Letter from the Chairman & President/CEO
Dear Shareholders and Friends,
In 2012, Pascack Bancorp, Inc. experienced unprecedented loan growth while simultaneously expanding its franchise.
Loan growth increased over 100% year over year by $57.4 million in 2012, as compared to $29.6 million in 2011. As a consequence, total loans increased from $268.9 million as of December 31, 2011 to $326.4 million as of December 31, 2012.
The Bank did not compromise its credit standards to achieve this loan growth. In fact, our loan portfolio remains pristine and the Bank continues to be classified as “well capitalized” with Tier 1 capital as of year-end at 8.30% and risk based capital of 10.03%. In addition, the Bank completed a limited offering of preferred stock in February, 2013 that raised an additional $1.1 million in new capital.
Total deposits increased by $39.5 million, or 14.4%, from $275.0 million as of December 31, 2011 to $314.5 million as of December 31, 2012 and total assets increased by $43.6 million, or 13.2%, from $330.9 million as of December 31, 2011 to $374.4 million as of December 31, 2012.
At the same time we
were growing our income producing loan portfolio and increasing deposits and
total assets, the Bank continued to expand its branch network to eight
locations by adding two new branches, one in Waldwick which opened in
January and the other in
We also centralized our loan department and executive offices in a 10,000 square foot, new and architecturally distinctive brick and limestone building in Waldwick while retaining our compliance, administrative and retail departments in the Westwood branch building. Our employee census grew from 50 as of December 31, 2011 to 66 at year-end as we “staffed up” to support our expanded business platform. This increase in personnel was primarily concentrated in the retail division and loan department, where we doubled the number of loan officers. Further, we not only increased the quantity of employees; but, also the quality of the new hires who were put through a rigorous screening and evaluation process implemented by the Bank’s new human resources consultant.
Despite investing in opening two new branches, expanding and centralizing the loan department and increasing head count to support future growth, the Bank still posted 2012 earnings of $1.9 million before preferred dividends and taxes and per share book value increased by $.61 cents from $7.90 to $8.31 per share as of year-end.
These accomplishments could not have been realized without the active and dedicated involvement of our board of directors whose members participated at every level of the Bank’s success, including, importantly, referring loans and deposit relationships.
Having established an eight branch network located in a rectangle running from Nutley in Northern Essex County to Waldwick in Northern Bergen County (in what may be one of the best banking markets in the country with its affluent residential base and numerous small businesses), expanded and centralized the loan department, and increased the size and improved upon the already high level of professionalism of our workforce, the focus in 2013 will be on consolidating our gains by continuing to grow the loan portfolio and increasing income and per share book value.
Chairman Hanson and I want to again thank the Bank’s dedicated employees, both existing and new, for sharing and executing the Bank’s vision and to you, our shareholders and customers, for your continued confidence and support.
On behalf of the Pascack Bancorp, Inc. family, we thank you for your continued support.
Jon F. Hanson,
Chairman of the Board
Bruce M. Meisel,
President and CEO