Somerset Hills Bancorp Reports 1st Quarter Earnings; Pre-Tax
Results Up 41%-After Tax Up 18%; Declares 5% Stock Dividend and
$0.02 Cash Dividend BERNARDSVILLE, N.J., April 27
/PRNewswire-FirstCall/ -- Somerset Hills Bancorp (NASDAQ:SOMH)
announced that for the quarter ending March 31, 2005, the Company
recorded net income of $262,000, an 18% increase from first quarter
2004 net income of $222,000. The increase in net income was the
result of an approximate $446,000 increase in net interest income,
to $1.764 million, and an approximate $20,000 increase in
non-interest income, to $581,000. This was partially offset by an
increase of approximately $376,000 in non-interest expense to $2.0
million. These results also reflect costs associated with opening
our new Summit office and a tax provision of $50,000 which reduced
net income from $312,000, or a 41% increase, to $262,000, and the
corresponding above-stated 18% increase. Basic earnings per share
for the 1st quarter of 2005 were $0.08, as compared to $0.07, in
the first quarter 2004. Diluted earnings per share for the 1st
quarter 2005 were $0.07, as compared to $0.06, in the same prior
year period. Total assets grew to $193.2 million at March 31, 2005,
compared to $170.4 million at March 31, 2004, an increase of $22.8
million. Total deposits were $168.3 million at March 31, 2005,
compared to $146.8 million at March 31, 2004, an increase of $21.5
million. Total loans were $130.0 million at March 31, 2005,
compared to $106.9 million at March 31, 2004, an increase of $ 23.1
million, or 21.6%. According to Stewart E. McClure, Jr., President
and Chief Executive Officer, " We are extremely pleased with the
continued progress of the growth in income, core customer
acquisition, and our franchise. Despite a tax provision and the
opening of our new Summit office last October, we had solid growth
in net income in addition to strong growth in pre-tax income. We
are excited about our two planned new offices in Madison and
Stirling and continue to work on other new branch possibilities.
Our growth in numbers of core customers and accounts indicates that
our products, services and unparalleled personal attention to
customer service are needed and welcomed in our marketplace." Mr.
McClure continued, "The Board of Directors of Somerset Hills
Bancorp has declared a 5% stock dividend and also has established a
quarterly $0.02 cash dividend program. Both dividends will be
payable on June 30, 2005 to all shareholders of record as of May
17, 2005. This announcement was made at our Company's Annual
Meeting of Shareholders this morning. This is the fourth successive
year in which a 5% stock dividend has been issued since the holding
company was formed in 2001, and our first cash dividend in the
Company's history." Somerset Hills Bancorp is a bank holding
company formed in January 2001 to own all of the common stock of
Somerset Hills Bank, a full service commercial bank with offices in
Bernardsville, Mendham, Morristown, and Summit, New Jersey.
Somerset Hills Bank focuses its lending activities on small to
medium sized businesses, high net worth individuals, professional
practices, and consumer and retail customers. The Bank operates a
licensed mortgage company subsidiary, Sullivan Financial Services,
Inc. and also operates Somerset Hills Wealth Management Services,
LLC., a wholly owned subsidiary licensed to provide financial
services including financial planning, insurance (life, health,
property and casualty), mutual funds and annuities for individuals
and commercial accounts, and Somerset Hills Title Group, LLC,
which, with its partner, Property Title Group, provides title
services in connection with the closing of real estate
transactions. The common stock of the Company is traded on NASDAQ
under the symbol SOMH and the Company's warrants to purchase common
stock are traded on NASDAQ under the symbol SOMHW. SOMERSET HILLS
BANCORP Consolidated Statements of Operations (Dollars in Thousands
Except Per Share Data) Three months ended Three months ended March
31, 2005 March 31, 2004 (Unaudited) (Unaudited) Interest Income
Loans, including fees $2,096 $1,561 Investment securities 194 251
Federal funds sold 47 21 Interest bearing deposits with other banks
5 1 Total interest income 2,342 1,834 Interest Expense Deposits 566
504 Federal Home Loan Bank Advances 12 12 Total interest expense
578 516 Net Interest Income 1,764 1,318 Provision for Loan Losses -
- Net Interest Income After Provision for Loan Losses 1,764 1,318
Non-Interest Income Service fees on deposit accounts 69 67 Gains on
sales of mortgage loans, net 420 409 Gains on sale of securities -
- Other Income 92 85 Total Non-Interest Income 581 561 Non-Interest
Expenses Salaries and employee benefits 1,002 866 Occupancy expense
363 294 Advertising and business promotion 121 94 Stationery and
supplies 57 45 Data processing 83 67 Other operating expense 407
291 Total Non-Interest Expenses 2,033 1,657 Income before provision
for taxes 312 222 Provision For Income Taxes 50 - Net Income $262
$222 Per share data* Net income -basic $0.08 $0.07 Net income
-diluted $0.07 $0.06 * Restated to reflect 5% stock dividends in
2005 and 2004 SOMERSET HILLS BANCORP Consolidated Balance Sheets
(Dollars in Thousands) March 31, 2005 December 31, 2004 (Unaudited)
ASSETS Cash and due from banks $6,297 $5,085 Federal funds sold
9,500 - Total cash and cash equivalents 15,797 5,085 Loans held for
sale 11,835 10,328 Investment securities held to
maturity(Approximate market value of $4,757 in 2005 and $5,862 in
2004) 4,838 5,847 Investment securities available for sale 18,534
17,484 Loans receivable 131,771 132,871 Less allowance for loan
losses (1,628) (1,634) Deferred fees (148) (198) Net loans
receivable 129,995 131,039 Premises and equipment,net 4,168 4,231
Goodwill, net 1,191 1,191 Bank owned life insurance 5,389 5,341
Accrued interest receivable 710 652 Other assets 739 678 TOTAL
ASSETS $193,196 $181,876 LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES Deposits Non-interest bearing deposits- demand $34,732
$37,061 Interest bearing deposits-NOW, money market and savings
109,131 94,066 Certificates of deposit, under $100,000 17,013
16,819 Certificates of deposit, $100,000 and over 7,390 6,929 Total
deposits 168,266 154,875 Federal Home Loan advances 1,000 3,200
Accrued interest payable 102 88 Other liabilities 681 665 Total
liabilities 170,049 158,828 STOCKHOLDERS' EQUITY Preferred
stock-1,000,000 shares authorized; none issued - Common stock-
authorized, 9,000,000 shares of no par value; issued and
outstanding, *3,205,509 in 2005 and *3,201,920 in 2004 23,967
23,940 Accumulated deficit (565) (827) Accumulated other
comprehensive loss (255) (65) Total stockholders' equity 23,147
23,048 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $193,196 $181,876
* Restated to reflect 5% stock dividends in 2005 and 2004
DATASOURCE: Somerset Hills Bancorp CONTACT: Stewart E. McClure,
Jr., President and Chief Executive Officer of Somerset Hills
Bancorp, +1-908-630-5000 Web site:
http://www.bankofsomersethills.com/
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