EXHIBIT 99
PRESS RELEASE
WOOD-RIDGE, NEW JERSEY, July 28, 1998 - 1st Bergen Bancorp
(NASDAQ/NMS:FBER), the holding company for South Bergen Savings Bank, announced
net income for the second quarter ended June 30, 1998, of $550,000, compared to
net income of $570,000 for the same period last year and an increase of 6.0%
over the $519,000 earned for the prior quarter.
The $20,000 decrease in earnings over the prior year reflects, in part, a
decline in net interest income. This decline is partially attributable to the
Company experiencing high levels of prepayments in higher yielding mortgage
loans, and reinvesting these proceeds in loans and U.S. Agency securities
bearing lower current yields. To offset the decline in interest revenue caused
by these prepayments, the Company has implemented a leveraging strategy pursuant
to which the Company may take low rate advances from the Federal Home Loan Bank
of New York and invest such borrowings in U.S. Agency securities. At June 30,
the Company had $39.5 million in outstanding borrowings. In addition, the
Company has been emphasizing higher yielding loan products, such as home equity
loans. The decrease in net income also reflects higher non-interest expenses,
including expenses related to the implementation of stock benefit plans adopted
by the Company after its mutual-to-stock conversion.
The Company earned $0.24 cents and $0.23 cents per share on a basic and
diluted basis, respectively, for the quarter ended June 30, 1998, compared to
$0.21 cents per share on a basic and diluted basis for the same period last
year.
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Net interest income before provision for loan losses was $2.3 million for
the three months ended June 30, 1998, as compared to $2.4 million for the same
period last year. The provision for loan losses was $75,000 for the quarter
ended June 30, 1998, compared to $125,000 for the same quarter in the prior
year. Non-interest income and non-interest expense totalled $100,000 and $1.5
million, respectively, for the three months ended June 30, 1998, as compared to
$57,000 and $1.4 million, respectively, for the same period in the prior year.
Total assets at June 30, 1998, were $300.8 million versus $290.4 million at
December 31, 1997, an increase of 3.6%. Net loans totalled $129.9 million at
June 30, 1998, compared to $127.8 million at December 31, 1997, an increase of
$2.2 million, or 1.7%.
The ratio of non-performing loans to total assets was 0.78% at June 30,
1998, and 0.71% at December 31, 1997. The ratio of non-performing assets to
total assets was 0.78% at June 30, 1998, as compared to 0.74% at December 31,
1997. There was no real estate owned at June 30, 1998, as compared to $118,000
at December 31, 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.
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1ST BERGEN BANCORP
CONSOLIDATED STATEMENTS OF INCOME FOR THREE MONTHS ENDED
(UNAUDITED)
6/30/98 6/30/97
------- -------
Interest Income:
Loans receivable ........................................................ $2,581,253 $2,530,272
Investment securities held to maturity .................................. 590,254 856,946
Investment securities available for sale ................................ 1,235,898 437,892
Mortgage-backed securities held to maturity ............................. 705,926 895,930
Mortgage-backed securities available for sale ........................... 187,068 83,273
FHLB stock .............................................................. 48,603 25,354
FHLB deposits ........................................................... 72,460 53,497
---------- ----------
TOTAL INTEREST INCOME ..................................................... $5,421,462 $4,883,164
Interest Expense:
Deposit ................................................................. $2,463,209 $2,325,419
Advances from FHLB ...................................................... 658,283 223,892
---------- ----------
TOTAL INTEREST EXPENSE .................................................... $3,121,492 $2,549,311
Net interest income before provision for loan losses ...................... $2,299,970 $2,333,853
Provision for loan losses ................................................. 75,000 125,000
---------- ----------
NET INTEREST INCOME AFTER PROVISION ....................................... $2,224,970 $2,208,853
Non-interest income:
Loan fees and service charges ........................................... $ 46,049 $ 43,635
Other 54,163 13,662
---------- ----------
TOTAL NON-INTEREST INCOME ................................................. $ 100,212 $ 57,297
Non-interest expense:
Compensation and employee benefits ...................................... $ 885,697 $ 815,653
Occupancy ............................................................... 67,500 78,280
Equipment ............................................................... 134,023 109,321
Advertising ............................................................. 52,891 55,521
Federal insurance premiums .............................................. 34,784 34,815
Net gain (loss) from REO ................................................ 5,650 (48,467)
Insurance and bond premium .............................................. 23,510 31,448
Other expenses .......................................................... 277,314 316,734
---------- ----------
TOTAL NON-INTEREST EXPENSE ................................................ $1,481,369 $1,393,305
Income before taxes ....................................................... 843,813 872,845
Federal and state tax expense ............................................. 293,780 302,398
---------- ----------
NET INCOME ................................................................ $ 550,033 $ 570,447
========== ==========
Earnings per share - basic ................................................ $ 0.24 $ 0.21
Earnings per share - diluted .............................................. $ 0.23 $ 0.21
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1ST BERGEN BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
6/30/98 12/31/97
------- --------
ASSETS:
Cash and due from banks ............................................ $ 3,696,541 $ 3,199,133
Interest-bearing deposits in other banks ........................... 2,487 0
------------ ------------
Total Cash and Cash Equivalents ...................................... 3,699,028 3,199,133
Loans receivable ................................................... $129,935,826 $127,817,620
Mortgage-backed securities held to maturity ........................ 38,373,622 52,457,620
Mortgage-backed securities available for sale ...................... 11,023,851 10,444,559
Investment securities held to maturity ............................. 31,314,209 46,903,262
Investment securities available for sale ........................... 76,586,992 41,090,336
FHLB stock ......................................................... 2,616,700 1,627,100
Real estate owned .................................................. 0 117,500
Premises and equipment ............................................. 3,028,847 3,018,603
Accrued interest and dividends receivable .......................... 2,321,947 2,094,060
Deferred income taxes .............................................. 1,228,687 1,186,983
Other assets ....................................................... 625,474 388,481
------------ ------------
TOTAL ASSETS ......................................................... $300,755,183 $290,345,257
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits ........................................................... $224,169,524 $217,426,098
Borrowing .......................................................... 39,500,000 31,334,000
Escrow ............................................................. 1,035,706 986,166
Accrued income taxes ............................................... 563,011 507,036
Other liabilities .................................................. 601,407 822,265
------------ ------------
TOTAL LIABILITIES .................................................... 265,869,648 251,075,565
TOTAL STOCKHOLDERS' EQUITY ........................................... 34,885,535 39,269,692
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY ............................. $300,755,183 $290,345,257
============ ============
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