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

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

MAYWOOD, N.J.--(BUSINESS WIRE)-- Community Bank of Bergen County, NJ (OTCQB:CMTB) reported today its third quarter 2013 net income of $25,000, or $0.01 per diluted share, which is down from $91,000, or $0.05 per diluted share for the third quarter of 2012.

The decrease in net income this quarter, over the same quarter last year, was due largely to the $372,000 reduction in interest income in the third quarter of 2013, a result of lower outstanding loan balances as compared to the same period last year ($200,753,000 versus $215,163,000, respectively) and lower overall market rates. This reduction was partially offset by the corresponding $119,000 reduction in interest paid on lower outstanding interest bearing deposit balances as compared to 2012 ($269,403,000 versus $274,493,000 in quarterly deposits, respectively). Non-interest income for the quarter ended September 30, 2013 was $50,000 lower when compared to the same period in 2012 due to a $23,000 reduction in service charge income on deposit accounts, and a $27,000 reduction in other non-interest income. There was also a $168,000 increase in non-interest expenses realized during the current quarter, in comparison to the same quarter last year, as benefit costs increased $31,000) and other non-interest expenses increased $136,000, including legal expenditures of $34,000 and professional fees of $42,000 both attributed to the loan sale described below that occurred in the second quarter of 2013. All of this was offset by a reduction in the provision for loan loss accruals of $376,000 representing a stabilization of the Bank's allowance for loan losses.


For the nine months ended September 30, 2013, the Bank reported a net loss of $1,243,000, down from net income of $431,000 for the nine months ended September 30, 2012. The decrease in net income for the nine months ended September 30, 2013 is largely attributed to (i) a $1,059,000 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 below, up $1,631,000 as compared to the nine months ended September 30, 2012, and (iii) losses of $265,000 incurred on the sale of OREO property that occurred in the first half of 2013. These amounts were offset by (i) reduced interest expense of $419,000 as compared to the same period in 2012 due to lower outstanding interest bearing deposit balances at reduced interest cost, (ii) a $49,000 increase in income generated from the BOLI investment for the nine months of 2013 as compared to the same period in 2012, and (iii) a $946,000 increase in the Bank's income tax benefit for 2013 as compared to 2012. The BOLI investment stands at $7,114,000 at September 30, 2013 as compared to $6,254,000 at June 30, 2012. Further, there was a $113,000 reduction in salaries and benefit expenses as compared to the same period in 2012, offset by a $175,000 rise in non-operating expenses mainly the result of increased legal ($106, 000) and professional ($87,000) fees.

As previously reported, the continuing loss for the year was due largely to the sale of $3,199,000 in non-performing loans, which precipitated a provision for loan losses of $2,385,000 in the quarter ended June 30, 2013 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 over the same period last year.

Asset levels this quarter were reduced from the $305,842,000 reported at December 31, 2012, to $295,814,000 reported for September 30, 2013. This reduction is primarily due to the sale of the non-performing loan portfolio mentioned above, the successful effort to lower the level of our excess cash through reductions in interest bearing deposits, and the low volume of new loans added to the total loan portfolio during the year so far.

As of September 30, 2013, non-accruing loans stood at $6,916,000, a $4,196,000 reduction when compared to December 31, 2012 and a reduction of $3,671,000 when compared to September 30, 2012. The Bank's capital closed this quarter at $24,881,000, with a book value per share at $14.27, down from $15.07 at December 31, 2012 after adjusting for the five percent stock dividend that was distributed on June 28, 2013.

"We are pleased with the progress we have made in reducing our legacy problem assets. This continues to be our top priority," said Peter A. Michelotti, President and CEO of CBBC. And, we are confident that new loan demand coupled with increasing consumer confidence will allow us to grow our loan portfolio as we move forward. In fact, we have already experienced a positive response to our new consumer mortgage products introduced in August. All of these factors should allow us to return to a normal level of growth and profitability in the near future."

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.

        

COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

AS OF:

 
September 30, 2013December 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$5,429$6,969
Interest-bearing balances10,6337,003
Securities
Held-to-maturity securities35,72734,960
Available-for-sale securities19,73219,522
Loans and lease financing receivables:
Loans and leases, net of unearned income

$

200,753

 

 

$

214,756

 

 

LESS: Allowance for loan and lease losses

3,717

 

3,220

 

Loans and leases, net of allowance197,036211,536
Premises and fixed assets (including capitalized leases)6,6756,772
Other Real Estate Owned6,6566,427
Other assets

13,926

12,698

Total Assets$

295,814

$

305,842

 
Liabilities
Deposits:
Interest-bearing

$

216,643

 

 

$

225,989

 

 

Non-interest-bearing

52,760

 

52,049

 

Total deposits$269,403$278,038
Other liabilities

1,430

1,521

Total Liabilities270,933279,559
 
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 earnings11,66114,566
Accumulated other comprehensive income

332

458

Total Equity Capital

24,881

26,283

Total Liabilities and Equity Capital$

295,814

$

305,842

 
Capital Ratios:
 
Tier 1 leverage ratio8.23%8.44%
Tier 1 risk-based capital ratio12.10%12.01%
Total risk-based capital ratio13.35%13.26%
 
 

COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

  

Quarter Ended

Nine Months Ended
September 30,September 30,
2013 20122013 2012
(Unaudited)(Unaudited)
 
Income Statement

Dollars in Thousands

Dollars in Thousands

Interest and fee income:
Interest and fee income on loans$2,806$3,161$8,570$9,469
Interest income on balances due from depository institution932212
Interest and dividend income on securities187209558726
Interest on federal funds sold0000
Other interest income

10

11

30

32

Total Interest and fee income3,0123,3849,18010,239
 
Interest Expense:
Interest on deposits

589

708

1,815

2,234

Total Interest expense

589

708

1,815

2,234

 
Net Interest Income

2,423

2,676

7,365

8,005

 
Provision for Loan Losses5259013,5851,951
 
Non-Interest Income:
Service charges on deposit accounts99122283335
Net gains (losses) on sale of OREO00(265)0
Other non-interest income

125

152

434

391

Total non-interest income224274452726
 
Realized gains (losses) on securities80919
 
Non-interest expenses
Salaries and employee benefits1,0381,0073,1123,225
Expenses on premises and fixed assets272271850850
Other non-interest expenses

895

759

2,614

2,439

Total non-interest expenses

2,205

2,037

6,576

6,514

 
Income before Income taxes:(75)12(2,335)285
Income taxes (benefit)

(100

)

(79

)

(1,092

)

(146

)

Net Income$

25

$

91

$

(1,243

)

$

431

 
Earnings per Share$

0.01

$

0.05

$

(0.71

)

$

0.26

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 of our market area specifically and how they areaffectingthe 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 or inactions of the Federal Reserve Board and of our Federal government in general; 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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