SOURCE: Boardwalk Bank

October 16, 2007 09:38 ET

Boardwalk Bancorp Reports Third Quarter 2007 Results

LINWOOD, NJ--(Marketwire - October 16, 2007) - Boardwalk Bancorp, Inc. (NASDAQ: BORD), parent company of Boardwalk Bank, announced its operating results for the third quarter ended September 30, 2007. Bancorp reported net income of $553,000 or $.13 per diluted share for the third quarter of 2007, a 30% decline over the third quarter of 2006 net income of $790,000 or $.22 per diluted share. Third quarter 2007 earnings represent a decrease of $204,000 or 26.9% over the second quarter of 2007 when Bancorp reported net income of $757,000 or $.18 per diluted share. Net income for the third quarter ended September 30, 2007 was negatively impacted by approximately $273,000, net of taxes, of expenses associated with the planned merger with Cape Savings Bank.

Net income for the first nine months of 2007 was $646,000 or $.15 per diluted share, compared to net income of $2,322,000, or $0.65 per diluted share, in the same period in 2006. Net income for the nine months ended September 30, 2007 was negatively impacted by losses of $1,310,000, net of taxes, from a restructuring of assets in the first quarter of 2007 and the merger related expenses noted above.

Total loans increased by $1,181,000 for the quarter ended September 30, 2007 to $301,791,000, an increase of $24,325,000 or 8.8% from December 31, 2006. At quarter end, Bancorp had $1,304,000 in non-performing assets compared to $480,000 on December 31, 2006.

At September 30, 2007, Bancorp's total assets decreased to $445,343,000, a decrease of $7,937,000 or 1.8% from $453,280,000 at December 31, 2006. This decrease in total assets is primarily the result of the use of funds received from the first quarter asset restructuring to fund deposit outflows from certificate of deposit re-pricings and reductions in borrowings.

At September 30, 2007, Bancorp's shareholders' equity totaled $49,885,000 or 11.2% of period end assets.

Michael D. Devlin, President and CEO of Boardwalk Bancorp, stated:

"While there was a decline in earnings during the quarter, the bank's performance net of merger related costs was very good. Much of the efforts of the bank's personnel has been directed to the merger and we believe that we are on target for a closing in the first quarter of 2008."

SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)

                             September 30,    December 31,    September 30,
                                  2007            2006             2006
                             ------------     -----------     ------------
Investments                    $  105,093      $  134,290      $  142,087
Net Loans                         298,099         274,193         272,104
Allowance for Loan Losses           3,692           3,273           3,192
Total Assets                      445,343         453,280         454,961
Total Deposits                    311,249         309,953         316,896
Total Borrowings                   82,723          91,061          97,826
Total Capital                      49,885          51,127          39,394



SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except share data)

                                               Nine months    Nine months
               Quarter Ended   Quarter Ended      Ended          Ended
                September 30,   September 30,  September 30,  September 30,
                    2007            2006           2007           2006
               -------------   -------------   ------------   ------------
Interest Income   $    7,375      $    6,805     $   21,657     $   19,370
Interest Expense       4,026           3,773         11,921         10,154
Net interest income    3,349           3,032          9,736          9,216
Provision for loan
 losses                    0              75            422            338
Pre-tax income           741             965            627          3,174
Net income               553             790            646          2,322
Basic earnings
 per share              0.13            0.24           0.15           0.73
Diluted earnings
 per share              0.13            0.22           0.15           0.65
Avg Basic Shares
 Outstanding       4,295,768       3,241,048      4,295,968      3,174,171
Avg Diluted Shares
 Outstanding       4,311,249       3,586,854      4,312,061      3,582,620

This press release discusses primarily historical information. Statements included in this release, to the extent they are forward looking, involve a number of risks and uncertainties such as competitive factors, economic conditions and regulatory changes in the banking industry. Further information on factors that could affect the Bancorp's financial results can be found in the Bank's Form 10-K for the year ended December 31, 2006, which is filed with the Securities and Exchange Commission.

Contact Information

  • For further information contact:
    Michael D. Devlin
    CEO
    Boardwalk Bancorp
    (888) 720-2265.