Toms River, N.J., July 26, 2018…Shore Community Bank (OTCPK: SHRC) today reported net income grew 64.3% to $1,081,879, or 34 cents per diluted share, for the second quarter ended June 30, 2018, compared to the $658,653, or 21 cents per diluted share, reported for the same quarterly period in 2017.
For the six months ended June 30, 2018, the Bank reported net income grew 60.3% to $1,920,218, or 61 cents per diluted share, compared to net income of $1,197,925, or 38 cents per diluted share, for the six months ended June 30, 2017.
The Board of Directors also announced a quarterly cash dividend of $0.075 per share. The dividend will be paid on August 17, 2018 to all shareholders of record on August 7, 2018.
Robert T. English, President & Chief Executive Officer, stated, “Second quarter performance was impacted favorably by the continued reduction of non-performing loans and the effect of a quality loan portfolio. Our non-performing asset ratio is much improved and now stands at 0.35% compared to 1.36% at December 31, 2017.” Mr. English further stated, “The Federal Reserve is poised to continue hiking interest rates and the Bank is aware of the potential increases. Although GDP is forecast to improve to 3.50% or better, rate hikes later this year and next will pose a challenge to residential mortgage lending and could impact commercial activity as well.”
Total assets at June 30, 2018 increased 3.6%, totaling $280.8 million, compared to $271.1 million at December 31, 2017 while total loans stood at $204.8 million at June 30, 2018, compared to $202.9 million at December 31, 2017. Total deposits grew 3.5% to $250.6 million at June 30, 2018 compared to $242.1 million at year end 2017.
Non-performing assets, which includes nonaccrual loans and other real estate owned (OREO), totaled $1.0 million at June 30, 2018 and consisted of $35,000 of nonaccrual loans and $955,000 of OREO, compared to a total of $3.7 million at year December 31, 2017 which included $2.8 million of nonaccrual loans and $0.9 million of OREO. Total non-performing assets at June 30, 2018, as a percentage of total assets, were 0.35% compared to 1.36% at December 31, 2017.
There was no provision for loan losses recorded in the quarter ended June 30, 2018 compared to a provision of $60,000 in the same quarter in 2017. Net charge-offs totaled $20,636 in the second quarter of 2018, compared to net loan recoveries of $2,174 in the second quarter of 2017. The allowance for loan losses as a percentage of period end loans stood at 1.43% at June 30, 2018 which equaled 1.43% at December 31, 2017.
Book value per share at June 30, 2018 was $9.41 based on 3,123,456 shares outstanding, compared to $9.04 at December 31, 2017 based on 3,098,858 shares outstanding.
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.
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.
# # #