Toms River, New Jersey – April 25, 2013…Shore Community Bank (OTCQB:SHRC) today announced net income for the three months ended March 31, 2013 of $152,838, or 8 cents per diluted share, compared to net income of $214,162, or 11 cents per diluted share, reported for the first quarter of 2012. Earnings per share for all reported periods have been adjusted for the 10% stock dividend declared in March 2013. The decline in…
Toms River, New Jersey – April 25, 2013…Shore Community Bank (OTCQB:SHRC) today announced net income for the three months ended March 31, 2013 of $152,838, or 8 cents per diluted share, compared to net income of $214,162, or 11 cents per diluted share, reported for the first quarter of 2012. Earnings per share for all reported periods have been adjusted for the 10% stock dividend declared in March 2013.
The decline in first quarter 2013 net income was primarily attributable to a decrease of $235,470 in net interest income as a consequence of lower yields on security investments and loans. This decline in net interest income was partially offset by a lower loan loss provision and an increase in non-interest income. In the first quarter of 2013, the provision for loan losses totaled $75,000 compared to $150,000 recorded in the first quarter last year while non-interest income grew to $171,161 compared to $114,626 for the three months ended March 31, 2012.
Commenting on the results, Robert T. English, President and Chief Executive Officer stated, “A reduced net interest margin is a consequence of the prolonged low rate environment and will continue until our local economy improves sufficiently enough to generate an increase in loan demand.” Mr. English further stated, “We intended to counter the decline in the interest margin with prudent loan growth and increased fee income from residential loan sales.”
Total assets at March 31, 2013 grew to $226.1 million compared to $223.9 million at December 31, 2012. Total loans declined $2.7 million and stood at $110.1 million compared to $112.8 million at December 31, 2012 while total deposits increased $2.2 million to $186.7 million at March 31, 2013 compared to $184.5 million at December 31, 2012.
The provision for loan losses totaled $75,000 for the three months ended March 31, 2013, as compared to $150,000 in the first quarter of 2012. Net charge-offs in the first quarter 2013 totaled $25,088 compared to net charge-offs of $145,505 recorded in the first quarter of 2012.
Non-performing assets, which includes other real estate owned, stood at $7.7 million at March 31, 2013 compared to $8.1 million at December 31, 2012. The allowance for loan losses, as a percentage of period end loans, was 2.00 percent at March 31, 2013 compared to 1.90 percent at December 31, 2012.
Shore Community Bank is traded on the OTCQB. Market information can be found under the symbol SHRC at www.otcmarkts.com.
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 “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.