New Jersey Community Bank Reports Third Quarter 2016 Results
(firmenpresse) - FREEHOLD, NJ -- (Marketwired) -- 11/17/16 -- New Jersey Community Bank (OTCQB: NJCB) (the "Bank") reported a net loss of $398 thousand, or ($0.21) per common share for the three months ended September 30, 2016, compared to a net loss of $481 thousand, or ($0.25) per common share in the third quarter of 2015. For the nine months ended September 30, 2016, the Bank reported net loss of $1.3 million, or ($0.66) per common share compared with a net loss of $568 thousand, or ($0.30) per common share for the same period in the prior year. The losses for first nine months and the third quarter 2016 were negatively impacted by higher level of consulting expense associated with complying with the regulatory Consent Orders as well as legal expenses.
During the third quarter, the FDIC and the NJ Department of Banking lifted both the Consent Orders dated March 24, 2014 and July 30, 2015, for satisfactorily complying with the requirements of the Orders. Mr. William H. Placke, Chairman, President and CEO commented, "We are very pleased that the Consent Orders have been lifted, as it suggests the progress we have made in strengthening the core elements of our bank. It was a result of untiring efforts on the part of our Board of Directors, management and the staff of the Bank. We can now focus our attention on building our customer base of the Bank and returning it to profitability while continuing to maintain safe and sound banking practices."
Management''s focus remains on maintaining sound underwriting standards, monitoring certain concentrations of commercial real estate loans, continuing to improve asset quality and credit metrics while attempting to grow other segments of the loan portfolio. Simultaneously, management continuous to seek out additional efficiencies within its operations to return the Bank to profitability.
At September 30, 2016, total assets were $101.9 million, a decrease of $9.2 million from December 31, 2015. Total cash and cash equivalents and due from banks-time deposits decreased $1.9 million and $1.1 million, respectively, compared to year end 2015, largely as a result of decreases in overnight federal funds sold and maturity of the time deposits. Total investment securities decreased $4.2 million from year-end 2015, resulting from the calls of certain available-for-sale investment securities. Total loans receivable decreased $1.2 million compared to year end 2015, reflecting principal payoffs exceeding new loan originations, as the Bank continues to focus on resolving existing credit issues. The resulting liquidity from the above noted decreases was used to meet the outflow of deposits.
Total deposits decreased $8.0 million compared to the levels at year end 2015. Of the total decrease, non-interest bearing deposits decreased $4.4 million and savings, NOW and money market deposits combined decreased $11.5 million, partially offset by $7.9 million increase in total time deposits. The decline in total deposits resulted from the general outflow of deposits, in part, due to the closure of one of the bank''s branches in Cranbury, NJ.
Shareholders'' equity totaled $10.6 million at September 30, 2016, decreasing $1.2 million from year-end 2015, due to the reported net loss. The Bank''s capital ratios remain strong and exceed the regulatory requirements to be deemed a well-capitalized financial institution.
For the quarter ended September 30, 2016, net interest income totaled $749 thousand, decreasing $152 thousand over the same period in the prior year. The decrease in net interest income was largely a result of declining average loans receivables which impacted the interest income on loans. The net interest margin decreased 5 basis points to 3.05% for the quarter ended September 30, 2016, over the comparable quarter in 2015. Average yield on earning assets was 3.80% and average rate on interest-bearing deposits was 0.93%, a moderate increase in margin over the comparable quarter in the prior year.
The Bank did not record any provision for loan losses during the third quarter 2016, primarily due to declining balances in the loan portfolio coupled with a slight improvement in asset quality. Comparatively, in the third quarter of 2015, the Bank recorded $695 thousand in provision of loan losses as a result of a loan write-off coupled with additional reserves required for certain then existing problem credits. The allowance for loan losses at period-end was $1.6 million, or 2.25% of total loans. Asset quality continues to be monitored and management estimates the current level of the allowance for loan losses to be adequate.
Non-interest income totaled $60 thousand for the quarter ended September 30, 2016, a decrease of $28 thousand when compared with the same quarter in the prior year. The decrease in non-interest income was the direct result of a $24 thousand decline in fees and service charges on deposit accounts during the third quarter 2016.
Non-interest expense totaled $1.2 million for the quarter ended September 30, 2016, an increase of $110 thousand from the year-ago same quarter. The increase in non-interest expense was largely related to the consulting expenses associated with satisfying the requirements of the FDIC Consent Orders. Salaries and employee benefits decreased $34 thousand due to a reduction in staff. Professional and other fees, which includes consulting costs, increased $203 thousand, due to consulting services utilized by the Bank in connection with complying with the regulatory Consent Orders and legal expenses during the first nine months of 2016. The FDIC insurance assessment decreased $41 thousand year over year as result of a reduction in the premium for such insurance. All other expenses combined decreased moderately compared with the third quarter of 2015.
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
President and CEO
Naqi A. Naqvi
Executive Vice President & CFO
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 17.11.2016 - 11:48 Uhr
Sprache: Deutsch
News-ID 1470859
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
FREEHOLD, NJ
Phone:
Kategorie:
Commercial & Investment Banking
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 172 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"New Jersey Community Bank Reports Third Quarter 2016 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
New Jersey Community Bank (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
