Bancorp of New Jersey Inc. (BKJ, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 $48.9 million; its shares were traded at around $9.65 with a P/E ratio of 80.4 and P/S ratio of 7.1.
Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the volume of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them. For the three month period, the growth in net interest income has been, primarily, driven by increased interest income from loans, including fees, and a focus on lower cost deposits. During the first quarter of 2009, net interest income reached $1.9 million from $1.5 million during the first quarter of 2008. As a result of the increased net interest income, the Company was able to absorb an increase in non-interest expense of approximately $261 thousand, or 19.0%.
Non-interest expense reached $1.6 million during the first quarter of 2009 compared to $1.4 million in the first quarter of 2008, an increase of approximately $261 thousand. This increase reflects 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 $12.9 million, or approximately 4.2%, from $304.1 million at December 31, 2008 to $317.0 million at March 31, 2009. Total deposits increased from $254.0 million at December 31, 2008 to $267.9 million at March 31, 2009, an increase of $13.9 million, or approximately 5.5%. Loans receivable, or total loans, increased from $234.9 million at December 31, 2008 to $240.9 million at March 31, 2009, an increase of approximately $6 million, or 2.6%.
Securities held as available for sale (AFS) were approximately $24.3 million at March 31, 2009 compared to $17.7 million at December 31, 2008. This increase in the AFS category represented the purchase of securities during the period with funds in excess of federal funds sold. Securities held to maturity, which represented approximately $4.3 million at March 31, 2009 increased by that amount due to purchase of a local municipal bond during the period. At December 31, 2008, there were no held to maturity securities.
Deposits remain our primary source of funds. Total deposits increased from $254.0 million at December 31, 2008 to $267.9 million at March 31, 2009, an increase of $13.9 million, or 5.5%. This increase is directly attributable to an increase in our time deposit accounts, and we believe it reflects the public perception of our safety and soundness. During this interest rate environment, our attractive time deposit products have allowed for increased net interest income.
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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 $48.9 million; its shares were traded at around $9.65 with a P/E ratio of 80.4 and P/S ratio of 7.1.
Highlight of Business Operations:
Net income for the first quarter of 2009 reached $116 thousand compared to net income of $12 thousand for the first quarter of 2008. This increase was bolstered, primarily, by increased net interest income. During the first quarter of 2009, net interest income increased by 26.7%, or approximately $400 thousand, to $1.9 million from $1.5 million for the first quarter of 2008.Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the volume of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them. For the three month period, the growth in net interest income has been, primarily, driven by increased interest income from loans, including fees, and a focus on lower cost deposits. During the first quarter of 2009, net interest income reached $1.9 million from $1.5 million during the first quarter of 2008. As a result of the increased net interest income, the Company was able to absorb an increase in non-interest expense of approximately $261 thousand, or 19.0%.
Non-interest expense reached $1.6 million during the first quarter of 2009 compared to $1.4 million in the first quarter of 2008, an increase of approximately $261 thousand. This increase reflects 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 $12.9 million, or approximately 4.2%, from $304.1 million at December 31, 2008 to $317.0 million at March 31, 2009. Total deposits increased from $254.0 million at December 31, 2008 to $267.9 million at March 31, 2009, an increase of $13.9 million, or approximately 5.5%. Loans receivable, or total loans, increased from $234.9 million at December 31, 2008 to $240.9 million at March 31, 2009, an increase of approximately $6 million, or 2.6%.
Securities held as available for sale (AFS) were approximately $24.3 million at March 31, 2009 compared to $17.7 million at December 31, 2008. This increase in the AFS category represented the purchase of securities during the period with funds in excess of federal funds sold. Securities held to maturity, which represented approximately $4.3 million at March 31, 2009 increased by that amount due to purchase of a local municipal bond during the period. At December 31, 2008, there were no held to maturity securities.
Deposits remain our primary source of funds. Total deposits increased from $254.0 million at December 31, 2008 to $267.9 million at March 31, 2009, an increase of $13.9 million, or 5.5%. This increase is directly attributable to an increase in our time deposit accounts, and we believe it reflects the public perception of our safety and soundness. During this interest rate environment, our attractive time deposit products have allowed for increased net interest income.
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