Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS 11% INCREASE IN ANNUAL EARNINGS
SOMERSET, Mass. (January 25, 2006) -- Slade's Ferry Bancorp (the "Company"),
(NASDAQ Capital Market: SFBC) parent company of Slade's Ferry Trust Company
(the "Bank"), announced that its net income for the year ended December 31,
2005 was $4.02 million, an increase of 11.1% over net income for the year
ended December 31, 2004, which totaled $3.62 million. Basic earnings per
share totaled $0.98 and $0.89 for the years ended December 31, 2005 and
2004, respectively. Diluted earnings per share totaled $0.97 and $0.88 for
the years ended December 31, 2005 and 2004, respectively, representing an
increase of 10.2%.
Net income for the three months ended December 31, 2005 totaled $1.17
million, or $0.28 per share (basic and diluted), as compared to $1.33
million or $0.32 per share (basic and diluted), for the three months ended
December 31, 2004.
The primary reason for the increase in earnings for the year is the
Company's growth during 2005, as total consolidated assets increased from
$549.4 million at December 31, 2004 to $585.9 million at December 31, 2005,
an increase of 6.6%. The Bank instituted programs to attract deposits during
the period of unprecedented low interest rates early in 2005. As a result,
deposits increased from $399.9 million at December 31, 2004 to $415.8
million at December 31, 2005, an increase of 4.0%. During the same time
period, net loans increased by $47.3 million, or 13.1%, to $409.6 million.
In addition, the Bank increased its level of Federal Home Loan Bank advances
from $90.3 million at December 31, 2004 to $107.9 million at December 31,
2005, an increase of 19.5%.
As a result of this growth, net interest and dividend income increased from
$16.2 million for the year ended December 31, 2004, to $17.9 million for the
year December 31, 2005, an increase of 10.9%. Net interest and dividend
income increased from $4.4 million for the three months ended December 31,
2004, to $4.6 million for the three months ended December 31, 2005, an
increase of 3.0%.
"We're pleased to have been able to deliver another double digit earnings
increase to our shareholders," said President and CEO Mary Lynn Lenz. "This
remarkable accomplishment can be attributed to the diverse experience of our
newly expanded board and a workforce that has really dedicated itself to
achieving the goals of our strategic plan."
Total stockholders' equity at December 31, 2005 was $48.9 million compared
to $46.6 million at December 31, 2004, an increase of 4.8%. Book value per
share was $11.82 at December 31, 2005 as compared to $11.45 at December 31,
2004. Both the Company and the Bank maintain capital levels sufficient to be
considered "well-capitalized" under applicable regulatory capital guidelines
and requirements.
The Company declared a $0.09 dividend to common shareholders of record on
December 23, 2005, which was paid on January 13, 2006.
The Company also announced that Kenneth R. Rezendes, Chairman of the Board
of the Company and the Bank, is retiring from his positions on the Board of
Directors of the Company and the Bank effective February 1, 2006. President
and CEO Mary Lynn Lenz has been appointed to be interim Chairperson of the
Board and a special committee has been constituted to recommend a permanent,
independent Chairperson.
Mr. Rezendes has provided over 28 years of service to the Company and the
Bank and has been a director of the Bank since 1978. In addition, Mr.
Rezendes has been a director of the Company since it became the publicly-
held parent company of the Bank in 1990. He has been the Chairman of the
Board of the Company since 2003 and from 2002 to 2003 was its Vice Chairman.
Mr. Rezendes was also President and Chief Executive Officer of the Company
from 1996 to 2002.
Slade's Ferry Bancorp was founded to serve community-banking needs with both
personal and commercial products and services. With more than $585 million
in assets and nine retail branches in Southeastern Massachusetts, Slade's
Ferry is a trusted community partner to both business and personal banking
customers. Traded on the NASDAQ Capital 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 on which the
forward-looking statements are made.
SLADE'S FERRY BANCORP AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF
December 31, December 31,
2005 2004
--------------------------
(Dollars in thousands)
<s> <c> <c>
Assets:
- -------
Cash and due from banks $ 17,818 $ 16,394
Federal Home Loan Bank overnight deposit - 5,000
Federal funds sold 2,200 13,800
----------------------
Cash and cash equivalents 20,018 35,194
Interest bearing time deposits with other banks 100 100
Securities held to maturity 29,306 37,773
Securities available for sale 94,298 83,882
Federal Home Loan Bank stock 6,304 4,650
Loans, net 409,610 362,265
Premises & equipment 5,917 5,527
Accrued interest receivable 2,298 1,969
Goodwill 2,173 2,173
Cash surrender value of life insurance 11,884 11,548
Other assets 4,006 4,317
----------------------
Total assets $585,914 $549,398
======================
Liabilities and Stockholders' Equity:
- -------------------------------------
Deposits $415,846 $399,905
Advances from Federal Home Loan Bank 107,865 90,286
Subordinated debentures 10,310 10,310
Other liabilities 3,038 2,296
----------------------
Total liabilities 537,059 502,797
Stockholders' equity:
Common stock 41 41
Paid in capital 31,014 29,976
Retained earnings 18,998 16,459
Accumulated other comprehensive income (loss) (1,198) 125
----------------------
Total stockholders' equity 48,855 46,601
----------------------
Total liabilities and stockholders' equity: $585,914 $549,398
======================
SLADE'S FERRY BANCORP AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31,
2005 2004
----------------------
(Dollars in thousands,
except per share data)
<s> <c> <c>
Interest and dividend income:
Interest and fees on loans $6,247 $5,202
Interest and dividends on investments 1,387 1,363
Other interest 57 54
------------------
Total interest and dividend income 7,691 6,619
------------------
Interest expense:
Interest on deposits 1,796 1,255
Interest on other borrowed funds 1,147 794
Interest on subordinated debentures 180 134
------------------
Total interest expense 3,123 2,183
------------------
Net interest and dividend income 4,568 4,436
Provision for loan losses 58 -
------------------
Net interest and dividend income after
provision for loan losses 4,510 4,436
------------------
Noninterest income:
Service charges on deposit accounts 79 116
Overdraft service charges 212 114
Gain on sale of assets (17) -
Gain on sale of mortgages (1) -
Gain (loss) on sales and calls of
available-for-sale securities, net 2 (51)
Other income 334 350
------------------
Total noninterest income 609 529
------------------
Noninterest expense:
Salaries and employee benefits 1,820 1,613
Occupancy expense 229 182
Equipment expense 198 146
Other expenses 1,029 950
------------------
Total noninterest expense 3,276 2,891
------------------
Income before income taxes 1,843 2,074
Income taxes 671 744
------------------
Net income $1,172 $1,330
==================
Basic earnings per share $ 0.28 $ 0.32
==================
Diluted earnings per share $ 0.28 $ 0.32
==================
SLADE'S FERRY BANCORP AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31,
2005 2004
--------------------
(Dollars in thousands,
except per share data)
<s> <c> <c>
Interest and dividend income:
Interest and fees on loans $23,184 $20,263
Interest and dividends on investments 5,462 3,569
Other interest 273 274
--------------------
Total interest and dividend income 28,919 24,106
--------------------
Interest expense:
Interest on deposits 6,084 4,982
Interest on other borrowed funds 4,274 2,594
Interest on subordinated debentures 637 370
--------------------
Total interest expense 10,995 7,946
--------------------
Net interest and dividend income 17,924 16,160
Provision for loan losses 167 376
--------------------
Net interest and dividend income after
provision for loan losses 17,757 15,784
--------------------
Noninterest income:
Service charges on deposit accounts 351 520
Overdraft service charges 563 518
Gain on sale of assets 34 -
Gain on sale of mortgages 49 196
Gain (loss) on sales and calls of
available-for-sale securities, net 29 (5)
Other income 1,294 1,276
--------------------
Total noninterest income 2,320 2,505
--------------------
Noninterest expense:
Salaries and employee benefits 8,063 7,640
Occupancy expense 931 781
Equipment expense 749 564
Other expenses 4,152 3,800
--------------------
Total noninterest expense 13,895 12,785
--------------------
Income before income taxes 6,182 5,504
Income taxes 2,162 1,887
--------------------
Net income $ 4,020 $ 3,617
====================
Basic earnings per share $ 0.98 $ 0.89
====================
Diluted earnings per share $ 0.97 $ 0.88
====================