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Bancorp of New Jersey Inc. Reports Operating Results (10-Q)

August 14, 2009 | About:
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Bancorp of New Jersey Inc. (BKJ) filed Quarterly Report for the period ended 2009-06-30.

BANCORP OF NEW JERSEY INC is a holding company for the Bank of New Jersey which is a state chartered commercial bank that provides a traditional range of financial products and services to meet the deposit and credit needs of individual customers small businesses and professionals in the local market area. Bancorp of New Jersey Inc. has a market cap of $55.3 million; its shares were traded at around $10.9 with a P/E ratio of 90.9 and P/S ratio of 8.

Highlight of Business Operations:

Net income for the second quarter of 2009 was $191 thousand compared to net income of $102 thousand for the second quarter of 2008. In comparison to the second quarter of 2008, the second quarter of 2009 experienced a decrease in interest expense of approximately $374 thousand. This decrease coupled with an increase of approximately $279 thousand in interest income resulted in an increase to net interest income of over $650 thousand. The increase in net interest income is reflective of managements focus to create a more efficient balance sheet by increasing the interest earning assets as well as increasing the yield on assets already earning income. The increased net interest income more than offset the increased FDIC insurance premiums, the FDIC special assessment, and costs associated with expansion.

On a per share basis, basic and diluted earnings per share were $0.04 for the second quarter of 2009 as compared to basic and diluted earnings per share of $0.02 for the second quarter of 2008. Basic and diluted earnings per share were $0.06 for the six months ended June 30, 2009 as compared to basic and diluted earnings per share of $0.02 for the six months ended June 30, 2008.

During the six months ended June 30, 2009, net interest income reached $4.2 million compared to $3.2 million for the six months ended June 30, 2008. This increase is also attributable to the increase in interest income from loans, including fees and the decrease in interest expense. Interest income from loans, including fees, securities and federal funds sold reached $7.4 million for the six months ended June 30, 2009 from $7.3 million for the six months ended June 30, 2008. At the same time, interest expense decreased from $4.1 million for the six months ended June 30, 2008 to $3.2 million for the six months ended June 30, 2009.

Non-interest income, primarily attributable to service fees, was $48 thousand during the quarter ended June 30, 2009 compared to $81 thousand for the quarter ended June 30, 2008. For the six months ended June 30, 2009, non-interest income totaled $86 thousand as compared to $145 thousand for the six months ended June 30, 2008. As these fees are related, primarily, to deposits accounts, the decrease between periods is reflective of decreased customer activity for non-deposit related items.

Non-interest expense reached $1.9 million during the second quarter of 2009 compared to $1.5 million in the second quarter of 2008, an increase of approximately $400 thousand. During the six months ended June 30, 2009, non-interest expense reached approximately $3.5 million from approximately $2.9 million for the six months ended June 30, 2008. These increases reflect increased salaries and employee benefits, occupancy and equipment expense, and other expenses related to opening and operating two additional office locations, as well as the overall growth of the Company.

Total consolidated assets increased $2.8 million, or approximately 0.9%, from $304.1 million at December 31, 2008 to $306.9 million at June 30, 2009. Total deposits increased from $254.0 million at December 31, 2008 to $257.4 million at June 30, 2009, an increase of $3.4 million, or approximately 1.3%. Loans receivable, or total loans, increased from $234.9 million at December 31, 2008 to $254.8 million at June 30, 2009, an increase of $19.9 million, or approximately 8.5%.

Read the The complete Report

Rating: 3.0/5 (4 votes)

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