1 COMMUNITY BANK OF BERGEN COUNTY, NJ REPORTS THIRD QUARTER 2015 NET INCOME OF $0.28 PER SHARE MAYWOOD, N.J., October 22, 2015 Community Bank of Bergen County, NJ (OTCPink: CMTB) reported net income for the third quarter of 2015 of $491,000, or $0.28 per diluted share, consistent with the net income of $499,000 or $0.28 per diluted share for the third quarter of Interest income for the third quarter of this year showed an increase of $103,000 over the same period last year and is largely a result of a rise in loans ($235,756,000 at September 30, 2015 as compared to $216,359,000 at September 30, 2014, a $19,397,000 increase), primarily in the 1-4 family residential category, mitigated by lower market rates on these new loans. The provision for loan losses also decreased by $125,000, from $200,000, for the quarter ended September 30, 2014 to $75,000 for the quarter ended September 30, However, interest expense rose by $46,000 this quarter in contrast to the third quarter of 2014 due to the increase in deposits of $31,516,000. The increase in deposits was attributed to $15 million in growth as a result of the Bank s new savings product introduced in September 2014, and $20 million in new demand and time deposits in the current quarter, as offset by a slight decrease in other deposit categories. Additionally, other borrowings generated an increased interest cost of $8,000 for the period over a year ago. The Bank also experienced a significant rise in salary and employee expenses this quarter, up $86,000 over the quarter ended September 30, 2014, due largely to the recent hiring of business development personnel. Other noninterest expense was up $76,000 over the same period last year, as other loan expenses increased $64,000 due exclusively to costs related to the management of the Bank s non-accruing loans. Total non-interest income decreased by $32,000 as compared to the quarter ended September 30, 2014, a result of a drop in service charges on deposit accounts. We continue to execute our growth strategy according to plan in this extremely competitive local banking environment, said Peter A. Michelotti, President & CEO of Community Bank of Bergen County, NJ. We are pleased with our deposit and loan growth and continue to focus on improving our core operating earnings. The Bank s net income for the nine months ended September 30, 2015 was $1,323,000, an increase from net income of $704,000 for the nine months ended September 30, The largest significant positive change was the reduction in losses sustained in the Bank s effort to remediate its other real estate owned (OREO) assets. Beginning in January of
2 2014, the OREO portfolio listed seven properties totaling $5.6 million. During the nine months following, three properties were sold at a total loss of $1.1 million. Currently there are four properties in the OREO portfolio with a value of $553,000. The improvement in net income caused by the $1.1 million reduction in OREO losses, a $340,000 improvement in net interest income, and a $300,000 reduction in the provision for loan losses, was partially offset by a $248,000 reduction in gains from the sale of securities (from $249,000 in 2014 to $1,000 in 2015), a $381,000 increase in non-interest expenses (led by a $338,000 increase in salary and employee expenses), and a $390,000 increase in income tax expense. The Bank s total assets increased by $31,156,000 from December 31, 2014 and by $32,441,000 from September 30, 2014, mainly due to increases in loans of $13,018,000 and $19,397,000, respectively, and the increase in deposits of $26,598,000 and $31,516,000 respectively, resulting from the Bank s sustained marketing efforts. The Bank is continuing to mitigate its high level of problem loans with a diligent work out process. The increase in total delinquent loans, while higher than last quarter at $12.1 million as compared to the $9.6 million reported at June 30, 2015, were comprised mostly of loans exactly 30 days past due. The ratio of non-accruing loans to total loans continues its drop from 3.60 percent at March 31, 2015 and 3.09 percent at June 30, 2015 to 3.04 percent at September 30, Legacy problem asset metrics improved slightly on a linked quarter basis. Expenses related to problem assets continue to be a burden, but we are nearing resolution on many problem loans, said Michelotti. The Bank s capital closed this quarter at $27,639,000, up from the $26,246,000 reported at December 31, 2014, with book value per share at $15.85 as compared to $15.05 at December 31, The Bank remains well capitalized as defined under all regulatory guidance.
3 Symbol CMTB 52 week range Balance Sheet Highlights For the Period Ended September 30, For the Year Ended December 31, Total securities $53,590 $52,021 Total loans $235,756 $222,738 Allowance for loan losses $3,480 $3,458 Total assets $329,188 $298,032 Total deposits $293,834 $267,236 Total liabilities $304,549 $271,786 Total shareholders' equity $27,639 $26,246 Financial data -Year to date COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDARIES SUMMARY FINANCIAL HIGHLIGHTS ( in Thousands, Except Percentages and Per Share Data) Financial Highlights: Financial Data - Year to date For the nine months ended September 30, 2015 For the nine months ended September 30, 2014 Net Interest income $8,041 $7,701 Provision for loan losses $125 $425 Loss on sale of OREO ($36) ($1,111) Total other income $514 $591 Total other expenses $6,516 $6,135 Income before provision for income taxes $1,879 $870 Provision (benefit) for income taxes $556 $166 Net income after tax $1,323 $704 Other Earnings Information Earnings per share $0.76 $0.40 Return on Assets (annualized) 0.54% 0.31% Share Information At September 30, At December 31, Market price per share $10.75 $9.50 Book Value per common share $15.85 $15.05 Outstanding Shares -period ending 1,743,618 1,743,618 Capital ratios Total equity to total assets 8.40% 8.81% Tier 1 leverage ratio 8.01% 7.91% Common equity tier 1 capital ratio 12.54% n/a Tier 1 capital ratio 12.54% 11.84% Total capital ratio 13.81% 13.09% Asset Quality and Ratios $8.35-$12.60 Other Real Estate Owned (OREO) $553 $780 Non-acccrual loans $7,169 $6,169 Troubled debt restructured loans ("TDRs") $2,726 $2,769 Non-accruing loans/total loans 3.04% 2.77% Allowance for loan loss/total loans 1.47% 1.55% Allowance for loan loss/non-accrual loans 49% 56%
4 COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION () Assets Dollars in Thousands Cash and balances due from depository institutions: Non-interest-bearing balances and currency and coin... 3,888 $ $ 4,026 Interest-bearing balances... 19,905 2,518 Securities Held-to-maturity securities Available-for-sale securities... 53,590 52,021 Loans and lease financing receivables: Loans and leases, net of unearned income... $ 235,756 $ 222,738 LESS: Allowance for loan and lease losses... 3,480 3,458 Loans and leases, net of allowance , ,280 Premises and fixed assets (including capitalized leases)... 5,960 6,127 Other Real Estate Owned Other assets... 13,016 13,280 Total Assets... $ 329,188 $ 298,032 Liabilities Deposits: Interest-bearing... $ 238,447 $ 215,118 Non-interest-bearing... 55,387 52,118 Total deposits , ,236 Borrowed funds... 6,000 3,000 Other liabilities... 1,715 1,550 Total Liabilities , ,786 Equity Capital Common Stock: par value $5.00; 5,000,000 and 1,800,000 shares authorized; 1,743,618 shares issued and outstanding, respectively 8,718 8,718 Surplus... 4,170 3,988 Stock Options Retained earnings... 14,311 12,988 Accumulated other comprehensive income Total Equity Capital... 27,639 26,246 Total Liabilities, and Equity Capital... $ 329,188 $ 298,032 Capital Ratios: September 30, 2015 December 31, 2014 () Dollars in Thousands Capital to Asset ratio 8.40% 8.81% Tier 1 leverage ratio 8.01% 7.91% Common equity tier 1 capital ratio 12.54% n/a Tier 1 risk-based capital ratio 12.54% 11.84% Total risk-based capital ratio 13.81% 13.09%
5 COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Quarters Ended Nine Months Ended September 30, September 30, () () Income Statement Interest and fee income: Dollars in Thousands Dollars in Thousands Interest and fee income on loans... $ 3,058 $ 2,979 $ 8,929 $ 8,561 Interest income on balances due from depository institution Interest and dividend income on securities Other interest income Total Interest and fee income... 3,274 3,171 9,555 9,145 Interest Expense: Interest on deposits ,478 1,434 Interest on borrowed funds Total Interest expense ,514 1,444 Net Interest Income... 2,755 2,698 8,041 7,701 Provision for Loan Losses Non-Interest Income: Service charges on deposit accounts Net loss on sale of real estate owned (36) (1,111) Income on bank owned life insurance Other non-interest income Total non-interest income (520) Realized gains (losses) on securities Non-interest expenses Salaries and employee benefits... 1,100 1,014 3,302 2,964 Expenses on premises and fixed assets Other non-interest expenses ,503 2,420 Total non-interest expenses... 2,144 1,993 6,516 6,135 Income before Income taxes: , Income taxes (benefit) Net Income... $ 491 $ 499 $ 1,323 $ 704 Earnings per Share. $ 0.28 $ 0.28 $ 0.76 $ 0.40
6 About Community Bank of Bergen County Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with three locations in Rochelle Park, Maywood and Fair Lawn. Dedicated to superior service, the bank offers a range of customized personal and business banking products and the convenience of 24-hour ATMs and online banking. With lending decisions made locally, and a responsive management team, Community Bank of Bergen County is committed to providing an exceptional banking experience. CBBC is a member of the Federal Deposit Insurance Corporation (FDIC) and an Equal Housing Lender. CBBC makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status. For more information, visit the Bank s web site at and to view CBBC s 2014 Audited Financial Statements, visit: Forward-Looking Statements This press release and other statements made from time to time by Community Bank of Bergen County's management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, capital, liquidity and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy of the country in general and how it is affecting the financial industry specifically; volatility in interest rates and the shape of the yield curve; increased credit risks and risks associated with the real estate market; the potential for increased non-performing loans; operating, legal, and regulatory risk; economic, political, and competitive forces affecting the Bank's lines of business; the extent and timing of actions of the Federal Reserve Board; customer acceptance of our products and services; the inability to resolve our problem loans as expected; and other risks and uncertainties. Any statements made that are not historical facts should be considered to be forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate, whether as a result of new information or the occurrence of future events, except as may be required by applicable law or regulation. Media Contacts: Peter A. Michelotti President and CEO, Community Bank of Bergen County, NJ (201) ###