OCEAN CITY, N.J., April 24, 2014 /PRNewswire/ -- Ocean Shore Holding Co. (NASDAQ: OSHC) today announced net income of $1.6 million for the quarter ended March 31, 2014 compared to $1.2 million earned in the first quarter of 2013.  Diluted earnings per share were $0.24 for the first quarter of 2014 compared to $0.18 in the first quarter of 2013. 

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 pleased to report a strong start to 2014," said Steven E. Brady, President and Chief Executive Officer.  "Net income increased 34.5% over the first quarter of 2014 and 6.8% over the prior quarter. Our loan portfolio increased 1.7% in the first quarter, which is typically a period of lower demand.  Asset quality remained excellent, as nonperforming assets declined from 0.55% at year end to 0.47% at the end of the first quarter."

Balance Sheet Review

Total assets grew $3.0 million, or 0.3%, to $1,023.0 million at March 31, 2014 from $1,020.0 million at December 31, 2013.  Loans receivable, net, increased $12.8 million, or 1.7%, to $757.6 million at March 31, 2014 from $744.8 million at December 31, 2013.  Investments and mortgage-backed securities decreased $3.9 million, or 3.1%, to $124.8 million during the first quarter of 2014.  Cash and cash equivalents decreased $5.2 million, or 5.9%, to $82.5 million at March 31, 2014 from $87.6 million at December 31, 2013.  Loan originations and other advances totaling $37.4 million were offset by payoffs and payments received of $24.6 million resulting in a $12.8 million increase in the portfolio.  The decrease in investments and mortgage-backed securities resulted from normal repayments, calls and maturities.   

Deposits grew $2.8 million, or 0.4%, to $783.4 million at March 31, 2014 from $780.6 million at December 31, 2013.  The Company continued its focus on core deposits, which increased $3.4 million, or 0.6%, to $593.7 million.  Certificates of deposit decreased $635,000, or 0.3%, to $189.7 million at March 31, 2014 compared to December 31, 2013.  Total borrowings were unchanged at $120.3 million. 

Stock Repurchase Plan Completed

During the March 2014 quarter, the Company repurchased a total of 147,000 shares at a weighted average cost of $13.94 which completed its announced repurchase of 210,000 shares at a weighted average cost of $13.95.

Asset Quality

The provision for loan losses totaled $88,000 for the first quarter of 2014 compared to $202,000 for the first quarter of 2013 and $177,000 for the fourth quarter of 2013.  The allowance for loan losses totaled $4.2 million, or 0.56% of total loans, at March 31, 2014 compared to $4.2 million, or 0.56% of total loans, at December 31, 2013.  The Company experienced $73,000 in net charge-off activity in the first quarter of 2014 as compared to $57,000 for the first quarter of 2013 and $189,000 for the fourth quarter of 2013. 

Non-performing assets totaled $4.9 million, or 0.47% of total assets, at March 31, 2014, compared to $5.6 million, or 0.55% of total assets, at December 31, 2013.  Non-performing assets consisted of fourteen real estate residential mortgages totaling $2.6 million, one real estate commercial mortgage totaling $354,000, nine consumer equity loans totaling $661,000, two TDR non-accrual loans totaling $936,000 and four real estate owned properties totaling $340,000.

Income Statement Analysis

Net interest income increased $481,000, or 7.4%, to $7.0 million for the first quarter of 2014 compared to $6.5 million in the first quarter of 2013.  Net interest margin increased 1 basis point in the quarter ended March 31, 2014 to 3.17% versus 3.16% for the quarters ended March 31, 2013 and December 31, 2013.  The increase in net interest income in the first quarter of 2014 compared to the first quarter of 2013 was the result of a decrease in the average cost of interest-bearing liabilities of 13 basis points to 0.94%, a decrease in average interest-bearing liabilities of $26.1 million and an increase in average interest-earning assets of $56.7 million offset by a decrease of 21 basis points in the average yield on interest-earning assets to 4.05%.

Other income decreased $96,000, or 8.7%, to $1.0 million for the first quarter of 2014 compared to $1.1 million in the first quarter of 2013.  The decrease in other income resulted from decreases in deposit account fees and cash surrender value of life insurance offset by increases in debit card commissions. 

Other expenses decreased $24,000, or 0.4%, to $5.4 million during the first quarter of 2014 compared to the first quarter of 2013.  Decreases in marketing, REO and other expenses of $130,000 were offset by increases in salaries and benefits, occupancy and equipment and FDIC insurance of $106,000. 

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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SOURCE Ocean Shore Holding Co.