Shore Community Bank Announces Third Quarter and Year-to-Date Results

TOMS RIVER, N.J., Oct. 28, 2015

For the nine months ended September 30, 2015, the Bank reported net income of $850,532, or $0.34 per diluted share compared to net income of $646,254, or $0.26 per diluted share for the nine months ended September 30, 2014, representing an increase in net income of 31.6 percent.

Total assets at September 30, 2015 were $239.3 million, growing 10.7 percent, compared to $216.1 million at December 31, 2014. Total loans increased 13.0 percent and stood at $162.2 million at September 30, 2015, compared to $143.5 million at December 31, 2014 while total deposits equaled $205.2 million at September 30, 2015, compared to $183.1 million at December 31, 2014.

Robert T. English, President & Chief Executive Officer stated, "We are pleased to have achieved year-to-date growth in net income of 31.6 percent accompanied by 13.0 percent year-to-date growth in our loan portfolio. The cornerstone of SCB's multi year Plan is built around the continued expansion of the loan portfolio while managing credit quality and overhead costs. To carry out our Plan, we augmented our commercial lending team with a seasoned commercial loan officer in January of this year and this past September we added a portfolio manager/junior lender to ensure success in meeting our growth and earnings forecasts." Mr. English commented further, "Lending remains very competitive locally and borrowers are enjoying the lower interest rates associated with the substantial competition for loans. Our strength as a small community bank lies in our responsiveness to customer requests and quick turnaround time for making a loan decision. SCB is seeing a fair share of loan opportunities as we approach year end."

Non-performing assets, which includes other real estate owned (OREO), totaled $3.5 million at September 30, 2015, comprised of $0.7 million in non-performing loans and $2.8 million in OREO, compared to a total of $4.3 million at year December 31, 2014 which included $0.4 million of nonaccrual loans and $3.9 million of OREO. Total non-performing assets at September 30, 2015, as a percentage of total assets, were 1.46 percent compared to 2.01 percent at December 31, 2014.

The provision for loan losses totaled $100,000 for the three months ended September 30, 2015, compared to $105,000 for the same period in 2014. For the nine months ended September 30, 2015, the provision for loan losses totaled $400,000 compared to $280,000 in 2014. Net loan charge-offs totaled $1,593 in the third quarter of 2015 compared to $24,788 in the same period last year. Net loan charge-offs for the nine months ended September 30, 2015, totaled $156,305 compared to $67,115 in the same period of 2014.

The allowance for loan losses as a percentage of period end loans was 1.62 percent at September 30, 2015, compared to 1.66 percent at December 31, 2014.