We are pleased to report net income available to common shareholders for the year ended December 31, 2014 was $2.4 million, or $0.40 per diluted common share, representing an increase of more than 30% over the $1.8 million, or $0.31 per diluted common share, earned for the year ended December 31, 2013. Net interest income was $21.7 million compared to $22.8 million for the prior year. The net interest margin for 2014 was 3.46% compared to 3.54% for the prior year. While the Corporation has endeavored to manage liability costs, the decline in interest margin is reflective of the lower yields on assets due to a pro- longed period of low interest rates. Management has embraced the continued low interest rate environment and determined how best to create earnings for the Corporation. This is evidenced by the increased dividend paid to shareholders in the fourth quarter of 2014. Noninterest income was $3.0 million for the year ended December 31, 2014 compared with $4.0 million for the prior year. The prior year included noninterest income of $537,000 as a result of a death benefit insurance payment received. In addition, gains on sales of mortgage loans for the year ended December 31, 2014 reflected the reduced volume of loans originated for sale resulting from a decline in refinance activity. Finally, the 2014 income included a loss of $241,000 from the sale of nonperforming loans while the prior year included a loss of $372,000 from the sale of nonperforming loans. For the year ended December 31, 2014, the Corporation recorded a negative provision for loan losses of $50,000 as compared to a $3.8 million provision for loan losses in the prior year reflective of the significant progress made over the last few years in improving asset quality. Nonperforming loans were $2.6 million, or 0.76% of total loans at December 31, 2014, down significantly comparedto $10.2 million, or 2.34% of total loans, at December 31, 2013. The allowance for loan losses represented 2.01% of total gross loans compared to 2.28% for the prior year. | The Corporation’s capital levels continue to remain strong with a Tier 1 leverage ratio of 9.04% and total risk based capital ratio of 14.78%, far exceeding the regulatory requirements of 4% and 8%, respectively, to be considered a “well capitalized” institution. Total assets of $693.6 million at December 31, 2014 reflected an increase when compared to $673.5 million of assets at December 31, 2013. As a result of the concerted efforts of the management team, the Corporation has redirected its focus on loan growth. During 2014, our loan portfolio increased $43.3 million, representing a 10% rate of growth. In order to manage the growth in assets while still assisting in the funding of the loan growth, the Corporation identified and sold approximately $10.2 million of available-for-sale securities with high price volatility. To foster the Bank’s expansion of the commercial loan portfolio and to support that growth, the Commercial Lending Division, including the Credit Administration and Loan Operations departments, relocated to a new building owned by the Corporation. The new structure is located at 612 Godwin Avenue, Midland Park, NJ, and neighbors the corporate headquarters at 630 Godwin Avenue. The Bank continues to be an active residential mortgage lender offering highly competitive rates and terms on a variety of first mortgage products. In an effort to assist first time home buyers, the Bank partnered with the Federal Home Loan Bank of New York to offer the First Home Club, a program that provides qualified first time home buyers with a systematic savings plan where the funds may be used for a down payment or closing costs. Home equity lines and loans continue to be an affordable source of funds for consumers who, among other things, are looking to make home improvements or pay for education. With that in mind, the Bank introduced two new Home Equity Line of Credit products – one with a 12-month introductory rate and a second with a 5-year fixed rate. Continued |
