Bancorp Of New Jersey, Inc. Announces Third Quarter Earnings

FORT LEE, N.J., Nov. 09, 2016 (GLOBE NEWSWIRE) -- Bancorp of New Jersey, Inc. (NYSE MKT:BKJ) (the "Company"), holding company for Bank of New Jersey, reported net income for the nine months ended September 30, 2016 of $3.0 million compared to net income of $3.8 million for the nine months ended September 30, 2015, a decrease of $771 thousand or 20.4%. Earnings per diluted share were $0.48 for the nine months ended September 30, 2016 compared to $0.62 per diluted share for the nine months ended September 30, 2015, a decrease of $0.14. Net income for the third quarter of 2016 was $680 thousand, representing a decrease of $678 thousand, or 49.9%, from $1.4 million for the third quarter of 2015. Earnings per diluted share were $0.11 for the quarter ended September 30, 2016, a decrease of $0.11 from the diluted earnings per share of $0.22 for the quarter ended September 30, 2015.

During the nine months ended September 30, 2016, net interest income increased by $738 thousand, or 4.2%, reaching $18.4 million from $17.1 million in the prior year period, a record nine month net interest income for the Company. President and CEO Nancy E. Graves commented: "We are pleased with our commercial loan portfolio growth and our strong pipeline. Additionally, we are focused on increasing the commercial checking accounts in our core deposit mix, which is lowering our cost of funds."  During the third quarter of 2016, net interest income was $6.2 million, $399 thousand, or 6.9%, greater than the $5.8 million in third quarter of 2015. During the first nine months of 2016, noninterest expense, net, increased by $994 thousand, or 8.8%, reaching $12.3 million from $11.3 million for the first nine months of 2015. During the third quarter of 2016, noninterest expense, net, increased by $249 thousand, or 6.6%, and reached $4.0 million as compared to $3.8 million for the third quarter of 2015. "The increase in noninterest expense, net, is due to initiatives undertaken by management which require increased investments in consulting, legal, and risk management systems" stated CEO Graves.  For the nine months ended September 30, 2016, the provision for loan losses was $1.6 million, compared to provision for loan losses of $659 thousand for the nine months ended September 30, 2015. For the quarter ended September 30, 2016, the provision for loan losses was $1.1 million, compared to a recovery of loan losses of $124 thousand for the quarter ended September 30, 2015. CEO Graves stated "The majority of the increased provision was related to a single commercial loan which was placed on non-accrual, with an accompanying loss.  Our asset quality remains strong."

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