Shore Bancshares Reports 2009 Earnings Results

Jan 27, 2010, 17:37 ET from Shore Bancshares, Inc.

EASTON, Md., Jan. 27 /PRNewswire-FirstCall/ -- Shore Bancshares, Inc. (Nasdaq: SHBI) reported net income available to common stockholders of $1.216 million or $0.14 per diluted common share for the fourth quarter of 2009, compared to $1.951 million or $0.23 per diluted common share for the third quarter of 2009 and $2.261 million or $0.27 per diluted common share for the fourth quarter of 2008.  Net income available to common stockholders for 2009 was $5.4 million or $0.64 per diluted common share, compared to $11.5 million or $1.37 per diluted common share for 2008.  

During 2009, net income available to common stockholders was negatively impacted by dividends and discount accretion associated with the sale and subsequent repurchase of preferred stock under the U.S. Department of the Treasury’s Troubled Asset Relief Program Capital Purchase Program.  The impact on 2009 from the preferred stock activity was $1.9 million or $0.22 per share.    

“We are pleased to report a profitable final quarter and full year, considering the ongoing difficult operating environment both nationally and here in the Mid-Atlantic region. We are fortunate that the economic climate across the Delmarva peninsula markets within our footprint has remained reasonably stable and continues to outperform the nation as a whole, in terms of unemployment, per capita income levels and real estate property valuations. However, we enter 2010 with a very conservative outlook and will remain focused on the resolution of problem assets, growing our core deposit base, and maintaining an above-average net interest margin,” said W. Moorhead Vermilye, President and Chief Executive Officer.

The Company’s return on average assets for the fourth quarter of 2009 was 0.41%, compared to 0.66% and 0.87% for the quarters ended September 30, 2009 and December 31, 2008, respectively.  The return on average stockholders’ equity was 3.75% for the fourth quarter of 2009, compared to 6.03% for the third quarter of 2009 and 7.11% for the fourth quarter of 2008.

The Company’s return on average assets was 0.48% for 2009, compared to 1.13% for 2008.  The return on average stockholders’ equity was 4.00% for 2009 and 9.22% for 2008.

Total assets were $1.157 billion at December 31, 2009, compared to $1.045 billion at the end of 2008, an increase of 10.7%.  Total loans were $916.6 million and total deposits were $990.9 million, an increase of 3.2% and 17.2%, respectively, when compared to December 31, 2008.  The increase in deposits was primarily from the Company’s participation in the Promontory Insured Network Deposits Program (“IND”) beginning in the second quarter of 2009.  Total stockholders’ equity increased slightly from the end of 2008.    

Review of Quarterly Financial Results

Net interest income for the fourth quarter of 2009 was $10.8 million, a 3.6% increase from the third quarter of 2009 and a 4.4% increase from the same quarter of last year.  Higher average balances of earning assets and lower rates paid on interest bearing liabilities were sufficient to offset the decline in yields on earning assets.    The Company’s net interest margin was 3.90% for the fourth quarter of 2009, an increase of 11 basis points when compared to the third quarter of 2009 and a decrease of 34 basis points when compared to the fourth quarter of 2008.

The provision for credit losses was $3.7 million for the three months ended December 31, 2009. The comparable amounts were $1.7 million and $1.4 million for the three months ended September 30, 2009 and December 31, 2008, respectively.  The continued large level of  provision expense was primarily in response to the overall increase in nonperforming assets and loan charge-offs, as well as to overall economic conditions.  Net charge-offs were $3.5 million for the fourth quarter of 2009, $1.8 million for the third quarter of 2009 and $683 thousand for the fourth quarter of 2008.  Quarter-to-date annualized net charge-offs to average loans was 1.51% for the fourth quarter of 2009, 0.76% for the third quarter of 2009 and 0.31% for the fourth quarter of 2008. Nonperforming assets to total assets was 1.63% at December 31, 2009.  The comparable nonperforming asset ratio was 1.51% at September 30, 2009 and 0.79% at December 31, 2008.  The allowance for credit losses to period-end loans increased to 1.19% at  December 31, 2009, compared to 1.17% at September 30, 2009 and 1.05% at December 31, 2008.  Management believes that the provision for credit losses and the resulting allowance were adequate at December 31, 2009.  

Noninterest income for the fourth quarter of 2009 decreased 12.6% when compared to the third quarter of 2009 and decreased 6.4% when compared to the fourth quarter of 2008.  The decrease in insurance agency commissions of $585 thousand from the third quarter of 2009 and $336 thousand from the fourth quarter of 2008 accounted for most of the decline.  

Noninterest expense for the fourth quarter of 2009 decreased 9.0% when compared to the third quarter of 2009 and decreased 2.6% when compared to the fourth quarter of 2008.  The decrease from the third quarter of 2009 was primarily due to lower salaries and employee benefits caused by less expense accrued for bonus and profit sharing plans.  The decrease from the fourth quarter of 2008 was also primarily due to lower salaries and employee benefits, partially offset by higher FDIC insurance premiums.  

Review of 2009 Financial Results

Net interest income for 2009 was $41.4 million, an increase of 3.7% when compared to 2008.  Similar to the quarterly results reported above, higher average balances on earning assets and lower rates paid on interest bearing liabilities were sufficient to offset the decline in yields on earning assets.  The net interest margin declined 33 basis points from 4.23% for 2008 to 3.90% for 2009.

The provisions for credit losses for 2009 and 2008 were $9.0 million and $3.3 million, respectively.  Net charge-offs were $7.4 million and $1.6 million for 2009 and 2008, respectively. Year-to-date annualized net charge-offs to average loans was 0.81% for 2009 and 0.19% for 2008.  

Noninterest income for 2009 decreased 4.0% when compared to 2008.  A decline in insurance agency commissions of $959 thousand for the year accounted for most of the decrease when compared to 2008.  Other noninterest income included a mark to market gain on interest rate swaps of $420 thousand during the second quarter of 2009.  In addition, noninterest income for 2008 included a $1.3 million gain on the sale of a bank branch in August 2008.  The gain on the branch sale was partially offset by a $371 thousand other than temporary impairment of Freddie Mac Preferred Stock and a $337 thousand loss on the sale of the Company’s investment in Delmarva Bank Data Processing Center, Inc., an unconsolidated subsidiary.  

Noninterest expense for 2009 increased 4.9% when compared to 2008.  A significant portion of the increase was due to increased FDIC insurance premium expense of $1.7 million when compared to 2008.  The increase in FDIC insurance premiums was attributable to higher overall rates, a one-time special assessment which totaled $513 thousand and growth in the Company’s total deposits.

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 three banks, The Talbot Bank of Easton, Maryland, CNB, and The Felton Bank; three insurance producer firms, The Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin and Associates, Inc; a wholesale insurance company, TSGIA, Inc; two insurance premium finance companies, Mubell Finance, LLC and ESFS, Inc; a registered investment adviser firm, Wye Financial Services, LLC; and a mortgage broker subsidiary, Wye Mortgage Group, LLC.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements do not represent historical facts, but statements about management’s beliefs, plans and objectives.  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”.

Shore Bancshares, Inc.

Financial Highlights

(Dollars in thousands, except per share data)

For the Three Months Ended

For the Twelve Months Ended

Dec. 31,

Dec. 31,

2009

2008

% Change

2009

2008

% Change

PROFITABILITY FOR THE PERIOD

    Net interest income

$             10,806   

$             10,348   

4.4   

%

$                           41,378

$             39,919

3.7 

%

    Provision for credit losses

3,668   

1,385   

164.8   

8,986

3,337

169.3 

    Noninterest income

4,125   

4,408   

(6.4)  

19,541

20,350

(4.0)

    Noninterest expense

9,375   

9,621   

(2.6)  

40,248

38,370

4.9 

    Income before income taxes

1,888   

3,750   

(49.7)  

11,685

18,562

(37.0)

    Income tax expense

672   

1,489   

(54.9)  

4,412

7,092

(37.8)

    Net income

1,216   

2,261   

(46.2)  

7,273

11,470

(36.6)

    Preferred stock dividends and discount accretion

-   

-   

-   

1,876

-

    Net income available to common shareholders

$               1,216   

$               2,261   

(46.2)  

$               5,397

$             11,470

(52.9)

    Return on average assets (1)

0.41   

%

0.87   

%

(52.9)  

%

0.48

%

1.13

%

(57.5)

%

    Return on average equity (1)

3.75   

7.11   

(47.3)  

4.00

9.22

(56.6)

    Net interest margin

3.90   

4.24   

(8.0)  

3.90

4.23

(7.8)

    Efficiency ratio - GAAP based

62.79   

65.20   

(3.7)  

66.07

63.66

3.8 

PER SHARE DATA

    Basic net income per share

$                 0.14   

$                 0.27   

(48.1)  

%

$                               0.86

$                 1.37

(37.2)

%

    Basic net income per common share

0.14   

0.27   

(48.1)  

0.64

1.37

(53.3)

    Diluted net income per share

0.14   

0.27   

(48.1)  

0.86

1.37

(37.2)

    Diluted net income per common share

0.14   

0.27   

(48.1)  

0.64

1.37

(53.3)

    Dividends paid per common share

0.16   

0.16   

-   

0.64

0.64

    Book value per common share at period end

15.18   

15.16   

0.1   

    Tangible book value per common share at period end

12.64   

12.55   

0.7   

    Market value at period end

14.50   

23.99   

(39.6)  

    Market range:

      High

17.71   

25.97   

(31.8)  

24.43

27.25

(10.3)

      Low

13.52   

17.50   

(22.7)  

11.00

17.50

(37.1)

AT PERIOD END

    Loans

$           916,557   

$           888,528   

3.2   

%

    Securities

109,684   

89,456   

22.6   

    Assets

1,156,516   

1,044,641   

10.7   

    Deposits

990,937   

845,371   

17.2   

    Stockholders' equity

127,810   

127,385   

0.3   

CAPITAL AND CREDIT QUALITY RATIOS

    Average equity to average assets

11.01   

%

12.22   

%

11.96

%

12.30

%

    Annualized net charge-offs to average loans

1.51   

0.31   

0.81

0.19

    Allowance for credit losses to period-end loans

1.19   

1.05   

    Nonperforming assets to total loans+other real estate              

      owned

2.05   

0.93   

    Nonperforming assets to total assets

1.63   

0.79   

    Nonperforming assets+Loans 90 days past due

       and still accruing to total loans+other real estate owned

2.86   

1.09   

    Nonperforming assets+Loans 90 days past due

       and still accruing to total assets

2.27   

0.92   

(1) Calculation uses net income available to common shareholders.

Shore Bancshares, Inc.

Consolidated Balance Sheets

(In thousands, except per share data)

Dec. 31,

2009

Dec. 31,

2008

Dec. 31, 2009

compared to

Dec. 31, 2008

ASSETS

   Cash and due from banks

$          14,411 

$              16,803 

     (14.2)%

   Interest-bearing deposits with other banks

598 

481 

24.3   

   Federal funds sold

60,637 

10,010 

505.8   

   Investments available-for-sale (at fair value)

100,744 

79,204 

27.2   

   Investments held-to-maturity

8,940 

10,252 

(12.8)  

   Loans

916,557 

888,528 

3.2   

   Less: allowance for credit losses

(10,876)

(9,320)

16.7   

   Loans, net

905,681 

879,208 

3.0   

   Premises and equipment, net

14,307 

13,855 

3.3   

   Accrued interest receivable

4,804 

4,606 

4.3   

   Goodwill

15,954 

15,954 

-   

   Other intangible assets, net

5,406 

5,921 

(8.7)  

   Other real estate and other assets owned, net

2,572 

148 

1,637.8   

   Other assets

22,462 

8,199 

174.0   

     Total assets

$      1,156,516 

$         1,044,641 

10.7   

LIABILITIES

   Noninterest-bearing deposits

$       122,492 

$            102,584 

19.4   

   Interest-bearing deposits

868,445 

742,787 

16.9   

     Total deposits

990,937 

845,371 

17.2   

   Short-term borrowings

20,404 

52,969 

(61.5)  

   Long-term debt

1,429 

7,947 

(82.0)  

   Accrued interest payable and other liabilities

15,936 

10,969 

45.3   

      Total liabilities

1,028,706 

917,256 

12.2   

STOCKHOLDERS' EQUITY

   Common stock, par value $0.01; authorized  

      35,000,000 shares

84 

84 

-   

   Warrants

1,543 

-   

   Additional paid in capital

29,872 

29,768 

0.3   

   Retained earnings

96,151 

96,140 

-   

   Accumulated other comprehensive income

160 

1,393 

(88.5)  

       Total stockholders' equity

127,810 

127,385 

0.3   

       Total liabilities and stockholders' equity

$     1,156,516 

$         1,044,641 

10.7   

Period-end common shares outstanding

8,419 

8,405 

0.2   

Book value per common share

$          15.18 

$                15.16 

0.1   

Shore Bancshares, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

                 For the Three Months Ended

For the Twelve Months Ended

Dec. 31,

Dec. 31,

2009

2008

% Change

2009

2008

% Change

INTEREST INCOME

   Interest and fees on loans

$         13,837

$         14,166

(2.3)

%

$          55,209

$         56,866

(2.9)

%

   Interest and dividends on investment securities:

       Taxable

                860

                839

2.5 

              3,184

             3,788

(15.9)

       Tax-exempt

                  60

                  93

(35.5)

                 301

                420

(28.3)

   Interest on federal funds sold

                  23

                  24

(4.2)

                   84

                308

(72.7)

   Interest on deposits with other banks

                     -

                    4

(100.0)

                   11

                  92

(88.0)

                  Total interest income

           14,780

           15,126

(2.3)

            58,789

           61,474

(4.4)

INTEREST EXPENSE

   Interest on deposits

             3,924

             4,582

(14.4)

            17,018

           19,877

(14.4)

   Interest on short-term borrowings

                  31

                121

(74.4)

                 127

             1,147

(88.9)

   Interest on long-term debt

                  19

                  75

(74.7)

                 266

                531

(49.9)

                  Total interest expense

             3,974

             4,778

(16.8)

            17,411

           21,555

(19.2)

NET INTEREST INCOME

           10,806

           10,348

4.4 

            41,378

           39,919

3.7 

Provision for credit losses

             3,668

             1,385

164.8 

              8,986

             3,337

169.3 

NET INTEREST INCOME AFTER PROVISION

 FOR CREDIT LOSSES

             7,138

             8,963

(20.4)

            32,392

           36,582

(11.5)

NONINTEREST INCOME

   Service charges on deposit accounts

                866

                889

(2.6)

              3,424

             3,600

(4.9)

   Investment securities gains (losses)

                     -

                 (15)

100.0 

                   49

                 (15)

426.7 

   Other than temporary impairment of securities

                     -

                     -

                     -

               (371)

100.0 

   Insurance agency commissions

             2,159

             2,495

(13.5)

            11,131

           12,090

(7.9)

   Other noninterest income

             1,100

             1,039

5.9 

              4,937

             5,046

(2.2)

                     Total noninterest income

             4,125

             4,408

(6.4)

            19,541

           20,350

(4.0)

NONINTEREST EXPENSE

   Salaries and employee benefits

             5,264

             5,776

(8.9)

            23,119

           23,321

(0.9)

   Occupancy expense

                572

                585

(2.2)

              2,324

             2,179

6.7 

   Furniture and equipment expense

                268

                291

(7.9)

              1,183

             1,185

(0.2)

   Data processing

                598

                595

0.5 

              2,463

             2,323

6.0 

   Directors' fees

                  84

                132

(36.4)

                 478

                558

(14.3)

   Amortization of intangible assets

                129

                129

                 515

                515

   Other noninterest expenses

             2,460

             2,113

16.4 

            10,166

             8,289

22.6 

                     Total noninterest expense

             9,375

             9,621

(2.6)

            40,248

           38,370

4.9 

Income before income taxes

             1,888

             3,750

(49.7)

            11,685

           18,562

(37.0)

Income tax expense

                672

             1,489

(54.9)

              4,412

             7,092

(37.8)

NET INCOME

             1,216

             2,261

(46.2)

              7,273

           11,470

(36.6)

Preferred stock dividends and discount accretion

                     -

                     -

              1,876

                     -

Net income available to common shareholders

$           1,216

$           2,261

(46.2)

$            5,397

$         11,470

(52.9)

Weighted average shares outstanding - basic

             8,419

8,405

0.2 

              8,414

             8,400

0.2 

Weighted average shares outstanding - diluted

             8,421

8,410

0.1 

              8,417

             8,407

0.1 

Basic net income per share

$             0.14

$             0.27

(48.1)

$              0.86

$             1.37

(37.2)

Basic net income per common share

               0.14

               0.27

(48.1)

                0.64

               1.37

(53.3)

Diluted net income per share

               0.14

               0.27

(48.1)

                0.86

               1.37

(37.2)

Diluted net income per common share

               0.14

               0.27

(48.1)

                0.64

               1.37

(53.3)

Dividends paid per common share

               0.16

               0.16

                0.64

               0.64

Shore Bancshares, Inc.

Financial Highlights By Quarter

(Dollars in thousands, except per share data)

4th quarter

3rd quarter

2nd quarter

1st quarter

4th quarter

4Q 09

4Q 09

2009

2009

2009

2009

2008

compared to

compared to

(4Q 09)

(3Q 09)

(2Q 09)

(1Q 09)

(4Q 08)

3Q 09

4Q 08

PROFITABILITY FOR THE PERIOD

    Net interest income

$                 10,806

$             10,428

$             10,086

$             10,058

$             10,348

3.6 

%

                     4.4

%

    Provision for credit losses

                     3,668

                 1,702

                 1,681

                 1,935

                 1,385

115.5 

                 164.8

    Noninterest income

                     4,125

                 4,719

                 5,347

                 5,350

                 4,408

(12.6)

                   (6.4)

    Noninterest expense

                     9,375

               10,297

               10,693

                 9,883

                 9,621

(9.0)

                   (2.6)

    Income before income taxes

                     1,888

                 3,148

                 3,059

                 3,590

                 3,750

(40.0)

                 (49.7)

    Income tax expense

                        672

                 1,197

                 1,166

                 1,377

                 1,489

(43.9)

                 (54.9)

    Net income

                     1,216

                 1,951

                 1,893

                 2,213

                 2,261

(37.7)

                 (46.2)

    Preferred stock dividends and discount accretion

                             -

                        -

                 1,539

                    337

                        -

       -  

    Net income available to common shareholders

$                   1,216

$               1,951

$                  354

$               1,876

$               2,261

(37.7)

                 (46.2)

    Return on average assets (1)

                       0.41

%

                   0.66

%

                   0.13

%

                   0.72

%

                   0.87

%

(37.9)

%

                 (52.9)

%

    Return on average equity (1)

                       3.75

                   6.03

                   1.07

                   5.05

                   7.11

(37.8)

                 (47.3)

    Net interest margin

                       3.90

                   3.79

                   3.85

                   4.09

                   4.24

2.9 

                   (8.0)

    Efficiency ratio - GAAP based

                     62.79

                 67.98

                 69.29

                 64.14

                 65.20

(7.6)

                   (3.7)

PER SHARE DATA

    Basic net income per share

$                     0.14

$                 0.23

$                 0.23

$                 0.26

$                 0.27

(39.1)

%

                 (48.1)

%

    Basic net income per common share

                       0.14

                   0.23

                   0.04

                   0.22

                   0.27

(39.1)

                 (48.1)

    Diluted net income per share

                       0.14

                   0.23

                   0.22

                   0.26

                   0.27

(39.1)

                 (48.1)

    Diluted net income per common share

                       0.14

                   0.23

                   0.04

                   0.22

                   0.27

(39.1)

                 (48.1)

    Dividends paid per common share

                       0.16

                   0.16

                   0.16

                   0.16

                   0.16

     -

    Book value per common share at period end

                     15.18

                 15.23

                 15.19

                 15.38

                 15.16

(0.3)

                     0.1

    Tangible book value per common share at period end

                     12.64

                 12.68

                 12.62

                 12.79

                 12.55

(0.3)

                     0.7

    Market value at period end

                     14.50

                 16.73

                 17.94

                 16.75

                 23.99

(13.3)

                 (39.6)

    Market range:

       High

                     17.71

                 20.72

                 21.46

                 24.43

                 25.97

(14.5)

                 (31.8)

       Low

                     13.52

                 16.64

                 15.18

                 11.00

                 17.50

(18.8)

                 (22.7)

AT PERIOD END

    Loans

$               916,557

$           918,601

$           919,088

$           908,118

$           888,528

(0.2)

%

                     3.2

%

    Securities

                 109,684

             103,921

               89,272

               78,953

               89,456

5.5 

                   22.6

    Assets

              1,156,516

          1,157,685

          1,158,212

          1,075,934

          1,044,641

(0.1)

                   10.7

    Deposits

                 990,937

             992,196

             981,334

             873,089

             845,371

(0.1)

                   17.2

    Stockholders' equity

                 127,810

             128,219

             127,876

             152,781

             127,385

(0.3)

                     0.3

CAPITAL AND CREDIT QUALITY RATIOS

    Average equity to average assets

                     11.01

%

                 11.01

%

                 11.84

%

                 14.23

%

                 12.22

%

    Annualized net charge-offs to average loans

                       1.51

                   0.76

                   0.71

                   0.25

                   0.31

    Allowance for credit losses to period-end loans      

                       1.19

                   1.17

                   1.17

                   1.18

                   1.05

    Nonperforming assets to total loans+other real estate owned

                       2.05

                   1.90

                   1.73

                   1.00

                   0.93

    Nonperforming assets to total assets

                       1.63

                   1.51

                   1.37

                   0.85

                   0.79

    Nonperforming assets+Loans 90 days past due

       and still accruing to total loans+other real estate owned

                       2.86

                   2.89

                   2.60

                   1.87

                   1.09

    Nonperforming assets+Loans 90 days past due

       and still accruing to total assets

                       2.27

                   2.30

                   2.07

                   1.58

                   0.92

(1) Calculation uses net income available to common shareholders.

Shore Bancshares, Inc.

Consolidated Statements of Income By Quarter

(In thousands, except per share data)

4Q 09

4Q 09

compared to

compared to

4Q 09

3Q 09

2Q 09

1Q 09

4Q 08

3Q 09

4Q 08

INTEREST INCOME

   Interest and fees on loans

$             13,837

$             14,001

$             13,754

$             13,617

$             14,166

(1.2)

%

(2.3)

%

   Interest and dividends on investment securities:

       Taxable

860

800

768

                    756

                    839

7.5 

2.5 

       Tax-exempt

60

77

79

                      85

                      93

(22.1)

(35.5)

   Interest on federal funds sold

23

31

23

                        7

                      24

(25.8)

(4.2)

   Interest on deposits with other banks

-

4

6

                        1

                        4

(100.0)

(100.0)

                  Total interest income

14,780

14,913

14,630

               14,466

               15,126

(0.9)

(2.3)

INTEREST EXPENSE

   Interest on deposits

3,924

4,368

4,441

                 4,285

                 4,582

(10.2)

(14.4)

   Interest on short-term borrowings

31

19

28

                      49

                    121

63.2 

(74.4)

   Interest on long-term debt

19

98

75

                      74

                      75

(80.6)

(74.7)

                  Total interest expense

3,974

4,485

4,544

                 4,408

                 4,778

(11.4)

(16.8)

NET INTEREST INCOME

10,806

10,428

10,086

               10,058

               10,348

3.6 

4.4 

Provision for credit losses

3,668

1,702

1,681

                 1,935

                 1,385

115.5 

164.8 

NET INTEREST INCOME AFTER PROVISION

 FOR CREDIT LOSSES

7,138

8,726

8,405

                 8,123

                 8,963

(18.2)

(20.4)

NONINTEREST INCOME

   Service charges on deposit accounts

866

861

888

                    809

                    889

0.6 

(2.6)

   Investment securities gains (losses)

-

-

-

                      49

                    (15)

100.0 

   Insurance agency commissions

2,159

2,744

2,893

                 3,335

                 2,495

(21.3)

(13.5)

   Other noninterest income

1,100

1,114

1,566

                 1,157

                 1,039

(1.3)

5.9 

                     Total noninterest income

4,125

4,719

5,347

                 5,350

                 4,408

(12.6)

(6.4)

NONINTEREST EXPENSE

   Salaries and employee benefits

5,264

5,976

5,959

                 5,920

                 5,776

(11.9)

(8.9)

   Occupancy expense

572

616

587

                    549

                    585

(7.1)

(2.2)

   Furniture and equipment expense

268

299

302

                    314

                    291

(10.4)

(7.9)

   Data processing

598

675

580

                    610

                    595

(11.4)

0.5 

   Directors' fees

84

109

117

                    168

                    132

(22.9)

(36.4)

   Amortization of intangible assets

129

128

129

                    129

                    129

0.8 

   Other noninterest expenses

2,460

2,494

3,019

                 2,193

                 2,113

(1.4)

16.4 

                     Total noninterest expense

9,375

10,297

10,693

                 9,883

                 9,621

(9.0)

(2.6)

Income before income taxes

1,888

3,148

3,059

                 3,590

                 3,750

(40.0)

(49.7)

Income tax expense

672

1,197

1,166

                 1,377

                 1,489

(43.9)

(54.9)

NET INCOME

1,216

1,951

1,893

                 2,213

                 2,261

(37.7)

(46.2)

Preferred stock dividends and discount accretion

-

-

1,539

                    337

                        -

Net income available to common shareholders

$               1,216

$               1,951

$                  354

$               1,876

$               2,261

(37.7)

(46.2)

Weighted average shares outstanding - basic

8,419

8,419

8,413

8,405

8,405

0.2 

Weighted average shares outstanding - diluted

8,421

8,423

8,417

8,408

8,410

0.1 

Basic net income per share

$                 0.14

$                 0.23

$                 0.23

$                 0.26

$                 0.27

(39.1)

(48.1)

Basic net income per common share

0.14

0.23

0.04

                   0.22

                   0.27

(39.1)

(48.1)

Diluted net income per share

0.14

0.23

0.22

                   0.26

                   0.27

(39.1)

(48.1)

Diluted net income per common share

0.14

0.23

0.04

                   0.22

                   0.27

(39.1)

(48.1)

Dividends paid per common share

0.16

0.16

0.16

                   0.16

                   0.16

SOURCE Shore Bancshares, Inc.



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