Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS FIRST QUARTER EARNINGS
SOMERSET, Mass. (April 25, 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 first quarter ended March
31, 2007 was $873,000, a decrease of 3.7% from net income for the first quarter
ended March 31, 2006, which totaled $907,000. Basic and diluted earnings per
share were $0.21 and $0.22 for the quarters ended March 31, 2007 and 2006,
respectively.
Net interest and dividend income for the quarter ended March 31, 2007 was $4.2
million compared to $4.6 million for the first quarter ended March 31, 2006, a
decrease of 8.4%. Total interest and dividend income increased 9.5% to $8.6
million for the quarter ended March 31, 2007 from $7.9 million for the quarter
ended March 31, 2006. Total interest expense increased 34.3% from $3.3 million
to $4.4 million during this same time period. There was no loan loss provision
in the quarter ended March 31, 2007 compared to a $39,000 provision in the
quarter ended March 31, 2006. In addition, non interest income increased 3.3%
while non interest expense decreased 5.2% for the quarter ended March 31, 2007
compared to the same period in 2006.
Total consolidated assets increased from $607.8 million at December 31, 2006 to
$609.0 million at March 31, 2007. Net loans increased 1.6% from $422.4 million
at December 31, 2006 to $429.2 million at March 31, 2007. Deposits decreased
from $424.0 million at December 31, 2006 to $409.9 million at March 31, 2007, a
decrease of 3.3%. During the same time, the Bank increased its level of Federal
Home Loan Bank advances from $119.1 million at December 31, 2006 to $134.7
million at March 31, 2007, an increase of 13.1%.
"We're staying competitive in a difficult environment while turning a profit,"
reported President and CEO Mary Lynn D. Lenz. "I'm proud of the effort that our
team is putting forth. We're staying focused on sales and customer service."
Total stockholders' equity at March 31, 2007 was $50.9 million compared to
$51.2 million at December 31, 2006. The decrease was primarily attributable to
share buybacks under the Company's stock repurchase plan as well as the
repurchase of shares to fund possible restricted stock awards. Book value per
share was $12.59 at March 31, 2007 as compared to $12.49 at December 31, 2006.
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
20, 2007, which was paid on April 20, 2007.
Slade's Ferry Bancorp was founded to serve community-banking needs with both
personal and commercial products and services. With $609 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.sladesbank.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, 2007 December 31, 2006
-------------- -----------------
Assets (In thousands)
- ------
Cash and due from banks $ 16,225 $ 19,448
Interest-bearing demand deposits with other banks 1,062 1,007
Federal funds sold 2,300 1,900
-------- --------
Cash and cash equivalents 19,587 22,355
Interest-bearing certificates of deposit with other banks 100 100
Securities available for sale 103,695 105,603
Securities held to maturity 22,561 24,623
Federal Home Loan Bank stock, at cost 6,953 6,856
Loans, net 429,224 422,370
Premises and equipment, net 5,963 5,587
Goodwill 2,173 2,173
Accrued interest receivable 2,429 2,311
Bank-owned life insurance 12,423 12,317
Other assets 3,861 3,465
-------- --------
$608,969 $607,760
======== ========
Liabilities and Stockholders' Equity
- ------------------------------------
Deposits:
Noninterest-bearing $ 71,397 $ 79,101
Interest-bearing 338,524 344,905
-------- --------
Total deposits
409,921 424,006
Short-term borrowings 4,700 -
Long-term borrowings 129,961 119,058
Subordinated debentures 10,310 10,310
Accrued expenses and other liabilities 3,215 3,141
-------- --------
Total liabilities 558,107 556,515
Stockholders' equity:
Common stock 42 41
Additional paid-in capital 30,578 31,444
Retained earnings 21,606 21,111
Accumulated other comprehensive loss (252) (464)
Unearned compensation (1,112) (887)
-------- --------
Total stockholders' equity 50,862 51,245
-------- --------
$608,969 $607,760
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Three Months Ended March 31,
2007 2006
------ ------
(In thousands, except per share data)
Interest and dividend income:
Interest and fees on loans $6,922 $6,435
Interest and dividends on securities 1,632 1,402
Other interest 46 19
------ ------
Total interest and dividend income 8,600 7,856
------ ------
Interest expense:
Interest on deposits 2,689 1,911
Interest on Federal Home Loan Bank advances 1,519 1,156
Interest on subordinated debentures 211 224
------ ------
Total interest expense 4,419 3,291
------ ------
Net interest and dividend income 4,181 4,565
Provision for loan losses - 39
------ ------
Net interest income, after provision for loan losses 4,181 4,526
Noninterest income:
Service charges on deposit accounts 328 307
Gain on sales and calls of available-for-sale securities, net 61 3
Other income 337 393
------ ------
Total noninterest income 726 703
------ ------
Noninterest expense:
Salaries and employee benefits 1,997 2,111
Occupancy and equipment expense 492 493
Other expense 1,067 1,146
------ ------
Total noninterest expense 3,556 3,750
------ ------
Income before income taxes 1,351 1,479
Provision for income taxes 478 572
------ ------
Net income $ 873 $ 907
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Earnings per share:
Basic $ 0.21 $ 0.22
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Diluted $ 0.21 $ 0.22
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