FREEHOLD, N.J., April 20, 2011 (GLOBE NEWSWIRE) -- New Jersey Community Bank (OTCBB:NJCB) (the "Bank") reported net income of $142 thousand, or $0.09 per common share for the three months ended March 31, 2011, compared with a net loss of $112 thousand, or $0.07 per common share, for the same period in the prior year.
Robert D. O'Donnell, Chairman and CEO, commented that, "Our first quarter 2011 earnings, net interest margin and asset quality remains resilient throughout this unsettled economic environment. However, with the signs of modest recovery, we are cautiously optimistic that we will remain profitable as we navigate through year 2011."
James A. Kinghorn, President and COO, noted that, "During the quarter, we continued to wrestle with prolonged low level of interest rates and intense competition for new loans. Despite these challenges, we were able to report improved operating results year over year. Though the new loan demand has softened but our "approved but unfunded" loan pipeline remains healthy and credit metrics are strong. Our emphasis will continue to be on lending, focusing primarily on commercial mortgage, construction and business loan sectors."
Balance Sheet Summary
At March 31, 2011, total assets were $122.9 million, an increase of $10.3 million, or 9.2%, over $112.6 million reported at December 31, 2010, primarily as a result of increases in total cash and cash equivalents and loans receivable, partially offset by a slight decrease in due from banks time deposits. Total cash and cash equivalents increased $8.8 million, or 122.6%, to $16.0 million at March 31, 2011, from $7.2 million at December 31, 2010, primarily due to increase in total deposits.
Investment securities were almost unchanged at March 31, 2011 when compared to December 31, 2010. Total loans receivable increased $3.0 million, or 3.6%, to $87.7 million at March 31, 2011, from $84.7 million reported at December 31, 2010. The increase in loans receivable was funded utilizing the liquidity arising from the growth in deposits.
Total deposits grew by $10.1 million, or 10.3%, to $108.0 million during the first quarter of year 2011. Of the total increase, time deposits increased $9.8 million or 97.0%, while non-interest bearing, savings, NOW and money market deposits combined increased $0.3 million, or 3.0%. Shareholders' equity totaled $14.7 million as of March 31, 2011. The Bank's capital ratios exceed the regulatory requirements of a well capitalized financial institution.
Results of Operations
For the quarter ended March 31, 2011, net interest income totaled $1.1 million, increasing $430 thousand over the same period in the prior year. The increase in net interest income was primarily due to a combination of both a $23.4 million increase in average earning assets coupled with 51 basis points increase in average yield on earning assets. During the first quarter, interest bearing liabilities increased $21.3 million; while the yield on the interest bearing liabilities declined 49 basis points. Net interest margin improved to 4.04% for the quarter ended March 31, 2011, an increase of 95 basis points over the comparable quarter in 2010.
The provision for loan loss was $95 thousand for the first quarter 2011, a decrease of $18 thousand compared to a year-ago quarter. The allowance for loan loss at period-end was $1.1 million, or 1.22% of total loans. Mr. Kinghorn 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 moderately to $94 thousand for the quarter ended March 31, 2011 compared with $91 thousand for the same quarter in the prior year. Majority of such increase is directly related to the increase in fees and service charges on deposit accounts.
Non-interest expense totaled $849 thousand for the quarter ended March 31, 2011, an increase of $92 thousand from year-ago quarter, primarily due to the growth of the bank. Of the total increase, salaries and employee benefits increased $41 thousand, professional fees increased $19 thousand and all other expenses combined increased $30 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 two full-service banking offices in the central New Jersey county of Monmouth. 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.
The New Jersey Community Bank logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7748
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) | 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | |
| Summary of Operations: | ||||||
| Interest income | $ 1,439 | $ 1,383 | $ 1,294 | $ 1,177 | $ 1,022 | |
| Interest expense | 335 | 355 | 388 | 364 | 349 | |
| Net interest income | 1,104 | 1,027 | 906 | 813 | 673 | |
| Provision for loan loss | 95 | 141 | 115 | 103 | 113 | |
| Net interest income after provision for loan loss | 1,009 | 886 | 791 | 710 | 560 | |
| Non-interest income | 94 | 124 | 101 | 96 | 91 | |
| Non-interest expense | 849 | 864 | 790 | 790 | 763 | |
| Income before income tax (benefit) expense | 254 | 147 | 101 | 16 | (112) | |
| Income tax (benefit) expense | 112 | (1,190) | -- | 5 | -- | |
| Net income (loss) | $ 142 | $ 1,337 | $ 101 | $ 11 | $ (112) | |
| Earnings (loss) per share: | ||||||
| Basic | $ 0.09 | $ 0.81 | $ 0.06 | $ 0.01 | $ (0.07) | |
| Diluted | 0.09 | 0.81 | 0.06 | 0.01 | (0.07) | |
| Book value per share | 8.94 | 8.83 | 8.05 | 7.95 | 7.90 | |
| Average shares outstanding | 1,649 | 1,649 | 1,649 | 1,649 | 1,649 | |
| Average diluted shares outstanding | 1,649 | 1,649 | 1,649 | 1,649 | 1,649 | |
| Selected Financial Ratios: | ||||||
| Return on average assets | 0.49% | 4.89% | 0.37% | 0.04% | -0.49% | |
| Return on average common equity | 3.86% | 39.99% | 3.07% | 0.34% | -3.41% | |
| Average equity to average assets | 12.74% | 12.23% | 11.99% | 13.00% | 14.40% | |
| Risk-based capital: | ||||||
| Total risk-based capital ratio | 15.80% | 15.65% | 16.14% | 17.04% | 18.24% | |
| Tier 1 risk-based capital ratio | 14.68% | 14.61% | 15.10% | 15.97% | 17.22% | |
| Tier 1 leverage capital ratio | 12.19% | 12.69% | 12.02% | 13.04% | 14.32% | |
| Financial Condition: | ||||||
| Total assets | $ 122,898 | $ 112,565 | $ 112,173 | $ 105,244 | $ 94,210 | |
| Loans, net of unearned income | 87,713 | 84,693 | 78,600 | 73,534 | 68,421 | |
| Deposits | 107,984 | 97,855 | 98,730 | 91,938 | 81,085 | |
| Shareholder's equity | 14,738 | 14,554 | 13,267 | 13,114 | 13,034 | |
| New Jersey Community Bank | ||
| Statements of Financial Condition | ||
| (dollars in thousands) | ||
| March 31, | December 31, | |
| 2011 | 2010 | |
| Assets | (unaudited) | |
| Cash and due from banks - non-interest bearing | $ 1,090 | $ 1,341 |
| Federal funds sold and interest-bearing deposits with banks | 14,948 | 5,865 |
| Total Cash and Cash Equivalents | 16,038 | 7,206 |
| Due from banks - time deposits | 3,421 | 4,659 |
| Investment Securities: | ||
| Available-for-sale | 11,385 | 11,381 |
| Held-to-maturity | 1,221 | 1,220 |
| Total Investment Securities | 12,606 | 12,601 |
| Loans Receivable, net of unearned income | 87,713 | 84,693 |
| Less: Allowance for loan losses | (1,070) | (975) |
| Net Loans | 86,643 | 83,718 |
| Premises and equipment, net | 2,488 | 2,534 |
| Accrued interest receivable | 303 | 304 |
| Deferred tax assets | 1,078 | 1,190 |
| Other assets | 321 | 353 |
| Total Assets | $ 122,898 | $ 112,565 |
| Liabilities and Shareholders' Equity | ||
| Liabilities | ||
| Deposits: | ||
| Non-interest bearing | $ 5,888 | $ 5,709 |
| Savings, NOW and money market | 29,874 | 29,740 |
| Time deposits $100M and over | 49,653 | 41,110 |
| Time deposits, other | 22,569 | 21,296 |
| Total Deposits | 107,984 | 97,855 |
| Accrued interest payable | 9 | 12 |
| Other liabilities | 167 | 144 |
| Total Liabilities | 108,160 | 98,011 |
| Shareholders' Equity | ||
| Common stock, $2 par value; authorized 10,000,000 shares; | ||
| issued and outstanding 1,648,783 shares | 3,298 | 3,298 |
| Surplus | 13,562 | 13,519 |
| Accumulated Deficit | (2,059) | (2,201) |
| Accumulated other comprehensive (loss) income | (63) | (62) |
| Total Shareholders' Equity | 14,738 | 14,554 |
| Total Liabilities and Shareholders' Equity | $ 122,898 | $ 112,565 |
| New Jersey Community Bank | ||
| Statements of Operations | ||
| (in thousands, except per share data) | ||
| Three Months Ended | ||
| March 31, | ||
| 2011 | 2010 | |
| Interest Income | (unaudited) | |
| Loans receivable, including fees | $ 1,350 | $ 962 |
| Investment securities | 77 | 47 |
| Federal funds sold and interest-bearing deposits with banks | 3 | 7 |
| Due from banks - interest bearing | 9 | 6 |
| Total Interest Income | 1,439 | 1,022 |
| Interest Expense | ||
| Deposits | 335 | 349 |
| Total Interest Expense | 335 | 349 |
| Net Interest Income before Provision for Loan Loss | 1,104 | 673 |
| Provision for Loan Loss | 95 | 113 |
| Net Interest Income after Provision for Loan Loss | 1,009 | 561 |
| Non-Interest Income | ||
| Fees and service charges on deposit accounts | 81 | 78 |
| Loan fee income | 5 | 4 |
| All other income | 8 | 9 |
| Total Non-Interest Income | 94 | 91 |
| Non-Interest Expense | ||
| Salaries and employee benefits | 488 | 446 |
| Occupancy and equipment | 156 | 148 |
| Data processing services | 31 | 26 |
| Professional and other fees | 57 | 38 |
| Advertising and promotion | 9 | 1 |
| Federal insurance assessment | 43 | 30 |
| Other operating expenses | 65 | 74 |
| Total Non-Interest Expenses | 849 | 763 |
| Income (Loss) Before Income Tax Benefit | 254 | (112) |
| Income tax expense | 112 | -- |
| Net Income (Loss) | $ 142 | $ (112) |
| Income (Loss) per share: | ||
| Basic and diluted | $ 0.09 | $ (0.07) |
| Weighted average number of common shares outstanding | ||
| Basic and diluted | 1,649 | 1,649 |