News & Analysis
New Jersey Community Bank Reports Fourth Quarter and Full Year Results for 2011
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."
Balance Sheet Summary
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.
Results of Operations
Fourth Quarter 2011 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.
Full Year 2011 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 www.njcbk.com 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.
New Jersey Community Bank
Selected Financial Highlights
(unaudited)
----------------------------------------------------------------------------
As of or for the Quarters Ended
-------------------------------------------------------
(in thousands,
except per share
and percentage
data) 12/31/2011 9/30/2011 6/30/2011 3/31/2011 12/31/2010
---------------------------------------------------------------------------
Summary of
Operations:
Interest income $ 1,464 $ 1,509 $ 1,516 $ 1,438 $ 1,383
Interest expense 380 382 362 335 355
---------- --------- --------- --------- ----------
Net interest
income 1,084 1,127 1,154 1,103 1,027
Provision for
loan loss 35 30 84 95 141
---------- --------- --------- --------- ----------
Net interest
income after
provision
for loan
loss 1,049 1,097 1,070 1,008 886
Non-interest
income 127 99 99 95 124
Non-interest
expense 964 989 884 849 864
---------- --------- --------- --------- ----------
Income
before
income tax
expense
(benefit) 212 207 285 254 147
Income tax
expense
(benefit) 74 94 126 112 (1,190)
---------- --------- --------- --------- ----------
Net income $ 138 $ 113 $ 159 $ 142 $ 1,337
========== ========= ========= ========= ==========
Earnings per
share:
Basic $ 0.08 $ 0.07 $ 0.09 $ 0.08 $ 0.77
Diluted 0.08 0.07 0.09 0.08 0.77
Book value per
share 8.83 8.80 8.68 8.51 8.83
Average shares
outstanding 1,731 1,731 1,731 1,731 1,731
Average diluted
shares
outstanding 1,731 1,731 1,731 1,731 1,731
Selected Financial
Ratios:
Return on
average assets 0.43% 0.35% 0.52% 0.49% 4.89%
Return on
average common
equity 3.62% 3.00% 4.29% 3.86% 39.99%
Average equity
to average
assets 11.73% 11.70% 12.03% 12.74% 12.23%
Risk-based
capital:
Total risk-
based capital
ratio 16.39% 16.35% 15.58% 15.80% 15.65%
Tier 1 risk-
based capital
ratio 15.25% 15.16% 14.43% 14.68% 14.61%
Tier 1
leverage
capital ratio 11.41% 11.17% 11.50% 12.19% 12.69%
Financial
Condition:
Total assets $ 132,050 $ 129,402 $ 125,826 $ 122,898 $ 112,565
Loans, net of
unearned income 87,857 86,938 89,678 87,713 84,693
Deposits 116,394 113,821 110,518 107,984 97,855
Shareholder's
equity 15,293 15,231 15,024 14,738 14,554
New Jersey Community Bank
Statements of Financial Condition
(dollars in thousands, except per share amounts)
---------------------------------------------------------------------------
December 31,
----------------------------
2011 2010
-------- --------
Assets (unaudited)
Cash and due from banks - non-interest
bearing $ 1,519 $ 1,341
Federal funds sold and interest-bearing
deposits with banks 12,877 5,912
-------- --------
Total Cash and Cash Equivalents 14,396 7,253
Due from banks - time deposits 6,671 4,612
Investment Securities:
Available-for-sale 18,719 11,381
Held-to-maturity 1,469 1,220
-------- --------
Income before income tax expense
(benefit) 20,188 12,601
Income tax expense (benefit) 87,857 84,693
Net income (1,101) (975)
-------- --------
Net Loans 86,756 83,718
Earnings per share: 2,610 2,534
Accrued interest receivable 363 304
Deferred tax assets 785 1,232
Other assets 280 311
-------- --------
Total Assets $132,050 $112,565
======== ========
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing $ 6,058 $ 5,709
Savings, NOW and money market 36,508 29,740
Time deposits $100M and over 50,483 41,110
Time deposits, other 23,346 21,296
-------- --------
Total Deposits 116,394 97,855
Accrued interest payable 15 12
Other liabilities 348 144
-------- --------
Total Liabilities 116,757 98,011
-------- --------
Shareholders' Equity
Common stock, $2 par value; authorized
10,000,000 shares; issued and outstanding
1,731,204 and 1,648,783 shares,
respectively 3,462 3,298
Surplus 13,930 13,519
Accumulated Deficit (2,148) (2,201)
Accumulated other comprehensive income
(loss) 49 (62)
-------- --------
Total Shareholders' Equity 15,293 14,554
-------- --------
Total Liabilities and Shareholders'
Equity $132,050 $112,565
======== ========
New Jersey Community Bank
Statements of Income
(in thousands, except per share amounts)
---------------------------------------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
-------------------------- --------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Interest Income (unaudited) (unaudited) (unaudited) (unaudited)
Loans receivable,
including fees $ 1,351 $ 1,291 $ 5,509 $ 4,574
Investment
securities 94 77 356 241
Federal funds sold
and interest-
bearing deposits
with banks 8 3 24 24
Due from banks -
interest bearing 11 12 38 37
------------ ------------ ------------ ------------
Total Interest
Income 1,464 1,383 5,927 4,876
------------ ------------ ------------ ------------
Interest Expense
Deposits 380 355 1,459 1,456
------------ ------------ ------------ ------------
Total Interest
Expense 380 355 1,459 1,456
------------ ------------ ------------ ------------
Net Interest
Income before
Provision for
Loan Loss 1,084 1,028 4,468 3,420
Provision for Loan
Loss 35 141 244 472
------------ ------------ ------------ ------------
Net Interest
Income after
Provision for
Loan Loss 1,049 887 4,224 2,948
------------ ------------ ------------ ------------
Non-Interest Income
Fees and service
charges on
deposit accounts 95 104 343 344
Loan fee income 21 4 41 20
All other income 11 16 36 48
------------ ------------ ------------ ------------
Total Non-
Interest Income 127 124 420 412
------------ ------------ ------------ ------------
Non-Interest Expense
Salaries and
employee benefits 489 456 2,107 1,831
Occupancy and
equipment 185 211 683 643
Data processing
services 40 34 144 120
Professional and
other fees 119 54 282 173
Advertising and
promotion 9 4 30 18
Federal insurance
assessment 27 41 125 154
Other operating
expenses 95 64 315 269
------------ ------------ ------------ ------------
Total Non-
Interest
Expenses 964 864 3,686 3,208
------------ ------------ ------------ ------------
Income Before
Income Tax
Expense
(Benefit) 212 147 958 .152
Income tax expense
(benefit) 74 (1,190) 406 (1,185)
------------ ------------ ------------ ------------
Net Income $ 138 $ 1,337 $ 552 $ 1,337
============ ============ ============ ============
Income per share:
Basic and diluted $ 0.08 $ 0.77 $ 0.32 $ 0.58
Weighted average
number of common
shares outstanding
Basic and diluted 1,731 1,731 1,731 1,731
Contacts at New Jersey Community Bank: Robert D. O'Donnell Chairman and CEO rodonnell@njcbk.com Naqi A. Naqvi SVP & CFO nnaqvi@njcbk.com 3441 Route Nine North Freehold, New Jersey 07728 (732) 431-2265 Fax (732) 303-1831 www.njcbk.com
SOURCE: New Jersey Community Bank
Stock Market Forum
- May 22 - Free Forex Pairs Trends
22 May 2012
- May 22- Gold, Silver, copper Trends
22 May 2012
- May 22 - Crude oil, Natural Gas Free Trends
22 May 2012
- Intraday tips for 22nd may
22 May 2012
- Daily Indian Stock market opening bell(22-05-12)
22 May 2012
- May 21 - Gold, Silver, copper Trends
21 May 2012
- May 21 - Free Forex Pairs Trends
21 May 2012
- May 21 - Crude oil, Natural Gas Free Trends
21 May 2012
- Daily Indian Stock market opening bell(21-05-12)
21 May 2012
- Intraday tips for 21st may
21 May 2012