FORT LEE, N.J., November 4, 2019 – Shares of Bancorp Of New Jersey Inc. (NYSE: BKJ) gained 0.44% to $18.22. The stock traded total volume of 1.829K shares lower than the average volume of 30.88K shares.
For the second quarter of 2019, Bancorp of New Jersey, Inc. (NYSE American: BKJ) reported net income of $1.34M, or $0.18 per diluted share, compared to net income of $1.19M, or $0.16 per diluted share, for the second quarter of 2018. For the year to date period, net income increased $372.0K, or 14.7% over the prior year, to $2.91M, or $0.40 per diluted share, compared to earnings of $2.53M, or $0.35 per diluted share, for the first six months of 2018.
Total loans were $782.30M at June 30, 2019, up $16.40M from the December 31, 2018 balance of $765.90M. Total deposits were $762.00M at June 30, 2019, up $25.30M from the December 31, 2018 balance of $736.70M. Net interest margin was 2.92% at the end of the second quarter compared to 2.96% at the end of the first quarter of 2019.
Three and Six Months Ended June 30, 2019 Financial Review
Net Interest Income:
For the three months ended June 30, 2019, net interest income decreased by $88.0K or 1.4% versus the same period last year. For the six months ended June 30, 2019, net interest income decreased by $397.0K or 3.0% versus the same period last year.
Total interest income increased by $1.00M or 11.7% for the three months ended June 30, 2019 as compared to the corresponding period last year. During the six months ended June 30, 2019, interest income increased by $1.70M or 9.8% versus the same period last year. This increase in interest income was primarily due to loan growth.
Total interest expense increased by $1.10M in the second quarter of 2019 to $3.30M compared to $2.20M in the prior year period. During the six months ended June 30, 2019, interest expense increased by $2.10M versus the same period last year. The increase in interest expense was due to an increase in deposit balances and higher interest rates on deposits and borrowed funds as obtaining and retaining deposits remain extremely competitive.
Provision for Loan Losses:
The Company recognized a provision for loan losses of $140.0K for both the three and six months ended June 30, 2019 compared to a provision for loan losses of $325.0K and $650.0K for the three and six months ended June 30, 2018, respectively. The allowance for loan losses to total loans was 1.09% as of June 30, 2019.
Non-Interest Expense:
Non-interest expense was $4.70M during the second quarter of 2019 and 2018, while non-interest expense was $9.20M for the six months ended June 30, 2019 compared to $9.40M for the same period in 2018, a decrease of $171.0K or 1.8%. The decrease is a result of the Company’s continued focus on efficiencies.
Income Tax Expense:
The income tax accrual for the three months ended June 30, 2019 was $329.0K compared to $361.0K for the same period in 2018. The income tax accrual for the six months ended June 30, 2019 was $760.0K compared to $796.0K for the same period in 2018. As the New Jersey Division of Taxation is still reviewing certain provisions of the recent changes in New Jersey tax laws, the Company is accruing for its 2019 New Jersey income tax expense at a rate similar to that applicable in 2018, until such time as the New Jersey Division of Taxation comes to a conclusion on these provisions.
Net Income:
Net income for the second quarter of 2019 was $1.34M compared to net income of $1.19M for the second quarter of 2018, an increase of $155.0K or 13.0%. Net income for the six months ended June 30, 2019 was $2.9M compared to net income of $2.53M for the same period in 2018, an increase of $372.0K or 14.7%.
Financial Condition:
Total assets increased by $41.00M, or 4.6%, from $883.70M at December 31, 2018 to $924.70M at June 30, 2019, reflecting an increase in cash and cash equivalents, loans receivable and other assets related to the recording of a right of use asset due to the adoption of Accounting Standards Update 2016-02 – Leases, as of January 1, 2019.
Total cash and cash equivalents increased from $64.50M at December 31, 2018 to $86.20M at June 30, 2019, an increase of $21.70M. The change in cash is mainly due to an increase in deposit account balances and the maturity of certain securities.
BKJ has the market capitalization of $132.28M and its EPS growth ratio for the past five years was -0.40%. The return on assets ratio of the Company was 0.60% while its return on investment ratio stands at 27.00%. Price to sales ratio was 3.50 while 11.90% of the stock was owned by institutional investors.
