Letter from the Chairman & President/CEO
Dear Shareholders and Friends,
There are times when the results simply speak
In 2010, the Company’s net income was $1.9 million,or $0.77 per share. This
represented a $4.4 million turnaround from 2009, or $2.12 per share, when
the Company reported a net loss of $2.5 million, which was incurred
primarily in relation to expansion of our bank branch network. By contrast,
because of our increased size, in 2010 the Company was able to absorb the
costs of building and opening two new bank branches, in Rochelle Park and
Hillsdale, and still realize record net annual income and per share
earnings.
Importantly, the Company’s 2010 earnings were driven mainly by a substantial
increase in our loan portfolio of $44.6 million, or 22.9%, from $194.7
million as of 12/31/09 to $239.3 million as of 12/31/10. This occurred in an
economic environment of virtually no growth when many of our peers, both
large and small, were experiencing minimal, or actually
We are most pleased to further report that the Company distinguished itself
from many of our competitors by entering 2011 with zero non-accrual loans.
This is indicative of our loan department’s hand’s on approach to lending
where “knowing your customer” is not a slogan, but our mantra. The Company
ended 2010 with assets of $298.0 million. At the same time, the Bank’s
capitalization increased by $1.9 million, or 10.7%, from $18.3 million to
$20.2 million and our per share book value likewise increased by $0.88, or
13.1%, from $6.72 as of 12/31/09 to $7.60 as of 12/31/10.
In addition, the Company maintained its “well capitalized” classification by ending 2010 with a Tier 1 capital ratio of 8.34%, up from 6.88% as of 12/31/09 and risk based capital ratio of 11.00%, up from 10.11% as of 12/31/09. To reward our loyal shareholders, in February 2011, the Board of Directors declared a 5% stock dividend.
In late 2010, we began construction of a new 9,000 square foot combined
retail bank branch and corporate headquarters which will be located in
Waldwick, in northwestern Bergen County, at the central and well traveled
intersection of Wyckoff (County Road 502) and Crescent Avenues. Our
executive offices, loan and compliance departments will all be consolidated
at this location along with what will be our 7th branch. The projected
Our short-term strategic plan calls for shifting our focus in 2011 from
physically expanding our franchise by opening new bank branches to
maximizing the business generated by our existing seven bank branch network,
three of which will have been open less than 18 months. Our goal, quite
simply, is to continue to increase our top line revenue through loan growth
while maximizing our bottom line net profits by continued efficient, hands
on management of our assets.
Finally, unlike many of our competitors, the Company is pleased to report
that we continue to experience virtually no employee turnover among our 50
employees. This is a testament to a culture that respects both our customers
as well as our loyal employees who are committed to delivering everyday on
our pledge to “Expect the Exceptional”. Along the same lines, we are most
fortunate to have a hard working and battle tested board of directors who
make a significant contribution to the success of the Company in many ways,
both large and small, not the least of which is through their individual and
collective wisdom in terms of corporate governance and referral of business.
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
