Toms River, New Jersey – April 25, 2018…Shore Community Bank (OTCPK: SHRC) today reported net income of $838,339 or 27 cents per diluted share for the three months ended March 31, 2018, compared to net income of $539,272 or 17 cents per diluted share reported for the first quarter of 2017. The improvement in net income represents an increase of 55.5%.
The Board of Directors also announced a quarterly cash dividend of $0.075 per share. The dividend will be paid on May 18, 2018 to all shareholders of record on May 8, 2018.
Commenting on the results, Robert T. English, President and Chief Executive Officer stated, “Multiyear success in expanding the loan portfolio combined with the recently enacted lower federal income tax rate has propelled Shore Community Bank’s quarterly earnings to the highest level in our 21 year history. The loan portfolio increased 3.0% since year end 2017 and 11.2% since the end of the first quarter of 2017. Achieving a 1.25% return on average assets and 12.0% return on average equity is outstanding for a bank of our asset size.” Mr. English further stated, “Our 2018 forecast for the local economy remains positive. We anticipate that eventually the Fed’s interest rate hikes will impact important sectors of the economy later this year but at present, our loan pipeline is strong as we head into summer and we foresee growth even in light of a number of expected second quarter loan prepayments.”
Total assets at March 31, 2018 were $273.9 million compared to $271.1 million at December 31, 2017. Total loans increased $6.1 million and stood at $209.0 million compared to $202.9 million at December 31, 2017 while total deposits increased $2.4 million to $244.6 million at March 31, 2018 compared to $242.2 million at December 31, 2017.
The provision for loan losses totaled $20,000 for the three months ended March 31, 2018, compared to $40,000 in the first quarter of 2017. Net loan recoveries in the first quarter 2018 totaled $25,969 compared to net charge-offs of $8,093 recorded in the first quarter of 2017.
Non-performing assets totaled $3.7 million at March 31, 2018 and included $2.6 million of non-performing loans and $1.1 million of other real estate owned (OREO), compared to a total of $3.7 million at year end 2017 which included $2.8 million of non-performing loans and $0.9 million of OREO.
The allowance for loan losses, as a percentage of period end loans, was 1.41 percent at March 31, 2018 compared to 1.43 percent at December 31, 2017.
Book value per share at March 31, 2018 was $9.15 compared to $9.04 at December 31, 2017 based on 3.1 million shares outstanding in each period.
Shore Community Bank is traded on the OTCPK under the symbol “SHRC”.
Shore Community Bank operates five banking offices located in Toms River, 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 "expect," "believe," “anticipate,” “estimate,” “forecast,” "intend," “will,” "may" or other similar words and expressions. Forward-looking statements speak only as of the date they are made. Shore Community Bank assumes no obligation to update the forward-looking information in this announcement, except as required under applicable law.
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