Two River Bancorp (TRCB) 8-K Reports Second Quarter Operating Results

Exhibit 99

NEWS RELEASE

Media Information Contact:

Barry B. Davall, President & CEO

Community Partners Bancorp

(732) 706-9009

For Immediate Release

Community Partners Bancorp

Reports Second Quarter Operating Results

and Announces 3% Stock Dividend

Middletown, New Jersey – July 21, 2006

Community Partners Bancorp (NASDAQ: CPBC) reported consolidated earnings and asset growth for the second quarter and six months ended June 30, 2006. Additionally, on July 18, 2006, Community Partners’ Board of Directors approved a 3% stock dividend payable September 1, 2006 to shareholders of record as of August 18, 2006.

Community Partners Bancorp is the holding company for Two River Community Bank, which is headquartered in Middletown, New Jersey, and The Town Bank, which is headquartered in Westfield, New Jersey. Community Partners acquired the banks on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River as the acquiring entity for accounting purposes. Community Partners was formed in connection with that transaction and had no business operations prior to April 1, 2006.

Reported earnings and balance sheet figures of Community Partners prior to April 1, 2006, include those of Two River Community Bank and do not include those of The Town Bank. Current period performance, other than per share amounts and ratio analysis, is not generally comparable to reported results for corresponding prior year and prior quarter periods, as a significant portion of the increases in reported earnings and balance sheet figures are due to the inclusion of Town Bank in the current but not the prior periods.

Community Partners reported net income of $1,086,000 for the quarter ended June 30, 2006, or $0.17 per share for basic and $0.16 per share for diluted, compared to net income of $493,000 for the second quarter of 2005, or $0.12, for both basic and diluted earnings per share. Net income for the quarter ended June 30, 2006 increased by $593,000, or 120.3%, over the same prior year quarter. Diluted earnings per share for the quarter ended June 30, 2006 increased by $0.04 per share, or 33.3%, compared to the same prior year quarter. Weighted average shares outstanding and earnings per share were retroactively adjusted to reflect the stock dividend.

For the six months ended June 30, 2006, net income increased to $1,569,000 compared to $923,000 for the six months ended June 30, 2005. This represents an increase of $646,000, or 70.0%, in net income. Basic and diluted earnings per share for the six months ended June 30, 2006 were $0.30 and $0.29, respectively, compared to basic and diluted earnings per share of $0.23 and $0.22, respectively, for the same prior year period. Per share results of operations were significantly higher during the 2006 periods primarily as a result of the accretive effect resulting from the acquisition of Town Bank and also as a result of the general growth of the company.

At June 30, 2006, assets totaled $511.1 million, an increase of $242.8 million, or 90.5% over December 31, 2005 assets of $268.3 million. The company’s loan portfolio, net of allowances for loan losses, increased to $384.4 million at June 30, 2006, compared to $213.9 million at December 31, 2005, an increase of $170.5 million, or 79.7%. Total deposits increased to $432.7 million at June 30, 2006, compared to $236.4 million at December 31, 2005, an increase of $196.3 million, or 83.0%. The significant balance sheet growth recorded during the second quarter of 2006 resulted from the acquisition of Town Bank as of April 1, 2006 and the general growth of the company for the period ended June 30, 2006.

Barry B. Davall, President and CEO of Community Partners, stated “We are well down the road to realizing our strategic objectives for 2006 and we are very pleased as to how well our strategic alliance with Town Bank is proceeding.” Community Partners operates nine branch offices under the banner of Two River Community Bank and two branch offices under the banner of The Town Bank.

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The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may,” “will,” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, our ability to achieve sufficient operational integration of the banks, changes in the direction of the economy in New Jersey, the direction of interest rates, effective income tax rates, loan prepayment assumptions, continued levels of loan quality and origination volume, continued relationships with major customers including sources for loans, as well as the effects of general economic conditions and legal and regulatory barriers and structure. Community Partners Bancorp assumes no obligation for updating any such forward-looking statements at any time.

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COMMUNITY PARTNERS BANCORP

CONSOLIDATED BALANCE SHEETS

June 30, 2006 (Unaudited) and December 31, 2005

(In thousands, except share data)

		(Unaudited) June 30, 2006		December 31, 2005
ASSETS
Cash and due from banks	$	9,916	$	5,827
Federal funds sold		18,769		-
Total cash and cash equivalents		28,685		5,827
Securities available-for-sale		51,829		34,114
Securities held-to-maturity (fair value of $5,759 and $5,836 at June 30, 2006 and December 31, 2005, respectively)		5,838		5,841
Loans		388,661		216,327
Less allowance for loan losses		(4,289)		(2,380)
Net loans		384,372		213,947
Bank-owned life insurance		3,744		3,667
Premises and equipment, net		4,657		2,390
Accrued interest receivable		1,997		973
Other assets		3,459		1,517
Intangible assets, net of accumulated amortization of $96		26,506		-
Total assets	$	511,087	$	268,276
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Non-interest bearing	$	78,506	$	50,301
Interest bearing		354,198		186,148
Total deposits		432,704		236,449
Securities sold under agreements to repurchase		9,132		5,197
Short-term borrowings		1,092		1,514
Accrued interest payable		607		71
Other liabilities		2,066		1,278
Total liabilities		445,601		244,509
SHAREHOLDERS’ EQUITY
Common stock – authorized 25,000,000 shares of no par value, issued and outstanding 6,304,120 at June 30, 2006 and $2.00 par value, authorized 10,000,000 shares, issued and outstanding 3,936,595 at December 31, 2005		62,620		7,873
Preferred stock – authorized 6,500,000 shares of no par value, issued and outstanding, none at June 30, 2006 and none authorized at December 31, 2005		-		-
Additional paid-in capital		-		14,310
Retained earnings		3,721		2,153
Accumulated other comprehensive loss		(855)		(569)
Total shareholders’ equity		65,486		23,767
Total liabilities and shareholders’ equity	$	511,087	$	268,276

COMMUNITY PARTNERS BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

For the Three Months and Six Months Ended June 30, 2006 and 2005

		Three Months Ended June 30,				Six Months Ended June 30,
		2006		2005		2006			2005
		(In thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	7,222	$	3,137	$	11,082	$	6,053
Investment securities		625		413		1,068		842
Federal funds sold		225		24		251		31
Total Interest Income		8,072		3,574		12,401		6,926
INTEREST EXPENSE:
Deposits		3,181		862		4,627		1,568
Securities sold under agreements to repurchase		70		39		115		74
Short-term borrowings		18		50		40		95
Total Interest Expense		3,269		951		4,782		1,737
Net Interest Income		4,803		2,623		7,619		5,189
PROVISION FOR LOAN LOSSES		257		136		373		278
Net Interest Income after Provision for Loan Losses		4,546		2,487		7,246		4,911
NON-INTEREST INCOME:
Service fees on deposit accounts		146		74		294		186
Other loan customer service fees		142		95		234		187
Earnings from investment in life insurance		45		39		83		78
Other income		75		103		95		112
Total Non-Interest Income		408		311		706		563
NON-INTEREST EXPENSES:
Salaries and employee benefits		1,677		1,105		2,899		2,198
Occupancy and equipment		498		266		910		661
Amortization of identifiable intangibles		96		-		96		-
Other operating expenses		959		645		1,588		1,150
Total Non-Interest Expenses		3,230		2,016		5,493		4,009
Income before Income Taxes		1,724		782		2,459		1,465
INCOME TAX EXPENSE		638		289		890		542
NET INCOME	$	1,086	$	493	$	1,569	$	923
EARNINGS PER SHARE:
Basic	$	0.17	$	0.12	$	0.30	$	0.23
Diluted	$	0.16	$	0.12	$	0.29	$	0.22
Weighted average shares outstanding (in thousands):
Basic		6,485		4,055		5,277		4,049
Diluted		6,685		4,276		5,455		4,269