Rumson-Fair Haven Bank & Trust Company is pleased to report that income before taxes for the first three months of 2008 amounted to $83,000 and compares with $98,000 for the first three months of 2007. Excluding several non-recurring accrual adjustments, income before taxes would have increased approximately 22 percent over 2007. Net income was $100,000 for the first quarter of 2008, as compared with $181,000 for the first three months of 2007.
Basic and fully diluted earnings per share amounted to $.05 and compared with $.09 per share for 2007.
The decline in net income can be largely attributed to the recognition in 2007 of significant income tax credits amounting to $122,000 resulting from the reduction of the valuation allowance on our deferred income tax assets, the most significant of which are the benefits associated with our federal and state tax loss carryforwards. The credit in 2008 amounted to $52,000 and was offset by non-recurring operating expenses the most significant being an accrual for FDIC premiums. This accrual now matches the expense with the respective FDIC assessment period.
Total assets at March 31, 2008 amounted to $135 Million while deposits totaled $106 Million. Book value amounted to $6.49 per share.
Robert E. Davis, President and CEO, commented that the increase in net interest income was due to higher loan levels, up 16% as compared with a year ago, and that both net interest spread and margin showed improvement despite the precipitous decline in the prime rate. Average deposits also increased significantly, up $9.3 Million or 11%, due in large part to the Shrewsbury Branch. Plans for the opening of the Asbury Park Branch continue and a summer opening is anticipated.
The Bank also announced a ten (10) percent stock distribution payable to shareholders of record on May 21, 2008 and to be paid on June 11, 2008. This is the fifth consecutive ten percent stock distribution declared by the Bank. Prior period per share amounts were restated to reflect the effects of the 10% stock dividend declared and paid in 2007.
The Bank is a New Jersey state-chartered bank with three branches; the Bank's principal office is located at 20 Bingham Avenue, Rumson, New Jersey 07760, with branches located at 636 River Road, Fair Haven, New Jersey 07704 and 500 Broad Street, Shrewsbury, New Jersey 07702.
The business of the Bank is to provide deposit and lending services for individuals and small to medium-sized businesses and professional practices in the Bank's market area. Through its affiliation with Peapack Gladstone Financial Services it provides asset management services. The Bank offers traditional services such as safe deposit boxes, drive-through teller windows, as well as Internet banking and electronic bill-payment. -- Rumson-Fair Haven Bank & Trust Company
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