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25.04.2019 22:15:00
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Shore Bancshares Reports First Quarter 2019 Financial Results
EASTON, Md., April 25, 2019 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) reported net income of $3.754 million or $0.29 per diluted common share for the first quarter of 2019, compared to net income of $12.094 million or $0.95 per diluted common share for the fourth quarter of 2018, and net income of $4.058 million or $0.32 per diluted common share for the first quarter of 2018. Net income from continuing operations for the first quarter of 2019 was $3.828 million or $0.30 per diluted common share, compared to net income from continuing operations of $3.853 million or $0.30 per diluted common share for the fourth quarter of 2018, and net income from continuing operations of $3.462 million or $0.27 per diluted common share for the first quarter of 2018.
When comparing the first quarter of 2019 to the fourth quarter of 2018, absent the sale and activity of Avon-Dixon, the Company's retail insurance entity sold on December 31, 2018, net income decreased $25 thousand or 0.6% primarily the result of less income from taxable investment securities and higher noninterest expenses which were almost entirely offset by an increase in interest and fees on loans, lower provision for credit losses and improved noninterest income. When comparing net income from continuing operations for the first quarter of 2019 to the first quarter of 2018, net income improved $366 thousand or 10.6%, primarily due to higher interest and fees on loans and a reduction in provision for credit losses, partially offset by an increase in interest expense on deposits and borrowings.
We are pleased to report financial results for the first quarter of 2019," said Lloyd L. "Scott" Beatty, Jr., President and Chief Executive Officer. "During the first quarter of 2019 we experienced increases in both loans and core deposits getting us off to a great start for 2019. In addition to nice growth in these areas in the first quarter we are excited about the opportunity to expand our footprint with the opening of our new branch in Ocean City, Maryland by the end of 2019. We have an outstanding lending team in Ocean City and we are thrilled to support them with a full service branch. As always, we remain dedicated to providing superior customer service, enhancing shareholder value and supporting our communities and career development for our valued employees."
Balance Sheet Review
Total assets were $1.486 billion at March 31, 2019, a $2.7 million, or less than 1%, increase when compared to $1.483 billion at the end of 2018. The increase in total assets included increases in gross loans of $16.4 million, partially offset by decreases in interest-bearing deposits with other banks of $11.0 million and investment securities (including restricted securities) of $4.9 million which were used to fund loan growth for the quarter.
Total deposits increased $24.9 million, or 2.1%, when compared to December 31, 2018. The increase in total deposits primarily consisted of increases in noninterest-bearing deposits of $14.7 million, interest bearing checking deposits of $7.1 million, and savings and money market accounts of $3.3 million. Total stockholders' equity increased $3.9 million, or 2.1%, when compared to the end of 2018.
At March 31, 2019, the ratio of total equity to total assets was 12.59% and the ratio of total tangible equity to total tangible assets was 11.39%.
Total assets at March 31, 2019 increased $64.2 million, or 4.5%, when compared to total assets at March 31, 2018. Total assets year over year increased primarily as a result of an increase in deposits. Growth in loans of $91.8 million was funded primarily by the increase in deposits as well as a decline in investment securities available for sale of $33.1 million.
Total deposits at March 31, 2019 increased $60.2 million, or 5.1%, when compared to March 31, 2018. The increase in total deposits included core deposit growth within checking accounts of $24.8 million, or 11.2%, and noninterest-bearing deposits of $21.3 million or 6.6%. In addition, $22.1 million in brokered deposits were acquired to keep pace with loan demand during 2018.
Review of Quarterly Financial Results
Net interest income was $12.4 million for the first quarter of 2019, compared to $12.7 million for the fourth quarter of 2018 and $12.3 million for the first quarter of 2018. Net interest income when compared to the fourth quarter of 2018 was lower by $332 thousand primarily due to a decrease in taxable interest on investment securities of $341 thousand and an increase in interest expense on deposits of $370 thousand , partially offset by a decrease in interest expense on short-term borrowings and an increase in interest and fees on loans despite two fewer earning days for the first quarter of 2019. The Company's net interest margin improved by 3 basis points to 3.61% over the fourth quarter of 2018. The increase in net interest income when compared to the first quarter of 2018 was primarily the result of significant loan growth, with average loans increasing $95.7 million or 8.7%. The Company's net interest margin when compared to the first quarter of 2018 decreased 22 basis points from 3.83%, due to higher rates paid on interest-bearing deposits as well as an increase in the cost of short-term borrowings of 100bps and higher cost of long-term borrowings incurred since the first quarter of 2018. Partially countering the increase in the cost of interest- bearing liabilities, total earning assets increased 21bps, highlighted by an increase in the yield on loans of 13bps.
The provision for credit losses was $100 thousand for the three months ended March 31, 2019. The comparable amounts were $460 thousand and $489 thousand for the three months ended December 31, 2018 and March 31, 2018, respectively. The provision for credit losses decreased in the first quarter of 2019 over the fourth quarter of 2018 due to the absence of a large charge-off which occurred late in 2018 reducing net charge-offs by $420 thousand. In addition, decreases in both total nonperforming assets of $1.6 million and troubled debt restructurings ("TDRs") of $835 thousand improved overall credit quality. The lower level of provision for credit losses when comparing the first quarter of 2019 to the first quarter of 2018 was primarily due to recoveries of $185 thousand, which resulted in a reduction to net charge-offs of $327 thousand. The ratio of annualized net charge-offs to average loans was 0.01% for the first quarter of 2019, 0.15% for the fourth quarter of 2018 and 0.13% for the first quarter of 2018. The ratio of the allowance for credit losses to period-end loans at March 31, 2019 was 0.86%, lower than the 0.87% and 0.89% at December 31, 2018 and March 31, 2018, respectively.
Nonperforming assets excluding accruing TDRs were $16.4 million at March 31, 2019, $18.0 million at December 31, 2018 and $8.6 million at March 31, 2018. Nonperforming assets including accruing TDRs at March 31, 2019 were $24.2 million, compared to $26.7 million at December 31, 2018 and $18.4 million at March 31, 2018. The decrease in nonperforming assets at March 31, 2019 compared to December 31, 2018 was due to decreases in nonaccrual loans of $1.3 million, other real estate owned ("OREO") of $243 thousand and accruing TDRs of $835 thousand. When compared to March 31, 2018, the increase in nonperforming assets was due to a large nonaccrual loan added late in the fourth quarter of 2018, in which the Company does not anticipate any further losses. At March 31, 2019, the ratio of nonaccrual loans to total assets was 1.03%, compared to 1.12% and 0.49% at December 31, 2018 and March 31, 2018, respectively. In addition, the ratio of accruing TDRs to total assets at March 31, 2019 was 0.53%, improving from 0.58% and 0.68% at December 31, 2018 and March 31, 2018.
Total noninterest income from continuing operations for the first quarter of 2019 increased $76 thousand when compared to the fourth quarter of 2018 and increased $48 thousand when compared to the first quarter of 2018. The increase from the fourth quarter of 2018 was the result of additional fees on bank service charges included in other noninterest income, partially offset by a decrease in service charges on deposit accounts. The increase from the first quarter of 2018 was due to increases in service charges on deposit accounts and additional fees on bank service charges included in other noninterest income.
Total noninterest expense from continuing operations for the first quarter of 2019 increased $127 thousand when compared to the fourth quarter of 2018 and decreased $109 thousand when compared to the first quarter of 2018. The increase in noninterest expense compared to the fourth quarter of 2018 was primarily due to higher costs associated with employee benefits of $457 thousand, which included higher insurance premiums for group insurance and federal unemployment insurance which is usually paid in the first two quarters of the year. The decrease in noninterest expenses from the first quarter of 2018 was primarily due to lower salaries and wages partially due to lower bonuses and stock incentive payouts, almost entirely offset by increases in OREO expenses of $279 thousand and legal and professional fees of $153 thousand.
Shore Bancshares Information
Shore Bancshares 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 Shore United Bank. Shore Bancshares engages in trust and wealth management services through Wye Financial & Trust, a division of Shore United Bank. Additional information is available at www.shorebancshares.com.
Forward-Looking Statements
The 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. | ||||||
Financial Highlights | ||||||
(Dollars in thousands, except per share data) | ||||||
As of or for the Three Months Ended | ||||||
March 31, | ||||||
2019 | 2018 | Change | ||||
PROFITABILITY FOR THE PERIOD | ||||||
Net interest income | $ 12,394 | $ 12,329 | 0.5 | % | ||
Provision for credit losses | 100 | 489 | (79.6) | |||
Noninterest income | 2,188 | 2,140 | 2.2 | |||
Noninterest expense | 9,343 | 9,452 | (1.2) | |||
Income from continuing operations before income taxes | 5,139 | 4,528 | 13.5 | |||
Income tax expense | 1,311 | 1,066 | 23.0 | |||
Income from continuing operations | $ 3,828 | $ 3,462 | 10.6 | |||
(Loss) Income from discontinued operations before income taxes | (99) | 779 | (112.7) | |||
Income tax expense (benefit) | (25) | 183 | (113.7) | |||
(Loss) Income from discontinued operations | (74) | 596 | (112.4) | |||
Net income | $ 3,754 | $ 4,058 | (7.5) | |||
From Continuing Operations: | ||||||
Return on average assets | 1.06 | % | 1.01 | % | 5 | bp |
Return on average equity | 8.39 | 8.51 | (12) | |||
Return on average tangible equity (1) | 9.72 | 10.83 | (111) | |||
Net interest margin | 3.61 | 3.83 | (22) | |||
Efficiency ratio - GAAP | 64.07 | 65.33 | (126) | |||
Efficiency ratio - Non-GAAP (1) | 62.81 | 64.52 | (171) | |||
PER SHARE DATA | ||||||
Basic net income per common share | ||||||
Income from continuing operations | $ 0.30 | $ 0.27 | 11.1 | % | ||
(Loss) Income from discontinued operations | (0.01) | 0.05 | (120.0) | |||
Net income | $ 0.29 | $ 0.32 | (9.4) | |||
Diluted net income per common share | ||||||
Income from continuing operations | $ 0.30 | $ 0.27 | 11.1 | |||
(Loss) Income from discontinued operations | (0.01) | 0.05 | (120.0) | |||
Net income | $ 0.29 | $ 0.32 | (9.4) | |||
Dividends paid per common share | 0.10 | 0.07 | 42.9 | |||
Book value per common share at period end | 14.64 | 12.95 | 13.1 | |||
Tangible book value per common share at period end (1) | 13.06 | 10.42 | 25.3 | |||
Market value at period end | 14.91 | 18.86 | (20.9) | |||
Market range: | ||||||
High | 16.11 | 19.80 | (18.6) | |||
Low | 14.00 | 16.28 | (14.0) | |||
AVERAGE BALANCE SHEET DATA | ||||||
Loans | $ 1,201,913 | $ 1,106,213 | 8.7 | % | ||
Investment securities | 165,009 | 197,285 | (16.4) | |||
Earning assets | 1,394,728 | 1,313,249 | 6.2 | |||
Assets | 1,460,291 | 1,396,001 | 4.6 | |||
Deposits | 1,215,702 | 1,168,613 | 4.0 | |||
Stockholders' equity | 184,972 | 165,070 | 12.1 | |||
CREDIT QUALITY DATA | ||||||
Net charge-offs | $ 25 | $ 352 | (92.9) | % | ||
Nonaccrual loans | $ 15,360 | $ 7,009 | 119.1 | |||
Loans 90 days past due and still accruing | 47 | 61 | (23.0) | |||
Other real estate owned | 979 | 1,569 | (37.6) | |||
Total nonperforming assets | 16,386 | 8,639 | 89.7 | |||
Accruing troubled debt restructurings (TDRs) | 7,828 | 9,726 | (19.5) | |||
Total nonperforming assets and accruing TDRs | $ 24,214 | $ 18,365 | 31.8 | |||
CAPITAL AND CREDIT QUALITY RATIOS | ||||||
Period-end equity to assets | 12.59 | % | 11.60 | % | 99 | bp |
Period-end tangible equity to tangible assets (1) | 11.39 | 9.55 | 184 | |||
Annualized net charge-offs to average loans | 0.01 | 0.13 | (12) | |||
Allowance for credit losses as a percent of: | ||||||
Period-end loans | 0.86 | 0.89 | (3) | |||
Nonaccrual loans | 67.83 | 141.50 | (7,367) | |||
Nonperforming assets | 63.58 | 114.80 | (5,122) | |||
Accruing TDRs | 133.09 | 101.97 | 3,112 | |||
Nonperforming assets and accruing TDRs | 43.02 | 54.00 | (1,098) | |||
As a percent of total loans: | ||||||
Nonaccrual loans | 1.27 | 0.63 | 64 | |||
Accruing TDRs | 0.65 | 0.87 | (22) | |||
Nonaccrual loans and accruing TDRs | 1.91 | 1.50 | 41 | |||
As a percent of total loans+other real estate owned: | ||||||
Nonperforming assets | 1.35 | 0.77 | 58 | |||
Nonperforming assets and accruing TDRs | 2.00 | 1.64 | 36 | |||
As a percent of total assets: | ||||||
Nonaccrual loans | 1.03 | 0.49 | 54 | |||
Nonperforming assets | 1.10 | 0.61 | 49 | |||
Accruing TDRs | 0.53 | 0.68 | (15) | |||
Nonperforming assets and accruing TDRs | 1.63 | 1.29 | 34 | |||
(1) See the reconciliation table on page 11 of 11. | ||||||
Shore Bancshares, Inc. | ||||||||||
Consolidated Balance Sheets | ||||||||||
(In thousands, except per share data) | ||||||||||
March 31, 2019 | March 31, 2019 | |||||||||
March 31, | December 31, | March 31, | compared to | compared to | ||||||
2019 | 2018 | 2018 | December 31, 2018 | March 31, 2018 | ||||||
ASSETS | ||||||||||
Cash and due from banks | $ 18,915 | $ 16,294 | $ 12,752 | 16.1 | % | 48.3 | % | |||
Interest-bearing deposits with other banks | 39,904 | 50,931 | 29,243 | (21.7) | 36.5 | |||||
Cash and cash equivalents | 58,819 | 67,225 | 41,995 | (12.5) | 40.1 | |||||
Investment securities available for sale (at fair value) | 150,814 | 154,432 | 183,259 | (2.3) | (17.7) | |||||
Investment securities held to maturity | 5,899 | 6,043 | 6,162 | (2.4) | (4.3) | |||||
Equity securities, at fair value | 1,299 | 1,269 | 651 | 2.4 | 99.5 | |||||
Restricted securities | 5,292 | 6,476 | 6,099 | (18.3) | (13.2) | |||||
Loans | 1,211,716 | 1,195,355 | 1,119,937 | 1.4 | 8.2 | |||||
Less: allowance for credit losses | (10,418) | (10,343) | (9,918) | 0.7 | (5.0) | |||||
Loans, net | 1,201,298 | 1,185,012 | 1,110,019 | 1.4 | 8.2 | |||||
Premises and equipment, net | 22,632 | 22,711 | 22,773 | (0.3) | (0.6) | |||||
Goodwill | 17,518 | 17,518 | 17,518 | - | - | |||||
Other intangible assets, net | 2,696 | 2,857 | 4,608 | (5.6) | (41.5) | |||||
Other real estate owned, net | 979 | 1,222 | 1,569 | (19.9) | (37.6) | |||||
Right of use assets, net | 3,767 | - | - | - | - | |||||
Other assets | 14,772 | 17,678 | 16,269 | (16.4) | (9.2) | |||||
Assets of discontinued operations | 14 | 633 | 10,684 | (97.8) | (99.9) | |||||
Total assets | $ 1,485,799 | $ 1,483,076 | $ 1,421,606 | 0.2 | 4.5 | |||||
LIABILITIES | ||||||||||
Noninterest-bearing deposits | $ 345,151 | $ 330,466 | $ 323,849 | 4.4 | 6.6 | |||||
Interest-bearing deposits | 892,118 | 881,875 | 853,213 | 1.2 | 4.6 | |||||
Total deposits | 1,237,269 | 1,212,341 | 1,177,062 | 2.1 | 5.1 | |||||
Short-term borrowings | 30,724 | 60,812 | 72,993 | (49.5) | (57.9) | |||||
Long-term borrowings | 15,000 | 15,000 | - | - | - | |||||
Lease liabilities | 3,767 | - | - | - | - | |||||
Accrued expenses and other liabilities | 9,146 | 8,415 | 5,834 | 8.7 | 56.8 | |||||
Liabilities of discontinued operations | 2,811 | 3,323 | 740 | (15.4) | 279.9 | |||||
Total liabilities | 1,298,717 | 1,299,891 | 1,256,629 | (0.1) | 3.3 | |||||
Commitments and contingencies | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Common stock, par value $0.01; authorized | ||||||||||
35,000,000 shares | 128 | 127 | 127 | 0.8 | 0.8 | |||||
Additional paid in capital | 65,408 | 65,434 | 65,399 | - | - | |||||
Retained earnings | 123,050 | 120,574 | 102,829 | 2.1 | 19.7 | |||||
Accumulated other comprehensive (loss) | (1,504) | (2,950) | (3,378) | 49.0 | 55.5 | |||||
Total stockholders' equity | 187,082 | 183,185 | 164,977 | 2.1 | 13.4 | |||||
Total liabilities and stockholders' equity | $ 1,485,799 | $ 1,483,076 | $ 1,421,606 | 0.2 | 4.5 | |||||
Period-end common shares outstanding | 12,780 | 12,749 | 12,736 | 0.2 | 0.3 | |||||
Book value per common share | $ 14.64 | $ 14.37 | $ 12.95 | 1.9 | 13.1 | |||||
Shore Bancshares, Inc. | |||||
Consolidated Statements of Income | |||||
(In thousands, except per share data) | |||||
For the Three Months Ended | |||||
March 31, | |||||
2019 | 2018 | % Change | |||
INTEREST INCOME | |||||
Interest and fees on loans | $ 13,499 | $ 12,044 | 12.1 | % | |
Interest on investment securities: | |||||
Taxable | 998 | 1,021 | (2.3) | ||
Interest on deposits with other banks | 163 | 38 | 328.9 | ||
Total interest income | 14,660 | 13,103 | 11.9 | ||
INTEREST EXPENSE | |||||
Interest on deposits | 1,947 | 548 | 255.3 | ||
Interest on short-term borrowings | 213 | 226 | (5.8) | ||
Interest on long-term borrowings | 106 | - | - | ||
Total interest expense | 2,266 | 774 | 192.8 | ||
NET INTEREST INCOME | 12,394 | 12,329 | 0.5 | ||
Provision for credit losses | 100 | 489 | (79.6) | ||
NET INTEREST INCOME AFTER PROVISION | |||||
FOR CREDIT LOSSES | 12,294 | 11,840 | 3.8 | ||
NONINTEREST INCOME | |||||
Service charges on deposit accounts | 934 | 905 | 3.2 | ||
Trust and investment fee income | 372 | 400 | (7.0) | ||
Other noninterest income | 882 | 835 | 5.6 | ||
Total noninterest income | 2,188 | 2,140 | 2.2 | ||
NONINTEREST EXPENSE | |||||
Salaries and wages | 3,766 | 4,226 | (10.9) | ||
Employee benefits | 1,254 | 1,176 | 6.6 | ||
Occupancy expense | 691 | 677 | 2.1 | ||
Furniture and equipment expense | 263 | 255 | 3.1 | ||
Data processing | 910 | 868 | 4.8 | ||
Directors' fees | 86 | 114 | (24.6) | ||
Amortization of intangible assets | 162 | 99 | 63.6 | ||
FDIC insurance premium expense | 205 | 205 | - | ||
Other real estate owned expenses, net | 233 | (46) | 606.5 | ||
Legal and professional fees | 601 | 448 | 34.2 | ||
Other noninterest expenses | 1,172 | 1,430 | (18.0) | ||
Total noninterest expense | 9,343 | 9,452 | (1.2) | ||
Income from continuing operations before income taxes | 5,139 | 4,528 | 13.5 | ||
Income tax expense | 1,311 | 1,066 | 23.0 | ||
Income from continuing operations | 3,828 | 3,462 | 10.6 | ||
(Loss) income from discontinued operations before income taxes | (99) | 779 | (112.7) | ||
Income tax (benefit) expense | (25) | 183 | (113.7) | ||
(Loss) Income from discontinued operations | (74) | 596 | (112.4) | ||
NET INCOME | $ 3,754 | $ 4,058 | (7.5) | ||
Weighted average shares outstanding - basic | 12,769 | 12,715 | 0.4 | ||
Weighted average shares outstanding - diluted | 12,773 | 12,731 | 0.3 | ||
Basic net income per common share | |||||
Income from continuing operations | $ 0.30 | $ 0.27 | 11.1 | ||
(Loss) Income from discontinued operations | (0.01) | 0.05 | (120.0) | ||
Net income | $ 0.29 | $ 0.32 | (9.4) | ||
Diluted net income per common share | |||||
Income from continuing operations | $ 0.30 | $ 0.27 | 11.1 | ||
(Loss) Income from discontinued operations | (0.01) | 0.05 | (120.0) | ||
Net income | $ 0.29 | $ 0.32 | (9.4) | ||
Dividends paid per common share | $ 0.10 | $ 0.07 | 42.9 | ||
Shore Bancshares, Inc. | ||||||||||||||||||
Consolidated Average Balance Sheets | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||
March 31, | ||||||||||||||||||
2019 | 2018 | |||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||
balance | rate | balance | rate | |||||||||||||||
Earning assets | ||||||||||||||||||
Loans (1), (2), (3) | $ 1,201,913 | 4.57 | % | $ 1,106,213 | 4.44 | % | ||||||||||||
Investment securities | ||||||||||||||||||
Taxable | 165,009 | 2.45 | 197,285 | 2.07 | ||||||||||||||
Interest-bearing deposits | 27,806 | 2.38 | 9,751 | 1.60 | ||||||||||||||
Total earning assets | 1,394,728 | 4.27 | % | 1,313,249 | 4.06 | % | ||||||||||||
Cash and due from banks | 17,196 | 16,384 | ||||||||||||||||
Other assets | 58,756 | 76,336 | ||||||||||||||||
Allowance for credit losses | (10,389) | (9,968) | ||||||||||||||||
Total assets | $ 1,460,291 | $ 1,396,001 | ||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||
Demand deposits | $ 239,794 | 0.61 | % | $ 216,808 | 0.23 | % | ||||||||||||
Money market and savings deposits | 383,738 | 0.85 | 380,890 | 0.13 | ||||||||||||||
Brokered deposits | 22,080 | 2.37 | - | - | ||||||||||||||
Certificates of deposit $100,000 or more | 98,535 | 1.24 | 101,929 | 0.50 | ||||||||||||||
Other time deposits | 140,523 | 1.02 | 152,321 | 0.48 | ||||||||||||||
Interest-bearing deposits | 884,670 | 0.89 | 851,948 | 0.26 | ||||||||||||||
Short-term borrowings | 32,984 | 2.62 | 56,586 | 1.62 | ||||||||||||||
Long-term borrowings | 15,000 | 2.87 | - | - | ||||||||||||||
Total interest-bearing liabilities | 932,654 | 0.99 | % | 908,534 | 0.35 | % | ||||||||||||
Noninterest-bearing deposits | 331,032 | 316,665 | ||||||||||||||||
Accrued expenses and other liabilities | 11,633 | 5,732 | ||||||||||||||||
Stockholders' equity | 184,972 | 165,070 | ||||||||||||||||
Total liabilities and stockholders' equity | $ 1,460,291 | $ 1,396,001 | ||||||||||||||||
Net interest spread | 3.28 | % | 3.71 | % | ||||||||||||||
Net interest margin | 3.61 | % | 3.83 | % | ||||||||||||||
(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, | ||||||||||||||||||
exclusive of the alternative minimum tax rate and nondeductible interest expense. | ||||||||||||||||||
(2) Average loan balances include nonaccrual loans. | ||||||||||||||||||
(3) Interest income on loans includes amortized loan fees, net of costs and accretion of discounts on acquired loans, | ||||||||||||||||||
which are included in the yield calcualtions. | ||||||||||||||||||
Shore Bancshares, Inc. | ||||||||||||||
Financial Highlights By Quarter | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | Q1 2019 | Q1 2019 | ||||||||
2019 | 2018 | 2018 | 2018 | 2018 | compared to | compared to | ||||||||
Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2018 | Q1 2018 | ||||||||
PROFITABILITY FOR THE PERIOD | ||||||||||||||
Taxable-equivalent net interest income | $ 12,428 | $ 12,756 | $ 12,975 | $ 12,661 | $ 12,357 | (2.6) | % | 0.6 | % | |||||
Less: Taxable-equivalent adjustment | 34 | 30 | 28 | 28 | 28 | 13.3 | 21.4 | |||||||
Net interest income | 12,394 | 12,726 | 12,947 | 12,633 | 12,329 | (2.6) | 0.5 | |||||||
Provision for credit losses | 100 | 460 | 307 | 418 | 489 | (78.3) | (79.6) | |||||||
Noninterest income | 2,188 | 2,112 | 2,465 | 2,296 | 2,140 | 3.6 | 2.2 | |||||||
Noninterest expense | 9,343 | 9,216 | 9,310 | 8,853 | 9,452 | 1.4 | (1.2) | |||||||
Income from continuing operations before income taxes | 5,139 | 5,162 | 5,795 | 5,658 | 4,528 | (0.4) | 13.5 | |||||||
Income tax expense | 1,311 | 1,309 | 1,539 | 1,466 | 1,066 | 0.2 | 23.0 | |||||||
Income from continuing operations | 3,828 | 3,853 | 4,256 | 4,192 | 3,462 | (0.6) | 10.6 | |||||||
(Loss) Income from discontinued operations before income taxes | (99) | 104 | 269 | 269 | 779 | (195.2) | (112.7) | |||||||
Gain on sale of insurance agency | - | 12,736 | - | - | - | (100.0) | - | |||||||
Income tax expense (benefit) | (25) | 4,599 | 71 | 70 | 183 | (100.5) | (113.7) | |||||||
(Loss) Income from discontinued operations | (74) | 8,241 | 198 | 199 | 596 | (100.9) | (112.4) | |||||||
Net income | $ 3,754 | $ 12,094 | $ 4,454 | $ 4,391 | $ 4,058 | (69.0) | (7.5) | |||||||
From Continuing Operations: | ||||||||||||||
Return on average assets | 1.06 | % | 1.04 | % | 1.16 | % | 1.18 | % | 1.01 | % | 2 | bp | 5 | bp |
Return on average equity | 8.39 | 8.83 | 9.92 | 10.10 | 8.51 | (44) | (12) | |||||||
Return on average tangible equity (1) | 9.72 | 11.34 | 12.77 | 13.02 | 10.83 | (162) | (111) | |||||||
Net interest margin | 3.61 | 3.58 | 3.76 | 3.79 | 3.83 | 3 | (22) | |||||||
Efficiency ratio - GAAP | 64.07 | 62.11 | 60.41 | 59.30 | 65.33 | 196 | (126) | |||||||
Efficiency ratio - Non-GAAP (1) | 62.81 | 60.18 | 58.55 | 57.67 | 64.52 | 263 | (171) | |||||||
PER SHARE DATA | ||||||||||||||
Basic net income per common share | ||||||||||||||
Income from continuing operations | $ 0.30 | $ 0.30 | $ 0.33 | $ 0.33 | $ 0.27 | - | % | 11.1 | % | |||||
(Loss) Income from discontinued operations | (0.01) | 0.65 | 0.02 | 0.01 | 0.05 | (101.5) | (120.0) | |||||||
Net income | $ 0.29 | $ 0.95 | $ 0.35 | $ 0.34 | $ 0.32 | (69.5) | (9.4) | |||||||
Diluted net income per common share | ||||||||||||||
Income from continuing operations | $ 0.30 | $ 0.30 | $ 0.33 | $ 0.33 | $ 0.27 | - | 11.1 | |||||||
(Loss) Income from discontinued operations | (0.01) | 0.65 | 0.02 | 0.01 | 0.05 | (101.5) | (120.0) | |||||||
Net income | $ 0.29 | $ 0.95 | $ 0.35 | $ 0.34 | $ 0.32 | (69.5) | (9.4) | |||||||
Dividends paid per common share | $ 0.10 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.07 | 11.1 | 42.9 | |||||||
Book value per common share at period end | 14.64 | 14.37 | 13.45 | 13.19 | 12.95 | 1.9 | 13.1 | |||||||
Tangible book value per common share at period end (1) | 13.06 | 12.77 | 10.96 | 10.68 | 10.42 | 2.3 | 25.3 | |||||||
Market value at period end | 14.91 | 14.54 | 17.82 | 19.02 | 18.86 | 2.5 | (20.9) | |||||||
Market range: | ||||||||||||||
High | 16.11 | 18.32 | 19.84 | 20.09 | 19.80 | (12.1) | (18.6) | |||||||
Low | 14.00 | 12.95 | 16.63 | 17.92 | 16.28 | 8.1 | (14.0) | |||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||
Loans | $ 1,201,913 | $ 1,189,504 | $ 1,174,513 | $ 1,141,296 | $ 1,106,213 | 1.0 | % | 8.7 | % | |||||
Investment securities | 165,009 | 177,700 | 178,572 | 186,453 | 197,285 | (7.1) | (16.4) | |||||||
Earning assets | 1,394,728 | 1,385,368 | 1,370,573 | 1,341,050 | 1,313,249 | 0.7 | 6.2 | |||||||
Assets | 1,460,291 | 1,463,839 | 1,457,074 | 1,425,947 | 1,396,001 | (0.2) | 4.6 | |||||||
Deposits | 1,215,702 | 1,197,445 | 1,192,845 | 1,161,790 | 1,168,613 | 1.5 | 4.0 | |||||||
Stockholders' equity | 184,972 | 173,214 | 170,299 | 166,480 | 165,070 | 6.8 | 12.1 | |||||||
CREDIT QUALITY DATA | ||||||||||||||
Net charge-offs | $ 25 | $ 445 | $ 100 | $ 84 | $ 352 | (94.4) | % | (92.9) | % | |||||
Nonaccrual loans | $ 15,360 | $ 16,655 | $ 7,362 | $ 6,757 | $ 7,009 | (7.8) | 119.1 | |||||||
Loans 90 days past due and still accruing | 47 | 139 | 3 | - | 61 | (66.2) | (23.0) | |||||||
Other real estate owned | 979 | 1,222 | 1,518 | 1,569 | 1,569 | (19.9) | (37.6) | |||||||
Total nonperforming assets | $ 16,386 | $ 18,016 | $ 8,883 | $ 8,326 | $ 8,639 | (9.0) | 89.7 | |||||||
Accruing troubled debt restructurings (TDRs) | $ 7,828 | $ 8,663 | $ 8,933 | $ 9,620 | $ 9,726 | (9.6) | (19.5) | |||||||
Total nonperforming assets and accruing TDRs | $ 24,214 | $ 26,679 | $ 17,816 | $ 17,946 | $ 18,365 | (9.2) | 31.8 | |||||||
CAPITAL AND CREDIT QUALITY RATIOS | ||||||||||||||
Period-end equity to assets | 12.59 | % | 12.35 | % | 11.63 | % | 11.58 | % | 11.60 | % | 24 | bp | 99 | bp |
Period-end tangible equity to tangible assets (1) | 11.39 | 11.13 | 9.69 | 9.59 | 9.55 | 26 | 184 | |||||||
Annualized net charge-offs to average loans | 0.01 | 0.15 | 0.03 | 0.03 | 0.13 | (14) | (12) | |||||||
Allowance for credit losses as a percent of: | ||||||||||||||
Period-end loans | 0.86 | 0.87 | 0.87 | 0.87 | 0.89 | (1) | (3) | |||||||
Nonaccrual loans | 67.83 | 62.10 | 140.29 | 149.79 | 141.50 | 573 | (7,367) | |||||||
Nonperforming assets | 63.58 | 57.41 | 116.27 | 121.56 | 114.80 | 617 | (5,122) | |||||||
Accruing TDRs | 133.09 | 119.39 | 115.62 | 105.21 | 101.97 | 1,370 | 3,112 | |||||||
Nonperforming assets and accruing TDRs | 43.02 | 38.77 | 57.97 | 56.40 | 54.00 | 425 | (1,098) | |||||||
As a percent of total loans: | ||||||||||||||
Nonaccrual loans | 1.27 | 1.39 | 0.62 | 0.58 | 0.63 | (12) | 64 | |||||||
Accruing TDRs | 0.65 | 0.72 | 0.76 | 0.83 | 0.87 | (7) | (22) | |||||||
Nonaccrual loans and accruing TDRs | 1.91 | 2.12 | 1.38 | 1.42 | 1.50 | (21) | 41 | |||||||
As a percent of total loans+other real estate owned: | ||||||||||||||
Nonperforming assets | 1.35 | 1.51 | 0.75 | 0.72 | 0.77 | (16) | 58 | |||||||
Nonperforming assets and accruing TDRs | 2.00 | 2.23 | 1.51 | 1.55 | 1.64 | (23) | 36 | |||||||
As a percent of total assets: | ||||||||||||||
Nonaccrual loans | 1.03 | 1.12 | 0.50 | 0.47 | 0.49 | (9) | 54 | |||||||
Nonperforming assets | 1.10 | 1.21 | 0.60 | 0.57 | 0.61 | (11) | 49 | |||||||
Accruing TDRs | 0.53 | 0.58 | 0.61 | 0.66 | 0.68 | (5) | (15) | |||||||
Nonperforming assets and accruing TDRs | 1.63 | 1.80 | 1.21 | 1.24 | 1.29 | (17) | 34 | |||||||
(1) See the reconciliation table on page 11 of 11. |
Shore Bancshares, Inc. | ||||||||||||||
Consolidated Statements of Income By Quarter | ||||||||||||||
(In thousands, except per share data) | ||||||||||||||
Q1 2019 | Q1 2019 | |||||||||||||
compared to | compared to | |||||||||||||
Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2018 | Q1 2018 | ||||||||
INTEREST INCOME | ||||||||||||||
Interest and fees on loans | $ 13,499 | $ 13,452 | $ 13,205 | $ 12,631 | $ 12,044 | 0.3 | % | 12.1 | % | |||||
Interest on investment securities: | ||||||||||||||
Taxable | 998 | 1,339 | 947 | 982 | 1,021 | (25.5) | (2.3) | |||||||
Interest on deposits with other banks | 163 | 103 | 84 | 61 | 38 | 58.3 | 328.9 | |||||||
Total interest income | 14,660 | 14,894 | 14,236 | 13,674 | 13,103 | (1.6) | 11.9 | |||||||
INTEREST EXPENSE | ||||||||||||||
Interest on deposits | 1,947 | 1,577 | 826 | 580 | 548 | 23.5 | 255.3 | |||||||
Interest on short-term borrowings | 213 | 486 | 463 | 461 | 226 | (56.2) | (5.8) | |||||||
Interest on long-term borrowings | 106 | 105 | - | - | - | 1.0 | - | |||||||
Total interest expense | 2,266 | 2,168 | 1,289 | 1,041 | 774 | 4.5 | 192.8 | |||||||
NET INTEREST INCOME | 12,394 | 12,726 | 12,947 | 12,633 | 12,329 | (2.6) | 0.5 | |||||||
Provision for credit losses | 100 | 460 | 307 | 418 | 489 | (78.3) | (79.6) | |||||||
NET INTEREST INCOME AFTER PROVISION | ||||||||||||||
FOR CREDIT LOSSES | 12,294 | 12,266 | 12,640 | 12,215 | 11,840 | 0.2 | 3.8 | |||||||
NONINTEREST INCOME | ||||||||||||||
Service charges on deposit accounts | 934 | 1,045 | 982 | 947 | 905 | (10.6) | 3.2 | |||||||
Trust and investment fee income | 372 | 360 | 383 | 414 | 400 | 3.3 | (7.0) | |||||||
Other noninterest income | 882 | 707 | 1,100 | 935 | 835 | 24.8 | 5.6 | |||||||
Total noninterest income | 2,188 | 2,112 | 2,465 | 2,296 | 2,140 | 3.6 | 2.2 | |||||||
NONINTEREST EXPENSE | ||||||||||||||
Salaries and wages | 3,766 | 3,999 | 4,209 | 4,101 | 4,226 | (5.8) | (10.9) | |||||||
Employee benefits | 1,254 | 797 | 983 | 1,045 | 1,176 | 57.3 | 6.6 | |||||||
Occupancy expense | 691 | 649 | 646 | 650 | 677 | 6.5 | 2.1 | |||||||
Furniture and equipment expense | 263 | 236 | 212 | 247 | 255 | 11.4 | 3.1 | |||||||
Data processing | 910 | 844 | 930 | 689 | 868 | 7.8 | 4.8 | |||||||
Directors' fees | 86 | 145 | 145 | 152 | 114 | (40.7) | (24.6) | |||||||
Amortization of intangible assets | 162 | 269 | 270 | 228 | 99 | (39.8) | 63.6 | |||||||
FDIC insurance premium expense | 205 | 159 | 193 | 214 | 205 | 28.9 | - | |||||||
Other real estate owned expenses, net | 233 | 228 | 166 | 5 | (46) | 2.2 | 606.5 | |||||||
Legal and professional fees | 601 | 603 | 443 | 487 | 448 | (0.3) | 34.2 | |||||||
Other noninterest expenses | 1,172 | 1,287 | 1,113 | 1,035 | 1,430 | (8.9) | (18.0) | |||||||
Total noninterest expense | 9,343 | 9,216 | 9,310 | 8,853 | 9,452 | 1.4 | (1.2) | |||||||
Income from continuing operations before income taxes | 5,139 | 5,162 | 5,795 | 5,658 | 4,528 | (0.4) | 13.5 | |||||||
Income tax expense | 1,311 | 1,309 | 1,539 | 1,466 | 1,066 | 0.2 | 23.0 | |||||||
Income from continuing operations | 3,828 | 3,853 | 4,256 | 4,192 | 3,462 | (0.6) | 10.6 | |||||||
(Loss) Income from discontinued operations before income taxes | (99) | 104 | 269 | 269 | 779 | (195.2) | (112.7) | |||||||
Gain on sale of insurance agency | - | 12,736 | - | - | - | (100.0) | - | |||||||
(Loss) Income tax expense (benefit) | (25) | 4,599 | 71 | 70 | 183 | (100.5) | (113.7) | |||||||
Income from discontinued operations | (74) | 8,241 | 198 | 199 | 596 | (100.9) | (112.4) | |||||||
NET INCOME | $ 3,754 | $ 12,094 | $ 4,454 | $ 4,391 | $ 4,058 | (69.0) | (7.5) | |||||||
Weighted average shares outstanding - basic | 12,769 | 12,749 | 12,748 | 12,744 | 12,715 | 0.2 | 0.4 | |||||||
Weighted average shares outstanding - diluted | 12,773 | 12,766 | 12,761 | 12,757 | 12,731 | 0.1 | 0.3 | |||||||
Basic net income per common share | ||||||||||||||
Income from continuing operations | $ 0.30 | $ 0.30 | $ 0.33 | $ 0.33 | $ 0.27 | - | 11.1 | |||||||
(Loss) Income from discontinued operations | (0.01) | 0.65 | 0.02 | 0.01 | 0.05 | (101.5) | (120.0) | |||||||
Net income | $ 0.29 | $ 0.95 | $ 0.35 | $ 0.34 | $ 0.32 | (69.5) | (9.4) | |||||||
Diluted net income per common share | ||||||||||||||
Income from continuing operations | $ 0.30 | $ 0.30 | $ 0.33 | $ 0.33 | $ 0.27 | - | 11.1 | |||||||
(Loss) Income from discontinued operations | (0.01) | 0.65 | 0.02 | 0.01 | 0.05 | (101.5) | (120.0) | |||||||
Net income | $ 0.29 | $ 0.95 | $ 0.35 | $ 0.34 | $ 0.32 | (69.5) | (9.4) | |||||||
Dividends paid per common share | $ 0.10 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.07 | 11.1 | 42.9 | |||||||
Shore Bancshares, Inc. | ||||||||||||||||||||||||
Consolidated Average Balance Sheets By Quarter | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Average balance | ||||||||||||||||||||||||
Q1 2019 | Q1 2019 | |||||||||||||||||||||||
compared to | compared to | |||||||||||||||||||||||
Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2018 | Q1 2018 | ||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||
balance | rate | balance | rate | balance | rate | balance | rate | balance | rate | |||||||||||||||
Earning assets | ||||||||||||||||||||||||
Loans (1), (2), (3) | 1,201,913 | 4.57 | % | $ 1,189,504 | 4.50 | % | $ 1,174,513 | 4.47 | % | $ 1,141,296 | 4.45 | % | $ 1,106,213 | 4.44 | % | 1.0 | % | 8.7 | % | |||||
Investment securities | ||||||||||||||||||||||||
Taxable | 165,009 | 2.45 | 177,700 | 2.46 | 178,572 | 2.12 | 186,453 | 2.11 | 197,285 | 2.07 | (7.1) | (16.4) | ||||||||||||
Interest-bearing deposits | 27,806 | 2.38 | 18,164 | 2.25 | 17,488 | 1.91 | 13,301 | 1.82 | 9,751 | 1.60 | 53.1 | 185.2 | ||||||||||||
Total earning assets | 1,394,728 | 4.27 | % | 1,385,368 | 4.20 | % | 1,370,573 | 4.13 | % | 1,341,050 | 4.10 | % | 1,313,249 | 4.06 | % | 0.7 | 6.2 | |||||||
Cash and due from banks | 17,196 | 18,204 | 17,790 | 16,905 | 16,384 | (5.5) | 5.0 | |||||||||||||||||
Other assets | 58,756 | 70,858 | 79,065 | 78,185 | 76,336 | (17.1) | (23.0) | |||||||||||||||||
Allowance for credit losses | (10,389) | (10,591) | (10,354) | (10,193) | (9,968) | (1.9) | 4.2 | |||||||||||||||||
Total assets | $ 1,460,291 | $ 1,463,839 | $ 1,457,074 | $ 1,425,947 | $ 1,396,001 | (0.2) | 4.6 | |||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | $ 239,794 | 0.61 | % | $ 218,519 | 0.53 | % | $ 221,905 | 0.32 | % | $ 204,068 | 0.21 | % | $ 216,808 | 0.23 | % | 9.7 | 10.6 | |||||||
Money market and savings deposits | 383,738 | 0.85 | 378,163 | 0.68 | 373,357 | 0.14 | 381,047 | 0.13 | 380,890 | 0.13 | 1.5 | 0.7 | ||||||||||||
Brokered deposits | 22,080 | 2.37 | 22,816 | 2.17 | 25,507 | 2.01 | 10,684 | 1.96 | - | - | (3.2) | - | ||||||||||||
Certificates of deposit $100,000 or more | 98,535 | 1.24 | 97,023 | 0.94 | 97,563 | 0.69 | 96,873 | 0.54 | 101,929 | 0.50 | 1.6 | (3.3) | ||||||||||||
Other time deposits | 140,523 | 1.02 | 141,702 | 0.80 | 145,130 | 0.57 | 146,946 | 0.45 | 152,321 | 0.48 | (0.8) | (7.7) | ||||||||||||
Interest-bearing deposits | 884,670 | 0.89 | 858,223 | 0.73 | 863,462 | 0.36 | 839,618 | 0.27 | 851,948 | 0.26 | 3.1 | 3.8 | ||||||||||||
Short-term borrowings | 32,984 | 2.62 | 72,462 | 2.66 | 87,925 | 2.09 | 91,980 | 2.01 | 56,586 | 1.62 | (54.5) | (41.7) | ||||||||||||
Long-term borrowings | 15,000 | 2.87 | 14,348 | 2.89 | - | - | - | - | - | - | - | - | ||||||||||||
Total interest-bearing liabilities | 932,654 | 0.99 | % | 945,033 | 0.91 | % | 951,387 | 0.52 | % | 931,598 | 0.44 | % | 908,534 | 0.35 | % | (1.3) | 2.7 | |||||||
Noninterest-bearing deposits | 331,032 | 339,222 | 329,383 | 322,172 | 316,665 | (2.4) | 4.5 | |||||||||||||||||
Accrued expenses and other liabilities | 11,633 | 6,370 | 6,005 | 5,697 | 5,732 | 82.6 | 102.9 | |||||||||||||||||
Stockholders' equity | 184,972 | 173,214 | 170,299 | 166,480 | 165,070 | 6.8 | 12.1 | |||||||||||||||||
Total liabilities and stockholders' equity | $ 1,460,291 | $ 1,463,839 | $ 1,457,074 | $ 1,425,947 | $ 1,396,001 | (0.2) | 4.6 | |||||||||||||||||
Net interest spread | 3.28 | % | 3.29 | % | 3.61 | % | 3.66 | % | 3.71 | % | ||||||||||||||
Net interest margin | 3.61 | % | 3.58 | % | 3.76 | % | 3.79 | % | 3.83 | % | ||||||||||||||
(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, | ||||||||||||||||||||||||
exclusive of the alternative minimum tax rate and nondeductible interest expense. | ||||||||||||||||||||||||
(2) Average loan balances include nonaccrual loans. | ||||||||||||||||||||||||
(3) Interest income on loans includes amortized loan fees, net of costs and accretion of discounts on acquired loans, | ||||||||||||||||||||||||
which are included in the yieldcalcualtions. | ||||||||||||||||||||||||
Shore Bancshares, Inc. | ||||||||||
Reconciliation of Generally Accepted Accounting Principles (GAAP) | ||||||||||
and Non-GAAP Measures | ||||||||||
(In thousands, except per share data) | ||||||||||
Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | ||||||
The following reconciles return on average equity and return on | ||||||||||
average tangible equity from continuing operations (Note 1): | ||||||||||
Net income from continuing operations | $ 3,828 | $ 3,853 | $ 4,256 | $ 4,192 | $ 3,462 | |||||
Net income from continuing operations - annualized (A) | $ 15,525 | $ 15,286 | $ 16,885 | $ 16,814 | $ 14,040 | |||||
Net income, excluding net amortization of intangible assets | $ 3,949 | $ 4,054 | $ 4,457 | $ 4,362 | $ 3,536 | |||||
Net income, excluding net amortization of intangible | ||||||||||
assets - annualized (B) | $ 16,015 | $ 16,084 | $ 17,683 | $ 17,496 | $ 14,340 | |||||
Average stockholders' equity (C) | $ 184,972 | $ 173,214 | $ 170,299 | $ 166,480 | $ 165,070 | |||||
Less: Average goodwill and other intangible assets | (20,281) | (31,410) | (31,810) | (32,088) | (32,721) | |||||
Average tangible equity (D) | $ 164,691 | $ 141,804 | $ 138,489 | $ 134,392 | $ 132,349 | |||||
Return on average equity (GAAP) (A)/(C) | 8.39 | % | 8.83 | % | 9.91 | % | 10.10 | % | 8.51 | % |
Return on average tangible equity (Non-GAAP) (B)/(D) | 9.72 | % | 11.34 | % | 12.77 | % | 13.02 | % | 10.83 | % |
The following reconciles GAAP efficiency ratio and non-GAAP | ||||||||||
efficiency ratio from continuing operations (Note 2): | ||||||||||
Noninterest expense (E) | $ 9,343 | $ 9,216 | $ 9,310 | $ 8,853 | $ 9,452 | |||||
Less: Amortization of intangible assets | (162) | (269) | (270) | (228) | (99) | |||||
Adjusted noninterest expense (F) | $ 9,181 | $ 8,947 | $ 9,040 | $ 8,625 | $ 9,353 | |||||
Net interest income (G) | 12,394 | 12,726 | 12,947 | 12,633 | 12,329 | |||||
Add: Taxable-equivalent adjustment | 34 | 30 | 28 | 28 | 28 | |||||
Taxable-equivalent net interest income (H) | $ 12,428 | $ 12,756 | $ 12,975 | $ 12,661 | $ 12,357 | |||||
Noninterest income (I) | $ 2,188 | $ 2,112 | $ 2,465 | $ 2,296 | $ 2,140 | |||||
Adjusted noninterest income (J) | $ 2,188 | $ 2,112 | $ 2,465 | $ 2,296 | $ 2,140 | |||||
Efficiency ratio (GAAP) (E)/(G)+(I) | 64.07 | % | 62.11 | % | 60.41 | % | 59.30 | % | 65.33 | % |
Efficiency ratio (Non-GAAP) (F)/(H)+(J) | 62.81 | % | 60.18 | % | 58.55 | % | 57.67 | % | 64.52 | % |
The following reconciles book value per common share and tangible | ||||||||||
book value per common share (Note 1): | ||||||||||
Stockholders' equity (L) | $ 187,082 | $ 183,185 | $ 171,419 | $ 168,115 | $ 164,977 | |||||
Less: Goodwill and other intangible assets | (20,214) | (20,383) | (31,706) | (31,987) | (32,226) | |||||
Tangible equity (M) | $ 166,868 | $ 162,802 | $ 139,713 | $ 136,128 | $ 132,751 | |||||
Shares outstanding (N) | 12,780 | 12,749 | 12,748 | 12,747 | 12,736 | |||||
Book value per common share (GAAP) (L)/(N) | $ 14.64 | $ 14.37 | $ 13.45 | $ 13.19 | $ 12.95 | |||||
Tangible book value per common share (Non-GAAP) (M)/(N) | $ 13.06 | $ 12.77 | $ 10.96 | $ 10.68 | $ 10.42 | |||||
The following reconciles equity to assets and | ||||||||||
tangible equity to tangible assets (Note 1): | ||||||||||
Stockholders' equity (O) | $ 187,082 | $ 183,185 | $ 171,419 | $ 168,115 | $ 164,977 | |||||
Less: Goodwill and other intangible assets | (20,214) | (20,383) | (31,706) | (31,987) | (32,226) | |||||
Tangible equity (P) | $ 166,868 | $ 162,802 | $ 139,713 | $ 136,128 | $ 132,751 | |||||
Assets (Q) | $ 1,485,799 | $ 1,483,076 | $ 1,473,543 | $ 1,451,714 | $ 1,421,606 | |||||
Less: Goodwill and other intangible assets | (20,214) | (20,383) | (31,706) | (31,987) | (32,226) | |||||
Tangible assets (R) | $ 1,465,585 | $ 1,462,693 | $ 1,441,837 | $ 1,419,727 | $ 1,389,380 | |||||
Period-end equity/assets (GAAP) (O)/(Q) | 12.59 | % | 12.35 | % | 11.63 | % | 11.58 | % | 11.60 | % |
Period-end tangible equity/tangible assets (Non-GAAP) (P)/(R) | 11.39 | % | 11.13 | % | 9.69 | % | 9.59 | % | 9.55 | % |
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. | ||||||||||
View original content:http://www.prnewswire.com/news-releases/shore-bancshares-reports-first-quarter-2019-financial-results-300837676.html
SOURCE Shore Bancshares, Inc.
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ETF-Sparplan
Oskar ist der einfache und intelligente ETF-Sparplan. Er übernimmt die ETF-Auswahl, ist steuersmart, transparent und kostengünstig.