TOMS RIVER, N.J., Jan. 29, 2015 /PRNewswire/ -- Shore Community Bank (OTCQB: SHRC) today reported net income for the three months ended December 31, 2014 of $433,869, or $0.19 per diluted share, compared to net income of $620,377, or $0.27 per diluted share, for the same period in 2013. For the year ended December 31, 2014, Shore Community Bank reported net income of $1,080,122, or $0.48 per diluted share, compared to $1,196,325, or $0.54 per diluted share, for the year ended December 31, 2013.
Excluding non-core items which, in 2014, included a credit for loan losses and a write down of other real estate owned (OREO), there was no impact on net income for the year. In 2013, OREO related non-core revenue items, net of tax expense, positively impacted net income by $380,151 or $0.17 per diluted share. On a core basis, net income in 2014 increased 32.3 percent from 2013.
Commenting on the results, Robert T. English, President and Chief Executive Officer stated, "The Board and management are extremely pleased with the 2014 results which included a 32% increase in core net income as well as loan growth of over 30% for the full year. Strong loan growth, coupled with a significant decline in funding costs, resulted in an increase of 6.7% or $411,268 in net interest income. Additionally, as the year came to a close, we finalized two legal settlements as a result of outstanding judgments which concluded in loan loss recoveries of $472,870. As a result of these fourth quarter recoveries, we recorded a credit for loan losses totaling $170,000 for the full year 2014 compared to a provision for loan losses of $275,000 in 2013." Mr. English further stated, "As our other real estate owned holdings reached $3.9 million at year end 2014, the Board of Directors initiated an aggressive disposition strategy by writing down targeted OREO properties in the fourth quarter by a total of $460,000 to allow for greater flexibility in negotiating with potential buyers to remove these properties from our books and eliminate the carrying costs."
Total assets, at December 31, 2014, decreased 6.1 percent and totaled $216.1 million, compared to $230.2 million at December 31, 2013. Total loans increased 30.7 percent and finished the year at $143.5 million, as compared to $109.8 million at December 31, 2013. Total deposits decreased 7.6 percent to $183.1 million at December 31, 2013, as compared to $198.2 million at year-end 2013.
Non-performing assets totaled $4.3 million at December 31, 2014 and included $0.4 million in non-performing loans and $3.9 million in OREO, compared to a total of $5.3 million at year end 2013 which included $3.0 million in non-performing loans and $2.3 million in OREO.
A credit for loan losses of $450,000 was recorded for the three months ended December 31, 2014, compared to no loan loss provision for the same quarter in 2013. Net loan recoveries totaled $373,558 in the fourth quarter of 2014 compared to net loan recoveries of $42,379 in the fourth quarter in 2013. For the twelve months ended December 31, 2014, the credit for loan losses totaled $170,000 compared to a provision for loan losses of $275,000 in the twelve month period ended December 31, 2013. The Bank reported net loan recoveries of $306,444 for the year ended December 31, 2014, compared to net loan charge-offs of $181,858 for the year ended December 31, 2013.
The allowance for loan losses as a percentage of period end loans was 1.66 percent at December 31, 2014 compared to 2.04 percent at December 31, 2013.
The Bank's capital ratios remain strong and are in excess of what is considered "well capitalized" by bank regulatory standards. At December 31, 2014, the Tier 1 leverage and Tier 1 risk based capital ratio were 10.3 percent and 15.1 percent, respectively. The total risk-based capital ratio was 16.2 percent.
Book value per share at December 31, 2014 was $10.58 compared to $10.02 at December 31, 2013 based on 2.2 million shares outstanding in each period.
Shore Community Bank is traded on the OTCQB 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 "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