AMERICAN BANCORP OF NEW JERSEY is a community bank where customers are known by name and superior service is a tradition.The bank has been dedicated to being the `hometown bank` that provides the finest financial products and services available backed by the latest technologies. It's user-friendly personal banking with competitive interest rates convenient hours and a level of customer-focused service that makes banking a pleasure. American Bancorp of New Jersey Inc. has a market cap of $106.7 million; its shares were traded at around $9.83 with a P/E ratio of 81.9 and P/S ratio of 3.2. The dividend yield of American Bancorp of New Jersey Inc. stocks is 2%.
Highlight of Business Operations:Our results of operations are also affected by our provision for loan losses which reflect the overall deterioration of the economy and declining real estate values. For the six months ended March 31, 2009, the Company recorded a net loan loss provision of $1.7 million. The provision for loan losses for the current six month period reflected specific provisions totaling $1.6 million attributable to four impaired loans. The largest of these impaired loans is one fully disbursed construction loan with an outstanding principal balance of $6.8 million against which the Bank established a $1,375,000 valuation allowance during the six months ended March 31, 2009. Three additional nonperforming commercial loans with combined principal balances of approximately $679,000, net of charge offs, required loss provisions totaling $227,000 during the current six month period due to their respective nonaccrual statuses and reduced collateral values. In total, annualized net loan loss provision expense, reflected as a percentage of average earning assets, was reported as 0.55% for the six months ended March 31, 2009 compared with 0.09% for all of fiscal 2008.
Our total assets increased by $45.3 million, or 7.3%, to $666.9 million at March 31, 2009 from $621.6 million at September 30, 2008. The increase primarily reflected comparatively higher balances of cash and equivalents, investment securities and loans receivable, net.
Cash and cash equivalents increased by $20.8 million, or 102.1%, to $41.2 million at March 31, 2009 from $20.4 million at September 30, 2008. The net increase in cash and cash equivalents primarily reflects net growth in deposits partially offset by growth in investment securities and loans receivable, net and repayment of maturing and amortizing borrowings.
Securities classified as available-for-sale increased $13.1 million, or 16.2%, to $94.3 million at March 31, 2009 from $81.2 million at September 30, 2008 while securities held-to-maturity decreased approximately $705,000, or 9.4% to $6.8 million from $7.5 million for those same comparative periods.
Loans receivable, net increased by $12.1 million, or 2.5%, to $490.7 million at March 31, 2009 from $478.6 million at September 30, 2008. The growth was comprised of net increases in commercial loans totaling $4.8 million or 2.7%. This growth comprised net increases in multifamily, nonresidential real estate, land and business loans of $11.7 million partially offset by net reductions in the outstanding balance of construction loans of $6.8 million. The increase in loans receivable, net also included net increases in one- to four-family first mortgages of $7.5 million, net increases in home equity loans and home equity lines of credit totaling $1.1 million and net increases in consumer loans of $259,000. Offsetting the growth in these categories was a net increase to the allowance for loan losses totaling $1.6 million. As described earlier, the increase in the allowance for loan losses was largely attributable to a $1,375,000 specific valuation allowance established against one impaired construction loan. The remaining net growth in the allowance was attributable, in part, to provisions, net of charge offs, associated with three other impaired commercial loans plus general provisions associated with overall growth in the loan portfolio.
As noted earlier, the Bank has classified a total of 12 loans with outstanding principal balances of $12.3 million as nonperforming at March 31, 2009. Of these loans, $6.8 million, or approximately 55%, is attributable to one fully disbursed construction loan. The loan, which includes personal guarantees for all indebtedness, is secured by a completed 13-unit residential condominium project located in Wildwood Crest, New Jersey. The Bank classified the loan as nonperforming and initiated foreclosure action during the quarter ended March 31, 2009. Based upon the loan s nonaccrual status and updated collateral value, the Bank established a $1,375,000 valuation allowance against the impaired loan during the most recent quarter ended March 31, 2009.
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