WOOD-RIDGE, NEW JERSEY, FEBRUARY 6, 1997 -- 1st Bergen Bancorp
(NASDAQ/NMS:FBER), the holding company for South Bergen Savings Bank, announced
net income for the quarter ended December 31, 1996 of $462,000 compared to a
loss of ($29,000) for the same period last year and an increase of 11.0% over
the $416,000 earned for the prior quarter before a one time non-recurring FDIC
special assessment to recapitalize the Savings Association Insurance Fund
(SAIF), as mandated by Congress. The $491,000 increase in earnings over the
prior year is primarily attributable to an increase in net interest income of
$657,000 partially offset by a $65,000 increase in the provision for loan losses
coupled with a decrease in non-interest expense of $185,000 and an increase in
tax expense of $292,000. The increase in earnings over the prior quarter is
attributable to an $134,000 increase in net interest income.
The Company earned 16 cents per share for the quarter ended December 31,
1996 compared to 13 cents per share for the prior quarter. The Company completed
its initial public offering on March 29, 1996, and accordingly, per share data
is not applicable for the quarter ended December 31, 1995.
Net interest income before provision for loan losses was $2.3 million for
the three months ended December 31, 1996 as compared to $1.6 million for the
three months ended December 31, 1995 and $2.1 million for the three months ended
September 30, 1996.
The provision for loan losses was $125,000 for the quarter ended December
31, 1996 compared to $60,000 for the same quarter in the prior year and $261,000
in the prior quarter. Non-interest income and non-interest expense totalled
$57,000 and $1.5 million, respectively, for the three months ended December 31,
1996, as compared to $51,000 and $1.7 million, respectively for the same period
in the prior year and $54,000 and $1.7 million for the prior quarter.
Total assets at December 31, 1996 were $247.1 million versus $249.8
million at September 30, 1996, a decrease of 1.1%. Net loans totalled $123.8
million at December 31, 1996 compared to $118.5 million at September 30, 1996,
an increase of $5.3 million, or 4.5%.
The ratio of non-performing loans to total assets was .62% at December 31,
1996 as compared to 2.41% at December 31, 1995 and .94% at September 30, 1996.
The continued improvement in the ratio of non-performing loans to total assets
from September 30, 1996 to December 31, 1996 is due to a reduction in the
non-performing loan portfolio from $2.3 million to $1.5 million coupled with an
increase in the Company's loan portfolio.
The ratio of non-performing assets to total assets was .83% at December
31, 1996 as compared to 3.26% at December 31, 1995 and 1.23% at September 30,
1996. The continued improvement in the ratio of non-performing assets to total
assets from September 30, 1996 to December 31, 1996 is due to the same reduction
in the non-performing loan portfolio discussed above and a reduction in the
Company's real estate owned (REO). Real estate owned totalled $537,000 at
December 31, 1996 compared to $1.9 million at December 31, 1995 and $713,000 at
September 30, 1996. The reduction in the real estate owned portfolio was due to
the 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 quarter ended December 31, 1996, the Company continued to
implement its program to enhance the Bank's franchise by establishing additional
retail banking locations. The Company's new `instore' branch located inside the
'Super FoodTown' in Wanaque, New Jersey, which opened in late September of 1996,
had more than $1.4 million in deposits at December 31, 1996.
Additionally, the Bank has approved branch locations in Morris and
Monmouth counties that are scheduled to open during the first half of 1997. The
Morris county office, located at 339 Route 202, Montville is scheduled to open
in March, 1997 and a late second quarter 1997 opening is planned for the
Monmouth county office located in the ACME Shopping Center, Newman Springs Road
in the Lincroft section of Middletown Township.
The Company intends to continue its program to develop the Bank's
franchise by establishing additional retail banking locations in areas which
management believes it can successfully market its products and services.
1ST BERGEN BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
12/31/96 9/30/96
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ASSETS:
Cash and due from banks .......................... 5,230,770 1,804,230
Interest-bearing deposits in other banks ......... 2,500,000 2,150,000
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Total cash and cash equivalents .................... 7,730,770 3,954,230
Investment securities held to maturity ........... 33,135,851 42,384,809
MBS securities held to maturity .................. 51,768,925 53,829,204
Securities available for sale .................... 19,603,938 19,449,252
MBS securities available for sale ................ 2,817,001 2,835,010
Loans receivable ................................. 123,824,912 118,505,395
Premises and Equipment ........................... 2,699,113 2,702,131
Real Estate owned ................................ 536,700 712,769
FHLB Stock ....................................... 1,487,200 1,487,200
Accrued interest and dividends receivable ........ 1,466,434 1,398,514
Deferred income taxes ............................ 1,817,037 1,842,294
Other Assets ..................................... 184,704 675,022
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TOTAL ASSETS ....................................... 247,072,585 249,775,830
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LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits ......................................... 204,154,213 204,499,872
Escrow ........................................... 932,117 898,338
Accrued income taxes ............................. 591,679 229,152
Other liabilities ................................ 159,993 1,507,187
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TOTAL LIABILITIES .................................. 205,838,002 207,134,549
TOTAL STOCKHOLDERS' EQUITY ......................... 41,234,583 42,641,281
----------- -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY ........... 247,072,585 249,775,830
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1ST BERGEN BANCORP
CONSOLIDATED STATEMENTS OF INCOME FOR THREE MONTHS ENDED
12/31/96 12/31/95
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Interest Income:
Loans .............................................. 2,590,791 2,521,851
MBS's-HTM .......................................... 841,566 720,338
MBS's-AFS .......................................... 44,186 0
Investments-HTM .................................... 714,419 635,216
Securities-AFS ..................................... 304,157 98,762
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TOTAL INTEREST INCOME ................................ 4,495,119 3,976,167
Interest Expense:
Deposits ........................................... 2,219,596 2,357,514
Advances from FHLB ................................. 0 333
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TOTAL INTEREST EXPENSE ............................... 2,219,596 2,357,847
Net Interest Income before Provision
for loan Losses .................................... 2,275,523 1,618,320
Provision for loan losses ............................ 125,000 60,000
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NET INTEREST INCOME AFTER PROVISION .................. 2,150,523 1,558,320
Non-Interest Income:
Loan fees and service charges ...................... 47,098 49,725
Annuity Commissions ................................ 5,800 0
Other .............................................. 4,143 1,699
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TOTAL NON-INTEREST INCOME ............................ 57,041 51,424
Non-Interest Expense:
Compensation and employee benefits ................. 686,426 591,265
Commission Expense ................................. 860 0
Occupancy .......................................... 69,900 62,534
Equipment .......................................... 106,575 95,883
Advertising ........................................ 54,913 53,149
Loss on Sale of Securities ......................... 0 411,875
Federal Insurance Premiums ......................... 97,821 115,051
Net loss from REO .................................. 50,277 106,678
Insurance and bond premium ......................... 27,798 25,918
Other Expenses ..................................... 372,805 190,169
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TOTAL NON-INTEREST EXPENSE ........................... 1,467,375 1,652,522
Income (loss) before taxes ........................... 740,189 (42,778)
Federal and State
tax expense (benefit) .............................. 278,107 (13,700)
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NET INCOME (LOSS) .................................... 462,082 (29,078)
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