TOMS RIVER, N.J., Jan. 29 /PRNewswire-FirstCall/ -- Shore Community Bank (OTC:SHRC) (BULLETIN BOARD: SHRC) today reported net income of $289,417 for the fourth quarter of 2006, a 6.9 percent decrease compared to net income of $310,736 reported for the fourth quarter of 2005. On a diluted basis, earnings per share for the fourth quarter of 2006 were 17 cents compared to 19 cents for the fourth quarter of 2005. The Bank also reported net income of $1,143,192 for the twelve months ended December 31, 2006, an 11.3 percent increase over the $1,027,502 reported in 2005. On a diluted basis, earnings per share for the year 2006 were 69 cents compared to 70 cents reported at year-end 2005. Earnings per share for the quarter and year-to-date period 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 2006 and 2005 have been adjusted for the 5% stock dividend declared in December 2006 and paid in January 2007. Theodore D. Bessler, President and Chief Executive Officer stated, "Our new Jackson branch facility is now in full operation and shortly, construction will begin on our Manahawkin, Stafford Township, branch site with a late summer completion." The Bank's total assets at December 31, 2006 were $194.9 million compared to $164.2 million at December 31, 2005, representing an 18.7 percent increase in total assets. Total loans at December 31, 2006 stood at $145.2 million compared to $122.1 million at December 31, 2005, an increase of 18.9 percent. Total deposits grew 20.9 percent to $167.7 million at December 31, 2006 compared to $138.7 million at December 31, 2005. Mr. Bessler stated, "We are very pleased with our financial performance for 2006 and we must continue to perform in the challenging year ahead in spite of the slowing real estate market and compressed net interest rate margin banking institutions are experiencing this period due to the current inverted yield curve." Mr. Bessler further stated, "We are excited to celebrate our 10th year anniversary and look forward to a bright and successful future. We will continue to focus on excellent community banking services and remain true to our core mission of establishing lifelong relationships within the communities that we serve." 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 one 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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