West Shore Bank Corporation Reports 1st Half 2008 Earnings

LUDINGTON, Mich., Aug. 5  /PRNewswire-FirstCall/ -- West Shore Bank Corporation (Pink Sheets: WSSH.PK) today announced 2008 first half net income of $1.13 million, or $0.81 per share, versus net income of $1.03 million, or $0.71 per share in the first half of 2007.

Net interest income was $4.63 million for the first half of 2008, an increase of $132,000, or 2.9%, from the first half of 2007.  The increase was due primarily to the increase in net interest margin.  Net interest margin (on a tax equivalent basis) for the first half of 2008 was 3.37%, up from 3.27% in the first half of 2007.

Non-interest income was $911,000 for the first half of 2008, an increase of $115,000, or 14.4%, from $796,000 in the first half of 2007.  The increase was due primarily to higher gain on sale of securities of $75,000 and higher bank-owned life insurance income of $21,000.

Operating expenses in the first half of 2008 were $3.84 million, up $170,000, or 4.6%, from $3.67 million in the first half of 2007.  Increases in credit and collection expenses, Michigan Business Tax and other miscellaneous expenses represented the majority of the increase.

At June 30, 2008, non-performing assets totaled $4.55 million, or 1.43% of total assets.  At June 30, 2007, total non-performing assets were $2.08 million, or .69% of total assets.  The increase was due primarily to two non-accrual loans totaling approximately $2 million.  These loans have been analyzed and deemed to have sufficient collateral values so as not to require a specific allocation of the allowance for loan losses.

On May 20, 2008, the Board of Directors of the Company declared a semiannual cash dividend of $0.40 per share of common stock.  The semiannual dividend was payable on June 6, 2008 to shareholders of record on May 26, 2008.

The Company operates through a single subsidiary bank, West Shore Bank, with seven banking offices spread over Mason, Manistee and Oceana counties. At June 30, 2008, the Company had total assets of $317.4 million.

  Key Financial Information (Unaudited):

                                                           Six Months Ended
                                                               June 30,
                                                          2008         2007
  Net interest margin                                     3.37%        3.27%
  Efficiency ratio                                       69.33%       69.36%
  Return on average assets                                 .74%         .67%
  Return on average equity                                8.55%        7.46%
  Net loan charge-offs as a percent of average loans       .17%         .07%
  Weighted average shares outstanding                1,388,240    1,452,652


                                                               June 30,
                                                          2008         2007
  Book value per share                                  $18.44       $18.67
  Tier 1 Leverage                                         8.45%        9.07%
  Total risk-based capital                               13.22%       14.86%
  Allowance as a percent of total loans                   1.10%        1.20%
  Nonperforming loans as a percent of total loans         1.42%         .75%


DATASOURCE: West Shore Bank Corporation



CONTACT:  Kevin Twardy of West Shore Bank Corporation, [phone],





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

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