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.
Sincerely,
Jon F. Hanson,
Chairman of the Board
Bruce M. Meisel,
President and CEO
