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

Exhibit 99

NEWS RELEASE

	Media Information Contact: Barry B. Davall, President & CEO Community Partners Bancorp (732) 706-9009
For Immediate Release	www.communitypartnersbancorp.com

Community Partners Bancorp

Reports Third Quarter Operating Results

Middletown, New Jersey – October 19, 2007

On October 19, 2007, Community Partners Bancorp (NASDAQ CM: CPBC) (the “Company”), the parent company of Two River Community Bank and The Town Bank, reported consolidated earnings and asset growth for the third quarter and nine months ended September 30, 2007.

Community Partners reported net income of $1,054,000 for the quarter ended September 30, 2007, or $0.16 per share for basic and $0.15 per share diluted, compared to net income of $1,074,000 for the third quarter of 2006, or $0.16 for both basic and diluted earnings per share.  Net income for the quarter ended September 30, 2007 decreased by approximately $20,000 or 1.9% over the same prior year quarter.  On a linked quarter basis, net income for the third quarter of 2007 increased by approximately $27,000 or 2.6% over the second quarter of 2007.  Barry B. Davall, President and CEO of Community Partners Bancorp, stated, “These are challenging times for community banking, and we are pleased to report that our earnings are trending upwards, supported by a 4.09% net interest margin.”  Mr. Davall also reported that the quality of the loan portfolio is very good, with no non-performing loans, and noted that the Company does not have any involvement with sub-prime mortgages.

For the nine months ended September 30, 2007, net income increased to $2,984,000 compared to $2,643,000 for the nine months ended September 30, 2006.  This represents an increase of approximately $341,000 or 12.9% in net income.  Basic and diluted earnings per share for the nine months ended September 30, 2007 were $0.44 and $0.43, respectively, compared to basic and diluted earnings per share of $0.45 and $0.44, respectively, for the same prior year period.  Results of operations were higher during the first nine months of 2007 compared to the same prior year period as a result of the growth of the Company and the accretive effects of the acquisition of The Town Bank.  Reported earnings of Community Partners Bancorp prior to April 1, 2006 include those of Two River Community Bank and do not include those of The Town Bank.

Weighted average shares outstanding and earnings per share were retroactively adjusted to reflect the 3% stock dividend which was paid August 31, 2007 to shareholders of record as of August 10, 2007.

At September 30, 2007, total assets totaled $527.7 million, an increase of $7.2 million, or 1.4%, over December 31, 2006 assets of $520.5 million.  The Company’s loan portfolio, net of allowances for loan losses, decreased to $404.1 million at September 30, 2007, compared to $412.3 million at December 31, 2006, a decrease of $8.2 million, or 2.0%.  Total deposits amounted to $439.3 million at September 30, 2007, compared to $441.9 million at December 31, 2006, a decrease of $2.6 million, or 0.6%.

In an effort to expand the organization’s franchise and to achieve future growth objectives, the Company anticipates that it will open three new branches during the fourth quarter of 2007, which will serve the very desirable markets of Cranford, Fanwood and Manasquan.

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.  Two River Community Bank currently operates ten branches throughout Monmouth County and The Town Bank currently operates two branches in Westfield.  Community Partners Bancorp acquired The Town Bank on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River Community Bank as the acquiring entity. Community Partners Bancorp was formed in connection with that transaction and had no business operations prior to April 1, 2006.

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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, changes in interest rates or in national or local economic conditions in areas in which our operations are concentrated, increased competition, rapid growth, reliance on management and other key personnel, failure to achieve sufficient operational integration between Two River Community Bank and The Town Bank, and other such risks.  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

September 30, 2007 (Unaudited) and December 31, 2006

(In thousands, except per share data)

	(Unaudited)
	September 30,			December 31,
	2007			2006
ASSETS
Cash and due from banks	$	8,466		$	9,036
Federal funds sold		7,388			6,141
Cash and cash equivalents		15,854			15,177
Securities available-for-sale		60,443			44,756
Securities held-to-maturity (fair value of $6,984 and $7,638 at September 30, 2007 and December 31, 2006, respectively)		7,058			7,632
Loans		408,684			416,904
Allowance for loan losses		(4,624	)		(4,567	)
Net loans		404,060			412,337
Bank-owned life insurance		3,914			3,821
Premises and equipment, net		4,746			5,248
Accrued interest receivable		2,338			2,345
Goodwill and other intangible assets, net of accumulated amortization           of $555 and $287 at September 30, 2007 and December 31, 2006,           respectively		26,385			26,543
Other assets		2,918			2,661
TOTAL ASSETS	$	527,716		$	520,520
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-interest bearing	$	73,242		$	72,119
Interest bearing		366,037			369,799
Total deposits		439,279			441,918
Securities sold under agreements to repurchase		13,895			7,802
Accrued interest payable		468			587
Other liabilities		2,610			1,894
Total liabilities		456,252			452,201
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 6,500,000 shares authorized; no shares            issued and outstanding		-			-
Common stock, no par value; 25,000,000 shares authorized; 6,722,784 and 6,511,582 shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively		66,552			64,728
Retained earnings		5,138			3,884
Accumulated other comprehensive loss		(226	)		(293	)
Total shareholders' equity		71,464			68,319
TOTAL LIABILITIES and SHAREHOLDERS’ EQUITY	$	527,716		$	520,520

COMMUNITY PARTNERS BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

For the Three Months and Nine Months Ended September 30, 2007 and 2006

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2007		2006		2007		2006
	(In thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	8,075	$	7,774	$	24,300	$	18,856
Investment securities		786		650		2,154		1,718
Federal funds sold		282		115		784		366
Total Interest Income		9,143		8,539		27,238		20,940
INTEREST EXPENSE:
Deposits		3,891		3,450		11,787		8,077
Securities sold under agreements to repurchase		149		93		389		208
Short-term borrowings		-		41		-		81
Total Interest Expense		4,040		3,584		12,176		8,366
Net Interest Income		5,103		4,955		15,062		12,574
PROVISION FOR LOAN LOSSES		-		164		57		537
Net Interest Income after Provision for Loan Losses		5,103		4,791		15,005		12,037
NON-INTEREST INCOME:
Service fees on deposit accounts		149		148		439		442
Other loan customer service fees		62		33		247		187
Earnings from investment in life insurance		31		42		93		125
Other income		135		159		436		334
Total Non-Interest Income		377		382		1,215		1,088
NON-INTEREST EXPENSES:
Salaries and employee benefits		1,981		1,744		5,906		4,643
Occupancy and equipment		663		594		1,968		1,535
Professional		163		95		522		302
Insurance		144		54		415		155
Advertising		104		114		313		303
Data processing		98		138		358		339
Outside services fees		109		115		328		332
Amortization of identifiable intangibles		86		95		268		191
Other operating		416		506		1,259		1,148
Total Non-Interest Expenses		3,764		3,455		11,337		8,948
Income before Income Taxes		1,716		1,718		4,883		4,177
INCOME TAX EXPENSE		662		644		1,899		1,534
Net Income	$	1,054	$	1,074	$	2,984	$	2,643
EARNINGS PER SHARE:
Basic	$	0.16	$	0.16	$	0.44	$	0.45
Diluted	$	0.15	$	0.16	$	0.43	$	0.44
Weighted average shares outstanding (in thousands):
Basic		6,723		6,704		6,715		5,863
Diluted		6,881		6,895		6,881		6,049