EASTON, Md., Oct. 18, 2018 /PRNewswire/ -- Shore
Bancshares, Inc. (NASDAQ: SHBI) reported net income of $4.454 million or $0.35 per diluted common share for the third
quarter of 2018, compared to net income of $4.391 million or $0.34 per diluted common share for the second
quarter of 2018, and net income of $3.412
million or $0.27 per diluted
common share for the third quarter of 2017. The Company
reported net income of $12.903
million or $1.01 per diluted
common share for the first nine months of 2018, compared to net
income of $8.564 million or
$0.68 per diluted common share for
the first nine months of 2017.
When comparing the third quarter of 2018 to the second quarter
of 2018, the primary reasons for the improved results were
increases in net interest income of $314
thousand, noninterest income of $170
thousand and a reduction in provision for credit losses of
$111 thousand. These
improvements to income were partially offset by an increase in
noninterest expenses of $458
thousand. When comparing the third quarter of 2018 to
the third quarter of 2017, improved results were due to increases
in net interest income of $621
thousand, noninterest income of $285
thousand and a reduced corporate income tax rate from 35% to
21%, respectively, offset by an increase in noninterest expenses of
$566 thousand. When comparing
the first nine months of 2018 to the first nine months of 2017,
improved earnings were due to increases in net interest income of
$4.8 million, noninterest income of
$768 thousand, a reduction in
provision for credit losses of $532
thousand and a lower corporate income tax rate.
Noninterest expenses increased $3.0
million when comparing the first nine months of 2018 to the
first nine months of 2017, primarily due to operating four
additional branches for the entire nine months of 2018 compared to
only four months in 2017.
"We are pleased to report improved earnings for the quarter as
we continue to experience strong loan demand and growth in our core
deposits," said Lloyd L. "Scott" Beatty, Jr., President and Chief
Executive Officer. "Loans increased $23.7 million, while deposits increased
$6.7 million when comparing the third
and second quarter of 2018. We remain diligent in our efforts
to be a major participant in all lending and saving activities in
the states of Maryland and
Delaware as well as the Eastern
Shore of Virginia."
Balance Sheet Review
Total assets were $1.474 billion at September 30, 2018, a $79.0 million, or 5.7%, increase when compared to
$1.394 billion at the end of
2017. The primary reason for the increase was the addition of
$87.0 million in loans, which were
funded by a decrease in investment securities available for sale of
$29.3 million, and an increase in
short-term borrowings of $92.3
million.
Total deposits at September 30,
2018 decreased $20.9 million,
or 1.7%, when compared to December
31, 2017. The decrease in deposits was spread among
all interest-bearing deposit categories with the exception of
brokered deposits which increased $23.5
million in 2018. In addition, noninterest-bearing
deposits have increased $3.4 million
in 2018 helping offset the decrease in interest-bearing
deposits. The decline in deposits was primarily due to
seasonal shifts in municipal deposits coupled with deployment of
capital by many small business customers.
Total stockholders' equity increased $7.7
million, or 4.7%, when compared to the end of 2017. At
September 30, 2018, the ratio of
total equity to total assets was 11.63% and the ratio of total
tangible equity to total tangible assets was 9.69%, lower than the
11.75% and slightly higher than the 9.65%, respectively, at
December 31, 2017.
Total assets at September 30, 2018
increased $97.4 million, or 7.1%,
when compared to total assets at September
30, 2017. The primary reason for the increase was the
growth in loans of $133.3 million, or
12.7% which was partially funded by the decrease in investment
securities available for sale of $45.7
million. Total deposits decreased $24.4 million, or 2.0%, when compared to
September 30, 2017, which included a
reduction in interest-bearing deposits of $30.1 million, partially offset by an increase in
noninterest-bearing deposits of $5.7
million. Total stockholders' equity increased
$8.8 million, or 5.4%, when compared
to September 30, 2017.
Review of Quarterly Financial Results
Net interest
income was $12.9 million for the
third quarter of 2018, compared to $12.6
million for the second quarter of 2018 and $12.3 million for the third quarter of
2017. The increase in net interest income when compared to
the second quarter of 2018 was primarily due to an increase in
average loans of $33.2 million
contributing $574 thousand in
interest and fees on loans, partially offset by an increase in
interest expense on interest-bearing deposits of $246 thousand. The increase in net interest
income for the third quarter of 2018 when compared to the third
quarter of 2017 was primarily due to an increase in average loans
of $140.0 million resulting in
$1.4 million in additional interest
and fees on loans, partially offset by an increase in interest on
short-term borrowings of $459
thousand and higher rates paid on interest-bearing deposits
of $219 thousand. The Company's
net interest margin decreased to 3.76% from 3.79% in both the
second quarter of 2018 and third quarter of 2017. The decline
in net interest margin from the second quarter of 2018 and the
third quarter of 2017 was the direct result of increased short-term
borrowings and rising rates paid on interest-bearing deposits which
allowed the Bank to remain competitive for core deposits and help
fund loan growth during the period.
The provision for credit losses was $307
thousand for the three months ended September 30, 2018. The comparable amounts
were $418 thousand and $345 thousand for the three months ended
June 30, 2018 and September 30, 2017, respectively. Net
charge-offs were $100 thousand for
the third quarter of 2018, $84
thousand for the second quarter of 2018 and $182 thousand for the third quarter of
2017. The ratio of annualized net charge-offs to average
loans was 0.03% for the third and second quarters of 2018 and 0.07%
for the third quarter of 2017. The ratio of the allowance for
credit losses to period-end loans was 0.87% at September 30, 2018 and June 30, 2018 and 0.89% at September 30, 2017.
At September 30, 2018,
nonperforming assets were $8.9
million, an increase of $557
thousand, or 6.7%, when compared to June 30, 2018. Nonaccrual loans increased
$605 thousand, or 9.0%, while
accruing TDRs decreased $687
thousand, or 7.1%. When comparing September 30, 2018 to September 30, 2017, nonperforming assets
increased $780 thousand, or 9.6%, and
accruing TDRs decreased $4.6 million,
or 33.8%. The ratio of nonperforming assets to total assets
was 0.60%, 0.57% and 0.59% at September 30,
2018, June 30, 2018 and
September 30, 2017,
respectively. In addition, the ratio of accruing TDRs to
total assets at September 30, 2018
was 0.61%, compared to 0.66% at June 30,
2018 and 0.98% at September 30,
2017.
Total noninterest income for the third quarter of 2018 increased
$170 thousand, or 3.7%, when compared
to the second quarter of 2018 and increased $285 thousand, or 6.4%, when compared to the
third quarter of 2017. The increase from the second quarter
of 2018 was primarily due to increases in loan fee income, fees on
bank services and service charges on deposit accounts. The
increase when compared to the third quarter of 2017 was due to
increased loan servicing and fee income and higher insurance agency
commissions.
Total noninterest expense for the third quarter of 2018
increased $458 thousand, or 4.2%,
when compared to the second quarter of 2018 and increased
$566 thousand, or 5.3%, when compared
to the third quarter of 2017. The increase in noninterest
expenses from the second quarter of 2018 was primarily due to
increased salary and wages due to an additional working day in the
quarter, increased data processing fees and a write-down on an OREO
property of $128 thousand. The
increase in noninterest expense for the third quarter of 2018
compared to the third quarter of 2017 was primarily due to
increases in salary and wages and employee benefits resulting from
pay increases, the filling of vacant positions throughout the
Company and additional amortization of intangibles acquired in the
Northwest branch acquisition in 2017.
Review of Nine-Month Financial Results
Net interest
income for the first nine months of 2018 was $37.9 million, an increase of $4.7 million, or 14.3% when compared to the first
nine months of 2017. The increase was primarily due an
increase in average loans of approximately $184.2 million and higher yields earned on
taxable investment securities. This contributed to an increase in
the yield on total earning assets of 17 bps over the first nine
months of 2017. Partially offsetting the significant improvement on
total earning assets for the first nine months of 2018 were
increases in the average balance on short-term borrowings of
$75.0 million and interest-bearing
deposits of $47.4 million. Despite
the increase in the cost of total interest-bearing liabilities of
16 bps, the net interest margin improved to 3.79% for the first
nine months of 2018 compared to 3.75% for the first nine months of
2017.
The provisions for credit losses for the nine months ended
September 30, 2018 and 2017 were
$1.2 million and $1.7 million, respectively, while net charge-offs
were $667 thousand and $1.2 million, respectively. The ratio of
year-to-date annualized net charge-offs to average loans was 0.08%
for the first nine months of 2018 and 0.16% for the first nine
months of 2017.
Total noninterest income for the nine months ended September 30, 2018 increased $768 thousand, or 5.7%, when compared to the same
period in 2017, primarily due to other noninterest income of
$445 thousand which included higher
fees on bank services of $326
thousand and higher loan fee income of $69 thousand. In addition, service charges
on deposit accounts increased $177
thousand while both Trust and Insurance divisions had
positive variances.
Total noninterest expense for the nine months ended September 30, 2018 increased $3.0 million, or 9.8%, when compared to the same
period in 2017. The increase was primarily due to the cost of
operating four additional branches which caused increases in almost
all noninterest expense line items, offset by lower data processing
fees, other real estate owned expenses and legal and professional
fees.
Shore Bancshares Information
Shore Bancshares, Inc. 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; one retail insurance producer
firm, The Avon-Dixon Agency, LLC, with two specialty lines, Elliott
Wilson Insurance (Trucking) and Jack Martin Associates (Marine);
and an insurance premium finance company, Mubell Finance,
LLC. Shore Bancshares Inc. 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 Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2017
|
Change
|
|
2018
|
|
2017
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
12,947
|
|
$
12,326
|
|
5.0
|
%
|
$
37,909
|
|
$
33,159
|
|
14.3
|
%
|
Provision for credit
losses
|
307
|
|
345
|
|
(11.0)
|
|
1,214
|
|
1,746
|
|
(30.5)
|
|
Noninterest
income
|
4,710
|
|
4,425
|
|
6.4
|
|
14,179
|
|
13,411
|
|
5.7
|
|
Noninterest
expense
|
11,286
|
|
10,720
|
|
5.3
|
|
33,576
|
|
30,570
|
|
9.8
|
|
Income before income
taxes
|
6,064
|
|
5,686
|
|
6.6
|
|
17,298
|
|
14,254
|
|
21.4
|
|
Income tax
expense
|
1,610
|
|
2,274
|
|
(29.2)
|
|
4,395
|
|
5,690
|
|
(22.8)
|
|
Net income
|
$
4,454
|
|
$
3,412
|
|
30.5
|
|
$
12,903
|
|
$
8,564
|
|
50.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.21
|
%
|
0.98
|
%
|
23
|
bp
|
1.21
|
%
|
0.91
|
%
|
30
|
bp
|
Return on average
equity
|
10.38
|
|
8.48
|
|
190
|
|
10.31
|
|
7.23
|
|
308
|
|
Return on average tangible
equity (1)
|
13.36
|
|
10.84
|
|
252
|
|
13.24
|
|
8.36
|
|
488
|
|
Net interest
margin
|
3.76
|
|
3.79
|
|
(3)
|
|
3.79
|
|
3.75
|
|
4
|
|
Efficiency ratio -
GAAP
|
63.92
|
|
64.00
|
|
(8)
|
|
64.46
|
|
65.64
|
|
(118)
|
|
Efficiency ratio - Non-GAAP
(1)
|
62.23
|
|
63.11
|
|
(88)
|
|
63.15
|
|
64.96
|
|
(181)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common
share
|
$
0.35
|
|
$
0.27
|
|
29.6
|
%
|
$
1.01
|
|
$
0.68
|
|
48.5
|
%
|
Diluted net income per
common share
|
0.35
|
|
0.27
|
|
29.6
|
|
1.01
|
|
0.68
|
|
48.5
|
|
Dividends paid per common
share
|
0.08
|
|
0.05
|
|
60.0
|
|
0.23
|
|
0.15
|
|
53.3
|
|
Book value per common share
at period end
|
13.45
|
|
12.82
|
|
4.9
|
|
|
|
|
|
|
|
Tangible book value per
common share at period end (1)
|
10.96
|
|
10.24
|
|
7.0
|
|
|
|
|
|
|
|
Market value at period
end
|
17.82
|
|
16.65
|
|
7.0
|
|
|
|
|
|
|
|
Market range:
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
19.84
|
|
17.34
|
|
14.4
|
|
20.09
|
|
17.92
|
|
12.1
|
|
Low
|
16.63
|
|
15.97
|
|
4.1
|
|
16.28
|
|
14.64
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
1,174,513
|
|
$
1,034,553
|
|
13.5
|
%
|
$
1,140,925
|
|
$
956,694
|
|
19.3
|
%
|
Investment
securities
|
178,572
|
|
218,675
|
|
(18.3)
|
|
186,936
|
|
198,499
|
|
(5.8)
|
|
Earning assets
|
1,370,573
|
|
1,295,432
|
|
5.8
|
|
1,341,403
|
|
1,189,699
|
|
12.8
|
|
Assets
|
1,457,074
|
|
1,377,975
|
|
5.7
|
|
1,426,504
|
|
1,257,152
|
|
13.5
|
|
Deposits
|
1,192,845
|
|
1,210,894
|
|
(1.5)
|
|
1,174,505
|
|
1,089,704
|
|
7.8
|
|
Stockholders'
equity
|
170,299
|
|
159,551
|
|
6.7
|
|
167,288
|
|
158,342
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
100
|
|
$
182
|
|
(45.1)
|
%
|
$
667
|
|
$
1,177
|
|
(43.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
7,362
|
|
$
6,289
|
|
17.1
|
|
|
|
|
|
|
|
Loans 90 days past due and
still accruing
|
3
|
|
5
|
|
(40.0)
|
|
|
|
|
|
|
|
Other real estate
owned
|
1,518
|
|
1,809
|
|
(16.1)
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
8,883
|
|
8,103
|
|
9.6
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
8,933
|
|
13,493
|
|
(33.8)
|
|
|
|
|
|
|
|
Total nonperforming assets
and accruing TDRs
|
$
17,816
|
|
$
21,596
|
|
(17.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
11.63
|
%
|
11.82
|
%
|
(19)
|
bp
|
|
|
|
|
|
|
Period-end tangible equity
to tangible assets (1)
|
9.69
|
|
9.67
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs
to average loans
|
0.03
|
|
0.07
|
|
(4)
|
|
0.08
|
%
|
0.16
|
%
|
(8)
|
bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans
|
0.87
|
|
0.89
|
|
(2)
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
140.29
|
|
147.80
|
|
(751)
|
|
|
|
|
|
|
|
Nonperforming
assets
|
116.27
|
|
114.71
|
|
156
|
|
|
|
|
|
|
|
Accruing
TDRs
|
115.62
|
|
68.89
|
|
4,673
|
|
|
|
|
|
|
|
Nonperforming assets and
accruing TDRs
|
57.97
|
|
43.04
|
|
1,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
0.62
|
|
0.60
|
|
2
|
|
|
|
|
|
|
|
Accruing TDRs
|
0.76
|
|
1.29
|
|
(53)
|
|
|
|
|
|
|
|
Nonaccrual loans and
accruing TDRs
|
1.38
|
|
1.89
|
|
(51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
0.75
|
|
0.77
|
|
(2)
|
|
|
|
|
|
|
|
Nonperforming assets and
accruing TDRs
|
1.51
|
|
2.06
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
0.50
|
|
0.46
|
|
4
|
|
|
|
|
|
|
|
Nonperforming
assets
|
0.60
|
|
0.59
|
|
1
|
|
|
|
|
|
|
|
Accruing
TDRs
|
0.61
|
|
0.98
|
|
(37)
|
|
|
|
|
|
|
|
Nonperforming assets and
accruing TDRs
|
1.21
|
|
1.57
|
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the
reconciliation table on page 12 of 12.
|
|
|
|
|
|
|
|
|
|
|
|
|
Shore Bancshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2018
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
compared
to
|
|
compared
to
|
|
|
2018
|
|
2017
|
|
2017
|
|
December 31,
2017
|
|
September 30,
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
$
18,859
|
|
$
21,534
|
|
$
22,315
|
|
(12.4)
|
%
|
(15.5)
|
%
|
Interest-bearing deposits with other banks
|
29,918
|
|
10,286
|
|
21,601
|
|
190.9
|
|
38.5
|
|
Cash and cash
equivalents
|
48,777
|
|
31,820
|
|
43,916
|
|
53.3
|
|
11.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale (at fair value)
|
167,675
|
|
196,955
|
|
213,390
|
|
(14.9)
|
|
(21.4)
|
|
Investment securities held to maturity
|
6,037
|
|
6,247
|
|
6,241
|
|
(3.4)
|
|
(3.3)
|
|
Equity securities, at fair value
|
649
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
1,180,557
|
|
1,093,514
|
|
1,047,247
|
|
8.0
|
|
12.7
|
|
Less: allowance for credit losses
|
(10,328)
|
|
(9,781)
|
|
(9,295)
|
|
5.6
|
|
(11.1)
|
|
Loans, net
|
1,170,229
|
|
1,083,733
|
|
1,037,952
|
|
8.0
|
|
12.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net
|
23,252
|
|
23,054
|
|
23,124
|
|
0.9
|
|
0.6
|
|
Goodwill
|
27,618
|
|
27,618
|
|
27,909
|
|
-
|
|
(1.0)
|
|
Other intangible assets, net
|
4,088
|
|
4,719
|
|
4,831
|
|
(13.4)
|
|
(15.4)
|
|
Other real estate owned, net
|
1,518
|
|
1,794
|
|
1,809
|
|
(15.4)
|
|
(16.1)
|
|
Other assets
|
23,700
|
|
17,920
|
|
16,955
|
|
32.3
|
|
39.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
1,473,543
|
|
$
1,393,860
|
|
$
1,376,127
|
|
5.7
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
$
331,766
|
|
$
328,322
|
|
$
326,020
|
|
1.0
|
|
1.8
|
|
Interest-bearing deposits
|
850,070
|
|
874,459
|
|
880,175
|
|
(2.8)
|
|
(3.4)
|
|
Total deposits
|
1,181,836
|
|
1,202,781
|
|
1,206,195
|
|
(1.7)
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
114,043
|
|
21,734
|
|
1,469
|
|
424.7
|
|
7,663.3
|
|
Accrued expenses and other liabilities
|
6,245
|
|
5,609
|
|
5,815
|
|
11.3
|
|
7.4
|
|
Total liabilities
|
1,302,124
|
|
1,230,124
|
|
1,213,479
|
|
5.9
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01; authorized
|
|
|
|
|
|
|
|
|
|
|
35,000,000
shares
|
127
|
|
127
|
|
127
|
|
-
|
|
-
|
|
Additional paid in capital
|
65,730
|
|
65,256
|
|
64,949
|
|
0.7
|
|
1.2
|
|
Retained earnings
|
109,628
|
|
99,662
|
|
97,626
|
|
10.0
|
|
12.3
|
|
Accumulated other comprehensive (loss)
|
(4,066)
|
|
(1,309)
|
|
(54)
|
|
(210.6)
|
|
(7,429.6)
|
|
Total stockholders' equity
|
171,419
|
|
163,736
|
|
162,648
|
|
4.7
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
1,473,543
|
|
$
1,393,860
|
|
$
1,376,127
|
|
5.7
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end common
shares outstanding
|
12,748
|
|
12,688
|
|
12,687
|
|
0.5
|
|
0.5
|
|
Book value per common
share
|
$
13.45
|
|
$
12.90
|
|
$
12.82
|
|
4.3
|
|
4.9
|
|
Shore Bancshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2017
|
% Change
|
|
2018
|
|
2017
|
% Change
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
$
13,205
|
|
$
11,771
|
12.2
|
%
|
$
37,880
|
|
$ 31,762
|
19.3
|
%
|
Interest on investment securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
947
|
|
1,035
|
(8.5)
|
|
2,950
|
|
2,799
|
5.4
|
|
Tax-exempt
|
-
|
|
-
|
-
|
|
-
|
|
3
|
(100.0)
|
|
Interest on deposits with other banks
|
84
|
|
131
|
(35.9)
|
|
183
|
|
269
|
(32.0)
|
|
Total interest income
|
14,236
|
|
12,937
|
10.0
|
|
41,013
|
|
34,833
|
17.7
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
826
|
|
607
|
36.1
|
|
1,954
|
|
1,656
|
18.0
|
|
Interest on short-term borrowings
|
463
|
|
4
|
11,475.0
|
|
1,150
|
|
18
|
6,288.9
|
|
Total interest expense
|
1,289
|
|
611
|
111.0
|
|
3,104
|
|
1,674
|
85.4
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
12,947
|
|
12,326
|
5.0
|
|
37,909
|
|
33,159
|
14.3
|
|
Provision for credit
losses
|
307
|
|
345
|
(11.0)
|
|
1,214
|
|
1,746
|
(30.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
12,640
|
|
11,981
|
5.5
|
|
36,695
|
|
31,413
|
16.8
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
982
|
|
945
|
3.9
|
|
2,834
|
|
2,657
|
6.7
|
|
Trust and investment fee income
|
383
|
|
389
|
(1.5)
|
|
1,197
|
|
1,122
|
6.7
|
|
Gains on sales and calls of investment securities
|
-
|
|
5
|
(100.0)
|
|
-
|
|
5
|
(100.0)
|
|
Insurance agency commissions
|
2,170
|
|
2,088
|
3.9
|
|
7,015
|
|
6,939
|
1.1
|
|
Other noninterest income
|
1,175
|
|
998
|
17.7
|
|
3,133
|
|
2,688
|
16.6
|
|
Total noninterest income
|
4,710
|
|
4,425
|
6.4
|
|
14,179
|
|
13,411
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
5,516
|
|
5,203
|
6.0
|
|
16,372
|
|
14,508
|
12.8
|
|
Employee benefits
|
1,271
|
|
1,197
|
6.2
|
|
4,157
|
|
3,564
|
16.6
|
|
Occupancy expense
|
767
|
|
696
|
10.2
|
|
2,303
|
|
1,950
|
18.1
|
|
Furniture and equipment expense
|
251
|
|
286
|
(12.2)
|
|
813
|
|
803
|
1.2
|
|
Data processing
|
963
|
|
922
|
4.4
|
|
2,580
|
|
2,809
|
(8.2)
|
|
Directors' fees
|
145
|
|
99
|
46.5
|
|
411
|
|
281
|
46.3
|
|
Amortization of intangible assets
|
281
|
|
115
|
144.3
|
|
631
|
|
203
|
210.8
|
|
FDIC insurance premium expense
|
193
|
|
189
|
2.1
|
|
612
|
|
398
|
53.8
|
|
Other real estate owned expenses, net
|
166
|
|
195
|
(14.9)
|
|
125
|
|
358
|
(65.1)
|
|
Legal and professional fees
|
463
|
|
493
|
(6.1)
|
|
1,432
|
|
1,855
|
(22.8)
|
|
Other noninterest expenses
|
1,270
|
|
1,325
|
(4.2)
|
|
4,140
|
|
3,841
|
7.8
|
|
Total noninterest expense
|
11,286
|
|
10,720
|
5.3
|
|
33,576
|
|
30,570
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
6,064
|
|
5,686
|
6.6
|
|
17,298
|
|
14,254
|
21.4
|
|
Income tax
expense
|
1,610
|
|
2,274
|
(29.2)
|
|
4,395
|
|
5,690
|
(22.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
4,454
|
|
$
3,412
|
30.5
|
|
$
12,903
|
|
$
8,564
|
50.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
12,748
|
|
12,687
|
0.5
|
|
12,736
|
|
12,679
|
0.4
|
|
Weighted average
shares outstanding - diluted
|
12,761
|
|
12,718
|
0.3
|
|
12,749
|
|
12,736
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
$
0.35
|
|
$
0.27
|
29.6
|
|
$
1.01
|
|
$
0.68
|
48.5
|
|
Diluted net income
per common share
|
0.35
|
|
0.27
|
29.6
|
|
1.01
|
|
0.67
|
50.7
|
|
Dividends paid per
common share
|
0.08
|
|
0.05
|
60.0
|
|
0.23
|
|
0.15
|
53.3
|
|
Shore Bancshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Average
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1),
(2), (3)
|
$
1,174,513
|
|
4.47
|
%
|
$
1,034,553
|
|
4.54
|
%
|
$
1,140,925
|
|
4.45
|
%
|
$
956,694
|
|
4.46
|
%
|
Investment
securities (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
178,572
|
|
2.12
|
|
218,675
|
|
1.89
|
|
186,936
|
|
2.10
|
|
198,383
|
|
1.88
|
|
Tax-exempt
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
116
|
|
5.41
|
|
Interest-bearing deposits
|
17,488
|
|
1.91
|
|
42,204
|
|
1.23
|
|
13,542
|
|
1.80
|
|
34,506
|
|
1.04
|
|
Total earning assets
|
1,370,573
|
|
4.13
|
%
|
1,295,432
|
|
3.98
|
%
|
1,341,403
|
|
4.10
|
%
|
1,189,699
|
|
3.93
|
%
|
Cash and due from
banks
|
17,790
|
|
|
|
16,232
|
|
|
|
17,031
|
|
|
|
14,988
|
|
|
|
Other
assets
|
79,065
|
|
|
|
75,611
|
|
|
|
78,243
|
|
|
|
61,537
|
|
|
|
Allowance for credit
losses
|
(10,354)
|
|
|
|
(9,300)
|
|
|
|
(10,173)
|
|
|
|
(9,072)
|
|
|
|
Total
assets
|
$
1,457,074
|
|
|
|
$
1,377,975
|
|
|
|
$
1,426,504
|
|
|
|
$
1,257,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
221,905
|
|
0.32
|
%
|
$
224,180
|
|
0.23
|
%
|
$
214,317
|
|
0.26
|
%
|
$
206,033
|
|
0.18
|
%
|
Money market
and savings deposits
|
373,357
|
|
0.14
|
|
378,711
|
|
0.12
|
|
378,404
|
|
0.13
|
|
325,660
|
|
0.12
|
|
Brokered
deposits
|
25,507
|
|
2.01
|
|
-
|
|
-
|
|
12,157
|
|
2.09
|
|
-
|
|
-
|
|
Certificates
of deposit $100,000 or more
|
97,563
|
|
0.69
|
|
123,538
|
|
0.50
|
|
98,772
|
|
0.58
|
|
121,508
|
|
0.51
|
|
Other time
deposits
|
145,130
|
|
0.57
|
|
164,459
|
|
0.50
|
|
148,107
|
|
0.50
|
|
151,179
|
|
0.54
|
|
Interest-bearing deposits
|
863,462
|
|
0.36
|
|
890,888
|
|
0.27
|
|
851,757
|
|
0.30
|
|
804,380
|
|
0.28
|
|
Short-term
borrowings
|
87,925
|
|
2.09
|
|
2,274
|
|
0.62
|
|
78,945
|
|
1.95
|
|
3,997
|
|
0.59
|
|
Total interest-bearing liabilities
|
951,387
|
|
0.52
|
%
|
893,162
|
|
0.27
|
%
|
930,702
|
|
0.44
|
%
|
808,377
|
|
0.28
|
%
|
Noninterest-bearing
deposits
|
329,383
|
|
|
|
320,006
|
|
|
|
322,748
|
|
|
|
285,324
|
|
|
|
Accrued expenses and
other liabilities
|
6,005
|
|
|
|
5,256
|
|
|
|
5,766
|
|
|
|
5,109
|
|
|
|
Stockholders'
equity
|
170,299
|
|
|
|
159,551
|
|
|
|
167,288
|
|
|
|
158,342
|
|
|
|
Total liabilities and
stockholders' equity
|
$
1,457,074
|
|
|
|
$
1,377,975
|
|
|
|
$
1,426,504
|
|
|
|
$
1,257,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
3.61
|
%
|
|
|
3.71
|
%
|
|
|
3.66
|
%
|
|
|
3.65
|
%
|
Net interest
margin
|
|
|
3.76
|
%
|
|
|
3.79
|
%
|
|
|
3.79
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All amounts are
reported on a tax-equivalent basis computed using the statutory
federal income tax rate of 21.0%,
|
for the third quarter
of 2018 and the year to date period in 2018 and 35% for all
quarters during 2017, exclusive of the alternative minimum tax
rate
|
and 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
Q3 2018
|
|
Q3 2018
|
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
compared
to
|
|
compared
to
|
|
|
Q3
2018
|
|
Q2 2018
|
|
Q1 2018
|
|
Q4 2017
|
|
Q3 2017
|
|
Q2 2018
|
|
Q3 2017
|
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent net
interest income
|
$
12,975
|
|
$
12,661
|
|
$
12,357
|
|
$
12,430
|
|
$
12,384
|
|
2.5
|
%
|
4.8
|
%
|
Less:
Taxable-equivalent adjustment
|
28
|
|
28
|
|
28
|
|
61
|
|
58
|
|
-
|
|
(51.7)
|
|
Net interest
income
|
12,947
|
|
12,633
|
|
12,329
|
|
12,369
|
|
12,326
|
|
2.5
|
|
5.0
|
|
Provision for credit
losses
|
307
|
|
418
|
|
489
|
|
545
|
|
345
|
|
(26.6)
|
|
(11.0)
|
|
Noninterest
income
|
4,710
|
|
4,540
|
|
4,929
|
|
4,339
|
|
4,425
|
|
3.7
|
|
6.4
|
|
Noninterest
expense
|
11,286
|
|
10,828
|
|
11,462
|
|
10,632
|
|
10,720
|
|
4.2
|
|
5.3
|
|
Income before income
taxes
|
6,064
|
|
5,927
|
|
5,307
|
|
5,531
|
|
5,686
|
|
2.3
|
|
6.6
|
|
Income tax
expense
|
1,610
|
|
1,536
|
|
1,249
|
|
2,833
|
|
2,274
|
|
4.8
|
|
(29.2)
|
|
Net income
|
$
4,454
|
|
$
4,391
|
|
$
4,058
|
|
$
2,698
|
|
$
3,412
|
|
1.4
|
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.21
|
%
|
1.24
|
%
|
1.18
|
%
|
0.78
|
%
|
0.98
|
%
|
(3)
|
bp
|
23
|
bp
|
Return on average
equity
|
10.38
|
|
10.58
|
|
9.97
|
|
6.53
|
|
8.48
|
|
(20)
|
|
190
|
|
Return on average tangible
equity (1)
|
13.36
|
|
13.65
|
|
12.70
|
|
8.36
|
|
10.84
|
|
(29)
|
|
254
|
|
Net interest
margin
|
3.76
|
|
3.79
|
|
3.83
|
|
3.81
|
|
3.79
|
|
(3)
|
|
(3)
|
|
Efficiency ratio -
GAAP
|
63.92
|
|
63.05
|
|
66.42
|
|
63.63
|
|
64.00
|
|
87
|
|
(8)
|
|
Efficiency ratio - Non-GAAP
(1)
|
62.23
|
|
61.56
|
|
65.67
|
|
62.73
|
|
63.11
|
|
67
|
|
(88)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common
share
|
$
0.35
|
|
$
0.34
|
|
$
0.32
|
|
$
0.21
|
|
$
0.27
|
|
2.9
|
%
|
29.6
|
%
|
Diluted net income per
common share
|
0.35
|
|
0.34
|
|
0.32
|
|
0.21
|
|
0.27
|
|
2.9
|
|
29.6
|
|
Dividends paid per common
share
|
0.08
|
|
0.08
|
|
0.07
|
|
0.07
|
|
0.05
|
|
-
|
|
60.0
|
|
Book value per common share
at period end
|
13.45
|
|
13.19
|
|
12.95
|
|
12.90
|
|
12.82
|
|
2.0
|
|
4.9
|
|
Tangible book value per
common share at period end (1)
|
10.96
|
|
10.68
|
|
10.42
|
|
10.36
|
|
10.24
|
|
2.6
|
|
7.0
|
|
Market value at period
end
|
17.82
|
|
19.02
|
|
18.86
|
|
16.70
|
|
16.65
|
|
(6.3)
|
|
7.0
|
|
Market range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
19.84
|
|
20.09
|
|
19.80
|
|
18.49
|
|
17.34
|
|
(1.2)
|
|
14.4
|
|
Low
|
16.63
|
|
17.92
|
|
16.28
|
|
15.74
|
|
15.97
|
|
(7.2)
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
1,174,513
|
|
$
1,141,296
|
|
$
1,106,213
|
|
$
1,062,980
|
|
$
1,034,553
|
|
2.9
|
%
|
13.5
|
%
|
Investment
securities
|
178,572
|
|
186,453
|
|
197,285
|
|
211,910
|
|
218,675
|
|
(4.2)
|
|
(18.3)
|
|
Earning assets
|
1,370,573
|
|
1,341,050
|
|
1,313,249
|
|
1,294,768
|
|
1,295,432
|
|
2.2
|
|
5.8
|
|
Assets
|
1,457,074
|
|
1,425,947
|
|
1,396,001
|
|
1,378,553
|
|
1,377,975
|
|
2.2
|
|
5.7
|
|
Deposits
|
1,192,845
|
|
1,161,790
|
|
1,168,613
|
|
1,202,260
|
|
1,210,894
|
|
2.7
|
|
(1.5)
|
|
Stockholders'
equity
|
170,299
|
|
166,480
|
|
165,070
|
|
163,893
|
|
159,551
|
|
2.3
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
$
100
|
|
$
84
|
|
$
352
|
|
$
59
|
|
$
182
|
|
19.0
|
%
|
(45.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$
7,362
|
|
$
6,757
|
|
$
7,009
|
|
$
4,971
|
|
$
6,289
|
|
9.0
|
|
17.1
|
|
Loans 90 days past due and
still accruing
|
3
|
|
-
|
|
61
|
|
639
|
|
5
|
|
-
|
|
(40.0)
|
|
Other real estate
owned
|
1,518
|
|
1,569
|
|
1,569
|
|
1,794
|
|
1,809
|
|
(3.3)
|
|
(16.1)
|
|
Total nonperforming
assets
|
$
8,883
|
|
$
8,326
|
|
$
8,639
|
|
$
7,404
|
|
$
8,103
|
|
6.7
|
|
9.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
$
8,933
|
|
$
9,620
|
|
$
9,726
|
|
$
13,326
|
|
$
13,493
|
|
(7.1)
|
|
(33.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets
and accruing TDRs
|
$
17,816
|
|
$
17,946
|
|
$
18,365
|
|
$
20,730
|
|
$
21,596
|
|
(0.7)
|
|
(17.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
11.63
|
%
|
11.58
|
%
|
11.60
|
%
|
11.75
|
%
|
11.82
|
%
|
5
|
bp
|
(19)
|
bp
|
Period-end tangible equity
to tangible assets (1)
|
9.69
|
|
9.59
|
|
9.55
|
|
9.65
|
|
9.67
|
|
10
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs
to average loans
|
0.03
|
|
0.03
|
|
0.13
|
|
0.02
|
|
0.07
|
|
-
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
0.87
|
|
0.87
|
|
0.89
|
|
0.89
|
|
0.89
|
|
-
|
|
(2)
|
|
Nonaccrual
loans
|
140.29
|
|
149.79
|
|
141.50
|
|
196.76
|
|
147.80
|
|
(950)
|
|
(751)
|
|
Nonperforming
assets
|
116.27
|
|
121.56
|
|
114.80
|
|
132.10
|
|
114.71
|
|
(529)
|
|
156
|
|
Accruing
TDRs
|
115.62
|
|
105.21
|
|
101.97
|
|
73.40
|
|
68.89
|
|
1,041
|
|
4,673
|
|
Nonperforming assets and
accruing TDRs
|
57.97
|
|
56.40
|
|
54.00
|
|
47.18
|
|
43.04
|
|
157
|
|
1,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
a percent of total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
0.62
|
|
0.58
|
|
0.63
|
|
0.45
|
|
0.60
|
|
4
|
|
2
|
|
Accruing TDRs
|
0.76
|
|
0.83
|
|
0.87
|
|
1.22
|
|
1.29
|
|
(7)
|
|
(53)
|
|
Nonaccrual loans and accruing TDRs
|
1.38
|
|
1.42
|
|
1.50
|
|
1.67
|
|
1.89
|
|
(4)
|
|
(51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
a percent of total loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
|
0.75
|
|
0.72
|
|
0.77
|
|
0.68
|
|
0.77
|
|
3
|
|
(2)
|
|
Nonperforming assets and accruing TDRs
|
1.51
|
|
1.55
|
|
1.64
|
|
1.89
|
|
2.06
|
|
(4)
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
a percent of total assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
0.50
|
|
0.47
|
|
0.49
|
|
0.36
|
|
0.46
|
|
3
|
|
4
|
|
Nonperforming assets
|
0.60
|
|
0.57
|
|
0.61
|
|
0.53
|
|
0.59
|
|
3
|
|
1
|
|
Accruing TDRs
|
0.61
|
|
0.66
|
|
0.68
|
|
0.96
|
|
0.98
|
|
(5)
|
|
(37)
|
|
Nonperforming assets and accruing TDRs
|
1.21
|
|
1.24
|
|
1.29
|
|
1.49
|
|
1.57
|
|
(3)
|
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the
reconciliation table on page 12 of 12.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shore Bancshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income By Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2018
|
|
Q3 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
compared
to
|
|
compared
to
|
|
|
Q3
2018
|
|
Q2 2018
|
|
Q1 2018
|
|
Q4 2017
|
|
Q3 2017
|
|
Q2 2018
|
|
Q3 2017
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
$
13,205
|
|
$ 12,631
|
|
$ 12,044
|
|
$ 11,855
|
|
$ 11,771
|
|
4.5
|
%
|
12.2
|
%
|
Interest on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
947
|
|
982
|
|
1,021
|
|
1,048
|
|
1,035
|
|
(3.6)
|
|
(8.5)
|
|
Interest on deposits with other banks
|
84
|
|
61
|
|
38
|
|
65
|
|
131
|
|
37.7
|
|
(35.9)
|
|
Total interest income
|
14,236
|
|
13,674
|
|
13,103
|
|
12,968
|
|
12,937
|
|
4.1
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
826
|
|
580
|
|
548
|
|
586
|
|
607
|
|
42.4
|
|
36.1
|
|
Interest on short-term borrowings
|
463
|
|
461
|
|
226
|
|
13
|
|
4
|
|
0.4
|
|
11,475.0
|
|
Total interest expense
|
1,289
|
|
1,041
|
|
774
|
|
599
|
|
611
|
|
23.8
|
|
111.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
12,947
|
|
12,633
|
|
12,329
|
|
12,369
|
|
12,326
|
|
2.5
|
|
5.0
|
|
Provision for credit
losses
|
307
|
|
418
|
|
489
|
|
545
|
|
345
|
|
(26.6)
|
|
(11.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
12,640
|
|
12,215
|
|
11,840
|
|
11,824
|
|
11,981
|
|
3.5
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
982
|
|
947
|
|
905
|
|
971
|
|
945
|
|
3.7
|
|
3.9
|
|
Trust and investment fee income
|
383
|
|
414
|
|
400
|
|
410
|
|
389
|
|
(7.5)
|
|
(1.5)
|
|
Gains on sales and calls of investment securities
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
-
|
|
(100.0)
|
|
Insurance agency commissions
|
2,170
|
|
2,151
|
|
2,694
|
|
1,898
|
|
2,088
|
|
0.9
|
|
3.9
|
|
Other noninterest income
|
1,175
|
|
1,028
|
|
930
|
|
1,060
|
|
998
|
|
14.3
|
|
17.7
|
|
Total noninterest income
|
4,710
|
|
4,540
|
|
4,929
|
|
4,339
|
|
4,425
|
|
3.7
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
5,516
|
|
5,383
|
|
5,473
|
|
5,503
|
|
5,203
|
|
2.5
|
|
6.0
|
|
Employee benefits
|
1,271
|
|
1,369
|
|
1,517
|
|
1,081
|
|
1,197
|
|
(7.2)
|
|
6.2
|
|
Occupancy expense
|
767
|
|
755
|
|
781
|
|
746
|
|
696
|
|
1.6
|
|
10.2
|
|
Furniture and equipment expense
|
251
|
|
275
|
|
287
|
|
232
|
|
286
|
|
(8.7)
|
|
(12.2)
|
|
Data processing
|
963
|
|
720
|
|
897
|
|
871
|
|
922
|
|
33.8
|
|
4.4
|
|
Directors' fees
|
145
|
|
152
|
|
114
|
|
99
|
|
99
|
|
(4.6)
|
|
46.5
|
|
Amortization of intangible assets
|
281
|
|
239
|
|
111
|
|
112
|
|
115
|
|
17.6
|
|
144.3
|
|
FDIC insurance premium expense
|
193
|
|
214
|
|
205
|
|
201
|
|
189
|
|
(9.8)
|
|
2.1
|
|
Other real estate owned expenses, net
|
166
|
|
5
|
|
(46)
|
|
(86)
|
|
185
|
|
3,220.0
|
|
(10.3)
|
|
Legal and professional fees
|
463
|
|
505
|
|
464
|
|
453
|
|
493
|
|
(8.3)
|
|
(6.1)
|
|
Other noninterest expenses
|
1,270
|
|
1,211
|
|
1,659
|
|
1,420
|
|
1,335
|
|
4.9
|
|
(4.9)
|
|
Total noninterest expense
|
11,286
|
|
10,828
|
|
11,462
|
|
10,632
|
|
10,720
|
|
4.2
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
6,064
|
|
5,927
|
|
5,307
|
|
5,531
|
|
5,686
|
|
2.3
|
|
6.6
|
|
Income tax
expense
|
1,610
|
|
1,536
|
|
1,249
|
|
2,833
|
|
2,274
|
|
4.8
|
|
(29.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
4,454
|
|
$
4,391
|
|
$
4,058
|
|
$
2,698
|
|
$
3,412
|
|
1.4
|
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
12,748
|
|
12,744
|
|
12,715
|
|
12,688
|
|
12,687
|
|
0.0
|
|
0.5
|
|
Weighted average
shares outstanding - diluted
|
12,761
|
|
12,757
|
|
12,731
|
|
12,750
|
|
12,718
|
|
0.0
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
$
0.35
|
|
$
0.34
|
|
$
0.32
|
|
$
0.21
|
|
$
0.27
|
|
2.9
|
|
29.6
|
|
Diluted net income
per common share
|
0.35
|
|
0.34
|
|
0.32
|
|
0.21
|
|
0.27
|
|
2.9
|
|
29.6
|
|
Dividends paid per
common share
|
0.08
|
|
0.08
|
|
0.07
|
|
0.07
|
|
0.05
|
|
-
|
|
60.0
|
|
Shore Bancshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Average
Balance Sheets By Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2018
|
|
Q3 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared
to
|
|
compared
to
|
|
|
Q3
2018
|
|
Q2 2018
|
|
Q1 2018
|
|
Q4 2017
|
|
|
|
Q3 2017
|
|
|
|
Q2 2018
|
|
Q3 2017
|
|
|
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)
|
1,174,513
|
|
4.47
|
%
|
$
1,141,296
|
|
4.45
|
%
|
$
1,106,213
|
|
4.44
|
%
|
$
1,062,980
|
|
4.45
|
%
|
$
1,034,553
|
|
4.54
|
%
|
2.9
|
%
|
13.5
|
%
|
Investment
securities (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
178,572
|
|
2.12
|
|
186,453
|
|
2.11
|
|
197,285
|
|
2.07
|
|
211,910
|
|
1.98
|
|
218,675
|
|
1.89
|
|
(4.2)
|
|
(18.3)
|
|
Interest-bearing deposits
|
17,488
|
|
1.91
|
|
13,301
|
|
1.82
|
|
9,751
|
|
1.60
|
|
19,878
|
|
1.30
|
|
42,204
|
|
1.23
|
|
31.5
|
|
(58.6)
|
|
Total earning assets
|
1,370,573
|
|
4.13
|
%
|
1,341,050
|
|
4.10
|
%
|
1,313,249
|
|
4.06
|
%
|
1,294,768
|
|
3.99
|
%
|
1,295,432
|
|
3.98
|
%
|
2.2
|
|
5.8
|
|
Cash and due from
banks
|
17,790
|
|
|
|
16,905
|
|
|
|
16,384
|
|
|
|
18,589
|
|
|
|
16,232
|
|
|
|
5.2
|
|
9.6
|
|
Other
assets
|
79,065
|
|
|
|
78,185
|
|
|
|
76,336
|
|
|
|
74,700
|
|
|
|
75,611
|
|
|
|
1.1
|
|
4.6
|
|
Allowance for credit
losses
|
(10,354)
|
|
|
|
(10,193)
|
|
|
|
(9,968)
|
|
|
|
(9,504)
|
|
|
|
(9,300)
|
|
|
|
1.6
|
|
11.3
|
|
Total
assets
|
$
1,457,074
|
|
|
|
$
1,425,947
|
|
|
|
$
1,396,001
|
|
|
|
$
1,378,553
|
|
|
|
$
1,377,975
|
|
|
|
2.2
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
221,905
|
|
0.32
|
%
|
$
204,068
|
|
0.21
|
%
|
$
216,808
|
|
0.23
|
%
|
$
222,321
|
|
0.24
|
%
|
$
224,180
|
|
0.23
|
%
|
8.7
|
|
(1.0)
|
|
Money market
and savings deposits
|
373,357
|
|
0.14
|
|
381,047
|
|
0.13
|
|
380,890
|
|
0.13
|
|
382,438
|
|
0.12
|
|
378,711
|
|
0.12
|
|
(2.0)
|
|
(1.4)
|
|
Brokered
deposits
|
25,507
|
|
2.01
|
|
10,684
|
|
1.96
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
138.7
|
|
-
|
|
Certificates
of deposit $100,000 or more
|
97,563
|
|
0.69
|
|
96,873
|
|
0.54
|
|
101,929
|
|
0.50
|
|
110,458
|
|
0.49
|
|
123,538
|
|
0.50
|
|
0.7
|
|
(21.0)
|
|
Other time
deposits
|
145,130
|
|
0.57
|
|
146,946
|
|
0.45
|
|
152,321
|
|
0.48
|
|
158,241
|
|
0.49
|
|
164,459
|
|
0.50
|
|
(1.2)
|
|
(11.8)
|
|
Interest-bearing deposits
|
863,462
|
|
0.36
|
|
839,618
|
|
0.27
|
|
851,948
|
|
0.26
|
|
873,458
|
|
0.27
|
|
890,888
|
|
0.27
|
|
2.8
|
|
(3.1)
|
|
Short-term
borrowings
|
87,925
|
|
2.09
|
|
91,980
|
|
2.01
|
|
56,586
|
|
1.62
|
|
6,087
|
|
0.86
|
|
2,274
|
|
0.62
|
|
(4.4)
|
|
3,766.5
|
|
Total interest-bearing liabilities
|
951,387
|
|
0.52
|
%
|
931,598
|
|
0.44
|
%
|
908,534
|
|
0.35
|
%
|
879,545
|
|
0.27
|
%
|
893,162
|
|
0.27
|
%
|
2.1
|
|
6.5
|
|
Noninterest-bearing
deposits
|
329,383
|
|
|
|
322,172
|
|
|
|
316,665
|
|
|
|
328,802
|
|
|
|
320,006
|
|
|
|
2.2
|
|
2.9
|
|
Accrued expenses and
other liabilities
|
6,005
|
|
|
|
5,697
|
|
|
|
5,732
|
|
|
|
6,313
|
|
|
|
5,256
|
|
|
|
5.4
|
|
14.3
|
|
Stockholders'
equity
|
170,299
|
|
|
|
166,480
|
|
|
|
165,070
|
|
|
|
163,893
|
|
|
|
159,551
|
|
|
|
2.3
|
|
6.7
|
|
Total liabilities and
stockholders' equity
|
$
1,457,074
|
|
|
|
$
1,425,947
|
|
|
|
$
1,396,001
|
|
|
|
$
1,378,553
|
|
|
|
$
1,377,975
|
|
|
|
2.2
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
3.61
|
%
|
|
|
3.66
|
%
|
|
|
3.71
|
%
|
|
|
3.72
|
%
|
|
|
3.71
|
%
|
|
|
|
|
Net interest
margin
|
|
|
3.76
|
%
|
|
|
3.79
|
%
|
|
|
3.83
|
%
|
|
|
3.81
|
%
|
|
|
3.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All amounts are
reported on a tax-equivalent basis computed using the statutory
federal income tax rate of 21.0%, for the first, second and third
quarter of 2018 and 35.0% for all quarters during 2017,
|
|
|
|
|
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
|
|
|
Q3
2018
|
|
Q2 2018
|
|
Q1 2018
|
|
Q4 2017
|
|
Q3 2017
|
|
9/30/2018
|
|
9/30/2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles return on average equity and return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average
tangible equity (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
4,454
|
|
$
4,391
|
|
$
4,058
|
|
$
2,698
|
|
$
3,412
|
|
$
12,903
|
|
$
8,564
|
|
Net income -
annualized (A)
|
$
17,671
|
|
$
17,612
|
|
$
16,457
|
|
$
10,704
|
|
$
13,537
|
|
$
17,251
|
|
$
11,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets
|
$
4,664
|
|
$
4,574
|
|
$
4,143
|
|
$
2,766
|
|
$
3,482
|
|
$
13,374
|
|
$
8,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets -
annualized (B)
|
$
18,504
|
|
$
18,346
|
|
$
16,802
|
|
$
10,974
|
|
$
13,814
|
|
$
17,881
|
|
$
11,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity (C)
|
$
170,299
|
|
$
166,480
|
|
$
165,070
|
|
$
163,893
|
|
$
159,551
|
|
$
167,288
|
|
$
158,342
|
|
Less: Average
goodwill and other intangible assets
|
(31,810)
|
|
(32,088)
|
|
(32,721)
|
|
(32,678)
|
|
(32,097)
|
|
(32,203)
|
|
(19,493)
|
|
Average tangible
equity (D)
|
$
138,489
|
|
$
134,392
|
|
$
132,349
|
|
$
131,215
|
|
$
127,454
|
|
$
135,085
|
|
$
138,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP) (A)/(C)
|
10.38
|
%
|
10.58
|
%
|
9.97
|
%
|
6.53
|
%
|
8.48
|
%
|
10.31
|
%
|
7.23
|
%
|
Return on average
tangible equity (Non-GAAP) (B)/(D)
|
13.36
|
%
|
13.65
|
%
|
12.70
|
%
|
8.36
|
%
|
10.84
|
%
|
13.24
|
%
|
8.36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles GAAP efficiency ratio and non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
efficiency
ratio (Note 2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(E)
|
$
11,286
|
|
$
10,828
|
|
$
11,462
|
|
$
10,632
|
|
$
10,720
|
|
$
33,576
|
|
$
30,570
|
|
Less:
Amortization of intangible assets
|
(281)
|
|
(239)
|
|
(111)
|
|
(112)
|
|
(115)
|
|
(631)
|
|
(203)
|
|
Adjusted noninterest
expense (F)
|
$
11,005
|
|
$
10,589
|
|
$
11,351
|
|
$
10,520
|
|
$
10,605
|
|
$
32,945
|
|
$
30,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(G)
|
12,947
|
|
12,633
|
|
12,329
|
|
12,369
|
|
12,326
|
|
37,909
|
|
33,159
|
|
Add:
Taxable-equivalent adjustment
|
28
|
|
28
|
|
28
|
|
61
|
|
58
|
|
84
|
|
180
|
|
Taxable-equivalent
net interest income (H)
|
$
12,975
|
|
$
12,661
|
|
$
12,357
|
|
$
12,430
|
|
$
12,384
|
|
$
37,993
|
|
$
33,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
(I)
|
$
4,710
|
|
$
4,540
|
|
$
4,929
|
|
$
4,339
|
|
$
4,425
|
|
$
14,179
|
|
13,411
|
|
Less:
Investment securities (gains)
|
-
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
-
|
|
(5)
|
|
Adjusted noninterest
income (J)
|
$
4,710
|
|
$
4,540
|
|
$
4,929
|
|
$
4,339
|
|
$
4,420
|
|
$
14,179
|
|
$
13,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP)
(E)/(G)+(I)
|
63.92
|
%
|
63.05
|
%
|
66.42
|
%
|
63.63
|
%
|
64.00
|
%
|
64.46
|
%
|
65.64
|
%
|
Efficiency ratio
(Non-GAAP) (F)/(H)+(J)
|
62.23
|
%
|
61.56
|
%
|
65.67
|
%
|
62.73
|
%
|
63.11
|
%
|
63.15
|
%
|
64.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles book value per common share and
tangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
book value per
common share (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(L)
|
$
171,419
|
|
$
168,115
|
|
$
164,977
|
|
$
163,736
|
|
$
162,648
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
(31,706)
|
|
(31,987)
|
|
(32,226)
|
|
(32,337)
|
|
(32,740)
|
|
|
|
|
|
Tangible equity
(M)
|
$
139,713
|
|
$
136,128
|
|
$
132,751
|
|
$
131,399
|
|
$
129,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(N)
|
12,748
|
|
12,747
|
|
12,736
|
|
12,688
|
|
12,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP) (L)/(N)
|
$
13.45
|
|
$
13.19
|
|
$
12.95
|
|
$
12.90
|
|
$
12.82
|
|
|
|
|
|
Tangible book value
per common share (Non-GAAP) (M)/(N)
|
$
10.96
|
|
$
10.68
|
|
$
10.42
|
|
$
10.36
|
|
$
10.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles equity to assets and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tangible
equity to tangible assets (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(O)
|
$
171,419
|
|
$
168,115
|
|
$
164,977
|
|
$
163,736
|
|
$
162,648
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
(31,706)
|
|
(31,987)
|
|
(32,226)
|
|
(32,337)
|
|
(32,740)
|
|
|
|
|
|
Tangible equity
(P)
|
$
139,713
|
|
$
136,128
|
|
$
132,751
|
|
$
131,399
|
|
$
129,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Q)
|
$
1,473,543
|
|
$
1,451,714
|
|
$
1,421,606
|
|
$
1,393,860
|
|
$
1,376,127
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
(31,706)
|
|
(31,987)
|
|
(32,226)
|
|
(32,337)
|
|
(32,740)
|
|
|
|
|
|
Tangible assets
(R)
|
$
1,441,837
|
|
$
1,419,727
|
|
$
1,389,380
|
|
$
1,361,523
|
|
$
1,343,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
equity/assets (GAAP) (O)/(Q)
|
11.63
|
%
|
11.58
|
%
|
11.60
|
%
|
11.75
|
%
|
11.82
|
%
|
|
|
|
|
Period-end tangible
equity/tangible assets (Non-GAAP) (P)/(R)
|
9.69
|
%
|
9.59
|
%
|
9.55
|
%
|
9.65
|
%
|
9.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-third-quarter-and-nine-month-results-300733693.html
SOURCE Shore Bancshares, Inc.