SOURCE: Boardwalk Bank

October 18, 2005 11:11 ET

Boardwalk Bank Reports Third Quarter 2005 Results

LINWOOD, NJ -- (MARKET WIRE) -- October 18, 2005 -- Boardwalk Bank (NASDAQ: BORD) announced its operating results for its third quarter ended September 30, 2005. The Bank reported net income of $730,000 or $.20 per diluted share for the third quarter of 2005, a 39.8% improvement over the third quarter of 2004 net income of $522,000 or $.18 per diluted share (as adjusted for a 5% stock dividend paid in December 2004). Third quarter 2005 earnings represent an increase of $139,000 or 23.5% over the second quarter of 2005 when the Bank reported net income of $591,000 or $.17 per diluted share.

Net income for the first nine months of 2005 was $1,841,000 or $0.55 diluted earnings per share, compared to net income of $1,434,000, or $0.51 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 $9,405,000 for the quarter end September 30, 2005 to $226,585,000, an increase of $48,889,000 or 27.5% from December 31, 2004. At quarter end, the Bank had no non-performing assets.

At September 30, 2005, the Bank's total assets increased to $365,037,000, an increase of $66,642,000 or 22.3% from $298,395,000 at December 31, 2004.

At September 30, 2005, the Bank's shareholders' equity totaled $34,955,000 or 9.58% 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:

"Boardwalk Bank's performance continues to reflect the bank's success in both its expansion plans and its financial performance. In September, the bank opened its Egg Harbor Township branch, the fourth office for the company. This new location has already exceeded $23 million in deposits and it has been well received by the community. This expansion of the branch network has brought in both new customers and has allowed us to service more of our existing customers with well placed locations. Our four offices, seven day banking and a growing ATM network make Boardwalk Bank a convenient institution for residents throughout the county.

Expansion continues into the fourth quarter. Our fifth office opened on October 15th in Cape May Court House. In our past six years, Boardwalk has loaned over $80 million in Cape May County and we believe this office will aid us in more fully serving our commercial borrowers. We anticipate that we will be able to enhance our existing business relationships particularly in commercial demand accounts.

The financial performance reflected in the quarterly income indicates that the bank has been maturing into a solid community bank. The challenges and expenses involved with our growth have not caused earnings to falter. Net income of $730,000 was the highest quarterly income in the bank's history and a 23% improvement over the previous quarter. Loan growth remains strong with a significant pipeline while credit quality is solid with no non-performing loans."

SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)

                 September 30, 2005  December 31, 2004  September 30, 2004
                 ------------------  -----------------  ------------------
Investments         $  111,098         $   92,414          $   95,810
Net Loans           $  226,585         $  177,696          $  158,269
Allowance for
  Loan Losses       $    2,735         $    2,185          $    1,920
Total Assets        $  365,037         $  298,395          $  284,612
Total Deposits      $  252,394         $  210,954          $  204,106
Total Borrowings    $   76,672         $   59,588          $   53,529
Total Capital       $   34,955         $   27,031          $   25,890



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

                             Quarter     Quarter    Nine month  Nine month
                              Ended       Ended       Ended       Ended
                            September   September   September   September
                             30, 2005    30, 2004    30, 2005    30, 2004
                            ---------   ---------   ---------   ---------
Interest Income             $   4,906   $   3,468   $  13,367   $   9,033
Interest Expense            $   2,282   $   1,443   $   5,854   $   3,523
Net interest income         $   2,624   $   2,025   $   7,513   $   5,510
Provision for loan losses   $      27   $      75   $     548   $     132
Pre-tax income              $   1,072   $     797   $   2,692   $   2,174
Net income                  $     730   $     522   $   1,841   $   1,434
Basic earnings per share(1) $    0.24   $    0.20   $    0.64   $    0.56
Diluted earnings
  per share(1)              $    0.20   $    0.18   $    0.55   $    0.51
Avg Basic Shares
  Outstanding(1)            3,075,771   2,546,076   2,894,717   2,540,826
Diluted Avg Shares
  Outstanding(1)            3,573,974   2,841,941   3,352,022   2,831,210

(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