RUMSON, N.J., Nov. 4, 2013 (GLOBE NEWSWIRE) -- Rumson-Fair Haven Bank & Trust (OTCBB: RFHB ) reported net income of $195 thousand, or $.06 per diluted share, for the quarter ended September 30, 2013, as compared to $407 thousand, or $.13 per diluted share, for the same period in 2012. For the nine months ended September 30, 2013, the Company reported net income of $620 thousand, or $.19 per diluted share, a decrease of $102 thousand, or 14.1%, when compared to $722 thousand, or $0.23 per diluted share, reported for the same period in 2012.
Included in the September 2013 third-quarter earnings were pretax merger-related expenses of $180 thousand (or $140 thousand after taxes). The Company realized no investment securities gains in the third quarter of 2013 and $589 thousand (or $354 thousand after taxes) in the third quarter of 2012. Excluding both merger related expenses and net securities gains, net income for the third quarter of 2013 would have been $335 thousand, significantly above the net income for the third quarter of 2012 of $53 thousand.
For the nine months ended September 30, 2013, pretax merger related expenses were $251 thousand (or $183 thousand after taxes). The Company realized investment securities gains of $102 thousand (or $61 thousand after taxes) in the first nine months of 2013 and $745 thousand (or $447 thousand after taxes) in the same period of 2012. Excluding both merger related expenses and net securities gains, net income for the first nine months of 2013 would have been $742 thousand, a significant increase from net income for the same period of 2012 of $275 thousand.
Total assets at September 30, 2013 and 2012 were $215.8 million and $208.7 million, respectively. The Bank's loan portfolio has reached a record high level at September 30, 2013 of $141.8 million. The loan portfolio has grown approximately $31.0 million, or 28.0%, compared to $110.8 million at September 30, 2012.
Joseph Castelluci, President and Chief Executive Officer, stated, "we are continuing to gain core earnings momentum as a result of strong loan growth in both our commercial and residential loan divisions, notwithstanding the challenging economic and interest rate environment. In addition, our non-interest revenues from the sale of residential mortgages continue to positively impact our earnings. We are a relationship driven Bank and are fortunate to be forging new customer relationships, while caring for our existing customers. Our ability to significantly increase our earning assets, while reducing the cost of average interest bearing liabilities, has resulted in an increase in net interest margin to 3.04% for the third quarter of 2013, compared to 2.56% for the third quarter of 2012. We are proud to report a new record loan portfolio level in the history of the Company at September 30, 2013. Most importantly, we have not sacrificed credit quality for loan growth. As expected, our third quarter and nine month results for 2013 were adversely affected by a significant amount of merger related expenses. While we look forward to the consummation of our merger with 1 st Constitution, we remain focused on maintaining our excellent credit quality, our disciplined approach to cost management, and continuing our improvement in operating performance."
Net interest income increased, for the nine months ended September 30, 2013, to $4.5 million, which is an increase of $381 thousand or 9.2%, from $4.1 million for the nine months ended September 30, 2012. Net interest income for the three months ended September 30, 2013 and 2012 was $1.6 million and $1.4 million, respectively. The yield on average interest-earning assets increased by 37 basis points to 3.69% and the cost of average interest-bearing liabilities decreased by 10 basis points to 0.85% for the three months ended September 30, 2013, compared to the third quarter of 2012.
Non-interest expense for the nine months ended September 30, 2013 was $4.2 million, compared to $4.1 million for the same period of 2012. Management remains focused on operating as efficiently as possible and controlling costs.
At September 30, 2013, non-performing loans amounted to $1.0 million or 0.5% of total assets, as compared with $1.2 million, or 0.6% of total assets at September 30, 2012. The allowance for loan losses was $1.7 million at September 30, 2013 or 1.2% of total loans, which management believes is adequate coverage for the risks inherent in the loan portfolio. During the first nine months of 2013 and 2012, there were no loan charge-offs and $1 thousand, respectively.
Deposit balances at September 30, 2013 and September 30, 2012 were $186.1 million and $178.3 million respectively. Management has continued its focus to grow core deposit accounts.
Stockholders' equity increased by $1.5 million or 8.4% to $19.2 million at September 30, 2013 from $17.7 million at September 30, 2012. Tangible book value amounted to $5.89 per share.
The Bank is a New Jersey state-chartered bank with five offices; the Bank's principal office is located at 20 Bingham Avenue, Rumson with branches located at 636 River Road, Fair Haven, 500 Broad Street, Shrewsbury, 251 East Main Street, Oceanport and 511 Cookman Avenue, Asbury Park. The branch in Asbury Park trades under the name The Community Bank of Asbury Park. Please visit our website at www.rfhbank.com for additional information.
Rumson-Fair Haven Bank & Trust Company Gayle S. Hoffman Senior Vice President and Chief Financial Officer (732) 933-4445
