Business & Finance
Business and Finance
Business and Finance
Fri, July 29, 2011 Community Bank of Bergen County, NJ Reports Restatement of 2010 Financial Statements
MAYWOOD, N.J.--([ BUSINESS WIRE ])--Community Bank of Bergen County, NJ (OTCBB: CMTB) reported today the restatement of its unaudited financial statements for the 12-month period ended December 31, 2010, As a result, the Banka™s net income for such period was revised downward by $830,000.
This correction was discovered during the completion of the outside audit of the Banka™s financial statements for the 15-month period ended December 31, 2010. The period audited for the 2010 financial statements was increased from 12 to 15 months due to the Banka™s decision in 2010 to change its fiscal year end from September 30 to December 31 going forward.
The audit for the 15 months ended December 31, 2010 necessitated certain line item adjustments that were previously unrecorded but were brought to light as a result of the audit. The majority of adjustments affected the Balance Sheet in both Other Assets and Other Liabilities relating to deferred tax assets and current tax liabilities. An adjustment related to the Allowance for Loan Losses was made as well.
The income statement was also affected by these adjusting entries to the extent of approximately $723,000 in additional tax expense for the period and an additional $107,000 in provision for loan loss reserves, for a total downward adjustment of $830,000.
Below are the restated comparative balance sheet and income statement.
About Community Bank of Bergen County, NJ
Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with four locations in Rochelle Park, Maywood, Fair Lawn and Garfield. Dedicated to superior service, the bank offers a range of customized personal and business banking products as well as the convenience of online banking services. Through its partnership with the StarSF/Allpoint network, CBBC also offers its customers access to more than 36,000 surcharge-free ATMs nationwide.
With lending decisions made locally, and a responsive management team, Community Bank of Bergen County is committed to providing an exceptional banking experience.
For more information visit the Banka™s web site at [ www.cbbcnj.com ].
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||
AS OF: | ||||||
| December 31, 2010 | December 31, 2009 | |||||
| (Unaudited) | (Unaudited) | |||||
| Restated | ||||||
| Assets | Dollars in Thousands | Dollars in Thousands | ||||
| Cash and balances due from depository institutions: | ||||||
| Non-interest-bearing balances and currency and coin | $ | 4,899 | $ | 4,637 | ||
| Interest-bearing balances | 12,384 | 19,396 | ||||
| Securities | ||||||
| Held-to-maturity securities | 41,277 | 38,798 | ||||
| Available-for-sale securities | 14,081 | 7,088 | ||||
| Federal funds sold | 2,000 | 2,010 | ||||
| Loans and lease financing receivables: | ||||||
| Loans and leases, net of unearned income | $ | 223,604 | $ | 219,176 | ||
| LESS: Allowance for loan and lease losses | 3,442 | 3,076 | ||||
| Loans and leases, net of allowance | 220,162 | 216,100 | ||||
| Premises and fixed assets (including capitalized leases) | 7,404 | 8,128 | ||||
| Other Real Estate Owned | 604 | 31 | ||||
| Other assets | 7,222 | 6,139 | ||||
| Total Assets | $ | 310,033 | $ | 302,327 | ||
| Liabilities | ||||||
| Deposits: | ||||||
| Interest-bearing | $ | 236,186 | $ | 224,897 | ||
| Non-interest-bearing | 45,234 | 49,846 | ||||
| Total deposits | $ | 281,420 | $ | 274,743 | ||
| Other liabilities | 2,872 | 2,416 | ||||
| Total Liabilities | 284,292 | 277,159 | ||||
| Equity Capital | ||||||
Common Stock (1,800,000 shares authorized, $5 par value; 1,664,374 outstanding at December 31, 2010 and 2009 | ||||||
| 8,640 | 8,640 | |||||
| Surplus | 3,968 | 3,968 | ||||
| Treasury Stock | (1,501) | (1,501) | ||||
| Stock Options | 127 | 99 | ||||
| Retained earnings | 14,253 | 13,878 | ||||
| Accumulated other comprehensive income | 254 | 84 | ||||
| Total Equity Capital | 25,741 | 25,168 | ||||
| Total Liabilities, and Equity Capital | $ | 310,033 | $ | 302,327 | ||
| Capital Ratios: | ||||||
| Tier 1 leverage ratio | 8.16% | 8.23% | ||||
| Tier 1 risk-based capital ratio | 11.61% | 11.81% | ||||
| Total risk-based capital ratio | 12.86% | 13.06% | ||||
COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY | ||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||
| Twelve Months Ended | |||||
December 31, | ||||||
2010 | 2009 | |||||
Revised | ||||||
| (Unaudited) | ||||||
| Income Statement | Dollars in Thousands | |||||
| Interest and fee income: | ||||||
| Interest and fee income on loans | $ | 13,514 | $ | 13,720 | ||
| Interest income on balances due from depository institution | 26 | 49 | ||||
| Interest and dividend income on securities | 1,235 | 1,333 | ||||
| Interest on federal funds sold | 6 | 16 | ||||
| Other interest income | 24 | 24 | ||||
| Total Interest and fee income | 14,805 | 15,142 | ||||
| Interest Expense: | ||||||
| Interest on deposits | 3,805 | 5,241 | ||||
| Total Interest expense | 3,805 | 5,241 | ||||
| Net Interest Income | 11,000 | 9,901 | ||||
| Provision for Loan Losses | 1,382 | 1,930 | ||||
| Non-Interest Income: | ||||||
| Service charges on deposit accounts | 460 | 550 | ||||
| Net servicing fees | 266 | 269 | ||||
| Net Losses on sale of OREO | (236) |
| ||||
| Net Gains on sale of Assets | 733 |
| ||||
| Other non-interest income | 6 |
| 4 | |||
| Total non-interest income | 1,229 | 823 | ||||
| Realized gains (losses) on securities |
| 1 | ||||
| Non-interest expenses | ||||||
| Salaries and employee benefits | 4,451 | 4,377 | ||||
| Expenses on premises and fixed assets | 1,471 | 1,402 | ||||
| Other non-interest expenses | 3,331 | 3,167 | ||||
| Total non-interest expenses | 9,253 | 8,946 | ||||
| Income before Income taxes: | 1,594 | (151) | ||||
| Income taxes (benefit) | 402 | (245) | ||||
| Net Income | $ | 1,192 | $ | 94 | ||
Earnings per Share | $ | 0.72 | $ | 0.06 | ||
Forward-Looking Statements
This press release and other statements made from time to time by Community Bank of Bergen County's management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, capital, liquidity and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy of the country in general and how it is affectingthe financial industry specifically; volatility in interest rates and the shape of the yield curve; increased credit risks and risks associated with the real estate market; the potential for increased non-performing loans;operating, legal, and regulatory risk; economic, political, and competitive forces affecting the company's lines of business; the extent and timing of actions of the Federal Reserve Board; customer acceptance of our products and services; and other risks and uncertainties. Any statements made that are not historical facts should be considered to be forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate, whether as a result of new information or the occurrence of future events, except as may be required by applicable law or regulation.
