Community Bank of Bergen County, NJ Reports First Quarter 2013 Net Income of $0.01 Per Share

Community Bank of Bergen County, NJ Reports First Quarter 2013 Net Income of $0.01 Per Share

MAYWOOD, N.J.--(BUSINESS WIRE)-- Community Bank of Bergen County, NJ (OTCBB: CMTB) reported earnings today for the first quarter of 2013. Net income this quarter was $19,000, or $0.01 per diluted share, which is down $169,000 as compared to a net income of $188,000, or $0.10 per diluted share, for the first quarter of 2012.

The decrease in net income for the first quarter of this year was due largely to $320,000 in lower interest income - a result of decreased average outstanding loan balances from last year ($212,345,000 in 2013 versus $217,776,000 in 2012) and overall reduced market rates. This was partially offset by a corresponding savings in interest expense, which was $175,000 less in the first quarter of 2013 compared to 2012. This was due to lower average interest bearing deposits from 2012 ($225,021,000 in 2013 versus $237,442,000 in 2012) in conjunction with reduced rates paid on those deposits. Additionally, there was a $225,000 increase in the loan loss provision from that of 2012 ($675,000 for the quarter ended March 31, 2013 as compared to $450,000 for the quarter ended March 31, 2012).

In the first quarter of this year, CBBC also realized other non-interest income of $175,000, in comparison to $109,000 realized at the first quarter of 2012. This is largely the result of (i) CBBC's increased investment in bank owned life insurance (BOLI), resulting in $53,000 of income from BOLI for the quarter ended March 31, 2013 as compared to $24,000 for the quarter ended March 31, 2012, and (ii) $57,000 in income recorded as a result of the settlement of an insurance claim stemming from Hurricane Sandy in 2012. This was partially offset by a decrease in rental income on other real estate owned of $19,000 ($14,000 for the quarter ended March 31, 2013 as compared to $33,000 for the quarter ended March 31, 2012). The Bank also experienced a reduction in non-interest expenses including a cost savings of $97,000 in salaries and benefits, the result of a staff reduction, and $14,000 in savings achieved through lower premises and fixed asset costs due to increased rents received from a new tenant in the Bank's operations center. This was partially offset by increases in other expenses (namely $58,000 in higher legal expenses as compared to the quarter ended March 2012).

As the result of the Bank's concerted efforts, total assets were reduced by $2,551,000 from December 31, 2012 and by $7,377,000 from March 31, 2012. The Bank continues to proceed in working out of its non-accrual asset portfolio (down $910,000 from December 31, 2012 and down $1,081,000 from March 31, 2012).

"In an effort to continue to speed up the reduction in non-accrual loans, we are actively pursuing sales of certain segments of our non-performing loan assets, which will generate losses in the second quarter of 2013 and potentially impact the Bank's ability to pay a dividend," said Peter A. Michelotti, President and CEO of CBBC.

As of March 31, 2013, non-accruing loans stood at $10,202,000. The Bank's capital closed this quarter at $26,266,000, with book value per share at $16.18 in comparison to $15.83 at December 31, 2012.

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; and to view CBBC's 2012 Audited Financial Statements, visit:


March 31, 2013

 December 31, 2012



Dollars in Thousands

Dollars in Thousands

Cash and balances due from depository institutions:  
Non-interest-bearing balances and currency and coin$3,891$6,969
Interest-bearing balances14,8627,003
Held-to-maturity securities33,16934,960
Available-for-sale securities18,02219,522
Loans and lease financing receivables:
Loans and leases, net of unearned income$210,018$214,756
LESS: Allowance for loan and lease losses3,5123,220
Loans and leases, net of allowance206,506211,536
Premises and fixed assets (including capitalized leases)6,6406,772
Other Real Estate Owned7,4356,427
Other assets



Total Assets$




Total deposits$275,495$278,038
Other liabilities



Total Liabilities277,025279,559
Equity Capital
Common Stock (1,800,000 shares authorized, $5 par value; 1,660,474
shares outstanding at March 31, 2013 and December 31, 20128,6408,640
Treasury Stock(1,531)(1,531)
Stock Options182182
Retained earnings14,55214,566
Accumulated other comprehensive income



Total Equity Capital



Total Liabilities and Equity Capital$




Capital Ratios:
Tier 1 leverage ratio8.49%8.44%
Tier 1 risk-based capital ratio12.26%12.01%
Total risk-based capital ratio13.52%13.26%

Quarter Ended

 Twelve Months Ended
March 31,December 31,
2013 20122012 2011
Income Statement


Dollars in Thousands


Dollars in Thousands

Interest and fee income:
Interest and fee income on loans$2,908$3,145$12,465$13,306
Interest income on balances due from depository institution431735
Interest and dividend income on securities1872719231,142
Interest on federal funds sold0001
Other interest income


Total Interest and fee income3,1103,43013,44714,526
Interest Expense:
Interest on deposits6237982,9033,556
Total Interest expense6237982,9033,556
Net Interest Income2,4872,63210,54410,970
Provision for Loan Losses6754502,6812,005
Non-Interest Income:
Service charges on deposit accounts8898430408
Net gains (losses) on sale of OREO00(29)(53)
Other non-interest income175109535356
Total non-interest income263207936711
Realized gains (losses) on securities00200
Non-interest expenses
Salaries and employee benefits1,0261,1234,2264,472
Expenses on premises and fixed assets2993131,1321,386
Other non-interest expenses8417923,2693,207
Total non-interest expenses2,1662,2288,6279,065
Income before Income taxes:(91)161192611
Income taxes (benefit)(110)(27)(229)(212)
Net Income$19$188$421$823
Earnings per Share$0.01$0.11$0.25$0.49

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; 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
President and CEO

KEYWORDS:   United States  North America  New Jersey


The article Community Bank of Bergen County, NJ Reports First Quarter 2013 Net Income of $0.01 Per Share originally appeared on

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