WESTFIELD, N.J./EWORLDWIRE/April 22, 2004 ---
April 22, 2004To our Shareholders:
We are pleased to advise you that at our Annual Shareholders Meeting the proposal to change the Bank's name to The Town Bank (OTCBB: TBWN) and the remaining proposals submitted for approval passed by an overwhelming majority.
Additionally, it is a pleasure to inform you that on April 22, 2004, your Board of Directors declared a 5% stock dividend, subject to regulatory approval, to shareholders of record on May 7, 2004, payable June 1, 2004.
Your Bank continues to experience increased deposit and loan activity. On March 31, 2004, our total assets amounted to $111,460,000 as compared to $86,024,000 recorded one year ago on March 31, 2003; reflecting a growth of $25,436,000 or 29.6%. Total deposits grew to $97,625,000 as of March 31, 2004, from $79,074,000 at March 31, 2003, resulting in an increase of $18,551,000 or 23.5%. Loans outstanding rose from $64,427,000 to $82,860,000 representing an increase of $18,433,000 or a growth of 28.6%.
For the three months ended March 31, 2004, your Bank reported net income of $270,000 or $0.15 per basic and diluted share. This compares to net income of $144,000 or $0.14 per share recorded one year ago. This improvement is largely attributed to a higher level of net interest income, as a result of the growth of the Bank.
We thank you for your ongoing support of The Town Bank, and we look forward to the future with enthusiasm and confidence.
Sincerely yours,
Joseph F.X. O'Sullivan Robert W. Dowens, Sr.
Chairman of the Board President & Chief Executive Officer
The Town Bank of Westfield
Balance Sheet
(in thousands, except share amounts)
(unaudited) March 31,
2004 2003
ASSETS
Cash and due from banks $ 1,798 $ 1,417
Federal funds sold and other short term investments 10,695 8,757
Investment securities available for sale 15,020 10,140
Loans held for sale, net of unearned fees - 62
Loans, net of unearned fees/costs 82,860 64,427
less: Allowance for loan losses (856) (650)
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Net loans 82,004 63,777
Premises and equipment, net 1,324 1,409
Other assets 619 462
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Total Assets $ 111,460 $86,024
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest bearing $ 16,753 $13,650
Interest bearing 80,872 65,424
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Total deposits 97,625 79,074
Short term borrowings 250 250
Accrued expenses and other liabilities 291 301
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Total Liabilities 98,166 79,625
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Shareholders' Equity
Common stock ($5.00 par value per
share, authorized 3,000,000 shares at
March 31, 2004 and 2003;
1,762,830 shares issued and outstanding at
March 31, 2004 and 1,033,917 issued
and outstanding at March 31, 2003 8,814 5,169
Additional paid-in capital 5,856 3,382
Accumulated deficit (1,402) (2,227)
Accumulated other comprehensive income 26 75
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Total Shareholders' Equity 13,294 6,399
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Total Liabilities And Shareholders' Equity $ 111,460 $86,024
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Income Statements
(in thousands, except share amounts)
(unaudited)
For the three months ended
March 31,
2004 2003
Interest income $ 1,360 $ 1,133
Interest expense 401 389
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Net interest income 959 744
Provision for loan losses 55 40
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Net interest income after provision for loan losses 904 704
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Non interest income 28 39
Non interest expense 658 583
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Income before income taxes 274 160
Income taxes 4 16
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Net income $ 270 $ 144
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Net income per share - basic and diluted $ 0.15 $ 0.14
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Average shares outstanding - basic 1,762,830 1,033,917
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Average shares outstanding - diluted 1,800,556 1,060,652
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The above share figures do not reflect the 5% stock dividend declared on April 22, 2004
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