Shore Bancshares Reports First Quarter 2013 Financial Results
EASTON, Md., April 23, 2013 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) reported net income of $222 thousand or $0.03 per diluted common share for the first quarter of 2013, compared to a net loss of $5.1 million or ($0.60) per diluted common share for the fourth quarter of 2012, and a net loss of $3.0 million or $(0.36) per diluted common share for the first quarter of 2012.
When comparing the first quarter of 2013 to the fourth quarter of 2012, the primary reasons for the difference in results were a $7.5 million decrease in the provision for credit losses and a $1.9 million increase in noninterest income, which were partially offset by an $806 thousand increase in noninterest expenses. The increase in noninterest income was mainly due to a $1.3 million loss incurred during the fourth quarter of 2012 to terminate the ineffective portion of an interest rate cap instrument. When comparing the first quarter of 2013 to the first quarter of 2012, the principal factors driving the difference were a $6.2 million decrease in the provision for credit losses partially offset by a $718 thousand decrease in net interest income.
"We are cautiously optimistic that the modest profitability we achieved during the first three months of 2013 will provide a platform on which we can continue to produce favorable results. The Delmarva economy remains quite soft with many businesses that traditionally service the real estate industry still on the sidelines or permanently out of the market," said W. Moorhead Vermilye, chief executive officer. "The provision for credit losses was $2.2 million for the first quarter, compared to $9.7 million and $8.4 million for the three months ended December 31, 2012 and March 31, 2012, respectively, and we are encouraged that nonperforming assets this quarter declined $4.2 million compared to the linked fourth quarter. We are acutely focused on achieving ongoing progress resolving troubled assets."
Balance Sheet Review
Total assets were $1.105 billion at March 31, 2013, a 6.8% decrease when compared to the $1.186 billion at the end of 2012. Total loans increased slightly to $785.8 million when compared to December 31, 2012, while total earning assets decreased 7.2% to $1.027 billion primarily due to a decline in interest-bearing deposits with other banks. Total deposits decreased 7.5% to $970.2 million mainly due to a decline in money market deposit accounts associated with the Company's participation in the Promontory Insured Network Deposits Program ("IND Program"). In December 2012, the Company decided to partially exit the IND Program as a way to decrease its excess liquidity. Total stockholders' equity remained relatively unchanged from the end of 2012. For the first three months of 2013, the ratio of average equity to average assets was 10.18% and the ratio of average tangible equity to average tangible assets was 8.86%, evidence that our capital levels remain well above regulatory minimums to be considered well-capitalized.
Review of Quarterly Financial Results
Net interest income was $8.5 million for the first quarter of 2013, compared to $8.4 million for the fourth quarter of 2012 and $9.2 million for the first quarter of 2012. The increase in net interest income when compared to the fourth quarter of 2012 was primarily due to a decline in interest expense that was more than enough to offset the decline in interest income. The reduced interest expense was mainly the result of lower balances in money market and savings deposits due to partially exiting the IND Program, and lower rates paid on these deposits due to terminating a portion of the interest rate caps associated with these deposits. The decrease in net interest income when compared to the first quarter of 2012 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 3.30% for the first quarter of 2013, 3.02% for the fourth quarter of 2012 and 3.42% for the first quarter of 2012.
The provision for credit losses was $2.2 million for the three months ended March 31, 2013. The comparable amounts were $9.7 million and $8.4 million for the three months ended December 31, 2012 and March 31, 2012, respectively. The lower level of provision for credit losses was primarily due to a lower level of loan charge-offs and a decrease in nonaccrual loans. Net charge-offs were $2.4 million for the first quarter of 2013, $6.6 million for the fourth quarter of 2012 and $9.1 million for the first quarter of 2012. The charge offs in all three quarters were mainly real estate related loans. The ratio of quarter-to-date annualized net charge-offs to average loans was 1.25% for the first quarter of 2013, 3.29% for the fourth quarter of 2012 and 4.40% for the first quarter of 2012. The ratio of the allowance for credit losses to period-end loans was 2.00% at March 31, 2013, compared to 2.04% at December 31, 2012 and 1.65% at March 31, 2012.
Nonperforming assets at March 31, 2013 decreased $4.2 million when compared to December 31, 2012. This decrease included a $5.1 million decline in nonaccrual and 90 days past due and still accruing loans, net of a $707 thousand increase in other real estate owned and a $192 thousand increase in accruing troubled debt restructurings. The change in the components of nonperforming assets reflected our continued effort either to develop concessionary workouts relating to problem loans or remove problem loans from our portfolio. Nonperforming assets at March 31, 2013 decreased $1.9 million when compared to March 31, 2012. Nonaccrual and 90 days past due and still accruing loans, and other real estate owned declined in aggregate $24.4 million while troubled debt restructurings increased $22.5 million. The ratio of nonperforming assets to total assets was 8.40% at March 31, 2013, compared to 8.18% at December 31, 2012 and 8.09% at March 31, 2012.
Total noninterest income for the first quarter of 2013 increased $1.9 million when compared to the fourth quarter of 2012 and declined $84 thousand when compared to the first quarter of 2012. The increase when compared to the fourth quarter of 2012 was primarily a result of the previously mentioned $1.3 million loss incurred during the fourth quarter of 2012 to terminate a portion of an interest rate cap instrument. Also contributing to the increase were higher insurance agency commissions of $521 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 decrease in noninterest income during the first quarter of 2013 when compared to the first quarter of 2012 was primarily due to lower service charges on deposit accounts ($76 thousand) and other noninterest income ($99 thousand ) which was partially offset by an increase in insurance agency commissions ($124 thousand), resulting from higher contingency payments. The change in other noninterest income was mainly due to a decline in income from other real estate owned.
Total noninterest expense for the first quarter of 2013 increased $806 thousand when compared to the fourth quarter of 2012 and remained flat when compared to the first quarter of 2012. The change from the fourth quarter of 2012 was mainly due to employee benefits which increased $211 thousand and other noninterest expenses which increased $433 thousand. Employee benefits included higher payroll taxes ($128 thousand) and group insurance costs ($87 thousand) while other noninterest expenses included higher write-downs of other real estate owned ($421 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; an insurance premium finance company, Mubell Finance, LLC; and a registered investment adviser firm, Wye Financial Services, LLC. 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".
| Shore Bancshares, Inc. |
Page 4 of 11 |
|||||
| Financial Highlights |
||||||
| (Dollars in thousands, except per share data) |
||||||
| For the Three Months Ended |
||||||
| March 31, |
||||||
| 2013 |
2012 |
Change |
||||
| PROFITABILITY FOR THE PERIOD |
||||||
| Net interest income |
$ 8,477 |
$ 9,195 |
(7.8) |
% |
||
| Provision for credit losses |
2,150 |
8,370 |
(74.3) |
|||
| Noninterest income |
4,490 |
4,574 |
(1.8) |
|||
| Noninterest expense |
10,491 |
10,498 |
(0.1) |
|||
| Income (loss) before income taxes |
326 |
(5,099) |
106.4 |
|||
| Income tax expense (benefit) |
104 |
(2,063) |
105.0 |
|||
| Net income (loss) |
$ 222 |
$ (3,036) |
107.3 |
|||
| Return on average assets |
0.08 |
% |
(1.05) |
% |
113 |
bp |
| Return on average equity |
0.79 |
(10.04) |
1,083 |
|||
| Return on average tangible equity (1) |
1.11 |
(11.33) |
1,244 |
|||
| Net interest margin |
3.30 |
3.42 |
(12) |
|||
| Efficiency ratio - GAAP |
80.74 |
75.98 |
476 |
|||
| Efficiency ratio - Non-GAAP (1) |
80.17 |
75.07 |
510 |
|||
| PER SHARE DATA |
||||||
| Basic net income (loss) per common share |
$ 0.03 |
$ (0.36) |
108.3 |
% |
||
| Diluted net income (loss) per common share |
0.03 |
(0.36) |
108.3 |
|||
| Dividends paid per common share |
- |
0.01 |
(100.0) |
|||
| Book value per common share at period end |
13.51 |
14.02 |
(3.6) |
|||
| Tangible book value per common share at period end (1) |
11.60 |
12.07 |
(3.9) |
|||
| Market value at period end |
6.79 |
7.09 |
(4.2) |
|||
| Market range: |
||||||
| High |
6.91 |
7.40 |
(6.6) |
|||
| Low |
5.20 |
4.91 |
5.9 |
|||
| AVERAGE BALANCE SHEET DATA |
||||||
| Loans |
$ 783,757 |
$ 832,585 |
(5.9) |
% |
||
| Securities |
146,756 |
134,037 |
9.5 |
|||
| Earning assets |
1,044,755 |
1,088,106 |
(4.0) |
|||
| Assets |
1,122,310 |
1,159,566 |
(3.2) |
|||
| Deposits |
987,325 |
1,011,170 |
(2.4) |
|||
| Stockholders' equity |
114,250 |
121,658 |
(6.1) |
|||
| CREDIT QUALITY DATA AT PERIOD END |
||||||
| Net charge-offs |
$ 2,406 |
$ 9,114 |
(73.6) |
% |
||
| Nonaccrual loans |
$ 31,813 |
$ 49,405 |
(35.6) |
|||
| Loans 90 days past due and still accruing |
22 |
3,796 |
(99.4) |
|||
| Accruing troubled debt restructurings |
52,545 |
30,010 |
75.1 |
|||
| Total nonperforming loans |
84,380 |
83,211 |
1.4 |
|||
| Other real estate and other assets owned, net |
8,366 |
11,418 |
(26.7) |
|||
| Total nonperforming assets |
$ 92,746 |
$ 94,629 |
(2.0) |
|||
| CAPITAL AND CREDIT QUALITY RATIOS |
||||||
| Average equity to average assets |
10.18 |
% |
10.49 |
% |
(31) |
bp |
| Average tangible equity to average tangible assets (1) |
8.86 |
9.19 |
(33) |
|||
| Annualized net charge-offs to average loans |
1.25 |
4.40 |
(315) |
|||
| Allowance for credit losses to period-end loans |
2.00 |
1.65 |
35 |
|||
| Allowance for credit losses to nonaccrual loans |
49.46 |
27.41 |
2,205 |
|||
| Allowance for credit losses to nonperforming loans |
18.65 |
16.28 |
237 |
|||
| Nonaccrual loans to total loans |
4.05 |
6.03 |
(198) |
|||
| Nonaccrual loans to total assets |
2.88 |
4.22 |
(134) |
|||
| Nonperforming assets to total loans+other real estate and |
||||||
| other assets owned |
11.68 |
11.40 |
28 |
|||
| Nonperforming assets to total assets |
8.40 |
8.09 |
31 |
|||
| (1) See the reconciliation table on page 11 of 11. |
||||||
| Shore Bancshares, Inc. |
Page 5 of 11 |
|||||||||
| Consolidated Balance Sheets |
||||||||||
| (In thousands, except per share data) |
||||||||||
| March 31, 2013 |
March 31, 2013 |
|||||||||
| March 31, |
December 31, |
March 31, |
compared to |
compared to |
||||||
| 2013 |
2012 |
2012 |
December 31, 2012 |
March 31, 2012 |
||||||
| ASSETS |
||||||||||
| Cash and due from banks |
$ 24,808 |
$ 26,579 |
$ 19,168 |
(6.7) |
% |
29.4 |
% |
|||
| Interest-bearing deposits with other banks |
94,090 |
164,864 |
130,641 |
(42.9) |
(28.0) |
|||||
| Federal funds sold |
2,789 |
8,750 |
16,190 |
(68.1) |
(82.8) |
|||||
| Investments available for sale (at fair value) |
142,238 |
145,508 |
121,093 |
(2.2) |
17.5 |
|||||
| Investments held to maturity |
2,594 |
2,657 |
6,056 |
(2.4) |
(57.2) |
|||||
| Loans |
785,753 |
785,082 |
819,015 |
0.1 |
(4.1) |
|||||
| Less: allowance for credit losses |
(15,735) |
(15,991) |
(13,544) |
(1.6) |
16.2 |
|||||
| Loans, net |
770,018 |
769,091 |
805,471 |
0.1 |
(4.4) |
|||||
| Premises and equipment, net |
15,502 |
15,593 |
15,243 |
(0.6) |
1.7 |
|||||
| Goodwill |
12,454 |
12,454 |
12,454 |
- |
- |
|||||
| Other intangible assets, net |
3,742 |
3,816 |
4,082 |
(1.9) |
(8.3) |
|||||
| Other real estate and other assets owned, net |
8,366 |
7,659 |
11,418 |
9.2 |
(26.7) |
|||||
| Other assets |
28,010 |
28,836 |
27,905 |
(2.9) |
0.4 |
|||||
| Total assets |
$ 1,104,611 |
$ 1,185,807 |
$ 1,169,721 |
(6.8) |
(5.6) |
|||||
| LIABILITIES |
||||||||||
| Noninterest-bearing deposits |
$ 155,412 |
$ 153,992 |
$ 143,800 |
0.9 |
8.1 |
|||||
| Interest-bearing deposits |
814,747 |
895,281 |
884,271 |
(9.0) |
(7.9) |
|||||
| Total deposits |
970,159 |
1,049,273 |
1,028,071 |
(7.5) |
(5.6) |
|||||
| Short-term borrowings |
11,088 |
13,761 |
13,683 |
(19.4) |
(19.0) |
|||||
| Accrued expenses and other liabilities |
9,016 |
8,747 |
8,928 |
3.1 |
1.0 |
|||||
| Long-term debt |
- |
- |
455 |
- |
(100.0) |
|||||
| Total liabilities |
990,263 |
1,071,781 |
1,051,137 |
(7.6) |
(5.8) |
|||||
| STOCKHOLDERS' EQUITY |
||||||||||
| Common stock, par value $0.01; authorized |
||||||||||
| 35,000,000 shares |
85 |
85 |
85 |
- |
- |
|||||
| Additional paid in capital |
32,151 |
32,155 |
32,066 |
- |
0.3 |
|||||
| Retained earnings |
81,300 |
81,078 |
87,680 |
0.3 |
(7.3) |
|||||
| Accumulated other comprehensive income (loss) |
812 |
708 |
(1,247) |
14.7 |
165.1 |
|||||
| Total stockholders' equity |
114,348 |
114,026 |
118,584 |
0.3 |
(3.6) |
|||||
| Total liabilities and stockholders' equity |
$ 1,104,611 |
$ 1,185,807 |
$ 1,169,721 |
(6.8) |
(5.6) |
|||||
| Period-end common shares outstanding |
8,461 |
8,457 |
8,457 |
- |
- |
|||||
| Book value per common share |
$ 13.51 |
$ 13.48 |
$ 14.02 |
0.2 |
(3.6) |
|||||
| Shore Bancshares, Inc. |
Page 6 of 11 |
||||
| Consolidated Statements of Operations |
|||||
| (In thousands, except per share data) |
|||||
| For the Three Months Ended |
|||||
| March 31, |
|||||
| 2013 |
2012 |
% Change |
|||
| INTEREST INCOME |
|||||
| Interest and fees on loans |
$ 9,907 |
$ 11,011 |
(10.0) |
% |
|
| Interest and dividends on investment securities: |
|||||
| Taxable |
643 |
757 |
(15.1) |
||
| Tax-exempt |
5 |
38 |
(86.8) |
||
| Interest on federal funds sold |
2 |
2 |
- |
||
| Interest on deposits with other banks |
50 |
48 |
4.2 |
||
| Total interest income |
10,607 |
11,856 |
(10.5) |
||
| INTEREST EXPENSE |
|||||
| Interest on deposits |
2,122 |
2,641 |
(19.7) |
||
| Interest on short-term borrowings |
8 |
15 |
(46.7) |
||
| Interest on long-term debt |
- |
5 |
(100.0) |
||
| Total interest expense |
2,130 |
2,661 |
(20.0) |
||
| NET INTEREST INCOME |
8,477 |
9,195 |
(7.8) |
||
| Provision for credit losses |
2,150 |
8,370 |
(74.3) |
||
| NET INTEREST INCOME AFTER PROVISION |
|||||
| FOR CREDIT LOSSES |
6,327 |
825 |
666.9 |
||
| NONINTEREST INCOME |
|||||
| Service charges on deposit accounts |
572 |
648 |
(11.7) |
||
| Trust and investment fee income |
390 |
423 |
(7.8) |
||
| Investment securities gains |
- |
- |
- |
||
| Insurance agency commissions |
2,813 |
2,689 |
4.6 |
||
| Other noninterest income |
715 |
814 |
(12.2) |
||
| Total noninterest income |
4,490 |
4,574 |
(1.8) |
||
| NONINTEREST EXPENSE |
|||||
| Salaries and wages |
4,283 |
4,416 |
(3.0) |
||
| Employee benefits |
1,134 |
1,170 |
(3.1) |
||
| Occupancy expense |
597 |
687 |
(13.1) |
||
| Furniture and equipment expense |
250 |
251 |
(0.4) |
||
| Data processing |
703 |
666 |
5.6 |
||
| Directors' fees |
121 |
109 |
11.0 |
||
| Amortization of intangible assets |
74 |
126 |
(41.3) |
||
| Insurance agency commissions expense |
461 |
385 |
19.7 |
||
| FDIC insurance premium expense |
366 |
273 |
34.1 |
||
| Other noninterest expenses |
2,502 |
2,415 |
3.6 |
||
| Total noninterest expense |
10,491 |
10,498 |
(0.1) |
||
| Income (loss) before income taxes |
326 |
(5,099) |
106.4 |
||
| Income tax expense (benefit) |
104 |
(2,063) |
105.0 |
||
| NET INCOME (LOSS) |
$ 222 |
$ (3,036) |
107.3 |
||
| Weighted average shares outstanding - basic |
8,458 |
8,457 |
- |
||
| Weighted average shares outstanding - diluted |
8,458 |
8,457 |
- |
||
| Basic net income (loss) per common share |
$ 0.03 |
$ (0.36) |
108.3 |
||
| Diluted net income (loss) per common share |
0.03 |
(0.36) |
108.3 |
||
| Dividends paid per common share |
- |
0.01 |
(100.0) |
||
| Shore Bancshares, Inc. |
Page 7 of 11 |
|||||||||
| Consolidated Average Balance Sheets |
||||||||||
| (Dollars in thousands) |
||||||||||
| For the Three Months Ended |
||||||||||
| March 31, |
||||||||||
| 2013 |
2012 |
|||||||||
| Average |
Yield/ |
Average |
Yield/ |
|||||||
| balance |
rate |
balance |
rate |
|||||||
| Earning assets |
||||||||||
| Loans |
$ 783,757 |
5.14 |
% |
$ 832,585 |
5.33 |
% |
||||
| Investment securities |
||||||||||
| Taxable |
146,176 |
1.78 |
129,767 |
2.35 |
||||||
| Tax-exempt |
580 |
4.85 |
4,270 |
5.36 |
||||||
| Federal funds sold |
8,184 |
0.11 |
9,794 |
0.06 |
||||||
| Interest-bearing deposits |
106,058 |
0.19 |
111,690 |
0.17 |
||||||
| Total earning assets |
1,044,755 |
4.13 |
% |
1,088,106 |
4.40 |
% |
||||
| Cash and due from banks |
24,966 |
18,174 |
||||||||
| Other assets |
69,185 |
68,163 |
||||||||
| Allowance for credit losses |
(16,596) |
(14,877) |
||||||||
| Total assets |
$ 1,122,310 |
$ 1,159,566 |
||||||||
| Interest-bearing liabilities |
||||||||||
| Demand deposits |
$ 173,714 |
0.17 |
% |
$ 153,291 |
0.19 |
% |
||||
| Money market and savings deposits (1) |
244,182 |
0.97 |
279,355 |
1.12 |
||||||
| Certificates of deposit $100,000 or more |
216,288 |
1.39 |
240,521 |
1.46 |
||||||
| Other time deposits |
201,171 |
1.47 |
201,743 |
1.83 |
||||||
| Interest-bearing deposits |
835,355 |
1.03 |
874,910 |
1.21 |
||||||
| Short-term borrowings |
11,987 |
0.27 |
17,621 |
0.35 |
||||||
| Long-term debt |
- |
- |
455 |
4.63 |
||||||
| Total interest-bearing liabilities |
847,342 |
1.02 |
% |
892,986 |
1.20 |
% |
||||
| Noninterest-bearing deposits |
151,970 |
136,260 |
||||||||
| Accrued expenses and other liabilities |
8,748 |
8,662 |
||||||||
| Stockholders' equity |
114,250 |
121,658 |
||||||||
| Total liabilities and stockholders' equity |
$ 1,122,310 |
$ 1,159,566 |
||||||||
| Net interest spread |
3.11 |
% |
3.20 |
% |
||||||
| Net interest margin |
3.30 |
% |
3.42 |
% |
||||||
| (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 $416 thousand and $460 thousand for the first quarter of 2013 and 2012, respectively. |
| 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 13 |
1Q 13 |
||||||||
| 2013 |
2012 |
2012 |
2012 |
2012 |
compared to |
compared to |
||||||||
| (1Q 13) |
(4Q 12) |
(3Q 12) |
(2Q 12) |
(1Q 12) |
4Q 12 |
1Q 12 |
||||||||
| PROFITABILITY FOR THE PERIOD |
||||||||||||||
| Taxable-equivalent net interest income |
$ 8,504 |
$ 8,413 |
$ 8,769 |
$ 9,077 |
$ 9,243 |
1.1 |
% |
(8.0) |
% |
|||||
| Less: Taxable-equivalent adjustment |
27 |
32 |
39 |
44 |
48 |
(15.6) |
(43.8) |
|||||||
| Net interest income |
8,477 |
8,381 |
8,730 |
9,033 |
9,195 |
1.1 |
(7.8) |
|||||||
| Provision for credit losses |
2,150 |
9,650 |
6,200 |
3,525 |
8,370 |
(77.7) |
(74.3) |
|||||||
| Noninterest income |
4,490 |
2,606 |
4,001 |
4,577 |
4,574 |
72.3 |
(1.8) |
|||||||
| Noninterest expense |
10,491 |
9,685 |
9,709 |
9,663 |
10,498 |
8.3 |
(0.1) |
|||||||
| Income (loss) before income taxes |
326 |
(8,348) |
(3,178) |
422 |
(5,099) |
103.9 |
106.4 |
|||||||
| Income tax expense (benefit) |
104 |
(3,274) |
(1,357) |
129 |
(2,063) |
103.2 |
105.0 |
|||||||
| Net income (loss) |
$ 222 |
$ (5,074) |
$ (1,821) |
$ 293 |
$ (3,036) |
104.4 |
107.3 |
|||||||
| Return on average assets |
0.08 |
% |
(1.71) |
% |
(0.61) |
% |
0.10 |
% |
(1.05) |
% |
179 |
bp |
113 |
bp |
| Return on average equity |
0.79 |
(17.15) |
(6.07) |
0.99 |
(10.04) |
1,794 |
1,083 |
|||||||
| Return on average tangible equity (1) |
1.11 |
(19.73) |
(6.82) |
1.38 |
(11.33) |
2,084 |
1,244 |
|||||||
| Net interest margin |
3.30 |
3.02 |
3.15 |
3.36 |
3.42 |
28 |
(12) |
|||||||
| Efficiency ratio - GAAP |
80.74 |
87.89 |
76.03 |
70.77 |
75.98 |
(715) |
476 |
|||||||
| Efficiency ratio - Non-GAAP (1) |
80.17 |
77.77 |
76.95 |
71.20 |
75.07 |
240 |
510 |
|||||||
| PER SHARE DATA |
||||||||||||||
| Basic net income (loss) per common share |
$ 0.03 |
$ (0.60) |
$ (0.22) |
$ 0.03 |
$ (0.36) |
105.0 |
% |
108.3 |
% |
|||||
| Diluted net income (loss) per common share |
0.03 |
(0.60) |
(0.22) |
0.03 |
(0.36) |
105.0 |
108.3 |
|||||||
| Dividends paid per common share |
- |
- |
- |
- |
0.01 |
- |
(100.0) |
|||||||
| Book value per common share at period end |
13.51 |
13.48 |
13.97 |
14.13 |
14.02 |
0.2 |
(3.6) |
|||||||
| Tangible book value per common share at period end (1) |
11.60 |
11.56 |
12.04 |
12.18 |
12.07 |
0.3 |
(3.9) |
|||||||
| Market value at period end |
6.79 |
5.39 |
6.02 |
5.98 |
7.09 |
26.0 |
(4.2) |
|||||||
| Market range: |
||||||||||||||
| High |
6.91 |
6.98 |
6.33 |
7.45 |
7.40 |
(1.0) |
(6.6) |
|||||||
| Low |
5.20 |
4.65 |
4.98 |
5.51 |
4.91 |
11.8 |
5.9 |
|||||||
| AVERAGE BALANCE SHEET DATA |
||||||||||||||
| Loans |
$ 783,757 |
$ 799,512 |
$ 808,244 |
$ 816,553 |
$ 832,585 |
(2.0) |
% |
(5.9) |
% |
|||||
| Securities |
146,756 |
144,459 |
137,871 |
134,299 |
134,037 |
1.6 |
9.5 |
|||||||
| Earning assets |
1,044,755 |
1,108,585 |
1,108,256 |
1,086,223 |
1,088,106 |
(5.8) |
(4.0) |
|||||||
| Assets |
1,122,310 |
1,183,135 |
1,184,146 |
1,163,598 |
1,159,566 |
(5.1) |
(3.2) |
|||||||
| Deposits |
987,325 |
1,042,842 |
1,040,693 |
1,021,130 |
1,011,170 |
(5.3) |
(2.4) |
|||||||
| Stockholders' equity |
114,250 |
117,700 |
119,321 |
118,774 |
121,658 |
(2.9) |
(6.1) |
|||||||
| CREDIT QUALITY DATA AT PERIOD END |
||||||||||||||
| Net charge-offs |
$ 2,406 |
$ 6,614 |
$ 6,235 |
$ 4,079 |
$ 9,114 |
(63.6) |
% |
(73.6) |
% |
|||||
| Nonaccrual loans |
$ 31,813 |
$ 36,474 |
$ 39,442 |
$ 47,958 |
$ 49,405 |
(12.8) |
(35.6) |
|||||||
| Loans 90 days past due and still accruing |
22 |
460 |
4,675 |
3,519 |
3,796 |
(95.2) |
(99.4) |
|||||||
| Accruing troubled debt restructurings |
52,545 |
52,353 |
50,785 |
37,231 |
30,010 |
0.4 |
75.1 |
|||||||
| Total nonperforming loans |
84,380 |
89,287 |
94,902 |
88,708 |
83,211 |
(5.5) |
1.4 |
|||||||
| Other real estate and other assets owned, net |
8,366 |
7,659 |
8,418 |
11,499 |
11,418 |
9.2 |
(26.7) |
|||||||
| Total nonperforming assets |
$ 92,746 |
$ 96,946 |
$ 103,320 |
$ 100,207 |
$ 94,629 |
(4.3) |
(2.0) |
|||||||
| CAPITAL AND CREDIT QUALITY RATIOS |
||||||||||||||
| Average equity to average assets |
10.18 |
% |
9.95 |
% |
10.08 |
% |
10.21 |
% |
10.49 |
% |
23 |
bp |
(31) |
bp |
| Average tangible equity to average tangible assets (1) |
8.86 |
8.69 |
8.81 |
8.92 |
9.19 |
17 |
(33) |
|||||||
| Annualized net charge-offs to average loans |
1.25 |
3.29 |
3.07 |
2.01 |
4.40 |
(204) |
(315) |
|||||||
| Allowance for credit losses to period-end loans |
2.00 |
2.04 |
1.60 |
1.60 |
1.65 |
(4) |
35 |
|||||||
| Allowance for credit losses to nonaccrual loans |
49.46 |
43.84 |
32.85 |
27.09 |
27.41 |
562 |
2,205 |
|||||||
| Allowance for credit losses to nonperforming loans |
18.65 |
17.91 |
13.65 |
14.64 |
16.28 |
74 |
237 |
|||||||
| Nonaccrual loans to total loans |
4.05 |
4.65 |
4.88 |
5.92 |
6.03 |
(60) |
(198) |
|||||||
| Nonaccrual loans to total assets |
2.88 |
3.08 |
3.35 |
4.08 |
4.22 |
(20) |
(134) |
|||||||
| Nonperforming assets to total loans+other real estate and |
||||||||||||||
| other assets owned |
11.68 |
12.23 |
12.65 |
12.20 |
11.40 |
(55) |
28 |
|||||||
| Nonperforming assets to total assets |
8.40 |
8.18 |
8.77 |
8.53 |
8.09 |
22 |
31 |
|||||||
| (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 13 |
1Q 13 |
|||||||||||||
| compared to |
compared to |
|||||||||||||
| 1Q 13 |
4Q 12 |
3Q 12 |
2Q 12 |
1Q 12 |
4Q 12 |
1Q 12 |
||||||||
| INTEREST INCOME |
||||||||||||||
| Interest and fees on loans |
$ 9,907 |
$ 10,193 |
$ 10,604 |
$ 10,890 |
$ 11,011 |
(2.8) |
% |
(10.0) |
% |
|||||
| Interest and dividends on investment securities: |
||||||||||||||
| Taxable |
643 |
666 |
685 |
707 |
757 |
(3.5) |
(15.1) |
|||||||
| Tax-exempt |
5 |
12 |
22 |
32 |
38 |
(58.3) |
(86.8) |
|||||||
| Interest on federal funds sold |
2 |
3 |
3 |
2 |
2 |
(33.3) |
- |
|||||||
| Interest on deposits with other banks |
50 |
86 |
79 |
61 |
48 |
(41.9) |
4.2 |
|||||||
| Total interest income |
10,607 |
10,960 |
11,393 |
11,692 |
11,856 |
(3.2) |
(10.5) |
|||||||
| INTEREST EXPENSE |
||||||||||||||
| Interest on deposits |
2,122 |
2,570 |
2,647 |
2,643 |
2,641 |
(17.4) |
(19.7) |
|||||||
| Interest on short-term borrowings |
8 |
9 |
10 |
11 |
15 |
(11.1) |
(46.7) |
|||||||
| Interest on long-term debt |
- |
- |
6 |
5 |
5 |
- |
(100.0) |
|||||||
| Total interest expense |
2,130 |
2,579 |
2,663 |
2,659 |
2,661 |
(17.4) |
(20.0) |
|||||||
| NET INTEREST INCOME |
8,477 |
8,381 |
8,730 |
9,033 |
9,195 |
1.1 |
(7.8) |
|||||||
| Provision for credit losses |
2,150 |
9,650 |
6,200 |
3,525 |
8,370 |
(77.7) |
(74.3) |
|||||||
| NET INTEREST INCOME AFTER PROVISION |
||||||||||||||
| FOR CREDIT LOSSES |
6,327 |
(1,269) |
2,530 |
5,508 |
825 |
598.6 |
666.9 |
|||||||
| NONINTEREST INCOME |
||||||||||||||
| Service charges on deposit accounts |
572 |
653 |
628 |
622 |
648 |
(12.4) |
(11.7) |
|||||||
| Trust and investment fee income |
390 |
365 |
410 |
446 |
423 |
6.8 |
(7.8) |
|||||||
| Investment securities gains |
- |
- |
278 |
- |
- |
- |
- |
|||||||
| Insurance agency commissions |
2,813 |
2,292 |
2,427 |
2,406 |
2,689 |
22.7 |
4.6 |
|||||||
| Other noninterest income |
715 |
(704) |
258 |
1,103 |
814 |
201.6 |
(12.2) |
|||||||
| Total noninterest income |
4,490 |
2,606 |
4,001 |
4,577 |
4,574 |
72.3 |
(1.8) |
|||||||
| NONINTEREST EXPENSE |
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