FFBK Floridafirst Bancorp Inc. (MM)

SouthTrust Announces Record First-Quarter Earnings and Earnings Per Share Highlights: * Q1 earnings per share increase 12% BIRMINGHAM, Ala., April 21 /PRNewswire-FirstCall/ -- SouthTrust Corporation today announced earnings per diluted share of $0.55 on record earnings of $183.0 million for the first quarter of 2004. Earnings per diluted share were up 12 percent and net earnings increased by 7 percent compared to the first quarter of 2003. The dividend increased by 14 percent to an annual rate of $0.96 per share, effective April 1. This marks the 53rd consecutive quarter of increased earnings and over thirty years of increased dividends. Of the top thirty banks in the United States, very few can match the SouthTrust record. SouthTrust is the country's 17th largest bank. "SouthTrust began 2004 with another quarter of solid core earnings that once again highlights our company's ability to perform well in a continually changing economic environment," said Wallace D. Malone Jr., Chairman and CEO of SouthTrust. "The results from this quarter reflect an improving environment for SouthTrust. Our credit quality remains excellent and lending activity continues to show signs that we are experiencing an improving economy. In addition, our expenses remain well under control, clearly demonstrating that our significant investments in technology and process improvements are delivering excellent and expected results. We are confident that if the current trends continue, 2004 will be another record year for SouthTrust." "Net-interest income for the quarter decreased 1 percent to $412.8 million. Our net-interest margin percentage for the first quarter of 2004 was 3.50 percent compared to 3.51 percent in the fourth quarter of 2003, and 3.69 percent in the first quarter of 2003. Even though market interest rates were relatively flat for much of the quarter, our margin percentage was relatively stable during the first quarter. The quarter-over-quarter margin stability we've achieved gives us a high level of confidence that our balance sheet is positioned to allow SouthTrust to continue to produce good results as the economy improves and interest rates rise. Within the context of today's rate environment, we expect our margin percentage to remain relatively stable through the end of 2004. This means we are well-positioned for margin income to improve if the anticipated growth in the economy occurs as we expect," Malone said. Non-interest income increased to $166.4 million in the first quarter of 2004, up 2 percent from the same period in 2003. Non-interest income was largely affected because of a decrease in mortgage banking income, which fell 61 percent to $6.6 million. All other non-interest income rose 9 percent. "We expected mortgage income to be lower than in past quarters because a large portion of our mortgage loan production in 2003 was from refinancings. As mortgage rates rose from record lows in mid-2003, refinancing activity predictably slowed," Malone said. Non-interest expense for the first quarter of 2004 was $285.4 million, a 4 percent decrease from the same period in 2003. For the quarter, the company's efficiency ratio improved to 49.52 percent compared to 51.17 percent in the first quarter of 2003. "Controlling expenses and maximizing efficiency continue to receive a high level of focus at SouthTrust. Our everyday emphasis on these areas produces excellent, long-term results," Malone said. At quarter end, total assets were $52.7 billion, an increase of 3 percent over first quarter 2003 assets of $51.3 billion. Total deposits increased 10 percent from first quarter 2003 to $35.5 billion. Core deposits continued to show good growth, increasing 5 percent to $27.8 billion for the quarter from $26.4 billion in the first quarter of 2003. Stockholders' equity was $4.5 billion, which was a strong 8.54 percent of total assets. During the first quarter of 2004, loans grew $612 million, or at an annualized rate of 7 percent, to $35.9 billion from $35.3 billion at the end of the fourth quarter of 2003. This also reflects an increase of 4 percent over the first quarter 2003 level of $34.4 billion. "Loan demand continues to show signs of improvement, particularly in the commercial and real-estate construction areas. Even though we have been in a slower lending environment for an extended period of time, we are seeing an increase in the number of lending opportunities and we certainly have the capacity and the organization to efficiently handle much higher loan growth. The quantity and quality of the lending opportunities our sales culture continues to generate makes us quite confident in our ability to have excellent growth as the Southern economy continues to improve," Malone said. Credit quality remains a core strength at SouthTrust. For the first quarter, net loans charged off were $27.5 million, or 0.31 percent of loans, compared to $28.4 million, or 0.34 percent of loans, in the first quarter of 2003. "Low credit losses have long been a strength for SouthTrust. In fact, if you exclude losses related to our credit card operation, which is a line of business that most of our peers do not have, our losses would have been only 0.25 percent in the first quarter," Malone said. Non-performing assets continue to show a favorable trend. Total non- performing assets as of March 31, 2004, were $221.1 million, or 0.62 percent of loans plus other non-performing assets. This is a decrease from the Dec. 31, 2003, level of $224.1 million, or 0.63 percent of loans plus other non- performing assets. The company's loan-loss reserve for first quarter was 1.40 percent of loans. In addition, the loan-loss reserve coverage of non- performing loans was 289 percent. During the quarter, SouthTrust continued to focus on building its presence in high-growth, high-population markets. On February 5, the company announced it had entered a definitive agreement to purchase Lakeland, Fla., based FloridaFirst Bancorp, Inc. (NASDAQ:FFBK) and its subsidiary, FloridaFirst Bank. The acquisition will increase SouthTrust's presence in Central Florida by 19 branches -- 10 in Lakeland, two in Winter Haven, four in Bradenton and one each in Sebring, Avon Park and Wildwood. The acquisition is scheduled to close during the second quarter pending necessary stockholder and regulatory approval. FloridaFirst reported assets of $821 million as of Dec. 31, 2003. SouthTrust Corporation ( http://www.southtrust.com/ ) is a $52.7 billion regional bank holding company with headquarters in Birmingham, Ala. SouthTrust operates 712 banking and loan offices and 894 ATMs in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. The company offers a complete line of banking and other related financial services to commercial and retail customers. SouthTrust is a Forbes Platinum 400 company that trades on the NASDAQ Stock Market under the symbol SOTR. The company is listed on the S&P 500 index and the Keefe, Bruyette & Woods BKX Index. Cautionary Statement Regarding Forward-Looking Statements This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Detailed financial tables are available at http://www.investor.southtrust.com/ SOUTHTRUST CORPORATION Financial Highlights Three Months Year Ended Ended March 31, % Ended December 31, % 2004 2003 Change 2003 2002 Change SUMMARY INCOME STATEMENT (Fully taxable equivalent, in thousands) Interest income $567,864 $617,479 $2,378,683 $2,677,968 Interest expense 155,070 199,377 713,776 960,327 Net interest income 412,794 418,102 1,664,907 1,717,641 Tax equivalent adjustment (2,836) (2,884) (11,598) (12,557) Provision for loan losses 27,522 29,400 124,550 126,732 Net interest income after provision for loan losses 382,436 385,818 1,528,759 1,578,352 Non-interest income (excluding securities transactions) 163,441 164,327 679,689 613,913 Securities transactions 2,933 (1,096) 23 2,601 Non-interest expense 285,354 298,027 1,179,849 1,232,369 Income before income taxes 263,456 251,022 1,028,622 962,497 Income taxes 80,499 79,677 323,436 312,626 Net income $182,957 $171,345 6.8% $705,186 $649,871 8.5% EARNINGS & DIVIDENDS (Dollars in thousands, except per share data) Basic: Earnings per share $0.55 $0.50 10.0% $2.08 $1.87 11.2% Average shares outstanding 331,027 345,514 338,452 346,731 Diluted: Earnings per share $0.55 $0.49 12.2% $2.06 $1.85 11.4% Average shares outstanding 335,251 350,494 342,498 350,937 Cash dividends declared per share $0.24 $0.21 14.3% $0.84 $0.68 23.5% PERFORMANCE RATIOS Return on average assets 1.42% 1.38% 1.38% 1.33% Return on average tangible assets 1.44 1.40 1.41 1.36 Return on average equity 16.58 15.15 15.87 15.12 Return on average tangible equity 20.21 18.33 19.37 18.56 Net interest margin (FTE) 3.50 3.69 3.58 3.85 Net loans charged-off to net average loans 0.31 0.34 0.36 0.34 Allowance to net loans outstanding 1.40 1.45 1.42 1.46 Non-interest expense as a % of average total assets 2.22 2.39 2.32 2.53 Efficiency ratio 49.52 51.17 50.32 52.86 SELECTED AVERAGE BALANCES (Dollars in millions, except per share data) Total assets $51,734.1 $50,493.9 2.5% $50,934.3 $48,706.8 4.6% Earning assets 47,664.9 46,356.7 2.8% 46,757.9 44,856.0 4.2% Loans, net of unearned income 35,553.4 34,395.7 3.4% 34,524.4 33,386.3 3.4% Total deposits 35,858.0 32,589.7 10.0% 33,861.0 31,439.2 7.7% Stockholders' equity 4,438.4 4,587.6 -3.3% 4,443.0 4,299.1 3.3% SELECTED PERIOD END BALANCES (Dollars in millions, except per share data) Mar 31 Mar 31 % Dec 31 Dec 31 % 2004 2003 Change 2003 2002 Change Total assets $52,672.9 $51,348.6 2.6% $51,924.9 $50,570.9 2.7% Loans, net of unearned income 35,892.1 34,440.4 4.2% 35,280.2 34,237.6 3.0% Total deposits 35,514.9 32,312.8 9.9% 34,746.6 32,945.4 5.5% Core deposits 27,825.9 26,433.1 5.3% 27,278.7 26,392.3 3.4% Stockholders' equity 4,497.2 4,523.1 -0.6% 4,359.8 4,627.6 -5.8% Shares outstanding (in thousands) 329,821 341,882 330,243 346,924 Book value per share $13.64 $13.23 $13.20 $13.34 Number of banking offices 712 693 717 710 Number of ATMs 894 871 893 882 Full-time equivalent employees 12,407 12,950 12,363 13,228 DATASOURCE: SouthTrust Corporation CONTACT: David Oliver, Corporate Communications, +1-205-254-5523, or Bill Prater, Investor Relations, +1-205-254-5187, both of SouthTrust Corporation Web site: http://www.southtrust.com/ http://www.investor.southtrust.com/

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