COMMUNITY BANK OF BERGEN COUNTY, NJ REPORTS FOURTH QUARTER 2015 NET INCOME OF $0.29 PER SHARE AND 2015 ANNUAL EARNINGS OF $1.05 PER SHARE MAYWOOD, N.J., January 21, 2016 Community Bank of Bergen County, NJ (OTCPink: CMTB) reported net income for the fourth quarter of 2015 of $508,000, or $0.29 per diluted share, a slight increase over net income of $492,000, or $0.28 per diluted share, for the fourth quarter of 2014. For the year ended 2015, Community Bank reported annual earnings of $1,831,000, or $1.05 per diluted share, in comparison to $1,196,000, or $0.69 per diluted share, for the year ended 2014. The Bank s net interest income for the fourth quarter of 2015 increased by $87,000 over the fourth quarter of 2014. Interest income for the fourth quarter of 2015 showed an increase of $107,000 over the same period last year and is largely attributed to a rise in loans (an average of $233,931,000 in the 2015 quarter as compared to an average of $219,754,000 in the 2014 quarter, a $14,177,000 increase), primarily in the 1-4 family residential category, mitigated by lower market rates on these new loans. This increase was partially offset by an increase in interest expense of $11,000 this quarter in comparison to the fourth quarter of 2014, due to the increase in average deposits of $26,993,000. The increase in deposits was attributed to approximately $23.7 million in public funds newly acquired during the summer of 2015. Additionally, other borrowings generated an increased interest cost of $9,000 over the prior-year period. Fourth quarter 2015 results also benefitted from a $100,000 decrease in the provision for loan losses over the same quarter last year. The Bank also experienced a significant savings in other non-interest expense of $175,000 over the same period last year, due to the reimbursement of more than $67,000 in previously expensed legal fees through the Bank s collection efforts, and a $126,000 reclassification from other non-interest expense in the 2015 quarter to a net loss on the sale of other real estate owned (OREO) as a result of the sale of one property. The savings discussed above were partially offset by a decrease in total non-interest income of $194,000 this quarter over the quarter ended 2014, due to losses sustained in the sale of one other real estate property noted above. Nearly 65 percent of the loss, $126,000, was the result of the reclassification previously noted. Additionally, a continued drop in service charges on deposit accounts resulted in further decreases in non-interest income. We are very pleased with our quarterly and annual results and both exceeded our budgets. This was accomplished by executing our growth strategy according to plan in this extremely competitive local banking environment, said Peter A. Michelotti, the Bank s President & CEO. We are cautiously optimistic for the coming year and remain focused on improving our core operating earnings and maintaining organizational efficiency. 01/19/2016 SL1 1399878v1 105464.00001
The Bank s net income for the year ended 2015 was $1,831,000, an increase over last year s net income which came in at $1,196,000. In spite of the continuing stress generated by the Bank s OREO portfolio, annual earnings increased due to higher loan balances (average loans were $231,272,000 for 2015 vs. 210,112,000 for 2014) at relatively stable interest rates offset by higher deposits (an average of $277,879,000 for 2015 vs. $262,329,000 for 2014) at a relatively low interest cost, resulting in a $517,000 improvement in net interest income. The improvement in net income also is due to lower losses recorded on the disposal of OREO properties ($899,000 savings) and a $400,000 reduction in the provision for loan losses. These were partially offset by a $246,000 reduction in gains from the sale of securities (from $248,000 in 2014 to $2,000 in 2015), and a $211,000 increase in non-interest expenses (led by a $328,000 increase in salary and employee expenses), and a $539,000 increase in income tax expense. Beginning at 2014 the OREO portfolio listed four properties totaling $0.8 million. During the year following, three properties were sold at a total loss of $129,000. However, through the apparent acceleration of foreclosure proceedings, five new properties were added to the OREO portfolio, giving it a total carrying value of $1,134,000 at 2015. The Bank s total assets at 2015 increased by $29,227,000 from 2014 mainly due to increases in loans of $8,495,000, and the significant increase in deposits of $23,567,000 largely the result of the new public funds deposits acquired during the year. The Bank is continuing to mitigate its high level of problem loans with a diligent work out process. During the year, there was a decrease in total delinquent loans from $12.7 million at year end 2014 to $9.4 million at December 2015. At year end 2015, the ratio of non-accruing loans to total loans is 3.30 percent. Our primary goal for 2016 is to continue to resolve our legacy problem assets. These outstanding loans continue to burden earnings and, unfortunately, non interest expenses will remain at an elevated level until they are resolved, said Michelotti. The Bank s capital closed this quarter at $27,949,000, up from the $26,246,000 reported at 2014, with book value per share at $16.03 as compared to $15.05 at 2014. The Bank remains well capitalized as defined under all regulatory guidance. 01/19/2016 SL1 1399878v1 105464.00001
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 $8.35-$12.60 For the Period Ended For the Year Ended 2015 2014 Balance Sheet Highlights Total securities $66,078 $52,021 Total loans $231,233 $222,738 Allowance for loan losses $3,413 $3,458 Total assets $326,259 $298,032 Total deposits $290,803 $267,236 Total liabilities $298,310 $271,786 Total shareholders' equity $27,949 $26,246 Financial data -Year to date For the year ended 2015 For the the year ended 2014 Net Interest income $10,771 $10,344 Provision for loan losses $125 $525 Loss on sale of OREO ($165) ($1,064) Total other income $679 $774 Total other expenses $8,547 $8,336 Income before provision for income taxes $2,615 $1,441 Provision (benefit) for income taxes $784 $245 Net income after tax $1,831 $1,196 Other Earnings Information Earnings per share $1.05 $0.69 Return on Assets 0.56% 0.40% Share Information At At 2015 2014 Market price per share $11.00 $9.50 Book Value per common share $16.03 $15.05 Outstanding Shares -period ending 1,743,618 1,743,618 Capital ratios Total equity to total assets 8.57% 8.81% Tier 1 leverage ratio 7.85% 7.91% Common equity tier 1 capital ratio 12.88% n/a Tier 1 capital ratio 12.88% 11.84% Total capital ratio 14.15% 13.09% Asset Quality and Ratios Other Real Estate Owned (OREO) $1,134 $780 Non-acccrual loans $7,630 $6,169 Troubled debt restructured loans ("TDRs") $2,716 $2,769 Non-accruing loans/total loans 3.30% 2.77% Allowance for loan loss/total loans 1.48% 1.55% Allowance for loan loss/non-accrual loans 45% 56%
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 2015 Assets Dollars in Thousands Cash and balances due from depository institutions: Non-interest-bearing balances and currency and coin... 2,825 $ $ 4,026 Interest-bearing balances... 9,451 2,518 Securities Held-to-maturity securities... 0 0 Available-for-sale securities... 66,078 52,021 Loans and lease financing receivables: Loans and leases, net of unearned income... $ 231,233 $ 222,738 LESS: Allowance for loan and lease losses... 3,413 3,458 Loans and leases, net of allowance... 227,820 219,280 Premises and fixed assets (including capitalized leases)... 5,942 6,127 Other Real Estate Owned... 1,134 780 Other assets... 13,009 13,280 Total Assets... $ 326,259 $ 298,032 Liabilities Deposits: Interest-bearing... $ 236,395 $ 215,118 Non-interest-bearing... 54,408 52,118 Total deposits... 290,803 267,236 Borrowed funds... 6,000 3,000 Other liabilities... 1,507 1,550 Total Liabilities... 298,310 271,786 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... 0 182 Retained earnings... 14,819 12,988 Accumulated other comprehensive income... 242 370 Total Equity Capital... 27,949 26,246 Total Liabilities, and Equity Capital... $ 326,259 $ 298,032 Capital Ratios: 2014 Dollars in Thousands Capital to Asset ratio 8.57% 8.81% Tier 1 leverage ratio 7.85% 7.91% Common equity tier 1 capital ratio 12.88% n/a Tier 1 risk-based capital ratio 12.88% 11.84% Total risk-based capital ratio 14.15% 13.09%
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Quarters Ended Twelve Months Ended 2015 2014 2015 2014 Income Statement Interest and fee income: Dollars in Thousands Dollars in Thousands Interest and fee income on loans... $ 3,006 $ 2,953 $ 11,935 $ 11,514 Interest income on balances due from depository institution 18 7 37 14 Interest and dividend income on securities... 220 177 787 720 Other interest income... 16 16 56 50 Total Interest and fee income... 3,260 3,153 12,815 12,298 Interest Expense: Interest on deposits... 514 503 1,992 1,937 Interest on borrowed funds... 16 7 52 17 Total Interest expense... 530 510 2,044 1,954 Net Interest Income... 2,730 2,643 10,771 10,344 Provision for Loan Losses... 0 100 125 525 Non-Interest Income: Service charges on deposit accounts... 59 80 247 358 Net loss on sale of real estate owned... (129) 47 (165) (1,064) Income on bank owned life insurance... 49 51 199 205 Other non-interest income... 57 52 233 211 Total non-interest income... 36 230 514 (290) Realized gains (losses) on securities... 1 (1) 2 248 Non-interest expenses Salaries and employee benefits... 1,069 1,079 4,371 4,043 Expenses on premises and fixed assets... 217 202 928 953 Other non-interest expenses... 745 920 3,248 3,340 Total non-interest expenses... 2,031 2,201 8,547 8,336 Income before Income taxes:... 736 571 2,615 1,441 Income taxes (benefit)... 228 79 784 245 Net Income... $ 508 $ 492 $ 1,831 $ 1,196 Earnings per Share. $ 0.29 $ 0.28 $ 1.05 $ 0.69
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 www.cbbcnj.com, and to view CBBC s 2014 Audited Financial Statements, visit: http://www.cbbcnj.com/home/about-us/investor 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. The words may, could, should, would, will, project, continue, believe, anticipate, expect, intend, plan, and similar expressions are intended to identify forward-looking 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 1995. 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 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) 587-1333 investorrelations@cbbcnj.com ### 01/19/2016 SL1 1399878v1 105464.00001