SOURCE: Boardwalk Bank

July 26, 2005 10:05 ET

Boardwalk Bank Reports Second Quarter 2005 Results

LINWOOD, NJ -- (MARKET WIRE) -- July 26, 2005 -- Boardwalk Bank (NASDAQ: BORD) announced its operating results for its second quarter ended June 30, 2005. The Bank reported net income of $591,000 or $.17 per diluted share for the second quarter of 2005, a 21.1% improvement over the second quarter of 2004 net income of $488,000 or $.17 per diluted share (as adjusted for a 5% stock dividend paid in December 2004).

Net income for the first six months of 2005 was $1,111,000 or $0.34 diluted earnings per share, compared to net income of $912,000, or $0.32 diluted earnings per share (as adjusted for a 5% stock dividend paid in December 2004), in the same period in 2004.

Much of the increase in net income can be attributed to strong growth in loans. Total loans increased by $25,795,000 for the quarter ending June 30, 2005 to $219,888,000, an increase of $40,007,000 or 22.2% from December 31, 2004. This growth resulted in an increase in provisions for loan losses of $349,000 for the quarter ended June 30, 2005, increasing the allowance for loan losses to $2,708,000 or 1.23% of total loans. At quarter end, the Bank had no non-performing assets.

At June 30, 2005, the Bank's total assets increased to $334,334,000, an increase of $35,939,000 or 12.0% from $298,395,000 at December 31, 2004.

At June 30, 2005, the Bank's shareholders' equity totaled $34,623,000 or 10.36% of period end assets. This includes an increase of $6,600,000 in new capital raised in a public offering during the second quarter.

Michael D. Devlin, President and CEO of Boardwalk, stated: "Management is very pleased with the performance of the bank. Earnings continue to grow even during our expansion. Loan growth has been robust in 2005, in excess of 20% since year-end. Credit quality is strong with a delinquency rate of 0.2% and no non-performing loans at June 30, 2005.

"As we celebrate our sixth anniversary in July, the bank has total assets in excess of $330,000,000, a capital position in excess of 10%, and two new offices ready to open. We believe that we are well positioned for the future."

SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)

                                    June 30,      December 31,    June 30,
                                      2005           2004           2004
                                   ---------      ------------   ---------
Investments                        $  92,664       $  92,414     $  89,300
Net Loans                          $ 217,180       $ 177,696     $ 154,335
Allowance for Loan Losses          $   2,708       $   2,185     $   1,751
Total Assets                       $ 334,334       $ 298,395     $ 268,785
Total Deposits                     $ 231,225       $ 210,954     $ 183,828
Total Borrowings                   $  67,647       $  59,588     $  58,993
Total Capital                      $  34,623       $  27,031     $  25,284




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

                       Quarter       Quarter       Six month     Six month
                        Ended         Ended          Ended         Ended
                       June 30,      June 30,       June 30,      June 30,
                         2005         2004            2005          2004
                       -------       -------       ---------     ---------
Interest Income        $ 4,487       $ 2,892        $ 8,460        $ 5,564
Interest Expense       $ 1,927       $ 1,103        $ 3,572        $ 2,080
Net interest income    $ 2,560       $ 1,789        $ 4,888        $ 3,484
Provision for
 loan losses           $   349            --        $   521        $    57
Pre-tax income         $   863       $   706        $ 1,619        $ 1,377
Net income             $   591       $   488        $ 1,111        $   912
Basic earnings
 per share(1)          $  0.20       $  0.19        $  0.40        $  0.36
Diluted earnings
 per share(1)          $  0.17       $  0.17        $  0.34        $  0.32
Avg Basic Shares
 Outstanding(1)      2,991,262     2,420,880      2,802,690      2,417,306
Diluted Avg Shares
 Outstanding(1)      3,436,742     2,706,142      3,275,736      2,692,328

(1) Amounts for 2004 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