EX-99 2 sla4-991.txt EXHIBIT 99.1 Exhibit 99.1 CONTACT: Mary K. Talbot (401) 245-8819 Slade's Ferry Bancorp Announces ------------------------------- Second Quarter Earnings ----------------------- Company reports strong growth in assets, deposits and loans SOMERSET, Mass. (July 15, 2004) -- Slade's Ferry Bancorp, (NASDAQ small cap: SFBC) parent company of Slade's Ferry Trust Company, announced earnings for the second quarter of 2004 reached $601,723. The company also said that it continued to see strong growth in deposits, assets and loans. For the second quarter of 2004, diluted earnings per share (EPS) were $0.15, compared to $0.40 for the second quarter of 2003. For the six months ended June 30, 2004, net income climbed to $1.25 million, compared to $917,516 for the same period last year. On a diluted EPS basis, earnings for the six-month period reached $0.31 compared to $0.23 for the same six-month period in 2003. Both the quarterly and six-month earnings in 2003 were impacted by a change in state legislation, which denied the deduction for dividends received from real estate investment trusts retroactively to 1999. As a result of that change, the company took a $1.28 million charge in the first quarter of 2003. In the second quarter of 2003, the company recovered approximately $642,000 of that charge as a result of negotiations with the state. The earnings for the second quarter of 2003 also were positively impacted by a recovery of $680,357 of previously provided loan loss provisions. Reported income for the second quarter of 2003 was $1.6 million. Total assets have climbed $86.0 million, or 19.6 percent, since the end of 2003, reaching $525.4 million at June 30, 2004. Total gross loans were up 8.2 percent since year-end, reaching $363.7 million at June 30, 2004 and are up 8.2% from $336.1 on December 31, 2003. Total deposits grew to $411.7 million, an increase of $78.5 million since year-end. Nearly half that growth has come in relationship accounts (checking and savings). Total checking and savings account balances have climbed $37.3 million since the end of 2003. The bank also saw strong growth in CD balances (up $25.8 million since year-end) and money market accounts, which include municipal deposits (up $15.2 million since December 31, 2003). "The banking landscape is changing in Southeastern Massachusetts," said President & CEO Mary Lynn Lenz. Because of mergers, nearly half of the banking customers on the South Coast will have a new bank by the end of the year. "We are already seeing these customers turning to Slade's Ferry as the community alternative to the big banks moving into the area," she added. The bank also continued to strengthen its product offerings during the quarter, as it works to attract both personal and business customers. The bank introduced cash management services for business customers and a state- of-the-art internet banking product. Total stockholders' equity at June 30, 2004 was $43.6 million versus $42.7 million at December 31, 2003, an increase of 2.1 percent, or approximately $891,000. Both the company and the bank maintain capital levels sufficient to be considered "well-capitalized" under applicable regulatory capital guidelines and requirements. The Board of Directors also declared a dividend of $0.09 per share, payable on July 23, 2004 to stockholders of record as of June 25, 2004. Slade's Ferry Bancorp was founded to serve community-banking needs with both personal and commercial products and services. With more than $525 million in assets and 10 retail branches in Southeastern Massachusetts, Slade's Ferry Bancorp is a trusted community partner. Traded on the NASDAQ Small Cap Market as SFBC, Slade's Ferry Bancorp can also be found on the web at www.sladesferry.com and in six Massachusetts communities - Fairhaven, Fall River, New Bedford, Seekonk, Somerset and Swansea. # # # This new 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 of the forward-looking statements are made. SLADE'S FERRY BANCORP CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF
JUNE 30, DECEMBER 31, ASSETS: 2004 2003 -------------------------------------------------------------------------------- Cash and deposits with other banks $ 21,342,930 $ 18,642,370 Money market mutual funds 387,502 63,539 Federal funds sold 31,500,000 4,000,000 -------------------------------------------------------------------------------- Cash and Cash Equivalents 53,230,432 22,705,909 Interest bearing time deposits with other banks 100,000 200,000 Securities held to maturity 9,517,673 11,300,402 Securities available for sale 75,595,493 47,162,852 Federal Home Loan Bank stock 3,128,500 3,023,800 Loans (net) - Note A 358,534,393 331,496,525 Premises & equipment 5,776,447 5,894,736 Accrued interest receivable 1,830,466 1,497,104 Goodwill 2,173,368 2,173,368 Cash surrender value of life insurance 11,373,643 10,980,879 Other assets 4,144,682 3,012,966 -------------------------------------------------------------------------------- TOTAL ASSETS $525,405,097 $439,448,541 ================================================================================ LIABILITIES & STOCKHOLDERS' EQUITY: Deposits $411,692,478 $333,144,817 Advances from Federal Home Loan Bank 56,481,413 60,474,864 Other liabilities 13,598,419 3,086,719 -------------------------------------------------------------------------------- Total Liabilities 481,772,310 396,706,400 Stockholders' equity: Common stock 40,518 39,959 Paid in capital 29,488,031 28,609,206 Retained earnings 15,219,781 14,698,595 Accum. other comprehensive loss (1,115,543) (605,619) -------------------------------------------------------------------------------- Total Stockholders' Equity 43,632,787 42,742,141 -------------------------------------------------------------------------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $525,405,097 $439,448,541 ================================================================================ Note: A-Loans is net of: Reserve for Loan Losses $ 4,594,699 $ 4,154,394 Unearned Income $ 570,979 $ 443,393
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE (UNAUDITED) 6 MONTHS ENDING JUNE 30,
2004 2003 --------------------------- INTEREST AND DIVIDEND INCOME: Interest and fees on loans $ 9,867,034 $ 8,509,284 Interest and dividends on investments 1,207,525 1,586,281 Other interest 162,535 108,380 --------------------------- Total interest and dividend income 11,237,094 10,203,945 --------------------------- INTEREST EXPENSE: Interest on deposits 2,447,061 2,447,944 Interest on other borrowed funds 1,173,137 651,206 Interest on subordinated debentures 117,923 0 --------------------------- Total interest expense 3,738,121 3,099,150 --------------------------- Net interest and dividend income 7,498,973 7,104,795 Provision for loan losses 376,215 (539,357) --------------------------- Net interest and dividend income after provision for loan losses 7,122,758 7,644,152 --------------------------- OTHER INCOME: Service charges on deposit accounts 526,621 541,320 Security gains (losses), net 39,304 (40,918) Other income 597,491 509,393 --------------------------- Total other income 1,163,416 1,009,795 --------------------------- OTHER EXPENSE: Salaries and employee benefits 4,018,868 3,738,029 Occupancy expense 420,192 485,013 Equipment expense 279,697 255,022 Other expenses 1,650,735 1,955,961 --------------------------- Total other expense 6,369,492 6,434,025 --------------------------- Income before income taxes 1,916,682 2,219,922 Income taxes 668,965 1,302,406 --------------------------- Net income 1,247,717 917,516 =========================== Basic earnings per share $ 0.31 $ 0.23 =========================== Diluted earnings per share $ 0.31 $ 0.23 =========================== The year to date results of operations for the period ended June 30, 2003 have been revised from that previously reported to remove the extraordinary item. The extraordinary item treatment previously presented was revised, and its individual components were presented as part of income tax expense, in the amount of $529,191 and included in other expense is interest of $128,977. See Footnote 20 to the Company's audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2003 filed with the U.S. Securities and Exchange Commission.
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSE (UNAUDITED) 3 MONTHS ENDING JUNE 30,
2004 2003 ------------------------- INTEREST AND DIVIDEND INCOME: Interest and fees on loans $4,974,859 $4,342,772 Interest and dividends on investments 678,029 737,332 Other interest 103,821 63,057 ------------------------- Total interest and dividend income 5,756,709 5,143,161 ------------------------- INTEREST EXPENSE: Interest on deposits 1,324,772 1,220,151 Interest on other borrowed funds 578,266 333,713 Interest on subordinated debentures 101,673 0 ------------------------- Total interest expense 2,004,711 1,553,864 ------------------------- Net interest and dividend income 3,751,998 3,589,297 Provision for loan losses 130,000 (680,357) ------------------------- Net interest and dividend income after provision for loan losses 3,621,998 4,269,654 ------------------------- OTHER INCOME: Service charges on deposit accounts 257,784 285,883 Security gains, net 4,422 0 Other income 337,552 249,246 ------------------------- Total other income 599,758 535,129 ------------------------- OTHER EXPENSE: Salaries and employee benefits 2,051,003 1,948,592 Occupancy expense 188,827 222,032 Equipment expense 132,619 131,857 Other expenses 886,563 904,556 ------------------------- Total other expense 3,259,012 3,207,037 ------------------------- Income before income taxes 962,744 1,597,746 Income taxes 361,021 (11,950) ------------------------- Net income 601,723 1,609,696 ========================= Basic earnings per share $ 0.15 $ 0.41 ========================= Diluted earnings per share $ 0.15 $ 0.40 ========================= The quarterly results of operations for the period ended June 30, 2003 have been revised from that previously reported to remove the extraordinary item. The extraordinary item treatment previously presented was revised, and its individual components were presented as part of income tax expense (benefit), in the amount of $529,133 and included in other expense is interest of $97,765. See Footnote 20 to the Company's audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2003 filed with the U.S. Securities and Exchange Commission.