EXHIBIT 99
NEWS RELEASE
Media Information Contact:
Barry B. Davall, President & CEO
Community Partners Bancorp
(732) 706-9009
For Immediate Release
Community Partners Bancorp
Reports Third Quarter Operating Results
Middletown, New Jersey – October 23, 2006
Community Partners Bancorp (NASDAQ: “CPBC”) reported consolidated earnings and asset growth for the third quarter and nine months ended September 30, 2006. The Company reported net income of $1,074,000 for the quarter ended September 30, 2006, or $0.17 per share for basic and $0.16 per share for diluted, compared to net income of $592,000 for the third quarter of 2005, or $0.15 for basic and $0.14 for diluted earnings per share. Net income for the quarter ended September 30, 2006 increased by $482,000 or 81.4% over the same prior year quarter. Diluted earnings per share for the quarter ended September 30, 2006, increased by $0.02 per share, or 14.3% compared to the same prior year quarter. Weighted average shares outstanding and earnings per share were retroactively adjusted to reflect the 3% stock dividend which was paid September 1, 2006 to shareholders of record as of August 18, 2006.For the nine months ended September 30, 2006, net income increased to $2,643,000 compared to $1,515,000 for the nine months ended September 30, 2005. This represents an increase of $1,128,000 or 74.5% in net income. Basic and diluted earnings per share for the nine months ended September 30, 2006 were $0.46 and $0.45, respectively, compared to basic and diluted earnings per share of $0.37 and $0.36, respectively, for the same prior year period. Per share results of operations were significantly higher during the 2006 periods as a result of the accretive effect resulting from the acquisition of Town Bank and the continued growth of the Company.
At September 30, 2006, assets totaled $503.9 million, an increase of $235.6 million, or 87.8% over December 31, 2005 assets of $268.3 million. The Company’s loan portfolio, net of allowances for loan losses, increased to $396.6 million at September 30, 2006, compared to $213.9 million at December 31, 2005, an increase of $182.7 million, or 85.4%. Total deposits increased to $419.9 million at September 30, 2006, compared to $236.4 million at December 31, 2005, an increase of $183.5 million, or 77.6%. The significant balance sheet growth recorded during 2006 resulted from the acquisition of Town Bank as of April 1, 2006 and the general growth of the Company for the period ended September 30, 2006.
Barry B. Davall, President and CEO of Community Partners Bancorp, stated, “I am pleased to report that good progress is being accomplished in achieving the planned benefits from the partnership that has been formed between Two River Community Bank and The Town Bank.” Mr. Davall added, “I am also happy that our loan portfolio continues to perform very well, and, despite the pressures of the rising interest rate environment, our net interest margin for September 2006 was 4.28%, which is down only 21 basis points from September 2005.”
Community Partners Bancorp is the holding company for Two River Community Bank, which is headquartered in Middletown, New Jersey, and The Town Bank, which is headquartered in Westfield, New Jersey. Two River Community Bank operates ten branches in Monmouth County and The Town Bank operates two branches in Union County. Community Partners acquired the banks on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River as the acquiring entity for accounting purposes. Community Partners was formed in connection with that transaction and had no business operations prior to April 1, 2006.
Reported earnings and balance sheet figures of Community Partners Bancorp prior to April 1, 2006, include those of Two River Community Bank and do not include those of The Town Bank. Current period performance, other than per share amounts and ratio analysis, is not generally comparable to reported results for the corresponding prior year and prior quarter periods, as a significant portion of the increases in reported earnings and balance sheet figures are due to the inclusion of Town Bank in the current but not the prior periods. CPBC-F
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COMMUNITY PARTNERS BANCORP
CONSOLIDATED BALANCE SHEETS
September 30, 2006 (Unaudited) and December 31, 2005
(In thousands, except share data)
| | | (Unaudited)
September 30,
2006 | | | December 31,
2005 | |
| ASSETS | | | | | | |
| |
| Cash and due from banks | $ | 9,015 | | $ | 5,827 | |
| Federal funds sold | | 3,993 | | | - | |
| Total cash and cash equivalents | | 13,008 | | | 5,827 | |
| |
| Securities available-for-sale | | 48,186 | | | 34,114 | |
Securities held-to-maturity (fair value of $5,861 and $5,836 at September 30,
2006 and December 31, 2005, respectively) | | 5,837 | | | 5,841 | |
| |
| Loans | | 401,018 | | | 216,327 | |
| Less allowance for loan loss | | (4,446 | ) | | (2,380 | ) |
| Net loans | | 396,572 | | | 213,947 | |
| |
| Bank-owned life insurance | | 3,782 | | | 3,667 | |
| Premises and equipment, net | | 4,838 | | | 2,390 | |
| Accrued interest receivable | | 2,017 | | | 973 | |
| Other assets | | 3,272 | | | 1,517 | |
| Intangible assets, net of accumulated amortization of $191 | | 26,411 | | | - - | |
| |
| Total assets | $ | 503,923 | | $ | 268,276 | |
| |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| |
| LIABILITIES | | | | | | |
| Deposits | | | | | | |
| Non-interest bearing | $ | 76,715 | | $ | 50,301 | |
| Interest bearing | | 343,152 | | | 186,148 | |
| Total deposits | | 419,867 | | | 236,449 | |
| |
| Securities sold under agreements to repurchase | | 8,630 | | | 5,197 | |
| Short-term borrowings | | 5,825 | | | 1,514 | |
| Accrued interest payable | | 592 | | | 71 | |
| Other liabilities | | 1,864 | | | 1,278 | |
| Total liabilities | | 436,778 | | | 244,509 | |
| SHAREHOLDERS' EQUITY | | | | | | |
Common stock - authorized 25,000,000 shares of no par value, issued and
outstanding 6,511,582 at September 30, 2006 and $2.00 par value,
authorized 10,000,000 shares, issued and outstanding 3,936,595 at
December 31, 2005 | | 64,729 | | | 7,873 | |
Preferred stock - authorized 6,500,000 shares of no par value, issued and
outstanding, none at June 30, 2006 and none authorized at
December 31, 2005 | | - | | | - | |
| Additional paid-in capital | | - - | | | 14,310 | |
| Retained earnings | | 2,827 | | | 2,153 | |
| Accumulated other comprehensive loss | | (411 | ) | | (569 | ) |
| Total shareholders' equity | | 67,145 | | | 23,767 | |
| |
| Total liabilities and shareholders' equity | $ | 503,923 | | $ | 268,276 | |
COMMUNITY PARTNERS BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Three Months and Nine Months Ended September 30, 2006 and 2005
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| 2006 | | 2005 | | 2006 | | 2005 |
| | (In thousands, except per share data) |
| |
| INTEREST INCOME: | | | | | | | | | | | |
| Loans, including fees | $ | 7,774 | | $ | 3,389 | | $ | 18,856 | | $ | 9,442 |
| Investment securities | | 650 | | | 401 | | | 1,718 | | | 1,243 |
| Federal funds sold | | 115 | | | 10 | | | 366 | | | 41 |
| Total Interest Income | | 8,539 | | | 3,800 | | 20,940 | | | 10,726 |
| |
| INTEREST EXPENSE: | | | | | | | | | | | |
| Deposits | | 3,450 | | | 991 | | | 8,077 | | | 2,559 |
| Securities sold under agreements to repurchase | | 93 | | | 40 | | | 208 | | | 114 |
| Short-term borrowings | | 41 | | | 27 | | | 81 | | | 122 |
| Total Interest Expense | | 3,584 | | | 1,058 | | | 8,366 | | | 2,795 |
| |
| Net Interest Income | | 4,955 | | | 2,742 | | 12,574 | | | 7,931 |
| |
| PROVISION FOR LOAN LOSSES | | 164 | | | 35 | | | 537 | | | 313 |
| |
| Net Interest Income after Provision for Loan Losses | | 4,791 | | | 2,707 | | 12,037 | | | 7,618 |
| |
| NON-INTEREST INCOME: | | | | | | | | | | | |
| Service fees on deposit accounts | | 148 | | | 125 | | | 442 | | | 338 |
| Other loan customer service fees | | 33 | | | 68 | | | 187 | | | 236 |
| Earnings from investment in life insurance | | 42 | | | 39 | | | 125 | | | 117 |
| Other income | | 159 | | | 76 | | | 334 | | | 180 |
| Total Non-Interest Income | | 382 | | | 308 | | | 1,088 | | | 871 |
| |
| NON-INTEREST EXPENSES: | | | | | | | | | | | |
| Salaries and employee benefits | | 1,744 | | | 1,119 | | | 4,643 | | | 3,317 |
| Occupancy and equipment | | 594 | | | 382 | | | 1,535 | | | 1,163 |
| Amortization of identifiable intangibles | | 95 | | | - - | | | 191 | | | - - |
| Other operating expenses | | 1,022 | | | 569 | | | 2,579 | | | 1,599 |
| Total Non-Interest Expenses | | 3,455 | | | 2,070 | | | 8,948 | | | 6,079 |
| |
| Income before Income Taxes | | 1,718 | | | 945 | | | 4,177 | | | 2,410 |
| INCOME TAX EXPENSE | | 644 | | | 353 | | | 1,534 | | | 895 |
| |
| NET INCOME | $ | 1,074 | | $ | 592 | | $ | 2,643 | | $ | 1,515 |
| |
| EARNINGS PER SHARE: | | | | | | | | | | | |
| Basic | $ | 0.17 | | $ | 0.15 | | $ | 0.46 | | $ | 0.37 |
| Diluted | $ | 0.16 | | $ | 0.14 | | $ | 0.45 | | $ | 0.36 |
| |
| Weighted average shares outstanding (in thousands): | | | | | | | | | | | |
| Basic | | 6,509 | | | 4,055 | | | 5,692 | | | 4,051 |
| Diluted | | 6,695 | | | 4,272 | | | 5,873 | | | 4,260 |
