FREEHOLD, NJ--(Marketwired - Jul 18, 2013) - New Jersey Community Bank (
Robert D. O'Donnell, Chairman and CEO, commented that, "Our second quarter earnings benefitted from margin expansion compared to the linked quarter as well as the same quarter a year ago, despite an ultra-competitive environment. We were challenged this quarter by the level of loan payoffs which dampened the new loan growth. We continue to maintain conservative credit discipline and concentrate on closing the approved loans in our pipeline. Expense management remains a key focus as we continue to seek out additional efficiencies within our operations."
All common share data presented in this press release including earnings per common share data was adjusted to reflect a five percent stock dividend issued on May 31, 2013.
Balance Sheet Summary
At June 30, 2013, total assets were $130.9 million, a decline of $7.8 million from December 31, 2012. Total cash and cash equivalents declined $10.5 million compared to year end 2012, majority of which was offset by a decline in total deposits. Investment securities increased $2.4 million while loans receivable decreased $0.6 million compared to year end 2012. The decrease in loans receivables was a result of 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 six months of 2013. Savings, NOW and money market deposits combined increased $4.1 million while non-interest bearing deposits declined $0.8 million compared to the levels reported at year-end 2013.
Shareholders' equity totaled $15.8 million at June 30, 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 June 30, 2013, net interest income totaled $1.2 million, an increase of $66 thousand over the same period in the prior year. The increase in net interest income was primarily due to declining interest rates on interest-bearing deposits. Net interest margin increased 55 basis points to 3.97% for the quarter ended June 30, 2013, over the comparable quarter in 2012. Average yield on earning assets was 4.72%, increasing 9 basis points over the prior year and average rate on paying liabilities was 0.88%, dropping 95 basis points over the comparable quarter in the prior year.
The provision for loan loss was $55 thousand for the second quarter 2013, an increase of $30 thousand compared to the year-ago quarter. The allowance for loan loss at period-end was $1.3 million, or 1.41% of total loans. Mr. O'Donnell noted, "We monitor the adequacy of the allowance for loan loss on an ongoing basis and consider the current level of the allowance for loan loss to be adequate."
Non-interest income increased $41 thousand to $118 thousand for the quarter ended June 30, 2013 compared with $77 thousand for the same quarter in the prior year. Majority of the increase in non-interest income resulted from increase in cash surrender value of bank-owned life insurance and gain on sale of investment securities available for sale.
Non-interest expense totaled $1.1 million for the quarter ended June 30, 2013, an increase of $77 thousand from year-ago quarter. Salaries and employee benefits increased $24 thousand due to annual salary increases and increased health benefit costs. Professional and other fees increased $38 thousand in part due to increase in audit fees as it relates to changing regulatory landscape and legal services utilized by the Bank. All other expenses combined increased a net of $15 thousand.
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) | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | 6/30/2012 | |||||||||||||||
| Summary of Operations: | ||||||||||||||||||||
| Interest income | $ | 1,436 | $ | 1,409 | $ | 1,501 | $ | 1,496 | $ | 1,465 | ||||||||||
| Interest expense | 228 | 267 | 302 | 315 | 323 | |||||||||||||||
| Net interest income | 1,208 | 1,142 | 1,199 | 1,181 | 1,142 | |||||||||||||||
| Provision for loan and lease loss | 55 | 35 | 27 | 20 | 25 | |||||||||||||||
| Net interest income after provision for loan loss | 1,153 | 1,107 | 1,172 | 1,161 | 1,117 | |||||||||||||||
| Non-interest income | 118 | 86 | 95 | 75 | 77 | |||||||||||||||
| Non-interest expense | 1,071 | 1,031 | 1,026 | 1,223 | 994 | |||||||||||||||
| Income before income tax expense | 200 | 161 | 241 | 13 | 200 | |||||||||||||||
| Income tax expense | 87 | 72 | 101 | 12 | 88 | |||||||||||||||
| Net income | $ | 112 | $ | 90 | $ | 140 | $ | 1 | $ | 112 | ||||||||||
| Per Common Share (1) : | ||||||||||||||||||||
| Basic | $ | 0.06 | $ | 0.05 | $ | 0.07 | $ | 0.00 | $ | 0.06 | ||||||||||
| Diluted | 0.06 | 0.05 | 0.07 | 0.00 | 0.06 | |||||||||||||||
| Book value per share | 8.29 | 8.31 | 8.23 | 8.19 | 8.17 | |||||||||||||||
| Average shares outstanding | 1,908 | 1,908 | 1,908 | 1,908 | 1,908 | |||||||||||||||
| Average diluted shares outstanding | 1,908 | 1,908 | 1,908 | 1,908 | 1,908 | |||||||||||||||
| Selected Financial Ratios: | ||||||||||||||||||||
| Return on average assets | 0.35 | % | 0.26 | % | 0.42 | % | 0.00 | % | 0.34 | % | ||||||||||
| Return on average common equity | 2.82 | % | 2.27 | % | 3.56 | % | 0.03 | % | 2.90 | % | ||||||||||
| Average equity to average assets | 12.33 | % | 11.65 | % | 11.90 | % | 11.94 | % | 11.80 | % | ||||||||||
| Risk-based capital: | ||||||||||||||||||||
| Total risk-based capital ratio | 16.10 | % | 16.20 | % | 15.71 | % | 15.81 | % | 16.15 | % | ||||||||||
| Tier 1 risk-based capital ratio | 14.87 | % | 15.00 | % | 14.58 | % | 14.66 | % | 14.99 | % | ||||||||||
| Tier 1 leverage capital ratio | 12.06 | % | 11.38 | % | 11.61 | % | 11.60 | % | 11.50 | % | ||||||||||
| Financial Condition: | ||||||||||||||||||||
| Total assets | $ | 130,877 | $ | 130,946 | $ | 138,678 | $ | 132,251 | $ | 131,336 | ||||||||||
| Loans, net of unearned income | 91,515 | 90,736 | 92,157 | 93,322 | 90,440 | |||||||||||||||
| Deposits | 114,675 | 114,614 | 122,536 | 116,257 | 115,345 | |||||||||||||||
| Shareholder's equity | 15,810 | 15,848 | 15,712 | 15,621 | 15,587 | |||||||||||||||
| (1) Data have been restated to give effect to the 5% stock dividend declared and paid in 2013. |
| New Jersey Community Bank | ||||||||||||
| Statements of Financial Condition | ||||||||||||
| (dollars in thousands, except share data) | ||||||||||||
| June 30, | December 31, | |||||||||||
| 2013 | 2012 | |||||||||||
| Assets | (unaudited) | |||||||||||
| Cash and due from banks - non-interest bearing | $ | 1,934 | $ | 1,138 | ||||||||
| Federal funds sold and interest-bearing deposits with banks | 6,863 | 18,180 | ||||||||||
| Total Cash and Cash Equivalents | 8,797 | 19,318 | ||||||||||
| Due from banks - time deposits | 10,009 | 7,768 | ||||||||||
| Investment Securities: | ||||||||||||
| Available-for-sale | 13,295 | 11,092 | ||||||||||
| Held-to-maturity | 3,139 | 2,905 | ||||||||||
| Total Investment Securities | 16,434 | 13,997 | ||||||||||
| Loans Receivable, net of unearned income | 91,515 | 92,157 | ||||||||||
| Less: Allowance for loan losses | (1,290 | ) | (1,207 | ) | ||||||||
| Net Loans | 90,225 | 90,950 | ||||||||||
| Premises and equipment, net | 2,343 | 2,420 | ||||||||||
| Accrued interest receivable | 391 | 351 | ||||||||||
| Bank-owned life insurance | 1,532 | 1,507 | ||||||||||
| Deferred tax assets | 692 | 686 | ||||||||||
| Other assets | 454 | 1,681 | ||||||||||
| Total Assets | $ | 130,877 | $ | 138,678 | ||||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 9,225 | $ | 10,073 | ||||||||
| Savings, NOW and money market | 44,464 | 40,357 | ||||||||||
| Time deposits $100M and over | 43,727 | 53,025 | ||||||||||
| Time deposits, other | 17,259 | 19,081 | ||||||||||
| Total Deposits | 114,675 | 122,536 | ||||||||||
| Accrued interest payable | 9 | 8 | ||||||||||
| Other liabilities | 383 | 422 | ||||||||||
| Total Liabilities | 115,067 | 122,966 | ||||||||||
| Shareholders' Equity | ||||||||||||
| Common stock, $2 par value; authorized 10,000,000 shares; issued and outstanding 1,908,445 and 1,648,783 shares, respectively | 3,817 | 3,635 | ||||||||||
| Surplus | 13,722 | 13,854 | ||||||||||
| Accumulated Deficit | 1,583 | ) | (1,786 | ) | ||||||||
| Accumulated other comprehensive income (loss) | (146 | ) | 9 | |||||||||
| Total Shareholders' Equity | 15,810 | 15,712 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 130,877 | $ | 138,678 | ||||||||
| New Jersey Community Bank | |||||||||||||||
| Statements of Income (unaudited) | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Interest Income | |||||||||||||||
| Loans receivable, including fees | $ | 1,348 | $ | 1,345 | $ | 2,672 | $ | 2,684 | |||||||
| Investment securities | 69 | 104 | 133 | 205 | |||||||||||
| Federal funds sold and interest-bearing deposits with banks | 5 | 7 | 14 | 14 | |||||||||||
| Due from banks - interest bearing | 14 | 9 | 26 | 20 | |||||||||||
| Total Interest Income | 1,436 | 1,465 | 2,845 | 2,923 | |||||||||||
| Interest Expense | |||||||||||||||
| Deposits | 228 | 323 | 494 | 674 | |||||||||||
| Net Interest Income before Provision for Loan Loss | 1,208 | 1,142 | 2,351 | 2,249 | |||||||||||
| Provision for Loan Loss | 55 | 25 | 90 | 70 | |||||||||||
| Net Interest Income after Provision for Loan Loss | 1,153 | 1,117 | 2,261 | 2,179 | |||||||||||
| Non-Interest Income | |||||||||||||||
| Fees and service charges on deposit accounts | 74 | 53 | 132 | 144 | |||||||||||
| Loan fee income | 3 | 13 | 6 | 16 | |||||||||||
| Gain on sale of secirities available for sale | 16 | - | 16 | - | |||||||||||
| All other income | 25 | 11 | 50 | 20 | |||||||||||
| Total Non-Interest Income | 118 | 77 | 204 | 180 | |||||||||||
| Non-Interest Expense | |||||||||||||||
| Salaries and employee benefits | 610 | 587 | 1,203 | 1,151 | |||||||||||
| Occupancy and equipment | 185 | 189 | 371 | 379 | |||||||||||
| Data processing services | 42 | 38 | 85 | 78 | |||||||||||
| Professional and other fees | 107 | 69 | 194 | 135 | |||||||||||
| Advertising and promotion | 6 | 5 | 12 | 17 | |||||||||||
| Federal insurance assessment | 28 | 28 | 56 | 57 | |||||||||||
| Other operating expenses | 93 | 78 | 181 | 152 | |||||||||||
| Total Non-Interest Expenses | 1,071 | 994 | 2,102 | 1,969 | |||||||||||
| Income Before Income Tax Expense | 200 | 200 | 363 | 390 | |||||||||||
| Income tax expense | 87 | 88 | 159 | 170 | |||||||||||
| Net Income | $ | 113 | $ | 112 | $ | 204 | $ | 220 | |||||||
| Income per share: | |||||||||||||||
| Basic and diluted | $ | 0.06 | $ | 0.06 | $ | 0.11 | $ | 0.12 | |||||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic and diluted | 1,908 | 1,908 | 1,908 | 1,908 | |||||||||||
| New Jersey Community Bank | |||||||||||||||||||||
| Analysis of Average Balance Sheet and Net Interest Income (unaudited) | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||
| June 30, 2013 | June 30, 2012 | ||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||
| Loans | $ | 90,699 | $ | 1,348 | 5.96 | % | $ | 88,249 | $ | 1,345 | 6.13 | % | |||||||||
| Investment securities | 14,875 | 69 | 1.87 | % | 20,795 | 104 | 2.05 | % | |||||||||||||
| Federal funds sold and interest-bearing deposits with banks | 8,563 | 5 | 0.22 | % | 12,776 | 7 | 0.20 | % | |||||||||||||
| Due from banks - time deposits | 9,262 | 14 | 0.61 | % | 5,602 | 9 | 0.65 | % | |||||||||||||
| Total interest-earning assets | 123,399 | 1,436 | 4.67 | % | 127,422 | 1,465 | 4.63 | % | |||||||||||||
| Allowance for loan loss | (1,253 | ) | (1,152 | ) | |||||||||||||||||
| Cash and due from banks - non-interest bearing | 1,697 | 1,244 | |||||||||||||||||||
| All other assets | 5,246 | 3,900 | |||||||||||||||||||
| Total assets | $ | 129,089 | $ | 131,414 | |||||||||||||||||
| Interest Bearing Liabilities: | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Savings, NOW and money market | $ | 42,635 | 49 | 0.46 | % | $ | 39,480 | 74 | 0.81 | % | |||||||||||
| Time deposits $100M and over | 44,282 | 118 | 1.07 | % | 46,927 | 162 | 1.47 | % | |||||||||||||
| Time deposits, other | 17,482 | 60 | 1.38 | % | 21,653 | 87 | 1.61 | % | |||||||||||||
| Total interest-bearing deposits | 104,399 | 228 | 0.88 | % | 108,060 | 323 | 1.26 | % | |||||||||||||
| Demand | 8,344 | 7,401 | |||||||||||||||||||
| Other liabilities | 434 | 446 | |||||||||||||||||||
| Total liabilities | 113,177 | 115,907 | |||||||||||||||||||
| Stockholders' equity | 15,912 | 15,507 | |||||||||||||||||||
| Total liabilities & stockholders' equity | $ | 129,089 | $ | 131,414 | |||||||||||||||||
| Net interest income | $ | 1,208 | $ | 1,142 | |||||||||||||||||
| Average interest rate spread | 3.79 | % | 3.37 | % | |||||||||||||||||
| Net interest margin | 3.93 | % | 3.42 | % | |||||||||||||||||
Contacts at New Jersey Community Bank: Robert D. O'Donnell Chairman and CEO rodonnell@njcbk.com Terry H. Thompson President and COO tthompson@njcbk.com Naqi A. Naqvi Executive Vice President & CFO nnaqvi@njcbk.com New Jersey Community Bank 3441 Route Nine North, Freehold, New Jersey 07728 (732) 431-2265 Fax (732) 303-1831 www.njcbk.com
