[1ST BERGEN BANCORP LOGO]
WOOD-RIDGE, NEW JERSEY, FEBRUARY 9, 1998 - 1st Bergen Bancorp
(NASDAQ/NMS:FBER), the holding company for South Bergen Savings Bank, announced
net income for the fourth quarter ended December 31, 1997, of $553,000 compared
to $462,000 for the same period last year and an increase of 12.9% over the
$490,000 earned for the prior quarter. The $91,000 increase in earnings over the
prior year is primarily attributable to decreases in the provision for loan
losses and tax expense of $50,000 and $101,000, respectively, partially offset
by a $38,000 decrease in net interest income.
For the quarter ended December 31, 1997, the Company earned $0.22 cents and
$0.21 cents per share on a basic and dilued basis, respectively, compared to
$0.19 cents per share on a basic and diluted basis for the prior quarter and
$0.16 cents per share for the same period last year.
Net interest income before provision for loan losses was $2.2 million for
the three months ended December 31, 1997, as compared to $2.3 million for the
same period last year. For the quarter ended December 31, 1997, the provision
for loan losses was $75,000 compared to $125,000 for the same period last year.
Non-interest income and non-interest expense totalled $85,000 and $1.5 million,
respectively, for the three months ended December 31, 1997, as compared to
$57,000 and $1.5 million, respectively, for the same period in the prior year.
Total assets at December 31, 1997, were $290.4 million versus $247.1
million at December 31, 1996, an increase of 17.5%. This increase is primarily
attributable to
Management's decision to begin a leverage program in April 1997 using low cost
Federal Home Loan Bank borrowings to fund the purchase of higher yielding
Mortgage Backed Securities and investment securities. Net loans totalled $127.8
million at December 31, 1997, compared to $123.8 million at December 31, 1996,
an increase of $4.0 million, or 3.23%.
The ratio of non-performing loans to total assets was .71% at December 31,
1997, as compared to .62% at December 31, 1996, and .77% at September 30, 1997.
The ratio of non-performing assets to total assets was .74% at December 31,
1997, as compared to .83% at December 31, 1996, and .84% at September 30, 1997.
Real estate owned totalled $118,000 at December 31, 1997, compared to
$537,000 at December 31, 1996, and $209,000 at September 30, 1997.
South Bergen Savings Bank operates a traditional retail banking business
from its main office in Wood-Ridge, New Jersey, and branch offices in Bergen,
Morris and Passaic counties.
1ST BERGEN BANCORP
CONSOLIDATED STATEMENTS OF INCOME FOR THREE MONTHS ENDED
12/31/97 12/31/96
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Interest Income:
Loans 2,516,043 2,590,791
MBS's - HTM 913,329 841,566
MBS's - AFS 175,923 44,186
Investments - HTM 897,485 642,116
Securities - AFS 497,744 304,157
FHLB Stock 18,593 24,710
FHLB Deposits 75,550 47,593
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TOTAL INTEREST INCOME 5,094,667 4,495,119
Interest Expense:
Deposits 2,432,687 2,219,596
Advances from FHLB 424,080 0
--------- ---------
TOTAL INTEREST EXPENSE 2,856,767 2,219,596
Net Interest Income before Provision
for Loan Losses 2,237,900 2,275,523
Provision for Loan Losses 75,000 125,000
--------- ---------
NET INTEREST INCOME AFTER PROVISION 2,162,900 2,150,523
Non-Interest Income:
Loan Fees and Service Charges 49,165 47,098
Annuity Commissions 2,250 5,800
Other 33,689 4,143
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TOTAL NON-INTEREST INCOME 85,104 57,041
Non-Interest Expense:
Compensation and Employee Benefits 851,878 686,426
Commission Expense 0 860
Occupancy 76,067 69,900
Equipment 122,387 106,575
Advertising 62,626 54,913
Federal Insurance Premiums 35,151 97,821
Net Loss from REO 43,957 50,277
Insurance and Bond Premium 26,638 27,798
Other Expenses 299,427 372,805
--------- ---------
TOTAL NON-INTEREST EXPENSE 1,518,131 1,467,375
Income before Taxes 729,873 740,189
Federal and State Tax Expense 176,829 278,107
--------- ---------
NET INCOME 553,044 462,082
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1ST BERGEN BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
12/31/97 12/31/96
-------- --------
ASSETS:
Cash and Due from Banks 3,199,133 5,230,770
Interest-Bearing Deposits in Other Banks 0 2,500,000
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Total Cash and Cash Equivalents 3,199,133 7,730,770
Investment Securities Held to Maturity 46,903,262 33,135,851
MBS Securities Held to Maturity 52,457,620 51,768,925
Securities Available for Sale 41,090,336 19,596,895
MBS Securities Available for Sale 10,444,559 2,824,044
Loans Receivable 127,817,620 123,824,912
Premises and Equipment 3,018,603 2,699,113
Real Estate Owned 117,500 536,700
FHLB Stock 1,627,100 1,487,200
Accrued Interest and Dividends Receivable 2,094,060 1,466,434
Deferred Income Taxes 1,276,895 1,817,037
Other Assets 388,481 184,704
----------- -----------
TOTAL ASSETS 290,435,169 247,072,585
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LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits 217,426,098 204,154,213
Borrowing 31,334,000 0
Escrow 986,166 932,117
Accrued Income Taxes 596,948 591,679
Other Liabilities 822,265 159,993
----------- -----------
TOTAL LIABILITIES 251,165,477 205,838,002
TOTAL STOCKHOLDERS' EQUITY 39,269,692 41,234,583
----------- -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 290,435,169 247,072,585
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