Community Bank of Bergen County, NJ (OTCBB: CMTB) reported earnings today for the quarter and year ended December 31, 2012. The Bank had a net loss this quarter of $10,000 or $0.01 per diluted share which is an improvement over a loss of $120,000, or $0.20 per diluted share, recorded during the fourth quarter of 2011.
The Bank's improvement in its results of operations in the fourth quarter of 2012, as compared to the same quarter last year, is the result of a $250,000 decrease in the loan loss provision from that of 2011 ($730,000 for the quarter ended December 31, 2012 as compared to $980,000 for the quarter ended December 31, 2011). This was offset by a $63,000 improvement in comparative net losses on the disposition of OREO properties and a $41,000 increase in other non-interest income primarily generated by the Bank's investment in Bank Owned Life Insurance (BOLI) ($54,000 of income for the quarter ended December 31, 2012 as compared to $26,000 for the quarter ended December 31, 2011). Additionally, net interest income for the quarter decreased, largely as a result of a $237,000 reduction in interest and fee income, in light of continued lower overall market interest rates that were partially offset by a corresponding savings of $168,000 in interest paid on outstanding deposits as compared to the same period in 2011. Continued efforts by the Bank to increase efficiency in staff and overhead utilization is represented in the $184,000 of cost savings for non-interest expenses in all categories, as compared to the same period in 2011.
For the year ended December 31, 2012, the Bank reported net income of $421,000, down $402,000 from the net income of $823,000 reported for the year ended December 31, 2011. The decrease in net income for the year ended December 31, 2012 is largely attributed to (i) a $841,000 decrease in interest income due to lower outstanding loan balances ($214,756,000 outstanding at December 31, 2012 versus $219,872,000 outstanding at December 31, 2011) and reduced market yields, and (ii) an increased provision for loan losses, up $676,000 as compared to the twelve months ended December 31, 2011. These amounts were offset by (i) savings in interest expense of $653,000 due to lower outstanding interest paying deposit balances ($225,989,000 in deposits at December 31, 2012 as compared to $235,904,000 at December 31, 2011) and lower interest cost, (ii) a $438,000 reduction in non-interest expenses ($8.6 million in 2012 versus $9.1 million in 2011), (iii) income generated from the BOLI investment of $164,000 for the twelve months of 2012 as compared to $44,000 for the same period in 2011, and (iv) income generated from rents on OREO properties ($146,000 for the twelve months ended December 2012 as compared to $53,000 for the twelve months ending December 2011). The decrease in non-interest expenses was mainly attributed to a $246,000 reduction in salary and benefit expense largely the result of reduced staffing and recoupment of over-accruals of expenses related to the Bank's medical retirement plan. The Bank also realized $254,000 in lower expenses related to occupancy costs (stemming from the re-negotiated lease of one of the Bank's branches), lower depreciation expense on Bank buildings sold in prior years and lower over-all maintenance costs on the remaining properties. These savings were offset by $62,000 in increased expenses in other non-interest expenses (significantly in heightened audit and exam expenses, $33,000 greater than in 2011), and by increased costs related to OREO properties for the twelve months of 2012 as indicated above.
"Legacy loan loss continues to be a burden on our income and growth objectives; however, we are making progress decreasing our non-accrual loans and OREO properties," said Peter A. Michelotti, President and CEO of CBBC. "It is an extremely slow process in the State of New Jersey, and we are reviewing all possible options to speed up this process as this continues to be our highest priority."
Total assets were reduced from $309,871,000 at December 31, 2011, to $305,842,000 at December 31, 2012, particularly due to the low volume of new loans through December 31, 2012 and the reduction of total deposits ($280,225,000 at December 31, 2012 as compared to $284,077,000 at December 31, 2011).
The Bank continues to proceed in working out of its non-accruing asset portfolio ($11,112,000 at December 31, 2012 as compared to $12,614,000 at December 31, 2011). The Bank's capital closed at $26,283,000 at December 31, 2012, with book value per share at $15.83 in comparison to $15.51 at December 31, 2011.
"As the economy continues to improve, 2013 should show improvements in many areas of our bank," said Michelotti. "Senior management is dedicated to helping CBBC improve its current financial position."
About Community Bank of Bergen County
Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with four locations in Rochelle Park, Maywood, Fair Lawn and Garfield. 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 www.cbbcnj.com.
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||
AS OF: | ||||||||||||
| December 31, 2012 | December 31, 2011 | ||||||||||
| (Unaudited) | (Unaudited) | ||||||||||
Assets | Dollars in Thousands | Dollars in Thousands | ||||||||||
Cash and balances due from depository institutions: | ||||||||||||
Non-interest-bearing balances and currency and coin | $ | 6,969 | $ | 4,972 | ||||||||
Interest-bearing balances | 7,003 | 7,488 | ||||||||||
Securities | ||||||||||||
Held-to-maturity securities | 34,960 | 36,381 | ||||||||||
Available-for-sale securities | 19,522 | 21,139 | ||||||||||
Loans and lease financing receivables: | ||||||||||||
Loans and leases, net of unearned income | $ | 214,756 | $ | 219,872 | ||||||||
LESS: Allowance for loan and lease losses | 3,220 | 2,941 | ||||||||||
Loans and leases, net of allowance | 211,536 | 216,931 | ||||||||||
Premises and fixed assets (including capitalized leases) | 6,727 | 6,772 | ||||||||||
Other Real Estate Owned | 6,427 | 6,373 | ||||||||||
Other assets | 12,698 | 9,815 | ||||||||||
Total Assets | $ | 305,842 | $ | 309,871 | ||||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Interest-bearing | $ | 225,989 | $ | 235,904 | ||||||||
Non-interest-bearing | 52,049 | 45,806 | ||||||||||
Total deposits | $ | 278,038 | $ | 281,710 | ||||||||
Other liabilities | 1,521 | 2,367 | ||||||||||
Total Liabilities | 279,559 | 284,077 | ||||||||||
Equity Capital | ||||||||||||
Common Stock $5 par value; 1,800,000 shares authorized; 1,728,000 | ||||||||||||
shares issued; 1,660,474 and 1,662,874 shares outstanding, respectively | 8,640 | 8,640 | ||||||||||
Surplus | 3,968 | 3,968 | ||||||||||
Treasury Stock | (1,531 | ) | (1,510 | ) | ||||||||
Stock Options | 182 | 154 | ||||||||||
Retained earnings | 14,566 | 14,410 | ||||||||||
Accumulated other comprehensive income | 458 | 132 | ||||||||||
Total Equity Capital | 26,283 | 25,794 | ||||||||||
Total Liabilities and Equity Capital | $ | 305,842 | $ | 309,871 | ||||||||
Capital Ratios: | ||||||||||||
Tier 1 leverage ratio | 8.44 | % | 8.21 | % | ||||||||
Tier 1 risk-based capital ratio | 12.01 | % | 11.73 | % | ||||||||
Total risk-based capital ratio | 13.26 | % | 12.98 | % | ||||||||
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
Income Statement | Dollars in Thousands | Dollars in Thousands | ||||||||||||||||||
Interest and fee income: | ||||||||||||||||||||
Interest and fee income on loans | $ | 2,996 | $ | 3,233 | $ | 12,465 | $ | 13,306 | ||||||||||||
Interest income on balances due from depository institution | 5 | 7 | 17 | 35 | ||||||||||||||||
Interest and dividend income on securities | 197 | 270 | 923 | 1,142 | ||||||||||||||||
Interest on federal funds sold | 0 | 0 | 0 | 1 | ||||||||||||||||
Other interest income | 10 | 10 | 42 | 42 | ||||||||||||||||
Total Interest and fee income | 3,208 | 3,520 | 13,447 | 14,526 | ||||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest on deposits | 669 | 837 | 2,903 | 3,556 | ||||||||||||||||
Total Interest expense | 669 | 837 | 2,903 | 3,556 | ||||||||||||||||
Net Interest Income | 2,539 | 2,683 | 10,544 | 10,970 | ||||||||||||||||
Provision for Loan Losses | 730 | 980 | 2,681 | 2,005 | ||||||||||||||||
Non-Interest Income: | ||||||||||||||||||||
Service charges on deposit accounts | 95 | 103 | 430 | 408 | ||||||||||||||||
Net servicing fees | 54 | 56 | 221 | 253 | ||||||||||||||||
Net gains (losses) on sale of OREO | (29 | ) | (92 | ) | (29 | ) | (53 | ) | ||||||||||||
Other non-interest income | 90 | 49 | 314 | 103 | ||||||||||||||||
Total non-interest income | 210 | 116 | 936 | 711 | ||||||||||||||||
Realized gains (losses) on securities | 1 | 0 | 20 | 0 | ||||||||||||||||
Non-interest expenses | ||||||||||||||||||||
Salaries and employee benefits | 1,001 | 1,116 | 4,226 | 4,472 | ||||||||||||||||
Expenses on premises and fixed assets | 282 | 378 | 1,132 | 1,386 | ||||||||||||||||
Other non-interest expenses | 830 | 803 | 3,269 | 3,207 | ||||||||||||||||
Total non-interest expenses | 2,113 | 2,297 | 8,627 | 9,065 | ||||||||||||||||
Income before Income taxes: | (93 | ) | (478 | ) | 192 | 611 | ||||||||||||||
Income taxes (benefit) | (83 | ) | (358 | ) | (229 | ) | (212 | ) | ||||||||||||
Net Income | $ | (10 | ) | $ | (120 | ) | $ | 421 | $ | 823 | ||||||||||
Earnings per Share | $ | (0.01 | ) | $ | (0.07 | ) | $0.25 | $ | 0.49 | |||||||||||
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 company's lines of business; the extent and timing of actions of the Federal Reserve Board and the New Jersey Department of Banking and Insurance ; 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.
Community Bank of Bergen County, NJ
Peter A. Michelotti, 201-587-
1333
President and CEO
investorrelations@cbbcnj.com