OCEAN CITY, N.J., Oct. 25, 2016 /PRNewswire/ -- Ocean Shore
Holding Co. (NASDAQ: OSHC) today announced net income of
$1,701,000, or $0.27 per diluted share, for the quarter ended
September 30, 2016, as compared to
$1,669,000, or $0.27 per diluted share, for the quarter ended
September 30, 2015. Net income
for the nine months ended September 30,
2016 was $5,233,000, or
$0.84 per diluted share, as compared
to $5,121,000, or $0.84 per diluted share, for the same period in
2015.
Ocean Shore Holding Co. (the "Company") is the holding company
for Ocean City Home Bank (the "Bank"), a federal savings bank
headquartered in Ocean City, New
Jersey. The Bank operates a total of eleven full-service
banking offices in eastern New
Jersey.
"We are pleased with our continued strong and consistent
financial performance," said Steven E.
Brady, President and CEO. "In addition, we are moving
forward to obtain the necessary approvals for our merger with
OceanFirst Financial Corp. and look forward to our affiliation with
OceanFirst and the strength of our combined franchise."
Balance Sheet Review
Total assets increased $53.5
million, or 5.1%, to $1,096.9
million at September 30, 2016
from $1,043.4 million at December 31, 2015. Loans receivable, net,
increased $9.0 million, or 1.1%, to
$792.9 million at September 30, 2016 from $783.9 million at December
31, 2015. Investments and mortgage-backed securities
decreased $11.8 million, or 10.4%, to
$101.2 million during the first nine
months of 2016. Cash and cash equivalents increased
$57.8 million, or 65.9%, to
$145.5 million at September 30, 2016 from $87.7 million at December
31, 2015. Loan originations and other advances
totaling $122.6 million were offset
by payoffs and payments received of $113.6
million, resulting in a $9.0
million increase in the portfolio. The decrease in
investments and mortgage-backed securities resulted from
repayments, calls, sales and payoffs of $27.9 million offset by purchases of $15.4 million and a decrease of $826,000 in unrealized holding loss on available
for sale investments. The increase in cash and cash
equivalents resulted primarily from increased deposits offset by
increased loans.
Deposits increased $45.1 million,
or 5.6%, to $857.1 million at
September 30, 2016 from $812.0 million at December
31, 2015. Checking accounts increased $23.7 million, savings accounts increased
$2.8 million, municipal deposits
increased $9.0 million and
certificates of deposit increased $9.7
million at September 30, 2016
compared to December 31, 2015.
Municipal deposits increased as a result of seasonal
deposits.
Asset Quality
The provision for loan losses totaled $150,000 for the third quarter of 2016 compared
to $165,000 for the third quarter of
2015 and $161,000 for the second
quarter of 2016. The provision for loan losses totaled
$463,000 for the nine months ended
September 30, 2016 compared to
$496,000 for the nine months ended
September 30, 2015. The
allowance for loan losses totaled $3.3
million, or 0.42% of total loans, at September 30, 2016 compared to $3.2 million, or 0.41% of total loans, at
December 31, 2015. The Company
experienced $346,000 in net
charge-off activity for the nine months ended September 30, 2016 as compared to $1.3 million in net charge-off activity for the
nine months ended September 30,
2015.
Non-performing assets totaled $6.3
million, or 0.57% of total assets, at September 30, 2016, compared to $7.5 million, or 0.72% of total assets, at
December 31, 2015.
Non-performing assets at September 30,
2016 consisted of 23 residential mortgages totaling
$3.3 million, 2 commercial mortgages
totaling $466,000, 1 real estate
construction mortgage totaling $143,000, 3 commercial loans totaling
$153,000, 5 consumer equity loans
totaling $197,000, 3 TDR non-accrual
loans totaling $961,000 and 6 real
estate owned properties totaling $1.0
million.
Income Statement Analysis
Net interest income increased $170,000, or 2.4%, to $7.3
million for the third quarter of 2016 compared to
$7.1 million in the third quarter of
2015. Net interest margin increased 7 basis points in the
quarter ended September 30, 2016 to
3.24% from 3.17% for the quarter ended September 30, 2015. On a linked-quarter
basis, net interest margin decreased 4 basis points from 3.28% in
the second quarter of 2016. The increase in net interest
income in the third quarter of 2016 compared to the third quarter
of 2015 was the result of an increase in average interest-earning
assets of $764,000, a decrease in the
average cost of interest-bearing liabilities of 11basis points to
0.79% and a decrease in average interest-bearing liabilities of
$653,000 offset by a decrease of 2
basis points in the average yield on interest-earning assets to
3.90%.
Net interest income increased $669,000, or 3.1%, to $21.9 million for the nine months ended
September 30, 2016 compared to
$21.2 million in the same period in
the prior year. Net interest margin increased 8 basis points
for the nine months ended September 30,
2016 to 3.25% versus 3.17% for the nine months ended
September 30, 2015. The
increase in net interest income for the nine months ended
September 30, 2016 was the result of
an increase in average interest-earning assets of $5.7 million, a decrease in the average cost of
interest-bearing liabilities of 11 basis point to 0.81% offset by
an increase in average interest-bearing liabilities of $4.2 million and a decrease of 2 basis points in
the average yield on interest-earning assets to 3.92%.
Other income decreased $60,000 and
$167,000 to $1.1 million and $3.1
million for the three and nine months ended September 30, 2016, respectively, compared to the
same periods in 2015. The net decrease in other income for
the quarter ended September 30, 2016
resulted from decreases in deposit account fees of $25,000, other income of $32,000 and gain on sale of investments of
$3,000. The net decrease in
other income for the nine months ended September 30, 2016 resulted from decreases in
deposit account fees of $147,000 and
other income of $54,000 offset by an
increases gain on sale of investments of $34,000 for the period. The decreases in
the three and nine month periods resulted primarily from lower fees
collected on deposit accounts and debit card commissions.
Other expenses increased $144,000,
or 2.6%, to $5.7 million for the
third quarter of 2016, compared to the third quarter of 2015.
Other expenses increased $409,000, or
2.5%, to $16.8 million for the nine
months ended September 30, 2016
compared to the same period in 2015. The increase in other
expense for the third quarter of 2016 compared to 2015 resulted
from increases in salaries and benefits, FDIC insurance and of
other expenses $318,000 offset by
decreases in occupancy and equipment, marketing expenses and REO
expenses of $174,000. For the
nine months ended September 30, 2016,
increases in salaries and benefits, FDIC insurance REO expenses and
other expenses of $657,000 were
offset by decreases in occupancy and equipment and marketing
expenses of $248,000.
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: risks, uncertainties and
other factors relating to the merger of the Company with and into
OceanFirst Financial Corp., including the ability to obtain
regulatory approvals and meet other closing conditions to the
merger, including approval by shareholders of the Company and
OceanFirst, and delay in closing the merger, 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)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
%
Change
|
|
|
(Dollars in
thousands)
|
|
|
Total
assets
|
|
$1,096,875
|
|
$1,043,379
|
|
5.1%
|
Cash and cash
equivalents
|
|
145,469
|
|
87,710
|
|
65.9
|
Investment
securities
|
|
101,188
|
|
112,992
|
|
(10.4)
|
Loans receivable,
net
|
|
792,945
|
|
783,948
|
|
1.1
|
Deposits
|
|
857,150
|
|
812,033
|
|
5.6
|
FHLB
advances
|
|
105,000
|
|
105,000
|
|
0.0
|
Stockholder's
equity
|
|
118,241
|
|
111,789
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATING
DATA (Unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
Nine Months
Ended
September
30,
|
|
|
|
|
|
2016
|
|
2015
|
|
%Change
|
|
2016
|
|
2015
|
|
%
Change
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$8,740
|
|
$8,777
|
|
(0.4)
|
|
$26,414
|
|
$26,328
|
|
0.3
|
|
Interest
expense
|
|
1,478
|
|
1,685
|
|
(12.3)
|
|
4,505
|
|
5,088
|
|
(11.5)
|
|
Net interest
income
|
|
7,262
|
|
7,092
|
|
2.4
|
|
21,909
|
|
21,240
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
150
|
|
165
|
|
(9.1)
|
|
463
|
|
496
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after
provision for loan losses
|
|
7,112
|
|
6,927
|
|
2.7
|
|
21,446
|
|
20,744
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
1,062
|
|
1,122
|
|
(5.3)
|
|
3,137
|
|
3,304
|
|
(5.1)
|
|
Other
expense
|
|
5,680
|
|
5,536
|
|
2.6
|
|
16,759
|
|
16,350
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
2,494
|
|
2,513
|
|
(0.8)
|
|
7,824
|
|
7,698
|
|
1.6
|
|
Provision for income
taxes
|
|
793
|
|
844
|
|
(6.0)
|
|
2,591
|
|
2,577
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$1,701
|
|
$1,669
|
|
1.9
|
|
$5,233
|
|
$5,121
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
basic
|
|
$0.27
|
|
$0.28
|
|
|
|
$0.85
|
|
$0.86
|
|
|
|
Earnings per share
diluted
|
|
$0.27
|
|
$0.27
|
|
|
|
$0.84
|
|
$0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding basic
|
|
6,207,118
|
|
6,043,604
|
|
|
|
6,158,551
|
|
5,983,355
|
|
|
|
Average shares
outstanding diluted
|
|
6,308,171
|
|
6,145,136
|
|
|
|
6,247,723
|
|
6,088,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
2016
|
|
Three Months
Ended
September 30,
2015
|
|
Average
Balance
|
|
Yield/Cost
|
|
Average
Balance
|
|
Yield/Cost
|
|
(Dollars in
thousands)
|
Loans
|
$790,554
|
|
4.06%
|
|
$780,769
|
|
4.18%
|
Investment
securities
|
105,222
|
|
2.71%
|
|
114,243
|
|
2.13%
|
Total
interest-earning assets
|
895,776
|
|
3.90%
|
|
895,012
|
|
3.92%
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
$640,939
|
|
0.42%
|
|
$632,199
|
|
0.41%
|
Total
borrowings
|
105,000
|
|
3.08%
|
|
114,393
|
|
3.65%
|
Total
interest-bearing liabilities
|
745,939
|
|
0.79%
|
|
746,592
|
|
0.90%
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
3.11%
|
|
|
|
3.02%
|
Net interest
margin
|
|
|
3.24%
|
|
|
|
3.17%
|
|
Nine Months
Ended
September 30,
2016
|
|
Nine Months
Ended
September 30,
2015
|
|
Average
Balance
|
|
Yield/Cost
|
|
Average
Balance
|
|
Yield/Cost
|
|
(Dollars in
thousands)
|
Loans
|
$790,309
|
|
4.11%
|
|
$777,226
|
|
4.21%
|
|
Investment
securities
|
107,363
|
|
2.54%
|
|
114,748
|
|
2.10%
|
|
Total
interest-earning assets
|
897,672
|
|
3.92%
|
|
891,974
|
|
3.94%
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits
|
$635,362
|
|
0.42%
|
|
$619,869
|
|
0.40%
|
|
Total
borrowings
|
105,000
|
|
3.20%
|
|
116,265
|
|
3.69%
|
|
Total
interest-bearing liabilities
|
740,362
|
|
0.81%
|
|
736,134
|
|
0.92%
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
3.11%
|
|
|
|
3.02%
|
|
Net interest
margin
|
|
|
3.25%
|
|
|
|
3.17%
|
|
ASSET QUALITY DATA
(Unaudited)
|
|
|
|
Nine Months
Ended
September 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
|
|
463
|
|
|
689
|
|
|
|
|
|
|
|
|
Charge-offs
|
|
(348)
|
|
|
(1,259)
|
|
Recoveries
|
|
2
|
|
|
–
|
|
Net
charge-offs
|
|
(346)
|
|
|
(1,259)
|
|
|
|
|
|
|
|
|
Allowance at end of
period
|
|
$ 3,307
|
|
|
$ 3,190
|
|
Allowance for loan
losses as a percent of total loans
|
|
0.42%
|
|
|
0.41%
|
|
Allowance for loan
losses as a percent of nonperforming loans
|
|
62.9%
|
|
|
56.3%
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
(Dollars in
thousands)
|
Nonperforming
Assets:
|
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
Real
estate mortgage - residential
|
|
$ 3,338
|
|
$ 2,597
|
Real
estate mortgage - commercial
|
|
466
|
|
1,580
|
Real
estate mortgage - construction
|
|
143
|
|
143
|
Commercial business loans
|
|
153
|
|
41
|
Consumer
loans
|
|
198
|
|
601
|
Total
|
|
4,298
|
|
4,962
|
Trouble debt
restructurings - nonaccrual
|
|
961
|
|
708
|
Total
nonaccrual loans
|
|
5,259
|
|
5,670
|
Real estate
owned
|
|
1,007
|
|
1,814
|
Total nonperforming
assets
|
|
$ 6,266
|
|
$ 7,484
|
Nonperforming loans
as a percent of total loans
|
|
0.66%
|
|
0.72%
|
Nonperforming assets
as a percent of total assets
|
|
0.57%
|
|
0.72%
|
SELECTED FINANCIAL
RATIOS (Unaudited)
|
|
|
|
Nine Months
Ended
September
30,
|
|
|
2016
|
|
2015
|
Selected
Performance Ratios:
|
|
|
|
|
Return on average
assets (1)
|
|
0.66
|
%
|
|
0.65
|
%
|
Return on average
equity (1)
|
|
6.06
|
%
|
|
6.34
|
%
|
Interest rate spread
(1)
|
|
3.11
|
%
|
|
3.02
|
%
|
Net interest margin
(1)
|
|
3.25
|
%
|
|
3.17
|
%
|
Efficiency
ratio
|
|
66.91
|
%
|
|
66.61
|
%
|
(1)
Annualized.
|
OCEAN SHORE
HOLDING COMPANY - QUARTERLY DATA (Unaudited)
|
|
|
|
Q3
2016
|
|
Q2
2016
|
|
Q1
2016
|
|
Q4
2015
|
|
Q3
2015
|
|
|
|
(In thousands except
per share amounts)
|
|
Income Statement
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$7,262
|
|
$7,368
|
|
$7,279
|
|
$7,214
|
|
$7,092
|
|
Provision for loan
losses
|
|
150
|
|
161
|
|
152
|
|
192
|
|
165
|
|
Net interest income
after
provision for loan losses
|
|
7,112
|
|
7,207
|
|
7,127
|
|
7,022
|
|
6,927
|
|
Other
income
|
|
1,062
|
|
1,076
|
|
998
|
|
1,086
|
|
1,122
|
|
Other
expense
|
|
5,680
|
|
5,587
|
|
5,491
|
|
5,539
|
|
5,536
|
|
Income before
taxes
|
|
2,494
|
|
2,696
|
|
2,634
|
|
2,569
|
|
2,513
|
|
Provision for income
taxes
|
|
793
|
|
920
|
|
878
|
|
821
|
|
844
|
|
Net income
|
|
$1,701
|
|
$1,776
|
|
$1,756
|
|
$1,748
|
|
$1,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
basic
|
|
$0.27
|
|
$0.29
|
|
$0.29
|
|
$0.29
|
|
$0.28
|
|
Earnings per share
diluted
|
|
$0.27
|
|
$0.28
|
|
$0.28
|
|
$0.28
|
|
$0.27
|
|
Average shares
outstanding basic
|
|
6,207,118
|
|
6,140,839
|
|
6,127,162
|
|
6,109,527
|
|
6,043,604
|
|
Average shares
outstanding diluted
|
|
6,308,171
|
|
6,249,553
|
|
6,235,771
|
|
6,218,480
|
|
6,145,136
|
|
Total shares
outstanding
|
|
6,512,806
|
|
6,412,678
|
|
6,411,678
|
|
6,403,058
|
|
6,403,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$1,096,875
|
|
$1,042,835
|
|
$1,052,149
|
|
$1,043,379
|
|
$1,067,458
|
|
Investment
securities
|
|
101,188
|
|
107,631
|
|
107,625
|
|
112,992
|
|
108,151
|
|
Loans receivable,
net
|
|
792,945
|
|
791,219
|
|
792,784
|
|
783,948
|
|
785,549
|
|
Deposits
|
|
857,150
|
|
806,701
|
|
818,305
|
|
812,033
|
|
832,010
|
|
FHLB
advances
|
|
105,000
|
|
105,000
|
|
105,000
|
|
105,000
|
|
110,000
|
|
Stockholders'
equity
|
|
118,241
|
|
115,651
|
|
113,844
|
|
111,789
|
|
110,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality:
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
assets
|
|
$6,266
|
|
$5,783
|
|
$6,922
|
|
$7,484
|
|
$7,654
|
|
|
Non-performing loans
to total loans
|
|
0.66%
|
|
0.52%
|
|
0.59%
|
|
0.72%
|
|
0.73%
|
|
|
Non-performing assets
to total assets
|
|
0.57%
|
|
0.55%
|
|
0.66%
|
|
0.72%
|
|
0.72%
|
|
|
Allowance for loan
losses
|
|
$3,307
|
|
$3,245
|
|
$3,220
|
|
$3,190
|
|
$3,116
|
|
|
Allowance for loan
losses to total loans
|
|
0.42%
|
|
0.41%
|
|
0.41%
|
|
0.41%
|
|
0.40%
|
|
|
Allowance for loan
losses to non-performing loans
|
|
62.9%
|
|
78.8%
|
|
69.0%
|
|
56.3%
|
|
54.2%
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20140128/NY54584LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ocean-shore-holding-co-reports-3rd-quarter-earnings-300350951.html
SOURCE Ocean Shore Holding Co.