Shore Bancshares Reports First Quarter 2016 Financial Results
EASTON, Md., April 21, 2016 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ: SHBI) reported net income of $2.460 million or $0.19 per diluted common share for the first quarter of 2016, compared to net income of $2.163 million or $0.17 per diluted common share for the fourth quarter of 2015, and net income of $1.409 million or $0.11 per diluted common share for the first quarter of 2015.
When comparing the first quarter of 2016 to the fourth quarter of 2015, the primary reason for the improved results was a $903 thousand increase in noninterest income partially offset by an increase in noninterest expense of $389 thousand. When comparing the first quarter of 2016 to the first quarter of 2015, the primary reasons for the improved results were increases in net interest income of $704 thousand and noninterest income of $456 thousand. Also contributing to the improved earnings were decreases in noninterest expenses of $365 thousand and provision for credit losses of $200 thousand.
"We are pleased to report our continuing improved earnings over the linked quarter and the first quarter of 2015," said Lloyd L. "Scott" Beatty, Jr., president and chief executive officer. "2016 will be an exciting year as we continue to focus on loan and deposit growth as well as revenues of our other fee based businesses."
Balance Sheet Review
Total assets were $1.131 billion at March 31, 2016, a $4.0 million, or less than 1%, decrease when compared to $1.135 billion at the end of 2015. The decrease in total assets included a decline in investment securities available for sale of $5.4 million, which funded loan growth of $3.8 million for the quarter. Other assets declined $1.5 million, primarily in deferred taxes as the Company continued to utilize net operating loss carryforwards to offset taxable earnings.
Total deposits decreased $5.7 million, or less than 1%, when compared to December 31, 2015. The decrease in total deposits was mainly due to reductions in municipal deposits impacted by tax collections resulting in declines in checking deposits of $9.2 million and time deposits of $6.9 million, which were offset by an increase in money market and savings deposits of $10.4 million. Total stockholders' equity increased $3.1 million, or 2.1%, when compared to the end of 2015. At March 31, 2016, the ratio of total equity to total assets was 13.27% and the ratio of total tangible equity to total tangible assets was 12.25%.
Total assets at March 31, 2016 increased $37.1 million, or 3.4%, when compared to total assets at March 31, 2015. The increase in total assets was primarily due to significant loan growth of $77.3 million, partially funded by a decrease in investment securities of $33.9 million and cash and cash equivalents of $2.3 million.
Review of Quarterly Financial Results
Net interest income was $9.2 million for the first quarter of 2016, compared to $9.3 million for the fourth quarter of 2015 and $8.5 million for the first quarter of 2015. Net interest income when compared to the fourth quarter of 2015 was lower by $50 thousand due to one less earnings day, as well as, lower yields on loans, partially offset by a higher yield on taxable investment securities. Also impacting the margin was the increase in the federal funds rate of 25bps in late December of 2015 which resulted in a higher yield on deposits with other banks. The Company's net interest margin improved by 5 basis points to 3.50% over the fourth quarter of 2015. The increase in net interest income when compared to the first quarter of 2015 was primarily the result of significant loan growth, with average loans increasing $76 million. The Company's net interest margin when compared to the first quarter of 2015 increased 7 basis points to 3.50%, the result of higher loan volume and higher yields on investment securities, partially offset by a decline in yields on loans. Additionally, average rates paid on deposits declined 13 basis points primarily related to time deposit repricing.
The provision for credit losses was $450 thousand for the three months ended March 31, 2016. The comparable amounts were $475 thousand and $650 thousand for the three months ended December 31, 2015 and March 31, 2015, respectively. The provision for credit losses slightly decreased between the first quarter of 2016 and the fourth quarter of 2015, due to a decline in nonaccrual loans. The lower level of provision for credit losses when comparing the first quarter of 2016 to the first quarter of 2015 was primarily due to decreases in loan charge-offs and nonaccrual loans. Net charge-offs were $457 thousand for the first quarter of 2016, $257 thousand for the fourth quarter of 2015 and $547 thousand for the first quarter of 2015. The ratio of annualized net charge-offs to average loans was 0.23% for the first quarter of 2016, 0.13% for the fourth quarter of 2015 and 0.31% for the first quarter of 2015. The ratio of the allowance for credit losses to period-end loans at March 31, 2016 was 1.04%, lower than the 1.05% at December 31, 2015 and 1.08% at March 31, 2015.
Nonperforming assets excluding accruing troubled debt restructurings (TDRs) were $15.9 million at March 31, 2016, $16.4 million at December 31, 2015 and $16.4 million at March 31, 2015. Nonperforming assets including accruing TDRs at March 31, 2016 were $30.6 million, compared to $31.8 million at December 31, 2015 and $33.1 million at March 31, 2015. The decreases in nonperforming assets and TDRs are the result of the continued work out efforts and charge-offs period over period. At March 31, 2016, the ratio of nonaccrual loans to total assets was 1.05%, compared to 1.07% and 1.18% at December 31, 2015 and March 31, 2015, respectively. In addition, the ratio of accruing TDRs to total assets at March 31, 2016 was 1.30%, improving from 1.37% and 1.52% at December 31, 2015 and March 31, 2015.
Total noninterest income for the first quarter of 2016 increased $903 thousand when compared to the fourth quarter of 2015 and increased $456 thousand when compared to the first quarter of 2015. The increase from the fourth quarter of 2015 was the result of higher insurance agency commissions, mainly from contingency payments which are typically received in the first quarter of each year and are based on the prior year's performance. The increase from the first quarter of 2015 was due to increases in service charges on deposits and other banking service fees of $179 thousand, an increase in retail insurance commissions of $184 thousand, and an increase in contingency payments of $100 thousand, offset by decline in trust and investment fee income of $118 thousand.
Total noninterest expense for the first quarter of 2016 increased $389 thousand when compared to the fourth quarter of 2015 and decreased $365 thousand when compared to the first quarter of 2015. The increase in noninterest expense compared to the fourth quarter of 2015 was primarily due to higher costs associated with employee benefits of $224 thousand, which included higher insurance premiums for group insurance and federal unemployment insurance which is usually paid the first two quarters of the year. Salaries and wages also increased by $111 thousand in the first quarter due to pay increases implemented during the period. The decrease from the first quarter of 2015 was primarily due to lower legal and professional fees of $340 thousand, lower FDIC insurance premiums of $102 thousand, offset by an increase in salary and wages of $164 thousand due to pay increases.
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 two Maryland chartered commercial banks, The Talbot Bank of Easton, Maryland, and CNB; one retail insurance producer firm, The Avon-Dixon Agency, LLC, with two specialty lines, Elliot Wilson Insurance (Trucking), and Jack Martin and Associates (Marine); and an insurance premium finance company, Mubell Finance, LLC. Shore Bancshares, Inc. engages in the trust services business through the trust department at CNB under the name "Wye Financial & Trust". 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.
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Shore Bancshares, Inc. |
Page 4 of 11 |
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Financial Highlights |
|||||||
|
(Dollars in thousands, except per share data) |
|||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
Change |
|||||
|
Net interest income |
$ 9,243 |
$ 8,539 |
8.2 |
% | |||
|
Provision for credit losses |
450 |
650 |
(30.8) |
||||
|
Noninterest income |
4,541 |
4,085 |
11.2 |
||||
|
Noninterest expense |
9,339 |
9,704 |
(3.8) |
||||
|
Income before income taxes |
3,995 |
2,270 |
76.0 |
||||
|
Income tax expense |
1,535 |
861 |
78.3 |
||||
|
Net income |
$ 2,460 |
$ 1,409 |
74.6 |
||||
|
Return on average assets |
0.88 |
% |
0.53 |
% |
35 |
bp | |
|
Return on average equity |
6.64 |
4.03 |
261 |
||||
|
Return on average tangible equity (1) |
7.34 |
4.50 |
284 |
||||
|
Net interest margin |
3.50 |
3.43 |
7 |
||||
|
Efficiency ratio - GAAP |
67.61 |
76.74 |
(913) |
||||
|
Efficiency ratio - Non-GAAP (1) |
67.37 |
76.48 |
(911) |
||||
|
PER SHARE DATA |
|||||||
|
Basic net income per common share |
$ 0.19 |
$ 0.11 |
72.7 |
% | |||
|
Diluted net income per common share |
0.19 |
0.11 |
72.7 |
||||
|
Dividends paid per common share |
0.03 |
- |
100.0 |
||||
|
Book value per common share at period end |
11.88 |
11.31 |
5.0 |
||||
|
Tangible book value per common share at period end (1) |
10.84 |
10.26 |
5.7 |
||||
|
Market value at period end |
11.98 |
9.18 |
30.5 |
||||
|
Market range: |
|||||||
|
High |
12.08 |
9.30 |
29.9 |
||||
|
Low |
11.95 |
9.03 |
32.3 |
||||
|
AVERAGE BALANCE SHEET DATA |
|||||||
|
Loans |
$ 790,777 |
$ 714,780 |
10.6 |
% | |||
|
Investment securities |
214,988 |
244,300 |
(12.0) |
||||
|
Earning assets |
1,065,514 |
1,013,490 |
5.1 |
||||
|
Assets |
1,130,238 |
1,087,401 |
3.9 |
||||
|
Deposits |
968,991 |
932,460 |
3.9 |
||||
|
Stockholders' equity |
149,032 |
141,884 |
5.0 |
||||
|
CREDIT QUALITY DATA AT PERIOD END |
|||||||
|
Net charge-offs |
$ 457 |
$ 547 |
(16.5) |
% | |||
|
Nonaccrual loans |
$ 11,925 |
$ 12,913 |
(7.7) |
||||
|
Loans 90 days past due and still accruing |
35 |
36 |
(2.8) |
||||
|
Other real estate owned |
3,896 |
3,469 |
12.3 |
||||
|
Total nonperforming assets |
15,856 |
16,418 |
(3.4) |
||||
|
Accruing troubled debt restructurings (TDRs) |
14,753 |
16,644 |
(11.4) |
||||
|
Total nonperforming assets and accruing TDRs |
$ 30,609 |
$ 33,062 |
(7.4) |
||||
|
CAPITAL AND CREDIT QUALITY RATIOS |
|||||||
|
Period-end equity to assets |
13.27 |
% |
13.05 |
% |
22 |
bp | |
|
Period-end tangible equity to tangible assets (1) |
12.25 |
11.98 |
27 |
||||
|
Annualized net charge-offs to average loans |
0.23 |
0.31 |
(8) |
||||
|
Allowance for credit losses as a percent of: |
|||||||
|
Period-end loans |
1.04 |
1.08 |
(4) |
||||
|
Nonaccrual loans |
69.68 |
60.39 |
929 |
||||
|
Nonperforming assets |
52.40 |
47.50 |
490 |
||||
|
Accruing TDRs |
56.32 |
46.85 |
947 |
||||
|
Nonperforming assets and accruing TDRs |
27.15 |
23.59 |
356 |
||||
|
As a percent of total loans: |
|||||||
|
Nonaccrual loans |
1.49 |
1.79 |
(30) |
||||
|
Accruing TDRs |
1.85 |
2.31 |
(46) |
||||
|
Nonaccrual loans and accruing TDRs |
3.34 |
4.10 |
(76) |
||||
|
As a percent of total loans+other real estate owned: |
|||||||
|
Nonperforming assets |
1.98 |
2.26 |
(28) |
||||
|
Nonperforming assets and accruing TDRs |
3.81 |
4.56 |
(75) |
||||
|
As a percent of total assets: |
|||||||
|
Nonaccrual loans |
1.05 |
1.18 |
(13) |
||||
|
Nonperforming assets |
1.40 |
1.50 |
(10) |
||||
|
Accruing TDRs |
1.30 |
1.52 |
(22) |
||||
|
Nonperforming assets and accruing TDRs |
2.70 |
3.02 |
(32) |
||||
|
(1) See the reconciliation table on page 11 of 11. |
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Shore Bancshares, Inc. |
Page 5 of 11 | |||||||||
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Consolidated Balance Sheets |
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(In thousands, except per share data) |
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|
March 31, 2016 |
March 31, 2016 |
|||||||||
|
March 31, |
December 31, |
March 31, |
compared to |
compared to |
||||||
|
2016 |
2015 |
2015 |
December 31, 2015 |
March 31, 2015 |
||||||
|
ASSETS |
||||||||||
|
Cash and due from banks |
$ 14,566 |
$ 15,080 |
$ 24,319 |
(3.4) |
% |
(40.1) |
% | |||
|
Interest-bearing deposits with other banks |
58,507 |
54,223 |
48,398 |
7.9 |
20.9 |
|||||
|
Federal funds sold |
553 |
4,508 |
3,241 |
(87.7) |
(82.9) |
|||||
|
Cash and cash equivalents |
73,626 |
73,811 |
75,958 |
(0.3) |
(3.1) |
|||||
|
Investment securities available for sale (at fair value) |
206,735 |
212,165 |
240,111 |
(2.6) |
(13.9) |
|||||
|
Investment securities held to maturity |
3,996 |
4,191 |
4,515 |
(4.7) |
(11.5) |
|||||
|
Loans |
798,921 |
795,114 |
721,605 |
0.5 |
10.7 |
|||||
|
Less: allowance for credit losses |
(8,309) |
(8,316) |
(7,798) |
(0.1) |
6.6 |
|||||
|
Loans, net |
790,612 |
786,798 |
713,807 |
0.5 |
10.8 |
|||||
|
Premises and equipment, net |
16,813 |
16,864 |
16,728 |
(0.3) |
0.5 |
|||||
|
Goodwill |
11,931 |
11,931 |
11,931 |
- |
- |
|||||
|
Other intangible assets, net |
1,178 |
1,211 |
1,297 |
(2.7) |
(9.2) |
|||||
|
Other real estate owned, net |
3,896 |
4,252 |
3,469 |
(8.4) |
12.3 |
|||||
|
Other assets |
22,388 |
23,920 |
26,312 |
(6.4) |
(14.9) |
|||||
|
Total assets |
$ 1,131,175 |
$ 1,135,143 |
$ 1,094,128 |
(0.3) |
3.2 |
|||||
|
LIABILITIES |
||||||||||
|
Noninterest-bearing deposits |
$ 229,646 |
$ 229,686 |
$ 201,518 |
(0.0) |
14.0 |
|||||
|
Interest-bearing deposits |
740,087 |
745,778 |
739,256 |
(0.8) |
0.1 |
|||||
|
Total deposits |
969,733 |
975,464 |
940,774 |
(0.6) |
3.1 |
|||||
|
Short-term borrowings |
5,872 |
6,672 |
5,098 |
(12.0) |
15.2 |
|||||
|
Accrued expenses and other liabilities |
5,461 |
6,040 |
5,510 |
(9.6) |
(0.9) |
|||||
|
Total liabilities |
981,066 |
988,176 |
951,382 |
(0.7) |
3.1 |
|||||
|
STOCKHOLDERS' EQUITY |
||||||||||
|
Common stock, par value $0.01; authorized |
||||||||||
|
35,000,000 shares |
126 |
126 |
126 |
- |
- |
|||||
|
Additional paid in capital |
63,929 |
63,815 |
63,669 |
0.2 |
0.4 |
|||||
|
Retained earnings |
85,178 |
83,097 |
77,903 |
2.5 |
9.3 |
|||||
|
Accumulated other comprehensive (loss) income |
876 |
(71) |
1,048 |
1,333.8 |
(16.4) |
|||||
|
Total stockholders' equity |
150,109 |
146,967 |
142,746 |
2.1 |
5.2 |
|||||
|
Total liabilities and stockholders' equity |
$ 1,131,175 |
$ 1,135,143 |
$ 1,094,128 |
(0.3) |
3.4 |
|||||
|
Period-end common shares outstanding |
12,640 |
12,631 |
12,625 |
0.1 |
0.1 |
|||||
|
Book value per common share |
$ 11.88 |
$ 11.64 |
$ 11.31 |
2.1 |
5.0 |
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Shore Bancshares, Inc. |
Page 6 of 11 | ||||
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Consolidated Statements of Operations |
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(In thousands, except per share data) |
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For the Three Months Ended |
|||||
|
March 31, |
|||||
|
2016 |
2015 |
% Change |
|||
|
INTEREST INCOME |
|||||
|
Interest and fees on loans |
$ 8,961 |
$ 8,491 |
5.5 |
% | |
|
Interest and dividends on investment securities: |
|||||
|
Taxable |
870 |
924 |
(5.8) |
||
|
Tax-exempt |
2 |
3 |
(33.3) |
||
|
Interest on federal funds sold |
3 |
1 |
200.0 |
||
|
Interest on deposits with other banks |
72 |
26 |
176.9 |
||
|
Total interest income |
9,908 |
9,445 |
4.9 |
||
|
INTEREST EXPENSE |
|||||
|
Interest on deposits |
661 |
901 |
(26.6) |
||
|
Interest on short-term borrowings |
4 |
5 |
(20.0) |
||
|
Total interest expense |
665 |
906 |
(26.6) |
||
|
NET INTEREST INCOME |
9,243 |
8,539 |
8.2 |
||
|
Provision for credit losses |
450 |
650 |
(30.8) |
||
|
NET INTEREST INCOME AFTER PROVISION |
|||||
|
FOR CREDIT LOSSES |
8,793 |
7,889 |
11.5 |
||
|
NONINTEREST INCOME |
|||||
|
Service charges on deposit accounts |
813 |
634 |
28.2 |
||
|
Trust and investment fee income |
351 |
469 |
(25.2) |
||
|
Insurance agency commissions |
2,759 |
2,475 |
11.5 |
||
|
Other noninterest income |
618 |
507 |
21.9 |
||
|
Total noninterest income |
4,541 |
4,085 |
11.2 |
||
|
NONINTEREST EXPENSE |
|||||
|
Salaries and wages |
4,477 |
4,313 |
3.8 |
||
|
Employee benefits |
1,114 |
1,156 |
(3.6) |
||
|
Occupancy expense |
613 |
626 |
(2.1) |
||
|
Furniture and equipment expense |
235 |
255 |
(7.8) |
||
|
Data processing |
809 |
783 |
3.3 |
||
|
Directors' fees |
104 |
123 |
(15.4) |
||
|
Amortization of intangible assets |
33 |
33 |
- |
||
|
FDIC insurance premium expense |
282 |
384 |
(26.6) |
||
|
Write-downs of other real estate owned |
7 |
27 |
(74.1) |
||
|
Legal and professional fees |
385 |
725 |
(46.9) |
||
|
Other noninterest expenses |
1,280 |
1,279 |
0.1 |
||
|
Total noninterest expense |
9,339 |
9,704 |
(3.8) |
||
|
Income before income taxes |
3,995 |
2,270 |
76.0 |
||
|
Income tax expense |
1,535 |
861 |
78.3 |
||
|
NET INCOME |
$ 2,460 |
$ 1,409 |
74.6 |
||
|
Weighted average shares outstanding - basic |
12,635 |
12,625 |
0.1 |
||
|
Weighted average shares outstanding - diluted |
12,649 |
12,633 |
0.1 |
||
|
Basic net income per common share |
$ 0.19 |
$ 0.11 |
72.7 |
||
|
Diluted net income per common share |
0.19 |
0.11 |
72.7 |
||
|
Dividends paid per common share |
0.03 |
- |
- |
||
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Shore Bancshares, Inc. |
Page 7 of 11 |
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|
Consolidated Average Balance Sheets |
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|
(Dollars in thousands) |
||||||||
|
For the Three Months Ended |
||||||||
|
March 31, |
||||||||
|
2016 |
2015 |
|||||||
|
Average |
Yield/ |
Average |
Yield/ |
|||||
|
balance |
rate |
balance |
rate |
|||||
|
Earning assets |
||||||||
|
Loans |
$ 790,777 |
4.57 |
% |
$ 714,780 |
4.83 |
% | ||
|
Investment securities |
||||||||
|
Taxable |
214,778 |
1.62 |
243,869 |
1.52 |
||||
|
Tax-exempt |
210 |
5.30 |
431 |
4.19 |
||||
|
Federal funds sold |
3,640 |
0.33 |
2,801 |
0.09 |
||||
|
Interest-bearing deposits |
56,109 |
0.51 |
51,609 |
0.20 |
||||
|
Total earning assets |
1,065,514 |
3.75 |
% |
1,013,490 |
3.79 |
% | ||
|
Cash and due from banks |
16,205 |
21,268 |
||||||
|
Other assets |
57,037 |
60,611 |
||||||
|
Allowance for credit losses |
(8,518) |
(7,968) |
||||||
|
Total assets |
$ 1,130,238 |
$ 1,087,401 |
||||||
|
Interest-bearing liabilities |
||||||||
|
Demand deposits |
$ 193,087 |
0.12 |
% |
$ 177,071 |
0.13 |
% | ||
|
Money market and savings deposits |
258,715 |
0.13 |
237,755 |
0.14 |
||||
|
Certificates of deposit $100,000 or more |
132,412 |
0.71 |
156,154 |
1.00 |
||||
|
Other time deposits |
153,774 |
0.74 |
169,584 |
0.90 |
||||
|
Interest-bearing deposits |
737,988 |
0.36 |
740,564 |
0.49 |
||||
|
Short-term borrowings |
6,242 |
0.24 |
7,340 |
0.27 |
||||
|
Total interest-bearing liabilities |
744,230 |
0.36 |
% |
747,904 |
0.49 |
% | ||
|
Noninterest-bearing deposits |
231,003 |
191,896 |
||||||
|
Accrued expenses and other liabilities |
5,973 |
5,717 |
||||||
|
Stockholders' equity |
149,032 |
141,884 |
||||||
|
Total liabilities and stockholders' equity |
$ 1,130,238 |
$ 1,087,401 |
||||||
|
Net interest spread |
3.39 |
% |
3.30 |
% | ||||
|
Net interest margin |
3.50 |
% |
3.43 |
% | ||||
|
Shore Bancshares, Inc. |
Page 8 of 11 | |||||||||||||
|
Financial Highlights By Quarter |
||||||||||||||
|
(Dollars in thousands, except per share data) |
||||||||||||||
|
1st quarter |
4th quarter |
3rd quarter |
2nd quarter |
1st quarter |
1Q 16 |
1Q 16 |
||||||||
|
2016 |
2015 |
2015 |
2015 |
2015 |
compared to |
compared to |
||||||||
|
(1Q 16) |
(4Q 15) |
(3Q 15) |
(2Q 15) |
(1Q 15) |
4Q 15 |
1Q 15 |
||||||||
|
PROFITABILITY FOR THE PERIOD |
||||||||||||||
|
Taxable-equivalent net interest income |
$ 9,273 |
$ 9,315 |
$ 9,027 |
$ 8,701 |
$ 8,560 |
(0.5) |
% |
8.3 |
% | |||||
|
Less: Taxable-equivalent adjustment |
30 |
22 |
17 |
18 |
21 |
36.4 |
42.9 |
|||||||
|
Net interest income |
9,243 |
9,293 |
9,010 |
8,683 |
8,539 |
(0.5) |
8.2 |
|||||||
|
Provision for credit losses |
450 |
475 |
410 |
540 |
650 |
(5.3) |
(30.8) |
|||||||
|
Noninterest income |
4,541 |
3,638 |
3,905 |
3,788 |
4,085 |
24.8 |
11.2 |
|||||||
|
Noninterest expense |
9,339 |
8,950 |
9,396 |
9,300 |
9,704 |
4.3 |
(3.8) |
|||||||
|
Income before income taxes |
3,995 |
3,506 |
3,109 |
2,631 |
2,270 |
13.9 |
76.0 |
|||||||
|
Income tax expense |
1,535 |
1,343 |
1,200 |
1,004 |
861 |
14.3 |
78.3 |
|||||||
|
Net income |
$ 2,460 |
$ 2,163 |
$ 1,909 |
$ 1,627 |
$ 1,409 |
13.7 |
74.6 |
|||||||
|
Return on average assets |
0.88 |
% |
0.76 |
% |
0.68 |
% |
0.60 |
% |
0.53 |
% |
12 |
bp |
35 |
bp |
|
Return on average equity |
6.64 |
5.93 |
5.23 |
4.56 |
4.03 |
71 |
261 |
|||||||
|
Return on average tangible equity (1) |
7.34 |
6.58 |
5.81 |
5.08 |
4.50 |
76 |
284 |
|||||||
|
Net interest margin |
3.50 |
3.45 |
3.43 |
3.43 |
3.43 |
5 |
7 |
|||||||
|
Efficiency ratio - GAAP |
67.61 |
69.10 |
72.66 |
74.47 |
76.74 |
(149) |
(913) |
|||||||
|
Efficiency ratio - Non-GAAP (1) |
67.37 |
68.84 |
72.39 |
74.20 |
76.48 |
(147) |
(911) |
|||||||
|
PER SHARE DATA |
||||||||||||||
|
Basic net income per common share |
$ 0.19 |
$ 0.17 |
$ 0.15 |
$ 0.13 |
$ 0.11 |
11.8 |
% |
72.7 |
% | |||||
|
Diluted net income per common share |
0.19 |
0.17 |
0.15 |
0.13 |
0.11 |
11.8 |
72.7 |
|||||||
|
Dividends paid per common share |
0.03 |
0.02 |
0.02 |
- |
- |
50.0 |
100.0 |
|||||||
|
Book value per common share at period end |
11.88 |
11.64 |
11.55 |
11.35 |
11.31 |
2.1 |
5.0 |
|||||||
|
Tangible book value per common share at period end (1) |
10.84 |
10.59 |
10.51 |
10.31 |
10.26 |
2.4 |
5.7 |
|||||||
|
Market value at period end |
11.98 |
10.88 |
9.72 |
9.43 |
9.18 |
10.1 |
30.5 |
|||||||
|
Market range: |
||||||||||||||
|
High |
12.08 |
11.00 |
9.72 |
9.55 |
9.30 |
9.8 |
29.9 |
|||||||
|
Low |
11.95 |
10.64 |
9.37 |
9.43 |
9.03 |
12.3 |
32.3 |
|||||||
|
AVERAGE BALANCE SHEET DATA |
||||||||||||||
|
Loans |
$ 790,777 |
$ 785,572 |
$ 763,306 |
$ 727,800 |
$ 714,780 |
0.7 |
% |
10.6 |
% | |||||
|
Investment securities |
214,988 |
213,307 |
230,222 |
241,684 |
244,300 |
0.8 |
(12.0) |
|||||||
|
Earning assets |
1,065,514 |
1,072,728 |
1,044,230 |
1,016,172 |
1,013,490 |
(0.7) |
5.1 |
|||||||
|
Assets |
1,130,238 |
1,137,430 |
1,111,361 |
1,085,857 |
1,087,401 |
(0.6) |
3.9 |
|||||||
|
Deposits |
968,991 |
978,049 |
953,826 |
931,637 |
932,460 |
(0.9) |
3.9 |
|||||||
|
Stockholders' equity |
149,032 |
146,597 |
144,897 |
143,266 |
141,884 |
1.7 |
5.0 |
|||||||
|
CREDIT QUALITY DATA AT PERIOD END |
||||||||||||||
|
Net charge-offs |
$ 457 |
$ 257 |
$ 229 |
$ 421 |
$ 547 |
77.8 |
% |
(16.5) |
% | |||||
|
Nonaccrual loans |
$ 11,925 |
$ 12,093 |
$ 13,143 |
$ 14,009 |
$ 12,913 |
(1.4) |
(7.7) |
|||||||
|
Loans 90 days past due and still accruing |
35 |
7 |
4 |
35 |
36 |
400.0 |
(2.8) |
|||||||
|
Other real estate owned |
3,896 |
4,252 |
2,884 |
2,498 |
3,469 |
(8.4) |
12.3 |
|||||||
|
Total nonperforming assets |
$ 15,856 |
$ 16,352 |
$ 16,031 |
$ 16,542 |
$ 16,418 |
(3.0) |
(3.4) |
|||||||
|
Accruing troubled debt restructurings (TDRs) |
$ 14,753 |
$ 15,495 |
$ 16,431 |
$ 18,353 |
$ 16,644 |
(4.8) |
(11.4) |
|||||||
|
Total nonperforming assets and accruing TDRs |
$ 30,609 |
$ 31,847 |
$ 32,462 |
$ 34,895 |
$ 33,062 |
(3.9) |
(7.4) |
|||||||
|
CAPITAL AND CREDIT QUALITY RATIOS |
||||||||||||||
|
Period-end equity to assets |
13.27 |
% |
12.95 |
% |
13.05 |
% |
13.22 |
% |
13.05 |
% |
32 |
bp |
22 |
bp |
|
Period-end tangible equity to tangible assets (1) |
12.25 |
11.93 |
12.02 |
12.16 |
11.98 |
32 |
27 |
|||||||
|
Annualized net charge-offs to average loans |
0.23 |
0.13 |
0.12 |
0.23 |
0.31 |
10 |
(8) |
|||||||
|
Allowance for credit losses as a percent of: |
||||||||||||||
|
Period-end loans |
1.04 |
1.05 |
1.04 |
1.07 |
1.08 |
(1) |
(4) |
|||||||
|
Nonaccrual loans |
69.68 |
68.77 |
61.61 |
56.51 |
60.39 |
91 |
929 |
|||||||
|
Nonperforming assets |
52.40 |
50.86 |
50.51 |
47.86 |
47.50 |
154 |
490 |
|||||||
|
Accruing TDRs |
56.32 |
53.67 |
49.28 |
43.14 |
46.85 |
265 |
947 |
|||||||
|
Nonperforming assets and accruing TDRs |
27.15 |
26.11 |
24.95 |
22.69 |
23.59 |
104 |
356 |
|||||||
|
As a percent of total loans: |
||||||||||||||
|
Nonaccrual loans |
1.49 |
1.52 |
1.69 |
1.89 |
1.79 |
(3) |
(30) |
|||||||
|
Accruing TDRs |
1.85 |
1.95 |
2.11 |
2.48 |
2.31 |
(10) |
(46) |
|||||||
|
Nonaccrual loans and accruing TDRs |
3.34 |
3.47 |
3.80 |
4.37 |
4.10 |
(13) |
(76) |
|||||||
|
As a percent of total loans+other real estate owned: |
||||||||||||||
|
Nonperforming assets |
1.98 |
2.05 |
2.06 |
2.22 |
2.26 |
(7) |
(28) |
|||||||
|
Nonperforming assets and accruing TDRs |
3.81 |
3.98 |
4.16 |
4.69 |
4.56 |
(17) |
(75) |
|||||||
|
As a percent of total assets: |
||||||||||||||
|
Nonaccrual loans |
1.05 |
1.07 |
1.18 |
1.29 |
1.18 |
(2) |
(13) |
|||||||
|
Nonperforming assets |
1.40 |
1.44 |
1.43 |
1.53 |
1.50 |
(4) |
(10) |
|||||||
|
Accruing TDRs |
1.30 |
1.37 |
1.47 |
1.69 |
1.52 |
(7) |
(22) |
|||||||
|
Nonperforming assets and accruing TDRs |
2.70 |
2.81 |
2.90 |
3.22 |
3.02 |
(11) |
(32) |
|||||||
|
(1) See the reconciliation table on page 11 of 11. |
||||||||||||||
|
Shore Bancshares, Inc. |
Page 9 of 11 | |||||||||||||
|
Consolidated Statements of Operations By Quarter |
||||||||||||||
|
(In thousands, except per share data) |
||||||||||||||
|
1Q 16 |
1Q 16 |
|||||||||||||
|
compared to |
compared to |
|||||||||||||
|
1Q 16 |
4Q 15 |
3Q 15 |
2Q 15 |
1Q 15 |
4Q 15 |
1Q 15 |
||||||||
|
INTEREST INCOME |
||||||||||||||
|
Interest and fees on loans |
$ 8,961 |
$ 9,142 |
$ 8,912 |
$ 8,581 |
$ 8,491 |
(2.0) |
% |
5.5 |
% | |||||
|
Interest and dividends on investment securities: |
||||||||||||||
|
Taxable |
870 |
854 |
892 |
932 |
924 |
1.9 |
(5.8) |
|||||||
|
Tax-exempt |
2 |
2 |
2 |
3 |
3 |
- |
(33.3) |
|||||||
|
Interest on federal funds sold |
3 |
1 |
1 |
- |
1 |
200.0 |
200.0 |
|||||||
|
Interest on deposits with other banks |
72 |
48 |
30 |
26 |
26 |
50.0 |
176.9 |
|||||||
|
Total interest income |
9,908 |
10,047 |
9,837 |
9,542 |
9,445 |
(1.4) |
4.9 |
|||||||
|
INTEREST EXPENSE |
||||||||||||||
|
Interest on deposits |
661 |
750 |
824 |
856 |
901 |
(11.9) |
(26.6) |
|||||||
|
Interest on short-term borrowings |
4 |
4 |
3 |
3 |
5 |
- |
(20.0) |
|||||||
|
Total interest expense |
665 |
754 |
827 |
859 |
906 |
(11.8) |
(26.6) |
|||||||
|
NET INTEREST INCOME |
9,243 |
9,293 |
9,010 |
8,683 |
8,539 |
(0.5) |
8.2 |
|||||||
|
Provision for credit losses |
450 |
475 |
410 |
540 |
650 |
(5.3) |
(30.8) |
|||||||
|
NET INTEREST INCOME AFTER PROVISION |
||||||||||||||
|
FOR CREDIT LOSSES |
8,793 |
8,818 |
8,600 |
8,143 |
7,889 |
(0.3) |
11.5 |
|||||||
|
NONINTEREST INCOME |
||||||||||||||
|
Service charges on deposit accounts |
813 |
806 |
769 |
658 |
634 |
0.9 |
28.2 |
|||||||
|
Trust and investment fee income |
351 |
348 |
360 |
450 |
469 |
0.9 |
(25.2) |
|||||||
|
Insurance agency commissions |
2,759 |
1,760 |
2,107 |
1,932 |
2,475 |
56.8 |
11.5 |
|||||||
|
Other noninterest income |
618 |
724 |
669 |
748 |
507 |
(14.6) |
21.9 |
|||||||
|
Total noninterest income |
4,541 |
3,638 |
3,905 |
3,788 |
4,085 |
24.8 |
11.2 |
|||||||
|
NONINTEREST EXPENSE |
||||||||||||||
|
Salaries and wages |
4,477 |
4,366 |
4,468 |
4,393 |
4,313 |
2.5 |
3.8 |
|||||||
|
Employee benefits |
1,114 |
890 |
935 |
924 |
1,156 |
25.2 |
(3.6) |
|||||||
|
Occupancy expense |
613 |
583 |
600 |
611 |
626 |
5.1 |
(2.1) |
|||||||
|
Furniture and equipment expense |
235 |
215 |
223 |
233 |
255 |
9.3 |
(7.8) |
|||||||
|
Data processing |
809 |
809 |
800 |
868 |
783 |
- |
3.3 |
|||||||
|
Directors' fees |
104 |
114 |
117 |
116 |
123 |
(8.8) |
(15.4) |
|||||||
|
Amortization of intangible assets |
33 |
33 |
34 |
33 |
33 |
- |
- |
|||||||
|
FDIC insurance premium expense |
282 |
281 |
243 |
306 |
384 |
0.4 |
(26.6) |
|||||||
|
Write-downs of other real estate owned |
7 |
39 |
7 |
54 |
27 |
(82.1) |
(74.1) |
|||||||
|
Legal and professional fees |
385 |
440 |
642 |
573 |
725 |
(12.5) |
(46.9) |
|||||||
|
Other noninterest expenses |
1,280 |
1,180 |
1,327 |
1,189 |
1,279 |
8.5 |
0.1 |
|||||||
|
Total noninterest expense |
9,339 |
8,950 |
9,396 |
9,300 |
9,704 |
4.3 |
(3.8) |
|||||||
|
Income before income taxes |
3,995 |
3,506 |
3,109 |
2,631 |
2,270 |
13.9 |
76.0 |
|||||||
|
Income tax expense |
1,535 |
1,343 |
1,200 |
1,004 |
861 |
14.3 |
78.3 |
|||||||
|
NET INCOME |
$ 2,460 |
$ 2,163 |
$ 1,909 |
$ 1,627 |
$ 1,409 |
13.7 |
74.6 |
|||||||
|
Weighted average shares outstanding - basic |
12,635 |
12,631 |
12,630 |
12,629 |
12,625 |
0.0 |
0.1 |
|||||||
|
Weighted average shares outstanding - diluted |
12,649 |
12,645 |
12,640 |
12,638 |
12,633 |
0.0 |
0.1 |
|||||||
|
Basic net income per common share |
$ 0.19 |
$ 0.17 |
$ 0.15 |
$ 0.13 |
$ 0.11 |
11.8 |
72.7 |
|||||||
|
Diluted net income per common share |
0.19 |
0.17 |
0.15 |
0.13 |
0.11 |
11.8 |
72.7 |
|||||||
|
Dividends paid per common share |
0.03 |
0.02 |
0.02 |
- |
- |
50.0 |
- |
|||||||
|
Shore Bancshares, Inc. |
Page 10 of 11 | |||||||||||||||||||||||
|
Consolidated Average Balance Sheets By Quarter |
||||||||||||||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||||||||
|
Average balance |
||||||||||||||||||||||||
|
1Q 16 |
1Q 16 |
|||||||||||||||||||||||
|
compared to |
compared to |
|||||||||||||||||||||||
|
1Q 16 |
4Q 15 |
3Q 15 |
2Q 15 |
1Q 15 |
4Q 15 |
1Q 15 |
||||||||||||||||||
|
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
|||||||||||||||
|
balance |
rate |
balance |
rate |
balance |
rate |
balance |
rate |
balance |
rate |
|||||||||||||||
|
Earning assets |
||||||||||||||||||||||||
|
Loans |
$ 790,777 |
4.57 |
% |
$ 785,572 |
4.63 |
% |
$ 763,306 |
4.64 |
% |
$ 727,800 |
4.74 |
% |
$ 714,780 |
4.83 |
% |
0.7 |
% |
10.6 |
% | |||||
|
Investment securities |
||||||||||||||||||||||||
|
Taxable |
214,778 |
1.62 |
213,097 |
1.60 |
229,979 |
1.55 |
241,254 |
1.55 |
243,869 |
1.52 |
0.8 |
(11.9) |
||||||||||||
|
Tax-exempt |
210 |
5.30 |
210 |
5.30 |
243 |
5.01 |
430 |
4.21 |
431 |
4.19 |
- |
(51.3) |
||||||||||||
|
Federal funds sold |
3,640 |
0.33 |
3,886 |
0.12 |
2,341 |
0.10 |
2,931 |
0.09 |
2,801 |
0.09 |
(6.3) |
30.0 |
||||||||||||
|
Interest-bearing deposits |
56,109 |
0.51 |
69,963 |
0.27 |
48,361 |
0.25 |
43,757 |
0.24 |
51,609 |
0.20 |
(19.8) |
8.7 |
||||||||||||
|
Total earning assets |
1,065,514 |
3.75 |
% |
1,072,728 |
3.72 |
% |
1,044,230 |
3.74 |
% |
1,016,172 |
3.77 |
% |
1,013,490 |
3.79 |
% |
(0.7) |
5.1 |
|||||||
|
Cash and due from banks |
16,205 |
16,628 |
17,434 |
18,723 |
21,268 |
(2.5) |
(23.8) |
|||||||||||||||||
|
Other assets |
57,037 |
56,512 |
57,891 |
59,045 |
60,611 |
0.9 |
(5.9) |
|||||||||||||||||
|
Allowance for credit losses |
(8,518) |
(8,438) |
(8,194) |
(8,083) |
(7,968) |
0.9 |
6.9 |
|||||||||||||||||
|
Total assets |
$ 1,130,238 |
$ 1,137,430 |
$ 1,111,361 |
$ 1,085,857 |
$ 1,087,401 |
(0.6) |
3.9 |
|||||||||||||||||
|
Interest-bearing liabilities |
||||||||||||||||||||||||
|
Demand deposits |
$ 193,087 |
0.12 |
% |
$ 190,237 |
0.13 |
% |
$ 184,471 |
0.13 |
% |
$ 171,274 |
0.12 |
% |
$ 177,071 |
0.13 |
% |
1.5 |
9.0 |
|||||||
|
Money market and savings deposits |
258,715 |
0.13 |
255,974 |
0.14 |
242,830 |
0.14 |
238,173 |
0.14 |
237,755 |
0.14 |
1.1 |
8.8 |
||||||||||||
|
Certificates of deposit $100,000 or more |
132,412 |
0.71 |
139,663 |
0.80 |
148,617 |
0.92 |
152,478 |
0.97 |
156,154 |
1.00 |
(5.2) |
(15.2) |
||||||||||||
|
Other time deposits |
153,774 |
0.74 |
158,011 |
0.80 |
163,224 |
0.82 |
166,277 |
0.85 |
169,584 |
0.90 |
(2.7) |
(9.3) |
||||||||||||
|
Interest-bearing deposits |
737,988 |
0.36 |
743,885 |
0.40 |
739,142 |
0.44 |
728,202 |
0.47 |
740,564 |
0.49 |
(0.8) |
(0.3) |
||||||||||||
|
Short-term borrowings |
6,242 |
0.24 |
6,199 |
0.23 |
6,501 |
0.24 |
4,872 |
0.23 |
7,340 |
0.27 |
0.7 |
(15.0) |
||||||||||||
|
Total interest-bearing liabilities |
744,230 |
0.36 |
% |
750,084 |
0.40 |
% |
745,643 |
0.44 |
% |
733,074 |
0.47 |
% |
747,904 |
0.49 |
% |
(0.8) |
(0.5) |
|||||||
|
Noninterest-bearing deposits |
231,003 |
234,164 |
214,684 |
203,435 |
191,896 |
(1.3) |
20.4 |
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|
Accrued expenses and other liabilities |
5,973 |
6,585 |
6,137 |
6,082 |
5,717 |
(9.3) |
4.5 |
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|
Stockholders' equity |
149,032 |
146,597 |
144,897 |
143,266 |
141,884 |
1.7 |
5.0 |
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|
Total liabilities and stockholders' equity |
$ 1,130,238 |
$ 1,137,430 |
$ 1,111,361 |
$ 1,085,857 |
$ 1,087,401 |
(0.6) |
3.9 |
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|
Net interest spread |
3.39 |
% |
3.32 |
% |
3.30 |
% |
3.30 |
% |
3.30 |
% |
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|
Net interest margin |
3.50 |
% |
3.45 |
% |
3.43 |
% |
3.43 |
% |
3.43 |
% |
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|
Shore Bancshares, Inc. |
Page 11 of 11 | |||||||||
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Reconciliation of Generally Accepted Accounting Principles (GAAP) |
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|
and Non-GAAP Measures |
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|
(In thousands, except per share data) |
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|
1Q 16 |
4Q 15 |
3Q 15 |
2Q 15 |
1Q 15 |
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|
The following reconciles return on average equity and return on |
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|
average tangible equity (Note 1): |
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|
Net income |
$ 2,460 |
$ 2,163 |
$ 1,909 |
$ 1,627 |
$ 1,409 |
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|
Net income - annualized (A) |
$ 9,894 |
$ 8,581 |
$ 7,574 |
$ 6,526 |
$ 5,714 |
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|
Net income, excluding net amortization of intangible assets |
$ 2,480 |
$ 2,183 |
$ 1,930 |
$ 1,647 |
$ 1,429 |
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|
Net income, excluding net amortization of intangible |
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|
assets - annualized (B) |
$ 9,975 |
$ 8,661 |
$ 7,657 |
$ 6,606 |
$ 5,795 |
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|
Average stockholders' equity (C) |
$ 149,032 |
$ 146,597 |
$ 144,897 |
$ 143,266 |
$ 141,884 |
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|
Less: Average goodwill and other intangible assets |
(13,129) |
(13,155) |
(13,182) |
(13,215) |
(13,248) |
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|
Average tangible equity (D) |
$ 135,903 |
$ 133,442 |
$ 131,715 |
$ 130,051 |
$ 128,636 |
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|
Return on average equity (GAAP) (A)/(C) |
6.64 |
% |
5.85 |
% |
5.23 |
% |
4.56 |
% |
4.03 |
% |
|
Return on average tangible equity (Non-GAAP) (B)/(D) |
7.34 |
% |
6.49 |
% |
5.81 |
% |
5.08 |
% |
4.50 |
% |
|
The following reconciles GAAP efficiency ratio and non-GAAP |
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|
efficiency ratio (Note 2): |
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|
Noninterest expense (E) |
$ 9,339 |
$ 8,950 |
$ 9,396 |
$ 9,300 |
$ 9,704 |
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|
Less: Amortization of intangible assets |
(33) |
(33) |
(34) |
(33) |
(33) |
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|
Adjusted noninterest expense (F) |
$ 9,306 |
$ 8,917 |
$ 9,362 |
$ 9,267 |
$ 9,671 |
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|
Taxable-equivalent net interest income (G) |
$ 9,273 |
$ 9,315 |
$ 9,027 |
$ 8,701 |
$ 8,560 |
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|
Taxable-equivalent net interest income excluding nonrecurring adjustment (H) |
$ 9,273 |
$ 9,315 |
$ 9,027 |
$ 8,701 |
$ 8,560 |
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|
Noninterest income (I) |
$ 4,541 |
$ 3,638 |
$ 3,905 |
$ 3,788 |
$ 4,085 |
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|
Adjusted noninterest income (J) |
$ 4,541 |
$ 3,638 |
$ 3,905 |
$ 3,788 |
$ 4,085 |
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|
Efficiency ratio (GAAP) (E)/(G)+(I) |
67.61 |
% |
69.10 |
% |
72.66 |
% |
74.47 |
% |
76.74 |
% |
|
Efficiency ratio (Non-GAAP) (F)/(H)+(J) |
67.37 |
% |
68.84 |
% |
72.39 |
% |
74.20 |
% |
76.48 |
% |
|
The following reconciles book value per common share and tangible |
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|
book value per common share (Note 1): |
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|
Stockholders' equity (K) |
$ 150,109 |
$ 146,967 |
$ 145,887 |
$ 143,402 |
$ 142,746 |
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|
Less: Goodwill and other intangible assets |
(13,109) |
(13,142) |
(13,162) |
(13,195) |
(13,228) |
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|
Tangible equity (L) |
$ 137,000 |
$ 133,825 |
$ 132,725 |
$ 130,207 |
$ 129,518 |
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|
Shares outstanding (M) |
12,640 |
12,631 |
12,630 |
12,630 |
12,625 |
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|
Book value per common share (GAAP) (K)/(M) |
$ 11.88 |
$ 11.64 |
$ 11.55 |
$ 11.35 |
$ 11.31 |
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|
Tangible book value per common share (Non-GAAP) (L)/(M) |
$ 10.84 |
$ 10.59 |
$ 10.51 |
$ 10.31 |
$ 10.26 |
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|
The following reconciles equity to assets and |
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|
tangible equity to tangible assets (Note 1): |
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|
Stockholders' equity (N) |
$ 150,109 |
$ 146,967 |
$ 145,887 |
$ 143,402 |
$ 142,746 |
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|
Less: Goodwill and other intangible assets |
(13,109) |
(13,142) |
(13,162) |
(13,195) |
(13,228) |
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|
Tangible equity (O) |
$ 137,000 |
$ 133,825 |
$ 132,725 |
$ 130,207 |
$ 129,518 |
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|
Assets (P) |
$ 1,131,175 |
$ 1,135,143 |
$ 1,117,813 |
$ 1,084,352 |
$ 1,094,128 |
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|
Less: Goodwill and other intangible assets |
(13,109) |
(13,142) |
(13,162) |
(13,195) |
(13,228) |
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|
Tangible assets (Q) |
$ 1,118,066 |
$ 1,122,001 |
$ 1,104,651 |
$ 1,071,157 |
$ 1,080,900 |
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|
Period-end equity/assets (GAAP) (N)/(P) |
13.27 |
% |
12.95 |
% |
13.05 |
% |
13.22 |
% |
13.05 |
% |
|
Period-end tangible equity/tangible assets (Non-GAAP) (O)/(Q) |
12.25 |
% |
11.93 |
% |
12.02 |
% |
12.16 |
% |
11.98 |
% |
|
Note 1: Management believes that reporting tangible equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes. |
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Note 2: Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities. |
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SOURCE Shore Bancshares, Inc.
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