FREEHOLD, N.J., March 3, 2011 (GLOBE NEWSWIRE) -- New Jersey Community Bank (OTCBB:NJCB) (the "Bank") reported revised and updated results for the quarter and year ended December 31, 2010. The Bank had originally reported on January 19, 2011, net income of $147 thousand, or $0.09 per common share for the three months and year ended December 31, 2010. As revised, the Bank is now reporting net income of $1.3 million, or $0.81 per common share for the quarter and year ended December 31, 2010.
The change in the Bank's reported results is directly related to recording, as of December 31, 2010, a one-time non-recurring income tax benefit resulting from the reversal of a $1.2 million valuation allowance on the Bank's deferred income tax assets. As the Bank became profitable during the second quarter of 2010, remained profitable for the remainder of 2010, and projects profitable operations going forward, management determined that maintaining a valuation allowance for deferred tax assets was no longer necessary or appropriate. The largest component of the Bank's deferred tax assets at December 31, 2010, was federal and state net operating losses, which are now expected to be fully realizable.
Following are the Bank's restated statements of financial condition for the years ended December 31, 2010 and 2009 and the statements of operations for the quarter and year ended December 31, 2010 and 2009. As a result of the reversal of the valuation allowance, the Bank's reported total assets also increased by $1.2 million, the amount of the deferred tax assets.
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 county 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 www.njcbk.com or call 732-431-2265.
The New Jersey Community Bank logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7748
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) | 12/31/2010 | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 |
| Summary of Operations: | |||||
| Interest income | $ 1,383 | $ 1,294 | $ 1,177 | $ 1,022 | $ 941 |
| Interest expense | 355 | 388 | 364 | 349 | 327 |
| Net interest income | 1,027 | 906 | 813 | 673 | 614 |
| Provision for loan loss | 141 | 115 | 103 | 113 | 382 |
| Net interest income after provision for loan loss | 886 | 791 | 710 | 560 | 232 |
| Non-interest income | 124 | 101 | 96 | 91 | 53 |
| Non-interest expense | 864 | 790 | 791 | 763 | 702 |
| Income before income tax (benefit) expense | 147 | 101 | 15 | (112) | (417) |
| Income tax (benefit) expense | (1,190) | -- | 5 | -- | -- |
| Net income (loss) | $ 1,337 | $ 101 | $ 10 | $ (112) | $ (417) |
| Earnings (loss) per share: | |||||
| Basic | $ 0.81 | $ 0.06 | $ 0.01 | $ (0.07) | $ (0.25) |
| Diluted | 0.81 | 0.06 | 0.01 | (0.07) | (0.25) |
| Book value per share | 8.83 | 8.05 | 7.95 | 7.90 | 7.96 |
| Average shares outstanding | 1,649 | 1,649 | 1,649 | 1,649 | 1,649 |
| Average diluted shares outstanding | 1,649 | 1,649 | 1,649 | 1,649 | 1,649 |
| Selected Financial Ratios: | |||||
| Return on average assets | 4.89% | 0.37% | 0.04% | -0.49% | -2.00% |
| Return on average common equity | 39.99% | 3.07% | 0.34% | -3.41% | -10.64% |
| Average equity to average assets | 12.23% | 11.99% | 13.00% | 14.40% | 18.79% |
| Risk-based capital: | |||||
| Total risk-based capital ratio | 15.65% | 16.14% | 17.04% | 18.24% | 20.76% |
| Tier 1 risk-based capital ratio | 14.61% | 15.10% | 15.97% | 17.22% | 19.76% |
| Tier 1 leverage capital ratio | 12.69% | 12.02% | 13.04% | 14.32% | 15.71% |
| Financial Condition: | |||||
| Total assets | $ 112,565 | $ 112,173 | $ 105,244 | $ 94,210 | $ 88,209 |
| Loans, net of unearned income | 84,693 | 78,600 | 73,534 | 68,421 | 58,393 |
| Deposits | 97,855 | 98,730 | 91,938 | 81,085 | 75,014 |
| Shareholder's equity | 14,554 | 13,267 | 13,114 | 13,034 | 13,127 |
| New Jersey Community Bank | ||
| Statements of Financial Condition | ||
| (dollars in thousands) | ||
| December 31, | ||
| 2010 | 2009 | |
| Assets | (unaudited) | |
| Cash and due from banks - non-interest bearing | $ 1,341 | $ 840 |
| Federal funds sold | 5,865 | 17,109 |
| Total Cash and Cash Equivalents | 7,206 | 17,949 |
| Due from banks - interest bearing | 4,659 | 1,524 |
| Investment Securities: | ||
| Available-for-sale | 11,381 | 7,494 |
| Held-to-maturity | 1,220 | 256 |
| Total Investment Securities | 12,601 | 7,750 |
| Loans Receivable, net of unearned income | 84,693 | 58,392 |
| Less: Allowance for loan losses | (975) | (664) |
| Net Loans | 83,718 | 57,728 |
| Premises and equipment, net | 2,534 | 2,652 |
| Accrued interest receivable | 304 | 206 |
| Deferred tax assets | 1,190 | -- |
| Other assets | 353 | 400 |
| Total Assets | $ 112,565 | $ 88,209 |
| Liabilities and Shareholders' Equity | ||
| Liabilities | ||
| Deposits: | ||
| Non-interest bearing | $ 5,709 | $ 4,382 |
| Savings, NOW and money market | 29,740 | 11,789 |
| Time deposits under $100M | 21,296 | 22,816 |
| Time deposits $100M and over | 41,110 | 36,027 |
| Total Deposits | 97,855 | 75,014 |
| Accrued interest payable | 12 | 3 |
| Other liabilities | 144 | 65 |
| Total Liabilities | 98,011 | 75,082 |
| Shareholders' Equity | ||
| Common stock, $2 par value; authorized 10,000,000 shares; issued and outstanding 1,648,783 shares | 3,298 | 3,298 |
| Surplus | 13,519 | 13,348 |
| Accumulated Deficit | (2,201) | (3,538) |
| Accumulated other comprehensive income | (62) | 19 |
| Total Shareholders' Equity | 14,554 | 13,127 |
| Total Liabilities and Shareholders' Equity | $ 112,565 | $ 88,209 |
| New Jersey Community Bank | ||||
| Statements of Operations | ||||
| (in thousands, except per share data) | ||||
| Three Months Ended | For the Year Ended | |||
| December 31, | December 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Interest Income | (unaudited) | (unaudited) | ||
| Loans receivable, including fees | $ 1,291 | $ 887 | $ 4,574 | $ 2,577 |
| Investment securities | 77 | 39 | 241 | 75 |
| Federal funds sold | 3 | 7 | 24 | 26 |
| Due from banks - interest bearing | 12 | 8 | 37 | 26 |
| Total Interest Income | 1,383 | 941 | 4,876 | 2,704 |
| Interest Expense | ||||
| Deposits | 355 | 327 | 1,456 | 1,047 |
| Total Interest Expense | 355 | 327 | 1,456 | 1,047 |
| Net Interest Income before Provision for Loan Loss | 1,028 | 614 | 3,420 | 1,657 |
| Provision for Loan Loss | 141 | 382 | 472 | 719 |
| Net Interest Income after Provision for Loan Loss | 887 | 232 | 2,948 | 938 |
| Non-Interest Income | ||||
| Fees and service charges on deposit accounts | 104 | 43 | 344 | 119 |
| Loan fee income | 4 | 3 | 20 | 18 |
| All other income | 16 | 7 | 48 | 25 |
| Total Non-Interest Income | 124 | 53 | 412 | 162 |
| Non-Interest Expense | ||||
| Salaries and employee benefits | 456 | 397 | 1,831 | 1,414 |
| Occupancy and equipment | 211 | 144 | 643 | 492 |
| Data processing services | 34 | 23 | 120 | 85 |
| Professional and other fees | 54 | 49 | 173 | 162 |
| Advertising and promotion | 4 | 5 | 18 | 23 |
| Federal insurance assessment | 41 | 25 | 154 | 100 |
| Other operating expenses | 64 | 59 | 269 | 212 |
| Total Non-Interest Expenses | 864 | 702 | 3,208 | 2,488 |
| Income before income tax (benefit) expense | 147 | (417) | 152 | (1,389) |
| Income tax (benefit) expense | (1,190) | -- | (1,185) | 5 |
| Net Income (Loss) | $ 1,337 | $ (417) | $ 1,337 | $ (1,394) |
| Income (loss) per share: | ||||
| Basic | $ 0.81 | $ (0.25) | $ 0.81 | $ (0.85) |
| Diluted | 0.81 | (0.25) | 0.81 | (0.85) |
| Weighted average number of common shares outstanding | 1,649 | 1,649 | 1,649 | 1,649 |
| Weighted average number of diluted common shares outstanding | 1,649 | 1,649 | 1,649 | 1,649 |