Town Bank Announces Year End Financial Performance

Announces Fourth Quarter Earnings


WESTFIELD, N.J., Feb. 8, 2005 (PRIMEZONE) -- Town Bank Of Westfield (OTCBB:TBWN):

To Our Shareholders, from Joseph O'Sullivan, Chairman and Robert Dowens, President.

We are pleased to report that for the year ended December 31, 2004, your Bank recorded net income of $1,364,000 or $0.74 per basic and $0.72 per diluted common share compared to net income of $698,000 or $0.52 per basic and $0.51 per diluted common share a year ago. For the three months ended December 31, 2004, your Bank recorded net income of $437,000 or $0.24 per basic and $0.23 per diluted share. For the same period one year ago, net income amounted to $193,000 or $0.10 per basic and diluted common share. This significant achievement is attributable to a higher level of net interest income as a result of our growth.

At December 31, 2004 our total assets amount to $126,076,000 as compared to $103,072,000 recorded one year ago on December 31, 2003; reflecting a growth of $23,004,000 or 22.3%. Total deposits grew to $109,635,000 as of December 31, 2004 from $89,628,000 at December 31, 2003, resulting in an increase of $20,007,000 or 22.3%. Loans outstanding rose from $79,692,000 to $109,924,000 representing an increase of $30,232,000 or a growth of 37.9%.

We are also pleased to share with you that The Town Bank has been rated "5 stars" by BauerFinancial Inc., the nation's leading independent bank rating firm, giving your Bank the distinction of being one of the strongest banks in the nation. While this rating is based on the evaluation of recent financial data, this recognition could not have been accomplished without the support of our Staff, Board of Directors, Advisory Board Members, and you our valued shareholders.

We look forward to providing you details of your Bank's financial performance in our annual report scheduled to be mailed on or about April 1, 2005. We thank you for your ongoing support and confidence in The Town Bank and look forward to seeing you on April 28, 2005 at our Annual Shareholders Meeting. On behalf of the Directors, Officers and Employees we wish you a happy, healthy and prosperous New Year.

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                            The Town Bank
                            Balance Sheets
                 (in thousands, except share amounts)
                             (unaudited)

                                                   December 31,
                                                 2004         2003
                                              ---------    ---------
 ASSETS

 Cash and due from banks                      $   1,376    $   1,665
 Federal funds sold and
  other short term investments                       --        3,590
 Investment securities available for sale        12,907       17,013
 Loans, net of unearned fees/costs              109,924       79,692
   less: Allowance for  loan losses              (1,186)        (801)
                                              ---------    ---------
 Net loans                                      108,738       78,891
 Premises and equipment, net                      1,924        1,351
 Other assets                                     1,131          562
                                              ---------    ---------
 Total Assets                                 $ 126,076    $ 103,072
                                              ---------    ---------

 LIABILITIES AND SHAREHOLDERS' EQUITY

 Liabilities
 Deposits:
   Non-interest bearing                       $  17,827    $  15,193
   Interest bearing                              91,808       74,435
                                              ---------    ---------
   Total deposits                               109,635       89,628
 Short term borrowings                            1,430          171
 Accrued expenses and other liabilities             528          262
                                              ---------    ---------
   Total Liabilities                            111,593       90,061
                                              ---------    ---------
 Shareholders' Equity
 Common stock ($5.00 par value per
  share, authorized 3,000,000 shares
  at December 31, 2004 and 2003;
  1,869,302 shares issued and
  outstanding at December 31, 2004 and
  1,851,012 issued and outstanding at
  December 31, 2003)                              9,346        9,255
 Additional paid-in capital                       5,506        5,415
 Accumulated deficit                               (308)      (1,672)
 Accumulated other comprehensive
  (loss) income                                     (61)          13
                                              ---------    ---------
   Total Shareholders' Equity                    14,483       13,011
                                              ---------    ---------
 Total Liabilities And Shareholders' Equity   $ 126,076    $ 103,072
                                              ---------    ---------

                          Income Statements
                 (in thousands, except share amounts)
                             (unaudited)

                                            For the year ended
                                               December 31,
                                           2004            2003
                                        ----------      ----------
 Interest income                        $    6,317      $    4,835
 Interest expense                            1,832           1,570
                                        ----------      ----------
 Net interest income                         4,485           3,265

 Provision for loan losses                     385             191
                                        ----------      ----------

 Net interest income after
  provision for loan losses                  4,100           3,074
                                        ----------      ----------

 Non interest income                           136             242
 Non interest expense                        2,788           2,542
                                        ----------      ----------

 Income before income taxes                  1,448             774
 Income taxes                                   84              76
                                        ----------      ----------
 Net income                             $    1,364      $      698
                                        ==========      ==========

 Net income per share - basic           $     0.74      $     0.52
                                        ==========      ==========
 Net income per share -  diluted        $     0.72      $     0.51
                                        ==========      ==========
 Average shares outstanding - basic      1,852,000       1,348,000
                                        ==========      ==========
 Average shares outstanding - diluted    1,905,000       1,367,000
                                        ==========      ==========

 The above share figures have been restated for the 5% stock
 distribution paid on June 1, 2004


            

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