Parent Company Financial Information

12 Months Ended

Dec. 31, 2020

Parent Company Financial Information [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

NOTE 23. 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)	2020		2019
Assets
Cash	$	16,653	$	7,522
Investment in subsidiaries		201,462		183,183
Other assets		3,204		2,483
Total assets	$	221,319	$	193,188
Liabilities
Accrued interest payable	$	482	$	—
Other liabilities		1,389		386
Long-term debt		24,429		—
Total liabilities		26,300		386
Stockholders’ equity
Common stock		118		125
Additional paid in capital		52,167		61,045
Retained earnings		141,205		131,425
Accumulated other comprehensive income		1,529		207
Total stockholders’ equity		195,019		192,802
Total liabilities and stockholders’ equity	$	221,319	$	193,188

Condensed Statements of Income

For the Years Ended December 31,

(Dollars in thousands)	2020		2019
Income
Management and other fees from subsidiaries	$	—	$	498
Gain on company owned life insurance		152		4
Other operating income		—		62
Total income		152		564
Expenses
Interest expense		522		22
Salaries and employee benefits		349		111
Legal and professional fees		600		658
Other operating expenses		251		274
Total expenses		1,722		1,065
(Loss) before income tax (benefit) and equity in
undistributed net income of subsidiaries		(1,570)		(501)
Income tax (benefit)		(343)		(131)
(Loss) before equity in undistributed net income of subsidiaries		(1,227)		(370)
Equity in undistributed net income of subsidiaries		16,957		16,568
Net income	$	15,730	$	16,198

Condensed Statements of Cash Flows

For the Years Ended December 31,

(Dollars in thousands)	2020		2019
Cash flows from operating activities:
Net income	$	15,730	$	16,198
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Equity in undistributed net income of subsidiaries		(16,957)		(16,568)
Amortization of debt issuance costs		40		—
Stock-based compensation expense		263		149
Company owned life insurance income		(152)		—
Net (increase) in other assets		(250)		(1,093)
Net increase (decrease) in other liabilities		1,485		(6,109)
Net cash provided by (used in) operating activities		159		(7,423)
Cash flows from investing activities:
Purchase of company owned life insurance		(319)		(139)
Transfer to subsidiary		—		(571)
Net cash (used in) investing activities		(319)		(710)
Cash flows from financing activities:
Increase in short-term borrowings		—		(1,041)
Proceeds from the issuance of subordinated debt, net of issuance costs		24,389		—
Common stock dividends paid		(5,950)		(5,347)
Retirement of common stock		(9,112)		(4,452)
Exercise of stock options		3		—
Repurchase of shares for tax withholding on exercised options
and vested restricted stock		(39)		(88)
Net cash provided by (used in) financing activities		9,291		(10,928)
Net increase (decrease) in cash and cash equivalents		9,131		(19,061)
Cash and cash equivalents at beginning of year		7,522		26,583
Cash and cash equivalents at end of year	$	16,653	$	7,522
Supplemental cash flow information:
Transfer of building, available for sale securities and other assets to banking subsidiary	$	—	$	5,032