OCEAN CITY, N.J., July 26, 2016 /PRNewswire/ -- Ocean Shore
Holding Co. (NASDAQ: OSHC) today announced net income of
$1,776,000, or $0.28 per diluted share, for the quarter ended
June 30, 2016, as compared to
$1,739,000, or $0.29 per diluted share, for the second quarter
of 2015. Net income for the six months ended June 30, 2016 was $3,532,000, or $0.57 per diluted share, as compared to
$3,452,000, or $0.57 per diluted share, for the same period in
2015.
Ocean Shore Holding Co. is the holding company for Ocean City
Home Bank, a federal savings bank headquartered in Ocean City, New Jersey. Ocean City Home
Bank operates a total of eleven full-service banking offices in
eastern New Jersey.
"We are pleased to report continued strong financial
performance," said Steven E. Brady, President and
CEO. "We look forward to our recently announced
affiliation with OceanFirst Financial and the strength of our
combined franchise."
Balance Sheet Review
Total assets decreased $544,000,
or 0.1%, to $1,042.8 million at
June 30, 2016 from $1,043.4 million at December 31, 2015. Loans receivable, net,
increased $7.3 million, or 0.9%, to
$791.2 million at June 30, 2016 from $783.9
million at December 31,
2015. Investments and mortgage-backed securities decreased
$5.4 million, or 4.7%, to
$107.6 million during the first six
months of 2016. Cash and cash equivalents decreased
$1.5 million, or 1.7%, to
$86.2 million at June 30, 2016 from $87.7
million at December 31,
2015. Loan originations and other advances totaling
$80.7 million were offset by payoffs
and payments received of $73.4
million, resulting in a $7.3
million increase in the portfolio. The decrease in
investments and mortgage-backed securities resulted from normal
repayments, calls and maturities offset by purchases.
Deposits decreased $5.3 million,
or 0.7%, to $806.7 million at
June 30, 2016 from $812.0 million at December
31, 2015. Checking accounts increased $11.4 million, savings accounts increased
$5.8 million, certificates of deposit
increased $8.2 million and municipal
deposits decreased $30.7 million at
June 30, 2016 compared to
December 31, 2015. Municipal
deposits declined as a result of seasonal withdrawals. Total
borrowings were unchanged at $105.0
million.
Asset Quality
The provision for loan losses totaled $161,000 for the second quarter of 2016 compared
to $178,000 for the second quarter of
2015 and $152,000 for the first
quarter of 2016. The allowance for loan losses totaled
$3.2 million, or 0.41% of total
loans, at June 30, 2016 compared to
$3.2 million, or 0.41% of total
loans, at December 31, 2015.
The Company experienced $258,000 in
net charge-off activity for the first six months of 2016 as
compared to $699,000 in net
charge-off activity for the first six months of 2015.
Non-performing assets totaled $5.8
million, or 0.52% of total assets, at June 30, 2016, compared to $7.5 million, or 0.72% of total assets, at
December 31, 2015.
Non-performing assets consisted of sixteen real estate residential
mortgages totaling $2.6 million,
three real estate commercial mortgage totaling $705,000, one real estate construction mortgage
totaling $143,000, one commercial
loan totaling $41,000, five consumer
equity loans totaling $237,000, three
TDR non-accrual loans totaling $390,000 and nine real estate owned properties
totaling $1.7 million.
Income Statement Analysis
Net interest income increased $312,000, or 4.4%, to $7.4
million for the second quarter of 2016 compared to
$7.1 million in the second quarter of
2015. Net interest margin increased 12 basis points in the
quarter ended June 30, 2016 to 3.28%
versus 3.16% for the quarter ended June
30, 2015. On a linked-quarter basis, net interest
margin increased 4 basis points from 3.24% for the quarter ended
March 31, 2016. The increase in
net interest income in the second quarter of 2016 compared to the
second quarter of 2015 resulted from an increase in average
interest-earning assets of $5.5
million and a decrease in the average cost of
interest-bearing liabilities of 14 basis points offset by an
increase in average interest-bearing liabilities of $10.9 million. The average yield on
interest-earning assets remained stable at 3.93% over the
comparable quarter.
Net interest income increased $499,000, or 3.5%, to $14.6 million for the first six months of 2016
compared to the same period in the prior year. Net interest
margin increased 8 basis points for the six months ended
June 30, 2016 to 3.26% versus 3.18%
for the six months ended June 30,
2015. The increase in net interest income for the comparable
six month period resulted from an increase in average
interest-earning assets of $8.2
million and a decrease in the average cost of
interest-bearing liabilities of 11 basis point to 0.82% offset by
an increase in average interest-bearing liabilities of $6.7 million and a decrease of 1 basis point in
the average yield on interest-earning assets.
Other income decreased $57,000 to
$1.1 million and $107,000 to $2.1
million for the second quarter and first six months of 2016,
respectively, compared to the same periods in 2015. The
decrease in other income in the second quarter comparison resulted
from decreases of $94,000 in deposit
account fees, debit card commissions and other fees offset by gain
on sale of investments of $37,000. The decrease in other income for
the comparable six month period resulted from decreases of
$144,000 in deposit account fees,
debit card commissions and other fees offset by gain on sale of
investments of $37,000.
Other expenses increased $214,000,
or 4.0%, to $5.6 million for the
second quarter of 2015, compared to $5.4
million for the second quarter of 2015. Other expenses
increased $264,000, or 2.4%, to
$11.1 million for the six months
ended June 30, 2015, compared to
$10.8 million for the six months
ended June 30, 2015. During the
second quarter of 2016 increases in salaries and benefits, FDIC
insurance, REO and other expenses of $263,000 were offset by decreases in occupancy
and equipment and marketing expenses of $49,000. For the six months ended
June 30, 2016 increases in salaries
and benefits, FDIC insurance, REO and other expenses of
$373,000 were offset by decreases in
occupancy and equipment and marketing expenses of $109,000.
This press release, as well as other written communications made
from time to time by the Company and its subsidiaries and oral
communications made from time to time by authorized officers of the
Company, may contain statements relating to the future results of
the Company (including certain projections and business trends)
that are considered "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 (the PSLRA). Such
forward-looking statements may be identified by the use of such
words as "believe," "expect," "anticipate," "should," "planned,"
"estimated," "intend" and "potential." For these statements, the
Company claims the protection of the safe harbor for
forward-looking statements contained in the PSLRA.
The Company cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: prevailing economic and
geopolitical conditions; changes in interest rates, loan demand,
real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; and other economic, competitive, governmental, regulatory
and technological factors affecting the Company's operations,
pricing, products and services and other factors that may be
described in the Company's annual report on Form 10-K and quarterly
reports on Form 10-Q as filed with the Securities and Exchange
Commission. The forward-looking statements are made as of the
date of this release, and, except as may be required by applicable
law or regulation, the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
SELECTED FINANCIAL
CONDITION DATA (Unaudited)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
%
Change
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$1,042,835
|
|
$1,043,379
|
|
(0.1)%
|
Cash and cash
equivalents
|
|
86,205
|
|
87,710
|
|
(1.7)
|
Investment
securities
|
|
107,631
|
|
112,992
|
|
(4.7)
|
Loans receivable,
net
|
|
791,219
|
|
783,948
|
|
0.9
|
Deposits
|
|
806,701
|
|
812,033
|
|
(0.7)
|
FHLB
advances
|
|
105,000
|
|
105,000
|
|
0.0
|
Stockholder's
equity
|
|
115,651
|
|
111,789
|
|
3.5
|
SELECTED OPERATING
DATA (Unaudited)
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
Six Months
Ended
June
30,
|
|
|
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
|
|
(In thousands,
except per share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$8,830
|
|
$8,764
|
|
0.8%
|
|
$17,673
|
|
$17,551
|
|
0.7%
|
Interest
expense
|
|
1,462
|
|
1,708
|
|
(14.4)
|
|
3,026
|
|
3,403
|
|
(11.1)
|
Net interest
income
|
|
7,368
|
|
7,056
|
|
4.4
|
|
14,647
|
|
14,148
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
161
|
|
178
|
|
(9.6)
|
|
313
|
|
331
|
|
(5.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after
provision for loan losses
|
|
7,207
|
|
6,878
|
|
4.8
|
|
14,334
|
|
13,817
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
1,076
|
|
1,133
|
|
(5.0)
|
|
2,075
|
|
2,182
|
|
(4.9)
|
Other
expense
|
|
5,587
|
|
5,373
|
|
4.0
|
|
11,078
|
|
10,814
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
2,696
|
|
2,638
|
|
2.2
|
|
5,331
|
|
5,185
|
|
2.8
|
Provision for income
taxes
|
|
920
|
|
899
|
|
2.3
|
|
1,799
|
|
1,733
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$1,776
|
|
$1,739
|
|
2.1
|
|
$3,532
|
|
$3,452
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
basic
|
|
$0.29
|
|
$0.29
|
|
|
|
$0.58
|
|
$0.58
|
|
|
Earnings per share
diluted
|
|
$0.28
|
|
$0.29
|
|
|
|
$0.57
|
|
$0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding basic
|
|
6,140,839
|
|
5,920,475
|
|
|
|
6,134,000
|
|
5,952,732
|
|
|
Average shares
outstanding diluted
|
|
6,249,553
|
|
6,036,007
|
|
|
|
6,242,418
|
|
6,062,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
2016
|
|
Three Months
Ended
June 30,
2015
|
|
Average
Balance
|
|
Yield/Cost
|
|
Average
Balance
|
|
Yield/Cost
|
|
(Dollars in
thousands)
|
Loans
|
$791,745
|
|
4.13%
|
|
$776,880
|
|
4.21%
|
|
Investment
securities
|
106,596
|
|
2.48%
|
|
115,966
|
|
2.02%
|
|
Total
interest-earning assets
|
898,341
|
|
3.93%
|
|
892,846
|
|
3.93%
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
630,418
|
|
0.41%
|
|
607,339
|
|
0.41%
|
|
Total
borrowings
|
105,000
|
|
3.09%
|
|
117,217
|
|
3.73%
|
|
Total
interest-bearing liabilities
|
735,418
|
|
0.80%
|
|
724,556
|
|
0.94%
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
3.14%
|
|
|
|
2.98%
|
Net interest
margin
|
|
|
3.28%
|
|
|
|
3.16%
|
|
Six Months
Ended
June 30,
2016
|
|
Six Months
Ended
June 30,
2015
|
|
Average
Balance
|
|
Yield/Cost
|
|
Average
Balance
|
|
Yield/Cost
|
|
(Dollars in
thousands)
|
Loans
|
$790,185
|
|
4.14%
|
|
$775,426
|
|
4.22%
|
Investment
securities
|
108,446
|
|
2.46%
|
|
115,004
|
|
2.09%
|
Total
interest-earning assets
|
898,631
|
|
3.93%
|
|
890,430
|
|
3.94%
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
632,544
|
|
0.42%
|
|
613,601
|
|
0.40%
|
Total
borrowings
|
105,000
|
|
3.25%
|
|
117,217
|
|
3.71%
|
Total
interest-bearing liabilities
|
737,544
|
|
0.82%
|
|
730,818
|
|
0.93%
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
3.11%
|
|
|
|
3.01%
|
Net interest
margin
|
|
|
3.26%
|
|
|
|
3.18%
|
ASSET QUALITY DATA
(Unaudited)
|
|
|
|
Six Months
Ended
June 30,
2016
|
|
Year
Ended
December 31,
2015
|
|
|
(Dollars in
thousands)
|
Allowance for Loan
Losses:
|
|
|
|
|
Allowance at
beginning of period
|
|
$ 3,190
|
|
|
$ 3,760
|
|
Provision for loan
losses
|
|
313
|
|
|
689
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
(258)
|
|
|
(1,259)
|
|
Recoveries
|
|
–
|
|
|
–
|
|
Net
charge-offs
|
|
(258)
|
|
|
(1,259)
|
|
|
|
|
|
|
|
|
Allowance at end of
period
|
|
$ 3,245
|
|
|
$ 3,190
|
|
Allowance for loan
losses as a percent of total loans
|
|
0.41%
|
|
|
0.41%
|
|
Allowance for loan
losses as a percent of nonperforming loans
|
|
78.8%
|
|
|
56.3%
|
|
|
|
At June
30,
2016
|
|
At December
31,
2015
|
|
|
(Dollars in
thousands)
|
Nonperforming
Assets:
|
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
Real
estate mortgage - residential
|
|
$ 2,605
|
|
$ 2,597
|
Real
estate mortgage - commercial
|
|
705
|
|
1,580
|
Real
estate mortgage - construction
|
|
143
|
|
143
|
Commercial business loans
|
|
41
|
|
41
|
Consumer
loans
|
|
237
|
|
601
|
Total
|
|
3,731
|
|
4,962
|
Trouble debt
restructurings - nonaccrual
|
|
390
|
|
708
|
Total
nonaccrual loans
|
|
4,121
|
|
5,670
|
Real estate
owned
|
|
1,662
|
|
1,814
|
Total nonperforming
assets
|
|
$ 5,783
|
|
$ 7,484
|
Nonperforming loans
as a percent of total loans
|
|
0.52%
|
|
0.72%
|
Nonperforming assets
as a percent of total assets
|
|
0.55%
|
|
0.72%
|
SELECTED FINANCIAL
RATIOS (Unaudited)
|
|
|
|
Six Months
Ended
June
30,
|
|
|
2016
|
|
2015
|
Selected
Performance Ratios:
|
|
|
|
|
Return on average
assets (1)
|
|
0.67
|
%
|
|
0.67
|
%
|
Return on average
equity (1)
|
|
6.19
|
%
|
|
6.46
|
%
|
Interest rate spread
(1)
|
|
3.11
|
%
|
|
3.01
|
%
|
Net interest margin
(1)
|
|
3.26
|
%
|
|
3.18
|
%
|
Efficiency
ratio
|
|
66.25
|
%
|
|
66.22
|
%
|
|
--(1) Annualized.
|
OCEAN SHORE
HOLDING COMPANY - QUARTERLY DATA (Unaudited)
|
|
|
|
Q2
2016
|
|
Q1
2016
|
|
Q4
2015
|
|
Q3
2015
|
|
Q2
2015
|
|
|
|
(In thousands except
per share amounts)
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$7,368
|
|
$7,279
|
|
$7,214
|
|
$7,092
|
|
$7,056
|
|
Provision for loan
losses
|
|
161
|
|
152
|
|
192
|
|
165
|
|
178
|
|
Net interest income
after
provision for loan losses
|
|
7,207
|
|
7,127
|
|
7,022
|
|
6,927
|
|
6,878
|
|
Other
income
|
|
1,076
|
|
998
|
|
1,086
|
|
1,122
|
|
1,133
|
|
Other
expense
|
|
5,587
|
|
5,491
|
|
5,539
|
|
5,536
|
|
5,373
|
|
Income before
taxes
|
|
2,696
|
|
2,634
|
|
2,569
|
|
2,513
|
|
2,638
|
|
Provision for income
taxes
|
|
920
|
|
878
|
|
821
|
|
844
|
|
899
|
|
Net income
|
|
$1,776
|
|
$1,756
|
|
$1,748
|
|
$1,669
|
|
$1,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
basic
|
|
$0.29
|
|
$0.29
|
|
$0.29
|
|
$0.28
|
|
$0.29
|
|
Earnings per share
diluted
|
|
$0.28
|
|
$0.28
|
|
$0.28
|
|
$0.27
|
|
$0.29
|
|
Average shares
outstanding basic
|
|
6,140,839
|
|
6,127,162
|
|
6,109,527
|
|
6,043,604
|
|
5,920,475
|
|
Average shares
outstanding diluted
|
|
6,249,553
|
|
6,235,771
|
|
6,218,480
|
|
6,145,136
|
|
6,036,007
|
|
Total shares
outstanding
|
|
6,412,678
|
|
6,411,678
|
|
6,403,058
|
|
6,403,191
|
|
6,257,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$1,042,835
|
|
$1,052,149
|
|
$1,043,379
|
|
$1,067,458
|
|
$1,019,031
|
|
Investment
securities
|
|
107,631
|
|
107,625
|
|
112,992
|
|
108,151
|
|
115,564
|
|
Loans receivable,
net
|
|
791,219
|
|
792,784
|
|
783,948
|
|
785,549
|
|
780,789
|
|
Deposits
|
|
806,701
|
|
818,305
|
|
812,033
|
|
832,010
|
|
779,859
|
|
FHLB
advances
|
|
105,000
|
|
105,000
|
|
105,000
|
|
110,000
|
|
110,000
|
|
Subordinated
debt
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,217
|
|
Stockholders'
equity
|
|
115,651
|
|
113,844
|
|
111,789
|
|
110,701
|
|
106,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets
|
|
$5,783
|
|
$6,922
|
|
$7,484
|
|
$7,654
|
|
$7,579
|
|
|
Non-performing loans
to total loans
|
|
0.52%
|
|
0.59%
|
|
0.72%
|
|
0.73%
|
|
0.82%
|
|
|
Non-performing assets
to total assets
|
|
0.55%
|
|
0.66%
|
|
0.72%
|
|
0.72%
|
|
0.74%
|
|
|
Allowance for loan
losses
|
|
$3,245
|
|
$3,220
|
|
$3,190
|
|
$3,116
|
|
$3,392
|
|
|
Allowance for loan
losses to total
loans
|
|
0.41%
|
|
0.41%
|
|
0.41%
|
|
0.40%
|
|
0.43%
|
|
|
Allowance for loan
losses to non-
performing loans
|
|
78.8%
|
|
69.0%
|
|
56.3%
|
|
54.2%
|
|
53.1%
|
|
|
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ocean-shore-holding-co-reports-2nd-quarter-earnings-300304275.html
SOURCE Ocean Shore Holding Co.