Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS 2006 ANNUAL EARNINGS
SOMERSET, Mass. (February 1, 2007) -- 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,
2006 was $3.6 million, a decrease of 10.0% from net income for the year ended
December 31, 2005, which totaled $4.0 million. Basic earnings per share totaled
$0.87 and $0.98 for the years ended December 31, 2006 and 2005, respectively.
Diluted earnings per share totaled $0.87 and $0.97 for the years ended December
31, 2006 and 2005, respectively, also representing a decrease of 10.3%.
Net income for the three months ended December 31, 2006 totaled $1.0 million,
or $0.25 per share (basic and diluted), as compared to $1.2 million or $0.28
per share (basic and diluted), for the three months ended December 31, 2005.
The primary reason for the decrease in earnings for the year was the flat or
inverted yield curve that persisted throughout calendar year 2006. The inverted
yield curve equates to a decreased net interest margin which is the primary
source of the Company's earnings. As a result, net interest and dividend income
remained relatively flat at $18.1 million for the year ended December 31, 2006
as compared to $17.9 million for the year ended December 31, 2005. Net interest
and dividend income decreased by 2.8% from $4.6 million for the three months
ended December 31, 2005, to $4.4 million for the three months ended December 31,
2006.
Total consolidated assets increased from $585.9 million at December 31, 2005 to
$607.7 million at December 31, 2006, an increase of 3.7%. Net loans increased
3.1% from $409.6 million at December 31, 2005 to $422.4 million at December 31,
2006. Deposits increased from $415.8 million at December 31, 2005 to $424.0
million at December 31, 2006, an increase of 2.0%. During the same time, the
Bank increased its level of Federal Home Loan Bank advances from $107.9 million
at December 31, 2005 to $119.1 million at December 31, 2006, an increase of
10.4%.
"We were pleased to have been able to deliver a very favorable profit in spite
of the inverted yield curve and the intense competition for deposits," said
President and CEO Mary Lynn Lenz. "The fact that we were able to grow our
balance sheet and position ourselves to take advantage of the situation once
the yield curve normalizes speaks to the efforts of our dedicated Board and
employee workforce."
Total stockholders' equity at December 31, 2006 was $51.2 million compared to
$48.9 million at December 31, 2005, an increase of 4.9%. Book value per share
was $12.49 at December 31, 2006 as compared to $11.82 at December 31, 2005, an
increase of 5.7%. 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
January 3, 2007, which was paid on January 19, 2007.
Slade's Ferry Bancorp was founded to serve community-banking needs with both
personal and commercial products and services. With more than $608 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)
December 31,
----------------------
2006 2005
-------- --------
Assets (In thousands)
- ------
Cash and due from banks $ 19,448 $ 17,232
Interest-bearing demand deposits with other banks 1,007 586
Federal funds sold 1,900 2,200
-------- --------
Cash and cash equivalents 22,355 20,018
Interest-bearing certificates of deposit
with other banks 100 100
Securities available for sale 105,603 94,298
Securities held to maturity 24,623 29,306
Federal Home Loan Bank stock, at cost 6,856 6,304
Loans, net 422,370 409,610
Premises and equipment, net 5,587 5,917
Goodwill 2,173 2,173
Accrued interest receivable 2,311 2,298
Bank-owned life insurance 12,317 11,884
Other assets 3,465 4,006
-------- --------
$607,760 $585,914
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Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $ 79,101 $ 80,705
Interest-bearing 344,905 335,141
-------- --------
Total deposits 424,006 415,846
Short-term borrowings - 7,000
Long-term borrowings 119,058 100,865
Subordinated debentures 10,310 10,310
Accrued expenses and other liabilities 3,141 3,038
-------- --------
Total liabilities 556,443 537,059
Stockholders' equity:
Common stock 42 41
Additional paid-in capital 31,443 31,014
Retained earnings 21,111 18,998
Accumulated other comprehensive loss (464) (1,198)
Unearned compensation (887) -
-------- --------
Total stockholders' equity 51,245 48,855
-------- --------
$607,760 $585,914
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Three Months Ended
December 31,
2006 2005
------ ------
(In thousands, except
per share data)
Interest and dividend income:
Interest and fees on loans $7,066 $6,247
Interest and dividends on securities 1,656 1,387
Other interest 99 57
------ ------
Total interest and dividend income 8,821 7,691
Interest expense:
Interest on deposits 2,741 1,796
Interest on Federal Home Loan Bank advances 1,425 1,147
Interest on subordinated debentures 217 180
------ ------
Total interest expense 4,383 3,123
------ ------
Net interest and dividend income
4,438 4,568
Provision for loan losses - 58
------ ------
Net interest income, after provision for loan losses
4,438 4,510
Noninterest income:
Service charges on deposit accounts 362 291
Gain on sales and calls of available-for-sale
securities, net 35 2
Gain on sales of loans - (1)
Other income 370 317
------ ------
Total noninterest income 767 609
Noninterest expense:
Salaries and employee benefits 1,645 1,820
Occupancy and equipment expense 488 427
Other expense 1,329 1,029
------ ------
Total noninterest expense 3,462 3,276
------ ------
Income before income taxes 1,743 1,843
Provision for income taxes 700 671
------ ------
Net income $1,043 $1,172
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Earnings per share:
Basic $ 0.25 $ 0.28
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Diluted $ 0.25 $ 0.28
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Twelve Months Ended
December 31,
2006 2005
------- -------
(In thousands, except
per share data)
Interest and dividend income:
Interest and fees on loans $27,263 $23,184
Interest and dividends on securities 5,904 5,463
Other interest 234 272
------- -------
Total interest and dividend income 33,401 28,919
Interest expense:
Interest on deposits 9,524 6,084
Interest on Federal Home Loan Bank advances 4,986 4,274
Interest on subordinated debentures 828 637
------- -------
Total interest expense 15,338 10,995
------- -------
Net interest and dividend income 18,063 17,924
Provision for loan losses 39 167
------- -------
Net interest income, after provision for loan losses 18,024 17,757
Noninterest income:
Service charges on deposit accounts 1,394 914
Gain (loss) on sales and calls of
available-for-sale securities, net (116) 29
Gain on sales of loans - 49
Other income 1,469 1,328
------- -------
Total noninterest income 2,747 2,320
Noninterest expense:
Salaries and employee benefits 8,087 8,063
Occupancy and equipment expense 1,950 1,680
Other expense 4,866 4,153
------- -------
Total noninterest expense 14,903 13,896
------- -------
Income before income taxes 5,868 6,181
Provision for income taxes 2,249 2,161
------- -------
Net income $ 3,619 $ 4,020
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Earnings per share:
Basic $ 0.87 $ 0.98
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Diluted $ 0.87 $ 0.97
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