Community Bank of Bergen County, NJ Reports Second Quarter 2013 Net Loss of $0.74 Per Share

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Community Bank of Bergen County, NJ Reports Second Quarter 2013 Net Loss of $0.74 Per Share

MAYWOOD, N.J.--(BUSINESS WIRE)-- Community Bank of Bergen County, NJ (OTCQB: CMTB) reported a loss today for the second quarter of 2013 of $1,278,000, or ($0.74) per diluted share, which is down $1,439,000 as compared to a net income of $152,000, or $0.09 per diluted share, for the second quarter of 2012.

As previously reported, the loss for the second quarter of this year was due largely to the sale of $3,199,000 in non-performing loans, which generated a provision for loan losses of $2,385,000 this quarter in order to replenish the reduction in the Bank's allowance for loan losses caused by the loan sale. This represented a $1,785,000 increase to the provision when compared to the same period last year. The Bank also realized a $367,000 reduction in interest income in the second quarter of 2013, a result of lower outstanding loan balances as compared to the same period last year ($199,373,000 versus $215,012,000, respectively) and lower overall market rates. This reduction was partially offset by the corresponding savings of $125,000 in interest paid on the reduced outstanding interest bearing deposits as compared to 2012 ($274,547,000 and $279,069,000 in quarterly deposits, respectively). Additionally, there were losses in the second quarter of 2013 generated by the sale of two Other Real Estate Owned (OREO) properties as referenced below.


For the six months ended June 30, 2013, the Bank reported a net loss of $1,268,000, down from net income of $340,000 for the six months ended June 30, 2012. The decrease in net income for the six months ended June 30, 2013 is largely attributed to (i) a $544,000 decrease in interest income due to lower outstanding loan balances at reduced market yields, noted above, (ii) an increased provision for loan losses due to the loan sale described above, up $2,010,000 as compared to the six months ended June 30, 2012, and (iii) losses of $265,000 incurred on the sale of OREO property. These amounts were offset by (i) reduced interest expense of $300,000 as compared to the same period in 2012 due to lower outstanding interest bearing deposit balances at lower interest cost, (ii) a $49,000 increase in income generated from the BOLI investment for the six months of 2013 as compared to the same period in 2012, and (iii) a $106,000 reduction in non-interest expenses as compared to the same period in 2012. The BOLI investment stands at $7,061,000 at June 30, 2013 as compared to $6,202,000 at June 30, 2012. The decrease in non-interest expense correlates to a $144,000 reduction in salary and benefit expenses ($58,000 attributed to a change in the Bank's medical insurance carrier and $55,000 due to a reduction in staffing), which was offset by $39,000 in increased costs from other non-interest expenses related to OREO properties when compared to the six months ending June 30, 2012.

Asset levels were reduced from the $305,842,000 reported at December 31, 2012, to $301,007,000 reported for June 30, 2013, largely due to sale of the non-performing loan portfolio mentioned above and the low volume of new loans added to the total loan portfolio during the first half of 2013, offset by a corresponding reduction of interest bearing deposits.

As of June 30, 2013, non-accruing loans stood at $7,061,000, a $4,051,000 reduction when compared to December 31, 2012 and a reduction of $4,932,000 when compared to June 30, 2012. The Bank's capital closed this quarter at $24,817,000, with a book value per share at $14.23, down from $15.07 at December 31, 2012 after adjusting for the 5 percent stock dividend that was distributed on June 28, 2013.

"Our top priority is to reduce non-accrual loans as quickly and efficiently as possible. We are still actively pursuing all possible ways to reduce our non-performing loan assets for the remainder of 2013," said Peter A. Michelotti, President and CEO of CBBC. "Our future growth and expansion objectives cannot be achieved until we put these legacy problems behind us."

About Community Bank of Bergen County

Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with four locations in Rochelle Park, Maywood, Fair Lawn and Garfield. Dedicated to superior service, the bank offers a range of customized personal and business banking products and the convenience of 24-hour ATMs and online banking.

With lending decisions made locally, and a responsive management team, Community Bank of Bergen County is committed to providing an exceptional banking experience.

For more information, visit the Bank's web site at www.cbbcnj.com.; and to view CBBC's 2012 Audited Financial Statements, visit: http://www.cfpproxy.com/5398/resources/Annual%20Report.pdf

COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
AS OF:
 
 June 30, 2013 December 31, 2012
(Unaudited)(Unaudited)
Assets

Dollars in Thousands

Dollars in Thousands

Cash and balances due from depository institutions:  
Non-interest-bearing balances and currency and coin$3,942$6,969
Interest-bearing balances16,8817,003
Securities
Held-to-maturity securities35,37234,960
Available-for-sale securities22,16419,522
Loans and lease financing receivables:
Loans and leases, net of unearned income$199,373$214,756
LESS: Allowance for loan and lease losses3,6403,220
Loans and leases, net of allowance195,733211,536
Premises and fixed assets (including capitalized leases)6,5866,772
Other Real Estate Owned6,6566,427
Other assets

13,673

12,698

Total Assets

$

301,007

$

305,842

 
Liabilities
Deposits:
Interest-bearing$222,778$225,989
Non-interest-bearing51,76452,049
Total deposits$274,547$278,038
Other liabilities

1,643

1,521

Total Liabilities276,190279,559
 
Equity Capital
Common Stock (1,800,000 shares authorized, $5 par value; 1,743,618
Shares issued and outstanding at June 30, 2013; 1,728,000 issued
and 1,660,464 outstanding at December 31, 2012)8,7188,640
Surplus3,9883,968
Treasury Stock0(1,531)
Stock Options182182
Retained earnings11,63614,566
Accumulated other comprehensive income

293

458

Total Equity Capital

24,817

26,283

Total Liabilities and Equity Capital

$

301,007

$

305,842

 
Capital Ratios:
 
Tier 1 leverage ratio8.10%8.44%
Tier 1 risk-based capital ratio12.21%12.01%
Total risk-based capital ratio13.47%13.26%
 
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
 
 Quarter Ended Six Months Ended
June 30,June 30,
2013 20122013 2012
(Unaudited)(Unaudited)
 
Income Statement

Dollars in Thousands

Dollars in Thousands

Interest and fee income:
Interest and fee income on loans$2,856$3,163$5,764$6,308
Interest income on balances due from depository institution96139
Interest and dividend income on securities184246371517
Interest on federal funds sold0000
Other interest income

9

10

20

21

Total Interest and fee income3,0583,4256,1686,855
 
Interest Expense:
Interest on deposits

603

728

1,226

1,526

Total Interest expense

603

728

1,226

1,526

 
Net Interest Income

2,455

2,697

4,942

5,329

 
Provision for Loan Losses2,3856003,0601,050
 
Non-Interest Income:
Service charges on deposit accounts96115184213
Net gains (losses) on sale of OREO(265)0(265)0
Other non-interest income

134

130

309

239

Total non-interest income(35)245228452
 
Realized gains (losses) on securities119119
 
Non-interest expenses
Salaries and employee benefits1,0481,0952,0742,218
Expenses on premises and fixed assets279266578579
Other non-interest expenses

878

888

1,719

1,680

Total non-interest expenses

2,205

2,249

4,371

4,477

 
Income before Income taxes:(2,169)112(2,260)273
Income taxes (benefit)

(882

)

(40

)

(992

)

(67

)

Net Income

$

(1,287

)

$

152

$

(1,268

)

$

340

 
Earnings per Share

$

(0.74

)

$

0.09

$

(0.73

)

$

0.20

 

Forward-Looking Statements

This press release and other statements made from time to time by Community Bank of Bergen County's management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, capital, liquidity and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy of the country in general and how it is affectingthe financial industry specifically; volatility in interest rates and the shape of the yield curve; increased credit risks and risks associated with the real estate market; the inability to reduce our non-performing loans as planned and the potential for increased non-performing loans;operating, legal, and regulatory risk; economic, political, and competitive forces affecting the company's lines of business; the extent and timing of actions of the Federal Reserve Board; customer acceptance of our products and services; and other risks and uncertainties. Any statements made that are not historical facts should be considered to be forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate, whether as a result of new information or the occurrence of future events, except as may be required by applicable law or regulation.



Community Bank of Bergen County, NJ
Peter A. Michelotti, 201-587-1333
President and CEO
investorrelations@cbbcnj.com

KEYWORDS:   United States  North America  New Jersey

INDUSTRY KEYWORDS:

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