Community Bank of Bergen County, NJ Reports First Quarter 2017 Net Income of $0.21 Per Share

MAYWOOD, N.J.--()--Community Bank of Bergen County, NJ (OTCPink:CMTB) reported net income for the first quarter of 2017 of $400,000, or $0.21 per diluted share, which is flat compared to net income reported for the first quarter of 2016 ($401,000, or $0.21 per diluted share).

Net interest income for the first quarter of 2017 decreased by $101,000, and total interest income decreased by $75,000 over the first quarter of 2016, largely the result of lower yields on outstanding loans and flat average outstanding balances during the comparative periods ($233,837,000 for the first quarter of 2017 vs. $233,544,000 for the first quarter of 2016). A $221,000 decrease in interest and fee income from loans was partially offset by an increase of $122,000 in interest and dividends for securities, related to significant growth in average investments year-on-year ($81,201,000 for the first quarter 2017 vs. $65,570,000 for the first quarter of 2016). Interest expense also increased by $26,000 this quarter over the first quarter of 2016, due to a notable rise in interest bearing deposits, period-over-period (an average of $254,513,000 for the first quarter of 2017 vs. $232,294,000 during the first quarter of 2016). Additionally, average non-interest bearing deposits grew from $59,873,000 for the first quarter of 2016 to an average of $63,280,000 in 2017.

The decrease in net income in the first quarter of 2017 was offset by a $100,000 decrease in the provision for loan losses (from $100,000 in the first quarter of 2016 to no provision in 2017).

A $12,000 increase in non-interest income and a $55,000 decrease in non-interest expenses in the first quarter of 2017 compared to the prior year period were offset by a $67,000 increase in income taxes, quarter-over-quarter, mainly a result of higher pre-tax earnings and lower tax-exempt income attributed to the Bank’s declining municipal bond portfolio. These first quarter 2017 results included: $6,000 higher deposit account fee income; a $14,000 increase in losses on the disposition of OREO properties; a decrease of $40,000 in salaries and benefits; an increase of $7,000 in premises and fixed assets, mainly a result of weather related costs; and a $22,000 reduction in all other expenses, notably FDIC insurance (a reduction of $52,700) due to the lower assessment levels which began in the third quarter of 2016.)

The Bank’s total assets at March 31, 2017 rose by $14.9 million from December 31, 2016, due to increases in: cash and due from balances of $4.3 million, investments of $4.8 million and $7.0 million in new loans. These increases were funded by $13.9 million in additional deposits.

“Earnings remain stable compared to last year, and we continue to strengthen our balance sheet,” said Peter A. Michelotti, the Bank’s President & CEO.

At December 31, 2016, the OREO portfolio listed five properties totaling $1.5 million. During the first quarter of 2017, one property was sold at a total loss of $63,000. A second property was sold after sustaining a write-down to the allowance for loan losses of $5,000. In addition, the Bank is continuing to mitigate its problem loans with a diligent work out process. During the first quarter, however, there was an increase in total delinquent loans from $7.4 million at year end 2016, to $8.6 million at March 31, 2017. At March 31, 2017, the ratio of non-performing loans to total loans was 2.53 percent compared to 2.05 percent reported at December 31, 2016.

The Bank’s capital closed this quarter at $29,468,000, up from the $28,689,000, reported at December 31, 2016, with book value per share at $15.36 as compared to $14.96 at December 31, 2016. The Bank remains “well capitalized” as defined under all regulatory guidance.

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. On April 11, 2017, the Bank entered into a definitive agreement with Sussex Bancorp and Sussex Bank pursuant to which Sussex Bancorp will acquire the Bank in an all-stock transaction. The transaction is expected to be completed during the third quarter of 2017, subject to approval by each company's shareholders, as well as regulatory approvals and other customary closing conditions.

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, and to view CBBC’s 2016 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. The words “may,” “could,” “should,” “would,” “will,” “project,” “continue,” “believe,” “anticipate,” “expect,” “intend,” “plan,” and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Bank pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy, both nationally and locally, 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.

( in Thousands, Except Percentages and Per Share Data)

Financial Highlights:

Symbol   CMTB   52 week range




Financial Data - Year to date
  Unaudited Unaudited
At March 31, At December 31,
    2017   2016

Balance Sheet Highlights

Total securities $ 83,892 $ 79,108
Total loans $ 236,239 $ 229,267
Allowance for loan losses $ 2,997 $ 3,130
Total assets $ 357,165 $ 342,222
Total deposits $ 321,851 $ 307,908
Total liabilities $ 327,697 $ 313,533
Total shareholders' equity $ 29,468 $ 28,689
Unaudited Unaudited

For the three months

For the three months

Financial data -Year to date

ended March 31, 2017

ended March 31, 2016

Net Interest income $ 2,642 $ 2,743
Provision for loan losses $ 0 $ 100
Loss on sale of OREO ($63 ) ($49 )
Total other income $ 171 $ 145
Total other expenses $ 2,141 $ 2,196
Income before provision for income taxes $ 609 $ 543
Provision for income taxes $ 209 $ 142
Net income after tax   $ 400     $ 401  
Other Earnings Information
Earnings per share* $ 0.21 $ 0.21
Return on Assets     0.45 %     0.47 %
Share Information
At March 31, At December 31,
    2017   2016
Market price per share $ 13.90 $ 13.50
Book Value per common share $ 15.36 $ 14.96
Outstanding Shares -period ending 1,918,144 1,918,144
Price to Earnings ratio**     16.55       15.17  
Capital ratios
Total equity to total assets 8.25 % 8.38 %
Tier 1 leverage ratio 8.23 % 8.45 %
Common equity tier 1 capital ratio 14.21 % 14.43 %
Tier 1 capital ratio 14.21 % 14.43 %
Total capital ratio     15.47 %     15.69 %
Asset Quality and Ratios
Other Real Estate Owned (OREO) $ 410 $ 1,521
Non-acccrual loans $ 5,895 $ 4,694
Troubled debt restructured loans ("TDRs") $ 2,475 $ 2,610
Non-performing loans/total loans 2.53 % 2.05 %
Allowance for loan loss/total loans 1.27 % 1.37 %
Allowance for loan loss/non-accrual loans 50 % 67 %


* Earnings per share at March 31, 2016 are adjusted for the stock dividend issued in April 2016
** Calculated by dividing the market price of a share of the Bank's common stock for the period of the year in question by the Bank's annualized earning per share for that period.
  March 31, 2017   December 31, 2016
(Unaudited) (Unaudited)
Assets Dollars in Thousands Dollars in Thousands
Cash and balances due from depository institutions:    
Non-interest-bearing balances and currency and coin $ 4,147 $ 2,908
Interest-bearing balances 16,437 13,422
Available-for-sale securities 83,892 79,108
Loans and lease financing receivables:
Loans and leases, net of unearned income $






LESS: Allowance for loan and lease losses 2,997 3,130
Loans and leases, net of allowance 233,242 226,137
Premises and fixed assets (including capitalized leases) 5,907 5,759
Other Real Estate Owned 410 1,521
Other assets   13,130     13,367  
Total Assets $ 357,165   $ 342,222  
Interest-bearing $ 257,031 $ 243,805
Non-interest-bearing 64,820 64,100
Total deposits 321,851 307,905
Borrowed funds 4,000 4,000
Other liabilities   1,846     1,628  
Total Liabilities 327,697 313,533
Equity Capital
Common Stock*: par value $5.00; 5,000,000 authorized;
1,918,144 shares issued and outstanding, respectively 9,591 9,591
Surplus 5,239 5,239
Retained earnings 14,941 14,541
Accumulated other comprehensive income   (303 )   (682 )
Total Equity Capital   29,468     28,689  
Total Liabilities, and Equity Capital $ 357,165   $ 342,222  
Capital Ratios:
Capital to Asset ratio 8.25 % 8.38 %
Tier 1 leverage ratio 8.23 % 8.45 %
Common equity tier 1 capital ratio 14.21 % 14.43 %
Tier 1 risk-based capital ratio 14.21 % 14.43 %
Total risk-based capital ratio 15.47 % 15.69 %
  Quarters Ended
March 31,
2017   2016
Income Statement Dollars in Thousands
Interest and fee income:
Interest and fee income on loans $ 2,738 $ 2,959
Interest income on balances due from depository institution 36 13
Interest and dividend income on securities 368 246
Other interest income   15     14  
Total Interest and fee income 3,157 3,232
Interest Expense:
Interest on deposits 503 471
Interest on borrowed funds   12     18  
Total Interest expense   515     489  
Net Interest Income   2,642     2,743  
Provision for Loan Losses 0 100
Non-Interest Income:
Service charges on deposit accounts 58 52
Net loss on sale of real estate owned (63 ) (49 )
Income on bank owned life insurance 48 49
Other non-interest income   65     44  
Total non-interest income   108     96  
Realized gains on securities 0 0
Non-interest expenses
Salaries and employee benefits 1,124 1,164
Expenses on premises and fixed assets 215 208
Other non-interest expenses   802     824  
Total non-interest expenses   2,141     2,196  
Income before Income taxes: 609 543
Income taxes   209     142  
Net Income $ 400   $ 401  
Earnings per share * $ 0.21   $ 0.21  

*Earnings per share has been restated to reflect the 10% stock dividend granted in April of 2016


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

Release Summary

Community Bank of Bergen County, NJ Reports First Quarter 2017 Net Income of $0.21 Per Share


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