Exhibit 99.1 CONTACT: Mary K. Talbot (401) 245-8819 Strong Loan, Deposit Growth Push -------------------------------- Slade's Ferry's Operating Income Up Nine Percent ------------------------------------------------ SOMERSET, Mass. (April 14, 2004) -- Slade's Ferry Bancorp, (NASDAQ small cap: SFBC) parent company of Slade's Ferry Trust Company, announced earnings for the first quarter of 2004 reached $645,994, an increase over both net income and operating income compared to the first quarter of 2003. Diluted earnings per share (EPS) reached $0.16 per share in the first quarter of 2004, compared to a loss of $0.17 per share in the first quarter of 2003. By comparison, the Company reported a net loss of $692,180 in the first quarter of 2003. That loss was the result of a $1.28 million charge taken in accordance with a change in state legislation, which denied the deduction for dividends received from real estate investment trusts retroactively to 1999. Operating income in the first quarter of 2003 (excluding the charge) was $592,886. Income before taxes increased $331,762 during the first quarter of 2004, predominately as a result of an increase in total interest and dividend income. Total interest and dividend income increased 8.3 percent in the first quarter of 2004, primarily as a result of an increase in the volume of loans and subsequent increase in interest and fees associated with those loans. The increase is attributable to the Bank's strong efforts to promote its loan products since early last year. Total loans have climbed $90 million in the last 15 months, including a $17.2 million increase in the first quarter of 2004. "We are starting to see some of the initiatives we began in 2003 positively impacting our balance sheet," said President and CEO Mary Lynn Lenz. "Our deposits are growing, our loans are growing and I would say our reputation for a wide product array and attentive customer service is establishing itself." Aggressive marketing of new and existing deposit products also resulted in strong deposit growth. Deposits have grown by 20 percent, an increase of $67 million, topping the $400-million mark at March 31, 2004. Core deposits grew by $34 million, a 10.1 percent increase since year-end. During the first quarter of 2004, the Company issued $10.3 million in trust- preferred securities, providing the Company with additional regulatory capital that will be used to fund continued growth of the institution. During the first quarter of 2004, asset quality continued to improve. Total nonperforming assets at March 31, 2004 were $210,000, compared to $407,000 at year-end 2003, a 48.4 percent improvement. Nonperforming loans represented 0.03 percent of total loans at the end of the first quarter 2004, compared to 0.12 percent of total loans at the end of 2003. Total stockholders' equity at March 31, 2004 was $43.7 million versus $42.7 million at December 31, 2003, an increase of 2.4 percent, or $1.0 million. Both the company and the bank maintain capital levels sufficient to be considered "well-capitalized" under applicable regulatory capital guidelines and requirements. The Board of Directors also declared a dividend of $0.09 per share, payable on April 16, 2004 to stockholders of record as of March 19, 2004. Slade's Ferry Bancorp was founded to serve community-banking needs with both personal and commercial products and services. With more than $513 million in assets and 10 retail branches in Southeastern Massachusetts, Slade's Ferry Bancorp is a trusted community partner. Traded on the NASDAQ Small Cap Market as SFBC, Slade's Ferry Bancorp can also be found on the web at www.sladesferry.com and in six Massachusetts communities - Fairhaven, Fall River, New Bedford, Seekonk, Somerset and Swansea. # # # This new release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the strength of the company's capital and asset quality. Other such statements may be identified by words such as "believes," "will," "expects," "project," "may," "developments," "strategic," "launching," "opportunities," "anticipates," "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of Slade's Ferry Bancorp's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectation expressed in our forward-looking statements: (1) enactment of adverse government regulations (2) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (3) the strength of the United States economy in general and specifically the strength of the New England economics may be different than expected, resulting in, among other things, a deterioration in overall credit quality and borrowers' ability to service and repay loans, or a reduced demand for credit, including the resultant effect on the Bank's loan portfolio, levels of charge-offs and non-performing loans and allowance for loan losses; (4) changes in the interest rate environment may reduce interest margins and adversely impact net interest income and (5) changes in assumptions used in making such forward-looking statements. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Slade's Ferry Bancorp's actual results could differ materially from those discussed. All subsequent written and oral forward-looking statements attributable to Slade's Ferry Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth above. Slade's Ferry Bancorp does not intend or undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date of the forward-looking statements are made. SLADE'S FERRY BANCORP CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF MARCH 31, DECEMBER 31, ASSETS: 2004 2003 - --------------------------------------------------------------------------------- <s> <c> <c> Cash and deposits with other banks $ 18,531,706 $ 18,642,370 Money market mutual funds 182,335 63,539 Federal funds sold 66,000,000 4,000,000 - --------------------------------------------------------------------------------- Cash and Cash Equivalents 84,714,041 22,705,909 Interest bearing time deposits with other banks 100,000 200,000 Securities held to maturity 9,930,271 11,300,402 Securities available for sale 42,833,205 47,162,852 Federal Home Loan Bank stock 3,023,800 3,023,800 Loans (net) - Note A 348,774,965 331,496,525 Premises & equipment 5,846,273 5,894,736 Accrued interest receivable 1,503,337 1,497,104 Goodwill 2,173,368 2,173,368 Cash surrender value of life insurance 11,143,583 10,980,879 Other assets 3,338,545 3,012,966 - --------------------------------------------------------------------------------- TOTAL ASSETS $513,381,388 $439,448,541 ================================================================================= LIABILITIES & STOCKHOLDERS' EQUITY: Deposits $400,275,674 $333,144,817 Advances from Federal Home Loan Bank 56,089,327 60,474,864 Subordinated debentures 10,310,000 0 Other liabilities 2,923,110 3,086,719 - --------------------------------------------------------------------------------- Total Liabilities 469,598,111 396,706,400 Stockholders' equity: Common stock 40,276 39,959 Paid in capital 29,105,262 28,609,206 Retained earnings 14,983,578 14,698,595 Accum. other comprehensive loss (345,839) (605,619) - --------------------------------------------------------------------------------- Total Stockholders' Equity 43,783,277 42,742,141 - --------------------------------------------------------------------------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $513,381,388 $439,448,541 ================================================================================= Note: A-Loans is net of: Reserve for Loan Losses $ 4,445,371 $ 4,154,394 Unearned Income $ 526,158 $ 443,393 CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE (UNAUDITED) 3 MONTHS ENDING MARCH 31, 2004 2003 ------------------------- <s> <c> <c> INTEREST AND DIVIDEND INCOME: Interest and fees on loans $4,892,175 $4,166,512 Interest and dividends on investments 529,496 848,949 Other interest 58,714 45,323 ------------------------- Total interest and dividend income 5,480,385 5,060,784 ------------------------- INTEREST EXPENSE: Interest on deposits 1,122,289 1,227,793 Interest on other borrowed funds 594,871 317,493 Interest on subordinated debentures 16,250 0 ------------------------- Total interest expense 1,733,410 1,545,286 ------------------------- Net interest and dividend income 3,746,975 3,515,498 Provision for loan losses 246,215 141,000 ------------------------- Net interest and dividend income after provision for loan losses 3,500,760 3,374,498 ------------------------- OTHER INCOME: Service charges on deposit accounts 268,837 255,437 Security gains (losses), net 34,882 (40,918) Other income 259,939 260,147 ------------------------- Total other income 563,658 474,666 ------------------------- OTHER EXPENSE: Salaries and employee benefits 1,967,865 1,789,437 Occupancy expense 231,365 262,981 Equipment expense 147,078 123,165 Other expenses 764,172 1,051,405(1) ------------------------- Total other expense 3,110,480 3,226,988 ------------------------- Income before income taxes 953,938 622,176 Income taxes 307,944 1,314,356(1) ------------------------- Net income 645,994 (692,180) Basic earnings (loss) per share $ 0.16 $ (0.18) ========================= Diluted earnings (loss) per share $ 0.16 $ (0.17) ========================= <FN> <F1> The quarterly results of operations for the period ended March 31, 2003 have been revised from that previously reported to remove the extraordinary item. The extraordinary item treatment previously presented was revised, and its individual components were presented as part of income tax expense, in the amount of $1,058,324 and included in other expense is interest of $226,742. See Footnote 20 to the Company's audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2003 filed with the U.S. Securities and Exchange Commission. </FN>