Shore Financial Corporation Announces 16% Increase in Core Earnings
April 22 2008 - 2:57PM
PR Newswire (US)
ONLEY, Va., April 22 /PRNewswire-FirstCall/ -- Shore Financial
Corporation (NASDAQ:SHBK) announced today that quarterly core
earnings were $704,100, or $0.28 per diluted share, for the three
months ended March 31, 2008, representing a 16.4% increase over
core earnings of $604,900, or $0.24 per diluted share, for the same
period of 2007. Impacting earnings was net interest income
improvement of 11.1% as a result of a stronger net interest margin
and loan growth when compared to the 2007 period. Core earnings
exclude merger related costs of $250,000 incurred in 2008 and gains
from investment securities activities of $46,600 realized during
the 2007 period. Including merger related costs, net income was
$454,100, or $0.18 per diluted share, for the three months ended
March 31, 2008. The company's net interest margin for the 2008
quarter was 3.75%, compared to 3.46% during the March 2007 quarter.
This 29 basis point increase resulted from a steeper yield curve
existing during the March 2008 period as compared to the prior year
period. Additionally, average loans outstanding during the 2008
quarter were $220.9 million, compared to $210.4 million during
2007, representing a 5.0% increase. These factors contributed to
the increase in net interest income to $2.30 million during the
2008 quarter, compared to $2.07 million during the March 2007
quarter. The company's core noninterest income increased to
$847,800 during the March 2008 three month period, representing an
8.3% increase over core noninterest income of $782,700 during the
2007 period. Noninterest income benefited from 12.1% growth in
deposit fees and a 15.3% increase in investment brokerage sales.
Core noninterest expense was $2.15 million during the March 2008
quarter, compared to $1.97 million during the 2007 three month
period. Increased costs associated with adding the bank's eighth
banking facility during September 2007 and leasing temporary
locations while two new banking facilities are being constructed
represented the largest impact on noninterest expense. The
company's assets were $267.1 million at March 31, 2008, including
$220.6 million in gross loans outstanding at period end. Asset
quality remained strong during the quarter with the bank's non
current loan to total loan ratio being 1.05% at March 31, 2008,
while the bank's allowance for loan losses to period end loans and
to nonaccrual loans ratios were 1.22% and 272.84%, respectively.
Management considers these levels manageable and commensurate with
the risk existing in the bank's loan portfolio. Shore Financial
Corporation is the only publicly traded company with headquarters
on the Eastern Shore of Virginia. Its stock is traded on the NASDAQ
Global Stock Market under the symbol SHBK. Its banking subsidiary,
Shore Bank, serves the Eastern Shore of Maryland and Virginia
through eight full-service banking facilities, twenty-two ATMs and
twenty-four hour telephone and online banking services. Through
banking subsidiaries and affiliated companies, the bank provides
title insurance and non deposit investment products. For more
information on stock, products and services, visit
http://www.shorebank.com/. Information about Merger of Shore
Financial Corporation and Hampton Roads Bankshares On January 9,
2008, Shore Financial Corporation announced the signing of a
definitive merger agreement with Hampton Roads Bankshares, Inc.
pursuant to which Shore Financial will be merged into Hampton Roads
Bankshares. On March 13, 2008, Hampton Roads Bankshares, Inc. filed
a registration statement on Form S-4, including a preliminary joint
proxy statement/prospectus constituting a part thereof, with the
Securities and Exchange Commission (the "SEC") containing
information about the proposed merger. On April 17, 2008, Hampton
Roads Bankshares filed the final joint proxy statement/prospectus
on Form 424(b)(2) with the SEC. Shareholders are urged to read the
registration statement and final joint proxy statement/prospectus
filed with the SEC, and any other relevant materials filed or that
will be filed, as they become available, because they will contain
important information about Hampton Roads Bankshares, Shore
Financial and the proposed merger. The final joint proxy
statement/prospectus was first mailed to shareholders of Shore
Financial on or about April 18, 2008. Investors and security
holders may obtain a free copy of the final joint proxy
statement/prospectus and other relevant documents (when they become
available) and any other documents filed with the SEC at its
website at http://www.sec.gov/. Free copies of the joint proxy
statement/prospectus and other relevant documents also may be
obtained by directing a request by telephone or mail to the
following: Hampton Roads Bankshares, Inc. 999 Waterside Drive,
Suite 200 Norfolk, VA 23510 Attention: Jack W. Gibson Telephone
Number: (757) 217-1000 Shore Financial Corporation 25020 Shore
Parkway Onley, Virginia 23418 Attention: Scott C. Harvard Telephone
Number: (757) 787-1335 This press release may contain
"forward-looking statements," within the meaning of federal
securities laws that involve significant risks and uncertainties.
Statements herein are based on certain assumptions and analyses by
the company and are factors it believes are appropriate in the
circumstances. Actual results could differ materially from those
contained in or implied by such statements for a variety of reasons
including, but not limited to: changes in interest rates; changes
in accounting principles, policies, or guidelines; significant
changes in economic conditions; significant changes in regulatory
requirements; and significant changes in securities markets.
Consequently, all forward-looking statements made herein are
qualified by these cautionary statements and the cautionary
language in the company's most recent Form 10-K report and other
documents filed with the Securities and Exchange Commission. Shore
Financial Corporation does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the
date the forward-looking statements are made. Shore Financial
Corporation Earnings Release Financial Highlights: Three Months
Ended March 31, 2008 2007 OPERATIONS: Net Interest Income
$2,296,500 $2,067,900 Noninterest Income $847,800 $829,300 Loan
Loss Provision (Recovery) $5,100 $600 Noninterest Expense
$2,148,000 $1,973,300 Merger Costs $250,000 $0 Income Tax Expense
$287,100 $286,200 Net Income $454,100 $637,100 RATIOS AND OTHER:
Total Shares Outstanding 2,504,983 2,499,487 Weighted Avg
Shares-Basic 2,502,900 2,498,100 Weighted Avg Shares-Diluted
2,547,300 2,526,700 Basic Earnings Per Share $0.18 $0.26 Diluted
Earnings Per Share $0.18 $0.25 Total Assets $267,131,300
$265,997,100 Gross Loans $220,593,500 $212,907,000 Deposits
$202,724,000 $207,311,700 Total Equity $28,063,600 $26,553,300
Average Assets $266,242,400 $258,816,200 Average Equity $28,269,700
$26,513,000 Net Interest Margin 3.75% 3.46% Return on Average
Assets 1.06% 0.93% Return on Average Equity 9.96% 9.13% Efficiency
Ratio 67.64% 68.48% DATASOURCE: Shore Financial Corporation
CONTACT: Lynn M. Badger of Shore Financial Corporation,
+1-757-787-1335, Web site: http://www.shorebank.com/
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