New Jersey Community Bank Reports First Quarter 2015 Results
FREEHOLD, NJ - 
(NewMediaWire) - April 29, 2015 - New Jersey Community Bank (
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 largely offset by decreases in interest expense on deposits, provision for loan loss, and non-interest expenses. Net interest margin improved 10 basis points year over year primarily due to a moderate increase in yields on earning assets.
Balance Sheet Summary
At March 31, 2015, total assets were $129.3 million, an increase of $7.3 million from December 31, 2014 primarily as a result of increase in total deposits. Total cash and cash equivalents increased $5.8 million while due from banks time deposits and investment securities increased $2.7 million and $1.9 million, respectively, compared to year end 2014. Total loans decreased $3.1 million compared to year end 2014 resulting from loan pay-offs.
Total deposits increased $7.2 million compared to the levels at year end 2014. Savings, NOW and money market accounts increased $5.3 million and non-interest bearing deposits increased $2.2 million, slightly offset by a $300 thousand decrease in total time deposits.
Shareholders' equity totaled $14.5 million at March 31, 2015, increasing moderately from year-end 2014. The Bank's capital ratios continue to remain strong, with a leverage ratio of 10.48%, a tier 1 risk based capital ratio of 13.26% and a total risk based capital ratio of 14.51%. These ratios exceed those needed to be deemed a well-capitalized financial institution.
Results of Operations
For the quarter ended March 31, 2015, net interest income totaled $1.0 million, decreasing $108 thousand over the same period in the prior year. At March 31, 2015, net interest margin was 3.50%, increasing 10 basis points compared to the same period a year ago. Yield on average earning assets increased 6 basis points to 4.22% while the cost of interest-bearing deposits declined 5 basis points to 0.85%, compared to the same period in the prior year primarily due to low interest rates.
The provision for loan loss was $15 thousand for the first quarter 2015, a decrease of $45 thousand compared to a year-ago quarter. The allowance for loan loss at period-end was $1.6 million, or 1.91% of total loans. The asset quality continued to be monitored and management will take action as necessary to effect the provision for loan loss, however, the current level of the allowance for loan loss is considered to be adequate.
Non-interest income decreased $51 thousand to $80 thousand for the quarter ended March 31, 2015, compared with $131 thousand for the same quarter in the prior year. Majority of such decrease is directly related to decreases in fees and service charges on deposit accounts and loan fee income.
Non-interest expense totaled $1.1 million for the quarter ended March 31, 2015, a decrease of $41 thousand, from a year-ago quarter. Of the total decrease in non-interest expense, salaries and employee benefits decreased $73 thousand as a result of vacancies in staffing partially offset by increase of $34 thousand in other operating expenses primarily due to expenses recorded in connection with other real estate owned. 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 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.
