Declares Cash Dividend Of $.02 Per Share BERNARDSVILLE, N.J., Oct.
25 /PRNewswire-FirstCall/ -- Somerset Hills Bancorp (NASDAQ:SOMH)
announced that for the quarter ending September 30, 2005, the
Company recorded pre-tax income of $730,000, a 60.8% increase from
third quarter 2004 pre-tax income of $454,000. The Company's net
income after- tax was $457,000 in the third quarter of 2005, an
11.5% increase from third quarter 2004 net income of $410,000.
Basic and diluted earnings per share for the 3rd quarter of 2005
were $0.14, and $0.12, respectively, as compared to $0.13 and
$0.11, for the third quarter 2004, respectively. For the nine month
period, the Company earned income before tax of $1,590,000, a 56.5%
increase over income before tax of $1,016,000 in the same nine
month period in 2004. Net income after tax for the nine month
period was $1,063,000, a 12.5% increase from net income of $945,000
for the first nine months of 2004. Basic and diluted earnings per
share for the nine months ended September 30, 2005 were $0.33 and
$0.28, respectively, compared to basic and diluted earnings per
share of $0.30 and $0.26, respectively for the same prior year
period. The Company's 2004 results benefited from the application
of net operating loss carryforwards, which were exhausted in 2004.
At September 30, 2005, assets totaled $233.4 million, an increase
of $46.0 million, or 24.5% over September 30, 2004 assets of $187.4
million. Somerset Hills Bank's net loan portfolio increased to
$155.8 million at September 30, 2005, compared to $122.2 million at
the end of the prior year third quarter, an increase of $33.6
million, or 27.5%. Total deposits increased to $206.7 million at
September 30, 2005, compared to $162.9 million at September 30,
2004, an increase of $43.8 million, or 26.9%. According to Stewart
E. McClure, Jr., President and Chief Executive Officer, "We are
very pleased to report record earnings, particularly in such a
competitive market. Our first class products and services allowed
us to report strong growth in both loans and deposits. Core
deposits have now reached 89% of total deposits, providing further
evidence of the market's desire for personal touch relationship
based banking. Our success in growing core deposits is also evident
in our net interest margin which is 4.25% for the nine months
ending September 30, 2005 vs. 3.66% for the same period in 2004."
Somerset Hills Bancorp also declared a cash dividend of $.02 per
share payable November 18, 2005 to shareholders of record as of
November 4, 2005. 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. September
December September 30, 2005 31, 2004 30, 2004 (unaudited)
(unaudited) ASSETS Cash and due from banks $10,312 $5,085 $5,988
Federal funds sold 6,000 - 11,700 Total cash and cash equivalents
16,312 5,085 17,688 Loans held for sale 11,630 10,328 7,340
Investment securities held to maturity (Approximate market value of
$7,618 in September 2005, $5,862 in December 2004 and $7,413 in
September 2004) 7,582 5,847 7,388 Investment securities available -
for-sale 29,386 17,484 20,946 Loans receivable 157,827 132,871
123,993 Less allowance for loan losses (1,886) (1,634) (1,556)
Deferred fees (172) (198) (197) Net loans receivable 155,769
131,039 122,240 Premises and equipment, net 4,154 4,231 4,201
Goodwill, net 1,191 1,191 1,191 Bank owned life insurance 5,484
5,341 5,292 Accrued interest receivable 1,031 652 696 Other assets
844 678 403 Total assets $233,383 $181,876 $187,385 LIABILITIES AND
STOCKHOLDERS' EQUITY LIABILITIES Deposits: Non-interest bearing
deposits-demand $41,946 $37,061 $31,146 Interest bearing
deposits-NOW, money market and savings 142,024 94,066 108,359
Certificates of deposit, under $100,000 15,497 16,819 16,588
Certificates of deposit, $100,000 and over 7,211 6,929 6,807 Total
deposits 206,678 154,875 162,900 Federal Home Loan Bank advances
1,000 3,200 1,000 Accrued interest payable 173 88 85 Other
liabilities 1,080 665 698 Total liabilities 208,931 158,828 164,683
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, 3,255,925 shares at September
30, 2005, 3,201,920 at December 31, 2004 and 3,201,920 at September
2004 24,321 23,940 23,940 Retained earnings (Accumulated deficit)
236 (827) (1,241) Accumulated other comprehensive (loss) income
(105) (65) 3 Total stockholders' equity 24,452 23,048 22,702 Total
liabilities and stockholders' equity $233,383 $181,876 $187,385
*Restated to reflect 5% Stock Dividend SOMERSET HILLS BANCORP
Statement of Operations (Dollars In Thousands, Except Per Share
Data) Three Three Nine Nine months months months months ended ended
ended ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2005 2004 2005
2004 (unaudited) (unaudited) (unaudited) (unaudited) Interest
Income: Loans, including fees $2,663 $1,872 $7,108 $5,101
Investment securities 356 255 823 746 Federal funds sold 72 18 171
49 Interest bearing deposits with other banks 14 2 28 5 Total
interest income 3,105 2,147 8,130 5,901 Interest Expense: Deposits
877 480 2,127 1,449 Federal funds purchased - - - 2 Federal Home
Loan Bank advances 20 18 52 43 Total interest expense 897 498 2,179
1,494 Net interest income 2,208 1,649 5,951 4,407 Provision for
loan losses 192 50 249 150 Net interest income after provision for
loan losses 2,016 1,599 5,702 4,257 Non-Interest Income: Service
fees on deposit accounts 67 76 203 214 Gains on sales of mortgage
loans, net 677 578 1,621 1,708 Loss on sale of investment
securities (2) - (2) - Other income 107 81 307 255 Total
Non-Interest Income 849 735 2,129 2,177 Non-Interest Expense
Salaries and employee benefits 1,099 964 3,103 2,769 Occupancy
expense 347 324 1,061 909 Advertising & business promotion 117
112 397 339 Stationery and supplies 53 45 180 145 Data processing
99 78 280 214 Other operating expense 420 357 1,220 1,042 Total
Non-Interest Expense 2,135 1,880 6,241 5,418 Income before
provision for taxes 730 454 1,590 1,016 Provision for Income Taxes
273 44 527 71 Net income $457 $410 $1,063 $945 *Per share data Net
income basic $0.14 $0.13 $0.33 $0.30 Net income diluted $0.12 $0.11
$0.28 $0.26 *Restated to reflect 5% Stock Dividend 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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