OCEAN SHORE HOLDING CO OCEAN CITY, N.J., April 26, 2016 /PRNewswire/ -- Ocean Shore Holding Co. (NASDAQ: OSHC) today announced net income of $1,756,000 for the quarter ended March 31, 2016 compared to $1,713,000 earned in the first quarter of 2015. Diluted earnings per share were unchanged at $0.28 for the first quarter of 2016 as compared the first quarter of 2015.
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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 to report a strong start to 2016," said Steven E. Brady, President and Chief Executive Officer. "An improved asset mix and net interest margin resulted in improved profitability for the quarter."
Balance Sheet Review
Total assets grew $8.7 million, or 0.8%, to $1,052.1 million at March 31, 2016 from $1,043.4 million at December 31, 2015. Loans receivable, net, increased $8.9 million, or 1.1%, to $792.8 million at March 31, 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 quarter of 2016. Cash and cash equivalents increased $5.8 million, or 6.7%, to $93.6 million at March 31, 2016 from $87.7 million at December 31, 2015. Loan originations and other advances totaling $39.5 million were offset by payoffs and payments received of $30.8 million, resulting in an $8.7 million increase in the portfolio. The decrease in investments and mortgage-backed securities resulted from calls, maturities and normal repayments offset by purchases.
Deposits grew $6.3 million, or 0.8%, to $818.3 million at March 31, 2016 from $812.0 million at December 31, 2015. The Company continued its focus on core deposits, which increased $2.1 million, or 0.3%, to $634.2 million. Certificates of deposit increased $4.2 million, or 2.3%, to $184.1 million at March 31, 2016 compared to December 31, 2015. Total borrowings were unchanged at $105.0 million.
Asset Quality
The provision for loan losses totaled $152,000 for the first quarter of 2016 compared to $153,000 for the first quarter of 2015 and $192,000 for the fourth quarter of 2015. The allowance for loan losses totaled $3.2 million, or 0.41% of total loans, at March 31, 2016 compared to $3.2 million, or 0.41% of total loans, at December 31, 2015. The Company experienced $122,000 in net charge-off activity in the first quarter of 2016 as compared to $529,000 for the first quarter of 2015.
Non-performing assets totaled $6.9 million, or 0.66% of total assets, at March 31, 2016, compared to $7.5 million, or 0.72% of total assets, at December 31, 2015. Non-performing assets consisted of eighteen real estate residential mortgages totaling $2.8 million, four real estate commercial mortgages totaling $926,000, one commercial loan totaling $41,000, nine consumer equity loans totaling $385,000, four TDR non-accrual loans totaling $559,000 and ten real estate owned properties totaling $2.3 million.
Income Statement Analysis
Net interest income increased $187,000, or 2.6%, to $7.3 million for the first quarter of 2016 compared to the first quarter of 2015. Net interest margin increased four basis points to 3.24% for the quarter ended March 31, 2016 versus 3.19% for the quarter ended March 31, 2015. On a linked-quarter basis, net interest margin increased 2 basis points from 3.22% in the fourth quarter of 2015.
Other income decreased $51,000, or 4.9%, to $1.0 million for the first quarter of 2016 compared to the first quarter of 2015. The decrease in other income resulted from decreases in deposit account fees offset by increases loan and other fees.
Other expenses increased $49,000, or 0.9%, to $5.5 million for the first quarter of 2016 compared to $5.4 million for the first quarter of 2015. Increases in salaries and benefits, FDIC insurance, REO expense and other expenses of $109,000 were offset by decreases in occupancy and equipment and marketing expense of $60,000.
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)
March 31, December 31,
2016 2015 % Change
---- ---- --------
(Dollars in thousands)
%
Total
assets $1,052,149 $1,043,379 0.8
Cash and
cash
equivalents 93,554 87,710 6.7
Investment
securities 107,625 112,992 (4.7)
Loans
receivable,
net 792,784 783,948 1.1
Deposits 818,305 812,033 0.8
FHLB
advances 105,000 105,000 0.0
Stockholders'
equity 113,844 111,789 1.8
SELECTED OPERATING DATA (Unaudited)
Three Months Ended
March 31,
---------
2016 2015 % Change
---- ---- --------
(Dollars in thousands, except per
share and share amounts)
Interest and
dividend income $8,843 $8,787 0.6%
Interest expense 1,564 1,695 (7.7)
----- -----
Net interest
income 7,279 7,092 2.6
Provision for
loan losses 152 153 (0.7)
--- ---
Net interest
income after
provision for
loan losses 7,127 6,939 2.7
----- -----
Other income 998 1,049 (4.9)
Other expense 5,491 5,442 0.9
----- -----
Income before
taxes 2,634 2,546 3.5
Provision for
income taxes 878 833 5.4
--- ---
Net income $1,756 $1,713 2.5%
====== ======
Earnings per
share basic $0.29 $0.29 0.0%
Earnings per
share diluted $0.28 $0.28 0.0%
Average shares
outstanding
basic 6,127,162 5,985,347
Average shares
outstanding
diluted 6,235,771 6,095,177
Three Months Ended Three Months Ended
March 31, 2016 March 31, 2015
-------------- --------------
Average Balance Yield/Cost Average Balance Yield/Cost
--------------- ---------- --------------- ----------
(Dollars in thousands)
Loans $788,624 4.14% $773,955 4.22%
Investment
securities 110,296 2.44% 114,032 2.16%
------- -------
Total interest-
earning assets 898,920 3.94% 887,987 3.96%
Interest-
bearing
deposits 634,669 0.42% 619,933 0.40%
Total
borrowings 105,000 3.42% 117,217 3.69%
------- -------
Total interest-
bearing
liabilities 739,669 0.85% 737,150 0.92%
Interest rate
spread 3.09% 3.04%
Net interest
margin 3.24% 3.19%
ASSET QUALITY DATA (Unaudited)
Three Months Year Ended
Ended
December 31,
2015
March 31, 2016
--------------
(Dollars in thousands)
Allowance for Loan
Losses:
Allowance at beginning
of period $3,190 $3,760
Provision for loan
losses 152 689
Charge-offs (122) (1,259)
Recoveries - -
--- ---
Net charge-offs (122) (1,259)
---- ------
Allowance at end of
period $3,220 $3,190
====== ======
0.41% 0.41%
Allowance for loan
losses as a percent of
total loans
Allowance for loan
losses as a percent of 69.0% 56.3%
nonperforming loans
At March 31, At December 31,
2016 2015
(Dollars in thousands)
Nonperforming
Assets:
Nonaccrual loans:
Real estate
mortgage -
residential $2,753 $2,597
Real estate
mortgage -
commercial 926 1,580
Real estate
mortgage -
construction - 143
Commercial 41 41
Consumer 385 601
--- ---
Total 4,105 4,962
Trouble debt
restructurings -
nonaccrual 559 708
--- ---
Total nonaccrual
loans 4,664 5,670
Real estate owned 2,258 1,814
----- -----
Total
nonperforming
assets $6,922 $7,484
====== ======
0.59% 0.72%
Nonperforming
loans as a
percent of total
loans
Nonperforming
assets as a
percent of total
assets 0.66% 0.72%
SELECTED FINANCIAL RATIOS (Unaudited)
Three Months Ended
March 31,
---------
2016 2015
---- ----
Selected Performance Ratios:
Return on average assets (1) 0.67% 0.66%
Return on average equity (1) 6.20% 6.43%
Interest rate spread (1) 3.09% 3.04%
Net interest margin (1) 3.24% 3.19%
Efficiency ratio 66.34% 66.84%
(1) Annualized
OCEAN SHORE HOLDING COMPANY - QUARTERLY DATA (Unaudited)
Q1 Q4 Q3 Q2 Q1
2016 2015 2015 2015 2015
---- ---- ---- ---- ----
(In thousands except per share amounts)
Income Statement Data:
Net interest income $7,279 $7,214 $7,092 $7,056 $7,092
Provision for loan losses 152 192 165 178 153
--- --- --- --- ---
Net interest income after
provision for loan losses 7,127 7,022 6,927 6,878 6,939
Other income 998 1,086 1,122 1,133 1,049
Other expense 5,491 5,539 5,536 5,373 5,442
----- ----- ----- ----- -----
Income before taxes 2,634 2,569 2,513 2,638 2,546
Provision for income taxes 878 821 844 899 833
--- --- --- --- ---
Net income $1,756 $1,748 $1,669 $1,739 $1,713
====== ====== ====== ====== ======
Share Data:
Earnings per share basic $0.29 $0.29 $0.28 $0.29 $0.29
Earnings per share diluted $0.28 $0.28 $0.27 $0.29 $0.28
Average shares outstanding basic 6,127,162 6,109,527 6,043,604 5,920,475 5,985,347
Average shares outstanding diluted 6,235,771 6,218,480 6,145,136 6,036,007 6,095,177
Total shares outstanding 6,411,678 6,403,058 6,403,191 6,257,899 6,251,912
Balance Sheet Data:
Total assets $1,052,149 $1,043,379 $1,067,458 $1,019,031 $1,029,809
Investment securities 107,625 112,992 108,151 115,564 114,830
Loans receivable, net 792,784 783,948 785,549 780,789 770,261
Deposits 818,305 812,033 832,010 779,859 792,891
FHLB advances 105,000 105,000 110,000 110,000 110,000
Subordinated debt - - - 7,217 7,217
Stockholders' equity 113,844 111,789 110,701 106,883 105,643
Asset Quality:
Non-performing assets $6,922 $7,484 $7,654 $7,579 $7,027
Non-performing loans to total loans 0.59% 0.72% 0.73% 0.82% 0.83%
Non-performing assets to total assets 0.66% 0.72% 0.72% 0.74% 0.68%
Allowance for loan losses $3,220 $3,190 $3,116 $3,392 $3,384
Allowance for loan losses to total loans 0.41% 0.41% 0.40% 0.43% 0.44%
Allowance for loan losses to non-
performing loans 69.0% 56.3% 54.2% 53.1% 52.7%
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SOURCE Ocean Shore Holding Co.
