SOURCE: Boardwalk Bank

April 28, 2005 10:30 ET

Boardwalk Bank Reports First Quarter Results

LINWOOD, NJ -- (MARKET WIRE) -- April 28, 2005 -- Boardwalk Bank (NASDAQ: BORD) announced its operating results for its first quarter ended March 31, 2005. The Bank reported net income of $520,000 or $.17 per diluted share for the first quarter of 2005 a 22.9% improvement over the first quarter of 2004 net income of $423,000 or $.15 per diluted share (as adjusted for a 5% stock dividend paid in December 2004).

For the quarter ended March 31, 2005, the Bank's provision for loan losses was $172,000, which increased the allowance for loan losses to $2,360,000 or 1.22% of total loans. At quarter end, the Bank had no non-performing assets.

At March 31, 2005, the Bank's total assets increased to $309,572,000 from $242,323,000 at March 31, 2004, an increase of $67,249,000 or 27.8%. Total assets increased by $11,117,000 from $298,395,000 at December 31, 2004. Total loans at March 31, 2005, rose to $194,116,000 from $130,510,000 at March 31, 2004 for an increase of $63,606,000 or 48.7%. Year to date for 2005, total loans increased $14,235,000 or 7.9% from December 31, 2004.

At March 31, 2005, the Bank's shareholders' equity totaled $27,239,000 or 8.80% of period end assets.

Michael D. Devlin, President and CEO of Boardwalk, stated: "Boardwalk continues its growth strategy and the Board and management are very pleased with the bank's performance in the first quarter. Earnings increased over 20% from the linked quarter last year. This performance incorporates a $154,000 charge related to the withdrawal from an Agreement of Sale on a branch site in Egg Harbor Township. This was to be the second location in the township, and recent changes in the town center designation made the site economically unsuitable for our development plans.

"During the first quarter, the bank successfully raised capital through a common stock offering. The stock appears to have been well received with the bank netting $6.5 million in additional capital. We believe that the bank will have sufficient capital to support growth until the exercise of outstanding warrants which will provide additional capital in December 2006.

"We continued to believe that our long-term value is best served by focusing on branch growth, loan growth and credit quality. To these ends, we have two offices under construction which will provide two new branches in Cape May Court House and Egg Harbor Township in September 2005. Loan growth has been very good and we had no non-performing loans at quarter end."

The Bank also announced that Janney Montgomery Scott, the underwriter for the Bank's recently completed secondary public offering, had exercised its over-allotment option with respect to 31,650 shares of common stock. Exercise of the over-allotment option will result in net proceeds to the Bank, after deducting the aggregate underwriting discount, of approximately $512,000.


SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)

                                     March 31,    December 31,   March 31,
                                       2005          2004          2004
                                    ----------    ----------    ----------

Investments                         $   94,151    $   92,414    $   84,645
Net Loans                              191,756       177,696       128,888
Allowance for Loan Losses                2,360         2,185         1,622
Total Assets                           309,572       298,395       242,323
Total Deposits                         222,549       210,954       171,192
Total Borrowings                        59,119        59,588        45,704
Total Capital                           27,239        27,031        24,889


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

                                         Quarter ended     Quarter ended
                                         March 31, 2005    March 31, 2004
                                           ----------        ----------

Interest Income                            $    3,973        $    2,672
Interest Expense                                1,645               976
Net interest income                             2,328             1,696
Provision for loan losses                         172                57
Pre-tax income                                    756               671
Net income                                        520               423
Basic earnings per share(1)                       .20               .17
Diluted earnings per share(1)                     .17               .15

(1) March 2004 earnings per share are adjusted for a 5% stock dividend
    paid December 9, 2004.

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 Bank's financial results can be found in the Bank's Form 10-KSB for the year ended December 31, 2004, which is filed by the Bank with the FDIC.

Contact Information

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