- Net income to common shareholders increases 3.6%
year-over-year
- Loans reach new high of $578.9 million
- Quarterly cash dividend to common shareholders
initiated
- Share repurchase program announced
Community Partners Bancorp (Nasdaq:CPBC), (the "Company"), the
parent company of Two River Community Bank ("Two River"), today
announced consolidated earnings for the quarter ended March 31,
2013.
For the quarter ended March 31, 2013, the Company reported net
income available to common shareholders of $1.1 million, or $0.13
per diluted share, compared to $1.0 million, or $0.13 per diluted
share, for the same period in 2012, an increase of $37,000, or
3.6%.
Total assets as of March 31, 2013 were $735.6 million, compared
with $733.9 million at December 31, 2012. Total loans at March 31,
2013 reached a new high of $578.9 million, compared with $571.4
million at December 31, 2012, and total deposits at March 31, 2013
were $603.7 million, compared with $606.8 million at December 31,
2012.
William D. Moss, President and Chief Executive Officer, stated,
"Despite economic conditions that can best be described as tepid,
we are very pleased with our strong organic balance sheet growth,
which offsets the negative effects of this extended low interest
rate environment. We continue to place asset quality as a top
priority. Our approach to credit management diligence in our
workout process of liquidating other real estate owned properties
and efforts in working with our troubled borrowers to find
resolution during these uncertain times are all integral parts of
our community banking culture in today's environment."
Mr. Moss further noted, "As previously released, we are pleased
that our Board approved both an initial quarterly cash dividend to
our common shareholders as well as a share repurchase program. We
feel that the combined cash dividend and repurchase program are
effective ways to reward our shareholders and reflects the
confidence we have in our corporate strategy of growing the Company
and increasing shareholder value." The Company maintained capital
ratios in the first quarter of 2013 that were in excess of
regulatory standards for well-capitalized institutions. At March
31, 2013, Community Partners Bancorp's Tier 1 capital to average
assets ratio was 10.41%, Tier 1 capital to risk-weighted assets
ratio was 12.10% and total capital to risk-weighted assets ratio
was 13.35%. These ratios improved compared to the Company's capital
ratios at December 31, 2012.
Results for the quarter ended March 31, 2013 include:
- a loan loss provision of $180,000 recorded during the first
quarter, which was $170,000 less than the first quarter 2012
provision. During the quarter ended March 31, 2013, $170,000 in
charge-offs and a $60,000 write-down were taken against the
allowance for loan losses in connection with three credits, which
had been previously fully reserved;
- a $362,000 write-down on two OREO properties due to a decline
in current market values;
- net gains on the sale of investment securities totaling
$153,000; and
- an $85,000 gain on SBA loan sales.
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended March 31, 2013 totaled
$6.5 million, a decrease of $19,000, or 0.3%, from the same period
in 2012. Net interest income for the three months ended March 31,
2013 was adversely impacted by approximately $72,000 due to one
less day in the quarter as compared to the same period in 2012.
Average interest-earning assets for the first quarter 2013 were
$678.6 million, an increase of $54.3 million, or 8.7%, primarily
due to increases in both the loan and investment portfolios. Our
quarterly yield on interest-earning assets declined by 49 basis
points from the same period in 2012, as the current prolonged low
interest rate environment has continued to exert pressure on asset
yields. In addition, an aggregate of $52,000 of interest income and
late fee reversals were recorded on loans, which were transferred
into non-accrual status during the first quarter of 2013. Our
quarterly cost of interest-bearing liabilities declined by 18 basis
points from the same period last year due to a combination of lower
deposit costs and higher average balances in core checking
deposits, which increased $52.8 million, or 35.0%, to $203.8
million.
The Company reported a net interest margin of 3.88% for the
quarter ended March 31, 2013, representing a decrease of 32 basis
points when compared to the 4.20% net interest margin reported for
the comparable three months ended in 2012, and a decrease of 6
basis points when compared to the 3.94% net interest margin for the
quarter ended December 31, 2012. The decline from the same period
last year and fourth quarter of 2012 was primarily the result of
the historically low interest rate environment, which has continued
to exert pressure on net interest margins as longer term assets
reprice to lower interest rate levels while funding costs near
their implied floors.
Non-Interest Income
Non-interest income for the quarter ended March 31, 2013 totaled
$821,000, an increase of $264,000, or 47.4%, compared to the same
period in 2012. The increase over 2012 was primarily due to the
recorded net gains of $153,000 from the sale of securities and the
$85,000 gain on the sale of SBA loans during the three months ended
March 31, 2013 as compared to no gains recorded in 2012.
Non-Interest Expense
Non-interest expense for the quarter ended March 31, 2013
totaled $5.3 million, an increase of $402,000, or 8.2%, compared to
the same period in 2012. This increase was due primarily to an
increase in OREO and impaired net loan expenses, primarily as a
result of the previously mentioned $362,000 write-down on two
existing OREO properties and, to a lesser degree, an increase in
occupancy and equipment expenses primarily due to the grand opening
of our new corporate headquarters and new Red Bank branch office.
In March 2013, the Company filed the requisite applications to
close its existing smaller branch in Red Bank, as well as its
Cliffwood branch. Management believes that the closure of both
offices is in line with the strategic plans for optimizing the
profitability of its branch network. The Company expects a minimal
loss of customer relationships due to these closures and
anticipates annual pre-tax expense savings of approximately
$290,000. Both branches are expected to close in June 2013.
Balance Sheet Activity
As previously noted, total assets as of March 31, 2013 were
$735.6 million, an increase of 0.2%, compared to $733.9 million as
of December 31, 2012. Total loans as of March 31, 2013 were $578.9
million, an increase of 1.3%, compared to $571.4 million reported
at December 31, 2012. Total deposits as of March 31, 2013 were
$603.7 million, a decrease of 0.5%, compared with $606.8 million as
of December 31, 2012. Core checking deposits at March 31, 2013
decreased $1.9 million, or 0.9%, when compared to year-end 2012,
while savings accounts, inclusive of money market deposits,
increased 3.0%. Conversely, higher cost time deposits decreased
10.0% over this same period.
Asset Quality
The Company's non-performing assets at March 31, 2013 increased
to $11.3 million as compared to $9.2 million at December 31, 2012,
but decreased when compared to the $12.3 million at March 31, 2012.
Non-accrual loans increased to $9.9 million at March 31, 2013 as
compared to $7.5 million at December 31, 2012 and $4.5 million at
March 31, 2012. This increase of $2.4 million was due to the
addition of one commercial real estate loan, which is well secured.
There were no loans past due over 90 days and still accruing at
March 31, 2013, as compared to $2,000 at December 31, 2012 and
$482,000 at March 31, 2012. OREO properties decreased to $1.4
million as of March 31, 2013 compared to $1.8 million at December
31, 2012 and $7.3 million at March 31, 2012. The decrease in the
OREO balance of $362,000 during the quarter was primarily due to
the previously mentioned write-down on two existing OREO properties
due to the decline in their market values.
The Company's non-performing assets at March 31, 2013, as a
percentage of total assets, were 1.53%, an increase from the 1.26%
at December 31, 2012 and a decrease from the 1.79% reported at
March 31, 2012. Troubled Debt Restructured loan balances increased
to $16.6 million at March 31, 2013 from $9.6 million at December
31, 2012 and $9.8 million reported at March 31, 2012. The increase
from year-end 2012 is primarily due to the addition of seven
commercial and commercial real estate loans totaling $7.1 million,
all of which are well-collateralized and performing according to
their modified terms.
As of March 31, 2013, the Company's allowance for loan losses
was $8.2 million as compared to $8.0 million as of December 31,
2012. Loss allowance as a percentage of total loans at March 31,
2013 was 1.42% compared to 1.40% at December 31, 2012 and 1.31% at
March 31, 2012. During the quarter ended March 31, 2013, $170,000
of charge-offs and a $60,000 write-down were taken in connection
with three credits for which the full amount had previously been
reserved. Additionally, $255,000 in recoveries was recaptured
during the three months ended March 31, 2013.
About the Company
Community Partners Bancorp is the holding company for Two River
Community Bank, which is headquartered in Tinton Falls, New Jersey.
Two River Community Bank currently operates 16 branches throughout
Monmouth and Union Counties and two regional lending offices in New
Brunswick and Summit, New Jersey. More information about Two River
Community Bank is available at www.tworiverbank.com. More
information about Community Partners is available at
www.communitypartnersbancorp.com.
Forward Looking Statements
The foregoing contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are not historical facts and include expressions
about management's confidence and strategies and management's
current views and expectations about new and existing programs and
products, relationships, opportunities, technology and market
conditions. These statements may be identified by such
forward-looking terminology as "expect," "look," "believe,"
"anticipate," "may," "will," "should," "projects" or similar
statements. Actual results may differ materially from such
forward-looking statements, and no reliance should be placed on any
forward-looking statement. Factors that may cause results to differ
materially from such forward-looking statements include, but are
not limited to, unanticipated changes in the financial markets and
the direction of interest rates; volatility in earnings due to
certain financial assets and liabilities held at fair value;
competition levels; changes in loan and investment prepayment
assumptions; insufficient allowance for credit losses; a higher
level of loan charge-offs and delinquencies than anticipated;
material adverse changes in our operations or earnings; a decline
in the economy in our market areas; changes in relationships with
major customers; changes in effective income tax rates; higher or
lower cash flow levels than anticipated; inability to hire or
retain qualified employees; a decline in the levels of deposits or
loss of alternate funding sources; a decrease in loan origination
volume; changes in laws and regulations; adoption, interpretation
and implementation of accounting pronouncements; operational risks,
including the risk of fraud by employees or outsiders; and the
inability to successfully implement new lines of business or new
products and services. For a list of other factors which would
affect our results, see Community Partners' filings with the
Securities and Exchange Commission, including those risk factors
identified in the "Risk Factor" section and elsewhere in our Annual
Report on Form 10-K for the year ended December 31, 2012. The
statements in this press release are made as of the date of this
press release, even if subsequently made available by Community
Partners on its website or otherwise. Community Partners assumes no
obligation for updating any such forward-looking statements at any
time, except as required by law.
| |
| COMMUNITY PARTNERS
BANCORP |
| Selected Consolidated
Financial Data (Unaudited) |
| |
|
|
|
|
|
|
| (Dollars in thousands except per share
data) |
|
|
|
|
|
|
| |
March 31, |
December
31, |
March 31, |
|
|
|
| Selected Period End
Balances: |
2013 |
2012 |
2012 |
|
|
|
| Total Assets |
$ 735,643 |
$ 733,895 |
$ 684,897 |
|
|
|
| Investment Securities and Restricted
Stock |
72,854 |
75,383 |
59,754 |
|
|
|
| Total Loans |
578,916 |
571,447 |
536,679 |
|
|
|
| Allowance for Loan Losses |
(8,195) |
(7,984) |
(7,026) |
|
|
|
| Goodwill and Other Intangible Assets |
18,339 |
18,377 |
18,492 |
|
|
|
| Total Deposits |
603,741 |
606,770 |
560,845 |
|
|
|
| Repurchase Agreements |
20,564 |
16,710 |
18,680 |
|
|
|
| Long-term Debt |
13,500 |
13,500 |
13,500 |
|
|
|
| Shareholders' Equity |
93,046 |
91,965 |
88,283 |
|
|
|
| |
|
|
|
|
|
|
| |
March 31, |
December 31, |
March 31, |
|
|
|
| Asset Quality
Data: |
2013 |
2012 |
2012 |
|
|
|
| Nonaccrual loans |
$ 9,875 |
$ 7,472 |
$ 4,517 |
|
|
|
| Loans past due over 90 days and still
accruing |
-- |
2 |
482 |
|
|
|
| OREO properties |
1,390 |
1,752 |
7,281 |
|
|
|
| Total Non-Performing Assets |
11,265 |
9,226 |
12,280 |
|
|
|
| |
|
|
|
|
|
|
| Troubled Debt Restructured Loans |
16,620 |
9,551 |
9,781 |
|
|
|
| |
|
|
|
|
|
|
| Non-Performing Loans to Total Loans |
1.71% |
1.31% |
0.93% |
|
|
|
| Allowance as a % of Loans |
1.42% |
1.40% |
1.31% |
|
|
|
| Non-Performing Assets to Total Assets |
1.53% |
1.26% |
1.79% |
|
|
|
| |
|
|
|
|
|
|
| |
March 31,
2013 |
December
31, 2012 |
| Capital Ratios: |
Tier 1 Capital to Average
Assets Ratio |
Tier 1 Capital to Risk
Weighted Assets Ratio |
Total Capital to Risk
Weighted Assets Ratio |
Tier 1 Capital to Average
Assets Ratio |
Tier 1 Capital to Risk
Weighted Assets Ratio |
Total Capital to Risk
Weighted Assets Ratio |
| Community Partners Bancorp |
10.41% |
12.10% |
13.35% |
10.36% |
12.03% |
13.28% |
| Two River Community Bank |
10.36% |
12.04% |
13.29% |
10.35% |
12.02% |
13.27% |
| "Well capitalized" institution (under
Federal regulations) |
5.00% |
6.00% |
10.00% |
5.00% |
6.00% |
10.00% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Three
Months Ended |
|
|
|
| |
March 31, |
December 31, |
March 31, |
|
|
|
| Selected Consolidated Earnings
Data: |
2013 |
2012 |
2012 |
|
|
|
| Total Interest Income |
$ 7,528 |
$ 7,758 |
$ 7,739 |
|
|
|
| Total Interest Expense |
1,030 |
1,113 |
1,222 |
|
|
|
| Net Interest Income |
6,498 |
6,645 |
6,517 |
|
|
|
| Provision for Loan Losses |
180 |
430 |
350 |
|
|
|
| Net Interest Income after Provision for
Loan Losses |
6,318 |
6,215 |
6,167 |
|
|
|
| |
|
|
|
|
|
|
| Total Non-Interest Income |
821 |
706 |
557 |
|
|
|
| |
|
|
|
|
|
|
| Total Non-Interest Expenses |
5,304 |
4,963 |
4,902 |
|
|
|
| |
|
|
|
|
|
|
| Income before Income Taxes |
1,835 |
1,958 |
1,822 |
|
|
|
| Income Tax Expense |
675 |
718 |
667 |
|
|
|
| Net Income |
1,160 |
1,240 |
1,155 |
|
|
|
| |
|
|
|
|
|
|
| Preferred Stock Dividend & Discount
Accretion |
105 |
130 |
137 |
|
|
|
| |
|
|
|
|
|
|
| Net Income available to common
shareholders |
$ 1,055 |
$ 1,110 |
$ 1,018 |
|
|
|
| |
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
| Basic Earnings |
$ 0.13 |
$ 0.14 |
$ 0.13 |
|
|
|
| Diluted Earnings |
$ 0.13 |
$ 0.14 |
$ 0.13 |
|
|
|
| Book Value |
$ 10.09 |
$ 10.02 |
$ 9.58 |
|
|
|
| Tangible Book Value |
$ 7.81 |
$ 7.71 |
$ 7.26 |
|
|
|
| Average Common Shares Outstanding (in
thousands): |
|
|
|
|
|
|
| Basic |
7,993 |
7,966 |
7,956 |
|
|
|
| Diluted |
8,175 |
8,143 |
8,111 |
|
|
|
| |
|
|
|
|
|
|
| Other Selected
Ratios: |
|
|
|
|
|
|
| Return on Average Assets |
0.64% |
0.68% |
0.68% |
|
|
|
| Return on Average Tangible Assets (1) |
0.66% |
0.70% |
0.70% |
|
|
|
| Return on Average Equity |
5.08% |
5.37% |
5.29% |
|
|
|
| Return on Average Tangible Equity (1) |
6.33% |
6.72% |
6.70% |
|
|
|
| Net Interest Margin |
3.88% |
3.94% |
4.20% |
|
|
|
| |
|
|
|
|
|
|
| (1) Non-GAAP Financial
Information. See the "Reconciliation of Non-GAAP Financial
Measures" below. |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Reconciliation of Non-GAAP Financial
Measures |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| The press release contains
certain financial information determined by methods other than in
accordance with generally accepted accounting policies in the
United States (GAAP). These non-GAAP financial measures are
"tangible book value per common share," "return on average tangible
assets," and "return on average tangible equity." This
non-GAAP disclosure has limitations as an analytical tool and
should not be considered in isolation or as a substitute for
analysis of the Company's results as reported under GAAP, nor is
it necessarily comparable to non-GAAP performance measures
that may be presented by other companies. Our management uses these
non-GAAP measures in its analysis of our performance because
it believes these measures are material and will be used as a
measure of our performance by investors. |
| |
|
|
|
|
|
|
| |
As of and
for the Three Months Ended |
|
|
|
| |
March 31, |
December 31, |
March 31, |
|
|
|
| |
2013 |
2012 |
2012 |
|
|
|
| |
|
|
|
|
|
|
| Book value per common share |
$ 10.09 |
$ 10.02 |
$ 9.58 |
|
|
|
| Effect of intangible assets |
(2.28) |
(2.31) |
(2.32) |
|
|
|
| Tangible book value per common
share |
$ 7.81 |
$ 7.71 |
$ 7.26 |
|
|
|
| |
|
|
|
|
|
|
| Return on average assets |
0.64% |
0.68% |
0.68% |
|
|
|
| Effect of intangible assets |
0.02% |
0.02% |
0.02% |
|
|
|
| Return on average tangible
assets |
0.66% |
0.70% |
0.70% |
|
|
|
| |
|
|
|
|
|
|
| Return on average equity |
5.08% |
5.37% |
5.29% |
|
|
|
| Effect of average intangible assets |
1.25% |
1.35% |
1.41% |
|
|
|
| Return on average tangible
equity |
6.33% |
6.72% |
6.70% |
|
|
|
CONTACT: William D. Moss, President & CEO
Community Partners Bancorp
732-389-8722 wmoss@tworiverbank.com
A. Richard Abrahamian, Executive Vice President & CFO
Community Partners Bancorp
732-216-0167 rabrahamian@tworiverbank.com
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