Shore Community Bank Announces First Quarter 2007 Earnings

TOMS RIVER, N.J., April 18  /PRNewswire-FirstCall/ -- Shore Community Bank (OTC:SHRC) (BULLETIN BOARD: SHRC)  today reported net income of $146,217 for the first quarter of 2007, a 46 percent decrease in earnings compared to net income of $270,519 reported for the first quarter of 2006. On a diluted basis, earnings per share for the first quarter of 2007 were 9 cents compared to 16 cents for the first quarter of 2006.

Theodore D. Bessler, President and Chief Executive Officer stated, "Deposit interest expense has increased 70 percent from the previous year due to deposit growth and higher priced deposit products resulting from interest rate increases by the Federal Reserve Board.  The bank's operating costs increased 14% mainly due to expansion into the Jackson market.  The ratio of deposit to loan growth is almost two to one whereby the bank continues to slow the process of speculative construction financing in lieu of the current weak housing market."

The bank's total assets at March 31, 2007 were $200.5 million compared to $168.6 million at March 31, 2006, representing an 18.9 percent increase in total assets.  Total loans at March 31, 2007 stood at $144.9 million compared to $129.9 million at March 31, 2006, an increase of 11.6 percent.  Total deposits grew 21.9 percent to $173.0 million at March 31, 2007 compared to $141.9 million at March 31, 2006.

Mr. Bessler stated, "We continue to move forward with our branch expansion into the Manahawkin market.  Our site located at the northerly corner of Highway 72 and Jennings Road should see construction activity this summer with a late fall opening."

Mr. Bessler further stated, "Management stands ready to meet the challenges that lie ahead for the remainder of the year.  Strong emphasis will focus on SBA lending, the mortgage brokerage division and loan review.  The bank has no sub-prime mortgage loans in its portfolio."

Shore Community Bank is traded on the OTCBB (Over the Counter Bulletin Board) under the symbol SHRC.

Shore Community Bank operates five banking offices, three located in Toms River, one in Ortley Beach, and our newest branch in Jackson, New Jersey.  The Bank was founded in 1997 by a group of local business leaders to return 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. 

DATASOURCE: Shore Community Bank



CONTACT:  Robert English, EVP-CFO-COO of Shore Community Bank,

[phone]



Web site:  http://www.shorecommunitybank.com/

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