Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS FIRST QUARTER EARNINGS
SOMERSET, Mass. (April 19, 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 quarter ended March 31,
2006 was $907,000. This represents a 17.5% decrease from net income for the
quarter ended March 31, 2005, which totaled $1.1 million. Basic and diluted
earnings per share were $0.22 and $0.27 for the quarters ended March 31,
2006 and 2005, respectively.
The decline in net income was primarily attributable to an increase in non-
interest expense. Non-interest expense increased $435,000 or 13.1% to $3.8
million for the quarter ended March 31, 2006. The increase in non-interest
expense was a result of expenses incurred from the implementation of FASB
123R, Accounting for Stock Based Compensation, investments and upgrades in
technology, professional and consulting fees and a full quarter of expenses
related to the Assonet Branch which opened in March 2005. The increase in
non-interest expense was partially offset by a $107,000 increase in non-
interest income for the quarter.
As a result of loan growth, net interest and dividend income increased from
$4.5 million for the quarter ended March 31, 2005, to $4.6 million for the
quarter ended March 31, 2006, an increase of 2.6%.
"We continue to grow our loan portfolio by meeting our customers'
expectations in this challenging interest rate environment," said President
and CEO Mary Lynn Lenz.
Total consolidated assets decreased from $585.9 million at December 31,
2005 to $584.7 million at March 31, 2006, a decrease of 0.2%. Deposits
decreased from $415.8 million at December 31, 2005 to $407.8 million at
March 31, 2006, a decrease of 1.9%. During the same time period, net loans
increased by $4.8 million, or 1.2%, to $414.4 million. In addition, the
Bank increased its level of Federal Home Loan Bank advances from $107.9
million at December 31, 2005 to $114.3 million at March 31, 2006, an
increase of 5.9%.
Total stockholders' equity at March 31, 2006 was $49.7 million compared to
$48.9 million at December 31, 2005, an increase of 1.8%. Book value per
share was $11.95 at March 31, 2006 as compared to $11.82 at December 31,
2005. 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
March 24, 2006, which was paid on April 14, 2006.
Slade's Ferry Bancorp was founded to serve community-banking needs with
both personal and commercial products and services. With approximately $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
Consolidated Balance Sheets
(Unaudited)
March 31, 2006 December 31, 2005
-------------- -----------------
Assets (In thousands)
<s> <c> <c>
Cash and due from banks $ 16,116 $ 17,782
Interest-bearing demand deposits with other banks 661 36
Federal funds sold - 2,200
-------- --------
Cash and cash equivalents 16,777 20,018
Interest-bearing certificates of deposit with other banks 100 100
Securities available for sale 92,435 94,298
Securities held to maturity 28,201 29,306
Federal Home Loan Bank stock, at cost 6,304 6,304
Loans, net 414,396 409,610
Premises and equipment, net 5,857 5,917
Goodwill 2,173 2,173
Accrued interest receivable 2,354 2,298
Bank-owned life insurance 11,991 11,884
Other assets 4,156 4,006
-------- --------
$584,744 $585,914
======== ========
Liabilities and Stockholders' Equity
- ------------------------------------
Deposits:
Noninterest-bearing $ 75,754 $ 80,705
Interest-bearing 332,035 335,141
-------- --------
Total deposits 407,789 415,846
Short-term borrowings 20,500 7,000
Long-term borrowings 93,752 100,865
Subordinated debentures 10,310 10,310
Accrued expenses and other liabilities 2,654 3,038
-------- --------
Total liabilities 535,005 537,059
Stockholders' equity:
Common stock 41 41
Additional paid-in capital 31,405 31,014
Retained earnings 19,530 18,998
Accumulated other comprehensive loss (1,237) (1,198)
-------- --------
Total stockholders' equity 49,739 48,855
-------- --------
$584,744 $585,914
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31,
2006 2005
------ ------
(In thousands, except per share data)
<s> <c> <c>
Interest and dividend income:
Interest and fees on loans $6,435 $5,266
Interest and dividends on securities 1,402 1,322
Other interest 19 69
------ ------
Total interest and dividend income 7,856 6,657
Interest expense:
Interest on deposits 1,911 1,159
Interest on Federal Home Loan Bank advances 1,156 911
Interest on subordinated debentures 224 136
------ ------
Total interest expense 3,291 2,206
------ ------
Net interest and dividend income 4,565 4,451
Provision for loan losses 39 50
------ ------
Net interest income, after provision for loan losses 4,526 4,401
Noninterest income:
Service charges on deposit accounts 307 208
Gain on sales and calls of available-for-sale securities, net 3 2
Other income 393 359
------ ------
Total noninterest income 703 569
Noninterest expense:
Salaries and employee benefits 2,111 1,975
Occupancy and equipment expense 493 409
Other expense 1,146 931
------ ------
Total noninterest expense 3,750 3,315
------ ------
Income before income taxes 1,479 1,655
Provision for income taxes 572 555
------ ------
Net income $ 907 $1,100
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Earnings per share:
Basic $ 0.22 $ 0.27
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Diluted $ 0.22 $ 0.27
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