TOMS RIVER, N.J., July 31 /PRNewswire-FirstCall/ -- Shore Community Bank (BULLETIN BOARD: SHRC) (the "Bank") today reported a net loss of $51,244 or $0.03 per basic and diluted share for the quarter ended June 30, 2009, compared to a net loss of $215,113, or $0.13 per basic and diluted share for the quarter ended June 30, 2008.
For the six months ended June 30, 2009, the Bank reported a net loss of $25,050, or $0.01 per basic and diluted share, compared to a net loss of $165,958, or $0.10 per basic and diluted share for the six months ended June 30, 2008.
The Bank recognized an expense in the amount of $104,000 pre-tax in the second quarter of 2009 related to a special assessment levied by the FDIC on all banks to shore up the deposit insurance fund. The special assessment equaled 5 basis points on total assets less Tier 1 capital as of June 30, 2009. The FDIC has indicated additional special assessments in 2009 maybe necessary but the actual amount and the timing of any additional assessments have not been disclosed at this time.
Total assets grew 8.5 percent to $225.9 million at June 30, 2009, compared to $208.1 million at December 31, 2008. Total loans declined 5.2 percent at June 30, 2009 and stood at $148.4 million, compared to $156.5 million at December 31, 2008. Total deposits grew 10.5 percent to $190.0 million at June 30, 2009, compared to $172.0 million at December 31, 2008.
Non-performing assets totaled $10.7 million at June 30, 2009, compared to $7.5 million at December 31, 2008. The provision for loan losses totaled $500 thousand for the three months ended June 30, 2009, and compares to $695 thousand for the same period in 2008 and $300 thousand in the first quarter of 2009. Net loan charge-offs totaled $299 thousand in the second quarter compared to $932 thousand in the same period in 2008 and $277 thousand in the first quarter of 2009.
Robert T. English, President & Chief Executive Officer stated, "The strong growth in deposits is attributable to our newest branch located in Manahawkin, Stafford Twp. which opened in October 2008. We are extremely pleased to see the local community respond in such a positive fashion to our opening particularly in light of the economic backdrop in which we are currently operating." Mr. English further commented, "The continuing recession has affected all of our clients to varying degrees. In the second quarter three unrelated speculative land development-residential construction loans totaling approximately $3.0 million became 90 days delinquent. These loans, originated in late 2006 and early 2007, funded speculative projects that were conceived in better times. Each project suffered from a lack of sales and the borrowers eventually defaulted on their obligations. We continue to work with the borrowers, on a case by case basis, in order to maximize the value of the collateral."
The Bank remains well capitalized with Tangible Common Equity of 7.9% and Total Risk Based Capital of 12.8%, at June 30, 2009.
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 of Shore Community Bank,
+1-732-240-5800
Web Site: http://www.shorecommunitybank.com/
