TOMS RIVER, N.J., July 20 /PRNewswire-FirstCall/ -- Shore Community Bank (OTC:SHRC) (BULLETIN BOARD: SHRC) today reported net income of $299,753 for the second quarter of 2006, a 17.2 percent increase in earnings over the $255,867 reported in the second quarter of 2005. On a diluted basis, earnings per share for the second quarter of 2006 were 19 cents compared to 20 cents for the second quarter of 2005. The Bank also reported net income of $570,272 for the six months ended June 30, 2006, a 25.6 percent increase over the $453,844 reported in the same period a year ago. On a diluted basis, earnings per share for the first half of 2006 were 36 cents compared to 35 cents reported in the first half of 2005. Earnings per share for the quarter and the first half of 2006 were affected by the additional 280,000 shares issued as a result of the Bank's successful stock offering which was completed on September 1, 2005. Additionally, earnings per share for 2005 have been adjusted for the 5% stock dividend declared in October 2005 and paid in January 2006. Theodore D. Bessler, President and Chief Executive Officer, stated, "We are most pleased with the financial results of the bank over the past six- month period in spite of increased interest rate pressures resulting in a tighter interest rate margin. We will continue our financial strategy by focusing on growth and expanding into other Ocean County communities. In early September 2006, we anticipate the opening of our Jackson branch office and expect to open a sixth branch facility in Manahawkin in the second quarter of 2007." The Bank's total assets at June 30, 2006 were $181.2 million compared to $151.5 million at June 30, 2005, representing a 19.6 percent increase in total assets. Total loans at June 30, 2006 stood at $136.7 million compared to $103.5 million at June 30, 2005, an increase of 32.1 percent. Total deposits grew 17.4 percent to $155.3 million at June 30, 2006 compared to $132.3 million at June 30, 2005. Mr. Bessler stated, "We have grown substantially over the past period, but now the bank will be entering another phase of development introducing four new deposit products and the launching of a SBA Loan Program that will enhance our commercial lending activity within the bank's trade area." Shore Community Bank is traded on the OTCBB (Over the Counter Bulletin Board) under the symbol SHRC. Shore Community Bank operates four banking offices, three located in Toms River and one in Ortley Beach. The Bank was founded in 1997 by a group of local business leaders to return community-based banking to the Toms River 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 T. English, EVP/CFO/COO, Shore Community Bank, +1-732-240-5800 Web site: http://www.shorecommunitybank.com/

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