SOURCE: New Jersey Community Bank

New Jersey Community Bank Reports Revised Fourth Quarter and Full Year Results for 2013

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