INVESTOR RELATIONS

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.

For the year ended December 31, 2011, Shore Community Bank reported net income of $762,384, or $0.44 per diluted share, compared to 674,914, or $0.39 per diluted share, for the year ended December 31, 2010, an increase in net income of 13.0 percent.

Total assets, at December 31, 2011, declined 2.3 percent and totaled $203.1 million, compared to $207.9 million at December 31, 2010. Total loans decreased 2.2 percent and finished the year at $115.3 million, as compared to $117.9 million at December 31, 2010. Total deposits decreased 3.4 percent to $164.7 million at December 31, 2011, as compared to $170.5 million at December 31, 2010.

Non-performing assets totaled $8.3 million at December 31, 2011, and included $6.5 million in non-performing loans and $1.9 million in other real estate owned (OREO), compared to a total $9.2 million at year end 2010 which included $8.1 million in non-performing loans and $1.1 million in OREO.

Commenting on the results, Robert T. English, President and Chief Executive Officer stated, “We are pleased to have achieved an increase of 13.0% in net income for our shareholders even in light of a slight decline in total assets and loans in 2011. Loan demand remained weak throughout the year as a lackluster economy kept prudent and creditworthy borrowers on the sidelines.” Mr. English further stated, “In 2011, we continued our multiyear focus on asset quality and worked diligently to reduce the overall level of non-performing assets. We remain cautiously optimistic relative to the asset quality goals we have established for 2012.”

The provision for loan losses totaled $100 thousand for the three months ended December 31, 2011, compared to $175 thousand for the same period in 2010. For the twelve months ended December 31, 2011, the provision for loan losses totaled $575 thousand compared to $1.2 million in the twelve month period ended December 31, 2010. Net loan charge-offs totaled $183 thousand in the fourth quarter of 2011, compared to a net loan loss recovery of $12 thousand in the same period last year. Net loan charge-offs for the twelve months ended December 31, 2011, totaled $1.1 million compared to $740 thousand in the twelve months ended December 31, 2010.

The allowance for loan losses as a percentage of period end loans was 1.73 percent at December 31, 2011 compared to 2.12 percent at December 31, 2010.

The Bank’s capital ratios remain strong and are in excess of what is considered “well capitalized” by bank regulatory standards. At December 31, 2011, the Tier 1 leverage and Tier 1 risk based capital ratio were 9.5 percent and 16.3 percent, respectively. The total risk-based capital ratio was 17.5 percent.

Book value per share at December 31, 2011 was $12.11, compared to $11.45 at December 31, 2010 based on 1.7 million shares outstanding in each period.

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, New Jersey. The Bank was founded in 1997 by a group of local business leaders with the objective of returning 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.

For the nine months ended September 30, 2011, the Bank reported net income of $527,699, or $0.31 per diluted share, as compared to a net income of $503,178, or $0.29 per diluted share for the nine months ended September 30, 2010, an increase of $24,521, or 4.87 percent in net income.

Total assets grew to $213.8 million at September 30, 2011 from $207.9 million at December 31, 2010. Total loans declined to $116.0 million at September 30, 2011, compared to $117.9 million at December 31, 2010 and total deposits were $175.4 million at September 30, 2011 compared to $170.5 million at December 31, 2010.

The provision for loan losses totaled $100 thousand for the three months ended September 30, 2011, compared to $225 thousand for the same period in 2010. For the nine months ended September 30, 2011, the provision for loan losses totaled $475 thousand compared to $1.0 million in the nine month period ended September 30, 2010. Net loan charge-offs totaled $412 thousand in the third quarter as compared to $138 thousand in the same period last year. Net loan charge-offs for the nine months ended September 30, 2011, totaled $890 thousand compared to $752 thousand in the nine months ended September 30, 2010.

The allowance for loan losses as a percentage of period end loans was 1.79 percent at September 30, 2011, compared to 2.12 percent at December 31, 2010.

Non-performing assets, which includes non-performing loans and other real estate owned, were $9.5 million at September 30, 2011 compared to $9.2 million at December 31, 2010.

Commenting on the results, Robert T. English, President and Chief Executive Officer stated, “In an operating environment that poses enormous challenges, we are pleased to report that 2011 earnings on a year-to-date basis have increased 4.87 percent over 2010. Extremely low interest rates have not triggered any noticeable increase in loan demand as other factors such as high unemployment, economic uncertainty and a continued decline in commercial and residential property values has sidelined many prudent business owners and operators.” Mr. English further stated, “While it will take an extended period of time for the economy to resolve itself, we will continue to manage our balance sheet in a manner that will preserve and protect our capital levels. In doing so, we will be positioned to participate in the eventual improvement in business conditions.”

At September 30, 2011, the Bank remains well capitalized with a Tier 1 leverage ratio of 9.29 percent, a Tier 1 risk based capital ratio of 16.17 percent and a total risk based capital ratio of 17.43 percent.

Book value per share at September 30, 2011 was $11.97, compared to $11.45 at December 31, 2010 based on 1.7 million shares outstanding in each period.

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, New Jersey. The Bank was founded in 1997 by a group of local business leaders with the objective of returning 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.

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For the six months ended June 30, 2011, the Bank reported net income of $321,506 or $0.19 per basic and diluted share, compared to net income of $290,317 or $0.17 per basic and diluted share for the six months ended June 30, 2010, an increase of 10.7 percent in net income.

Total assets at June 30, 2011 were $207.4 million compared to $207.9 million at December 31, 2010. Total loans at June 30, 2011 stood at $117.1 million compared to $117.9 million at December 31, 2010. Total deposits decreased $900 thousand to $169.6 million at June 30, 2011 compared to $170.5 million at December 31, 2010.

Total non-performing loans totaled $7.0 million at June 30, 2011, a $1.2 million decrease from $8.2 million at December 31, 2010. Non-performing assets, which includes non-performing loans and other real estate owned, totaled $9.0 million at June 30, 2011, compared to $9.2 million at December 31, 2010. Total non-performing loans at June 30, 2011, as a percentage of total loans were 5.99 percent down from 6.91 percent at December 31, 2010. Total non-performing assets at June 30, 2011, as a percentage of total assets were 4.36 percent, down from 4.44 percent at December 31, 2010.

The provision for loan losses totaled $150 thousand for the three months ended June 30, 2011, compared to $375 thousand for the same period in 2010 and $225 thousand in the first quarter of 2011. Net loan charge-offs totaled $251 thousand in the second quarter compared to $214 thousand in the same period in 2010 and $227 thousand in the first quarter of 2011.

The allowance for loan losses as a percentage of period end loans was 2.04 percent at June 30, 2011, compared to 2.12 percent at December 31, 2010 and 1.77 percent at June 30, 2010. The Bank remains well capitalized with Tier 1 leverage and Tier 1 risk based capital ratios of 9.3 percent and 15.4 percent, respectively. Total risk-based capital ratio at June 30, 2011 was 16.7 percent.
Robert T. English, President & Chief Executive Officer stated, “We are pleased to report 2011 year-to-date earnings have increased 11 percent over 2010 in what remains a very difficult operating environment. Loan demand, from creditworthy borrowers, remains weak and what has been a sluggish but slowly improving economy seems to have stalled in the second quarter.” Mr. English further stated, “In the second quarter one significant non-performing loan was moved to OREO and in the remaining months of this year we are anticipating three or four additional non-performing loans to move to OREO as well. Our goal is to market these properties and dispose of them quickly but in a prudent manner.”

Book value per share at June 30, 2011 was $11.82, compared to $11.45 at December 31, 2010 based on 1.7 million shares outstanding in each period.

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, New Jersey. The Bank was founded in 1997 by a group of local business leaders with the objective of returning 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.

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“We are pleased to see earnings continue to grow and reflect the improvements we have worked hard to achieve,” commented Robert T. English, President and Chief Executive Officer. English added, “Our primary objectives for 2011 include continued attention to improving asset quality, loan portfolio growth and a continued focus on expense control.”

The provision for loan losses totaled $225,000 for the three months ended March 31, 2011, as compared to $405,000 for the same time period in 2010. Net charge-offs in the first quarter 2011 totaled $227,217, compared to net charge-offs of $400,023 recorded in the first quarter of 2010.

Total assets at March 31, 2011 totaled $206.6 million, a decline of $1.3 million compared to $207.9 million at December 31, 2010. Total loans at March 31, 2011 stood at $115.6 million compared to $117.9 million at December 31, 2010, reflecting a decrease of 1.9 percent. Total deposits declined $1.4 million or 0.8 percent to $169.2 million at March 31, 2011 compared to $170.6 million at December 31, 2010.

Non-performing assets which includes other real estate owned stood at $9.5 million at March 31, 2011 compared to $9.2 million at December 31, 2010. The allowance for loan losses as a percentage of period end loans was 2.16 percent at March 31, 2011 compared to 2.12 percent at December 31, 2010.

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, New Jersey. The Bank was founded in 1997 by a group of local business leaders with the objective of returning 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.

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