American Bancorp of New Jersey, Inc. Announces First Quarter 2006 Earnings.BLOOMFIELD, N.J. -- American Bancorp of New Jersey, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABNJ ABNJ American Bancorp of New Jersey, Inc ) ("American") announced today earnings of $663,000 for the quarter ended December 31, 2005 as compared to $610,000 for the quarter ended December 31, 2004. Basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter ended December 31, 2005 were $0.05 and $0.05, respectively. By comparison, both basic and diluted earnings per share for the quarter ended December 31, 2004 were $0.04 after adjusting for the exchange of shares relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's recent second-step conversion. On October 5, 2005, American Savings, MHC MHC major histocompatibility complex. MHC abbr. major histocompatibility complex MHC major histocompatibility complex. closed its second step conversion. Through this transaction, the Company replaced ASB ASB Asbestos ASB Arbeiter Samariter Bund (German medical help organisation) ASB Anti-Social Behaviour ASB Accounting Standards Board (UK FRC) ASB Aarhus School of Business Holding Company as the holding company of American Bank of New Jersey, a federally chartered stock savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. which conducts business from its main office in Bloomfield, New Jersey and one branch office in Cedar Grove Cedar Grove can refer to: Locations
The Company's net interest spread declined to 1.87% for the current quarter in comparison to 2.32% for the same comparative period in 2004 as increases in the Company's cost of interest bearing liabilities continued to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the increase in the Company's yield on earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin . This decline was attributable, in part, to the Company maintaining a high average balance of short term, liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. during the quarter. These balances resulted from the initial receipt of capital proceeds from the Company's second step conversion which were deployed into higher yielding investment securities throughout the quarter. Additionally, continued upward pressure on the cost of retail deposits resulted in increases in interest expense which outpaced the increase in interest income resulting from improved yields on loans. The cost of interest bearing deposits increased 69 basis points from 1.98% for the quarter ended December 31, 2004 to 2.67% for the quarter ended December 31, 2005. For the same comparative periods, yield on loans increased 8 basis points from 5.29% to 5.37%. The factors resulting in the compression of the Company's net interest spread also impacted the Company's net interest margin. However, the effects of that compression were more than offset by the impact of the additional capital raised in the Company's second-step conversion. As a result, the Company's net interest margin increased 8 basis points from 2.63% for the quarter ended December 31, 2004 to 2.71% for the quarter ended December 31, 2005. For the quarter ended December 31, 2005, loans receivable, net increased $13.2 million or 3.9% to $354.2 million from $341.0 million at September 30, 2005. The growth was comprised of net increases in multi-family, commercial real estate and construction loans totaling $5.5 million coupled with net increases in commercial and business loans totaling $1.1 million. Together, net growth in these loan balances totaled $6.6 million comprising approximately half of the Company's net increase in loans receivable for the quarter. The remaining net growth in loans included increases in one-to-four family mortgages, including equity loans and home equity lines of credit, totaling $6.7 million. Deposits decreased by $13.9 million or 4.1% to $327.0 million at December 31, 2005 from $340.9 million at September 30, 2005. This decrease was primarily attributable to $9.8 million of deposit balances withdrawn to purchase shares in the Company's stock offering. The remaining $4.1 million of net deposit withdrawals were primarily attributable to aggressive deposit competition in the markets served by the Company. Overall balance sheet growth and improvements in net interest margin contributed significantly to a $655,000 or 24.0% improvement in net interest income from $2.7 million for the quarter ended December 31, 2004 to $3.4 million for the quarter ended December 31, 2005. However, improvements in net interest income were partially offset by comparatively lower noninterest income and higher noninterest expense. Noninterest income declined $221,000 from $247,000 for the quarter ended December 31, 2004 to $26,000 for the quarter ended December 31, 2005. This reduction was primarily attributable to a $271,000 loss on sale of an underperforming investment security during the most recent quarter. Excluding that loss, comparative quarterly noninterest income increased by $50,000 due largely to increases in loan related fee income and improvement in income from cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of life insurance. Noninterest expense increased $288,000 from $2.0 million for the quarter ended December 31, 2004 to $2.2 million for the quarter ended December 31, 2005. The comparative increase in noninterest expense was diminished by the reversal of previously accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of expenses totaling $131,000 in the quarter ended December 31, 2005. Excluding this item, comparative quarterly noninterest expense increased $419,000. This increase was attributable, in part, to executive and lending staffing additions coupled with overall annual increases in employee compensation and benefits. Additionally, the Company recorded restricted stock plan and stock options benefit plan expenses for the quarter ended December 31, 2005 of $148,000. Such expenses were not recorded for the quarter ended December 31, 2004 which preceded each plan's approval by shareholders on January 20, 2005. Professional and consulting fees also increased $52,000 to $119,000 for the quarter ended December 31, 2005 from $67,000 for the same quarter in 2004. In large part, these increases were attributable to consulting costs incurred by the Company relating to compliance with the Sarbanes Oxley Act of 2002 and the outsourcing of other internal audit-related services. The foregoing material contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning our financial condition, results of operations and business. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements. We do not undertake, and specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. , any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. |
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