Maryland
|
0-22345
|
52-1974638
|
(State or other jurisdiction of
|
(Commission file number)
|
(IRS Employer
|
incorporation or organization)
|
Identification No.)
|
£
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
£
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
£
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
£
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operation and Financial Condition.
|
Item 5.07
|
Submission of Matters to a Vote of Security Holders.
|
For
|
Withheld
|
Abstain
|
Broker Non-Votes
|
|||||||||||||
Class I Director
|
||||||||||||||||
Frank E. Mason, III
|
3,561,984 | 138,115 | - | 1,809,850 | ||||||||||||
Class II Directors
|
||||||||||||||||
Herbert L. Andrew, III
|
3,326,092 | 374,007 | - | 1,809,850 | ||||||||||||
Blenda W. Armistead
|
3,568,920 | 131,179 | - | 1,809,850 | ||||||||||||
Neil R. LeCompte
|
3,576,790 | 123,309 | - | 1,809,850 | ||||||||||||
F. Winfield Trice, Jr.
|
3,563,091 | 137,008 | - | 1,809,850 |
For
|
Against
|
Abstain
|
Broker Non-Votes
|
|||||||||||
5,438,616 | 39,627 | 31,706 | - |
For
|
Against
|
Abstain
|
Broker Non-Votes
|
|||||||||||
3,355,359 | 269,456 | 75,283 | 1,809,851 |
Every Year
|
Every Two Years
|
Every Three Years
|
Abstain
|
Broker Non-Votes
|
||||||||||||||
3,373,874 | 50,322 | 201,955 | 73,688 | 1,810,110 |
Item 9.01.
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits.
|
SHORE BANCSHARES, INC.
|
|||
Dated: April 28, 2011
|
By:
|
/s/ W. Moorhead Vermilye
|
|
W. Moorhead Vermilye
|
|||
Chief Executive Officer
|
Exhibit
|
||
Number
|
Description
|
|
99.1
|
|
Press release dated April 26, 2011 (furnished herewith).
|
Shore Bancshares, Inc.
|
Page 4 of 11
|
For the Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2011
|
2010
|
Change
|
||||||||||
PROFITABILITY FOR THE PERIOD
|
||||||||||||
Net interest income
|
$ | 9,862 | $ | 10,395 | (5.1 | ) % | ||||||
Provision for credit losses
|
6,390 | 7,617 | (16.1 | ) | ||||||||
Noninterest income
|
4,395 | 4,882 | (10.0 | ) | ||||||||
Noninterest expense
|
9,891 | 10,321 | (4.2 | ) | ||||||||
Loss before income tax benefit
|
(2,024 | ) | (2,661 | ) | 23.9 | |||||||
Income tax benefit
|
(941 | ) | (1,099 | ) | 14.4 | |||||||
Net loss
|
$ | (1,083 | ) | $ | (1,562 | ) | 30.7 | |||||
Return on average assets
|
(0.39 | ) % | (0.55 | ) % | 16 | bp | ||||||
Return on average equity
|
(3.59 | ) | (4.95 | ) | 136 | |||||||
Return on average tangible equity (1)
|
(3.92 | ) | (5.64 | ) | 172 | |||||||
Net interest margin
|
3.79 | 3.95 | (16 | ) | ||||||||
Efficiency ratio - GAAP
|
69.38 | 67.56 | 182 | |||||||||
Efficiency ratio - Non-GAAP (1)
|
68.85 | 66.71 | 214 | |||||||||
PER SHARE DATA
|
||||||||||||
Basic net loss per common share
|
$ | (0.13 | ) | $ | (0.19 | ) | 31.6 | % | ||||
Diluted net loss per common share
|
(0.13 | ) | (0.19 | ) | 31.6 | |||||||
Dividends paid per common share
|
0.06 | 0.06 | - | |||||||||
Book value per common share at period end
|
14.32 | 14.82 | (3.4 | ) | ||||||||
Tangible book value per common share at period end (1)
|
12.14 | 12.30 | (1.3 | ) | ||||||||
Market value at period end
|
9.75 | 14.25 | (31.6 | ) | ||||||||
Market range:
|
||||||||||||
High
|
11.11 | 14.75 | (24.7 | ) | ||||||||
Low
|
9.42 | 10.21 | (7.7 | ) | ||||||||
PERIOD-END BALANCE SHEET DATA
|
||||||||||||
Loans
|
$ | 884,715 | $ | 905,194 | (2.3 | ) % | ||||||
Securities
|
106,920 | 112,929 | (5.3 | ) | ||||||||
Assets
|
1,131,334 | 1,146,334 | (1.3 | ) | ||||||||
Deposits
|
986,486 | 990,750 | (0.4 | ) | ||||||||
Stockholders' equity
|
120,926 | 125,108 | (3.3 | ) | ||||||||
AVERAGE BALANCE SHEET DATA
|
||||||||||||
Loans
|
$ | 887,531 | $ | 910,374 | (2.5 | ) % | ||||||
Securities
|
106,235 | 110,252 | (3.6 | ) | ||||||||
Earning assets
|
1,062,164 | 1,075,425 | (1.2 | ) | ||||||||
Assets
|
1,131,259 | 1,145,607 | (1.3 | ) | ||||||||
Deposits
|
982,249 | 982,265 | - | |||||||||
Stockholders' equity
|
122,466 | 128,081 | (4.4 | ) | ||||||||
CAPITAL AND CREDIT QUALITY RATIOS
|
||||||||||||
Average equity to average assets
|
10.83 | % | 11.18 | % | (35 | ) bp | ||||||
Average tangible equity to average tangible assets (1)
|
9.35 | 9.50 | (15 | ) | ||||||||
Annualized net charge-offs to average loans
|
1.44 | 2.54 | (110 | ) | ||||||||
Allowance for credit losses to period-end loans
|
1.97 | 1.41 | 56 | |||||||||
Nonperforming assets to total loans+other real estate owned
|
6.02 | 3.62 | 240 | |||||||||
Nonperforming assets to total assets
|
4.73 | 2.87 | 186 | |||||||||
Nonperforming assets+Loans 90 days past due and still accruing to total loans+other real estate owned
|
6.64 | 3.93 | 271 | |||||||||
Nonperforming assets+Loans 90 days past due and still accruing to total assets
|
5.22 | 3.11 | 211 |
(1)
|
See the reconciliation table on page 11 of 11.
|
Shore Bancshares, Inc.
|
Page 5 of 11
|
March 31, 2011
|
March 31, 2011
|
|||||||||||||||||||
March 31,
|
December 31,
|
March 31,
|
compared to
|
compared to
|
||||||||||||||||
2011
|
2010
|
2010
|
December 31, 2010
|
March 31, 2010
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and due from banks
|
$ | 19,074 | $ | 19,680 | $ | 14,351 | (3.1 | ) % | 32.9 | % | ||||||||||
Interest-bearing deposits with other banks
|
31,311 | 21,593 | 11,648 | 45.0 | 168.8 | |||||||||||||||
Federal funds sold
|
39,597 | 36,691 | 46,121 | 7.9 | (14.1 | ) | ||||||||||||||
Investments available for sale (at fair value)
|
100,234 | 99,055 | 104,109 | 1.2 | (3.7 | ) | ||||||||||||||
Investments held to maturity
|
6,686 | 6,727 | 8,820 | (0.6 | ) | (24.2 | ) | |||||||||||||
Loans
|
884,715 | 895,404 | 905,194 | (1.2 | ) | (2.3 | ) | |||||||||||||
Less: allowance for credit losses
|
(17,471 | ) | (14,227 | ) | (12,791 | ) | 22.8 | 36.6 | ||||||||||||
Loans, net
|
867,244 | 881,177 | 892,403 | (1.6 | ) | (2.8 | ) | |||||||||||||
Premises and equipment, net
|
14,304 | 14,483 | 14,682 | (1.2 | ) | (2.6 | ) | |||||||||||||
Goodwill
|
13,678 | 13,678 | 15,954 | - | (14.3 | ) | ||||||||||||||
Other intangible assets, net
|
4,711 | 4,840 | 5,277 | (2.7 | ) | (10.7 | ) | |||||||||||||
Other real estate and other assets owned, net
|
4,802 | 3,702 | 2,403 | 29.7 | 99.8 | |||||||||||||||
Other assets
|
29,693 | 28,685 | 30,566 | 3.5 | (2.9 | ) | ||||||||||||||
Total assets
|
$ | 1,131,334 | $ | 1,130,311 | $ | 1,146,334 | 0.1 | (1.3 | ) | |||||||||||
LIABILITIES
|
||||||||||||||||||||
Noninterest-bearing deposits
|
$ | 122,490 | $ | 124,188 | $ | 119,271 | (1.4 | ) | 2.7 | |||||||||||
Interest-bearing deposits
|
863,996 | 855,328 | 871,479 | 1.0 | (0.9 | ) | ||||||||||||||
Total deposits
|
986,486 | 979,516 | 990,750 | 0.7 | (0.4 | ) | ||||||||||||||
Short-term borrowings
|
12,078 | 16,041 | 14,001 | (24.7 | ) | (13.7 | ) | |||||||||||||
Accrued expenses and other liabilities
|
10,912 | 11,309 | 15,046 | (3.5 | ) | (27.5 | ) | |||||||||||||
Long-term debt
|
932 | 932 | 1,429 | - | (34.8 | ) | ||||||||||||||
Total liabilities
|
1,010,408 | 1,007,798 | 1,021,226 | 0.3 | (1.1 | ) | ||||||||||||||
STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
Common stock, par value $0.01; authorized 35,000,000 shares
|
84 | 84 | 84 | - | - | |||||||||||||||
Warrant
|
1,543 | 1,543 | 1,543 | - | - | |||||||||||||||
Additional paid in capital
|
30,290 | 30,242 | 29,988 | 0.2 | 1.0 | |||||||||||||||
Retained earnings
|
90,868 | 92,458 | 94,083 | (1.7 | ) | (3.4 | ) | |||||||||||||
Accumulated other comprehensive loss
|
(1,859 | ) | (1,814 | ) | (590 | ) | (2.5 | ) | (215.1 | ) | ||||||||||
Total stockholders' equity
|
120,926 | 122,513 | 125,108 | (1.3 | ) | (3.3 | ) | |||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,131,334 | $ | 1,130,311 | $ | 1,146,334 | 0.1 | (1.3 | ) | |||||||||||
Period-end common shares outstanding
|
8,443 | 8,443 | 8,443 | - | - | |||||||||||||||
Book value per common share
|
$ | 14.32 | $ | 14.51 | $ | 14.82 | (1.3 | ) | (3.4 | ) |
For the Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2011
|
2010
|
% Change
|
||||||||||
INTEREST INCOME
|
||||||||||||
Interest and fees on loans
|
$ | 12,001 | $ | 12,874 | (6.8 | ) % | ||||||
Interest and dividends on investment securities:
|
||||||||||||
Taxable
|
657 | 882 | (25.5 | ) | ||||||||
Tax-exempt
|
38 | 59 | (35.6 | ) | ||||||||
Interest on federal funds sold
|
16 | 12 | 33.3 | |||||||||
Interest on deposits with other banks
|
6 | 1 | 500.0 | |||||||||
Total interest income
|
12,718 | 13,828 | (8.0 | ) | ||||||||
INTEREST EXPENSE
|
||||||||||||
Interest on deposits
|
2,833 | 3,385 | (16.3 | ) | ||||||||
Interest on short-term borrowings
|
13 | 32 | (59.4 | ) | ||||||||
Interest on long-term debt
|
10 | 16 | (37.5 | ) | ||||||||
Total interest expense
|
2,856 | 3,433 | (16.8 | ) | ||||||||
NET INTEREST INCOME
|
9,862 | 10,395 | (5.1 | ) | ||||||||
Provision for credit losses
|
6,390 | 7,617 | (16.1 | ) | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
|
3,472 | 2,778 | 25.0 | |||||||||
NONINTEREST INCOME
|
||||||||||||
Service charges on deposit accounts
|
704 | 786 | (10.4 | ) | ||||||||
Trust and investment fee income
|
376 | 416 | (9.6 | ) | ||||||||
Investment securities gains
|
79 | - | - | |||||||||
Insurance agency commissions
|
2,510 | 2,889 | (13.1 | ) | ||||||||
Other noninterest income
|
726 | 791 | (8.2 | ) | ||||||||
Total noninterest income
|
4,395 | 4,882 | (10.0 | ) | ||||||||
NONINTEREST EXPENSE
|
||||||||||||
Salaries and wages
|
4,246 | 4,490 | (5.4 | ) | ||||||||
Employee benefits
|
1,153 | 1,281 | (10.0 | ) | ||||||||
Occupancy expense
|
596 | 622 | (4.2 | ) | ||||||||
Furniture and equipment expense
|
272 | 300 | (9.3 | ) | ||||||||
Data processing
|
851 | 631 | 34.9 | |||||||||
Directors' fees
|
107 | 121 | (11.6 | ) | ||||||||
Amortization of intangible assets
|
129 | 129 | - | |||||||||
Insurance agency commissions expense
|
375 | 428 | (12.4 | ) | ||||||||
FDIC insurance premium expense
|
460 | 481 | (4.4 | ) | ||||||||
Other noninterest expenses
|
1,702 | 1,838 | (7.4 | ) | ||||||||
Total noninterest expense
|
9,891 | 10,321 | (4.2 | ) | ||||||||
Loss before income tax benefit
|
(2,024 | ) | (2,661 | ) | 23.9 | |||||||
Income tax benefit
|
(941 | ) | (1,099 | ) | 14.4 | |||||||
NET LOSS
|
$ | (1,083 | ) | $ | (1,562 | ) | 30.7 | |||||
Weighted average shares outstanding - basic
|
8,443 | 8,436 | 0.1 | |||||||||
Weighted average shares outstanding - diluted
|
8,443 | 8,436 | 0.1 | |||||||||
Basic net loss per common share
|
$ | (0.13 | ) | $ | (0.19 | ) | 31.6 | |||||
Diluted net loss per common share
|
(0.13 | ) | (0.19 | ) | 31.6 | |||||||
Dividends paid per common share
|
0.06 | 0.06 | - |
Shore Bancshares, Inc.
|
Page 7 of 11
|
For the Three Months Ended
|
||||||||||||||||
March 31,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||
balance
|
rate
|
balance
|
rate
|
|||||||||||||
Earning assets
|
||||||||||||||||
Loans
|
$ | 887,531 | 5.50 | % | $ | 910,374 | 5.75 | % | ||||||||
Investment securities
|
||||||||||||||||
Taxable
|
101,625 | 2.62 | 103,488 | 3.45 | ||||||||||||
Tax-exempt
|
4,610 | 5.08 | 6,764 | 5.39 | ||||||||||||
Federal funds sold
|
46,813 | 0.14 | 46,553 | 0.11 | ||||||||||||
Interest-bearing deposits
|
21,585 | 0.12 | 8,246 | 0.06 | ||||||||||||
Total earning assets
|
1,062,164 | 4.88 | % | 1,075,425 | 5.24 | % | ||||||||||
Cash and due from banks
|
19,316 | 14,422 | ||||||||||||||
Other assets
|
65,426 | 67,914 | ||||||||||||||
Allowance for credit losses
|
(15,647 | ) | (12,154 | ) | ||||||||||||
Total assets
|
$ | 1,131,259 | $ | 1,145,607 | ||||||||||||
Interest-bearing liabilities
|
||||||||||||||||
Demand deposits
|
$ | 131,628 | 0.22 | % | $ | 127,986 | 0.25 | % | ||||||||
Money market and savings deposits
|
260,841 | 0.93 | 256,818 | 0.68 | ||||||||||||
Certificates of deposit $100,000 or more
|
259,179 | 1.70 | 259,538 | 2.24 | ||||||||||||
Other time deposits
|
208,301 | 2.10 | 219,731 | 2.67 | ||||||||||||
Interest-bearing deposits
|
859,949 | 1.34 | 864,073 | 1.59 | ||||||||||||
Short-term borrowings
|
14,165 | 0.37 | 18,032 | 0.71 | ||||||||||||
Long-term debt
|
932 | 4.56 | 1,429 | 4.45 | ||||||||||||
Total interest-bearing liabilities
|
875,046 | 1.32 | % | 883,534 | 1.58 | % | ||||||||||
Noninterest-bearing deposits
|
122,300 | 118,192 | ||||||||||||||
Accrued expenses and other liabilities
|
11,447 | 15,800 | ||||||||||||||
Stockholders' equity
|
122,466 | 128,081 | ||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,131,259 | $ | 1,145,607 | ||||||||||||
Net interest spread
|
3.56 | % | 3.66 | % | ||||||||||||
Net interest margin
|
3.79 | % | 3.95 | % |
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 11
|
1Q 11
|
||||||||||||||||||||||
2011
|
2010
|
2010
|
2010
|
2010
|
compared to
|
compared to
|
||||||||||||||||||||||
(1Q 11)
|
(4Q 10)
|
(3Q 10)
|
(2Q 10)
|
(1Q 10)
|
4Q 10
|
1Q 10
|
||||||||||||||||||||||
PROFITABILITY FOR THE PERIOD
|
||||||||||||||||||||||||||||
Net interest income
|
$ | 9,862 | $ | 10,866 | $ | 10,687 | $ | 10,691 | $ | 10,395 | (9.2 | ) % | (5.1 | ) % | ||||||||||||||
Provision for credit losses
|
6,390 | 4,392 | 4,193 | 4,917 | 7,617 | 45.5 | (16.1 | ) | ||||||||||||||||||||
Noninterest income
|
4,395 | 3,948 | 4,643 | 4,568 | 4,882 | 11.3 | (10.0 | ) | ||||||||||||||||||||
Noninterest expense
|
9,891 | 9,082 | 12,629 | 9,688 | 10,321 | 8.9 | (4.2 | ) | ||||||||||||||||||||
(Loss) income before income taxes
|
(2,024 | ) | 1,340 | (1,492 | ) | 654 | (2,661 | ) | (251.0 | ) | 23.9 | |||||||||||||||||
Income tax (benefit) expense
|
(941 | ) | 490 | (92 | ) | 209 | (1,099 | ) | (292.0 | ) | 14.4 | |||||||||||||||||
Net (loss) income
|
$ | (1,083 | ) | $ | 850 | $ | (1,400 | ) | $ | 445 | $ | (1,562 | ) | (227.4 | ) | 30.7 | ||||||||||||
Return on average assets
|
(0.39 | ) % | 0.30 | % | (0.49 | ) % | 0.16 | % | (0.55 | ) % | (69 | ) bp | 16 | bp | ||||||||||||||
Return on average equity
|
(3.59 | ) | 2.73 | (4.43 | ) | 1.42 | (4.95 | ) | (632 | ) | 136 | |||||||||||||||||
Return on average tangible equity (1)
|
(3.92 | ) | 3.49 | (1.56 | ) | 2.01 | (5.64 | ) | (741 | ) | 172 | |||||||||||||||||
Net interest margin
|
3.79 | 4.09 | 4.00 | 4.03 | 3.95 | (30 | ) | (16 | ) | |||||||||||||||||||
Efficiency ratio - GAAP
|
69.38 | 61.31 | 82.38 | 63.49 | 67.56 | 807 | 182 | |||||||||||||||||||||
Efficiency ratio - non-GAAP (1)
|
68.85 | 60.44 | 62.56 | 62.64 | 66.71 | 841 | 214 | |||||||||||||||||||||
PER SHARE DATA
|
||||||||||||||||||||||||||||
Basic net (loss) income per common share
|
$ | (0.13 | ) | $ | 0.10 | $ | (0.17 | ) | $ | 0.05 | $ | (0.19 | ) | (230.0 | ) % | 31.6 | % | |||||||||||
Diluted net (loss) income per common share
|
(0.13 | ) | 0.10 | (0.17 | ) | 0.05 | (0.19 | ) | (230.0 | ) | 31.6 | |||||||||||||||||
Dividends paid per common share
|
0.06 | 0.06 | 0.06 | 0.06 | 0.06 | - | - | |||||||||||||||||||||
Book value per common share at period end
|
14.32 | 14.51 | 14.49 | 14.77 | 14.82 | (1.3 | ) | (3.4 | ) | |||||||||||||||||||
Tangible book value per common share at period end (1)
|
12.14 | 12.32 | 12.37 | 12.27 | 12.30 | (1.5 | ) | (1.3 | ) | |||||||||||||||||||
Market value at period end
|
9.75 | 10.54 | 9.48 | 11.91 | 14.25 | (7.5 | ) | (31.6 | ) | |||||||||||||||||||
Market range:
|
||||||||||||||||||||||||||||
High
|
11.11 | 10.73 | 12.10 | 14.80 | 14.75 | 3.5 | (24.7 | ) | ||||||||||||||||||||
Low
|
9.42 | 9.25 | 9.20 | 11.75 | 10.21 | 1.8 | (7.7 | ) | ||||||||||||||||||||
PERIOD-END BALANCE SHEET DATA
|
||||||||||||||||||||||||||||
Loans
|
$ | 884,715 | $ | 895,404 | $ | 906,490 | $ | 905,477 | $ | 905,194 | (1.2 | ) % | (2.3 | ) % | ||||||||||||||
Securities
|
106,920 | 105,782 | 104,075 | 106,556 | 112,929 | 1.1 | (5.3 | ) | ||||||||||||||||||||
Assets
|
1,131,334 | 1,130,311 | 1,134,503 | 1,129,196 | 1,146,334 | 0.1 | (1.3 | ) | ||||||||||||||||||||
Deposits
|
986,486 | 979,516 | 982,428 | 971,608 | 990,750 | 0.7 | (0.4 | ) | ||||||||||||||||||||
Stockholders' equity
|
120,926 | 122,513 | 122,355 | 124,666 | 125,108 | (1.3 | ) | (3.3 | ) | |||||||||||||||||||
AVERAGE BALANCE SHEET DATA
|
||||||||||||||||||||||||||||
Loans
|
$ | 887,531 | $ | 903,075 | $ | 904,293 | $ | 909,295 | $ | 910,374 | (1.7 | ) % | (2.5 | ) % | ||||||||||||||
Securities
|
106,235 | 103,600 | 105,466 | 109,744 | 110,252 | 2.5 | (3.6 | ) | ||||||||||||||||||||
Earning assets
|
1,062,164 | 1,060,645 | 1,066,063 | 1,071,115 | 1,075,425 | 0.1 | (1.2 | ) | ||||||||||||||||||||
Assets
|
1,131,259 | 1,128,517 | 1,139,043 | 1,134,662 | 1,145,607 | 0.2 | (1.3 | ) | ||||||||||||||||||||
Deposits
|
982,249 | 978,444 | 984,018 | 976,749 | 982,265 | 0.4 | - | |||||||||||||||||||||
Stockholders' equity
|
122,466 | 123,341 | 125,308 | 125,670 | 128,081 | (0.7 | ) | (4.4 | ) | |||||||||||||||||||
CAPITAL AND CREDIT QUALITY RATIOS
|
||||||||||||||||||||||||||||
Average equity to average assets
|
10.83 | % | 10.93 | % | 11.00 | % | 11.08 | % | 11.18 | % | (10 | ) bp | (35 | ) bp | ||||||||||||||
Average tangible equity to average tangible assets (1)
|
9.35 | 9.50 | 9.33 | 9.38 | 9.50 | (15 | ) | (15 | ) | |||||||||||||||||||
Annualized net charge-offs to average loans
|
1.44 | 1.46 | 1.90 | 1.95 | 2.54 | (2 | ) | (110 | ) | |||||||||||||||||||
Allowance for credit losses to period-end loans
|
1.97 | 1.59 | 1.45 | 1.47 | 1.41 | 38 | 56 | |||||||||||||||||||||
Nonperforming assets to total loans+other real estate owned
|
6.02 | 4.44 | 4.22 | 4.29 | 3.62 | 158 | 240 | |||||||||||||||||||||
Nonperforming assets to total assets
|
4.73 | 3.53 | 3.38 | 3.45 | 2.87 | 120 | 186 | |||||||||||||||||||||
Nonperforming assets+Loans 90 days past due and still accruing to total loans+other real estate owned
|
6.64 | 4.97 | 4.58 | 4.81 | 3.93 | 167 | 271 | |||||||||||||||||||||
Nonperforming assets+Loans 90 days past due and still accruing to total assets
|
5.22 | 3.95 | 3.67 | 3.86 | 3.11 | 127 | 211 |
Shore Bancshares, Inc.
|
Page 9 of 11
|
Consolidated Statements of Income By Quarter
|
|
(In thousands, except per share data)
|
1Q 11
|
1Q 11
|
|||||||||||||||||||||||||||
compared to
|
compared to
|
|||||||||||||||||||||||||||
1Q 11
|
4Q 10
|
3Q 10
|
2Q 10
|
1Q 10
|
4Q 10
|
1Q 10
|
||||||||||||||||||||||
INTEREST INCOME
|
||||||||||||||||||||||||||||
Interest and fees on loans
|
$ | 12,001 | $ | 12,958 | $ | 13,083 | $ | 13,047 | $ | 12,874 | (7.4 | ) % | (6.8 | ) % | ||||||||||||||
Interest and dividends on investment securities:
|
||||||||||||||||||||||||||||
Taxable
|
657 | 804 | 677 | 846 | 882 | (18.3 | ) | (25.5 | ) | |||||||||||||||||||
Tax-exempt
|
38 | 47 | 50 | 56 | 59 | (19.1 | ) | (35.6 | ) | |||||||||||||||||||
Interest on federal funds sold
|
16 | 13 | 21 | 14 | 12 | 23.1 | 33.3 | |||||||||||||||||||||
Interest on deposits with other banks
|
6 | 7 | 6 | 4 | 1 | (14.3 | ) | 500.0 | ||||||||||||||||||||
Total interest income
|
12,718 | 13,829 | 13,837 | 13,967 | 13,828 | (8.0 | ) | (8.0 | ) | |||||||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||||||||||||
Interest on deposits
|
2,833 | 2,937 | 3,117 | 3,242 | 3,385 | (3.5 | ) | (16.3 | ) | |||||||||||||||||||
Interest on short-term borrowings
|
13 | 15 | 17 | 19 | 32 | (13.3 | ) | (59.4 | ) | |||||||||||||||||||
Interest on long-term debt
|
10 | 11 | 16 | 15 | 16 | (9.1 | ) | (37.5 | ) | |||||||||||||||||||
Total interest expense
|
2,856 | 2,963 | 3,150 | 3,276 | 3,433 | (3.6 | ) | (16.8 | ) | |||||||||||||||||||
NET INTEREST INCOME
|
9,862 | 10,866 | 10,687 | 10,691 | 10,395 | (9.2 | ) | (5.1 | ) | |||||||||||||||||||
Provision for credit losses
|
6,390 | 4,392 | 4,193 | 4,917 | 7,617 | 45.5 | (16.1 | ) | ||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
|
3,472 | 6,474 | 6,494 | 5,774 | 2,778 | (46.4 | ) | 25.0 | ||||||||||||||||||||
NONINTEREST INCOME
|
||||||||||||||||||||||||||||
Service charges on deposit accounts
|
704 | 799 | 841 | 831 | 786 | (11.9 | ) | (10.4 | ) | |||||||||||||||||||
Trust and investment fee income
|
376 | 358 | 357 | 372 | 416 | 5.0 | (9.6 | ) | ||||||||||||||||||||
Investment securities gains
|
79 | - | - | - | - | - | - | |||||||||||||||||||||
Insurance agency commissions
|
2,510 | 2,116 | 2,513 | 2,595 | 2,889 | 18.6 | (13.1 | ) | ||||||||||||||||||||
Other noninterest income
|
726 | 675 | 932 | 770 | 791 | 7.6 | (8.2 | ) | ||||||||||||||||||||
Total noninterest income
|
4,395 | 3,948 | 4,643 | 4,568 | 4,882 | 11.3 | (10.0 | ) | ||||||||||||||||||||
NONINTEREST EXPENSE
|
||||||||||||||||||||||||||||
Salaries and wages
|
4,246 | 4,220 | 4,404 | 4,363 | 4,490 | 0.6 | (5.4 | ) | ||||||||||||||||||||
Employee benefits
|
1,153 | 893 | 897 | 758 | 1,281 | 29.1 | (10.0 | ) | ||||||||||||||||||||
Occupancy expense
|
596 | 562 | 547 | 597 | 622 | 6.0 | (4.2 | ) | ||||||||||||||||||||
Furniture and equipment expense
|
272 | 262 | 325 | 313 | 300 | 3.8 | (9.3 | ) | ||||||||||||||||||||
Data processing
|
851 | 620 | 696 | 660 | 631 | 37.3 | 34.9 | |||||||||||||||||||||
Directors' fees
|
107 | 68 | 118 | 105 | 121 | 57.4 | (11.6 | ) | ||||||||||||||||||||
Goodwill and other intangible assets impairment
|
- | - | 3,051 | - | - | - | - | |||||||||||||||||||||
Amortization of intangible assets
|
129 | 129 | 128 | 129 | 129 | - | - | |||||||||||||||||||||
Insurance agency commissions expense
|
375 | 339 | 338 | 464 | 428 | 10.6 | (12.4 | ) | ||||||||||||||||||||
FDIC insurance premium expense
|
460 | 445 | 448 | 460 | 481 | 3.4 | (4.4 | ) | ||||||||||||||||||||
Other noninterest expenses
|
1,702 | 1,544 | 1,677 | 1,839 | 1,838 | 10.2 | (7.4 | ) | ||||||||||||||||||||
Total noninterest expense
|
9,891 | 9,082 | 12,629 | 9,688 | 10,321 | 8.9 | (4.2 | ) | ||||||||||||||||||||
(Loss) income before income taxes
|
(2,024 | ) | 1,340 | (1,492 | ) | 654 | (2,661 | ) | (251.0 | ) | 23.9 | |||||||||||||||||
Income tax (benefit) expense
|
(941 | ) | 490 | (92 | ) | 209 | (1,099 | ) | (292.0 | ) | 14.4 | |||||||||||||||||
NET (LOSS) INCOME
|
$ | (1,083 | ) | $ | 850 | $ | (1,400 | ) | $ | 445 | $ | (1,562 | ) | (227.4 | ) | 30.7 | ||||||||||||
Weighted average shares outstanding - basic
|
8,443 | 8,443 | 8,443 | 8,443 | 8,436 | - | 0.1 | |||||||||||||||||||||
Weighted average shares outstanding - diluted
|
8,443 | 8,443 | 8,443 | 8,443 | 8,436 | - | 0.1 | |||||||||||||||||||||
Basic net (loss) income per common share
|
$ | (0.13 | ) | $ | 0.10 | $ | (0.17 | ) | $ | 0.05 | $ | (0.19 | ) | (230.0 | ) | 31.6 | ||||||||||||
Diluted net (loss) income per common share
|
(0.13 | ) | 0.10 | (0.17 | ) | 0.05 | (0.19 | ) | (230.0 | ) | 31.6 | |||||||||||||||||
Dividends paid per common share
|
0.06 | 0.06 | 0.06 | 0.06 | 0.06 | - | - |
Shore Bancshares, Inc.
|
Page 10 of 11
|
Consolidated Average Balance Sheets By Quarter
|
|
(Dollars in thousands)
|
Average balance
|
||||||||||||||||||||||||||||||||||||||||||||||||
1Q 11
|
1Q 11
|
|||||||||||||||||||||||||||||||||||||||||||||||
compared to
|
compared to
|
|||||||||||||||||||||||||||||||||||||||||||||||
1Q 11
|
4Q 10
|
3Q 10
|
2Q 10
|
1Q 10
|
4Q 10
|
1Q 10
|
||||||||||||||||||||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||||||||||||||||||||
balance
|
rate
|
balance
|
rate
|
balance
|
rate
|
balance
|
rate
|
balance
|
rate
|
|||||||||||||||||||||||||||||||||||||||
Earning assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Loans
|
$ | 887,531 | 5.50 | % | $ | 903,075 | 5.71 | % | $ | 904,293 | 5.76 | % | $ | 909,295 | 5.77 | % | $ | 910,374 | 5.75 | % | (1.7 | ) % | (2.5 | ) % | ||||||||||||||||||||||||
Investment securities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Taxable
|
101,625 | 2.62 | 98,378 | 3.24 | 99,572 | 2.70 | 103,284 | 3.29 | 103,488 | 3.45 | 3.3 | (1.8 | ) | |||||||||||||||||||||||||||||||||||
Tax-exempt
|
4,610 | 5.08 | 5,222 | 5.40 | 5,894 | 5.16 | 6,460 | 5.30 | 6,764 | 5.39 | (11.7 | ) | (31.9 | ) | ||||||||||||||||||||||||||||||||||
Federal funds sold
|
46,813 | 0.14 | 34,018 | 0.16 | 40,638 | 0.20 | 38,001 | 0.15 | 46,553 | 0.11 | 37.6 | 0.6 | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits
|
21,585 | 0.12 | 19,952 | 0.12 | 15,666 | 0.15 | 14,075 | 0.12 | 8,246 | 0.06 | 8.2 | 161.8 | ||||||||||||||||||||||||||||||||||||
Total earning assets
|
1,062,164 | 4.88 | % | 1,060,645 | 5.20 | % | 1,066,063 | 5.18 | % | 1,071,115 | 5.26 | % | 1,075,425 | 5.24 | % | 0.1 | (1.2 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks
|
19,316 | 19,867 | 21,865 | 9,997 | 14,422 | (2.8 | ) | 33.9 | ||||||||||||||||||||||||||||||||||||||||
Other assets
|
65,426 | 62,305 | 65,081 | 67,860 | 67,914 | 5.0 | (3.7 | ) | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses
|
(15,647 | ) | (14,300 | ) | (13,966 | ) | (14,310 | ) | (12,154 | ) | 9.4 | 28.7 | ||||||||||||||||||||||||||||||||||||
Total assets
|
$ | 1,131,259 | $ | 1,128,517 | $ | 1,139,043 | $ | 1,134,662 | $ | 1,145,607 | 0.2 | (1.3 | ) | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits
|
$ | 131,628 | 0.22 | % | $ | 128,592 | 0.22 | % | $ | 132,023 | 0.24 | % | $ | 132,563 | 0.25 | % | $ | 127,986 | 0.25 | % | 2.4 | 2.9 | ||||||||||||||||||||||||||
Money market and savings deposits
|
260,841 | 0.93 | 258,713 | 0.84 | 259,511 | 0.81 | 259,273 | 0.72 | 256,818 | 0.68 | 0.8 | 1.6 | ||||||||||||||||||||||||||||||||||||
Certificates of deposit $100,000 or more
|
259,179 | 1.70 | 256,167 | 1.77 | 258,542 | 1.91 | 251,340 | 2.09 | 259,538 | 2.24 | 1.2 | (0.1 | ) | |||||||||||||||||||||||||||||||||||
Other time deposits
|
208,301 | 2.10 | 208,808 | 2.23 | 212,098 | 2.37 | 215,987 | 2.56 | 219,731 | 2.67 | (0.2 | ) | (5.2 | ) | ||||||||||||||||||||||||||||||||||
Interest-bearing deposits
|
859,949 | 1.34 | 852,280 | 1.37 | 862,174 | 1.44 | 859,163 | 1.51 | 864,073 | 1.59 | 0.9 | (0.5 | ) | |||||||||||||||||||||||||||||||||||
Short-term borrowings
|
14,165 | 0.37 | 15,381 | 0.39 | 16,092 | 0.38 | 15,771 | 0.48 | 18,032 | 0.71 | (7.9 | ) | (21.5 | ) | ||||||||||||||||||||||||||||||||||
Long-term debt
|
932 | 4.56 | 932 | 4.46 | 1,429 | 4.36 | 1,429 | 4.40 | 1,429 | 4.45 | - | (34.8 | ) | |||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
875,046 | 1.32 | % | 868,593 | 1.35 | % | 879,695 | 1.42 | % | 876,363 | 1.50 | % | 883,534 | 1.58 | % | 0.7 | (1.0 | ) | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits
|
122,300 | 126,164 | 121,844 | 117,586 | 118,192 | (3.1 | ) | 3.5 | ||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities
|
11,447 | 10,419 | 12,196 | 15,043 | 15,800 | 9.9 | (27.6 | ) | ||||||||||||||||||||||||||||||||||||||||
Stockholders' equity
|
122,466 | 123,341 | 125,308 | 125,670 | 128,081 | (0.7 | ) | (4.4 | ) | |||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,131,259 | $ | 1,128,517 | $ | 1,139,043 | $ | 1,134,662 | $ | 1,145,607 | 0.2 | (1.3 | ) | |||||||||||||||||||||||||||||||||||
Net interest spread
|
3.56 | % | 3.85 | % | 3.76 | % | 3.76 | % | 3.66 | % | ||||||||||||||||||||||||||||||||||||||
Net interest margin
|
3.79 | % | 4.09 | % | 4.00 | % | 4.03 | % | 3.95 | % |
Page 11 of 11
|
|
Reconciliation of Non-GAAP Measures
|
|
(In thousands, except per share data)
|
1Q 11
|
4Q 10
|
3Q 10
|
2Q 10
|
1Q 10
|
||||||||||||||||
The following reconciles return on average equity and return on average tangible equity (Note 1):
|
||||||||||||||||||||
Net (loss) income
|
$ | (1,083 | ) | $ | 850 | $ | (1,400 | ) | $ | 445 | $ | (1,562 | ) | |||||||
Net (loss) income - annualized (A)
|
$ | (4,392 | ) | $ | 3,372 | $ | (5,554 | ) | $ | 1,785 | $ | (6,335 | ) | |||||||
Net (loss) income, excluding net amortization and impairment charges of intangible assets
|
$ | (1,005 | ) | $ | 928 | $ | (409 | ) | $ | 523 | $ | (1,484 | ) | |||||||
Net (loss) income, excluding net amortization and impairment charges of intangible assets - annualized (B)
|
$ | (4,076 | ) | $ | 3,682 | $ | (1,623 | ) | $ | 2,098 | $ | (6,018 | ) | |||||||
Average stockholders' equity (C)
|
$ | 122,466 | $ | 123,341 | $ | 125,308 | $ | 125,670 | $ | 128,081 | ||||||||||
Less: Average goodwill and other intangible assets
|
(18,465 | ) | (17,877 | ) | (21,016 | ) | (21,178 | ) | (21,309 | ) | ||||||||||
Average tangible equity (D)
|
$ | 104,001 | $ | 105,464 | $ | 104,292 | $ | 104,492 | $ | 106,772 | ||||||||||
Return on average equity (GAAP) (A)/(C)
|
(3.59 | ) % | 2.73 | % | (4.43 | ) % | 1.42 | % | (4.95 | ) % | ||||||||||
Return on average tangible equity (Non-GAAP) (B)/(D)
|
(3.92 | ) % | 3.49 | % | (1.56 | ) % | 2.01 | % | (5.64 | ) % | ||||||||||
The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio (Note 2):
|
||||||||||||||||||||
Noninterest expense (E)
|
$ | 9,891 | $ | 9,082 | $ | 12,629 | $ | 9,688 | $ | 10,321 | ||||||||||
Less: Amortization of intangible assets
|
(129 | ) | (129 | ) | (128 | ) | (129 | ) | (129 | ) | ||||||||||
Impairment charges
|
- | - | (3,051 | ) | - | - | ||||||||||||||
Adjusted noninterest expense (F)
|
$ | 9,762 | $ | 8,953 | $ | 9,450 | $ | 9,559 | $ | 10,192 | ||||||||||
Net interest income (G)
|
$ | 9,862 | $ | 10,866 | $ | 10,687 | $ | 10,691 | $ | 10,395 | ||||||||||
Noninterest income (H)
|
$ | 4,395 | $ | 3,948 | $ | 4,643 | $ | 4,568 | $ | 4,882 | ||||||||||
Less: Investment securities (gains)/losses
|
(79 | ) | - | - | - | - | ||||||||||||||
Other nonrecurring (gains)/losses
|
- | - | (224 | ) | - | - | ||||||||||||||
Adjusted noninterest income (I)
|
$ | 4,316 | $ | 3,948 | $ | 4,419 | $ | 4,568 | $ | 4,882 | ||||||||||
Efficiency ratio (GAAP) (E)/(G)+(H)
|
69.38 | % | 61.31 | % | 82.38 | % | 63.49 | % | 67.56 | % | ||||||||||
Efficiency ratio (Non-GAAP) (F)/(G)+(I)
|
68.85 | % | 60.44 | % | 62.56 | % | 62.64 | % | 66.71 | % | ||||||||||
The following reconciles book value per common share and tangible book value per common share (Note 1):
|
||||||||||||||||||||
Stockholders' equity (J)
|
$ | 120,926 | $ | 122,513 | $ | 122,355 | $ | 124,666 | $ | 125,108 | ||||||||||
Less: Goodwill and other intangible assets
|
(18,389 | ) | (18,518 | ) | (17,923 | ) | (21,102 | ) | (21,231 | ) | ||||||||||
Tangible equity (K)
|
$ | 102,537 | $ | 103,995 | $ | 104,432 | $ | 103,564 | $ | 103,877 | ||||||||||
Shares outstanding (L)
|
8,443 | 8,443 | 8,443 | 8,443 | 8,443 | |||||||||||||||
Book value per common share (GAAP) (J)/(L)
|
$ | 14.32 | $ | 14.51 | $ | 14.49 | $ | 14.77 | $ | 14.82 | ||||||||||
Tangible book value per common share (Non-GAAP) (K)/(L)
|
$ | 12.14 | $ | 12.32 | $ | 12.37 | $ | 12.27 | $ | 12.30 | ||||||||||
The following reconciles average equity to average assets and average tangible equity to average tangible assets (Note 1):
|
||||||||||||||||||||
Average stockholders' equity (M)
|
$ | 122,466 | $ | 123,341 | $ | 125,308 | $ | 125,670 | $ | 128,081 | ||||||||||
Less: Average goodwill and other intangible assets
|
(18,465 | ) | (17,877 | ) | (21,016 | ) | (21,178 | ) | (21,309 | ) | ||||||||||
Average tangible equity (N)
|
$ | 104,001 | $ | 105,464 | $ | 104,292 | $ | 104,492 | $ | 106,772 | ||||||||||
Average assets (O)
|
$ | 1,131,259 | $ | 1,128,517 | $ | 1,139,043 | $ | 1,134,662 | $ | 1,145,607 | ||||||||||
Less: Average goodwill and other intangible assets
|
(18,465 | ) | (17,877 | ) | (21,016 | ) | (21,178 | ) | (21,309 | ) | ||||||||||
Average tangible assets (P)
|
$ | 1,112,794 | $ | 1,110,640 | $ | 1,118,027 | $ | 1,113,484 | $ | 1,124,298 | ||||||||||
Average equity/average assets (GAAP) (M)/(O)
|
10.83 | % | 10.93 | % | 11.00 | % | 11.08 | % | 11.18 | % | ||||||||||
Average tangible equity/average tangible assets (Non-GAAP) (N)/(P)
|
9.35 | % | 9.50 | % | 9.33 | % | 9.38 | % | 9.50 | % |