Shore Community Bank Reports Fourth Quarter And Full Year 2012 Results

TOMS RIVER, N.J., Jan. 31, 2013 /PRNewswire/ -- Shore Community Bank (OTC Bulletin Board: SHRC), (the "Bank"), today reported net income for the three months ended December 31, 2012 of $177,435, or $0.10 per diluted share, compared to net income of $234,683, or $0.13 per diluted share, for the same period in 2011. For the year ended December 31, 2012, Shore Community Bank reported net income of $916,644, or $0.51 per diluted share, compared to $762,384, or $0.42 per diluted share, for the year ended December 31, 2011, an increase in net income of 20.2 percent.

As a direct result of Superstorm Sandy, the Bank undertook an evaluation of the loan portfolio and the adequacy of the allowance for loan losses. As a consequence of this evaluation, it was determined that no loan charge-offs or specific reserves were required at this time. While the ultimate amount of loan losses related to the storm is uncertain and difficult to predict, as information continues to be gathered, the Bank recorded an additional provision for loan losses in the amount of $100,000 impacting the quarter and year ended December 31, 2012 results. The negative impact of this provision on diluted earnings per share for the quarter and year ended 2012 was $0.03.

Total assets, at December 31, 2012, increased 10.3 percent and totaled $223.9 million, compared to $203.1 million at December 31, 2011.  Total loans decreased 2.2 percent and finished the year at $112.8 million, as compared to $115.3 million at December 31, 2011. Total deposits increased 12.0 percent to $184.5 million at December 31, 2012, as compared to $164.7 million at year-end 2011.

Non-performing assets totaled $8.1 million at December 31, 2012, and included $7.1 million in non-performing loans and $1.0 million in other real estate owned (OREO), compared to a total of  $8.3 million at year end 2011 which included $6.4 million in non-performing loans and $1.9 million in OREO.

Commenting on the results, Robert T. English, President and Chief Executive Officer stated, "The Board and management are pleased to report another year of increased earnings. The increase in net income of 20.2 percent recorded for the year 2012 is the fourth consecutive year of increased earnings and it was achieved during a period in which the economy lacked clear direction for most if not all of the year."

The provision for loan losses totaled $250 thousand for the three months ended December 31, 2012, compared to $100 thousand for the same period in 2011. For the twelve months ended December 31, 2012, the provision for loan losses totaled $725 thousand compared to $575 thousand in the twelve month period ended December 31, 2011. Net loan charge-offs totaled $221 thousand in the fourth quarter of 2012 compared to net charge-offs of $183 thousand in the same quarter last year. Net loan charge-offs, for the twelve months ended December 31, 2012, totaled $575 thousand compared to $1.1 million for the year ended December 31, 2011.

The allowance for loan losses as a percentage of period end loans was 1.90 percent at December 31, 2012 compared to 1.73 percent at December 31, 2011.

The Bank's capital ratios remain strong and are in excess of what is considered "well capitalized" by bank regulatory standards. At December 31, 2012, the Tier 1 leverage and Tier 1 risk based capital ratio were 9.6 percent and 17.1 percent, respectively. The total risk-based capital ratio was 18.3 percent.

Book value per share at December 31, 2012 was $11.88, compared to $11.53 at December 31, 2011 based on 1.8 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