BERNARDSVILLE, N.J., April 30, 2008 (PRIME NEWSWIRE) -- Somerset Hills Bancorp (Nasdaq:SOMH) reported net income for the first quarter 2008. For the quarter ended March 31, 2008, net income was $444,000, or $0.08 per diluted share compared to $0.09 per diluted share during the first quarter 2007.
Somerset Hills Bancorp also declared a 5% stock dividend and a cash dividend of $0.05 per share (or a 25% increase) payable May 30, 2008 to shareholders of record as of May 16, 2008. This is the seventh consecutive year we have declared a 5% stock dividend and the fourth year we will pay an increased cash dividend.
At March 31, 2008, loans increased $13.0 million, or 6.9% to $201.3 million from $188.3 million when compared to March 31, 2007. At March 31, 2008, deposits decreased $15.9 million, or 6.2% to $239.2 million from $255.1 million when compared to March 31, 2007. During that same period, the net interest margin increased from 3.92% to 4.22% and core deposits represent 86.0 % of total deposits at March 31, 2008.
At March 31, 2008, total assets were $288.9 million, compared to $294.9 million at March 31, 2007.
Stewart E. McClure, Jr, President and Chief Executive Officer said, "As we look at the economic environment in early 2008, it is clear that the effects of the sub-prime and residential housing crisis continue. This in turn creates market conditions where loan demand is weak and competition for deposits is very strong. With this in mind, we are being cautious, temporarily deemphasizing growth and focusing on the quality of our assets and liabilities. Our numbers reflect the expense burden associated with our increased level of non-performing assets which we reported during fourth quarter 2007. We are working diligently to reduce that burden. Despite these challenges, we are pleased that our core deposits represent 86.0% of total deposits and our net interest margin has increased to 4.22%. We also remain focused on cross-selling and expense control. This has allowed us to limit non-interest expense growth to 2.3%, over first quarter last year, despite adding our sixth branch office during the last year.
"We look forward to operating in a better economic environment and believe we are positioning ourselves to improve net income at that time as a result of our efforts."
Somerset Hills Bancorp is a bank holding company for Somerset Hills Bank, a full service commercial bank with offices in Bernardsville, Long Valley, Madison, 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 Global Market under the symbol SOMH. You can visit our website at www.somersethillsbank.com.
SOMERSET HILLS BANCORP
Selected Consolidated Financial Data
(Unaudited)
($ in thousands except per share data) Three Months Ended
March 31
2008 2007
-------- --------
Income Statement Data:
Interest income $ 3,951 $ 4,380
Interest expense 1,289 1,836
-------- --------
Net interest income 2,662 2,544
Provision for loan losses 70 0
-------- --------
Net interest income after prov.
for loan losses 2,592 2,544
Non-interest income 465 598
Non-interest expense 2,437 2,383
-------- --------
Income before income taxes 620 759
Income tax expense 176 239
-------- --------
Net income $ 444 $ 520
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Balance Sheet Data:
Total assets $288,933 $294,895
Loans, net 201,276 188,309
Loans held for sale 3,048 5,959
Allowance for loan losses 3,126 2,170
Investment securities held to maturity 12,057 13,206
Investment securities held for sale 24,400 38,714
Deposits 239,203 255,142
Shareholders' equity 37,295 38,322
Performance Ratios:
Return on average assets 0.65% 0.74%
Return on average equity 4.82% 5.54%
Net interest margin 4.22% 3.92%
Efficiency ratio 77.9% 75.9%
Asset Quality:
Nonaccrual loans 2,759 236
Net charge-offs 144 0
Allowance for loan losses to total loans 1.53% 1.14%
Nonperforming loans to total loans 1.35% 0.12%
Per Share Data:
Earnings per share- Basic $ 0.09 $ 0.10
Earnings per share- Diluted $ 0.08 $ 0.09
Book value per share $ 7.17 $ 7.30
Tangible Book $ 7.17 $ 7.08
SOMERSET HILLS BANCORP
Consolidated Balance Sheets
(Dollars in Thousand)
March 31, December 31,
2008 2007
--------- ---------
ASSETS
Cash and due from banks $ 9,180 $ 12,069
Federal funds sold 21,500 5,800
--------- ---------
Total cash and cash equivalents 30,680 17,869
Loans held for sale 3,048 3,063
Investment securities held to maturity
(Approximate market value of $11,964 in
2008 and $13,531 in 2007) 12,057 13,646
Investment securities available for sale 24,400 27,954
Loans receivable 204,289 208,376
Less allowance for loan losses (3,126) (3,201)
Net Deferred costs 113 82
--------- ---------
Net loans receivable 201,276 205,257
Premises and equipment, net 6,226 6,343
Bank owned life insurance 8,198 8,111
Accrued interest receivable 1,206 1,435
Deferred tax asset 729 723
Other assets 1,113 1,069
--------- ---------
TOTAL ASSETS $ 288,933 $ 285,470
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Non-interest bearing deposits-demand $ 51,165 $ 53,783
Interest bearing deposits-NOW, money
market and savings 154,636 159,462
Certificates of deposit, under $100,000 18,749 19,170
Certificates of deposit, $100,000 and over 14,653 12,258
--------- ---------
Total deposits 239,203 244,673
--------- ---------
Federal Home Loan Bank Advances 11,000 3,000
Accrued interest payable 521 523
Taxes payable 123 --
Other liabilities 791 653
--------- ---------
Total liabilities 251,638 248,849
--------- ---------
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,
5,200,915* in 2008 and 5,176,586* in 2007 37,692 37,513
Accumulated deficit (651) (896)
Accumulated other comprehensive income 254 4
--------- ---------
Total stockholders' equity 37,295 36,621
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS`EQUITY $ 288,933 $ 285,470
========= =========
* Restated to reflect 5% stock dividends in 2008 and 2007
SOMERSET HILLS BANCORP
Consolidated Statements of Income
(Dollars in Thousand Except For Per Share Data)
Three months ended
March 31,
2008 2007
------ ------
(Unaudited)
Interest Income
Loans, including fees $3,437 $3,545
Investment securities 472 677
Federal funds sold 36 144
Interest bearing deposits with other banks 6 14
------ ------
Total interest income 3,951 4,380
Interest Expense
Deposits 1,199 1,834
Federal Home Loan Bank Advances 90 2
------ ------
Total interest expense 1,289 1,836
------ ------
Net Interest Income 2,662 2,544
Provision for Loan Losses 70 --
------ ------
Net Interest Income After Provision
for loan Losses 2,592 2,544
------ ------
Non-Interest Income
Service fees on deposit accounts 66 79
Gains on sales of mortgage loans, net 257 415
Other Income 142 104
------ ------
Total Non-Interest Income 465 598
------ ------
Non-Interest Expenses
Salaries and employee benefits 1,305 1,260
Occupancy expense 484 454
Advertising and business promotion 60 112
Stationery and supplies 43 66
Data processing 139 135
Other operating expense 406 356
------ ------
Total Non-Interest Expenses 2,437 2,383
------ ------
Income before provision for taxes 620 759
Provision For Income Taxes 176 239
------ ------
Net Income $ 444 $ 520
====== ======
Per share data*
Net income -basic $ 0.09 $ 0.10
====== ======
Net income -diluted $ 0.08 $ 0.09
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* Restated to reflect 5% stock dividends in 2008 and 2007