Community Bank of Bergen County, NJ Reports Second Quarter Net Income of $0.20 Per Share

ROCHELLE PARK, N.J.--(BUSINESS WIRE)--Community Bank of Bergen County, NJ (OTCBB: CMTB) reported earnings today for the second quarter of 2010. Net income increased by 12.6 percent to $339,000, or $0.20 per diluted share, for this quarter as compared to $301,000, or $0.18 per diluted share, for the second quarter of 2009. The increase was largely due to reduced interest expense of $398,000 for the quarter, which was partially offset by a $105,000 increase in the loan loss provision, a $104,000 increase in non-interest expenses; slightly lower non-interest income and a higher income tax expense.

“Our level of non-performing loans has been stabilizing and we are beginning to see results on current foreclosures”

For the six months ended June 30, 2010, Community Bank of Bergen County (CBBC) reported net income of $1,378,000, up significantly from $496,000 reported for the same period in 2009. This increase is a result of reduced interest costs on deposits that resulted in a $798,000 increase in net interest income for the six months ended June 30, 2010, the sale of one of the Bank’s properties in 2010 that resulted in a $310,000 gain, and a significant tax adjustment during the first quarter of 2010 which resulted in a $407,000 tax benefit for the six months ended June 30, 2010 as compared to a $44,000 benefit for the prior year’s period. These increases were partially offset by a $506,000 increase in non-interest expenses; a slight decrease in the Bank’s other non-interest income and a slight increase in the loan loss provision.

“I am pleased with our earnings this quarter, and I am confident that we are making progress in strengthening our balance sheet and operating more efficiently,” said Peter. A. Michelotti, President and CEO of CBBC. “We are cautiously optimistic as we continue to manage increased regulation and a challenging economy.”

In an effort to preserve the capital of the bank, management reduced the quarterly cash dividend to $0.10, down from $0.19 per share paid in prior quarters. The dividend was paid on July 1, 2010.

CBBC continues to show increased asset growth supported by steady increases in its Tier 1 leverage ratio and risk based capital ratios, which climbed to 8.54 percent and 13.24 percent, respectively. The Bank’s capital closed at $26,048,000 at June 30, 2010, with book value per share at $15.65 as compared to $15.12 at December 31, 2009. These regulatory capital ratios are strong and exceed those necessary to be considered a well-capitalized institution under Federal guidelines.

“Our level of non-performing loans has been stabilizing and we are beginning to see results on current foreclosures,” said Michelotti. “The bank is making significant strides; however, we still have a way to go as we continue to navigate the economic downturn.”

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:
	June 30, 2010					December 31, 2009
	(Unaudited)					(Unaudited)
Assets	Dollars in Thousands					Dollars in Thousands
Cash and balances due from depository institutions:
Non-interest-bearing balances and currency and coin			$	4,400				$	4,637
Interest-bearing balances				19,569					19,396
Securities
Held-to-maturity securities				39,206					38,798
Available-for-sale securities				10,097					7,088
Federal funds sold				2,001					2,010
Loans and lease financing receivables:
Loans and leases, net of unearned income	$	218,849				$	219,176
LESS: Allowance for loan and lease losses		2,523					3,076
Loans and leases, net of allowance				216,326					216,100
Premises and fixed assets (including capitalized leases)				7,783					8,128
Other Real Estate Owned				945					31
Other assets				6,688					6,139
Total Assets			$	307,015				$	302,327
Liabilities
Deposits:
Interest-bearing	$	230,136				$	224,897
Non-interest-bearing		48,456					49,846
Total deposits			$	278,592				$	274,743
Other liabilities				2,375					2,416
Total Liabilities				280,967					277,159
Equity Capital
Common Stock (1,800,000 shares authorized, $5 par value; 1,664,374
outstanding at June 30, 2010 and at December 31, 2009				8,640					8,640
Surplus				3,968					3,968
Treasury Stock				(1,501	)				(1,501	)
Stock Options				113					99
Retained earnings				14,773					13,878
Accumulated other comprehensive income				55					84
Total Equity Capital				26,048					25,168
Total Liabilities, and Equity Capital			$	307,015				$	302,327
Capital Ratios:
Tier 1 leverage ratio				8.54	%				8.23	%
Tier 1 risk-based capital ratio				12.07	%				11.81	%
Total risk-based capital ratio				13.24	%				13.06	%

COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME
	Quarter Ended				Six Months Ended
	June 2010		June 2009		June 2010			June 2009
	(Unaudited)				(Unaudited)
Income Statement	Dollars in Thousands				Dollars in Thousands
Interest and fee income:
Interest and fee income on loans	$	3,369	$	3,404	$	6,646		$	6,823
Interest income on balances due from depository institution		6		16		12			35
Interest and dividend income on securities		306		336		619			675
Interest on federal funds sold		1		4		3			9
Other interest income		6		5		12			12
Total Interest and fee income		3,688		3,765		7,292			7,554
Interest Expense:
Interest on deposits		966		1,364		1,893			2,953
Total Interest expense		966		1,364		1,893			2,953
Net Interest Income		2,722		2,401		5,399			4,601
Provision for Loan Losses		200		95		350			320
Non-Interest Income:
Service charges on deposit accounts		107		135		225			280
Net services fees		73		71		134			132
Net Gains on sale of Assets		0		0		310			0
Other non-interest income		2		0		3			2
Total-non-interest income		182		206		672			414
Realized gains/losses on securities		0		0		0			1
Non-interest expenses
Salaries and employee benefits		1,141		1,111		2,296			2,223
Expenses on premises and fixed assets		411		292		863			612
Other non-interest expenses		758		803		1,591			1,409
Total non-interest expenses		2,310		2,206		4,750			4,244
Income before Income taxes:		394		306		971			452
Income taxes (benefit)		55		5		(407	)		(44	)
Net Income	$	339	$	301	$	1,378		$	496
Earnings per Share	$	0.20	$	0.18	$	0.83		$	0.30

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 economic crisis affecting the country in general and 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 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.