EASTON, Md., Oct. 26 /PRNewswire-FirstCall/ -- Shore Bancshares, Inc. (Nasdaq:
SHBI) reported net income available to common stockholders of $1.951 million
or $0.23 per diluted common share for the third quarter of 2009, compared to
$354 thousand or $0.04 per diluted common share for the second quarter of 2009
and $3.1 million or $0.37 per diluted common share for the third quarter of
2008. Net income available to common stockholders for the first nine months
of 2009 was $4.2 million or $0.50 per diluted common share, compared to $9.2
million or $1.10 per diluted common share for the first nine months of 2008.
Net income available to common stockholders was negatively impacted by
dividends and discount accretion associated with the sale and subsequent
repurchase of preferred stock under the U.S. Department of the Treasury's
Troubled Asset Relief Program Capital Purchase Program. Although there was no
impact from the dividends and accretion during the third quarter of 2009, the
impact on the second quarter of 2009 was $1.5 million or $0.18 per share.
The comparable amount for the first nine months of 2009 was $1.9 million or
$0.22 per share.
"Although we added $1.7 million to the provision for credit losses to keep
pace with ongoing loan growth in new loans plus higher levels of
nonperforming assets and chargeoffs, we are pleased to report net income of
nearly $2 million for the third quarter," said W. Moorhead Vermilye,
president and chief executive officer.
"Our regional economy consistently outperforms the nation as a whole, but we
are still working in an operating environment where asset quality concerns are
likely to persist for the foreseeable future. We have been diligently moving
problem loans through the resolution pipeline and expect to continue focusing
resources on this area to maintain our traditional high-quality, conservative
balance sheet. On the deposit side, we believe our people have done an
excellent job managing our cost of funds, while also growing deposit balances
by attracting customers who are seeking a leading locally-managed institution
as a safe haven from market disruption," said Vermilye.
The Company's return on average assets for the third quarter of 2009 was
0.66%, compared to 0.13% and 1.19% for the quarters ended June 30, 2009 and
September 30, 2008, respectively. The return on average stockholders' equity
was 6.03% for the third quarter of 2009, compared to 1.07% for the second
quarter of 2009 and 9.81% for the third quarter of 2008.
The Company's return on average assets for the first nine months of 2009 was
0.50%, compared to 1.23% for the first nine months of 2008. The return on
average stockholders' equity was 4.08% for the first nine months of 2009,
compared to 9.95% for the same period in 2008.
Total assets were $1.158 billion at September 30, 2009, compared to $1.045
billion at the end of 2008, an increase of $113.0 million. Total loans were
$918.6 million and total deposits were $992.2 million, an increase of $30.1
million and $146.8 million, respectively, when compared to December 31, 2008.
The increase in deposits was primarily from the Company's participation in the
Promontory Insured Network Deposits Program ("IND") beginning in the second
quarter of 2009. Total stockholders' equity increased slightly from the end
of 2008.
Review of Quarterly Financial Results
Net interest income for the third quarter of 2009 was $10.4 million, a 3.4%
increase from the second quarter of 2009 and a 5.2% increase from the same
period last year. Higher average balances on earning assets and lower rates
paid on interest bearing liabilities were sufficient to offset the decline in
yields on earning assets. The Company's net interest margin was 3.79% for
the third quarter of 2009, a decrease of 6 basis points when compared to the
second quarter of 2009 and a decrease of 31 basis points when compared to the
third quarter of 2008.
The provision for credit losses was $1.7 million for the three months ended
September 30, 2009 which was the same for the three months ended June 30,
2009. The comparable amount was $875 thousand for the three months ended
September 30, 2008. The continued large level of provision expense was
primarily in response to sustained 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 $1.8 million for the third quarter
of 2009, $1.6 million for the second quarter of 2009 and $539 thousand for the
third quarter of 2008. Quarter-to-date annualized net charge-offs to average
loans was 0.76% for the third quarter of 2009, 0.71% for the second quarter of
2009 and 0.25% for the third quarter of 2008. Nonperforming assets to total
assets was 1.45% at September 30, 2009. The comparable nonperforming asset
ratio was 1.37% at June 30, 2009 and 0.72% at September 30, 2008. The
allowance for credit losses to period-end loans was 1.17% at both September
30, 2009 and June 30, 2009 and 1.00% at September 30, 2008. Management
believes that the provision for credit losses and the resulting allowance were
adequate at September 30, 2009.
Noninterest income for the third quarter of 2009 decreased 11.7% when compared
to the second quarter of 2009 and decreased 10.0% when compared to the third
quarter of 2008. A mark to market gain on interest rate swaps of $420
thousand during the second quarter of 2009 and a decrease in insurance agency
commissions of $149 thousand accounted for most of the decrease from the
second quarter of 2009. The decrease from the third quarter of 2008 was
primarily due to a $1.3 million gain on the sale of a bank branch in August
2008. The gain on the branch sale was partially offset by a $371 thousand
other than temporary impairment 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.
Noninterest expense for the third quarter of 2009 decreased 3.7% when compared
to the second quarter of 2009 and increased 9.2% when compared to the third
quarter of 2008. A significant portion of the fluctuations was due to FDIC
insurance premium expense which decreased $462 thousand when compared to the
second quarter of 2009 and increased $322 thousand when compared to the third
quarter of 2008. The second quarter of 2009 included a special one-time
assessment which totaled $513 thousand.
Review of Nine-Month Financial Results
Net interest income for the first nine months of 2009 was $30.6 million, an
increase of 3.4% when compared to the first nine months of 2008. Similar to
the quarterly results reported above, higher average balances on earning
assets and lower rates paid on interest bearing liabilities were sufficient to
offset the decline in yields on earning assets. The net interest margin
declined 32 basis points from 4.22% for the first nine months of 2008 to 3.90%
for the first nine months of 2009.
The provisions for credit losses for the nine months ended September 30, 2009
and 2008 were $5.3 million and $2.0 million, respectively. Net charge-offs
were $3.9 million and $885 thousand for the nine months ended September 30,
2009 and 2008, respectively. Year-to-date annualized net charge-offs to
average loans was 0.57% for the first nine months of 2009 and 0.14% for the
first nine months of 2008.
Noninterest income for the nine months ended September 30, 2009 decreased 3.3%
when compared to the same period in 2008. The mark to market gain on interest
rate swaps of $420 thousand during the second quarter of 2009, offset by a
decrease in insurance agency commissions of $623 thousand, accounted for part
of the decrease compared to the first nine months of 2008. In addition,
noninterest income for the first nine months of 2008 included the previously
mentioned $1.3 million gain on the branch sale and the $708 thousand combined
loss relating to the other than temporary impairment and the sale of the
investment in the unconsolidated subsidiary.
Noninterest expense for the nine months ended September 30, 2009 increased
7.4% when compared to the same period in 2008. A significant portion of the
increase was due to increased FDIC insurance premium expense of $1.4 million
when compared to the first nine months of 2008. The increase in FDIC
insurance premiums was attributable to higher overall rates, a one-time
special assessment which totaled $513 thousand and growth in the Company's
total deposits.
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".
Shore Bancshares, Inc.
Financial Highlights
(Dollars in thousands, except per share data)
For the Three Months Ended For the Nine Months Ended
Sep. 30, Sep. 30,
-------- --------
% %
2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
PROFITABILITY
FOR THE PERIOD
Net interest
income $10,428 $9,909 5.2% $30,572 $29,571 3.4%
Provision for
credit losses 1,702 875 94.5 5,318 1,952 172.4
Noninterest
income 4,719 5,246 (10.0) 15,416 15,942 (3.3)
Noninterest
expense 10,297 9,429 9.2 30,873 28,749 7.4
------ ----- ------ ------
Income before
income taxes 3,148 4,851 (35.1) 9,797 14,812 (33.9)
Income tax
expense 1,197 1,780 (32.8) 3,740 5,603 (33.3)
----- ----- ----- -----
Net income 1,951 3,071 (36.5) 6,057 9,209 (34.2)
Preferred stock
dividends and
discount
accretion - - - 1,876 - -
----- ----- ----- -----
Net income
available to
common
shareholders $1,951 $3,071 (36.5) $4,181 $9,209 (54.6)
====== ====== ====== ======
Return on average
assets (1) 0.66% 1.19% (44.5)% 0.50% 1.23% (59.3)%
Return on average
equity (1) 6.03 9.81 (38.5) 4.08 9.95 (59.0)
Net interest
margin 3.79 4.10 (7.6) 3.90 4.22 (7.6)
Efficiency ratio -
GAAP based 67.98 62.22 9.3 67.13 63.17 6.3
PER SHARE DATA
Basic net income
per share $0.23 $0.37 (37.8)% $0.72 $1.10 (34.5)%
Basic net income
per common share 0.23 0.37 (37.8) 0.50 1.10 (54.5)
Diluted net income
per share 0.23 0.37 (37.8) 0.72 1.10 (34.5)
Diluted net income
per common share 0.23 0.37 (37.8) 0.50 1.10 (54.5)
Dividends paid per
common share 0.16 0.16 - 0.48 0.48 -
Book value per
common share at
period end 15.23 14.92 2.1
Tangible book
value per common
share at period
end 12.68 12.30 3.1
Market value at
period end 16.73 25.70 (34.9)
Market range:
High 20.72 27.25 (24.0) 24.43 27.25 (10.3)
Low 16.64 18.00 (7.6) 11.00 18.00 (38.9)
AT PERIOD END
Loans $918,601 $865,437 6.1%
Securities 103,921 93,149 11.6
Assets 1,157,685 1,037,026 11.6
Deposits 992,196 839,217 18.2
Stockholders'
equity 128,219 125,401 2.2
CAPITAL AND CREDIT
QUALITY RATIOS
Average equity to
average assets 11.01% 12.12% 12.29% 12.33%
Annualized net
charge-offs to
average loans 0.76 0.25 0.57 0.14
Allowance for
credit losses to
period-end
loans 1.17 1.00
Nonperforming
assets to total
assets 1.45 0.72
(1) Calculation uses net income available to common shareholders.
Shore Bancshares, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
Sep. 30, Sep. 30,
2009 2009
compared compared
to to
Sep. 30, Dec. 31, Sep. 30, Dec. 31, Sep. 30,
2009 2008 2008 2008 2008
---- ---- ---- ---- ----
ASSETS
Cash and due
from banks $13,699 $16,803 $21,883 (18.5)% (37.4)%
Interest-bearing
deposits with
other banks 1,601 481 513 232.8 212.1
Federal funds
sold 72,061 10,010 15,416 619.9 367.4
Investments
available-for-
sale (at fair
value) 94,917 79,204 82,235 19.8 15.4
Investments
held-to-maturity 9,004 10,252 10,914 (12.2) (17.5)
Loans 918,601 888,528 865,437 3.4 6.1
Less: allowance
for credit
losses (10,723) (9,320) (8,618) 15.1 24.4
------- ------ ------
Loans, net 907,878 879,208 856,819 3.3 6.0
------- ------- -------
Premises and
equipment, net 14,012 13,855 14,097 1.1 (0.6)
Accrued interest
receivable 4,769 4,606 5,023 3.5 (5.1)
Goodwill 15,954 15,954 15,954 - -
Other intangible
assets, net 5,535 5,921 6,050 (6.5) (8.5)
Other real estate
owned 2,062 148 - 1,293.2 -
Other assets 16,193 8,199 8,122 97.5 99.4
------ ----- -----
Total
assets $1,157,685 $1,044,641 $1,037,026 10.8 11.6
========= ========== ==========
LIABILITIES
Noninterest-
bearing
deposits $124,440 $102,584 $118,049 21.3 5.4
Interest-
bearing
deposits 867,756 742,787 721,168 16.8 20.3
------- ------- -------
Total
deposits 992,196 845,371 839,217 17.4 18.2
Short-term
borrowings 17,673 52,969 53,078 (66.6) (66.7)
Long-term debt 1,947 7,947 8,485 (75.5) (77.1)
Accrued interest
payable and
other
liabilities 17,650 10,969 10,845 60.9 62.7
------ ------ ------
Total
liabilities 1,029,466 917,256 911,625 12.2 12.9
--------- ------- -------
STOCKHOLDERS' EQUITY
Common stock, par
value $0.01;
authorized
35,000,000 shares 84 84 84 - -
Warrants 1,543 - - - -
Additional paid
in capital 29,844 29,768 29,744 0.3 0.3
Retained earnings 96,283 96,140 95,224 0.1 1.1
Accumulated other
comprehensive
income 465 1,393 349 (66.6) 33.2
--- ----- ---
Total
stockholders'
equity 128,219 127,385 125,401 0.7 2.2
------- ------- -------
Total
liabilities
and stock-
holders'
equity $1,157,685 $1,044,641 $1,037,026 10.8 11.6
========== ========== ==========
Period-end common
shares outstanding 8,419 8,405 8,405 0.2 0.2
Book value per
common share $15.23 $15.16 $14.92 0.5 2.1
Shore Bancshares, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
For the Three For the Nine
Months Ended Months Ended
Sep. 30, Sep. 30,
-------- --------
% %
2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------
INTEREST INCOME
Interest and fees
on loans $14,001 $14,179 (1.3)% $41,372 $42,700 (3.1)%
Interest and
dividends
on investment
securities:
Taxable 800 924 (13.4) 2,324 2,949 (21.2)
Tax-exempt 77 95 (18.9) 241 327 (26.3)
Interest on
federal funds
sold 31 79 (60.8) 61 284 (78.5)
Interest on
deposits with
other banks 4 21 (81.0) 11 88 (87.5)
- -- -- --
Total interest
income 14,913 15,298 (2.5) 44,009 46,348 (5.0)
------ ------ ------ ------
INTEREST EXPENSE
Interest on
deposits 4,368 4,955 (11.8) 13,094 15,295 (14.4)
Interest on short-
term
borrowings 19 344 94.5) 96 1,026 (90.6)
Interest on long-
term debt 98 90 8.9 247 456 (45.8)
-- -- --- ---
Total interest
expense 4,485 5,389 (16.8) 13,437 16,777 (19.9)
----- ----- ------ ------
NET INTEREST INCOME 10,428 9,909 5.2 30,572 29,571 3.4
Provision for
credit losses 1,702 875 94.5 5,318 1,952 172.4
----- --- ----- -----
NET INTEREST INCOME
AFTER PROVISION
FOR CREDIT LOSSES 8,726 9,034 (3.4) 25,254 27,619 (8.6)
----- ----- ------ ------
NONINTEREST INCOME
Service charges on
deposit
accounts 861 923 (6.7) 2,558 2,711 (5.6)
Investment
securities
gains - - - 49 - -
Other than
temporary
impairment of
securities - (371) 100.0 - (371) 100.0
Insurance agency
commissions 2,744 2,845 (3.6) 8,972 9,595 (6.5)
Other noninterest
income 1,114 1,849 (39.8) 3,837 4,007 (4.2)
----- ----- ----- -----
Total noninterest
income 4,719 5,246 (10.0) 15,416 15,942 (3.3)
----- ----- ------ ------
NONINTEREST EXPENSE
Salaries and
employee
benefits 5,976 5,802 3.0 17,855 17,545 1.8
Occupancy
expense 616 558 10.4 1,752 1,594 9.9
Furniture and
equipment
expense 299 310 (3.5) 915 894 2.3
Data processing 675 610 10.7 1,865 1,728 7.9
Directors' fees 109 131 (16.8) 394 426 (7.5)
Amortization of
intangible
assets 128 128 - 386 386 -
Other noninterest
expenses 2,494 1,890 32.0 7,706 6,176 24.8
----- ----- ----- -----
Total non-
interest
expense 10,297 9,429 9.2 30,873 28,749 7.4
------ ----- ------ ------
Income before
income taxes 3,148 4,851 (35.1) 9,797 14,812 (33.9)
Income tax expense 1,197 1,780 (32.8) 3,740 5,603 (33.3)
----- ----- ----- -----
NET INCOME 1,951 3,071 (36.5) 6,057 9,209 (34.2)
Preferred stock
dividends and
discount accretion - - - 1,876 - -
--- --- --- ----- --- ---
Net income
available to
common
shareholders $1,951 $3,071 (36.5) $4,181 $9,209 (54.6)
====== ====== ====== ======
Weighted average
shares outstanding
- basic 8,419 8,405 0.2 8,412 8,398 0.2
Weighted average
shares outstanding
- diluted 8,423 8,411 0.1 8,416 8,405 0.1
Basic net income
per share $0.23 $0.37 (37.8) $0.72 $1.10 (34.5)
Basic net income
per common share 0.23 0.37 (37.8) 0.50 1.10 (54.5)
Diluted net income
per share 0.23 0.37 (37.8) 0.72 1.10 (34.5)
Diluted net income
per common share 0.23 0.37 (37.8) 0.50 1.10 (54.5)
Dividends paid per
common share 0.16 0.16 - 0.48 0.48 -
Shore Bancshares, Inc.
Financial Highlights By Quarter
(Dollars in thousands, except per share data)
3rd 2nd 1st 4th
quarter quarter quarter quarter
2009 2009 2009 2008
(3Q 09) (2Q 09) (1Q 09) (4Q 08)
------- ------- ------- -------
PROFITABILITY FOR THE
PERIOD
Net interest income $10,428 $10,086 $10,058 $10,348
Provision for credit
losses 1,702 1,681 1,935 1,385
Noninterest income 4,719 5,347 5,350 4,408
Noninterest expense 10,297 10,693 9,883 9,621
------ ------ ----- -----
Income before income
taxes 3,148 3,059 3,590 3,750
Income tax expense 1,197 1,166 1,377 1,489
----- ----- ----- -----
Net income 1,951 1,893 2,213 2,261
Preferred stock
dividends and discount
accretion - 1,539 337 -
--- ----- --- ---
Net income available to
common shareholders $1,951 $354 $1,876 $2,261
====== ==== ====== ======
Return on average
assets (1) 0.66% 0.13% 0.72% 0.87%
Return on average
equity (1) 6.03 1.07 5.05 7.11
Net interest margin 3.79 3.85 4.09 4.24
Efficiency ratio - GAAP
based 67.98 69.29 64.14 65.20
PER SHARE DATA
Basic net income per
share $0.23 $0.23 $0.26 $0.27
Basic net income per
common share 0.23 0.04 0.22 0.27
Diluted net income per
share 0.23 0.22 0.26 0.27
Diluted net income per
common share 0.23 0.04 0.22 0.27
Dividends paid per
common share 0.16 0.16 0.16 0.16
Book value per common
share at period end 15.23 15.19 15.38 15.16
Tangible book value per
common share at period
end 12.68 12.62 12.79 12.55
Market value at period
end 16.73 17.94 16.75 23.99
Market range:
High 20.72 21.46 24.43 25.97
Low 16.64 15.18 11.00 17.50
AT PERIOD END
Loans $918,601 $919,088 $908,118 $888,528
Securities 103,921 89,272 78,953 89,456
Assets 1,157,685 1,158,212 1,075,934 1,044,641
Deposits 992,196 981,334 873,089 845,371
Stockholders' equity 128,219 127,876 152,781 127,385
CAPITAL AND CREDIT
QUALITY RATIOS
Average equity to
average assets 11.01% 11.84% 14.23% 12.22%
Annualized net charge-
offs to average loans 0.76 0.71 0.25 0.31
Allowance for credit
losses to period-end
loans 1.17 1.17 1.18 1.05
Nonperforming assets to
total assets 1.45 1.37 0.85 0.79
3rd
quarter 3Q 09 3Q 09
2008 compared compared
to to
(3Q 08) 2Q 09 3Q 08
------- ----- -----
PROFITABILITY
FOR THE PERIOD
Net interest income $9,909 3.4% 5.2%
Provision for credit
losses 875 1.2 94.5
Noninterest income 5,246 (11.7) (10.0)
Noninterest expense 9,429 (3.7) 9.2
-----
Income before income
taxes 4,851 2.9 (35.1)
Income tax expense 1,780 2.7 (32.8)
-----
Net income 3,071 3.1 (36.5)
Preferred stock
dividends and discount
accretion - (100.0) -
--- ---
Net income available to
common shareholders $3,071 451.1 (36.5)
======
Return on average
assets (1) 1.19% 407.7% (44.5)%
Return on average
equity (1) 9.81 463.6 (38.5)
Net interest margin 4.10 (1.6) (7.6)
Efficiency ratio - GAAP
based 62.22 (1.9) 9.3
PER SHARE DATA
Basic net income per
share $0.37 -% (37.8)%
Basic net income per
common share 0.37 475.0 (37.8)
Diluted net income per
share 0.37 4.5 (37.8)
Diluted net income per
common share 0.37 475.0 (37.8)
Dividends paid per
common share 0.16 - -
Book value per common
share at period end 14.92 0.3 2.1
Tangible book value per
common share at period
end 12.30 0.5 3.1
Market value at period
end 25.70 (6.7) (34.9)
Market range:
High 27.25 (3.4) (24.0)
Low 18.00 9.6 (7.6)
AT PERIOD END
Loans $865,437 (0.1)% 6.1%
Securities 93,149 16.4 11.6
Assets 1,037,026 - 11.6
Deposits 839,217 1.1 18.2
Stockholders' equity 125,401 0.3 2.2
CAPITAL AND CREDIT
QUALITY RATIOS
Average equity to
average assets 12.12%
Annualized net charge-
offs to average loans 0.25
Allowance for credit
losses to period-end
loans 1.00
Nonperforming assets to
total assets 0.72
(1) Calculation uses net income available to common shareholders.
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter
(In thousands, except per share data)
3Q 09 2Q 09 1Q 09 4Q 08 3Q 08
----- ----- ----- ----- -----
INTEREST INCOME
Interest and fees
on loans $14,001 $13,754 $13,617 $14,166 $14,179
Interest and
dividends
on investment
securities:
Taxable 800 768 756 839 924
Tax-exempt 77 79 85 93 95
Interest on
federal funds
sold 31 23 7 24 79
Interest on
deposits with
other banks 4 6 1 4 21
- - - - --
Total interest
income 14,913 14,630 14,466 15,126 15,298
------ ------ ------ ------ ------
INTEREST EXPENSE
Interest on
deposits 4,368 4,441 4,285 4,582 4,955
Interest on short-
term borrowings 19 28 49 121 344
Interest on long-
term debt 98 75 74 75 90
-- -- -- -- --
Total interest
expense 4,485 4,544 4,408 4,778 5,389
----- ----- ----- ----- -----
NET INTEREST INCOME 10,428 10,086 10,058 10,348 9,909
Provision for
credit losses 1,702 1,681 1,935 1,385 875
----- ----- ----- ----- ---
NET INTEREST INCOME
AFTER PROVISION
FOR CREDIT LOSSES 8,726 8,405 8,123 8,963 9,034
----- ----- ----- ----- -----
NONINTEREST INCOME
Service charges on
deposit accounts 861 888 809 889 923
Investment
securities gains
(losses) - - 49 (15) -
Other than
temporary
impairment of
securities - - - - (371)
Insurance agency
commissions 2,744 2,893 3,335 2,495 2,845
Other noninterest
income 1,114 1,566 1,157 1,039 1,849
----- ----- ----- ----- -----
Total noninterest
income 4,719 5,347 5,350 4,408 5,246
----- ----- ----- ----- -----
NONINTEREST EXPENSE
Salaries and
employee
benefits 5,976 5,959 5,920 5,776 5,802
Occupancy
expense 616 587 549 585 558
Furniture and
equipment
expense 299 302 314 291 310
Data processing 675 580 610 595 610
Directors' fees 109 117 168 132 131
Amortization of
intangible
assets 128 129 129 129 128
Other noninterest
expenses 2,494 3,019 2,193 2,113 1,890
----- ----- ----- ----- -----
Total noninterest
expense 10,297 10,693 9,883 9,621 9,429
------ ------ ----- ----- -----
Income before
income taxes 3,148 3,059 3,590 3,750 4,851
Income tax expense 1,197 1,166 1,377 1,489 1,780
----- ----- ----- ----- -----
NET INCOME 1,951 1,893 2,213 2,261 3,071
Preferred stock
dividends and
discount accretion - 1,539 337 - -
--- ----- --- --- ---
Net income
available to
common
shareholders $1,951 $354 $1,876 $2,261 $3,071
====== ==== ====== ====== ======
Weighted average
shares outstanding
- basic 8,419 8,413 8,405 8,405 8,405
Weighted average
shares outstanding
- diluted 8,423 8,417 8,408 8,410 8,411
Basic net income
per share $0.23 $0.23 $0.26 $0.27 $0.37
Basic net income
per common share 0.23 0.04 0.22 0.27 0.37
Diluted net income
per share 0.23 0.22 0.26 0.27 0.37
Diluted net income
per common share 0.23 0.04 0.22 0.27 0.37
Dividends paid per
common share 0.16 0.16 0.16 0.16 0.16
3Q 09 3Q 09
compared to compared to
2Q 09 3Q 08
----- -----
INTEREST INCOME
Interest and fees
on loans 1.8% (1.3)%
Interest and dividends
on investment securities:
Taxable 4.2 (13.4)
Tax-exempt (2.5) (18.9)
Interest on
federal funds
sold 34.8 (60.8)
Interest on
deposits with
other banks (33.3) (81.0)
Total interest
income 1.9 (2.5)
INTEREST EXPENSE
Interest on
deposits (1.6) (11.8)
Interest on short-
term borrowings (32.1) (94.5)
Interest on long-
term debt 30.7 8.9
Total interest
expense (1.3) (16.8)
NET INTEREST INCOME 3.4 5.2
Provision for
credit losses 1.2 94.5
NET INTEREST INCOME
AFTER PROVISION
FOR CREDIT LOSSES 3.8 (3.4)
NONINTEREST INCOME
Service charges on
deposit accounts (3.0) (6.7)
Investment
securities gains
(losses) - -
Other than
temporary
impairment of
securities - 100.0
Insurance agency
commissions (5.2) (3.6)
Other noninterest
income (28.9) (39.8)
Total noninterest
income (11.7) (10.0)
NONINTEREST EXPENSE
Salaries and
employee
benefits 0.3 3.0
Occupancy
expense 4.9 10.4
Furniture and
equipment
expense (1.0) (3.5)
Data processing 16.4 10.7
Directors' fees (6.8) (16.8)
Amortization of
intangible
assets (0.8) -
Other noninterest
expenses (17.4) 32.0
Total noninterest
expense (3.7) 9.2
Income before
income taxes 2.9 (35.1)
Income tax expense 2.7 (32.8)
NET INCOME 3.1 (36.5)
Preferred stock
dividends and
discount accretion (100.0) -
Net income
available to
common
shareholders 451.1 (36.5)
Weighted average
shares outstanding
- basic 0.1 0.2
Weighted average
shares outstanding
- diluted 0.1 0.1
Basic net income
per share - (37.8)
Basic net income
per common share 475.0 (37.8)
Diluted net income
per share 4.5 (37.8)
Diluted net income
per common share 475.0 (37.8)
Dividends paid per
common share - -
SOURCE Shore Bancshares, Inc.
W. Moorhead Vermilye, President and CEO, +1-410-822-1400
