70
  Diluted net income per share                      $1.83            $1.67
  Total gross loans originated by department: *
       Residential                               $184,885         $191,048
       Commercial                                $139,653         $118,633
       Consumer                                  $131,290          $96,829
                                                 $455,828         $406,510

  * - Includes undisbursed amounts of construction loans and lines of
  credit.

  PERFORMANCE RATIOS                                 For the twelve months
                                                       ended December  31,
                                                     2004             2003

  Return on average assets                          0.99%            0.98%
  Return on average equity                         12.34%           12.23%
  Average equity to average assets                  8.03%            8.02%
  Noninterest expense to average assets             1.86%            1.86%
  Net interest spread                               3.20%            3.03%
  Net interest margin                               3.39%            3.22%
  Operating efficiency ratio                       51.23%           51.66%

                             FFLC Bancorp, Inc.
                         Consolidated Balance Sheets

                 ($ in thousands, except per share amounts)

                                           At December 31,   At December 31,
  Assets                                             2004             2003

  Cash and due from banks                         $26,348          $35,072
  Interest-earning deposits                        38,258           27,088
           Cash and cash equivalents               64,606           62,160

  Securities available for sale,
   at market                                       74,513           82,137
  Loans, net of allowance for loan
   losses of $6,492 in 2004 and $5,490
   in 2003                                        883,980          767,987
  Accrued interest receivable                       3,893            3,849
  Premises and equipment, net                      22,522           21,448
  Foreclosed assets                                   223              881
  Federal Home Loan Bank stock, at cost             8,782            6,900
  Deferred income taxes                             1,496            1,134
  Other assets                                      5,272            1,418

        Total                                  $1,065,287         $947,914

  Liabilities and Stockholders' Equity

  Liabilities:
       Non-interest bearing demand
        deposits                                  $41,796          $31,481
       NOW and money-market accounts              187,487          161,527
       Savings accounts                            29,891           26,636
       Certificates                               535,986          485,945

        Total deposits                            795,160          705,589

       Advances from Federal Home Loan
        Bank                                      153,000          133,000
       Other borrowed funds                        17,031           17,786
       Junior subordinated debentures               5,155            5,155
       Accrued expenses and other
        liabilities                                10,449            9,028

        Total liabilities                         980,795          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,
        6,411,660 in 2004 and 6,397,202
        in 2003, shares issued                         64               64
       Additional paid-in-capital                  32,353           31,837
       Retained income                             72,281           65,071
       Accumulated other comprehensive
        income (loss)                                (207)             297
       Treasury stock, at cost
        (1,003,373 shares in 2004 and
        1,000,048 shares in 2003)                 (19,999)         (19,913)
        Total stockholders' equity                 84,492           77,356

        Total                                  $1,065,287         $947,914



                              FFLC Bancorp, Inc.
          Consolidated Statements of Income and Comprehensive Income

                  ($ in thousands, except per share amounts)

                                         For the               For the
                                       three months         twelve months
                                      ended Dec. 31,        ended Dec. 31,
                                     2004       2003       2004       2003
  Interest Income:
    Loans                          $13,884    $12,268    $52,381    $49,844
    Securities                         577        611      2,302      2,218
    Other                              308        149        722        778
      Total interest income         14,769     13,028     55,405     52,840

  Interest Expense:
    Deposits                         4,051      3,814     15,226     16,375
    Borrowed funds                   2,102      2,008      8,141      8,232
      Total interest expense         6,153      5,822     23,367     24,607


  Net interest income                8,616      7,206     32,038     28,233

  Provision for loan losses            553        390      1,675      1,514

  Net interest income after
   provision for loan losses         8,063      6,816     30,363     26,719

  Noninterest Income:
    Deposit account fees               381        274      1,391      1,036
    Other service charges and
     fees                              497        419      1,991      2,375
    Net gain on sales of loans
     held for sale                     104        167        495      1,178
    Other                              198        324        800        775
      Total noninterest income       1,180      1,184      4,677      5,364

  Noninterest Expense:
    Salaries and employee
     benefits                        2,947      2,626     10,978     10,196
    Occupancy expense                  731        733      2,898      2,787
    Data processing expense            367        384      1,554      1,270
    Professional services              167        134        576        480
    Advertising and promotion          123        143        592        507
    Other                              526        515      2,211      2,115
      Total noninterest expense      4,861      4,535     18,809     17,355

  Income before income taxes         4,382      3,465     16,231     14,728

  Income taxes                       1,725      1,330      6,212      5,580

    Net Income                      $2,657     $2,135    $10,019     $9,148

    Basic income per share           $0.49      $0.40      $1.86      $1.70

    Weighted average number of
     shares outstanding for
     Basic                       5,406,192  5,391,491  5,400,214  5,385,199

    Diluted income per share         $0.49      $0.39      $1.83      $1.67

    Weighted average number of
     shares outstanding for
     Diluted                     5,489,324  5,467,814  5,470,430  5,456,896

    Dividends per share              $0.13      $0.13      $0.52      $0.46

    Comprehensive income *          $2,531     $2,150     $9,515     $8,810

  *  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 & CEO, FFLC Bancorp, Inc.,

[phone], or fax, [phone]



Web site:  http://www.1stfederal.com/ 

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