Somerset Hills Bancorp Reports Increased 2010 Third Quarter And Nine-Month Earnings; Quarterly Net Income Up 49.1% Versus Last Year And Up 14.6% On A Sequential Basis; Increases Cash Dividend To $0.06 Per Share
BERNARDSVILLE, N.J., Oct. 21, 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 $689,000, or $0.13 per diluted share, for the quarter ended September 30, 2010 versus $462,000, or $0.08 per diluted share, for the third quarter of 2009 and $601,000, or $0.11 per diluted share, for the second quarter of 2010. For the first nine months of 2010, net income available to common stockholders was $1.7 million, or $0.31 per diluted share, versus $1.1 million, or $0.19 per diluted share, for the first nine months of 2009.
Net income available to common stockholders for the nine months ended September 30, 2009 was negatively impacted by $350,000 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 Treasury, thus eliminating any dilutive effect in prospective periods.
Stewart E. McClure, Jr., President and CEO, stated, "Despite a difficult general economy, which continues to stress much of our industry, the Bank's net income increased for the fifth consecutive quarter and return on assets reached 0.86%, reflecting strong performance in all areas of the Bank. Our asset quality metrics remain among the best in the Nation. At quarter-end, the Bank's nonperforming asset ratio was only 0.17% and loans past due 30 to 89 days were only 0.08% of total loans." Mr. McClure continued, "Our Board of Directors made a decision to increase the quarterly cash dividend by one cent to $0.06 per share, taking into consideration the Company's core earnings growth, strong capital, and sound credit quality. The dividend yield on our stock, based on the price as of the close of business yesterday, is 3.0%. Looking ahead, we have started to see modest growth potential for our loan portfolio and we expect this to continue into the fourth quarter. Meanwhile, our deposit growth remains very strong. Average core deposits increased by an annualized 20.8% from the second quarter of 2010 and now represent 84.4% of total deposits."
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