Exhibit 99.1
Shore Bancshares, Inc.
18 E. Dover Street
Easton, Maryland 21601
Phone 410-822-1400
PRESS RELEASE
Shore Bancshares Reports First Quarter 2009 Earnings Results
Easton, Maryland (04/23/2009) - Shore Bancshares, Inc. (NASDAQ - SHBI) reported net income of $2.5 million or $0.30 per diluted common share for the first quarter of 2009, compared to $2.3 million or $0.27 per diluted common share for the fourth quarter of 2008 and $3.4 million or $0.40 per diluted common share for the first quarter of 2008.
“Credit demand was strong across our markets, as evidenced by nearly $20 million in loan growth during the quarter. New loans were originated with an intense focus on careful underwriting and overall quality. Deposit growth was steady and appears to be driven in part by market disruption from ongoing consolidation efforts of the large national competitors,” said W. Moorhead Vermilye, President and Chief Executive Officer.
“We do not see prospects for meaningful near-term improvement in the difficult operating environment for community banks in our region. Thus, maintaining consistent and acceptable levels of credit quality in our loan portfolios is clearly the main challenge we face over the coming quarters. We expect to continue our elevated emphasis on early identification of potential problem loans and we intend to remain conservative as we build our loan-loss reserves.”
“On January 9, 2009, we sold 25,000 shares of our Series A Preferred Stock to the U.S. Treasury under its TARP Capital Purchase Plan for $25 million. On April 15, 2009, we repurchased all of the Preferred Stock from Treasury at a repurchase price of $25 million, plus accrued dividends of $208,333.33. It is important to note that we were well-capitalized according to regulatory definitions prior to receiving the TARP funds, and we remain well-capitalized after the repurchase,” stated Vermilye.
The Company’s return on average assets for the quarter ended March 31, 2009 was 0.97%, compared to 0.87% and 1.38% for the quarters ended December 31, 2008 and March 31, 2008, respectively. The return on average stockholders’ equity was 6.84% for the first quarter of 2009, compared to 7.11% for the fourth quarter of 2008 and 10.96% for the first quarter of 2008.
At March 31, 2009, total assets were $1.077 billion, total deposits were $873.1 million, and total stockholders’ equity was $153.4 million, an increase of 3.1%, 3.3% and 20.5%, respectively, when compared to the same amounts at December 31, 2008. The increase in total assets of $32 million since December 31, 2008 related mainly to loan growth, funded primarily by deposit growth. Loans increased $19.6 million, or 2.2%, during the first quarter of 2009, with loans totaling $908.1 million at March 31, 2009. The increase in stockholder’s equity during the first quarter was primarily related to the Company’s sale of $25 million in Preferred Stock under the Treasury’s Capital Purchase Program. As noted above, the Preferred Stock was repurchased on April 15, 2009.
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Review of Quarterly Financial Results
Net interest income for the first quarter of 2009 was $10.1 million, a decline of 2.8% from the fourth quarter of 2008 and an increase of 0.3% from the same period last year. Lower overall yields on loans caused the decline in net interest income in the first quarter of 2009 when compared to the fourth quarter of 2008, despite a $22 million increase in average loan volume and a lower overall cost of funds. When compared to the first quarter of 2008, the increased volume of loans and reduction in cost of funds was sufficient to offset the decline in loan yields. The Company’s net interest margin was 4.09% for the first quarter of 2009, a decrease of 15 basis points when compared to the fourth quarter of 2008 and a decrease of 33 basis points when compared to the first quarter of 2008.
The provision for credit losses was $912 thousand for the three months ended March 31, 2009. The comparable amounts were $1.4 million and $462 thousand for the three months ended December 31, 2008 and March 31, 2008, respectively. The increased level of provision expense was primarily in response to continued growth in the loan portfolio, the overall increase in nonperforming assets and loan charge-offs, as well as overall economic conditions. Net charge-offs were $546 thousand for the first quarter of 2009, $683 thousand for the fourth quarter of 2008 and $87 thousand for the first quarter of 2008. Annualized net charge-offs to average loans was 0.25% for the first quarter of 2009, 0.31% for the fourth quarter of 2008 and 0.04% for the first quarter of 2008. Nonperforming assets to total assets was 0.85% at March 31, 2009. The comparable nonperforming asset ratio was 0.79% at December 31, 2008 and 0.34% at March 31, 2008. The allowance for credit losses to period-end loans increased to 1.07% at March 31, 2009, compared to 1.05% at December 31, 2008 and 0.98% at March 31, 2008. Management believes that the provision for credit losses and the resulting allowance were adequate at March 31, 2009.
Total noninterest income for the first quarter of 2009 increased $942 thousand when compared to the fourth quarter of 2008 and declined $152 thousand when compared to the first quarter of 2008. The increase when compared to fourth quarter of 2008 was primarily a result of an increase in insurance agency commissions and contingency payments of $840 thousand. ��Contingency payments are typically received in the first quarter of each year and are based on the prior year’s performance. The first quarter of 2009 included investment securities gains of $49 thousand compared to securities losses of $15 thousand in the fourth quarter of 2008. The decline in noninterest income during the first quarter of 2009 when compared to the first quarter of 2008 was primarily due to a decline in insurance agency commissions of $196 thousand.
Total noninterest expense for the first quarter of 2009 increased $262 thousand when compared to the fourth quarter of 2008 and increased $292 thousand when compared to the first quarter of 2008. A significant portion of the increase was due to increased FDIC insurance premium expense of $97 thousand when compared to the fourth quarter of 2008 and $230 thousand when compared to the first quarter of 2008. The balance of the increase related to higher general operating costs.
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.
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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
Financial Highlights
(Dollars in thousands, except per share data)
| | | For the Three Months Ended | |
| | | March 31, | |
| | | 2009 | | | 2008 | | | % Change | |
| PROFITABILITY FOR THE PERIOD | | | | | | | | | |
| Net interest income | | $ | 10,058 | | | $ | 10,030 | | | | 0.3 | % |
| Provision for credit losses | | | 912 | | | | 462 | | | | 97.4 | |
| Noninterest income | | | 5,350 | | | | 5,502 | | | | (2.8 | ) |
| Noninterest expense | | | 9,883 | | | | 9,591 | | | | 3.0 | |
| Income before income taxes | | | 4,613 | | | | 5,479 | | | | (15.8 | ) |
| Income tax expense | | | 1,735 | | | | 2,107 | | | | (17.7 | ) |
| Net income | | | 2,878 | | | | 3,372 | | | | (14.7 | ) |
| Preferred stock dividends and discount accretion | | | 337 | | | | - | | | | - | |
| Net income available to common shareholders | | $ | 2,541 | | | $ | 3,372 | | | | (24.6 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Return on average assets (1) | | | 0.97 | % | | | 1.38 | % | | | (29.7 | ) % |
| Return on average equity (1) | | | 6.84 | | | | 10.96 | | | | (37.6 | ) |
| Net interest margin | | | 4.09 | | | | 4.42 | | | | (7.5 | ) |
| Efficiency ratio - GAAP based | | | 64.14 | | | | 61.75 | | | | 3.9 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| PER SHARE DATA | | | | | | | | | | | | |
| Basic net income per share | | $ | 0.34 | | | $ | 0.40 | | | | (15.0 | ) % |
| Basic net income per common share | | | 0.30 | | | | 0.40 | | | | (25.0 | ) |
| Diluted net income per share | | | 0.34 | | | | 0.40 | | | | (15.0 | ) |
| Diluted net income per common share | | | 0.30 | | | | 0.40 | | | | (25.0 | ) |
| Dividends paid per common share | | | 0.16 | | | | 0.16 | | | | - | |
| Book value per common share at period end | | | 15.46 | | | | 14.62 | | | | 5.7 | |
| Tangible book value per common share at period end | | | 12.87 | | | | 11.96 | | | | 7.6 | |
| Market value at period end | | | 16.75 | | | | 21.45 | | | | (21.9 | ) |
| Market range: | | | | | | | | | | | | |
| High | | | 24.43 | | | | 23.40 | | | | 4.4 | |
| Low | | | 11.00 | | | | 20.00 | | | | (45.0 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| AT PERIOD END | | | | | | | | | | | | |
| Loans | | $ | 908,118 | | | $ | 808,583 | | | | 12.3 | % |
| Securities | | | 78,953 | | | | 99,062 | | | | (20.3 | ) |
| Assets | | | 1,076,599 | | | | 1,003,836 | | | | 7.2 | |
| Deposits | | | 873,089 | | | | 808,917 | | | | 7.9 | |
| Stockholders' equity | | | 153,446 | | | | 122,699 | | | | 25.1 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| CAPITAL AND CREDIT QUALITY RATIOS | | | | | | | | | | | | |
| Average equity to average assets | | | 14.23 | % | | | 12.56 | % | | | | |
| Annualized net charge-offs to average loans | | | 0.25 | | | | 0.04 | | | | | |
| Allowance for credit losses to period-end loans | | | 1.07 | | | | 0.98 | | | | | |
| Nonperforming assets to total assets | | | 0.85 | | | | 0.34 | | | | | |
(1) Calculation uses net income available to common shareholders.
Shore Bancshares, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
| | | | | | | | | | | | Mar. 31, 2009 | | | Mar. 31, 2009 | |
| | | Mar. 31, | | | Dec. 31, | | | Mar. 31, | | | compared to | | | compared to | |
| | | 2009 | | | 2008 | | | 2008 | | | Dec. 31, 2008 | | | Mar. 31, 2008 | |
| ASSETS | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 17,765 | | | $ | 16,803 | | | $ | 17,236 | | | | 5.7 | % | | | 3.1 | % |
| Interest-bearing deposits with other banks | | | 6,838 | | | | 481 | | | | 6,928 | | | | 1,321.6 | | | | (1.3 | ) |
| Federal funds sold | | | 24,496 | | | | 10,010 | | | | 28,313 | | | | 144.7 | | | | (13.5 | ) |
| Investments available-for-sale (at fair value) | | | 70,137 | | | | 79,204 | | | | 86,056 | | | | (11.4 | ) | | | (18.5 | ) |
| Investments held-to-maturity | | | 8,816 | | | | 10,252 | | | | 13,006 | | | | (14.0 | ) | | | (32.2 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Loans | | | 908,118 | | | | 888,528 | | | | 808,583 | | | | 2.2 | | | | 12.3 | |
| Less: allowance for credit losses | | | (9,686 | ) | | | (9,320 | ) | | | (7,926 | ) | | | 3.9 | | | | 22.2 | |
| Loans, net | | | 898,432 | | | | 879,208 | | | | 800,657 | | | | 2.2 | | | | 12.2 | |
| | | | | | | | | | | | | | | | | | | | | |
| Premises and equipment, net | | | 13,941 | | | | 13,855 | | | | 15,408 | | | | 0.6 | | | | (9.5 | ) |
| Accrued interest receivable | | | 4,672 | | | | 4,606 | | | | 5,048 | | | | 1.4 | | | | (7.4 | ) |
| Goodwill | | | 15,954 | | | | 15,954 | | | | 15,954 | | | | - | | | | - | |
| Other intangible assets, net | | | 5,792 | | | | 5,921 | | | | 6,307 | | | | (2.2 | ) | | | (8.2 | ) |
| Other real estate owned | | | 1,463 | | | | 148 | | | | - | | | | 888.5 | | | | - | |
| Other assets | | | 8,293 | | | | 8,199 | | | | 8,923 | | | | 1.1 | | | | (7.1 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 1,076,599 | | | $ | 1,044,641 | | | $ | 1,003,836 | | | | 3.1 | | | | 7.2 | |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing deposits | | $ | 108,017 | | | $ | 102,584 | | | $ | 103,328 | | | | 5.3 | | | | 4.5 | |
| Interest-bearing deposits | | | 765,072 | | | | 742,787 | | | | 705,589 | | | | 3.0 | | | | 8.4 | |
| Total deposits | | | 873,089 | | | | 845,371 | | | | 808,917 | | | | 3.3 | | | | 7.9 | |
| | | | | | | | | | | | | | | | | | | | | |
| Short-term borrowings | | | 31,057 | | | | 52,969 | | | | 42,712 | | | | (41.4 | ) | | | (27.3 | ) |
| Long-term debt | | | 7,947 | | | | 7,947 | | | | 15,485 | | | | - | | | | (48.7 | ) |
| Accrued interest payable and other liabilities | | | 11,060 | | | | 10,969 | | | | 14,023 | | | | 0.8 | | | | (21.1 | ) |
| Total liabilities | | | 923,153 | | | | 917,256 | | | | 881,137 | | | | 0.6 | | | | 4.8 | |
| | | | | | | | | | | | | | | | | | | | | |
| STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |
| Preferred stock, par value $0.01; authorized | | | | | | | | | | | | | | | | | |
| 25,000 shares | | | 23,514 | | | | - | | | | - | | | | - | | | | - | |
| Common stock, par value $0.01; authorized | | | | | | | | | | | | | | | | | |
| 35,000,000 shares | | | 84 | | | | 84 | | | | 84 | | | | - | | | | - | |
| Warrants | | | 1,543 | | | | - | | | | - | | | | - | | | | - | |
| Additional paid in capital | | | 29,790 | | | | 29,768 | | | | 29,578 | | | | 0.1 | | | | 0.7 | |
| Retained earnings | | | 97,492 | | | | 96,140 | | | | 92,076 | | | | 1.4 | | | | 5.9 | |
| Accumulated other comprehensive income | | | 1,023 | | | | 1,393 | | | | 961 | | | | (26.6 | ) | | | 6.5 | |
| Total stockholders' equity | | | 153,446 | | | | 127,385 | | | | 122,699 | | | | 20.5 | | | | 25.1 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 1,076,599 | | | $ | 1,044,641 | | | $ | 1,003,836 | | | | 3.1 | | | | 7.2 | |
| | | | | | | | | | | | | | | | | | | | | |
| Period-end preferred shares outstanding | | | 25,000 | | | | - | | | | - | | | | - | | | | - | |
| Discount on preferred stock | | $ | 1,486 | | | $ | - | | | $ | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | |
| Period-end common shares outstanding | | | 8,404,709 | | | | 8,404,684 | | | | 8,395,450 | | | | - | | | | 0.1 | |
| Book value per common share | | $ | 15.46 | | | $ | 15.16 | | | $ | 14.62 | | | | 2.0 | | | | 5.7 | |
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Shore Bancshares, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
| | | For the Three Months Ended | |
| | | March 31, | |
| | | 2009 | | | 2008 | | | % Change | |
| INTEREST INCOME | | | | | | | | | |
| Interest and fees on loans | | $ | 13,617 | | | $ | 14,560 | | | | (6.5 | ) % |
| Interest and dividends on investment securities: | | | | | | | | | |
| Taxable | | | 756 | | | | 1,080 | | | | (30.0 | ) |
| Tax-exempt | | | 85 | | | | 123 | | | | (30.9 | ) |
| Interest on federal funds sold | | | 7 | | | | 122 | | | | (94.3 | ) |
| Interest on deposits with other banks | | | 1 | | | | 38 | | | | (97.4 | ) |
| Total interest income | | | 14,466 | | | | 15,923 | | | | (9.2 | ) |
| | | | | | | | | | | | | |
| INTEREST EXPENSE | | | | | | | | | | | | |
| Interest on deposits | | | 4,285 | | | | 5,343 | | | | (19.8 | ) |
| Interest on short-term borrowings | | | 49 | | | | 366 | | | | (86.6 | ) |
| Interest on long-term debt | | | 74 | | | | 184 | | | | (59.8 | ) |
| Total interest expense | | | 4,408 | | | | 5,893 | | | | (25.2 | ) |
| | | | | | | | | | | | | |
| NET INTEREST INCOME | | | 10,058 | | | | 10,030 | | | | 0.3 | |
| Provision for credit losses | | | 912 | | | | 462 | | | | 97.4 | |
| | | | | | | | | | | | | |
| NET INTEREST INCOME AFTER PROVISION | | | | | | | | | |
| FOR CREDIT LOSSES | | | 9,146 | | | | 9,568 | | | | (4.4 | ) |
| | | | | | | | | | | | | |
| NONINTEREST INCOME | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 809 | | | | 871 | | | | (7.1 | ) |
| Investment securities gains (losses) | | | 49 | | | | - | | | | - | |
| Insurance agency commissions | | | 3,335 | | | | 3,531 | | | | (5.6 | ) |
| Other noninterest income | | | 1,157 | | | | 1,100 | | | | 5.2 | |
| Total noninterest income | | | 5,350 | | | | 5,502 | | | | (2.8 | ) |
| | | | | | | | | | | | | |
| NONINTEREST EXPENSE | | | | | | | | | | | | |
| Salaries and employee benefits | | | 5,920 | | | | 5,984 | | | | (1.1 | ) |
| Occupancy expense | | | 549 | | | | 499 | | | | 10.0 | |
| Furniture and equipment expense | | | 314 | | | | 286 | | | | 9.8 | |
| Data processing | | | 438 | | | | 470 | | | | (6.8 | ) |
| Directors' fees | | | 168 | | | | 165 | | | | 1.8 | |
| Amortization of intangible assets | | | 129 | | | | 129 | | | | - | |
| Other noninterest expenses | | | 2,365 | | | | 2,058 | | | | 14.9 | |
| Total noninterest expense | | | 9,883 | | | | 9,591 | | | | 3.0 | |
| | | | | | | | | | | | | |
| Income before income taxes | | | 4,613 | | | | 5,479 | | | | (15.8 | ) |
| Income tax expense | | | 1,735 | | | | 2,107 | | | | (17.7 | ) |
| | | | | | | | | | | | | |
| NET INCOME | | | 2,878 | | | | 3,372 | | | | (14.7 | ) |
| Preferred stock dividends and discount accretion | | | 337 | | | | - | | | | - | |
| Net income available to common shareholders | | $ | 2,541 | | | $ | 3,372 | | | | (24.6 | ) |
| | | | | | | | | | | | | |
| Weighted average shares outstanding - basic | | | 8,405 | | | | 8,391 | | | | 0.2 | |
| Weighted average shares outstanding - diluted | | | 8,408 | | | | 8,400 | | | | 0.1 | |
| | | | | | | | | | | | | |
| Basic net income per share | | $ | 0.34 | | | $ | 0.40 | | | | (15.0 | ) |
| Basic net income per common share | | | 0.30 | | | | 0.40 | | | | (25.0 | ) |
| Diluted net income per share | | | 0.34 | | | | 0.40 | | | | (15.0 | ) |
| Diluted net income per common share | | | 0.30 | | | | 0.40 | | | | (25.0 | ) |
| Dividends paid per common share | | | 0.16 | | | | 0.16 | | | | - | |
Shore Bancshares, Inc.
Financial Highlights By Quarter
(Dollars in thousands, except per share data)
| | | 1st quarter | | | 4th quarter | | | 3rd quarter | | | 2nd quarter | | | 1st quarter | | | 1Q 09 | | | 1Q 09 | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | compared to | | | compared to | |
| | | (1Q 09) | | | (4Q 08) | | | (3Q 08) | | | (2Q 08) | | | (1Q 08) | | | 4Q 08 | | | 1Q 08 | |
| PROFITABILITY FOR THE PERIOD | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 10,058 | | | $ | 10,348 | | | $ | 9,909 | | | $ | 9,632 | | | $ | 10,030 | | | | (2.8 | ) % | | | 0.3 | % |
| Provision for credit losses | | | 912 | | | | 1,385 | | | | 875 | | | | 615 | | | | 462 | | | | (34.2 | ) | | | 97.4 | |
| Noninterest income | | | 5,350 | | | | 4,408 | | | | 5,246 | | | | 5,194 | | | | 5,502 | | | | 21.4 | | | | (2.8 | ) |
| Noninterest expense | | | 9,883 | | | | 9,621 | | | | 9,429 | | | | 9,729 | | | | 9,591 | | | | 2.7 | | | | 3.0 | |
| Income before income taxes | | | 4,613 | | | | 3,750 | | | | 4,851 | | | | 4,482 | | | | 5,479 | | | | 23.0 | | | | (15.8 | ) |
| Income tax expense | | | 1,735 | | | | 1,489 | | | | 1,780 | | | | 1,716 | | | | 2,107 | | | | 16.5 | | | | (17.7 | ) |
| Net income | | | 2,878 | | | | 2,261 | | | | 3,071 | | | | 2,766 | | | | 3,372 | | | | 27.3 | | | | (14.7 | ) |
| Preferred stock dividends and discount accretion | | | 337 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Net income available to common shareholders | | $ | 2,541 | | | $ | 2,261 | | | $ | 3,071 | | | $ | 2,766 | | | $ | 3,372 | | | | 12.4 | | | | (24.6 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (1) | | | 0.97 | % | | | 0.87 | % | | | 1.19 | % | | | 1.12 | % | | | 1.38 | % | | | 11.5 | % | | | (29.7 | ) % |
| Return on average equity (1) | | | 6.84 | | | | 7.11 | | | | 9.81 | | | | 8.98 | | | | 10.96 | | | | (3.8 | ) | | | (37.6 | ) |
| Net interest margin | | | 4.09 | | | | 4.24 | | | | 4.10 | | | | 4.17 | | | | 4.42 | | | | (3.5 | ) | | | (7.5 | ) |
| Efficiency ratio - GAAP based | | | 64.14 | | | | 65.20 | | | | 62.22 | | | | 65.62 | | | | 61.75 | | | | (1.6 | ) | | | 3.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PER SHARE DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic net income per share | | $ | 0.34 | | | $ | 0.27 | | | $ | 0.37 | | | $ | 0.33 | | | $ | 0.40 | | | | 25.9 | % | | | (15.0 | ) % |
| Basic net income per common share | | | 0.30 | | | | 0.27 | | | | 0.37 | | | | 0.33 | | | | 0.40 | | | | 11.1 | | | | (25.0 | ) |
| Diluted net income per share | | | 0.34 | | | | 0.27 | | | | 0.37 | | | | 0.33 | | | | 0.40 | | | | 25.9 | | | | (15.0 | ) |
| Diluted net income per common share | | | 0.30 | | | | 0.27 | | | | 0.37 | | | | 0.33 | | | | 0.40 | | | | 11.1 | | | | (25.0 | ) |
| Dividends paid per common share | | | 0.16 | | | | 0.16 | | | | 0.16 | | | | 0.16 | | | | 0.16 | | | | - | | | | - | |
| Book value per common share at period end | | | 15.46 | | | | 15.16 | | | | 14.92 | | | | 14.65 | | | | 14.62 | | | | 2.0 | | | | 5.7 | |
| Tangible book value per common share at period end | | | 12.87 | | | | 12.55 | | | | 12.30 | | | | 12.01 | | | | 11.96 | | | | 2.5 | | | | 7.6 | |
| Market value at period end | | | 16.75 | | | | 23.99 | | | | 25.70 | | | | 18.72 | | | | 21.45 | | | | (30.2 | ) | | | (21.9 | ) |
| Market range: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| High | | | 24.43 | | | | 25.97 | | | | 27.25 | | | | 26.47 | | | | 23.40 | | | | (5.9 | ) | | | 4.4 | |
| Low | | | 11.00 | | | | 17.50 | | | | 18.00 | | | | 18.52 | | | | 20.00 | | | | (37.1 | ) | | | (45.0 | ) |
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| AT PERIOD END | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 908,118 | | | $ | 888,528 | | | $ | 865,437 | | | $ | 841,600 | | | $ | 808,583 | | | | 2.2 | % | | | 12.3 | % |
| Securities | | | 78,953 | | | | 89,456 | | | | 93,149 | | | | 91,842 | | | | 99,062 | | | | (11.7 | ) | | | (20.3 | ) |
| Assets | | | 1,076,599 | | | | 1,044,641 | | | | 1,037,026 | | | | 1,019,463 | | | | 1,003,836 | | | | 3.1 | | | | 7.2 | |
| Deposits | | | 873,089 | | | | 845,371 | | | | 839,217 | | | | 818,656 | | | | 808,917 | | | | 3.3 | | | | 7.9 | |
| Stockholders' equity | | | 153,446 | | | | 127,385 | | | | 125,401 | | | | 123,038 | | | | 122,699 | | | | 20.5 | | | | 25.1 | |
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| CAPITAL AND CREDIT QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 14.23 | % | | | 12.22 | % | | | 12.12 | % | | | 12.41 | % | | | 12.56 | % | | | | | | | | |
| Annualized net charge-offs to average loans | | | 0.25 | | | | 0.31 | | | | 0.25 | | | | 0.13 | | | | 0.04 | | | | | | | | | |
| Allowance for credit losses to period-end loans | | | 1.07 | | | | 1.05 | | | | 1.00 | | | | 0.98 | | | | 0.98 | | | | | | | | | |
| Nonperforming assets to total assets | | | 0.85 | | | | 0.79 | | | | 0.72 | | | | 0.47 | | | | 0.34 | | | | | | | | | |
(1) Calculation uses net income available to common shareholders.
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | | 1Q 09 | | | 1Q 09 | |
| | | | | | | | | | | | | | | | | | compared to | | | compared to | |
| | | 1Q 09 | | | 4Q 08 | | | 3Q 08 | | | 2Q 08 | | | 1Q 08 | | | 4Q 08 | | | 1Q 08 | |
| INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 13,617 | | | $ | 14,166 | | | $ | 14,179 | | | $ | 13,961 | | | $ | 14,560 | | | | (3.9 | ) % | | | (6.5 | ) % |
| Interest and dividends on investment securities: | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 756 | | | | 839 | | | | 924 | | | | 945 | | | | 1,080 | | | | (9.9 | ) | | | (30.0 | ) |
| Tax-exempt | | | 85 | | | | 93 | | | | 95 | | | | 109 | | | | 123 | | | | (8.6 | ) | | | (30.9 | ) |
| Interest on federal funds sold | | | 7 | | | | 24 | | | | 79 | | | | 83 | | | | 122 | | | | (70.8 | ) | | | (94.3 | ) |
| Interest on deposits with other banks | | | 1 | | | | 4 | | | | 21 | | | | 29 | | | | 38 | | | | (75.0 | ) | | | (97.4 | ) |
| Total interest income | | | 14,466 | | | | 15,126 | | | | 15,298 | | | | 15,127 | | | | 15,923 | | | | (4.4 | ) | | | (9.2 | ) |
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| INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 4,285 | | | | 4,582 | | | | 4,955 | | | | 4,997 | | | | 5,343 | | | | (6.5 | ) | | | (19.8 | ) |
| Interest on short-term borrowings | | | 49 | | | | 121 | | | | 344 | | | | 316 | | | | 366 | | | | (59.5 | ) | | | (86.6 | ) |
| Interest on long-term debt | | | 74 | | | | 75 | | | | 90 | | | | 182 | | | | 184 | | | | (1.3 | ) | | | (59.8 | ) |
| Total interest expense | | | 4,408 | | | | 4,778 | | | | 5,389 | | | | 5,495 | | | | 5,893 | | | | (7.7 | ) | | | (25.2 | ) |
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| NET INTEREST INCOME | | | 10,058 | | | | 10,348 | | | | 9,909 | | | | 9,632 | | | | 10,030 | | | | (2.8 | ) | | | 0.3 | |
| Provision for credit losses | | | 912 | | | | 1,385 | | | | 875 | | | | 615 | | | | 462 | | | | (34.2 | ) | | | 97.4 | |
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| NET INTEREST INCOME AFTER PROVISION | | | | | | | | | | | | | | | | | | | | | |
| FOR CREDIT LOSSES | | | 9,146 | | | | 8,963 | | | | 9,034 | | | | 9,017 | | | | 9,568 | | | | 2.0 | | | | (4.4 | ) |
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| NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 809 | | | | 889 | | | | 923 | | | | 917 | | | | 871 | | | | (9.0 | ) | | | (7.1 | ) |
| Investment securities gains (losses) | | | 49 | | | | (15 | ) | | | - | | | | - | | | | - | | | | 426.7 | | | | - | |
| Other than temporary impairment of securities | | | - | | | | - | | | | (371 | ) | | | - | | | | - | | | | - | | | | - | |
| Insurance agency commissions | | | 3,335 | | | | 2,495 | | | | 2,845 | | | | 3,219 | | | | 3,531 | | | | 33.7 | | | | (5.6 | ) |
| Other noninterest income | | | 1,157 | | | | 1,039 | | | | 1,849 | | | | 1,058 | | | | 1,100 | | | | 11.4 | | | | 5.2 | |
| Total noninterest income | | | 5,350 | | | | 4,408 | | | | 5,246 | | | | 5,194 | | | | 5,502 | | | | 21.4 | | | | (2.8 | ) |
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| NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 5,920 | | | | 5,776 | | | | 5,802 | | | | 5,759 | | | | 5,984 | | | | 2.5 | | | | (1.1 | ) |
| Occupancy expense | | | 549 | | | | 585 | | | | 558 | | | | 537 | | | | 499 | | | | (6.2 | ) | | | 10.0 | |
| Furniture and equipment expense | | | 314 | | | | 291 | | | | 310 | | | | 298 | | | | 286 | | | | 7.9 | | | | 9.8 | |
| Data processing | | | 438 | | | | 476 | | | | 486 | | | | 440 | | | | 470 | | | | (8.0 | ) | | | (6.8 | ) |
| Directors' fees | | | 168 | | | | 132 | | | | 131 | | | | 130 | | | | 165 | | | | 27.3 | | | | 1.8 | |
| Amortization of intangible assets | | | 129 | | | | 129 | | | | 128 | | | | 129 | | | | 129 | | | | - | | | | - | |
| Other noninterest expenses | | | 2,365 | | | | 2,232 | | | | 2,014 | | | | 2,436 | | | | 2,058 | | | | 6.0 | | | | 14.9 | |
| Total noninterest expense | | | 9,883 | | | | 9,621 | | | | 9,429 | | | | 9,729 | | | | 9,591 | | | | 2.7 | | | | 3.0 | |
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| Income before income taxes | | | 4,613 | | | | 3,750 | | | | 4,851 | | | | 4,482 | | | | 5,479 | | | | 23.0 | | | | (15.8 | ) |
| Income tax expense | | | 1,735 | | | | 1,489 | | | | 1,780 | | | | 1,716 | | | | 2,107 | | | | 16.5 | | | | (17.7 | ) |
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| NET INCOME | | | 2,878 | | | | 2,261 | | | | 3,071 | | | | 2,766 | | | | 3,372 | | | | 27.3 | | | | (14.7 | ) |
| Preferred stock dividends and discount accretion | | | 337 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Net income available to common shareholders | | $ | 2,541 | | | $ | 2,261 | | | $ | 3,071 | | | $ | 2,766 | | | $ | 3,372 | | | | 12.4 | | | | (24.6 | ) |
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| Weighted average shares outstanding - basic | | | 8,405 | | | | 8,405 | | | | 8,405 | | | | 8,398 | | | | 8,391 | | | | - | | | | 0.2 | |
| Weighted average shares outstanding - diluted | | | 8,408 | | | | 8,410 | | | | 8,411 | | | | 8,405 | | | | 8,400 | | | | - | | | | 0.1 | |
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| Basic net income per share | | $ | 0.34 | | | $ | 0.27 | | | $ | 0.37 | | | $ | 0.33 | | | $ | 0.40 | | | | 25.9 | | | | (15.0 | ) |
| Basic net income per common share | | | 0.30 | | | | 0.27 | | | | 0.37 | | | | 0.33 | | | | 0.40 | | | | 11.1 | | | | (25.0 | ) |
| Diluted net income per share | | | 0.34 | | | | 0.27 | | | | 0.37 | | | | 0.33 | | | | 0.40 | | | | 25.9 | | | | (15.0 | ) |
| Diluted net income per common share | | | 0.30 | | | | 0.27 | | | | 0.37 | | | | 0.33 | | | | 0.40 | | | | 11.1 | | | | (25.0 | ) |
| Dividends paid per share | | | 0.16 | | | | 0.16 | | | | 0.16 | | | | 0.16 | | | | 0.16 | | | | - | | | | - | |
