Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS 65% INCREASE IN FIRST QUARTER EARNINGS
SOMERSET, Mass. (April 14, 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 quarter ended March 31, 2005 was $1.1
million, or $0.26 per share (diluted), an increase of 65.0% over net income
for the quarter ended March 31, 2004, which totaled $646,000 or $0.16 per
share (diluted).
The primary reason for the increase in earnings is the Bank's successful
deployment of the deposit growth realized in 2004 into higher yielding
loans and investments. The Bank initiated its deposit growth measures in
early 2004. The subsequent investment of the deposits, as well as an
increase in the level of Federal Home Loan Bank advances has generated an
increase in average total assets, from $472.1 million for the three months
ended March 31, 2004 to $551.6 million for the three months ended March 31,
2005. Because of this growth, net interest and dividend income increased
from $3.7 million for the three months ended March 31, 2004, to $4.5
million for the three months ended March 31, 2005, an increase of 18.8%,
while the net interest margin increased from 3.48% for the three months
ended March 31, 2004 to 3.52% for the three months ended March 31, 2005.
The increase in net interest income compared favorably with the increase in
operating expenses, as total operating expenses increased from $3.1 million
for the three months ended March 31, 2004 to $3.4 million for the three
months ended March 31, 2005, an increase of 8.4%.
Also contributing to the increase in earnings was a reduced provision for
loan losses in the first quarter of 2005, when compared to the first
quarter of 2004, as the provision for loan losses decreased from $246,000
for the three months ended March 31, 2004 to $50,000 for the three months
ended March 31, 2005. Due to changes in the composition of the loan
portfolio, stronger underwriting guidelines, and the sale of loans
previously deemed non-performing, the overall credit risk profile of the
loan portfolio has improved.
Total assets increased from $549.8 million at December 31, 2004 to $555.8
million at March 31, 2005. Total net loans increased from $362.3 million to
$379.5 million during the same period. Total deposits decreased from $399.9
million at December 31, 2004 to $385.5 at March 31, 2005, the result of
planned runoff of certain "special rate" certificates of deposit opened
during January and February 2004. On March 21, 2005, the Company opened its
ninth branch office, located in Assonet, Massachusetts, which management
believes will support future deposit growth.
"Management and the board of directors are delighted with the first quarter
earnings," said President and CEO Mary Lynn Lenz. "These results are
possible thanks to the continued loyalty of our customers, dedication of
our board of directors and entire Slade's Ferry staff. The opening of our
Assonet branch and the commencement of our Bank at Work Program will
contribute to our success and enhance shareholder value."
Total stockholders' equity at March 31, 2005 was $47.6 million versus $47.0
million at December 31, 2004, an increase of approximately 1.2%. 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 $550
million in assets and nine retail branches in Southeastern Massachusetts,
Slade's Ferry 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 seven Massachusetts communities - Assonet,
Fairhaven, Fall River, New Bedford, Seekonk, Somerset and Swansea.
# # #
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 of the forward-looking statements are made.
SLADE'S FERRY BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
AS OF
MARCH 31, DECEMBER 31,
ASSETS: 2005 2004
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<s> <c> <c>
Cash and deposits with other banks $ 20,451,084 $ 16,394,024
Federal funds sold 7,100,000 13,800,000
Federal Home Loan Bank overnight deposit - 5,000,000
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Cash and Cash Equivalents 27,551,084 35,194,024
Interest bearing time deposits with other banks 100,000 100,000
Securities held to maturity 35,964,144 37,773,227
Securities available for sale 80,896,224 83,882,432
Federal Home Loan Bank stock 5,904,900 4,649,700
Loans, net 379,451,965 362,264,873
Premises & equipment 5,275,581 5,527,362
Accrued interest receivable 2,055,290 1,969,151
Goodwill 2,173,368 2,173,368
Cash surrender value of life insurance 11,563,058 11,548,320
Other assets 4,899,371 4,749,296
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TOTAL ASSETS $555,834,985 $549,831,753
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LIABILITIES & STOCKHOLDERS' EQUITY:
Deposits $385,538,416 $399,904,731
Advances from Federal Home Loan Bank 110,179,693 90,286,416
Subordinated debentures 10,310,000 10,310,000
Other liabilities 2,210,799 2,296,213
Total Liabilities 508,238,908 502,797,360
Stockholders' equity:
Common stock 40,944 40,684
Paid in capital 30,381,461 29,976,062
Retained earnings 17,589,811 16,892,659
Accum. other comprehensive income (loss) (416,139) 124,988
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Total Stockholders' Equity 47,596,077 47,034,393
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $555,834,985 $549,831,753
================================================================================
SLADE'S FERRY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE
(UNAUDITED)
3 MONTHS ENDED MARCH 31,
2005 2004
------------------------
<s> <c> <c>
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans $5,265,939 $4,892,175
Interest and dividends on investments 1,321,227 529,496
Other interest 69,722 58,714
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Total interest and dividend income 6,656,888 5,480,385
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INTEREST EXPENSE:
Interest on deposits 1,158,758 1,122,289
Interest on other borrowed funds 910,943 594,871
Interest on subordinated debentures 136,238 16,250
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Total interest expense 2,205,939 1,733,410
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Net interest and dividend income 4,450,949 3,746,975
Provision for loan losses 50,000 246,215
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Net interest and dividend income after
provision for loan losses 4,400,949 3,500,760
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OTHER INCOME:
Service charges on deposit accounts 97,898 145,497
Overdraft service charges 109,878 123,340
Gain on sale of asset 40,385 -
Securities gains, net 1,794 34,882
Other income 319,405 259,939
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Total other income 569,360 563,658
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OPERATING EXPENSES:
Salaries and employee benefits 2,032,706 1,967,865
Occupancy expense 239,379 231,365
Equipment expense 170,383 147,078
Other expenses 930,541 764,172
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Total other expense 3,373,009 3,110,480
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Income before income taxes 1,597,299 953,938
Income taxes 531,657 307,944
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Net income $1,065,642 $ 645,994
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Basic earnings per share $ 0.26 $ 0.16
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Diluted earnings per share $ 0.26 $ 0.16
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