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Community Partners Bancorp Reports Operating Results (10-Q)

May 17, 2010 | About:
10qk

10qk

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Community Partners Bancorp (CPBC) filed Quarterly Report for the period ended 2010-03-31.

Community Partners Bancorp has a market cap of $32.26 million; its shares were traded at around $4.5 with and P/S ratio of 0.99.

Highlight of Business Operations:

The Company reported net income to common shareholders of $490,000 for the quarter ended March 31, 2010, compared to net income to common shareholders of $416,000, for the same period in 2009. Basic and diluted earnings per common share after preferred stock dividends and accretion were both $0.07 for the quarter ended March 31, 2010 compared to basic and diluted earnings of $0.06 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 first quarter of 2010 by $143,000 ($0.02 per fully diluted common share) as compared to $96,000 ($0.01 per fully diluted common share) for the same period last year. The annualized return on average assets increased to 0.39% for the three months ended March 31, 2010 as compared to 0.35% for the same period in 2009. The annualized return on average shareholders equity increased to 3.28% for the three month period ended March 31, 2010 as compared to 2.59% for the three months ended March 31, 2009.

Non-interest income for the quarter ended March 31, 2010 totaled $480,000, a decrease of $394,000, or 45.1%, from the same period in 2009. This decrease is primarily due to the $487,000 of gains from the sale of available-for-sale securities during the three months ended March 31, 2009 as compared to no realized gains for the same period in 2010. Non-interest expenses for the quarter ended March 31, 2010 totaled $4.6 million, an increase of $171,000, from $4.5 million, or 3.8%, over the same period in 2009. Approximately $94,000 of this increase was the result of higher FDIC insurance premiums primarily from both higher risk-based assessment rates coupled with increased deposit levels.

Total assets at March 31, 2010 were $668.2 million, up 4.4% from total assets of $640.0 million at December 31, 2009. Total deposits were $564.6 million at March 31, 2010, an increase of 5.5% from total deposits of $535.4 million at December 31, 2009. Total loans for the first quarter of 2010 declined 1.1% to $508.0 million, compared with $513.4 million at December 31, 2009.

Interest and fees on loans increased by $726,000, or 11.2%, to $7.2 million for the three months ended March 31, 2010 compared to $6.5 million for the corresponding period in 2009. Of the $726,000 increase in interest and fees on loans, $814,000 was attributable to volume-related increases which were partially offset by $88,000 attributable to interest rate-related decreases. The average balance of the loan portfolio for the three months ended March 31, 2010 increased by $57.2 million, or 12.6%, to $510.2 million from $453.0 million for the corresponding period in 2009. The average annualized yield on the loan portfolio was 5.72% for the quarter ended March 31, 2010 compared to 5.79% for the quarter ended March 31, 2009 due primarily to lower market rates. Additionally, the average balance of non-accrual loans, which amounted to $13.4 million and $13.2 million at March 31, 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 $17,000 for the three months ended March 31, 2010, representing a decrease of $1,000, or 5.6%, from $18,000 for the three months ended March 31, 2009. For the three months ended March 31, 2010, Federal funds sold had an average balance of $30.1 million with an average annualized yield of 0.15%, as compared to $35.4 million with an average yield of 0.21% for the three months ended March 31, 2009. During the first quarter 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 March 31, 2010, interest bearing deposits had an average balance of $10.5 million and averaged 0.23% 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 $494.0 million for the three months ended March 31, 2010 from $444.0 million for the same period last year, an increase of $49.9 million, or 11.2%. Our average balance in certificates of deposit decreased by $1.3 million, or 1.0%, to $125.9 million with an average yield of 1.99% for the first quarter of 2010 from $127.2 million with an average yield of 2.87% for the same period in 2009. This average balance decrease was more than offset by increases of $31.0 million in average savings deposits, which increased from $166.1 million with an average yield of 2.47% during the first quarter of 2009, to $197.0 million with an average yield of 1.40% during the first quarter of 2010. Additionally, average money market deposits increased by $8.3 million over this same period while the average yield declined by 90 basis points. During the first quarter of 2010, our average demand deposits reached $73.1 million, an increase of $8.8 million, or 13.6%, over the same period last year. For the three months ended March 31, 2010, the average cost for all interest-bearing liabilities was 1.49%, compared to 2.39% for the three months ended March 31, 2009.

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