Exhibit 99
Contact Person: Robert D. O'Donnell (732) 863-9000
PRESS RELEASE
COMMUNITY BANCORP OF NEW JERSEY
REPORTS FIRST QUARTER EARNINGS
Freehold, New Jersey - For the quarter ended March 31, 2004, Community
Bancorp of New Jersey (Nasdaq SmallCap "CBNJ"), the holding company for the
Community Bank of New Jersey, reported net income of $410 thousand compared to
$606 thousand in net income for the same period last year. Basic and diluted net
income per share for the first quarter of 2004 were $0.12 and $0.11,
respectively, compared to basic and diluted net income per share of $0.18 and
$0.17, respectively for the first quarter of 2003. First quarter 2003 earnings
included gains on sales of securities of $372 thousand. In addition, during
2003, the Company employed a leverage strategy to take advantage of the stable
low interest rate environment during the year. That strategy has now been
unwound, reducing the Company's investment portfolio and debt.
At March 31, 2004, the Company's assets totaled $372 million, compared to $428
million at December 31, 2003. The Company's loan portfolio, net of allowances
for loan losses, increased to $211 million, an increase of $12 million from $199
million at December 31, 2003. Total deposits increased to $340 million at March
31, 2004, an increase of $14 million from $326 million at December 31, 2003. The
Company's investment portfolio declined from $200 million at December 31, 2003
to $118 million at March 31, 2004, as a result of the successful completion of
the Company's deleveraging strategy.
Howard Schoor, Chairman, and Robert O'Donnell, President and CEO, commented, "We
remain committed to our Mission Statements, to exceed the expectations of our
customer by building relationships through products and services of high quality
and value. We will strive to deliver superior customer service in convenient
locations with extended business hours within a person-to-person cordial
business-like environment. Our two new branches are progressing: Old Bridge,
located at Jake Brown Road; and Holmdel, located at the corner of Laurel Avenue
and Middle Road. Both expected to open in the mid third quarter. The employees,
officers and Board of Directors are committed to working together in making
Community bank the finest banking franchise in Central New Jersey."
Messrs. Schoor and O'Donnell also stated, with regard to the proposed merger
with Sun Bancorp: "We remain on track with the proposed merger. Sun and CBNJ
have filed all necessary regulatory applications, and we expect to set the date
for our special shareholders meeting to vote on the merger shortly."
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
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2004 2003
---------- ---------
ASSETS (Dollars in thousands)
Cash and due from banks $ 11,009 $ 11,465
Federal funds sold 16,200 --
Investment securities available-for-sale 117,802 200,025
Loans receivable 213,952 202,044
Allowance for loan loss (2,674) (2,618)
- ---------------------------------------------------------------------------- --------- ---------
Net loans receivable 211,278 199,426
- ---------------------------------------------------------------------------- --------- ---------
Premises and equipment, net 6,901 6,832
Accrued interest receivable 1,234 1,868
Other assets 7,269 8,209
- ---------------------------------------------------------------------------- --------- ---------
Total Assets $ 371,693 $ 427,825
- ---------------------------------------------------------------------------- ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing demand $ 67,259 $ 57,766
Interest bearing - NOW 30,460 28,853
Savings and money market 147,088 135,663
Certificates of deposit, under $100,000 66,252 70,864
Certificates of deposit, $100,000 and over 28,863 32,863
- ---------------------------------------------------------------------------- --------- ---------
Total deposits 339,922 326,009
- ---------------------------------------------------------------------------- --------- ---------
Short-term borrowings -- 72,400
Accrued interest payable 74 78
Other liabilities 316 418
Subordinated debt 5,155 --
Guaranteed preferred beneficial interest in the
Company's subordinated debt -- 5,000
- ---------------------------------------------------------------------------- --------- ---------
Total liabilities 345,467 403,905
- ---------------------------------------------------------------------------- --------- ---------
Stockholders' equity
Common stock - authorized 10,000,000 shares of no par value; issued and
outstanding, net of treasury shares, 3,389,719 at March 31, 2004
and 3,385,490 at December 31, 2003 29,462 29,420
Accumulated deficit (1) (2,770) (3,180)
Accumulated other comprehensive loss (103) (1,957)
Treasury stock, at cost (363) (363)
- ---------------------------------------------------------------------------- --------- ---------
Total stockholders' equity 26,226 23,920
- ---------------------------------------------------------------------------- --------- ---------
Total Liabilities and Stockholders' Equiy $ 371,693 $ 427,825
- ---------------------------------------------------------------------------- ========= =========
(1) Includes accumulated charges for stock dividends of $9,168.
COMMUNITY BANCORP OF NEW JERSEY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
---------------
2004 2003
------ ------
Interest Income $4,035 $4,185
Interest Expense 1,263 1,452
- ------------------------------------------------------- ------ ------
Net Interest Income 2,772 2,733
Provision for Loan Losses 54 113
- ------------------------------------------------------- ------ ------
Net Interest Income after Provision
for Loan Losses 2,718 2,620
- ------------------------------------------------------- ------ ------
Non-Interest Income 446 332
Gains on Sales of Investment Securities -- 372
Non-Interest Expense 2,536 2,365
- ------------------------------------------------------- ------ ------
Income Before Income Taxes 628 959
Income tax expense 218 353
- ------------------------------------------------------- ------ ------
Net Income $ 410 $ 606
- ------------------------------------------------------- ====== ======
Per Common Share (2):
Net income - basic $ 0.12 $ 0.18
Net income - diluted $ 0.11 $ 0.17
Weighted average shares outstanding (2) (in thousands):
Basic 3,387 3,332
Diluted 3,614 3,555
SELECTED FINANCIAL DATA
Market Value per Common Share (2)(3)......................$21.75 $18.31
Book Value per Share (2)..................................$ 7.74 $ 7.21
(2) Per share and earnings per share values have been retroactively adjusted to
reflect the second quarter 2003 5% stock dividend.
(3) Closing sale price of the common stock on the Nasdaq SmallCap Market at
March 31, 2004 and 2003, respectively, under the symbol CBNJ.