WOOD-RIDGE, NEW JERSEY, NOVEMBER 4, 1996 - 1st Bergen Bancorp
(NASDAQ/NMS:FBER), the holding company for South Bergen Savings Bank, announced
net income for its fourth fiscal quarter ended September 30, 1996 of $416,000 or
13 cents per share and income of $1.1 million or 34 cents per share for the
twelve months ended September 30, 1996, before a one time non-recurring FDIC
special assessment to recapitalize the Savings Association Insurance Fund
(SAIF), as mandated by Congress. South Bergen complied with the recent
legislation by recording a pre-tax charge of $1.3 million. The after tax cost to
the Bank of the special assessment was $815,000 which resulted in a net loss for
the fourth quarter of ($399,000) and twelve month net income of $265,000. The
SAIF legislation is expected to provide reductions in future annual deposit
insurance costs. The Company estimates that if the proposed lower rate of 6.4
basis points had been in effect for the past 12 months, the Company's FDIC
insurance premiums would have been reduced by $341,000.
The three month recurring earnings of $416,000 represents an increase of
785 percent over the $47,000 earned for the same period last year. The twelve
month recurring earnings of $1.1 million represents an increased of 59.7 percent
over the $689,000 earned for the same period last year.
The $369,000 fourth quarter increase in earnings over the prior year is
primarily attributable to a $642,000 increase in net interest income coupled
with a $110,000 decrease in the provision for loan losses, partially offset by
a $97,000 increase in real estate owned expenses. The increase in interest
income was primarily the result of the Company's investment of net offering
proceeds in loans and investments securities, thereby substantially increasing
earning assets. The Company completed its initial public offering on March 29,
1996. Because the Company had no shares outstanding prior to March 29th, per
share data is not presented for prior periods. Net interest income before
provision for loan losses was $2.1 million and $7.4 millon for the three and
twelve month periods ended September 30, 1996 as compared to $1.5 million and
$7.1 million for the same periods last year.
The provision for loan losses was $261,000 for the quarter ended September
30, 1996 and $660,000 for fiscal 1996 as compared to $371,000 and $1.4 million
for the same periods in the prior year. Non-interest income and recurring
non-interest expense totaled $54,000 and $1.3 million respectively for the three
months ended September 30, 1996 as compared to $33,000 and $1.1 million
respectively for the same periods in the prior year.
Total assets at September 30, 1996 were $250.0 million versus $223.2
million at September 30, 1995, an increase of 12.0%. This increase was due
primarily to the Company's receipt of $30.6 million in net proceeds from the
sale of 3,174,000 shares of common stock in connection with the Bank's mutual to
stock conversion completed on March 29, 1996. Net loans totaled $118.5 million
at September 30, 1996 compared to $113.6 million at September 30, 1995 and
$110.0 million at June 30, 1996.
The ratio of non-performing loans to total assets was .94% at September
30, 1996 as compared to 3.30% at September 30, 1995 and 1.58% at June 30, 1996.
The improvement in the ratio of non-performing loans to total assets from June
30, 1996 to September 30, 1996 is due to a reduction in the non-performing loan
portfolio from $4.0 million to $2.3 million, coupled with an increase in the
Company's loan portfolio.
The ratio of non-performing assets to total assets was 1.23% at September
30, 1996 as compared to 3.81% at September 30, 1995 and 2.30% at June 30, 1996.
The improvement in the ratio of non-performing assets to total assets from June
30, 1996 to September 30, 1996 is due to the same reduction in the
non-performing loan portfolio and a reduction in the Company's real estate owned
(REO). Real estate owned totaled $713,000 at September 30, 1996 compared to $1.1
million at September 30, 1995 and $1.4 million at June 30, 1996. The reduction
in the real estate owned portfolio was due to sale of properties during the
quarter as management continued to implement its strategy of aggressively
resolving non-performing assets.
The Company has previously announced that it has changed its fiscal year
end from September 30th to December 31st.
During the second half of the year ended September 30, 1996, the Company
began to expand its franchise through the establishment of new branches. The
Company seeks to use the expansion of its branch network as a means of expanding
its trade area. Since April, 1996, the Company has opened a new branch in a
supermarket in Wanaque, Passaic County, has received OTS approval to establish a
branch in Lincroft, Monmouth County, and has applied to the OTS to establish a
branch in Montville, Morris County, New Jersey. Management believes that these
areas are growing economically and are not adequately served by branches of the
Company's larger out of state competitors. The Company intends to continue to
establish additional branches in locations which management believes are
undeserved by larger institutions and which have a need for the Company's
products and services.
1st Bergen Bancorp
Consolidated Statements of Financial Condition
9/30/96 9/30/95
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Assets:
Cash and due from banks 1,804,230 3,215,041
Interest-bearing deposits in other banks 2,150,000 6,000,000
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Total cash and cash equivalents 3,954,230 9,215,041
Investment securities held to maturity 42,384,809 22,666,332
MBS securities held to maturity 53,829,204 44,154,005
Securities available for sale 19,449,252 25,008,563
MBS securities available for sale 2,835,010 0
Loans receivable 118,505,395 113,555,926
Premises and Equipment 2,702,131 2,698,110
Real Estate owned 712,769 1,070,982
FHLB Stock 1,487,200 1,446,500
Accrued interest and dividends receivable 1,398,514 1,162,651
Deferred income taxes 2,052,609 1,988,535
Other Assets 675,022 199,924
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Total Assets 249,986,145 223,166,569
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Liabilities & Stockholders' Equity
Liabilities:
Deposits 204,499,872 207,837,993
Escrow 898,338 910,656
Accrued income taxes 517,757 78,734
Other liabilities 1,507,187 164,886
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Total Liabilities 207,423,154 208,992,269
Total Stockholders' Equity 42,562,991 14,174,300
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Total Liabilities & Stockholders' Equity 249,986,145 223,166,569
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1st Bergen Bancorp
Consolidated Statements of Income for Three Months Ended
9/30/96 9/30/95
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Interest Income:
Loans 2,470,210 2,519,972
MBS's 856,610 596,196
Investments - HTM 738,075 582,667
Securities - AFS 323,519 91,139
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Total Interest Income 4,388,414 3,789,974
Interest Expense:
Deposits 2,247,030 2,287,488
Advances from FHLB 0 3,082
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Total Interest Expense 2,247,030 2,290,570
Net Interest Income before Provision
for Loan Losses 2,141,384 1,499,404
Provision for loan losses 261,000 371,000
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Net Interest Income after Provision 1,880,384 1,128,404
Non-Interest Income:
Loan fees and service charges 36,639 31,396
Other 17,056 1,466
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Total Non-Interest Income 53,695 32,862
Non-Interest Expense:
Compensation and employee benefits 557,726 534,979
Occupancy 69,845 63,940
Equipment 97,042 94,034
Advertising 46,562 44,999
Federal Insurance Premiums 119,837 110,396
FDIC Special Assessment 1,261,400 0
Net loss from REO 143,366 45,981
Insurance and bond premium 25,690 23,315
Other Expenses 229,470 170,313
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Total Non-Interest Expense 2,550,938 1,087,957
Income (Loss) before taxes (616,859) 73,309
Federal and State tax expense (218,368) 25,951
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NET INCOME (LOSS) (308,491) 47,358
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1st Bergen Bancorp
Consolidated Statements of Income for Twelve Months Ended
9/30/96 9/30/95
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Interest Income:
Loans 9,739,891 10,329,298
MBS's 3,273,900 2,323,057
Investments - HTM 2,865,679 1,139,720
Securities - AFS 839,884 1,270,675
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Total Interest Income 16,719,354 15,062,750
Interest Expense:
Deposits 9,310,339 7,814,749
Advances from FHLB 333 150,275
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Total Interest Expense 9,310,672 7,965,024
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Net Interest Income before Provision
for Loan Losses 7,408,682 7,097,726
Provision for loan losses and Real Estate 660,000 1,445,000
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Net Interest Income after Provision 6,748,682 5,652,726
Other Income (expense):
Loan fees and service charges 49,307 42,203
Loss on sale of loans or securities (411,875) (8)
Other 134,441 133,763
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Total Other Income (expense) (228,127) 175,958
Other Expenses:
Compensation and employee benefits 2,314,196 2,255,646
Occupancy 273,392 246,917
Equipment 387,554 377,005
Advertising 189,084 192,263
Federal Insurance Premiums 408,602 453,494
FDIC Special Assessment 1,261,400 0
Net loss from REO 317,813 239,647
Insurance and bond premium 101,306 103,499
Other Expenses 848,427 830,340
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Total Other Expenses 6,101,774 4,698,811
Income before Federal and State
tax expenses (benefit): 418,781 1,129,873
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Federal and State tax expense (benefit):
Current 153,895 443,923
Deferred 0 (2,713)
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153,895 441,210
NET INCOME 264,886 688,663
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