Exibit 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 12, 2006 - 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, 2006.
The Company reported a net loss of $183,000 for the quarter ended March 31, 2006
as compared to net income of $146,000 for the quarter ended March 31, 2005. Net
interest income increased to $2.8 million in the first quarter of 2006 as
compared to $2.7 million in the same quarter of 2005. The improvement of net
interest income is primarily attributable to the shift of assets from the
investment portfolio into loans. The shift of assets was made possible by the
Company's purchase in June 2005 of the Boston branch of the Atlantic Bank of New
York and approximately $43 million of loans associated with the branch. However,
the increased level of expenses associated with the purchased branch as well as
other overhead expenses more than offset the positive trend of net interest
income. Basic and diluted earnings (loss) per share for the quarters ended March
31, 2006 and March 31, 2005 were $(0.08) per share and $0.07 per share,
respectively.
The Company reported assets of $397.9 million, which represents growth of $3.45
million since December 31, 2005 and $10.6 million since March 31, 2005. Net
loans increased by $3.1 million during the quarter to $237.7 million as of March
31, 2006; during the year ended March 31, 2006, loans increased by $65.1
million. Deposits totaled $253.1 million at March 31, 2006. Deposits decreased
by $5.7 million during the quarter ended March 31, 2006 and increased by $20.7
million during the year period since March 31, 2005. The increase in deposits
was primarily attributable to the Boston branch purchase referenced above.
Commenting on the Company's results, Donald P. Gill, President and Chief
Executive Officer, stated, "We are pleased that the Company's growth initiatives
initiated during the past two years have resulted in favorable trends of net
interest income and non-interest income." Mr. Gill also stated, "We will
continue to work diligently to control and reduce non-interest expenses so that
the positive revenue trends can positively impact net income."
Financial Highlights (un-audited)
Three months ended March 31,
-------------------------------------
2006 2005
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(In thousands, except per share data)
Net income (loss) $ (183) $ 146
Earnings (loss) per share:
Basic $ (0.08) $ 0.07
Diluted $ (0.08) $ 0.07
Weighted average shares
outstanding:
Basic 2,220 2,220
Diluted 2,220 2,220
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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 eleven full-service offices in the
Massachusetts communities of Ipswich, Gloucester, Essex, Newburyport, Rowley,
Beverly, Boston, and Cambridge, and the New Hampshire communities of Londonderry
and Portsmouth. 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 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, a deterioration in general economic conditions on a national
basis or in the local markets in which Bancorp operates, the Bank's continued
ability to attract and retain deposits, the risk that difficulties will arise in
connection with the integration of the operations of acquired businesses with
the operations of Bancorp's banking or investment management businesses, the
Company's ability to control costs, new accounting pronouncements, and the
Bank's continued ability to comply with existing and future 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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