EASTON, Md., Oct. 24, 2019 /PRNewswire/ -- Shore Bancshares,
Inc. (NASDAQ - SHBI) (the "Company") reported net income of
$4.206 million or $0.33 per diluted common share for the third
quarter of 2019, compared to net income of $4.224 million or $0.33 per diluted common share for the second
quarter of 2019, and net income of $4.454
million or $0.35 per diluted
common share for the third quarter of 2018. Net income from
continuing operations for the third quarter of 2019 was
$4.214 million or $0.33 per diluted common share, compared to net
income from continuing operations of $4.228
million or $0.33 per diluted
common share for the second quarter of 2019, and net income from
continuing operations of $4.256
million or $0.33 per diluted
common share for the third quarter of 2018. The Company reported
net income of $12.184 million or
$0.95 per diluted common share for
the first nine months of 2019, compared to net income of
$12.903 million or $1.01 per diluted common share for the first nine
months of 2018. Net income from continuing operations for the first
nine months of 2019 was $12.270
million or $0.96 per diluted
common share, compared to net income from continuing operations of
$11.910 million or $0.93 per diluted common share for the first nine
months of 2018.
When comparing net income from continuing operations for the
third quarter of 2019 to the second quarter of 2019, net interest
income increased $387 thousand,
offset by an increase in noninterest expenses of $399 thousand. When comparing net income
from continuing operations for the third quarter of 2019 to the
third quarter of 2018, the decrease was due to lower net interest
income of $267 thousand and higher
noninterest expenses of $74 thousand,
offset by a lower provision for credit losses of $107 thousand and higher noninterest income of
$64 thousand.
"During the third quarter we experienced significant growth in
deposits resulting in stable earnings for the quarter," said Lloyd
L. "Scott" Beatty, Jr., President and Chief Executive
Officer. "Our loan demand remains strong and the lack of
growth in the third quarter was partially a result of deals being
delayed into the fourth quarter, coupled with some significant
payoffs. During the third quarter, the Company began repurchasing
its shares under the stock repurchase plan approved in April of
2019. As of September 30, 2019, the
Company had repurchased 36,700 shares for approximately
$558 thousand. As we move
forward into the last quarter of the year, we remain focused on
continuing to grow our loan portfolio, repurchasing shares and
increasing our market share within our footprint."
Balance Sheet Review
Total assets were $1.562 billion at September 30, 2019, a $78.6 million, or 5.3%, increase when compared to
$1.483 billion at the end of
2018. The increase was primarily due to total deposits
increasing $113.1 million or
9.3%. The significant growth in deposits funded increases in
loans of $39.7 million, or 3.3%,
interest-bearing deposits with other banks of $29.7 million, or 58.2%, and other assets of
$12.9 million, or 72.9%, which
includes the purchase of approximately $14
million of bank owned life insurance ("BOLI") during the
third quarter of 2019. In addition, the increase in deposits
allowed the Company to decrease its short-term borrowings by
$43.5 million or
71.6%.
Total deposits increased $113.1
million, or 9.3%, when compared to December 31, 2018. The increase in total
deposits primarily consisted of increases in interest-bearing
checking deposits of $48.7 million,
noninterest-bearing deposits of $32.1
million, time deposits greater than $100 thousand of $25.2
million, other time deposits of $8.8
million and savings and money market accounts of
$8.3 million, partially offset by a
decrease in brokered deposits of $10.0
million.
Total stockholders' equity increased $10.8 million, or 5.9%, when compared to the end
of 2018. At September 30, 2019, the
ratio of total equity to total assets was 12.42% and the ratio of
total tangible equity to total tangible assets was 11.29%.
Total assets at September 30, 2019
increased $88.1 million, or 6.0%,
when compared to total assets at September
30, 2018. The primary reason for the increase was due
to total deposits increasing $143.7
million or 12.2%. The significant growth in deposits
funded increases in loans of $54.5
million or 4.6%, interest-bearing deposits with other banks
of $50.7 million or 169.4% and other
assets of $15.4 million or 102.0%,
partially offset by a decrease in investment securities available
for sale of $28.8 million or 17.2%.
In addition, the increase in deposits allowed the Company to
decrease its short-term borrowings by $96.8
million or 84.9%.
Total deposits at September 30,
2019 increased $143.7 million,
or 12.2%, when compared to September
30, 2018. The increase in total deposits primarily
consisted of increases in interest-bearing checking deposits of
$73.6 million, noninterest-bearing
deposits of $30.8 million, time
deposits greater than $100 thousand
of $26.6 million, savings and money
market accounts of $19.2 million, and
other time deposits of $4.8 million
partially offset by a decrease in brokered deposits of $11.5 million. Total stockholders' equity
increased $22.5 million, or 13.2%,
when compared to September 30,
2018.
Review of Quarterly Financial Results
Net interest
income was $12.7 million for the
third quarter of 2019, compared to $12.3
million for the second quarter of 2019 and $12.9 million for the third quarter of 2018. The
primary reasons for the increase in net interest income when
compared to the second quarter of 2019 were loan growth late in the
second quarter allowing a full quarter of earning interest, coupled
with an extra day of earning interest on legacy loans as well as an
increase in interest-bearing deposits with other banks of
$59.8 million. Interest on
deposits increased $84 thousand and
was partially offset by a decrease in interest on short-term
borrowings of $28 thousand when
comparing the third quarter of 2019 to the second quarter of 2019.
Net interest income decreased when compared to the third quarter of
2018 due to an increase in interest expense of $1.2 million, partially offset by an increase in
interest income of $957 thousand. The
improvement in interest income was the result of increases in the
average balances of loans of $60.9
million or 5.2% and interest-bearing deposits with other
banks of $24.1 million or 137.6%. The
Company's net interest margin decreased to 3.52% from 3.54% in the
second quarter of 2019 and decreased from 3.76% in the third
quarter of 2018. The decline in net interest margin from the
second quarter of 2019 was due to a higher average balance in
interest-bearing deposits with other banks, which experienced a
decrease in yield of 34bps. The decline in net interest margin from
the third quarter of 2018 was due to an increase in rates paid on
all interest-bearing liabilities, most significantly
interest-bearing deposits which experienced an increase in the
average balance of $61.7 million and
rates paid on these deposits of 62bps, partially offset by an
increase in the average balance of total earnings assets
$61.7 million and a yield of
9bps.
The provision for credit losses was $200
thousand for the three months ended September 30, 2019. The comparable amounts
were $200 thousand and $307 thousand for the three months ended
June 30, 2019 and September 30, 2018, respectively. The provision
for credit losses remained unchanged from the second quarter of
2019 due to stagnant growth within the loan portfolio. The
decrease in the amount of provision for credit losses from the
third quarter of 2018 was due to lower loan growth in the third
quarter of 2019. Net charge-offs were $67
thousand for the third quarter of 2019, $313 thousand for the second quarter of 2019 and
$100 thousand for the third quarter
of 2018. The ratio of annualized net charge-offs to average
loans was 0.02% for the third quarter of 2019, 0.10% for the second
quarter of 2019 and 0.03% for the third quarter of 2018. The
ratio of the allowance for credit losses to period-end loans was
0.85% at September 30, 2019, slightly
higher than the 0.83% at June 30,
2019 and lower than the 0.87% at September 30, 2018.
At September 30, 2019,
nonperforming assets were $13.3
million, a decrease of $2.2
million, or 14.4%, when compared to June 30, 2019, primarily due to a decrease in
nonaccrual loans of $2.1, or 14.1%.
Other real estate owned decreased $450
thousand, or 85.9% and accruing troubled debt restructurings
("TDRs") decreased $180 thousand, or
2.3% over the same time period. When comparing September 30, 2019 to September 30, 2018, nonperforming assets
increased $4.4 million, or 49.9%, and
accruing TDRs decreased $1.3 million,
or 15.1%. The increase in nonperforming assets was due to a large
nonaccrual loan with an outstanding loan balance of $7.5 million added late in the fourth quarter of
2018, in which the Company does not anticipate any further losses.
The ratio of nonperforming assets and accruing TDRs to total assets
was 1.34%, 1.56% and 1.21% at September 30,
2019, June 30, 2019 and
September 30, 2018,
respectively. In addition, the ratio of accruing TDRs to
total loans at September 30, 2019 was
0.61% at September 30, 2019, compared
to 0.63% at June 30, 2019 and 0.76%
at September 30, 2018.
Total noninterest income from continuing operations for the
third quarter of 2019 decreased $80
thousand when compared to the second quarter of 2019 and
increased $64 thousand when compared
to the third quarter of 2018. The decrease from the second
quarter of 2019 was the result of a decrease in service charges on
deposit accounts and additional fees on bank service charges
included in other noninterest income. The increase from the
third quarter of 2018 was due to higher loan fees and additional
fees on bank service charges.
Total noninterest expense from continuing operations for the
third quarter of 2019 increased $399
thousand when compared to the second quarter of 2019 and
increased $74 thousand when compared
to the third quarter of 2018. The increase in noninterest
expense compared to the second quarter of 2019 was primarily due to
higher employee benefits, which included the funding of a new
supplemental executive retirement plan, a write down on an other
real estate owned property and other loan expenses, partially
offset by lower FDIC insurance premiums for the quarter due to an
FDIC assessment credit for banks under $10
billion. The slight increase in noninterest expenses from
the third quarter of 2018 was primarily due to increases in
employee benefits and other loan and service costs, almost entirely
offset by lower salaries and wages, amortization on intangible
assets and FDIC insurance
premiums.
Review of Nine-Month Financial Results
Net interest
income for the first nine months of 2019 was $37.4 million, a decrease of $542 thousand, or 1.4%, when compared to the
first nine months of 2018. The decrease was the direct result
of an increase in interest expense on deposits, which was partially
offset by an increase in interest and fees on loans. The average
balance on loans increased $78.7
million and the yield on loans increased 10bps when
comparing the periods. This increase in volume and yields on
loans was offset by an increase in the average balance of
interest-bearing deposits of $49.7
million, with an associated increase in rates paid on these
deposits of 66bps. This resulted in a net interest margin of 3.56%
for the first nine months of 2019 compared to 3.79% for the first
nine months of 2018.
The provision for credit losses for the nine months ended
September 30, 2019 and 2018 was
$500 thousand and $1.2 million, respectively, while net charge-offs
were $405 thousand and $667 thousand, respectively. The decrease
in provision for credit losses was the result of improved overall
credit quality exclusive of the one large relationship mentioned
above and lower net charge-offs for the first nine months of 2019
compared to the first nine months of 2018. In addition, loan
growth in the first nine months of 2019 has lagged the first nine
months of 2018. The ratio of annualized net charge-offs to average
loans was 0.04% for the first nine months of 2019 and 0.08% for the
first nine months of 2018.
Total noninterest income from continuing operations for the nine
months ended September 30, 2019
increased $426 thousand, or 6.2%,
when compared to the same period in 2018. The increase in
noninterest income primarily consisted of increases in service
charges on deposit accounts and other fees on bank
services.
Total noninterest expense from continuing operations for the
nine months ended September 30, 2019
increased $98 thousand, or 0.4%, when
compared to the same period in 2018. Despite the insignificant
aggregate increase in total noninterest expenses, salaries and
wages decreased $1.1 million and FDIC
insurance premiums decreased $226
thousand, which were offset by increases in employee
benefits of $417 thousand, data
processing of $314 thousand, legal
and professional fees of $277
thousand and other real estate owned expenses of
$301 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
12,680
|
|
$
|
12,947
|
|
(2.1)
|
%
|
$
|
37,367
|
|
$
|
37,909
|
|
(1.4)
|
%
|
Provision for credit
losses
|
|
|
200
|
|
|
307
|
|
(34.9)
|
|
|
500
|
|
|
1,214
|
|
(58.8)
|
|
Noninterest
income
|
|
|
2,529
|
|
|
2,465
|
|
2.6
|
|
|
7,326
|
|
|
6,901
|
|
6.2
|
|
Noninterest
expense
|
|
|
9,384
|
|
|
9,310
|
|
0.8
|
|
|
27,712
|
|
|
27,615
|
|
0.4
|
|
Income from continuing
operations before income taxes
|
|
|
5,625
|
|
|
5,795
|
|
(2.9)
|
|
|
16,481
|
|
|
15,981
|
|
3.1
|
|
Income tax
expense
|
|
|
1,411
|
|
|
1,539
|
|
(8.3)
|
|
|
4,211
|
|
|
4,071
|
|
3.4
|
|
Income from continuing
operations
|
|
$
|
4,214
|
|
$
|
4,256
|
|
(1.0)
|
|
$
|
12,270
|
|
$
|
11,910
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations before income taxes
|
|
|
(10)
|
|
|
269
|
|
(103.7)
|
|
|
(113)
|
|
|
1,317
|
|
(108.6)
|
|
Income tax expense
(benefit)
|
|
|
(2)
|
|
|
71
|
|
(102.8)
|
|
|
(27)
|
|
|
324
|
|
(108.3)
|
|
(Loss) Income from
discontinued operations
|
|
|
(8)
|
|
|
198
|
|
(104.0)
|
|
|
(86)
|
|
|
993
|
|
(108.7)
|
|
Net income
|
|
$
|
4,206
|
|
$
|
4,454
|
|
(5.6)
|
|
$
|
12,184
|
|
$
|
12,903
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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From Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Return on average
assets
|
|
|
1.10
|
%
|
|
1.16
|
%
|
(6)
|
bp
|
|
1.11
|
%
|
|
1.12
|
%
|
(1)
|
bp
|
Return on average
equity
|
|
|
8.66
|
|
|
9.92
|
|
(126)
|
|
|
8.68
|
|
|
9.52
|
|
(84)
|
|
Return on average
tangible equity (1)
|
|
|
9.90
|
|
|
12.77
|
|
(287)
|
|
|
9.98
|
|
|
12.26
|
|
(228)
|
|
Net interest
margin
|
|
|
3.52
|
|
|
3.76
|
|
(24)
|
|
|
3.56
|
|
|
3.79
|
|
(23)
|
|
Efficiency ratio -
GAAP
|
|
|
61.70
|
|
|
60.41
|
|
129
|
|
|
62.01
|
|
|
61.63
|
|
38
|
|
Efficiency ratio -
Non-GAAP (1)
|
|
|
60.58
|
|
|
58.55
|
|
203
|
|
|
60.81
|
|
|
60.11
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
—
|
%
|
$
|
0.96
|
|
$
|
0.93
|
|
3.2
|
%
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
0.02
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.08
|
|
(112.5)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.35
|
|
(5.7)
|
|
$
|
0.95
|
|
$
|
1.01
|
|
(5.9)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
—
|
|
$
|
0.96
|
|
$
|
0.93
|
|
3.2
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
0.02
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.08
|
|
(112.5)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.35
|
|
(5.7)
|
|
$
|
0.95
|
|
$
|
1.01
|
|
(5.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.08
|
|
25.0
|
|
|
0.30
|
|
|
0.23
|
|
30.4
|
|
Book value per common
share at period end
|
|
|
15.22
|
|
|
13.45
|
|
13.2
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share at period end (1)
|
|
|
13.66
|
|
|
10.96
|
|
24.6
|
|
|
|
|
|
|
|
|
|
Market value at period
end
|
|
|
15.41
|
|
|
17.82
|
|
(13.5)
|
|
|
|
|
|
|
|
|
|
Market
range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
17.00
|
|
|
19.84
|
|
(14.3)
|
|
|
17.00
|
|
|
20.09
|
|
(15.4)
|
|
Low
|
|
|
14.90
|
|
|
16.63
|
|
(10.4)
|
|
|
14.00
|
|
|
16.28
|
|
(14.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,235,374
|
|
$
|
1,174,513
|
|
5.2
|
%
|
$
|
1,219,623
|
|
$
|
1,140,925
|
|
6.9
|
%
|
Investment
securities
|
|
|
155,324
|
|
|
178,572
|
|
(13.0)
|
|
|
160,035
|
|
|
186,936
|
|
(14.4)
|
|
Earning
assets
|
|
|
1,432,252
|
|
|
1,370,573
|
|
4.5
|
|
|
1,408,937
|
|
|
1,341,403
|
|
5.0
|
|
Assets
|
|
|
1,513,790
|
|
|
1,457,074
|
|
3.9
|
|
|
1,480,813
|
|
|
1,426,504
|
|
3.8
|
|
Deposits
|
|
|
1,280,057
|
|
|
1,192,845
|
|
7.3
|
|
|
1,243,472
|
|
|
1,174,505
|
|
5.9
|
|
Stockholders'
equity
|
|
|
193,120
|
|
|
170,299
|
|
13.4
|
|
|
189,094
|
|
|
167,288
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
$
|
67
|
|
$
|
100
|
|
(33.0)
|
%
|
$
|
405
|
|
$
|
667
|
|
(39.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
12,530
|
|
$
|
7,362
|
|
70.2
|
|
|
|
|
|
|
|
|
|
Loans 90 days past due
and still accruing
|
|
|
712
|
|
|
3
|
|
23,633.3
|
|
|
|
|
|
|
|
|
|
Other real estate
owned
|
|
|
74
|
|
|
1,518
|
|
(95.1)
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
13,316
|
|
|
8,883
|
|
49.9
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
|
|
7,588
|
|
|
8,933
|
|
(15.1)
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and accruing TDRs
|
|
$
|
20,904
|
|
$
|
17,816
|
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
12.42
|
%
|
|
11.63
|
%
|
79
|
bp
|
|
|
|
|
|
|
|
|
Period-end tangible
equity to tangible assets (1)
|
|
|
11.29
|
|
|
9.69
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
charge-offs to average loans
|
|
|
0.02
|
|
|
0.03
|
|
(1)
|
|
|
0.04
|
%
|
|
0.08
|
%
|
(4)
|
bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
|
|
0.85
|
|
|
0.87
|
|
(2)
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
83.30
|
|
|
140.29
|
|
(5,699)
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
78.39
|
|
|
116.27
|
|
(3,788)
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
137.56
|
|
|
115.62
|
|
2,194
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
49.93
|
|
|
57.97
|
|
(804)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
1.01
|
|
|
0.62
|
|
39
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
0.61
|
|
|
0.76
|
|
(15)
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
accruing TDRs
|
|
|
1.63
|
|
|
1.38
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
1.08
|
|
|
0.75
|
|
33
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.69
|
|
|
1.51
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.80
|
|
|
0.50
|
|
30
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
0.85
|
|
|
0.60
|
|
25
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
0.49
|
|
|
0.61
|
|
(12)
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.34
|
|
|
1.21
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See the
reconciliation table on page 17 of 17.
|
Shore Bancshares,
Inc.
|
Consolidated Balance
Sheets
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
September 30,
|
|
compared
to
|
|
|
|
2019
|
|
2018
|
|
2018
|
|
December 31, 2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
22,777
|
|
$
|
16,294
|
|
$
|
18,859
|
|
39.8
|
%
|
Interest-bearing
deposits with other banks
|
|
|
80,596
|
|
|
50,931
|
|
|
29,918
|
|
58.2
|
|
Cash and cash
equivalents
|
|
|
103,373
|
|
|
67,225
|
|
|
48,777
|
|
53.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
available for sale (at fair value)
|
|
|
138,911
|
|
|
154,432
|
|
|
167,675
|
|
(10.1)
|
|
Investment securities
held to maturity
|
|
|
9,780
|
|
|
6,043
|
|
|
6,037
|
|
61.8
|
|
Equity securities, at
fair value
|
|
|
1,339
|
|
|
1,269
|
|
|
649
|
|
5.5
|
|
Restricted
securities
|
|
|
4,655
|
|
|
6,476
|
|
|
8,110
|
|
(28.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
1,235,035
|
|
|
1,195,355
|
|
|
1,180,557
|
|
3.3
|
|
Less: allowance for
credit losses
|
|
|
(10,438)
|
|
|
(10,343)
|
|
|
(10,328)
|
|
0.9
|
|
Loans, net
|
|
|
1,224,597
|
|
|
1,185,012
|
|
|
1,170,229
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
|
23,871
|
|
|
22,711
|
|
|
22,866
|
|
5.1
|
|
Goodwill
|
|
|
17,518
|
|
|
17,518
|
|
|
17,518
|
|
—
|
|
Other intangible
assets, net
|
|
|
2,396
|
|
|
2,857
|
|
|
4,088
|
|
(16.1)
|
|
Other real estate
owned, net
|
|
|
74
|
|
|
1,222
|
|
|
1,518
|
|
(93.9)
|
|
Right of use assets,
net
|
|
|
4,908
|
|
|
—
|
|
|
—
|
|
—
|
|
Other
assets
|
|
|
30,257
|
|
|
17,678
|
|
|
15,129
|
|
71.2
|
|
Assets of discontinued
operations
|
|
|
—
|
|
|
633
|
|
|
10,947
|
|
(100.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,561,679
|
|
$
|
1,483,076
|
|
$
|
1,473,543
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
362,557
|
|
$
|
330,466
|
|
$
|
331,766
|
|
9.7
|
|
Interest-bearing
deposits
|
|
|
962,934
|
|
|
881,875
|
|
|
850,070
|
|
9.2
|
|
Total
deposits
|
|
|
1,325,491
|
|
|
1,212,341
|
|
|
1,181,836
|
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
17,263
|
|
|
60,812
|
|
|
114,043
|
|
(71.6)
|
|
Long-term
borrowings
|
|
|
15,000
|
|
|
15,000
|
|
|
—
|
|
—
|
|
Lease
liabilities
|
|
|
4,923
|
|
|
—
|
|
|
—
|
|
—
|
|
Accrued expenses and
other liabilities
|
|
|
5,039
|
|
|
8,415
|
|
|
5,893
|
|
(40.1)
|
|
Liabilities of
discontinued operations
|
|
|
—
|
|
|
3,323
|
|
|
352
|
|
(100.0)
|
|
Total
liabilities
|
|
|
1,367,716
|
|
|
1,299,891
|
|
|
1,302,124
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par
value $0.01; authorized 35,000,000 shares
|
|
|
127
|
|
|
127
|
|
|
127
|
|
—
|
|
Additional paid in
capital
|
|
|
64,879
|
|
|
65,434
|
|
|
65,730
|
|
(0.8)
|
|
Retained
earnings
|
|
|
128,924
|
|
|
120,574
|
|
|
109,628
|
|
6.9
|
|
Accumulated other
comprehensive (loss)
|
|
|
33
|
|
|
(2,950)
|
|
|
(4,066)
|
|
101.1
|
|
Total stockholders'
equity
|
|
|
193,963
|
|
|
183,185
|
|
|
171,419
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,561,679
|
|
$
|
1,483,076
|
|
$
|
1,473,543
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end common
shares outstanding
|
|
|
12,742
|
|
|
12,749
|
|
|
12,748
|
|
(0.1)
|
|
Book value per common
share
|
|
$
|
15.22
|
|
$
|
14.37
|
|
$
|
13.45
|
|
5.9
|
|
Shore Bancshares,
Inc.
|
Consolidated
Statements of Income
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
For the Nine Months
Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
14,100
|
|
$
|
13,205
|
|
6.8
|
%
|
$
|
41,348
|
|
$
|
37,880
|
|
9.2
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
870
|
|
|
947
|
|
(8.1)
|
|
|
2,755
|
|
|
2,950
|
|
(6.6)
|
|
Interest on deposits
with other banks
|
|
|
223
|
|
|
84
|
|
165.5
|
|
|
499
|
|
|
183
|
|
172.7
|
|
Total interest
income
|
|
|
15,193
|
|
|
14,236
|
|
6.7
|
|
|
44,602
|
|
|
41,013
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,288
|
|
|
826
|
|
177.0
|
|
|
6,439
|
|
|
1,954
|
|
229.5
|
|
Interest on short-term
borrowings
|
|
|
117
|
|
|
463
|
|
(74.7)
|
|
|
475
|
|
|
1,150
|
|
(58.7)
|
|
Interest on long-term
borrowings
|
|
|
108
|
|
|
—
|
|
—
|
|
|
321
|
|
|
—
|
|
—
|
|
Total interest
expense
|
|
|
2,513
|
|
|
1,289
|
|
95.0
|
|
|
7,235
|
|
|
3,104
|
|
133.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
12,680
|
|
|
12,947
|
|
(2.1)
|
|
|
37,367
|
|
|
37,909
|
|
(1.4)
|
|
Provision for credit
losses
|
|
|
200
|
|
|
307
|
|
(34.9)
|
|
|
500
|
|
|
1,214
|
|
(58.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
12,480
|
|
|
12,640
|
|
(1.3)
|
|
|
36,867
|
|
|
36,695
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
990
|
|
|
982
|
|
0.8
|
|
|
2,952
|
|
|
2,834
|
|
4.2
|
|
Trust and investment
fee income
|
|
|
383
|
|
|
383
|
|
—
|
|
|
1,140
|
|
|
1,197
|
|
(4.8)
|
|
Other noninterest
income
|
|
|
1,156
|
|
|
1,100
|
|
5.1
|
|
|
3,234
|
|
|
2,870
|
|
12.7
|
|
Total noninterest
income
|
|
|
2,529
|
|
|
2,465
|
|
2.6
|
|
|
7,326
|
|
|
6,901
|
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
3,853
|
|
|
4,209
|
|
(8.5)
|
|
|
11,411
|
|
|
12,536
|
|
(9.0)
|
|
Employee
benefits
|
|
|
1,299
|
|
|
983
|
|
32.1
|
|
|
3,621
|
|
|
3,204
|
|
13.0
|
|
Occupancy
expense
|
|
|
697
|
|
|
646
|
|
7.9
|
|
|
2,056
|
|
|
1,973
|
|
4.2
|
|
Furniture and
equipment expense
|
|
|
263
|
|
|
212
|
|
24.1
|
|
|
821
|
|
|
714
|
|
15.0
|
|
Data
processing
|
|
|
972
|
|
|
930
|
|
4.5
|
|
|
2,801
|
|
|
2,487
|
|
12.6
|
|
Directors'
fees
|
|
|
140
|
|
|
145
|
|
(3.4)
|
|
|
342
|
|
|
411
|
|
(16.8)
|
|
Amortization of
intangible assets
|
|
|
144
|
|
|
270
|
|
(46.7)
|
|
|
461
|
|
|
597
|
|
(22.8)
|
|
FDIC insurance premium
expense
|
|
|
—
|
|
|
193
|
|
(100.0)
|
|
|
386
|
|
|
612
|
|
(36.9)
|
|
Other real estate
owned expenses, net
|
|
|
133
|
|
|
166
|
|
(19.9)
|
|
|
426
|
|
|
125
|
|
240.8
|
|
Legal and professional
fees
|
|
|
495
|
|
|
443
|
|
11.7
|
|
|
1,655
|
|
|
1,378
|
|
20.1
|
|
Other noninterest
expenses
|
|
|
1,388
|
|
|
1,113
|
|
24.7
|
|
|
3,732
|
|
|
3,578
|
|
4.3
|
|
Total noninterest
expense
|
|
|
9,384
|
|
|
9,310
|
|
0.8
|
|
|
27,712
|
|
|
27,615
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
|
5,625
|
|
|
5,795
|
|
(2.9)
|
|
|
16,481
|
|
|
15,981
|
|
3.1
|
|
Income tax
expense
|
|
|
1,411
|
|
|
1,539
|
|
(8.3)
|
|
|
4,211
|
|
|
4,071
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
4,214
|
|
|
4,256
|
|
(1.0)
|
|
|
12,270
|
|
|
11,910
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
discontinued operations before income taxes
|
|
|
(10)
|
|
|
269
|
|
(103.7)
|
|
|
(113)
|
|
|
1,317
|
|
(108.6)
|
|
Income tax (benefit)
expense
|
|
|
(2)
|
|
|
71
|
|
(102.8)
|
|
|
(27)
|
|
|
324
|
|
(108.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations
|
|
|
(8)
|
|
|
198
|
|
(104.0)
|
|
|
(86)
|
|
|
993
|
|
(108.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
4,206
|
|
$
|
4,454
|
|
(5.6)
|
|
$
|
12,184
|
|
$
|
12,903
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
12,764
|
|
|
12,748
|
|
0.1
|
|
|
12,771
|
|
|
12,736
|
|
0.3
|
|
Weighted average
shares outstanding - diluted
|
|
|
12,769
|
|
|
12,761
|
|
0.1
|
|
|
12,776
|
|
|
12,749
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
—
|
|
$
|
0.96
|
|
$
|
0.93
|
|
3.2
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
0.02
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.08
|
|
(112.5)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.35
|
|
(5.7)
|
|
$
|
0.95
|
|
$
|
1.01
|
|
(5.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
-
|
|
$
|
0.96
|
|
$
|
0.93
|
|
3.2
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
0.02
|
|
(100.0)
|
|
|
(0.01)
|
|
|
0.08
|
|
(112.5)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.35
|
|
(5.7)
|
|
$
|
0.95
|
|
$
|
1.01
|
|
(5.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.08
|
|
25.0
|
|
|
0.30
|
|
|
0.23
|
|
30.4
|
|
Shore Bancshares,
Inc.
|
Consolidated Average
Balance Sheets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2),
(3)
|
|
$
|
1,235,374
|
|
4.54
|
%
|
$
|
1,174,513
|
|
4.47
|
%
|
$
|
1,219,623
|
|
4.55
|
%
|
$
|
1,140,925
|
|
4.45
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
155,324
|
|
2.24
|
|
|
178,572
|
|
2.12
|
|
|
160,035
|
|
2.30
|
|
|
186,936
|
|
2.10
|
|
Interest-bearing
deposits
|
|
|
41,554
|
|
2.13
|
|
|
17,488
|
|
1.91
|
|
|
29,279
|
|
2.28
|
|
|
13,542
|
|
1.80
|
|
Total earning
assets
|
|
|
1,432,252
|
|
4.22
|
%
|
|
1,370,573
|
|
4.13
|
%
|
|
1,408,937
|
|
4.24
|
%
|
|
1,341,403
|
|
4.10
|
%
|
Cash and due from
banks
|
|
|
18,127
|
|
|
|
|
17,790
|
|
|
|
|
17,520
|
|
|
|
|
17,031
|
|
|
|
Other
assets
|
|
|
73,823
|
|
|
|
|
79,065
|
|
|
|
|
64,775
|
|
|
|
|
78,243
|
|
|
|
Allowance for credit
losses
|
|
|
(10,412)
|
|
|
|
|
(10,354)
|
|
|
|
|
(10,419)
|
|
|
|
|
(10,173)
|
|
|
|
Total
assets
|
|
$
|
1,513,790
|
|
|
|
$
|
1,457,074
|
|
|
|
$
|
1,480,813
|
|
|
|
$
|
1,426,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
252,386
|
|
0.70
|
%
|
$
|
221,905
|
|
0.32
|
%
|
$
|
242,364
|
|
0.66
|
%
|
$
|
214,317
|
|
0.26
|
%
|
Money market and
savings deposits
|
|
|
389,268
|
|
0.67
|
|
|
373,357
|
|
0.14
|
|
|
386,113
|
|
0.79
|
|
|
378,404
|
|
0.13
|
|
Brokered
deposits
|
|
|
14,568
|
|
2.29
|
|
|
25,507
|
|
2.01
|
|
|
19,144
|
|
2.40
|
|
|
12,157
|
|
2.09
|
|
Certificates of deposit
$100,000 or more
|
|
|
119,200
|
|
1.78
|
|
|
97,563
|
|
0.69
|
|
|
108,504
|
|
1.54
|
|
|
98,772
|
|
0.58
|
|
Other time
deposits
|
|
|
149,708
|
|
1.49
|
|
|
145,130
|
|
0.57
|
|
|
145,381
|
|
1.28
|
|
|
148,107
|
|
0.50
|
|
Interest-bearing
deposits
|
|
|
925,130
|
|
0.98
|
|
|
863,462
|
|
0.36
|
|
|
901,506
|
|
0.96
|
|
|
851,757
|
|
0.30
|
|
Short-term
borrowings
|
|
|
17,729
|
|
2.64
|
|
|
87,925
|
|
2.09
|
|
|
24,034
|
|
2.64
|
|
|
78,945
|
|
1.95
|
|
Long-term
borrowings
|
|
|
15,000
|
|
2.86
|
|
|
—
|
|
—
|
|
|
15,000
|
|
2.86
|
|
|
—
|
|
—
|
|
Total interest-bearing
liabilities
|
|
|
957,859
|
|
1.04
|
%
|
|
951,387
|
|
0.52
|
%
|
|
940,540
|
|
1.03
|
%
|
|
930,702
|
|
0.44
|
%
|
Noninterest-bearing
deposits
|
|
|
354,927
|
|
|
|
|
329,383
|
|
|
|
|
341,966
|
|
|
|
|
322,748
|
|
|
|
Accrued expenses and
other liabilities
|
|
|
7,884
|
|
|
|
|
6,005
|
|
|
|
|
9,213
|
|
|
|
|
5,766
|
|
|
|
Stockholders'
equity
|
|
|
193,120
|
|
|
|
|
170,299
|
|
|
|
|
189,094
|
|
|
|
|
167,288
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,513,790
|
|
|
|
$
|
1,457,074
|
|
|
|
$
|
1,480,813
|
|
|
|
$
|
1,426,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.18
|
%
|
|
|
|
3.61
|
%
|
|
|
|
3.21
|
%
|
|
|
|
3.66
|
%
|
Net interest
margin
|
|
|
|
|
3.52
|
%
|
|
|
|
3.76
|
%
|
|
|
|
3.56
|
%
|
|
|
|
3.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
calculations.
|
Shore Bancshares,
Inc.
|
Financial Highlights
By Quarter
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
2nd
Quarter
|
|
1st
Quarter
|
|
4th
Quarter
|
|
3rd
Quarter
|
|
Q3 2019
|
|
Q3 2019
|
|
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
compared
to
|
|
compared
to
|
|
|
|
Q3
2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2019
|
|
Q3 2018
|
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent net
interest income
|
|
$
|
12,724
|
|
$
|
12,334
|
|
$
|
12,428
|
|
$
|
12,756
|
|
$
|
12,975
|
|
3.2
|
%
|
(1.9)
|
%
|
Less:
Taxable-equivalent adjustment
|
|
|
44
|
|
|
41
|
|
|
34
|
|
|
30
|
|
|
28
|
|
7.3
|
|
57.1
|
|
Net interest
income
|
|
|
12,680
|
|
|
12,293
|
|
|
12,394
|
|
|
12,726
|
|
|
12,947
|
|
3.1
|
|
(2.1)
|
|
Provision for credit
losses
|
|
|
200
|
|
|
200
|
|
|
100
|
|
|
460
|
|
|
307
|
|
—
|
|
(34.9)
|
|
Noninterest
income
|
|
|
2,529
|
|
|
2,609
|
|
|
2,188
|
|
|
2,112
|
|
|
2,465
|
|
(3.1)
|
|
2.6
|
|
Noninterest
expense
|
|
|
9,384
|
|
|
8,985
|
|
|
9,343
|
|
|
9,216
|
|
|
9,310
|
|
4.4
|
|
0.8
|
|
Income from continuing
operations before income taxes
|
|
|
5,625
|
|
|
5,717
|
|
|
5,139
|
|
|
5,162
|
|
|
5,795
|
|
(1.6)
|
|
(2.9)
|
|
Income tax
expense
|
|
|
1,411
|
|
|
1,489
|
|
|
1,311
|
|
|
1,309
|
|
|
1,539
|
|
(5.2)
|
|
(8.3)
|
|
Income from continuing
operations
|
|
|
4,214
|
|
|
4,228
|
|
|
3,828
|
|
|
3,853
|
|
|
4,256
|
|
(0.3)
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations before income taxes
|
|
|
(10)
|
|
|
(4)
|
|
|
(99)
|
|
|
104
|
|
|
269
|
|
(150.0)
|
|
(103.7)
|
|
Gain on sale of
insurance agency
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,736
|
|
|
—
|
|
—
|
|
—
|
|
Income tax expense
(benefit)
|
|
|
(2)
|
|
|
—
|
|
|
(25)
|
|
|
4,599
|
|
|
71
|
|
—
|
|
(102.8)
|
|
(Loss) Income from
discontinued operations
|
|
|
(8)
|
|
|
(4)
|
|
|
(74)
|
|
|
8,241
|
|
|
198
|
|
(100.0)
|
|
(104.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,206
|
|
$
|
4,224
|
|
$
|
3,754
|
|
$
|
12,094
|
|
$
|
4,454
|
|
(0.4)
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.10
|
%
|
|
1.16
|
%
|
|
1.06
|
%
|
|
1.04
|
%
|
|
1.16
|
%
|
(6)
|
bp
|
(6)
|
bp
|
Return on average
equity
|
|
|
8.66
|
|
|
8.97
|
|
|
8.39
|
|
|
8.83
|
|
|
9.92
|
|
(31)
|
|
(126)
|
|
Return on average
tangible equity (1)
|
|
|
9.90
|
|
|
10.31
|
|
|
9.72
|
|
|
11.34
|
|
|
12.77
|
|
(41)
|
|
(287)
|
|
Net interest
margin
|
|
|
3.52
|
|
|
3.54
|
|
|
3.61
|
|
|
3.58
|
|
|
3.76
|
|
(2)
|
|
(24)
|
|
Efficiency ratio -
GAAP
|
|
|
61.70
|
|
|
60.29
|
|
|
64.07
|
|
|
62.11
|
|
|
60.41
|
|
141
|
|
129
|
|
Efficiency ratio -
Non-GAAP (1)
|
|
|
60.58
|
|
|
59.09
|
|
|
62.81
|
|
|
60.18
|
|
|
58.55
|
|
149
|
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
—
|
%
|
—
|
%
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
—
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
—
|
|
(5.7)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
—
|
|
—
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
—
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
—
|
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
|
0.08
|
|
—
|
|
25.0
|
|
Book value per common
share at period end
|
|
|
15.22
|
|
|
14.97
|
|
|
14.64
|
|
|
14.37
|
|
|
13.45
|
|
1.7
|
|
13.2
|
|
Tangible book value
per common share at period end (1)
|
|
|
13.66
|
|
|
13.40
|
|
|
13.06
|
|
|
12.77
|
|
|
10.96
|
|
1.9
|
|
24.6
|
|
Market value at period
end
|
|
|
15.41
|
|
|
16.34
|
|
|
14.91
|
|
|
14.54
|
|
|
17.82
|
|
(5.7)
|
|
(13.5)
|
|
Market
range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
17.00
|
|
|
16.48
|
|
|
16.11
|
|
|
18.32
|
|
|
19.84
|
|
3.2
|
|
(14.3)
|
|
Low
|
|
|
14.90
|
|
|
14.84
|
|
|
14.00
|
|
|
12.95
|
|
|
16.63
|
|
0.4
|
|
(10.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,235,374
|
|
$
|
1,221,215
|
|
$
|
1,201,913
|
|
$
|
1,189,504
|
|
$
|
1,174,513
|
|
1.2
|
%
|
5.2
|
%
|
Investment
securities
|
|
|
155,324
|
|
|
159,878
|
|
|
165,009
|
|
|
177,700
|
|
|
178,572
|
|
(2.8)
|
|
(13.0)
|
|
Earning
assets
|
|
|
1,432,252
|
|
|
1,399,418
|
|
|
1,394,728
|
|
|
1,385,368
|
|
|
1,370,573
|
|
2.3
|
|
4.5
|
|
Assets
|
|
|
1,513,790
|
|
|
1,468,093
|
|
|
1,460,291
|
|
|
1,463,839
|
|
|
1,457,074
|
|
3.1
|
|
3.9
|
|
Deposits
|
|
|
1,280,057
|
|
|
1,233,951
|
|
|
1,215,702
|
|
|
1,197,445
|
|
|
1,192,845
|
|
3.7
|
|
7.3
|
|
Stockholders'
equity
|
|
|
193,120
|
|
|
189,101
|
|
|
184,972
|
|
|
173,214
|
|
|
170,299
|
|
2.1
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
$
|
67
|
|
$
|
313
|
|
$
|
25
|
|
$
|
445
|
|
$
|
100
|
|
(78.6)
|
%
|
(33.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
12,530
|
|
$
|
14,592
|
|
$
|
15,360
|
|
$
|
16,655
|
|
$
|
7,362
|
|
(14.1)
|
|
70.2
|
|
Loans 90 days past due
and still accruing
|
|
|
712
|
|
|
439
|
|
|
47
|
|
|
139
|
|
|
3
|
|
62.2
|
|
23,633.3
|
|
Other real estate
owned
|
|
|
74
|
|
|
524
|
|
|
979
|
|
|
1,222
|
|
|
1,518
|
|
(85.9)
|
|
(95.1)
|
|
Total nonperforming
assets
|
|
$
|
13,316
|
|
$
|
15,555
|
|
$
|
16,386
|
|
$
|
18,016
|
|
$
|
8,883
|
|
(14.4)
|
|
49.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings
(TDRs)
|
|
$
|
7,588
|
|
$
|
7,768
|
|
$
|
7,828
|
|
$
|
8,663
|
|
$
|
8,933
|
|
(2.3)
|
|
(15.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and accruing TDRs
|
|
$
|
20,904
|
|
$
|
23,323
|
|
$
|
24,214
|
|
$
|
26,679
|
|
$
|
17,816
|
|
(10.4)
|
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
12.42
|
%
|
|
12.85
|
%
|
|
12.59
|
%
|
|
12.35
|
%
|
|
11.63
|
%
|
(43)
|
bp
|
79
|
bp
|
Period-end tangible
equity to tangible
assets (1)
|
|
|
11.29
|
|
|
11.66
|
|
|
11.39
|
|
|
11.13
|
|
|
9.69
|
|
(37)
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
charge-offs to average loans
|
|
|
0.02
|
|
|
0.10
|
|
|
0.01
|
|
|
0.15
|
|
|
0.03
|
|
(8)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
loans
|
|
|
0.85
|
|
|
0.83
|
|
|
0.86
|
|
|
0.87
|
|
|
0.87
|
|
2
|
|
(2)
|
|
Nonaccrual
loans
|
|
|
83.30
|
|
|
70.62
|
|
|
67.83
|
|
|
62.10
|
|
|
140.29
|
|
1,268
|
|
(5,699)
|
|
Nonperforming
assets
|
|
|
78.39
|
|
|
66.25
|
|
|
63.58
|
|
|
57.41
|
|
|
116.27
|
|
1,214
|
|
(3,788)
|
|
Accruing
TDRs
|
|
|
137.56
|
|
|
132.66
|
|
|
133.09
|
|
|
119.39
|
|
|
115.62
|
|
490
|
|
2,194
|
|
Nonperforming assets
and accruing TDRs
|
|
|
49.93
|
|
|
44.18
|
|
|
43.02
|
|
|
38.77
|
|
|
57.97
|
|
575
|
|
(804)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
1.01
|
|
|
1.18
|
|
|
1.27
|
|
|
1.39
|
|
|
0.62
|
|
(17)
|
|
39
|
|
Accruing
TDRs
|
|
|
0.61
|
|
|
0.63
|
|
|
0.65
|
|
|
0.72
|
|
|
0.76
|
|
(2)
|
|
(15)
|
|
Nonaccrual loans and
accruing TDRs
|
|
|
1.63
|
|
|
1.80
|
|
|
1.91
|
|
|
2.12
|
|
|
1.38
|
|
(17)
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
1.08
|
|
|
1.25
|
|
|
1.35
|
|
|
1.51
|
|
|
0.75
|
|
(17)
|
|
33
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.69
|
|
|
1.88
|
|
|
2.00
|
|
|
2.23
|
|
|
1.51
|
|
(19)
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.80
|
|
|
0.98
|
|
|
1.03
|
|
|
1.12
|
|
|
0.50
|
|
(18)
|
|
30
|
|
Nonperforming
assets
|
|
|
0.85
|
|
|
1.04
|
|
|
1.10
|
|
|
1.21
|
|
|
0.60
|
|
(19)
|
|
25
|
|
Accruing
TDRs
|
|
|
0.49
|
|
|
0.52
|
|
|
0.53
|
|
|
0.58
|
|
|
0.61
|
|
(3)
|
|
(12)
|
|
Nonperforming assets
and accruing TDRs
|
|
|
1.34
|
|
|
1.56
|
|
|
1.63
|
|
|
1.80
|
|
|
1.21
|
|
(22)
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See the
reconciliation table on page 17 of 17.
|
Shore Bancshares,
Inc.
|
Consolidated
Statements of Income By Quarter
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2019
|
|
Q3 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared
to
|
|
compared
to
|
|
|
|
Q3
2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2019
|
|
Q3 2018
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
14,100
|
|
$
|
13,749
|
|
$
|
13,499
|
|
$
|
13,452
|
|
$
|
13,205
|
|
2.6
|
%
|
6.8
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
870
|
|
|
887
|
|
|
998
|
|
|
1,339
|
|
|
947
|
|
(1.9)
|
|
(8.1)
|
|
Interest on deposits
with other banks
|
|
|
223
|
|
|
113
|
|
|
163
|
|
|
103
|
|
|
84
|
|
97.3
|
|
165.5
|
|
Total interest
income
|
|
|
15,193
|
|
|
14,749
|
|
|
14,660
|
|
|
14,894
|
|
|
14,236
|
|
3.0
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,288
|
|
|
2,204
|
|
|
1,947
|
|
|
1,577
|
|
|
826
|
|
3.8
|
|
177.0
|
|
Interest on short-term
borrowings
|
|
|
117
|
|
|
145
|
|
|
213
|
|
|
486
|
|
|
463
|
|
(19.3)
|
|
(74.7)
|
|
Interest on long-term
borrowings
|
|
|
108
|
|
|
107
|
|
|
106
|
|
|
105
|
|
|
—
|
|
0.9
|
|
—
|
|
Total interest
expense
|
|
|
2,513
|
|
|
2,456
|
|
|
2,266
|
|
|
2,168
|
|
|
1,289
|
|
2.3
|
|
95.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
12,680
|
|
|
12,293
|
|
|
12,394
|
|
|
12,726
|
|
|
12,947
|
|
3.1
|
|
(2.1)
|
|
Provision for credit
losses
|
|
|
200
|
|
|
200
|
|
|
100
|
|
|
460
|
|
|
307
|
|
—
|
|
(34.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
12,480
|
|
|
12,093
|
|
|
12,294
|
|
|
12,266
|
|
|
12,640
|
|
3.2
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
990
|
|
|
1,028
|
|
|
934
|
|
|
1,045
|
|
|
982
|
|
(3.7)
|
|
0.8
|
|
Trust and investment
fee income
|
|
|
383
|
|
|
385
|
|
|
372
|
|
|
360
|
|
|
383
|
|
(0.5)
|
|
—
|
|
Other noninterest
income
|
|
|
1,156
|
|
|
1,196
|
|
|
882
|
|
|
707
|
|
|
1,100
|
|
(3.3)
|
|
5.1
|
|
Total noninterest
income
|
|
|
2,529
|
|
|
2,609
|
|
|
2,188
|
|
|
2,112
|
|
|
2,465
|
|
(3.1)
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
3,853
|
|
|
3,792
|
|
|
3,766
|
|
|
3,999
|
|
|
4,209
|
|
1.6
|
|
(8.5)
|
|
Employee
benefits
|
|
|
1,299
|
|
|
1,068
|
|
|
1,254
|
|
|
797
|
|
|
983
|
|
21.6
|
|
32.1
|
|
Occupancy
expense
|
|
|
697
|
|
|
668
|
|
|
691
|
|
|
649
|
|
|
646
|
|
4.3
|
|
7.9
|
|
Furniture and
equipment expense
|
|
|
263
|
|
|
295
|
|
|
263
|
|
|
236
|
|
|
212
|
|
(10.8)
|
|
24.1
|
|
Data
processing
|
|
|
972
|
|
|
919
|
|
|
910
|
|
|
844
|
|
|
930
|
|
5.8
|
|
4.5
|
|
Directors'
fees
|
|
|
140
|
|
|
116
|
|
|
86
|
|
|
145
|
|
|
145
|
|
20.7
|
|
(3.4)
|
|
Amortization of
intangible assets
|
|
|
144
|
|
|
155
|
|
|
162
|
|
|
269
|
|
|
270
|
|
(7.1)
|
|
(46.7)
|
|
FDIC insurance premium
expense
|
|
|
—
|
|
|
181
|
|
|
205
|
|
|
159
|
|
|
193
|
|
(100.0)
|
|
(100.0)
|
|
Other real estate
owned expenses, net
|
|
|
133
|
|
|
60
|
|
|
233
|
|
|
228
|
|
|
166
|
|
121.7
|
|
(19.9)
|
|
Legal and professional
fees
|
|
|
495
|
|
|
559
|
|
|
601
|
|
|
603
|
|
|
443
|
|
(11.4)
|
|
11.7
|
|
Other noninterest
expenses
|
|
|
1,388
|
|
|
1,172
|
|
|
1,172
|
|
|
1,287
|
|
|
1,113
|
|
18.4
|
|
24.7
|
|
Total noninterest
expense
|
|
|
9,384
|
|
|
8,985
|
|
|
9,343
|
|
|
9,216
|
|
|
9,310
|
|
4.4
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income
taxes
|
|
|
5,625
|
|
|
5,717
|
|
|
5,139
|
|
|
5,162
|
|
|
5,795
|
|
(1.6)
|
|
(2.9)
|
|
Income tax
expense
|
|
|
1,411
|
|
|
1,489
|
|
|
1,311
|
|
|
1,309
|
|
|
1,539
|
|
(5.2)
|
|
(8.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
4,214
|
|
|
4,228
|
|
|
3,828
|
|
|
3,853
|
|
|
4,256
|
|
(0.3)
|
|
(1.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations before income taxes
|
|
|
(10)
|
|
|
(4)
|
|
|
(99)
|
|
|
104
|
|
|
269
|
|
(150.0)
|
|
(103.7)
|
|
Gain on sale of
insurance agency
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,736
|
|
|
—
|
|
—
|
|
—
|
|
(Loss) Income tax
expense (benefit)
|
|
|
(2)
|
|
|
—
|
|
|
(25)
|
|
|
4,599
|
|
|
71
|
|
—
|
|
(102.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
discontinued operations
|
|
|
(8)
|
|
|
(4)
|
|
|
(74)
|
|
|
8,241
|
|
|
198
|
|
(100.0)
|
|
(104.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
4,206
|
|
$
|
4,224
|
|
$
|
3,754
|
|
$
|
12,094
|
|
$
|
4,454
|
|
(0.4)
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
|
12,764
|
|
|
12,779
|
|
|
12,769
|
|
|
12,749
|
|
|
12,748
|
|
(0.1)
|
|
0.1
|
|
Weighted average
shares outstanding - diluted
|
|
|
12,769
|
|
|
12,784
|
|
|
12,773
|
|
|
12,766
|
|
|
12,761
|
|
(0.1)
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
—
|
|
—
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
—
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
—
|
|
(5.7)
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.30
|
|
$
|
0.30
|
|
$
|
0.33
|
|
—
|
|
—
|
|
(Loss) Income from
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
0.65
|
|
|
0.02
|
|
—
|
|
(100.0)
|
|
Net income
|
|
$
|
0.33
|
|
$
|
0.33
|
|
$
|
0.29
|
|
$
|
0.95
|
|
$
|
0.35
|
|
—
|
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.10
|
|
|
0.10
|
|
|
0.10
|
|
|
0.09
|
|
|
0.08
|
|
—
|
|
25.0
|
|
Shore Bancshares,
Inc.
|
Consolidated Average
Balance Sheets By Quarter
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2019
|
|
Q3 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to
|
|
compared to
|
|
|
|
Q3
2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
Q2 2019
|
|
Q3 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)
|
|
|
1,235,374
|
|
4.54
|
%
|
$
|
1,221,215
|
|
4.53
|
%
|
$
|
1,201,913
|
|
4.57
|
%
|
$
|
1,189,504
|
|
4.50
|
%
|
$
|
1,174,513
|
|
4.47
|
%
|
1.2
|
%
|
5.2
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
155,324
|
|
2.24
|
|
|
159,878
|
|
2.22
|
|
|
165,009
|
|
2.45
|
|
|
177,700
|
|
2.46
|
|
|
178,572
|
|
2.12
|
|
(2.8)
|
|
(13.0)
|
|
Interest-bearing
deposits
|
|
|
41,554
|
|
2.13
|
|
|
18,325
|
|
2.47
|
|
|
27,806
|
|
2.38
|
|
|
18,164
|
|
2.25
|
|
|
17,488
|
|
1.91
|
|
126.8
|
|
137.6
|
|
Total earning
assets
|
|
|
1,432,252
|
|
4.22
|
%
|
|
1,399,418
|
|
4.24
|
%
|
|
1,394,728
|
|
4.27
|
%
|
|
1,385,368
|
|
4.20
|
%
|
|
1,370,573
|
|
4.13
|
%
|
2.3
|
|
4.5
|
|
Cash and due from
banks
|
|
|
18,127
|
|
|
|
|
17,225
|
|
|
|
|
17,196
|
|
|
|
|
18,204
|
|
|
|
|
17,790
|
|
|
|
5.2
|
|
1.9
|
|
Other
assets
|
|
|
73,823
|
|
|
|
|
61,906
|
|
|
|
|
58,756
|
|
|
|
|
70,858
|
|
|
|
|
79,065
|
|
|
|
19.3
|
|
(6.6)
|
|
Allowance for credit
losses
|
|
|
(10,412)
|
|
|
|
|
(10,456)
|
|
|
|
|
(10,389)
|
|
|
|
|
(10,591)
|
|
|
|
|
(10,354)
|
|
|
|
(0.4)
|
|
0.6
|
|
Total
assets
|
|
$
|
1,513,790
|
|
|
|
$
|
1,468,093
|
|
|
|
$
|
1,460,291
|
|
|
|
$
|
1,463,839
|
|
|
|
$
|
1,457,074
|
|
|
|
3.1
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
252,386
|
|
0.70
|
%
|
$
|
234,775
|
|
0.65
|
%
|
$
|
239,794
|
|
0.61
|
%
|
$
|
218,519
|
|
0.53
|
%
|
$
|
221,905
|
|
0.32
|
%
|
7.5
|
|
13.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
savings deposits
|
|
|
389,268
|
|
0.67
|
|
|
385,272
|
|
0.84
|
|
|
383,738
|
|
0.85
|
|
|
378,163
|
|
0.68
|
|
|
373,357
|
|
0.14
|
|
1.0
|
|
4.3
|
|
Brokered
deposits
|
|
|
14,568
|
|
2.29
|
|
|
20,866
|
|
2.52
|
|
|
22,080
|
|
2.37
|
|
|
22,816
|
|
2.17
|
|
|
25,507
|
|
2.01
|
|
(30.2)
|
|
(42.9)
|
|
Certificates of deposit
$100,000 or
more
|
|
|
119,200
|
|
1.78
|
|
|
107,549
|
|
1.54
|
|
|
98,535
|
|
1.24
|
|
|
97,023
|
|
0.94
|
|
|
97,563
|
|
0.69
|
|
10.8
|
|
22.2
|
|
Other time
deposits
|
|
|
149,708
|
|
1.49
|
|
|
145,900
|
|
1.31
|
|
|
140,523
|
|
1.02
|
|
|
141,702
|
|
0.80
|
|
|
145,130
|
|
0.57
|
|
2.6
|
|
3.2
|
|
Interest-bearing
deposits
|
|
|
925,130
|
|
0.98
|
|
|
894,362
|
|
0.99
|
|
|
884,670
|
|
0.89
|
|
|
858,223
|
|
0.73
|
|
|
863,462
|
|
0.36
|
|
3.4
|
|
7.1
|
|
Short-term
borrowings
|
|
|
17,729
|
|
2.64
|
|
|
21,557
|
|
2.70
|
|
|
32,984
|
|
2.62
|
|
|
72,462
|
|
2.66
|
|
|
87,925
|
|
2.09
|
|
(17.8)
|
|
(79.8)
|
|
Long-term
borrowings
|
|
|
15,000
|
|
2.86
|
|
|
15,000
|
|
2.86
|
|
|
15,000
|
|
2.87
|
|
|
14,348
|
|
2.89
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total interest-bearing
liabilities
|
|
|
957,859
|
|
1.04
|
%
|
|
930,919
|
|
1.06
|
%
|
|
932,654
|
|
0.99
|
%
|
|
945,033
|
|
0.91
|
%
|
|
951,387
|
|
0.52
|
%
|
2.9
|
|
0.7
|
|
Noninterest-bearing
deposits
|
|
|
354,927
|
|
|
|
|
339,589
|
|
|
|
|
331,032
|
|
|
|
|
339,222
|
|
|
|
|
329,383
|
|
|
|
4.5
|
|
7.8
|
|
Accrued expenses and
other liabilities
|
|
|
7,884
|
|
|
|
|
8,484
|
|
|
|
|
11,633
|
|
|
|
|
6,370
|
|
|
|
|
6,005
|
|
|
|
(7.1)
|
|
31.3
|
|
Stockholders'
equity
|
|
|
193,120
|
|
|
|
|
189,101
|
|
|
|
|
184,972
|
|
|
|
|
173,214
|
|
|
|
|
170,299
|
|
|
|
2.1
|
|
13.4
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,513,790
|
|
|
|
$
|
1,468,093
|
|
|
|
$
|
1,460,291
|
|
|
|
$
|
1,463,839
|
|
|
|
$
|
1,457,074
|
|
|
|
3.1
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.18
|
%
|
|
|
|
3.18
|
%
|
|
|
|
3.28
|
%
|
|
|
|
3.29
|
%
|
|
|
|
3.61
|
%
|
|
|
|
|
Net interest
margin
|
|
|
|
|
3.52
|
%
|
|
|
|
3.54
|
%
|
|
|
|
3.61
|
%
|
|
|
|
3.58
|
%
|
|
|
|
3.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
calculations.
|
Shore Bancshares,
Inc.
|
Reconciliation of
Generally Accepted Accounting Principles (GAAP)
|
and Non-GAAP
Measures
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
|
|
YTD
|
|
|
|
Q3
2019
|
|
Q2 2019
|
|
Q1 2019
|
|
Q4 2018
|
|
Q3 2018
|
|
9/30/2019
|
|
9/30/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles return on average equity and return
on average tangible equity from continuing operations (Note
1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
4,214
|
|
$
|
4,228
|
|
$
|
3,828
|
|
$
|
3,853
|
|
$
|
4,256
|
|
$
|
12,270
|
|
$
|
11,910
|
|
Net income from
continuing operations - annualized (A)
|
|
$
|
16,719
|
|
$
|
16,958
|
|
$
|
15,525
|
|
$
|
15,286
|
|
$
|
16,885
|
|
$
|
16,405
|
|
$
|
15,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets
|
|
$
|
4,321
|
|
$
|
4,344
|
|
$
|
3,949
|
|
$
|
4,054
|
|
$
|
4,457
|
|
$
|
12,614
|
|
$
|
12,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets - annualized (B)
|
|
$
|
17,143
|
|
$
|
17,424
|
|
$
|
16,015
|
|
$
|
16,084
|
|
$
|
17,683
|
|
$
|
16,865
|
|
$
|
16,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity (C)
|
|
$
|
193,120
|
|
$
|
189,101
|
|
$
|
184,972
|
|
$
|
173,214
|
|
$
|
170,299
|
|
$
|
189,094
|
|
$
|
167,288
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(19,991)
|
|
|
(20,138)
|
|
|
(20,281)
|
|
|
(31,410)
|
|
|
(31,810)
|
|
|
(20,136)
|
|
|
(32,203)
|
|
Average tangible
equity (D)
|
|
$
|
173,129
|
|
$
|
168,963
|
|
$
|
164,691
|
|
$
|
141,804
|
|
$
|
138,489
|
|
$
|
168,958
|
|
$
|
135,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP) (A)/(C)
|
|
|
8.66
|
%
|
|
8.97
|
%
|
|
8.39
|
%
|
|
8.83
|
%
|
|
9.91
|
%
|
|
8.68
|
%
|
|
9.52
|
%
|
Return on average
tangible equity (Non-GAAP) (B)/(D)
|
|
|
9.90
|
%
|
|
10.31
|
%
|
|
9.72
|
%
|
|
11.34
|
%
|
|
12.77
|
%
|
|
9.98
|
%
|
|
12.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles GAAP efficiency ratio and non-
GAAP efficiency ratio from continuing operations (Note
2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(E)
|
|
$
|
9,384
|
|
$
|
8,985
|
|
$
|
9,343
|
|
$
|
9,216
|
|
$
|
9,310
|
|
$
|
27,712
|
|
$
|
27,615
|
|
Less:
Amortization of intangible assets
|
|
|
(144)
|
|
|
(155)
|
|
|
(162)
|
|
|
(269)
|
|
|
(270)
|
|
|
(461)
|
|
|
(631)
|
|
Adjusted noninterest
expense (F)
|
|
$
|
9,240
|
|
$
|
8,830
|
|
$
|
9,181
|
|
$
|
8,947
|
|
$
|
9,040
|
|
$
|
27,251
|
|
$
|
26,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(G)
|
|
|
12,680
|
|
|
12,293
|
|
|
12,394
|
|
|
12,726
|
|
|
12,947
|
|
|
37,367
|
|
|
37,909
|
|
Add:
Taxable-equivalent adjustment
|
|
|
44
|
|
|
41
|
|
|
34
|
|
|
30
|
|
|
28
|
|
|
119
|
|
|
84
|
|
Taxable-equivalent
net interest income (H)
|
|
$
|
12,724
|
|
$
|
12,334
|
|
$
|
12,428
|
|
$
|
12,756
|
|
$
|
12,975
|
|
$
|
37,486
|
|
$
|
37,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
(I)
|
|
$
|
2,529
|
|
$
|
2,609
|
|
$
|
2,188
|
|
$
|
2,112
|
|
$
|
2,465
|
|
$
|
7,326
|
|
|
6,901
|
|
Adjusted noninterest
income (J)
|
|
$
|
2,529
|
|
$
|
2,609
|
|
$
|
2,188
|
|
$
|
2,112
|
|
$
|
2,465
|
|
$
|
7,326
|
|
$
|
6,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) (E)/(G)+(I)
|
|
|
61.70
|
%
|
|
60.29
|
%
|
|
64.07
|
%
|
|
62.11
|
%
|
|
60.41
|
%
|
|
62.01
|
%
|
|
61.63
|
%
|
Efficiency ratio
(Non-GAAP) (F)/(H)+(J)
|
|
|
60.58
|
%
|
|
59.09
|
%
|
|
62.81
|
%
|
|
60.18
|
%
|
|
58.55
|
%
|
|
60.81
|
%
|
|
60.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles book value per common share and
tangible book value per common share (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(L)
|
|
$
|
193,963
|
|
$
|
191,307
|
|
$
|
187,082
|
|
$
|
183,185
|
|
$
|
171,419
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(19,914)
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
(20,383)
|
|
|
(31,706)
|
|
|
|
|
|
|
|
Tangible equity
(M)
|
|
$
|
174,049
|
|
$
|
171,249
|
|
$
|
166,868
|
|
$
|
162,802
|
|
$
|
139,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(N)
|
|
|
12,742
|
|
|
12,780
|
|
|
12,780
|
|
|
12,749
|
|
|
12,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP) (L)/(N)
|
|
$
|
15.22
|
|
$
|
14.97
|
|
$
|
14.64
|
|
$
|
14.37
|
|
$
|
13.45
|
|
|
|
|
|
|
|
Tangible book value
per common share (Non-GAAP)
(M)/(N)
|
|
$
|
13.66
|
|
$
|
13.40
|
|
$
|
13.06
|
|
$
|
12.77
|
|
$
|
10.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles equity to assets and tangible equity to tangible assets
(Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(O)
|
|
$
|
193,963
|
|
$
|
191,307
|
|
$
|
187,082
|
|
$
|
183,185
|
|
$
|
171,419
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(19,914)
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
(20,383)
|
|
|
(31,706)
|
|
|
|
|
|
|
|
Tangible equity
(P)
|
|
$
|
174,049
|
|
$
|
171,249
|
|
$
|
166,868
|
|
$
|
162,802
|
|
$
|
139,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Q)
|
|
$
|
1,561,679
|
|
$
|
1,488,562
|
|
$
|
1,485,799
|
|
$
|
1,483,076
|
|
$
|
1,473,543
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(19,914)
|
|
|
(20,058)
|
|
|
(20,214)
|
|
|
(20,383)
|
|
|
(31,706)
|
|
|
|
|
|
|
|
Tangible assets
(R)
|
|
$
|
1,541,765
|
|
$
|
1,468,504
|
|
$
|
1,465,585
|
|
$
|
1,462,693
|
|
$
|
1,441,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
equity/assets (GAAP) (O)/(Q)
|
|
|
12.42
|
%
|
|
12.85
|
%
|
|
12.59
|
%
|
|
12.35
|
%
|
|
11.63
|
%
|
|
|
|
|
|
|
Period-end tangible
equity/tangible assets (Non-GAAP) (P)/(R)
|
|
|
11.29
|
%
|
|
11.66
|
%
|
|
11.39
|
%
|
|
11.13
|
%
|
|
9.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 to download
multimedia:http://www.prnewswire.com/news-releases/shore-bancshares-reports-third-quarter-and-nine-month-results-300945156.html
SOURCE Shore Bancshares, Inc.