Community Bank of Bergen County, NJ Reports First Quarter 2017 Net Income of $0.21 Per Share

MAYWOOD, N.J.--(BUSINESS WIRE)-- Community Bank of Bergen County, NJ (OTCPink: CMTB) reported net income for the first quarter of 2017 of $400,000, or $0.21 per diluted share, which is flat compared to net income reported for the first quarter of 2016 ($401,000, or $0.21 per diluted share).

Net interest income for the first quarter of 2017 decreased by $101,000, and total interest income decreased by $75,000 over the first quarter of 2016, largely the result of lower yields on outstanding loans and flat average outstanding balances during the comparative periods ($233,837,000 for the first quarter of 2017 vs. $233,544,000 for the first quarter of 2016). A $221,000 decrease in interest and fee income from loans was partially offset by an increase of $122,000 in interest and dividends for securities, related to significant growth in average investments year-on-year ($81,201,000 for the first quarter 2017 vs. $65,570,000 for the first quarter of 2016). Interest expense also increased by $26,000 this quarter over the first quarter of 2016, due to a notable rise in interest bearing deposits, period-over-period (an average of $254,513,000 for the first quarter of 2017 vs. $232,294,000 during the first quarter of 2016). Additionally, average non-interest bearing deposits grew from $59,873,000 for the first quarter of 2016 to an average of $63,280,000 in 2017.

The decrease in net income in the first quarter of 2017 was offset by a $100,000 decrease in the provision for loan losses (from $100,000 in the first quarter of 2016 to no provision in 2017).

A $12,000 increase in non-interest income and a $55,000 decrease in non-interest expenses in the first quarter of 2017 compared to the prior year period were offset by a $67,000 increase in income taxes, quarter-over-quarter, mainly a result of higher pre-tax earnings and lower tax-exempt income attributed to the Bank’s declining municipal bond portfolio. These first quarter 2017 results included: $6,000 higher deposit account fee income; a $14,000 increase in losses on the disposition of OREO properties; a decrease of $40,000 in salaries and benefits; an increase of $7,000 in premises and fixed assets, mainly a result of weather related costs; and a $22,000 reduction in all other expenses, notably FDIC insurance (a reduction of $52,700) due to the lower assessment levels which began in the third quarter of 2016.)

The Bank’s total assets at March 31, 2017 rose by $14.9 million from December 31, 2016, due to increases in: cash and due from balances of $4.3 million, investments of $4.8 million and $7.0 million in new loans. These increases were funded by $13.9 million in additional deposits.

“Earnings remain stable compared to last year, and we continue to strengthen our balance sheet,” said Peter A. Michelotti, the Bank’s President & CEO.

At December 31, 2016, the OREO portfolio listed five properties totaling $1.5 million. During the first quarter of 2017, one property was sold at a total loss of $63,000. A second property was sold after sustaining a write-down to the allowance for loan losses of $5,000. In addition, the Bank is continuing to mitigate its problem loans with a diligent work out process. During the first quarter, however, there was an increase in total delinquent loans from $7.4 million at year end 2016, to $8.6 million at March 31, 2017. At March 31, 2017, the ratio of non-performing loans to total loans was 2.53 percent compared to 2.05 percent reported at December 31, 2016.

The Bank’s capital closed this quarter at $29,468,000, up from the $28,689,000, reported at December 31, 2016, with book value per share at $15.36 as compared to $14.96 at December 31, 2016. The Bank remains “well capitalized” as defined under all regulatory guidance.

About Community Bank of Bergen County

Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with three locations in Rochelle Park, Maywood and Fair Lawn. Dedicated to superior service, the bank offers a range of customized personal and business banking products and the convenience of 24-hour ATMs and online banking. With lending decisions made locally, and a responsive management team, Community Bank of Bergen County is committed to providing an exceptional banking experience. On April 11, 2017, the Bank entered into a definitive agreement with Sussex Bancorp and Sussex Bank pursuant to which Sussex Bancorp will acquire the Bank in an all-stock transaction. The transaction is expected to be completed during the third quarter of 2017, subject to approval by each company's shareholders, as well as regulatory approvals and other customary closing conditions.

CBBC is a member of the Federal Deposit Insurance Corporation (FDIC) and an Equal Housing Lender. CBBC makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.

For more information, visit the Bank’s web site at www.cbbcnj.com, and to view CBBC’s 2016 Audited Financial Statements, visit: http://www.cbbcnj.com/home/about-us/investor

Forward-Looking Statements

This press release and other statements made from time to time by Community Bank of Bergen County's management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, capital, liquidity and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. The words “may,” “could,” “should,” “would,” “will,” “project,” “continue,” “believe,” “anticipate,” “expect,” “intend,” “plan,” and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Bank pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy, both nationally and locally, and how it is affecting the financial industry specifically; volatility in interest rates and the shape of the yield curve; increased credit risks and risks associated with the real estate market; the potential for increased non-performing loans; operating, legal, and regulatory risk; economic, political, and competitive forces affecting the Bank's lines of business; the extent and timing of actions of the Federal Reserve Board; customer acceptance of our products and services; the inability to resolve our problem loans as expected; and other risks and uncertainties. Any statements made that are not historical facts should be considered to be forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate, whether as a result of new information or the occurrence of future events, except as may be required by applicable law or regulation.

*Earnings per share has been restated to reflect the 10% stock dividend granted in April of 2016

View source version on businesswire.com: http://www.businesswire.com/news/home/20170425006149/en/

Media:
Community Bank of Bergen County, NJ
Peter A. Michelotti, 201-587-1333
President and CEO
[email protected]

Source: Community Bank of Bergen County, NJ

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