Please insert the following text after the second paragraph of the Community Bank of Bergen County boilerplate: CBBC is a member of the Federal Deposit Insurance Corporation (FDIC) and an Equal Housing Lender. CBBC makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.
The corrected release reads:
COMMUNITY BANK OF BERGEN COUNTY, NJ REPORTS FIRST QUARTER 2015 NET INCOME OF $0.22 PER SHARE
Community Bank of Bergen County, NJ (OTCBB:CMTB) reported net income for the first quarter of 2015 of $384,000, or $0.22 per diluted share, up $166,000 from a net income of $218,000, or $0.13 per diluted share, for the first quarter of 2014.
The increase in net income for the first quarter of this year was attributed to a $200,000 decrease in the loan loss provision over last year ($25,000 for the quarter ended March 31, 2015 as compared to $225,000 for the quarter ended March 31, 2014), a $137,000 increase in net interest income ($2.57 million for the quarter ended March 31, 2015 as compared to $2.44 million for the quarter ended March 31, 2014), a reduction in losses on the sale of OREO properties during the period ($23,000 as compared to $144,000 for the comparable period), and lower other non-interest expense primarily due to $165,000 less in write-downs of OREO properties due to higher current market values this quarter over the same quarter last year. These positive variances in net income were partially offset by a $125,000 increase in salaries and employee benefits largely due to customary annual increases, and a $22,000 decrease in service charge income on deposit accounts. Additionally, a $248,000 net gain from the sale of investment securities was recorded for the first quarter of 2014 compared to no such gain in 2015.
In the first quarter of this year, CBBC had interest income that was $128,000 higher than the first quarter of 2014 – a result of increased outstanding loan balances from last year ($227,203,000 at March 31, 2014 versus $201,099,000 at March 31, 2014), mitigated by overall reduced market rates. Corresponding savings in interest expense ($18,000 less in the first quarter of 2015 compared to the first quarter of 2014) was attributed to lower average rates on our interest bearing deposits (which increased to $215,494,000 at March 31, 2015 from $206,131,000 at December 31, 2014), partially offset by $9,000 in increased interest cost as our borrowings increased to $5,000,000 from $3,000,000 at December 31, 2014 to fund our loan growth.
“We continue to generate stable operating earnings and smart balance sheet growth,” stated Peter A. Michelotti, President & CEO. He continued, “We are however, very disappointed that our non-accrual loan balances increased drastically this quarter. The majority of the increase is related to one loan that became seriously delinquent in the first quarter of 2015. This particular loan was previously marked as a troubled debt due to a pending court case against the borrowers for financial fraud. The couple pleaded guilty to tax fraud in 2014 and was sentenced to jail time. One of the borrowers started serving jail time in January 2015, at which time they ceased paying our mortgage obligation. It is to be noted that CBBC was a victim of the fraud when this loan was originated. We believe that the collateral value will be enough to satisfy the full principal balance upon completion of the foreclosure.”
The Bank’s total assets increased by $3,449,000 from December 31, 2014 and by $13,498,000 from March 31, 2014 mainly due to increases in loans of $4,465,000 and $26,104,000, respectively, resulting from the Bank’s concerted marketing efforts. The Bank is continuing to mitigate its high level of problem loans with a diligent work out process. Except for the $1,411,000 loan to the borrowers mentioned above, the expected resolution of four other loans totaling approximately $849,000 will continue to reduce non-accrual assets during the second quarter of this year. Our non-accrual assets were $7,954,000 at this quarter ended March 31, 2015, $1,785,000 higher than at December 31, 2014 and $1,463,000 higher than at March 31, 2014.
“Despite the increased non-accrual loans this quarter, our outlook continues to be positive, and we expect steady and sustained growth in 2015,” said Peter A. Michelotti, President and CEO of CBBC.
This quarter, the Bank’s capital ratios reflect the new BASEL III rules and may not be comparable to the ratios reported last year. The Bank remains “well capitalized” under all applicable regulatory requirements. The Bank’s capital closed this quarter at $26,771,000, up from the $26,246,000 reported at December 31, 2014, with book value per share at $15.35 as compared to $15.05 at December 31, 2014.
About Community Bank of Bergen County
Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with three locations in Rochelle Park, Maywood and Fair Lawn. 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.
CBBC is a member of the Federal Deposit Insurance Corporation (FDIC) and an Equal Housing Lender. CBBC makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.
For more information, visit the Bank’s web site at www.cbbcnj.com, and to view CBBC’s 2014 Audited Financial Statements, visit: http://www.cbbcnj.com/home/about-us/investor
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 Bank's lines of business; the extent and timing of actions of the Federal Reserve Board; customer acceptance of our products and services; the inability to resolve our problem loans as expected; 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 AND SUBSIDIARIES | |||||||
SUMMARY FINANCIAL HIGHLIGHTS | |||||||
(in Thousands, Except Percentages and Per Share Data) | |||||||
Financial Highlights: | |||||||
Symbol | CMTB | 52 week range | $6.80-$10.66 | ||||
Financial Data - Year to date | |||||||
Unaudited | Unaudited | ||||||
For the Period Ended | For the Year Ended | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Balance Sheet Highlights | |||||||
Total securities | $51,118 | $52,021 | |||||
Total loans | $227,203 | $222,738 | |||||
Allowance for loan losses | $3,402 | $3,458 | |||||
Total assets | $301,481 | $298,032 | |||||
Total deposits | $268,062 | $267,236 | |||||
Total liabilities | $274,710 | $271,786 | |||||
Total shareholders' equity | $26,771 | $26,246 | |||||
Unaudited | Unaudited | ||||||
For the three months | For the three months | ||||||
Financial data - Year to date | ended March 31, 2015 | ended March 31, 2014 | |||||
Net Interest income | $2,575 | $2,438 | |||||
Provision for loan losses | $25 | $225 | |||||
Loss on sale of OREO | ($23 | ) | ($144 | ) | |||
Total other income | $161 | $191 | |||||
Total other expenses | $2,149 | $2,265 | |||||
Income before provision for income taxes | $539 | $243 | |||||
Provision (benefit) for income taxes | $155 | $25 | |||||
Net income after tax | $384 | $218 | |||||
Other Earnings Information | |||||||
Earnings per share | $0.22 | $0.13 | |||||
Return on Assets | 0.51 | % | 0.30 | % | |||
Share Information | |||||||
At March 31, | At December 31, | ||||||
2015 | 2014 | ||||||
Market price per share | $10.11 | $9.50 | |||||
Book Value per common share | $15.35 | $15.05 | |||||
Outstanding Shares -period ending | 1,743,618 | 1,743,618 | |||||
Capital ratios | |||||||
Total equity to total assets | 8.88 | % | 8.81 | % | |||
Tier 1 leverage Ratio | 8.04 | % | 7.91 | % | |||
Common equity tier 1 capital ratio | 12.36 | % | n/a | ||||
Tier 1 risk-based capital ratio | 12.36 | % | 11.84 | % | |||
Total risk-based capital ratio | 13.62 | % | 13.09 | % | |||
Asset Quality and Ratios | |||||||
Other Real Estate Owned (OREO) | $545 | $780 | |||||
Non-accrual loans | $7,954 | $6,169 | |||||
Troubled debt restructured loans ("TDRs") | $2,759 | $2,769 | |||||
Non-performing loans/total loans | 3.60 | % | 2.77 | % | |||
Allowance for loan loss/total loans | 1.49 | % | 1.55 | % | |||
Allowance for loan loss/non-accrual loans | 43 | % | 56 | % | |||
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | |||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||
AS OF: | |||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Assets | Dollars in Thousands | Dollars in Thousands | |||||||||||
Cash and balances due from depository institutions: | |||||||||||||
Non-interest-bearing balances and currency and coin | $ | 4,728 | $ | 4,026 | |||||||||
Interest-bearing balances | 2,258 | 2,518 | |||||||||||
Securities | |||||||||||||
Held-to-maturity securities | 0 | 0 | |||||||||||
Available-for-sale securities | 51,118 | 52,021 | |||||||||||
Loans and lease financing receivables: | |||||||||||||
Loans and leases, net of unearned income | $ | 227,203 | $ | 222,738 | |||||||||
LESS: Allowance for loan and lease losses | 3,402 | 3,458 | |||||||||||
Loans and leases, net of allowance | 223,801 | 219,280 | |||||||||||
Premises and fixed assets (including capitalized leases) | 6,091 | 6,127 | |||||||||||
Other Real Estate Owned | 545 | 780 | |||||||||||
Other assets | 12,940 | 13,280 | |||||||||||
Total Assets | $ | 301,481 | $ | 298,032 | |||||||||
Liabilities | |||||||||||||
Deposits: | |||||||||||||
Interest-bearing | $ | 215,491 | $ | 215,118 | |||||||||
Non-interest-bearing | 52,571 | 52,118 | |||||||||||
Total deposits | 268,062 | 267,236 | |||||||||||
Borrowed funds | 5,000 | 3,000 | |||||||||||
Other liabilities | 1,648 | 1,550 | |||||||||||
Total Liabilities | 274,710 | 271,786 | |||||||||||
Equity Capital | |||||||||||||
Common Stock: par value $5.00; 5,000,000 and 1,800,000 shares | |||||||||||||
authorized; 1,743,618 shares issued and outstanding, respectively | 8,718 | 8,718 | |||||||||||
Surplus | 4,170 | 3,988 | |||||||||||
Stock Options | 0 | 182 | |||||||||||
Retained earnings | 13,371 | 12,988 | |||||||||||
Accumulated other comprehensive income | 512 | 370 | |||||||||||
Total Equity Capital | 26,771 | 26,246 | |||||||||||
Total Liabilities, and Equity Capital | $ | 301,481 | $ | 298,032 | |||||||||
Capital Ratios: | |||||||||||||
Capital to Asset ratio | 8.88 | % | 8.81 | % | |||||||||
Tier 1 leverage ratio | 8.04 | % | 7.91 | % | |||||||||
Common equity tier 1 capital ratio | 12.36 | % | n/a | ||||||||||
Tier 1 risk-based capital ratio | 12.36 | % | 11.84 | % | |||||||||
Total risk-based capital ratio | 13.62 | % | 13.09 | % | |||||||||
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
Quarters Ended | Twelve Months Ended | |||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Income Statement | Dollars in Thousands | Dollars in Thousands | ||||||||||||
Interest and fee income: | ||||||||||||||
Interest and fee income on loans | $ | 2,877 | $ | 2,743 | $ | 11,514 | $ | 11,412 | ||||||
Interest income on balances due from depository institution | 2 | 2 | 14 | 28 | ||||||||||
Interest and dividend income on securities | 185 | 193 | 720 | 751 | ||||||||||
Other interest income | 13 | 11 | 50 | 44 | ||||||||||
Total Interest and fee income | 3,077 | 2,949 | 12,298 | 12,235 | ||||||||||
Interest Expense: | ||||||||||||||
Interest on deposits | 493 | 511 | 1,937 | 2,385 | ||||||||||
Interest on borrowed funds | 9 | 0 | 17 | 0 | ||||||||||
Total Interest expense | 502 | 511 | 1,954 | 2,385 | ||||||||||
Net Interest Income | 2,575 | 2,438 | 10,344 | 9,850 | ||||||||||
Provision for Loan Losses | 25 | 225 | 525 | 3,935 | ||||||||||
Non-Interest Income: | ||||||||||||||
Service charges on deposit accounts | 66 | 88 | 358 | 378 | ||||||||||
Net loss on sale of real estate owned | (23 | ) | (144 | ) | (1,064 | ) | (229 | ) | ||||||
Income on bank owned life insurance | 50 | 52 | 205 | 214 | ||||||||||
Other non-interest income | 45 | 51 | 211 | 331 | ||||||||||
Total non-interest income | 138 | 47 | (290 | ) | 694 | |||||||||
Realized gains (losses) on securities | 0 | 248 | 248 | 9 | ||||||||||
Non-interest expenses | ||||||||||||||
Salaries and employee benefits | 1,088 | 963 | 4,043 | 4,118 | ||||||||||
Expenses on premises and fixed assets | 261 | 297 | 953 | 1,096 | ||||||||||
Other non-interest expenses | 800 | 1,005 | 3,340 | 3,696 | ||||||||||
Total non-interest expenses | 2,149 | 2,265 | 8,336 | 8,910 | ||||||||||
Income before Income taxes: | 539 | 243 | 1,441 | (2,292 | ) | |||||||||
Income taxes (benefit) | 155 | 25 | 245 | (1,180 | ) | |||||||||
Net Income | $ | 384 | $ | 218 | $ | 1,196 | $ | (1,112 | ) | |||||
Earnings per Share | $ | 0.22 | $ | 0.13 | $ | 0.69 | $ | (0.64 | ) |
Contacts:
Community Bank of Bergen County, NJ
Peter A.
Michelotti, 201-587-1333
President and CEO
investorrelations@cbbcnj.com