Toms River, N.J., January 30, 2014…Shore Community Bank (OTCQB: SHRC) today reported net income for the three months ended December 31, 2013 of $620,377, or $0.30 per diluted share, compared to net income of $177,435, or $0.09 per diluted share, for the same period in 2012. For the year ended December 31, 2013, Shore Community Bank reported net income of $1,196,324, or $0.59 per diluted share, compared to $916,644, or $0.46 per…
Toms River, N.J., January 30, 2014…Shore Community Bank (OTCQB: SHRC) today reported net income for the three months ended December 31, 2013 of $620,377, or $0.30 per diluted share, compared to net income of $177,435, or $0.09 per diluted share, for the same period in 2012. For the year ended December 31, 2013, Shore Community Bank reported net income of $1,196,324, or $0.59 per diluted share, compared to $916,644, or $0.46 per diluted share, for the year ended December 31, 2012, an increase in net income of 30.5 percent.
Commenting on the results, Robert T. English, President and Chief Executive Officer stated, “We are announcing a record net income for the year 2013 as a result of a very strong fourth quarter. We are pleased with our efforts overall however, we must acknowledge the earnings benefit derived during the course of the year from certain non-core activity such as net gains from the sale of other real estate owned (OREO) amounting to $195,573 and negotiated insurance settlements involving three OREO properties, two since sold, totaling $437,378. These non-core revenue items, net of tax expense, increased net income for the year 2013 by $380,151 or $0.19 per diluted share.” Mr. English further stated “The results for 2013 nevertheless represent the fifth consecutive year of increased earnings and are the culmination of hard work and dedication from our officers and associates particularly in the aftermath a year ago from Super Storm Sandy.”
Total assets, at December 31, 2013, increased 2.8 percent and totaled $230.2 million, compared to $223.9 million at December 31, 2012. Total loans decreased 2.7 percent and finished the year at $109.8 million, as compared to $112.8 million at December 31, 2012. Total deposits increased 7.4 percent to $198.2 million at December 31, 2013, as compared to $184.5 million at year-end 2012.
Non-performing assets totaled $5.3 million at December 31, 2013, and included $3.0 million in non-performing loans and $2.3 million in OREO, compared to a total of $8.1 million at year end 2012 which included $7.1 million in non-performing loans and $1.0 million in OREO.
There was no provision for loan losses taken for the three months ended December 31, 2013, compared to $250 thousand for the same period in 2012. Net loan recoveries totaled $42 thousand in the fourth quarter of 2013 compared to net charge-offs of $221 thousand in the same quarter in 2012. For the twelve months ended December 31, 2013, the provision for loan losses totaled $275 thousand compared to $725 thousand in the twelve month period ended December 31, 2012. Net loan charge-offs for the twelve months ended December 31, 2013, totaled $182 thousand compared to $575 thousand for the year ended December 31, 2012.
The allowance for loan losses as a percentage of period end loans was 2.04 percent at December 31, 2013 compared to 1.90 percent at December 31, 2012.
The Bank’s capital ratios remain strong and are in excess of what is considered “well capitalized” by bank regulatory standards. At December 31, 2013, the Tier 1 leverage and Tier 1 risk based capital ratio were 9.6 percent and 17.9 percent, respectively. The total risk-based capital ratio was 19.1 percent.
Book value per share at December 31, 2013 was $11.02, compared to $10.80 at December 31, 2012 based on 2.0 million shares outstanding in each period.
Shore Community Bank is traded on the OTCQB 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 “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.