Community Partners Bancorp (CPBC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Community Partners Bancorp has a market cap of $44.3 million; its shares were traded at around $5.56 with a P/E ratio of 11.7 and P/S ratio of 1.3.
The Company reported net income to common shareholders of $2.1 million for the six months ended June 30, 2012, compared to $1.7 million, for the same period in 2011, an increase of $339,000, or 19.8%. Basic and diluted earnings per common share after preferred stock dividends and accretion were $0.26 and $0.25, respectively, for the six months ended June 30, 2012 compared to $0.22 and $0.21, respectively, for the same period in 2011. Net income and earnings per share reflect the payment of dividends related to the SBLF preferred stock, which reduced earnings for the six months ended June 30, 2012 by $287,000, or $0.04 per fully diluted common share. Dividends and accretion related to the TARP CPP preferred stock reduced earnings for the six months ended June 30, 2011 by $286,000, or $0.04 per fully diluted common share. The annualized return on average assets increased to 0.68% for the six months ended June 30, 2012 as compared to 0.61% for the same period in 2011. The annualized return on average shareholders equity increased to 5.29% for the six month period ended June 30, 2012 as compared to 4.92% for the six month period ended June 30, 2011. All 2011 share and per share data for referenced periods have been adjusted to reflect the 3% stock dividend declared on November 10, 201 and payable on December 30, 2011 to shareholders of record as of December 13, 2011. Tangible book value per common share rose to $7.41 at June 30, 2012 as compared to $6.98 at June 30, 2011, as disclosed in the Non-GAAP Financial Measures table.
Net interest income decreased by $43,000, or 0.7%, for the three months ended June 30, 2012 compared to the corresponding period in 2011, primarily due to a contraction in our net interest margin partially offset by an increase in average interest earning assets. Average interest earning assets totaled $635.7 million for the second quarter of 2012, an increase of $19.3 million, or 3.1%, from $616.4 million for the same period in 2011. The net interest spread and net interest margin decreased to 3.88% and 4.08%, respectively, for the three months ended June 30, 2012, from 4.01% and 4.23%, respectively, for the three months ended June 30, 2011, due primarily to lower interest rates on our interest earning assets. The decline for the quarter was primarily due to the prolonged low interest rate environment, which has continued to exert pressure on asset yields, as well as the timing of our loan closings, which occurred late in the quarter and thus resulted in funds remaining in a cash position for most of the quarter rather than in higher yielding loans. Additionally, net interest income was impacted by $61,000 of interest reversals on loans transferred into non-accrual or troubled debt restructuring status.
Non-interest expenses for the three months ended June 30, 2012 increased $316,000, or 6.7%, to $5.1 million compared to $4.7 million or the three months ended June 30, 2011. This increase was the result of a $270,000 write-down on an existing OREO property as well as higher OREO expenses due to the net loss on the sales of OREO properties of $102,000 during the three month period ended June 30, 2012 as compared to a net gain of $305,000 during the same period in 2011. These increases were partially offset by a decrease in FDIC insurance and assessments of $32,000, or 19.6%, primarily due to the change in assessment calculation from a deposit based calculation to an asset based less Tier 1 capital calculation. Occupancy and equipment expenses declined by $31,000, or 3.9%, primarily due to lower depreciation on capitalized expenditures and a decrease of $67,000, or 30.5% in professional fees primarily due to lower activity. Additionally, other operating expenses declined by $88,000 due primarily to a $75,000 write-down recorded during the second quarter of 2011 on a property held for sale. Amortization of intangible assets, which was the result of The Town Bank acquisition in 2006, amounted to $38,000 for the second quarter of 2012 compared to $48,000 for the corresponding period in 2011.
Non-interest expenses for the six months ended June 30, 2012 increased $427,000, or 4.5%, to $10.0 million compared to $9.5 million for the six months ended June 30, 2011. This increase was primarily due to an increase of $430,000 in OREO expenses due to the net loss on sales of OREO properties of $130,000 in 2012 as compared to a net gain of $300,000 during the same period in 2011. OREO impairment and loan workout expense increased by $159,000 primarily as a result of the $360,000 write-downs taken on two existing OREO properties during 2012 partially offset by lower OREO carrying expenses. Additionally, outside service fees as well as advertising expense increased $52,000 and $25,000, respectively, due to increased activity. These increases were partially offset by a decrease in FDIC insurance and assessments of $118,000, or 30.3%, primarily due to the change in assessment calculation from a deposit based calculation to an asset based less Tier 1 capital calculation. Occupancy and equipment expenses declined by $85,000, or 5.2%, primarily due to lower depreciation on capitalized expenditures while insurance expenses declined by $23,000 due to lower renewal rates. Amortization of intangible assets, which was the result of The Town Bank acquisition in 2006, amounted to $86,000 for the six months ended June 30, 2012 compared to $106,000 for the corresponding period in 2011.
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Community Partners Bancorp has a market cap of $44.3 million; its shares were traded at around $5.56 with a P/E ratio of 11.7 and P/S ratio of 1.3.
Highlight of Business Operations:
The Company reported net income to common shareholders of $1.0 million for the three months ended June 30, 2012, compared to $935,000, for the same period in 2011, an increase of $101,000, or 10.8%. Basic and diluted earnings per common share after preferred stock dividends and accretion were both $0.13 for the quarter ended June 30, 2012 compared to $0.12 for the same period in 2011. Net income and earnings per share reflect the payment of dividends related to the SBLF preferred stock, which reduced earnings for the second quarter of 2012 by $150,000, or $0.02 per fully diluted common share. Dividends and accretion related to the TARP CPP preferred stock reduced earnings for the second quarter of 2011 by $143,000, or $0.02 per fully diluted common share. The annualized return on average assets increased to 0.69% for the three months ended June 30, 2012 as compared to 0.65% for the same period in 2011. The annualized return on average shareholders equity increased to 5.33% for the three month period ended June 30, 2012 as compared to 5.26% for the three month period ended June 30, 2011.The Company reported net income to common shareholders of $2.1 million for the six months ended June 30, 2012, compared to $1.7 million, for the same period in 2011, an increase of $339,000, or 19.8%. Basic and diluted earnings per common share after preferred stock dividends and accretion were $0.26 and $0.25, respectively, for the six months ended June 30, 2012 compared to $0.22 and $0.21, respectively, for the same period in 2011. Net income and earnings per share reflect the payment of dividends related to the SBLF preferred stock, which reduced earnings for the six months ended June 30, 2012 by $287,000, or $0.04 per fully diluted common share. Dividends and accretion related to the TARP CPP preferred stock reduced earnings for the six months ended June 30, 2011 by $286,000, or $0.04 per fully diluted common share. The annualized return on average assets increased to 0.68% for the six months ended June 30, 2012 as compared to 0.61% for the same period in 2011. The annualized return on average shareholders equity increased to 5.29% for the six month period ended June 30, 2012 as compared to 4.92% for the six month period ended June 30, 2011. All 2011 share and per share data for referenced periods have been adjusted to reflect the 3% stock dividend declared on November 10, 201 and payable on December 30, 2011 to shareholders of record as of December 13, 2011. Tangible book value per common share rose to $7.41 at June 30, 2012 as compared to $6.98 at June 30, 2011, as disclosed in the Non-GAAP Financial Measures table.
Net interest income decreased by $43,000, or 0.7%, for the three months ended June 30, 2012 compared to the corresponding period in 2011, primarily due to a contraction in our net interest margin partially offset by an increase in average interest earning assets. Average interest earning assets totaled $635.7 million for the second quarter of 2012, an increase of $19.3 million, or 3.1%, from $616.4 million for the same period in 2011. The net interest spread and net interest margin decreased to 3.88% and 4.08%, respectively, for the three months ended June 30, 2012, from 4.01% and 4.23%, respectively, for the three months ended June 30, 2011, due primarily to lower interest rates on our interest earning assets. The decline for the quarter was primarily due to the prolonged low interest rate environment, which has continued to exert pressure on asset yields, as well as the timing of our loan closings, which occurred late in the quarter and thus resulted in funds remaining in a cash position for most of the quarter rather than in higher yielding loans. Additionally, net interest income was impacted by $61,000 of interest reversals on loans transferred into non-accrual or troubled debt restructuring status.
Non-interest expenses for the three months ended June 30, 2012 increased $316,000, or 6.7%, to $5.1 million compared to $4.7 million or the three months ended June 30, 2011. This increase was the result of a $270,000 write-down on an existing OREO property as well as higher OREO expenses due to the net loss on the sales of OREO properties of $102,000 during the three month period ended June 30, 2012 as compared to a net gain of $305,000 during the same period in 2011. These increases were partially offset by a decrease in FDIC insurance and assessments of $32,000, or 19.6%, primarily due to the change in assessment calculation from a deposit based calculation to an asset based less Tier 1 capital calculation. Occupancy and equipment expenses declined by $31,000, or 3.9%, primarily due to lower depreciation on capitalized expenditures and a decrease of $67,000, or 30.5% in professional fees primarily due to lower activity. Additionally, other operating expenses declined by $88,000 due primarily to a $75,000 write-down recorded during the second quarter of 2011 on a property held for sale. Amortization of intangible assets, which was the result of The Town Bank acquisition in 2006, amounted to $38,000 for the second quarter of 2012 compared to $48,000 for the corresponding period in 2011.
Non-interest expenses for the six months ended June 30, 2012 increased $427,000, or 4.5%, to $10.0 million compared to $9.5 million for the six months ended June 30, 2011. This increase was primarily due to an increase of $430,000 in OREO expenses due to the net loss on sales of OREO properties of $130,000 in 2012 as compared to a net gain of $300,000 during the same period in 2011. OREO impairment and loan workout expense increased by $159,000 primarily as a result of the $360,000 write-downs taken on two existing OREO properties during 2012 partially offset by lower OREO carrying expenses. Additionally, outside service fees as well as advertising expense increased $52,000 and $25,000, respectively, due to increased activity. These increases were partially offset by a decrease in FDIC insurance and assessments of $118,000, or 30.3%, primarily due to the change in assessment calculation from a deposit based calculation to an asset based less Tier 1 capital calculation. Occupancy and equipment expenses declined by $85,000, or 5.2%, primarily due to lower depreciation on capitalized expenditures while insurance expenses declined by $23,000 due to lower renewal rates. Amortization of intangible assets, which was the result of The Town Bank acquisition in 2006, amounted to $86,000 for the six months ended June 30, 2012 compared to $106,000 for the corresponding period in 2011.
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