Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Lewis Foulke, SVP & CFO
Carol Jones, VP, Marketing
First Washington FinancialCorp
(609) 426-1000
FIRST WASHINGTON FINANCIALCORP REPORTS SECOND QUARTER EARNINGS
(Windsor, N.J.)--First Washington FinancialCorp (NASDAQ: "FWFC"), parent company
of First Washington State Bank reported earnings for the 6 months ending June
30, 2004 of $2.68 million This represents an increase of $169 thousand or 6.72%
when compared with net income of $2.51 million for the first six months of 2003.
The second quarter earnings reflect $148 thousand in expense incurred in
connection with the proposed merger with Fulton Financial Corporation. Without
this expense, net of taxes, net income would have been $2.77 million for the six
months ended June 30, 2004, an increase of $260 thousand or 10.44% when compared
with the first six months of 2003.
Earnings per basic and diluted share were $0.63 and $0.58, respectively,
increases of 6.44% and 2.11% respectively, when compared to the $0.59 per basic
and $0.57 per diluted share reported for the first six months of 2003. Per share
figures have been restated for the 5% stock dividend paid in the fourth quarter
of 2003 and the 5 for 4 stock split in March 2004.
Total assets at June 30, 2004 increased to $474.41 million, a 13.90% or $57.90
million increase over total assets at June 30, 2003. Total loans increased
$26.26 million, or 13.17%, to $225.67 million and total deposits increased $55.0
million, or 15.55%, to $408.71 million compared to June 30, 2003.
"We are pleased with our financial growth for the first six months of the year,"
said C. Herbert Schneider, President & CEO. "The Directors, Officers, and Staff
of First Washington State Bank continue to put forth the effort needed to
provide products and services to enhance the growth of our company."
"The second quarter of this year was an eventful period for us. In June, First
Washington FinancialCorp announced the signing of a definitive agreement to
merge with Fulton Financial Corporation; in April; The Lawrenceville Office,
First Washington State Bank's 5th in-store office opened; and on-line banking
was offered to our retail customers," said Abraham S. Opatut, Chairman of the
Board.
First Washington FinancialCorp is the holding company for First Washington State
Bank. In addition, First Washington FinancialCorp, through the Bank, is a joint
venture partner in Windsor Title Agency, LP, a general title agency located in
Lakewood, New Jersey. First Washington State Bank maintains headquarters in
Windsor, New Jersey. The Bank currently has 16 branch offices located in Mercer,
Monmouth and Ocean Counties and is celebrating its 15th Anniversary. For more
information on First Washington FinancialCorp call (800) 992-FWSB or visit the
First Washington State Bank's web site at www.FWSB.com.
FIRST WASHINGTON FINANCIALCORP
Consolidated Statements of Income
(unaudited)
For the six months ended
June 30,
2004 2003
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INTEREST INCOME
Loans, including fees $ 7,147,410 $ 6,973,178
Investment and mortgage-backed securities
Taxable securities 2,218,581 2,030,447
Tax exempt securities 1,320,373 1,050,123
Federal funds sold 48,419 109,243
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Total interest income 10,734,783 10,162,991
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INTEREST EXPENSE
Deposits 2,728,033 2,868,187
Borrowed funds 196,752 192,717
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Total interest expense 2,924,785 3,060,904
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Net interest income 7,809,998 7,102,087
PROVISION FOR LOAN LOSSES - 180,000
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Net interest income after provision for loan losses 7,809,998 6,922,087
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NON-INTEREST INCOME
Service fees on deposit accounts 583,639 706,561
Other service charges and fees 68,797 82,876
Net gains on sale of investment and mortgage-backed
securities 311,876 301,378
Fee income on sales of mortgages 147,670 463,295
Other 91,217 87,210
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Total non-interest income 1,203,199 1,641,320
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NON-INTEREST EXPENSE
Salaries 2,655,317 2,401,600
Employee benefits 530,003 529,281
Occupancy expense 671,792 571,609
Other 1,746,850 1,762,411
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Total non-interest expense 5,603,962 5,264,901
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Income before income tax expense 3,409,235 3,298,506
INCOME TAX EXPENSE 734,000 791,800
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NET INCOME $ 2,675,235 $ 2,506,706
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PER SHARE DATA
NET INCOME - BASIC $ 0.63 $ 0.59
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NET INCOME - DILUTED $ 0.58 $ 0.57
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