FREEHOLD, NJ — (Marketwired) — 07/18/13 — New Jersey Community Bank (OTCQB: NJCB) (the “Bank”) reported net income of $113 thousand, or $0.06 per common share for the three months ended June 30, 2013, almost unchanged compared to the second quarter 2012 earnings of $112 thousand, or $0.05 per common share. For the first six months of 2013, the Bank reported net income of $204 thousand, or $0.11 per common share compared with a net income of $220 thousand, or $0.12 per common share for the same period in the prior year.
Robert D. O-Donnell, Chairman and CEO, commented that, “Our second quarter earnings benefitted from margin expansion compared to the linked quarter as well as the same quarter a year ago, despite an ultra-competitive environment. We were challenged this quarter by the level of loan payoffs which dampened the new loan growth. We continue to maintain conservative credit discipline and concentrate on closing the approved loans in our pipeline. Expense management remains a key focus as we continue to seek out additional efficiencies within our operations.”
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, 2013.
At June 30, 2013, total assets were $130.9 million, a decline of $7.8 million from December 31, 2012. Total cash and cash equivalents declined $10.5 million compared to year end 2012, majority of which was offset by a decline in total deposits. Investment securities increased $2.4 million while loans receivable decreased $0.6 million compared to year end 2012. The decrease in loans receivables was a result of ongoing scheduled principal payments.
Total deposits decreased $7.9 million compared to the levels at year end 2012. Majority of the decrease resulted from the maturing time deposits which were paid off utilizing the excess levels of cash and cash equivalents during the first six months of 2013. Savings, NOW and money market deposits combined increased $4.1 million while non-interest bearing deposits declined $0.8 million compared to the levels reported at year-end 2013.
Shareholders- equity totaled $15.8 million at June 30, 2013, increasing moderately from year-end 2012. The Bank-s capital ratios remain strong and exceed the regulatory requirements to be deemed a well capitalized financial institution.
For the quarter ended June 30, 2013, net interest income totaled $1.2 million, an increase of $66 thousand over the same period in the prior year. The increase in net interest income was primarily due to declining interest rates on interest-bearing deposits. Net interest margin increased 55 basis points to 3.97% for the quarter ended June 30, 2013, over the comparable quarter in 2012. Average yield on earning assets was 4.72%, increasing 9 basis points over the prior year and average rate on paying liabilities was 0.88%, dropping 95 basis points over the comparable quarter in the prior year.
The provision for loan loss was $55 thousand for the second quarter 2013, an increase of $30 thousand compared to the year-ago quarter. The allowance for loan loss at period-end was $1.3 million, or 1.41% 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 $41 thousand to $118 thousand for the quarter ended June 30, 2013 compared with $77 thousand for the same quarter in the prior year. Majority of the increase in non-interest income resulted from increase in cash surrender value of bank-owned life insurance and gain on sale of investment securities available for sale.
Non-interest expense totaled $1.1 million for the quarter ended June 30, 2013, an increase of $77 thousand from year-ago quarter. Salaries and employee benefits increased $24 thousand due to annual salary increases and increased health benefit costs. Professional and other fees increased $38 thousand in part due to increase in audit fees as it relates to changing regulatory landscape and legal services utilized by the Bank. All other expenses combined increased a net of $15 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
New Jersey Community Bank
3441 Route Nine North, Freehold, New Jersey 07728
(732) 431-2265
Fax (732) 303-1831