Pre-Tax Income Up 109.2% for the Quarter and 72.8% for the Year
BERNARDSVILLE, N.J., Feb. 2 /PRNewswire-FirstCall/ -- Somerset
Hills Bancorp (NASDAQ:SOMH) reported record net income for the
fourth quarter and year end 2005. For the quarter ended December
31, 2005, net income increased by $189,000 to $603,000, or $0.16
per diluted share, up 45.7 percent from $0.11 per diluted share,
achieved during the fourth quarter of 2004. The Company's return on
average equity was 9.77 percent and return on average assets was
1.02 percent for the fourth quarter of 2005. The net interest
margin was 4.48 percent for the fourth quarter of 2005. For the
fourth quarter of 2004, the Company's return on average equity was
7.23 percent, its return on average assets was 0.89 percent, and
its net interest margin was 4.14 percent. For the year ended
December 31, 2005, net income increased to a record level of
$1,666,000, or $0.44 per diluted share, up 22.6 percent when
compared to $1,359,000, or $0.37 per diluted share, earned for the
year ended December 31, 2004. The Company's return on average
equity was 6.95 percent, return on average assets was 0.79 percent
and the net interest margin was 4.32 percent for the year ended
December 31, 2005. For the year ended December 31, 2004, the
Company's return on average equity was 6.09 percent, its return on
average assets was 0.76 percent, and its net interest margin was
3.78 percent. Somerset Hills Bancorp also declared a cash dividend
of $.02 per share payable February 24, 2006 to shareholders of
record as of February 13, 2006. Stewart E. McClure, Jr., President
and Chief Executive Officer said, "We are extremely pleased that at
a time when most of the industry is feeling pressure on their net
interest margin, ours has significantly improved to 4.48% in the
fourth quarter. This is partially a result of core deposits growing
to 90 percent of total deposits, which in turn is based on our
strong brand of old fashioned relationship banking built on
outstanding personal service and some of the best products
available in our market area." At December 31, 2005, loans
increased $34.1 million, or 26.0 percent, to $165.1 million from
$131.0 million when compared to the year ended December 31, 2004.
At December 31, 2005, deposits increased $53.3 million, or 34.4
percent, to $208.2 million from $154.9 million when compared to the
year ended December 31, 2004. At December 31, 2005, total assets
were $245.2 million, up from $181.9 million at December 31, 2004, a
34.8 percent increase. Somerset Hills Bancorp is a bank holding
company formed in January 2001 which owns all of the common stock
of Somerset Hills Bank, a full service commercial bank with offices
in Bernardsville, Mendham, Morristown, and Summit, New Jersey. It
has announced plans to open three additional offices in Madison,
Stirling, and Long Valley. Somerset Hills Bank focuses its lending
activities on small to medium sized businesses, high net worth
individuals, professional practice, and consumer and retail
customers. The Bank operates a licensed mortgage company
subsidiary, Sullivan Financial Services, Inc. and also operates
Somerset Hills Wealth Management Services, LLC, a wholly owned
subsidiary licensed to provide financial services, including
financial planning, insurance (life, health, property and
casualty), mutual funds and annuities for individuals and
commercial accounts, and Somerset Hills Title Group, LLC, which,
with its partner, Property Title Group, provides title services in
connection with the closing of real estate transactions. The common
stock of the Company is traded on NASDAQ under the symbol SOMH and
the Company's warrants are traded under the symbol SOMHW. You can
visit our website at http://www.somersethillsbank.com/.
Forward-Looking Statements This news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Those statements are
subject to known and unknown risk, uncertainties and other factors
that could cause the actual results to differ materially from those
contemplated by the statements. We based the forward-looking
statements on various factors and using numerous assumptions.
Important factors that may cause actual results to differ from
those contemplated by forward-looking statements include, for
example, the success or failure of our efforts to implement our
business strategy, the effect of changing economic conditions and,
in particular, changes in interest rates, changes in government
regulations, tax rates and similar matters, our ability to attract
and retain quality employees, and other risks which may be
described in our future filings with SEC. SOMERSET HILLS BANCORP
Selected Consolidated Financial Data (Unaudited) ($ in thousands
except per share data) Three Months Ended Nine Months Ended
September 30, September 30, 2005 2004 2005 2004 Income Statement
Data: Interest income $3,105 $1,872 $8,130 $5,901 Interest expense
897 498 2,179 1,494 Net interest income 2,208 1,649 5,951 4,407
Provision for loan losses 192 50 249 150 Net interest income after
prov. For loan losses 2,016 1,599 5,702 4,257 Non-interest income
849 735 2,129 2,177 Non-interest expense 2,135 1,880 6,241 5,418
Income before income taxes 730 454 1,590 1,016 Income tax expense
273 44 527 71 Net income $457 $410 $1,063 $945 Balance Sheet Data:
Total assets $233,383 $187,385 Loans 157,827 123,993 Loans held for
sale 11,630 7,340 Allowance for loan losses (1,886) (1,556)
Investment securities held to maturity 7,582 7,388 Investment
securities held for sale 29,386 20,946 Deposits 206,678 162,900
Shareholders' equity 24,452 22,702 Performance Ratios: Return on
average assets 0.82% 0.89% 0.70% 0.72% Return on average equity
7.51% 7.33 5.97% 5.69% Net interest margin 4.24 3.87% 4.25 3.66%
Efficiency ratio 69.8% 81.6% 77.2% 82.3% Asset Quality: Nonaccrual
loans 0 0 OREO property 0 0 Net charge-offs (recoveries) (4) 11
Allowance for loan losses to total loans 1.20% 1.25% Nonperforming
loans to total loans 0.00% 0.00% Per Share Data: Earnings per
share- Basic $0.14 $0.13 $0.33 $0.30 Earnings per share- Diluted
$0.12 $0.11 $0.28 $0.26 Book value per share $7.51 $7.44 Tangible
book value $7.14 $7.05 SOMERSET HILLS BANCORP Selected Consolidated
Financial Data (Unaudited) ($ in thousands except per share data)
Three Months Ended Twelve Months Ended December 31, December 31,
2005 2004 2005 2004 Income Statement Data: Interest income $3,474
$2,302 $11,605 $8,202 Interest expense 1,015 525 3,194 2,019 Net
interest income 2,459 1,777 8,411 6,183 Provision for loan losses
143 75 392 225 Net interest income after prov. for loan losses
2,316 1,702 8,019 5,958 Non-interest income 810 668 2,939 2,845
Non-interest expense 2,172 1,914 8,414 7,331 Income before income
taxes 954 456 2,544 1,472 Income tax expense 351 42 878 113 Net
income $603 $414 $1,666 $1,359 Balance Sheet Data: Total assets
$245,217 $181,876 Loans, net 165,118 131,039 Loans held for sale
15,380 10,328 Allowance for loan losses (2,029) (1,634) Investment
securities held to maturity 9,366 5,847 Investment securities held
for sale 31,899 17,484 Deposits 208,244 154,875 Shareholders'
equity 24,856 23,048 Performance Ratios: Return on average assets
1.02% 0.89% 0.79% 0.76% Return on average equity 9.77% 7.23% 6.95%
6.09% Net interest margin 4.48% 4.14% 4.32% 3.78% Efficiency ratio
66.4% 78.3% 74.1% 81.2% Asset Quality: Nonaccrual loans 0 0 OREO
property 0 0 Net charge-offs (recoveries) (4) 8 Allowance for loan
losses to total loans 1.21% 1.23% Nonperforming loans to total
loans 0.00% 0.00% Per Share Data: Earnings per share- Basic $0.19
$0.13 $0.51 $0.42 Earnings per share- Diluted $0.16 $0.11 $0.44
$0.37 Book value per share 7.62 7.20 Tangible book value 7.25 6.83
SOMERSET HILLS BANCORP Balance Sheets (in thousands, except per
share data) December 31, 2005 December 31, 2004 (Unaudited) ASSETS
Cash and due from banks $10,218 $5,000 Interest bearing deposits
103 85 Federal funds sold - - Total cash and cash equivalents
10,321 5,085 Loans held for sale, net 15,380 10,328 Investment
securities held to maturity (Market value 9,366 5,847 $9,372 in
2005 and $ 5,862 in 2004) Investment securities available-for-sale
31,899 17,484 Loans receivable 167,301 132,871 less allowance for
loan losses (2,029) (1,634) deferred fees (154) (198) Net loans
receivable 165,118 131,039 Premises and equipment, net 4,679 4,231
Goodwill, net 1,191 1,191 Bank owned life insurance 5,533 5,341
Accrued interest receivable 1,135 652 Other assets 595 678 Total
assets $245,217 $181,876 LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES Deposits Non-interest bearing deposits- demand $45,667
$37,061 Interest bearing deposits-NOW, money market and savings
141,846 94,066 Certificates of deposit, under $100,000 14,034
16,819 Certificates of deposit, $100,000 and over 6,697 6,929 Total
deposits 208,244 154,875 Federal Home Loan Bank advances 10,600
3,200 Accrued interest payable 252 88 Other liabilities 1,265 665
Total liabilities 220,361 158,828 Commitments and contingencies
STOCKHOLDERS' EQUITY Preferred stock-1,000,000 shares authorized;
none issued - - *Common stock- authorized,9,000,000 shares of no
par value;issued and outstanding, 3,263,132 shares in 2005 and
3,201,920 in 2004 24,389 23,940 Retained earnings (Accumulated
deficit) 774 (827) Accumulated other comprehensive loss income
(307) (65) Total stockholders' equity 24,856 23,048 Total
liabilities and stockholders' equity $245,217 $181,876 * Restated
to reflect 5% stock dividend SOMERSET HILLS BANCORP Statement of
Operations (in thousands, except per share data) Three Three Twelve
Twelve months months months months ended ended ended ended Dec. 31,
Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 (unaudited)
(unaudited) (unaudited) INTEREST INCOME Loans, including fees
$3,043 $2,027 $10,152 $7,128 Federal funds sold 11 19 181 67
Investment securities 415 252 1,239 998 Cash and due from banks 5 4
33 9 Total interest income 3,474 2,302 11,605 8,202 INTEREST
EXPENSE Deposits 963 512 3,089 1,962 Federal Funds Purchased 4 - 4
2 Federal Home Loan Bank advances 48 13 101 55 Total interest
expense 1,015 525 3,194 2,019 Net Interest Income 2,459 1,777 8,411
6,183 PROVISION FOR LOAN LOSSES 143 75 392 225 Net interest income
after provision for loan losses 2,316 1,702 8,019 5,958
NON-INTEREST INCOME Service fees on deposit accounts 70 75 273 289
Gains on sales of mortgage loans, net 630 475 2,251 2,183 Gains
(losses) on sales of investment securities, net - 9 (2) 9 Other
income 110 109 417 364 Total Non-Interest Income 810 668 2,939
2,845 NON-INTEREST EXPENSE Salaries and employee benefits 1,088 937
4,192 3,707 Occupancy expense 336 334 1,397 1,242 Advertising &
business promotions 144 166 540 504 Printing stationery and
supplies 69 59 250 204 Data processing 99 74 379 288 Other
operating expense 436 344 1,656 1,386 Total Non-Interest Expense
2,172 1,914 8,414 7,331 Income before provision for taxes 954 456
2,544 1,472 PROVISION FOR INCOME TAX 351 42 878 113 Net income $603
$414 $1,666 $1,359 Per share data Net income - basic $0.19 $0.13
$0.51 $0.42 Net income - diluted $0.16 $0.11 $0.44 $0.37 Per share
data reflects a 5% stock dividend which was effective June 30, 2005
First Call Analyst: FCMN Contact: DATASOURCE: Somerset Hills
Bancorp CONTACT: Stewart E. McClure, Jr., President and Chief
Executive Officer, +1-908-630- 5000, or Gerard Riker, EVP and Chief
Financial Officer, +1-908-630-5018, Somerset Hills Bancorp Web
site: http://www.bankofsomersethills.com/
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