Shore Community Bank Announces First Quarter 2007 Earnings

    TOMS RIVER, N.J., April 18 /PRNewswire-FirstCall/ -- Shore Community
 Bank (OTC 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.
 
 

SOURCE Shore Community Bank