By Community Bank of Bergen County, NJ (OTCBB: CMTB) reported earnings today for the fourth quarter of 2011. Net income was $476,000, or $0.41 per diluted share, for this quarter, an increase from the loss of $447,000, or $0.27 per diluted share, for the quarter ended December 31, 2010. The net income for the fourth quarter 2011 was due to an additional $440,000 tax benefit accrued in the fourth quarter resulting from a thorough review of the Bank's deferred tax position. The Bank sustained a net loss before income taxes of $98,000 for the quarter ended December 31, 2011, which represents a $461,000 decrease from the Bank's $363,000 of income before income taxes for the quarter ended December 31, 2010.
The Bank showed a $171,000 decrease in net interest income this quarter over the fourth quarter of 2010, with a $278,000 decrease in total interest and fee income contributing to the reduction, offset by a $107,000 decrease in total interest expense. The decrease in total interest and fee income this quarter is attributed mostly to new, lower rate loans that led to reduced average yield on interest earning assets from 5.16 percent for the quarter ended December 31, 2010 to 4.85 percent for the most recent quarter. The decrease in total interest expense is attributed to lower interest rates being paid on interest bearing deposits. Additionally, total non-interest income for the quarter ended December 31, 2011 of $116,000 decreased by 491,000 from the $607,000 of total non-interest income for the quarter ended December 31, 2010, due most notably to a $92,000 loss taken in the fourth quarter of 2011 on the sale of assets as compared to the $423,000 in gains from the sale of assets during the fourth quarter of 2010. The decrease in the Bank's net interest income and non-interest income for the quarter was partially offset by the decrease in the Bank's loan loss provision of $207,000 from $807,000 for the quarter ended December 31, 2010 to $600,000 for the quarter ended December 31, 2011.
For the year ended December 31, 2011, the Bank reported net income of $1,419,000, up 19 percent from its net income of $1,192,000 for the year ended December 31, 2010. The increase in net income for the year ended December 31, 2011 is largely the result of adjustments made to the provision for income taxes related the audit adjustments in 2010 and a review of all deferred tax accounts in 2011, which resulted in a $428,000 tax benefit for 2011 compared to a $402,000 tax expense in 2010, an $830,000 swing. The Bank's income before income taxes of $991,000 in 2011 represents a $603,000 or 37.8 percent decrease from its income before income taxes of $1,594,000 in 2011. This decrease was due to (i) an increased provision for loan losses, up $243,000 from the provision for the year ended December 31, 2010, (ii) a decrease in interest expense of $249,000 due to the current lower cost of interest paying deposits, and a decrease in interest income of $279,000 due to the current lower yields on new loans, resulting in a $30,000 decrease in net interest income for the twelve months ended December 31, 2011; (iii) a $518,000 decrease in non-interest income during the period as compared to the year ended December 31, 2010, mainly a result of the $53,000 net loss on the sale of assets during the year ended December 31, 2011 as compared to the $497,000 net gain on the sale of assets during the year ended December 31, 2010; as offset by (a) a $124,000 reduction in occupancy expenses due to the sale of unused Bank properties during 2010 and increased rental income during 2011 as compared to 2010, and (b) other lower expenses including a $160,000 reduction of FDIC insurance premiums year-to-year due to the new formula used to determine premiums.
Asset growth was essentially flat from year to year at $310,244,000 at December 31, 2011 as compared to $310,033,000 at December 31, 2010. Loan balances, however, showed a continued reduction ($3,732,000) from December 2010, mainly a result of the net transfer of $4,771,000 in loans to the Bank's other real estate owned portfolio offset by $3,545,000 in increases to the Bank's outstanding loan portfolio. Total deposits rose slightly in comparison to the same time last year, by $290,000, with significant increases ($9,709,000) in the interest bearing demand accounts, offset by significant decreases in interest bearing time deposits of $10,923,000 in furtherance of management's business plan.
The Bank's Tier 1 leverage ratio and risk based capital ratios remain at "well capitalized" levels of 8.44 percent and 13.22 percent, respectively. The Bank's capital closed at $26,400,000 at December 31, 2011, with book value per share at $15.88 as compared to $15.46 at December 31, 2010 as revised.
"The fourth quarter of 2011 brought with it continued loan losses and foreclosures, in addition to a sluggish real estate market," said Peter A. Michelotti, President and CEO of Community Bank of Bergen County, NJ. "We are starting 2012 with a renewed optimism for improved financial conditions and expect consumer confidence to keep improving. We are hopeful that the banking sector will experience an uptick as consumers regain faith in the market."
About Community Bank of Bergen County, NJ
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 as well as the convenience of online banking services. Through its partnership with the StarSF/Allpoint network CBBC also offers its customers access to more than 36,000 surcharge-free ATMs nationwide.
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, 2011 | December 31, 2010 | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Assets | Dollars in Thousands | Dollars in Thousands | |||||||||||||
| Cash and balances due from depository institutions: | |||||||||||||||
| Non-interest-bearing balances and currency and coin | $ | 4,972 | $ | 4,899 | |||||||||||
| Interest-bearing balances | 7,488 | 12,384 | |||||||||||||
| Securities | |||||||||||||||
| Held-to-maturity securities | 36,381 | 41,277 | |||||||||||||
| Available-for-sale securities | 21,139 | 14,081 | |||||||||||||
| Federal funds sold | 0 | 2,000 | |||||||||||||
| Loans and lease financing receivables: | |||||||||||||||
| Loans and leases, net of unearned income | $ | 219,872 | $ | 223,604 | |||||||||||
| LESS: Allowance for loan and lease losses | 2,561 | 3,442 | |||||||||||||
| Loans and leases, net of allowance | 217,311 | 220,162 | |||||||||||||
| Premises and fixed assets (including capitalized leases) | 6,772 | 7,404 | |||||||||||||
| Other Real Estate Owned | 6,373 | 604 | |||||||||||||
| Other assets | 9,808 | 7,222 | |||||||||||||
| Total Assets | $ | 310,244 | $ | 310,033 | |||||||||||
| Liabilities | |||||||||||||||
| Deposits: | |||||||||||||||
| Interest-bearing | $ | 235,904 | $ | 236,186 | |||||||||||
| Non-interest-bearing | 45,806 | 45,234 | |||||||||||||
| Total deposits | $ | 281,710 | $ | 281,420 | |||||||||||
| Other liabilities | 2,134 | 2,872 | |||||||||||||
| Total Liabilities | 283,844 | 284,292 | |||||||||||||
| Equity Capital | |||||||||||||||
Common Stock (1,800,000 shares authorized, $5 par value; 1,662,874 outstanding at December 31, 2011 and 1,664,374 at December 31, 2010 | 8,640 | 8,640 | |||||||||||||
| Surplus | 3,968 | 3,968 | |||||||||||||
| Treasury Stock | (1,510 | ) | (1,501 | ) | |||||||||||
| Stock Options | 154 | 127 | |||||||||||||
| Retained earnings | 15,006 | 14,253 | |||||||||||||
| Accumulated other comprehensive income | 142 | 254 | |||||||||||||
| Total Equity Capital | 26,400 | 25,741 | |||||||||||||
| Total Liabilities and Equity Capital | $ | 310,244 | $ | 310,033 | |||||||||||
| Capital Ratios: | |||||||||||||||
| Tier 1 leverage ratio | 8.44 | % | 8.16 | % | |||||||||||
| Tier 1 risk-based capital ratio | 12.05 | % | 11.61 | % | |||||||||||
| Total risk-based capital ratio | 13.22 | % | 12.86 | % | |||||||||||
| COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| FOR THE: | ||||||||||||||||
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Income Statement | Dollars in Thousands | Dollars in Thousands | ||||||||||||||
| Interest and fee income: | ||||||||||||||||
| Interest and fee income on loans | $ | 3,233 | $ | 3,447 | $ | 13,306 | $ | 13,514 | ||||||||
| Interest income on balances due from depository institution | 7 | 5 | 35 | 26 | ||||||||||||
| Interest and dividend income on securities | 270 | 308 | 1,142 | 1,235 | ||||||||||||
| Interest on federal funds sold | 0 | 1 | 1 | 6 | ||||||||||||
| Other interest income | 10 | 7 | 42 | 24 | ||||||||||||
| Total Interest and fee income | 3,520 | 3,798 | 14,526 | 14,805 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Interest on deposits | 837 | 944 | 3,556 | 3,805 | ||||||||||||
| Total Interest expense | 837 | 944 | 3,556 | 3,805 | ||||||||||||
| Net Interest Income | 2,683 | 2,854 | 10,970 | 11,000 | ||||||||||||
| Provision for Loan Losses | 600 | 807 | 1,625 | 1,382 | ||||||||||||
| Non-Interest Income: | ||||||||||||||||
| Service charges on deposit accounts | 103 | 116 | 408 | 460 | ||||||||||||
| Net servicing fees | 56 | 66 | 253 | 266 | ||||||||||||
| Net Gains (Losses) on sale of Assets | (92 | ) | 423 | (53 | ) | 497 | ||||||||||
| Other non-interest income | 49 | 2 | 103 | 6 | ||||||||||||
| Total non-interest income | 116 | 607 | 711 | 1,229 | ||||||||||||
| Realized gains (losses) on securities | 0 | 0 | 0 | 0 | ||||||||||||
| Non-interest expenses | ||||||||||||||||
| Salaries and employee benefits | 1,116 | 1,121 | 4,472 | 4,451 | ||||||||||||
| Expenses on premises and fixed assets | 378 | 340 | 1,386 | 1,471 | ||||||||||||
| Other non-interest expenses | 803 | 830 | 3,207 | 3,331 | ||||||||||||
| Total non-interest expenses | 2,297 | 2,291 | 9,065 | 9,253 | ||||||||||||
| Income before Income taxes: | (98 | ) | 363 | 991 | 1,594 | |||||||||||
| Income taxes (benefit) | (574 | ) | 810 | (428 | ) | 402 | ||||||||||
| Net Income | $ | 476 | $ | (447 | ) | $ | 1,419 | $ | 1,192 | |||||||
| Earnings per Share | $ | 0.41 | $ | (0.27 | ) | $ | 0.85 | $ | 0.72 | |||||||
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 economic stagnation affecting the country in general and 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; 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
