Shore Community Bank Announces 60% Increase In Second Quarter 2017 Net Income

TOMS RIVER, N.J., July 27, 2017 /PRNewswire/ -- Shore Community Bank (OTCPK: SHRC) today reported net income grew 60.2% to $658,653, or 21 cents per diluted share, for the second quarter ended June 30, 2017, compared to the $411,169, or 13 cents per diluted share, reported for the same quarterly period in 2016.

For the six months ended June 30, 2017, the Bank reported net income grew 55.0% to $1,197,925, or 38 cents per diluted share, compared to net income of $772,875, or 25 cents per diluted share, for the six months ended June 30, 2016.

Robert T. English, President & Chief Executive Officer, stated, "Reported earnings for the second quarter and mid-year have exceeded expectations. Our ongoing improvement in our financial performance is the product of the dedication, hard work and attentiveness of every member of our team. Successful implementation of our business plan which has focused on loan growth while actively and prudently managing our expense base has delivered superior bottom line results to our shareholders. Mr. English further stated, "Year to date net interest income grew 9.0% or approximately $360,000 compared to the same period last year as a result of loan growth while funding costs declined slightly and overhead expenses were reduced approximately $130,000. Our loan pipeline remains active which is encouraging for the second half of 2017."

Total assets at June 30, 2017 increased 3.3%, totaling $273.6 million, compared to $264.7 million at December 31, 2016 while total loans increased 4.9% and stood at $191.5 million at June 30, 2017, compared to $182.5 million at December 31, 2016. Total deposits grew 3.2 % to $245.1 million at June 30, 2017 compared to $237.3 million at year end 2016.

Non-performing assets, which includes nonaccrual loans and other real estate owned (OREO), totaled $1.5 million at June 30, 2017, consisting of $0.3 million of nonaccrual loans and $1.2 million of OREO, compared to a total of $2.2 million at year December 31, 2016 which included $0.3 million of nonaccrual loans and $1.9 million of OREO. Total non-performing assets at June 30, 2017, as a percentage of total assets, were .53% compared to .84% at December 31, 2016.

The provision for loan losses totaled $60,000 for the quarter ended June 30, 2017. No loan loss provision was taken in the second quarter 2016. Net loan recoveries totaled $2,174 in the second quarter of 2017, compared to net loan recoveries of $56,034 in the second quarter of 2016. The allowance for loan losses as a percentage of period end loans stood at 1.51 percent at June 30, 2017, compared to 1.54 percent at December 31, 2016.

Book value per share at June 30, 2017 was $9.07 based on 3,060,651 shares outstanding, compared to $8.66 at December 31, 2016 based on the same number of shares outstanding.

Earnings per share and book value per share for all reported periods have been adjusted for the 10% stock dividend declared in March 2017.

Shore Community Bank is traded on the OTC Pink under the symbol "SHRC."

Shore Community Bank operates five banking offices located in Toms River, Jackson and Manahawkin, New Jersey. The Bank was founded in 1997 by a group of local business leaders with the objective of returning community based banking to the Toms River, Ocean County, New Jersey area.

Information in this release relating to Shore Community Bank's future prospects which are forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the following: (1) operating, legal and regulatory risks, such as continued levels of loan quality and origination volume, continued relationships with major customers and technological changes; (2) economic, political and competitive forces affecting our banking business, such as changes in economic conditions, especially in our market area, interest rate fluctuations, competitive product and pricing pressures within our market, personal and corporate bankruptcies, monetary policy and inflation; (3) our ability to grow internally or through acquisitions; and (4) the risk that management's analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful. Forward-looking statements may be identified by the use of words such as "expect," "believe," "anticipate," "estimate," "forecast," "intend," "will," "may" or other similar words and expressions. Forward-looking statements speak only as of the date they are made. Shore Community Bank assumes no obligation to update the forward-looking information in this announcement, except as required under applicable law.

SOURCE Shore Community Bank

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