EASTON, Md., July 25, 2019 /PRNewswire/ -- Shore
Bancshares, Inc. (NASDAQ: SHBI) (the "Company") reported net income
of $4.224 million or $0.33 per diluted common share for the second
quarter of 2019, compared to net income of $3.754 million or $0.29 per diluted common share for the first
quarter of 2019, and net income of $4.391
million or $0.34 per diluted
common share for the second quarter of 2018. Net income from
continuing operations for the second quarter of 2019 was
$4.228 million or $0.33 per diluted common share, compared to net
income from continuing operations of $3.828
million or $0.30 per diluted
common share for the first quarter of 2019, and net income from
continuing operations of $4.192
million or $0.33 per diluted
common share for the second quarter of 2018. The Company reported
net income of $7.978 million or
$0.62 per diluted common share for
the first half of 2019, compared to net income of $8.449 million or $0.66 per diluted common share for the first half
of 2018. Net income from continuing operations for the first half
of 2019 was $8.056 million or
$0.63 per diluted common share,
compared to net income from continuing operations of $7.654 million or $0.60 per diluted common share for the first half
of 2018.
When comparing net income from continuing operations for the
second quarter of 2019 to the first quarter of 2019, the increase
was primarily the result of higher noninterest income and lower
noninterest expenses, partially offset by an increase in interest
expense on deposits and an increase in the provision for credit
losses. When comparing net income from continuing operations for
the second quarter of 2019 to the second quarter of 2018, the
slightly better results were attributed to interest and fees on
loans, an increase in noninterest income and a lower provision for
credit losses, almost entirely offset by an increase in interest
expense on deposits and higher noninterest expenses.
"The second quarter produced positive results as we experienced
strong growth in both loans and deposits," said Lloyd L. "Scott"
Beatty, Jr., President and Chief Executive Officer. "During
the second quarter loans and deposits grew $28.6 million and $11.7
million, respectively. Loan growth had gotten off to a slow
start in 2019, but we experienced a significant amount of growth
late in the second quarter and we continue to see steady demand for
the last half of 2019. Our focus on deposit growth has
produced very positive results."
Balance Sheet Review
Total assets were $1.489 billion at June 30,
2019, a $5.5 million, or less
than 1.0%, increase when compared to $1.483
billion at the end of 2018. The increase in total
assets included loan growth of $44.9
million which was almost entirely funded by decreases in
interest-bearing deposits with other banks of $30.2 million and investment securities
(including restricted securities) of $10.5
million.
Total deposits increased $36.7
million, or 3.0%, when compared to December 31, 2018. The increase in total
deposits primarily consisted of increases in time deposits greater
than $100 thousand of $20.0 million, noninterest-bearing deposits of
$16.5 million, other time deposits of
$8.9 million and savings and money
market accounts of $1.1 million,
partially offset by decreases in interest-bearing checking deposits
of $7.7 million and brokered deposits
of $2.1 million.
Total stockholders' equity increased $8.1
million, or 4.4%, when compared to the end of 2018. At
June 30, 2019, the ratio of total
equity to total assets was 12.85% and the ratio of total tangible
equity to total tangible assets was 11.66%.
Total assets at June 30, 2019
increased $36.8 million, or 2.5%,
when compared to total assets at June
30, 2018. Total assets year over year increased
primarily as a result of loan growth of $83.4 million which was partially funded by a
decrease in investment securities (including restricted securities)
of $32.2 million. In addition, the
sale of Avon Dixon resulted in a decrease in assets of $11.3 million.
Total deposits at June 30, 2019
increased $73.9 million, or 6.3%,
when compared to June 30, 2018.
The increase in total deposits included growth within
interest-bearing checking deposits of $29.0
million, time deposits of $100
thousand or more of $21.0
million, noninterest-bearing deposits of $20.3 million, money market and savings deposits
of $7.1 million and other time
deposits of $3.8 million. These
increases resulted in a reduced dependence on brokered deposits
which experienced a decrease of $7.4
million or 27.0% at June 30,
2019. Total stockholders' equity increased $23.2 million, or 13.8%, when compared to
June 30, 2018.
Review of Quarterly Financial Results
Net interest
income was $12.3 million for the
second quarter of 2019, compared to $12.4
million for the first quarter of 2019 and $12.6 million for the second quarter of 2018. The
primary reasons for the decrease in net interest income when
compared to the first quarter of 2019 and second quarter 2018 were
higher interest expense on deposits and lower interest income on
taxable securities. Interest income increased when compared to the
first quarter of 2019 due to an increase in the average balance on
loans of $19.3 million. Similarly,
interest income increased when compared to the second quarter of
2018 due to an increase in the average balance on loans of
$79.9 million. The Company's net
interest margin decreased to 3.54% from 3.61% in the first quarter
of 2019 and decreased from 3.79% in the second quarter of
2018. The decline in net interest margin from the first
quarter of 2019 and the second quarter 2018 was the direct result
of higher rates paid on interest-bearing deposits and the timing of
significant loan growth late in the second quarter of 2019 which
had little impact on the average balance on loans and,
correspondingly, interest income, partially offset by a decline in
the average balance on short-term borrowings.
The provision for credit losses was $200
thousand for the three months ended June 30, 2019. The comparable amounts were
$100 thousand and $418 thousand for the three months ended
March 31, 2019 and June 30, 2018, respectively. The increase in the
amount of provision for credit losses from the first quarter of
2019 was due the absence of recoveries experienced in the first
quarter of 2019 which totaled $185
thousand. The decrease in the amount of provision for credit
losses from the second quarter of 2018 was due to lower loan growth
in the second quarter of 2019. Net charge-offs were $313 thousand for the second quarter of 2019,
$25 thousand for the first quarter of
2019 and $84 thousand for the second
quarter of 2018. The ratio of annualized net charge-offs to
average loans was 0.10% for the second quarter of 2019, 0.01% for
the first quarter of 2019 and 0.03% for the second quarter of
2018. The ratio of the allowance for credit losses to
period-end loans was 0.83% at June 30,
2019, lower than the 0.86% at March
31, 2019 and 0.87% at June 30,
2018.
At June 30, 2019, nonperforming
assets were $15.6 million, a decrease
of $831 thousand, or 5.1%, when
compared to March 31, 2019, primarily
due to a decrease in nonaccrual loans of $768 thousand, or 5.0%. Accruing troubled debt
restructurings ("TDRs") decreased $60
thousand, or 0.8% over the same time period. When comparing
June 30, 2019 to June 30, 2018, nonperforming assets increased
$7.2 million, or 86.8%, and accruing
TDRs decreased $1.9 million, or
19.3%. The increase in nonperforming assets was due to a large
nonaccrual loan with an outstanding loan balance of $7.5 million added late in the fourth quarter of
2018, in which the Company does not anticipate any further losses.
The ratio of nonperforming assets and accruing TDRs to total assets
was 1.56%, 1.63% and 1.24% at June 30,
2019, March 31, 2019 and
June 30, 2018, respectively. In
addition, the ratio of accruing TDRs to total loans at June 30, 2019 was 0.63%, compared to 0.65% at
March 31, 2019 and 0.83% at
June 30, 2018.
Total noninterest income from continuing operations for the
second quarter of 2019 increased $421
thousand when compared to the first quarter of 2019 and
increased $313 thousand when compared
to the second quarter of 2018. The increase from the first
quarter of 2019 and the second quarter of 2018 was the result of an
increase in service charges on deposit accounts and additional fees
on bank service charges included in other noninterest income.
Total noninterest expense from continuing operations for the
second quarter of 2019 decreased $358
thousand when compared to the first quarter of 2019 and
increased $132 thousand when compared
to the second quarter of 2018. The decrease in noninterest
expense compared to the first quarter of 2019 was primarily due to
lower employee benefits and payroll taxes, other real estate owned
expenses and legal and professional fees. The increase in
noninterest expenses from the second quarter of 2018 was primarily
due to increases in data processing fees, other real estate owned
expenses and legal and professional fees, partially offset by lower
salaries and wages expense.
Review of Six-Month Financial Results
Net interest
income for the first six months of 2019 was $24.7 million, a decrease of $275 thousand, or 1.1% when compared to the first
six months of 2018. The decrease was the direct result of an
increase in interest expense on deposits, which was partially
offset by an increase in interest and fees on loans. The average
balance on loans increased $87.8
million and the yield on loans increased 11bps when
comparing the periods. This increase in volume and yields on
loans was offset by an increase in the average balance of
interest-bearing deposits of $43.8
million, with an associated increase in rates paid on these
deposits of 67bps. This resulted in a net interest margin of 3.57%
for the first six months of 2019 compared to 3.80% for the first
six months of 2018.
The provision for credit losses for the six months ended
June 30, 2019 and 2018 was
$300 thousand and $907 thousand, respectively, while net
charge-offs were $338 thousand and
$567 thousand, respectively.
The decrease in provision for credit losses was the result of
improved overall credit quality exclusive of the one large
relationship mentioned above and lower net charge-offs for the
first six months of 2019 compared to the first six months of 2018.
In addition, loan growth in the first six months of 2019 has
lagged the first six months of 2018. The ratio of annualized net
charge-offs to average loans was 0.06% for the first half of 2019
and 0.10% for the first half of 2018.
Total noninterest income from continuing operations for the six
months ended June 30, 2019 increased
$361 thousand, or 8.1%, when compared
to the same period in 2018. The increase in noninterest income
primarily consisted of increases in service charges on deposit
accounts and other fees on bank services.
Total noninterest expense from continuing operations for the six
months ended June 30, 2019 increased
$23 thousand, or 0.1%, when compared
to the same period in 2018. Despite the insignificant increase in
total noninterest expenses, salaries and wages decreased
$769 thousand, which was offset by
increases in employee benefits of $101
thousand, data processing of $272
thousand, legal and professional fees $225 thousand and other real estate owned
expenses of $334 thousand.
Shore Bancshares Information
Shore Bancshares is a financial holding company headquartered in
Easton, Maryland and is the
largest independent bank holding company located on Maryland's Eastern Shore. It is the parent
company of Shore United Bank. Shore Bancshares engages in trust and
wealth management services through Wye Financial & Trust, a
division of Shore United Bank. Additional information is
available at www.shorebancshares.com.
Forward-Looking Statements
The statements contained herein that are not historical facts
are forward-looking statements (as defined by the Private
Securities Litigation Reform Act of 1995) based on management's
current expectations and beliefs concerning future developments and
their potential effects on the Company. Such statements involve
inherent risks and uncertainties, many of which are difficult to
predict and are generally beyond the control of the Company. There
can be no assurance that future developments affecting the Company
will be the same as those anticipated by management. These
statements are evidenced by terms such as "anticipate," "estimate,"
"should," "expect," "believe," "intend," and similar expressions.
Although these statements reflect management's good faith beliefs
and projections, they are not guarantees of future performance and
they may not prove true. These projections involve risk and
uncertainties that could cause actual results to differ materially
from those addressed in the forward-looking statements. For a
discussion of these risks and uncertainties, see the section of the
periodic reports filed by Shore Bancshares, Inc. with the
Securities and Exchange Commission entitled "Risk Factors".
The Company specifically disclaims any obligation to update any
factors or to publicly announce the result of revisions to any of
the forward-looking statements included herein to reflect future
events or developments.
Shore Bancshares,
Inc.
Financial
Highlights
(Dollars in
thousands, except per share data)
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
12,293
|
|
$
|
12,633
|
|
(2.7)
|
%
|
$
|
24,687
|
|
$
|
24,962
|
|
(1.1)
|
%
|
Provision for credit
losses
|
|
|
200
|
|
|
418
|
|
(52.2)
|
|
|
300
|
|
|
907
|
|
(66.9)
|
|
Noninterest
income
|
|
|
2,609
|
|
|
2,296
|
|
13.6
|
|
|
4,797
|
|
|
4,436
|
|
8.1
|
|
Noninterest
expense
|
|
|
8,985
|
|
|
8,853
|
|
1.5
|
|
|
18,328
|
|
|
18,305
|
|
0.1
|
|
Income from continuing
operations
before income taxes
|
|
|
5,717
|
|
|
5,658
|
|
1.0
|
|
|
10,856
|
|
|
10,186
|
|
6.6
|
|
Income tax
expense
|
|
|
1,489
|
|
|
1,466
|
|
1.6
|
|
|
2,800
|
|
|
2,532
|
|
10.6
|
|
Income from continuing
operations
|
|
$
|
4,228
|
|
$
|
4,192
|
|
0.9
|
|
$
|
8,056
|
|
$
|
7,654
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations
before income
taxes
|
|
|
(4)
|
|
|
269
|
|
(101.5)
|
|
|
(103)
|
|
|
1,048
|
|
(109.8)
|
|
Income tax expense
(benefit)
|
|
|
—
|
|
|
70
|
|
(100.0)
|
|
|
(25)
|
|
|
253
|
|
(109.9)
|
|
(Loss) Income from
discontinued operations
|
|
|
(4)
|
|
|
199
|
|
(102.0)
|
|
|
(78)
|
|
|
795
|
|
(109.8)
|
|
Net income
|
|
$
|
4,224
|
|
$
|
4,391
|
|
(3.8)
|
|
$
|
7,978
|
|
$
|
8,449
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.16
|
%
|
|
1.18
|
%
|
(2)
|
bp
|
|
1.11
|
%
|
|
1.09
|
%
|
2
|
bp
|
Return on average
equity
|
|
|
8.97
|
|
|
10.10
|
|
(113)
|
|
|
8.69
|
|
|
9.31
|
|
(62)
|
|
Return on average
tangible equity (1)
|
|
|
10.31
|
|
|
13.02
|
|
(271)
|
|
|
10.02
|
|
|
11.94
|
|
(192)
|
|
Net interest
margin
|
|
|
3.54
|
|
|
3.79
|
|
(25)
|
|
|
3.57
|
|
|
3.80
|
|
(23)
|
|
Efficiency ratio -
GAAP
|
|
|
60.29
|
|
|
59.30
|
|
99
|
|
|
62.16
|
|
|
62.22
|
|
(6)
|
|
Efficiency ratio -
Non-GAAP (1)
|
|
|
59.09
|
|
|
57.67
|
|
142
|
|
|
60.93
|
|
|
61.04
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
—
|
%
|
$
|
0.63
|
|
$
|
0.60
|
|
5.0
|
%
|
(Loss) Income from
discontinued
operations
|
|
|
—
|
|
|
0.01
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.06
|
|
(116.7)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.34
|
|
(2.9)
|
|
$
|
0.62
|
|
$
|
0.66
|
|
(6.1)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
—
|
|
$
|
0.63
|
|
$
|
0.60
|
|
5.0
|
|
(Loss) Income from
discontinued
operations
|
|
|
—
|
|
|
0.01
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.06
|
|
(116.7)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.34
|
|
(2.9)
|
|
$
|
0.62
|
|
$
|
0.66
|
|
(6.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.08
|
|
25.0
|
|
|
0.20
|
|
|
0.15
|
|
33.3
|
|
Book value per common
share at period end
|
|
|
14.97
|
|
|
13.19
|
|
13.5
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share at
period end (1)
|
|
|
13.40
|
|
|
10.68
|
|
25.5
|
|
|
|
|
|
|
|
|
|
Market value at period
end
|
|
|
16.34
|
|
|
19.02
|
|
(14.1)
|
|
|
|
|
|
|
|
|
|
Market
range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
16.48
|
|
|
20.09
|
|
(18.0)
|
|
|
16.48
|
|
|
20.09
|
|
(18.0)
|
|
Low
|
|
|
14.84
|
|
|
17.92
|
|
(17.2)
|
|
|
14.00
|
|
|
16.28
|
|
(14.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,221,215
|
|
$
|
1,141,296
|
|
7.0
|
%
|
$
|
1,211,618
|
|
$
|
1,123,852
|
|
7.8
|
%
|
Investment
securities
|
|
|
159,878
|
|
|
186,453
|
|
(14.3)
|
|
|
162,429
|
|
|
191,839
|
|
(15.3)
|
|
Earning
assets
|
|
|
1,399,418
|
|
|
1,341,050
|
|
4.4
|
|
|
1,397,086
|
|
|
1,327,227
|
|
5.3
|
|
Assets
|
|
|
1,468,093
|
|
|
1,425,947
|
|
3.0
|
|
|
1,464,214
|
|
|
1,411,058
|
|
3.8
|
|
Deposits
|
|
|
1,233,951
|
|
|
1,161,790
|
|
6.2
|
|
|
1,224,876
|
|
|
1,165,184
|
|
5.1
|
|
Stockholders'
equity
|
|
|
189,101
|
|
|
166,480
|
|
13.6
|
|
|
187,048
|
|
|
165,778
|
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
$
|
313
|
|
$
|
84
|
|
272.6
|
%
|
$
|
338
|
|
$
|
567
|
|
(40.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
14,592
|
|
$
|
6,757
|
|
116.0
|
|
|
|
|
|
|
|
|
|
Loans 90 days past due
and still accruing
|
|
|
439
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Other real estate
owned
|
|
|
524
|
|
|
1,569
|
|
(66.6)
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
15,555
|
|
|
8,326
|
|
86.8
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
|
|
7,768
|
|
|
9,620
|
|
(19.3)
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and accruing TDRs
|
|
$
|
23,323
|
|
$
|
17,946
|
|
30.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
12.85
|
%
|
|
11.58
|
%
|
127
|
bp
|
|
|
|
|
|
|
|
|
Period-end tangible
equity to tangible assets (1)
|
|
|
11.66
|
|
|
9.59
|
|
207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
charge-offs to average loans
|
|
|
0.10
|
|
|
0.03
|
|
7
|
|
|
0.06
|
%
|
|
0.10
|
%
|
(4)
|
bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
|
|
0.83
|
|
|
0.87
|
|
(4)
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
70.62
|
|
|
149.79
|
|
(7,917)
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
66.25
|
|
|
121.56
|
|
(5,531)
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
132.66
|
|
|
105.21
|
|
2,745
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
44.18
|
|
|
56.40
|
|
(1,222)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
1.18
|
|
|
0.58
|
|
60
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
0.63
|
|
|
0.83
|
|
(20)
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
accruing TDRs
|
|
|
1.80
|
|
|
1.42
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
1.25
|
|
|
0.72
|
|
53
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.88
|
|
|
1.55
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.98
|
|
|
0.47
|
|
51
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
1.04
|
|
|
0.57
|
|
47
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
0.52
|
|
|
0.66
|
|
(14)
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.56
|
|
|
1.24
|
|
32
|
|
|
|
|
|
|
|
|
|
________________________
|
(1) See the
reconciliation table on page 16 of 16.
|
Shore Bancshares,
Inc.
Consolidated Balance
Sheets
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
|
compared
to
|
|
|
|
2019
|
|
2018
|
|
2018
|
|
December 31, 2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
18,541
|
|
$
|
16,294
|
|
$
|
19,420
|
|
13.8
|
%
|
Interest-bearing
deposits with other banks
|
|
|
20,739
|
|
|
50,931
|
|
|
24,059
|
|
(59.3)
|
|
Cash and cash
equivalents
|
|
|
39,280
|
|
|
67,225
|
|
|
43,479
|
|
(41.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
available for sale (at fair value)
|
|
|
145,410
|
|
|
154,432
|
|
|
175,566
|
|
(5.8)
|
|
Investment securities
held to maturity
|
|
|
5,905
|
|
|
6,043
|
|
|
6,168
|
|
(2.3)
|
|
Equity securities, at
fair value
|
|
|
1,325
|
|
|
1,269
|
|
|
652
|
|
4.4
|
|
Restricted
securities
|
|
|
5,095
|
|
|
6,476
|
|
|
7,578
|
|
(21.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
1,240,295
|
|
|
1,195,355
|
|
|
1,156,884
|
|
3.8
|
|
Less: allowance for
credit losses
|
|
|
(10,305)
|
|
|
(10,343)
|
|
|
(10,121)
|
|
(0.4)
|
|
Loans, net
|
|
|
1,229,990
|
|
|
1,185,012
|
|
|
1,146,763
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
|
22,710
|
|
|
22,711
|
|
|
22,906
|
|
(0.0)
|
|
Goodwill
|
|
|
17,518
|
|
|
17,518
|
|
|
17,518
|
|
—
|
|
Other intangible
assets, net
|
|
|
2,540
|
|
|
2,857
|
|
|
4,369
|
|
(11.1)
|
|
Other real estate
owned, net
|
|
|
524
|
|
|
1,222
|
|
|
1,569
|
|
(57.1)
|
|
Right of use assets,
net
|
|
|
3,663
|
|
|
—
|
|
|
—
|
|
—
|
|
Other
assets
|
|
|
14,602
|
|
|
17,678
|
|
|
13,876
|
|
(17.4)
|
|
Assets of discontinued
operations
|
|
|
—
|
|
|
633
|
|
|
11,270
|
|
(100.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,488,562
|
|
$
|
1,483,076
|
|
$
|
1,451,714
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
346,916
|
|
$
|
330,466
|
|
$
|
326,634
|
|
5.0
|
|
Interest-bearing
deposits
|
|
|
902,084
|
|
|
881,875
|
|
|
848,465
|
|
2.3
|
|
Total
deposits
|
|
|
1,249,000
|
|
|
1,212,341
|
|
|
1,175,099
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
25,508
|
|
|
60,812
|
|
|
102,741
|
|
(58.1)
|
|
Long-term
borrowings
|
|
|
15,000
|
|
|
15,000
|
|
|
—
|
|
—
|
|
Lease
liabilities
|
|
|
3,663
|
|
|
—
|
|
|
—
|
|
—
|
|
Accrued expenses and
other liabilities
|
|
|
4,084
|
|
|
8,415
|
|
|
5,117
|
|
(51.5)
|
|
Liabilities of
discontinued operations
|
|
|
—
|
|
|
3,323
|
|
|
642
|
|
(100.0)
|
|
Total
liabilities
|
|
|
1,297,255
|
|
|
1,299,891
|
|
|
1,283,599
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par
value $0.01; authorized 35,000,000 shares
|
|
|
128
|
|
|
127
|
|
|
127
|
|
0.8
|
|
Additional paid in
capital
|
|
|
65,376
|
|
|
65,434
|
|
|
65,562
|
|
(0.1)
|
|
Retained
earnings
|
|
|
125,996
|
|
|
120,574
|
|
|
106,193
|
|
4.5
|
|
Accumulated other
comprehensive (loss)
|
|
|
(193)
|
|
|
(2,950)
|
|
|
(3,767)
|
|
93.5
|
|
Total stockholders'
equity
|
|
|
191,307
|
|
|
183,185
|
|
|
168,115
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,488,562
|
|
$
|
1,483,076
|
|
$
|
1,451,714
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end common
shares outstanding
|
|
|
12,780
|
|
|
12,749
|
|
|
12,747
|
|
0.2
|
|
Book value per common
share
|
|
$
|
14.97
|
|
$
|
14.37
|
|
$
|
13.19
|
|
4.2
|
|
Shore Bancshares,
Inc.
Consolidated
Statements of Income
(In thousands, except
per share data)
|
|
|
|
For the Three Months
Ended
|
|
|
For the Six Months
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
13,749
|
|
$
|
12,631
|
|
8.9
|
%
|
$
|
27,248
|
|
$
|
24,675
|
|
10.4
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
887
|
|
|
982
|
|
(9.7)
|
|
|
1,885
|
|
|
2,003
|
|
(5.9)
|
|
Interest on deposits
with other banks
|
|
|
113
|
|
|
61
|
|
85.2
|
|
|
276
|
|
|
99
|
|
178.8
|
|
Total interest
income
|
|
|
14,749
|
|
|
13,674
|
|
7.9
|
|
|
29,409
|
|
|
26,777
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,204
|
|
|
580
|
|
280.0
|
|
|
4,151
|
|
|
1,128
|
|
268.0
|
|
Interest on short-term
borrowings
|
|
|
145
|
|
|
461
|
|
(68.5)
|
|
|
358
|
|
|
687
|
|
(47.9)
|
|
Interest on long-term
borrowings
|
|
|
107
|
|
|
—
|
|
—
|
|
|
213
|
|
|
—
|
|
—
|
|
Total interest
expense
|
|
|
2,456
|
|
|
1,041
|
|
135.9
|
|
|
4,722
|
|
|
1,815
|
|
160.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
12,293
|
|
|
12,633
|
|
(2.7)
|
|
|
24,687
|
|
|
24,962
|
|
(1.1)
|
|
Provision for credit
losses
|
|
|
200
|
|
|
418
|
|
(52.2)
|
|
|
300
|
|
|
907
|
|
(66.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
12,093
|
|
|
12,215
|
|
(1.0)
|
|
|
24,387
|
|
|
24,055
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
1,028
|
|
|
947
|
|
8.6
|
|
|
1,962
|
|
|
1,852
|
|
5.9
|
|
Trust and investment
fee income
|
|
|
385
|
|
|
414
|
|
(7.0)
|
|
|
757
|
|
|
814
|
|
(7.0)
|
|
Other noninterest
income
|
|
|
1,196
|
|
|
935
|
|
27.9
|
|
|
2,078
|
|
|
1,770
|
|
17.4
|
|
Total noninterest
income
|
|
|
2,609
|
|
|
2,296
|
|
13.6
|
|
|
4,797
|
|
|
4,436
|
|
8.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
3,792
|
|
|
4,101
|
|
(7.5)
|
|
|
7,558
|
|
|
8,327
|
|
(9.2)
|
|
Employee
benefits
|
|
|
1,068
|
|
|
1,045
|
|
2.2
|
|
|
2,322
|
|
|
2,221
|
|
4.5
|
|
Occupancy
expense
|
|
|
668
|
|
|
650
|
|
2.8
|
|
|
1,359
|
|
|
1,327
|
|
2.4
|
|
Furniture and
equipment expense
|
|
|
295
|
|
|
247
|
|
19.4
|
|
|
558
|
|
|
502
|
|
11.2
|
|
Data
processing
|
|
|
919
|
|
|
689
|
|
33.4
|
|
|
1,829
|
|
|
1,557
|
|
17.5
|
|
Directors'
fees
|
|
|
116
|
|
|
152
|
|
(23.7)
|
|
|
202
|
|
|
266
|
|
(24.1)
|
|
Amortization of
intangible assets
|
|
|
155
|
|
|
228
|
|
(32.0)
|
|
|
317
|
|
|
327
|
|
(3.1)
|
|
FDIC insurance premium
expense
|
|
|
181
|
|
|
214
|
|
(15.4)
|
|
|
386
|
|
|
419
|
|
(7.9)
|
|
Other real estate
owned expenses, net
|
|
|
60
|
|
|
5
|
|
1,100.0
|
|
|
293
|
|
|
(41)
|
|
814.6
|
|
Legal and professional
fees
|
|
|
559
|
|
|
487
|
|
14.8
|
|
|
1,160
|
|
|
935
|
|
24.1
|
|
Other noninterest
expenses
|
|
|
1,172
|
|
|
1,035
|
|
13.2
|
|
|
2,344
|
|
|
2,465
|
|
(4.9)
|
|
Total noninterest
expense
|
|
|
8,985
|
|
|
8,853
|
|
1.5
|
|
|
18,328
|
|
|
18,305
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
5,717
|
|
|
5,658
|
|
1.0
|
|
|
10,856
|
|
|
10,186
|
|
6.6
|
|
Income tax
expense
|
|
|
1,489
|
|
|
1,466
|
|
1.6
|
|
|
2,800
|
|
|
2,532
|
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
4,228
|
|
|
4,192
|
|
0.9
|
|
|
8,056
|
|
|
7,654
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
discontinued operations before income taxes
|
|
|
(4)
|
|
|
269
|
|
(101.5)
|
|
|
(103)
|
|
|
1,048
|
|
(109.8)
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
70
|
|
(100.0)
|
|
|
(25)
|
|
|
253
|
|
(109.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations
|
|
|
(4)
|
|
|
199
|
|
(102.0)
|
|
|
(78)
|
|
|
795
|
|
(109.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
4,224
|
|
$
|
4,391
|
|
(3.8)
|
|
$
|
7,978
|
|
$
|
8,449
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
12,779
|
|
|
12,744
|
|
0.3
|
|
|
12,774
|
|
|
12,730
|
|
0.3
|
|
Weighted average
shares outstanding - diluted
|
|
|
12,784
|
|
|
12,757
|
|
0.2
|
|
|
12,779
|
|
|
12,743
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
—
|
|
$
|
0.63
|
|
$
|
0.60
|
|
5.0
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
0.01
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.06
|
|
(116.7)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.34
|
|
(2.9)
|
|
$
|
0.62
|
|
$
|
0.66
|
|
(6.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
-
|
|
$
|
0.63
|
|
$
|
0.60
|
|
5.0
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
0.01
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.06
|
|
(116.7)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.34
|
|
(2.9)
|
|
$
|
0.62
|
|
$
|
0.66
|
|
(6.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.08
|
|
25.0
|
|
|
0.20
|
|
|
0.15
|
|
33.3
|
|
Shore Bancshares,
Inc.
Consolidated Average
Balance Sheets
(Dollars in
thousands)
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2),
(3)
|
|
$
|
1,221,215
|
|
4.53
|
%
|
$
|
1,141,296
|
|
4.45
|
%
|
$
|
1,211,618
|
|
4.55
|
%
|
$
|
1,123,852
|
|
4.44
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
159,878
|
|
2.22
|
|
|
186,453
|
|
2.11
|
|
|
162,429
|
|
2.34
|
|
|
191,839
|
|
2.09
|
|
Interest-bearing
deposits
|
|
|
18,325
|
|
2.47
|
|
|
13,301
|
|
1.82
|
|
|
23,039
|
|
2.42
|
|
|
11,536
|
|
1.72
|
|
Total earning
assets
|
|
|
1,399,418
|
|
4.24
|
%
|
|
1,341,050
|
|
4.10
|
%
|
|
1,397,086
|
|
4.26
|
%
|
|
1,327,227
|
|
4.08
|
%
|
Cash and due from
banks
|
|
|
17,225
|
|
|
|
|
16,905
|
|
|
|
|
17,211
|
|
|
|
|
16,646
|
|
|
|
Other
assets
|
|
|
61,906
|
|
|
|
|
78,185
|
|
|
|
|
60,340
|
|
|
|
|
77,266
|
|
|
|
Allowance for credit
losses
|
|
|
(10,456)
|
|
|
|
|
(10,193)
|
|
|
|
|
(10,423)
|
|
|
|
|
(10,081)
|
|
|
|
Total
assets
|
|
$
|
1,468,093
|
|
|
|
$
|
1,425,947
|
|
|
|
$
|
1,464,214
|
|
|
|
$
|
1,411,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
234,775
|
|
0.65
|
%
|
$
|
204,068
|
|
0.21
|
%
|
$
|
237,271
|
|
0.63
|
%
|
$
|
210,403
|
|
0.22
|
%
|
Money market and
savings deposits
|
|
|
385,272
|
|
0.84
|
|
|
381,047
|
|
0.13
|
|
|
384,508
|
|
0.84
|
|
|
380,969
|
|
0.13
|
|
Brokered
deposits
|
|
|
20,866
|
|
2.52
|
|
|
10,684
|
|
1.96
|
|
|
21,470
|
|
2.44
|
|
|
5,372
|
|
1.96
|
|
Certificates of deposit
$100,000 or more
|
|
|
107,549
|
|
1.54
|
|
|
96,873
|
|
0.54
|
|
|
103,067
|
|
1.40
|
|
|
99,387
|
|
0.52
|
|
Other time
deposits
|
|
|
145,900
|
|
1.31
|
|
|
146,946
|
|
0.45
|
|
|
143,226
|
|
1.16
|
|
|
149,619
|
|
0.46
|
|
Interest-bearing
deposits
|
|
|
894,362
|
|
0.99
|
|
|
839,618
|
|
0.27
|
|
|
889,542
|
|
0.94
|
|
|
845,750
|
|
0.27
|
|
Short-term
borrowings
|
|
|
21,557
|
|
2.70
|
|
|
91,980
|
|
2.01
|
|
|
27,239
|
|
2.65
|
|
|
74,381
|
|
1.86
|
|
Long-term
borrowings
|
|
|
15,000
|
|
2.86
|
|
|
—
|
|
—
|
|
|
15,000
|
|
2.86
|
|
|
—
|
|
—
|
|
Total interest-bearing
liabilities
|
|
|
930,919
|
|
1.06
|
%
|
|
931,598
|
|
0.44
|
%
|
|
931,781
|
|
1.02
|
%
|
|
920,131
|
|
0.40
|
%
|
Noninterest-bearing
deposits
|
|
|
339,589
|
|
|
|
|
322,172
|
|
|
|
|
335,334
|
|
|
|
|
319,434
|
|
|
|
Accrued expenses and
other liabilities
|
|
|
8,484
|
|
|
|
|
5,697
|
|
|
|
|
10,051
|
|
|
|
|
5,715
|
|
|
|
Stockholders'
equity
|
|
|
189,101
|
|
|
|
|
166,480
|
|
|
|
|
187,048
|
|
|
|
|
165,778
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,468,093
|
|
|
|
$
|
1,425,947
|
|
|
|
$
|
1,464,214
|
|
|
|
$
|
1,411,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.18
|
%
|
|
|
|
3.66
|
%
|
|
|
|
3.24
|
%
|
|
|
|
3.68
|
%
|
Net interest
margin
|
|
|
|
|
3.54
|
%
|
|
|
|
3.79
|
%
|
|
|
|
3.57
|
%
|
|
|
|
3.80
|
%
|
____________________________
|
(1) All amounts
are reported on a tax-equivalent basis computed using the statutory
federal income tax rate of 21.0%, exclusive of the alternative
minimum tax rate
and nondeductible interest
expense.
|
(2) Average loan
balances include nonaccrual loans.
|
(3) Interest
income on loans includes amortized loan fees, net of costs and
accretion of discounts on acquired loans, which are included in the
yield calculations.
|
Shore Bancshares,
Inc.
Financial Highlights
By Quarter
(Dollars in
thousands, except per share data)
|
|
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
Q2 2019
|
|
Q2 2019
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
|
compared
to
|
|
compared
to
|
|
|
|
Q2
2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2018
|
|
Q1 2019
|
|
Q2 2018
|
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent net
interest income
|
|
$
|
12,334
|
|
$
|
12,428
|
|
$
|
12,756
|
|
$
|
12,975
|
|
$
|
12,661
|
|
(0.8)
|
%
|
(2.6)
|
%
|
Less:
Taxable-equivalent adjustment
|
|
|
41
|
|
|
34
|
|
|
30
|
|
|
28
|
|
|
28
|
|
20.6
|
|
46.4
|
|
Net interest
income
|
|
|
12,293
|
|
|
12,394
|
|
|
12,726
|
|
|
12,947
|
|
|
12,633
|
|
(0.8)
|
|
(2.7)
|
|
Provision for credit
losses
|
|
|
200
|
|
|
100
|
|
|
460
|
|
|
307
|
|
|
418
|
|
100.0
|
|
(52.2)
|
|
Noninterest
income
|
|
|
2,609
|
|
|
2,188
|
|
|
2,112
|
|
|
2,465
|
|
|
2,296
|
|
19.2
|
|
13.6
|
|
Noninterest
expense
|
|
|
8,985
|
|
|
9,343
|
|
|
9,216
|
|
|
9,310
|
|
|
8,853
|
|
(3.8)
|
|
1.5
|
|
Income from continuing
operations
before income taxes
|
|
|
5,717
|
|
|
5,139
|
|
|
5,162
|
|
|
5,795
|
|
|
5,658
|
|
11.2
|
|
1.0
|
|
Income tax
expense
|
|
|
1,489
|
|
|
1,311
|
|
|
1,309
|
|
|
1,539
|
|
|
1,466
|
|
13.6
|
|
1.6
|
|
Income from continuing
operations
|
|
|
4,228
|
|
|
3,828
|
|
|
3,853
|
|
|
4,256
|
|
|
4,192
|
|
10.4
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued
operations before income taxes
|
|
|
(4)
|
|
|
(99)
|
|
|
104
|
|
|
269
|
|
|
269
|
|
96.0
|
|
(101.5)
|
|
Gain on sale of
insurance agency
|
|
|
—
|
|
|
—
|
|
|
12,736
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Income tax expense
(benefit)
|
|
|
—
|
|
|
(25)
|
|
|
4,599
|
|
|
71
|
|
|
70
|
|
100.0
|
|
(100.0)
|
|
(Loss) Income from
discontinued
operations
|
|
|
(4)
|
|
|
(74)
|
|
|
8,241
|
|
|
198
|
|
|
199
|
|
94.6
|
|
(102.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,224
|
|
$
|
3,754
|
|
$
|
12,094
|
|
$
|
4,454
|
|
$
|
4,391
|
|
12.5
|
|
(3.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.16
|
%
|
|
1.06
|
%
|
|
1.04
|
%
|
|
1.16
|
%
|
|
1.18
|
%
|
10
|
bp
|
(2)
|
bp
|
Return on average
equity
|
|
|
8.97
|
|
|
8.39
|
|
|
8.83
|
|
|
9.92
|
|
|
10.10
|
|
58
|
|
(113)
|
|
Return on average
tangible equity (1)
|
|
|
10.31
|
|
|
9.72
|
|
|
11.34
|
|
|
12.77
|
|
|
13.02
|
|
59
|
|
(271)
|
|
Net interest
margin
|
|
|
3.54
|
|
|
3.61
|
|
|
3.58
|
|
|
3.76
|
|
|
3.79
|
|
(7)
|
|
(25)
|
|
Efficiency ratio -
GAAP
|
|
|
60.29
|
|
|
64.07
|
|
|
62.11
|
|
|
60.41
|
|
|
59.30
|
|
(378)
|
|
99
|
|
Efficiency ratio -
Non-GAAP (1)
|
|
|
59.09
|
|
|
62.81
|
|
|
60.18
|
|
|
58.55
|
|
|
57.67
|
|
(372)
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.33
|
|
10.0
|
%
|
—
|
%
|
(Loss) Income from
discontinued
operations
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
|
0.01
|
|
100.0
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
$
|
0.34
|
|
13.8
|
|
(2.9)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.33
|
|
10.0
|
|
—
|
|
(Loss) Income from
discontinued
operations
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
|
0.01
|
|
100.0
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
$
|
0.34
|
|
13.8
|
|
(2.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
|
0.08
|
|
|
0.08
|
|
—
|
|
25.0
|
|
Book value per common
share at period end
|
|
|
14.97
|
|
|
14.64
|
|
|
14.37
|
|
|
13.45
|
|
|
13.19
|
|
2.3
|
|
13.5
|
|
Tangible book value
per common
share at period end (1)
|
|
|
13.40
|
|
|
13.06
|
|
|
12.77
|
|
|
10.96
|
|
|
10.68
|
|
2.6
|
|
25.5
|
|
Market value at period
end
|
|
|
16.34
|
|
|
14.91
|
|
|
14.54
|
|
|
17.82
|
|
|
19.02
|
|
9.6
|
|
(14.1)
|
|
Market
range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
16.48
|
|
|
16.11
|
|
|
18.32
|
|
|
19.84
|
|
|
20.09
|
|
2.3
|
|
(18.0)
|
|
Low
|
|
|
14.84
|
|
|
14.00
|
|
|
12.95
|
|
|
16.63
|
|
|
17.92
|
|
6.0
|
|
(17.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,221,215
|
|
$
|
1,201,913
|
|
$
|
1,189,504
|
|
$
|
1,174,513
|
|
$
|
1,141,296
|
|
1.6
|
%
|
7.0
|
%
|
Investment
securities
|
|
|
159,878
|
|
|
165,009
|
|
|
177,700
|
|
|
178,572
|
|
|
186,453
|
|
(3.1)
|
|
(14.3)
|
|
Earning
assets
|
|
|
1,399,418
|
|
|
1,394,728
|
|
|
1,385,368
|
|
|
1,370,573
|
|
|
1,341,050
|
|
0.3
|
|
4.4
|
|
Assets
|
|
|
1,468,093
|
|
|
1,460,291
|
|
|
1,463,839
|
|
|
1,457,074
|
|
|
1,425,947
|
|
0.5
|
|
3.0
|
|
Deposits
|
|
|
1,233,951
|
|
|
1,215,702
|
|
|
1,197,445
|
|
|
1,192,845
|
|
|
1,161,790
|
|
1.5
|
|
6.2
|
|
Stockholders'
equity
|
|
|
189,101
|
|
|
184,972
|
|
|
173,214
|
|
|
170,299
|
|
|
166,480
|
|
2.2
|
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
$
|
313
|
|
$
|
25
|
|
$
|
445
|
|
$
|
100
|
|
$
|
84
|
|
1,152.0
|
%
|
272.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
14,592
|
|
$
|
15,360
|
|
$
|
16,655
|
|
$
|
7,362
|
|
$
|
6,757
|
|
(5.0)
|
|
116.0
|
|
Loans 90 days past due
and still
accruing
|
|
|
439
|
|
|
47
|
|
|
139
|
|
|
3
|
|
|
—
|
|
834.0
|
|
—
|
|
Other real estate
owned
|
|
|
524
|
|
|
979
|
|
|
1,222
|
|
|
1,518
|
|
|
1,569
|
|
(46.5)
|
|
(66.6)
|
|
Total nonperforming
assets
|
|
$
|
15,555
|
|
$
|
16,386
|
|
$
|
18,016
|
|
$
|
8,883
|
|
$
|
8,326
|
|
(5.1)
|
|
86.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing troubled
debt
restructurings (TDRs)
|
|
$
|
7,768
|
|
$
|
7,828
|
|
$
|
8,663
|
|
$
|
8,933
|
|
$
|
9,620
|
|
(0.8)
|
|
(19.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and
accruing TDRs
|
|
$
|
23,323
|
|
$
|
24,214
|
|
$
|
26,679
|
|
$
|
17,816
|
|
$
|
17,946
|
|
(3.7)
|
|
30.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND
CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
12.85
|
%
|
|
12.59
|
%
|
|
12.35
|
%
|
|
11.63
|
%
|
|
11.58
|
%
|
26
|
bp
|
127
|
bp
|
Period-end tangible
equity to
tangible assets (1)
|
|
|
11.66
|
|
|
11.39
|
|
|
11.13
|
|
|
9.69
|
|
|
9.59
|
|
27
|
|
207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
charge-offs to
average loans
|
|
|
0.10
|
|
|
0.01
|
|
|
0.15
|
|
|
0.03
|
|
|
0.03
|
|
9
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
|
|
0.83
|
|
|
0.86
|
|
|
0.87
|
|
|
0.87
|
|
|
0.87
|
|
(3)
|
|
(4)
|
|
Nonaccrual
loans
|
|
|
70.62
|
|
|
67.83
|
|
|
62.10
|
|
|
140.29
|
|
|
149.79
|
|
279
|
|
(7,917)
|
|
Nonperforming
assets
|
|
|
66.25
|
|
|
63.58
|
|
|
57.41
|
|
|
116.27
|
|
|
121.56
|
|
267
|
|
(5,531)
|
|
Accruing
TDRs
|
|
|
132.66
|
|
|
133.09
|
|
|
119.39
|
|
|
115.62
|
|
|
105.21
|
|
(43)
|
|
2,745
|
|
Nonperforming assets
and
accruing TDRs
|
|
|
44.18
|
|
|
43.02
|
|
|
38.77
|
|
|
57.97
|
|
|
56.40
|
|
116
|
|
(1,222)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
1.18
|
|
|
1.27
|
|
|
1.39
|
|
|
0.62
|
|
|
0.58
|
|
(9)
|
|
60
|
|
Accruing
TDRs
|
|
|
0.63
|
|
|
0.65
|
|
|
0.72
|
|
|
0.76
|
|
|
0.83
|
|
(2)
|
|
(20)
|
|
Nonaccrual loans and
accruing
TDRs
|
|
|
1.80
|
|
|
1.91
|
|
|
2.12
|
|
|
1.38
|
|
|
1.42
|
|
(11)
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other
real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
1.25
|
|
|
1.35
|
|
|
1.51
|
|
|
0.75
|
|
|
0.72
|
|
(10)
|
|
53
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.88
|
|
|
2.00
|
|
|
2.23
|
|
|
1.51
|
|
|
1.55
|
|
(12)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.98
|
|
|
1.03
|
|
|
1.12
|
|
|
0.50
|
|
|
0.47
|
|
(5)
|
|
51
|
|
Nonperforming
assets
|
|
|
1.04
|
|
|
1.10
|
|
|
1.21
|
|
|
0.60
|
|
|
0.57
|
|
(6)
|
|
47
|
|
Accruing
TDRs
|
|
|
0.52
|
|
|
0.53
|
|
|
0.58
|
|
|
0.61
|
|
|
0.66
|
|
(1)
|
|
(14)
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.56
|
|
|
1.63
|
|
|
1.80
|
|
|
1.21
|
|
|
1.24
|
|
(7)
|
|
32
|
|
______________________
|
(1) See the
reconciliation table on page 16 of 16.
|
Shore Bancshares,
Inc.
Consolidated
Statements of Income By Quarter
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2019
|
|
Q2 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared
to
|
|
compared
to
|
|
|
|
Q2
2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2018
|
|
Q1 2019
|
|
Q2 2018
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
13,749
|
|
$
|
13,499
|
|
$
|
13,452
|
|
$
|
13,205
|
|
$
|
12,631
|
|
1.9
|
%
|
8.9
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
887
|
|
|
998
|
|
|
1,339
|
|
|
947
|
|
|
982
|
|
(11.1)
|
|
(9.7)
|
|
Interest on deposits
with other banks
|
|
|
113
|
|
|
163
|
|
|
103
|
|
|
84
|
|
|
61
|
|
(30.7)
|
|
85.2
|
|
Total interest
income
|
|
|
14,749
|
|
|
14,660
|
|
|
14,894
|
|
|
14,236
|
|
|
13,674
|
|
0.6
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,204
|
|
|
1,947
|
|
|
1,577
|
|
|
826
|
|
|
580
|
|
13.2
|
|
280.0
|
|
Interest on short-term
borrowings
|
|
|
145
|
|
|
213
|
|
|
486
|
|
|
463
|
|
|
461
|
|
(31.9)
|
|
(68.5)
|
|
Interest on long-term
borrowings
|
|
|
107
|
|
|
106
|
|
|
105
|
|
|
—
|
|
|
—
|
|
0.9
|
|
—
|
|
Total interest
expense
|
|
|
2,456
|
|
|
2,266
|
|
|
2,168
|
|
|
1,289
|
|
|
1,041
|
|
8.4
|
|
135.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
12,293
|
|
|
12,394
|
|
|
12,726
|
|
|
12,947
|
|
|
12,633
|
|
(0.8)
|
|
(2.7)
|
|
Provision for credit
losses
|
|
|
200
|
|
|
100
|
|
|
460
|
|
|
307
|
|
|
418
|
|
100.0
|
|
(52.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
12,093
|
|
|
12,294
|
|
|
12,266
|
|
|
12,640
|
|
|
12,215
|
|
(1.6)
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
1,028
|
|
|
934
|
|
|
1,045
|
|
|
982
|
|
|
947
|
|
10.1
|
|
8.6
|
|
Trust and investment
fee income
|
|
|
385
|
|
|
372
|
|
|
360
|
|
|
383
|
|
|
414
|
|
3.5
|
|
(7.0)
|
|
Other noninterest
income
|
|
|
1,196
|
|
|
882
|
|
|
707
|
|
|
1,100
|
|
|
935
|
|
35.6
|
|
27.9
|
|
Total noninterest
income
|
|
|
2,609
|
|
|
2,188
|
|
|
2,112
|
|
|
2,465
|
|
|
2,296
|
|
19.2
|
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
3,792
|
|
|
3,766
|
|
|
3,999
|
|
|
4,209
|
|
|
4,101
|
|
0.7
|
|
(7.5)
|
|
Employee
benefits
|
|
|
1,068
|
|
|
1,254
|
|
|
797
|
|
|
983
|
|
|
1,045
|
|
(14.8)
|
|
2.2
|
|
Occupancy
expense
|
|
|
668
|
|
|
691
|
|
|
649
|
|
|
646
|
|
|
650
|
|
(3.3)
|
|
2.8
|
|
Furniture and
equipment expense
|
|
|
295
|
|
|
263
|
|
|
236
|
|
|
212
|
|
|
247
|
|
12.2
|
|
19.4
|
|
Data
processing
|
|
|
919
|
|
|
910
|
|
|
844
|
|
|
930
|
|
|
689
|
|
1.0
|
|
33.4
|
|
Directors'
fees
|
|
|
116
|
|
|
86
|
|
|
145
|
|
|
145
|
|
|
152
|
|
34.9
|
|
(23.7)
|
|
Amortization of
intangible assets
|
|
|
155
|
|
|
162
|
|
|
269
|
|
|
270
|
|
|
228
|
|
(4.3)
|
|
(32.0)
|
|
FDIC insurance premium
expense
|
|
|
181
|
|
|
205
|
|
|
159
|
|
|
193
|
|
|
214
|
|
(11.7)
|
|
(15.4)
|
|
Other real estate
owned expenses, net
|
|
|
60
|
|
|
233
|
|
|
228
|
|
|
166
|
|
|
5
|
|
(74.2)
|
|
1,100.0
|
|
Legal and professional
fees
|
|
|
559
|
|
|
601
|
|
|
603
|
|
|
443
|
|
|
487
|
|
(7.0)
|
|
14.8
|
|
Other noninterest
expenses
|
|
|
1,172
|
|
|
1,172
|
|
|
1,287
|
|
|
1,113
|
|
|
1,035
|
|
—
|
|
13.2
|
|
Total noninterest
expense
|
|
|
8,985
|
|
|
9,343
|
|
|
9,216
|
|
|
9,310
|
|
|
8,853
|
|
(3.8)
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income
taxes
|
|
|
5,717
|
|
|
5,139
|
|
|
5,162
|
|
|
5,795
|
|
|
5,658
|
|
11.2
|
|
1.0
|
|
Income tax
expense
|
|
|
1,489
|
|
|
1,311
|
|
|
1,309
|
|
|
1,539
|
|
|
1,466
|
|
13.6
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
4,228
|
|
|
3,828
|
|
|
3,853
|
|
|
4,256
|
|
|
4,192
|
|
10.4
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations before
income taxes
|
|
|
(4)
|
|
|
(99)
|
|
|
104
|
|
|
269
|
|
|
269
|
|
96.0
|
|
(101.5)
|
|
Gain on sale of
insurance agency
|
|
|
—
|
|
|
—
|
|
|
12,736
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(Loss) Income tax
expense (benefit)
|
|
|
—
|
|
|
(25)
|
|
|
4,599
|
|
|
71
|
|
|
70
|
|
100.0
|
|
(100.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
(4)
|
|
|
(74)
|
|
|
8,241
|
|
|
198
|
|
|
199
|
|
94.6
|
|
(102.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
4,224
|
|
$
|
3,754
|
|
$
|
12,094
|
|
$
|
4,454
|
|
$
|
4,391
|
|
12.5
|
|
(3.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
12,779
|
|
|
12,769
|
|
|
12,749
|
|
|
12,748
|
|
|
12,744
|
|
0.1
|
|
0.3
|
|
Weighted average
shares outstanding - diluted
|
|
|
12,784
|
|
|
12,773
|
|
|
12,766
|
|
|
12,761
|
|
|
12,757
|
|
0.1
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.33
|
|
10.0
|
|
—
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
|
0.01
|
|
100.0
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
$
|
0.34
|
|
13.8
|
|
(2.9)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.33
|
|
10.0
|
|
—
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
|
0.01
|
|
100.0
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
$
|
0.34
|
|
13.8
|
|
(2.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
|
0.08
|
|
|
0.08
|
|
—
|
|
25.0
|
|
Shore Bancshares,
Inc.
Consolidated Average
Balance Sheets By Quarter
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2019
|
|
Q2 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to
|
|
compared to
|
|
|
|
Q2
2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2018
|
|
Q1 2019
|
|
Q2 2018
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
|
|
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
|
|
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2),
(3)
|
|
|
1,221,215
|
|
4.53
|
%
|
$
|
1,201,913
|
|
4.57
|
%
|
$
|
1,189,504
|
|
4.50
|
%
|
$
|
1,174,513
|
|
4.47
|
%
|
$
|
1,141,296
|
|
4.45
|
%
|
1.6
|
%
|
7.0
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
159,878
|
|
2.22
|
|
|
165,009
|
|
2.45
|
|
|
177,700
|
|
2.46
|
|
|
178,572
|
|
2.12
|
|
|
186,453
|
|
2.11
|
|
(3.1)
|
|
(14.3)
|
|
Interest-bearing
deposits
|
|
|
18,325
|
|
2.47
|
|
|
27,806
|
|
2.38
|
|
|
18,164
|
|
2.25
|
|
|
17,488
|
|
1.91
|
|
|
13,301
|
|
1.82
|
|
(34.1)
|
|
37.8
|
|
Total earning
assets
|
|
|
1,399,418
|
|
4.24
|
%
|
|
1,394,728
|
|
4.27
|
%
|
|
1,385,368
|
|
4.20
|
%
|
|
1,370,573
|
|
4.13
|
%
|
|
1,341,050
|
|
4.10
|
%
|
0.3
|
|
4.4
|
|
Cash and due from
banks
|
|
|
17,225
|
|
|
|
|
17,196
|
|
|
|
|
18,204
|
|
|
|
|
17,790
|
|
|
|
|
16,905
|
|
|
|
0.2
|
|
1.9
|
|
Other
assets
|
|
|
61,906
|
|
|
|
|
58,756
|
|
|
|
|
70,858
|
|
|
|
|
79,065
|
|
|
|
|
78,185
|
|
|
|
5.4
|
|
(20.8)
|
|
Allowance for credit
losses
|
|
|
(10,456)
|
|
|
|
|
(10,389)
|
|
|
|
|
(10,591)
|
|
|
|
|
(10,354)
|
|
|
|
|
(10,193)
|
|
|
|
0.6
|
|
2.6
|
|
Total
assets
|
|
$
|
1,468,093
|
|
|
|
$
|
1,460,291
|
|
|
|
$
|
1,463,839
|
|
|
|
$
|
1,457,074
|
|
|
|
$
|
1,425,947
|
|
|
|
0.5
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
234,775
|
|
0.65
|
%
|
$
|
239,794
|
|
0.61
|
%
|
$
|
218,519
|
|
0.53
|
%
|
$
|
221,905
|
|
0.32
|
%
|
$
|
204,068
|
|
0.21
|
%
|
(2.1)
|
|
15.0
|
|
Money market and
savings deposits
|
|
|
385,272
|
|
0.84
|
|
|
383,738
|
|
0.85
|
|
|
378,163
|
|
0.68
|
|
|
373,357
|
|
0.14
|
|
|
381,047
|
|
0.13
|
|
0.4
|
|
1.1
|
|
Brokered
deposits
|
|
|
20,866
|
|
2.52
|
|
|
22,080
|
|
2.37
|
|
|
22,816
|
|
2.17
|
|
|
25,507
|
|
2.01
|
|
|
10,684
|
|
1.96
|
|
(5.5)
|
|
95.3
|
|
Certificates of deposit
$100,000 or more
|
|
|
107,549
|
|
1.54
|
|
|
98,535
|
|
1.24
|
|
|
97,023
|
|
0.94
|
|
|
97,563
|
|
0.69
|
|
|
96,873
|
|
0.54
|
|
9.1
|
|
11.0
|
|
Other time
deposits
|
|
|
145,900
|
|
1.31
|
|
|
140,523
|
|
1.02
|
|
|
141,702
|
|
0.80
|
|
|
145,130
|
|
0.57
|
|
|
146,946
|
|
0.45
|
|
3.8
|
|
(0.7)
|
|
Interest-bearing
deposits
|
|
|
894,362
|
|
0.99
|
|
|
884,670
|
|
0.89
|
|
|
858,223
|
|
0.73
|
|
|
863,462
|
|
0.36
|
|
|
839,618
|
|
0.27
|
|
1.1
|
|
6.5
|
|
Short-term
borrowings
|
|
|
21,557
|
|
2.70
|
|
|
32,984
|
|
2.62
|
|
|
72,462
|
|
2.66
|
|
|
87,925
|
|
2.09
|
|
|
91,980
|
|
2.01
|
|
(34.6)
|
|
(76.6)
|
|
Long-term
borrowings
|
|
|
15,000
|
|
2.86
|
|
|
15,000
|
|
2.87
|
|
|
14,348
|
|
2.89
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total interest-bearing
liabilities
|
|
|
930,919
|
|
1.06
|
%
|
|
932,654
|
|
0.99
|
%
|
|
945,033
|
|
0.91
|
%
|
|
951,387
|
|
0.52
|
%
|
|
931,598
|
|
0.44
|
%
|
(0.2)
|
|
(0.1)
|
|
Noninterest-bearing
deposits
|
|
|
339,589
|
|
|
|
|
331,032
|
|
|
|
|
339,222
|
|
|
|
|
329,383
|
|
|
|
|
322,172
|
|
|
|
2.6
|
|
5.4
|
|
Accrued expenses and
other liabilities
|
|
|
8,484
|
|
|
|
|
11,633
|
|
|
|
|
6,370
|
|
|
|
|
6,005
|
|
|
|
|
5,697
|
|
|
|
(27.1)
|
|
48.9
|
|
Stockholders'
equity
|
|
|
189,101
|
|
|
|
|
184,972
|
|
|
|
|
173,214
|
|
|
|
|
170,299
|
|
|
|
|
166,480
|
|
|
|
2.2
|
|
13.6
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,468,093
|
|
|
|
$
|
1,460,291
|
|
|
|
$
|
1,463,839
|
|
|
|
$
|
1,457,074
|
|
|
|
$
|
1,425,947
|
|
|
|
0.5
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.18
|
%
|
|
|
|
3.28
|
%
|
|
|
|
3.29
|
%
|
|
|
|
3.61
|
%
|
|
|
|
3.66
|
%
|
|
|
|
|
Net interest
margin
|
|
|
|
|
3.54
|
%
|
|
|
|
3.61
|
%
|
|
|
|
3.58
|
%
|
|
|
|
3.76
|
%
|
|
|
|
3.79
|
%
|
|
|
|
|
____________________________________
|
(1) All amounts
are reported on a tax-equivalent basis computed using the statutory
federal income tax rate of 21.0%, exclusive of the alternative
minimum tax rate and nondeductible interest expense.
|
(2) Average loan
balances include nonaccrual loans.
|
(3) Interest
income on loans includes amortized loan fees, net of costs and
accretion of discounts on acquired loans, which are included in the
yield calculations.
|
Shore Bancshares,
Inc.
Reconciliation of
Generally Accepted Accounting Principles (GAAP)
and Non-GAAP
Measures
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
|
|
YTD
|
|
|
|
Q2
2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2018
|
|
6/30/2019
|
|
6/30/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles return on average equity and return
on average tangible equity from continuing operations (Note
1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
4,228
|
|
$
|
3,828
|
|
$
|
3,853
|
|
$
|
4,256
|
|
$
|
4,192
|
|
$
|
8,056
|
|
$
|
7,654
|
|
Net income from
continuing operations - annualized (A)
|
|
$
|
16,958
|
|
$
|
15,525
|
|
$
|
15,286
|
|
$
|
16,885
|
|
$
|
16,814
|
|
$
|
16,246
|
|
$
|
15,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets
|
|
$
|
4,344
|
|
$
|
3,949
|
|
$
|
4,054
|
|
$
|
4,457
|
|
$
|
4,362
|
|
$
|
8,293
|
|
$
|
7,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets -
annualized
(B)
|
|
$
|
17,424
|
|
$
|
16,015
|
|
$
|
16,084
|
|
$
|
17,683
|
|
$
|
17,496
|
|
$
|
16,723
|
|
$
|
15,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity (C)
|
|
$
|
189,101
|
|
$
|
184,972
|
|
$
|
173,214
|
|
$
|
170,299
|
|
$
|
166,480
|
|
$
|
187,048
|
|
$
|
165,778
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(20,138)
|
|
|
(20,281)
|
|
|
(31,410)
|
|
|
(31,810)
|
|
|
(32,088)
|
|
|
(20,209)
|
|
|
(32,403)
|
|
Average tangible
equity (D)
|
|
$
|
168,963
|
|
$
|
164,691
|
|
$
|
141,804
|
|
$
|
138,489
|
|
$
|
134,392
|
|
$
|
166,839
|
|
$
|
133,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP) (A)/(C)
|
|
|
8.97
|
%
|
|
8.39
|
%
|
|
8.83
|
%
|
|
9.91
|
%
|
|
10.10
|
%
|
|
8.69
|
%
|
|
9.31
|
%
|
Return on average
tangible equity (Non-GAAP) (B)/(D)
|
|
|
10.31
|
%
|
|
9.72
|
%
|
|
11.34
|
%
|
|
12.77
|
%
|
|
13.02
|
%
|
|
10.02
|
%
|
|
11.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles GAAP efficiency ratio and non-
GAAP efficiency ratio from continuing operations (Note
2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(E)
|
|
$
|
8,985
|
|
$
|
9,343
|
|
$
|
9,216
|
|
$
|
9,310
|
|
$
|
8,853
|
|
$
|
18,328
|
|
$
|
18,305
|
|
Less:
Amortization of intangible assets
|
|
|
(155)
|
|
|
(162)
|
|
|
(269)
|
|
|
(270)
|
|
|
(228)
|
|
|
(317)
|
|
|
(327)
|
|
Adjusted noninterest
expense (F)
|
|
$
|
8,830
|
|
$
|
9,181
|
|
$
|
8,947
|
|
$
|
9,040
|
|
$
|
8,625
|
|
$
|
18,011
|
|
$
|
17,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(G)
|
|
|
12,293
|
|
|
12,394
|
|
|
12,726
|
|
|
12,947
|
|
|
12,633
|
|
|
24,687
|
|
|
24,962
|
|
Add:
Taxable-equivalent adjustment
|
|
|
41
|
|
|
34
|
|
|
30
|
|
|
28
|
|
|
28
|
|
|
75
|
|
|
56
|
|
Taxable-equivalent
net interest income (H)
|
|
$
|
12,334
|
|
$
|
12,428
|
|
$
|
12,756
|
|
$
|
12,975
|
|
$
|
12,661
|
|
$
|
24,762
|
|
$
|
25,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
(I)
|
|
$
|
2,609
|
|
$
|
2,188
|
|
$
|
2,112
|
|
$
|
2,465
|
|
$
|
2,296
|
|
$
|
4,797
|
|
|
4,436
|
|
Adjusted noninterest
income (J)
|
|
$
|
2,609
|
|
$
|
2,188
|
|
$
|
2,112
|
|
$
|
2,465
|
|
$
|
2,296
|
|
$
|
4,797
|
|
$
|
4,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) (E)/(G)+(I)
|
|
|
60.29
|
%
|
|
64.07
|
%
|
|
62.11
|
%
|
|
60.41
|
%
|
|
59.30
|
%
|
|
62.16
|
%
|
|
62.22
|
%
|
Efficiency ratio
(Non-GAAP) (F)/(H)+(J)
|
|
|
59.09
|
%
|
|
62.81
|
%
|
|
60.18
|
%
|
|
58.55
|
%
|
|
57.67
|
%
|
|
60.93
|
%
|
|
61.04
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles book value per common share and
tangible book value per common share (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(L)
|
|
$
|
191,307
|
|
$
|
187,082
|
|
$
|
183,185
|
|
$
|
171,419
|
|
$
|
168,115
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
(20,383)
|
|
|
(31,706)
|
|
|
(31,987)
|
|
|
|
|
|
|
|
Tangible equity
(M)
|
|
$
|
171,249
|
|
$
|
166,868
|
|
$
|
162,802
|
|
$
|
139,713
|
|
$
|
136,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(N)
|
|
|
12,780
|
|
|
12,780
|
|
|
12,749
|
|
|
12,748
|
|
|
12,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP) (L)/(N)
|
|
$
|
14.97
|
|
$
|
14.64
|
|
$
|
14.37
|
|
$
|
13.45
|
|
$
|
13.19
|
|
|
|
|
|
|
|
Tangible book value
per common share (Non-GAAP)
(M)/(N)
|
|
$
|
13.40
|
|
$
|
13.06
|
|
$
|
12.77
|
|
$
|
10.96
|
|
$
|
10.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles equity to assets and tangible equity
to tangible assets
(Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(O)
|
|
$
|
191,307
|
|
$
|
187,082
|
|
$
|
183,185
|
|
$
|
171,419
|
|
$
|
168,115
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
(20,383)
|
|
|
(31,706)
|
|
|
(31,987)
|
|
|
|
|
|
|
|
Tangible equity
(P)
|
|
$
|
171,249
|
|
$
|
166,868
|
|
$
|
162,802
|
|
$
|
139,713
|
|
$
|
136,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Q)
|
|
$
|
1,488,562
|
|
$
|
1,485,799
|
|
$
|
1,483,076
|
|
$
|
1,473,543
|
|
$
|
1,451,714
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
(20,383)
|
|
|
(31,706)
|
|
|
(31,987)
|
|
|
|
|
|
|
|
Tangible assets
(R)
|
|
$
|
1,468,504
|
|
$
|
1,465,585
|
|
$
|
1,462,693
|
|
$
|
1,441,837
|
|
$
|
1,419,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
equity/assets (GAAP) (O)/(Q)
|
|
|
12.85
|
%
|
|
12.59
|
%
|
|
12.35
|
%
|
|
11.63
|
%
|
|
11.58
|
%
|
|
|
|
|
|
|
Period-end tangible
equity/tangible assets (Non-GAAP)
(P)/(R)
|
|
|
11.66
|
%
|
|
11.39
|
%
|
|
11.13
|
%
|
|
9.69
|
%
|
|
9.59
|
%
|
|
|
|
|
|
|
____________________________________
|
Note
1: Management believes that reporting tangible equity and
tangible assets more closely approximates the adequacy of capital
for regulatory purposes.
|
|
Note
2: Management believes that reporting the non-GAAP efficiency
ratio more closely measures its effectiveness of controlling
cash-based operating activities.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/shore-bancshares-reports-second-quarter-and-first-half-results-300891210.html
SOURCE Shore Bancshares, Inc.