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 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: | ||||||||||||||
March 31, 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 | $ | 3,891 | $ | 6,969 | ||||||||||
Interest-bearing balances | 14,862 | 7,003 | ||||||||||||
Securities | ||||||||||||||
Held-to-maturity securities | 33,169 | 34,960 | ||||||||||||
Available-for-sale securities | 18,022 | 19,522 | ||||||||||||
Loans and lease financing receivables: | ||||||||||||||
Loans and leases, net of unearned income | $ | 210,018 | $ | 214,756 | ||||||||||
LESS: Allowance for loan and lease losses | 3,512 | 3,220 | ||||||||||||
Loans and leases, net of allowance | 206,506 | 211,536 | ||||||||||||
Premises and fixed assets (including capitalized leases) | 6,640 | 6,772 | ||||||||||||
Other Real Estate Owned | 7,435 | 6,427 | ||||||||||||
Other assets | 12,766 | 12,698 | ||||||||||||
Total Assets | $ | 303,291 | $ | 305,842 | ||||||||||
Liabilities | ||||||||||||||
Deposits: | ||||||||||||||
Interest-bearing | $ | 223,013 | $ | 225,989 | ||||||||||
Non-interest-bearing | 52,482 | 52,049 | ||||||||||||
Total deposits | $ | 275,495 | $ | 278,038 | ||||||||||
Other liabilities | 1,530 | 1,521 | ||||||||||||
Total Liabilities | 277,025 | 279,559 | ||||||||||||
Equity Capital | ||||||||||||||
Common Stock (1,800,000 shares authorized, $5 par value; 1,660,474 | ||||||||||||||
shares outstanding at March 31, 2013 and December 31, 2012 | 8,640 | 8,640 | ||||||||||||
Surplus | 3,968 | 3,968 | ||||||||||||
Treasury Stock | (1,531 | ) | (1,531 | ) | ||||||||||
Stock Options | 182 | 182 | ||||||||||||
Retained earnings | 14,552 | 14,566 | ||||||||||||
Accumulated other comprehensive income | 455 | 458 | ||||||||||||
Total Equity Capital | 26,266 | 26,283 | ||||||||||||
Total Liabilities and Equity Capital | $ | 303,291 | $ | 305,842 | ||||||||||
Capital Ratios: | ||||||||||||||
Tier 1 leverage ratio | 8.49 | % | 8.44 | % | ||||||||||
Tier 1 risk-based capital ratio | 12.26 | % | 12.01 | % | ||||||||||
Total risk-based capital ratio | 13.52 | % | 13.26 | % | ||||||||||
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
Quarter Ended | Twelve Months Ended | |||||||||||||||||
March 31, | December 31, | |||||||||||||||||
2013 | 2012 | 2012 | 2011 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
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 institution | 4 | 3 | 17 | 35 | ||||||||||||||
Interest and dividend income on securities | 187 | 271 | 923 | 1,142 | ||||||||||||||
Interest on federal funds sold | 0 | 0 | 0 | 1 | ||||||||||||||
Other interest income | 11 | 11 | 42 | 42 | ||||||||||||||
Total Interest and fee income | 3,110 | 3,430 | 13,447 | 14,526 | ||||||||||||||
Interest Expense: | ||||||||||||||||||
Interest on deposits | 623 | 798 | 2,903 | 3,556 | ||||||||||||||
Total Interest expense | 623 | 798 | 2,903 | 3,556 | ||||||||||||||
Net Interest Income | 2,487 | 2,632 | 10,544 | 10,970 | ||||||||||||||
Provision for Loan Losses | 675 | 450 | 2,681 | 2,005 | ||||||||||||||
Non-Interest Income: | ||||||||||||||||||
Service charges on deposit accounts | 88 | 98 | 430 | 408 | ||||||||||||||
Net gains (losses) on sale of OREO | 0 | 0 | (29 | ) | (53 | ) | ||||||||||||
Other non-interest income | 175 | 109 | 535 | 356 | ||||||||||||||
Total non-interest income | 263 | 207 | 936 | 711 | ||||||||||||||
Realized gains (losses) on securities | 0 | 0 | 20 | 0 | ||||||||||||||
Non-interest expenses | ||||||||||||||||||
Salaries and employee benefits | 1,026 | 1,123 | 4,226 | 4,472 | ||||||||||||||
Expenses on premises and fixed assets | 299 | 313 | 1,132 | 1,386 | ||||||||||||||
Other non-interest expenses | 841 | 792 | 3,269 | 3,207 | ||||||||||||||
Total non-interest expenses | 2,166 | 2,228 | 8,627 | 9,065 | ||||||||||||||
Income before Income taxes: | (91 | ) | 161 | 192 | 611 | |||||||||||||
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.
Media:
Community Bank of Bergen County, NJ
Peter A. Michelotti
President and CEO
201-587-1333
investorrelations@cbbcnj.com
KEYWORDS: United States North America New Jersey
INDUSTRY KEYWORDS:
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