EASTON, Md., April 30, 2020 /PRNewswire/ -- Shore
Bancshares, Inc. (NASDAQ - SHBI) (the "Company") reported
income from continuing operations of $3.118
million or $0.25 per diluted
common share for the first quarter of 2020, compared to income from
continuing operations of $4.014
million or $0.32 per diluted
common share for the fourth quarter of 2019, and income from
continuing operations of $3.828
million or $0.30 per diluted
common share for the first quarter of 2019.
When comparing income from continuing operations for the first
quarter of 2020 to the fourth quarter of 2019, net income decreased
$896 thousand due to an increase in
noninterest expenses of $504 thousand
and decreases in noninterest income and net interest income of
$342 thousand and $246 thousand, respectively. In addition, the
provision for credit losses increased in the first quarter of 2020
by $150 thousand due to economic
stress related to the COVID-19 pandemic. When comparing income from
continuing operations for the first quarter of 2020 to the first
quarter of 2019, income decreased $710
thousand due to an increase in noninterest expense of
$1.0 million and an increase in
provision for credit losses of $250
thousand, partially offset by increases in noninterest
income of $164 thousand and net
interest income of $124 thousand,
respectively.
"As we navigate through these challenging times, we remain
committed to our customers and all their banking needs," said Lloyd
L. "Scott" Beatty, Jr., President and Chief Executive
Officer. "Our branches have remained open to serve
individuals throughout Maryland,
Delaware and the Eastern Shore of
Virginia. We are participating in
the Payment Protection Program ("PPP") to ensure our small business
customers get the vital resources they need. To date we have
processed over 1,000 PPP loans for our small business customers
totaling approximately $114 million
as of April 30, 2020. We have
collateral pledged to the Federal Home Loan Bank of approximately
$300 million that can be utilized for
borrowing purposes as well as $15
million in lines with correspondent banks should it be
necessary to meet liquidity demands. Our capital position remains
strong. We understand how vitally important we are and will
continue our commitment and support to our customers, employees and
shareholders."
Response to COVID-19
Employees
Our employees have been exceptional during this unprecedented
time by remaining flexible and committed to finding ways to
continue servicing our clients with minimal disruption. The
dedication and commitment of our staff across our footprint
continues to be the heart and soul of community banking at its
finest. Many of our non-branch personnel have transitioned to
working remotely and those remaining in our offices continue to
practice social distancing as the Company has implemented enhanced
cleaning and disinfecting procedures across all locations. All
Company meetings have transitioned to telephonic or video
conferencing, all made possible by our dedicated IT staff. We
suspended all unnecessary business-related travel, public events,
and meetings with outside parties to promote the safety and
well-being of our employees.
Banking Locations
All our branch locations remain open, with limited hours of
operation. For the safety of our employees and customers we closed
our branch lobbies to the public and established procedures for
clients to make appointments in our branches for critical
needs. The drive-thru locations have expanded their
capabilities to accommodate an array of transactions for our
customers. We notified our customers of our changes in operations
as well as promoted the use of online and mobile banking.
Customers
We thank our customers for their commitment and understanding as
we continue to find ways to serve them as safely and securely as
possible. For our customers impacted by the pandemic, we have
provided fee waivers and loan payment deferrals to assist them
during this challenging time.
Small Business Administration's Paycheck Protection Program
("SBA PPP")
We remain an SBA preferred lender and are actively participating
in the PPP program. As previously stated above, we have provided
loans for over 800 of our small business customers totaling
$104 million as of April 30, 2020. We will continue to process
applications until the government funding is completely
exhausted.
Share Repurchases
We have suspended all share buybacks of our Company's common
stock until further notice.
Dividends
We currently expect to maintain our quarterly cash dividends
based on our strong capital position.
Balance Sheet Review
Total assets were $1.571 billion
at March 31, 2020, a $12.2 million, or less than 1%, increase when
compared to $1.559 billion at the end
of 2019. The increase was primarily due to the $28.3 million, or 2.3% increase in gross
loans. The increase in gross loans was funded primarily by a
decrease in investment securities available for sale of
$18.4 million and deposit growth of
$7.5 million during the first quarter
of 2020.
Total deposits increased $7.5
million, or less than 1%, when compared to December 31, 2019. The increase in total
deposits consisted of an increase in interest-bearing deposits of
$9.0 million, partially offset by a
decrease in noninterest bearing deposits of $1.6 million. The growth in interest-bearing
deposits was represented by increases in savings and money market
accounts of $9.2 million, time
deposits greater than $100 thousand
of $3.4 million and other time
deposits of $2.2 million. These
increases were partially offset by a decrease in checking accounts
of $5.8 million.
Total stockholders' equity increased $2.9
million, or 1.5%, when compared to the end of 2019. At
March 31, 2020, the ratio of total
equity to total assets was 12.45% and the ratio of total tangible
equity to total tangible assets was 11.35%.
Review of Quarterly Financial Results
Net interest income was $12.5
million for the first quarter of 2020, compared to
$12.8 million for the fourth quarter
of 2019 and $12.4 million for the
first quarter of 2019. The decrease in net interest income when
compared to the fourth quarter of 2019 was primarily due to the
decrease in yields on total earnings assets, which included loans
of 8bps, taxable investment securities of 5bps and interest-bearing
deposits with other banks of 43bps. The average balances of taxable
investment securities and interest-bearing deposits with other
banks also experienced a decrease $16.1
million and $13.9 million,
respectively, which decreases were partially offset by an increase
in the average balance of loans of $17.1
million. Also impacting net interest income when comparing
the first quarter of 2020 to the fourth quarter of 2019, was the
liability side of the balance sheet which experienced a decrease of
$233 thousand in total
interest-bearing liability costs. This reduction was attributed to
lower rates paid on interest-bearing deposits and short-term
borrowings of 9bps and 61bps, respectively. Net interest income
increased when compared to the first quarter of 2019 due to an
increase in the average balance of loans of $61.5 million, or 5.1%, resulting in $298 thousand of additional interest income,
almost entirely offset by a decrease in the average balance of
taxable investment securities of $35.6
million, resulting in a decline in interest income of
$279 thousand. When comparing the
first quarter of 2020 and 2019 on the liability side of the balance
sheet, total interest-bearing liability costs decreased
$98 thousand. This reduction was
attributed to a decline in the average balance of short-term
borrowings of $31.7 million, or
96.3%, which resulted in a decrease in expense of $211 thousand, which was partially offset by an
increase in the average balance of interest-bearing deposits of
$89.8 million, or 10.2%, resulting in
an increase in expense of $112
thousand. The Company's net interest margin increased to
3.48% from 3.47% in the fourth quarter of 2019 and down from 3.61%
in the first quarter of 2019.
The provision for credit losses was $350
thousand for the three months ended March 31, 2020. The comparable amounts were
$200 thousand and $100 thousand for the three months ended
December 31, 2019 and March 31, 2019, respectively. The ratio of the
allowance for credit losses to period-end loans was 0.81% at
March 31, 2020, lower than both the
0.84% at December 31, 2019 and lower
than the 0.86% at March 31, 2019. The
primary driver of the reduction in the percentage of the allowance
to total loans as compared to both of the prior periods was due to
a reduction in specific reserves carried as part of the allowance,
which totaled $337 thousand,
$975 thousand, and $812 thousand at March 31,
2020, December 31, 2019 and
March 31, 2019, respectively.
The provision increased during the first quarter of 2020 over prior
periods largely due to an increase in loan volume as well as
management's consideration of the COVID-19 pandemic. These
contributors to the increase in provision for the first quarter
2020, were offset in part due to a decline in specific reserves of
$638 thousand from December 31, 2019, which resulted from
charge-offs during the period. The addition of charge-offs
related to loans with specific reserves provided for in prior
periods to our historical loss history, coupled with recoveries
during the period dictated a less than one-to-one increase in our
historical reserves as compared to the prior recorded specific
reserve balances. Considerations related to the COVID-19
pandemic contributed to an increase in our qualitative reserves to
legacy non-impaired loans from 0.75% at December 31, 2019 to 0.78% at March 31, 2020. Management will continue to
evaluate the adequacy of the allowance for credit losses as more
economic data becomes available and as changes within the Company's
portfolio are known. The effects of the pandemic may require the
Company to fund additional increases in the allowance for credit
losses in future periods.
At March 31, 2020, nonperforming
assets were $12.3 million, an
increase of $309 thousand, or 2.6%,
when compared to December 31, 2019.
The increase in nonperforming assets was primarily due to an
increase in nonaccrual loans of $950
thousand, or 9.0%, partially offset by a decrease in loans
90 days or more past due and still accruing of $605 thousand, or 45.6% and other real estate
owned of $36 thousand, or 48.6%. The
increase in nonaccrual loans was due to a specific relationship
with a commercial customer of $1.5
million, which the Bank has been monitoring for several
quarters. Accruing troubled debt restructurings ("TDRs") decreased
$57 thousand, or less than 1%, over
the same time period. When comparing March
31, 2020 to March 31, 2019,
nonperforming assets decreased $4.1
million, or 24.9%, and accruing TDRs decreased $384 thousand, or 4.9%. The decrease in
nonperforming assets was due to diligent workout efforts by the
Company to reduce nonaccrual loans and other real estate owned
properties. The ratio of nonperforming assets and accruing TDRs to
total assets was 1.25% for both March 31,
2020 and December 31, 2019 and
1.63% at March 31, 2019,
respectively. In addition, the ratio of accruing TDRs to
total loans at March 31, 2020 was
0.58%, compared to 0.60% at December 31,
2019 and 0.65% at March 31,
2019.
Total noninterest income from continuing operations for the
first quarter of 2020 decreased $342
thousand, or 12.7%, when compared to the fourth quarter of
2019 and increased $164 thousand, or
7.5%, when compared to the first quarter of 2019. The
decrease from the fourth quarter of 2019 was primarily the result
of lower service charges on deposit accounts, decrease in BOLI life
insurance proceeds collected in the first quarter of 2020 relative
to the fourth quarter of 2019 and less activity for other banking
services as a result of the COVID-19 pandemic. The increase from
the first quarter of 2019 was due to additional income from BOLI
purchased late in the fourth quarter of 2019, offset by lower
service charges on deposit accounts.
Total noninterest expense from continuing operations for the
first quarter of 2020 increased $504
thousand, or 5.1%, when compared to the fourth quarter of
2019 and increased $1.0 million, or
10.8%, when compared to the first quarter of 2019. The
increase in noninterest expense compared to the fourth quarter of
2019 was the result of higher salaries and wages due to pay
increases and additional payroll days, as well as, higher FDIC
insurance premiums due to receiving an assessment credit in the
fourth quarter for banks under $10
billion. The increase in noninterest expenses from the first
quarter of 2019 was primarily due to increases in employee benefits
from higher medical insurance costs, the addition of supplemental
executive retirement plans ("SERPs") during 2019 and data
processing, partially offset by lower other real estate owned
expenses and FDIC insurance premiums.
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 Partners, 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".
Further, given its ongoing and dynamic nature, it is difficult
to predict the full impact of the COVID-19 outbreak on our
business. The extent of such impact will depend on future
developments, which are highly uncertain, including when the
coronavirus can be controlled and abated and when and how the
economy may be reopened. As the result of the COVID-19 pandemic and
the related adverse local and national economic consequences, we
could be subject to any of the following risks, any of which could
have a material, adverse effect on our business, financial
condition, liquidity, and results of operations: the demand for our
products and services may decline, making it difficult to grow
assets and income; if the economy is unable to substantially
reopen, and high levels of unemployment continue for an extended
period of time, loan delinquencies, problem assets, and
foreclosures may increase, resulting in increased charges and
reduced income; collateral for loans, especially real estate, may
decline in value, which could cause loan losses to increase; our
allowance for loan losses may increase if borrowers experience
financial difficulties, which will adversely affect our net income;
the net worth and liquidity of loan guarantors may decline,
impairing their ability to honor commitments to us; as the result
of the decline in the Federal Reserve Board's target federal funds
rate to near 0%, the yield on our assets may decline to a greater
extent than the decline in our cost of interest-bearing
liabilities, reducing our net interest margin and spread and
reducing net income; our cyber security risks are increased as the
result of an increase in the number of employees working remotely;
and FDIC premiums may increase if the agency experience additional
resolution costs.
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 (Unaudited)
(Dollars in thousands, except per share data)
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For the Three Months
Ended
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March 31,
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2020
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2019
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Change
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PROFITABILITY FOR THE
PERIOD
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Net interest
income
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$
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12,518
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|
$
|
12,394
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|
1.0
|
%
|
Provision for credit
losses
|
|
|
350
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|
|
100
|
|
250.0
|
|
Noninterest
income
|
|
|
2,352
|
|
|
2,188
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|
7.5
|
|
Noninterest
expense
|
|
|
10,349
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|
|
9,343
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|
10.8
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|
Income from continuing
operations before income taxes
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|
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4,171
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|
|
5,139
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|
(18.8)
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|
Income tax
expense
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|
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1,053
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|
|
1,311
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|
(19.7)
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|
Income from continuing
operations
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|
$
|
3,118
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|
$
|
3,828
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|
(18.5)
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|
|
|
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|
|
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Loss from
discontinued operations before income taxes
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—
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(99)
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100.0
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Income tax
benefit
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—
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(25)
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100.0
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Loss from
discontinued operations
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—
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(74)
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|
100.0
|
|
Net income
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|
$
|
3,118
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$
|
3,754
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(16.9)
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From Continuing
Operations:
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Return on average
assets
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0.81
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%
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1.06
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%
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(25)
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bp
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Return on average
equity
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6.45
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8.39
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(194)
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Return on average
tangible equity (1)
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7.43
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9.72
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(229)
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Net interest
margin
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3.48
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3.61
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(13)
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Efficiency ratio -
GAAP
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69.60
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64.07
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553
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Efficiency ratio -
Non-GAAP (1)
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68.46
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62.81
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565
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PER SHARE
DATA
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Basic net income per
common share
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Income from continuing
operations
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$
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0.25
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$
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0.30
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(16.7)
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%
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Loss from discontinued
operations
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—
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(0.01)
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100.0
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Net income
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$
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0.25
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$
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0.29
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(13.8)
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Diluted net income
per common share
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Income from continuing
operations
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$
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0.25
|
|
$
|
0.30
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|
(16.7)
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|
Loss from discontinued
operations
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|
|
—
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|
|
(0.01)
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|
100.0
|
|
Net income
|
|
$
|
0.25
|
|
$
|
0.29
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|
(13.8)
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Dividends paid per
common share
|
|
$
|
0.12
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|
$
|
0.10
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|
20.0
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Book value per common
share at period end
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15.62
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14.64
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6.7
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Tangible book value per
common share at period end (1)
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14.06
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13.06
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7.7
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Market value at period
end
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10.85
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14.91
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(27.2)
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Market
range:
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High
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17.56
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16.11
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9.0
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Low
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7.63
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14.00
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(45.5)
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AVERAGE BALANCE SHEET
DATA
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Loans
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$
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1,263,441
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|
$
|
1,201,913
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5.1
|
%
|
Investment
securities
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|
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129,410
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|
165,009
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|
(21.6)
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Earning
assets
|
|
|
1,450,508
|
|
|
1,394,728
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4.0
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Assets
|
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|
1,546,991
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1,460,291
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5.9
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Deposits
|
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1,327,162
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1,215,702
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9.2
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Stockholders'
equity
|
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|
194,332
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184,972
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5.1
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CREDIT QUALITY
DATA
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Net
charge-offs
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|
$
|
479
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$
|
25
|
|
1,816.0
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%
|
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Nonaccrual
loans
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|
$
|
11,540
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$
|
15,360
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(24.9)
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Loans 90 days past due
and still accruing
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721
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47
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1,434.0
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Other real estate
owned
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38
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|
|
979
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(96.1)
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Total nonperforming
assets
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12,299
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16,386
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(24.9)
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Accruing troubled debt
restructurings (TDRs)
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7,444
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7,828
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(4.9)
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Total nonperforming
assets and accruing TDRs
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|
$
|
19,743
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$
|
24,214
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(18.5)
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CAPITAL AND CREDIT
QUALITY RATIOS
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Period-end equity to
assets
|
|
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12.45
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%
|
|
12.59
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%
|
(14)
|
bp
|
Period-end tangible
equity to tangible assets (1)
|
|
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11.35
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|
11.39
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(4)
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Annualized net
charge-offs to average loans
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|
|
0.15
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|
|
0.01
|
|
14
|
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|
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|
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Allowance for credit
losses as a percent of:
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|
|
|
|
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Period-end
loans
|
|
|
0.81
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|
|
0.86
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|
(5)
|
|
Nonaccrual
loans
|
|
|
89.93
|
|
|
67.83
|
|
2,210
|
|
Nonperforming
assets
|
|
|
84.38
|
|
|
63.58
|
|
2,080
|
|
Accruing
TDRs
|
|
|
139.41
|
|
|
133.09
|
|
632
|
|
Nonperforming assets
and accruing TDRs
|
|
|
52.57
|
|
|
43.02
|
|
955
|
|
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|
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As a percent of total
loans:
|
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|
|
|
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Nonaccrual
loans
|
|
|
0.90
|
|
|
1.27
|
|
(37)
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|
Accruing
TDRs
|
|
|
0.58
|
|
|
0.65
|
|
(7)
|
|
Nonaccrual loans and
accruing TDRs
|
|
|
1.49
|
|
|
1.91
|
|
(42)
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
0.96
|
|
|
1.35
|
|
(39)
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.55
|
|
|
2.00
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.73
|
|
|
1.03
|
|
(30)
|
|
Nonperforming
assets
|
|
|
0.78
|
|
|
1.10
|
|
(32)
|
|
Accruing
TDRs
|
|
|
0.47
|
|
|
0.53
|
|
(6)
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.25
|
|
|
1.63
|
|
(38)
|
|
(1)
|
See the
reconciliation table.
|
Shore Bancshares,
Inc. Consolidated Balance Sheets (Unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
March 31,
|
|
compared
to
|
|
|
|
2020
|
|
2019
|
|
2019
|
|
December 31, 2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
16,432
|
|
$
|
18,465
|
|
$
|
18,915
|
|
(11.0)
|
%
|
Interest-bearing
deposits with other banks
|
|
|
79,819
|
|
|
76,506
|
|
|
39,904
|
|
4.3
|
|
Cash and cash
equivalents
|
|
|
96,251
|
|
|
94,971
|
|
|
58,819
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
available for sale (at fair value)
|
|
|
104,375
|
|
|
122,791
|
|
|
150,814
|
|
(15.0)
|
|
Investment securities
held to maturity
|
|
|
8,687
|
|
|
8,786
|
|
|
5,899
|
|
(1.1)
|
|
Equity securities, at
fair value
|
|
|
1,350
|
|
|
1,342
|
|
|
1,299
|
|
0.6
|
|
Restricted
securities
|
|
|
4,263
|
|
|
4,190
|
|
|
5,292
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
1,276,993
|
|
|
1,248,654
|
|
|
1,211,716
|
|
2.3
|
|
Less: allowance for
credit losses
|
|
|
(10,378)
|
|
|
(10,507)
|
|
|
(10,418)
|
|
(1.2)
|
|
Loans, net
|
|
|
1,266,615
|
|
|
1,238,147
|
|
|
1,201,298
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
|
24,930
|
|
|
23,821
|
|
|
22,632
|
|
4.7
|
|
Goodwill
|
|
|
17,518
|
|
|
17,518
|
|
|
17,518
|
|
—
|
|
Other intangible
assets, net
|
|
|
2,108
|
|
|
2,252
|
|
|
2,696
|
|
(6.4)
|
|
Other real estate
owned, net
|
|
|
38
|
|
|
74
|
|
|
979
|
|
(48.6)
|
|
Right of use assets,
net
|
|
|
5,019
|
|
|
4,771
|
|
|
3,767
|
|
5.2
|
|
Other
assets
|
|
|
40,267
|
|
|
40,572
|
|
|
14,772
|
|
(0.8)
|
|
Assets of discontinued
operations
|
|
|
—
|
|
|
—
|
|
|
14
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,571,421
|
|
$
|
1,559,235
|
|
$
|
1,485,799
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
355,054
|
|
$
|
356,618
|
|
$
|
345,151
|
|
(0.4)
|
|
Interest-bearing
deposits
|
|
|
993,740
|
|
|
984,716
|
|
|
892,118
|
|
0.9
|
|
Total
deposits
|
|
|
1,348,794
|
|
|
1,341,334
|
|
|
1,237,269
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
2,162
|
|
|
1,226
|
|
|
30,724
|
|
76.3
|
|
Long-term
borrowings
|
|
|
15,000
|
|
|
15,000
|
|
|
15,000
|
|
—
|
|
Lease
liabilities
|
|
|
5,072
|
|
|
4,792
|
|
|
3,767
|
|
5.8
|
|
Accrued expenses and
other liabilities
|
|
|
4,699
|
|
|
4,081
|
|
|
9,146
|
|
15.1
|
|
Liabilities of
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
2,811
|
|
—
|
|
Total
liabilities
|
|
|
1,375,727
|
|
|
1,366,433
|
|
|
1,298,717
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par
value $0.01; authorized 35,000,000 shares
|
|
|
125
|
|
|
125
|
|
|
128
|
|
—
|
|
Additional paid in
capital
|
|
|
61,067
|
|
|
61,045
|
|
|
65,408
|
|
0.0
|
|
Retained
earnings
|
|
|
133,044
|
|
|
131,425
|
|
|
123,050
|
|
1.2
|
|
Accumulated other
comprehensive income (loss)
|
|
|
1,458
|
|
|
207
|
|
|
(1,504)
|
|
604.3
|
|
Total stockholders'
equity
|
|
|
195,694
|
|
|
192,802
|
|
|
187,082
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,571,421
|
|
$
|
1,559,235
|
|
$
|
1,485,799
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end common
shares outstanding
|
|
|
12,525
|
|
|
12,500
|
|
|
12,780
|
|
0.2
|
|
Book value per common
share
|
|
$
|
15.62
|
|
$
|
15.42
|
|
$
|
14.64
|
|
1.3
|
|
Shore Bancshares,
Inc. Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2020
|
|
2019
|
|
% Change
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
13,795
|
|
$
|
13,499
|
|
2.2
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
719
|
|
|
998
|
|
(28.0)
|
|
Interest on deposits
with other banks
|
|
|
172
|
|
|
163
|
|
5.5
|
|
Total interest
income
|
|
|
14,686
|
|
|
14,660
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,059
|
|
|
1,947
|
|
5.8
|
|
Interest on short-term
borrowings
|
|
|
2
|
|
|
213
|
|
(99.1)
|
|
Interest on long-term
borrowings
|
|
|
107
|
|
|
106
|
|
0.9
|
|
Total interest
expense
|
|
|
2,168
|
|
|
2,266
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
12,518
|
|
|
12,394
|
|
1.0
|
|
Provision for credit
losses
|
|
|
350
|
|
|
100
|
|
250.0
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
12,168
|
|
|
12,294
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
866
|
|
|
934
|
|
(7.3)
|
|
Trust and investment
fee income
|
|
|
375
|
|
|
372
|
|
0.8
|
|
Other noninterest
income
|
|
|
1,111
|
|
|
882
|
|
26.0
|
|
Total noninterest
income
|
|
|
2,352
|
|
|
2,188
|
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
4,296
|
|
|
3,766
|
|
14.1
|
|
Employee
benefits
|
|
|
1,722
|
|
|
1,254
|
|
37.3
|
|
Occupancy
expense
|
|
|
698
|
|
|
691
|
|
1.0
|
|
Furniture and
equipment expense
|
|
|
317
|
|
|
263
|
|
20.5
|
|
Data
processing
|
|
|
1,044
|
|
|
910
|
|
14.7
|
|
Directors'
fees
|
|
|
141
|
|
|
86
|
|
64.0
|
|
Amortization of
intangible assets
|
|
|
144
|
|
|
162
|
|
(11.1)
|
|
FDIC insurance premium
expense
|
|
|
91
|
|
|
205
|
|
(55.6)
|
|
Other real estate
owned expenses, net
|
|
|
18
|
|
|
233
|
|
(92.3)
|
|
Legal and professional
fees
|
|
|
634
|
|
|
601
|
|
5.5
|
|
Other noninterest
expenses
|
|
|
1,244
|
|
|
1,172
|
|
6.1
|
|
Total noninterest
expense
|
|
|
10,349
|
|
|
9,343
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
4,171
|
|
|
5,139
|
|
(18.8)
|
|
Income tax
expense
|
|
|
1,053
|
|
|
1,311
|
|
(19.7)
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
3,118
|
|
|
3,828
|
|
(18.5)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations before income taxes
|
|
|
—
|
|
|
(99)
|
|
100.0
|
|
Income tax
benefit
|
|
|
—
|
|
|
(25)
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
|
—
|
|
|
(74)
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
3,118
|
|
$
|
3,754
|
|
(16.9)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
12,513
|
|
|
12,769
|
|
(2.0)
|
|
Weighted average
shares outstanding - diluted
|
|
|
12,518
|
|
|
12,773
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.25
|
|
$
|
0.30
|
|
(16.7)
|
|
Loss from discontinued
operations
|
|
|
—
|
|
|
(0.01)
|
|
100.0
|
|
Net income
|
|
$
|
0.25
|
|
$
|
0.29
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.25
|
|
$
|
0.30
|
|
(16.7)
|
|
Loss from discontinued
operations
|
|
|
—
|
|
|
(0.01)
|
|
100.0
|
|
Net income
|
|
$
|
0.25
|
|
$
|
0.29
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.12
|
|
|
0.10
|
|
20.0
|
|
Shore Bancshares,
Inc. Consolidated Average Balance Sheets (Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2020
|
|
2019
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2),
(3)
|
|
$
|
1,263,441
|
|
4.40
|
%
|
$
|
1,201,913
|
|
4.57
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
129,410
|
|
2.22
|
|
|
165,009
|
|
2.45
|
|
Interest-bearing
deposits
|
|
|
57,657
|
|
1.20
|
|
|
27,806
|
|
2.38
|
|
Total earning
assets
|
|
|
1,450,508
|
|
4.08
|
%
|
|
1,394,728
|
|
4.27
|
%
|
Cash and due from
banks
|
|
|
17,874
|
|
|
|
|
17,196
|
|
|
|
Other
assets
|
|
|
89,154
|
|
|
|
|
58,756
|
|
|
|
Allowance for credit
losses
|
|
|
(10,545)
|
|
|
|
|
(10,389)
|
|
|
|
Total
assets
|
|
$
|
1,546,991
|
|
|
|
$
|
1,460,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
284,176
|
|
0.56
|
%
|
$
|
239,794
|
|
0.61
|
%
|
Money market and
savings deposits
|
|
|
410,252
|
|
0.46
|
|
|
383,738
|
|
0.85
|
|
Brokered
deposits
|
|
|
—
|
|
—
|
|
|
22,080
|
|
2.37
|
|
Certificates of deposit
$100,000 or more
|
|
|
129,408
|
|
1.85
|
|
|
98,535
|
|
1.24
|
|
Other time
deposits
|
|
|
150,645
|
|
1.60
|
|
|
140,523
|
|
1.02
|
|
Interest-bearing
deposits
|
|
|
974,481
|
|
0.85
|
|
|
884,670
|
|
0.89
|
|
Short-term
borrowings
|
|
|
1,235
|
|
0.65
|
|
|
32,984
|
|
2.62
|
|
Long-term
borrowings
|
|
|
15,000
|
|
2.87
|
|
|
15,000
|
|
2.87
|
|
Total interest-bearing
liabilities
|
|
|
990,716
|
|
0.88
|
%
|
|
932,654
|
|
0.99
|
%
|
Noninterest-bearing
deposits
|
|
|
352,681
|
|
|
|
|
331,032
|
|
|
|
Accrued expenses and
other liabilities
|
|
|
9,262
|
|
|
|
|
11,633
|
|
|
|
Stockholders'
equity
|
|
|
194,332
|
|
|
|
|
184,972
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,546,991
|
|
|
|
$
|
1,460,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.20
|
%
|
|
|
|
3.28
|
%
|
Net interest
margin
|
|
|
|
|
3.48
|
%
|
|
|
|
3.61
|
%
|
|
|
(1)
|
All amounts are
reported on a tax-equivalent basis computed using the statutory
federal income tax rate of 21.0%, exclusive of 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 (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
Q1 2020
|
|
Q1 2020
|
|
|
2020
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
compared
to
|
|
compared
to
|
|
|
Q1
2020
|
|
Q4 2019
|
|
Q3 2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2019
|
|
Q1 2019
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent net
interest income
|
|
$
|
12,554
|
|
$
|
12,808
|
|
$
|
12,724
|
|
$
|
12,334
|
|
$
|
12,428
|
|
(2.0)
|
%
|
1.0
|
Less:
Taxable-equivalent adjustment
|
|
|
36
|
|
|
44
|
|
|
44
|
|
|
41
|
|
|
34
|
|
(18.2)
|
|
5.9
|
Net interest
income
|
|
|
12,518
|
|
|
12,764
|
|
|
12,680
|
|
|
12,293
|
|
|
12,394
|
|
(1.9)
|
|
1.0
|
Provision for credit
losses
|
|
|
350
|
|
|
200
|
|
|
200
|
|
|
200
|
|
|
100
|
|
75.0
|
|
250.0
|
Noninterest
income
|
|
|
2,352
|
|
|
2,694
|
|
|
2,529
|
|
|
2,609
|
|
|
2,188
|
|
(12.7)
|
|
7.5
|
Noninterest
expense
|
|
|
10,349
|
|
|
9,845
|
|
|
9,384
|
|
|
8,985
|
|
|
9,343
|
|
5.1
|
|
10.8
|
Income from continuing
operations before income taxes
|
|
|
4,171
|
|
|
5,413
|
|
|
5,625
|
|
|
5,717
|
|
|
5,139
|
|
(22.9)
|
|
(18.8)
|
Income tax
expense
|
|
|
1,053
|
|
|
1,399
|
|
|
1,411
|
|
|
1,489
|
|
|
1,311
|
|
(24.7)
|
|
(19.7)
|
Income from continuing
operations
|
|
|
3,118
|
|
|
4,014
|
|
|
4,214
|
|
|
4,228
|
|
|
3,828
|
|
(22.3)
|
|
(18.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations before income taxes
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
(4)
|
|
|
(99)
|
|
—
|
|
100.0
|
Income tax
benefit
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(25)
|
|
—
|
|
100.0
|
Loss from discontinued
operations
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(4)
|
|
|
(74)
|
|
—
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,118
|
|
$
|
4,014
|
|
$
|
4,206
|
|
$
|
4,224
|
|
$
|
3,754
|
|
(22.3)
|
|
(16.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.81
|
%
|
|
1.03
|
%
|
|
1.10
|
%
|
|
1.16
|
%
|
|
1.06
|
%
|
(22)
|
bp
|
(25)
|
Return on average
equity
|
|
|
6.45
|
|
|
8.24
|
|
|
8.66
|
|
|
8.97
|
|
|
8.39
|
|
(179)
|
|
(194)
|
Return on average
tangible equity (1)
|
|
|
7.43
|
|
|
9.43
|
|
|
9.90
|
|
|
10.31
|
|
|
9.72
|
|
(200)
|
|
(229)
|
Net interest
margin
|
|
|
3.48
|
|
|
3.47
|
|
|
3.52
|
|
|
3.54
|
|
|
3.61
|
|
1
|
|
(13)
|
Efficiency ratio -
GAAP
|
|
|
69.60
|
|
|
63.69
|
|
|
61.70
|
|
|
60.29
|
|
|
64.07
|
|
591
|
|
553
|
Efficiency ratio -
Non-GAAP (1)
|
|
|
68.46
|
|
|
62.58
|
|
|
60.58
|
|
|
59.09
|
|
|
62.81
|
|
588
|
|
565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
(21.9)
|
%
|
(16.7)
|
Loss from discontinued
operations
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
—
|
|
100.0
|
Net income
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
(21.9)
|
|
(13.8)
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
(21.9)
|
|
(16.7)
|
Loss from discontinued
operations
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
—
|
|
100.0
|
Net income
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
(21.9)
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.12
|
|
|
0.12
|
|
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
—
|
|
20.0
|
Book value per common
share at period end
|
|
|
15.62
|
|
|
15.42
|
|
|
15.22
|
|
|
14.97
|
|
|
14.64
|
|
1.3
|
|
6.7
|
Tangible book value
per common share at period end (1)
|
|
|
14.06
|
|
|
13.84
|
|
|
13.66
|
|
|
13.40
|
|
|
13.06
|
|
1.6
|
|
7.7
|
Market value at period
end
|
|
|
10.85
|
|
|
17.36
|
|
|
15.41
|
|
|
16.34
|
|
|
14.91
|
|
(37.5)
|
|
(27.2)
|
Market
range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
17.56
|
|
|
17.90
|
|
|
17.00
|
|
|
16.48
|
|
|
16.11
|
|
(1.9)
|
|
9.0
|
Low
|
|
|
7.63
|
|
|
15.01
|
|
|
14.90
|
|
|
14.84
|
|
|
14.00
|
|
(49.2)
|
|
(45.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,263,441
|
|
$
|
1,246,355
|
|
$
|
1,235,374
|
|
$
|
1,221,215
|
|
$
|
1,201,913
|
|
1.4
|
%
|
5.1
|
Investment
securities
|
|
|
129,410
|
|
|
145,544
|
|
|
155,324
|
|
|
159,878
|
|
|
165,009
|
|
(11.1)
|
|
(21.6)
|
Earning
assets
|
|
|
1,450,508
|
|
|
1,463,490
|
|
|
1,432,252
|
|
|
1,399,418
|
|
|
1,394,728
|
|
(0.9)
|
|
4.0
|
Assets
|
|
|
1,546,991
|
|
|
1,553,017
|
|
|
1,513,790
|
|
|
1,468,093
|
|
|
1,460,291
|
|
(0.4)
|
|
5.9
|
Deposits
|
|
|
1,327,162
|
|
|
1,334,047
|
|
|
1,280,057
|
|
|
1,233,951
|
|
|
1,215,702
|
|
(0.5)
|
|
9.2
|
Stockholders'
equity
|
|
|
194,332
|
|
|
193,239
|
|
|
193,120
|
|
|
189,101
|
|
|
184,972
|
|
0.6
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
$
|
479
|
|
$
|
131
|
|
$
|
67
|
|
$
|
313
|
|
$
|
25
|
|
265.6
|
%
|
1,816.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
11,540
|
|
$
|
10,590
|
|
$
|
12,530
|
|
$
|
14,592
|
|
$
|
15,360
|
|
9.0
|
|
(24.9)
|
Loans 90 days past due
and still accruing
|
|
|
721
|
|
|
1,326
|
|
|
712
|
|
|
439
|
|
|
47
|
|
(45.6)
|
|
1,434.0
|
Other real estate
owned
|
|
|
38
|
|
|
74
|
|
|
74
|
|
|
524
|
|
|
979
|
|
(48.6)
|
|
(96.1)
|
Total nonperforming
assets
|
|
$
|
12,299
|
|
$
|
11,990
|
|
$
|
13,316
|
|
$
|
15,555
|
|
$
|
16,386
|
|
2.6
|
|
(24.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
|
$
|
7,444
|
|
$
|
7,501
|
|
$
|
7,588
|
|
$
|
7,768
|
|
$
|
7,828
|
|
(0.8)
|
|
(4.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and accruing TDRs
|
|
$
|
19,743
|
|
$
|
19,491
|
|
$
|
20,904
|
|
$
|
23,323
|
|
$
|
24,214
|
|
1.3
|
|
(18.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
12.45
|
%
|
|
12.37
|
%
|
|
12.42
|
%
|
|
12.85
|
%
|
|
12.59
|
%
|
8
|
bp
|
(14)
|
Period-end tangible
equity to tangible assets (1)
|
|
|
11.35
|
|
|
11.24
|
|
|
11.29
|
|
|
11.66
|
|
|
11.39
|
|
11
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
charge-offs to average loans
|
|
|
0.15
|
|
|
0.04
|
|
|
0.02
|
|
|
0.10
|
|
|
0.01
|
|
11
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
|
|
0.81
|
|
|
0.84
|
|
|
0.85
|
|
|
0.83
|
|
|
0.86
|
|
(3)
|
|
(5)
|
Nonaccrual
loans
|
|
|
89.93
|
|
|
99.22
|
|
|
83.30
|
|
|
70.62
|
|
|
67.83
|
|
(929)
|
|
2,210
|
Nonperforming
assets
|
|
|
84.38
|
|
|
87.63
|
|
|
78.39
|
|
|
66.25
|
|
|
63.58
|
|
(325)
|
|
2,080
|
Accruing
TDRs
|
|
|
139.41
|
|
|
140.07
|
|
|
137.56
|
|
|
132.66
|
|
|
133.09
|
|
(66)
|
|
632
|
Nonperforming assets
and accruing TDRs
|
|
|
52.57
|
|
|
53.91
|
|
|
49.93
|
|
|
44.18
|
|
|
43.02
|
|
(134)
|
|
955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.90
|
|
|
0.85
|
|
|
1.01
|
|
|
1.18
|
|
|
1.27
|
|
5
|
|
(37)
|
Accruing
TDRs
|
|
|
0.58
|
|
|
0.60
|
|
|
0.61
|
|
|
0.63
|
|
|
0.65
|
|
(2)
|
|
(7)
|
Nonaccrual loans and
accruing TDRs
|
|
|
1.49
|
|
|
1.45
|
|
|
1.63
|
|
|
1.80
|
|
|
1.91
|
|
4
|
|
(42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
0.96
|
|
|
0.96
|
|
|
1.08
|
|
|
1.25
|
|
|
1.35
|
|
—
|
|
(39)
|
Nonperforming assets
and accruing TDRs
|
|
|
1.55
|
|
|
1.56
|
|
|
1.69
|
|
|
1.88
|
|
|
2.00
|
|
(1)
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.73
|
|
|
0.68
|
|
|
0.80
|
|
|
0.98
|
|
|
1.03
|
|
5
|
|
(30)
|
Nonperforming
assets
|
|
|
0.78
|
|
|
0.77
|
|
|
0.85
|
|
|
1.04
|
|
|
1.10
|
|
1
|
|
(32)
|
Accruing
TDRs
|
|
|
0.47
|
|
|
0.48
|
|
|
0.49
|
|
|
0.52
|
|
|
0.53
|
|
(1)
|
|
(6)
|
Nonperforming assets
and accruing TDRs
|
|
|
1.25
|
|
|
1.25
|
|
|
1.34
|
|
|
1.56
|
|
|
1.63
|
|
—
|
|
(38)
|
|
|
(1)
|
See the
reconciliation table.
|
Shore Bancshares,
Inc. Consolidated Statements of Income By Quarter
(Unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020
|
|
Q1 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared
to
|
|
compared
to
|
|
|
|
Q1
2020
|
|
Q4 2019
|
|
Q3 2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2019
|
|
Q1 2019
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
13,795
|
|
$
|
14,043
|
|
$
|
14,100
|
|
$
|
13,749
|
|
$
|
13,499
|
|
(1.8)
|
%
|
2.2
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
719
|
|
|
827
|
|
|
870
|
|
|
887
|
|
|
998
|
|
(13.1)
|
|
(28.0)
|
|
Interest on deposits
with other banks
|
|
|
172
|
|
|
295
|
|
|
223
|
|
|
113
|
|
|
163
|
|
(41.7)
|
|
5.5
|
|
Total interest
income
|
|
|
14,686
|
|
|
15,165
|
|
|
15,193
|
|
|
14,749
|
|
|
14,660
|
|
(3.2)
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,059
|
|
|
2,287
|
|
|
2,288
|
|
|
2,204
|
|
|
1,947
|
|
(10.0)
|
|
5.8
|
|
Interest on short-term
borrowings
|
|
|
2
|
|
|
6
|
|
|
117
|
|
|
145
|
|
|
213
|
|
(66.7)
|
|
(99.1)
|
|
Interest on long-term
borrowings
|
|
|
107
|
|
|
108
|
|
|
108
|
|
|
107
|
|
|
106
|
|
(0.9)
|
|
0.9
|
|
Total interest
expense
|
|
|
2,168
|
|
|
2,401
|
|
|
2,513
|
|
|
2,456
|
|
|
2,266
|
|
(9.7)
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
12,518
|
|
|
12,764
|
|
|
12,680
|
|
|
12,293
|
|
|
12,394
|
|
(1.9)
|
|
1.0
|
|
Provision for credit
losses
|
|
|
350
|
|
|
200
|
|
|
200
|
|
|
200
|
|
|
100
|
|
75.0
|
|
250.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
12,168
|
|
|
12,564
|
|
|
12,480
|
|
|
12,093
|
|
|
12,294
|
|
(3.2)
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
866
|
|
|
958
|
|
|
990
|
|
|
1,028
|
|
|
934
|
|
(9.6)
|
|
(7.3)
|
|
Trust and investment
fee income
|
|
|
375
|
|
|
382
|
|
|
383
|
|
|
385
|
|
|
372
|
|
(1.8)
|
|
0.8
|
|
Other noninterest
income
|
|
|
1,111
|
|
|
1,354
|
|
|
1,156
|
|
|
1,196
|
|
|
882
|
|
(17.9)
|
|
26.0
|
|
Total noninterest
income
|
|
|
2,352
|
|
|
2,694
|
|
|
2,529
|
|
|
2,609
|
|
|
2,188
|
|
(12.7)
|
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
4,296
|
|
|
4,002
|
|
|
3,853
|
|
|
3,792
|
|
|
3,766
|
|
7.3
|
|
14.1
|
|
Employee
benefits
|
|
|
1,722
|
|
|
1,662
|
|
|
1,299
|
|
|
1,068
|
|
|
1,254
|
|
3.6
|
|
37.3
|
|
Occupancy
expense
|
|
|
698
|
|
|
702
|
|
|
697
|
|
|
668
|
|
|
691
|
|
(0.6)
|
|
1.0
|
|
Furniture and
equipment expense
|
|
|
317
|
|
|
286
|
|
|
263
|
|
|
295
|
|
|
263
|
|
10.8
|
|
20.5
|
|
Data
processing
|
|
|
1,044
|
|
|
989
|
|
|
972
|
|
|
919
|
|
|
910
|
|
5.6
|
|
14.7
|
|
Directors'
fees
|
|
|
141
|
|
|
137
|
|
|
140
|
|
|
116
|
|
|
86
|
|
2.9
|
|
64.0
|
|
Amortization of
intangible assets
|
|
|
144
|
|
|
144
|
|
|
144
|
|
|
155
|
|
|
162
|
|
—
|
|
(11.1)
|
|
FDIC insurance premium
expense
|
|
|
91
|
|
|
(42)
|
|
|
—
|
|
|
181
|
|
|
205
|
|
316.7
|
|
(55.6)
|
|
Other real estate
owned expenses, net
|
|
|
18
|
|
|
(1)
|
|
|
133
|
|
|
60
|
|
|
233
|
|
1,900.0
|
|
(92.3)
|
|
Legal and professional
fees
|
|
|
634
|
|
|
568
|
|
|
495
|
|
|
559
|
|
|
601
|
|
11.6
|
|
5.5
|
|
Other noninterest
expenses
|
|
|
1,244
|
|
|
1,398
|
|
|
1,388
|
|
|
1,172
|
|
|
1,172
|
|
(11.0)
|
|
6.1
|
|
Total noninterest
expense
|
|
|
10,349
|
|
|
9,845
|
|
|
9,384
|
|
|
8,985
|
|
|
9,343
|
|
5.1
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
4,171
|
|
|
5,413
|
|
|
5,625
|
|
|
5,717
|
|
|
5,139
|
|
(22.9)
|
|
(18.8)
|
|
Income tax
expense
|
|
|
1,053
|
|
|
1,399
|
|
|
1,411
|
|
|
1,489
|
|
|
1,311
|
|
(24.7)
|
|
(19.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
3,118
|
|
|
4,014
|
|
|
4,214
|
|
|
4,228
|
|
|
3,828
|
|
(22.3)
|
|
(18.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations before income taxes
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
(4)
|
|
|
(99)
|
|
—
|
|
100.0
|
|
Income tax
benefit
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(25)
|
|
—
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(4)
|
|
|
(74)
|
|
—
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
3,118
|
|
$
|
4,014
|
|
$
|
4,206
|
|
$
|
4,224
|
|
$
|
3,754
|
|
(22.3)
|
|
(16.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
12,513
|
|
|
12,588
|
|
|
12,764
|
|
|
12,779
|
|
|
12,769
|
|
(0.6)
|
|
(2.0)
|
|
Weighted average
shares outstanding - diluted
|
|
|
12,518
|
|
|
12,593
|
|
|
12,769
|
|
|
12,784
|
|
|
12,773
|
|
(0.6)
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
(21.9)
|
|
(16.7)
|
|
Loss from discontinued
operations
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
—
|
|
100.0
|
|
Net income
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
(21.9)
|
|
(13.8)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
(21.9)
|
|
(16.7)
|
|
Loss from discontinued
operations
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
—
|
|
100.0
|
|
Net income
|
|
$
|
0.25
|
|
$
|
0.32
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
(21.9)
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.12
|
|
|
0.12
|
|
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
—
|
|
20.0
|
|
Shore Bancshares,
Inc. Consolidated Average Balance Sheets By Quarter
(Unaudited)
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020
|
|
Q1 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to
|
|
compared to
|
|
|
|
Q1
2020
|
|
Q4 2019
|
|
Q3 2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2019
|
|
Q1 2019
|
|
|
|
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)
|
|
|
1,263,441
|
|
4.40
|
%
|
$
|
1,246,355
|
|
4.48
|
%
|
$
|
1,235,374
|
|
4.54
|
%
|
$
|
1,221,215
|
|
4.53
|
%
|
$
|
1,201,913
|
|
4.57
|
%
|
1.4
|
%
|
5.1
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
129,410
|
|
2.22
|
|
|
145,544
|
|
2.27
|
|
|
155,324
|
|
2.24
|
|
|
159,878
|
|
2.22
|
|
|
165,009
|
|
2.45
|
|
(11.1)
|
|
(21.6)
|
|
Interest-bearing
deposits
|
|
|
57,657
|
|
1.20
|
|
|
71,591
|
|
1.63
|
|
|
41,554
|
|
2.13
|
|
|
18,325
|
|
2.47
|
|
|
27,806
|
|
2.38
|
|
(19.5)
|
|
107.4
|
|
Total earning
assets
|
|
|
1,450,508
|
|
4.08
|
%
|
|
1,463,490
|
|
4.12
|
%
|
|
1,432,252
|
|
4.22
|
%
|
|
1,399,418
|
|
4.24
|
%
|
|
1,394,728
|
|
4.27
|
%
|
(0.9)
|
|
4.0
|
|
Cash and due from
banks
|
|
|
17,874
|
|
|
|
|
20,382
|
|
|
|
|
18,127
|
|
|
|
|
17,225
|
|
|
|
|
17,196
|
|
|
|
(12.3)
|
|
3.9
|
|
Other
assets
|
|
|
89,154
|
|
|
|
|
79,586
|
|
|
|
|
73,823
|
|
|
|
|
61,906
|
|
|
|
|
58,756
|
|
|
|
12.0
|
|
51.7
|
|
Allowance for credit
losses
|
|
|
(10,545)
|
|
|
|
|
(10,441)
|
|
|
|
|
(10,412)
|
|
|
|
|
(10,456)
|
|
|
|
|
(10,389)
|
|
|
|
1.0
|
|
1.5
|
|
Total
assets
|
|
$
|
1,546,991
|
|
|
|
$
|
1,553,017
|
|
|
|
$
|
1,513,790
|
|
|
|
$
|
1,468,093
|
|
|
|
$
|
1,460,291
|
|
|
|
(0.4)
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
284,176
|
|
0.56
|
%
|
$
|
284,193
|
|
0.76
|
%
|
$
|
252,386
|
|
0.70
|
%
|
$
|
234,775
|
|
0.65
|
%
|
$
|
239,794
|
|
0.61
|
%
|
—
|
|
18.5
|
|
Money market and
savings deposits
|
|
|
410,252
|
|
0.46
|
|
|
397,662
|
|
0.51
|
|
|
389,268
|
|
0.67
|
|
|
385,272
|
|
0.84
|
|
|
383,738
|
|
0.85
|
|
3.2
|
|
6.9
|
|
Brokered
deposits
|
|
|
—
|
|
—
|
|
|
8,135
|
|
2.15
|
|
|
14,568
|
|
2.29
|
|
|
20,866
|
|
2.52
|
|
|
22,080
|
|
2.37
|
|
(100.0)
|
|
(100.0)
|
|
Certificates of deposit
$100,000 or more
|
|
|
129,408
|
|
1.85
|
|
|
126,411
|
|
1.85
|
|
|
119,200
|
|
1.78
|
|
|
107,549
|
|
1.54
|
|
|
98,535
|
|
1.24
|
|
2.4
|
|
31.3
|
|
Other time
deposits
|
|
|
150,645
|
|
1.60
|
|
|
149,197
|
|
1.58
|
|
|
149,708
|
|
1.49
|
|
|
145,900
|
|
1.31
|
|
|
140,523
|
|
1.02
|
|
1.0
|
|
7.2
|
|
Interest-bearing
deposits
|
|
|
974,481
|
|
0.85
|
|
|
965,598
|
|
0.94
|
|
|
925,130
|
|
0.98
|
|
|
894,362
|
|
0.99
|
|
|
884,670
|
|
0.89
|
|
0.9
|
|
10.2
|
|
Short-term
borrowings
|
|
|
1,235
|
|
0.65
|
|
|
1,889
|
|
1.26
|
|
|
17,729
|
|
2.64
|
|
|
21,557
|
|
2.70
|
|
|
32,984
|
|
2.62
|
|
(34.6)
|
|
(96.3)
|
|
Long-term
borrowings
|
|
|
15,000
|
|
2.87
|
|
|
15,000
|
|
2.86
|
|
|
15,000
|
|
2.86
|
|
|
15,000
|
|
2.86
|
|
|
15,000
|
|
2.87
|
|
—
|
|
—
|
|
Total interest-bearing
liabilities
|
|
|
990,716
|
|
0.88
|
%
|
|
982,487
|
|
0.97
|
%
|
|
957,859
|
|
1.04
|
%
|
|
930,919
|
|
1.06
|
%
|
|
932,654
|
|
0.99
|
%
|
0.8
|
|
6.2
|
|
Noninterest-bearing
deposits
|
|
|
352,681
|
|
|
|
|
368,449
|
|
|
|
|
354,927
|
|
|
|
|
339,589
|
|
|
|
|
331,032
|
|
|
|
(4.3)
|
|
6.5
|
|
Accrued expenses and
other liabilities
|
|
|
9,262
|
|
|
|
|
8,842
|
|
|
|
|
7,884
|
|
|
|
|
8,484
|
|
|
|
|
11,633
|
|
|
|
4.8
|
|
(20.4)
|
|
Stockholders'
equity
|
|
|
194,332
|
|
|
|
|
193,239
|
|
|
|
|
193,120
|
|
|
|
|
189,101
|
|
|
|
|
184,972
|
|
|
|
0.6
|
|
5.1
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,546,991
|
|
|
|
$
|
1,553,017
|
|
|
|
$
|
1,513,790
|
|
|
|
$
|
1,468,093
|
|
|
|
$
|
1,460,291
|
|
|
|
(0.4)
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.20
|
%
|
|
|
|
3.15
|
%
|
|
|
|
3.18
|
%
|
|
|
|
3.18
|
%
|
|
|
|
3.28
|
%
|
|
|
|
|
Net interest
margin
|
|
|
|
|
3.48
|
%
|
|
|
|
3.47
|
%
|
|
|
|
3.52
|
%
|
|
|
|
3.54
|
%
|
|
|
|
3.61
|
%
|
|
|
|
|
|
|
(1)
|
All amounts are
reported on a tax-equivalent basis computed using the statutory
federal income tax rate of 21.0%, exclusive of 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 (Unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
|
|
YTD
|
|
|
|
Q1
2020
|
|
Q4 2019
|
|
Q3 2019
|
|
Q2 2019
|
|
Q1 2019
|
|
3/31/2020
|
|
3/31/2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles return on average equity and return on average tangible
equity from continuing operations (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
3,118
|
|
$
|
4,014
|
|
$
|
4,214
|
|
$
|
4,228
|
|
$
|
3,828
|
|
$
|
3,118
|
|
$
|
3,828
|
|
Income from
continuing operations - annualized (A)
|
|
$
|
12,541
|
|
$
|
15,925
|
|
$
|
16,719
|
|
$
|
16,958
|
|
$
|
15,525
|
|
$
|
12,541
|
|
$
|
15,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets
|
|
$
|
3,225
|
|
$
|
4,121
|
|
$
|
4,321
|
|
$
|
4,344
|
|
$
|
3,949
|
|
$
|
3,225
|
|
$
|
3,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets - annualized (B)
|
|
$
|
12,971
|
|
$
|
16,350
|
|
$
|
17,143
|
|
$
|
17,424
|
|
$
|
16,015
|
|
$
|
12,971
|
|
$
|
16,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity (C)
|
|
$
|
194,332
|
|
$
|
193,239
|
|
$
|
193,120
|
|
$
|
189,101
|
|
$
|
184,972
|
|
$
|
194,332
|
|
$
|
184,972
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(19,702)
|
|
|
(19,846)
|
|
|
(19,991)
|
|
|
(20,138)
|
|
|
(20,281)
|
|
|
(19,702)
|
|
|
(20,281)
|
|
Average tangible
equity (D)
|
|
$
|
174,630
|
|
$
|
173,393
|
|
$
|
173,129
|
|
$
|
168,963
|
|
$
|
164,691
|
|
$
|
174,630
|
|
$
|
164,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP) (A)/(C)
|
|
|
6.45
|
%
|
|
8.24
|
%
|
|
8.66
|
%
|
|
8.97
|
%
|
|
8.39
|
%
|
|
6.45
|
%
|
|
8.39
|
%
|
Return on average
tangible equity (Non-GAAP) (B)/(D)
|
|
|
7.43
|
%
|
|
9.43
|
%
|
|
9.90
|
%
|
|
10.31
|
%
|
|
9.72
|
%
|
|
7.43
|
%
|
|
9.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles GAAP efficiency ratio and non-GAAP efficiency ratio from
continuing operations (Note 2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(E)
|
|
$
|
10,349
|
|
$
|
9,845
|
|
$
|
9,384
|
|
$
|
8,985
|
|
$
|
9,343
|
|
$
|
10,349
|
|
$
|
9,343
|
|
Less:
Amortization of intangible assets
|
|
|
(144)
|
|
|
(144)
|
|
|
(144)
|
|
|
(155)
|
|
|
(162)
|
|
|
(144)
|
|
|
(162)
|
|
Adjusted noninterest
expense (F)
|
|
$
|
10,205
|
|
$
|
9,701
|
|
$
|
9,240
|
|
$
|
8,830
|
|
$
|
9,181
|
|
$
|
10,205
|
|
$
|
9,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(G)
|
|
|
12,518
|
|
|
12,764
|
|
|
12,680
|
|
|
12,293
|
|
|
12,394
|
|
|
12,518
|
|
|
12,394
|
|
Add:
Taxable-equivalent adjustment
|
|
|
36
|
|
|
44
|
|
|
44
|
|
|
41
|
|
|
34
|
|
|
36
|
|
|
34
|
|
Taxable-equivalent
net interest income (H)
|
|
$
|
12,554
|
|
$
|
12,808
|
|
$
|
12,724
|
|
$
|
12,334
|
|
$
|
12,428
|
|
$
|
12,554
|
|
$
|
12,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
(I)
|
|
$
|
2,352
|
|
$
|
2,694
|
|
$
|
2,529
|
|
$
|
2,609
|
|
$
|
2,188
|
|
$
|
2,352
|
|
|
2,188
|
|
Adjusted noninterest
income (J)
|
|
$
|
2,352
|
|
$
|
2,694
|
|
$
|
2,529
|
|
$
|
2,609
|
|
$
|
2,188
|
|
$
|
2,352
|
|
$
|
2,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) (E)/(G)+(I)
|
|
|
69.60
|
%
|
|
63.69
|
%
|
|
61.70
|
%
|
|
60.29
|
%
|
|
64.07
|
%
|
|
69.60
|
%
|
|
64.07
|
%
|
Efficiency ratio
(Non-GAAP) (F)/(H)+(J)
|
|
|
68.46
|
%
|
|
62.58
|
%
|
|
60.58
|
%
|
|
59.09
|
%
|
|
62.81
|
%
|
|
68.46
|
%
|
|
62.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles book value per common share and tangible book value per
common share (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(L)
|
|
$
|
195,694
|
|
$
|
192,802
|
|
$
|
193,963
|
|
$
|
191,307
|
|
$
|
187,082
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(19,626)
|
|
|
(19,770)
|
|
|
(19,914)
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
|
|
|
|
|
Tangible equity
(M)
|
|
$
|
176,068
|
|
$
|
173,032
|
|
$
|
174,049
|
|
$
|
171,249
|
|
$
|
166,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(N)
|
|
|
12,525
|
|
|
12,500
|
|
|
12,742
|
|
|
12,780
|
|
|
12,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP) (L)/(N)
|
|
$
|
15.62
|
|
$
|
15.42
|
|
$
|
15.22
|
|
$
|
14.97
|
|
$
|
14.64
|
|
|
|
|
|
|
|
Tangible book value
per common share (Non-GAAP) (M)/(N)
|
|
$
|
14.06
|
|
$
|
13.84
|
|
$
|
13.66
|
|
$
|
13.40
|
|
$
|
13.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles equity to assets and tangible equity to tangible assets
(Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(O)
|
|
$
|
195,694
|
|
$
|
192,802
|
|
$
|
193,963
|
|
$
|
191,307
|
|
$
|
187,082
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(19,626)
|
|
|
(19,770)
|
|
|
(19,914)
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
|
|
|
|
|
Tangible equity
(P)
|
|
$
|
176,068
|
|
$
|
173,032
|
|
$
|
174,049
|
|
$
|
171,249
|
|
$
|
166,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Q)
|
|
$
|
1,571,421
|
|
$
|
1,559,235
|
|
$
|
1,561,679
|
|
$
|
1,488,562
|
|
$
|
1,485,799
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(19,626)
|
|
|
(19,770)
|
|
|
(19,914)
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
|
|
|
|
|
Tangible assets
(R)
|
|
$
|
1,551,795
|
|
$
|
1,539,465
|
|
$
|
1,541,765
|
|
$
|
1,468,504
|
|
$
|
1,465,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
equity/assets (GAAP) (O)/(Q)
|
|
|
12.45
|
%
|
|
12.37
|
%
|
|
12.42
|
%
|
|
12.85
|
%
|
|
12.59
|
%
|
|
|
|
|
|
|
Period-end tangible
equity/tangible ) (P)/(R)
|
|
|
11.35
|
%
|
|
11.24
|
%
|
|
11.29
|
%
|
|
11.66
|
%
|
|
11.39
|
%
|
|
|
|
|
|
|
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-first-quarter-2020-financial-results-301050430.html
SOURCE Shore Bancshares, Inc.