THIRD QUARTER EARNINGS For Further Information Contact:
For Immediate Release Francis Kenney
OCTOBER 19, 2000 Senior Vice President & CFO
Ipswich Bancshares, Inc.
23 Market Street
Ipswich, MA 01938
(978) 356-7777
www.ipswichbank.com
IPSWICH BANCSHARES
ANNOUNCES 10% STOCK REPURCHASE COMPLETED;
APPROVES NEW 10% PROGRAM
Ipswich, Massachusetts, October 19 / Ipswich Bancshares, Inc. (NASDAQ NM: IPSW)
announced third quarter net income of $617,000, or $.26 per fully diluted share
compared to $1 million, or $.40 per fully diluted share for the corresponding
quarter in 1999. For the nine months ended September 30, 2000, net income
totaled $2 million, or $.81 per fully diluted share, as compared with $2.4
million, or $.94 per fully diluted share for the same period in 1999. The third
quarter results in 2000 include a pre-tax loss of $153,000 from the sale of $6
million of fixed rate loans to reduce the Company's interest rate risk. The loan
restructuring reduced third quarter earnings per share by $.04. Adjusted for the
loan portfolio restructuring, third quarter per share earnings were $.30 and
return on equity was 16.9%.
David L. Grey, President and Chief Executive Officer, stated "third quarter
results for 2000 reflects the Company's emphasis on its retail banking strategy.
The net interest margin was impacted favorably by the Company's addition of $7.8
million in checking account deposits, a 17.5% increase over the last twelve
months. This growth in core checking deposits has translated into a substantial
increase in the retail banking fees, which increased 18.2% in the current
quarter, versus the same quarter in 1999. We continue to believe our stock
represents good value, which is why the Board authorized a new stock repurchase
program."
During the third quarter of 2000, the Company completed its 10% stock repurchase
program which was announced March 16, 2000, and currently has repurchased
262,400 shares at an average price of $8.75. The Board now has authorized
management to repurchase an additional 226,315 shares, or 10%, of the current
outstanding common shares. Pursuant to the Company's repurchase program, the
shares will be purchased by the Company from time to time, depending upon market
conditions in privately negotiated transactions or open market purchases in
accordance with applicable regulations of the Securities and Exchange
Commission. The Board delegates to the discretion of Ipswich Bancshares, Inc.'s
Senior Management, the authority to determine the timing of the repurchase
program's commencement, the timing of subsequent purchases and the prices at
which repurchases will be made. Ipswich Bancshares may repurchase its common
shares without further Board authorization for one year.
<PAGE>
Ipswich Bancshares, Inc. is the one-bank holding company parent of IpswichBank.
IpswichBank is a Massachusetts chartered savings bank, organized in 1869 and
headquartered in Ipswich, Massachusetts with total assets of $289 million at
September 30, 2000. IpswichBank presently operates eight full-service banking
offices, including its headquarters. The Bank's deposits are insured by the
Federal Deposit Insurance Corporation and the Depositors Insurance Fund.
Certain statements contained herein are not based on historical facts and are
"Forward Looking Statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward Looking Statements which are based on
various assumptions, may be identified by reference to a future period or
periods or by the use of forward looking terminology such as "may", "well",
"believe", "expect", "estimate", "anticipate", "continue" or similar terms or
variations on these terms or the negative of these terms. Actual results could
differ materially from those set forth in Forward Looking Statements due to a
variety of factors including credit risk management, asset liability management,
the financial securities market and regulatory issues.
STOCK LISTING
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The Common Stock is traded on the NASDAQ National Market under the ticker
symbol: "IPSW".
SELECTED MARKET MAKERS
----------------------
TUCK KBWI
Tucker Anthony Keefe, Bruyette & Woods
1 Beacon Street One Financial Plaza
Boston, MA 02108 Hartford, CT 06103
(617) 725-2000 (860) 297-0300
HERZ OPCO
Herzog, Heine, Geduld, Inc. CIBC Oppenheimer
26 Broadway/1st Floor CIBC Tower/World Financial Center
New York, NY 10007 New York, NY 10281
(212) 908-4000 (800) 999-6726
TRANSFER AGENT
--------------
For questions pertaining to dividend payments, stock registration, address
changes, etc., please contact:
Investor Relations, Registrar and Transfer Company
10 Commerce Drive, Cranford, NJ 07016
(800) 368-5948
