Central Jersey Bancorp Reports Fourth Quarter Earnings.LONG BRANCH, N.J. -- (NASDAQ Capital Market Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005. [1] The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for : CJBK)--Central Jersey Bancorp, the parent company of Central Jersey Bank, N.A., reported net income of $759,000 for the three months ended December December: see month. 31, 2005, as compared to net income of $309,000 for the same period in 2004. The increase in reported earnings was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the combination of Central Jersey Bancorp and Allaire
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 three months ended December 31, 2005 were $0.10 and $0.09, respectively, as compared to $0.08 for both for the same period in 2004. Per share earnings have been adjusted in both periods to reflect the six-for-five stock split paid by Central Jersey Bancorp on July July: see month. 30, 2004 and the two-for-one stock split paid by Central Jersey Bancorp on July 1, 2005. The net income results for the three months ended December 31, 2005 include combination-related core deposit intangible amortization expense of $172,000 (pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ) and additional expense of $60,000 (pre-tax) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our compliance with Section 404 of the Sarbanes-Oxley Act See SOX. of 2002. For the year ended December 31, 2005, Central Jersey Bancorp reported net income of $2.6 million, as compared to $1.2 million in 2004. Basic and diluted earnings per share for the year ended December 31, 2005 were $0.34 and $0.31, respectively, as compared to $0.33 and $0.31, respectively, in 2004. The net income results for the year ended December 31, 2005 include combination-related core deposit intangible amortization expense of $688,000 (pre-tax) and additional expense of $240,000 (pre-tax) relating to our compliance with Section 404 of the Sarbanes-Oxley Act of 2002. George S George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). . Callas Cal·las , Maria Originally Maria Anna Sophia Cecilia Kalogeropoulos. 1923-1977. American soprano known for her technical capacity and dramatic intensity. Among her notable operatic roles was the title role in Bellini's Norma. , Chairman of the Board of Directors, and James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. S. Vaccaro, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented that, "2005 was a very challenging year for Central Jersey Bancorp. The successful combination with Allaire Community Bank has resulted in Central Jersey Bank, N.A. becoming the premier community bank on the Jersey Shore from both a strategic and an operating perspective. With fourteen branch locations and a higher legal lending limit of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.0 million resulting from the combination, we are better able to meet the banking needs of our loyal customers. In addition, operating efficiencies being realized from the combination are beginning to have a positive impact on our underlying cost structure and resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials earnings." Results of Operations Net interest income was $4.4 million for the three months ended December 31, 2005, as compared to $2.2 million for the same period in 2004, and was comprised primarily of $49,000 in interest on federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold and due from banks, $5.3 million in interest on loans and $1.4 million in interest on securities, less interest expense on deposits of $2.0 million, interest expense on borrowed funds of $211,000 and interest expense on subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before of $95,000. Net interest income was $17.4 million for the year ended December 31, 2005, as compared to $8.5 million in 2004, and was comprised primarily of $239,000 in interest on federal funds sold and due from banks, $18.7 million in interest on loans and $6.0 million in interest on securities, less interest expense on deposits of $6.6 million, interest expense on borrowed funds of $547,000 and interest expense on subordinated debentures of $340,000. The increase in both periods is due primarily to the combination with Allaire Community Bank. For the three months ended December 31, 2005, provision for loan losses was $212,000 as compared to $72,000 for the same prior year period. The increase is due primarily to strong loan growth that occurred during the three months ended December 31, 2005. For the year ended December 31, 2005, provision for loan losses was $426,000, as compared to $260,000 in 2004. The increase in the provision for loan losses for the year ended December 31, 2005 was commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the growth in the loan portfolio as compared to the prior year. Non-interest income, which consists of service charges on deposit accounts, income from bank owned life insurance and fees from the gain on sale of residential mortgages, was $470,000 for the three months ended December 31, 2005, as compared to $210,000 for the same period in 2004. Non-interest income was $1.6 million for the year ended December 31, 2005, as compared to $849,000 in 2004. The increase in both periods is due primarily to the combination with Allaire Community Bank and fee income derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the gain on sale of residential mortgages which commenced operations in the latter part of 2005. Non-interest expense was $3.5 million for the three months ended December 31, 2005, as compared to $1.9 million for the same period in 2004. Non-interest expense generally includes costs associated with employee salaries and benefits, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses, data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a fees, professional fees, core deposit intangible amortization, and other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Non-interest expense was $14.6 million for the year ended December 31, 2005, as compared to $7.1 million in 2004. The increase in both periods is due primarily to the combination with Allaire Community Bank. As a result of the combination with Allaire Community Bank, full-time equivalent Full-time equivalent (FTE) is a way to measure a worker's involvement in a project, or a student's enrollment at an educational institution. An FTE of 1.0 means that the person is equivalent to a full-time worker, while an FTE of 0.5 signals that the worker is only half-time. employees totaled 152 at December 31, 2005, as compared to 82.5 at December 31, 2004. Financial Condition Central Jersey Bancorp's assets, at December 31, 2005, totaled $514.7 million, an increase of $260.6 million, or 103%, over the pre-combination December 31, 2004 total of $254.1 million. This increase in total assets was primarily attributable to the combination of Central Jersey Bancorp and Allaire Community Bank. The total assets figure of $514.7 million at December 31, 2005, is inclusive of inclusive of prep. Taking into consideration or account; including. $27.0 million in goodwill and $3.1 million in core deposit intangible recorded in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the combination with Allaire Community Bank. Cash and cash equivalents were $21.2 million at December 31, 2005, an increase of approximately $2.6 million, or 14.0%, over the pre-combination December 31, 2004 total of $18.6 million. Effective January 1, 2005, the combination with Allaire Community Bank increased cash and cash equivalents by $6.9 million. On a combined basis at January 1, 2005, total cash and cash equivalents were $26.0 million, which was $4.8 million, or 22.6%, greater than the December 31, 2005 total of $21.2 million. Investments totaled $134.0 million at December 31, 2005, an increase of $43.8 million, or 48.6%, over the December 31, 2004 total of $90.2 million. Effective January 1, 2005, the combination with Allaire Community Bank increased investment securities by $65.7 million. On a combined basis at January 1, 2005, total investment securities were $155.9 million, which was $21.9 million, or 14.0%, greater than the December 31, 2005 total of $134.0 million. The Company's investment portfolio decreased during the year ended December 31, 2005 as a result of principal pay downs on mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. totaling $13.1 million and called investment securities totaling $8.8 million. The proceeds were used to fund loan growth that occurred during the year. Loans held for sale totaled $3.1 million at December 31, 2005 as compared to no loans held for sale at December 31, 2004. The reason for the increase is due primarily to the commencement of a residential mortgage department and the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of residential mortgages held for sale in 2005. Loans, net of the allowance for loan losses, closed the year ended December 31, 2005 at $307.2 million, an increase of $167.5 million, or 120%, over the $139.7 million balance at December 31, 2004. Effective January 1, 2005, the combination with Allaire Community Bank increased net loans by $119.4 million. On a combined basis at January 1, 2005, total net loans were $259.1 million, which was $48.1 million, or 18.6%, lower than the December 31, 2005 total of $307.2 million. The increase in net loans during the year ended December 31, 2005 was the result of loan portfolio growth. Deposits at December 31, 2005 totaled $407.6 million, an increase of $174.7 million, or 75.0%, over the December 31, 2004 total of $232.9 million. Effective January 1, 2005, the combination with Allaire Community Bank increased deposits by $170.0 million. On a combined basis at January 1, 2005, total deposits were $402.7 million, which was $4.9 million, or 1.2%, lower than the December 31, 2005 total of $407.6 million. Other borrowings were $38.2 million at December 31, 2005, as compared to no borrowings at December 31, 2004. These borrowings, which are short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. in nature, were used to fund loan growth during the year ended December 31, 2005. Effective January 1, 2005, the combination with Allaire Community Bank increased borrowings by $14.9 million, which was $23.3 million, or 156%, lower than the December 31, 2005 total of $38.2 million. At December 31, 2005, book value per share and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share were $7.91 and $4.04, respectively, as compared to $4.26 for both at December 31, 2004. The increase in book value per share is due primarily to the $27.0 million in goodwill and $3.1 million in core deposit intangible recorded in conjunction with the combination with Allaire Community Bank. Asset Quality The allowance for loan losses, which began the year at $1.64 million, or 1.16% of total loans, was $3.17 million at December 31, 2005, with the allowance for loan losses ratio at 1.02%. There were three loans totaling $93,000 charged-off during the year ended December 31, 2005. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. totaled $79,000 at December 31, 2005, as compared to $144,000 at December 31, 2004. About the Company Central Jersey Bancorp is the holding company and sole shareholder of Central Jersey Bank, N.A., the national banking entity resulting from the August 22, 2005 combination of Monmouth Monmouth, city, United States Monmouth, city (1990 pop. 9,489), seat of Warren co., W Ill.; inc. 1852. Located in a farm area, it is a trade center with a packing plant. Manufactures include pottery, farm tools, and feed. Monmouth College is in the city. Community Bank, N.A. and Allaire Community Bank. Central Jersey Bank, N.A. provides a full range of banking services to both individual and business customers through fourteen branch facilities located in Monmouth and Ocean Counties, New Jersey. Central Jersey Bancorp is traded on the NASDAQ Capital Market under the trading symbol Trading symbol See: Ticker symbol "CJBK". Central Jersey Bank, N.A. can be accessed through the internet at www.CJBNA.com. Forward Looking Statements Statements about the future expectations of Central Jersey Bancorp and its subsidiary, Central Jersey Bank, N.A., including future revenues and earnings, and all other statements in this press release other than historical facts are "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. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Since these statements involve risks and uncertainties and are subject to change at any time, the companies' actual results could differ materially from expected results. Among these risks, trends and uncertainties are the effect of governmental regulation on Central Jersey Bank, N.A., the availability of working capital, the cost of personnel, and the competitive market in which Central Jersey Bank, N.A. competes.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005 (UNAUDITED) AND DECEMBER 31, 2004
(dollars in thousands)
December 31, December 31,
2005 2004
----------- -----------
ASSETS (unaudited)
------
Cash and due from banks $ 21,228 $ 9,169
Federal funds sold -- 9,425
Investment securities available for sale,
at market value 111,464 73,668
Investment securities held to maturity
(market value of $22,058 (unaudited) and
$16,549 at December 31, 2005 and December
31, 2004, respectively) 22,567 16,484
Loans held for sale 3,127 --
Loans, net 307,168 139,697
Premises and equipment 6,006 2,496
Bank owned life insurance 3,338 --
Accrued interest receivable 2,636 1,075
Goodwill 26,983 --
Core deposit intangible 3,097 --
Other assets 7,132 2,101
----------- -----------
Total assets $ 514,746 $ 254,115
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Deposits:
Non-interest bearing $ 91,297 $ 29,897
Interest bearing 316,257 202,956
----------- -----------
407,554 232,853
Other borrowings 38,191 --
Subordinated debentures 5,155 5,155
Accrued expenses and other liabilities 2,314 252
----------- -----------
Total liabilities 453,214 238,260
----------- -----------
Shareholders' equity:
Common stock, par value $0.01 per
share. Authorized 100,000,000 shares
and issued and outstanding 7,776,804
and 3,721,450 shares at December 31,
2005 and 2004, respectively. 78 38
Additional paid-in capital 59,574 15,218
Accumulated other comprehensive loss, net
of tax benefit (1,970) (619)
Retained earnings 3,850 1,218
----------- -----------
Total shareholders' equity 61,532 15,855
----------- -----------
Total liabilities and shareholders'
equity $ 514,746 $ 254,115
=========== ===========
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2005 AND 2004
(dollars in thousands, except per share amounts)
Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
---------- ---------- ---------- ----------
(unaudited)
Interest and dividend
income:
Interest and fees on
loans $ 5,273 $ 2,274 $ 18,726 $ 8,206
Interest on
securities available
for sale 1,148 628 4,891 2,517
Interest on
securities held to
maturity 261 181 1,091 714
Interest on federal
funds sold and due
from banks 49 58 239 114
---------- ---------- ---------- ----------
Total interest and
dividend income 6,731 3,141 24,947 11,551
Interest expense:
Interest expense on
deposits 1,982 847 6,615 2,836
Interest expense on
subordinated
debentures 95 69 340 193
Interest expense on
other borrowings 211 1 547 17
---------- ---------- ---------- ----------
Total interest
expense 2,288 917 7,502 3,046
---------- ---------- ---------- ----------
Net interest income 4,443 2,224 17,445 8,505
---------- ---------- ---------- ----------
Provision for loan
losses: 212 72 426 260
---------- ---------- ---------- ----------
Net interest income
after provision
for loan losses 4,231 2,152 17,019 8,245
---------- ---------- ---------- ----------
Other income:
Service charges on
deposit accounts 332 210 1,401 830
Income on bank owned
life insurance 28 -- 112 --
Other service
charges, commissions
and fees 110 -- 111 19
---------- ---------- ---------- ----------
Total other income 470 210 1,624 849
---------- ---------- ---------- ----------
Operating expenses:
Salaries and employee
benefits 1,832 953 7,287 3,619
Net occupancy
expenses 379 232 1,718 844
Data processing fees 207 153 937 571
Core deposit
intangible
amortization 172 -- 688 --
Other operating
expenses 942 521 3,920 2,064
---------- ---------- ---------- ----------
Total other
expenses 3,532 1,859 14,550 7,098
---------- ---------- ---------- ----------
Income before provision
for income taxes 1,169 503 4,093 1,996
Income taxes 410 194 1,461 778
---------- ---------- ---------- ----------
Net income $ 759 $ 309 $ 2,632 $ 1,218
========== ========== ========== ==========
Basic earnings per
share $ .10 $ .08 $ .34 $ .33
========== ========== ========== ==========
Diluted earnings per
share $ .09 $ .08 $ .31 $ .31
========== ========== ========== ==========
Average basic shares
outstanding 7,776,804 3,721,450 7,754,487 3,721,376
========== ========== ========== ==========
Average diluted shares
outstanding 8,439,645 3,953,193 8,484,869 3,922,962
========== ========== ========== ==========
Performance Ratios (unaudited)
(dollars in thousands)
----------------------------------------------------------------------
3 Months Ended Year Ended
December 31, December 31,
----------------------------------------------------------------------
Ratio 2005 2004 2005 2004
----------------------------------------------------------------------
Return on average assets 0.60% 0.48% 0.54% 0.50%
----------------------------------------------------------------------
Return on average tangible assets 0.64% 0.48% 0.58% 0.50%
----------------------------------------------------------------------
Return on average equity 4.87% 7.83% 4.31% 7.94%
----------------------------------------------------------------------
Return on average tangible equity 9.48% 7.83% 8.51% 7.94%
----------------------------------------------------------------------
Efficiency ratio 71.90% 76.34% 76.30% 75.89%
----------------------------------------------------------------------
Efficiency ratio (less core
deposit intangible amortization
expense) 68.39% 76.34% 72.69% 75.89%
----------------------------------------------------------------------
Operating expense ratio 2.79% 2.89% 2.98% 2.93%
----------------------------------------------------------------------
Interest rate margin 3.93% 3.58% 4.03% 3.64%
----------------------------------------------------------------------
----------------------------------------------------------------------
Ratio Calculations
----------------------------------------------------------------------
Efficiency ratio:
----------------------------------------------------------------------
Net interest income $4,442 $2,224 $17,446 $8,504
----------------------------------------------------------------------
Non-interest Income 471 210 1,624 849
----------------------------------------------------------------------
Total revenue 4,913 2,434 19,070 9,353
----------------------------------------------------------------------
Non-interest expense $3,532 $1,858 $14,550 $7,098
----------------------------------------------------------------------
Ratio 71.90% 76.34% 76.30% 75.89%
----------------------------------------------------------------------
----------------------------------------------------------------------
Efficiency ratio (less core
deposit intangible amortization
expense):
----------------------------------------------------------------------
Net interest income $4,442 $2,224 $17,446 $8,504
----------------------------------------------------------------------
Non-interest Income 471 210 1,624 849
----------------------------------------------------------------------
Total revenue 4,913 2,434 19,070 9,353
----------------------------------------------------------------------
Non-interest expense 3,532 1,858 14,550 7,098
----------------------------------------------------------------------
Less: Core deposit
amortization
expense (172) -- (688) --
----------------------------------------------------------------------
Non-interest expense (less
core deposit intangible
amortization expense) $3,360 $1,858 $13,862 $7,098
----------------------------------------------------------------------
Ratio 68.39% 76.34% 72.69% 75.89%
----------------------------------------------------------------------
----------------------------------------------------------------------
Operating expense ratio:
----------------------------------------------------------------------
Average assets $501,500 $255,183 $487,512 $242,277
----------------------------------------------------------------------
Non-interest expense $3,532 $1,858 $14,550 $7,098
----------------------------------------------------------------------
Ratio * 2.79% 2.89% 2.98% 2.93%
----------------------------------------------------------------------
* Annualized for the three months
ended December 31, 2005 and 2004
----------------------------------------------------------------------
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