|By PR Newswire||
|October 25, 2012 05:06 PM EDT||
TOMS RIVER, N.J., Oct. 25, 2012 /PRNewswire/ -- Shore Community Bank (OTC-QB: SHRC) today reported net income of $277,344 or $0.15 per diluted share for the quarter ended September 30, 2012, compared to net income of $206,193, or $0.11 per diluted share for the three months ended September 30, 2011, representing an increase in net income of $71,151, or 34.5 percent. All share and per share data for all referenced reporting periods have been adjusted for the 5% stock dividend paid on May 17, 2012 to shareholders of record as of April 30, 2012.
For the nine months ended September 30, 2012, the Bank reported net income of $739,210, or $0.41 per diluted share, as compared to a net income of $527,699, or $0.29 per diluted share for the nine months ended September 30, 2011, an increase in earnings of $211,511 or 40.1 percent in net income.
Commenting on the results, Robert T. English, President and Chief Executive Officer stated, "In an environment that is extremely difficult to operate within due to historically low interest rates, margin compression and little in the way of loan demand from creditworthy borrowers, we are pleased to report a year over year increase of 40.1 percent in net income. Our residential mortgage operation delivered an increase of 150.4% in net revenue from the origination and sale of residential mortgage loans representing an additional $124 thousand of pre-tax income compared to the same period last year. In addition, in the third quarter, we successfully sold two other real estate owned ("OREO") properties for a combined gain of $181 thousand. Offsetting the gain was a write-down of $82 thousand which was taken to more aggressively position three specific OREO properties that we now anticipate will attract buyers at the reduced price levels."
Total assets grew to $212.0 million at September 30, 2012 from $203.1 million at December 31, 2011. Total loans declined to $113.5 million at September 30, 2012, compared to $115.3 million at December 31, 2011 and total deposits were $172.8 million at September 30, 2012 compared to $164.7 million at December 31, 2011.
The provision for loan losses totaled $175 thousand for the three months ended September 30, 2012, compared to $100 thousand for the same period in 2011. For the nine months ended September 30, 2012, the provision for loan losses totaled $475 thousand which equaled the provision recorded in same period ended September 30, 2011. Net loan charge-offs totaled $29 thousand in the third quarter as compared to $412 thousand in the same period last year. Net loan charge-offs for the nine months ended September 30, 2012, totaled $354 thousand compared to $890 thousand in the nine months ended September 30, 2011.
The allowance for loan losses as a percentage of period end loans was 1.87 percent at September 30, 2012, compared to 1.73 percent at December 31, 2011.
Non-performing assets totaled $7.7 million at September 30, 2012, and included $6.5 million in non-performing loans and $1.2 million in OREO, compared to a total $8.3 million at year end 2011 which included $6.4 million in non-performing loans and $1.9 million in OREO.
At September 30, 2012, the Bank remains well capitalized with a Tier 1 leverage ratio of 9.69 percent, a Tier 1 risk based capital ratio of 17.45 percent and a total risk based capital ratio of 18.70 percent.
Book value per share at September 30, 2012 was $11.77 compared to $11.53 at December 31, 2011 based on 1.8 million shares outstanding in each period.
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