American Bancorp of New Jersey, Inc. Announces Second Quarter 2006 Earnings.BLOOMFIELD Bloomfield. 1 Town (1990 pop. 19,483), Hartford co., N Conn., a suburb of Hartford, in a tobacco and dairy region; settled c.1642, inc. 1835. Helicopter parts are made there. 2 City (1990 pop. 45,061), Essex co., NE N.J. , N.J. -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of 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 $688,000 for the quarter ended March 31, 2006. By comparison, net income for the quarters ended December December: see month. 31, 2005 and March 31, 2005 were $663,000 and $584,000, respectively. 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 March 31, 2006 were $0.05 and $0.05, respectively. By comparison, for the quarter ended December 31, 2005 both basic and diluted earnings per share were $0.05. For the quarter ended March 31, 2005, both basic and diluted earnings per share 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 October: see month. 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 and margin for the quarter ended March 31, 2006 improved from the prior quarter ended December 31, 2005. For those comparative periods, the Company's net interest spread improved by 4 basis points from 1.87% to 1.91% while its net interest margin improved 9 basis points from 2.71% to 2.80%. In large part, this improvement in net interest spread and margin was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's continued reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of incoming cash flows from the investment securities portfolio into higher yielding loans. For the quarter ended March 31, 2006, loans receivable, net increased $17.8 million or 5.0% to $372.0 million from $354.2 million at December 31, 2005. The growth was comprised of net increases in multi-family, commercial real estate and construction loans totaling $9.3 million, coupled with net increases in commercial and business loans totaling $2.8 million. Together, net growth in these loan balances totaled $12.1 million comprising approximately two-thirds of the Company's net increase in loans receivable for the quarter. The remaining net growth in loans included increases in 1-4 family mortgages, including equity loans and home equity lines of credit, totaling $5.9 million. For that same period, the balance of the Company's investment securities decreased $8.4 million while its interest bearing cash equivalents also decreased $10.6 million. The combined decrease in these categories of approximately $19.0 million provided the funding for the net growth in loans reported for the quarter ended March 31, 2006. Deposits increased by $2.2 million or 0.7% to $329.2 million at March 31, 2006 from $327.0 million at December 31, 2005. This increase was primarily attributable to net growth of approximately $2.0 million of interest bearing savings and certificates of deposit. Offsetting this growth in deposits was a decrease of $1.3 million in borrowings due largely to the repayment of a maturing Federal Home Loan Bank advance. Notwithstanding these comparisons of the past two consecutive quarters, the Company's net interest spread of 1.91% for the current quarter was still below its net interest spread of 2.41% for the same comparative period in 2005 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 comparatively higher average balance of investment securities and 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 receipt of capital proceeds from the Company's second step conversion which were deployed into such assets throughout the prior quarter ended December 31, 2005. 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 82 basis points from 2.02% for the quarter ended March 31, 2005 to 2.84% for the quarter ended March 31, 2006. For the same comparative periods, yield on loans increased 2 basis points from 5.36% to 5.38%. 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 have been 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 9 basis points from 2.71% for the quarter ended March 31, 2005 to 2.80% for the quarter ended March 31, 2006. Overall balance sheet growth and improvements in net interest margin contributed significantly to a $620,000 or 21.8% improvement in net interest income from $2.8 million for the quarter ended March 31, 2005 to $3.5 million for the quarter ended March 31, 2006. This improvement was offset, in part, by comparatively higher provisions for loan losses. For those same comparative periods, the loan loss provision increased $89,000 from $70,000 to $159,000 due primarily to comparatively higher net growth in commercial loans. Noninterest income increased $82,000 from $290,000 for the quarter ended March 31, 2005 to $372,000 for the quarter ended March 31, 2006. This improvement was due largely to increases in deposit service fees and charges coupled with comparatively higher loan prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fees. These comparative improvements in net interest and noninterest income were partially offset by increases to noninterest expense. Noninterest expense increased $410,000 from $2.2 million for the quarter ended March 31, 2005 to $2.6 million for the quarter ended March 31, 2006. This increase was primarily attributable to growth in salary and employee benefits costs which increased $354,000 for those same comparative periods. Such increases resulted from executive and lending staffing additions coupled with overall annual increases in employee compensation and benefits. Additionally, professional and consulting fees increased $38,000 to $137,000 for the quarter ended March 31, 2006 from $99,000 for the same quarter in 2005. In large part, these increases were attributable to audit and consulting costs incurred by the Company relating to compliance with the Sarbanes Oxley Oxley refers to several things: People
The following table presents selected comparative financial data for the periods ended March 31, 2006, December 31, 2005 and September September: see month. 30, 2005 and selected comparative operating data for the quarters ended March 31, 2006, December 31, 2005 and March 31, 2005:
FINANCIAL HIGHLIGHTS
(unaudited)
At
March 31, December 31, September 30,
2006 2005 2005
---------- ------------ -------------
(In thousands)
SELECTED FINANCIAL DATA:
Total Assets $ 516,278 $ 516,924 $ 555,860
Cash and cash equivalents 18,905 30,017 125,773
Securities available-for-sale 92,873 100,752 62,337
Securities held-to-maturity 11,887 12,373 7,824
Loans receivable, net 371,979 354,207 341,006
Loans held for sale 419 - 280
Federal Home Loan Bank stock 3,121 3,180 3,119
Deposits 329,190 327,036 340,925
Total borrowings 52,405 53,719 53,734
Total equity 128,630 129,755 39,506
3 months ended
March 31, December 31, March 31,
2006 2005 2005
---------- ------------ -------------
(In thousands)
SELECTED OPERATING DATA:
Total interest income $ 6,239 $ 6,091 $ 5,089
Total interest expense 2,773 2,712 2,243
---------- ------------ -------------
Net interest income 3,466 3,379 2,846
Provision for loan losses 159 86 70
---------- ------------ -------------
Net interest income after
provision for loan losses 3,307 3,293 2,776
Non interest income 372 26 290
Non interest expense 2,564 2,245 2,154
---------- ------------ -------------
Income before income taxes 1,115 1,074 912
Income tax provision 427 411 328
---------- ------------ -------------
Net income $ 688 $ 663 $ 584
========== ============ =============
PER SHARE DATA:
Earnings per share
Basic $ 0.05 $ 0.05 $ 0.04
Diluted $ 0.05 $ 0.05 $ 0.04
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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements. |
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