TOMS RIVER, N.J., July 26 /PRNewswire-FirstCall/ -- Shore Community Bank (OTC:SHRC) (BULLETIN BOARD: SHRC) today reported net income of $166,284 for the second quarter of 2007, a 44.5 percent decline in earnings from the $299,753 reported in the second quarter of 2006. On a diluted basis, earnings per share for the second quarter of 2007 were 10 cents compared to 18 cents for the second quarter of 2006. The Bank also reported net income of $312,501 for the six months ended June 30, 2007, a 45.2 percent decline from the $570,272 reported in the same period a year ago. On a diluted basis, earnings per share for the first half of 2007 were 19 cents compared to 34 cents reported in the first half of 2006. Theodore D. Bessler, President & Chief Executive Officer stated, "The Bank's earnings decline is a direct result of the interest rate squeeze on our deposit and loan activity. We have avoided any of the sub-prime mortgage issues dominating the press in recent months. We continue to expand into new market areas to develop a strong banking franchise for the future. Operational costs associated with this commitment are high; however as our new branch network increases its volume in our loan and deposit base we should be able to generate additional income to offset these costs." We anticipate construction to begin on our sixth branch facility in the fourth quarter of 2007. Approvals through state agencies have taken longer than expected. Our new Manahawkin branch site is located at the north-western corner of Route 72 and Jennings Road, Manahawkin. The Bank's total assets at June 30, 2007 were $190.4 million compared to $181.2 million at June 30, 2006, representing a 5.1 percent increase in total assets. Total loans at June 30, 2007 stood at $146.1 million compared to $136.7 million at June 30, 2006, an increase of 6.9 percent. Total deposits grew 5.7 percent to $164.2 million at June 30. 2007 compared to $155.3 million at June 30, 2006. We will always continue to emphasis the benefits of community banking at Shore Community Bank. We work within the communities we serve, developing relationship and one-on-one banking. We recognize the key to our company's overall success is a satisfied and loyal customer. Recently, we formed an ad- hoc committee to review and insure that we take advantage of emerging technological advancements for the benefits of our customers. We continue to improve upon our sales culture to provide a stronger emphasis of "exceeding customer expectations" with highly qualified bank employees. 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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