Community Partners Bancorp (CPBC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Community Partners Bancorp has a market cap of $38.45 million; its shares were traded at around $5.09 with a P/E ratio of 16.91 and P/S ratio of 1.19.
Non-interest income for the quarter ended September 30, 2010 totaled $438,000, an increase of $70,000, or 19.0%, compared with the same period in 2009. For the nine months ended September 30, 2010, non-interest income totaled $1.4 million, a decrease of $203,000, or 12.7%, from the same period in 2009. This decrease for the nine month period was due primarily to gains of $487,000 from the sale of securities available-for-sale during the first quarter of 2009. Excluding net securities gains as well as the $135,000 other-than-temporary impairment charge taken during the nine months ended September 30, 2009, non-interest income increased $149,000, or 11.9%, over the same period in 2009. The increase in both the quarter and nine month periods was due primarily to higher bank-owned life insurance income resulting from increased purchases of such investments during the fourth quarter of 2009 and the first quarter of 2010.
Non-interest expense for the quarter ended September 30, 2010 totaled $4.4 million, a decrease of $7.0 million, or 61.2%, from the same period in 2009, primarily due to a non-cash goodwill impairment charge of $6.7 million taken during the third quarter of 2009 and the recognition of a $280,000 benefit taken in the third quarter of 2010 due to the forfeiture of certain plan benefits pertaining to officers no longer employed with the Bank. Non-interest expense for the nine months ended September 30, 2010 totaled $13.7 million, a decrease of $7.0 million, or 33.6%, over the same period in 2009, due primarily to the same items discussed above.
Interest and fees on loans increased by $404,000, or 5.6%, to $7.6 million for the three months ended September 30, 2010 compared to $7.2 million for the corresponding period in 2009. Of the $404,000 increase in interest and fees on loans, $331,000 was attributable to volume-related increases and $73,000 was attributable to interest rate-related increases. During the third quarter of 2010, the Company recognized $93,000 of interest income relating to the full recovery and payoff of two related credits totaling $1.4 million, both of which were in non-accrual status. The average balance of the loan portfolio for the three months ended September 30, 2010 increased by $22.9 million, or 4.6%, to $520.2 million from $497.3 million for the corresponding period in 2009. The average annualized yield on the loan portfolio was 5.79% for the quarter ended September 30, 2010 compared to 5.74% for the quarter ended September 30, 2009. The average balance of non-accrual loans, which amounted to $11.9 million and $13.2 million for the three months ended September 30, 2010 and 2009, respectively, impacted the Company s loan yield for both periods presented.
Interest income on Federal funds sold and interest bearing deposits was $24,000 for the three months ended September 30, 2010, representing an increase of $12,000, or 100.0%, from $12,000 for the three months ended September 30, 2009. For the three months ended September 30, 2010, Federal funds sold had an average balance of $7.0 million with an average annualized yield of 0.34%, as compared to $27.7 million with an average annualized yield of 0.17% for the three months ended September 30, 2009. During the first quarter of 2010, in order to maximize earnings on excess liquidity and increased safety of our funds, the Bank transferred its cash balances to the Federal Reserve Bank of New York, which paid approximately 10 basis points more than our correspondent banks. Accordingly, for the three months ended September 30, 2010, interest bearing deposits had an average balance of $28.8 million and an average annualized yield of 0.25% as compared to no interest bearing deposits for the same period in 2009.
During 2010, management continued to focus on developing core deposit relationships in the Company. Additionally, management continued to restructure the mix of interest-bearing liabilities portfolio by decreasing our funding dependence from high-cost time deposits to lower-cost core money market and savings account deposit products. The average balance of interest-bearing liabilities increased to $483.9 million for the three months ended September 30, 2010 from $468.8 million for the same period last year, an increase of $15.1 million, or 3.2%. Our average balance in certificates of deposit decreased by $15.0 million, or 11.7%, to $113.3 million with an average annualized yield of 1.91% for the third quarter of 2010 from $128.3 million with an average annualized yield of 2.30% for the same period in 2009. Additionally, average money market deposits decreased by $1.3 million over this same period while the average annualized yield declined by 71 basis points. These average balance decreases were more than offset by increases of $22.7 million in average savings deposits, which increased from $177.1 million with an average annualized yield of 1.56% during the third quarter of 2009, to $199.8 million with an average annualized yield of 0.98% during the third quarter of 2010, as well as an increase in our negotiable order of withdrawal (NOW) accounts, which increased $6.9 million from $40.5 million with an average yield of 0.76% during the third quarter of 2009, to $47.4 million with an average yield of 0.54% during the third quarter of 2010. During the third quarter of 2010, our average demand deposits reached $78.8 million, an increase of $2.9 million, or 3.8%, over the same period last year. For the three months ended September 30, 2010, the average annualized cost for all interest-bearing liabilities was 1.16%, compared to 1.72% for the three months ended September 30, 2009, a decrease of 56 basis points.
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Community Partners Bancorp has a market cap of $38.45 million; its shares were traded at around $5.09 with a P/E ratio of 16.91 and P/S ratio of 1.19.
Highlight of Business Operations:
The Company reported net income to common shareholders of $950,000 for the three months ended September 30, 2010, compared to a net loss to common shareholders of $6.4 million, for the same period in 2009. Basic and diluted earnings per common share after preferred stock dividends and accretion were $0.12 for the quarter ended September 30, 2010 compared to basic and diluted loss of $0.85 and $0.84, respectively, per common share for the same period in 2009. Dividends and accretion related to the preferred stock issued to the Treasury reduced earnings for the third quarter of 2010 and 2009 by $145,000 or $0.02 per fully diluted common share. The annualized return on average assets increased to 0.68% for the three months ended September 30, 2010 as compared to an annualized loss of 3.91% for the same period in 2009. The annualized return on average shareholders equity increased to 5.54% for the three month period ended September 30, 2010 as compared to an annualized loss of 29.72% for the three months ended September 30, 2009.Non-interest income for the quarter ended September 30, 2010 totaled $438,000, an increase of $70,000, or 19.0%, compared with the same period in 2009. For the nine months ended September 30, 2010, non-interest income totaled $1.4 million, a decrease of $203,000, or 12.7%, from the same period in 2009. This decrease for the nine month period was due primarily to gains of $487,000 from the sale of securities available-for-sale during the first quarter of 2009. Excluding net securities gains as well as the $135,000 other-than-temporary impairment charge taken during the nine months ended September 30, 2009, non-interest income increased $149,000, or 11.9%, over the same period in 2009. The increase in both the quarter and nine month periods was due primarily to higher bank-owned life insurance income resulting from increased purchases of such investments during the fourth quarter of 2009 and the first quarter of 2010.
Non-interest expense for the quarter ended September 30, 2010 totaled $4.4 million, a decrease of $7.0 million, or 61.2%, from the same period in 2009, primarily due to a non-cash goodwill impairment charge of $6.7 million taken during the third quarter of 2009 and the recognition of a $280,000 benefit taken in the third quarter of 2010 due to the forfeiture of certain plan benefits pertaining to officers no longer employed with the Bank. Non-interest expense for the nine months ended September 30, 2010 totaled $13.7 million, a decrease of $7.0 million, or 33.6%, over the same period in 2009, due primarily to the same items discussed above.
Interest and fees on loans increased by $404,000, or 5.6%, to $7.6 million for the three months ended September 30, 2010 compared to $7.2 million for the corresponding period in 2009. Of the $404,000 increase in interest and fees on loans, $331,000 was attributable to volume-related increases and $73,000 was attributable to interest rate-related increases. During the third quarter of 2010, the Company recognized $93,000 of interest income relating to the full recovery and payoff of two related credits totaling $1.4 million, both of which were in non-accrual status. The average balance of the loan portfolio for the three months ended September 30, 2010 increased by $22.9 million, or 4.6%, to $520.2 million from $497.3 million for the corresponding period in 2009. The average annualized yield on the loan portfolio was 5.79% for the quarter ended September 30, 2010 compared to 5.74% for the quarter ended September 30, 2009. The average balance of non-accrual loans, which amounted to $11.9 million and $13.2 million for the three months ended September 30, 2010 and 2009, respectively, impacted the Company s loan yield for both periods presented.
Interest income on Federal funds sold and interest bearing deposits was $24,000 for the three months ended September 30, 2010, representing an increase of $12,000, or 100.0%, from $12,000 for the three months ended September 30, 2009. For the three months ended September 30, 2010, Federal funds sold had an average balance of $7.0 million with an average annualized yield of 0.34%, as compared to $27.7 million with an average annualized yield of 0.17% for the three months ended September 30, 2009. During the first quarter of 2010, in order to maximize earnings on excess liquidity and increased safety of our funds, the Bank transferred its cash balances to the Federal Reserve Bank of New York, which paid approximately 10 basis points more than our correspondent banks. Accordingly, for the three months ended September 30, 2010, interest bearing deposits had an average balance of $28.8 million and an average annualized yield of 0.25% as compared to no interest bearing deposits for the same period in 2009.
During 2010, management continued to focus on developing core deposit relationships in the Company. Additionally, management continued to restructure the mix of interest-bearing liabilities portfolio by decreasing our funding dependence from high-cost time deposits to lower-cost core money market and savings account deposit products. The average balance of interest-bearing liabilities increased to $483.9 million for the three months ended September 30, 2010 from $468.8 million for the same period last year, an increase of $15.1 million, or 3.2%. Our average balance in certificates of deposit decreased by $15.0 million, or 11.7%, to $113.3 million with an average annualized yield of 1.91% for the third quarter of 2010 from $128.3 million with an average annualized yield of 2.30% for the same period in 2009. Additionally, average money market deposits decreased by $1.3 million over this same period while the average annualized yield declined by 71 basis points. These average balance decreases were more than offset by increases of $22.7 million in average savings deposits, which increased from $177.1 million with an average annualized yield of 1.56% during the third quarter of 2009, to $199.8 million with an average annualized yield of 0.98% during the third quarter of 2010, as well as an increase in our negotiable order of withdrawal (NOW) accounts, which increased $6.9 million from $40.5 million with an average yield of 0.76% during the third quarter of 2009, to $47.4 million with an average yield of 0.54% during the third quarter of 2010. During the third quarter of 2010, our average demand deposits reached $78.8 million, an increase of $2.9 million, or 3.8%, over the same period last year. For the three months ended September 30, 2010, the average annualized cost for all interest-bearing liabilities was 1.16%, compared to 1.72% for the three months ended September 30, 2009, a decrease of 56 basis points.
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