EX-99.1 2 v310728_ex99-1.htm EXHIBIT 99.1

 

    Contacts:
    Steven E. Brady, President and CEO
    Donald F. Morgenweck, CFO
    (609) 399-0012

 

Press Release

 

Ocean Shore Holding Co. Reports 1st Quarter 2012 Earnings

 

Ocean City, New Jersey - April 25, 2012 – Ocean Shore Holding Co. (NASDAQ: OSHC) today announced net income of $1.4 million for the quarter ended March 31, 2012 compared to $1.2 million earned in the first quarter of 2011. Basic and diluted earnings per share were $0.20, compared to $0.18 in the same period last year.

 

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 twelve full-service banking offices in eastern New Jersey.

 

“We are very pleased with our start to 2012,” said Steven E. Brady, President and CEO. “We are already seeing the benefit of our acquisition of Select Bank, and customer acceptance and retention has been excellent. As with many areas of the country, economic conditions in our market area seem to be gradually improving.”

 

Balance Sheet Review

 

Total assets grew $8.0 million, or 0.8%, to $1,002.7 million at March 31, 2012 from $994.7 million at December 31, 2011. Loans receivable, net, decreased $12.6 million, or 1.7%, to $715.0 million at March 31, 2012 from $727.6 million at December 31, 2011. Investments and mortgage-backed securities increased $22.6 million, or 42.7%, to $75.3 million during the first quarter of 2012. Cash and cash equivalents decreased $2.2 million, or 1.4%, to $153.5 million at March 31, 2012 from $155.7 million at December 31, 2011. Loan originations and other advances totaling $37.2 million were offset by payoffs and payments received of $49.8 million resulting in a $12.6 million decrease in the portfolio. The increase in investments and mortgage-backed securities resulted from new purchases of $23.9 million offset by normal repayment and payoffs of $1.3 million.

 

Deposits grew $6.4 million, or 0.8%, to $758.8 million at March 31, 2012 from $752.4 million at December 31, 2011. The Company continued its focus on core deposits, which increased $8.8 million, or 1.7%, to $517.4 million. Certificates of deposit decreased $2.4 million, or 1.0%, to $241.4 million at March 31, 2012 compared to December 31, 2011. Total borrowings were unchanged at $125.5 million.

 

Asset Quality

 

The provision for loan losses totaled $173,000 for the first quarter of 2012 compared to $75,000 for the first quarter of 2011 and $129,000 for the fourth quarter of 2011. The allowance for loan losses totaled $3.9 million, or 0.54% of total loans, at March 31, 2012 compared to $3.8 million, or 0.52% of total loans, at December 31, 2011. The Company experienced $40,000 in net charge-off activity in the first quarter of 2012 as compared to no charge-off activity for the first quarter of 2011 and $485,000 for the fourth quarter of 2011.

 

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Non-performing assets totaled $6.7 million, or 0.67% of total assets, at March 31, 2012, compared to $6.6 million, or 0.66% of total assets, at December 31, 2011. Non-performing assets consisted of eighteen residential mortgages totaling $4.2 million, three commercial mortgages totaling $890,000, two commercial loans totaling $299,000, six consumer equity loans totaling $304,000, one troubled debt restructuring totaling $801,000 and two real estate owned properties totaling $243,000. Specific reserves recorded for these loans at March 31, 2012 were $489,000.

 

Income Statement Analysis

 

Net interest income increased $910,000, or 15.2%, to $6.9 million for the first quarter of 2012 compared to $6.0 million in the first quarter of 2011. Net interest margin increased 6 basis points in the quarter ended March 31, 2012 to 3.53% versus 3.47% for the quarter ended March 31, 2011 and decreased 1 basis point from 3.54% for the quarter ended December 31, 2011. The increase in net interest income in the first quarter of 2012 compared to the first quarter of 2011 was the result of a decrease of 41 basis points in the average cost of interest-bearing liabilities to 1.34% and an increase in the average interest-earning assets of $91.3 million. These changes were offset by a decrease in the average yield on interest-earning assets to 4.93% and an increase in average interest-bearing liabilities of $111.2 million.

 

Other income increased $103,000 to $905,000, or 12.8%, for the first quarter of 2012 compared to $807,000 in the first quarter of 2011. The increase in other income resulted from increases in deposit account fees, debit card commissions and cash surrender value of life insurance.

 

Other expenses increased $745,000, or 16.0%, to $5.4 million during the first quarter of 2012 compared to the first quarter of 2011. Costs associated with two branch locations added with last year’s acquisition of Select Bank totaled $322,000. Additionally, increases in salaries and benefits, occupancy and equipment and other expenses of $482,000 were offset by a decrease in FDIC insurance of $59,000.

 

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.

 

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SELECTED FINANCIAL CONDITION DATA (Unaudited)

 

   March 31,   December 31,     
   2012   2011   % Change 
   (Dollars in thousands)     
             
Total assets  $1,002,690   $994,730    0.8%
Cash and cash equivalents   153,487    155,653    (1.4)
Investment securities   75,266    52,732    42.7 
Loans receivable, net   714,993    727,626    (1.7)
Deposits   758,806    752,455    0.8 
FHLB advances   110,000    110,000    0.0 
Subordinated debt   15,464    15,464    0.0 
Stockholder’s equity   105,558    104,680    0.8 

 

SELECTED OPERATING DATA (Unaudited)

 

   Three Months Ended March 31,     
   2012   2011   % Change 
   (Dollars in thousands, except per
share and share amounts)		 
             
Interest and dividend income  $9,611   $9,038    6.3%
Interest expense   2,726    3,063    (11.0)
    Net interest income   6,885    5,975    15.2 
                
Provision for loan losses   173    75    130.7 
                
Net interest income after
provision for loan losses 		   6,712    5,900    13.8 
                
Other income   905    802    14.3 
Other expense   5,401    4,656    16.0 
                
Income before taxes   2,216    2,046    8.3 
Provision for income taxes   862    841    2.5 
                
    Net income  $1,354   $1,205    12.4 
                
Earnings per share basic  $0.20   $0.18    11.1 
Earnings per share diluted  $0.20   $0.18    11.1 
                
Average shares outstanding basic   6,778,305    6,730,331      
Average shares outstanding diluted   6,844,225    6,801,558      
                

 

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   Three Months Ended
March 31, 2012		   Three Months Ended
March 31, 2011		 
   Average Balance   Yield/Cost   Average Balance   Yield/Cost  
   (Dollars in thousands) 
Loans  $718,892    5.01%  $657,986    5.20%
Investment securities   61,001    4.00%   30,656    6.30%
                     
Interest-bearing deposits   685,347    0.71%   574,102    1.09%
Total borrowings   125,464    4.82%   125,464    4.77%
                     
Interest rate spread        3.58%        3.50%
Net interest margin        3.53%        3.47%

 

ASSET QUALITY DATA (Unaudited)

 

   Three Months Ended
March 31, 2012		   Year Ended
December 31, 2011		 
   (Dollars in thousands) 
Allowance for Loan Losses:          
Allowance at beginning of period  $3,762   $3,988 
Provision for loan losses   173    473 
           
Charge-offs   (50)   (700)
Recoveries   10    1 
Net charge-offs   (40)   (699)
           
Allowance at end of period  $3,895   $3,762 
Allowance for loan losses as a percent of total loans    0.54%   0.52%
Allowance for loan losses as a percent of nonperforming loans   60.3%   58.0%

 

   At March 31, 2012   At December 31, 2011 
   (Dollars in thousands) 
Nonperforming Assets:          
Nonaccrual loans:          
  Real estate mortgage - residential  $4,166   $4,768 
  Real estate mortgage - commercial   890    392 
  Commercial business loans   299    318 
  Consumer loans   304    198 
       Total   5,659    5,676 
Trouble debt restructurings - nonaccrual   801    805 
       Total nonaccrual loans   6,460    6,481 
Real estate owned   243    98 
           
Total nonperforming assets  $6,703   $6,579 
Nonperforming loans as a percent of total loans    0.90%   0.89%
Nonperforming assets as a percent of total assets   0.67%   0.66%

 

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SELECTED FINANCIAL RATIOS (Unaudited)

 

   Three Months Ended
March 31,		 
   2012   2011 
         
Selected Performance Ratios:          
Return on average assets (1)   0.54%   0.55%
Return on average equity (1)   5.12%   4.74%
Interest rate spread (1)   3.58%   3.50%
Net interest margin (1)   3.53%   3.47%
Efficiency ratio   69.33%   68.70%

(1) Annualized.

 

OCEAN SHORE HOLDING COMPANY - QUARTERLY DATA (Unaudited)

 

   Q1
2012		   Q4
2011		   Q3
2011		   Q2
2011		   Q1
2011		 
   (In thousands except per share amounts) 
Income Statement Data:                         
Net interest income  $6,885   $6,987   $6,778   $6,162   $5,975 
Provision for loan losses   173    129    141    128    75 
Net interest income after
provision for loan losses 		   6,712    6,858    6,637    6,034    5,900 
Other income   905    939    934    862    802 
Other expense   5,401    5,389    5,521    4,810    4,656 
Income before taxes   2,216    2,408    2,050    2,086    2,046 
Provision for income taxes   862    927    835    928    841 
Net income  $1,354   $1,481   $1,215   $1,158   $1,205 
                          
Share Data:                         
Earnings per share basic   $0.20   $0.22   $0.18   $0.17   $0.18 
Earnings per share diluted  $0.20   $0.22   $0.18   $0.17   $0.18 
Average shares outstanding basic   6,778,305    6,769,726    6,753,956    6,738,827    6,730,331 
Average shares outstanding diluted   6,842,452    6,843,937    6,836,697    6,809,077    6,801,558 
Total shares outstanding   7,291,643    7,291,643    7,291,643    7,296,780    7,296,780 
                          
Balance Sheet Data:                         
Total assets  $1,002,690   $994,926   $1,021,625   $860,269   $861,365 
Investment securities   75,266    53,732    49,679    47,474    42,131 
Loans receivable, net   714,993    727,887    743,945    662,841    660,385 
Deposits   758,806    752,455    780,564    621,189    623,685 
FHLB advances   110,000    110,000    110,000    110,000    110,000 
Subordinated debt   15,464    15,464    15,464    15,464    15,464 
Stockholder’s equity   105,558    104,692    104,063    102,822    101,750 
                          
Asset Quality:                         
Non-performing assets  $6,703   $6,579   $5,297   $6,033   $5,910 
Non-performing loans to total loans   0.90%   0.89%   0.67%   0.90%   0.88%
Non-performing assets to total assets   0.67%   0.66%   0.52%   0.70%   0.69%
Allowance for loan losses  $3,895   $3,762   $4,119   $4,068   $4,063 
Allowance for loan losses to total
loans 		   0.54%   0.52%   0.55%   0.61%   0.62%
Allowance for loan losses to non-performing loans   60.3%   58.0%   82.6%   68.5%   69.9%

 

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