TOMS RIVER, N.J., April 21 /PRNewswire-FirstCall/ -- Shore Community Bank (BULLETIN BOARD: SHRC) today reported net income of $26,194 for the first quarter of 2009, compared to net income of $49,155 reported for the first quarter of 2008. Basic and diluted net income per share for the three months ended March 31, 2009, were 2 cents as compared to a net income per share, basic and diluted, of 3 cents for the same period in 2008.
Total assets at March 31, 2009 were $227.0 million compared to $211.5 million at March 31, 2008, representing an increase of 7.3 percent. Total loans at March 31, 2009 stood at $155.5 million compared to $160.0 million at March 31, 2008, a decrease of 2.8 percent. Total deposits grew 4.1 percent to $191.0 million at March 31, 2009 compared to $183.5 million at March 31, 2008.
Non-performing assets at March 31, 2009 stood at $7.8 million compared to $7.5 million at December 31, 2008 and $7.2 million at March 31, 2008. The provision for loan losses in the first quarter 2009 was $300,000, compared to $195,000 in the same period last year. Net charge-offs in the first quarter 2009 totaled $277,000, compared to a $2,000 net recovery recorded in the first quarter of 2008. Additionally, a $68,000 charge was recorded in the first quarter of 2009 related to the bank's OREO holdings.
Robert T. English, President and Chief Executive Officer commented, "Earnings continue to suffer due to the carrying costs associated with the existing level of non-performing assets. These costs come in many forms and include interest expense to fund $7.8 million of non-earnings assets, the attendant level of loan loss provisions, legal fees, property insurance, real estate taxes, and a host of ancillary expenses. In the face of these significant challenges the bank has remained profitable due to the timely action taken in 2008 by the Board of Directors and management to prudently reduce operating expenses in areas that would not negatively impact the level of service that our clients have come to expect from us."
"Earnings will remain under pressure until the local economy improves, business activity picks up and the level of non-performing assets decline. There has been recent talk by a few in the financial community of a bottom having been reached and an impending rebound. Only time will tell if the economy has begun to marginally improve or at the very least stopped its downward trajectory. In the meantime, we continue to plan for a challenging year while we focus on addressing the service needs of our clients." said English.
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.
Shore Community Bank
CONTACT: Robert T. English, President & CEO, +1-732-240-5800
Web Site: http://www.shorecommunitybank.com/
