New Jersey Community Bank Reports Second Quarter 2017 Results
FREE Breaking News Alerts from StreetInsider.com!
StreetInsider.com Top Tickers, 10/6/2026
- S&P 500, Nasdaq hit record highs as Treasury yields stall, oil slips
- Oil prices fall nearly 2% as Middle East supply concerns ease
- U.S. 10-year yield climb revives dotcom-era parallels: UBS weighs in
- Goldman flags 2 key market risks if a climb in yields persists
- Shell CEO says Middle East oil flows reach 80% of prewar levels
Tweet
Share
E-mailFREEHOLD, NJ -- (Marketwired) -- 08/21/17 -- New Jersey Community Bank (OTCQB: NJCB) (the "Bank") reported a net loss of $278 thousand, or ($0.15) per share for the three months ended June 30, 2017, compared with a net loss of $580 thousand, or ($0.30) per share for the same period in the prior year. For the first six months of 2017, the Bank reported net loss of $512 thousand, or ($0.27) per common share compared with a net loss of $863 thousand, or ($0.45) per common share for the same period in the prior year. The losses for the first six months and the second quarter 2017 improved when compared to the prior year largely due to a substantial decline in operating expenses.
The losses for the second quarter 2017 were further impacted in part due to increased cost of deposits as a result of increases in both average volume and interest rates when compared to the same period in the prior year. Total interest income for the quarter increased primarily as a result of an increase in average loans outstanding despite a decline in interest yield year over year. Net interest margin for the quarter decreased 39 basis points year over year primarily due to the reasons noted above.
Balance Sheet Summary
At June 30, 2017, total assets were $103.6 million, a decrease of $1.6 million from December 31, 2016 primarily as a result of a slight decrease in deposits. Total cash and cash equivalents decreased $3.1 million while due from banks-time deposits decreased $2.2 million. Loans totaled $80.5 million at June 30, 2017, an increase of $3.7 million from the year-end 2016. The growth in loans was funded utilizing the available liquidity in cash and cash equivalents.
Total deposits decreased $1.0 million compared to the levels at year end 2016. Non-interest bearing deposits decreased $687 thousand; Savings, NOW and money market accounts decreased $3.5 million; these were substantially offset by a $3.2 million increase in total time deposits. Time deposits increased as a result of deposit promotion on longer term time deposits.
Shareholders' equity totaled $9.6 million at June 30, 2017, decreasing primarily due to net losses reported during the first six months of 2017 when compared to year-end 2016. The Bank's capital ratios continue to remain strong, with a leverage ratio of 9.20%; common equity tier 1 risk based capital ratio of 11.62%; and a total risk based capital ratio of 12.87%. These ratios exceed those needed to be deemed a well-capitalized financial institution.
Results of Operations
For the quarter ended June 30, 2017, net interest income totaled $729 thousand, decreasing $23 thousand over the same period in the prior year. At June 30, 2017, the net interest margin was 2.95%, decreasing 39 basis points compared to the same period a year ago. The yield on average earning assets decreased 16 basis points to 3.86% while the cost of interest-bearing deposits increased 23 basis points to 1.06%, compared to the same period in the prior year, primarily due to competitive market conditions.
The Bank did not record any provision for loan losses during the second quarter 2017 and 2016. The allowance for loan losses at period-end was $1.5 million, or 1.87% of total loans. Management continue to monitor the asset quality and will take actions necessary to affect the provision for loan losses; however, the current level of the allowance for loan loss is considered to be more than adequate.
Non-interest income decreased $47 thousand to $69 thousand for the quarter ended June 30, 2017, compared with $116 thousand for the same quarter in the prior year. The majority of such decrease is directly related to the gain on sale of other real estate owned recorded in the prior year.
Non-interest expense totaled $1.1 million for the quarter ended June 30, 2017, decreasing $372 thousands from a year-ago quarter. Of the total decrease in non-interest expense, salaries and employee benefits decreased $67 thousand as a result of a reduction in head count while management is attempting to fill certain open positions. Occupancy and equipment expense declined $45 thousand as a direct result of the closure of one of the branch facilities. Professional and other fees decline $215 thousand while the FDIC insurance assessment declined $37 thousand as a result of lifting of the Consent Orders. The decline in professional and other fees was directly related to the Bank complying with certain regulatory orders during the same period in the prior year. All other components of total non-interest expenses showed moderate variances.
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 counties 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.
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 and Subsidiary
Selected Consolidated Financial Highlights
(unaudited)
----------------------------------------------------------------------------
As of or for the Quarters Ended
-------------------------------------------------------
(in thousands, except
per share and
percentage data) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
----------------------------------------------------------------------------
Summary of
Operations:
Interest income $ 953 $ 928 $ 939 $ 935 $ 932
Interest expense 224 204 187 186 170
---------- ---------- ----------- ---------- ----------
Net interest income 729 724 752 749 762
Non-interest
income 69 55 59 60 107
Non-interest expense 1,076 1,013 1,170 1,207 1,449
---------- ---------- ----------- ---------- ----------
Loss before
income tax
expense
(benefit) (278) (234) (359) (398) (580)
Income tax expense
(benefit) - - 2 - -
---------- ---------- ----------- ---------- ----------
Net loss $ (278) $ (234) $ (361) $ (398) $ (580)
========== ========== =========== ========== ==========
Per Common Share:
Basic $ (0.15) $ (0.12) $ (0.19) $ (0.21) $ (0.30)
Diluted (0.15) (0.12) (0.19) (0.21) (0.30)
Book value per share 5.05 5.18 5.30 5.54 5.75
Average shares
outstanding 1,908 1,908 1,908 1,908 1,908
Average diluted
shares outstanding 1,908 1,908 1,908 1,908 1,908
Selected Financial
Ratios:
Return on average
assets -1.07% -0.91% -1.44% -1.53% -2.25%
Return on average
common equity -11.25% -9.34% -13.85% -14.78% -20.49%
Average equity to
average assets 9.51% 9.75% 10.40% 10.37% 10.99%
Risk-based capital:
Total risk-based
capital ratio 12.87% 13.94% 14.08% 14.96% 15.23%
Common equity tier
1 risk-based
capital ratio 11.62% 12.68% 12.83% 13.70% 13.98%
Tier 1 risk-based
capital ratio 11.62% 12.68% 12.83% 13.70% 13.98%
Tier 1 leverage
capital ratio 9.20% 9.67% 10.16% 10.15% 10.67%
Financial Condition:
Total assets $ 103,554 $ 106,718 $ 105,163 $ 101,890 $ 103,279
Loans, net of
unearned income 80,512 75,665 76,796 71,514 71,343
Deposits 93,516 96,355 94,538 90,900 91,795
Shareholder's equity 9,638 9,885 10,115 10,571 10,967
New Jersey Community Bank and Subsidiary
Consolidated Statements of Financial Condition
(dollars in thousands, except share data)
----------------------------------------------------------------------------
June 30, December 31,
2017 2016
-------------- --------------
Assets (unaudited)
Cash and due from banks - non-interest
bearing $ 972 $ 1,531
Federal funds sold and interest-bearing
deposits with banks 2,869 5,415
-------------- --------------
Total Cash and Cash Equivalents 3,841 6,946
Due from banks - time deposits 1,934 4,175
Investment Securities:
Available-for-sale 6,356 6,152
Held-to-maturity 5,991 6,255
-------------- --------------
Total Investment Securities 12,347 12,407
Loans Receivable, net of unearned fees 80,512 76,796
Less: Allowance for loan losses (1,503) (1,608)
-------------- --------------
Net Loans 79,009 75,188
Premises and equipment, net 1,895 1,941
Accrued interest receivable 271 260
Bank-owned life insurance 3,912 3,868
Other assets 345 378
-------------- --------------
Total Assets $ 103,554 $ 105,163
============== ==============
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing $ 12,230 $ 12,917
Savings, NOW and money market 25,071 28,570
Time deposits $250M and over 6,765 7,731
Time deposits, less than $250M 49,450 45,320
-------------- --------------
Total Deposits 93,516 94,538
Accrued interest payable 11 10
Other liabilities 389 500
-------------- --------------
Total Liabilities 93,916 95,048
-------------- --------------
Shareholders' Equity
Common stock, $2 par value; authorized
10,000,000 shares; issued and outstanding
1,908,445 shares, respectively 3,817 3,817
Surplus 13,872 13,866
Accumulated Deficit (8,017) (7,505)
Accumulated other comprehensive income loss (34) (63)
-------------- --------------
Total Shareholders' Equity 9,638 10,115
-------------- --------------
Total Liabilities and Shareholders' Equity $ 103,554 $ 105,163
============== ==============
New Jersey Community Bank and Subsidiary
Consolidated Statements of Operations
(dollars in thousands, except per share data)(unaudited)
----------------------------------------------------------------------------
Three Months Ended Year Ended
June 30, June 30,
------------------- -------------------
2017 2016 2017 2016
--------- --------- --------- ---------
Interest Income
Loans receivable, including fees $ 861 $ 831 $ 1,702 $ 1,732
Investment securities 67 62 135 136
Federal funds sold and interest-
bearing deposits with banks 19 12 30 25
Due from banks - interest bearing 6 16 15 29
--------- --------- --------- ---------
Total Interest Income 953 921 1,882 1,922
--------- --------- --------- ---------
Interest Expense
Deposits 224 169 428 337
--------- --------- --------- ---------
Net Interest Income 729 752 1,454 1,585
--------- --------- --------- ---------
Non-Interest Income
Fees and service charges on
deposit accounts 21 23 42 46
Loan fee income 14 3 16 4
Income from bank owned life
insurance 22 24 44 47
Gain on sale of other real estate
owned - 53 - 53
All other income 12 13 22 23
--------- --------- --------- ---------
Total Non-Interest Income 69 116 124 173
--------- --------- --------- ---------
Non-Interest Expense
Salaries and employee benefits 503 570 1,038 1,176
Occupancy and equipment 154 199 312 387
Data processing services 64 62 125 122
Professional and other fees 246 461 400 623
Advertising and promotion 4 6 8 9
Federal insurance assessment 17 54 32 110
Other operating expenses 88 96 175 194
--------- --------- --------- ---------
Total Non-Interest Expenses 1,076 1,448 2,090 2,621
--------- --------- --------- ---------
Net Loss $ (278) $ (580) $ (512) $ (863)
========= ========= ========= =========
Loss per share:
Basic and diluted $ (0.15) $ (0.30) $ (0.27) $ (0.45)
Weighted average number of common
shares outstanding
Basic and diluted 1,908 1,908 1,908 1,908
New Jersey Community Bank and Subsidiary
Analysis of Consolidated Average Balance Sheet and Net Interest Income
(unaudited)
----------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------------------------
June 30, 2017 June 30, 2016
--------------------------- ---------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
--------- -------- -------- --------- -------- --------
Interest Earning
Assets:
Loans $ 77,395 $ 861 4.46% $ 69,482 $ 831 5.18%
Investment
securities 12,428 67 2.16% 13,488 62 2.18%
Federal funds sold
and interest-
bearing deposits
with banks 7,607 19 1.02% 10,878 12 0.48%
Due from banks -
time deposits 1,693 6 1.42% 5,693 16 0.96%
--------- -------- -------- --------- -------- --------
Total interest-
earning assets 99,123 953 3.86% 99,541 921 4.02%
Allowance for loan
loss (1,542) (1,569)
Cash and due from
banks - non-interest
bearing 1,165 1,534
All other assets 6,304 6,544
--------- ---------
Total assets $105,050 $106,050
========= =========
Interest Bearing
Liabilities:
Deposits:
Savings, NOW and
money market $ 26,331 27 0.41% $ 35,989 28 0.31%
Time deposits 58,311 197 1.35% 45,205 141 1.25%
--------- -------- -------- --------- -------- --------
Total interest-
bearing deposits 84,642 224 1.06% 81,194 169 0.83%
Demand 10,214 12,842
Other liabilities 403 293
--------- ---------
Total liabilities 95,259 94,329
Stockholders' equity 9,791 11,721
--------- ---------
Total liabilities
& stockholders'
equity $105,050 $106,050
========= -------- ========= --------
Net interest income $ 729 $ 752
======== ========
Average interest rate
spread 2.80% 3.19%
======== ========
Net interest margin 2.95% 3.34%
======== ========
Contacts at New Jersey Community Bank: William H. Placke Chairman, President and CEO [email protected] Naqi A. Naqvi Executive Vice President & CFO [email protected]
Source: New Jersey Community Bank
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Truist Securities Highlights Two Machinery Names To Own
- BlackBerry stock rises on QNX software momentum
- Best Application Software Stocks: Citi’s Latest Top Picks
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
FDIC, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
