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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 endedMarch 31, 2009
 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: 001-34089
 BANCORP OF NEW JERSEY, INC.
  New Jersey
    
    20-8444387(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 1365 Palisade Ave, Fort Lee, New Jersey
    
    07024(Address of principal executive offices)
    
    (Zip Code)
 (201) 944-8600
  þ o
 Yes
o No
o
 Rule 12b-2
 Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




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##### 



INDEX
 PAGEPart I Financial InformationItem 1. Financial Statements:Unaudited Consolidated Statements of Financial Condition
 March 31, 2009 and December 31, 2008
    
    
    3Unaudited Consolidated Statements of Operations  Three
Months Ended March 31, 2009 and 2008
    
    
    4Unaudited Consolidated Statements of Cash Flows  Three
Months Ended March 31, 2009 and 2008
    
    
    5Notes to Unaudited Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    26Item 4. Controls and Procedures
    
    
    26Part II Other InformationItem 1. Legal Proceedings
    
    
    27Item 1A. Risk Factors
    
    
    27Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 3. Defaults Upon Senior Securities
    
    
    27Item 4. Submission of Matters to a Vote of Securities Holders
    
    
    27Item 5. Other Information
    
    
    27Item 6. Exhibits
    
    
    27Signatures
    
    
    28Exhibit 31.1Exhibit 31.2Exhibit 32
   2




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BANCORP OF NEW JERSEY, INC.
 
 
 March 31, 2009
    
    
    December 31, 2008ASSETSCash and due from banks
    
    $
    227
    
    
    $
    304Interest bearing deposits
    
    
    32,237
    
    
    
    40,107Federal funds sold
    
    
    4,131
    
    
    
    69Total cash and cash equivalents
    
    
    36,595
    
    
    
    40,480Restricted investment in bank stock, at cost
    
    
    346
    
    
    
    346Securities available for sale
    
    
    24,269
    
    
    
    17,731Securities held to maturity
    
    
    4,296
    
    
    
    Loans receivable
    
    
    240,788
    
    
    
    234,846Deferred loan fees and unamortized costs, net
    
    
    85
    
    
    
    90Less: allowance for loan losses
    
    
    (2,432
    )
    
    
    (2,371
    )Net loans
    
    
    238,441
    
    
    
    232,565Premises and equipment, net
    
    
    10,322
    
    
    
    10,284Accrued interest receivable
    
    
    1,271
    
    
    
    847Other assets
    
    
    1,497
    
    
    
    1,851TOTAL ASSETS
    
    $
    317,037
    
    
    $
    304,104LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIES:Deposits:Non-interest bearing
    
    $
    27,941
    
    
    $
    28,187Savings and interest-bearing transaction accounts
    
    
    59,902
    
    
    
    60,289Time deposits under $100
    
    
    41,318
    
    
    
    41,855Time deposits $100 and over
    
    
    138,707
    
    
    
    123,675Total deposits
    
    
    267,868
    
    
    
    254,006Accrued interest payable and other liabilities
    
    
    1,092
    
    
    
    2,234TOTAL LIABILITIES
    
    
    268,960
    
    
    
    256,240Commitments and contingenciesStockholders equity:Common stock, no par value, authorized 20,000,000
shares; issued and outstanding 5,068,273 shares at
March 31, 2009; and 5,065,283 shares at December
31, 2008
    
    
    47,270
    
    
    
    47,133Retained earnings
    
    
    795
    
    
    
    678Accumulated other comprehensive income
    
    
    12
    
    
    
    53TOTAL STOCKHOLDERS EQUITY
    
    
    48,077
    
    
    
    47,864TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    317,037
    
    
    $
    304,104
   3




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BANCORP OF NEW JERSEY, INC.
 
  For the Three Months Ended March 31,2009
    
    
    2008(In thousands, except per share data)INTEREST INCOMELoans, including fees
    
    $
    3,378
    
    
    $
    3,141Securities
    
    
    179
    
    
    
    85Federal funds sold
    
    
    42
    
    
    
    502TOTAL INTEREST INCOME
    
    
    3,599
    
    
    
    3,728INTEREST EXPENSESavings and money markets
    
    
    124
    
    
    
    433Time deposits
    
    
    1,605
    
    
    
    1,781TOTAL INTEREST EXPENSE
    
    
    1,729
    
    
    
    2,214NET INTEREST INCOME
    
    
    1,870
    
    
    
    1,514Provision for loan losses
    
    
    61
    
    
    
    158NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
    
    
    1,809
    
    
    
    1,356NONINTEREST INCOME  principally fees and service charges
    
    
    38
    
    
    
    64NONINTEREST EXPENSESalaries and employee benefits
    
    
    916
    
    
    
    841Occupancy and equipment expense
    
    
    342
    
    
    
    274Data processing
    
    
    79
    
    
    
    79Other expenses
    
    
    300
    
    
    
    182TOTAL NONINTEREST EXPENSE
    
    
    1,637
    
    
    
    1,376Income before provision for income taxes
    
    
    210
    
    
    
    44Income tax expense
    
    
    94
    
    
    
    32NET INCOME
    
    $
    116
    
    
    $
    12PER SHARE OF COMMON STOCKBasic and diluted earnings
    
    $
    0.02
    
    
    $
    0.00
   4




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BANCORP OF NEW JERSEY, INC.
 
  For the Three Months EndedMarch 31,2009
    
    
    2008(in thousands)CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    116
    
    
    $
    12Adjustments to reconcile net income to net cash
used in operating activities:Depreciation and amortization
    
    
    97
    
    
    
    86Provision for loan losses
    
    
    61
    
    
    
    158Recognition of stock option expense
    
    
    104
    
    
    
    102Fees earned from mortgage referrals
    
    
    
    
    
    
    (4
    )Changes in operating assets and liabilities:Increase in accrued interest receivable
    
    
    (424
    )
    
    
    (313
    )Decrease(increase) in other assets
    
    
    351
    
    
    
    (100
    )Decrease in other liabilities
    
    
    (1,142
    )
    
    
    (29
    )NET CASH USED IN OPERATING ACTIVITIES
    
    
    (837
    )
    
    
    (88
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchases of securities available for sale, net
    
    
    (14,064
    )
    
    
    (13,033
    )Proceeds from sales or calls of securities available for sale
    
    
    7,391
    
    
    
    Purchases of securities held to maturity
    
    
    (4,296
    )
    
    
    Net increase in loans
    
    
    (5,876
    )
    
    
    (18,347
    )Purchases of premises and equipment
    
    
    (99
    )
    
    
    (96
    )NET CASH USED IN INVESTING ACTIVITIES
    
    
    (16,944
    )
    
    
    (31,476
    )CASH FLOWS FROM FINANCING ACTIVITIESNet increase in deposits
    
    
    13,862
    
    
    
    14,874Exercise of stock options
    
    
    23
    
    
    
    Exercise of warrants
    
    
    11
    
    
    
    185NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    13,896
    
    
    
    15,059Net decrease in cash and cash equivalents
    
    
    (3,885
    )
    
    
    (16,505
    )Cash and cash equivalents, beginning of year
    
    
    40,480
    
    
    
    66,115CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    36,595
    
    
    $
    49,610Cash paid during the period for:Interest
    
    $
    1,619
    
    
    $
    1,950Income taxes
    
    $
    134
    
    
    $
    80
   5




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BANCORP OF NEW JERSEY, INC.
 
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 Note 1. Significant Accounting Policies
 Basis of Financial Statement Presentation
        6




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Organization
  Note 2. Stockholders Equity and Related Transactions
  Note 3. Benefit Plans and Stock-Based Compensation
 2006 Stock Option Plan
    7




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2007 Director Plan
       8




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Note 4. Earnings Per Share.
 Basic earnings per share
 Diluted earnings per share
 
 For the Three Months EndedMarch 31,(In thousands except per share data)
    
    2009
    
    
    2008Net income applicable to common stock
    
    $
    116
    
    
    $
    12Weighted average number of common
shares outstanding  basic
    
    
    5,066
    
    
    
    4,981Basic earnings per share
    
    $
    0.02
    
    
    $
    0.00Net income applicable to common stock
    
    $
    116
    
    
    $
    12Weighted average number of common
shares and common share equivalents
 diluted
    
    
    5,066
    
    
    
    5,224Diluted earnings per share
    
    $
    0.02
    
    
    $
    0.00
    9




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Note 5. Comprehensive Income
  Three months ended March 31,2009
    
    
    2008Comprehensive IncomeNet income
    
    $
    116
    
    
    $
    12Unrealized holding gain(loss) on
securities available for sale, net of
taxes of $21 and $34 for 2009 and 2008,
respectively
    
    
    (42
    )
    
    
    61Total comprehensive income
    
    $
    74
    
    
    $
    73
  10




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Note 6. Securities Available for Sale and Investment Securities
  Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairMarch 31, 2009
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueGovernment Sponsored
Enterprise obligations
    
    $
    24,250
    
    
    $
    83
    
    
    $
    (64
    )
    
    $
    24,269
 Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairDecember 31, 2008
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueGovernment Sponsored
Enterprise obligations
    
    $
    17,641
    
    
    $
    90
    
    
    
    
    
    
    $
    17,731
   Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairMarch 31, 2009
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueObligations of
states and
political
subdivisions
    
    $
    4,296
    
    
    
    
    
    
    
    (9
    )
    
    $
    4,287
    11




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Note 7. Loans.
  March 31,
    
    
    December 31,2009
    
    
    2008Real estate
    
    $
    162,781
    
    
    $
    159,058Commercial
    
    
    33,596
    
    
    
    33,319Credit lines
    
    
    39,966
    
    
    
    37,962Consumer
    
    
    4,445
    
    
    
    4,507$
    240,788
    
    
    $
    234,846
   12




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Three months ended
    
    
    Three months endedMarch 31, 2009
    
    
    March 31, 2008Balance at beginning of period
    
    $
    2,371
    
    
    $
    1,912Provision charged to expense
    
    
    61
    
    
    
    158Balance at end of period
    
    $
    2,432
    
    
    $
    2,070
  Note 8. Guarantees
  Note 9. Fair Value Measurements
    13




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
    
    Level 1 Inputs Unadjusted quoted prices in active markets that are accessible at the
measurement date for identical, unrestricted assets or liabilities.
 
    
    Level 2 Inputs Quoted prices in markets that are not active, or inputs that are
observable either directly or indirectly, for substantially the full term of the asset or
liability.
 
    
    Level 3 Inputs Prices or valuation techniques that require inputs that are both
significant to the fair value measurement and unobservable (i.e. supported with little or
no market activity).
   14




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(Level 1)QuotedPrices in
    
    
    (Level 2)Active
    
    
    Significant
    
    
    (Level 3)Markets for
    
    
    Other
    
    
    SignificantMarch 31,
    
    
    Identical
    
    
    Observable
    
    
    UnobservableDescription
    
    2009
    
    
    Assets
    
    
    Inputs
    
    
    InputsSecurities
available for sale
    
    $
    24,260
    
    
    $
    
    
    
    $
    24,260
    
    
    $
    
 (Level 1)QuotedPrices in
    
    
    (Level 2)Active
    
    
    Significant
    
    
    (Level 3)Markets for
    
    
    Other
    
    
    SignificantDecember 31,
    
    
    Identical
    
    
    Observable
    
    
    UnobservableDescription
    
    2008
    
    
    Assets
    
    
    Inputs
    
    
    InputsSecurities
available for sale
    
    $
    17,731
    
    
    $
    
    
    
    $
    17,731
    
    
    $
    
  (Level 1)QuotedPrices in
    
    
    (Level 2)Active
    
    
    Significant
    
    
    (Level 3)Markets for
    
    
    Other
    
    
    SignificantMarch 31,
    
    
    Identical
    
    
    Observable
    
    
    UnobservableDescription
    
    2009
    
    
    Assets
    
    
    Inputs
    
    
    InputsImpaired loans
    
    $
    1,977
    
    
    $
    
    
    
    $
    
    
    
    $
    1,977
 (Level 1)QuotedPrices in
    
    
    (Level 2)Active
    
    
    Significant
    
    
    (Level 3)Markets for
    
    
    Other
    
    
    SignificantDecember 31,
    
    
    Identical
    
    
    Observable
    
    
    UnobservableDescription
    
    2008
    
    
    Assets
    
    
    Inputs
    
    
    InputsImpaired loans
    
    $
    1,977
    
    
    $
    
    
    
    $
    
    
    
    $
    1,977
  15




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Note 10. Recent Accounting Pronouncements
 FSP FAS 157-4
 Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly Fair Value Measurements
   Recognition and Presentation of
Other-Than-Temporary Impairments
 FSP FAS 115-2 and FAS 124-2
 Recognition and Presentation of
Other-Than-Temporary Impairments
   16




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Determining Fair Value When the Volume and
Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly
 FSP FAS 107-1 and APB 28-1
 Interim Disclosures about Fair Value
of Financial Instruments Disclosures about Fair Value of Financial Instruments Interim Financial Reporting
 Determining Fair Value When the Volume and
Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly Recognition and Presentation of
Other-Than-Temporary Impairments.
  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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Results of Operations
 Three Months Ended March 31, 2009 compared to Three Months Ended March 31, 2008
  Net Income
   Net Interest Income
  Provision for Loan Losses
  Non-interest Income
   20




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Non-interest Expense
   Income Tax Expense
   21




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FINANCIAL CONDITION
 %.
 Loans
    Form 10-Q.
  22




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Loan Quality
      Investment Securities
  Deposits
   23




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Liquidity
     Capital Resources
     24




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MinimumMarch 31,
    
    
    Regulatory2009
    
    
    RequirementsRisk-Based Capital:Tier 1 Capital Ratio
    
    
    20.46
    %
    
    
    4.0
    %Total Capital Ratio
    
    
    21.50
    %
    
    
    8.0
    %Leverage Ratio
    
    
    15.31
    %
    
    
    4.0
    %
     25




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Item 3. Quantitative and Qualitative Disclosures about Market/Interest Risk
  
 Item 4. Controls and Procedures
 Evaluation of disclosure controls and procedures.
   Changes in internal controls over financial reporting.
 
  26




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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
   27




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SIGNATURES
  Bancorp of New Jersey, Inc.Date: May 15, 2009
    By:
    /s/ Albert F. BuzzettiAlbert F. BuzzettiPresident and Chief Executive OfficerBy:
    /s/ Michael LeslerMichael LeslerExecutive Vice President
and
Chief Financial Officer  28




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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
  29