BOARDWALK BANCORP REPORTS
THIRD QUARTER 2006 RESULTS
Linwood, New Jersey—Boardwalk Bancorp, Inc. (NASDAQ, “BORD”), parent company of Boardwalk Bank, announced its operating results for the third quarter ended September 30, 2006. Boardwalk reported net income of $790,000 or $.22 per diluted share for the third quarter of 2006, an 8.2% improvement over the third quarter of 2005 net income of $730,000 or $.20 per diluted share. Third quarter 2006 earnings represent an increase of $20,000 or 2.6% over the second quarter of 2006 when the Bank reported net income of $770,000 or $.21 per diluted share.
Net income for the first nine months of 2006 was $2,322,000 or $0.65 per diluted share, compared to net income of $1,841,000, or $0.55 diluted per share, in the same period in 2005.
Total loans increased by $9,684,000 for the quarter end September 30, 2006 to $275,297,000, an increase of $31,060,000 or 12.7% from December 31, 2005. At quarter end, the Bank had $313,000 in non-performing assets.
At September 30, 2006, the Bank’s total assets increased to $454,961,000, an increase of $53,295,000 or 13.3% from $401,666,000 at December 31, 2005.
At September 30, 2006, the Bank’s shareholders’ equity totaled $39,394,000 or 8.66% of period end assets.
Michael D. Devlin, President and CEO of Boardwalk, stated:
“We continue to find the business environment to be a challenging one for a community bank. The inverted yield curve and intense competition for both deposits and loans have compressed our net interest margin. Earnings were under pressure throughout the quarter, offset by an adjustment for taxes which boosted net income. Management believes that the current situation will continue to stress earnings until there is some change to the yield curve.
“Loan quality remains solid. While the bursting of the housing bubble has been well publicized, Boardwalk Bank has modest exposure to residential construction lending and is not anticipating a credit problem. The gaming industry continues to be a major economic engine and Atlantic City has enjoyed robust growth. Current construction projects in the city, and the potential for an additional casino property, have fueled a very optimistic view of the local economy for the foreseeable future.
“Our expansion in South Jersey continues in the fourth quarter with a second branch in Egg Harbor Township. This additional branch is scheduled to open the first week of November.”
SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)
|
| September 30, |
| December 31, |
| September 30, |
| |||
|
|
|
|
| ||||||
Investments |
| $ | 148,427 |
| $ | 130,984 |
| $ | 111,098 |
|
Net Loans |
|
| 272,104 |
|
| 241,376 |
|
| 226,585 |
|
Allowance for Loan Losses |
|
| 3,192 |
|
| 2,861 |
|
| 2,735 |
|
Total Assets |
|
| 454,961 |
|
| 401,666 |
|
| 365,037 |
|
Total Deposits |
|
| 316,896 |
|
| 272,494 |
|
| 252,394 |
|
Total Borrowings |
|
| 97,826 |
|
| 92,695 |
|
| 76,672 |
|
Total Capital |
|
| 39,394 |
|
| 35,343 |
|
| 34,955 |
|
SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except share data)
|
| Quarter |
| Quarter |
| Nine months |
| Nine months |
| ||||
|
|
|
|
|
| ||||||||
Interest Income |
| $ | 6,805 |
| $ | 4,906 |
| $ | 19,370 |
| $ | 13,367 |
|
Interest Expense |
|
| 3,773 |
|
| 2,282 |
|
| 10,154 |
|
| 5,854 |
|
Net interest income |
|
| 3,032 |
|
| 2,624 |
|
| 9,216 |
|
| 7,513 |
|
Provision for loan losses |
|
| 75 |
|
| 27 |
|
| 338 |
|
| 548 |
|
Pre-tax income |
|
| 965 |
|
| 1,072 |
|
| 3,174 |
|
| 2,692 |
|
Net income |
|
| 790 |
|
| 730 |
|
| 2,322 |
|
| 1,841 |
|
Basic earnings per share |
|
| 0.24 |
|
| 0.24 |
|
| 0.73 |
|
| 0.64 |
|
Diluted earnings per share |
|
| 0.22 |
|
| 0.20 |
|
| 0.65 |
|
| 0.55 |
|
Avg Basic Shares Outstanding |
|
| 3,241,048 |
|
| 3,075,771 |
|
| 3,174,171 |
|
| 2,894,717 |
|
Avg Diluted Shares Outstanding |
|
| 3,586,854 |
|
| 3,573,974 |
|
| 3,582,620 |
|
| 3,352,022 |
|
For further information contact Michael D. Devlin, CEO, Boardwalk Bancorp: (888) 720-2265.
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-K for the year ended December 31, 2005, which is filed by the Bank with the FDIC.
