Community Bank of Bergen County, NJ Reports Fourth Quarter Earnings

Community Bank of Bergen County, NJ Reports Fourth Quarter Earnings

CBBC Fourth Quarter Net Loss is $0.01 Per Share; Net Income is $0.25 for the Year Ended December 31, 2012

MAYWOOD, N.J.--(BUSINESS WIRE)-- Community Bank of Bergen County, NJ (OTCBB: CMTB) reported earnings today for the quarter and year ended December 31, 2012. The Bank had a net loss this quarter of $10,000 or $0.01 per diluted share which is an improvement over a loss of $120,000, or $0.20 per diluted share, recorded during the fourth quarter of 2011.

The Bank's improvement in its results of operations in the fourth quarter of 2012, as compared to the same quarter last year, is the result of a $250,000 decrease in the loan loss provision from that of 2011 ($730,000 for the quarter ended December 31, 2012 as compared to $980,000 for the quarter ended December 31, 2011). This was offset by a $63,000 improvement in comparative net losses on the disposition of OREO properties and a $41,000 increase in other non-interest income primarily generated by the Bank's investment in Bank Owned Life Insurance (BOLI) ($54,000 of income for the quarter ended December 31, 2012 as compared to $26,000 for the quarter ended December 31, 2011). Additionally, net interest income for the quarter decreased, largely as a result of a $237,000 reduction in interest and fee income, in light of continued lower overall market interest rates that were partially offset by a corresponding savings of $168,000 in interest paid on outstanding deposits as compared to the same period in 2011. Continued efforts by the Bank to increase efficiency in staff and overhead utilization is represented in the $184,000 of cost savings for non-interest expenses in all categories, as compared to the same period in 2011.

For the year ended December 31, 2012, the Bank reported net income of $421,000, down $402,000 from the net income of $823,000 reported for the year ended December 31, 2011. The decrease in net income for the year ended December 31, 2012 is largely attributed to (i) a $841,000 decrease in interest income due to lower outstanding loan balances ($214,756,000 outstanding at December 31, 2012 versus $219,872,000 outstanding at December 31, 2011) and reduced market yields, and (ii) an increased provision for loan losses, up $676,000 as compared to the twelve months ended December 31, 2011. These amounts were offset by (i) savings in interest expense of $653,000 due to lower outstanding interest paying deposit balances ($225,989,000 in deposits at December 31, 2012 as compared to $235,904,000 at December 31, 2011) and lower interest cost, (ii) a $438,000 reduction in non-interest expenses ($8.6 million in 2012 versus $9.1 million in 2011), (iii) income generated from the BOLI investment of $164,000 for the twelve months of 2012 as compared to $44,000 for the same period in 2011, and (iv) income generated from rents on OREO properties ($146,000 for the twelve months ended December 2012 as compared to $53,000 for the twelve months ending December 2011). The decrease in non-interest expenses was mainly attributed to a $246,000 reduction in salary and benefit expense largely the result of reduced staffing and recoupment of over-accruals of expenses related to the Bank's medical retirement plan. The Bank also realized $254,000 in lower expenses related to occupancy costs (stemming from the re-negotiated lease of one of the Bank's branches), lower depreciation expense on Bank buildings sold in prior years and lower over-all maintenance costs on the remaining properties. These savings were offset by $62,000 in increased expenses in other non-interest expenses (significantly in heightened audit and exam expenses, $33,000 greater than in 2011), and by increased costs related to OREO properties for the twelve months of 2012 as indicated above.

"Legacy loan loss continues to be a burden on our income and growth objectives; however, we are making progress decreasing our non-accrual loans and OREO properties," said Peter A. Michelotti, President and CEO of CBBC. "It is an extremely slow process in the State of New Jersey, and we are reviewing all possible options to speed up this process as this continues to be our highest priority."

Total assets were reduced from $309,871,000 at December 31, 2011, to $305,842,000 at December 31, 2012, particularly due to the low volume of new loans through December 31, 2012 and the reduction of total deposits ($280,225,000 at December 31, 2012 as compared to $284,077,000 at December 31, 2011).

The Bank continues to proceed in working out of its non-accruing asset portfolio ($11,112,000 at December 31, 2012 as compared to $12,614,000 at December 31, 2011). The Bank's capital closed at $26,283,000 at December 31, 2012, with book value per share at $15.83 in comparison to $15.51 at December 31, 2011.

"As the economy continues to improve, 2013 should show improvements in many areas of our bank," said Michelotti. "Senior management is dedicated to helping CBBC improve its current financial position."

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



December 31, 2012

December 31, 2011





Dollars in Thousands

Dollars in Thousands

Cash and balances due from depository institutions:
Non-interest-bearing balances and currency and coin$6,969$4,972
Interest-bearing balances7,0037,488
Held-to-maturity securities34,96036,381
Available-for-sale securities19,52221,139
Loans and lease financing receivables:
Loans and leases, net of unearned income$214,756$219,872
LESS: Allowance for loan and lease losses3,2202,941
Loans and leases, net of allowance211,536216,931
Premises and fixed assets (including capitalized leases)6,7276,772
Other Real Estate Owned6,4276,373
Other assets12,6989,815
Total Assets$305,842$309,871
Total deposits$278,038$281,710
Other liabilities1,5212,367
Total Liabilities279,559284,077
Equity Capital
Common Stock $5 par value; 1,800,000 shares authorized; 1,728,000
shares issued; 1,660,474 and 1,662,874 shares outstanding, respectively8,6408,640
Treasury Stock(1,531)(1,510)
Stock Options182154
Retained earnings14,56614,410
Accumulated other comprehensive income458132
Total Equity Capital26,28325,794
Total Liabilities and Equity Capital$305,842$309,871
Capital Ratios:
Tier 1 leverage ratio8.44%8.21%
Tier 1 risk-based capital ratio12.01%11.73%
Total risk-based capital ratio13.26%12.98%


Quarter Ended

Twelve Months Ended


December 31,

December 31,






Income Statement

Dollars in Thousands

Dollars in Thousands

Interest and fee income:
Interest and fee income on loans$2,996$3,233$12,465$13,306
Interest income on balances due from depository institution571735
Interest and dividend income on securities1972709231,142
Interest on federal funds sold0001
Other interest income10104242
Total Interest and fee income3,2083,52013,44714,526
Interest Expense:
Interest on deposits6698372,9033,556
Total Interest expense6698372,9033,556
Net Interest Income2,5392,68310,54410,970
Provision for Loan Losses7309802,6812,005
Non-Interest Income:
Service charges on deposit accounts95103430408
Net servicing fees5456221253
Net gains (losses) on sale of OREO(29)(92)(29)(53)
Other non-interest income9049314103
Total non-interest income210116936711
Realized gains (losses) on securities10200
Non-interest expenses
Salaries and employee benefits1,0011,1164,2264,472
Expenses on premises and fixed assets2823781,1321,386
Other non-interest expenses8308033,2693,207
Total non-interest expenses2,1132,2978,6279,065
Income before Income taxes:(93)(478)192611
Income taxes (benefit)(83)(358)(229)(212)
Net Income$(10)$(120)$421$823
Earnings per Share$(0.01)$(0.07




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 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 and the New Jersey Department of Banking and Insurance ; 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.

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