PARENT COMPANY FINANCIAL INFORMATION (Table)

12 Months Ended

Dec. 31, 2018

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


Condensed Balance Sheets
December 31,

(Dollars in thousands)	2018		2017
Assets
Cash	$	26,583	$	683
Investment securities available for sale, at fair value		918		1,127
Investment in subsidiaries		157,855		157,880
Premises and equipment, net		3,772		3,435
Other assets		1,593		2,209
Total assets	$	190,721	$	165,334

Liabilities
Accrued interest payable	$	1	$	-
Other liabilities		6,494		932
Short-term borrowings		1,041		666
Total liabilities		7,536		1,598

Stockholders' equity
Common stock		127		127
Additional paid in capital		65,434		65,256
Retained earnings		120,574		99,662
Accumulated other comprehensive loss		(2,950)		(1,309)
Total stockholders' equity		183,185		163,736

Total liabilities and stockholders' equity	$	190,721	$	165,334


Condensed Statements of Income
For the Years Ended December 31,

(Dollars in thousands)	2018		2017
Income
Dividends from subsidiaries	$	4,000	$	1,000
Management and other fees from subsidiaries		8,160		7,811
Gain on sale of subsidiary		12,736		-
Other operating income		30		94
Total income		24,926		8,905

Expenses
Interest expense		54		36
Salaries and employee benefits		4,580		4,799
Occupancy and equipment expense		630		592
Other operating expenses		3,421		2,878
Total expenses		8,685		8,305

Income before income tax expense (benefit) and equity in
undistributed net income of subsidiaries		16,241		600
Income tax expense (benefit)		4,298		(138)
Income before equity in undistributed net income of subsidiaries		11,943		738

Equity in undistributed net income of subsidiaries		13,054		10,524
Net income	$	24,997	$	11,262


Condensed Statements of Cash Flows
For the Years Ended December 31,

(Dollars in thousands)	2018		2017
Cash flows from operating activities:
Net income	$	24,997	$	11,262
Adjustments to reconcile net income to cash
provided by operating activities:
Equity in undistributed net income of subsidiaries		(13,054)		(10,524)
Depreciation and amortization		469		452
Stock-based compensation expense		447		1,055
Gain on sale of subsidiary		(12,736)		-
Net decrease in other assets		1,001		843
Net increase (decrease) in other liabilities		3,267		(806)
Net cash provided by operating activities		4,391		2,282

Cash flows from investing activities:
Proceeds from maturities and principal payments of
investment securities available for sale		187		534
Purchases of premises and equipment		(590)		(148)
Payments for advances to subsidiary		-		(267)
Cash of subsidiary retained upon disposal		726		-
Proceeds from sale of subsidiary		25,159		-
Net cash provided by investing activities		25,482		119

Cash flows from financing activities:
Increase in short-term borrowings		375		666
Repayment of long-term debt		-		(843)
Common stock dividends paid		(4,079)		(2,790)
Repurchase of shares for tax withholding on exercised options
and vested restricted stock		(269)		-
Net cash used in financing activities		(3,973)		(2,967)

Net increase (decrease) in cash and cash equivalents		25,900		(566)
Cash and cash equivalents at beginning of year		683		1,249
Cash and cash equivalents at end of year	$	26,583	$	683

Supplemental cash flow information:
Transfer of available for sale securities to banking subsidiary	$	-	$	10,233