Somerset Hills Bancorp Reports 2010 Second Quarter And Six-Month Earnings
BERNARDSVILLE, N.J., July 22, 2010 (GLOBE NEWSWIRE) -- Somerset Hills Bancorp (Nasdaq:SOMH) (the "Company"), parent company of Somerset Hills Bank (the "Bank"), reported net income available to common stockholders of $601,000, or $0.11 per diluted share, for the quarter ended June 30, 2010 versus $74,000, or $0.01 per diluted share, for the second quarter of 2009 and $410,000, or $0.07 per diluted share, for the first quarter of 2010. For the first six months of 2010, net income available to common stockholders was $1.0 million, or $0.18 per diluted share, versus $600,000, or $0.11 per diluted share, for the first six months of 2009.
Prior year net income available to common stockholders was negatively impacted by $257,000 for the second quarter of 2009 and by $350,000 for the first six months of 2009 due to accretion, dividends, and repurchase premium related to $7.4 million of preferred stock issued in January 2009 to the U.S. Treasury under the Capital Purchase Program. During the second quarter of 2009, the Company repurchased all shares of preferred stock and warrants issued to the Treasury, thus eliminating any dilutive effect in prospective periods. Net income (which excludes the aforementioned items) for the second quarter 2010 increased by 81.6% and 46.6% from the second quarter of 2009 and first quarter of 2010, respectively.
Stewart E. McClure, Jr., President and CEO, stated, "We again are very pleased with quarterly results and progress, which reflect continued sound asset quality metrics, strong capital and improved profitability ratios. Our nonperforming assets at quarter-end remain very low at just 0.11% of total assets, while our loans past due 30 to 89 days, measured as a percent of total loans, remained constant at only 0.09%. There were no new nonaccrual loans and no charge-offs during the quarter, and our allowance grew to 1.54% of total loans and 876% of nonaccrual loans." Mr. McClure continued, "Our profitability is improving as well. Return on assets for the quarter increased to 0.79%, reflecting a sequential widening of our net interest margin, which is now in excess of 4%, and a decline in operating expenses. Our liquidity remains high by historical standards and with a strong tangible common equity ratio in excess of 12%, we stand well-positioned to benefit from increased loan demand as the economy recovers. Our balance sheet continues to be asset-sensitive, that is, we currently expect net interest income to increase should interest rates rise."
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