Exhibit 99.1
CONTACT: Mary K. Talbot
(401) 245-8819
Slade's Ferry Bancorp Announces
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Second Quarter Earnings
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Company reports strong growth in assets, deposits and loans
SOMERSET, Mass. (July 15, 2004) -- Slade's Ferry Bancorp, (NASDAQ
small cap: SFBC) parent company of Slade's Ferry Trust Company, announced
earnings for the second quarter of 2004 reached $601,723. The company also
said that it continued to see strong growth in deposits, assets and loans.
For the second quarter of 2004, diluted earnings per share (EPS) were
$0.15, compared to $0.40 for the second quarter of 2003.
For the six months ended June 30, 2004, net income climbed to $1.25
million, compared to $917,516 for the same period last year. On a diluted
EPS basis, earnings for the six-month period reached $0.31 compared to $0.23
for the same six-month period in 2003.
Both the quarterly and six-month earnings in 2003 were impacted by a
change in state legislation, which denied the deduction for dividends
received from real estate investment trusts retroactively to 1999. As a
result of that change, the company took a $1.28 million charge in the first
quarter of 2003.
In the second quarter of 2003, the company recovered approximately
$642,000 of that charge as a result of negotiations with the state. The
earnings for the second quarter of 2003 also were positively impacted by a
recovery of $680,357 of previously provided loan loss provisions. Reported
income for the second quarter of 2003 was $1.6 million.
Total assets have climbed $86.0 million, or 19.6 percent, since the
end of 2003, reaching $525.4 million at June 30, 2004. Total gross loans
were up 8.2 percent since year-end, reaching $363.7 million at June 30, 2004
and are up 8.2% from $336.1 on December 31, 2003.
Total deposits grew to $411.7 million, an increase of $78.5 million
since year-end. Nearly half that growth has come in relationship accounts
(checking and savings). Total checking and savings account balances have
climbed $37.3 million since the end of 2003. The bank also saw strong growth
in CD balances (up $25.8 million since year-end) and money market accounts,
which include municipal deposits (up $15.2 million since December 31, 2003).
"The banking landscape is changing in Southeastern Massachusetts,"
said President & CEO Mary Lynn Lenz. Because of mergers, nearly half of the
banking customers on the South Coast will have a new bank by the end of the
year. "We are already seeing these customers turning to Slade's Ferry as the
community alternative to the big banks moving into the area," she added.
The bank also continued to strengthen its product offerings during the
quarter, as it works to attract both personal and business customers. The
bank introduced cash management services for business customers and a state-
of-the-art internet banking product.
Total stockholders' equity at June 30, 2004 was $43.6 million versus
$42.7 million at December 31, 2003, an increase of 2.1 percent, or
approximately $891,000. 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 July 23, 2004 to stockholders of record as of June 25, 2004.
Slade's Ferry Bancorp was founded to serve community-banking needs
with both personal and commercial products and services. With more than $525
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
JUNE 30, DECEMBER 31,
ASSETS: 2004 2003
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<s> <c> <c>
Cash and deposits with other banks $ 21,342,930 $ 18,642,370
Money market mutual funds 387,502 63,539
Federal funds sold 31,500,000 4,000,000
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Cash and Cash Equivalents 53,230,432 22,705,909
Interest bearing time deposits with other banks 100,000 200,000
Securities held to maturity 9,517,673 11,300,402
Securities available for sale 75,595,493 47,162,852
Federal Home Loan Bank stock 3,128,500 3,023,800
Loans (net) - Note A 358,534,393 331,496,525
Premises & equipment 5,776,447 5,894,736
Accrued interest receivable 1,830,466 1,497,104
Goodwill 2,173,368 2,173,368
Cash surrender value of life insurance 11,373,643 10,980,879
Other assets 4,144,682 3,012,966
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TOTAL ASSETS $525,405,097 $439,448,541
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LIABILITIES & STOCKHOLDERS' EQUITY:
Deposits $411,692,478 $333,144,817
Advances from Federal Home Loan Bank 56,481,413 60,474,864
Other liabilities 13,598,419 3,086,719
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Total Liabilities 481,772,310 396,706,400
Stockholders' equity:
Common stock 40,518 39,959
Paid in capital 29,488,031 28,609,206
Retained earnings 15,219,781 14,698,595
Accum. other comprehensive loss (1,115,543) (605,619)
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Total Stockholders' Equity 43,632,787 42,742,141
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $525,405,097 $439,448,541
================================================================================
Note: A-Loans is net of:
Reserve for Loan Losses $ 4,594,699 $ 4,154,394
Unearned Income $ 570,979 $ 443,393
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE
(UNAUDITED)
6 MONTHS ENDING JUNE 30,
2004 2003
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<s> <c> <c>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans $ 9,867,034 $ 8,509,284
Interest and dividends on investments 1,207,525 1,586,281
Other interest 162,535 108,380
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Total interest and dividend income 11,237,094 10,203,945
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INTEREST EXPENSE:
Interest on deposits 2,447,061 2,447,944
Interest on other borrowed funds 1,173,137 651,206
Interest on subordinated debentures 117,923 0
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Total interest expense 3,738,121 3,099,150
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Net interest and dividend income 7,498,973 7,104,795
Provision for loan losses 376,215 (539,357)
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Net interest and dividend income after
provision for loan losses 7,122,758 7,644,152
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OTHER INCOME:
Service charges on deposit accounts 526,621 541,320
Security gains (losses), net 39,304 (40,918)
Other income 597,491 509,393
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Total other income 1,163,416 1,009,795
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OTHER EXPENSE:
Salaries and employee benefits 4,018,868 3,738,029
Occupancy expense 420,192 485,013
Equipment expense 279,697 255,022
Other expenses 1,650,735 1,955,961
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Total other expense 6,369,492 6,434,025
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Income before income taxes 1,916,682 2,219,922
Income taxes 668,965 1,302,406
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Net income 1,247,717 917,516
===========================
Basic earnings per share $ 0.31 $ 0.23
===========================
Diluted earnings per share $ 0.31 $ 0.23
===========================
<FN>
<F1> The year to date results of operations for the period ended June 30,
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 $529,191 and included in
other expense is interest of $128,977. 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>
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE
(UNAUDITED)
3 MONTHS ENDING JUNE 30,
2004 2003
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<s> <c> <c>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans $4,974,859 $4,342,772
Interest and dividends on investments 678,029 737,332
Other interest 103,821 63,057
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Total interest and dividend income 5,756,709 5,143,161
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INTEREST EXPENSE:
Interest on deposits 1,324,772 1,220,151
Interest on other borrowed funds 578,266 333,713
Interest on subordinated debentures 101,673 0
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Total interest expense 2,004,711 1,553,864
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Net interest and dividend income 3,751,998 3,589,297
Provision for loan losses 130,000 (680,357)
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Net interest and dividend income after
provision for loan losses 3,621,998 4,269,654
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OTHER INCOME:
Service charges on deposit accounts 257,784 285,883
Security gains, net 4,422 0
Other income 337,552 249,246
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Total other income 599,758 535,129
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OTHER EXPENSE:
Salaries and employee benefits 2,051,003 1,948,592
Occupancy expense 188,827 222,032
Equipment expense 132,619 131,857
Other expenses 886,563 904,556
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Total other expense 3,259,012 3,207,037
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Income before income taxes 962,744 1,597,746
Income taxes 361,021 (11,950)
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Net income 601,723 1,609,696
=========================
Basic earnings per share $ 0.15 $ 0.41
=========================
Diluted earnings per share $ 0.15 $ 0.40
=========================
<FN>
<F1> The quarterly results of operations for the period ended June 30, 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 (benefit), in the amount of $529,133 and
included in other expense is interest of $97,765. 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>