New Jersey Community Bank Reports Revised Fourth Quarter and Full Year Results for 2013
FREEHOLD, NJ--(Marketwired - Apr 14, 2014) - New Jersey Community Bank (OTCQB: NJCB) (the "Bank") reported revised and updated results for the quarter and year ended December 31, 2013. The Bank had originally reported on January 27, 2014, net loss of $212 thousand, or $(0.11) per common share and earnings of $114 thousand, or $0.06 per common share, for the three months and year ended December 31, 2013, respectively. As revised, the Bank is now reporting net loss of $1.6 million, or $(0.82) per common share and $1.2 million, or $(0.65) per common share for the three months and year ended December 31, 2013.
The change in the Bank's reported results is directly related to recording, as of December 31, 2013, a non-recurring $2.0 million litigation charge in connection with a judgment against the Bank relating to a loan on which the Bank was fully repaid. The judgment determined that the payment constituted a "preference" under the bankruptcy code. As a result of this decision, the Bank established a litigation reserve for the full $2.0 million while it is in the process for appealing the court's decision. In addition, the Bank recorded an additional provision for loan loss of $275 thousand to adequately fund the allowance for loan loss relating to increased level of non-performing loans.
Following are the Bank's restated statements of financial condition for the years ended December 31, 2013 and 2012 and the statements of operations for the quarter and year ended December 31, 2013 and 2012.
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 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 | |||||||||||||||||||||
Selected Financial Highlights | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
As of or for the Quarters Ended | |||||||||||||||||||||
(in thousands, except per share and percentage data) | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | ||||||||||||||||
Summary of Operations: | |||||||||||||||||||||
Interest income | $ | 1,187 | $ | 1,456 | $ | 1,436 | $ | 1,409 | $ | 1,500 | |||||||||||
Interest expense | 244 | 223 | 228 | 267 | 302 | ||||||||||||||||
Net interest income | 943 | 1,233 | 1,208 | 1,142 | 1,198 | ||||||||||||||||
Provision for loan and lease loss | 660 | 105 | 55 | 35 | 28 | ||||||||||||||||
Net interest income after provision for loan loss | 283 | 1,128 | 1,153 | 1,107 | 1,170 | ||||||||||||||||
Non-interest income | 117 | 128 | 118 | 86 | 96 | ||||||||||||||||
Non-interest expense | 3,057 | 1,041 | 1,071 | 1,031 | 1,026 | ||||||||||||||||
Income before income tax expense | (2,657 | ) | 215 | 200 | 162 | 240 | |||||||||||||||
Income tax expense | (1,085 | ) | 93 | 87 | 71 | 101 | |||||||||||||||
Net income | $ | (1,573 | ) | $ | 122 | $ | 113 | $ | 91 | $ | 139 | ||||||||||
Per Common Share(1): | |||||||||||||||||||||
Basic | $ | (0.82 | ) | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.07 | ||||||||||
Diluted | (0.82 | ) | 0.06 | 0.06 | 0.05 | 0.07 | |||||||||||||||
Book value per share | 7.44 | 8.29 | 8.29 | 8.31 | 8.23 | ||||||||||||||||
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 | -4.48 | % | 0.37 | % | 0.35 | % | 0.26 | % | 0.42 | % | |||||||||||
Return on average common equity | -39.72 | % | 3.09 | % | 2.82 | % | 2.27 | % | 3.56 | % | |||||||||||
Average equity to average assets | 11.28 | % | 11.93 | % | 12.33 | % | 11.65 | % | 11.90 | % | |||||||||||
Risk-based capital: | |||||||||||||||||||||
Total risk-based capital ratio | 13.62 | % | 15.67 | % | 16.10 | % | 16.20 | % | 15.71 | % | |||||||||||
Tier 1 risk-based capital ratio | 12.36 | % | 14.42 | % | 14.87 | % | 15.00 | % | 14.58 | % | |||||||||||
Tier 1 leverage capital ratio | 9.76 | % | 11.86 | % | 12.06 | % | 11.38 | % | 11.61 | % | |||||||||||
Financial Condition: | |||||||||||||||||||||
Total assets | $ | 144,503 | $ | 135,546 | $ | 130,877 | $ | 130,946 | $ | 138,678 | |||||||||||
Loans, net of unearned income | 94,934 | 92,978 | 91,515 | 90,736 | 92,157 | ||||||||||||||||
Deposits | 127,940 | 119,125 | 114,675 | 114,614 | 122,536 | ||||||||||||||||
Shareholder's equity | 14,193 | 15,813 | 15,810 | 15,848 | 15,712 | ||||||||||||||||
(1) Data have been restated to give effect to the 5% stock dividend declared and paid in 2013. | |||||||||||||||||||||
New Jersey Community Bank | ||||||||
Statements of Financial Condition | ||||||||
(dollars in thousands, except share data) | ||||||||
At Year End December 31, | ||||||||
2013 | 2012 | |||||||
Assets | (unaudited) | |||||||
Cash and due from banks - non-interest bearing | $ | 1,927 | $ | 1,138 | ||||
Federal funds sold and interest-bearing deposits with banks | 14,710 | 18,180 | ||||||
Total Cash and Cash Equivalents | 16,637 | 19,318 | ||||||
Due from banks - time deposits | 7,867 | 7,768 | ||||||
Investment Securities: | ||||||||
Available-for-sale | 14,644 | 11,092 | ||||||
Held-to-maturity | 3,166 | 2,905 | ||||||
Total Investment Securities | 17,810 | 13,997 | ||||||
Loans Receivable, net of unearned fees | 94,934 | 92,157 | ||||||
Less: Allowance for loan losses | (1,982 | ) | (1,207 | ) | ||||
Net Loans | 92,952 | 90,950 | ||||||
Premises and equipment, net | 2,254 | 2,420 | ||||||
Accrued interest receivable | 338 | 351 | ||||||
Bank-owned life insurance | 3,579 | 1,507 | ||||||
Deferred tax assets | 2,251 | 686 | ||||||
Other assets | 815 | 1,681 | ||||||
Total Assets | $ | 144,503 | $ | 138,678 | ||||
Liabilities and Shareholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 13,270 | $ | 10,073 | ||||
Savings, NOW and money market | 43,140 | 40,357 | ||||||
Time deposits $100M and over | 53,601 | 53,025 | ||||||
Time deposits, other | 17,929 | 19,081 | ||||||
Total Deposits | 127,940 | 122,536 | ||||||
Accrued interest payable | 5 | 8 | ||||||
Other liabilities | 2,365 | 422 | ||||||
Total Liabilities | 130,310 | 122,966 | ||||||
Shareholders' Equity | ||||||||
Common stock, $2 par value; authorized 10,000,000 shares; | ||||||||
issued and outstanding 1,908,445 and 1,648,783 shares, respectively | 3,817 | 3,635 | ||||||
Surplus | 13,772 | 13,854 | ||||||
Accumulated Deficit | (3,033 | ) | (1,786 | ) | ||||
Accumulated other comprehensive income (loss) | (363 | ) | 9 | |||||
Total Shareholders' Equity | 14,193 | 15,712 | ||||||
Total Liabilities and Shareholders' Equity | $ | 144,503 | $ | 138,678 | ||||
New Jersey Community Bank | ||||||||||||||
Statements of Operations | ||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||
Three Months Ended | Years Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Interest Income | ||||||||||||||
Loans receivable, including fees | $ | 1,072 | $ | 1,409 | $ | 5,089 | $ | 5,494 | ||||||
Investment securities | 97 | 73 | 324 | 359 | ||||||||||
Federal funds sold and interest-bearing deposits with banks | 6 | 6 | 23 | 27 | ||||||||||
Due from banks - interest bearing | 12 | 12 | 52 | 41 | ||||||||||
Total Interest Income | 1,187 | 1,500 | 5,488 | 5,921 | ||||||||||
Interest Expense | ||||||||||||||
Deposits | 244 | 302 | 961 | 1,291 | ||||||||||
Net Interest Income before Provision for Loan Loss | 943 | 1,198 | 4,527 | 4,630 | ||||||||||
Provision for Loan Loss | 660 | 28 | 855 | 117 | ||||||||||
Net Interest Income after Provision for Loan Loss | 283 | 1,170 | 3,672 | 4,513 | ||||||||||
Non-Interest Income | ||||||||||||||
Fees and service charges on deposit accounts | 69 | 55 | 273 | 253 | ||||||||||
Loan fee income | 9 | 3 | 31 | 27 | ||||||||||
Gain on sale of securities available for sale | - | 19 | 16 | 19 | ||||||||||
All other income | 38 | 19 | 128 | 50 | ||||||||||
Total Non-Interest Income | 117 | 96 | 448 | 349 | ||||||||||
Non-Interest Expense | ||||||||||||||
Salaries and employee benefits | 627 | 578 | 2,454 | 2,542 | ||||||||||
Occupancy and equipment | 205 | 189 | 760 | 765 | ||||||||||
Data processing services | 42 | 38 | 168 | 154 | ||||||||||
Professional and other fees | 46 | 102 | 295 | 294 | ||||||||||
Advertising and promotion | 6 | 3 | 27 | 15 | ||||||||||
Federal insurance assessment | 20 | 28 | 105 | 113 | ||||||||||
Other litigation cost | 2,000 | - | 2,000 | - | ||||||||||
Other operating expenses | 111 | 88 | 391 | 334 | ||||||||||
Total Non-Interest Expenses | 3,057 | 1,026 | 6,200 | 4,217 | ||||||||||
Income Before Income Tax Expense | (2,657 | ) | 240 | (2,080 | ) | 645 | ||||||||
Income tax expense | (1,085 | ) | 101 | (833 | ) | 284 | ||||||||
Net Income | $ | (1,573 | ) | $ | 139 | $ | (1,247 | ) | $ | 361 | ||||
Income per share: | ||||||||||||||
Basic and diluted | $ | (0.82 | ) | $ | 0.07 | $ | (0.65 | ) | $ | 0.19 | ||||
Weighted average number of common shares outstanding | ||||||||||||||
Basic and diluted | 1,908 | 1,908 | 1,908 | 1,908 | ||||||||||
Contacts at New Jersey Community Bank:
Robert D. O'Donnell
Chairman and CEO
rodonnell@njcbk.com
Terry H. Thompson
President and COO
tthompson@njcbk.com
Naqi A. Naqvi
Executive Vice President & CFO
nnaqvi@njcbk.com
3441 Route Nine North, Freehold, New Jersey 07728
(732) 431-2265
Fax (732) 303-1831
www.njcbk.com