PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2017

PARENT COMPANY FINANCIAL INFORMATION [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

NOTE 25. 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)	2017		2016
Assets
Cash	$	683	$	1,249
Investment securities available for sale, at fair value		1,127		11,846
Investment in subsidiaries		157,880		137,078
Premises and equipment, net		3,435		3,547
Other assets		2,209		3,160
Total assets	$	165,334	$	156,880
Liabilities
Accrued interest payable	$	-	$	1
Other liabilities		932		1,737
Short-term borrowings		666		-
Long-term debt		-		843
Total liabilities		1,598		2,581
Stockholders' equity
Common stock		127		127
Additional paid in capital		65,256		64,201
Retained earnings		99,662		90,964
Accumulated other comprehensive loss		(1,309)		(993)
Total stockholders' equity		163,736		154,299
Total liabilities and stockholders' equity	$	165,334	$	156,880

Condensed Statement of Income
For the Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Income
Dividends from subsidiaries	$	1,000	$	1,230	$	1,045
Management and other fees from subsidiaries		7,811		8,960		8,723
Other income		94		278		228
Total income		8,905		10,468		9,996
Expenses
Interest expense		36		46		61
Salaries and employee benefits		4,799		6,296		5,536
Occupancy and equipment expense		592		559		531
Other operating expenses		2,878		2,507		3,009
Total expenses		8,305		9,408		9,137
Income before income tax benefit and equity in
undistributed net income of subsidiaries		600		1,060		859
Income tax benefit		(138)		(58)		(65)
Income before equity in undistributed net income of subsidiaries		738		1,118		924
Equity in undistributed net income of subsidiaries		10,524		8,520		6,184
Net income	$	11,262	$	9,638	$	7,108

Condensed Statements of Cash Flows
For the Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Cash flows from operating activities:
Net income	$	11,262	$	9,638	$	7,108
Adjustments to reconcile net income to cash
provided by operating activities:
Equity in undistributed net income of subsidiaries		(10,524)		(8,520)		(6,184)
Depreciation and amortization		452		288		336
Stock-based compensation expense		1,055		334		283
Net decrease (increase) in other assets		843		(669)		(1,108)
Net (decrease) increase in other liabilities		(806)		533		328
Net cash provided by operating activities		2,282		1,604		763
Cash flows from investing activities:
Proceeds from maturities and principal payments of
investment securities available for sale		534		2,171		1,418
Purchases of securities		-		(2,032)		(4,054)
Purchases of premises and equipment		(148)		(175)		(672)
Cash received from merged subsidiary		-		-		3,349
Payments for investments in and advances to subsidiary		(267)		-		-
Net cash provided by (used in) investing activities		119		(36)		41
Cash flows from financing activities:
Increase in short-term borrowings		666		-		-
Repayment of long-term debt		(843)		(500)		(500)
Proceeds from issuance of common stock		-		53		-
Common stock dividends paid		(2,790)		(1,771)		(506)
Net cash used in financing activities		(2,967)		(2,218)		(1,006)
Net decrease in cash and cash equivalents		(566)		(650)		(202)
Cash and cash equivalents at beginning of year		1,249		1,899		2,101
Cash and cash equivalents at end of year	$	683	$	1,249	$	1,899
Supplemental cash flow information:
Transfer of available for sale securities to banking subsidiary	$	10,233	$	-	$	-