New Jersey Community Bank Reports Third Quarter 2017 Results
(firmenpresse) - FREEHOLD, NJ -- (Marketwired) -- 11/01/17 -- New Jersey Community Bank (OTC PINK: NJCB) (the "Bank") reported a net loss of $375 thousand, or ($0.20) per share for the three months ended September 30, 2017, compared with a net loss of $398 thousand, or ($0.21) per share for the same period in the prior year. For the first nine months of 2017, the Bank reported net loss of $887 thousand, or ($0.46) per common share compared with a net loss of $1.3 million, or ($0.66) per common share for the same period in the prior year. The losses for the first nine months and the third quarter 2017 improved when compared to the prior year largely due to a substantial decline in operating expenses.
The losses for the third quarter 2017 were, in part, further impacted 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 yields despite a marginal decline in average earning assets outstanding year over year. Net interest margin for the quarter increased 10 basis points year over year primarily due to the improved net interest income.
At September 30, 2017, total assets were $103.6 million, a decrease of $1.6 million from December 31, 2016. Total cash and cash equivalents decreased $4.6 million while due from banks-time deposits decreased $2.9 million, and total investment securities decreased $755 thousand. Almost all of these decreases were offset by an increase in loans. Loans totaled $83.4 million, increasing $6.6 million compared to year end 2016. The growth in loans was funded utilizing the available liquidity in cash and cash equivalents and due from banks-time deposits.
Total deposits decreased $722 thousand compared to the levels at year end 2016. Non-interest bearing deposits decreased $4.0 million; Savings, NOW and money market accounts decreased $2.8 million; these were substantially offset by a $6.1 million increase in total time deposits. Time deposits increased as a result of deposit promotion on longer term time deposits.
Shareholders'' equity totaled $9.3 million at September 30, 2017, decreasing primarily due to net losses reported during the nine months of 2017 when compared to year-end 2016. At September 30, 2017, the Bank reported a leverage ratio of 8.99%; both common equity tier 1 risk based capital and tier 1 risk-based capital ratio of 10.85%; and a total risk based capital ratio of 12.11%. These ratios exceed those needed to be deemed a well-capitalized financial institution.
For the quarter ended September 30, 2017, net interest income totaled $773 thousand, increasing $24 thousand over the same period in the prior year. At September 30, 2017, the net interest margin was 3.15%, increasing 10 basis points compared to the same period a year ago. The yield on average earning assets increased 30 basis points to 4.10% while the cost of interest-bearing deposits increased 18 basis points to 1.11%, 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 third quarter 2017 and 2016. The allowance for loan losses at period-end was $1.5 million, or 1.80% of total loans. Management continues 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 totaled $56 thousand for the quarter ended September 30, 2017, compared with $60 thousand for the same quarter in the prior year, a moderate decrease compared to last year.
Non-interest expense totaled $1.2 million for the quarter ended September 30, 2017, almost unchanged from a year-ago quarter. Of the total non-interest expenses, salaries and employee benefits is the largest component, increasing $41 thousand from a year-ago quarter primarily due to filling certain open positions. Occupancy and equipment expense declined $25 thousand as a direct result of residual expenses associated with the closure of the Cranbury branch facilities last year. Professional and other fees declined $41 thousand while the FDIC insurance assessment declined $5 thousand as a result of lifting of the Consent Orders. The decline in professional and other fees resulted from reduced consulting and recruiting fees. 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 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: 01.11.2017 - 16:36 Uhr
Sprache: Deutsch
News-ID 1526897
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