New Jersey Community Bank Reports

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News Desk 2018

Apr 17, 2013 at 5:15 PM

New Jersey Community Bank Reports First Quarter 2013 Results

FREEHOLD, NJ--(Marketwired - Apr 17, 2013) - New Jersey Community Bank ( OTCQB : NJCB ) (the "Bank") reported net income of $90 thousand, or $0.05 per common share for the three months ended March 31, 2013, compared with a net income of $108 thousand, or $0.06 per common share, for the same period in the prior year. Although the net interest income increased $34 thousand year over year but it was more than offset by an increase of $56 thousand in total non-interest expense. Net interest margin increased 14 basis points year over year largely due to a decline of 29 basis points in cost of interest-bearing liabilities.

Robert D. O'Donnell, Chairman and CEO, commented that, "We are pleased with the first quarter 2013 results during this continued market volatility and depressed interest rates. Recent months have brought some encouraging news on the employment and market fronts but the banking industry continues to reflect the impact of prolonged low interest rates. Our first quarter results reflect a decline in total assets which was driven primarily by our business decision to reduce the excess cash levels by paying off certain deposits that matured during the first quarter 2013. Though the new loan demand has softened, we continue to seek lending opportunities while focusing on safe and sound lending practices."

Balance Sheet Summary

At March 31, 2013, total assets were $130.9 million, a decline of $7.8 million from December 31, 2012. Total cash and cash equivalents declined $7.8 million compared to year end 2012, offsetting a similar decline in total deposits. Investment securities increased $1.4 million while loans receivable decreased $1.4 million compared to year end 2012. The decrease in loans receivables was a result of payoff of few loans and ongoing scheduled principal payments.

Total deposits decreased $7.9 million compared to the levels at year end 2012. Majority of the decrease resulted from the maturing time deposits which were paid off utilizing the excess levels of cash and cash equivalents during the first quarter of 2013. During the quarter, savings, NOW and money market deposits combined increased $1.5 million while non-interest bearing deposits declined by the same amount.

Shareholders' equity totaled $15.8 million at March 31, 2013, increasing moderately from year-end 2012. The Bank's capital ratios remain strong and exceed the regulatory requirements to be deemed a well capitalized financial institution.

Results of Operations

For the quarter ended March 31, 2013, net interest income totaled $1.1 million, increasing marginally over the same period in the prior year. At March 31, 2013, net interest margin was 3.56%, an improvement of 14 basis points compared to the same period a year ago resulting from a decrease in cost of interest-bearing deposits. At March 31, 2013, yield on average earning assets declined 12 basis points to 4.39% while the cost of interest-bearing deposits declined 29 basis points to 0.97%, compared to the same period in the prior year primarily due to low interest rates.

The provision for loan loss was $35 thousand for the first quarter 2013, a decrease of $10 thousand compared to a year-ago quarter. The allowance for loan loss at period-end was $1.2 million, or 1.36% of total loans. Asset quality remains resilient and the current level of the allowance for loan loss is considered to be adequate.

Non-interest income decreased $17 thousand to $86 thousand for the quarter ended March 31, 2013, compared with $103 thousand for the same quarter in the prior year. Majority of such decrease is directly related to the decrease in fees and service charges on deposit accounts offset by an increase of $14 thousand in all other income.

Non-interest expense totaled $1.0 million for the quarter ended March 31, 2013, an increase of $56 thousand, from a year-ago quarter. Of the total increase in non-interest expense, salaries and employee benefits increased $29 thousand as a result of increases in health costs and professional and other fees increased $21 thousand due to increase in cost of professional services utilized by the Bank.

About the Bank New Jersey Community Bank is a state-chartered commercial bank headquartered in Freehold, New Jersey. The Bank opened for business in July 2008 and operates three full-service banking offices in the central New Jersey counties of Monmouth and Middlesex. The Bank provides traditional commercial and retail banking services to small businesses and consumers. For additional information about New Jersey Community Bank, please visit www.njcbk.com or call 732-431-2265.

Forward-Looking Statements This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Bank, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, change in economic climate, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Bank's business, competitive pressures, changes in accounting, tax or regulatory practices or requirements, resolution of tax reviews, and those risk factors detailed in the Bank's periodic reports. The Bank undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.



New Jersey Community Bank
Selected Financial Highlights
(unaudited)

			As of or for the Quarters Ended
(in thousands, except per share and percentage data)			3/31/2013		12/31/2012		9/30/2012		6/30/2012		3/31/2012

Summary of Operations:
	Interest income		$	1,409	$	1,501	$	1,496	$	1,465	$	1,459
	Interest expense			267		302		315		323		351
		Net interest income		1,142		1,199		1,181		1,142		1,108
	Provision for loan and lease loss			35		27		20		25		45
		Net interest income after provision for loan loss		1,107		1,172		1,161		1,117		1,063
	Non-interest income			86		95		75		77		102
	Non-interest expense			1,031		1,026		1,223		994		974
		Income before income tax expense		161		241		13		200		191
	Income tax expense			72		101		12		88		83
		Net income	$	90	$	140	$	1	$	112	$	108

Per Common Share ⁽¹⁾ :
		Basic	$	0.05	$	0.08	$	0.00	$	0.06	$	0.06
		Diluted		0.05		0.08		0.00		0.06		0.06
	Book value per share			8.72		8.64		8.59		8.57		8.47
	Average shares outstanding			1,818		1,818		1,818		1,818		1,818
	Average diluted shares outstanding			1,818		1,818		1,818		1,818		1,818

Selected Financial Ratios:
	Return on average assets			0.26%		0.42%		0.00%		0.34%		0.32%
	Return on average common equity			2.27%		3.56%		0.03%		2.90%		2.81%
	Average equity to average assets			11.65%		11.90%		11.94%		11.80%		11.47%
	Risk-based capital:
		Total risk-based capital ratio		16.20%		15.71%		15.81%		16.15%		16.67%
		Tier 1 risk-based capital ratio		15.00%		14.58%		14.66%		14.99%		15.49%
		Tier 1 leverage capital ratio		11.38%		11.61%		11.60%		11.50%		11.16%

Financial Condition:
	Total assets		$	130,946	$	138,678	$	132,251	$	131,336	$	132,176
	Loans, net of unearned income			90,736		92,157		93,322		90,440		87,794
	Deposits			114,614		122,536		116,257		115,345		116,385
	Shareholder's equity			15,848		15,712		15,621		15,587		15,406

(1) Data have been restated to give effect to the 5% stock dividend declared and paid in 2012.

New Jersey Community Bank

Statements of Financial Condition

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