New Jersey Community Bank Reports First Quarter 2016 Results
(firmenpresse) - FREEHOLD, NJ -- (Marketwired) -- 05/09/16 -- New Jersey Community Bank (OTCQB: NJCB) (the "Bank") reported a net loss of $283 thousand, or ($0.15) per share for the three months ended March 31, 2016, compared with a net loss of $46 thousand, or ($0.02) per share for the same period in the prior year.
The earnings for the quarter were negatively impacted largely due to a decline in interest income on loans as a result of a decrease in total loans coupled with a decline in fee income on deposit accounts. The decline in interest income was partially offset by a decrease in interest expense on deposits. Net interest margin decreased 16 basis points year over year primarily due to a moderate decrease in the interest yield on loans.
At March 31, 2016, total assets were $102.8 million, a decrease of $8.2 million from December 31, 2015 primarily as a result of decreases in total loans and investment securities. Total cash and cash equivalents increased $1.1 million while due from banks-time deposits decreased $0.7 million. Investment securities available-for-sale decreased $4.5 million as a result of calls on certain government agency securities. Total loans decreased $3.9 million compared to year end 2015 resulting from loan pay-offs.
Total deposits decreased $7.9 million compared to the levels at year end 2015. Savings, NOW and money market accounts decreased $6.1 million and non-interest bearing deposits decreased $2.4 million, slightly offset by $0.6 million increase in total time deposits.
Shareholders'' equity totaled $11.5 million at March 31, 2016, decreasing moderately from year-end 2015. The Bank''s capital ratios continue to remain strong, with a leverage ratio of 10.84%, common equity tier 1 risk based capital ratio of 14.65% and a total risk based capital ratio of 15.91%. These ratios exceed those needed to be deemed a well-capitalized financial institution.
For the quarter ended March 31, 2016, net interest income totaled $0.8 million, decreasing $181 thousand over the same period in the prior year. At March 31, 2016, the net interest margin was 3.34%, decreasing 16 basis points compared to the same period a year ago. The yield on average earning assets decreased 20 basis points to 4.02% while the cost of interest-bearing deposits declined 2 basis points to 0.83%, compared to the same period in the prior year, primarily due to low interest rates.
The Bank did not record any provision for loan losses during the first quarter 2016. The allowance for loan losses at period-end was $1.6 million, or 2.28% of total loans. The asset quality continued to be monitored and management will take action as necessary to affect the provision for loan loss, however, the current level of the allowance for loan loss is considered to be adequate.
Non-interest income decreased $17 thousand to $63 thousand for the quarter ended March 31, 2016, compared with $80 thousand for the same quarter in the prior year. The majority of such decrease is directly related to decreases in fees and service charges on deposit accounts.
Non-interest expense totaled $1.2 million for the quarter ended March 31, 2016, increasing slightly from a year-ago quarter. Of the total increase in non-interest expense, salaries and employee benefits increased $27 thousand as a result of increases in health cost and annual salary increases. Professional and other fees increased $50 thousand largely due to consulting services utilized by the Bank to comply with the Consent Orders among the Bank and the regulators. These increases were offset by decreases in occupancy and equipment expense and other operating expenses. 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 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:
William H. Placke
Chairman, President and CEO
Naqi A. Naqvi
Executive Vice President & CFO
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Datum: 09.05.2016 - 14:00 Uhr
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News-ID 1433650
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