PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2011

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 24. PARENT COMPANY FINANCIAL INFORMATION

The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company Only).

Condensed Balance Sheets

December 31,

(Dollars in thousands)	2011			2010
Assets
Cash	$	1,316		$	1,344
Investment in subsidiaries		121,567			123,570
Premises and equipment, net		2,711			2,877
Other assets		1,519			1,422
Total assets	$	127,113		$	129,213
Liabilities
Accrued interest payable	$	91		$	139
Deferred tax liability		1,383			1,458
Other liabilities		1,040			971
Long-term debt		3,350			4,132
Total liabilities		5,864			6,700
Stockholders’ equity
Common stock		85			84
Warrant		-			1,543
Additional paid in capital		32,052			30,242
Retained earnings		90,801			92,458
Accumulated other comprehensive loss		(1,689	)		(1,814	)
Total stockholders’ equity		121,249			122,513
Total liabilities and stockholders’ equity	$	127,113		$	129,213

Condensed Statements of (Loss) Income

For the Years Ended December 31,

(Dollars in thousands)	2011			2010			2009
Income
Dividends from subsidiaries	$	1,519		$	2,786		$	5,725
Management and other fees from subsidiaries		5,783			6,095			5,952
Other income		245			70			76
Interest income		6			1			68
Total income		7,553			8,952			11,821
Expenses
Interest expense		154			172			87
Salaries and employee benefits		3,977			4,120			4,351
Occupancy and equipment expense		471			494			427
Other operating expenses		1,360			1,499			1,476
Total expenses		5,962			6,285			6,341
Income before income tax expense and equity in undistributed net income of subsidiaries		1,591			2,667			5,480
Income tax (benefit) expense		(190	)		151			125
Income before equity in undistributed net income of subsidiaries		1,781			2,516			5,355
Equity in undistributed net (loss) income of subsidiaries		(2,678	)		(4,183	)		1,918
Net (loss) income		(897	)		(1,667	)		7,273
Preferred stock dividends and discount accretion		-			-			1,876
Net (loss) income available to common stockholders	$	(897	)	$	(1,667	)	$	5,397

Condensed Statements of Cash Flows

For the Years Ended December 31,

(Dollars in thousands)	2011			2010			2009
Cash flows from operating activities:
Net (loss) income	$	(897	)	$	(1,667	)	$	7,273
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Equity in undistributed net loss (income) of subsidiaries		2,678			4,183			(1,918	)
Depreciation		223			235			215
Stock-based compensation expense		338			390			102
Excess tax expense from stock-based arrangements		(45	)		(20	)		(5	)
Net (increase) decrease in other assets		(72	)		308			(808	)
Net (decrease) increase in other liabilities		(99	)		406			114
Net cash provided by operating activities		2,126			3,835			4,973
Cash flows from investing activities:
Purchases of premises and equipment		(57	)		(109	)		(333	)
Investment in unconsolidated subsidiary		(25	)		(25	)		-
Investment in subsidiaries		(550	)		-			(3,400	)
Net cash used by investing activities		(632	)		(134	)		(3,733	)
Cash flows from financing activities:
Net (decrease) increase in short-term borrowings		-			(3,378	)		3,378
Proceeds from long-term debt		-			3,200			-
Repayment of long-term debt		(782	)		(497	)		(518	)
Excess tax expense from stock-based arrangements		45			20			5
Proceeds from issuance of preferred stock and warrant		-			-			25,000
Redemption of preferred stock		-			-			(23,525	)
Repurchase of warrant		(25	)		-			-
Proceeds from issuance of common stock		-			-			2
Preferred stock dividends paid		-			-			(1,808	)
Common stock dividends paid		(760	)		(2,026	)		(5,386	)
Net cash used by financing activities		(1,522	)		(2,681	)		(2,852	)
Net (decrease) increase in cash and cash equivalents		(28	)		1,020			(1,612	)
Cash and cash equivalents at beginning of year		1,344			324			1,936
Cash and cash equivalents at end of year	$	1,316		$	1,344		$	324