LUDINGTON, Mich., Jan. 28 /PRNewswire-FirstCall/ -- West Shore Bank Corporation (Pink Sheets: WSSH) today announced 2008 full year net income of $2.31 million, or $1.67 per share, versus net income of $1.07 million, or $0.75 per share for 2007. Net interest income was $9.6 million in 2008, an increase of $857,000, or 9.8%, from 2007. The increase was due primarily to a higher net interest margin which increased from 3.24% in 2007 to 3.43% in 2008. Non-interest income was $1.96 million in 2008, an increase of $369,000, or 23.1%, from $1.59 million in 2007. The increase was due primarily to a higher gain on sale of securities of $361,000. Operating expenses were $7.86 million in 2008, up $807,000, or 11.4%, from $7.05 million in 2007. A new banking office in Manistee, Michigan was opened during the third quarter of 2008 which resulted in increases to compensation and benefits, occupancy and marketing expenses. The remaining increase in total operating expenses was primarily due to higher FDIC insurance expense, credit and collection expenses, Michigan Business Tax and other miscellaneous expenses. At December 31, 2008, non-performing assets totaled $4.37 million, or 1.35% of total assets. At December 31, 2007, non-performing assets were $3.52 million, or 1.20% of total assets. The Company operates through a single subsidiary bank, West Shore Bank, with eight banking offices spread over Mason, Manistee and Oceana counties. At December 31, 2008, the Company had total assets of $324 million. Key Financial Information: Year Ended 2008 2007 Net interest margin 3.43% 3.24% Efficiency ratio 66.45% 66.57% Return on average assets .73% .35% Return on average equity 8.76% 3.98% Net loan charge-offs as a percent of average loans .24% 1.02% Weighted average shares outstanding 1,381,900 1,425,900 December 31, 2008 2007 Book value per share $19.59 $18.62 Tier 1 Leverage 8.23% 8.71% Total risk-based capital 13.83% 13.73% Allowance as a percent of total loans 1.19% 1.11% Nonperforming loans as a percent of total loans 1.35% 1.02% DATASOURCE: West Shore Bank Corporation CONTACT: Kevin A. Twardy, EVP-CFO, West Shore Bank Corporation, +1-231-845-3534, Web site: http://www.westshorebank.com/

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