Exhibit 99.1
CONTACTS: Mary K. Talbot
(401) 245-8819
SLADE'S FERRY BANCORP REPORTS THIRD QUARTER EARNINGS
SOMERSET, Mass. (October 19, 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 September 30,
2007 was $832,000, a decrease of 20.2% from net income for the quarter ended
September 30, 2006, which totaled $1.0 million. Basic and diluted earnings per
share were $0.21 and $0.25 for the quarters ended September 30, 2007 and 2006,
respectively. For the nine months ended September 30, 2007, net income was $2.5
million, a decrease of 3.1% from net income for the nine months ended September
30, 2006, which totaled $2.6 million. Basic and diluted earnings per share was
$0.62 for the nine months ended September 30, 2007 and 2006.
Total interest and dividend income increased from $8.7 million for the quarter
ended September 30, 2006 to $9.0 million for the quarter ended September 30,
2007, an increase of 3.5%, primarily as a result of commercial loan growth. For
the nine months ended September 30, 2007, total interest and dividend income
was $26.5 million, compared to $24.6 million for the nine months ended
September 30, 2006, an increase of 7.9%, also attributable to commercial loan
growth.
Net interest and dividend income was $4.4 million for the quarter ended
September 30, 2007, compared to $4.7 million for the quarter ended September
2006, a decrease of 4.7%. Net interest and dividend income for the nine months
ended September 30, 2007 was $13.0 million, compared to $13.6 million for the
nine months ended September 30, 2006, a decrease of 4.6%. Total interest
expense increased 12.9%, from $4.0 million for the quarter ended September 30,
2006 to $4.5 million for the quarter ended September 30, 2007. Total interest
expense increased 23.5%, from $11.0 million for the nine months ended September
30, 2006 to $13.5 million for the nine months ended September 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, to fund loan growth. Due to the growth and change in the composition
of the loan portfolio as well as a slight deterioration of credit quality,
management deemed it prudent to provide $170,000 for possible loan losses for
the quarter ended September 30, 2007 as compared to no provision for the quarter
ended September 30, 2006.
Non interest income increased 49.9% for the quarter ending September 30, 2007,
from $732,000 to $1.1 million, due to an increase in gain on sale of
securities, which increased from $19,000 for the third quarter of 2006 to
$377,000 for the third quarter of 2007. Management is utilizing cash from
investment sales and maturities, in addition to increased borrowings, to
support loan growth. Non interest income was $2.6 million for the nine months
ended September 30, 2007 compared to $2.0 million, an increase of 33.2%. The
Bank repositioned its investment portfolio in June of 2006, recognizing net
losses on the sale of securities of $150,000 for the nine months ended
September 30, 2006, as compared to net gains on the sale of securities of
$516,000 for the nine months ended September 30, 2007. Non-interest expense
increased 10.3% for the quarter ended September 30, 2007 compared to the same
period in 2006, primarily due to increased salary and benefit accruals related
to the implementation of certain account balance retirement plans and stock
awards. Non-interest expense increased 2.0% for the nine months ended September
30, 2007 compared to the same period in 2006.
Total consolidated assets increased from $607.8 million at December 31, 2006 to
$609.2 million at September 30, 2007. Net loans increased 5.4% from $422.4
million at December 31, 2006 to $445.1 million at September 30, 2007. Deposits
decreased 5.7%, from $424.0 million at December 31, 2006 to $399.8 million at
September 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
$144.3 million at September 30, 2007, an increase of 21.2%.
Total stockholders' equity at September 30, 2007 was $51.4 million compared to
$51.2 million at December 31, 2006. Common stock issued and outstanding is
4,009,353 shares at September 30, 2007, and 4,102,242 shares at December 31,
2006, a decrease of 92,889 shares. The decrease in outstanding shares is due to
several transactions, including the repurchase of 121,831 shares of common
stock under our stock repurchase program and the purchase of 12,723 shares for
our stock award plan, offset by the issuance of 15,665 shares under the
Company's dividend reinvestment plan, the exercise of 18,000 stock options and
the vesting of 8,000 restricted shares. Book value per share was $12.83 at
September 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
October 2, 2007, which will be paid on October 19, 2007.
On October 11, 2007, Independent Bank Corp., parent of Rockland Trust Company,
and the Company jointly announced the signing of a definitive merger agreement
by which Independent Bank Corp. will acquire the Company and the Bank will
merge into Rockland Trust. Mary Lynn D. Lenz, President and CEO of the Company
noted. "Rockland Trust has always been committed to serving the local community
and offering personalized service and competitive products. Our customers will
benefit from the strength that Rockland Trust offers and can look forward to an
even greater range of products and services."
Slade's Ferry Bancorp was founded to serve community-banking needs with both
personal and commercial products and services. 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; (5) the impact of the
proposed acquisition of the Company by Independent Bank Corp. and (6) 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)
September 30, 2007 December 31, 2006
------------------ -----------------
Assets (In thousands)
- ------
Cash and due from banks $ 11,390 $ 19,448
Interest-bearing demand deposits with other banks 550 1,007
Federal funds sold 9,535 1,900
-------- --------
Cash and cash equivalents 21,475 22,355
Interest-bearing certificates of deposit with other banks 100 100
Securities available for sale 86,422 105,603
Securities held to maturity 20,673 24,623
Federal Home Loan Bank stock, at cost 7,644 6,856
Loans, net 445,099 422,370
Premises and equipment, net 7,522 5,587
Goodwill 2,173 2,173
Accrued interest receivable 2,466 2,311
Bank-owned life insurance 12,548 12,317
Other assets 3,090 3,465
-------- --------
$609,212 $607,760
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Liabilities and Stockholders' Equity
- ------------------------------------
Deposits:
Noninterest-bearing $ 75,231 $ 79,101
Interest-bearing 324,555 344,905
-------- --------
Total deposits 399,786 424,006
Short-term borrowings 5,000 -
Long-term borrowings 139,279 119,058
Subordinated debentures 10,310 10,310
Accrued expenses and other liabilities 3,394 3,141
-------- --------
Total liabilities 557,769 556,515
Stockholders' equity:
Common stock 40 41
Additional paid-in capital 30,016 31,444
Retained earnings 22,489 21,111
Accumulated other comprehensive loss (158) (464)
Unearned compensation (944) (887)
-------- --------
Total stockholders' equity 51,443 51,245
-------- --------
$609,212 $607,760
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Three Months Ended September 30,
2007 2006
------ ------
(In thousands, except per share data)
Interest and dividend income:
Interest and fees on loans $7,246 $7,077
Interest and dividends on securities 1,568 1,562
Other interest 180 54
------ ------
Total interest and dividend income 8,994 8,693
------ ------
Interest expense:
Interest on deposits 2,639 2,616
Interest on Federal Home Loan Bank advances 1,693 1,196
Interest on subordinated debentures 217 217
------ ------
Total interest expense 4,549 4,029
------ ------
Net interest and dividend income 4,445 4,664
Provision for loan losses 170 -
------ ------
Net interest income, after provision for loan losses 4,275 4,664
Noninterest income:
Service charges on deposit accounts 349 373
Gain on sales and calls of available-for-sale securities, net 377 19
Other income 371 340
------ ------
Total noninterest income 1,097 732
------ ------
Noninterest expense:
Salaries and employee benefits 2,411 2,044
Occupancy and equipment expense 499 478
Other expense 1,213 1,216
------ ------
Total noninterest expense 4,123 3,738
------ ------
Income before income taxes 1,249 1,658
Provision for income taxes 417 615
------ ------
Net income $ 832 $1,043
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Earnings per share:
Basic $ 0.21 $ 0.25
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Diluted $ 0.21 $ 0.25
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Slade's Ferry Bancorp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
Nine Months Ended September 30,
2007 2006
------- -------
(In thousands, except per share data)
Interest and dividend income:
Interest and fees on loans $21,320 $20,197
Interest and dividends on securities 4,793 4,247
Other interest 420 136
------- -------
Total interest and dividend income 26,533 24,580
------- -------
Interest expense:
Interest on deposits 8,030 6,783
Interest on Federal Home Loan Bank advances 4,862 3,561
Interest on subordinated debentures 642 612
------- -------
Total interest expense 13,534 10,956
------- -------
Net interest and dividend income 12,999 13,624
Provision for loan losses 170 39
------- -------
Net interest income, after provision for loan losses 12,829 13,585
Noninterest income:
Service charges on deposit accounts 1,030 1,032
Gain (loss) on sales and calls of available-for-sale securities, net 516 (150)
Other income 1,093 1,099
------- -------
Total noninterest income 2,639 1,981
------- -------
Noninterest expense:
Salaries and employee benefits 6,424 6,442
Occupancy and equipment expense 1,497 1,461
Other expense 3,748 3,537
------- -------
Total noninterest expense 11,669 11,440
------- -------
Income before income taxes 3,799 4,126
Provision for income taxes 1,302 1,550
------- -------
Net income $ 2,497 $ 2,576
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Earnings per share:
Basic $ 0.62 $ 0.62
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Diluted $ 0.62 $ 0.62
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