SOURCE: Cape Bancorp, Inc.

Cape Bancorp, Inc.

February 24, 2009 15:45 ET

Cape Bancorp, Inc. Announces Revised Fourth Quarter and Annual 2008 Results

CAPE MAY COURT HOUSE, NJ--(Marketwire - February 24, 2009) - Cape Bancorp, Inc. ("Company") (NASDAQ: CBNJ), the parent company of Cape Bank, announced that in connection with its year-end audit and related evaluation of its investment portfolio occurring following its February 13, 2009 announcement of year-end 2008 results, the Company will record an additional other-than-temporary impairment charge to earnings of $6.8 million (net of tax) in the fourth quarter 2008 for investments in certain pooled trust preferred securities.

This earnings release revises the Company's earnings release dated February 13, 2009.

In connection with the year-end audit, and as a result of subsequent information regarding deferrals of interest and expected defaults of issuers and revisions of assumptions utilized in determining other-than-temporary impairment, management concluded that an additional other-than-temporary impairment occurred in its fourth quarter and year-end 2008 results. Unrealized losses previously recognized in other comprehensive income, a component of stockholders' equity on the Company's balance sheet, have now been reflected as other-than-temporary impairment on the income statement. This will result in a full-year 2008 net loss of $(42.5) million or $(3.49) per share, compared to a net loss of $(35.7) million, or $(2.94) per share as previously announced. For the fourth quarter of 2008, the charge increases its previously announced net loss to $(42.2) million or $(3.43) per share, from $(35.4) million, or $(2.88) per share.

Management will continue to evaluate its securities portfolio and monitor the fair value of its securities pursuant to appropriate fair value methodologies, and no assurances can be given that no future additional other-than-temporary impairment charges may be necessary. At December 31, 2008, the remaining unrealized loss associated with these trust preferred securities recorded through other comprehensive income was approximately $8.8 million pre-tax ($5.5 million net of tax). This change has no effect on previously reported total stockholders' equity, book value or tangible book value per share.

SELECTED BALANCE SHEET DATA
(Unaudited, in thousands)
                                 At             At
                            December 31,   September 30,
                                2008           2008
                            -----------    ------------
Investments                 $   163,480    $    180,144
Net Loans                       783,869         778,683
Allowance for Loan Losses        11,240           9,949
Total Assets                  1,090,735       1,128,259
Total Deposits                  711,130         730,276
Total Borrowings                234,484         212,863
Total Equity                    140,725         177,682




SELECTED INCOME STATEMENT DATA
(Unaudited, in thousands except share data)

                               Three Months   Three Months   Twelve Months
                                  Ended          Ended           Ended
                               December 31,   September 30,   December 31,
                                   2008           2008            2008
                               -----------    ------------   ------------
Interest Income                $    14,471    $     15,154   $     58,127
Interest Expense                     5,663           6,084         24,253
Net Interest Income                  8,808           9,070         33,874
Provision for Loan Losses            6,861           1,309          9,009
Non-Interest Income                (11,996)           (870)       (10,793)
Non-Interest Expense                38,250           6,722         64,717
Tax Expense (benefit)               (6,125)           (424)        (8,154)
Net Income (loss)                  (42,174)            593        (42,491)
Earnings (loss) per Share(1)         (3.43)           0.05          (3.49)
Average Shares Outstanding      12,285,267      12,273,615     12,280,494

(1) Earnings Per Share calculation excludes $401,658 from year-to-date net
income. This amount represents income earned by Cape Savings Bank (now Cape
Bank) prior to the formation of Cape Bancorp. Earnings Per Share
calculations use average outstanding shares which includes earned ESOP
shares.




SELECTED RATIOS and PERFORMANCE MEASUREMENTS

                          At or for the    At or for the    At or for the
                           three months     three months    twelve months
                              ended            ended            ended
                           December 31,    September 30,     December 31,
                               2008            2008              2008
                          ------------     ------------      -----------
ROAA                           (14.94%)           0.21%           (3.86%)
ROAE                           (96.08%)           1.30%          (24.47%)
Net Interest Margin              3.52%            3.61%            3.48%
Efficiency Ratio               382.55%           64.55%          167.31%
Equity to Assets
 (end of period)                12.90%           15.75%           12.90%
Tangible Equity/Tangible
 Assets                         10.99%           11.40%           10.99%

Non-Performing Loans to Total
 Gross Loans                     2.65%            2.83%            2.65%
Loan Loss Reserve to
 Non-Performing Loans           53.39%           44.62%           53.39%
Loan Loss Reserve to Total
 Gross Loans                     1.41%            1.26%            1.41%

Book Value                     $10.57           $13.35           $10.57
Tangible Book Value            $ 8.81           $ 9.18           $ 8.81
Stock Price                    $ 9.25           $ 9.15           $ 9.25
Price to Book Value             87.51%           68.54%           87.51%
Price to Tangible Book Value   104.99%           99.67%          104.99%

This press release discusses primarily historical information. Statements included in this release, to the extent they are forward looking, involve a number of risks and uncertainties such as competitive factors, economic conditions and regulatory changes in the banking industry. Further information on factors that could affect Cape Bancorp's financial results can be found in the Cape Bancorp's Form 10-K for the Year Ended December 31, 2007, which was filed by Cape Bancorp with the Securities and Exchange Commission on March 31, 2008.

Contact Information

  • For further information contact
    Michael D. Devlin
    Chief Executive Officer

    Robert J. Boyer
    Chief Operating Officer

    Cape Bancorp
    (609) 465-5600