COMMUNITY BANK OF BERGEN COUNTY, NJ REPORTS INCREASE IN SECOND QUARTER 2016 NET INCOME TO $0.25 PER DILUTED SHARE

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1 COMMUNITY BANK OF BERGEN COUNTY, NJ REPORTS INCREASE IN SECOND QUARTER 2016 NET INCOME TO $0.25 PER DILUTED SHARE MAYWOOD, N.J., July 21, 2016 Community Bank of Bergen County, NJ (OTCPink: CMTB) reported net income for the second quarter of 2016 of $474,000, or $0.25 per diluted share, an increase of $26,000 over net income of $448,000, or $0.23 per diluted share, adjusted for the stock dividend issued in April 2016, for the second quarter of Net interest income for the second quarter of 2016 increased by $28,000, and total interest income increased $20,000 over the second quarter of last year. Average loan balances this quarter were $3.5 million higher than in the second quarter of 2015 ($233,579,000 for the second quarter 2016 vs. $230,047,000 for the second quarter 2015) while average yields were slightly lower. Mitigating the Bank s income on loans was an $86,000 decrease in generated fee income on new originations. However, interest expense decreased by $8,000 this quarter in comparison to the second quarter of While the average balances of interest paying deposits increased this quarter ($235,022,000 for the second quarter of 2016 vs. $214,455,000 for the second quarter of 2015), the cost of funds was significantly less (0.81 percent in 2016 vs percent in 2015). Additionally, average non-interest paying deposits grew from an average of $54,176,000 for the second quarter of 2015 to an average of $59,715,000. Offsetting this savings were outstanding borrowed funds that created an additional $5,000 interest cost quarter-to-quarter. The Bank made no provision for loan losses in the second quarter of 2016, which was a $25,000 decrease in the provision for loan losses over the comparable prior year period. Non-interest income for the second quarter of 2016 was essentially flat when compared to the second quarter of 2015, as lower deposit and other fee income in the 2016 quarter were substantially offset due to no recorded losses on the disposition of OREO properties this quarter compared to losses of $13,000 in Increases of $37,000 in salaries and benefits were substantially offset by savings seen in other expense categories. The most significant reductions can be found in occupancy expenses (savings of $30,000), utility expenses (down by $5,800) and building maintenance (down by $11,600) in comparison to the second quarter of The Bank s net income for the six months ended June 30, 2016 was $875,000, an increase from net income of $832,000 for the six months ended June 20, Total interest income for the six months ended June 30, 2016 was up

2 by $175,000 due to the collection of $169,000 in non-accrual interest income which is attributed to significant loan assets being made current and accruing or being fully paid off. Interest expense also showed a savings of $21,000 despite average interest bearing deposits increasing approximately $18,800,000 for the first half of 2016 over the first half of 2015 ($233,658,000 average for 2016 vs. $214,836,000 for 2015). The average cost of these deposits was 0.81 percent for the six months ending June 30, 2016 as compared to 0.92 percent for the same period in This year the Bank disposed of two OREO properties (generating losses of $49,000), but it acquired three new OREO properties valued at $1,083,000. While the Bank s outstanding OREO balance currently shows an increase from year end, management feels the value of these new properties is sufficient to minimize future losses upon their sale. In addition, the Bank is continuing to mitigate its high level of problem loans with a diligent work out process. During the first half of 2016, there was a decrease in total delinquent loans from $9.4 million at year end 2015 to $7.0 million at June 30, At June 30, 2016, the ratio of non-accruing loans to total loans was 1.87 percent compared to 3.30 percent reported at December 31, We are pleased with our quarterly results, and once again, we exceeded our target goals in this extremely competitive local banking market, said Peter A. Michelotti, the Bank s President & CEO. While average loan balances were higher for the second quarter of 2016, a few large loans were paid off near the end of June resulting in lower quarterending loan balances. The Bank s total assets at June 30, 2016 increased by $2.6 million from December 31, 2015, mainly due to increases in deposits of $1.2 million and additional cash from net loan pay-offs and disposals of non-performing assets. During the second quarter of 2016, we made great strides towards resolving more of our legacy problem assets, and we experienced strong improvement in all of our capital ratios and asset quality metrics, said Michelotti. Additionally, the large decrease in our cost of funds helped improve our net interest margin. The Bank s capital closed this quarter at $29,358,000, up from the $27,949,000, reported at December 31, 2015, with book value per diluted share at $15.31 as compared to $14.57, adjusted for the stock dividend issued in April 2016, at December 31, The Bank remains well capitalized as defined under all regulatory guidance.

3 COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDARIES SUMMARY FINANCIAL HIGHLIGHTS ( in Thousands, Except Percentages and Per Share Data) Financial Highlights: Symbol CMTB 52 week range Financial Data - Year to date At June 30, At December 31, Balance Sheet Highlights Total securities $66,576 $66,078 Total loans $228,997 $231,233 Allowance for loan losses $3,090 $3,413 Total assets $328,861 $326,259 Total deposits $291,759 $290,803 Total liabilities $299,503 $298,310 Total shareholders' equity $29,358 $27,949 Financial data -Year to date For the six months ended June 30, 2016 For the six months ended June 30, 2015 Net Interest income $5,482 $5,286 Provision for loan losses $100 $50 Loss on sale of OREO ($49) ($36) Total other income $317 $348 Total other expenses $4,422 $4,372 Income before provision for income taxes $1,228 $1,176 Provision for income taxes $353 $344 Net income after tax $875 $832 Other Earnings Information Earnings per share* $0.46 $0.43 Return on Assets 0.53% 0.51% Share Information At June 30, At December 31, Market price per share $11.27 $11.00 Book Value per diluted common share* $15.31 $14.57 Outstanding Shares -period ending 1,918,144 1,743,618 Capital ratios Total equity to total assets 8.93% 8.57% Tier 1 leverage ratio 8.32% 7.85% Common equity tier 1 capital ratio 13.87% 12.88% Tier 1 capital ratio 13.87% 12.88% Total capital ratio 15.13% 14.15% Asset Quality and Ratios $10.55-$12.60 Other Real Estate Owned (OREO) $1,626 $1,134 Non-acccrual loans $4,206 $7,630 Troubled debt restructured loans ("TDRs") $2,646 $2,716 Non-accruing loans/total loans 1.87% 3.30% Allowance for loan loss/total loans 1.35% 1.47% Allowance for loan loss/non-accrual loans 73% 45% * Earnings per share and book value per share are adjusted for the stock dividend issued in April 2016

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... 4,177 $ $ 2,825 Interest-bearing balances... 12,118 9,451 Securities Available-for-sale securities... 66,576 66,078 Loans and lease financing receivables: Loans and leases, net of unearned income... $ 228,997 $ 231,233 LESS: Allowance for loan and lease losses... 3,090 3,413 Loans and leases, net of allowance , ,820 Premises and fixed assets (including capitalized leases)... 5,855 5,942 Other Real Estate Owned... 1,626 1,134 Other assets... 12,602 13,009 Total Assets... $ 328,861 $ 326,259 Liabilities Deposits: Interest-bearing... $ 230,656 $ 236,395 Non-interest-bearing... 61,103 54,408 Total deposits , ,803 Borrowed funds... 6,000 6,000 Other liabilities... 1,744 1,507 Total Liabilities , ,310 Equity Capital Common Stock: par value $5.00; 5,000,000 shares authorized; 1,918,144 and 1,743,618 shares issued and outstanding, respectively 9,591 8,718 Surplus... 5,239 4,170 Retained earnings... 13,752 14,819 Accumulated other comprehensive income Total Equity Capital... 29,358 27,949 Total Liabilities, and Equity Capital... $ 328,861 $ 326,259 Capital Ratios: June 30, 2016 December 31, 2015 Dollars in Thousands Capital to Asset ratio 8.93% 8.57% Tier 1 leverage ratio 8.32% 7.85% Common equity tier 1 capital ratio 13.87% 12.88% Tier 1 risk-based capital ratio 13.87% 12.88% Total risk-based capital ratio 15.13% 14.15%

5 COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Quarter Ended Six Months Ended June 30, June 30, Income Statement Interest and fee income: Dollars in Thousands Dollars in Thousands Interest and fee income on loans... $ 2,933 $ 2,994 $ 5,892 $ 5,871 Interest income on balances due from depository institution Interest and dividend income on securities Other interest income Total Interest and fee income... 3,224 3,204 6,456 6,281 Interest Expense: Interest on deposits Interest on borrowed funds Total Interest expense Net Interest Income... 2,739 2,711 5,482 5,286 Provision for Loan Losses Non-Interest Income: Service charges on deposit accounts Net loss on sale of real estate owned... 0 (13) (49) (36) Income on bank owned life insurance Other non-interest income Total non-interest income Realized gains on securities Non-interest expenses Salaries and employee benefits... 1,151 1,114 2,315 2,202 Expenses on premises and fixed assets Other non-interest expenses ,690 1,670 Total non-interest expenses... 2,226 2,223 4,422 4,372 Income before Income taxes: ,228 1,176 Income taxes Net Income... $ 474 $ 448 $ 875 $ 832 Earnings per diluted share*... $ 0.25 $ 0.23 $ 0.46 $ 0.43 * Earnings per share are adjusted for the stock dividend issued in April 2016

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 2015 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 forwardlooking 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. The words may, could, should, would, will, project, continue, believe, anticipate, expect, intend, plan, and similar expressions are intended to identify forwardlooking statements. All such statements are made in good faith by the Bank pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy, both nationally and locally, 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 forwardlooking 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) investorrelations@cbbcnj.com ###