Exhibit 99.1
[LETTERHEAD OF THE FIRST NATIONAL BANK OF IPSWICH]
FOR IMMEDIATE RELEASE Contact: Joanne Lattanzi
First National Bank of Ipswich
(978) 356-8105
Alexander Caswell
Regan Communications
(617) 488-2885
First Ipswich Bancorp Announces Earnings
Ipswich, MA, May 13, 2005 - First Ipswich Bancorp (OTC: FIWC), the bank holding
company for The First National Bank of Ipswich, today announced earnings for the
quarter ended March 31, 2005.
The Company reported assets of $387.2 million, which represents growth of $57
million, or 17.3%, since March 31, 2004. Net loans increased $13.3 million, or
8.3%, to $172.6 million. Deposits increased $37.9 million, or 19.5%, to $232.4
million. Net income for the quarter-ended March 31, 2005 was $146,000 compared
to $353,000 for the quarter-ended March 31, 2004. Basic and diluted earnings per
share for the quarter-ended March 31, 2005 were both $0.07 per share.
Commenting on the Company's results, Donald P. Gill, President and Chief
Executive Officer, stated, "We are pleased to report $390,000 of investment
advisory fees in the first quarter of 2005 as a result of the investment
management company acquisition at year-end 2004. We are also excited by the
business opportunities and earnings that we anticipate as a result of the
opening of the loan production office in Portsmouth, New Hampshire this quarter
and the Boston branch acquisition, which is scheduled to close in June. These
new business activities are expected to enhance earnings." Mr. Gill also stated,
"Although pre-tax income declined 73 percent from the same quarter in 2004,
primarily due to the impact of our branch expansion in 2004 and a reduction of
58 basis points in the net interest margin from the same quarter in 2004, we
anticipate higher earnings in 2005, primarily due to the Boston branch
acquisition and a full year of earnings from the investment management company."
Financial Highlights (un-audited)
Three months ended March 31,
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2005 2004
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(In thousands, except per share data)
Net income $ 146 $ 353
Earnings per share:
Basic $ 0.07 $ 0.20
Diluted $ 0.07 $ 0.19
Weighted average shares
outstanding:
Basic 2,220 1,758
Diluted 2,220 1,819
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First Ipswich Bancorp is the bank holding company of The First National Bank of
Ipswich, a national banking institution established in 1892. Headquartered in
Ipswich, Massachusetts, approximately 25 miles northeast of Boston, The First
National Bank of Ipswich operates twelve full-service offices in Ipswich,
Gloucester, Essex, Newburyport, Rowley, Beverly and Cambridge, Massachusetts,
and Londonderry, Manchester, Newington and Salem, New Hampshire. The First
National Bank of Ipswich offers a wide array of personal and commercial banking
products and services.
This press release may contain "forward-looking statements". Words such as
"intends," "believes", "expects," "may," "will," "should," "contemplates," or
"anticipates" may indicate forward-looking statements. There are a number of
important factors that could cause the Company's actual results to differ
materially from those contemplated by such forward-looking statements. These
important factors include, without limitation, competitive conditions in the
Bank's marketplace generally, the effect of the Bank's proposed acquisition of
the Boston branch of Atlantic Bank of New York, the Bank's continued ability to
originate quality loans, fluctuation in interest rates including fluctuations
which may affect the Bank's interest rate spread, real estate conditions in the
Bank's lending areas, changes in the securities or financial markets, changes in
loan defaults and charge-off rates, general and local economic conditions, the
Bank's continued ability to attract and retain deposits, the Company's ability
to control costs, new accounting pronouncements, and changing regulatory
requirements. The Company undertakes no obligation to publicly release the
results of any revisions to those forward-looking statements, which may be made
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
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