Shore Community Bank Announces Second Quarter 2010 Results

TOMS RIVER, N.J., July 22 /PRNewswire-FirstCall/ -- Shore Community Bank (OTC Bulletin Board: SHRC) (the "Bank") today reported net income of $208,032 or $0.12 per basic and diluted share for the quarter ended June 30, 2010, compared to a net loss of $51,244 or $0.03 net loss per basic and diluted share for the quarter ended June 30, 2009.

For the six months ended June 30, 2010, the Bank reported net income of $290,317 or $0.17 per basic and diluted share, compared to a net loss of $25,050 or $0.01 net loss per basic and diluted share for the six months ended June 30, 2009.

Total assets at June 30, 2010 were $222.2 million compared to $214.1 million at December 31, 2009, which represents an increase of 3.8%. Total loans at June 30, 2010 stood at $125.4 million compared to $138.7 million at December 31, 2009, a decrease of 9.6%.  Total deposits increased 3.9% or $6.9 million to $185.0 million at June 30, 2010 compared to $178.1 million at December 31, 2009.

Non-performing assets, which includes non-performing loans and other real estate owned, totaled $10.1 million at June 30, 2010, compared to $10.0 million at December 31, 2009. The provision for loan losses totaled $375 thousand for the three months ended June 30, 2010, and compares to $500 thousand for the same period in 2009 and $405 thousand in the first quarter of 2010. Net loan charge-offs totaled $214 thousand in the second quarter compared to $299 thousand in the same period in 2009 and $400 thousand in the first quarter of 2010.

The allowance for loan losses as a percentage of period end loans was 1.77% at June 30, 2010 compared to 1.48% at December 31, 2009 and 1.57% at June 30, 2009. The Bank remains well capitalized with a Tier 1 Leverage Ratio of 8.5% and Total Risk Based Capital of 14.7%, at June 30, 2010.

Robert T. English, President & Chief Executive Officer stated, "In light of the uncertain economy and weak demand for loans from creditworthy borrowers, we are extremely pleased to report increased earnings in both the three and six month periods. Contributing to our positive performance was a 20.7% increase in net interest income as the net interest margin for the six month period ended June 30, 2010 was 3.62%, compared to 2.94% in the same six month period last year. The Federal Reserve has maintained an extremely low interest rate environment in support of the fragile economic rebound and by all market indications it is anticipated that interest rates will remain low well into 2011."

Book value per share at June 30, 2010 was $11.35, compared to $10.72 at December 31, 2009 based on 1.7 million shares outstanding in each period.

Shore Community Bank is traded on the OTCBB (Over the Counter Bulletin Board) under the symbol "SHRC."

Shore Community Bank operates six banking offices located in Toms River, Ortley Beach, 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 "expects," "believe," "will," "intends," "will be," or "would." 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