Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS SECOND QUARTER EARNINGS
SOMERSET, Mass. (July 20, 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 quarter ended June 30, 2007
was $792,000, an increase of 26.5% from net income for the quarter ended June
30, 2006, which totaled $626,000. Basic and diluted earnings per share were
$0.20 and $0.15 for the quarters ended June 30, 2007 and 2006, respectively.
For the six months ended June 30, 2007, net income was $1.7 million, an
increase of 8.6% from net income for the six months ended June 30, 2006, which
totaled $1.5 million. Basic and diluted earnings per share were $0.41 and $0.37
the six months ended June 30, 2007 and 2006, respectively.
Total interest and dividend income increased from $8.0 million for the quarter
ended June 30, 2006 to $8.9 million for the quarter ended June 30, 2007, an
increase of $11.3%, primarily as a result of commercial construction loan
growth. In addition, Federal Home Loan Bank dividend income increased $115,000
for the quarter ended June 30, 2007, compared to the quarter ended June 30,
2006. For the six months ended June 30, 2007, total interest and dividend
income was $17.5 million, compared to $15.9 million for the six months ended
June 30, 2006, an increase of 10.4%.
Net interest and dividend income was $4.4 million for the quarters ended June
30, 2007 and 2006. Net interest and dividend income for the six months ended
June 30, 2007 was $8.6 million, compared to $9.0 million for the six months
ended June 30, 2006, a decrease of 4.5%. Total interest expense increased
25.6%, from $3.6 million for the quarter ended June 30, 2006 to $4.6 million
for the quarter ended June 30, 2007. Total interest expense increased 29.7%,
from $6.9 million for the six months ended June 30, 2006 to $9.0 million for
the six months ended June 30, 2007. Due to the challenging interest rate
environment, management's strategy is to utilize alternative funding sources,
including increased Federal Home Loan Bank borrowings and brokered certificates
of deposit. In addition, non interest income increased 23.4%. The bank
repositioned its investment portfolio in the second quarter of 2006,
recognizing net losses on the sale of securities of $169,000 for the six months
ended June 30, 2006, as compared to net gains of on the sale of securities of
$139,000 for the six months ended June 30, 2007. Non-interest expense decreased
2.0% for the six months ended June 30, 2007 compared to the same period in
2006.
Total consolidated assets increased from $607.8 million at December 31, 2006 to
$628.3 million at June 30, 2007. Net loans increased 1.8% from $422.4 million
at December 31, 2006 to $429.8 million at June 30, 2007. Deposits increased
from $424.0 million at December 31, 2006 to $425.6 million at June 30, 2007.
During the same time, the Bank increased its level of Federal Home Loan Bank
advances from $119.1 million at December 31, 2006 to $137.9 million at June 30,
2007, an increase of 15.8%.
"We're staying competitive in a difficult interest rate environment," reported
President and CEO Mary Lynn D. Lenz. "We have successfully launched our
rebranding initiative this quarter thanks to the efforts of our team and board
of directors."
Total stockholders' equity at June 30, 2007 was $50.8 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 future restricted stock awards. Book value per share was $12.60
at June 30, 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
July 2, 2007, which will be paid on July 20, 2007.
Slade's Ferry Bancorp was founded to serve community-banking needs with both
personal and commercial products and services. With $628 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)
June 30, 2007 December 31, 2006
------------- -----------------
Assets (In thousands)
- ------
Cash and due from banks $ 12,569 $ 19,448
Interest-bearing demand deposits with other banks 1,648 1,007
Federal funds sold 25,585 1,900
-------- --------
Cash and cash equivalents
39,802 22,355
Interest-bearing certificates of deposit with other banks 100 100
Securities available for sale 102,227 105,603
Securities held to maturity 21,781 24,623
Federal Home Loan Bank stock, at cost 7,312 6,856
Loans, net 429,773 422,370
Premises and equipment, net 6,710 5,587
Goodwill 2,173 2,173
Accrued interest receivable 2,269 2,311
Bank-owned life insurance 12,537 12,317
Other assets 3,636 3,465
-------- --------
$628,320 $607,760
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Liabilities and Stockholders' Equity
- ------------------------------------
Deposits:
Noninterest-bearing $ 73,715 $ 79,101
Interest-bearing 351,933 344,905
-------- --------
Total deposits
425,648 424,006
Short-term borrowings - -
Long-term borrowings 137,867 119,058
Subordinated debentures 10,310 10,310
Accrued expenses and other liabilities 3,732 3,141
-------- --------
Total liabilities
577,557 556,515
Stockholders' equity:
Common stock 42 41
Additional paid-in capital 30,445 31,444
Retained earnings 22,018 21,111
Accumulated other comprehensive loss (630) (464)
Unearned compensation (1,112) (887)
-------- --------
Total stockholders' equity 50,763 51,245
-------- --------
$628,320 $607,760
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Three Months Ended June 30,
2007 2006
------ ------
(In thousands, except per share data)
Interest and dividend income:
Interest and fees on loans $7,152 $6,685
Interest and dividends on securities 1,594 1,282
Other interest 193 63
------ ------
Total interest and dividend income 8,939 8,030
------ ------
Interest expense:
Interest on deposits 2,702 2,256
Interest on Federal Home Loan Bank advances 1,650 1,209
Interest on subordinated debentures 214 170
------ ------
Total interest expense 4,566 3,635
------ ------
Net interest and dividend income 4,373 4,395
Provision for loan losses - -
------ ------
Net interest income, after provision for loan losses 4,373 4,395
Noninterest income:
Service charges on deposit accounts 353 352
Gain (loss) on sales and calls of available-for-sale securities, net 78 (172)
Other income 385 366
------ ------
Total noninterest income 816 546
------ ------
Noninterest expense:
Salaries and employee benefits 2,016 2,287
Occupancy and equipment expense 506 490
Other expense 1,468 1,175
------ ------
Total noninterest expense 3,990 3,952
------ ------
Income before income taxes 1,199 989
Provision for income taxes 407 363
------ ------
Net income $ 792 $ 626
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Earnings per share:
Basic $ 0.20 $ 0.15
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Diluted $ 0.20 $ 0.15
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Six Months Ended June 30,
2007 2006
------- -------
(In thousands, except per share data)
Interest and dividend income:
Interest and fees on loans $14,074 $13,120
Interest and dividends on securities 3,226 2,684
Other interest 239 82
------- -------
Total interest and dividend income 17,539 15,886
------- -------
Interest expense:
Interest on deposits 5,391 4,167
Interest on Federal Home Loan Bank advances 3,169 2,365
Interest on subordinated debentures 425 394
------- -------
Total interest expense 8,985 6,926
------- -------
Net interest and dividend income 8,554 8,960
Provision for loan losses - 39
------- -------
Net interest income, after provision for loan losses 8,554 8,921
Noninterest income:
Service charges on deposit accounts 681 659
Gain (loss) on sales and calls of available-for-sale securities, net 139 (169)
Other income 721 759
------- -------
Total noninterest income 1,541 1,249
------- -------
Noninterest expense:
Salaries and employee benefits 4,013 4,398
Occupancy and equipment expense 998 983
Other expense 2,534 2,321
------- -------
Total noninterest expense 7,545 7,702
------- -------
Income before income taxes 2,550 2,468
Provision for income taxes 885 935
------- -------
Net income $ 1,665 $ 1,533
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Earnings per share:
Basic $ 0.41 $ 0.37
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Diluted $ 0.41 $ 0.37
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