Contact Person: Robert D. O'Donnell (732) 863-9000
PRESS RELEASE
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COMMUNITY BANCORP OF NEW JERSEY
REPORTS THIRD QUARTER PROFIT
AS EARNINGS AND ASSET GROWTH CONTINUE
Freehold, New Jersey - 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 eighth consecutive quarter of profitable operations. For
the quarter ended September 30, 2000, the Company earned $351,000 compared to
$160,000 for the same period last year. Basic and diluted net income per share
for the third quarter of 2000 was $0.18, compared to net income per share for
both basic and diluted earnings of $0.08 for the third quarter of 1999.
For the nine months ended September 30, 2000, net income increased to
$737,000, or $0.38 net income per share for both basic and diluted compared to
net income of $364,000 or net income per share for both basic and diluted
earnings of $0.19 for the same period in 1999.
For the nine months ended September 30, 2000, the Company recognized
$12,000 in State income tax expense and did not recognize any Federal 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
September 30, 2000. The Company would have reported income tax expense of
approximately $285,000 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 Federal income tax expense in the first quarter of
2001.
As of September 30, 2000 the Company posted total assets of $165.0
million, an increase of $32.2 million, or 24% over December 31, 1999. The Bank's
loan portfolio, net of allowances for loan losses, increased to $103.9 million,
an increase of $22.5 million, or 28% over December 31, 1999. Total deposits
increased to $144.6, million at September 30, 2000, an increase of $30.6
million, or 27% over December 31, 1999. At September 30, 2000, the Company's
allowance for loan losses equaled $1.4 million, or 1.36% of loans. The Company
had no non-performing assets at September 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
September 30, 2000 December 31, 1999
(Unaudited)
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(In thousands)
ASSETS
Cash and Due from Banks $ 5,730 $ 4,991
Federal Funds Sold 16,500 20,275
Investment Securities 32,504 20,669
Loans 105,298 82,632
Less Allowance for Loan Losses (1,430) (1,237)
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Net Loans 103,868 81,395
Premises and Equipment, net 4,849 4,631
Other Assets 1,579 850
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TOTAL ASSETS $ 165,030 $ 132,811
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LIABILITIES
Deposits $ 144,625 $ 114,028
Other Liabilities 1,443 557
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Total Liabilities 146,068 114,585
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SHAREHOLDERS' EQUITY
Common Equity (1) 21,299 20,160
Accumulated Deficit (1) (2,327) (1,923)
Accumulated other comprehensive income (10) (11)
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Total Shareholders' Equity 18,962 18,226
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TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 165,030 $ 132,811
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(1) Change includes recording of 5% stock dividend paid May 1, 2000.
COMMUNITY BANCORP OF NEW JERSEY
FINANCIAL HIGHLIGHTS
STATEMENTS OF OPERATIONS (Unaudited)
9 Months Ended September 30,
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2000 1999
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(In thousands, except per share data)
Interest Income $ 7,957 $ 4,612
Interest Expense 3,402 1,628
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Net Interest Income 4,555 2,984
Provision for Loan Losses 193 267
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Net Interest Income after
Provision for Loan Losses 4,362 2,717
Non Interest Income 613 407
Non Interest Expenses 4,226 2,760
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Income Before Income Taxes $ 749 $ 364
Income Tax Expense 12 -
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Net Income $ 737 $ 364
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Net Income
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Per Common Share(1)
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Basic and Diluted $ 0.38 $ 0.19
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SELECTED FINANCIAL DATA
Market Value per Common Share(1)(2) $ 16.00 $ 14.29
Book Value per share(1) $ 9.88 $ 9.54
(1) Per share and earnings per share values have been retroactively adjusted to
reflect the third quarter 2000 5% stock dividend.
(2) Closing sale price of the common stock on the Nasdaq SmallCap Market at
September 30, 2000 and September 30, 1999 under the symbol CBNJ.