Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS 36% INCREASE IN ANNUAL EARNINGS
SOMERSET, Mass. (January 25, 2005) -- Slade's Ferry Bancorp, (NASDAQ small
cap: SFBC) parent company of Slade's Ferry Trust Company (the "Bank"),
announced that its net income for the year ended December 31, 2004 was
$3.65 million, an increase of 35.9% over net income for the year ended
December 31, 2003, which totaled $2.69 million. Basic earnings per share
totaled $0.90 and $0.68 for the years ended December 31, 2004 and 2003
respectively. Diluted earnings per share totaled $0.89 and $0.67 for the
years ended December 31, 2004 and 2003, respectively, representing an
increase of 32.8%.
Net income for the three months ended December 31, 2004 totaled $1.33
million, or $0.33 per share (basic), as compared to $1.07 million or $0.27
per share (basic), for the three months ended December 31, 2003, an
increase of 24.5%. Earnings per share for the quarter ended December 31,
2004 totaled $0.32 on a diluted basis.
The primary reason for the increase in earnings is the Company's growth
during 2004, as total consolidated assets increased from $439.4 million at
December 31, 2003 to $550.0 million at December 31, 2004, an increase of
25.2%. The Bank instituted programs to attract significant levels of
deposits during the period of unprecedented low interest rates early in
2004. As a result, deposits increased from $333.1 million at December 31,
2003 to $400.0 million at December 31, 2004, an increase of 20.1%. During
the same time period, net loans increased by $30.8 million, or 9.3%, to
$362.3 million while investment securities increased by $64.8 million, or
51.3%, to $126.3 million. In addition, taking advantage of the low
interest-rate environment, the Bank increased its level of Federal Home
Loan Bank advances from $60.5 million in 2003 to $90.3 million during 2004.
As a result of this growth, net interest and dividend income increased from
$14.5 million for the year ended December 31, 2003, to $16.2 million for
the year December 31, 2004, an increase of 11.1%. Net interest and dividend
income increased from $3.8 million for the three months ended December 31,
2003, to $4.4 million for the three months ended December 31, 2004, an
increase of 16.1%.
"Our growth in 2004 is significant, thanks to the dedication of a fine
group of professionals and a Board of Directors committed to both
shareholders and community," said Slade's Ferry Bancorp CEO Mary Lynn Lenz.
"Increasing earnings and a stronger, more diverse asset base allows Slade's
Ferry to improve our levels of service to the communities we serve and
create more value for our shareholders".
Total stockholders' equity at December 31, 2004 was $47.0 million versus
$42.7 million at December 31, 2003, an increase of approximately 10%. Book
value per share was $11.56 at December 31, 2004 as compared to $10.70 at
December 31, 2003. Both the
Company and the Bank maintain capital levels sufficient to be considered
"well-capitalized" under applicable regulatory capital guidelines and
requirements.
Slade's Ferry Bancorp was founded to serve community-banking needs with
both personal and commercial products and services. With more than $549
million in assets and 10 retail branches in Southeastern Massachusetts,
Slade's Ferry is a trusted community partner to both business and personal
banking customers. 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. A new branch, located in Assonet, MA will be
opening in early 2005.
# # #
This news 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 on which the forward-looking statements are made.
SLADE'S FERRY BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
AS OF
DECEMBER 31, DECEMBER 31,
ASSETS: 2004 2003
- -------------------------------------------------------------------------------
<s> <c> <c>
Cash and deposits with other banks $ 16,394,024 $ 18,642,370
Money market mutual funds - 63,539
Federal funds sold 13,800,000 4,000,000
Federal Home Loan Bank overnight deposit 5,000,000 -
- -------------------------------------------------------------------------------
Cash and Cash Equivalents 35,194,024 22,705,909
Interest bearing time deposits with other banks 100,000 200,000
Securities held to maturity 37,773,227 11,300,402
Securities available for sale 83,882,431 47,162,852
Federal Home Loan Bank stock 4,649,700 3,023,800
Loans (net) - Note A 362,264,873 331,496,525
Premises & equipment 5,527,362 5,894,736
Accrued interest receivable 1,969,151 1,497,104
Goodwill 2,173,368 2,173,368
Cash surrender value of life insurance 11,548,320 10,980,879
Other assets 4,811,867 3,012,966
- -------------------------------------------------------------------------------
TOTAL ASSETS $549,894,323 $439,448,541
===============================================================================
LIABILITIES & STOCKHOLDERS' EQUITY:
Deposits $399,904,731 $333,144,817
Advances from Federal Home Loan Bank 90,286,416 60,474,864
Subordinated debentures 10,310,000 -
Other liabilities 2,358,783 3,086,719
- -------------------------------------------------------------------------------
Total Liabilities 502,859,930 396,706,400
Stockholders' equity:
Common stock 40,685 39,959
Paid in capital 29,976,061 28,609,206
Retained earnings 16,892,659 14,698,595
Accum. other comprehensive gain (loss) 124,988 (605,619)
- -------------------------------------------------------------------------------
Total Stockholders' Equity 47,034,393 42,742,141
- -------------------------------------------------------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $549,894,323 $439,448,541
===============================================================================
Note: A-Loans is net of:
Reserve for Loan Losses $ 4,101,026 $ 4,154,394
Unearned Income $ 439,447 $ 443,393
SLADE'S FERRY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE
(UNAUDITED)
3 MONTHS ENDING DECEMBER 31,
2004 2003
-------------------------
<s> <c> <c>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans $5,202,532 $4,673,997
Interest and dividends on investments 1,362,847 602,784
Other interest 53,635 17,671
-------------------------
Total interest and dividend income 6,619,014 5,294,452
-------------------------
INTEREST EXPENSE:
Interest on deposits 1,255,340 966,363
Interest on other borrowed funds 794,136 507,975
Interest on subordinated debentures 133,727 -
-------------------------
Total interest expense 2,183,203 1,474,338
-------------------------
Net interest and dividend income 4,435,811 3,820,114
Provision (benefit) for loan losses - (62,969)
-------------------------
Net interest and dividend income after
provision (benefit) for loan losses 4,435,811 3,883,083
-------------------------
OTHER INCOME:
Service charges on deposit accounts 115,621 139,923
Overdraft service charges 114,645 139,135
Loss on sale of mortgages - 115,792
Security losses, net (51,887) -
Other income 350,554 343,268
-------------------------
Total other income 528,933 738,118
-------------------------
OTHER EXPENSE:
Salaries and employee benefits 1,607,646 2,035,076
Occupancy expense 181,460 175,707
Equipment expense 146,254 142,989
Other expenses 950,029 808,432
-------------------------
Total other expense 2,885,389 3,162,204
-------------------------
Income before income taxes 2,079,355 1,458,997
Income taxes 746,018 387,972
-------------------------
Net income $1,333,337 $1,071,025
=========================
Basic earnings per share $ 0.33 $ 0.27
=========================
Diluted earnings per share $ 0.32 $ 0.26
=========================
SLADE'S FERRY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE
(UNAUDITED)
12 MONTHS ENDING DECEMBER 31,
2004 2003
---------------------------
<s> <c> <c>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans $20,263,566 $17,602,784
Interest and dividends on investments 3,568,868 2,860,922
Federal fund sold and other interest 273,679 152,924
---------------------------
Total interest and dividend income 24,106,113 20,616,630
---------------------------
INTEREST EXPENSE:
Interest on deposits 4,981,673 4,505,217
Interest on Federal Home Loan Bank advances 2,594,356 1,567,953
Interest on subordinated debentures 369,853 0
---------------------------
Total interest expense 7,945,882 6,073,170
---------------------------
Net interest and dividend income 16,160,231 14,543,460
Provision (benefit) for loan losses 376,215 (602,326)
---------------------------
Net interest and dividend income after
provision (benefit) for loan losses 15,784,016 15,145,786
---------------------------
OTHER INCOME:
Service charges on deposit accounts 519,750 569,189
Overdraft service charges 518,247 549,923
Gain on sale of mortgages 195,817 -
Security gains (losses), net (5,589) 1,944
Other income 1,276,855 1,092,489
---------------------------
Total other income 2,505,080 2,213,545
---------------------------
OTHER EXPENSE:
Salaries and employee benefits 7,580,363 7,778,787
Occupancy expense 780,978 886,287
Equipment expense 564,141 541,960
Other expenses (1) 3,799,839 3,454,695
---------------------------
Total other expense 12,725,321 12,661,729
---------------------------
Income before income taxes 5,563,775 4,697,602
Income taxes (1) 1,911,508 2,009,716
---------------------------
Net income $ 3,652,267 $ 2,687,886
===========================
Basic earnings per share $ 0.90 $ 0.68
===========================
Diluted earnings per share $ 0.89 $ 0.67
===========================
<FN>
<F1> The year to date results of operation for the period ended December
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 $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>