EXHIBIT 99(a)
Community Bancorp of New Jersey
Reports Second Quarter Profit As Earnings And
Asset Growth Continue
FREEHOLD, N.J., July 19 -- Community Bancorp of New Jersey, the holding company
for the Community Bank of New Jersey (Nasdaq: CBNJ) which commenced operations
in May 1997, reported its seventh consecutive quarter of profitable operations.
For the quarter ended June 30, 2000, the Company earned $240,000 compared to $
139,000 for the same period last year. Basic and diluted net income per share
for the second quarter of 2000 was $0.12, compared to net income per share for
basic and diluted earnings of $0.08 and $0.07, respectively, for the second
quarter of 1999.
For the six months ended June 30, 2000, net income increased to $386,000, or
$0.20 net income per share for both basic and diluted compared to net income of
$204,000, or net income per share for basic and diluted earnings of $0.11 and
$0.10, respectively, for the same period in 1999.
For the six months ended June 30, 2000, the Company did not recognize any income
tax expense. Tax expense for the period has been offset by the benefit from the
reduction in the Company's valuation allowance on its deferred tax asset as of
June 30, 2000. The Company would have reported income tax expense of
approximately $140,000 without the benefit from this valuation allowance
reduction. Based upon the current and projected levels of profit, it is
anticipated that the Company will further reduce its valuation allowance to
zero, and begin to record income tax expense in the first quarter of 2001.
As of June 30, 2000 the Company posted total assets of $156.9 million, an
increase of $24.1 million, or 18% over December 31, 1999. The Bank's loan
portfolio, net of allowances for loan losses, increased to $98.3 million, an
increase of $16.9 million, or 21% over December 31, 1999. Total deposits
increased to $137.1, million at June 30, 2000, an increase of $23.1 million, or
20% over December 31, 1999. At June 30, 2000, the Company's allowance for loan
losses equaled $1.4 million, or 1.38% of loans. The Company had no non-
performing assets at June 30, 2000.
The Community Bank of New Jersey, the Company's Bank subsidiary, operates
through its main office at 3535 Highway 9 North, Freehold, New Jersey and its
four (4) branch offices located at 31 East Main Street, Freehold, New Jersey,
4502 Highway 9 South, Howell, New Jersey and 267 Main Street, Matawan, New
Jersey and 191 Route 9 South, Manalapan, New Jersey.
COMMUNITY BANCORP OF NEW JERSEY
FINANCIAL HIGHLIGHTS
BALANCE SHEETS
June 30, December 31,
2000 1999
---------- ------------
(Unaudited)
(In thousands)
ASSETS
Cash and Due from Banks $ 9,005 $ 4,991
Federal Funds Sold 10,455 20,275
Investment Securities 33,029 20,669
Loans 99,672 82,632
Less Allowance for Loan Losses (1,375) (1,237)
Net Loans 98,297 81,395
Premises and Equipment, net 4,739 4,631
Other Assets 1,409 850
TOTAL ASSETS $ 156,934 $ 132,811
LIABILITIES
Deposits $ 137,136 $ 114,028
Other Liabilities 1,204 557
Total Liabilities 138,340 114,585
SHAREHOLDERS' EQUITY
Common Equity (1) 21,299 20,160
Accumulated Deficit (1) (2,679) (1,923)
Accumulated other comprehensive income (26) (11)
Total Shareholders' Equity 18,594 18,226
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $ 156,934 $ 132,811
(1) Change includes recording of 5% stock dividend paid May 1, 2000.
COMMUNITY BANCORP OF NEW JERSEY
FINANCIAL HIGHLIGHTS
STATEMENTS OF OPERATIONS (Unaudited)
6 Months Ended June 30,
2000 1999
(In thousands, except per share data)
Interest Income $4,909 $2,975
Interest Expense 2,027 1,000
Net Interest Income 2,882 1,975
Provision for Loan Losses 138 222
Net Interest Income after
Provision for Loan Losses 2,744 1,753
Non Interest Income 417 131
Non Interest Expenses 2,775 1,680
Net Income $ 386 $ 204
Net Income
Per Common Share(1)
Basic $ 0.20 $ 0.11
Diluted $ 0.20 $ 0.10
SELECTED FINANCIAL DATA
Market Value per Common Share(1)(2) $13.63 $14.79
Book Value per share(1) $ 9.69 $ 9.57
(1) Per share and earnings per share values have been retroactively adjusted to
reflect the third quarter 1999 3% stock dividend and the second quarter 2000 5%
stock dividend.
(2) Closing sale price of the common stock on the Nasdaq SmallCap Market at June
30, 2000 and June 30, 1999 under the symbol CBNJ.
SOURCE Community Bancorp of New Jersey
CONTACT: Robert D. O'Donnell for Community Bancorp of New Jersey, 732-863-9000