EX-99
2
ex99-072508.txt
PRESS RELEASE DATED JULY 25, 2008

                                  PRESS RELEASE

                                  Contact: Fred G. Kowal
                                           President and Chief Operating Officer
                                           (973) 748-3600
American Bancorp of New Jersey, Inc.
American Bank of New Jersey
365 Broad Street
Bloomfield, NJ  07003-2798

NASDAQ Global Market "ABNJ"                 For Immediate Release
                                            ---------------------
                                            July 25, 2008

                 AMERICAN BANCORP OF NEW JERSEY, INC. ANNOUNCES
                           THIRD QUARTER 2008 EARNINGS

Bloomfield,  New Jersey - July 25, 2008 - American  Bancorp of New Jersey,  Inc.
(NASDAQ:  ABNJ) ("American" or the "Company"),  the holding company for American
Bank of New Jersey (the "Bank"),  announced today net income of $431,000 for the
quarter  ended June 30, 2008.  By  comparison,  net income for the quarter ended
June 30, 2007 was $150,000. Basic and diluted earnings per share for the quarter
ended June 30, 2008 were $0.04 and $0.04,  respectively.  By comparison, for the
quarter ended June 30, 2007, basic and diluted earnings per share were $0.01 and
$0.01, respectively.

The Company's  earnings for the nine months ended June 30, 2008 were $512,000 in
comparison  to  $628,000  for the nine  months  ended June 30,  2007.  Basic and
diluted  earnings  per share for the nine months  ended June 30, 2008 were $0.05
and $0.05, respectively. By comparison, for the nine months ended June 30, 2007,
basic and diluted earnings per share were $0.05 and $0.05, respectively.

For the nine months ended June 30, 2008, loans  receivable,  net increased $33.3
million or 7.6% to $471.2 million from $437.9 million at September 30, 2007. The
growth  was  comprised  of  net  increases  in   commercial   loans,   including
multi-family,  commercial real estate, construction and business loans, totaling
$32.5 million. The increase in loans receivable, net also included net increases
in home equity loans and home equity lines of credit  totaling  $1.8 million and
net  increases  in consumer  loans of $247,000.  Offsetting  the growth in these
categories was a $799,000  decrease in the balance of 1-4 family first mortgages
and a net increase to the allowance for loan losses totaling $397,000.

For that  same  period,  the  balance  of the  Company's  investment  securities
increased  by  $27.2  million.   This  net  growth  in  securities  was  largely
attributable to a wholesale  growth  transaction in March 2008 through which the
Company purchased  approximately  $50.0 million of  mortgage-related  investment
securities  funded  by an  equivalent  amount  of  borrowings  from the FHLB and
through reverse  repurchase  agreements.  The net interest income resulting from
this  transaction is intended to augment the Company's  earnings as it continues
to incur the near term costs  associated  with  executing its business plan. The
growth in securities  associated with this  transaction was partially  offset by
the continued  reinvestment of a significant  portion of the funds received from
maturing debentures and other mortgage-related security repayments into the loan
portfolio.  The Company's balance of cash and cash equivalents decreased by $4.8
million which also provided a portion of the funding for the Company's  reported
net loan growth and continued  share  repurchases  during the current nine month
period.

The balance of deposits  increased  $22.2 million for the nine months ended June
30, 2008.  This net growth  reflected  increases in  certificates of deposit and
noninterest   bearing   checking   accounts  of  $36.6   million  and   $64,000,
respectively.  This growth was offset by reductions in interest bearing checking
and savings accounts of $13.7 million and $819,000,  respectively.  For the same
period,  borrowings  increased  $44.0 million  reflecting  the additions to FHLB
advances and reverse  repurchase  agreements  associated  with the $50.0 million



wholesale  growth  transaction  noted above offset by the net  repayment of $6.0
million of maturing FHLB term advances. Additionally, the Company reported a net
increase  of $10.5  million in  treasury  stock  attributable  primarily  to the
Company's share  repurchase  programs.  For the nine months ended June 30, 2008,
the Company has  repurchased a total of 1,002,070  shares at an average price of
$10.44 per share.

The Company's yield on earning assets decreased 26 basis points to 5.43% for the
quarter ended June 30, 2008 from 5.69% for the quarter ended June 30, 2007. This
decrease  reflected the impact of overall reductions in market interest rates on
the yields of repricing assets which has more than offset the beneficial  impact
on earning asset yields  resulting from the Company's  growth in higher yielding
commercial loans.

The decrease in the yield on earning assets between the comparative quarters was
outpaced by a reduction in the  Company's  interest  costs for the same periods.
The Company's cost of interest-bearing  liabilities decreased 86 basis points to
3.44% for the quarter  ended June 30, 2008 from 4.30% for the quarter ended June
30, 2007.  This  decrease in interest  cost was  primarily  attributable  to two
related factors.  First, the Company continued to reduce the interest rates paid
on deposits  generated  through the three full service  branches  opened  during
fiscal  2007 on which  promotional  interest  rates had  originally  been  paid.
Second,  reductions in market interest rates enabled the Company to reduce rates
paid on many  interest-bearing  deposit types across all branches. In total, the
Company's  net interest  spread  widened 59 basis points to 1.99% from 1.40% for
those same comparative periods.

The factors  noted in the  quarterly  discussion  above have also  effected  the
Company's  comparative  net  interest  spread for the nine months ended June 30,
2008 and 2007. For these comparative  periods, the Company's net interest spread
widened 28 basis points to 1.74% from 1.46%. The increase in net interest spread
resulted  primarily  from a 27 basis  point  decrease in the  Company's  cost of
interest-bearing  liabilities  to 3.88% from 4.15% while the Company's  yield on
earnings assets increased by 2 basis points to 5.63% from 5.61%.

The factors  resulting in the widening of the Company's net interest spread also
positively  impacted the  Company's  net interest  margin for both the three and
nine month  periods  ended June 30, 2008.  However,  the impact of the Company's
share  repurchase  plans on net interest  margin for each period  diminished the
benefits of the widening net interest spread. For the comparative three and nine
month  periods  ended June 30, 2008 and 2007,  the  average  balance of treasury
stock  increased $16.9 million and $19.1 million,  respectively,  reflecting the
Company's share repurchase activity. The foregone interest income on the earning
assets used to fund those share repurchases significantly impacted the Company's
net interest margin  reported for the comparative  three and nine month periods.
For the three months ended June 30, 2008, the Company  reported a 21 basis point
increase in net interest margin to 2.53% from 2.32% for the same period in 2007.
By contrast,  for the nine months ended June 30, 2008, the Company  reported a 3
basis point  reduction in net  interest  margin to 2.41% from 2.44% for the same
period in 2007.

The Company  reported an increase in net interest income of $649,000 or 21.2% to
$3.7  million  for the  quarter  ended June 30,  2008 from $3.1  million for the
quarter  ended  June  30,  2007.  This  increase  was  partially   offset  by  a
comparatively greater provision to the allowance for loan losses. For those same
comparative  periods,  the Company's  loan loss provision  increased  $44,000 to
$121,000  from  $77,000.  The  provision  for loan  losses for both  comparative
periods primarily  resulted from the application of historical and environmental
loss factors  against the net growth in loans in accordance with the Bank's loan
loss methodology.

For the nine months ended June 30, 2008, the Company reported an increase in net
interest  income of $731,000 or 7.9% to $10.0  million from $9.3 million for the
nine  months  ended June 30,  2007.  This  increase  was  partially  offset by a
comparatively  greater  provision  for loan losses.  For those same  comparative
periods,  the Company's loan loss provision  increased $111,000 to $431,000 from
$320,000.  The  expense  for the nine  months  ended June 30,  2008  reflected a
provision  of $34,000  attributable  to one  impaired  construction  loan,  that
portion of which was deemed uncollectible by management during its asset quality
review  conducted at March 31, 2008 and  therefore  charged  off. The  remaining
balance  of the  impaired  loan at June 30,  2008,  after the  charge  off,  was



approximately  $146,000.  By  contrast,  the expense in the earlier  comparative
period reflected a reversal of an $86,000  impairment reserve that was no longer
required.  Excluding these  adjustments,  the provision for loan losses for both
comparative  periods  primarily  resulted from the application of historical and
environmental  loss factors  against the net growth in loans in accordance  with
the Bank's loan loss methodology.

For the three month  period ended June 30, 2008,  noninterest  income  increased
$73,000 to $481,000  from  $408,000  for the quarter  ended June 30,  2007.  The
growth in noninterest  income was largely  attributable  to increases in deposit
service fees and charges.  A portion of the increase was attributable to deposit
service fees and charges at the Bank's de novo  branches  opened  during  fiscal
2007.  However,  the reported increase was also due to growth in deposit-related
fees and charges  within the Bank's other  branches.  Additionally,  the Company
reported  increases in income from the cash  surrender  value of life  insurance
attributable to a combination of higher average  balances and improved yields on
those assets.  The Company also reported an increase in other noninterest income
attributable primarily to growth in loan-related fees and charges including, but
not limited to, increases in prepayment penalties and late charges. Offsetting a
portion of these  increases in  noninterest  income was the absence of loan sale
gains  that had been  reported  during the  earlier  comparative  period  when a
portion of one-to  four-family  loans  originated  were sold into the  secondary
market - a strategy that was discontinued  during fiscal 2008 in favor of adding
all loans originated to the Company's portfolio.

For the nine months ended June 30, 2008,  noninterest  income increased $263,000
to $1.3  million  from $1.1  million for the same period in 2007.  The growth in
noninterest   income  for  the  comparative   nine  month  periods  was  largely
attributable to the same factors as those impacting the comparative  three month
periods discussed above.

For the three months ended June 30, 2008, noninterest expense increased $214,000
to $3.4 million from $3.2 million for the three months ended June 30, 2007. This
growth in  noninterest  expense  was  primarily  attributable  to  increases  in
occupancy and equipment, data processing, legal, professional and consulting and
other  noninterest  expenses.   These  increases  in  noninterest  expense  were
partially offset by reductions in salaries and employee benefits and advertising
expenses.

The  reported  increase  of  $224,000  in  occupancy  and  equipment  expense is
attributable, in part, to the costs of the two additional branches opened in the
latter half of fiscal 2007. However,  the comparative increase also reflects the
ongoing  operating costs associated with the Bank's relocated  Bloomfield branch
which  opened in April,  2008.  Additionally,  the  increase  includes  the cost
associated with outsourcing a significant  portion of the Company's  information
technology  infrastructure  support  services that had been provided by in-house
resources  during the  earlier  comparative  period.  The  reported  increase of
$16,000  in  data  processing  charges  was  also  largely  attributable  to the
associated  costs of the two  additional  branches  opened in the latter half of
fiscal 2007 including both core processing and item processing expenses.

The reported  increase in legal expense was primarily  attributable  to recently
completed revisions to benefit plan agreements as required by  newly-implemented
Internal  Revenue Service  regulations  while the increase in  professional  and
consulting  expenses  resulted from  additional  costs  associated with disaster
recovery and physical  security planning and review services utilized during the
more recent comparative quarter.

Finally,  the growth in other  noninterest  expense  includes  increases in FDIC
insurance  expense  resulting  from both growth in the  balance of  FDIC-insured
deposits  plus the  expiration of FDIC  insurance  credits which had reduced the
Bank's net cost of FDIC deposit insurance over several prior quarters. Increases
in  noninterest  expense also  included  increases in  corporate  insurance  and
regulatory assessment expenses.

The reported net decrease in compensation expense reflects, in part, the absence
in the current period of the changes in director retirement plan benefit accrual
assumptions   that  had  increased  the  related  expenses  during  the  earlier
comparative   period.   The  remaining   portion  of  the  decrease  is  largely
attributable to accrued  compensation  expense  reductions based on current year
bonus projections.



Notwithstanding   these  factors,   other  increases  in  compensation   expense
attributable to the two additional  branches opened in the latter half of fiscal
2007 have  been  largely  offset by the  Company's  other  compensation  expense
control  efforts  which have resulted in a nearly 10% reduction in the number of
full time equivalent  employees  during fiscal 2008.  Similarly,  the absence of
denovo branch grand opening costs resulted in the reduction in advertising costs
reported for the more recent comparative quarter.

For the nine months  ended June 30, 2008,  noninterest  expense  increased  $1.1
million to $10.3  million  from $9.1  million for the same  period in 2007.  The
growth in  noninterest  expense  for the  comparative  nine  month  periods  was
generally  attributable  to the same factors as those  impacting the comparative
three month periods  discussed  above.  Additionally,  the reported  increase in
compensation  expense for the nine month period included a charge resulting from
the death of a director emeritus of the Company during the second fiscal quarter
ended March 31,  2008.  Under the terms of the  Company's  restricted  stock and
stock option plans, the vesting of the remaining  unearned  benefits accruing to
the former director through these plans was automatically accelerated.  As such,
the  Company  incurred  an  acceleration  of  the  remaining   pre-tax  expenses
associated  with these  benefits  totaling  approximately  $254,000  during that
quarter.

The following tables present selected balance sheet data as of June 30, 2008 and
September  30, 2007 and  selected  operating  data for the three months and nine
months ended June 30, 2008 and June 30, 2007.






FINANCIAL HIGHLIGHTS (unaudited) At June 30, At September 30, 2008 2007 ---- ---- % Total % Total Balance Assets Balance Assets ------- ------- ------- ------- SELECTED FINANCIAL DATA (in thousands): Assets Cash and cash equivalents $ 32,643 5.18% $ 37,421 6.52% Securities available-for-sale 85,136 13.50 58,093 10.13 Securities held-to-maturity 6,856 1.09 6,730 1.17 Loans held for sale - - 1,243 0.22 Loans receivable, net 471,220 74.70 437,883 76.32 Premises and equipment 12,038 1.91 10,856 1.89 Federal Home Loan Bank stock 3,014 0.48 2,553 0.45 Cash surrender value of life insurance 13,619 2.16 13,214 2.30 Accrued interest receivable 2,365 0.37 2,212 0.39 Other assets 3,832 0.61 3,533 0.61 ---------------- ------- ---------------- ------- Total assets $ 630,723 100.00% $ 573,738 100.00% ================ ======= ================ ======= Liabilities and equity Deposits $ 450,760 71.47% $ 428,600 74.70% Advances for taxes and insurance 2,925 0.46 2,702 0.47 Borrowings 81,564 12.93 37,612 6.56 Other liabilities 4,581 0.73 4,231 0.74 Equity 90,893 14.41 100,593 17.53 ---------------- ------- ---------------- ------- Total liabilities and equity $ 630,723 100.00% $ 573,738 100.00% ================ ======= ================ ======= % Total % Total Loan Data Balance Loans Balance Loans ------- ----- ------- ----- 1-4 family mortgage loans $ 262,648 55.74% $ 263,448 60.16% Home equity loans 14,446 3.07 14,625 3.34 Home equity lines of credit 21,795 4.63 19,829 4.53 Multifamily mortgage loans 33,326 7.07 30,552 6.98 Nonresidential mortgage loans 85,520 18.15 68,431 15.63 Land and property acquisition loans 5,241 1.11 3,340 0.76 Construction loans 1,849 8.88 32,542 7.43 Business loans 8,458 1.79 7,029 1.61 Consumer loans 902 0.19 655 0.15 Allowance for loans losses (2,965) (0.63) (2,568) (0.59) --------------- ------- ---------------- ------- Loans receivable, net $ 471,220 100.00% $ 437,883 100.00% =============== ======= ================ ======= % Total % Total Deposit Data Balance Deposits Balance Deposits ------- -------- ------- -------- Noninterest-bearing deposits 30,558 6.78% 30,494 7.11% Interest-bearing checking 98,128 21.77 111,795 26.08 Savings 91,959 20.40 92,778 21.65 Certificates of deposit 230,115 51.05 193,533 45.16 --------------- ------- ---------------- ------- Deposits $ 450,760 100.00% $ 428,600 100.00% =============== ======= ================ =======
FINANCIAL HIGHLIGHTS (continued) (unaudited)
At June 30, At September 30, 2008 2007 ---- ---- Capital Ratios Equity to total assets (%) 14.41 17.53 Outstanding shares (#) 10,948,286 11,946,190 Asset Quality Ratios: Non-performing loans to total loans (%) 0.19 0.28 Non-performing assets to total assets (%) 0.14 0.22 Allowance for loan losses to non-performing loans (%) 332.16 205.56 Allowance for loan losses to total loans (%) 0.63 0.58
For the nine months ended For the three months ended June 30, June 30, 2008 2007 2008 2007 ---- ---- ---- ---- SELECTED OPERATING DATA (in thousands): Total interest income $ 23,387 $ 21,375 $ 7,963 $ 7,508 Total interest expense 13,366 12,085 4,250 4,444 --------------- -------------- --------------- --------------- Net interest income 10,021 9,290 3,713 3,064 Provision for loan losses 431 320 121 77 --------------- -------------- --------------- --------------- Net interest income after provision for loan losses 9,590 8,970 3,592 2,987 Noninterest income 1,314 1,051 481 408 Noninterest expense 10,263 9,117 3,420 3,204 --------------- -------------- --------------- --------------- Income (loss) before income taxes 641 904 653 191 Provision (benefit) for income taxes 129 276 222 41 --------------- -------------- --------------- --------------- Net income (loss) $ 512 $ 628 $ 431 $ 150 =============== ============== =============== =============== Performance Ratios: Return on average assets 0.12% 0.16% 0.28% 0.11% Return on average equity 0.72 0.75 1.89 0.56 Net interest rate spread 1.74 1.46 1.99 1.40 Net interest margin 2.41 2.44 2.53 2.32 Noninterest income to average total assets 0.30 0.26 0.31 0.29 Noninterest expense to average total assets 2.32 2.27 2.20 2.30 Efficiency Ratio 90.55 88.16 81.52 92.29 PER SHARE DATA: Earnings per share Basic 0.05 0.05 0.04 0.01 Diluted 0.05 0.05 0.04 0.01
The foregoing material contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning our financial condition, results of operations and business. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements. We do not undertake, and specifically disclaim, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

The following information was filed by American Bancorp Of New Jersey Inc on Friday, July 25, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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