Shore Bancshares Reports First Quarter 2012 Financial Results
EASTON, Md., April 24, 2012 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) reported a net loss of $3.0 million or $(0.36) per diluted common share for the first quarter of 2012, compared to net income of $325 thousand or $0.04 per diluted common share for the fourth quarter of 2011, and a net loss of $1.1 million or $(0.13) per diluted common share for the first quarter of 2011. For the first quarter of 2012, the Company recorded a provision for credit losses of $8.4 million, which was $4.4 million higher than the provision recorded for the fourth quarter of 2011 and $2.0 million higher than the provision recorded for the first quarter of 2011.
"Two main challenges dominated our agenda during the first quarter, as has been the case for several quarters now. We continued to push known problem loans through the resolution pipeline toward final charge-off and removal from our balance sheet, and we also continued to evaluate and monitor certain existing loans to set aside appropriate reserves," said W. Moorhead Vermilye, chief executive officer. "Accordingly, during the quarter we recorded an $8.4 million provision for possible credit losses, which was more than twice the amount we set aside during the linked fourth quarter and about 30% higher than the first quarter a year ago. Notably, over 50% of the $9.1 million of problem credit charge-offs we incurred during the quarter were attributable to a single large real estate related borrower, where we made the tough decision to move the relationship off of our books. Thus, substantially higher credit-related costs were the primary reason we reported a loss for the quarter, even as our underlying day-to-day community banking activities produced consistent, dependable operating revenue. Total deposits increased 4.2% on a year-over-year basis and, notably, core noninterest-bearing deposits were up 17.4% year-over-year. This growth reflects the effective cross-selling efforts of our experienced branch staff, as well as the confidence in our banks that Delmarva residents continue to exhibit during this very tough and disappointing economic cycle."
"We haven't yet seen a clear upturn in sight for the real estate driven micro-economy across our footprint. This scenario is testing the resilience of the best and strongest borrowers at banks across our competitive landscape. Fortunately, we remain a well-capitalized institution and our strong capital base is enabling us to move aggressively to fund the costs we must incur to resolve our problem loans, which should ultimately position us favorably vis-a-vis our smaller local competitors when the economy finally turns," said Vermilye.
The Company's return on average assets for the first quarter of 2012 was (1.05)%, compared to 0.11% and (0.39)% for the quarters ended December 31, 2011 and March 31, 2011, respectively. The return on average stockholders' equity was (10.04)% for the first quarter of 2012, compared to 1.07% for the fourth quarter of 2011 and (3.59)% for the first quarter of 2011. The return on average tangible equity was (11.33)% for the first quarter of 2012, compared to 1.53% for the fourth quarter of 2011 and (3.92)% for the first quarter of 2011.
Total assets were $1.170 billion at March 31, 2012, a 1.0% increase when compared to the $1.158 billion at the end of 2011. Total loans decreased 2.6% to $819.0 million while total earning assets increased 1.0% to $1.093 billion when compared to December 31, 2011. Total deposits increased 1.8% to $1.028 billion while total stockholders' equity decreased 2.2% from the end of 2011. The ratio of average equity to average assets was 10.49% and 10.83% for the first three months of 2012 and 2011, respectively, while the ratio of average tangible equity to average tangible assets was 9.19% and 9.35% for the first three months of 2012 and 2011, respectively. Capital levels remain well above regulatory minimums to be considered well-capitalized.
Review of Quarterly Financial Results
Net interest income was $9.2 million for the first quarter of 2012, compared to $9.8 million for the fourth quarter of 2011 and $9.9 million for the first quarter of 2011. The decrease in net interest income when compared to the fourth quarter of 2011 and the first quarter of 2011 was primarily due to lower yields earned on average earning assets and a decline in higher-yielding average loan balances. The Company's net interest margin was 3.42% for the first quarter of 2012, 3.60% for the fourth quarter of 2011 and 3.79% for the first quarter of 2011.
As previously mentioned, the provision for credit losses was $8.4 million for the three months ended March 31, 2012. The comparable amounts were $4.0 million and $6.4 million for the three months ended December 31, 2011 and March 31, 2011, respectively. The ratio of the allowance for credit losses to period-end loans was 1.65% at March 31, 2012, compared to 1.70% at December 31, 2011 and 1.97% at March 31, 2011. Management believes that the provision for credit losses and the resulting allowance were adequate to provide for probable losses in our loan portfolio at March 31, 2012.
The level of provision for credit losses was primarily in response to loan charge-offs. Net charge-offs were $9.1 million for the first quarter of 2012, compared to $3.3 million for the fourth quarter of 2011 and $3.1 million for the first quarter of 2011. A large portion of the loan charge-offs during the first quarter of 2012 was from one real estate loan relationship. The ratio of quarter-to-date annualized net charge-offs to average loans was 4.40% for the first quarter of 2012, compared to 1.53% for the fourth quarter of 2011 and 1.44% for the first quarter of 2011. When compared to the end of 2011, nonperforming assets at March 31, 2012 increased $5.9 million, of which $4.8 million was due to an increase in accruing troubled debt restructurings. When compared to March 31, 2011, nonperforming assets at March 31, 2012 increased $7.3 million, of which $6.6 million was due to an increase in other real estate owned. The ratio of nonperforming assets to total assets was 8.09% at March 31, 2012, compared to 7.66% at December 31, 2011 and 7.72% at March 31, 2011.
Total noninterest income for the first quarter of 2012 increased $555 thousand, or 13.8%, when compared to the fourth quarter of 2011 and $179 thousand, or 4.1%, when compared to the first quarter of 2011. The increase when compared to the fourth quarter of 2011 was primarily a result of higher insurance agency commissions of $628 thousand, due to contingency payments which are typically received in the first quarter of each year and are based on the prior year's performance. The increase in insurance agency commissions was partially offset by a decline in investment securities gains of $128 thousand that were recorded in the fourth quarter of 2011. The increase in noninterest income during the first quarter of 2012 when compared to the first quarter of 2011 was primarily due to an increase in insurance agency commissions of $179 thousand, resulting from higher contingency payments.
Total noninterest expense for the first quarter of 2012 increased $1.1 million, or 11.6%, when compared to the fourth quarter of 2011. Other employee benefits increased $247 thousand mainly due to higher payroll taxes ($170 thousand) and group insurance costs ($65 thousand). Occupancy expense increased $124 thousand, which included costs incurred to make changes to the headquarters building of The Avon-Dixon Agency, LLC, one of our insurance producer firms, in order to relocate employees to a central location. Other noninterest expenses increased $516 thousand mainly due to higher expenses related to collection and other real estate owned activities ($197 thousand), employee training ($102 thousand), primarily on the use of upgraded insurance software, and the provision for off-balance sheet commitments ($219 thousand).
Total noninterest expense for the first quarter of 2012 increased $607 thousand, or 6.1%, when compared to the first quarter of 2011. Salaries and wages increased $170 thousand and other noninterest expenses increased $713 thousand primarily due to higher expenses related to other real estate owned activities and the previously-mentioned employee training and provision for off-balance sheet commitments. Partially offsetting these increases were lower data processing expenses of $185 thousand due to nonrecurring charges relating to the merger of The Felton Bank into CNB during the first quarter of 2011, and FDIC insurance premiums of $187 thousand.
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 banks, The Talbot Bank of Easton, Maryland, and CNB; 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; and a registered investment adviser firm, Wye Financial Services, LLC. Shore Bancshares, Inc. engages in the mortgage broker business under the name "Wye Mortgage Group" through a minority series investment in an unrelated Delaware limited liability company. Additional information is available at www.shbi.com.
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".
For further information contact: W. Moorhead Vermilye, Chief Executive Officer, 410-763-7800
| Shore Bancshares, Inc. |
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| Financial Highlights |
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| (Dollars in thousands, except per share data) |
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| Page 4 of 11 |
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| For the Three Months Ended |
||||||
| March 31, |
||||||
| 2012 |
2011 |
Change |
||||
| PROFITABILITY FOR THE PERIOD |
||||||
| Net interest income |
$ 9,195 |
$ 9,862 |
(6.8) |
% |
||
| Provision for credit losses |
8,370 |
6,390 |
31.0 |
|||
| Noninterest income |
4,574 |
4,395 |
4.1 |
|||
| Noninterest expense |
10,498 |
9,891 |
6.1 |
|||
| Loss before income tax benefit |
(5,099) |
(2,024) |
(151.9) |
|||
| Income tax benefit |
(2,063) |
(941) |
(119.2) |
|||
| Net loss |
$ (3,036) |
$ (1,083) |
(180.3) |
|||
| Return on average assets |
(1.05) |
% |
(0.39) |
% |
(66) |
bp |
| Return on average equity |
(10.04) |
(3.59) |
(645) |
|||
| Return on average tangible equity (1) |
(11.33) |
(3.92) |
(741) |
|||
| Net interest margin |
3.42 |
3.79 |
(37) |
|||
| Efficiency ratio - GAAP |
75.98 |
69.09 |
689 |
|||
| Efficiency ratio - Non-GAAP (1) |
75.07 |
68.57 |
650 |
|||
| PER SHARE DATA |
||||||
| Basic net loss per common share |
$ (0.36) |
$ (0.13) |
(176.9) |
% |
||
| Diluted net loss per common share |
(0.36) |
(0.13) |
(176.9) |
|||
| Dividends paid per common share |
0.01 |
0.06 |
(83.3) |
|||
| Book value per common share at period end |
14.02 |
14.32 |
(2.1) |
|||
| Tangible book value per common share at period end (1) |
12.07 |
12.14 |
(0.6) |
|||
| Market value at period end |
7.09 |
9.75 |
(27.3) |
|||
| Market range: |
||||||
| High |
7.40 |
11.11 |
(33.4) |
|||
| Low |
4.91 |
9.42 |
(47.9) |
|||
| PERIOD-END BALANCE SHEET DATA |
||||||
| Loans |
$ 819,015 |
$ 884,715 |
(7.4) |
% |
||
| Securities |
127,149 |
106,920 |
18.9 |
|||
| Assets |
1,169,721 |
1,131,334 |
3.4 |
|||
| Deposits |
1,028,071 |
986,486 |
4.2 |
|||
| Stockholders' equity |
118,584 |
120,926 |
(1.9) |
|||
| AVERAGE BALANCE SHEET DATA |
||||||
| Loans |
$ 832,585 |
$ 887,531 |
(6.2) |
% |
||
| Securities |
134,037 |
106,235 |
26.2 |
|||
| Earning assets |
1,088,106 |
1,062,164 |
2.4 |
|||
| Assets |
1,159,566 |
1,131,259 |
2.5 |
|||
| Deposits |
1,011,170 |
982,249 |
2.9 |
|||
| Stockholders' equity |
121,658 |
122,466 |
(0.7) |
|||
| CAPITAL AND CREDIT QUALITY RATIOS |
||||||
| Average equity to average assets |
10.49 |
% |
10.83 |
% |
(34) |
bp |
| Average tangible equity to average tangible assets (1) |
9.19 |
9.35 |
(16) |
|||
| Annualized net charge-offs to average loans |
4.40 |
1.44 |
296 |
|||
| Allowance for credit losses to period-end loans |
1.65 |
1.97 |
(32) |
|||
| Allowance for credit losses to nonaccrual loans |
27.41 |
35.83 |
(842) |
|||
| Allowance for credit losses to nonperforming loans (2) |
16.28 |
21.16 |
(488) |
|||
| Nonaccrual loans to total loans |
6.03 |
5.51 |
52 |
|||
| Nonaccrual loans to total assets |
4.22 |
4.31 |
(9) |
|||
| Nonperforming assets to total loans+other real estate |
11.40 |
9.82 |
158 |
|||
| Nonperforming assets to total assets |
8.09 |
7.72 |
37 |
|||
| (1) See the reconciliation table on page 11 of 11. |
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| (2) Nonperforming loans include nonaccrual, 90 days past due |
||||||
| and still accruing and accruing troubled debt restructurings. |
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| (3) Nonperforming assets include nonperforming loans and |
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| other real estate and other assets owned. |
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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, 2012 |
March 31, 2012 |
|||||||||
| March 31, |
December 31, |
March 31, |
compared to |
compared to |
||||||
| 2012 |
2011 |
2011 |
December 31, 2011 |
March 31, 2011 |
||||||
| ASSETS |
||||||||||
| Cash and due from banks |
$ 19,168 |
$ 22,986 |
$ 19,074 |
(16.6) |
% |
0.5 |
% |
|||
| Interest-bearing deposits with other banks |
130,641 |
99,776 |
31,311 |
30.9 |
317.2 |
|||||
| Federal funds sold |
16,190 |
4,980 |
39,597 |
225.1 |
(59.1) |
|||||
| Investments available for sale (at fair value) |
121,093 |
129,780 |
100,234 |
(6.7) |
20.8 |
|||||
| Investments held to maturity |
6,056 |
6,480 |
6,686 |
(6.5) |
(9.4) |
|||||
| Loans |
819,015 |
841,050 |
884,715 |
(2.6) |
(7.4) |
|||||
| Less: allowance for credit losses |
(13,544) |
(14,288) |
(17,471) |
(5.2) |
(22.5) |
|||||
| Loans, net |
805,471 |
826,762 |
867,244 |
(2.6) |
(7.1) |
|||||
| Premises and equipment, net |
15,243 |
14,662 |
14,304 |
4.0 |
6.6 |
|||||
| Goodwill |
12,454 |
12,454 |
13,678 |
- |
(8.9) |
|||||
| Other intangible assets, net |
4,082 |
4,208 |
4,711 |
(3.0) |
(13.4) |
|||||
| Other real estate and other assets owned, net |
11,418 |
9,385 |
4,802 |
21.7 |
137.8 |
|||||
| Other assets |
27,905 |
26,720 |
29,693 |
4.4 |
(6.0) |
|||||
| Total assets |
$ 1,169,721 |
$ 1,158,193 |
$ 1,131,334 |
1.0 |
3.4 |
|||||
| LIABILITIES |
||||||||||
| Noninterest-bearing deposits |
$ 143,800 |
$ 133,801 |
$ 122,490 |
7.5 |
17.4 |
|||||
| Interest-bearing deposits |
884,271 |
876,118 |
863,996 |
0.9 |
2.3 |
|||||
| Total deposits |
1,028,071 |
1,009,919 |
986,486 |
1.8 |
4.2 |
|||||
| Short-term borrowings |
13,683 |
17,817 |
12,078 |
(23.2) |
13.3 |
|||||
| Accrued expenses and other liabilities |
8,928 |
8,753 |
10,912 |
2.0 |
(18.2) |
|||||
| Long-term debt |
455 |
455 |
932 |
- |
(51.2) |
|||||
| Total liabilities |
1,051,137 |
1,036,944 |
1,010,408 |
1.4 |
4.0 |
|||||
| STOCKHOLDERS' EQUITY |
||||||||||
| Common stock, par value $0.01; authorized |
||||||||||
| 35,000,000 shares |
85 |
85 |
84 |
- |
1.2 |
|||||
| Warrant |
- |
- |
1,543 |
- |
(100.0) |
|||||
| Additional paid in capital |
32,066 |
32,052 |
30,290 |
- |
5.9 |
|||||
| Retained earnings |
87,680 |
90,801 |
90,868 |
(3.4) |
(3.5) |
|||||
| Accumulated other comprehensive loss |
(1,247) |
(1,689) |
(1,859) |
26.2 |
32.9 |
|||||
| Total stockholders' equity |
118,584 |
121,249 |
120,926 |
(2.2) |
(1.9) |
|||||
| Total liabilities and stockholders' equity |
$ 1,169,721 |
$ 1,158,193 |
$ 1,131,334 |
1.0 |
3.4 |
|||||
| Period-end common shares outstanding |
8,457 |
8,457 |
8,443 |
- |
0.2 |
|||||
| Book value per common share |
$ 14.02 |
$ 14.34 |
$ 14.32 |
(2.2) |
(2.1) |
|||||
| Shore Bancshares, Inc. |
Page 6 of 11 |
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| Consolidated Statements of Income |
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| (In thousands, except per share data) |
|||||
| For the Three Months Ended |
|||||
| March 31, |
|||||
| 2012 |
2011 |
% Change |
|||
| INTEREST INCOME |
|||||
| Interest and fees on loans |
$ 11,011 |
$ 12,001 |
(8.2) |
% |
|
| Interest and dividends on investment securities: |
|||||
| Taxable |
757 |
657 |
15.2 |
||
| Tax-exempt |
38 |
38 |
- |
||
| Interest on federal funds sold |
2 |
16 |
(87.5) |
||
| Interest on deposits with other banks |
48 |
6 |
700.0 |
||
| Total interest income |
11,856 |
12,718 |
(6.8) |
||
| INTEREST EXPENSE |
|||||
| Interest on deposits |
2,641 |
2,833 |
(6.8) |
||
| Interest on short-term borrowings |
15 |
13 |
15.4 |
||
| Interest on long-term debt |
5 |
10 |
(50.0) |
||
| Total interest expense |
2,661 |
2,856 |
(6.8) |
||
| NET INTEREST INCOME |
9,195 |
9,862 |
(6.8) |
||
| Provision for credit losses |
8,370 |
6,390 |
31.0 |
||
| NET INTEREST INCOME AFTER PROVISION |
|||||
| FOR CREDIT LOSSES |
825 |
3,472 |
(76.2) |
||
| NONINTEREST INCOME |
|||||
| Service charges on deposit accounts |
648 |
704 |
(8.0) |
||
| Trust and investment fee income |
423 |
376 |
12.5 |
||
| Investment securities gains |
- |
79 |
(100.0) |
||
| Insurance agency commissions |
2,689 |
2,510 |
7.1 |
||
| Other noninterest income |
814 |
726 |
12.1 |
||
| Total noninterest income |
4,574 |
4,395 |
4.1 |
||
| NONINTEREST EXPENSE |
|||||
| Salaries and wages |
4,416 |
4,246 |
4.0 |
||
| Employee benefits |
1,170 |
1,153 |
1.5 |
||
| Occupancy expense |
687 |
596 |
15.3 |
||
| Furniture and equipment expense |
251 |
272 |
(7.7) |
||
| Data processing |
666 |
851 |
(21.7) |
||
| Directors' fees |
109 |
107 |
1.9 |
||
| Amortization of intangible assets |
126 |
129 |
(2.3) |
||
| Insurance agency commissions expense |
385 |
375 |
2.7 |
||
| FDIC insurance premium expense |
273 |
460 |
(40.7) |
||
| Other noninterest expenses |
2,415 |
1,702 |
41.9 |
||
| Total noninterest expense |
10,498 |
9,891 |
6.1 |
||
| Loss before income tax benefit |
(5,099) |
(2,024) |
(151.9) |
||
| Income tax benefit |
(2,063) |
(941) |
(119.2) |
||
| NET LOSS |
$ (3,036) |
$ (1,083) |
(180.3) |
||
| Weighted average shares outstanding - basic |
8,457 |
8,443 |
0.2 |
||
| Weighted average shares outstanding - diluted |
8,457 |
8,443 |
0.2 |
||
| Basic net loss per common share |
$ (0.36) |
$ (0.13) |
(176.9) |
||
| Diluted net loss per common share |
(0.36) |
(0.13) |
(176.9) |
||
| Dividends paid per common share |
0.01 |
0.06 |
(83.3) |
||
| 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, |
||||||||
| 2012 |
2011 |
|||||||
| Average |
Yield/ |
Average |
Yield/ |
|||||
| balance |
rate |
balance |
rate |
|||||
| Earning assets |
||||||||
| Loans |
$ 832,585 |
5.33 |
% |
$ 887,531 |
5.50 |
% |
||
| Investment securities |
||||||||
| Taxable |
129,767 |
2.35 |
101,625 |
2.62 |
||||
| Tax-exempt |
4,270 |
5.36 |
4,610 |
5.08 |
||||
| Federal funds sold |
9,794 |
0.06 |
46,813 |
0.14 |
||||
| Interest-bearing deposits |
111,690 |
0.17 |
21,585 |
0.12 |
||||
| Total earning assets |
1,088,106 |
4.40 |
% |
1,062,164 |
4.88 |
% |
||
| Cash and due from banks |
18,174 |
19,316 |
||||||
| Other assets |
68,163 |
65,426 |
||||||
| Allowance for credit losses |
(14,877) |
(15,647) |
||||||
| Total assets |
$ 1,159,566 |
$ 1,131,259 |
||||||
| Interest-bearing liabilities |
||||||||
| Demand deposits |
$ 153,291 |
0.19 |
% |
$ 131,628 |
0.22 |
% |
||
| Money market and savings deposits (1) |
279,355 |
1.12 |
260,841 |
0.93 |
||||
| Certificates of deposit $100,000 or more |
240,521 |
1.46 |
259,179 |
1.70 |
||||
| Other time deposits |
201,743 |
1.83 |
208,301 |
2.10 |
||||
| Interest-bearing deposits |
874,910 |
1.21 |
859,949 |
1.34 |
||||
| Short-term borrowings |
17,621 |
0.35 |
14,165 |
0.37 |
||||
| Long-term debt |
455 |
4.63 |
932 |
4.56 |
||||
| Total interest-bearing liabilities |
892,986 |
1.20 |
% |
875,046 |
1.32 |
% |
||
| Noninterest-bearing deposits |
136,260 |
122,300 |
||||||
| Accrued expenses and other liabilities |
8,662 |
11,447 |
||||||
| Stockholders' equity |
121,658 |
122,466 |
||||||
| Total liabilities and stockholders' equity |
$ 1,159,566 |
$ 1,131,259 |
||||||
| Net interest spread |
3.20 |
% |
3.56 |
% |
||||
| Net interest margin |
3.42 |
% |
3.79 |
% |
||||
| (1) Interest on money market and savings deposits includes an adjustment to expense related to interest rate caps and the hedged |
||||||||
| deposits associated with them. This adjustment increased interest expense $460 thousand for the first quarter of 2012 and |
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| $260 thousand for the first quarter of 2011. |
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| Shore Bancshares, Inc. |
Page 8 of 11 |
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| Financial Highlights By Quarter |
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| (Dollars in thousands, except per share data) |
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| 1st quarter |
4th quarter |
3rd quarter |
2nd quarter |
1st quarter |
1Q 12 |
1Q 12 |
||||||||
| 2012 |
2011 |
2011 |
2011 |
2011 |
compared to |
compared to |
||||||||
| (1Q 12) |
(4Q 11) |
(3Q 11) |
(2Q 11) |
(1Q 11) |
4Q 11 |
1Q 11 |
||||||||
| PROFITABILITY FOR THE PERIOD |
||||||||||||||
| Taxable-equivalent net interest income |
$ 9,243 |
$ 9,889 |
$ 10,172 |
$ 10,001 |
$ 9,921 |
(6.5) |
% |
(6.8) |
% |
|||||
| Less: Taxable-equivalent adjustment |
48 |
52 |
49 |
59 |
59 |
(7.7) |
(18.6) |
|||||||
| Net interest income |
9,195 |
9,837 |
10,123 |
9,942 |
9,862 |
(6.5) |
(6.8) |
|||||||
| Provision for credit losses |
8,370 |
4,035 |
3,650 |
5,395 |
6,390 |
107.4 |
31.0 |
|||||||
| Noninterest income |
4,574 |
4,019 |
4,523 |
4,381 |
4,395 |
13.8 |
4.1 |
|||||||
| Noninterest expense |
10,498 |
9,405 |
10,677 |
9,194 |
9,891 |
11.6 |
6.1 |
|||||||
| (Loss) income before income taxes |
(5,099) |
416 |
319 |
(266) |
(2,024) |
(1,325.7) |
(151.9) |
|||||||
| Income tax (benefit) expense |
(2,063) |
91 |
225 |
(33) |
(941) |
(2,367.0) |
(119.2) |
|||||||
| Net (loss) income |
$ (3,036) |
$ 325 |
$ 94 |
$ (233) |
$ (1,083) |
(1,034.2) |
(180.3) |
|||||||
| Return on average assets |
(1.05) |
% |
0.11 |
% |
0.03 |
% |
(0.08) |
% |
(0.39) |
% |
(116) |
bp |
(66) |
bp |
| Return on average equity |
(10.04) |
1.07 |
0.31 |
(0.77) |
(3.59) |
(1,111) |
(645) |
|||||||
| Return on average tangible equity (1) |
(11.33) |
1.53 |
4.21 |
(0.60) |
(3.92) |
(1,286) |
(741) |
|||||||
| Net interest margin |
3.42 |
3.60 |
3.77 |
3.80 |
3.79 |
(18) |
(37) |
|||||||
| Efficiency ratio - GAAP |
75.98 |
67.62 |
72.66 |
63.93 |
69.09 |
836 |
689 |
|||||||
| Efficiency ratio - Non-GAAP (1) |
75.07 |
67.61 |
64.18 |
63.05 |
68.57 |
746 |
650 |
|||||||
| PER SHARE DATA |
||||||||||||||
| Basic net (loss) income per common share |
$ (0.36) |
$ 0.04 |
$ 0.01 |
$ (0.03) |
$ (0.13) |
(1,000.0) |
% |
(176.9) |
% |
|||||
| Diluted net (loss) income per common share |
(0.36) |
0.04 |
0.01 |
(0.03) |
(0.13) |
(1,000.0) |
(176.9) |
|||||||
| Dividends paid per common share |
0.01 |
0.01 |
0.01 |
0.01 |
0.06 |
- |
(83.3) |
|||||||
| Book value per common share at period end |
14.02 |
14.34 |
14.31 |
14.30 |
14.32 |
(2.2) |
(2.1) |
|||||||
| Tangible book value per common share at period end (1) |
12.07 |
12.37 |
12.32 |
12.14 |
12.14 |
(2.4) |
(0.6) |
|||||||
| Market value at period end |
7.09 |
5.15 |
4.36 |
6.98 |
9.75 |
37.7 |
(27.3) |
|||||||
| Market range: |
||||||||||||||
| High |
7.40 |
6.13 |
7.06 |
10.21 |
11.11 |
20.7 |
(33.4) |
|||||||
| Low |
4.91 |
4.20 |
3.95 |
6.51 |
9.42 |
16.9 |
(47.9) |
|||||||
| PERIOD-END BALANCE SHEET DATA |
||||||||||||||
| Loans |
$ 819,015 |
$ 841,050 |
$ 862,566 |
$ 877,331 |
$ 884,715 |
(2.6) |
% |
(7.4) |
% |
|||||
| Securities |
127,149 |
136,260 |
112,328 |
113,271 |
106,920 |
(6.7) |
18.9 |
|||||||
| Assets |
1,169,721 |
1,158,193 |
1,157,536 |
1,124,191 |
1,131,334 |
1.0 |
3.4 |
|||||||
| Deposits |
1,028,071 |
1,009,919 |
1,011,919 |
973,442 |
986,486 |
1.8 |
4.2 |
|||||||
| Stockholders' equity |
118,584 |
121,249 |
120,986 |
120,941 |
120,926 |
(2.2) |
(1.9) |
|||||||
| AVERAGE BALANCE SHEET DATA |
||||||||||||||
| Loans |
$ 832,585 |
$ 854,302 |
$ 869,221 |
$ 881,976 |
$ 887,531 |
(2.5) |
% |
(6.2) |
% |
|||||
| Securities |
134,037 |
122,725 |
113,938 |
111,190 |
106,235 |
9.2 |
26.2 |
|||||||
| Earning assets |
1,088,106 |
1,089,078 |
1,069,636 |
1,056,658 |
1,062,164 |
(0.1) |
2.4 |
|||||||
| Assets |
1,159,566 |
1,160,652 |
1,142,588 |
1,125,213 |
1,131,259 |
(0.1) |
2.5 |
|||||||
| Deposits |
1,011,170 |
1,013,848 |
994,968 |
976,840 |
982,249 |
(0.3) |
2.9 |
|||||||
| Stockholders' equity |
121,658 |
121,020 |
121,327 |
121,187 |
122,466 |
0.5 |
(0.7) |
|||||||
| CAPITAL AND CREDIT QUALITY RATIOS |
||||||||||||||
| Average equity to average assets |
10.49 |
% |
10.43 |
% |
10.62 |
% |
10.77 |
% |
10.83 |
% |
6 |
bp |
(34) |
bp |
| Average tangible equity to average tangible assets (1) |
9.19 |
9.12 |
9.17 |
9.29 |
9.35 |
7 |
(16) |
|||||||
| Annualized net charge-offs to average loans |
4.40 |
1.53 |
2.95 |
2.96 |
1.44 |
287 |
296 |
|||||||
| Allowance for credit losses to period-end loans |
1.65 |
1.70 |
1.57 |
1.86 |
1.97 |
(5) |
(32) |
|||||||
| Allowance for credit losses to nonaccrual loans |
27.41 |
27.81 |
27.31 |
33.74 |
35.83 |
(40) |
(842) |
|||||||
| Allowance for credit losses to nonperforming loans (2) |
16.28 |
18.02 |
16.31 |
22.68 |
21.16 |
(174) |
(488) |
|||||||
| Nonaccrual loans to total loans |
6.03 |
6.11 |
5.75 |
5.53 |
5.51 |
(8) |
52 |
|||||||
| Nonaccrual loans to total assets |
4.22 |
4.44 |
4.28 |
4.31 |
4.31 |
(22) |
(9) |
|||||||
| Nonperforming assets to total loans+other real estate and |
||||||||||||||
| other assets owned (3) |
11.40 |
10.43 |
10.65 |
9.04 |
9.82 |
97 |
158 |
|||||||
| Nonperforming assets to total assets |
8.09 |
7.66 |
8.02 |
7.12 |
7.72 |
43 |
37 |
|||||||
| (1) See the reconciliation table on page 11 of 11. |
||||||||||||||
| (2) Nonperforming loans include nonaccrual, 90 days past due |
||||||||||||||
| and still accruing and accruing troubled debt restructurings. |
||||||||||||||
| (3) Nonperforming assets include nonperforming loans and |
||||||||||||||
| other real estate and other assets owned. |
| Shore Bancshares, Inc. |
Page 9 of 11 |
||||||||||||||||
| Consolidated Statements of Income By Quarter |
|||||||||||||||||
| (In thousands, except per share data) |
|||||||||||||||||
| 1Q 12 |
1Q 12 |
||||||||||||||||
| compared to |
compared to |
||||||||||||||||
| 1Q 12 |
4Q 11 |
3Q 11 |
2Q 11 |
1Q 11 |
4Q 11 |
1Q 11 |
|||||||||||
| INTEREST INCOME |
|||||||||||||||||
| Interest and fees on loans |
$ 11,011 |
$ 11,649 |
$ 12,003 |
$ 11,896 |
$ 12,001 |
(5.5) |
% |
(8.2) |
% |
||||||||
| Interest and dividends on investment securities: |
|||||||||||||||||
| Taxable |
757 |
797 |
795 |
782 |
657 |
(5.0) |
15.2 |
||||||||||
| Tax-exempt |
38 |
38 |
38 |
40 |
38 |
- |
- |
||||||||||
| Interest on federal funds sold |
2 |
1 |
3 |
5 |
16 |
100.0 |
(87.5) |
||||||||||
| Interest on deposits with other banks |
48 |
46 |
29 |
12 |
6 |
4.3 |
700.0 |
||||||||||
| Total interest income |
11,856 |
12,531 |
12,868 |
12,735 |
12,718 |
(5.4) |
(6.8) |
||||||||||
| INTEREST EXPENSE |
|||||||||||||||||
| Interest on deposits |
2,641 |
2,673 |
2,720 |
2,769 |
2,833 |
(1.2) |
(6.8) |
||||||||||
| Interest on short-term borrowings |
15 |
15 |
15 |
13 |
13 |
- |
15.4 |
||||||||||
| Interest on long-term debt |
5 |
6 |
10 |
11 |
10 |
(16.7) |
(50.0) |
||||||||||
| Total interest expense |
2,661 |
2,694 |
2,745 |
2,793 |
2,856 |
(1.2) |
(6.8) |
||||||||||
| NET INTEREST INCOME |
9,195 |
9,837 |
10,123 |
9,942 |
9,862 |
(6.5) |
(6.8) |
||||||||||
| Provision for credit losses |
8,370 |
4,035 |
3,650 |
5,395 |
6,390 |
107.4 |
31.0 |
||||||||||
| NET INTEREST INCOME AFTER PROVISION |
|||||||||||||||||
| FOR CREDIT LOSSES |
825 |
5,802 |
6,473 |
4,547 |
3,472 |
(85.8) |
(76.2) |
||||||||||
| NONINTEREST INCOME |
|||||||||||||||||
| Service charges on deposit accounts |
648 |
700 |
697 |
744 |
704 |
(7.4) |
(8.0) |
||||||||||
| Trust and investment fee income |
423 |
380 |
389 |
418 |
376 |
11.3 |
12.5 |
||||||||||
| Investment securities gains |
- |
128 |
354 |
2 |
79 |
(100.0) |
(100.0) |
||||||||||
| Insurance agency commissions |
2,689 |
2,061 |
2,312 |
2,475 |
2,510 |
30.5 |
7.1 |
||||||||||
| Other noninterest income |
814 |
750 |
771 |
742 |
726 |
8.5 |
12.1 |
||||||||||
| Total noninterest income |
4,574 |
4,019 |
4,523 |
4,381 |
4,395 |
13.8 |
4.1 |
||||||||||
| NONINTEREST EXPENSE |
|||||||||||||||||
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