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MIDDLETOWN, N.J., Jan 25, 2008 (BUSINESS WIRE) -- Community Partners Bancorp (NASDAQ CM: CPBC) ("Community Partners" or the "Company"), the parent company of Two River Community Bank and The Town Bank, reported consolidated earnings and assets for the fourth quarter and year ended December 31, 2007.
Community Partners reported net income of $668,000 for the quarter ended December 31, 2007, or $0.10 per share for both basic and diluted earnings per share, compared to net income of $1,056,000 for the fourth quarter of 2006, or $0.16 for basic and $0.15 for diluted earnings per share. Net income for the quarter ended December 31, 2007 decreased by approximately $388,000 or 36.7%, over the same prior year quarter. On a linked quarter basis, net income for the fourth quarter of 2007 decreased by approximately $386,000 or 36.6% over the third quarter of 2007. The Company incurred non-recurring expenses during the fourth quarter of 2007 which accounted, in part, for the decrease in net income on a year-to-year and linked quarter basis.
For the twelve months ended December 31, 2007, net income amounted to $3,652,000 compared to $3,699,000 for the twelve months ended December 31, 2006. This represents a decrease of approximately $47,000 or 1.3% in net income. Basic and diluted earnings per share for the twelve months ended December 31, 2007 were $0.54 and $0.53, respectively, compared to basic and diluted earnings per share of $0.61 and $0.59, respectively, for the same prior year period. The decrease resulted, in part, from the aforementioned non-recurring expenses in the fourth quarter of 2007. Reported earnings of Community Partners prior to April 1, 2006 include those of Two River Community Bank and do not include those of The Town Bank, which was acquired as of April 1, 2006. Barry B. Davall, President & CEO, stated, "As a result of the unsettled banking environment, Community Partners took a cautious approach to managing growth during 2007. The good quality of our loan portfolio and our ability to maintain a net interest margin above 4% are indications that our balance sheet management strategies were successful during a very difficult year for the banking industry."
Weighted average shares outstanding and earnings per share were retroactively adjusted to reflect the 3% stock dividend which was paid August 31, 2007 to shareholders of record as of August 10, 2007.
At December 31, 2007, total assets amounted to $525.1 million, an increase of $4.6 million, or 0.9%, over December 31, 2006 assets of $520.5 million. The Company's loan portfolio, net of allowances for loan losses, amounted to $412.3 million at December 31, 2007, unchanged from December 31, 2006. Total deposits amounted to $426.7 million at December 31, 2007, compared to $441.9 million at December 31, 2006, a decrease of $15.2 million, or 3.4%.
In December 2007 The Town Bank opened a new branch office in Cranford, New Jersey, and we anticipate that it will open another branch office in Fanwood during the first quarter of 2008. We anticipate that Two River Community Bank will also open a branch during the first quarter of 2008 in Manasquan, New Jersey. We anticipate that the expansion into these attractive Union and Monmouth County markets will provide for future growth and add value to our franchise.
Community Partners is the holding company for Two River Community Bank, which is headquartered in Middletown, New Jersey, and The Town Bank, which is headquartered in Westfield, New Jersey. Two River Community Bank currently operates ten branches throughout Monmouth County and The Town Bank currently operates two branches in Westfield and one branch in Cranford. Community Partners acquired The Town Bank on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River Community Bank as the acquiring entity. Community Partners was formed in connection with that transaction and had no business operations prior to April 1, 2006.
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 expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "may," "will," or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates or in national or local economic conditions in areas in which our operations are concentrated, increased competition, rapid growth, reliance on management and other key personnel, failure to achieve sufficient operational integration between Two River Community Bank and The Town Bank, and other such risks. Community Partners assumes no obligation for updating any such forward-looking statements at any time.
COMMUNITY PARTNERS BANCORP
CONSOLIDATED BALANCE SHEETS (Unaudited)
December 31, 2007 and December 31, 2006
(In thousands, except per share data)
December December
31, 31,
2007 2006
-------- --------
ASSETS
Cash and due from banks $ 9,675 $ 9,036
Federal funds sold 338 6,141
-------- --------
Cash and cash equivalents 10,013 15,177
Securities available-for-sale 55,545 44,756
Securities held-to-maturity (fair value of $7,492
and $7,638 at December
31, 2007 and December 31, 2006, respectively) 7,557 7,632
Loans 416,967 416,904
Allowance for loan losses (4,675) (4,567)
-------- --------
Net loans 412,292 412,337
Bank-owned life insurance 3,951 3,821
Premises and equipment, net 5,090 5,248
Accrued interest receivable 2,291 2,345
Goodwill and other intangible assets, net of
accumulated amortization
of $641 and $287 at December 31, 2007 and December
31, 2006,
respectively 26,299 26,543
Other assets 2,063 2,661
-------- --------
TOTAL ASSETS $525,101 $520,520
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-interest bearing $ 72,390 $ 72,119
Interest bearing 354,271 369,799
-------- --------
Total deposits 426,661 441,918
Securities sold under agreements to repurchase 15,187 7,802
Accrued interest payable 531 587
Long-term debt 7,500 -
Other liabilities 2,765 1,894
-------- --------
Total liabilities 452,644 452,201
-------- --------
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 6,500,000 shares
authorized; no shares
issued and outstanding - -
Common stock, no par value; 25,000,000 shares
authorized; 6,722,784 and
6,511,582 shares issued and outstanding at December
31, 2007 and
December 31, 2006, respectively 66,552 64,728
Retained earnings 5,805 3,884
Accumulated other comprehensive income (loss) 100 (293)
-------- --------
Total shareholders' equity 72,457 68,319
-------- --------
TOTAL LIABILITIES and SHAREHOLDERS' EQUITY $525,101 $520,520
======== ========
COMMUNITY PARTNERS BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Three Months and Twelve Months Ended December 31, 2007 and
2006
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- ----------------
2007 2006 2007 2006
-------- ------- ------- --------
(In thousands, except per share
data)
INTEREST INCOME:
Loans, including fees $ 7,721 $ 8,148 $32,021 $ 27,004
Investment securities 854 610 3,008 2,328
Federal funds sold 36 101 820 467
-------- ------- ------- --------
Total Interest Income 8,611 8,859 35,849 29,799
-------- ------- ------- --------
INTEREST EXPENSE:
Deposits 3,521 3,728 15,308 11,805
Securities sold under agreements to
repurchase 150 85 539 293
Borrowings 32 60 32 141
-------- ------- ------- --------
Total Interest Expense 3,703 3,873 15,879 12,239
-------- ------- ------- --------
Net Interest Income 4,908 4,986 19,970 17,560
PROVISION FOR LOAN LOSSES 51 112 108 649
-------- ------- ------- --------
Net Interest Income after
Provision for
Loan Losses 4,857 4,874 19,862 16,911
-------- ------- ------- --------
NON-INTEREST INCOME:
Service fees on deposit accounts 159 66 598 508
Other loan customer service fees 39 43 286 230
Earnings from investment in life
insurance 37 41 130 166
Other income 148 248 584 582
-------- ------- ------- --------
Total Non-Interest Income 383 398 1,598 1,486
-------- ------- ------- --------
NON-INTEREST EXPENSES:
Salaries and employee benefits 2,054 1,902 7,960 6,545
Occupancy and equipment 723 582 2,691 2,117
Professional 437 171 959 473
Insurance 144 77 559 232
Advertising 55 22 368 325
Data processing 86 270 444 609
Outside services fees 140 123 468 455
Amortization of identifiable
intangibles 86 96 354 287
Other operating 467 324 1,726 1,472
-------- ------- ------- --------
Total Non-Interest Expenses 4,192 3,567 15,529 12,515
-------- ------- ------- --------
Income before Income Taxes 1,048 1,705 5,931 5,882
INCOME TAX EXPENSE 380 649 2,279 2,183
-------- ------- ------- --------
Net Income $ 668 $ 1,056 $ 3,652 $ 3,699
======== ======= ======= ========
EARNINGS PER SHARE:
Basic $ 0.10 $ 0.16 $ 0.54 $ 0.61
Diluted $ 0.10 $ 0.15 $ 0.53 $ 0.59
Weighted average shares outstanding
(in thousands):
Basic 6,723 6,707 6,717 6,076
Diluted 6,898 6,885 6,885 6,260
SOURCE: Community Partners Bancorp
Media Information: Community Partners Bancorp Barry B. Davall, 732-706-9009 President & CEO www.communitypartnersbancorp.com
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