Toms River, N.J., July 29, 2019…Shore Community Bank (OTCPK: SHRC) today reported core net income(1) of $880,483, or 27 cents per diluted share, for the second quarter ended June 30, 2019, compared to the $1,081,879, or 34 cents per diluted share, reported for the same quarterly period in 2018. Net Income for the second quarter ended June 30, 2019, inclusive of merger related expenses, totaled $572,158, or 18 cents per diluted share.
For the six months ended June 30, 2019, the Bank reported core net income(1) of $1,707,300, or 53 cents per diluted share, compared to net income of $1,920,218, or 61 cents per diluted share, for the six months ended June 30, 2018. Net Income for the six months ended June 30, 2019, inclusive of merger related expenses, totaled $1,398,976, or 44 cents per diluted share.
The Board of Directors also reported that on July 25th they announced a quarterly cash dividend of $0.075 per share. The dividend will be paid on August 16, 2019 to all shareholders of record on August 6, 2019.
Robert T. English, President & Chief Executive Officer, stated, “We are pleased to report second quarter core net income was in line with our budget expectations. On a core net income basis certain financial metrics such as our return on average assets at 1.29%, return on average equity of 10.98%, coupled with an efficiency ratio of 54.51% for the current quarter show we continue to operate at a high level of performance.” Mr. English further stated, “Our previously announced merger with 1st Constitution Bank is progressing through the regulatory application and approval process and we currently anticipate the transaction will be completed in the fourth quarter 2019.”
Total assets at June 30, 2019 increased 5.7%, totaling $282.7 million, compared to $267.5 million at December 31, 2018 while total loans stood at $213.0 million at June 30, 2019, compared to $210.7 million at December 31, 2018. Total deposits grew 5.5% to $248.3 million at June 30, 2019 compared to $235.4 million at year end 2018.
Non-performing assets totaled $3.1 million at June 30, 2019 and included $2.2 million of non-performing loans and $0.9 million of other real estate owned (OREO), compared to a total of $3.0 million at year end 2018 which included $2.0 million in non-performing loans and $1.0 million in OREO.
The allowance for loan losses, as a percentage of period end loans, was 1.22 percent at June 30, 2019 compared to 1.21 percent at December 31, 2018.
Book value per share at June 30, 2019 was $10.35 compared to $9.97 at December 31, 2018 based on 3,123,456 shares outstanding in each period.
Shore Community Bank is traded on the OTC Pink 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.
1. Core net income excludes $308,325 of merger related expenses incurred in the June 30, 2019 quarter and year to date period.
Forward Looking Statements
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.
No Offer or Solicitation
On June 23, 2019, Shore Community Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with 1st Constitution Bancorp and 1st Constitution Bank, providing for the merger of Shore Community Bank with and into 1st Constitution Bank, with 1st Constitution Bank as the surviving entity (the “Merger”). The material terms of the Merger Agreement and the Merger were disclosed on a Current Report on Form 8-K filed by 1st Constitution Bancorp with the Securities and Exchange Commission (the “Commission”) on June 25, 2019.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find It
In connection with the proposed Merger, 1st Constitution Bancorp intends to file a registration statement on Form S-4 with the Commission. 1st Constitution Bancorp may file other documents with the Commission regarding the proposed Merger. A definitive proxy statement/prospectus will be mailed to Shore Community Bank shareholders. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE COMMISSION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO SUCH DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the registration statement (when available), including the proxy statement/prospectus, and other documents containing information about 1st Constitution Bancorp at the Commission’s website at www.sec.gov. Copies of these documents may also be obtained from 1st Constitution Bancorp (when available) by directing a request to Robert F. Mangano, President and Chief Executive Officer, 1st Constitution Bancorp, at 2650 Route 130 North, P.O. Box 634, Cranbury, New Jersey 08512, telephone (609) 655-4500.
Certain Information Regarding Participants
Shore Community Bank and 1st Constitution Bancorp, their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from Shore Community Bank shareholders in respect of the proposed Merger. Information regarding the directors and executive officers of Shore Community Bank may be found in its proxy statement relating to its 2019 Annual Meeting of Shareholders, which can be obtained free of charge from Robert T. English, President and Chief Executive Officer, Shore Community Bank, 1012 Hooper Avenue, Toms River, New Jersey 08753, telephone (732) 240-5800. Information regarding the directors and executive officers of 1st Constitution Bancorp may be found in its definitive proxy statement relating to its 2019 Annual Meeting of Shareholders, which was filed with the Commission on April 19, 2019 and can be obtained free of charge from the Commission’s website at www.sec.gov or from 1st Constitution Bancorp by directing a request to Robert F. Mangano, President and Chief Executive Officer, 1st Constitution Bancorp, at 2650 Route 130 North, P.O. Box 634, Cranbury, New Jersey 08512, telephone (609) 655-4500. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the Commission when they become available.
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