EX-99.1 2 v138212_ex99-1.htm

Exhibit 99.1

Shore Bancshares, Inc.
18 E. Dover Street
Easton, Maryland 21601
Phone 410-822-1400


PRESS RELEASE

Shore Bancshares Reports 2008 Earnings Results

Easton, Maryland (01/28/2009) - Shore Bancshares, Inc. (NASDAQ - SHBI) reported net income of $2.3 million or $0.27 per diluted share for the fourth quarter of 2008, compared to $3.1  million or $0.37 per diluted share for the third quarter of 2008 and $3.3 million or $0.40 per diluted share for the fourth quarter of 2007.  Net income for 2008 was $11.5 million or $1.37 per diluted share, compared to $13.4 million or $1.60 per diluted share for 2007.

“In spite of the current economy, we produced good net income and, even during this tough operating environment for all banks, we think several of the main measures of our performance are encouraging and will turn out to be above peer averages. For instance, our net interest margin has held up well and was 4.24% and 4.23%, for the fourth quarter and full year, respectively,” said W. Moorhead Vermilye, president and chief executive officer.

“Loans grew 14.4% and deposits grew 10.4% during 2008. Stockholders’ equity increased by nearly 6% during the year.  Noninterest revenue advanced 38.6% for 2008 compared to the previous year.”

“We believe overall credit quality is fundamentally sound, although there was predictable deterioration. Our ratio of nonperforming assets to total assets was 0.79% at December 31, 2008. Although year-to-date annualized net charge-offs as a percentage of average loans amounted to 0.19%, we maintained our loan-loss reserve coverage at 1.05% of period-end loans.”

“We believe these statistics are the product of our conservative balance sheet management and a focus on consistent performance. It’s also evidence of the determined efforts of our people to further grow our leadership position across the company’s Delmarva footprint. Even in this unprecedented banking environment, we think we’ve done a good job of solidifying our reputation as the bank of choice for area customers and the employer of choice for the top bankers here,” according to Vermilye.

The Company’s return on average assets for the fourth quarter of 2008 was 0.87%, compared to 1.19% and 1.40% for the quarters ended September 30, 2008 and December 31, 2007, respectively.  The return on average stockholders’ equity was 7.11% for the fourth quarter of 2008, compared to 9.81% for the third quarter of 2008 and 11.78% for the fourth quarter of 2007.

The Company’s return on average assets for 2008 was 1.13%, compared to 1.42% for 2007.  The return on average stockholders’ equity was 9.22% for 2008, compared to 11.79% for 2007.
 
 
 
 
 
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At December 31, 2008, total assets were $1.045 billion, total deposits were $845.4 million, and total stockholders’ equity was $127.4 million, an increase of 9.2%, 10.4% and 5.9%, respectively, when compared to the same amounts at December 31, 2007. The increase in total assets of $87.7 million since December 31, 2007 related mainly to loan growth, funded primarily by deposit growth.  The growth in loans was $112.2 million, or 14.4%, during 2008, with period-end loans totaling $888.5 million at December 31, 2008.

Review of Quarterly Financial Results
Net interest income for the fourth quarter of 2008 was $10.3 million, an increase of 4.4% from the third quarter of 2008 and a slight decrease from the same period last year.  Higher loan volume and lower cost of funds were the primary reasons for the increase from the third quarter of 2008.  Lower yields on earning assets was the primary reason for the decrease from the fourth quarter of 2007.  The Company’s net interest margin was 4.24% for the fourth quarter of 2008, an increase of 14 basis points when compared to the third quarter of 2008 and a decrease of 46 basis points when compared to the fourth quarter of 2007.

The provision for credit losses was $1.4 million for the three months ended December 31, 2008. The comparable amounts were $875 thousand and $465 thousand for the three months ended September 30, 2008 and December 31, 2007, respectively. The increased provision for the fourth quarter of 2008 when compared to the third quarter of 2008 and the fourth quarter of 2007 reflected the continued growth in the loan portfolio, an increase in nonperforming assets and loan charge-offs, as well as overall economic conditions.  Net charge-offs were $683 thousand for the fourth quarter of 2008, $539 thousand for the third quarter of 2008 and $135 thousand for the fourth quarter of 2007.  Quarter-to-date annualized net charge-offs to average loans was 0.31% for the fourth quarter of 2008, 0.25% for the third quarter of 2008 and 0.06% for the fourth quarter of 2007. Nonperforming assets to total assets was 0.79% at December 31, 2008.  The comparable nonperforming asset ratio was 0.72% at  September 30, 2008 and 0.39% at December 31, 2007.  The allowance for credit losses to period-end loans increased to 1.05% at December 31, 2008, compared to 1.00% at September 30, 2008 and 0.97% at December 31, 2007. Management believes that the provision for credit losses and the resulting allowance were adequate at December 31, 2008.

Total noninterest income for the fourth quarter of 2008 decreased $307 thousand when compared to the fourth quarter of 2007 primarily due to a decline in insurance agency commissions.  Total noninterest income decreased $838 thousand from the third quarter of 2008.  Included in noninterest income for the third quarter of 2008 was a $1.3 million gain on the sale of a bank branch to the State of Maryland as part of a road widening project.  The branch remains open and the bank will move the branch operations to a new facility in the future. The gain on the branch sale was partially offset by a $371 thousand impairment loss 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.  Also contributing to the decrease in noninterest income from the third quarter of 2008 was a $350 thousand decrease in insurance agency commissions.

Total noninterest expense for the fourth quarter of 2008 increased $319 thousand when compared to the fourth quarter of 2007 primarily due to increased salaries and benefits. Total noninterest expense increased $192 thousand from the third quarter of 2008 due to an increase in general operating costs.
 
 
 
 

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Review of 2008 Financial Results
Net interest income for 2008 was $39.9 million, a decrease of 2.7% when compared to 2007.  The decrease was primarily the result of lower yields on earning assets.  The net interest margin declined 41 basis points from 4.64% for 2007 to 4.23% for 2008.

The provisions for credit losses for 2008 and 2007 were $3.3 million and $1.7 million, respectively.  The increased provision in 2008 reflected the overall growth of the loan portfolio, an increase in nonperforming assets and loan charge-offs, and a deterioration in overall economic conditions.  Net charge-offs were $1.6 million and $473 thousand for 2008 and 2007, respectively.  Net charge-offs to average loans was 0.19% for 2008 and 0.06% for 2007.

Total noninterest income for 2008 was $20.3 million, an increase of $5.7 million when compared to 2007.  The increase was primarily due to an increase in insurance agency commissions and other noninterest income.  The increase in insurance agency commissions was primarily due to the acquisition of two insurance agencies during the fourth quarter of 2007.   Noninterest income included the previously mentioned $1.3 million gain on the land and bank building sale, a $371 thousand impairment loss on Freddie Mac Preferred stock and the $337 thousand investment loss.

Total noninterest expense for 2008 was $38.4 million, an increase of $5.8 million when compared to the previous year.  The increase was primarily attributable to the operating expenses of the two insurance agencies acquired during the fourth quarter of 2007. Salaries and benefits increased $3.3 million and other noninterest expenses increased $2.2 million for 2008 when compared to 2007.   The majority of the increase in noninterest expenses, including salaries and benefits, related to the new insurance agencies.

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, The Centreville National Bank of Maryland, 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”.
 
 
#   #   #
 
For further information contact: W. Moorhead Vermilye, President and CEO – 410/819-3047.
 
 
 
 
 
Page 4 of 8
 
Shore Bancshares, Inc.
Financial Highlights
(Dollars in thousands, except per share data)
 
   
For the Three Months Ended
    
For the Twelve Months Ended
  
   
December 31,
    
December 31,
  
   
2008
    
2007
    
% Change
    
2008
    
2007
    
% Change
  
PROFITABILITY FOR THE PERIOD
                                    
Net interest income
   $ 10,348     $ 10,426       (0.7 ) %   $ 39,919     $ 41,036       (2.7 ) %
Provision for credit losses
     1,385       465       197.8       3,337       1,724       93.6  
Noninterest income
     4,408       4,715       (6.5 )     20,350       14,679       38.6  
Noninterest expense
     9,621       9,302       3.4       38,370       32,539       17.9  
Income before income taxes
     3,750       5,374       (30.2 )     18,562       21,452       (13.5 )
Income tax expense
     1,489       2,034       (26.8 )     7,092       8,002       (11.4 )
Net income
   $ 2,261     $ 3,340       (32.3 )   $ 11,470     $ 13,450       (14.7 )
                                                 
                                                 
Return on average assets
     0.87 %     1.40 %     (37.9 ) %     1.13 %     1.42 %     (20.4 ) %
Return on average equity
     7.11       11.78       (39.6 )     9.22       11.79       (21.8 )
Net interest margin
     4.24       4.70       (9.8 )     4.23       4.64       (8.8 )
Efficiency ratio - GAAP based
     65.20       61.44       6.1       63.66       58.40       9.0  
                                                 
                                                 
PER SHARE DATA
                                                
Basic net income
   $ 0.27     $ 0.40       (32.5 ) %   $ 1.37     $ 1.61       (14.9 ) %
Diluted net income
     0.27       0.40       (32.5 )     1.37       1.60       (14.4 )
Dividends paid
     0.16       0.16       -       0.64       0.64       -  
Book value at period end
     15.16       14.35       5.6                          
Tangible book value at period end
     12.55       11.68       7.4                          
Market value at period end
     23.99       21.95       9.3                          
Market range:
                                                
High
     25.97       24.72       5.1       27.25       30.76       (11.4 )
Low
     17.50       20.00       (12.5 )     17.50       20.00       (12.5 )
                                                 
                                                 
AT PERIOD END
                                                
Loans
   $ 888,528     $ 776,350       14.4 %                        
Securities
     89,456       110,033       (18.7 )                        
Assets
     1,044,641       956,911       9.2                          
Deposits
     845,371       765,895       10.4                          
Stockholders' equity
     127,385       120,235       5.9                          
                                                 
                                                 
CAPITAL AND CREDIT QUALITY RATIOS
                                          
Average equity to average assets
     12.22 %     11.91 %             12.30 %     12.04 %        
Annualized net charge-offs to average loans
     0.31       0.06               0.19       0.06          
Allowance for credit losses to period-end loans
     1.05       0.97                                  
Nonperforming assets to total assets
     0.79       0.39                                  
 
 
 
 
 
 
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Shore Bancshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
               
Dec. 31, 2008
  
   
Dec. 31,
    
Dec. 31,
    
compared to
  
   
2008
    
2007
    
Dec. 31, 2007
  
ASSETS
                  
Cash and due from banks
   $ 16,803     $ 17,198       (2.3 ) %
Interest-bearing deposits with other banks
     481       3,036       (84.2 )
Federal funds sold
     10,010       6,646       50.6  
Investments available-for-sale (at fair value)
     79,204       97,137       (18.5 )
Investments held-to-maturity
     10,252       12,896       (20.5 )
                         
Loans
     888,528       776,350       14.4  
Less: allowance for credit losses
     (9,320 )     (7,551 )     23.4  
Loans, net
     879,208       768,799       14.4  
                         
Premises and equipment, net
     13,855       15,617       (11.3 )
Accrued interest receivable
     4,606       5,008       (8.0 )
Goodwill
     15,954       15,954       -  
Other intangible assets, net
     5,921       6,436       (8.0 )
Other real estate owned
     148       176       (15.9 )
Other assets
     8,199       8,008       2.4  
                         
Total assets
   $ 1,044,641     $ 956,911       9.2  
                         
LIABILITIES
                        
Noninterest-bearing deposits
   $ 102,584     $ 104,081       (1.4 )
Interest-bearing deposits
     742,787       661,814       12.2  
Total deposits
     845,371       765,895       10.4  
                         
Short-term borrowings
     52,969       47,694       11.1  
Long-term debt
     7,947       12,485       (36.3 )
Accrued interest payable and other liabilities
     10,969       10,602       3.5  
Total liabilities
     917,256       836,676       9.6  
                         
STOCKHOLDERS' EQUITY
                        
Common stock, par value $0.01; authorized
                        
35,000,000 shares
     84       84       -  
Additional paid in capital
     29,768       29,539       0.8  
Retained earnings
     96,140       90,365       6.4  
Accumulated other comprehensive income (loss)
     1,393       247       464.0  
Total stockholders' equity
     127,385       120,235       5.9  
                         
Total liabilities and stockholders' equity
   $ 1,044,641     $ 956,911       9.2  
                         
Period-end shares outstanding
     8,405       8,381       0.3  
Book value per share
   $ 15.16     $ 14.35       5.6  
 
 
 
 
 
Page 6 of 8
 
Shore Bancshares, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
   
For the Three Months Ended
    
For the Twelve Months Ended
  
   
December 31,
    
December 31,
  
   
2008
    
2007
    
% Change
    
2008
    
2007
    
% Change
  
INTEREST INCOME
                                    
Interest and fees on loans
   $ 14,166     $ 14,958       (5.3 )  %   $ 56,866     $ 57,524       (1.1 )  %
Interest and dividends on investment securities:
                                                
Taxable
     839       1,205       (30.4 )     3,788       5,105       (25.8 )
Tax-exempt
     93       124       (25.0 )     420       511       (17.8 )
Interest on federal funds sold
     24       120       (80.0 )     308       1,108       (72.2 )
Interest on deposits with other banks
     4       46       (91.3 )     92       893       (89.7 )
Total interest income
     15,126       16,453       (8.1 )     61,474       65,141       (5.6 )
                                                 
INTEREST EXPENSE
                                                
Interest on deposits
     4,582       5,430       (15.6 )     19,877       21,693       (8.4 )
Interest on short-term borrowings
     121       426       (71.6 )     1,147       1,264       (9.3 )
Interest on long-term debt
     75       171       (56.1 )     531       1,148       (53.7 )
Total interest expense
     4,778       6,027       (20.7 )     21,555       24,105       (10.6 )
                                                 
NET INTEREST INCOME
     10,348       10,426       (0.7 )     39,919       41,036       (2.7 )
Provision for credit losses
     1,385       465       197.8       3,337       1,724       93.6  
                                                 
NET INTEREST INCOME AFTER PROVISION
                                          
FOR CREDIT LOSSES
     8,963       9,961       (10.0 )     36,582       39,312       (6.9 )
                                                 
NONINTEREST INCOME
                                                
Service charges on deposit accounts
     889       952       (6.6 )     3,600       3,372       6.8  
Investment securities gains (losses)
     (15 )     4       (475.0 )     (15 )     5       (400.0 )
Other than temporary impairment of securities
     -       -       -       (371 )     -       -  
Insurance agency commissions
     2,495       2,694       (7.4 )     12,090       7,698       57.1  
Other noninterest income
     1,039       1,065       (2.4 )     5,046       3,604       40.0  
Total noninterest income
     4,408       4,715       (6.5 )     20,350       14,679       38.6  
                                                 
NONINTEREST EXPENSE
                                                
Salaries and employee benefits
     5,776       5,520       4.6       23,321       19,991       16.7  
Occupancy expense
     585       518       12.9       2,179       1,962       11.1  
Furniture and equipment expense
     291       324       (10.2 )     1,185       1,312       (9.7 )
Data processing
     476       467       1.9       1,872       1,820       2.9  
Directors' fees
     132       178       (25.8 )     558       605       (7.8 )
Amortization of intangible assets
     129       130       (0.8 )     515       333       54.7  
Other noninterest expenses
     2,232       2,165       3.1       8,740       6,516       34.1  
Total noninterest expense
     9,621       9,302       3.4       38,370       32,539       17.9  
                                                 
Income before income taxes
     3,750       5,374       (30.2 )     18,562       21,452       (13.5 )
Income tax expense
     1,489       2,034       (26.8 )     7,092       8,002       (11.4 )
                                                 
NET INCOME
   $ 2,261     $ 3,340       (32.3 )   $ 11,470     $ 13,450       (14.7 )
                                                 
Weighted average shares outstanding - basic
     8,388       8,380       0.1       8,384       8,380       -  
Weighted average shares outstanding - diluted
     8,394       8,391       -       8,391       8,394       -  
                                                 
Basic net income per share
   $ 0.27     $ 0.40       (32.5 )   $ 1.37     $ 1.61       (14.9 )
Diluted net income per share
     0.27       0.40       (32.5 )     1.37       1.60       (14.4 )
Dividends paid per share
     0.16       0.16       -       0.64       0.64       -  
 
 
 
 
 
Page 7 of 8
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 08
      
4Q 08
  
   
2008
    
2008
    
2008
    
2008
    
2007
    
compared to
    
compared to
  
   
(4Q 08)
    
(3Q 08)
    
(2Q 08)
    
(1Q 08)
    
(4Q 07)
    
3Q 08
    
4Q 07
  
PROFITABILITY FOR THE PERIOD
                              
 
                  
Net interest income
   $ 10,348     $ 9,909     $ 9,632     $ 10,030     $ 10,426       4.4 %     (0.7 ) %
Provision for credit losses
     1,385       875       615       462       465       58.3       197.8  
Noninterest income
     4,408       5,246       5,194       5,502       4,715       (16.0 )     (6.5 )
Noninterest expense
     9,621       9,429       9,729       9,591       9,302       2.0       3.4  
Income before income taxes
     3,750       4,851       4,482       5,479       5,374       (22.7 )     (30.2 )
Income tax expense
     1,489       1,780       1,716       2,107       2,034       (16.3 )     (26.8 )
Net income
   $ 2,261     $ 3,071     $ 2,766     $ 3,372     $ 3,340       (26.4 )     (32.3 )
                                                         
                                                         
Return on average assets
     0.87 %     1.19 %     1.12 %     1.38 %     1.40 %     (26.9 ) %     (37.9 ) %
Return on average equity
     7.11       9.81       8.98       10.96       11.78       (27.5 )     (39.6 )
Net interest margin
     4.24       4.10       4.17       4.42       4.70       3.4       (9.8 )
Efficiency ratio - GAAP based
     65.20       62.22       65.62       61.75       61.44       4.8       6.1  
                                                         
                                                         
PER SHARE DATA
                                                        
Basic net income
   $ 0.27     $ 0.37     $ 0.33     $ 0.40     $ 0.40       (27.0 ) %     (32.5 ) %
Diluted net income
     0.27       0.37       0.33       0.40       0.40       (27.0 )     (32.5 )
Dividends paid
     0.16       0.16       0.16       0.16       0.16       -       -  
Book value at period end
     15.16       14.92       14.65       14.62       14.35       1.6       5.6  
Tangible book value at period end
     12.55       12.30       12.01       11.96       11.68       2.0       7.4  
Market value at period end
     23.99       25.70       18.72       21.45       21.95       (6.7 )     9.3  
Market range:
                                                        
High
     25.97       27.25       26.47       23.40       24.72       (4.7 )     5.1  
Low
     17.50       18.00       18.52       20.00       20.00       (2.8 )     (12.5 )
                                                         
                                                         
AT PERIOD END
                                                        
Loans
   $ 888,528     $ 865,437     $ 841,600     $ 808,583     $ 776,350       2.7 %     14.4 %
Securities
     89,456       93,149       91,842       99,062       110,033       (4.0 )     (18.7 )
Assets
     1,044,641       1,037,026       1,019,463       1,003,836       956,911       0.7       9.2  
Deposits
     845,371       839,217       818,656       808,917       765,895       0.7       10.4  
Stockholders' equity
     127,385       125,401       123,038       122,699       120,235       1.6       5.9  
                                                         
                                                         
CAPITAL AND CREDIT QUALITY RATIOS
                                                  
Average equity to average assets
     12.22 %     12.12 %     12.41 %     12.56 %     11.91 %                
Annualized net charge-offs to average loans
     0.31       0.25       0.13       0.04       0.06                  
Allowance for credit losses to period-end loans
     1.05       1.00       0.98       0.98       0.97                  
Nonperforming assets to total assets
     0.79       0.72       0.47       0.34       0.39                  
 
 
 
 
 
Page 8 of 8

Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter
(Dollars in thousands, except per share data)

                                 
4Q 08
    
4Q 08
  
                                 
compared to
    
compared to
  
   
4Q 08
    
3Q 08
    
2Q 08
    
1Q 08
    
4Q 07
    
3Q 08
    
4Q 07
  
INTEREST INCOME
                                                        
Interest and fees on loans
   $ 14,166     $ 14,179     $ 13,961     $ 14,560     $ 14,958       (0.1 ) %     (5.3 ) %
Interest and dividends on investment securities:
                                          
Taxable
     839       924       945       1,080       1,205       (9.2 )     (30.4 )
Tax-exempt
     93       95       109       123       124       (2.1 )     (25.0 )
Interest on federal funds sold
     24       79       83       122       120       (69.6 )     (80.0 )
Interest on deposits with other banks
     4       21       29       38       46       (81.0 )     (91.3 )
Total interest income
     15,126       15,298       15,127       15,923       16,453       (1.1 )     (8.1 )
                                                         
INTEREST EXPENSE
                                                        
Interest on deposits
     4,582       4,955       4,997       5,343       5,430       (7.5 )     (15.6 )
Interest on short-term borrowings
     121       344       316       366       426       (64.8 )     (71.6 )
Interest on long-term debt
     75       90       182       184       171       (16.7 )     (56.1 )
Total interest expense
     4,778       5,389       5,495       5,893       6,027       (11.3 )     (20.7 )
                                                         
NET INTEREST INCOME
     10,348       9,909       9,632       10,030       10,426       4.4       (0.7 )
Provision for credit losses
     1,385       875       615       462       465       58.3       197.8  
                                                         
NET INTEREST INCOME AFTER PROVISION
                                          
FOR CREDIT LOSSES
     8,963       9,034       9,017       9,568       9,961       (0.8 )     (10.0 )
                                                         
NONINTEREST INCOME
                                                        
Service charges on deposit accounts
     889       923       917       871       952       (3.7 )     (6.6 )
Investment securities gains (losses)
     (15 )     -       -       -       4       -       (475.0 )
Other than temporary impairment of securities
     -       (371 )     -       -       -       (100.0 )     -  
Insurance agency commissions
     2,495       2,845       3,219       3,531       2,694       (12.3 )     (7.4 )
Other noninterest income
     1,039       1,849       1,058       1,100       1,065       (43.8 )     (2.4 )
Total noninterest income
     4,408       5,246       5,194       5,502       4,715       (16.0 )     (6.5 )
                                                         
NONINTEREST EXPENSE
                                                        
Salaries and employee benefits
     5,776       5,802       5,759       5,984       5,520       (0.4 )     4.6  
Occupancy expense
     585       558       537       499       518       4.8       12.9  
Furniture and equipment expense
     291       310       298       286       324       (6.1 )     (10.2 )
Data processing
     476       486       440       470       467       (2.1 )     1.9  
Directors' fees
     132       131       130       165       178       0.8       (25.8 )
Amortization of intangible assets
     129       128       129       129       130       0.8       (0.8 )
Other noninterest expenses
     2,232       2,014       2,436       2,058       2,165       10.8       3.1  
Total noninterest expense
     9,621       9,429       9,729       9,591       9,302       2.0       3.4  
                                                         
Income before income taxes
     3,750       4,851       4,482       5,479       5,374       (22.7 )     (30.2 )
Income tax expense
     1,489       1,780       1,716       2,107       2,034       (16.3 )     (26.8 )
                                                         
NET INCOME
   $ 2,261     $ 3,071     $ 2,766     $ 3,372     $ 3,340       (26.4 )     (32.3 )
                                                         
Weighted average shares outstanding - basic
     8,388       8,388       8,381       8,391       8,380       -       0.1  
Weighted average shares outstanding - diluted
     8,394       8,395       8,388       8,400       8,391       -       -  
                                                         
Basic net income per share
   $ 0.27     $ 0.37     $ 0.33     $ 0.40     $ 0.40       (27.0 )     (32.5 )
Diluted net income per share
     0.27       0.37       0.33       0.40       0.40       (27.0 )     (32.5 )
Dividends paid per share
     0.16       0.16       0.16       0.16       0.16       -       -