Shore Community Bank Announces Second Quarter And Year-To-Date 2014 Results

TOMS RIVER, N.J., July 30, 2014 /PRNewswire/ -- Shore Community Bank (OTCQB: SHRC) today reported net income of $209,443 or 9 cents per diluted share for the quarter ended June 30, 2014. These results represent a 5.15 percent increase in net income compared to the $199,176 or 9 cents per diluted share reported for the same period in 2013.

For the six months ended June 30, 2014, the Bank reported net income of $361,011 or 16 cents per diluted share representing a 2.55 percent increase compared to net income of $352,014 or 15 cents per diluted share for the six months ended June 30, 2013.

Total assets at June 30, 2014 were $232.6 million compared to $230.2 million at December 31, 2013. Total loans increased 13.22 percent and stood at $124.3 million at June 30, 2014 compared to $109.8 million at December 31, 2013 and total deposits were $200.2 million at June 30, 2014 compared to $198.2 million at December 31, 2013.

Robert T. English, President & Chief Executive Officer stated, "We are pleased to report that our 2014 growth objective for the loan portfolio has come to fruition. After 5 years of contraction, we have turned the corner with over 13 percent growth in our loan portfolio through the first six months of this year. Based on the current commercial loan pipeline of approximately $26.9 million, of which accepted commitments total $9.2 million, our expectations are to continue along this growth path for the remainder of the year. To ensure our success, we are seeking to add a seasoned commercial lender to our team."

Non-performing assets, which includes nonaccrual loans and other real estate owned (OREO), totaled $5.1 million at June 30, 2014, consisting of $1.2 million of nonaccrual loans and $3.9 million of OREO, compared to a total of $5.3 million at year December 31, 2013 which included $3.0 million of nonaccrual loans and $2.3 million of OREO. Total non-performing assets at June 30, 2014, as a percentage of total assets, were 2.21 percent compared to 2.32 percent at December 31, 2013.

The provision for loan losses totaled $105,000 for the quarter ended June 30, 2014 compared to $150,000 in the same quarter in 2013. Net loan charge-offs totaled $27,854 in the second quarter of 2014 compared to $94,259 in the same period in 2013. The allowance for loan losses as a percentage of period end loans was 1.91 percent at June 30, 2014 compared to 2.04 percent at December 31, 2013.

The Bank's capital ratios remain strong and are in excess of what is considered "well capitalized" by bank regulatory standards. At June 30, 2014, the Tier 1 leverage and Tier 1 risk based capital ratio were 9.89 percent and 16.69 percent, respectively. The total risk-based capital ratio was 17.95 percent.

Book value per share at June 30, 2014 was $10.24 compared to $10.02 at December 31, 2013 based on 2.2 million shares outstanding in each period.

Earnings per share and book value per share for all reported periods have been adjusted for the 10% stock dividend declared in March 2014.

Shore Community Bank is traded on the OTCQB 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 "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