Somerset Hills Bancorp Reports 2010 Full-Year And Fourth Quarter Earnings; Full-Year 2010 Net Income Up 32.5% Versus 2009; 4th Quarter 2010 Net Income Up 68.0% Versus 2009; 4th Quarter 2010 Net Income Up 17.6% Sequentially
BERNARDSVILLE, N.J., Jan. 27, 2011 (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 $2,510,000, or $0.46 per diluted share, for 2010 versus $1,544,000, or $0.28 per diluted share, for 2009. For the fourth quarter 2010, net income available to common stockholders was $810,000, or $0.15 per diluted share, versus $482,000, or $0.09 per diluted share, for the fourth quarter of 2009 and $689,000, or $0.13 per diluted share, for the third quarter of 2010.
Net income available to common stockholders for the full-year 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. Net income for the full-year 2010 increased by 32.5% from 2009; however, net income available to common stockholders, which takes into account the negative impact of the preferred stock on 2009 results, increased by 62.6%.
Stewart E. McClure, Jr., President and CEO stated, "2010 marked a banner year for Somerset Hills Bancorp. Net income for the full year was a record, and our current quarter results reflected continued improvement in all areas of the Bank. The Bank's return on assets reached 0.98% for the quarter, supported by both improved core banking earnings as well as strong results from our mortgage banking subsidiary, Sullivan Financial, which originates residential mortgage loans for sale on a pre-sold flow basis. Meanwhile, our asset quality remains solid with nonaccrual loans decreasing from last quarter. Today, we have only one nonaccrual loan representing just 0.12% of total loans and 99.6% of all of our loans are current. We continue to improve back-office efficiencies, doing more with less and driving this quarter's efficiency ratio down to 65% from 72% one year ago. On the economy in general, we see a continued challenging operating environment with sluggish economic growth and only tepid gains in employment. Nevertheless, our capital is strong, we are liquid, our asset/liability mix is positioned for rising rates and our commercial loan pipeline is growing, all of which point to an optimistic outlook as we head into 2011."
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