New Jersey Community Bank Reports First Quarter 2012 Results
(firmenpresse) - FREEHOLD, NJ -- (Marketwire) -- 04/19/12 -- New Jersey Community Bank (OTCBB: NJCB) (the "Bank") reported net income of $108 thousand, or $0.06 per common share for the three months ended March 31, 2012, compared with a net income of $142 thousand, or $0.08 per common share, for the same period in the prior year. The year over year decline in net income was in part due to reduction in net interest margin despite an increase of $19.3 million in average earning assets.
Robert D. O'Donnell, Chairman, President and CEO, commented that, "We are pleased with the first quarter 2012 results during this continued market volatility and depressed interest rates. Recent months have brought some encouraging news on the employment front but the banking industry continues to reflect the impact of prolonged low interest rates. Our first quarter earnings reflect a decline in net interest margin while our asset quality remains resilient. Though the new loan demand has somewhat softened but we continue to remain cautiously optimistic that we will remain profitable during this uncertain economic environment."
At March 31, 2012, total assets were $132.2 million, almost unchanged from December 31, 2011. Investment securities, loans receivable and total deposits, all remained unchanged during the first quarter 2012 compared to year end 2011. Loans receivable remained unchanged primarily as a result of loan maturities which more than offset the new loans recorded during the quarter.
Shareholders' equity totaled $15.4 million at March 31, 2012. The Bank's capital ratios exceed the regulatory requirements of a well capitalized financial institution.
Comparing year over year this time, average total assets increased $19.0 million, or 16.5%. Average investment securities, federal funds sold, and due from banks-time deposits at March 31, 2012, increased $7.1 million, or 56.2%, $8.2 million, or 107.6%, and $2.8 million, or 1.4%, respectively, compared to the same period in the prior year. Average loans receivable increased $1.2 million, or 1.4% from a year ago March 31, 2012. Average total deposits at March 31, 2012, increased $17.5 million, or 18.6% compared to year ago. Majority of the growth in average total deposits was used to fund the increases in average investment securities and due from banks-time deposits.
For the quarter ended March 31, 2012, net interest income totaled $1.1 million, increasing marginally over the same period in the prior year. At March 31, 2012, net interest margin was 3.42%, a decline of 62 basis points compared to the same period a year ago despite an increase in both the average earning assets and average interest bearing liabilities. At March 31, 2012, yield on average earning assets declined 75 basis points to 4.51% while the cost of interest-bearing deposits declined 17 basis points to 1.26%, compared to the same period in the prior year primarily due to low interest rates.
The provision for loan loss was $45 thousand for the first quarter 2012, a decrease of $50 thousand compared to a year-ago quarter. The allowance for loan loss at period-end was $1.1 million, or 1.30% of total loans. Mr. O'Donnell 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 $102 thousand for the quarter ended March 31, 2012, compared with $94 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 $974 thousand for the quarter ended March 31, 2012, an increase of $125 thousand, or 15% from year-ago quarter, primarily due to the growth of the bank. Of the total increase in non-interest expense, majority of the increase was in salaries and employee benefits which increased $77 thousand and occupancy and equipment expense which increased $33 thousand as a result of 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 county 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, President and Chief Executive Officer
Naqi A. Naqvi
Executive Vice President & CFO
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Datum: 19.04.2012 - 13:55 Uhr
Sprache: Deutsch
News-ID 137074
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FREEHOLD, NJ
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Insurance
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