Ocean Shore Holding Co. (NASDAQ: OSHC) today announced net income of $1,297,000, or $0.19 per diluted share, for the quarter ended June 30, 2012, as compared to $1,158,000, or $0.17 per diluted share, for the second quarter of 2011. Net income for the six months ended June 30, 2012 was $2,651,000, or $0.39 per diluted share, as compared to $2,362,000, or $0.35 per diluted share, for the same period in 2011.
Ocean Shore Holding Co. is the holding company for Ocean City Home Bank, a federal savings bank headquartered in Ocean City, New Jersey. Ocean City Home Bank operates a total of twelve full-service banking offices in eastern New Jersey.
“Midway through the year, we are pleased with how we have fared in this uncertain economy,” said Steven E. Brady, President and CEO. “Notwithstanding the challenging interest rate environment and the high level of cash we are currently carrying on our balance sheet, our net interest income and net income has improved over the comparable quarter of the prior year and has declined only slightly from the first quarter of 2012. Finding quality loans remains a challenge, but we have not strayed from our goal of being our area’s premier lender and are maintaining the liquidity that will enable us to fulfill that mission. We are also pleased with the success we have had this year in reducing non-performing assets. This quarter we reduced non-performing assets, which were already low by industry standards, by $1.4 million to just 0.52% of total assets."
Balance Sheet Review
Total assets grew $31.5 million, or 3.2%, to $1,026.3 million at June 30, 2012 from December 31, 2011. Loans receivable, net, decreased $25.9 million, or 3.6%, to $701.7 million at June 30, 2012 from $727.6 million at December 31, 2011. Investment and mortgage-backed securities increased $39.8 million, or 75.4%, to $92.5 million during the first half of 2012. Cash and cash equivalents increased $18.2 million, or 11.7%, to $173.9 million at June 30, 2012 from December 31, 2011. The decrease in total net loans resulted from loan originations and other advances totaling $82.8 million offset by payoffs and payments received of $107.8 million. The increase in investments and mortgage-backed securities resulted from new purchases of short duration agency investments of $61.0 million offset by normal repayments, calls and payoffs of $21.2 million. Cash and cash equivalents increase resulted from increased deposit activity and cash flow from loans offset by increased investment activity.