TOMS RIVER, N.J., April 16 /PRNewswire-FirstCall/ -- Shore Community Bank (OTC:SHRC) (BULLETIN BOARD: SHRC) today reported net income of $49,155 for the first quarter of 2008, a 66.4 percent decrease in earnings compared to net income of $146,217 reported for the first quarter of 2007. On a diluted basis, earnings per share for the first quarter of 2008 were 3 cents compared to 9 cents for the first quarter of 2007. Theodore D. Bessler, President and Chief Executive Officer stated, "The first quarter of 2008 results were on target with our budget projections; however, they fell below the net income earned for the same period last year. The bank's interest expense on deposits will provide some relief in the coming months due to the recent reduction in interest rates by the Federal Reserve Board. Our local economy is struggling in this environment which has an impact on our commercial lending portfolio. Non-performing loans represent 2.0 percent of our total loan portfolio." Mr. Bessler further stated, "We are pleased to see that most of the loans reported are through the legal system and are scheduled for sheriff sales within the next quarter." "Even though there are numerous weaknesses currently within the financial marketplace, the bank has a strong, experienced management team committed to resolving the issues at hand, along with a year end 2007 total capital to risk weighted asset ratio of 12.2%," stated Mr. Bessler. The bank's total assets at March 31, 2008 were $211.5 million compared to $200.5 million at March 31, 2007, representing a 5.5 percent increase in total assets. Total loans at March 31, 2008 stood at $159.9 million compared to $144.9 million at March 31, 2007, an increase of 10.4 percent. Total deposits grew 6.1 percent to $183.5 million at March 31, 2008 compared to $173.0 million at March 31, 2007. Mr. Bessler stated, "All approvals are completed regarding our new Manahawkin branch facility. A ground breaking ceremony is scheduled for April 17, 2008 with a late summer grand opening. The relationships established over the years in this exciting marketplace should provide a strong base for future growth of this office." 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, +1-732-240-5800 Web site: http://www.shorecommunitybank.com/

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