COURT HOUSE — Earnings are down for the largest bank headquartered in Cape May County.
According to an Oct. 28 release, Cape Bancorp, the parent company of Cape Bank, reported $593,0000 in net income, or 5 cents per share, for the third quarter ending Sept. 30. That income represented a decline from the previous quarter ending on June 30 when the bank earned $1.3 million or 11 cents per share.
The release noted two impairment charges that adversely affected the company’s quarterly earnings. One charge was related to equity securities from federally rescued mortgage companies, Fannie Mae and Freddie Mac.
Cape Bancorp President and CEO Herbert Hornsby stated in a release that the company would not seek federal assistance related to its Frannie Mae and Freddie Mac exposure.
“Cape continues to be well capitalized,” Hornsby said.
“The Board of Directors reviewed the TARP plan proposed by the Treasury Department and banking regulators and has opted not to apply for these funds,” he added. “The Board believes that with the current high level of capital the costs of these preferred shares and the limitations they impose on future capital management are not in the best interest of shareholders.”
Hornsby also noted that the board took some cost-saving measures including termination of director benefits and freezing employee defined benefit plans.
The company’s total assets decreased from $1.159 billion on June 30 to $1.128 billion on Sept. 30, a decline of $21.3 million or 2.66 percent, the release stated.
For the nine months ended Sept. 30 Cape Bancorp had a net loss of $317,000 or 6 cents per share due to a $6.3 million contribution to its charitable foundation, $2.4 million in impairment charges, $2.1 million in provisions for loan losses and $785,000 in expenses associated with the acquisition of Boardwalk Bank and its name change from Cape Savings Bank.
Cape Bank completed an initial public offering of its common stock on Jan. 31 selling 7,820,000 shares on the Nasdaq exchange at $10 per share under the symbol “CBNJ.”
As of noon on Oct. 30, Cape Bancorp was selling at $8.27 per share.
Cape Bank operates 18 full-service branches in Cape May and Atlantic counties including its headquarters at 225 N. Main St. in Court House.
Two other banks are headquartered in Cape May County, Crest Savings Bank and Sturdy Savings Bank.
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com
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