TOMS RIVER, N.J., Oct. 17 /PRNewswire-FirstCall/ -- Shore Community Bank (OTC:SHRC) (BULLETIN BOARD: SHRC) today reported net income of $90,974 for the third quarter of 2008, a 31.7 percent decline in earnings compared to $133,227 reported in the third quarter of 2007. On a diluted basis, earnings per share for the third quarter of 2008 were 5 cents, compared to 8 cents recorded for the third quarter of 2007. The Bank also reported a net loss of $74,984 for the nine months ended September 30, 2008, compared to net income of $445,728 reported in the same period a year ago. On a diluted basis, the loss per share for the first nine months of 2008 were 4 cents compared to net income per share of 26 cents reported in the same period of 2007. Earl F. Sutton, President and Chief Executive Officer stated, "Due to economic conditions, the Bank continues to increase its provision for loan losses." The Bank contributed $355,000 to the provision for loan losses in the third quarter of 2008 compared to $130,000 for the same period of 2007. Net charge offs in the third quarter of 2008 totaled $175,000 compared to $30,000 in the same quarter last year. "Shore Community Bank's Business Plan is written to protect, preserve and create capital, while maintaining liquidity and minimizing our risk in the loan portfolio," stated Mr. Sutton. The Bank's total assets at September 30, 2008 were $208.1 million compared to $193.6 million at September 30, 2007, representing a 7.5 percent increase in total assets. Total loans at September 30, 2008 stood at $157.6 million compared to $150.6 million at September 30, 2007, an increase of 4.6 percent. Total deposits increased 3.9 percent to $172.7 million at September 30, 2008 compared to $166.2 million at September 30, 2007. Shore Community Bank is traded on the OTCBB (Over the Counter Bulletin Board) under the symbol SHRC. Shore Community Bank operates six banking offices, located in Toms River, Ortley Beach, Jackson and Manahawkin. Mr. Sutton stated, "Our newest office located in Manahawkin will permit Shore Community to extend its services to many existing and future customers in the southern part of Ocean County." 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-COO-CFO of Shore Community Bank, +1-732-240-5800 Web site: http://www.shorecommunitybank.com/

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