Ocean Shore Holding Co. (Nasdaq: OSHC), the holding company for Ocean City Home Bank, announced today that it has signed a definitive merger agreement with CBHC Financialcorp, Inc. under which Ocean Shore Holding will acquire CBHC in a transaction valued at approximately $11.9 million. CBHC is the holding company for Select Bank, a $135 million bank located in Egg Harbor City, New Jersey.
The transaction will expand Ocean City Home Bank’s market presence in Atlantic County, particularly in Egg Harbor City and Hammonton, where Ocean City Home currently does not maintain branches. Following completion of the transaction and consolidation of overlapping offices, Ocean Shore will have consolidated assets of more than $1 billion and a branch network of 12 full service offices. Ocean City Home Bank will continue to be well capitalized under applicable regulatory requirements following completion of the transaction.
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, stockholders of CBHC will receive $15.50 in cash for each share they hold. Based upon CBHC’s preliminary December 31, 2010 financial information, the purchase price represents approximately 130% of CBHC’s tangible book value and 10.3 times 2010 earnings per share. The transaction is expected to be 5-6% dilutive to Ocean Shore’s tangible book value at closing and immediately accretive to Ocean Shore’s earnings per share.
The merger is subject to certain conditions, including the approval of the shareholders of CBHC and receipt of regulatory approval. The merger is expected to be completed in the second quarter or early in the third quarter of 2011.Steven E. Brady, President and Chief Executive Officer of Ocean Shore, stated, “We are very pleased to announce our agreement for the acquisition of CBHC Financialcorp and Select Bank. We have known many of the officers and directors at Select Bank for years and are thrilled to be strengthening our presence in Atlantic County through this combination with their bank. We look forward to continuing to emphasize the personal service and community banking focus that Select Bank’s customers expect and appreciate.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV