Exhibit 99.1
Shore Bancshares, Inc.
18 E. Dover Street
Easton, Maryland 21601
Phone 410-822-1400
PRESS RELEASE
Shore Bancshares Reports 2008 Earnings Results
Easton, Maryland (01/28/2009) - Shore Bancshares, Inc. (NASDAQ - SHBI) reported net income of $2.3 million or $0.27 per diluted share for the fourth quarter of 2008, compared to $3.1 million or $0.37 per diluted share for the third quarter of 2008 and $3.3 million or $0.40 per diluted share for the fourth quarter of 2007. Net income for 2008 was $11.5 million or $1.37 per diluted share, compared to $13.4 million or $1.60 per diluted share for 2007.
“In spite of the current economy, we produced good net income and, even during this tough operating environment for all banks, we think several of the main measures of our performance are encouraging and will turn out to be above peer averages. For instance, our net interest margin has held up well and was 4.24% and 4.23%, for the fourth quarter and full year, respectively,” said W. Moorhead Vermilye, president and chief executive officer.
“Loans grew 14.4% and deposits grew 10.4% during 2008. Stockholders’ equity increased by nearly 6% during the year. Noninterest revenue advanced 38.6% for 2008 compared to the previous year.”
“We believe overall credit quality is fundamentally sound, although there was predictable deterioration. Our ratio of nonperforming assets to total assets was 0.79% at December 31, 2008. Although year-to-date annualized net charge-offs as a percentage of average loans amounted to 0.19%, we maintained our loan-loss reserve coverage at 1.05% of period-end loans.”
“We believe these statistics are the product of our conservative balance sheet management and a focus on consistent performance. It’s also evidence of the determined efforts of our people to further grow our leadership position across the company’s Delmarva footprint. Even in this unprecedented banking environment, we think we’ve done a good job of solidifying our reputation as the bank of choice for area customers and the employer of choice for the top bankers here,” according to Vermilye.
The Company’s return on average assets for the fourth quarter of 2008 was 0.87%, compared to 1.19% and 1.40% for the quarters ended September 30, 2008 and December 31, 2007, respectively. The return on average stockholders’ equity was 7.11% for the fourth quarter of 2008, compared to 9.81% for the third quarter of 2008 and 11.78% for the fourth quarter of 2007.
The Company’s return on average assets for 2008 was 1.13%, compared to 1.42% for 2007. The return on average stockholders’ equity was 9.22% for 2008, compared to 11.79% for 2007.
Page 2 of 8
At December 31, 2008, total assets were $1.045 billion, total deposits were $845.4 million, and total stockholders’ equity was $127.4 million, an increase of 9.2%, 10.4% and 5.9%, respectively, when compared to the same amounts at December 31, 2007. The increase in total assets of $87.7 million since December 31, 2007 related mainly to loan growth, funded primarily by deposit growth. The growth in loans was $112.2 million, or 14.4%, during 2008, with period-end loans totaling $888.5 million at December 31, 2008.
Review of Quarterly Financial Results
Net interest income for the fourth quarter of 2008 was $10.3 million, an increase of 4.4% from the third quarter of 2008 and a slight decrease from the same period last year. Higher loan volume and lower cost of funds were the primary reasons for the increase from the third quarter of 2008. Lower yields on earning assets was the primary reason for the decrease from the fourth quarter of 2007. The Company’s net interest margin was 4.24% for the fourth quarter of 2008, an increase of 14 basis points when compared to the third quarter of 2008 and a decrease of 46 basis points when compared to the fourth quarter of 2007.
The provision for credit losses was $1.4 million for the three months ended December 31, 2008. The comparable amounts were $875 thousand and $465 thousand for the three months ended September 30, 2008 and December 31, 2007, respectively. The increased provision for the fourth quarter of 2008 when compared to the third quarter of 2008 and the fourth quarter of 2007 reflected the continued growth in the loan portfolio, an increase in nonperforming assets and loan charge-offs, as well as overall economic conditions. Net charge-offs were $683 thousand for the fourth quarter of 2008, $539 thousand for the third quarter of 2008 and $135 thousand for the fourth quarter of 2007. Quarter-to-date annualized net charge-offs to average loans was 0.31% for the fourth quarter of 2008, 0.25% for the third quarter of 2008 and 0.06% for the fourth quarter of 2007. Nonperforming assets to total assets was 0.79% at December 31, 2008. The comparable nonperforming asset ratio was 0.72% at September 30, 2008 and 0.39% at December 31, 2007. The allowance for credit losses to period-end loans increased to 1.05% at December 31, 2008, compared to 1.00% at September 30, 2008 and 0.97% at December 31, 2007. Management believes that the provision for credit losses and the resulting allowance were adequate at December 31, 2008.
Total noninterest income for the fourth quarter of 2008 decreased $307 thousand when compared to the fourth quarter of 2007 primarily due to a decline in insurance agency commissions. Total noninterest income decreased $838 thousand from the third quarter of 2008. Included in noninterest income for the third quarter of 2008 was a $1.3 million gain on the sale of a bank branch to the State of Maryland as part of a road widening project. The branch remains open and the bank will move the branch operations to a new facility in the future. The gain on the branch sale was partially offset by a $371 thousand impairment loss of Freddie Mac Preferred Stock and a $337 thousand loss on the sale of the Company’s investment in Delmarva Bank Data Processing Center, Inc., an unconsolidated subsidiary. Also contributing to the decrease in noninterest income from the third quarter of 2008 was a $350 thousand decrease in insurance agency commissions.
Total noninterest expense for the fourth quarter of 2008 increased $319 thousand when compared to the fourth quarter of 2007 primarily due to increased salaries and benefits. Total noninterest expense increased $192 thousand from the third quarter of 2008 due to an increase in general operating costs.
Page 3 of 8
Review of 2008 Financial Results
Net interest income for 2008 was $39.9 million, a decrease of 2.7% when compared to 2007. The decrease was primarily the result of lower yields on earning assets. The net interest margin declined 41 basis points from 4.64% for 2007 to 4.23% for 2008.
The provisions for credit losses for 2008 and 2007 were $3.3 million and $1.7 million, respectively. The increased provision in 2008 reflected the overall growth of the loan portfolio, an increase in nonperforming assets and loan charge-offs, and a deterioration in overall economic conditions. Net charge-offs were $1.6 million and $473 thousand for 2008 and 2007, respectively. Net charge-offs to average loans was 0.19% for 2008 and 0.06% for 2007.
Total noninterest income for 2008 was $20.3 million, an increase of $5.7 million when compared to 2007. The increase was primarily due to an increase in insurance agency commissions and other noninterest income. The increase in insurance agency commissions was primarily due to the acquisition of two insurance agencies during the fourth quarter of 2007. Noninterest income included the previously mentioned $1.3 million gain on the land and bank building sale, a $371 thousand impairment loss on Freddie Mac Preferred stock and the $337 thousand investment loss.
Total noninterest expense for 2008 was $38.4 million, an increase of $5.8 million when compared to the previous year. The increase was primarily attributable to the operating expenses of the two insurance agencies acquired during the fourth quarter of 2007. Salaries and benefits increased $3.3 million and other noninterest expenses increased $2.2 million for 2008 when compared to 2007. The majority of the increase in noninterest expenses, including salaries and benefits, related to the new insurance agencies.
Shore Bancshares Information
Shore Bancshares, Inc. is a financial holding company headquartered in Easton, Maryland and is the largest independent bank holding company located on Maryland’s Eastern Shore. It is the parent company of three banks, The Talbot Bank of Easton, Maryland, The Centreville National Bank of Maryland, and The Felton Bank; three insurance producer firms, The Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin and Associates, Inc; a wholesale insurance company, TSGIA, Inc; two insurance premium finance companies, Mubell Finance, LLC and ESFS, Inc; a registered investment adviser firm, Wye Financial Services, LLC; and a mortgage broker subsidiary, Wye Mortgage Group, LLC.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical facts, but statements about management’s beliefs, plans and objectives. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Shore Bancshares, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.
# # #
For further information contact: W. Moorhead Vermilye, President and CEO – 410/819-3047.
Page 4 of 8
Shore Bancshares, Inc.
Financial Highlights
(Dollars in thousands, except per share data)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2008 | 2007 | % Change | 2008 | 2007 | % Change | |||||||||||||||||||
PROFITABILITY FOR THE PERIOD | ||||||||||||||||||||||||
Net interest income | $ | 10,348 | $ | 10,426 | (0.7 | ) % | $ | 39,919 | $ | 41,036 | (2.7 | ) % | ||||||||||||
Provision for credit losses | 1,385 | 465 | 197.8 | 3,337 | 1,724 | 93.6 | ||||||||||||||||||
Noninterest income | 4,408 | 4,715 | (6.5 | ) | 20,350 | 14,679 | 38.6 | |||||||||||||||||
Noninterest expense | 9,621 | 9,302 | 3.4 | 38,370 | 32,539 | 17.9 | ||||||||||||||||||
Income before income taxes | 3,750 | 5,374 | (30.2 | ) | 18,562 | 21,452 | (13.5 | ) | ||||||||||||||||
Income tax expense | 1,489 | 2,034 | (26.8 | ) | 7,092 | 8,002 | (11.4 | ) | ||||||||||||||||
Net income | $ | 2,261 | $ | 3,340 | (32.3 | ) | $ | 11,470 | $ | 13,450 | (14.7 | ) | ||||||||||||
Return on average assets | 0.87 | % | 1.40 | % | (37.9 | ) % | 1.13 | % | 1.42 | % | (20.4 | ) % | ||||||||||||
Return on average equity | 7.11 | 11.78 | (39.6 | ) | 9.22 | 11.79 | (21.8 | ) | ||||||||||||||||
Net interest margin | 4.24 | 4.70 | (9.8 | ) | 4.23 | 4.64 | (8.8 | ) | ||||||||||||||||
Efficiency ratio - GAAP based | 65.20 | 61.44 | 6.1 | 63.66 | 58.40 | 9.0 | ||||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||
Basic net income | $ | 0.27 | $ | 0.40 | (32.5 | ) % | $ | 1.37 | $ | 1.61 | (14.9 | ) % | ||||||||||||
Diluted net income | 0.27 | 0.40 | (32.5 | ) | 1.37 | 1.60 | (14.4 | ) | ||||||||||||||||
Dividends paid | 0.16 | 0.16 | - | 0.64 | 0.64 | - | ||||||||||||||||||
Book value at period end | 15.16 | 14.35 | 5.6 | |||||||||||||||||||||
Tangible book value at period end | 12.55 | 11.68 | 7.4 | |||||||||||||||||||||
Market value at period end | 23.99 | 21.95 | 9.3 | |||||||||||||||||||||
Market range: | ||||||||||||||||||||||||
High | 25.97 | 24.72 | 5.1 | 27.25 | 30.76 | (11.4 | ) | |||||||||||||||||
Low | 17.50 | 20.00 | (12.5 | ) | 17.50 | 20.00 | (12.5 | ) | ||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||
Loans | $ | 888,528 | $ | 776,350 | 14.4 | % | ||||||||||||||||||
Securities | 89,456 | 110,033 | (18.7 | ) | ||||||||||||||||||||
Assets | 1,044,641 | 956,911 | 9.2 | |||||||||||||||||||||
Deposits | 845,371 | 765,895 | 10.4 | |||||||||||||||||||||
Stockholders' equity | 127,385 | 120,235 | 5.9 | |||||||||||||||||||||
CAPITAL AND CREDIT QUALITY RATIOS | ||||||||||||||||||||||||
Average equity to average assets | 12.22 | % | 11.91 | % | 12.30 | % | 12.04 | % | ||||||||||||||||
Annualized net charge-offs to average loans | 0.31 | 0.06 | 0.19 | 0.06 | ||||||||||||||||||||
Allowance for credit losses to period-end loans | 1.05 | 0.97 | ||||||||||||||||||||||
Nonperforming assets to total assets | 0.79 | 0.39 |
Page 5 of 8
Shore Bancshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
Dec. 31, 2008 | ||||||||||||
Dec. 31, | Dec. 31, | compared to | ||||||||||
2008 | 2007 | Dec. 31, 2007 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 16,803 | $ | 17,198 | (2.3 | ) % | ||||||
Interest-bearing deposits with other banks | 481 | 3,036 | (84.2 | ) | ||||||||
Federal funds sold | 10,010 | 6,646 | 50.6 | |||||||||
Investments available-for-sale (at fair value) | 79,204 | 97,137 | (18.5 | ) | ||||||||
Investments held-to-maturity | 10,252 | 12,896 | (20.5 | ) | ||||||||
Loans | 888,528 | 776,350 | 14.4 | |||||||||
Less: allowance for credit losses | (9,320 | ) | (7,551 | ) | 23.4 | |||||||
Loans, net | 879,208 | 768,799 | 14.4 | |||||||||
Premises and equipment, net | 13,855 | 15,617 | (11.3 | ) | ||||||||
Accrued interest receivable | 4,606 | 5,008 | (8.0 | ) | ||||||||
Goodwill | 15,954 | 15,954 | - | |||||||||
Other intangible assets, net | 5,921 | 6,436 | (8.0 | ) | ||||||||
Other real estate owned | 148 | 176 | (15.9 | ) | ||||||||
Other assets | 8,199 | 8,008 | 2.4 | |||||||||
Total assets | $ | 1,044,641 | $ | 956,911 | 9.2 | |||||||
LIABILITIES | ||||||||||||
Noninterest-bearing deposits | $ | 102,584 | $ | 104,081 | (1.4 | ) | ||||||
Interest-bearing deposits | 742,787 | 661,814 | 12.2 | |||||||||
Total deposits | 845,371 | 765,895 | 10.4 | |||||||||
Short-term borrowings | 52,969 | 47,694 | 11.1 | |||||||||
Long-term debt | 7,947 | 12,485 | (36.3 | ) | ||||||||
Accrued interest payable and other liabilities | 10,969 | 10,602 | 3.5 | |||||||||
Total liabilities | 917,256 | 836,676 | 9.6 | |||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Common stock, par value $0.01; authorized | ||||||||||||
35,000,000 shares | 84 | 84 | - | |||||||||
Additional paid in capital | 29,768 | 29,539 | 0.8 | |||||||||
Retained earnings | 96,140 | 90,365 | 6.4 | |||||||||
Accumulated other comprehensive income (loss) | 1,393 | 247 | 464.0 | |||||||||
Total stockholders' equity | 127,385 | 120,235 | 5.9 | |||||||||
Total liabilities and stockholders' equity | $ | 1,044,641 | $ | 956,911 | 9.2 | |||||||
Period-end shares outstanding | 8,405 | 8,381 | 0.3 | |||||||||
Book value per share | $ | 15.16 | $ | 14.35 | 5.6 |
Page 6 of 8
Shore Bancshares, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2008 | 2007 | % Change | 2008 | 2007 | % Change | |||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||
Interest and fees on loans | $ | 14,166 | $ | 14,958 | (5.3 | ) % | $ | 56,866 | $ | 57,524 | (1.1 | ) % | ||||||||||||
Interest and dividends on investment securities: | ||||||||||||||||||||||||
Taxable | 839 | 1,205 | (30.4 | ) | 3,788 | 5,105 | (25.8 | ) | ||||||||||||||||
Tax-exempt | 93 | 124 | (25.0 | ) | 420 | 511 | (17.8 | ) | ||||||||||||||||
Interest on federal funds sold | 24 | 120 | (80.0 | ) | 308 | 1,108 | (72.2 | ) | ||||||||||||||||
Interest on deposits with other banks | 4 | 46 | (91.3 | ) | 92 | 893 | (89.7 | ) | ||||||||||||||||
Total interest income | 15,126 | 16,453 | (8.1 | ) | 61,474 | 65,141 | (5.6 | ) | ||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||
Interest on deposits | 4,582 | 5,430 | (15.6 | ) | 19,877 | 21,693 | (8.4 | ) | ||||||||||||||||
Interest on short-term borrowings | 121 | 426 | (71.6 | ) | 1,147 | 1,264 | (9.3 | ) | ||||||||||||||||
Interest on long-term debt | 75 | 171 | (56.1 | ) | 531 | 1,148 | (53.7 | ) | ||||||||||||||||
Total interest expense | 4,778 | 6,027 | (20.7 | ) | 21,555 | 24,105 | (10.6 | ) | ||||||||||||||||
NET INTEREST INCOME | 10,348 | 10,426 | (0.7 | ) | 39,919 | 41,036 | (2.7 | ) | ||||||||||||||||
Provision for credit losses | 1,385 | 465 | 197.8 | 3,337 | 1,724 | 93.6 | ||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||||||||||
FOR CREDIT LOSSES | 8,963 | 9,961 | (10.0 | ) | 36,582 | 39,312 | (6.9 | ) | ||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||
Service charges on deposit accounts | 889 | 952 | (6.6 | ) | 3,600 | 3,372 | 6.8 | |||||||||||||||||
Investment securities gains (losses) | (15 | ) | 4 | (475.0 | ) | (15 | ) | 5 | (400.0 | ) | ||||||||||||||
Other than temporary impairment of securities | - | - | - | (371 | ) | - | - | |||||||||||||||||
Insurance agency commissions | 2,495 | 2,694 | (7.4 | ) | 12,090 | 7,698 | 57.1 | |||||||||||||||||
Other noninterest income | 1,039 | 1,065 | (2.4 | ) | 5,046 | 3,604 | 40.0 | |||||||||||||||||
Total noninterest income | 4,408 | 4,715 | (6.5 | ) | 20,350 | 14,679 | 38.6 | |||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||
Salaries and employee benefits | 5,776 | 5,520 | 4.6 | 23,321 | 19,991 | 16.7 | ||||||||||||||||||
Occupancy expense | 585 | 518 | 12.9 | 2,179 | 1,962 | 11.1 | ||||||||||||||||||
Furniture and equipment expense | 291 | 324 | (10.2 | ) | 1,185 | 1,312 | (9.7 | ) | ||||||||||||||||
Data processing | 476 | 467 | 1.9 | 1,872 | 1,820 | 2.9 | ||||||||||||||||||
Directors' fees | 132 | 178 | (25.8 | ) | 558 | 605 | (7.8 | ) | ||||||||||||||||
Amortization of intangible assets | 129 | 130 | (0.8 | ) | 515 | 333 | 54.7 | |||||||||||||||||
Other noninterest expenses | 2,232 | 2,165 | 3.1 | 8,740 | 6,516 | 34.1 | ||||||||||||||||||
Total noninterest expense | 9,621 | 9,302 | 3.4 | 38,370 | 32,539 | 17.9 | ||||||||||||||||||
Income before income taxes | 3,750 | 5,374 | (30.2 | ) | 18,562 | 21,452 | (13.5 | ) | ||||||||||||||||
Income tax expense | 1,489 | 2,034 | (26.8 | ) | 7,092 | 8,002 | (11.4 | ) | ||||||||||||||||
NET INCOME | $ | 2,261 | $ | 3,340 | (32.3 | ) | $ | 11,470 | $ | 13,450 | (14.7 | ) | ||||||||||||
Weighted average shares outstanding - basic | 8,388 | 8,380 | 0.1 | 8,384 | 8,380 | - | ||||||||||||||||||
Weighted average shares outstanding - diluted | 8,394 | 8,391 | - | 8,391 | 8,394 | - | ||||||||||||||||||
Basic net income per share | $ | 0.27 | $ | 0.40 | (32.5 | ) | $ | 1.37 | $ | 1.61 | (14.9 | ) | ||||||||||||
Diluted net income per share | 0.27 | 0.40 | (32.5 | ) | 1.37 | 1.60 | (14.4 | ) | ||||||||||||||||
Dividends paid per share | 0.16 | 0.16 | - | 0.64 | 0.64 | - |
Page 7 of 8
Shore Bancshares, Inc.
Financial Highlights By Quarter
(Dollars in thousands, except per share data)
4th quarter | 3rd quarter | 2nd quarter | 1st quarter | 4th quarter | 4Q 08 | 4Q 08 | ||||||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2007 | compared to | compared to | ||||||||||||||||||||||
(4Q 08) | (3Q 08) | (2Q 08) | (1Q 08) | (4Q 07) | 3Q 08 | 4Q 07 | ||||||||||||||||||||||
PROFITABILITY FOR THE PERIOD | ||||||||||||||||||||||||||||
Net interest income | $ | 10,348 | $ | 9,909 | $ | 9,632 | $ | 10,030 | $ | 10,426 | 4.4 | % | (0.7 | ) % | ||||||||||||||
Provision for credit losses | 1,385 | 875 | 615 | 462 | 465 | 58.3 | 197.8 | |||||||||||||||||||||
Noninterest income | 4,408 | 5,246 | 5,194 | 5,502 | 4,715 | (16.0 | ) | (6.5 | ) | |||||||||||||||||||
Noninterest expense | 9,621 | 9,429 | 9,729 | 9,591 | 9,302 | 2.0 | 3.4 | |||||||||||||||||||||
Income before income taxes | 3,750 | 4,851 | 4,482 | 5,479 | 5,374 | (22.7 | ) | (30.2 | ) | |||||||||||||||||||
Income tax expense | 1,489 | 1,780 | 1,716 | 2,107 | 2,034 | (16.3 | ) | (26.8 | ) | |||||||||||||||||||
Net income | $ | 2,261 | $ | 3,071 | $ | 2,766 | $ | 3,372 | $ | 3,340 | (26.4 | ) | (32.3 | ) | ||||||||||||||
Return on average assets | 0.87 | % | 1.19 | % | 1.12 | % | 1.38 | % | 1.40 | % | (26.9 | ) % | (37.9 | ) % | ||||||||||||||
Return on average equity | 7.11 | 9.81 | 8.98 | 10.96 | 11.78 | (27.5 | ) | (39.6 | ) | |||||||||||||||||||
Net interest margin | 4.24 | 4.10 | 4.17 | 4.42 | 4.70 | 3.4 | (9.8 | ) | ||||||||||||||||||||
Efficiency ratio - GAAP based | 65.20 | 62.22 | 65.62 | 61.75 | 61.44 | 4.8 | 6.1 | |||||||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||||||||||
Basic net income | $ | 0.27 | $ | 0.37 | $ | 0.33 | $ | 0.40 | $ | 0.40 | (27.0 | ) % | (32.5 | ) % | ||||||||||||||
Diluted net income | 0.27 | 0.37 | 0.33 | 0.40 | 0.40 | (27.0 | ) | (32.5 | ) | |||||||||||||||||||
Dividends paid | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | - | - | |||||||||||||||||||||
Book value at period end | 15.16 | 14.92 | 14.65 | 14.62 | 14.35 | 1.6 | 5.6 | |||||||||||||||||||||
Tangible book value at period end | 12.55 | 12.30 | 12.01 | 11.96 | 11.68 | 2.0 | 7.4 | |||||||||||||||||||||
Market value at period end | 23.99 | 25.70 | 18.72 | 21.45 | 21.95 | (6.7 | ) | 9.3 | ||||||||||||||||||||
Market range: | ||||||||||||||||||||||||||||
High | 25.97 | 27.25 | 26.47 | 23.40 | 24.72 | (4.7 | ) | 5.1 | ||||||||||||||||||||
Low | 17.50 | 18.00 | 18.52 | 20.00 | 20.00 | (2.8 | ) | (12.5 | ) | |||||||||||||||||||
AT PERIOD END | ||||||||||||||||||||||||||||
Loans | $ | 888,528 | $ | 865,437 | $ | 841,600 | $ | 808,583 | $ | 776,350 | 2.7 | % | 14.4 | % | ||||||||||||||
Securities | 89,456 | 93,149 | �� | 91,842 | 99,062 | 110,033 | (4.0 | ) | (18.7 | ) | ||||||||||||||||||
Assets | 1,044,641 | 1,037,026 | 1,019,463 | 1,003,836 | 956,911 | 0.7 | 9.2 | |||||||||||||||||||||
Deposits | 845,371 | 839,217 | 818,656 | 808,917 | 765,895 | 0.7 | 10.4 | |||||||||||||||||||||
Stockholders' equity | 127,385 | 125,401 | 123,038 | 122,699 | 120,235 | 1.6 | 5.9 | |||||||||||||||||||||
CAPITAL AND CREDIT QUALITY RATIOS | ||||||||||||||||||||||||||||
Average equity to average assets | 12.22 | % | 12.12 | % | 12.41 | % | 12.56 | % | 11.91 | % | ||||||||||||||||||
Annualized net charge-offs to average loans | 0.31 | 0.25 | 0.13 | 0.04 | 0.06 | |||||||||||||||||||||||
Allowance for credit losses to period-end loans | 1.05 | 1.00 | 0.98 | 0.98 | 0.97 | |||||||||||||||||||||||
Nonperforming assets to total assets | 0.79 | 0.72 | 0.47 | 0.34 | 0.39 |
Page 8 of 8
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter
(Dollars in thousands, except per share data)
4Q 08 | 4Q 08 | |||||||||||||||||||||||||||
compared to | compared to | |||||||||||||||||||||||||||
4Q 08 | 3Q 08 | 2Q 08 | 1Q 08 | 4Q 07 | 3Q 08 | 4Q 07 | ||||||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 14,166 | $ | 14,179 | $ | 13,961 | $ | 14,560 | $ | 14,958 | (0.1 | ) % | (5.3 | ) % | ||||||||||||||
Interest and dividends on investment securities: | ||||||||||||||||||||||||||||
Taxable | 839 | 924 | 945 | 1,080 | 1,205 | (9.2 | ) | (30.4 | ) | |||||||||||||||||||
Tax-exempt | 93 | 95 | 109 | 123 | 124 | (2.1 | ) | (25.0 | ) | |||||||||||||||||||
Interest on federal funds sold | 24 | 79 | 83 | 122 | 120 | (69.6 | ) | (80.0 | ) | |||||||||||||||||||
Interest on deposits with other banks | 4 | 21 | 29 | 38 | 46 | (81.0 | ) | (91.3 | ) | |||||||||||||||||||
Total interest income | 15,126 | 15,298 | 15,127 | 15,923 | 16,453 | (1.1 | ) | (8.1 | ) | |||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||||
Interest on deposits | 4,582 | 4,955 | 4,997 | 5,343 | 5,430 | (7.5 | ) | (15.6 | ) | |||||||||||||||||||
Interest on short-term borrowings | 121 | 344 | 316 | 366 | 426 | (64.8 | ) | (71.6 | ) | |||||||||||||||||||
Interest on long-term debt | 75 | 90 | 182 | 184 | 171 | (16.7 | ) | (56.1 | ) | |||||||||||||||||||
Total interest expense | 4,778 | 5,389 | 5,495 | 5,893 | 6,027 | (11.3 | ) | (20.7 | ) | |||||||||||||||||||
NET INTEREST INCOME | 10,348 | 9,909 | 9,632 | 10,030 | 10,426 | 4.4 | (0.7 | ) | ||||||||||||||||||||
Provision for credit losses | 1,385 | 875 | 615 | 462 | 465 | 58.3 | 197.8 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||||||||||||||
FOR CREDIT LOSSES | 8,963 | 9,034 | 9,017 | 9,568 | 9,961 | (0.8 | ) | (10.0 | ) | |||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 889 | 923 | 917 | 871 | 952 | (3.7 | ) | (6.6 | ) | |||||||||||||||||||
Investment securities gains (losses) | (15 | ) | - | - | - | 4 | - | (475.0 | ) | |||||||||||||||||||
Other than temporary impairment of securities | - | (371 | ) | - | - | - | (100.0 | ) | - | |||||||||||||||||||
Insurance agency commissions | 2,495 | 2,845 | 3,219 | 3,531 | 2,694 | (12.3 | ) | (7.4 | ) | |||||||||||||||||||
Other noninterest income | 1,039 | 1,849 | 1,058 | 1,100 | 1,065 | (43.8 | ) | (2.4 | ) | |||||||||||||||||||
Total noninterest income | 4,408 | 5,246 | 5,194 | 5,502 | 4,715 | (16.0 | ) | (6.5 | ) | |||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
Salaries and employee benefits | 5,776 | 5,802 | 5,759 | 5,984 | 5,520 | (0.4 | ) | 4.6 | ||||||||||||||||||||
Occupancy expense | 585 | 558 | 537 | 499 | 518 | 4.8 | 12.9 | |||||||||||||||||||||
Furniture and equipment expense | 291 | 310 | 298 | 286 | 324 | (6.1 | ) | (10.2 | ) | |||||||||||||||||||
Data processing | 476 | 486 | 440 | 470 | 467 | (2.1 | ) | 1.9 | ||||||||||||||||||||
Directors' fees | 132 | 131 | 130 | 165 | 178 | 0.8 | (25.8 | ) | ||||||||||||||||||||
Amortization of intangible assets | 129 | 128 | 129 | 129 | 130 | 0.8 | (0.8 | ) | ||||||||||||||||||||
Other noninterest expenses | 2,232 | 2,014 | 2,436 | 2,058 | 2,165 | 10.8 | 3.1 | |||||||||||||||||||||
Total noninterest expense | 9,621 | 9,429 | 9,729 | 9,591 | 9,302 | 2.0 | 3.4 | |||||||||||||||||||||
Income before income taxes | 3,750 | 4,851 | 4,482 | 5,479 | 5,374 | (22.7 | ) | (30.2 | ) | |||||||||||||||||||
Income tax expense | 1,489 | 1,780 | 1,716 | 2,107 | 2,034 | (16.3 | ) | (26.8 | ) | |||||||||||||||||||
NET INCOME | $ | 2,261 | $ | 3,071 | $ | 2,766 | $ | 3,372 | $ | 3,340 | (26.4 | ) | (32.3 | ) | ||||||||||||||
Weighted average shares outstanding - basic | 8,388 | 8,388 | 8,381 | 8,391 | 8,380 | - | 0.1 | |||||||||||||||||||||
Weighted average shares outstanding - diluted | 8,394 | 8,395 | 8,388 | 8,400 | 8,391 | - | - | |||||||||||||||||||||
Basic net income per share | $ | 0.27 | $ | 0.37 | $ | 0.33 | $ | 0.40 | $ | 0.40 | (27.0 | ) | (32.5 | ) | ||||||||||||||
Diluted net income per share | 0.27 | 0.37 | 0.33 | 0.40 | 0.40 | (27.0 | ) | (32.5 | ) | |||||||||||||||||||
Dividends paid per share | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | - | - |