EASTON, Md., Oct. 26 /PRNewswire-FirstCall/ -- Shore Bancshares, Inc. 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 - -
Shore Bancshares, Inc.
CONTACT: W. Moorhead Vermilye, President and CEO, +1-410-822-1400
Web Site: http://www.shbi.net/
