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Community Bank of Bergen County NJ
12-79 River Road,
Fair Lawn NJ 07410
(201) 791-0101
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210 Rochelle Avenue,
Rochelle Park NJ 07662
(201) 843-2300
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125 West Pleasant Avenue,
Maywood NJ 07607
(201) 587-1221
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517 River Drive,
Garfield NJ 07026
(973) 478-6633
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Dear Community Bank of Bergen County Customers and Shareholders,
As Community Bank of Bergen County, NJ celebrates its 81st Anniversary of serving our local communities, we find ourselves
still navigating through the most difficult economic period since the Great Depression. The past year has been one of the most
challenging periods in the history of the financial services industry. Governments around the world, including the United
States, took unprecedented measures to restore confidence in the banking system and to unfreeze credit markets. However,
despite these coordinated efforts, we still face some tough economic times in the coming year. Community Bank has not been
immune to this economic downturn.
While Community Bank has always maintained conservative loan underwriting practices, these extraordinary times have produced
a significant downturn in the residential housing market and the commercial real estate market. This slowdown has impacted our
loan portfolio, resulting in increased charge-offs and non-performing loans. We believe that our strong capital position will
allow us to weather the storm as things slowly improve. Looking ahead, we still face a challenging job market and real estate
market in 2010, and we expect our loan-loss provisions to remain higher than average for Community Bank. While the Bank’s 2009
earnings will be much lower than last year, Community Bank is still profitable. We continue to monitor our operations in an
effort to reduce expenses and operate more efficiently. In addition to the economic challenges, our FDIC insurance premiums
have increased approximately $650,000 over last year, directly reducing net income. Unfortunately, the existing banks must
replenish the FDIC fund that has been greatly diminished by all the failed banks in the country. Even though the lack of
sufficient earnings will negatively affect capital in the short term, we have not cut or eliminated our dividend. Although
future dividend payments can not be guaranteed, we are confident that next year we can earn enough to cover the dividend.
On a positive note, the economic downturn has provided Community Bank with an opportunity to attract new business from
customers who previously banked with larger financial institutions and mortgage brokers. Over the past year, we have seen a
renewed interest from families and businesses looking to deal with a local community bank. Since being founded in 1928,
Community Bank has witnessed many difficult economic times including the Great Depression, the Stock Market Crash of the
1980s, and the Savings & Loan crisis. Through it all, Community Bank has continued to grow and prosper, providing families
with mortgage loans to buy their dream home, and small businesses with the financing they need to grow their business. We
remain confident that we are ready for the many changes that are still to come for the banking industry, and continue to build
long-term value for our shareholders.
In closing, I’d like to thank you for your investment and confidence in Community Bank of Bergen County. All of our Officers
and Employees remain committed to providing seven-day convenience, unparalleled service, and a powerful mix of banking
products and services to Bergen County and the surrounding areas. If you are not currently a Community Bank customer, I
encourage you to become one and enjoy our Small Bank, Big Service experience.
Wishing you and your families a Happy and Healthy Holiday Season,
Peter A. Michelotti
President & Chief Executive Officer
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