MAYWOOD, N.J., January 21, 2016 - Community Bank of Bergen County, NJ (OTCPink: CMTB) reported net in- come for the fourth quarter of 2015 of $508,000, or $0.29 per diluted share, a slight increase over net income of
$492,000, or $0.28 per diluted share, for the fourth quarter of 2014. For the year ended December 31, 2015, Communi- ty Bank reported annual earnings of $1,831,000, or $1.05 per diluted share, in comparison to $1,196,000, or $0.69 per diluted share, for the year ended December 31, 2014.
The Bank's net interest income for the fourth quarter of 2015 increased by $87,000 over the fourth quarter of 2014. Interest income for the fourth quarter of 2015 showed an increase of $107,000 over the same period last year and is largely attributed to a rise in loans (an average of $233,931,000 in the December 31, 2015 quarter as compared to an average of $219,754,000 in the December 31, 2014 quarter, a $14,177,000 increase), primarily in the 1-4 family resi- dential category, mitigated by lower market rates on these new loans. This increase was partially offset by an increase in interest expense of $11,000 this quarter in comparison to the fourth quarter of 2014, due to the increase in average deposits of $26,993,000. The increase in deposits was attributed to approximately $23.7 million in public funds newly acquired during the summer of 2015. Additionally, other borrowings generated an increased interest cost of $9,000 over the prior-year period.
Fourth quarter 2015 results also benefitted from a $100,000 decrease in the provision for loan losses over the same quarter last year. The Bank also experienced a significant savings in other non-interest expense of $175,000 over the same period last year, due to the reimbursement of more than $67,000 in previously expensed legal fees through the Bank's collection efforts, and a $126,000 reclassification from other non-interest expense in the December 31, 2015 quarter to a net loss on the sale of other real estate owned (OREO) as a result of the sale of one property.
The savings discussed above were partially offset by a decrease in total non-interest income of $194,000 this quarter over the quarter ended December 31, 2014, due to losses sustained in the sale of one other real estate property noted above. Nearly 65 percent of the loss, $126,000, was the result of the reclassification previously noted. Additionally, a continued drop in service charges on deposit accounts resulted in further decreases in non-interest income.
"We are very pleased with our quarterly and annual results and both exceeded our budgets. This was accomplished by executing our growth strategy according to plan in this extremely competitive local banking environment," said Peter
A. Michelotti, the Bank's President & CEO. "We are cautiously optimistic for the coming year and remain focused on improving our core operating earnings and maintaining organizational efficiency."
The Bank's net income for the year ended December 31, 2015 was $1,831,000, an increase over last year's net income which came in at $1,196,000. In spite of the continuing stress generated by the Bank's OREO portfolio, annual earn- ings increased due to higher loan balances (average loans were $231,272,000 for 2015 vs. 210,112,000 for 2014) at relatively stable interest rates offset by higher deposits (an average of $277,879,000 for 2015 vs. $262,329,000 for 2014) at a relatively low interest cost, resulting in a $517,000 improvement in net interest income. The improvement in net income also is due to lower losses recorded on the disposal of OREO properties ($899,000 savings) and a $400,000 reduction in the provision for loan losses. These were partially offset by a $246,000 reduction in gains from the sale of securities (from $248,000 in 2014 to $2,000 in 2015), and a $211,000 increase in non-interest expenses (led by a
$328,000 increase in salary and employee expenses), and a $539,000 increase in income tax expense.
Beginning at December 31, 2014 the OREO portfolio listed four properties totaling $0.8 million. During the year fol- lowing, three properties were sold at a total loss of $129,000. However, through the apparent acceleration of foreclo- sure proceedings, five new properties were added to the OREO portfolio, giving it a total carrying value of $1,134,000 at December 31, 2015.
The Bank's total assets at December 31, 2015 increased by $29,227,000 from December 31, 2014 mainly due to in- creases in loans of $8,495,000, and the significant increase in deposits of $23,567,000 largely the result of the new public funds deposits acquired during the year.
The Bank is continuing to mitigate its high level of problem loans with a diligent work out process. During the year, there was a decrease in total delinquent loans from $12.7 million at year end 2014 to $9.4 million at December 2015. At year end 2015, the ratio of non-accruing loans to total loans is 3.30 percent.
"Our primary goal for 2016 is to continue to resolve our legacy problem assets. These outstanding loans continue to burden earnings and, unfortunately, non interest expenses will remain at an elevated level until they are resolved," said Michelotti.
The Bank's capital closed this quarter at $27,949,000, up from the $26,246,000 reported at December 31, 2014, with book value per share at $16.03 as compared to $15.05 at December 31, 2014. The Bank remains "well capitalized" as defined under all regulatory guidance.
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDARIES SUMMARY FINANCIAL HIGHLIGHTS( in Thousands, Except Percentages and Per Share Data)
Financial Highlights:
Symbol CMTB 52 week range
Financial Data - Year to date
$8.35-$12.60
Unaudited | Unaudited | |
For the Period Ended December 31, | For the Year Ended December 31, | |
2015 | 2014 | |
Balance Sheet Highlights | ||
Total securities | $66,078 | $52,021 |
Total loans | $231,233 | $222,738 |
Allowance for loan losses | $3,413 | $3,458 |
Total assets | $326,259 | $298,032 |
Total deposits | $290,803 | $267,236 |
Total liabilities | $298,310 | $271,786 |
Total shareholders' equity | $27,949 | $26,246 |
Unaudited | Unaudited | |
Financial data -Year to date | For the year ended December 31, 2015 | For the the year ended December 31, 2014 |
Net Interest income | $10,771 | $10,344 |
Provision for loan losses | $125 | $525 |
Loss on sale of OREO | ($165) | ($1,064) |
Total other income | $679 | $774 |
Total other expenses | $8,547 | $8,336 |
Income before provision for income taxes | $2,615 | $1,441 |
Provision (benefit) for income taxes | $784 | $245 |
Net income after tax $1,831 $1,196
Other Earnings Information
Earnings per share $1.05 $0.69
Return on Assets 0.56% 0.40%
Share Information
At December 31, 2015 | At December 31, 2014 | |
Market price per share | $11.00 | $9.50 |
Book Value per common share | $16.03 | $15.05 |
Outstanding Shares -period ending 1,743,618 1,743,618
Capital ratios
Total equity to total assets | 8.57% | 8.81% |
Tier 1 leverage ratio | 7.85% | 7.91% |
Common equity tier 1 capital ratio | 12.88% | n/a |
Tier 1 capital ratio | 12.88% | 11.84% |
Total capital ratio 14.15% 13.09%
Asset Quality and Ratios
Other Real Estate Owned (OREO) | $1,134 | $780 |
Non-acccrual loans | $7,630 | $6,169 |
Troubled debt restructured loans ("TDRs") | $2,716 | $2,769 |
Non-accruing loans/total loans | 3.30% | 2.77% |
Allowance for loan loss/total loans | 1.48% | 1.55% |
Allowance for loan loss/non-accrual loans | 45% | 56% |
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Assets
Cash and balances due from depository institutions:
Non-interest-bearing balances and currency and coin.....
December 31, 2015 (Unaudited)
Dollars in Thousands
$ 2,825
December 31, 2014 (Unaudited)
Dollars in Thousands
$ 4,026
Interest-bearing balances............................... 9,451 2,518
Securities | ||
Held-to-maturity securities............................. | 0 | 0 |
Available-for-sale securities........................... | 66,078 | 52,021 |
Loans and lease financing receivables: | ||
Loans and leases, net of unearned income................ | $ 231,233 | $ 222,738 |
LESS: Allowance for loan and lease losses............... | 3,413 | 3,458 |
Loans and leases, net of allowance...................... | 227,820 | 219,280 |
Premises and fixed assets (including capitalized leases)....... | 5,942 | 6,127 |
Other Real Estate Owned........................................ | 1,134 | 780 |
Other assets................................................... | 13,009 | 13,280 |
Total Assets........................................... | $ 326,259 | $ 298,032 |
Liabilities Deposits:
Interest-bearing........................................ | $ 236,395 | $ 215,118 |
Non-interest-bearing.................................... | 54,408 | 52,118 |
Total deposits.......................................... | 290,803 | 267,236 |
Borrowed funds................................................. | 6,000 | 3,000 |
Other liabilities.............................................. | 1,507 | 1,550 |
Total Liabilities...................................... | 298,310 | 271,786 |
Equity Capital | ||
Common Stock: par value $5.00; 5,000,000 and 1,800,000 shares | ||
authorized; 1,743,618 shares issued and outstanding, respectively | 8,718 | 8,718 |
Surplus........................................................ | 4,170 | 3,988 |
Stock Options.................................................. | 0 | 182 |
Retained earnings.............................................. | 14,819 | 12,988 |
Accumulated other comprehensive income......................... | 242 | 370 |
Total Equity Capital................................... | 27,949 | 26,246 |
Total Liabilities, and Equity Capital.................. | $ 326,259 | $ 298,032 |
Capital Ratios: | ||
Capital to Asset ratio | 8.57% | 8.81% |
Tier 1 leverage ratio | 7.85% | 7.91% |
Common equity tier 1 capital ratio | 12.88% | n/a |
Tier 1 risk-based capital ratio | 12.88% | 11.84% |
Total risk-based capital ratio | 14.15% | 13.09% |
Community Bank of Bergen County, NJ issued this content on 21 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 January 2016 22:22:28 UTC
Original Document: http://www.cbbcnj.com/home/fiFiles/static/documents/CBBC_Q4_2015_FINAL.pdf
