##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from                      to
 Commission file number: 000-52749
 BANCORP OF NEW JERSEY, INC.
  New Jersey
    
    20-8444387(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)204 Main Street, Fort Lee, New Jersey
    
    07024(Address of principal executive offices)
    
    (Zip Code)
 (201) 944-8600
   þ o
  o o þ
  o þ




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##### 



INDEX
 PAGEPart I Financial InformationItem 1.
    
    Financial Statements:Unaudited
Consolidated Statements of Financial Condition   June 30, 2007 and December 31, 2006
    
    
    3Unaudited Consolidated Statements of Operations  Three Months Ended June 30, 2007 and 2006
    
    
    4Unaudited Consolidated Statements of Operations  Six Months Ended June 30, 2007 and 2006
    
    
    5Unaudited Consolidated Statements of Cash Flows  Six Months Ended June 30, 2007 and 2006
    
    
    6Notes to Unaudited Consolidated Financial Statements
    
    
    7Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    25Item 4.
    
    Controls and Procedures
    
    
    27Part II Other InformationItem 1.
    
    Legal Proceedings
    
    
    28Item 1A.
    
    Risk Factors
    
    
    28Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    28Item 3.
    
    Defaults Upon Senior Securities
    
    
    28Item 4.
    
    Submission of Matters to a Vote of Securities Holders
    
    
    28Item 5.
    
    Other Information
    
    
    28Item 6.
    
    Exhibits
    
    
    28Signatures
    
    
    
    
    29Rule 13a-14(a) Certification Of the Principal Executive OfficerRule 13a-14(a) Certification Of the Principal Financial OfficerSection 1350 Certifications
  2




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BANCORP OF NEW JERSEY, INC.
 June 30, 2007
    
    
    December 31, 2006ASSETSCash and due from banks
    
    $
    1,538
    
    
    $
    284Interest bearing deposits
    
    
    607
    
    
    
    1,569Federal funds sold
    
    
    
    
    
    
    6,986Total cash and cash equivalents
    
    
    2,145
    
    
    
    8,839Securities available for sale
    
    
    100
    
    
    
    9,699Securities held to maturity, (estimated market
value of $1,998 in 2007 and $2,002 in
2006)
    
    
    1,993
    
    
    
    1,993Loans receivable
    
    
    141,086
    
    
    
    80,638Deferred loan fees and unamortized costs, net
    
    
    83
    
    
    
    47Less: allowance for loan losses
    
    
    1,494
    
    
    
    866Net loans
    
    
    139,675
    
    
    
    79,819Premises and equipment, net
    
    
    6,904
    
    
    
    4,612Accrued interest receivable
    
    
    488
    
    
    
    439Other assets
    
    
    833
    
    
    
    646TOTAL ASSETS
    
    $
    152,138
    
    
    $
    106,047LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIES:Deposits:Non-interest bearing
    
    $
    18,047
    
    
    $
    10,244Savings and interest-bearing transaction accounts
    
    
    47,672
    
    
    
    40,667Time deposits under $100
    
    
    3,617
    
    
    
    1,189Time deposits $100 and over
    
    
    31,372
    
    
    
    9,767Total deposits
    
    
    100,708
    
    
    
    61,867Federal funds purchased
    
    
    7,127
    
    
    
    Other liabilities
    
    
    770
    
    
    
    1,141TOTAL LIABILITIES
    
    
    108,605
    
    
    
    63,008Commitments and contingenciesStockholders equity:Common stock, no par value, authorized
20,000,000 shares; issued and outstanding
2,413,256 shares at June 30, 2007; $10 par value,
authorized 5,000,000 shares; issued and
outstanding 2,399,846 shares at December 31, 2006
    
    
    43,964
    
    
    
    23,998Additional Paid in Capital
    
    
    
    
    
    
    19,667Accumulated deficit
    
    
    (431
    )
    
    
    (665
    )Accumulated other comprehensive income
    
    
    
    
    
    
    39TOTAL STOCKHOLDERS EQUITY
    
    
    43,533
    
    
    
    43,039TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    152,138
    
    
    $
    106,047
  3




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##### Table of Contents



BANCORP OF NEW JERSEY, INC.
 For the three months ended June 30,2007
    
    
    2006(In thousands, except per share data)INTEREST INCOMEInterest on escrow funds
    
    $
    
    
    
    $
    157Loans, including fees
    
    
    2,334
    
    
    
    84Securities
    
    
    54
    
    
    
    3Federal funds sold
    
    
    3
    
    
    
    368TOTAL INTEREST INCOME
    
    
    2,391
    
    
    
    612INTEREST EXPENSESavings and money markets
    
    
    459
    
    
    
    18Time deposits
    
    
    331
    
    
    
    1Short term borrowings
    
    
    113
    
    
    
    42TOTAL INTEREST EXPENSE
    
    
    903
    
    
    
    61NET INTEREST INCOME
    
    
    1,488
    
    
    
    551Provision for loan losses
    
    
    239
    
    
    
    197NET INTEREST INCOME AFTER PROVISION
FOR LOAN AND LEASE LOSSES
    
    
    1,249
    
    
    
    354NONINTEREST INCOME principally fees and service charges
    
    
    41
    
    
    
    NONINTEREST EXPENSESalaries and employee benefits
    
    
    531
    
    
    
    380Occupancy and equipment expense
    
    
    174
    
    
    
    167Other expenses
    
    
    299
    
    
    
    112TOTAL NONINTEREST EXPENSE
    
    
    1,004
    
    
    
    659Income (loss) before provision for income taxes
    
    
    286
    
    
    
    (305
    )Provision for income taxes
    
    
    80
    
    
    
    NET INCOME (LOSS)
    
    $
    206
    
    
    $
    (305
    )PER SHARE OF COMMON STOCKBasic earnings (loss)
    
    $
    0.08
    
    
    $
    (0.13
    )Diluted earnings (loss)
    
    $
    0.08
    
    
    $
    (0.13
    )
   4




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BANCORP OF NEW JERSEY, INC.
 For the six months ended June 30,2007
    
    
    2006(In thousands, except per share data)INTEREST INCOMEInterest on escrow funds
    
    $
    
    
    
    $
    624Loans, including fees
    
    
    4,077
    
    
    
    84Securities
    
    
    215
    
    
    
    3Federal funds sold
    
    
    64
    
    
    
    368TOTAL INTEREST INCOME
    
    
    4,356
    
    
    
    1,079INTEREST EXPENSESavings and money markets
    
    
    916
    
    
    
    18Time deposits
    
    
    510
    
    
    
    1Short term borrowings
    
    
    118
    
    
    
    42TOTAL INTEREST EXPENSE
    
    
    1,544
    
    
    
    61NET INTEREST INCOME
    
    
    2,812
    
    
    
    1,018Provision for loan losses
    
    
    628
    
    
    
    197NET INTEREST INCOME AFTER PROVISION
FOR LOAN AND LEASE LOSSES
    
    
    2,184
    
    
    
    821NONINTEREST INCOME principally fees and service charges
    
    
    60
    
    
    
    NONINTEREST EXPENSESalaries and employee benefits
    
    
    1,031
    
    
    
    698Occupancy and equipment expense
    
    
    322
    
    
    
    287Other expenses
    
    
    550
    
    
    
    141TOTAL NONINTEREST EXPENSE
    
    
    1,903
    
    
    
    1,126Income (loss) before provision for income taxes
    
    
    341
    
    
    
    (305
    )Provision for income taxes
    
    
    107
    
    
    
    NET INCOME (LOSS)
    
    $
    234
    
    
    $
    (305
    )PER SHARE OF COMMON STOCKBasic earnings(loss)
    
    $
    0.10
    
    
    $
    (0.13
    )Diluted earnings(loss)
    
    $
    0.10
    
    
    $
    (0.13
    )
   5




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BANCORP OF NEW JERSEY, INC.
 For the six months endedJune 30,2007
    
    
    2006(in thousands)CASH FLOWS FROM OPERATING ACTIVITIESNet income (loss)
    
    $
    234
    
    
    $
    (305
    )Adjustments to reconcile net income (loss) to net cash
provided by operating activities:Depreciation and amortization
    
    
    69
    
    
    
    10Provision for loan losses
    
    
    628
    
    
    
    197Recognition of stock option expense
    
    
    43
    
    
    
    Changes in operating assets and liabilities:(Increase)decrease in accrued interest receivable
    
    
    (49
    )
    
    
    230Increase in other assets
    
    
    (187
    )
    
    
    (83
    )(Decrease)increase in accounts payable and other liabilities
    
    
    (371
    )
    
    
    5NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    367
    
    
    
    54CASH FLOWS FROM INVESTING ACTIVITIESPurchases of securities
    
    
    
    
    
    
    (3,991
    )Sales of securities available for sale
    
    
    9,560
    
    
    
    Net increase in loans
    
    
    (60,484
    )
    
    
    (16,479
    )Purchases of premises and equipment
    
    
    (2,361
    )
    
    
    (3,602
    )NET CASH USED IN
INVESTING ACTIVITIES
    
    
    (53,285
    )
    
    
    (24,072
    )CASH FLOWS FROM FINANCING ACTIVITIESNet increase in deposits
    
    
    38,841
    
    
    
    19,463Proceeds from issuance of common stock
    
    
    
    
    
    
    42,724Increase in federal funds purchased
    
    
    7,127
    
    
    
    Exercise of stock options and warrants
    
    
    256
    
    
    
    NET CASH PROVIDED BY
FINANCING ACTIVITIES
    
    
    46,224
    
    
    
    62,187Net (decrease) increase in cash and cash equivalents
    
    
    (6,694
    )
    
    
    38,169Cash and cash equivalents, beginning of year
    
    
    8,839
    
    
    
    12CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    2,145
    
    
    $
    38,181Cash paid during the period for:Interest
    
    $
    1,403
    
    
    $
    Income taxes
    
    $
    342
    
    
    $
    
  6




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BANCORP OF NEW JERSEY, INC.
 
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 2007
 Note 1. Significant Accounting Policies
 Basis
of Financial Statement Presentation
       7




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Organization
  Note 2. Stock Distribution
  Note 3. Benefit Plans and Stock-Based Compensation
  8




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ExercisepriceNumber of
    
    
    pershares
    
    
    shareOutstanding,
January 1, 2007
    
    
    62,150
    
    
    $
    18.18Granted
    
    
    0
    
    
    
    0.00Exercised
    
    
    (11,000
    )
    
    
    18.18Forfeited
    
    
    
    
    
    
    Outstanding,
end of quarter
    
    
    51,150
    
    
    $
    18.18Options
exercisable at June
30, 2007
    
    
    11,000
    
    
    $
    18.18
   9




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##### Table of Contents



Note 4. Earnings Per Share.
 Basic earnings per share
 Diluted earnings per share
  For the three months endedJune 30,(In thousands except per share data)
    
    2007
    
    
    2006Net income (loss) applicable to
common stock
    
    $
    206
    
    
    $
    (305
    )Weighted average number of common
shares outstanding  basic
    
    
    2,413
    
    
    
    2,400Basic earnings per share
    
    $
    0.08
    
    
    $
    (0.13
    )Net income (loss) applicable to common
stock
    
    $
    206
    
    
    $
    (305
    )Weighted average number of common
shares
and common share equivalents  diluted
    
    
    2,439
    
    
    
    2,400Diluted earnings per share
    
    $
    0.08
    
    
    $
    (0.13
    )
  10




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For the six months endedJune 30,(In thousands except per share data)
    
    2007
    
    
    2006Net income (loss) applicable to
common stock
    
    $
    234
    
    
    $
    (305
    )Weighted average number of common
shares outstanding  basic
    
    
    2,408
    
    
    
    2,400Basic earnings per share
    
    $
    0.10
    
    
    $
    (0.13
    )Net income (loss) applicable to common
stock
    
    $
    234
    
    
    $
    (305
    )Weighted average number of common
shares
and common share equivalents  diluted
    
    
    2,444
    
    
    
    2,400Diluted earnings per share
    
    $
    0.10
    
    
    $
    (0.13
    )
  11




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Note 5. Comprehensive Income
  Three months ended June 30,2007
    
    
    2006Comprehensive Income (Loss)Net income (loss)
    
    $
    206
    
    
    $
    (305
    )Gross unrealized holding losses on
securities available for sale
    
    
    (39
    )
    
    
    Gain realized on sale of securities
available for sale
    
    
    3
    
    
    
    Net unrealized holding losses on
securities available for sale (net of
taxes $(15))
    
    
    (36
    )
    
    
    Total comprehensive income(loss)
    
    $
    170
    
    
    $
    (305
    )
 Six months ended June 30,Comprehensive Income (Loss)
    
    2007
    
    
    2006Net income (loss)
    
    $
    234
    
    
    $
    (305
    )Gross unrealized holding losses on
securities available for sale
    
    
    (42
    )
    
    
    Gain realized on sale of securities
available for sale
    
    
    3
    
    
    
    Unrealized holding losses on securities
available for sale (net of taxes $(15))
    
    
    (39
    )
    
    
    Total comprehensive income (loss)
    
    $
    195
    
    
    $
    (305
    )
 12




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Note 6. Securities Available for Sale and Investment Securities
  Gross
    
    GrossUnrealized
    
    Unrealized
    
    MarketJune 30, 2007
    
    Amortized Cost
    
    Gains
    
    Losses
    
    ValueGovernment Sponsored
Enterprise obligations
    
    $
    
    
    
    
    
    
    
    
    
    
    
    $
    Equity Securities
    
    
    100
    
    
    
    
    
    
    
    
    
    
    
    100Total available for sale
    
    $
    100
    
    
    
    
    
    
    
    
    
    
    $
    100
 Gross
    
    GrossUnrealized
    
    Unrealized
    
    MarketDecember 31, 2006
    
    Amortized Cost
    
    Gains
    
    Losses
    
    ValueGovernment Sponsored
Enterprise obligations
    
    $
    9,560
    
    
    
    39
    
    
    
    
    
    
    $
    9,599Equity Securities
    
    
    100
    
    
    
    
    
    
    
    
    
    
    
    100Total available for sale
    
    $
    9,660
    
    
    
    39
    
    
    
    
    
    
    $
    9,699
  Gross
    
    GrossUnrealized
    
    Unrealized
    
    MarketJune 30, 2007
    
    Amortized Cost
    
    Gains
    
    Losses
    
    ValueObligations of U.S. Treasury
    
    $
    1,993
    
    
    
    5
    
    
    
    
    
    
    $
    1,998Total held to maturity
    
    $
    1,993
    
    
    
    5
    
    
    
    
    
    
    $
    1,998
 Gross
    
    GrossUnrealized
    
    Unrealized
    
    MarketDecember 31, 2006
    
    Amortized Cost
    
    Gains
    
    Losses
    
    ValueObligations of U.S. Treasury
    
    $
    1,993
    
    
    
    9
    
    
    
    
    
    
    $
    2,002Total held to maturity
    
    $
    1,993
    
    
    
    9
    
    
    
    
    
    
    $
    2,002
 13




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Note 7. Loans.
  June 30, 2007
    
    
    December 31, 2006Real estate
    
    $
    95,340
    
    
    $
    50,787Commercial
    
    
    23,964
    
    
    
    14,678Credit lines
    
    
    19,294
    
    
    
    13,519Consumer
    
    
    2,488
    
    
    
    1,654$
    141,086
    
    
    $
    80,638
  14




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Three months ended June 30,2007
    
    
    2006Balance at beginning of period
    
    $
    1,255
    
    
    $
    0Provision charged to expense
    
    
    239
    
    
    
    197Loans charged off
    
    
    0
    
    
    
    0Recoveries
    
    
    0
    
    
    
    0Balance at end of period
    
    $
    1,494
    
    
    $
    197
 Six months ended June 30,2007
    
    
    2006Balance at beginning of period
    
    $
    866
    
    
    $
    0Provision charged to expense
    
    
    628
    
    
    
    197Loans charged off
    
    
    0
    
    
    
    0Recoveries
    
    
    0
    
    
    
    0Balance at end of period
    
    $
    1,494
    
    
    $
    197
  Note 8. Guarantees
  15




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Note 9. Recent Accounting Pronouncements
      16




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Note 10. Subsequent Event
   17




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ITEM 2
Managements Discussion and Analysis of
Financial Condition and Results of Operations
  Statements Regarding Forward Looking Information
    18




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Critical Accounting Policies, Judgments and Estimates
  Allowance for Loan Losses
  Deferred Income Taxes
  19




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##### Table of Contents



Results of Operations
 Three Months Ended June 30, 2007 and 2006 and Six Months Ended June 30, 2007 and 2006
   Net Income
    Net Interest Income
   20




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Provision for Loan and Lease Losses
  Non-interest Income
  Non-interest Expense
  Income Tax Expense
  FINANCIAL CONDITION
 %.
 21




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Loans
     Loan Quality
    22




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Investment Securities
  Deposits
  Borrowings and Federal Funds Purchased
  Liquidity
     23




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##### Table of Contents



Capital Resources
     MinimumJune 30,
    
    Regulatory2007
    
    RequirementsRisk-Based Capital :Tier 1 Capital Ratio
    
    
    32.80
    %
    
    
    4.0
    %Total Capital Ratio
    
    
    33.93
    %
    
    
    8.0
    %Leverage Ratio
    
    
    30.11
    %
    
    
    8.0
    %
   24




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ITEM 3. Quantitative and Qualitative Disclosures about Market/Interest Risk
   25




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0 - 3
    
    
    0 - 6
    
    
    0 - 1
    
    
    0 - 5Months
    
    
    Months
    
    
    Year
    
    
    Years
    
    
    5 + Years
    
    
    All Others
    
    
    TOTALSecurities, excluding
equity securities
    
    $
    
    
    
    $
    
    
    
    $
    1,993
    
    
    $
    1,993
    
    
    $
    
    
    
    $
    
    
    
    $
    1,993Loans :Commercial
    
    
    17,362
    
    
    
    17,387
    
    
    
    17,987
    
    
    
    22,270
    
    
    
    1,694
    
    
    
    
    
    
    
    23,964Real Estate
    
    
    24,514
    
    
    
    24,742
    
    
    
    25,757
    
    
    
    60,864
    
    
    
    5,242
    
    
    
    29,234
    
    
    
    95,340Credit Lines
    
    
    17,961
    
    
    
    18,894
    
    
    
    19,294
    
    
    
    19,294
    
    
    
    
    
    
    
    
    
    
    
    19,294Consumer
    
    
    220
    
    
    
    220
    
    
    
    305
    
    
    
    858
    
    
    
    238
    
    
    
    1,392
    
    
    
    2,488Federal Funds Sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other Assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,059
    
    
    
    9,059TOTAL ASSETS
    
    $
    60,057
    
    
    $
    61,243
    
    
    $
    65,336
    
    
    $
    105,279
    
    
    $
    7,174
    
    
    $
    39,685
    
    
    $
    152,138Transaction /
Demand Accounts
    
    
    11,124
    
    
    
    11,124
    
    
    
    11,124
    
    
    
    11,124
    
    
    
    
    
    
    
    
    
    
    
    11,124Money Market
    
    
    33,880
    
    
    
    33,880
    
    
    
    33,880
    
    
    
    33,880
    
    
    
    
    
    
    
    
    
    
    
    33,880Savings
    
    
    2,668
    
    
    
    2,668
    
    
    
    2,668
    
    
    
    2,668
    
    
    
    
    
    
    
    
    
    
    
    2,668Time Deposits
    
    
    6,415
    
    
    
    8,870
    
    
    
    34,867
    
    
    
    34,988
    
    
    
    
    
    
    
    
    
    
    
    34,988Fed Funds Purchased
    
    
    7,127
    
    
    
    7,127
    
    
    
    7,127
    
    
    
    7,127
    
    
    
    
    
    
    
    
    
    
    
    7,127Other Liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,047
    
    
    
    18,047Equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,304
    
    
    
    44,304TOTAL LIABILITIES
AND EQUITY
    
    $
    61,214
    
    
    $
    63,669
    
    
    $
    89,666
    
    
    $
    89,787
    
    
    $
    
    
    
    $
    62,351
    
    
    $
    152,138Dollar Gap
    
    
    (1,157
    )
    
    
    (2,462
    )
    
    
    (24,330
    )
    
    
    15,492
    
    
    
    Gap / Total Assets
    
    
    (0.76
    %)
    
    
    (1.59
    %)
    
    
    (15.99
    %)
    
    
    10.18
    %Target Gap Range
    
    
    +/- 35.00
    
    
    
    +/- 30.00
    
    
    
    +/- 25.00
    
    
    
    +/- 25.00RSA / RSL
    
    
    98.11
    %
    
    
    96.19
    %
    
    
    72.87
    %
    
    
    117.25
    %(Rate Sensitive
Assets to Rate
Sensitive
Liabilities)
 26




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##### Table of Contents



ITEM 4. Controls and Procedures
 Evaluation of disclosure controls and procedures.
   Changes in internal controls over financial reporting.
  27




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##### Table of Contents



PART II OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A.Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Securities Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
  28




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##### Table of Contents



SIGNATURES
  Bancorp of New Jersey, Inc.Date: August 14, 2007
    By:
    /s/ Albert F. BuzzettiAlbert F. BuzzettiPresident and Chief Executive OfficerBy:
    /s/ Michael LeslerMichael LeslerExecutive Vice President and
Chief Financial Officer 29




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description31.1
    
    Rule 13a-14(a) Certification of the Principal Executive Officer31.2
    
    Rule 13a-14(a) Certification of the Principal Financial Officer32
    
    Section 1350 Certifications
 30