updated 1/19/2011 2:17:24 PM ET 2011-01-19T19:17:24

FREEHOLD, N.J., Jan. 19, 2011 (GLOBE NEWSWIRE) -- New Jersey Community Bank (OTCBB:NJCB) (the "Bank") reported net income of $147 thousand, or $0.09 per common share for the three months and year ended December 31, 2010, compared with a net loss of $(417) thousand, or $(0.25) per common share and $(1.4) million, or $(0.85) per common share, respectively, for the same periods in the prior year.

Robert D. O'Donnell, Chairman and CEO commented that, "Despite the unsettled economic environment, our fourth quarter and full year results were positive. However, with the unemployment at a record high, the New Jersey economy remains under duress. With the signs of modest recovery in the future, we remain cautiously optimistic as we step into year 2011."

James A. Kinghorn, President and COO added that, "During the fourth quarter, we continued to combat a slow-growth and low-rate environment that has impacted new loan demand. In the light of these challenges, we were able to report improved operating results for the fourth quarter 2010 and expand our net interest margin year over year. Our credit quality remained stable compared to many of our peers. 'Approved but unfunded' loan pipeline remains healthy and is expected to fund in excess of $5.0 million over the next 90 days."

Balance Sheet Summary

At December 31, 2010, total assets were $111.4 million, an increase of $23.1 million, or 26.2%, over $88.2 million reported at December 31, 2009, primarily as a result of increases in interest-bearing due from banks, investment securities and loans receivable, partially offset by a decrease in cash and cash equivalents. Cash and cash equivalents decreased $10.7 million, or 60.0%, to $7.3 million at December 31, 2010, from $17.9 million at December 31, 2009. The reduction in cash and cash equivalents was used to fund the increases in interest-bearing due from banks and investment securities.

Investment securities increased $4.9 million, or 62.6%, to $12.6 million at December 31, 2010, from $7.8 million reported at December 31, 2009. Total loans receivable increased $26.3 million, or 45.0%, to $84.7 million at December 31, 2010, from $58.4 million reported at December 31, 2009. 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 $22.9 million, or 30.5%, to $97.9 million during the year 2010. Of the total increase, core deposits, consisting of savings, NOW, money market and demand deposit accounts increased $19.3 million or 84.4%. Time deposits increased $3.6 million or 15.6%. Shareholders' equity totaled $13.4 million as of December 31, 2010. The Bank's capital ratios exceed the regulatory requirements of a well capitalized financial institution.

Results of Operations

Fourth Quarter 2010

For the quarter ended December 31, 2010, net interest income totaled $1.0 million, increasing $413 thousand over the same period in the prior year. The increase in net interest income was primarily due to a combination of both a $25.9 million increase in average earning assets coupled with 51 basis points increase in average yield on earning assets. In addition, during the same period, average paying liabilities increased $25.5 million; while the yield on the paying liabilities declined 44 basis points. Total interest income for the quarter ended December 31, 2010 totaled $1.4 million while the interest expense totaled $355 thousand. Net interest margin improved to 3.88% for the quarter ended December 31, 2010, an increase of 81 basis points over the comparable quarter in 2009.

The provision for loan loss was $141 thousand for the fourth quarter 2010, a decrease of $241 thousand compared to a year-ago quarter. Mr. O'Donnell and Mr. Kinghorn noted, "There were no non-performing loans at December 31, 2010, however, we continue to maintain adequate allowance for loan loss. During the fourth quarter 2010, we charged-off one non-performing loan in the amount of $79 thousand." The allowance for loan loss at period-end was $975 thousand, or 1.15% of total loans.

Non-interest income increased $72 thousand, to $125 thousand for the quarter ended December 31, 2010 compared with $53 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 $864 thousand for the quarter ended December 31, 2010, an increase of $162 thousand from year-ago quarter, primarily due to the growth of the bank. Of the total increase, occupancy and equipment expense increased $68 thousand due to recording of an accounting adjustment. Salaries and employee benefits increased $59 thousand due to addition of personnel.

Full Year 2010

For the full year ended December 31, 2010, net interest income totaled $3.4 million, increasing $1.8 million over the full prior year. The increase in net interest income was primarily due to a combination of both a $39.0 million increase in average earning assets coupled with 41 basis points increase in average yield on earning assets. During the year, average paying liabilities increased $38.6 million; while the yield on the paying liabilities declined 56 basis points. Total interest income for the year 2010 was $4.9 million while the interest expense totaled $1.5 million. Net interest margin improved to 3.45% for the year 2010, an increase of 69 basis points over the full year 2009.

The provision for loan loss was $472 thousand for the year, a decrease of $247 thousand compared to prior year, primarily related to a $300 thousand loan charge-off in 2009. During the year 2010, the Bank charged-off two non-performing loans totaling $162 thousand.

Non-interest income increased $251 thousand, to $412 thousand for the full year 2010 compared with $161 thousand 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 $3.2 million for the full year 2010, an increase of $719 thousand over prior full year. Of the total increase, salaries and employee benefits increased $417 thousand and occupancy and equipment expense increased $151 thousand. Increase in total non-interest expense is primarily due to addition of personnel, increased health benefits cost and the overall growth of the bank including an entire year of operations of the Neptune City 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 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)          
  For the Quarter Ended
($s in thousands, except per share data) 12/31/2010 9/30/2010 6/30/2010 3/31/2010 12/31/2009
           
SUMMARY of OPERATIONS:          
Interest income  $ 1,383  $ 1,294  $ 1,177  $ 1,022  $ 941
Interest expense  355  388  364  349  327
Net interest income  1,027  906  813  673  614
 Provision for loan loss  141  115  103  113  382
 Non-interest income  124  101  96  91  53
 Non-interest expense  864  790  795  763  702
 Net income  147  101  11  (112)  (417)
           
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
Earnings (loss) per share:          
 Basic  $ 0.09  $ 0.06  $ 0.01  $ (0.07)  $ (0.25)
 Diluted  0.09  0.06  0.01  (0.07)  (0.25)
 Book value per share  $ 8.10  $ 8.05  $ 7.95  $ 7.90  $ 7.96
           
SELECTED FINANCIAL RATIOS:          
Return on average assets 0.54% 0.37% 0.04% -0.49% -2.00%
Return on average common equity 4.39% 3.07% 0.34% -3.41% -10.64%
Net interest margin 3.88% 3.41% 3.36% 3.08% 3.07%
Efficiency ratio 75.01% 78.50% 87.47% 99.85% 105.25%
Loan to deposit ratio 86.55% 79.61% 79.98% 84.38% 77.84%
           
CAPITAL RATIOS:          
Average equity to average assets 12.22% 11.99% 13.00% 14.40% 18.79%
Tier 1 leverage capital ratio 12.28% 12.02% 13.04% 14.32% 15.71%
Tier 1 risk-based capital ratio 14.31% 15.10% 15.97% 17.22% 19.76%
Total risk-based capital ratio 15.34% 16.14% 17.04% 18.24% 20.76%
           
  As of
  12/31/2010 9/30/2010 6/30/2010 3/31/2010 12/31/2009
FINANCIAL CONDITION:          
End of period balances:          
 Investment securities  $ 12,601  $ 12,775  $ 10,529  $ 7,215  $ 7,750
 Loans, net of unearned income  84,693  78,600  73,534  68,421  58,393
 Total earning assets (before allowance)  107,770  108,553  101,539  90,526  81,252
 Total assets  111,376  112,173  105,244  94,210  88,209
 Deposits  97,855  98,730  91,938  81,085  75,014
 Shareholder's equity  13,364  13,267  13,114  13,034  13,127
           
Average balances:          
 Investment securities  $ 12,927  $ 11,721  $ 8,413  $ 7,718  $ 7,456
 Loans  81,554  76,466  71,798  63,516  56,574
 Total earning assets (before allowance)  105,947  106,445  96,783  87,352  79,975
 Total assets  109,299  110,073  100,425  91,027  83,413
 Deposits  95,759  96,684  87,194  77,731  65,193
 Shareholder's equity  13,357  13,199  13,059  13,106  15,672
           
ASSET QUALITY:          
Gross loan charge-offs  $ 79  $ 83  $ --  $ --  $ 300
Net loan charge-offs  79  83  --  --  300
Allowance for loan losses  975  913  880  777  664
Past due and nonaccrual loans  --  79  162  83  117
Allowance for loan losses to total loans 1.15% 1.16% 1.20% 1.14% 1.14%
Past due and nonaccrual loans to total loans 0.00% 0.10% 0.22% 0.12% 0.20%
Net loan charge-offs to average loans 0.10% 0.11% 0.00% 0.00% 0.53%
     
New Jersey Community Bank    
Statements of Financial Condition    
(dollars in thousands)    
     
  December 31,
  2010 2009
Assets (unaudited)  
Cash and due from banks - non-interest bearing  $ 1,389  $ 839
Federal funds sold  5,865  17,109
Total Cash and Cash Equivalents  7,254  17,948
Due from banks - interest bearing  4,612  1,524
Investment Securities:    
Available-for-sale  11,381  7,495
Held-to-maturity  1,220  256
Total Investment Securities  12,601  7,751
Loans Receivable, net of unearned income  84,693  58,392
Less: Allowance for loan losses  (975)  (664)
Net Loans  83,718  57,728
Premises and equipment, net  2,534  2,652
Accrued interest receivable  304  206
Other assets  354  400
Total Assets  $ 111,376  $ 88,209
     
Liabilities and Shareholders' Equity    
     
 Liabilities    
Deposits:    
Non-interest bearing  $ 5,709  $ 4,382
Savings, NOW and money market  29,740  11,789
Time deposits under $100M  21,296  22,816
Time deposits $100M and over  41,110  36,027
Total Deposits  97,855  75,014
     
Accrued interest payable  12  3
Other liabilities  145  66
Total Liabilities  98,012  75,083
     
 Shareholders' Equity    
Common stock, $2 par value; authorized 10,000,000 shares;    
issued and outstanding 1,648,783 shares  3,298  3,297
Surplus  13,519  13,348
Accumulated Deficit  (3,391)  (3,538)
Accumulated other comprehensive income  (62)  19
Total Shareholders' Equity  13,364  13,126
Total Liabilities and Shareholders' Equity  $ 111,376  $ 88,209
         
New Jersey Community Bank        
Statements of Operations        
(dollars in thousands, except per share data)        
         
  Three Months Ended For the Year Ended
  December 31, December 31,
  2010 2009 2010 2009
Interest Income (unaudited) (unaudited)
Loans receivable, including fees  $ 1,291  $ 887  $ 4,574  $ 2,577
Investment securities  77  39  241  75
Federal funds sold  3  7  24  26
Due from banks - interest bearing  12  8  37  26
Total Interest Income  1,383  941  4,876  2,704
Interest Expense        
Deposits  355  327  1,456  1,047
         
Total Interest Expense  355  327  1,456  1,047
Net Interest Income before Provision for Loan Loss  1,028  614  3,420  1,657
Provision for Loan Loss  141  382  472  719
Net Interest Income after Provision for Loan Loss  887  232  2,948  938
Non-Interest Income        
Fees and service charges on deposit accounts  104  43  344  119
Loan fee income  4  3  20  18
All other income  16  7  48  25
Total Non-Interest Income  124  53  412  162
Non-Interest Expense        
Salaries and employee benefits  456  397  1,831  1,414
Occupancy and equipment  211  144  643  492
Data processing services  34  23  120  85
Professional and other fees  54  49  173  162
Advertising and promotion  4  5  18  23
Federal insurance assessment  41  25  154  100
Other operating expenses  64  59  274  217
Total Non-Interest Expenses  864  702  3,213  2,494
         
Net Income (Loss)  $ 147  $ (417)  $ 147  $ (1,394)
         
Income (Loss) per share:        
Basic  $ 0.09  $ (0.25)  $ 0.09  $ (0.85)
Diluted  0.09  (0.25)  0.09  (0.85)
           
New Jersey Community Bank          
Analysis of Average Balance Sheet and Net Interest Income        
             
  For the Three Months Ended December 31,
  2010 2009
  Average   Average Average   Average
  Balance Interest Rate Balance Interest Rate
             
Interest Earning Assets:            
Loans  $ 81,554  $ 1,291 6.28%  $ 56,574  $ 887 6.22%
Investment securities  12,927  77 2.40%  7,505  39 2.10%
Federal funds sold  6,073  3 0.17%  14,112  7 0.19%
Due from banks - interest bearing  5,393  12 0.88%  1,833  8 1.79%
Total interest-earning assets  105,947  1,383 5.18%  80,023  941 4.67%
Allowance for loan losses  (964)      (611)    
Cash and due from banks  1,144      1,048    
Other assets  3,172      2,952    
Total assets  $ 109,299      $ 83,413    
             
Interest Bearing Liabilities:            
Deposits:            
Savings, NOW and money market  $ 28,716  89 1.22%  $ 11,553  36 1.24%
Time deposits under $100M  21,179  94 1.76%  16,407  98 2.37%
Time deposits $100M and over  40,760  172 1.68%  37,233  193 2.05%
Total deposits  90,654  355 1.55%  65,193  326 1.99%
Borrowed money            
Total interest-bearing liabilities  90,654  355 1.55%  65,193  326 1.99%
             
 Demand  5,106      4,690    
 Other liabilities  183      166    
Total liabilities  95,942      70,049    
             
Stockholders' equity  13,357      13,364    
Total liabilities & stockholders' equity  $ 109,299      $ 83,413    
Net interest income    $ 1,028      $ 615  
             
Average interest rate spread     3.63%     2.68%
             
Net interest margin     3.88%     3.07%
           
New Jersey Community Bank          
Analysis of Average Balance Sheet and Net Interest Income        
             
  For the Year Ended December 31,
  2010 2009
  Average   Average Average   Average
  Balance Interest Rate Balance Interest Rate
             
Interest Earning Assets:            
Loans  $ 73,391  $ 4,574 6.23%  $ 40,992  $ 2,577 6.29%
Investment securities  10,213  241 2.36%  3,112  75 2.42%
Federal funds sold  12,425  24 0.19%  14,710  26 0.17%
Due from banks - interest bearing  3,173  37 1.18%  1,341  26 1.94%
Total interest-earning assets  99,203  4,876 4.91%  60,155  2,704 4.50%
Allowance for loan losses  (851)      (438)    
Cash and due from banks  1,200      962    
Other assets  3,224      2,865    
Total assets  $ 102,776      $ 63,544    
             
Interest Bearing Liabilities:            
Deposits:            
Savings, NOW and money market  $ 20,115  245 1.22%  $ 10,097  137 1.36%
Time deposits under $100M  20,775  417 2.01%  11,624  314 2.70%
Time deposits $100M and over  43,448  794 1.83%  24,004  596 2.48%
Total deposits  84,338  1,456 1.73%  45,725  1,047 2.29%
Total interest-bearing liabilities  84,338  1,456 1.73%  45,725  1,047 2.29%
             
 Demand  5,073      3,866    
 Other liabilities  184      152    
Total liabilities  89,595      49,743    
             
Stockholders' equity  13,181      13,801    
Total liabilities & stockholders' equity  $ 102,776      $ 63,544    
Net interest income    $ 3,420      $ 1,657  
             
Average interest rate spread     3.18%     2.21%
             
Net interest margin     3.45%     2.75%
CONTACT: Robert D. O'Donnell
         Chairman and CEO
         rodonnell@njcbk.com
         
         James A. Kinghorn
         President and COO
         jkinghorn@njcbk.com
         
         Naqi A. Naqvi
         SVP & CFO
         nnaqvi@njcbk.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 5.03%
$30K home equity loan FICO 5.68%
$75K home equity loan FICO 5.00%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com