UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 10, 2008
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CAPE BANCORP, INC.
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(Exact Name of Registrant as Specified in its Charter)
Maryland 001-33934 26-1294270
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(State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer
of Incorporation) Identification No.)
225 North Main Street, Cape May Courthouse, New Jersey 08210
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (609) 465-5600
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.06 Material Impairments.
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On September 7, 2008, the United States Department of the Treasury and the
Federal Housing Finance Agency ("FHFA") announced that Fannie Mae and Freddie
Mac were placed under conservatorship and that management of each would be under
the control of FHFA, their regulator.
As disclosed in Cape Bancorp, Inc.'s (the "Company") Form 10-Q for the
quarter ended June 30, 2008 filed on August 14, 2008, the Company owns Fannie
Mae preferred stock and Freddie Mac preferred stock with an aggregate carrying
value of $1,071,950 at June 30, 2008. Subsequent to the release of the Company's
Form 10-Q, the market value of the Fannie Mae preferred stock and Freddie Mac
preferred stock declined materially. Given the closing prices on September 10,
2008, the aggregate market value of the Company's preferred stocks was $129,700
and the aggregate resulting potential realized loss on a pre-tax basis was
$942,250, although such amounts will change as the market value of the Fannie
Mae preferred stock and Freddie Mac preferred stock fluctuates.
Based on these developments, the Company expects to record an
other-than-temporary impairment loss on its shares of Fannie Mae preferred stock
and Freddie Mac preferred stock in the quarter ended September 30, 2008. The
amount of pre-tax loss is expected to equal the difference between the carrying
value of the shares and the market value of the shares at September 30, 2008.
The Company's stockholders' equity was $182.7 million at June 30, 2008 and
equaled 15.76% of its total assets at that date. The expected loss will not have
a material adverse effect on the Company's stockholders' equity or capital
ratios.
This report contains certain forwarding-looking statements about the
Company's securities activities. Forward-looking statements can be identified by
the fact that they do not relate strictly to historical or current facts. They
also include words such as "believe," "expect," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should," "could" or "may".
Certain factors could cause actual results to differ materially from expected
results including changes in the general economic conditions (such as interest
rates, employment levels and real estate values), legislative and regulatory
changes, developments with respect to the Fannie Mae and Freddie Mac
conservatorships, changes in the Company's, Freddie Mac's and Fannie Mae's
business operations and the results thereof and changes in the securities
markets. Cape Bancorp, Inc. does not intend to update this Report and expressly
disclaims any obligation to do so.
Item 9.01. Financial Statements and Exhibits
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(a) Financial Statements of Businesses Acquired. Not applicable
(b) Pro Forma Financial Information. Not Applicable
(c) Shell Company Transactions. Not Applicable
(d) Exhibits. None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
CAPE BANCORP, INC.
DATE: September 11, 2008 By: /s/Herbert L. Hornsby, Jr.
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Herbert L. Hornsby, Jr.
President and Chief Executive Officer