Community Bank of Bergen County, NJ Reports First Quarter 2014 Net Income of $0.13 Per Share

MAYWOOD, N.J.--()--Community Bank of Bergen County, NJ (OTCBB:CMTB) reported net income for the first quarter of 2014 of $218,000, or $0.13 per diluted share, up $199,000 from a net income of $19,000, or $0.01 per diluted share, for the first quarter of 2013.

The increase in net income for the first quarter of this year was due largely to a $450,000 decrease in the loan loss provision over last year ($225,000 for the quarter ended March 31, 2014 as compared to $675,000 for the quarter ended March 31, 2013), and a $248,000 net gain from the sale of investment securities as compared to no gain or loss from investment securities in 2013. These were partially offset by a $216,000 decrease in other non-interest income, a $135,000 increase in income taxes, a $99,000 increase in total non-interest expense and a $49,000 decrease in net interest income for the first quarter of 2014 as compared to the same period in 2013.

In the first quarter of this year, CBBC had interest income that was $161,000 lower than the first quarter of 2013 – a result of decreased outstanding loan balances from last year ($201,099,000 at March 31, 2014 versus $210,018,000 at March 31, 2013) and overall reduced market rates. This was partially offset by a corresponding savings in interest expense, ($112,000 less in the first quarter of 2014 compared to the first quarter of 2013), attributed to lower interest bearing deposits ($206,131,000 in 2014 versus $223,013,000 in 2013) and reduced rates paid on those deposits. CBBC also realized non-interest income of $47,000 in the first quarter of 2014, in comparison to $263,000 reported during the first quarter of 2013. This is largely the result of a $57,000 insurance settlement claim from Hurricane Sandy that was recorded in the first quarter of 2013, and a loss of $144,000 during the first quarter 2014 on the sale of one property of other real estate (OREO).

Regulatory capital ratios for 2014 and 2013 are lower than those reported in the past mainly a result of the large net operating losses sustained in 2013. This loss generated a significant increase in the Bank’s deferred tax asset, most of which is disallowed for the purpose of calculating the Bank’s regulatory capital ratios. In order to generate taxable earnings in the future to mitigate the large deferred tax asset, the Bank has sold approximately $9,900,000 of its non-taxable municipal bond portfolio along with approximately $4,900,000 in taxable US treasury notes in the first quarter of 2014 with a resulting net gain of $248,000. The Bank has replaced approximately $5,600,000 of the sale of the non-taxable portfolio with taxable and higher yielding mortgage backed securities (MBS). The Bank will continue the sale of the tax free portfolio and the substitution with higher yielding MBS as opportunities arise.

During the first quarter of 2014, the Bank’s reduction in certain non-interest expenses, including a cost savings of $63,000 in salaries and benefits, the result of staff reduction, and $15,000 in net savings achieved through lower costs in other non-interest expenses, was offset by a one-time charge of $179,000 for the write-down to fair value of one of the Bank’s remaining OREO properties.

As the result of the Bank’s concerted efforts, total assets were reduced by $6,869,000 from December 31, 2013 and by $15,308,000 from March 31, 2013. The Bank continues to proceed in working out of its non-accrual asset portfolio (down $262,000 from December 31, 2013 and down $3,711,000 from March 31, 2013).

“This quarter we experienced financial improvement in all areas of the bank,” said Peter A. Michelotti, President and CEO of CBBC. “We began to strategically transition our investment portfolio to higher yielding taxable investments and increased our operating earnings. All of our asset quality metrics have improved, which has set us on track to operate even more efficiently down the line. Most noticeably, the local economy is improving. Our outlook is positive and we expect steady and sustained growth in 2014.”

As of March 31, 2014, non-accruing loans stood at $6,491,000. The Bank’s capital closed this quarter at $25,283,000, with book value per share at $14.50 in comparison to $14.29 at December 31, 2013.

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.

For more information, visit the Bank’s web site at, and to view CBBC’s 2013 Audited Financial Statements, visit:

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; 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.






March 31, 2014
Dollars in Thousands

December 31, 2013
Dollars in Thousands

Cash and balances due from depository institutions:

Non-interest-bearing balances and currency and coin $ 4,517 $ 3,901
Interest-bearing balances 10,986 9,070
Held-to-maturity securities 0 35,392
Available-for-sale securities 49,657 22,603
Loans and lease financing receivables:
Loans and leases, net of unearned income $ 201,099 $ 201,262
LESS: Allowance for loan and lease losses 3,839 3,824
Loans and leases, net of allowance 197,260 197,438
Premises and fixed assets (including capitalized leases) 6,278 6,330
Other Real Estate Owned 5,697 5,959
Other assets   13,588     14,159  
Total Assets $ 287,983   $ 294,852  
Interest-bearing $ 206,131 $ 215,887
Non-interest-bearing 55,028 52,597
Total deposits 261,159 268,484
Other liabilities   1,541     1,454  
Total Liabilities 262,700 269,938
Equity Capital
Common Stock: par value $5.00; 1,800,000 shares authorized: 1,743,618
shares issued and outstanding at March 31, 2014 and December 31, 2013 8,718 8,718
Surplus 3,988 3,988
Treasury Stock 0 0
Stock Options 182 182
Retained earnings 12,010 11,792
Accumulated other comprehensive income   385     234  
Total Equity Capital   25,283     24,914  
Total Liabilities, and Equity Capital $ 287,983   $ 294,852  
Capital Ratios:
Capital to Asset ratio 8.78 % 8.45 %
Tier 1 leverage ratio 7.75 % 7.49 %
Tier 1 risk-based capital ratio 11.59 % 11.10 %
Total risk-based capital ratio 12.85 % 12.36 %





Quarter Ended

Twelve Months Ended
December 31,

2014 2013         2013 2012



Income Statement Dollars in Thousands         Dollars in Thousands
Interest and fee income:
Interest and fee income on loans $ 2,743 $ 2,908 $ 11,412 $ 12,465
Interest income on balances due from depository institution 2 4 28 17
Interest and dividend income on securities 193 187 751 923
Other interest income   11     11     44     42  
Total Interest and fee income 2,949 3,110 12,235 13,447
Interest Expense:
Interest on deposits   511     623             2,385     2,903  
Total Interest expense   511     623             2,385     2,903  
Net Interest Income   2,438     2,487             9,850     10,544  
Provision for Loan Losses 225 675 3,935 2,681
Non-Interest Income:
Service charges on deposit accounts 88 88 378 430
Net loss on sale of real estate owned (144 ) 0 (229 ) (29 )
Income on bank owned life insurance 52 53 214 164
Other non-interest income   51     122             331     371  
Total non-interest income   47     263             694     936  
Realized gains (losses) on securities 248 0 9 20
Non-interest expenses
Salaries and employee benefits 963 1,026 4,118 4,226
Expenses on premises and fixed assets 297 299 1,096 1,132
Other non-interest expenses   1,005     841             3,696     3,269  
Total non-interest expenses   2,265     2,166             8,910     8,627  
Income before Income taxes: 243 (91 ) (2,292 ) 192
Income taxes (benefit)   25     (110 )           (1,180 )   (229 )
Net Income $ 218   $ 19           $ (1,112 ) $ 421  
Earnings per Share $ 0.13   $ 0.01           $ (0.64 ) $ 0.25  


Community Bank of Bergen County, NJ
Peter A. Michelotti, 201-587-1333
President and CEO

Release Summary

Community Bank of Bergen County NJ Reports Q1 2014 Earnings


Community Bank of Bergen County, NJ
Peter A. Michelotti, 201-587-1333
President and CEO