Issue of Aug. 7, 2007
YNBancorp net income drops
Hamilton-based Yardville National Bancorp reported net income for the second quarter of 2007 of $3.1 million or $0.27 per share, a drop from the $5.1 million or $0.45 per share reported at June 30, 2006. For the first six months of 2007, YNB’s net income was $8.3 million, or $0.72 per share, compared with $10.2 million or $0.90 per share for the first six months of 2006. YNB indicated that the lower results were the result of higher non-interest expenses and lower net interest income.
The higher non-interest expenses for the second quarter of 2007 and for the first six months are primarily attributable to legal and other expenses related to YNB’s consideration of strategic alternatives. For the second quarter, non-interest expenses were $15.6 million compared to $14.3 million for the same quarter in 2006. YNB’s net interest income for the second quarter was negatively impacted by decreases in commercial loans and higher retail deposit costs.
On June 6, 2007, YNB entered into an agreement to be acquired by The PNC Financial Services Group, Inc.
"Our transaction with PNC is proceeding on schedule, and pending the shareholder vote and regulatory approvals, is anticipated to close in the fourth quarter of this year," stated YNB President and Chief Operating Officer F. Kevin Tylus. "Transition teams are in place and working well together toward our objective of a seamless integration of our two companies with little or no disruption for customers," he stated.
HVCB income drops sharply
Hopewell Valley Community Bank reported net income for the June quarter of 2007 of $109,529, compared to the $257,671 mark for the equivalent 2006 period. Earnings for the first six months of 2007 totaled $220,798 versus the $606,799 earned in the first six months of 2006. HVCB also announced that it’s board of directors declared a semi-annual $0.04 cash dividend payable on September 7, 2007, to shareholders of record Aug. 20.
Total deposits ended the 2007 second quarter at $199 million, an 8 percent increase from the $185 million mark at the end of June 2006. HVCB’s total assets for the recently completed 2007 quarter climbed to $231 million which is a 10 percent increase over the $210 million mark recorded at June 30, 2006. Total loans rose 10 percent to $175 million over the $160 million mark attained in June 2006.
1st Constitution results increase
Cranbury-based 1st Constitution Bancorp reported net income of $2.9 million for the first six months of 2007, an increase of 11 percent over net income of $2.6 million reported for the corresponding period in 2006.
Earnings per share for the six months ended June 30, 2007 were $0.76, an increase of 10 percent from the $0.69 per share reported for the first half of 2006. The return on average equity for the first half of 2007 was 16 percent and the return on average assets was 1.4 percent. By comparison, the first half of 2006 generated returns on average equity and assets of 17.3 percent and 1.4 percent respectively.
Net income for the second quarter of 2007 reached $1.5 million, representing a 10 percent increase in net income over net income of $1.4 million earned during the same period of 2006. Earnings per share were $0.39 for the three months ended June 30, 2007, an increase of 8 percent from the $0.36 per share reported for the second quarter of 2006.
Robert F. Mangano, president and chief executive officer, attributed higher earnings for the six months ended June 30, 2006 to continuing momentum across various product lines, primarily relating to the bank’s lending activities, deposit growth, and the continued generation of non-interest income.
Roma Bank income improves
Roma Financial, based in Hamilton, has reported increased net income for both the quarter and six months ended June 30, 2007. Roma had net income of $1.9 million and $3.7 million respectively for the three and six months ended June 30, 2007, up from $1.6 million and $2.9 million respectively for the same periods a year earlier.
Income per common share declined however, to $0.06 and $0.12 respectively for the quarter and six months ended June 30, 2007 from $0.07 and $0.13 respectively for the same periods a year earlier.
NRG Energy results continue upward
West Windsor-based NRG Energy, Inc. (NYSE: NRG) reported income from continuing operations for the three months ended June 30, 2007 of $149 million or $0.51 per common share, as compared to $202 million or $0.63 per common share for the same period last year. These results include a $35 million non-cash, pre-tax charge related to the completion of the $4.4 billion refinancing of NRG’s senior credit facility, while the 2006 period benefited from $15 million in pre-tax settlement agreements. Quarterly operating income improved to $436 million from $410 million in 2006.
Net income from continuing operations for the first half of this year was $214 million or $0.71 per common share, compared to $217 million or $0.72 per common share, for the same period last year. Operating income for the first six months of 2007 improved to $709 million from $619 million in 2006.
J&J announces broad layoffs
As part of a recently announced cost saving initiative, New Brunswick-based health products company Johnson & Johnson will trim its employment rolls by approximately 4,800 jobs. The company did not release the locations where the job cuts will be made with the exception of announcing that 600 jobs at its California-based subsidiary Alza Corp. would be cut. J&J has a global work force of upwards of 120,000 employees, with approximately 13,000 based in New Jersey.
Montgomery TKD holds celebration
Montgomery TaeKwonDo Academy, located just north of the Princeton Airport on Route 206 in Montgomery, as part of its 10th anniversary celebrations will be hosting an open house on Saturday August 18.
The event is open to all and will feature food, TKD demonstrations, giveaways, as well as free classes on the half hour from 11 a.m. till 2 p.m. that day. Montgomery TKD Academy is owned by Chief Instructor and Master John Kanabay.
Mr. Kanabay has taught "Bully Busting" classes in the Princeton Elementary schools, he teaches TKD to students in the summer program at the Princeton Montessori School, and he has also taught at Princeton Day School in the past.
Medarex loss for quarter
Princeton-based Medarex, Inc. reported a net loss for the quarter ended June 30, 2007 of $41 million, or $0.32 per share compared to a net loss of $41.4 million, or $0.34 per share for the second quarter of 2006. Included in the 2007 results was a $1.9 million net loss of Celldex Therapeutics, Inc. (a 60 percent owned subsidiary of Medarex), a non-cash charge of $4.3 million for stock based compensation, and a non-cash impairment charge of $2.1 million related to the write-down of Medarex’s equity investments in certain of its corporate partners. Total revenues for the quarter ended June 30, 2007 were $11.8 million as compared to $11.8 million for the second quarter of 2006.
"Medarex is full of opportunities, and we remain focused on strong execution across the preclinical, clinical and business development areas that will allow us to advance pipeline assets to the market and facilitate long-term sustainable growth," said Howard H. Pien, recently installed Medarex president and chief executive officer.
Covance shows increased results
West Windsor-based drug development company Covance Inc. announced increased second quarter and six months results. For the quarter ended June 30, 2007 Covance reported net income of $41.5 million on revenues of $404.1 million, up 18.5 percent from net income of $35 million on revenues of $357.1 million for the quarter a year earlier. Covance net income was $80.4 million on revenues of $781.1 million for its first six months in 2007, up from net income of $68.4 million on revenues of $690.8 million for 2006, a 17.5 percent increase.
Celator closes $10M financing
Celator Pharmaceuticals, a Plainsboro-based privately-held biotechnology company working to develop combination chemotherapies to treat different types of cancer, announced that it has closed a $10 million private equity financing round. The financing represents a follow-on investment from Celator’s principal investors, which include Domain Associates, L.L.C., Quaker BioVentures, TL Ventures, Ventures West Management, Inc., GrowthWorks Capital, Ltd., the Business Development Bank of Canada, and Hearthstone Investment, Ltd. Celator closed a Series B financing round of $40 million in May 2005.
Interpool buyout is completed
The acquisitionof Plainsboro-based cargo container lessor Interpool Inc. by Chariot Acquisition Holding LLC, a company formed by certain private equity funds managed by affiliates of Fortress Investment Group LLC. As a result of the merger, Interpool’s stockholders are entitled to receive $27.10 per share in cash. Interpool’s common stock ceased trading on the New York Stock Exchange as of July 19.
Cytogen private stock placement
In early July, Plainsboro-based Cytogen Corp., closed a private placement of 5,814,600 shares of its common stock at a price of $1.737 per share. The purchasers also received warrants to purchase 2,907,301 shares of common stock at an exercise price of $2.231 per share. The warrants have a term of five years. The gross proceeds from the private placement are approximately $10.1 million, before deducting costs associated with the offering.
YNB partners with cancer researcher
Yardville National Bank in Hamilton has partnered with Alex’s Lemonade Stand Foundation, an organization founded in 2000 to raise money for childhood cancer research. The organization was formed when a 4-year-old cancer patient named "Alex" wanted to set up an "Alex’s Lemonade Stand for Childhood Cancer" to raise money to help find a cure.
YNB will be selling lemonade at all 33 branch locations. To encourage donations, YNB is going to contribute $1 for each glass of lemonade that is purchased. Additionally, YNB’s matching donations and matching deposits campaign will entice consumers to open personal checking accounts when YNB matches the initial opening deposit.
"YNB has committed to donating up to $10,000," stated Brian K. Gray, YNB first senior vice president and chief retail officer. "We were inspired by the Alex’s Lemonade Stand Foundation story and wanted our organization to help them in their mission," he stated.
Princeton Hydro launches light bulb swap
Princeton Hydro LLC, based in Ringoes, has launched a light bulb swap campaign for its employees. Princeton Hydro, an environmental consulting firm, is reimbursing all of its 35 employees up to $50 per household to swap incandescent light bulbs in their homes for heat and energy reducing fluorescent bulbs.

