New Jersey Community Bank Reports Fourth Quarter and Full Year Results for 2011
(firmenpresse) - FREEHOLD, NJ -- (Marketwire) -- 01/26/12 -- New Jersey Community Bank (OTCQB: NJCB) (the "Bank") reported net income of $138 thousand, or $0.08 per common share and $552 thousand, or $0.32 per common share for the three months and year ended December 31, 2011, respectively, compared with a net income of $1.3 million, or $0.77 per common share for the three months and year ended December 31, 2010. Included in the net income for year 2010 was a one-time non-recurring income tax benefit resulting from the reversal of a $1.2 million valuation allowance on the Bank's deferred income tax assets. Excluding this one-time accounting adjustment, net income for the fourth quarter and year 2010 was $147 thousand, or $0.08 per common share.
Robert D. O'Donnell, Chairman and CEO commented that, "Given the current operating environment, our performance for the year was solid. However, with the low level of consumer sentiment, poor job market and distressed real estate values in our market area, we remain cautious in the near term. Our asset quality continues to remain stable compared to our peers and our balance sheet grew 17% year over year, however, we had to combat softened loan demand that impacted loan growth. We continue to monitor our operating costs and expect to remain profitable as we navigate through the sluggish economic cycle into 2012."
At December 31, 2011, total assets were $132.1 million, an increase of $19.5 million, or 17.3%, over $112.6 million reported at December 31, 2010, primarily as a result of increases in total cash and cash equivalents, due from banks time deposits, investment securities and loans receivable. Cash and cash equivalents increased $7.2 million, or 99.8%, to $14.4 million and due from banks time deposits increased $2.0 million, or 43.2%, to $6.7 million at December 31, 2011 compared to levels reported at December 31, 2010. The increases were related to an increase in total deposits.
Investment securities increased $7.6 million, or 60.2%, to $20.2 million at December 31, 2011, from $12.6 million at December 31, 2010. Total loans receivable increased moderately to $87.9 million, or a 3.7% increase, from $84.7 million reported at December 31, 2010. The increases in both the investment securities and the loans receivable were funded utilizing the liquidity arising from the growth in deposits.
Total deposits grew by $18.5 million, or 19.0%, to $116.4 million during 2011. Of the total increase, core deposits, consisting of savings, NOW, money market and demand deposit accounts increased $7.1 million and time deposits increased $11.4 million. Growth in deposits was in part due to the grand opening deposit promotions at the newly established branch location in Cranbury, New Jersey. Shareholders' equity totaled $15.3 million as of December 31, 2011. The Bank's capital ratios exceed the regulatory requirements of a well capitalized financial institution.
For the quarter ended December 31, 2011, net interest income totaled $1.1 million, increasing moderately over the same period in the prior year. Average interest earning assets increased $19.8 million while the average yield on interest earning assets declined 56 basis points as a result of the low interest rate environment. Average interest bearing liabilities increased $18.1 million; while the yield on the interest bearing liabilities declined 16 basis points. Interest income for the quarter ended December 31, 2011 totaled $1.5 million while interest expense totaled $380 thousand. Net interest margin declined to 3.42% for the quarter ended December 31, 2011, a decrease of 46 basis points over the comparable quarter in 2010.
The provision for loan loss was $35 thousand for the fourth quarter 2011, a decrease of $106 thousand compared to the year-ago quarter. The allowance for loan loss at period-end was $1.1 million, or 1.25% of total loans.
Non-interest income was almost unchanged for the three-month period ended December 31, 2011 when compared to the same period in the prior year. Non-interest expense totaled $964 thousand for the quarter ended December 31, 2011, an increase of $100 thousand from year-ago quarter, primarily due to the growth of the bank. Of the total increase, professional and other fees increased $65 thousand, salaries and employee benefits increased $33 thousand and other operating expenses increased $31 thousand while occupancy and equipment expense and federal insurance assessment declined $26 thousand and $14 thousand, respectively.
For the full year ended December 31, 2011, net interest income totaled $4.5 million, increasing $1.0 million over the full prior year. The increase in net interest income was primarily due to a combination of both a $21.0 million increase in average interest earning assets coupled with an increase of $18.7 million in average interest bearing liabilities, while the cost of interest bearing liabilities declined 31 basis points. Total interest income for the year 2011 was $5.9 million while the interest expense totaled $1.5 million. Net interest margin improved to 3.72% for the year 2011, an increase of 27 basis points over the full year 2010.
The provision for loan loss was $244 thousand for the year, a decrease of $228 thousand compared to prior year, primarily due to stable level of non-performing loans during the year.
Non-interest income totaled $420 thousand for the year 2011 reflecting a moderate increase over the full year 2010. Non-interest expense totaled $3.7 million for the full year 2011, an increase of $478 thousand over prior full year. Of the total increase, salaries and employee benefits, the largest component of non-interest expense, increased $276 thousand primarily due to addition of personnel and increased health benefit costs. Professional fees, occupancy and equipment expense and other operating expense increased $109 thousand, $40 thousand and $47 thousand, respectively, primarily due to the overall growth of the bank, non-employee directors' fees and the expenses associated with the addition of Cranbury branch office.
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 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.
Contacts at New Jersey Community Bank:
Robert D. O'Donnell
Chairman and CEO
Naqi A. Naqvi
SVP & CFO
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Datum: 26.01.2012 - 14:28 Uhr
Sprache: Deutsch
News-ID 108166
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FREEHOLD, NJ
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Commercial & Investment Banking
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