Somerset Hills Bancorp Reports 3rd Quarter Earnings and Announces
Opening of Fourth Branch BERNARDSVILLE, N.J., Oct. 25
/PRNewswire-FirstCall/ -- Somerset Hills Bancorp (NASDAQ:SOMH)
announced that for the quarter ending September 30, 2004, the
Company recorded net income of $410,000, a 10% decrease from third
quarter 2003 net income of $454,000. For the nine months ending
September 30, 2004, net income was $945,000, a 13% increase over
September 30, 2003 income of $836,000. These results reflect a
decrease in loan originations at our mortgage company as well as
costs associated with opening our new Summit office. Basic earnings
per share for the 3rd quarter and nine months of 2004 was $0.13 and
$0.31 respectively as compared to $0.15 and $0.28 in the same prior
year periods. Diluted earnings per share for the 3rd quarter and
nine months was $0.12 and $0.27 respectively as compared to $0.15
and $0.27 in the same prior year periods. Total assets grew to
$187.4 million at September 30, 2004, compared to $169.7 million at
December 31, 2003, an increase of $17.7 million. Total deposits
were $162.9 million at September 30, 2004, compared to $145.7
million at December 31, 2003, an increase of $17.2 million. Total
loans grew to $122.2 million at September 30, 2004, compared to
$107.4 million at December 31, 2003, an increase of $ 14.8 million.
According to Stewart E. McClure, Jr., President and Chief Executive
Officer, "We are very pleased with the continued growth and
development of our franchise and the resultant progress in our
financial results. Year-to-date we have shown a healthy increase in
earnings despite third quarter numbers that are slightly below
those we saw last September, which included an extraordinarily
large contribution from our mortgage operation based on record low
rates and refinancing volume. This year's third quarter figures
also include costs related to our newly opened branch in
Summit-which we welcome you to visit at our beautiful new site at
510 Morris Avenue." 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 Balance Sheets (in thousands, except for share data)
September 30, December 31, 2004 2003 (unaudited) (audited) ASSETS
Cash and due from banks $5,988 $7,567 Federal funds sold 11,700
17,200 Total cash and cash equivalents 17,688 24,767 Loans held for
sale 7,340 5,110 Investment securities held to maturity(Approximate
maket value of $7,413 in 2004 and $6,121 in 2003) 7,388 6,117
Investment securities available- for- sale 20,946 15,454 Loans
receivables 123,993 108,928 Less allowance for loan losses (1,556)
(1,417) Deferred fees (197) (137) Net loans receivable 122,240
107,374 Premises and equipment,net 4,201 3,786 Goodwill, Net 1,191
1,191 Bank owned life insurance 5,292 5,122 Accrued interest
receivable 696 488 Other assets 403 270 Total assets $187,385
$169,679 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits
Non-interest bearing deposits- demand $31,146 $28,995 Interest
bearing deposits-NOW, money market and savings 108,359 86,111
Certificates of deposit,under $100,000 16,588 21,554 Certificates
of deposit, $100,000 and over 6,807 8,991 Total deposits 162,900
145,651 Federal Home Loan Bank advances 1,000 1,000 Accrued
interest payable 85 83 Other liabilities 698 1,224 Total
liabilities 164,683 147,958 STOCKHOLDERS' EQUITY Preferred stock-
1,000,000 shares authorized, none issued - - Common
stock-authorized, 10,000,000 shares of no par value; issued and
outstanding, 3,049,448 shares at September 30, 2004 and 3,039,095
at December 31, 2003 23,940 23,853 Accumulated deficit (1,241)
(2,186) Accumulated other comprehensive income 3 54 Total
stockholders' equity 22,702 21,721 Total liabilities and
stockholders' equity $187,385 $169,679 SOMERSET HILLS BANCORP
Statements 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, 2004 2003 2004
2003 (unaudited) (unaudited) (unaudited) (unaudited) Interest
Income: Loans, including fees $1,872 $2,177 $5,101 $5,815
Investment securities 255 55 746 265 Federal funds sold 18 3 49 27
Interest bearing deposits with other banks 2 2 5 11 Total interest
income 2,147 2,237 5,901 6,118 Interest Expense: Deposits 480 613
1,449 1,886 Federal funds purchased - 19 2 30 Federal Home Loan
Bank advances 18 32 43 79 Total interest expense 498 664 1,494
1,995 Net interest income 1,649 1,573 4,407 4,123 Provision for
loan losses 50 114 150 326 Net interest income after provision for
loan losses 1,599 1,459 4,257 3,797 Non-Interest Income: Service
fees on deposit accounts 76 49 214 136 Gains on sales of mortgage
loans, net 578 1,094 1,708 3,181 Gain on sale of investment
securities - - - 6 Other income 81 102 255 151 Total Non-Interest
Income 735 1,245 2,177 3,474 Non-Interest Expense Salaries and
employee benefits 964 1,259 2,769 3,447 Occupancy expense 324 304
909 864 Advertising & business promotions 112 143 339 375
Stationery and supplies 45 72 145 217 Data processing 78 66 214 206
Other operating expense 357 358 1,042 1,194 Total Non-Interest
Expense 1,880 2,202 5,418 6,303 Income before provision for taxes
454 502 1,016 968 Provision for Income Taxes 44 48 71 132 Net
income $410 $454 $945 $836 (*)Per share data Net income basic $0.13
$0.15 $0.31 $0.28 Net income diluted $0.12 $0.15 $0.27 $0.27
(*)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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