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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New Jersey
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80-0282446
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1001 Asbury Avenue, Ocean City, New Jersey
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08226
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer ¨
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Accelerated Filer ¨
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Non-accelerated Filer ¨
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Smaller Reporting Company x
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(Do not check if a smaller reporting company)
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Page
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||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
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Financial Statements
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|
Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2011 and December 31, 2010
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1
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Unaudited Condensed Consolidated Statements of Income for the three and six months ended June 30, 2011 and 2010
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2
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Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2011 and 2010
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3
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Notes to Unaudited Condensed Consolidated Financial Statements
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4
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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22
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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34
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Item 4.
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Controls and Procedures
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34
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PART II.
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OTHER INFORMATION
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Item 1.
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Legal Proceedings
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34
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Item 1A.
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Risk Factors
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34
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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35
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Item 3.
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Defaults upon Senior Securities
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35
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Item 4.
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[RESERVED]
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35
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Item 5.
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Other Information
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35
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Item 6.
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Exhibits
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35
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SIGNATURES
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36 |
OCEAN SHORE HOLDING CO. AND SUBSIDIARIES
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||
June 30,
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December 31,
|
|||||||
|
2011
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2010
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||||||
ASSETS
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||||||||
Cash and amounts due from depository institutions
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$ | 7,912,429 | $ | 5,330,211 | ||||
Interest-earning bank balances
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97,133,777 | 105,534,943 | ||||||
Cash and cash equivalents
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105,046,206 | 110,865,154 | ||||||
Investment securities held to maturity
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||||||||
(estimated fair value—$3,350,289 at June 30, 2011; $2,638,725 at December 31, 2010)
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3,170,927 | 2,467,418 | ||||||
Investment securities available for sale
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||||||||
(amortized cost— $44,610,801 at June 30, 2011; $22,230,208 at December 31, 2010)
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44,303,313 | 21,253,675 | ||||||
Loans—net of allowance for loan losses of $4,067,965 at June 30, 2011 and $3,988,076 at December 31, 2010
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662,841,122 | 660,340,007 | ||||||
Accrued interest receivable:
|
||||||||
Loans
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2,370,390 | 2,350,978 | ||||||
Investment securities
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313,251 | 151,401 | ||||||
Federal Home Loan Bank stock—at cost
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6,250,700 | 6,271,600 | ||||||
Office properties and equipment—net
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12,706,261 | 12,905,526 | ||||||
Prepaid expenses and other assets
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4,676,204 | 4,665,491 | ||||||
Real estate owned
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97,500 | 97,500 | ||||||
Cash surrender value of life insurance
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15,149,579 | 14,890,746 | ||||||
Net deferred tax asset
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3,343,798 | 3,597,612 | ||||||
TOTAL ASSETS
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$ | 860,269,251 | $ | 839,857,108 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES:
|
||||||||
Non-interest bearing deposits
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$ | 67,535,721 | $ | 62,070,772 | ||||
Interest bearing deposits
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553,653,078 | 541,263,654 | ||||||
Advances from Federal Home Loan Bank
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110,000,000 | 110,000,000 | ||||||
Junior subordinated debenture
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15,464,000 | 15,464,000 | ||||||
Advances from borrowers for taxes and insurance
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3,734,392 | 3,494,418 | ||||||
Accrued interest payable
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1,135,685 | 1,146,224 | ||||||
Other liabilities
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5,924,762 | 5,864,523 | ||||||
Total liabilities
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757,447,638 | 739,303,591 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Preferred stock, $.01 par value, 5,000,000 shares authorized, none issued
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— | — | ||||||
Common stock, $.01 par value, 25,000,000 shares authorized, 7,308,118 shares issued; 7,296,780 shares outstanding at June 30, 2011and December 31, 2010
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73,076 | 73,076 | ||||||
Additional paid-in capital
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64,214,330 | 64,013,608 | ||||||
Retained earnings - partially restricted
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43,223,319 | 41,736,830 | ||||||
Treasury stock—at cost: 10,810 at June 30, 2011; 10,810 at December 31, 2010
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(115,208 | ) | (115,208 | ) | ||||
Common stock acquired by employee benefits plans
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(3,836,478 | ) | (4,007,478 | ) | ||||
Deferred compensation plans trust
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(521,489 | ) | (516,142 | ) | ||||
Accumulated other comprehensive loss
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(215,937 | ) | (631,169 | ) | ||||
Total stockholders’ equity
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102,821,613 | 100,553,517 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 860,269,251 | $ | 839,857,108 |
OCEAN SHORE HOLDING CO. AND SUBSIDIARIES
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
Three Months Ended June 30,
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Six Months Ended June 30,
|
|||||||||||||||
2011
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2010
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2011
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2010
|
|||||||||||||
INTEREST AND DIVIDEND INCOME:
|
||||||||||||||||
Taxable interest and fees on loans
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$ | 8,629,480 | $ | 9,058,506 | $ | 17,184,052 | $ | 18,089,112 | ||||||||
Taxable interest on mortgage-backed securities
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151,799 | 220,838 | 316,435 | 454,831 | ||||||||||||
Non-taxable interest on municipal securities
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10,473 | 19,060 | 21,119 | 36,400 | ||||||||||||
Taxable interest and dividends on other investment securities
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375,780 | 195,749 | 683,654 | 418,499 | ||||||||||||
Total interest and dividend income
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9,167,532 | 9,494,153 | 18,205,260 | 18,998,842 | ||||||||||||
INTEREST EXPENSE:
|
||||||||||||||||
Interest on deposits
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1,494,677 | 1,931,453 | 3,060,664 | 3,957,788 | ||||||||||||
Interest on borrowings
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1,510,333 | 1,510,334 | 3,007,765 | 3,007,753 | ||||||||||||
Total interest expense
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3,005,010 | 3,441,787 | 6,068,429 | 6,965,541 | ||||||||||||
NET INTEREST INCOME
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6,162,522 | 6,052,366 | 12,163,831 | 12,033,301 | ||||||||||||
PROVISION FOR LOAN LOSSES
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128,035 | 539,700 | 202,835 | 691,361 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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6,034,487 | 5,512,666 | 11,933,996 | 11,341,940 | ||||||||||||
OTHER INCOME:
|
||||||||||||||||
Service charges
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394,590 | 445,159 | 754,386 | 881,111 | ||||||||||||
Cash surrender value of life insurance
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130,365 | 138,800 | 258,833 | 273,584 | ||||||||||||
Gain on call of securities
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- | - | 10,014 | 5 | ||||||||||||
Other
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336,786 | 302,396 | 640,596 | 538,923 | ||||||||||||
Total other income
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861,741 | 886,355 | 1,663,829 | 1,693,623 | ||||||||||||
OTHER EXPENSE:
|
||||||||||||||||
Salaries and employee benefits
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2,568,056 | 2,452,437 | 5,180,749 | 4,948,865 | ||||||||||||
Occupancy and equipment
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1,133,834 | 981,233 | 2,118,025 | 1,958,484 | ||||||||||||
Federal insurance premiums
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186,188 | 162,519 | 373,268 | 330,431 | ||||||||||||
Advertising
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145,457 | 111,800 | 251,487 | 227,775 | ||||||||||||
Professional services
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310,191 | 204,009 | 604,638 | 381,664 | ||||||||||||
Real estate owned expense
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1,250 | 1,573 | 2,499 | 2,521 | ||||||||||||
Charitable contributions
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36,000 | 34,500 | 72,000 | 69,000 | ||||||||||||
Other operating expenses
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429,210 | 426,527 | 863,385 | 908,614 | ||||||||||||
Total other expenses
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4,810,186 | 4,374,598 | 9,466,051 | 8,827,354 | ||||||||||||
INCOME BEFORE INCOME TAXES
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2,086,042 | 2,024,423 | 4,131,774 | 4,208,209 | ||||||||||||
INCOME TAX EXPENSE
|
928,525 | 785,425 | 1,769,671 | 1,632,887 | ||||||||||||
NET INCOME
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$ | 1,157,517 | $ | 1,238,998 | $ | 2,362,103 | $ | 2,575,322 | ||||||||
Earnings per share, basic:
|
$ | 0.17 | $ | 0.18 | $ | 0.35 | $ | 0.38 | ||||||||
Earnings per share, diluted:
|
$ | 0.17 | $ | 0.18 | $ | 0.35 | $ | 0.38 |
OCEAN SHORE HOLDING CO. AND SUBSIDIARIES
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
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$ | 2,362,103 | $ | 2,575,322 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
341,132 | 489,962 | ||||||
Provision for loan losses
|
202,835 | 691,361 | ||||||
Stock based compensation expense
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371,722 | 410,600 | ||||||
Gain on call of AFS securities
|
(10,014 | ) | (5 | ) | ||||
Cash surrender value of life insurance
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(258,833 | ) | (273,584 | ) | ||||
Changes in assets and liabilities which provided (used) cash:
|
||||||||
Accrued interest receivable
|
(181,261 | ) | (57,673 | ) | ||||
Prepaid expenses and other assets
|
(10,712 | ) | 255,332 | |||||
Accrued interest payable
|
(10,539 | ) | (5,437 | ) | ||||
Other liabilities
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60,239 | 36,467 | ||||||
Net cash provided by operating activities
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2,866,672 | 4,122,345 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Principal collected on:
|
||||||||
Mortgage-backed securities available for sale
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1,903,443 | 2,422,419 | ||||||
Mortgage-backed securities held to maturity
|
295,283 | 357,550 | ||||||
Loans originated, net of repayments
|
(2,422,060 | ) | (12,672,662 | ) | ||||
Purchases of:
|
||||||||
Life insurance contracts
|
— | (1,500,000 | ) | |||||
Loans
|
(168,000 | ) | — | |||||
Investment securities held to maturity
|
(1,000,000 | ) | (1,474,102 | ) | ||||
Investment securities available for sale
|
(25,005,000 | ) | — | |||||
Federal Home Loan Bank stock
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— | (123,600 | ) | |||||
Office properties and equipment
|
(247,933 | ) | (207,853 | ) | ||||
Proceeds from sale/ maturities/ calls of:
|
||||||||
Federal Home Loan Bank stock
|
20,900 | — | ||||||
Investment securities available for sale
|
724,361 | 771,532 | ||||||
Net cash (used in) investing activities
|
(25,899,006 | ) | (12,426,716 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Increase in deposits
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17,854,373 | 25,835,452 | ||||||
Dividends paid
|
(875,614 | ) | (876,911 | ) | ||||
Fractional share payouts on exchange
|
— | (15,998 | ) | |||||
Purchase of shares by deferred compensation plans trust
|
(5,347 | ) | (15,050 | ) | ||||
Increase in advances from borrowers for taxes and insurance
|
239,974 | 311,612 | ||||||
Net cash provided by financing activities
|
17,213,386 | 25,239,105 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
(5,818,948 | ) | 16,934,734 | |||||
CASH AND CASH EQUIVALENTS—Beginning of period
|
110,865,154 | 33,027,710 | ||||||
CASH AND CASH EQUIVALENTS—End of period
|
$ | 105,046,206 | $ | 49,962,444 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
|
||||||||
INFORMATION—Cash paid during the period for:
|
||||||||
Interest
|
$ | 6,078,967 | $ | 6,970,978 | ||||
Income Taxes
|
$ | 1,890,574 | $ | 2,148,080 |
2. INVESTMENT SECURITIES
|
||||||||||||||||
Investment securities are summarized as follows:
|
||||||||||||||||
June 30, 2011
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gain
|
Loss
|
Value
|
|||||||||||||
Held to Maturity
|
||||||||||||||||
Municipal securities
|
$ | 1,000,000 | $ | — | $ | — | $ | 1,000,000 | ||||||||
US treasury and government sponsored entity mortgage-backed securities
|
2,170,927 | 179,362 | — | 2,350,289 | ||||||||||||
Totals
|
$ | 3,170,927 | $ | 179,362 | $ | — | $ | 3,350,289 | ||||||||
Available for Sale
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
Municipal securities
|
$ | 830,000 | $ | 1,353 | $ | — | $ | 831,353 | ||||||||
Federal Agencies
|
25,005,000 | 23,323 | — | 25,028,323 | ||||||||||||
Corporate
|
8,199,729 | 18,714 | (1,118,531 | ) | 7,099,912 | |||||||||||
Equity securities
|
2,596 | 13,754 | (1,668 | ) | 14,682 | |||||||||||
US treasury and government sponsored entity mortgage-backed securities
|
10,573,476 | 758,110 | (2,543 | ) | 11,329,043 | |||||||||||
Totals
|
$ | 44,610,801 | $ | 815,254 | $ | (1,122,742 | ) | $ | 44,303,313 | |||||||
December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gain
|
Loss
|
Value
|
|||||||||||||
Held to Maturity
|
||||||||||||||||
US treasury and government sponsored entity mortgage-backed securities
|
$ | 2,467,418 | $ | 171,307 | $ | — | $ | 2,638,725 | ||||||||
Totals
|
$ | 2,467,418 | $ | 171,307 | $ | — | $ | 2,638,725 | ||||||||
Available for Sale
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
Municipal
|
$ | 1,419,971 | $ | 11,410 | $ | — | $ | 1,431,381 | ||||||||
Corporate
|
8,198,927 | — | (1,795,691 | ) | 6,403,326 | |||||||||||
Equity securities
|
2,596 | 13,562 | (1,777 | ) | 14,381 | |||||||||||
US treasury and government sponsored entity mortgage-backed securities
|
12,608,714 | 795,963 | — | 13,404,677 | ||||||||||||
Totals
|
$ | 22,230,208 | $ | 820,935 | $ | (1,797,468 | ) | $ | 21,253,675 |
June 30, 2011
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
Fair Value
|
Loss
|
Fair Value
|
Loss
|
Fair Value
|
Loss
|
|||||||||||||||||||
Debt securities - Corporate
|
$ | 987,500 | $ | (42,074 | ) | $ | 3,595,542 | $ | (1,076,457 | ) | $ | 4,583,042 | $ | (1,118,531 | ) | |||||||||
US treasury and government sponsored entity mortgage-backed securities
|
549,965 | (2,543 | ) | — | — | 549,965 | (2,543 | ) | ||||||||||||||||
Equity securities
|
928 | (1,668 | ) | — | — | 928 | (1,668 | ) | ||||||||||||||||
Totals
|
$ | 1,538,393 | $ | (46,285 | ) | $ | 3,595,542 | $ | (1,076,457 | ) | $ | 5,133,935 | $ | (1,122,742 | ) |
December 31, 2010
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
Fair Value
|
Loss
|
Fair Value
|
Loss
|
Fair Value
|
Loss
|
|||||||||||||||||||
Debt securities - Corporate
|
$ | 978,030 | $ | (52,429 | ) | $ | 5,425,006 | $ | (1,743,262 | ) | $ | 6,403,036 | $ | (1,795,691 | ) | |||||||||
Equity securities
|
819 | (1,777 | ) | — | — | 819 | (1,777 | ) | ||||||||||||||||
Totals
|
$ | 978,849 | $ | (52,429 | ) | $ | 5,425,006 | $ | (1,743,262 | ) | $ | 6,403,855 | $ | (1,797,468 | ) |
2011
|
2010
|
|||||||
Credit component of OTTI as of January 1
|
$ | 3,000,000 | $ | 3,000,000 | ||||
Additions for credit related OTTI charges on previously unimpaired securities
|
— | — | ||||||
Reductions for securities sold during the period
|
— | — | ||||||
Reductions for increases in cash flows expected to be collected and recognized over the remaining life of the security
|
— | — | ||||||
Additional increases as a result of impairment charges recognized on investments for which an OTTI was previously recognized
|
— | — | ||||||
Credit component of OTTI as of June 30,
|
$ | 3,000,000 | $ | 3,000,000 |
June 30, 2011
|
June 30, 2010
|
|||
Future loss rate assumption per annum
|
.8% to 1.2%
|
.8% to 1.2%
|
||
Expected cumulative loss percentage
|
27.8%
|
27.8%
|
||
Cumulative loss percentage to date
|
37.0% to 33.2%
|
37.0% to 33.2%
|
||
Remaining life
|
30 years
|
31 years
|
June 30, 2011
|
||||||||||||||||
Held to Maturity
|
Available for Sale Securities
|
|||||||||||||||
Amortized
|
Estimated
|
Amortized
|
Estimated
|
|||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Due within 1 year
|
$ | 1,000,000 | $ | 1,000,000 | $ | — | $ | — | ||||||||
Due after 1 year through 5 years
|
— | — | 6,000,000 | 5,989,950 | ||||||||||||
Due after 5 years through 10 years
|
— | — | 20,005,000 | 20,022,953 | ||||||||||||
Due after 10 years
|
— | — | 8,029,729 | 6,946,685 | ||||||||||||
Total
|
$ | 1,000,000 | $ | 1,000,000 | $ | 34,034,729 | $ | 32,959,588 |
3. LOANS RECEIVABLE ─ NET
|
||||||||
Loans receivable consist of the following:
|
||||||||
June 30, 2011
|
December 31, 2010
|
|||||||
Real estate - mortgage:
|
||||||||
One-to-four family residential
|
$ | 520,901,062 | $ | 514,853,007 | ||||
Commercial and multi-family
|
53,900,207 | 55,237,743 | ||||||
Total real estate-mortgage
|
574,801,269 | 570,090,750 | ||||||
Real estate - construction:
|
||||||||
Residential
|
7,941,147 | 7,785,191 | ||||||
Commercial
|
2,699,220 | 3,723,800 | ||||||
Total real estate - construction
|
10,640,367 | 11,508,991 | ||||||
Commercial
|
22,962,908 | 21,963,288 | ||||||
Consumer:
|
||||||||
Home equity
|
54,766,129 | 57,119,018 | ||||||
Other consumer loans
|
754,057 | 775,569 | ||||||
Total consumer loans
|
55,520,186 | 57,894,587 | ||||||
Total loans
|
663,924,730 | 661,457,616 | ||||||
Net deferred loan cost
|
2,984,357 | 2,870,467 | ||||||
Allowance for loan losses
|
(4,067,965 | ) | (3,988,076 | ) | ||||
Net total loans
|
$ | 662,841,122 | $ | 660,340,007 |
Changes in the allowance for loan losses are as follows:
|
||||||||
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Balance, beginning of period
|
$ | 3,988,076 | $ | 3,476,040 | ||||
Provision for loan loss
|
202,835 | 691,361 | ||||||
Charge-offs
|
122,946 | 42,987 | ||||||
Recoveries
|
— | — | ||||||
Balance, end of period
|
$ | 4,067,965 | $ | 4,124,414 |
June 30, 2011
|
December 31, 2010
|
|||||||
Real estate
|
||||||||
One-to-four family residential
|
$ | 5,287,199 | $ | 4,282,002 | ||||
Commercial and multi-family
|
328,582 | 729,289 | ||||||
Real estate construction
|
— | — | ||||||
Commercial
|
203,656 | 134,238 | ||||||
Consumer
|
115,885 | 76,845 | ||||||
Total
|
$ | 5,935,322 | $ | 5,222,374 |
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater
Than
90 Days
|
Total Past
Due
|
Current
|
Total Loans
Receivable
|
|||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||
1-4 Family Residential
|
$ | 1,467,846 | $ | — | $ | 5,287,199 | $ | 6,755,045 | $ | 514,146,017 | $ | 520,901,062 | ||||||||||||
Commercial and Multi-Family
|
— | — | 328,582 | 328,582 | 53,571,625 | 53,900,207 | ||||||||||||||||||
Construction
|
— | — | — | — | 10,640,367 | 10,640,367 | ||||||||||||||||||
Commercial
|
483,258 | — | 203,657 | 686,915 | 22,275,993 | 22,962,908 | ||||||||||||||||||
Consumer
|
124,988 | 1,820 | 25,828 | 152,636 | 55,367,550 | 55,520,186 | ||||||||||||||||||
Total
|
$ | 2,076,092 | $ | 1,820 | $ | 5,845,266 | $ | 7,923,178 | $ | 656,001,552 | $ | 663,924,730 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Real Estate
|
||||||||||||||||||||||||
1-4 Family Residential
|
$ | 1,584,054 | $ | — | $ | 4,282,002 | $ | 5,866,056 | $ | 508,986,951 | $ | 514,853,007 | ||||||||||||
Commercial and Multi-Family
|
— | — | 729,289 | 729,829 | 54,508,454 | 55,237,743 | ||||||||||||||||||
Construction
|
— | — | — | — | 11,508,991 | 11,508,991 | ||||||||||||||||||
Commercial
|
— | — | 134,238 | 134,238 | 21,829,050 | 21,963,288 | ||||||||||||||||||
Consumer
|
81,600 | — | 76,845 | 158,445 | 57,736,142 | 57,894,587 | ||||||||||||||||||
Total
|
$ | 1,665,654 | $ | — | $ | 5,222,374 | $ | 6,888,028 | $ | 654,569,588 | $ | 661,457,616 |
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
|||||||||||||
June 30, 2011
|
||||||||||||||||
With no related allowance recorded
|
||||||||||||||||
Real Estate
|
||||||||||||||||
1-4 Family Residential
|
$ | 2,973,738 | $ | 2,973,738 | $ | — | $ | 495,623 | ||||||||
Commercial and Multi-Family
|
328,582 | 328,582 | — | 164,291 | ||||||||||||
Commercial
|
98,885 | 98,885 | — | 98,885 | ||||||||||||
Consumer
|
115,885 | 115,885 | — | 115,885 | ||||||||||||
With an allowance recorded
|
||||||||||||||||
Real Estate
|
||||||||||||||||
1-4 Family Residential
|
2,313,461 | 2,313,461 | 658,965 | 330,494 | ||||||||||||
Commercial and Multi-Family
|
— | — | — | — | ||||||||||||
Commercial
|
104,771 | 104,771 | 90,863 | 26,193 | ||||||||||||
Consumer
|
— | — | — | — | ||||||||||||
Total
|
||||||||||||||||
Real Estate
|
||||||||||||||||
1-4 Family Residential
|
$ | 5,287,199 | $ | 5,287,199 | $ | 658,965 | $ | 826,117 | ||||||||
Commercial and Multi-Family
|
328,582 | 328,582 | — | 164,291 | ||||||||||||
Commercial
|
203,656 | 203,656 | 90,863 | 125,078 | ||||||||||||
Consumer
|
115,885 | 115,885 | — | 115,885 | ||||||||||||
December 31, 2010
|
||||||||||||||||
With no related allowance recorded
|
||||||||||||||||
Real Estate
|
||||||||||||||||
1-4 Family Residential
|
$ | 2,997,524 | $ | 2,997,524 | $ | — | $ | 428,218 | ||||||||
Commercial and Multi-Family
|
729,289 | 729,289 | — | 243,096 | ||||||||||||
Commercial
|
98,885 | 98,885 | — | 98,885 | ||||||||||||
Consumer
|
27,919 | 27,919 | — | 27,919 | ||||||||||||
With an allowance recorded
|
||||||||||||||||
Real Estate
|
||||||||||||||||
1-4 Family Residential
|
1,284,478 | 1,284,478 | 359,301 | 256,895 | ||||||||||||
Commercial and Multi-Family
|
— | — | — | — | ||||||||||||
Commercial
|
35,353 | 35,353 | 73,285 | 35,353 | ||||||||||||
Consumer
|
48,926 | 48,926 | 49,161 | 48,926 | ||||||||||||
Total
|
||||||||||||||||
Real Estate
|
||||||||||||||||
1-4 Family Residential
|
$ | 4,282,002 | $ | 4,282,002 | $ | 359,301 | $ | 685,113 | ||||||||
Commercial and Multi-Family
|
729,289 | 729,289 | — | 243,096 | ||||||||||||
Commercial
|
134,238 | 134,238 | 73,285 | 134,238 | ||||||||||||
Consumer
|
76,845 | 76,845 | 49,161 | 76,845 |
Real Estate
|
||||||||||||||||||||||||||||||||||||||||
1-4 Family
Residential
|
Commercial
and Multi-Family
|
Construction
|
Commercial
|
Consumer
|
||||||||||||||||||||||||||||||||||||
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/30/2010
|
|||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||||||||||
Special Mention
|
$ | 1,156,740 | $ | 927,945 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 130,552 | $ | 197,031 | ||||||||||||||||||||
Substandard
|
8,504,487 | 8,291,507 | 1,480,885 | 1,310,396 | — | — | 281,058 | 476,895 | 389,447 | 302,046 | ||||||||||||||||||||||||||||||
Doubtful and Loss
|
288,977 | 288,977 | — | — | — | — | 104,771 | 70,686 | — | 48,926 | ||||||||||||||||||||||||||||||
Total
|
$ | 9,950,204 | $ | 9,508,429 | $ | 1,480,885 | $ | 1,310,396 | $ | — | $ | — | $ | 385,829 | $ | 547,581 | $ | 519,999 | $ | 548,003 |
Real Estate
|
||||||||||||||||||||||||||||||||||||||||
1-4 Family
Residential
|
Commercial
and Multi-Family
|
Construction
|
Commercial
|
Consumer
|
||||||||||||||||||||||||||||||||||||
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/31/2010
|
6/30/2011
|
12/30/2010
|
|||||||||||||||||||||||||||||||
Performing
|
$ | 520,901,062 | $ | 510,571,005 | $ | 53,900,207 | $ | 54,508,454 | $ | 10,640,367 | $ | 11,508,991 | $ | 22,962,908 | $ | 21,829,050 | $ | 55,520,186 | $ | 57,817,742 | ||||||||||||||||||||
Non-Performing
|
5,287,199 | 4,282,002 | 328,582 | 729,289 | — | — | 203,657 | 134,238 | 115,885 | 76,845 | ||||||||||||||||||||||||||||||
Total
|
$ | 526,188,261 | $ | 514,853,007 | $ | 54,228,789 | $ | 55,237,743 | $ | 10,640,367 | $ | 11,508,991 | $ | 23,166,565 | $ | 21,963,288 | $ | 55,636,071 | $ | 57,894,587 |
Real Estate
|
||||||||||||||||||||||||
1-4 Family
Residential
|
Commercial
and
Multi-Family
|
Construction
|
Commercial
|
Consumer
|
Total
|
|||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||
Beginning Balance
|
$ | 2,731,325 | $ | 281,762 | $ | 32,494 | $ | 268,411 | $ | 674,084 | $ | 3,988,076 | ||||||||||||
Charge-offs
|
(74,019 | ) | — | — | — | (48,927 | ) | (122,946 | ) | |||||||||||||||
Recoveries
|
— | — | — | — | — | — | ||||||||||||||||||
Provision for loan losses
|
300,867 | 42,444 | (1,571 | ) | (18,984 | ) | (119,921 | ) | 202,835 | |||||||||||||||
Ending balance
|
$ | 2,958,173 | $ | 324,206 | $ | 30,923 | $ | 249,427 | $ | 505,236 | $ | 4,067,965 | ||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 658,965 | $ | — | $ | — | $ | 90,863 | $ | — | $ | 749,828 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 2,299,208 | $ | 324,206 | $ | 30,923 | $ | 158,564 | $ | 505,236 | $ | 3,318,137 | ||||||||||||
Loan Receivables:
|
||||||||||||||||||||||||
Ending balance
|
$ | 520,901,062 | $ | 53,900,207 | $ | 10,640,367 | $ | 22,962,908 | $ | 55,520,186 | $ | 663,924,730 | ||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 5,287,199 | $ | 328,582 | $ | — | $ | 203,656 | $ | 115,885 | $ | 5,935,322 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 515,613,863 | $ | 53,571,625 | $ | 10,640,367 | $ | 22,759,252 | $ | 55,404,301 | $ | 657,989,408 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||
Beginning Balance
|
$ | 2,220,529 | $ | 524,107 | $ | 49,680 | $ | 275,826 | $ | 405,898 | $ | 3,476,040 | ||||||||||||
Charge-offs
|
(16,316 | ) | (35,347 | ) | — | (10,860 | ) | (317,232 | ) | (379,755 | ) | |||||||||||||
Recoveries
|
— | — | — | — | — | — | ||||||||||||||||||
Provision for loan losses
|
527,112 | (206,998 | ) | (17,186 | ) | 3,445 | 585,418 | 891,791 | ||||||||||||||||
Ending balance
|
$ | 2,731,325 | $ | 281,762 | $ | 32,494 | $ | 268,411 | $ | 674,084 | $ | 3,988,076 | ||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 359,300 | $ | — | $ | — | $ | 73,285 | $ | 49,510 | $ | 482,095 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 2,372,025 | $ | 281,762 | $ | 32,494 | $ | 195,126 | $ | 624,574 | $ | 3,505,981 | ||||||||||||
Loan Receivables:
|
||||||||||||||||||||||||
Ending balance
|
$ | 514,583,007 | $ | 55,237,743 | $ | 11,508,991 | $ | 21,963,288 | $ | 57,894,587 | $ | 661,457,616 | ||||||||||||
Ending balance: individually evaluated for impairment
|
$ | 4,282,002 | $ | 729,289 | $ | — | $ | 134,238 | $ | 76,845 | $ | 5,222,374 | ||||||||||||
Ending balance: collectively evaluated for impairment
|
$ | 510,571,005 | $ | 54,508,454 | $ | 11,508,991 | $ | 21,829,050 | $ | 57,817,742 | $ | 6,656,235,242 |
4. DEPOSITS
|
||||||||||||||||
Deposits consist of the following major classifications:
|
||||||||||||||||
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Amount
|
Interest Rate
|
Amount
|
Interest Rate
|
|||||||||||||
NOW and other demand deposit accounts
|
$ | 310,596,700 | 0.51 | % | $ | 289,903,528 | 0.66 | % | ||||||||
Passbook savings and club accounts
|
110,579,419 | 0.70 | % | 102,467,025 | 1.07 | % | ||||||||||
Subtotal
|
421,536,119 | 392,370,553 | ||||||||||||||
Certificates with original maturities:
|
||||||||||||||||
Within one year
|
72,992,455 | 0.88 | % | 93,134,491 | 1.11 | % | ||||||||||
One to three years
|
102,341,603 | 2.01 | % | 94,347,156 | 2.17 | % | ||||||||||
Three years and beyond
|
24,318,622 | 3.32 | % | 23,482,226 | 3.48 | % | ||||||||||
Total certificates
|
199,652,680 | 210,963,873 | ||||||||||||||
Total
|
$ | 621,188,799 | $ | 603,334,426 |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Numerator
|
$ | 1,157,517 | $ | 1,238,998 | $ | 2,362,103 | $ | 2,575,322 | ||||||||
Denominators:
|
||||||||||||||||
Basic average shares outstanding
|
6,738,827 | 6,826,946 | 6,734,602 | 6,822,739 | ||||||||||||
Effect of dilutive securities
|
70,250 | 7,579 | 70,614 | 12,613 | ||||||||||||
Diluted average shares outstanding
|
6,809,077 | 6,834,525 | 6,805,216 | 6,835,352 | ||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.17 | $ | 0.18 | $ | 0.35 | $ | 0.38 | ||||||||
Diluted
|
$ | 0.17 | $ | 0.18 | $ | 0.35 | $ | 0.38 |
6.
|
STOCK-BASED COMPENSATION
|
Six Months Ended
June 30, 2011
|
Six Months Ended
June 30, 2010
|
|||||||||||||||
Number
of shares
|
Weighted
average
exercise price
|
Number
of shares
|
Weighted
average
exercise price
|
|||||||||||||
Outstanding at the beginning of the period
|
587,504 | $ | 11.92 | 373,592 | $ | 13.10 | ||||||||||
Granted
|
13,600 | $ | 12.06 | — | — | |||||||||||
Exercised
|
— | — | — | — | ||||||||||||
Forfeited
|
— | — | 6,595 | $ | 13.19 | |||||||||||
Outstanding at the end of the period
|
601,104 | $ | 11.92 | 366,997 | $ | 13.10 | ||||||||||
Exercisable at the end of the period
|
329,144 | $ | 13.16 | 275,968 | $ | 13.17 | ||||||||||
Stock options vested or expected to vest (1)
|
540,993 | $ | 11.92 | 330,298 | $ | 13.17 |
Options Outstanding
|
|||||||||
Date Issued
|
Number of
Shares
|
Weighted Average
Exercise Price
|
Weighted Average
Remaining
Contractual Life
|
||||||
August 10, 2005
|
294,127 | $ | 13.19 |
4.1 years
|
|||||
November 21, 2006
|
19,784 | $ | 14.78 |
5.3 years
|
|||||
November 20, 2007
|
31,983 | $ | 11.32 |
6.3 years
|
|||||
August 18, 2010
|
241,610 | $ | 10.21 |
9.1 years
|
|||||
March 15, 2011
|
13,600 | $ | 12.06 |
9.6 years
|
Six months ended June 30, 2011
|
Six months ended June 30, 2010
|
|||||||||||||||
Number of
shares
|
Weighted avg
grant date fair
value
|
Number of
shares
|
Weighted avg
grant date fair
value
|
|||||||||||||
Beginning of period
|
99,000 | $ | 10.21 | 30,125 | $ | 13.19 | ||||||||||
Issued
|
4,950 | 12.06 | — | — | ||||||||||||
Forfeited
|
4,950 | 10.21 | — | — | ||||||||||||
Vested
|
— | — | — | — | ||||||||||||
Outstanding at June 30, 2011
|
99,000 | $ | 10.30 | 30,125 | $ | 13.19 |
7.
|
INCOME TAXES
|
8.
|
DECLARATION OF DIVIDEND
|
9.
|
FAIR VALUE MEASUREMENTS
|
Category Used for Fair Value Measurement
|
||||||||||||
Assets:
|
Level 1
|
Level 2
|
Level 3
|
|||||||||
Securities available for sale:
|
||||||||||||
U.S. Government agencies and mortgage-backed securities
|
$ | — | $ | 36,357,366 | $ | — | ||||||
State and municipal obligations
|
— | 831,353 | — | |||||||||
Corporate securities
|
— | 7,099,712 | 200 | |||||||||
Equity securities
|
14,682 | — | — | |||||||||
Totals
|
$ | 14,682 | $ | 44,288,431 | $ | 200 |
Category Used for Fair Value Measurement
|
||||||||||||
Assets:
|
Level 1
|
Level 2
|
Level 3
|
|||||||||
Securities available for sale:
|
||||||||||||
U.S. Government agencies and mortgage-backed securities
|
$ | — | $ | 13,404,677 | $ | — | ||||||
State and municipal obligations
|
— | 1,431,381 | — | |||||||||
Corporate securities
|
— | 6,403,036 | 200 | |||||||||
Equity securities
|
14,381 | — | — | |||||||||
Totals
|
$ | 14,381 | $ | 21,239,094 | $ | 200 |
Fair Value Measurement Using Significant
Unobservable Inputs (Level 3)
|
||||||||
Trust Preferred
Securities
|
Total
|
|||||||
Balance, January 1, 2011
|
$ | 200 | $ | 200 | ||||
Total gains (losses), realized/unrealized:
|
— | — | ||||||
Included in earnings (1)
|
— | — | ||||||
Included in accumulated other comprehensive loss
|
— | — | ||||||
Purchases, maturities, prepayments and call, net
|
— | — | ||||||
Transfers into Level 3 (2)
|
— | — | ||||||
Balance, June 30, 2011
|
$ | 200 | $ | 200 |
Fair Value Measurement Using Significant
Unobservable Inputs (Level 3)
|
||||||||
Trust Preferred
Securities
|
Total
|
|||||||
Balance, January 1, 2010
|
$ | 200 | $ | 200 | ||||
Total gains (losses), realized/unrealized:
|
||||||||
Included in earnings (1)
|
— | — | ||||||
Included in accumulated other comprehensive loss
|
— | — | ||||||
Purchases, maturities, prepayments and call, net
|
— | — | ||||||
Transfers into Level 3 (2)
|
— | — | ||||||
Balance, June 30, 2010
|
$ | 200 | $ | 200 |
Category Used for Fair Value
|
Total
|
|||||||||||||||||||
Measurement
|
(Losses)
|
|||||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
Gains
|
||||||||||||||||
June 30, 2011
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Impaired loans
|
$ | 4,186,838 | $ | — | $ | — | $ | 4,186,838 | $ | (390,679 | ) | |||||||||
Real estate owned
|
97,500 | — | — | 97,500 | — | |||||||||||||||
June 30, 2010
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Impaired loans
|
$ | 1,866,185 | $ | — | $ | — | $ | 1,866,185 | $ | (483,138 | ) | |||||||||
Real estate owned
|
97,500 | — | — | 97,500 | — |
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying Amount
|
Estimated Fair
Value
|
Carrying Amount
|
Estimated Fair
Value
|
|||||||||||||
Assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 105,046,206 | $ | 105,046,206 | $ | 110,865,154 | $ | 110,865,154 | ||||||||
Investment securities:
|
||||||||||||||||
Held to maturity
|
3,170,927 | 3,350,289 | 2,467,418 | 2,683,725 | ||||||||||||
Available for sale
|
44,303,313 | 44,303,313 | 21,253,675 | 21,253,675 | ||||||||||||
Loans receivable, net
|
662,841,122 | 670,210,019 | 660,340,007 | 672,130,581 | ||||||||||||
Federal Home Loan Bank stock
|
6,250,700 | 6,250,700 | 6,271,600 | 6,271,600 | ||||||||||||
Liabilities:
|
||||||||||||||||
NOW and other demand deposit accounts
|
310,956,700 | 323,408,700 | 289,903,528 | 297,533,528 | ||||||||||||
Passbook savings and club accounts
|
110,579,419 | 119,420,419 | 102,467,025 | 107,987,025 | ||||||||||||
Certificates
|
199,652,680 | 199,949,350 | 210,963,873 | 210,964,376 | ||||||||||||
Advances from Federal Home Loan Bank
|
110,000,000 | 122,086,120 | 110,000,000 | 121,188,927 | ||||||||||||
Junior subordinated debenture
|
15,464,000 | 10,824,800 | 15,464,000 | 9,278,400 |
10.
|
REAL ESTATE OWNED
|
Residential Property
|
Total
|
|||||||
Balance, January 1, 2011
|
$ | 97,500 | $ | 97,500 | ||||
Transfers into Real Estate Owned
|
— | — | ||||||
Sales of Real Estate Owned
|
— | — | ||||||
Balance, June 30, 2011
|
$ | 97,500 | $ | 97,500 |
11.
|
SUBSEQUENT EVENTS - ACQUISITION OF CBHC FINANCIALCORP, INC.
|
June 30,
2011
|
December 31,
2010
|
$ change
|
% change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real estate – mortgage:
|
||||||||||||||||
One-to-four-family residential
|
$ | 520,901 | $ | 514,853 | $ | 6,048 | 1.2 | % | ||||||||
Commercial and multi-family
|
53,900 | 55,238 | (1,338 | ) | (2.4 | ) | ||||||||||
Total real estate – mortgage
|
574,801 | 570,091 | 4,710 | 0.8 | ||||||||||||
Real estate – construction:
|
||||||||||||||||
Residential
|
7,941 | 7,785 | 156 | 2.0 | ||||||||||||
Commercial
|
2,699 | 3,724 | (1,025 | ) | (27.5 | ) | ||||||||||
Total real estate – construction
|
10,640 | 11,509 | (869 | ) | (7.6 | ) | ||||||||||
Commercial
|
22,963 | 21,963 | 1,000 | 4.6 | ||||||||||||
Consumer
|
||||||||||||||||
Home equity
|
54,766 | 57,119 | (2,353 | ) | (4.1 | ) | ||||||||||
Other consumer loans
|
754 | 776 | (22 | ) | (2.8 | ) | ||||||||||
Total consumer loans
|
55,520 | 57,895 | (2,375 | ) | (4.1 | ) | ||||||||||
Total loans
|
663,924 | 661,458 | 2,466 | 0.4 | ||||||||||||
Net deferred loan cost
|
2,985 | 2,870 | 115 | 4.0 | ||||||||||||
Allowance for loan losses
|
(4,068 | ) | (3,988 | ) | (80 | ) | 2.0 | |||||||||
Net total loans
|
$ | 662,841 | $ | 660,340 | $ | 2,501 | 0.4 | % |
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In thousands)
|
||||||||
Allowance for loan losses:
|
||||||||
Allowance at beginning of period
|
$ | 3,988 | $ | 3,476 | ||||
Provision for loan losses
|
203 | 691 | ||||||
Recoveries
|
— | — | ||||||
Charge-offs
|
123 | 43 | ||||||
Net (charge-offs) recoveries
|
(123 | ) | (43 | ) | ||||
Allowance at end of period
|
$ | 4,068 | $ | 4,124 | ||||
Allowance for loan losses as a percent of total loans
|
0.61 | % | 0.61 | % | ||||
Allowance for loan losses as a percent of non-performing loans
|
68.6 | % | 128.9 | % |
June 30,
2011
|
December 31,
2010
|
|||||||
(Dollars in thousands)
|
||||||||
Nonaccrual loans:
|
||||||||
Real estate mortgage loans
|
$ | 5,287 | $ | 4,282 | ||||
Construction
|
328 | 729 | ||||||
Commercial
|
204 | 134 | ||||||
Consumer loans
|
116 | 77 | ||||||
Total of non-accrual and 90 days or more past due loans
|
5,935 | 5,222 | ||||||
Real estate owned
|
98 | 98 | ||||||
Other nonperforming assets
|
— | — | ||||||
Total non-performing assets
|
$ | 6,033 | $ | 5,320 | ||||
Troubled debt restructurings
|
— | — | ||||||
Troubled debt restructurings and total non-performing assets
|
$ | 6,033 | $ | 5,320 | ||||
Total non-performing loans to total loans
|
0.90 | % | 0.79 | % | ||||
Total non-performing loans to total assets
|
0.69 | % | 0.62 | % | ||||
Total non-performing assets and troubled debt restructurings to total assets
|
0.70 | % | 0.63 | % |
June 30,
|
December 31,
|
|||||||||||||||
2011
|
2010
|
$ change
|
% change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Non-interest-bearing demand deposits
|
$ | 67,536 | $ | 62,071 | $ | 5,465 | 8.8 | % | ||||||||
Interest-bearing demand deposits
|
243,421 | 227,832 | 15,589 | 6.8 | ||||||||||||
Savings accounts
|
110,579 | 102,467 | 8,112 | 7.9 | ||||||||||||
Time deposits
|
199,653 | 210,964 | (11,311 | ) | (5.4 | ) | ||||||||||
Total
|
$ | 621,189 | $ | 603,334 | $ | 17,855 | 3.0 | % |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands,
except per share data)
|
(Dollars in thousands,
except per share data)
|
|||||||||||||||
Net income
|
$ | 1,158 | $ | 1,239 | $ | 2,362 | $ | 2,575 | ||||||||
Basic and diluted earnings per share
|
$ | 0.17 | $ | 0.18 | $ | 0.35 | $ | 0.38 | ||||||||
Return on average assets (annualized)
|
0.53 | % | 0.62 | % | 0.54 | % | 0.65 | % | ||||||||
Return on average equity (annualized)
|
4.51 | % | 4.97 | % | 4.62 | % | 5.20 | % |
Three Months Ended
June 30,
|
||||||||||||||||
2011
|
2010
|
$ change
|
% change
|
|||||||||||||
(Dollars in thousands) | ||||||||||||||||
INTEREST INCOME:
|
||||||||||||||||
Loans
|
$ | 8,629 | $ | 9,059 | $ | (430 | ) | (4.7 | )% | |||||||
Investment securities
|
538 | 435 | 103 | 23.7 | ||||||||||||
Total interest income
|
9,167 | 9,494 | (327 | ) | (3.4 | ) | ||||||||||
INTEREST EXPENSE:
|
||||||||||||||||
Deposits
|
1,495 | 1,932 | 437 | (22.6 | ) | |||||||||||
Borrowings
|
1,510 | 1,510 | — | — | ||||||||||||
Total interest expense
|
3,005 | 3,442 | 437 | (12.7 | ) | |||||||||||
Net interest income
|
$ | 6,162 | $ | 6,052 | $ | 110 | 1.8 |
Six Months Ended
June 30,
|
||||||||||||||||
2011
|
2010
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
INTEREST INCOME:
|
||||||||||||||||
Loans
|
$ | 17,184 | $ | 18,089 | $ | (905 | ) | (5.0 | )% | |||||||
Investment securities
|
1,021 | 910 | 111 | 12.2 | ||||||||||||
Total interest income
|
$ | 18,205 | $ | 18,999 | $ | (794 | ) | (4.2 | ) | |||||||
INTEREST EXPENSE:
|
||||||||||||||||
Deposits
|
$ | 3,061 | $ | 3,958 | $ | (897 | ) | (22.7 | ) | |||||||
Borrowings
|
3,008 | 3,008 | — | — | ||||||||||||
Total interest expense
|
6,069 | 6,966 | (897 | ) | (12.9 | ) | ||||||||||
Net interest income
|
$ | 12,136 | $ | 12,033 | $ | 103 | 0.9 |
Average Balance Tables
|
||||||||||||||||||||||||
Three Months Ended June 30, 2011
|
Three Months Ended June 30, 2010
|
|||||||||||||||||||||||
Average
Balance
|
Interest
and
Dividends
|
Yield/
Cost
|
Average
Balance
|
Interest
and
Dividends
|
Yield/
Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 661,680 | $ | 8,629 | 5.22 | % | $ | 668,691 | $ | 9,059 | 5.42 | % | ||||||||||||
Investment securities
|
45,409 | 538 | 4.74 | % | 27,271 | 435 | 6.38 | % | ||||||||||||||||
Total interest-earning assets
|
707,089 | 9,167 | 5.19 | % | 695,962 | 9,494 | 5.46 | % | ||||||||||||||||
Noninterest-earning assets
|
171,934 | 103,740 | ||||||||||||||||||||||
Total assets
|
$ | 879,023 | $ | 799,702 | ||||||||||||||||||||
Liabilities and equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$ | 262,258 | 418 | 0.64 | % | $ | 209,533 | 572 | 1.09 | % | ||||||||||||||
Savings accounts
|
110,178 | 192 | 0.70 | % | 83,977 | 220 | 1.05 | % | ||||||||||||||||
Certificates of deposit
|
202,473 | 885 | 1.75 | % | 213,787 | 1,140 | 2.13 | % | ||||||||||||||||
Total interest-bearing deposits
|
574,909 | 1,495 | 1.04 | % | 507,297 | 1,932 | 1.52 | % | ||||||||||||||||
FHLB advances
|
110,000 | 1,175 | 4.27 | % | 110,000 | 1,175 | 4.27 | % | ||||||||||||||||
Subordinated debt
|
15,464 | 335 | 8.67 | % | 15,464 | 335 | 8.67 | % | ||||||||||||||||
Total borrowings
|
125,464 | 1,510 | 4.82 | % | 125,464 | 1,510 | 4.82 | % | ||||||||||||||||
Total interest-bearing liabilities
|
700,373 | 3,005 | 1.72 | % | 632,761 | 3,442 | 2.18 | % | ||||||||||||||||
Noninterest-bearing demand accounts
|
66,246 | 58,291 | ||||||||||||||||||||||
Other liabilities
|
9,636 | 8,916 | ||||||||||||||||||||||
Total liabilities
|
776,255 | 699,968 | ||||||||||||||||||||||
Stockholders’ equity
|
102,768 | 99,734 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 879,023 | $ | 799,702 | ||||||||||||||||||||
Net interest income
|
$ | 6,162 | $ | 6,052 | ||||||||||||||||||||
Interest rate spread
|
3.47 | % | 3.28 | % | ||||||||||||||||||||
Net interest margin
|
3.49 | % | 3.48 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
100.96 | % | 109.99 | % |
Average Balance Tables
|
Six Months Ended June 30, 2011
|
Six Months Ended June 30, 2010
|
||||||||||||||||||||||
Average
Balance
|
Interest
and
Dividends
|
Yield/
Cost
|
Average
Balance
|
Interest
and
Dividends
|
Yield/
Cost
|
|||||||||||||||||||
|
(Dollars in thousands)
|
(Dollars in thousands)
|
||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans
|
$ | 659,842 | $ | 17,184 | 5.21 | % | $ | 666,240 | $ | 18,089 | 5.43 | % | ||||||||||||
Investment securities
|
38,073 | 1,021 | 5.36 | % | 27,869 | 910 | 6.53 | % | ||||||||||||||||
Total interest-earning assets
|
697,915 | 18,205 | 5.22 | % | 694,109 | 18,999 | 5.47 | % | ||||||||||||||||
Noninterest-earning assets
|
178,143 | 98,455 | ||||||||||||||||||||||
Total assets
|
$ | 875,958 | $ | 792,564 | ||||||||||||||||||||
Liabilities and equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing demand deposits
|
$ | 261,955 | $ | 850 | 0.65 | % | $ | 208,073 | $ | 1,177 | 1.13 | % | ||||||||||||
Savings accounts
|
107,364 | 399 | 0.74 | % | 80,402 | 437 | 1.09 | % | ||||||||||||||||
Certificates of deposit
|
205,188 | 1,812 | 1.77 | % | 214,086 | 2,344 | 2.19 | % | ||||||||||||||||
Total interest-bearing deposits
|
574,507 | 3,061 | 1.07 | % | 502,561 | 3,958 | 1.58 | % | ||||||||||||||||
FHLB advances
|
110,000 | 2,338 | 4.25 | % | 110,000 | 2,338 | 4.25 | % | ||||||||||||||||
Subordinated debt
|
15,464 | 670 | 8.67 | % | 15,464 | 670 | 8.67 | % | ||||||||||||||||
Total borrowings
|
125,464 | 3,008 | 4.80 | % | 125,464 | 3,008 | 4.80 | % | ||||||||||||||||
Total interest-bearing liabilities
|
699,971 | 6,069 | 1.73 | % | 628,025 | 6,966 | 2.22 | % | ||||||||||||||||
Noninterest-bearing demand accounts
|
64,380 | 56,571 | ||||||||||||||||||||||
Other
|
9,417 | 8,877 | ||||||||||||||||||||||
Total liabilities
|
773,768 | 693,473 | ||||||||||||||||||||||
Stockholders’ equity
|
102,190 | 99,091 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 875,958 | $ | 792,564 | ||||||||||||||||||||
Net interest income
|
$ | 12,136 | $ | 12,033 | ||||||||||||||||||||
Interest rate spread
|
3.48 | % | 3.26 | % | ||||||||||||||||||||
Net interest margin
|
3.48 | % | 3.47 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
99.71 | % | 110.52 | % |
Three Months Ended June 30,
|
||||||||||||
2011
|
2010
|
% Change
|
||||||||||
(Dollars in thousands)
|
||||||||||||
OTHER INCOME:
|
||||||||||||
Service charges
|
$ | 395 | $ | 445 | (11.2 | )% | ||||||
Cash surrender value of life insurance
|
130 | 139 | (6.5 | ) | ||||||||
Other
|
337 | 302 | 11.6 | |||||||||
Total other income
|
$ | 862 | $ | 886 | (2.7 | )% |
Six Months Ended June 30,
|
||||||||||||
2011
|
2010
|
% Change
|
||||||||||
(Dollars in thousands)
|
||||||||||||
OTHER INCOME:
|
||||||||||||
Service charges
|
$ | 754 | $ | 881 | (14.4 | ) % | ||||||
Cash surrender value of life insurance
|
259 | 274 | (5.5 | ) | ||||||||
Other
|
651 | 539 | 20.8 | |||||||||
Total other income
|
$ | 1,664 | $ | 1,694 | (1.8 | )% |
Three Months Ended June 30,
|
||||||||||||
2011
|
2010
|
% Change
|
||||||||||
(Dollars in thousands)
|
||||||||||||
OTHER EXPENSE:
|
||||||||||||
Salaries and employee benefits
|
$ | 2,568 | $ | 2,452 | 4.7 | % | ||||||
Occupancy and equipment
|
1,134 | 981 | 15.6 | |||||||||
Federal insurance premiums
|
186 | 163 | 14.1 | |||||||||
Advertising
|
145 | 112 | 29.5 | |||||||||
Professional services
|
310 | 204 | 52.0 | |||||||||
Real estate owned expense
|
1 | 2 | (50.0 | ) | ||||||||
Other operating expense
|
466 | 461 | 1.1 | |||||||||
Total other expense
|
$ | 4,810 | $ | 4,375 | 9.9 | % |
Six Months Ended June 30,
|
||||||||||||
2011
|
2010
|
% Change
|
||||||||||
(Dollars in thousands)
|
||||||||||||
OTHER EXPENSE:
|
||||||||||||
Salaries and employee benefits
|
$ | 5,181 | $ | 4,949 | 4.7 | % | ||||||
Occupancy and equipment
|
2,118 | 1,958 | 8.2 | |||||||||
Federal insurance premiums
|
373 | 330 | 13.0 | |||||||||
Advertising
|
251 | 228 | 10.1 | |||||||||
Professional services
|
605 | 382 | 58.4 | |||||||||
Real estate owned expense
|
3 | 3 | — | |||||||||
Other operating expense
|
935 | 977 | (4.3 | ) | ||||||||
Total other expense
|
$ | 9,466 | $ | 8,827 | 7.2 | % |
At March 31, 2011
Percentage Change in Estimated
Net Interest Income Over
|
||||||||
12 Months
|
24 Months
|
|||||||
200 basis point increase in rates
|
10.91 | % | 18.33 | % | ||||
100 basis point decrease in rates
|
N/A | N/A |
Net Portfolio Value
(Dollars in Thousands)
|
Net Portfolio Value as % of
Portfolio Value of Assets
|
|||||||||||||||||||
Basis Point (“bp”)
Change in Rates
|
$ Amount
|
$ Change
|
% Change
|
NPV Ratio
|
Change
|
|||||||||||||||
300 bp
|
$ | 82,296 | $ | (34,275 | ) | (29 | )% | 9.85 | % | (317 | )bp | |||||||||
200
|
96,571 | (20,000 | ) | (17 | ) | 11.27 | (176 | ) | ||||||||||||
100
|
109,226 | (7,346 | ) | (6 | ) | 12.44 | (59 | ) | ||||||||||||
50
|
113,739 | (2,832 | ) | (2 | ) | 12.82 | (21 | ) | ||||||||||||
0
|
116,571 | 13.02 | ||||||||||||||||||
(50)
|
116,641 | 69 | — | 12.96 | (7 | ) | ||||||||||||||
(100)
|
116,921 | 349 | — | 12.91 | (11 | ) |
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
|
|
32.0
|
Section 1350 Certification of Chief Executive Officer and Chief Financial Office.
|
|
101.0
|
The following materials from the Ocean Shore Holding Co. Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Financial Condition, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Cash Flows and (iv) related notes.
|
OCEAN SHORE HOLDING CO.
|
|
(Registrant)
|
|
Date: August 10, 2011
|
/s/ Steven E. Brady
|
Steven E. Brady
|
|
President and Chief Executive Officer
|
|
Date: August 10, 2011
|
/s/ Donald F. Morgenweck
|
Donald F. Morgenweck
|
|
Chief Financial Officer and Senior Vice President
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Ocean Shore Holding Co.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 10, 2011
|
/s/ Steven E. Brady
|
Steven E. Brady
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Ocean Shore Holding Co.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 10, 2011
|
/s/ Donald F. Morgenweck
|
Donald F. Morgenweck
|
|
Chief Financial Officer and Senior Vice President
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.
|
Date: August 10, 2011
|
/s/ Steven E. Brady
|
Steven E. Brady
|
|
President and Chief Executive Officer
|
|
Date: August 10, 2011
|
/s/ Donald F. Morgenweck
|
Donald F. Morgenweck
|
|
Chief Financial Officer and Senior Vice President
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION [Parenthetical] (USD $)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Investment securities held to maturity, Estimated fair value (in dollars) | $ 3,350,289 | $ 2,638,725 |
Investment securities available for sale,amortized cost (in dollars) | 44,610,801 | 22,230,208 |
Allowance for Loan Losses (in dollars) | $ 4,067,965 | $ 3,988,076 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares Issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 7,308,118 | 7,308,118 |
Common stock, shares outstanding | 7,296,780 | 7,296,780 |
Treasury stock, shares | 10,810 | 10,810 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
INTEREST AND DIVIDEND INCOME: | Â | Â | Â | Â |
Taxable interest and fees on loans | $ 8,629,480 | $ 9,058,506 | $ 17,184,052 | $ 18,089,112 |
Taxable interest on mortgage-backed securities | 151,799 | 220,838 | 316,435 | 454,831 |
Non-taxable interest on municipal securities | 10,473 | 19,060 | 21,119 | 36,400 |
Taxable interest and dividends on other investment securities | 375,780 | 195,749 | 683,654 | 418,499 |
Total interest and dividend income | 9,167,532 | 9,494,153 | 18,205,260 | 18,998,842 |
INTEREST EXPENSE: | Â | Â | Â | Â |
Interest on deposits | 1,494,677 | 1,931,453 | 3,060,664 | 3,957,788 |
Interest on borrowings | 1,510,333 | 1,510,334 | 3,007,765 | 3,007,753 |
Total interest expense | 3,005,010 | 3,441,787 | 6,068,429 | 6,965,541 |
NET INTEREST INCOME | 6,162,522 | 6,052,366 | 12,163,831 | 12,033,301 |
PROVISION FOR LOAN LOSSES | 128,035 | 539,700 | 202,835 | 691,361 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6,034,487 | 5,512,666 | 11,933,996 | 11,341,940 |
OTHER INCOME: | Â | Â | Â | Â |
Service charges | 394,590 | 445,159 | 754,386 | 881,111 |
Cash surrender value of life insurance | 130,365 | 138,800 | 258,833 | 273,584 |
Gain on call of AFS securities | 0 | 0 | 10,014 | 5 |
Other | 336,786 | 302,396 | 640,596 | 538,923 |
Total other income | 861,741 | 886,355 | 1,663,829 | 1,693,623 |
OTHER EXPENSE: | Â | Â | Â | Â |
Salaries and employee benefits | 2,568,056 | 2,452,437 | 5,180,749 | 4,948,865 |
Occupancy and equipment | 1,133,834 | 981,233 | 2,118,025 | 1,958,484 |
Federal insurance premiums | 186,188 | 162,519 | 373,268 | 330,431 |
Advertising | 145,457 | 111,800 | 251,487 | 227,775 |
Professional services | 310,191 | 204,009 | 604,638 | 381,664 |
Real estate owned expense | 1,250 | 1,573 | 2,499 | 2,521 |
Charitable contributions | 36,000 | 34,500 | 72,000 | 69,000 |
Other operating expenses | 429,210 | 426,527 | 863,385 | 908,614 |
Total other expenses | 4,810,186 | 4,374,598 | 9,466,051 | 8,827,354 |
INCOME BEFORE INCOME TAXES | 2,086,042 | 2,024,423 | 4,131,774 | 4,208,209 |
INCOME TAX EXPENSE | 928,525 | 785,425 | 1,769,671 | 1,632,887 |
NET INCOME | $ 1,157,517 | $ 1,238,998 | $ 2,362,103 | $ 2,575,322 |
Earnings per share, basic (in dollars per share) | $ 0.17 | $ 0.18 | $ 0.35 | $ 0.38 |
Earnings per share, diluted (in dollars per share) | $ 0.17 | $ 0.18 | $ 0.35 | $ 0.38 |
Document And Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Aug. 01, 2011
|
|
Entity Registrant Name | Ocean Shore Holding Co. | Â |
Entity Central Index Key | 0001444397 | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Filer Category | Smaller Reporting Company | Â |
Trading Symbol | oshc | Â |
Entity Common Stock, Shares Outstanding | Â | 7,296,780 |
Document Type | 10-Q | Â |
Amendment Flag | false | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Period Focus | Q2 | Â |
Document Fiscal Year Focus | 2011 | Â |
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