TOMS RIVER, N.J., Nov. 3 /PRNewswire-FirstCall/ -- Shore Community Bank (BULLETIN BOARD: SHRC) (the "Bank") today reported net income of $63,049 or $0.04 per basic and diluted share for the quarter ended September 30, 2009 as compared to net income of $90,974, or $0.05 per basic and diluted share for the quarter ended September 30, 2008.
For the nine months ended September 30, 2009, the Bank reported net income of $37,999, or $0.02 per basic and diluted share as compared to a net loss of $74,984, or $0.04 per basic and diluted share for the nine months ended September 30, 2008.
The provision for loan losses totaled $450 thousand for the three months ended September 30, 2009 as compared to $355 thousand for the same period in 2008. For the nine months ended September 30, 2009, the provision for loan losses totaled $1.2 million and equaled the amount provided in the nine months ended September 30, 2008.
Net loan charge-offs totaled $896 thousand in the third quarter as compared to $175 thousand in the same period last year. For the nine months ended September 30, 2009, net loan charge-offs totaled $1.5 million as compared to $1.1 million in the nine months ended September 30, 2008. The allowance for loan losses as a percentage of period end loans was 1.31% and 1.34% at September 30, 2009 and December 31, 2008, respectively.
Total assets grew 5.7 percent to $220.1 million at September 30, 2009 as compared to $208.1 million at December 31, 2008. Total loans declined 8.1 percent at September 30, 2009 and stood at $143.9 million as compared to $156.5 million at December 31, 2008. Total deposits grew 6.9 percent to $184.0 million at September 30, 2009 as compared to $172.0 million at December 31, 2008.
Robert T. English, President & Chief Executive Officer stated, "In the third quarter we obtained updated appraisals on virtually all of our non-performing loans and as anticipated these appraisals reflected the erosion in the value of all forms of real estate related assets; from residential homes to undeveloped building lots. As a result of the decline in value we charged off $912 thousand of non-performing loans while recording recoveries of $16 thousand." Mr. English further commented, "Aside from one commercial property awaiting a current appraisal we have acted aggressively in charging off our problem loans. Management continues to monitor these loans and going forward we will take charge-offs as dictated by market conditions. On a more positive note, there is growing optimism that real estate prices have hit bottom and maybe stabilizing."
The Bank remains well capitalized with a Tier 1 Leverage ratio of 8.2%, a Tier 1 Risk Based Capital ratio of 12.1% and a Total Risk Based Capital ratio of 13.4%, at September 30, 2009.
The Bank also announced that on or about September 30, 2009, it notified the FDIC and the State of New Jersey Department of Banking and Insurance that it was withdrawing the TARP application it originally filed on November 12, 2008. Mr. English stated, "We have seen a recent rush to repay TARP monies by many of the earliest participants in the program as numerous conditions were added or revised and participation became more onerous and costly. The Board believes participation in the TARP program by the Bank at this point in time, under the existing rules and current financial market conditions, is not prudent given the risk that the TARP funds may not be capable of being utilized by the Bank in a profitable manner."
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/
