Back to mobile site

Shore Bancshares Reports First Quarter 2016 Financial Results

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/2/2026

1. AMZN
2. RBLX
3. AAPL
4. RDDT
5. COIN
6. NBIX
7. DXCM
8. GH
9. GDDY
10. WU

April 21, 2016 4:15 PM EDT

EASTON, Md., April 21, 2016 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ: SHBI) reported net income of $2.460 million or $0.19 per diluted common share for the first quarter of 2016, compared to net income of $2.163 million or $0.17 per diluted common share for the fourth quarter of 2015, and net income of $1.409 million or $0.11 per diluted common share for the first quarter of 2015. 

When comparing the first quarter of 2016 to the fourth quarter of 2015, the primary reason for the improved results was a $903 thousand increase in noninterest income partially offset by an increase in noninterest expense of $389 thousand.  When comparing the first quarter of 2016 to the first quarter of 2015, the primary reasons for the improved results were increases in net interest income of $704 thousand and noninterest income of $456 thousand.  Also contributing to the improved earnings were decreases in noninterest expenses of $365 thousand and provision for credit losses of $200 thousand.    

"We are pleased to report our continuing improved earnings over the linked quarter and the first quarter of 2015," said Lloyd L. "Scott" Beatty, Jr., president and chief executive officer.  "2016 will be an exciting year as we continue to focus on loan and deposit growth as well as revenues of our other fee based businesses."     

Balance Sheet ReviewTotal assets were $1.131 billion at March 31, 2016, a $4.0 million, or less than 1%, decrease when compared to $1.135 billion at the end of 2015.  The decrease in total assets included a decline in investment securities available for sale of $5.4 million, which funded loan growth of $3.8 million for the quarter.  Other assets declined $1.5 million, primarily in deferred taxes as the Company continued to utilize net operating loss carryforwards to offset taxable earnings. 

Total deposits decreased $5.7 million, or less than 1%, when compared to December 31, 2015.  The decrease in total deposits was mainly due to reductions in municipal deposits impacted by tax collections resulting in declines in checking deposits of $9.2 million and time deposits of $6.9 million, which were offset by an increase in money market and savings deposits of $10.4 million.  Total stockholders' equity increased $3.1 million, or 2.1%, when compared to the end of 2015.  At March 31, 2016, the ratio of total equity to total assets was 13.27% and the ratio of total tangible equity to total tangible assets was 12.25%.

Total assets at March 31, 2016 increased $37.1 million, or 3.4%, when compared to total assets at March 31, 2015.  The increase in total assets was primarily due to significant loan growth of $77.3 million, partially funded by a decrease in investment securities of $33.9 million and cash and cash equivalents of $2.3 million.   

Review of Quarterly Financial Results Net interest income was $9.2 million for the first quarter of 2016, compared to $9.3 million for the fourth quarter of 2015 and $8.5 million for the first quarter of 2015.  Net interest income when compared to the fourth quarter of 2015 was lower by $50 thousand due to one less earnings day, as well as, lower yields on loans, partially offset by a higher yield on taxable investment securities.  Also impacting the margin was the increase in the federal funds rate of 25bps in late December of 2015 which resulted in a higher yield on deposits with other banks.  The Company's net interest margin improved by 5 basis points to 3.50% over the fourth quarter of 2015.  The increase in net interest income when compared to the first quarter of 2015 was primarily the result of significant loan growth, with average loans increasing $76 million.  The Company's net interest margin when compared to the first quarter of 2015 increased 7 basis points to 3.50%, the result of higher loan volume and higher yields on investment securities, partially offset by a decline in yields on loans.  Additionally, average rates paid on deposits declined 13 basis points primarily related to time deposit repricing.

The provision for credit losses was $450 thousand for the three months ended March 31, 2016.  The comparable amounts were $475 thousand and $650 thousand for the three months ended December 31, 2015 and March 31, 2015, respectively.  The provision for credit losses slightly decreased between the first quarter of 2016 and the fourth quarter of 2015, due to a decline in nonaccrual loans.  The lower level of provision for credit losses when comparing the first quarter of 2016 to the first quarter of 2015 was primarily due to decreases in loan charge-offs and nonaccrual loans.  Net charge-offs were $457 thousand for the first quarter of 2016, $257 thousand for the fourth quarter of 2015 and $547 thousand for the first quarter of 2015.  The ratio of annualized net charge-offs to average loans was 0.23% for the first quarter of 2016, 0.13% for the fourth quarter of 2015 and 0.31% for the first quarter of 2015.  The ratio of the allowance for credit losses to period-end loans at March 31, 2016 was 1.04%, lower than the 1.05% at December 31, 2015 and 1.08% at March 31, 2015.  

Nonperforming assets excluding accruing troubled debt restructurings (TDRs) were $15.9 million at March 31, 2016, $16.4 million at December 31, 2015 and $16.4 million at March 31, 2015. Nonperforming assets including accruing TDRs at March 31, 2016 were $30.6 million, compared to $31.8 million at December 31, 2015 and $33.1 million at March 31, 2015.  The decreases in nonperforming assets and TDRs are the result of the continued work out efforts and charge-offs period over period.  At March 31, 2016, the ratio of nonaccrual loans to total assets was 1.05%, compared to 1.07% and 1.18% at December 31, 2015 and March 31, 2015, respectively.  In addition, the ratio of accruing TDRs to total assets at March 31, 2016 was 1.30%, improving from 1.37% and 1.52% at December 31, 2015 and March 31, 2015.

Total noninterest income for the first quarter of 2016 increased $903 thousand when compared to the fourth quarter of 2015 and increased $456 thousand when compared to the first quarter of 2015.  The increase from the fourth quarter of 2015 was the result of higher insurance agency commissions, mainly from contingency payments which are typically received in the first quarter of each year and are based on the prior year's performance.  The increase from the first quarter of 2015 was due to increases in service charges on deposits and other banking service fees of $179 thousand, an increase in retail insurance commissions of $184 thousand, and an increase in contingency payments of $100 thousand, offset by decline in trust and investment fee income of $118 thousand.

Total noninterest expense for the first quarter of 2016 increased $389 thousand when compared to the fourth quarter of 2015 and decreased $365 thousand when compared to the first quarter of 2015.  The increase in noninterest expense compared to the fourth quarter of 2015 was primarily due to higher costs associated with employee benefits of $224 thousand, which included higher insurance premiums for group insurance and federal unemployment insurance which is usually paid the first two quarters of the year.  Salaries and wages also increased by $111 thousand in the first quarter due to pay increases implemented during the period.  The decrease from the first quarter of 2015 was primarily due to lower legal and professional fees of $340 thousand, lower FDIC insurance premiums of $102 thousand, offset by an increase in salary and wages of $164 thousand due to pay increases. 

Shore Bancshares InformationShore 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 two Maryland chartered commercial banks, The Talbot Bank of Easton, Maryland, and CNB; one retail insurance producer firm, The Avon-Dixon Agency, LLC, with two specialty lines, Elliot Wilson Insurance (Trucking), and Jack Martin and Associates (Marine); and an insurance premium finance company, Mubell Finance, LLC.  Shore Bancshares, Inc. engages in the trust services business through the trust department at CNB under the name "Wye Financial & Trust".  Additional information is available at www.shorebancshares.com.

Forward-Looking StatementsThe statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management's current expectations and beliefs concerning future developments and their potential effects on the Company.  Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.  There can be no assurance that future developments affecting the Company will be the same as those anticipated by management.  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".

The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

Shore Bancshares, Inc.

Page 4 of 11

Financial Highlights

(Dollars in thousands, except per share data)

   For the Three Months Ended

March 31,

2016

2015

Change

     Net interest income

$      9,243

$      8,539

8.2

%

     Provision for credit losses

450

650

(30.8)

     Noninterest income

4,541

4,085

11.2

     Noninterest expense

9,339

9,704

(3.8)

     Income before income taxes

3,995

2,270

76.0

     Income tax expense

1,535

861

78.3

     Net income

$      2,460

$      1,409

74.6

     Return on average assets

0.88

%

0.53

%

35

bp

     Return on average equity

6.64

4.03

261

     Return on average tangible equity (1)

7.34

4.50

284

     Net interest margin

3.50

3.43

7

     Efficiency ratio - GAAP

67.61

76.74

(913)

     Efficiency ratio - Non-GAAP (1)

67.37

76.48

(911)

PER SHARE DATA

     Basic net income per common share

$        0.19

$        0.11

72.7

%

     Diluted net income per common share

0.19

0.11

72.7

     Dividends paid per common share

0.03

-

100.0

     Book value per common share at period end

11.88

11.31

5.0

     Tangible book value per common share at period end (1)

10.84

10.26

5.7

     Market value at period end

11.98

9.18

30.5

     Market range:

       High

12.08

9.30

29.9

       Low

11.95

9.03

32.3

AVERAGE BALANCE SHEET DATA

     Loans

$  790,777

$  714,780

10.6

%

     Investment securities

214,988

244,300

(12.0)

     Earning assets

1,065,514

1,013,490

5.1

     Assets

1,130,238

1,087,401

3.9

     Deposits

968,991

932,460

3.9

     Stockholders' equity

149,032

141,884

5.0

CREDIT QUALITY DATA AT PERIOD END

     Net charge-offs

$         457

$         547

(16.5)

%

     Nonaccrual loans

$    11,925

$    12,913

(7.7)

     Loans 90 days past due and still accruing

35

36

(2.8)

     Other real estate owned

3,896

3,469

12.3

     Total nonperforming assets

15,856

16,418

(3.4)

     Accruing troubled debt restructurings (TDRs)

14,753

16,644

(11.4)

     Total nonperforming assets and accruing TDRs

$    30,609

$    33,062

(7.4)

CAPITAL AND CREDIT QUALITY RATIOS

     Period-end equity to assets

13.27

%

13.05

%

22

bp

     Period-end tangible equity to tangible assets (1)

12.25

11.98

27

     Annualized net charge-offs to average loans

0.23

0.31

(8)

     Allowance for credit losses as a percent of:

     Period-end loans

1.04

1.08

(4)

     Nonaccrual loans

69.68

60.39

929

     Nonperforming assets

52.40

47.50

490

     Accruing TDRs

56.32

46.85

947

     Nonperforming assets and accruing TDRs

27.15

23.59

356

     As a percent of total loans:

     Nonaccrual loans

1.49

1.79

(30)

     Accruing TDRs 

1.85

2.31

(46)

     Nonaccrual loans and accruing TDRs

3.34

4.10

(76)

     As a percent of total loans+other real estate owned:

     Nonperforming assets

1.98

2.26

(28)

     Nonperforming assets and accruing TDRs

3.81

4.56

(75)

     As a percent of total assets:

     Nonaccrual loans

1.05

1.18

(13)

     Nonperforming assets

1.40

1.50

(10)

     Accruing TDRs

1.30

1.52

(22)

     Nonperforming assets and accruing TDRs

2.70

3.02

(32)

(1)  See the reconciliation table on page 11 of 11.

 

Shore Bancshares, Inc.

Page 5 of 11

Consolidated Balance Sheets

(In thousands, except per share data)

March 31, 2016

March 31, 2016

March 31,

December 31,

March 31,

compared to

compared to

2016

2015

2015

December 31, 2015

March 31, 2015

ASSETS

    Cash and due from banks

$       14,566

$       15,080

$       24,319

(3.4)

%

(40.1)

%

    Interest-bearing deposits with other banks

58,507

54,223

48,398

7.9

20.9

    Federal funds sold

553

4,508

3,241

(87.7)

(82.9)

  Cash and cash equivalents

73,626

73,811

75,958

(0.3)

(3.1)

    Investment securities available for sale (at fair value)

206,735

212,165

240,111

(2.6)

(13.9)

    Investment securities held to maturity

3,996

4,191

4,515

(4.7)

(11.5)

    Loans

798,921

795,114

721,605

0.5

10.7

    Less: allowance for credit losses

(8,309)

(8,316)

(7,798)

(0.1)

6.6

    Loans, net

790,612

786,798

713,807

0.5

10.8

    Premises and equipment, net

16,813

16,864

16,728

(0.3)

0.5

    Goodwill

11,931

11,931

11,931

-

-

    Other intangible assets, net

1,178

1,211

1,297

(2.7)

(9.2)

    Other real estate owned, net

3,896

4,252

3,469

(8.4)

12.3

    Other assets

22,388

23,920

26,312

(6.4)

(14.9)

                         Total assets

$  1,131,175

$  1,135,143

$  1,094,128

(0.3)

3.2

LIABILITIES

    Noninterest-bearing deposits

$     229,646

$     229,686

$     201,518

(0.0)

14.0

    Interest-bearing deposits

740,087

745,778

739,256

(0.8)

0.1

                Total deposits

969,733

975,464

940,774

(0.6)

3.1

    Short-term borrowings

5,872

6,672

5,098

(12.0)

15.2

    Accrued expenses and other liabilities

5,461

6,040

5,510

(9.6)

(0.9)

                          Total liabilities

981,066

988,176

951,382

(0.7)

3.1

STOCKHOLDERS' EQUITY

    Common stock, par value $0.01; authorized 

       35,000,000 shares

126

126

126

-

-

    Additional paid in capital

63,929

63,815

63,669

0.2

0.4

    Retained earnings

85,178

83,097

77,903

2.5

9.3

    Accumulated other comprehensive (loss) income

876

(71)

1,048

1,333.8

(16.4)

                          Total stockholders' equity

150,109

146,967

142,746

2.1

5.2

                          Total liabilities and stockholders' equity

$  1,131,175

$  1,135,143

$  1,094,128

(0.3)

3.4

Period-end common shares outstanding

12,640

12,631

12,625

0.1

0.1

Book value per common share

$         11.88

$         11.64

$         11.31

2.1

5.0

 

Shore Bancshares, Inc.

Page 6 of 11

Consolidated Statements of Operations

(In thousands, except per share data)

For the Three Months Ended

March 31,

2016

2015

% Change

INTEREST INCOME

    Interest and fees on loans

$   8,961

$    8,491

5.5

%

    Interest and dividends on investment securities:

        Taxable

870

924

(5.8)

        Tax-exempt

2

3

(33.3)

    Interest on federal funds sold

3

1

200.0

    Interest on deposits with other banks

72

26

176.9

                   Total interest income

9,908

9,445

4.9

INTEREST EXPENSE

    Interest on deposits

661

901

(26.6)

    Interest on short-term borrowings

4

5

(20.0)

                   Total interest expense

665

906

(26.6)

NET INTEREST INCOME

9,243

8,539

8.2

Provision for credit losses

450

650

(30.8)

NET INTEREST INCOME AFTER PROVISION

  FOR CREDIT LOSSES

8,793

7,889

11.5

NONINTEREST INCOME

    Service charges on deposit accounts

813

634

28.2

    Trust and investment fee income

351

469

(25.2)

    Insurance agency commissions

2,759

2,475

11.5

    Other noninterest income

618

507

21.9

                      Total noninterest income

4,541

4,085

11.2

NONINTEREST EXPENSE

    Salaries and wages

4,477

4,313

3.8

    Employee benefits

1,114

1,156

(3.6)

    Occupancy expense

613

626

(2.1)

    Furniture and equipment expense

235

255

(7.8)

    Data processing

809

783

3.3

    Directors' fees

104

123

(15.4)

    Amortization of intangible assets

33

33

-

    FDIC insurance premium expense

282

384

(26.6)

    Write-downs of other real estate owned

7

27

(74.1)

    Legal and professional fees

385

725

(46.9)

    Other noninterest expenses

1,280

1,279

0.1

                      Total noninterest expense

9,339

9,704

(3.8)

Income before income taxes

3,995

2,270

76.0

Income tax expense

1,535

861

78.3

NET INCOME

$   2,460

$    1,409

74.6

Weighted average shares outstanding - basic

12,635

12,625

0.1

Weighted average shares outstanding - diluted

12,649

12,633

0.1

Basic net income per common share

$     0.19

$       0.11

72.7

Diluted net income per common share

0.19

0.11

72.7

Dividends paid per common share

0.03

-

-

 

Shore Bancshares, Inc.

Page 7 of 11

Consolidated Average Balance Sheets

(Dollars in thousands)

For the Three Months Ended

March 31,

2016

2015

Average

Yield/

Average

Yield/

balance

rate

balance

rate

Earning assets

  Loans

$    790,777

4.57

%

$    714,780

4.83

%

  Investment securities

   Taxable

214,778

1.62

243,869

1.52

   Tax-exempt

210

5.30

431

4.19

  Federal funds sold

3,640

0.33

2,801

0.09

  Interest-bearing deposits

56,109

0.51

51,609

0.20

    Total earning assets

1,065,514

3.75

%

1,013,490

3.79

%

Cash and due from banks

16,205

21,268

Other assets

57,037

60,611

Allowance for credit losses

(8,518)

(7,968)

Total assets

$ 1,130,238

$ 1,087,401

Interest-bearing liabilities

  Demand deposits

$    193,087

0.12

%

$    177,071

0.13

%

  Money market and savings deposits

258,715

0.13

237,755

0.14

  Certificates of deposit $100,000 or more

132,412

0.71

156,154

1.00

  Other time deposits

153,774

0.74

169,584

0.90

    Interest-bearing deposits

737,988

0.36

740,564

0.49

  Short-term borrowings

6,242

0.24

7,340

0.27

    Total interest-bearing liabilities

744,230

0.36

%

747,904

0.49

%

Noninterest-bearing deposits

231,003

191,896

Accrued expenses and other liabilities

5,973

5,717

Stockholders' equity

149,032

141,884

Total liabilities and stockholders' equity

$ 1,130,238

$ 1,087,401

Net interest spread

3.39

%

3.30

%

Net interest margin

3.50

%

3.43

%

 

Shore Bancshares, Inc.

Page 8 of 11

Financial Highlights By Quarter

(Dollars in thousands, except per share data)

1st quarter

4th quarter

3rd quarter

2nd quarter

1st quarter

1Q 16

1Q 16

2016

2015

2015

2015

2015

compared to

compared to

(1Q 16)

(4Q 15)

(3Q 15)

(2Q 15)

(1Q 15)

4Q 15

1Q 15

PROFITABILITY FOR THE PERIOD

     Taxable-equivalent net interest income

$       9,273

$      9,315

$      9,027

$      8,701

$      8,560

(0.5)

%

8.3

%

     Less:  Taxable-equivalent adjustment

30

22

17

18

21

36.4

42.9

     Net interest income

9,243

9,293

9,010

8,683

8,539

(0.5)

8.2

     Provision for credit losses

450

475

410

540

650

(5.3)

(30.8)

     Noninterest income

4,541

3,638

3,905

3,788

4,085

24.8

11.2

     Noninterest expense

9,339

8,950

9,396

9,300

9,704

4.3

(3.8)

     Income before income taxes

3,995

3,506

3,109

2,631

2,270

13.9

76.0

     Income tax expense

1,535

1,343

1,200

1,004

861

14.3

78.3

     Net income

$       2,460

$      2,163

$      1,909

$      1,627

$      1,409

13.7

74.6

     Return on average assets

0.88

%

0.76

%

0.68

%

0.60

%

0.53

%

12

bp

35

bp

     Return on average equity

6.64

5.93

5.23

4.56

4.03

71

261

     Return on average tangible equity (1)

7.34

6.58

5.81

5.08

4.50

76

284

     Net interest margin

3.50

3.45

3.43

3.43

3.43

5

7

     Efficiency ratio - GAAP

67.61

69.10

72.66

74.47

76.74

(149)

(913)

     Efficiency ratio - Non-GAAP (1)

67.37

68.84

72.39

74.20

76.48

(147)

(911)

PER SHARE DATA

     Basic net income per common share

$         0.19

$        0.17

$        0.15

$        0.13

$        0.11

11.8

%

72.7

%

     Diluted net income per common share

0.19

0.17

0.15

0.13

0.11

11.8

72.7

     Dividends paid per common share

0.03

0.02

0.02

-

-

50.0

100.0

     Book value per common share at period end

11.88

11.64

11.55

11.35

11.31

2.1

5.0

     Tangible book value per common share at period end (1)

10.84

10.59

10.51

10.31

10.26

2.4

5.7

     Market value at period end

11.98

10.88

9.72

9.43

9.18

10.1

30.5

     Market range:

        High

12.08

11.00

9.72

9.55

9.30

9.8

29.9

        Low

11.95

10.64

9.37

9.43

9.03

12.3

32.3

AVERAGE BALANCE SHEET DATA

     Loans

$   790,777

$  785,572

$  763,306

$  727,800

$  714,780

0.7

%

10.6

%

     Investment securities

214,988

213,307

230,222

241,684

244,300

0.8

(12.0)

     Earning assets

1,065,514

1,072,728

1,044,230

1,016,172

1,013,490

(0.7)

5.1

     Assets

1,130,238

1,137,430

1,111,361

1,085,857

1,087,401

(0.6)

3.9

     Deposits

968,991

978,049

953,826

931,637

932,460

(0.9)

3.9

     Stockholders' equity

149,032

146,597

144,897

143,266

141,884

1.7

5.0

CREDIT QUALITY DATA AT PERIOD END

     Net charge-offs

$          457

$         257

$         229

$         421

$         547

77.8

%

(16.5)

%

     Nonaccrual loans

$     11,925

$    12,093

$    13,143

$    14,009

$    12,913

(1.4)

(7.7)

     Loans 90 days past due and still accruing

35

7

4

35

36

400.0

(2.8)

     Other real estate owned

3,896

4,252

2,884

2,498

3,469

(8.4)

12.3

     Total nonperforming assets

$     15,856

$    16,352

$    16,031

$    16,542

$    16,418

(3.0)

(3.4)

     Accruing troubled debt restructurings (TDRs)

$     14,753

$    15,495

$    16,431

$    18,353

$    16,644

(4.8)

(11.4)

     Total nonperforming assets and accruing TDRs

$     30,609

$    31,847

$    32,462

$    34,895

$    33,062

(3.9)

(7.4)

CAPITAL AND CREDIT QUALITY RATIOS

     Period-end equity to assets

13.27

%

12.95

%

13.05

%

13.22

%

13.05

%

32

bp

22

bp

     Period-end tangible equity to tangible assets (1)

12.25

11.93

12.02

12.16

11.98

32

27

     Annualized net charge-offs to average loans

0.23

0.13

0.12

0.23

0.31

10

(8)

     Allowance for credit losses as a percent of:

     Period-end loans     

1.04

1.05

1.04

1.07

1.08

(1)

(4)

     Nonaccrual loans

69.68

68.77

61.61

56.51

60.39

91

929

     Nonperforming assets

52.40

50.86

50.51

47.86

47.50

154

490

     Accruing TDRs

56.32

53.67

49.28

43.14

46.85

265

947

     Nonperforming assets and accruing TDRs

27.15

26.11

24.95

22.69

23.59

104

356

    As a percent of total loans:

    Nonaccrual loans

1.49

1.52

1.69

1.89

1.79

(3)

(30)

    Accruing TDRs

1.85

1.95

2.11

2.48

2.31

(10)

(46)

    Nonaccrual loans and accruing TDRs

3.34

3.47

3.80

4.37

4.10

(13)

(76)

    As a percent of total loans+other real estate owned:

    Nonperforming assets

1.98

2.05

2.06

2.22

2.26

(7)

(28)

    Nonperforming assets and accruing TDRs

3.81

3.98

4.16

4.69

4.56

(17)

(75)

    As a percent of total assets:

    Nonaccrual loans

1.05

1.07

1.18

1.29

1.18

(2)

(13)

    Nonperforming assets

1.40

1.44

1.43

1.53

1.50

(4)

(10)

    Accruing TDRs

1.30

1.37

1.47

1.69

1.52

(7)

(22)

    Nonperforming assets and accruing TDRs

2.70

2.81

2.90

3.22

3.02

(11)

(32)

(1)  See the reconciliation table on page 11 of 11.

 

Shore Bancshares, Inc.

Page 9 of 11

Consolidated Statements of Operations By Quarter

(In thousands, except per share data)

1Q 16

1Q 16

compared to

compared to

1Q 16

4Q 15

3Q 15

2Q 15

1Q 15

4Q 15

1Q 15

INTEREST INCOME

    Interest and fees on loans

$  8,961

$  9,142

$  8,912

$  8,581

$    8,491

(2.0)

%

5.5

%

    Interest and dividends on investment securities:

        Taxable

870

854

892

932

924

1.9

(5.8)

        Tax-exempt

2

2

2

3

3

-

(33.3)

    Interest on federal funds sold

3

1

1

-

1

200.0

200.0

    Interest on deposits with other banks

72

48

30

26

26

50.0

176.9

                   Total interest income

9,908

10,047

9,837

9,542

9,445

(1.4)

4.9

INTEREST EXPENSE

    Interest on deposits

661

750

824

856

901

(11.9)

(26.6)

    Interest on short-term borrowings

4

4

3

3

5

-

(20.0)

                   Total interest expense

665

754

827

859

906

(11.8)

(26.6)

NET INTEREST INCOME

9,243

9,293

9,010

8,683

8,539

(0.5)

8.2

Provision for credit losses

450

475

410

540

650

(5.3)

(30.8)

NET INTEREST INCOME AFTER PROVISION

  FOR CREDIT LOSSES

8,793

8,818

8,600

8,143

7,889

(0.3)

11.5

NONINTEREST INCOME

    Service charges on deposit accounts

813

806

769

658

634

0.9

28.2

    Trust and investment fee income

351

348

360

450

469

0.9

(25.2)

    Insurance agency commissions

2,759

1,760

2,107

1,932

2,475

56.8

11.5

    Other noninterest income

618

724

669

748

507

(14.6)

21.9

                      Total noninterest income

4,541

3,638

3,905

3,788

4,085

24.8

11.2

NONINTEREST EXPENSE

    Salaries and wages

4,477

4,366

4,468

4,393

4,313

2.5

3.8

    Employee benefits

1,114

890

935

924

1,156

25.2

(3.6)

    Occupancy expense

613

583

600

611

626

5.1

(2.1)

    Furniture and equipment expense

235

215

223

233

255

9.3

(7.8)

    Data processing

809

809

800

868

783

-

3.3

    Directors' fees

104

114

117

116

123

(8.8)

(15.4)

    Amortization of intangible assets

33

33

34

33

33

-

-

    FDIC insurance premium expense

282

281

243

306

384

0.4

(26.6)

    Write-downs of other real estate owned

7

39

7

54

27

(82.1)

(74.1)

    Legal and professional fees

385

440

642

573

725

(12.5)

(46.9)

    Other noninterest expenses

1,280

1,180

1,327

1,189

1,279

8.5

0.1

                      Total noninterest expense

9,339

8,950

9,396

9,300

9,704

4.3

(3.8)

Income before income taxes

3,995

3,506

3,109

2,631

2,270

13.9

76.0

Income tax expense

1,535

1,343

1,200

1,004

861

14.3

78.3

NET INCOME

$  2,460

$  2,163

$  1,909

$  1,627

$    1,409

13.7

74.6

Weighted average shares outstanding - basic

12,635

12,631

12,630

12,629

12,625

0.0

0.1

Weighted average shares outstanding - diluted

12,649

12,645

12,640

12,638

12,633

0.0

0.1

Basic net income per common share

$    0.19

$    0.17

$    0.15

$    0.13

$      0.11

11.8

72.7

Diluted net income per common share

0.19

0.17

0.15

0.13

0.11

11.8

72.7

Dividends paid per common share

0.03

0.02

0.02

-

-

50.0

-

 

Shore Bancshares, Inc.

Page 10 of 11

Consolidated Average Balance Sheets By Quarter

(Dollars in thousands)

Average balance

1Q 16

1Q 16

compared to

compared to

1Q 16

4Q 15

3Q 15

2Q 15

1Q 15

4Q 15

1Q 15

Average

Yield/

Average

Yield/

Average

Yield/

Average

Yield/

Average

Yield/

balance

rate

balance

rate

balance

rate

balance

rate

balance

rate

Earning assets

  Loans

$    790,777

4.57

%

$    785,572

4.63

%

$    763,306

4.64

%

$    727,800

4.74

%

$    714,780

4.83

%

0.7

%

10.6

%

  Investment securities

   Taxable

214,778

1.62

213,097

1.60

229,979

1.55

241,254

1.55

243,869

1.52

0.8

(11.9)

   Tax-exempt

210

5.30

210

5.30

243

5.01

430

4.21

431

4.19

-

(51.3)

  Federal funds sold

3,640

0.33

3,886

0.12

2,341

0.10

2,931

0.09

2,801

0.09

(6.3)

30.0

  Interest-bearing deposits

56,109

0.51

69,963

0.27

48,361

0.25

43,757

0.24

51,609

0.20

(19.8)

8.7

    Total earning assets

1,065,514

3.75

%

1,072,728

3.72

%

1,044,230

3.74

%

1,016,172

3.77

%

1,013,490

3.79

%

(0.7)

5.1

Cash and due from banks

16,205

16,628

17,434

18,723

21,268

(2.5)

(23.8)

Other assets

57,037

56,512

57,891

59,045

60,611

0.9

(5.9)

Allowance for credit losses

(8,518)

(8,438)

(8,194)

(8,083)

(7,968)

0.9

6.9

Total assets

$ 1,130,238

$ 1,137,430

$ 1,111,361

$ 1,085,857

$ 1,087,401

(0.6)

3.9

Interest-bearing liabilities

  Demand deposits

$    193,087

0.12

%

$    190,237

0.13

%

$    184,471

0.13

%

$    171,274

0.12

%

$    177,071

0.13

%

1.5

9.0

  Money market and savings deposits

258,715

0.13

255,974

0.14

242,830

0.14

238,173

0.14

237,755

0.14

1.1

8.8

  Certificates of deposit $100,000 or more

132,412

0.71

139,663

0.80

148,617

0.92

152,478

0.97

156,154

1.00

(5.2)

(15.2)

  Other time deposits

153,774

0.74

158,011

0.80

163,224

0.82

166,277

0.85

169,584

0.90

(2.7)

(9.3)

    Interest-bearing deposits

737,988

0.36

743,885

0.40

739,142

0.44

728,202

0.47

740,564

0.49

(0.8)

(0.3)

  Short-term borrowings

6,242

0.24

6,199

0.23

6,501

0.24

4,872

0.23

7,340

0.27

0.7

(15.0)

    Total interest-bearing liabilities

744,230

0.36

%

750,084

0.40

%

745,643

0.44

%

733,074

0.47

%

747,904

0.49

%

(0.8)

(0.5)

Noninterest-bearing deposits

231,003

234,164

214,684

203,435

191,896

(1.3)

20.4

Accrued expenses and other liabilities

5,973

6,585

6,137

6,082

5,717

(9.3)

4.5

Stockholders' equity

149,032

146,597

144,897

143,266

141,884

1.7

5.0

Total liabilities and stockholders' equity

$ 1,130,238

$ 1,137,430

$ 1,111,361

$ 1,085,857

$ 1,087,401

(0.6)

3.9

Net interest spread

3.39

%

3.32

%

3.30

%

3.30

%

3.30

%

Net interest margin

3.50

%

3.45

%

3.43

%

3.43

%

3.43

%

Shore Bancshares, Inc.

Page 11 of 11

Reconciliation of Generally Accepted Accounting Principles (GAAP)

  and Non-GAAP Measures

(In thousands, except per share data)

1Q 16

4Q 15

3Q 15

2Q 15

1Q 15

The following reconciles return on average equity and return on

  average tangible equity (Note 1):

Net income

$       2,460

$       2,163

$       1,909

$       1,627

$       1,409

Net income - annualized (A)

$       9,894

$       8,581

$       7,574

$       6,526

$       5,714

Net income, excluding net amortization of intangible assets

$       2,480

$       2,183

$       1,930

$       1,647

$       1,429

Net income, excluding net amortization of intangible

  assets - annualized (B)

$       9,975

$       8,661

$       7,657

$       6,606

$       5,795

Average stockholders' equity (C)

$   149,032

$   146,597

$   144,897

$   143,266

$   141,884

Less:  Average goodwill and other intangible assets

(13,129)

(13,155)

(13,182)

(13,215)

(13,248)

Average tangible equity (D)

$   135,903

$   133,442

$   131,715

$   130,051

$   128,636

Return on average equity (GAAP)  (A)/(C)

6.64

%

5.85

%

5.23

%

4.56

%

4.03

%

Return on average tangible equity (Non-GAAP)  (B)/(D)

7.34

%

6.49

%

5.81

%

5.08

%

4.50

%

The following reconciles GAAP efficiency ratio and non-GAAP

  efficiency ratio (Note 2):

Noninterest expense (E)

$       9,339

$       8,950

$       9,396

$       9,300

$       9,704

Less:  Amortization of intangible assets

(33)

(33)

(34)

(33)

(33)

Adjusted noninterest expense (F)

$       9,306

$       8,917

$       9,362

$       9,267

$       9,671

Taxable-equivalent net interest income (G)

$       9,273

$       9,315

$       9,027

$       8,701

$       8,560

Taxable-equivalent net interest income excluding nonrecurring adjustment (H)

$       9,273

$       9,315

$       9,027

$       8,701

$       8,560

Noninterest income (I)

$       4,541

$       3,638

$       3,905

$       3,788

$       4,085

Adjusted noninterest income (J)

$       4,541

$       3,638

$       3,905

$       3,788

$       4,085

Efficiency ratio (GAAP)  (E)/(G)+(I)

67.61

%

69.10

%

72.66

%

74.47

%

76.74

%

Efficiency ratio (Non-GAAP)  (F)/(H)+(J)

67.37

%

68.84

%

72.39

%

74.20

%

76.48

%

The following reconciles book value per common share and tangible

  book value per common share (Note 1):

Stockholders' equity (K)

$   150,109

$   146,967

$   145,887

$   143,402

$   142,746

Less:  Goodwill and other intangible assets

(13,109)

(13,142)

(13,162)

(13,195)

(13,228)

Tangible equity (L)

$   137,000

$   133,825

$   132,725

$   130,207

$   129,518

Shares outstanding (M)

12,640

12,631

12,630

12,630

12,625

Book value per common share (GAAP)  (K)/(M)

$       11.88

$       11.64

$       11.55

$       11.35

$       11.31

Tangible book value per common share (Non-GAAP)  (L)/(M)

$       10.84

$       10.59

$       10.51

$       10.31

$       10.26

The following reconciles equity to assets and

  tangible equity to tangible assets (Note 1):

Stockholders' equity (N)

$   150,109

$   146,967

$   145,887

$   143,402

$   142,746

Less:  Goodwill and other intangible assets

(13,109)

(13,142)

(13,162)

(13,195)

(13,228)

Tangible equity (O)

$   137,000

$   133,825

$   132,725

$   130,207

$   129,518

Assets (P)

$ 1,131,175

$ 1,135,143

$ 1,117,813

$ 1,084,352

$ 1,094,128

Less:  Goodwill and other intangible assets

(13,109)

(13,142)

(13,162)

(13,195)

(13,228)

Tangible assets (Q)

$ 1,118,066

$ 1,122,001

$ 1,104,651

$ 1,071,157

$ 1,080,900

Period-end equity/assets (GAAP)  (N)/(P)

13.27

%

12.95

%

13.05

%

13.22

%

13.05

%

Period-end tangible equity/tangible assets (Non-GAAP)  (O)/(Q)

12.25

%

11.93

%

12.02

%

12.16

%

11.98

%

Note 1:  Management believes that reporting tangible equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.

Note 2:  Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities. 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/shore-bancshares-reports-first-quarter-2016-financial-results-300255353.html

SOURCE Shore Bancshares, Inc.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Press Releases

Related Entities

Dividend, FDIC, Earnings