Community Bank of Bergen County in Maywood, N.J., has sold a $3.2 million portfolio of nonperforming loans.
The $303 million-asset company will take an after-tax loss of $928,000 on the transaction, it said Monday. The company had about $10 million of nonaccrual loans as of March 31, according to the Federal Deposit Insurance Corp.
"We feel that this transaction, by eliminating the cost and manpower resources used to maintain these loans, will substantially benefit the bank going forward," Peter Michelotti, president and chief executive of the bank, in a news release.
The reported a first-quarter profit of $19,000, down $169,000 from the first quarter of 2012, as lower loan balances pinched interest income.
The bank has four branches in northern New Jersey. It had a Tier 1 leverage ratio of 8.49% and total-risk based capital of 13.52% as of March 31, according to the FDIC.