Contact Person: Robert D. O'Donnell (732) 863-9000
PRESS RELEASE
COMMUNITY BANCORP OF NEW JERSEY
REPORTS SECOND QUARTER EARNINGS
Freehold, New Jersey - Community Bancorp of New Jersey, the holding company
for the Community Bank of New Jersey again reported record earnings for the
second quarter of 2003. For the quarter ended June 30, 2003, the Company
reported record net income of $611,000 compared to $151,000 in net income for
the same period last year. Basic and diluted net income per share for the second
quarter of 2003 were $0.18 and $0.17, respectively, compared to basic and
diluted net income per share of $0.05 and $0.04, respectively for the second
quarter of 2002. Second quarter 2002 earnings were affected by a one-time
addition to our loan loss reserve. Per share earnings have been retroactively
adjusted to reflect the 5% stock dividend announced on April 17, 2003 and the 3
for 2 stock split announced on August 28, 2002.
For the six months ended June 30, 2003, net income increased to $1,217,000
compared to $704,000 for the six months ended June 30, 2002. Basic and diluted
net income per share for the six months ended June 30, 2003 were $0.36 and
$0.34, respectively, compared to basic and diluted net income per share of $0.21
and $0.20, respectively, for the six months ended June 30, 2002. This represents
an increase of 73% in net income.
At June 30, 2003, the Company's assets totaled $389.5 million, an increase of
$57.3 million, or 17% over December 31, 2002. The Company's loan portfolio, net
of allowances for loan losses, increased to $196.4 million, an increase of $15.8
million, or 9%, over December 31, 2002. Total deposits increased to $339.1
million at June 30, 2003, an increase of $47.5 million, or 16%, over December
31, 2002.
Howard Schoor, Chairman, and Robert O'Donnell, President and CEO, commented, "We
are very proud of our operating results, but we are not surprised." Mr. Schoor
added, "Impressive! That's the only way to describe our strong balance sheet and
earnings growth as we navigate this period of financial challenges. Insightful
strategic planning by our Board of Directors, professional implementation by our
management team and quality service by our staff personnel comprise the
foundation of our results. We continue on plan and look forward to presenting
our next period of operating results."
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
seven branch offices located throughout Monmouth County, New Jersey.
Community Bancorp of New Jersey common stock is listed on the NASDAQ SmallCap
Market under the trading symbol CBNJ.
COMMUNITY BANCORP OF NEW JERSEY
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2003 2002
------------ -----------
ASSETS (Dollars in thousands)
Cash and due from banks.......................... $ 15,162 $ 9,424
Investment securities available-for-sale......... 166,259 131,676
Loans receivable................................. 198,929 182,967
Allowance for loan loss.......................... (2,579) (2,406)
- ------------------------------------------------- ------------ -----------
Net loans receivable 196,350 180,561
- ------------------------------------------------- ------------ -----------
Premises and equipment, net...................... 6,219 6,280
Accrued interest receivable...................... 1,732 2,193
Other assets..................................... 3,794 2,085
- ------------------------------------------------- ------------ -----------
Total Assets $389,516 $332,219
- ------------------------------------------------- ============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing demand.................. $ 64,943 $.51,971
Interest bearing - NOW....................... 31,151 23,455
Savings and money market..................... 123,877 100,784
Certificates of deposit, under $100,000...... 77,460 76,815
Certificates of deposit, $100,000 and over... 41,699 38,604
- ------------------------------------------------- ------------ -----------
Total deposits 339,130 291,629
- ------------------------------------------------- ------------ -----------
Short-term borrowings............................ 19,400 11,500
Accrued interest payable......................... 86 38
Other liabilities................................ 862 454
Guaranteed Preferred Beneficial Interest in the
Company's Subordinated Debt................. 5,000 5,000
- ------------------------------------------------- ------------ -----------
Total liabilities 364,478 308,621
- ------------------------------------------------- ------------ -----------
Stockholders' equity
Common stock - authorized 10,000,000 shares of
no par value; issued and outstanding, net of
treasury shares, 3,375,194 at June 30, 2003
and 3,172,945 at December 31, 2002........... 29,318 25,512
Accumulated deficit (1)........................ (4,365) (2,239)
Accumulated other comprehensive income......... 448 688
Treasury stock, at cost........................ (363) (363)
- ------------------------------------------------- ------------ -----------
Total stockholders' equity 25,038 23,598
- ------------------------------------------------- ------------ -----------
Total Liabilities and Stockholder's Equity $389,516 $332,219
- ------------------------------------------------- ============ ===========
(1) Includes accumulated charges for stock dividends of $9,168 and $5,825 at
June 30, 2003 and December 31, 2002, respectively.
COMMUNITY BANCORP OF NEW JERSEY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
2003 2002 2003 2002
-------- --------- --------- --------
(Dollars in thousands, except per share data)
Interest Income........................ $4,457 $3,855 $8,642 $7,611
Interest Expense....................... 1,470 1,227 2,922 2,507
- --------------------------------------- -------- --------- -------- --------
Net.Interest Income................. 2,987 2,628 5,720 5,104
Provision for Loan Losses.............. 60 595 173 685
- --------------------------------------- -------- --------- -------- --------
Net Interest Income after Provision
for Loan Losses............... 2,927 2,033 5,547 4,419
- --------------------------------------- -------- --------- -------- --------
Non-Interest...Income.................. 389 309 721 695
Gains on Sales of Investment Securities - - 372 -
Non-Interest Expense................... 2,359 2,107 4,724 4,034
- --------------------------------------- -------- --------- -------- --------
Income Before Income Taxes.......... 957 235 1,916 1,080
Income tax expense..................... 346 84 699 376
- --------------------------------------- -------- --------- -------- --------
Net Income......................... $ 611 $ 151 $1,217 $ 704
- --------------------------------------- ======== ========= ======== ========
Per Common Share (2):
Net income - basic................ $ 0.18 $ 0.05 $ 0.36 $ 0.21
Net income - diluted................ $ 0.17 $ 0.04 $ 0.34 $ 0.20
Weighted average shares outstanding (2) (in thousands):
Basic............................... 3,356 3,331 3,344 3,331
Diluted............................. 3,582 3,509 3,568 3,481
SELECTED FINANCIAL DATA
Market Value per Common Share (2)(3)..................................$18.96 $11.90
Book Value per Share (2)................................................$.7.42 $ 6.63
(2) Per share and earnings per share values have been retroactively adjusted to
reflect the third quarter 2002 stock split (3 for 2) and the second quarter
2003 5% stock dividend.
(3) Closing sale price of the common stock on the Nasdaq SmallCap Market at
June 30, 2003 and 2002, respectively, under the symbol CBNJ.