ROCHELLE PARK, N.J.--()--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.
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COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AS OF: |
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| 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 | % | |||||||||
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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 |
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| (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 |
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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.

