FREEHOLD, NJ -- (Marketwire) -- 01/23/13 -- New Jersey Community Bank (OTCBB: NJCB) (the "Bank") reported net income of $140 thousand, or $0.08 per common share for the three months ended December 31, 2012, compared to the fourth quarter 2011 earnings of $138 thousand, or $0.08 per common share. For the year 2012, the Bank reported net income of $361 thousand, or $0.20 per common share compared with a net income of $552 thousand, or $0.30 per common share for the year 2011. The earnings for the year 2012 were negatively impacted by non-interest expense recorded in connection with a settlement with a former executive in the amount of $130 thousand, net of tax effect. Excluding this item, the Bank would have reported earnings of $491 thousand, or $0.27 per common share.
Robert D. O'Donnell, Chairman and CEO commented that, "We are pleased with our fourth quarter and full year 2012 results of operation despite a difficult economic environment. The New Jersey economy, job market and real estate market remain weak according to the latest reports and survey data. We continue to combat the low level of interest rates, which squeezes our margin, and intense competition for new loans. Though our new loan demand has softened somewhat, we continue to remain cautiously optimistic during this uncertain economic environment."
All common share data presented in this press release, including earnings per common share data, were adjusted to reflect a five percent stock dividend issued on May 31, 2012.
Balance Sheet Summary
At December 31, 2012, total assets were $138.7 million, an increase $6.7 million compared to year end 2011. Total cash and cash equivalents totaled $19.3 million, an increase of $4.9 million from year end 2011. Due from banks time deposits increased $1.1 million to $7.8 million from a year ago. Total investment securities decreased $6.2 million to $14.0 million at December 31, 2012 compared with year end 2011 while total loans receivable increased $4.3 million from December 31, 2011. The cash flow resulting from the decrease in investment securities was largely offset by the increases in total loans and due from banks time deposits.
Deposits totaled $122.5 million at December 31, 2012, an increase of $6.1 million from year end 2011. Of the total increase, non-interest bearing, savings, NOW and money market and time deposits over $100M increased $4.0 million, $3.8 million and $2.5 million, respectively, offset by a $4.3 million decrease in all other time deposits. A majority of the increase in total deposits was used to fund the loan growth. Shareholders' equity totaled $15.7 million at December 31, 2012. The Bank's capital ratios remain strong and exceed the regulatory requirements to be deemed a well capitalized financial institution.
Results of Operations
Fourth Quarter 2012
For the quarter ended December 31, 2012, net interest income totaled $1.2 million, an increase of $115 thousand over the same period in the prior year. The increase in net interest income was primarily due to a $37 thousand increase in total interest income coupled with $78 thousand reduction in total interest expense resulting from declining interest rates on deposits despite an increase in average interest-bearing deposits. Net interest margin improved by 33 basis points to 3.75% for the quarter ended December 31, 2012, over the comparable quarter in 2011. Average yield on earning assets was 4.69%, increasing 7 basis points over the prior year and the average rate on interest paying liabilities was 1.11%, dropping 28 basis points over the comparable quarter in the prior year.
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