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 March 31, 2008
 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.)1365 Palisade Ave, Fort Lee, New Jersey
    
    07024(Address of principal executive offices)
    
    (Zip Code)
 (201) 944-8600
 
 204 Main Street, Fort Lee, New Jersey 07024
 þ o
  Large accelerated filer oAccelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)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, 2008 and December 31, 2007
    
    
    3Unaudited Consolidated Statements of Operations  Three Months Ended March 31, 2008 and 2007
    
    
    4Unaudited Consolidated Statements of Cash Flows  Three Months Ended March 31, 2008 and 2007
    
    
    5Notes to Unaudited Consolidated Financial Statements
    
    
    6Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    16Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    23Item 4.
    
    Controls and Procedures
    
    
    23Part II Other InformationItem 1.
    
    Legal Proceedings
    
    
    24Item 1A.
    
    Risk Factors
    
    
    24Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    24Item 3.
    
    Defaults Upon Senior Securities
    
    
    24Item 4.
    
    Submission of Matters to a Vote of Securities Holders
    
    
    24Item 5.
    
    Other Information
    
    
    24Item 6.
    
    Exhibits
    
    
    24Signatures
    
    
    
    
    25
 2




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BANCORP OF NEW JERSEY, INC.
 
 
 March 31, 2008
    
    
    December 31, 2007ASSETSCash and due from banks
    
    $
    1,626
    
    
    $
    8,481Interest bearing deposits
    
    
    984
    
    
    
    543Federal funds sold
    
    
    47,000
    
    
    
    57,091Total cash and cash equivalents
    
    
    49,610
    
    
    
    66,115Restricted investment in bank stock, at cost
    
    
    328
    
    
    
    328Securities available for sale
    
    
    13,095
    
    
    
    Securities held to maturity (fair value
approximates $2,016 in 2008 and $2,014 in 2007,
respectively)
    
    
    1,999
    
    
    
    1,996Loans receivable
    
    
    201,796
    
    
    
    183,460Deferred loan fees and unamortized costs, net
    
    
    87
    
    
    
    76Less: allowance for loan losses
    
    
    (2,070
    )
    
    
    (1,912
    )Net loans
    
    
    199,813
    
    
    
    181,624Premises and equipment, net
    
    
    8,310
    
    
    
    8,300Accrued interest receivable
    
    
    926
    
    
    
    613Other assets
    
    
    1,369
    
    
    
    1,269TOTAL ASSETS
    
    $
    275,450
    
    
    $
    260,245LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIES:Deposits:Non-interest bearing
    
    $
    24,012
    
    
    $
    23,292Savings and interest-bearing transaction accounts
    
    
    68,006
    
    
    
    55,645Time deposits under $100
    
    
    42,705
    
    
    
    41,303Time deposits $100 and over
    
    
    93,092
    
    
    
    92,701Total deposits
    
    
    227,815
    
    
    
    212,941Accrued interest payable and other liabilities
    
    
    1,435
    
    
    
    1,464TOTAL LIABILITIES
    
    
    229,250
    
    
    
    214,405Commitments and contingenciesStockholders equity:Common stock, no par value, authorized 20,000,000
shares; issued and outstanding 4,987,571 shares at
March 31, 2008; and 4,970,090 shares at December
31, 2007
    
    
    45,976
    
    
    
    45,689Retained earnings
    
    
    163
    
    
    
    151Accumulated other comprehensive income
    
    
    61
    
    
    
    TOTAL STOCKHOLDERS EQUITY
    
    
    46,200
    
    
    
    45,840TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    275,450
    
    
    $
    260,245




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BANCORP OF NEW JERSEY, INC.
 For the Three Months Ended March 31,2008
    
    
    2007(In thousands, except per share data)INTEREST INCOMELoans, including fees
    
    $
    3,141
    
    
    $
    1,743Securities
    
    
    85
    
    
    
    161Federal funds sold
    
    
    502
    
    
    
    61TOTAL INTEREST INCOME
    
    
    3,728
    
    
    
    1,965INTEREST EXPENSESavings and money markets
    
    
    433
    
    
    
    457Time deposits
    
    
    1,781
    
    
    
    179Short term borrowings
    
    
    
    
    
    
    5TOTAL INTEREST EXPENSE
    
    
    2,214
    
    
    
    641NET INTEREST INCOME
    
    
    1,514
    
    
    
    1,324Provision for loan losses
    
    
    158
    
    
    
    389NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
    
    
    1,356
    
    
    
    935NONINTEREST INCOME  principally fees and service charges
    
    
    64
    
    
    
    19NONINTEREST EXPENSESalaries and employee benefits
    
    
    841
    
    
    
    500Occupancy and equipment expense
    
    
    274
    
    
    
    148Other expenses
    
    
    261
    
    
    
    251TOTAL NONINTEREST EXPENSE
    
    
    1,376
    
    
    
    899Income before provision for income taxes
    
    
    44
    
    
    
    55Income tax expense
    
    
    32
    
    
    
    27NET INCOME
    
    $
    12
    
    
    $
    28PER SHARE OF COMMON STOCKBasic earnings
    
    $
    0.00
    
    
    $
    0.01Diluted earnings
    
    $
    0.00
    
    
    $
    0.01
   4




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BANCORP OF NEW JERSEY, INC.
 For the Three Months EndedMarch 31,2008
    
    
    2007(in thousands)CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    12
    
    
    $
    28Adjustments to reconcile net income to net cash
used in operating activities:Depreciation and amortization
    
    
    86
    
    
    
    23Provision for loan losses
    
    
    158
    
    
    
    389Recognition of stock option expense
    
    
    102
    
    
    
    22Fees earned from mortgage referrals
    
    
    (4
    )
    
    
    Changes in operating assets and liabilities:Increase in accrued interest receivable
    
    
    (313
    )
    
    
    (153
    )Increase in other assets
    
    
    (100
    )
    
    
    (126
    )Decrease in other liabilities
    
    
    (29
    )
    
    
    (378
    )NET CASH USED IN OPERATING ACTIVITIES
    
    
    (88
    )
    
    
    (195
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchases of securities available for sale
    
    
    (13,033
    )
    
    
    Net increase in loans
    
    
    (18,347
    )
    
    
    (36,648
    )Purchases of premises and equipment
    
    
    (96
    )
    
    
    (856
    )NET CASH USED IN INVESTING ACTIVITIES
    
    
    (31,476
    )
    
    
    (37,504
    )CASH FLOWS FROM FINANCING ACTIVITIESNet increase in deposits
    
    
    14,874
    
    
    
    20,661Increase in federal funds purchased
    
    
    
    
    
    
    10,452Exercise of stock options
    
    
    
    
    
    
    200Exercise of warrants
    
    
    185
    
    
    
    NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    15,059
    
    
    
    31,313Net decrease in cash and cash equivalents
    
    
    (16,505
    )
    
    
    (6,386
    )Cash and cash equivalents, beginning of year
    
    
    66,115
    
    
    
    8,839CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    49,610
    
    
    $
    2,453Cash paid during the period for:Interest
    
    $
    1,950
    
    
    $
    610Income taxes
    
    $
    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)
    
    2008
    
    2007Net income applicable to common stock
    
    $
    12
    
    
    $
    28Weighted average number of common
shares outstanding  basic
    
    
    4,981
    
    
    
    4,806Basic earnings per share
    
    $
    0.00
    
    
    $
    0.01Net income applicable to common stock
    
    $
    12
    
    
    $
    28Weighted average number of common shares
and common share equivalents  diluted
    
    
    5,224
    
    
    
    4,874Diluted earnings per share
    
    $
    0.00
    
    
    $
    0.01
   9




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Note 5. Comprehensive Income
  Three months ended March 31,2008
    
    
    2007Comprehensive IncomeNet income
    
    $
    12
    
    
    $
    28Unrealized holding gain(loss) on
securities available for sale, net of
taxes of $34 and $2 for 2008 and 2007,
respectively
    
    
    61
    
    
    
    (3
    )Total comprehensive income
    
    $
    73
    
    
    $
    25
 Note 6. Securities Available for Sale and Investment Securities
  Gross
    
    GrossAmortized
    
    Unrealized
    
    Unrealized
    
    FairMarch 31, 2008
    
    Cost
    
    Gains
    
    Losses
    
    ValueGovernment Sponsored
Enterprise obligations
    
    $
    13,000
    
    
    
    95
    
    
    
    
    
    
    $
    13,095
  10




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Gross
    
    GrossAmortized
    
    Unrealized
    
    Unrealized
    
    FairMarch 31, 2008
    
    Cost
    
    Gains
    
    Losses
    
    ValueObligations of U.S. Treasury
    
    $
    1,999
    
    
    
    17
    
    
    
    
    
    
    $
    2,016
 Gross
    
    GrossAmortized
    
    Unrealized
    
    Unrealized
    
    FairDecember 31, 2007
    
    Cost
    
    Gains
    
    Losses
    
    ValueObligations of U.S. Treasury
    
    $
    1,996
    
    
    
    18
    
    
    
    
    
    
    $
    2,014
  Note 7. Loans.
  March 31,
    
    
    December 31,2008
    
    
    2007Real estate
    
    $
    134,841
    
    
    $
    123,335Commercial
    
    
    30,781
    
    
    
    27,056Credit lines
    
    
    30,856
    
    
    
    28,133Consumer
    
    
    5,318
    
    
    
    4,936$
    201,796
    
    
    $
    183,460
  11




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Three months ended
    
    
    Three months endedMarch 31,2008
    
    
    March 31,2007Balance at beginning of period
    
    $
    1,912
    
    
    $
    866Provision charged to expense
    
    
    158
    
    
    
    389Loans charged off
    
    
    0
    
    
    
    0Recoveries
    
    
    0
    
    
    
    0Balance at end of period
    
    $
    2,070
    
    
    $
    1,255
  Note 8. Guarantees
  Note 9. Fair Value Measurements
   12




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
    
    Level 1 Inputs Unadjusted quoted prices in active markets for identical assets or
liabilities that the reporting entity has the ability to access at the measurement date.
    
    Level 2 Inputs Inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly or indirectly. These might include
quoted prices for similar assets or liabilities in active markets, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs other
than quoted prices that are observable for the asset or liability (such as interest rates,
volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived
principally from or corroborated by market data by correlation or other means.
    
    Level 3 Inputs Unobservable inputs for determining the fair values of assets or
liabilities that reflect an entitys own assumptions about the assumptions that market
participants would use in pricing the assets or liabilities.
   13




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Securities Available for Sale
   Level 1
    
    Level 2
    
    Level 3
    
    TotalInputs
    
    Inputs
    
    Inputs
    
    Fair ValueSecurities available for sale
    
    $
    
    
    
    $
    13,095
    
    
    $
    
    
    
    $
    13,095
   Note 10. Recent Accounting Pronouncements
  14




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
  15




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ITEM 2
Managements Discussion and Analysis of
Financial Condition and Results of Operations
  Statements Regarding Forward Looking Information
    16




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Critical Accounting Policies, Judgments and Estimates
  Allowance for Loan Losses
  Deferred Income Taxes
  17




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Results of Operations
 First Quarter, 2008 compared to First Quarter, 2007
  Net Income
   Net Interest Income
  Provision for Loan Losses
  Non-interest Income
  18




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Non-interest Expense
  Income Tax Expense
  FINANCIAL CONDITION
 %.
 Loans
   19




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Loan Quality
      20




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Investment Securities
  Deposits
  Liquidity
     Capital Resources
  21




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MinimumMarch 31,
    
    Regulatory2008
    
    RequirementsRisk-Based Capital :Tier 1 Capital Ratio
    
    
    22.94
    %
    
    
    4.0
    %Total Capital Ratio
    
    
    23.97
    %
    
    
    8.0
    %Leverage Ratio
    
    
    17.02
    %
    
    
    8.0
    %
   22




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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.
  23




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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
  24




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SIGNATURES
  Bancorp of New Jersey, Inc.Date: May 15, 2008
    By:
    /s/ Albert F. BuzzettiAlbert F. BuzzettiPresident and Chief Executive OfficerBy:
    /s/ Michael LeslerMichael LeslerExecutive Vice President and
Chief Financial Officer 25




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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
 26