New Jersey Community Bank Reports Third Quarter 2012 Results
(firmenpresse) - FREEHOLD, NJ -- (Marketwire) -- 10/18/12 -- New Jersey Community Bank (OTCBB: NJCB) (the "Bank") reported net income of $1 thousand for the three months ended September 30, 2012, compared to the third quarter 2011 earnings of $113 thousand, or $0.06 per common share. For the first nine months of 2012, the Bank reported net income of $221 thousand, or $0.12 per common share compared with a net income of $414 thousand, or $0.23 per common share for the same period in the prior year. The earnings for the third quarter and nine months ended September 30, 2012 were negatively impacted by non-interest expense recorded in connection with a settlement with a former executive in the amount of $130 thousand, net of tax effect. Excluding this item, the Bank would have reported earnings of $131 thousand, or $0.08 per common share and $351 thousand, or $0.20 per common share for the third quarter and the nine months ended September 30, 2012, respectively.
Robert D. O'Donnell, Chairman and CEO, commented that, "We continue to operate in a difficult environment for community banks. We continue to combat the low level of interest rates and intense competition for new loans. However, we expect to close the fourth quarter and the year 2012 on a positive note. Our "approved but unfunded" loan pipeline remains healthy and our asset quality continues to be strong."
All common share data presented in this press release including earnings per common share data was adjusted to reflect a five percent stock dividend issued on May 31, 2012.
At September 30, 2012, total assets were $132.3 million, a moderate increase compared to year end 2011. Total cash and cash equivalents and due from banks time deposits totaled $20.4 million, a decrease of $0.7 million from year end 2011. Total investment securities decreased $4.3 million to $15.9 million at September 30, 2012 compared with year end 2011 while loans receivable increased $5.5 million from December 31, 2011. The cash flow resulting from the decrease in both cash and cash equivalents and investment securities was used to fund the loan growth.
Deposits totaled $116.3 million at September 30, 2012, a moderate decrease from year end 2011 as our deposit portfolio was restructured away from time deposits and into core accounts, resulting in a reduced cost of funds. Of the total decrease of $0.1 million in deposits, time deposits decreased $4.3 million, offset by an increase of $1.9 million in demand deposits and $2.3 million in savings, NOW and money market deposits. Shareholders' equity totaled $15.6 million at September 30, 2012. The Bank's capital ratios remain strong and exceed the regulatory requirements of a well capitalized financial institution.
For the quarter ended September 30, 2012, net interest income totaled $1.2 million, an increase of $54 thousand over the same period in the prior year. The increase in net interest income was primarily due to declining interest rates on deposits resulting in a reduction in interest paid on deposits despite an increase in average interest-bearing deposits. Net interest margin improved by 9 basis points to 3.71% for the quarter ended September 30, 2012, over the comparable quarter in 2011. Average yield on earning assets was 4.70%, dropping 10 basis points over the prior year and average rate on interest paying liabilities was 1.17%, dropping 25 basis points over the comparable quarter in the prior year.
The provision for loan loss was $20 thousand for the third quarter 2012, a decrease of $10 thousand compared to the year-ago quarter. The allowance for loan loss at period-end was $1.2 million, or 1.26% 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 losses to be adequate."
Non-interest income decreased $24 thousand to $75 thousand for the quarter ended September 30, 2012 compared with $99 thousand for the same quarter in the prior year. The majority of the decrease is directly related to a decrease in fees and service charges on deposit accounts.
Non-interest expense totaled $1.2 million for the quarter ended September 30, 2012, an increase of $233 thousand from year-ago quarter, primarily due to a compensation expense recorded in connection with a settlement with a former executive. Of the total increase, salaries and employee benefits increased net $213 thousand (including the $272 thousand cost of settlement), occupancy and equipment expense increased $13 thousand and all other expenses combined increased a net of $7 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 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
Terry H. Thompson
President and COO
Naqi A. Naqvi
Executive Vice President & CFO
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 18.10.2012 - 20:00 Uhr
Sprache: Deutsch
News-ID 194071
Anzahl Zeichen: 0
contact information:
Town:
FREEHOLD, NJ
Kategorie:
Commercial & Investment Banking
Diese Pressemitteilung wurde bisher 205 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"New Jersey Community Bank Reports Third Quarter 2012 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
New Jersey Community Bank (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
