MAYWOOD, N.J.--(BUSINESS WIRE)--Headline of release should read: Community Bank of Bergen County, NJ Reports Second Quarter 2015 Net Income of $0.26 Per Share (instead of Community Bank of Bergen County, NJ Reports First Quarter 2015 Net Income of $0.26 Per Share).
The corrected release reads:
COMMUNITY BANK OF BERGEN COUNTY, NJ REPORTS SECOND QUARTER 2015 NET INCOME OF $0.26 PER SHARE
Community Bank of Bergen County, NJ (OTCPink:CMTB) reported net income for the second quarter of 2015 of $448,000, or $0.26 per diluted share, up $461,000 from a net loss of $13,000, or $0.01 per diluted share, for the second quarter of 2014.
The increase in net income for the second quarter of this year is attributed to a $146,000 increase in net interest income ($2.71 million for the quarter ended June 30, 2015 as compared to $2.57 million for the quarter ended June 30, 2014), and a reduction in losses on the sale of OREO properties during the period (a $13,000 loss as compared to a $967,000 loss for the comparable period last year), partially offset by (a) a $36,000 decrease in service fees collected on demand accounts this quarter as compared to the comparable prior-year period, (b) higher salaries and benefits ($1,114,000 during the June 30, 2015 quarter versus $987,000 during the June 30, 2014 quarter) largely attributed to the hiring of business development personnel responsible for generating new business, and (c) an increase in other expenses ($870,000 over $658,000 for the same quarter last year). This $212,000 increase in other expenses is mainly a result of a write-down, during this second quarter, to fair value of a current OREO property ($52,000) and to a reclassification of $179,000, during the second quarter of last year, out of other expense and into loss on sale of OREO for a previous write-down to fair value of one of the Bank’s OREO properties. This property was sold during the June 30, 2014 period generating the bulk of the $967,000 loss reported above.
In the second quarter of this year, CBBC had interest income that was $179,000 higher than the second quarter of 2014 – a result of increased outstanding loan balances from last year ($231,786,000 at June 30, 2015 versus $222,738,000 at June 30, 2014), mitigated by overall reduced market rates. Net interest margin remained strong at 3.53 percent. Increasing interest expense ($22,000 more in the second quarter of 2015 compared to the first quarter of 2014) was attributed to the generation of a new savings product which accounted for $19.7 million in additional deposits with a corresponding interest cost of approximately $47,000 during the June 30, 2015 quarter. Total deposits increased to $271,398,000 at June 30, 2015 as compared to $258,454,000 at June 30, 2014. This new statement savings product was first introduced in September of 2014. In addition, other borrowings generated an interest cost of $11,000 as against $0 for the comparable period in 2014.
The Bank’s net income for the six months ended June 30, 2015 is $832,000, an increase from net income of $205,000 for the six months ended June 30, 2014. The largest significant positive change was the reduction in losses sustained in the Bank’s effort to remediate its OREO assets. Beginning in January of 2014, the OREO portfolio listed seven properties totaling $5.6 million. During the six months following, three properties were sold at a total loss of $1.1 million. Currently there are three properties in the OREO portfolio with a value of $404,000.
“Year to date, we have successfully executed our growth strategy and plan. Our core operating earnings continue to increase as we grow the balance sheet in a very competitive local banking environment. This quarter marks the fourth consecutive quarter of solid operating earnings,” said Peter A. Michelotti, President & CEO of Community Bank of Bergen County, NJ.
The Bank’s total assets increased by $8,321,000 from December 31, 2014 and by $17,756,000 from June 30, 2014 mainly due to increases in loans of $9,048,000 and $22,001,000, respectively, resulting from the Bank’s sustained marketing efforts.
The Bank is continuing to mitigate its high level of problem loans with a diligent work out process. Total delinquent loans dropped to its lowest level this quarter end to $9.6 million as compared to $13.6 million at June 30, 2014 and $10.0 million as of March 31, 2015. The ratio of non-accruing loans to total loans dropped from 3.60 percent at March 31, 2015 to 3.09 percent at June 30, 2015.
“We continue to forge ahead in our quest to eliminate our legacy problem assets. During the second quarter, we made significant progress in speeding up the foreclosure and collection process as well,” said Michelotti.
This quarter, the Bank’s capital ratios reflect the new BASEL III rules and may not be comparable to the ratios reported last year. The Bank remains “well capitalized” under all applicable regulatory requirements. The Bank’s capital closed this quarter at $26,973,000, up from the $26,246,000 reported at December 31, 2014, with book value per share at $15.47 as compared to $15.05 at December 31, 2014.
About Community Bank of Bergen County
Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with three locations in Rochelle Park, Maywood and Fair Lawn. 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.
CBBC is a member of the Federal Deposit Insurance Corporation (FDIC) and an Equal Housing Lender. CBBC makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.
For more information, visit the Bank’s web site at www.cbbcnj.com, and to view CBBC’s 2014 Audited Financial Statements, visit: http://www.cbbcnj.com/home/about-us/investor
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 affecting the 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 Bank's lines of business; the extent and timing of actions of the Federal Reserve Board; customer acceptance of our products and services; the inability to resolve our problem loans as expected; 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 AND SUBSIDARIES | |||||||||||||||||
| SUMMARY FINANCIAL HIGHLIGHTS | |||||||||||||||||
| ( in Thousands, Except Percentages and Per Share Data) | |||||||||||||||||
|
Financial Highlights: |
|||||||||||||||||
| Symbol | CMTB | 52 week range | $7.08-$12.60 | ||||||||||||||
| Financial Data - Year to date | |||||||||||||||||
| Unaudited | Unaudited | ||||||||||||||||
| For the Period Ended June 30, | For the Year Ended December 31, | ||||||||||||||||
| 2015 | 2014 | ||||||||||||||||
|
Balance Sheet Highlights |
|||||||||||||||||
| Total securities | $48,779 | $52,021 | |||||||||||||||
| Total loans | $231,786 | $222,738 | |||||||||||||||
| Allowance for loan losses | $3,457 | $3,458 | |||||||||||||||
| Total assets | $306,353 | $298,032 | |||||||||||||||
| Total deposits | $271,636 | $267,236 | |||||||||||||||
| Total liabilities | $279,380 | $271,786 | |||||||||||||||
| Total shareholders' equity | $26,973 | $26,246 | |||||||||||||||
| Unaudited | Unaudited | ||||||||||||||||
|
|
For the three months |
For the three months |
|||||||||||||||
|
Financial data -Year to date |
ended June 30, 2015 |
ended June 30, 2014 |
|||||||||||||||
| Net Interest income | $2,711 | $2,565 | |||||||||||||||
| Provision for loan losses | $25 | $0 | |||||||||||||||
| Loss on sale of OREO | ($13) | ($967) | |||||||||||||||
| Total other income | $186 | $201 | |||||||||||||||
| Total other expenses | $2,223 | $1,877 | |||||||||||||||
| Income before provision for income taxes | $637 | ($77) | |||||||||||||||
| Provision (benefit) for income taxes | $189 | ($64) | |||||||||||||||
| Net income after tax | $448 | ($13) | |||||||||||||||
| Other Earnings Information | |||||||||||||||||
| Earnings per share | $0.26 | ($0.01) | |||||||||||||||
| Return on Assets | 0.15% | 0.00% | |||||||||||||||
| Share Information | |||||||||||||||||
| At June 30, | At December 31, | ||||||||||||||||
| 2015 | 2014 | ||||||||||||||||
| Market price per share | $12.00 | $9.50 | |||||||||||||||
| Book Value per common share | $15.47 | $15.05 | |||||||||||||||
| Outstanding Shares -period ending | 1,743,618 | 1,743,618 | |||||||||||||||
| Capital ratios | |||||||||||||||||
| Total equity to total assets | 8.80% | 8.81% | |||||||||||||||
| Tier 1 leverage ratio | 8.12% | 7.91% | |||||||||||||||
| Common equity tier 1 capital ratio | 12.43% | n/a | |||||||||||||||
| Tier 1 capital ratio | 12.43% | 11.84% | |||||||||||||||
| Total capital ratio | 13.69% | 13.09% | |||||||||||||||
| Asset Quality and Ratios | |||||||||||||||||
| Other Real Estate Owned (OREO) | $404 | $780 | |||||||||||||||
| Non-acccrual loans | $7,164 | $6,169 | |||||||||||||||
| Troubled debt restructured loans ("TDRs") | $2,749 | $2,769 | |||||||||||||||
| Non-accruing loans/total loans | 3.09% | 2.77% | |||||||||||||||
| Allowance for loan loss/total loans | 1.49% | 1.55% | |||||||||||||||
| Allowance for loan loss/non-accrual loans | 48% | 56% | |||||||||||||||
| COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||
| AS OF: | ||||||||||||||
| June 30, 2015 | December 31, 2014 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Assets |
Dollars in Thousands |
Dollars in Thousands | ||||||||||||
| Cash and balances due from depository institutions: | ||||||||||||||
| Non-interest-bearing balances and currency and coin | $ 3,505 | $ 4,026 | ||||||||||||
| Interest-bearing balances | 6,093 | 2,518 | ||||||||||||
| Securities | ||||||||||||||
| Held-to-maturity securities | 0 | 0 | ||||||||||||
| Available-for-sale securities | 48,779 | 52,021 | ||||||||||||
| Loans and lease financing receivables: | ||||||||||||||
| Loans and leases, net of unearned income | $ 231,786 | $ 222,738 | ||||||||||||
| LESS: Allowance for loan and lease losses | 3,457 | 3,458 | ||||||||||||
| Loans and leases, net of allowance | 228,329 | 219,280 | ||||||||||||
| Premises and fixed assets (including capitalized leases) | 6,027 | 6,127 | ||||||||||||
| Other Real Estate Owned | 404 | 780 | ||||||||||||
| Other assets | 13,216 | 13,280 | ||||||||||||
| Total Assets | $ 306,353 | $ 298,032 | ||||||||||||
| Liabilities | ||||||||||||||
| Deposits: | ||||||||||||||
| Interest-bearing | $ 216,067 | $ 215,118 | ||||||||||||
| Non-interest-bearing | 55,569 | 52,118 | ||||||||||||
| Total deposits | 271,636 | 267,236 | ||||||||||||
| Borrowed funds | 6,000 | 3,000 | ||||||||||||
| Other liabilities | 1,744 | 1,550 | ||||||||||||
| Total Liabilities | 279,380 | 271,786 | ||||||||||||
| Equity Capital | ||||||||||||||
| Common Stock: par value $5.00; 5,000,000 and 1,800,000 shares | ||||||||||||||
| authorized; 1,743,618 shares issued and outstanding, respectively | 8,718 | 8,718 | ||||||||||||
| Surplus | 4,170 | 3,988 | ||||||||||||
| Stock Options | 0 | 182 | ||||||||||||
| Retained earnings | 13,820 | 12,988 | ||||||||||||
| Accumulated other comprehensive income | 265 | 370 | ||||||||||||
| Total Equity Capital | 26,973 | 26,246 | ||||||||||||
| Total Liabilities, and Equity Capital | $ 306,353 | $ 298,032 | ||||||||||||
| Capital Ratios: | ||||||||||||||
| Capital to Asset ratio | 8.80% | 8.81% | ||||||||||||
| Tier 1 leverage ratio | 8.12% | 7.91% | ||||||||||||
| Common equity tier 1 capital ratio | 12.43% | n/a | ||||||||||||
| Tier 1 capital ratio | 12.43% | 11.84% | ||||||||||||
| Total capital ratio | 13.69% | 13.09% | ||||||||||||
| COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
| Quarters Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||
| Income Statement | Dollars in Thousands | Dollars in Thousands | |||||||||||||||||||
| Interest and fee income: | |||||||||||||||||||||
| Interest and fee income on loans | $ 2,994 | $ 2,839 | $ 5,871 | $ 5,582 | |||||||||||||||||
| Interest income on balances due from depository institution | 6 | 3 | 8 | 5 | |||||||||||||||||
| Interest and dividend income on securities | 190 | 170 | 375 | 363 | |||||||||||||||||
| Other interest income | 14 | 13 | 27 | 24 | |||||||||||||||||
| Total Interest and fee income | 3,204 | 3,025 | 6,281 | 5,974 | |||||||||||||||||
| Interest Expense: | |||||||||||||||||||||
| Interest on deposits | 482 | 460 | 975 | 971 | |||||||||||||||||
| Interest on borrowed funds | 11 | 0 | 20 | 0 | |||||||||||||||||
| Total Interest expense | 493 | 460 | 995 | 971 | |||||||||||||||||
| Net Interest Income | 2,711 | 2,565 | 5,286 | 5,003 | |||||||||||||||||
| Provision for Loan Losses | 25 | 0 | 50 | 225 | |||||||||||||||||
| Non-Interest Income: | |||||||||||||||||||||
| Service charges on deposit accounts | 57 | 93 | 123 | 181 | |||||||||||||||||
| Net loss on sale of real estate owned | (13) | (967) | (36) | (1,111) | |||||||||||||||||
| Income on bank owned life insurance | 50 | 52 | 100 | 104 | |||||||||||||||||
| Other non-interest income | 79 | 56 | 124 | 107 | |||||||||||||||||
| Total non-interest income | 173 | (766) | 311 | (719) | |||||||||||||||||
| Realized gains (losses) on securities | 1 | 1 | 1 | 249 | |||||||||||||||||
| Non-interest expenses | |||||||||||||||||||||
| Salaries and employee benefits | 1,114 | 987 | 2,202 | 1,950 | |||||||||||||||||
| Expenses on premises and fixed assets | 239 | 232 | 500 | 529 | |||||||||||||||||
| Other non-interest expenses | 870 | 658 | 1,670 | 1,663 | |||||||||||||||||
| Total non-interest expenses | 2,223 | 1,877 | 4,372 | 4,142 | |||||||||||||||||
| Income before Income taxes: | 637 | (77) | 1,176 | 166 | |||||||||||||||||
| Income taxes (benefit) | 189 | (64) | 344 | (39) | |||||||||||||||||
| Net Income | $ 448 | $ (13) | $ 832 | $ 205 | |||||||||||||||||
| Earnings per Share | $ 0.26 | $ (0.01) | $ 0.48 | $ 0.12 | |||||||||||||||||
