Shore Bancshares, Inc. Reports Second Quarter and First-Half Financial Results
Second Quarter and First-Half of 2024 Highlights
- Return on Average Assets ("ROAA") - The Company reported ROAA of 0.77% for the second quarter of 2024, compared to 0.57% for the first quarter of 2024 and 0.45% for the second quarter of 2023. Non-GAAP, ROAA([1]), which excludes fraud expense, core deposit intangible amortization, and merger-related expenses, was 0.91% for the second quarter of 2024, compared to 0.94% for the first quarter of 2024 and 0.59% for the second quarter of 2023.
-
Net Interest Margin
Expansion - Net interest margin ("NIM") increased to 3.11% for the second quarter of 2024 from 3.08% for the first quarter of 2024. Excluding net accretion interest income of
$3.8 million and$3.6 million for the same time periods, NIM increased two basis points ("bps") to 2.83% for the second quarter of 2024 from 2.81% for the first quarter of 2024. -
Continued Stable and Low Cost Funding - Total deposits remained stable in the second quarter of 2024 with noninterest-bearing deposits increasing
$386.6 million to 30.8% of total deposits. The increase in noninterest-bearing deposits was primarily due to the migration of low-cost demand deposits to noninterest-bearing deposits and successful initiatives designed to drive noninterest-bearing deposit growth. The total average cost of deposits for the second quarter of 2024 declined four bps to 2.19% when compared to the first quarter of 2024. -
Improving Earnings Drive Capital Accretion - Second quarter net interest income and noninterest income increased
$1.0 million and$1.9 million , respectively, from the first quarter of 2024. Net interest income increased due to modest loan growth, slightly higher accelerated accretion income, and loan and securities repricing. Noninterest income increased primarily due to higher mortgage-banking revenue from increased volume and sales of residential mortgages. The improved earnings for the second quarter resulted in a 14 bps increase in the Company's Tier 1 Capital Ratio and a 14 bps increase in the Company's Total Risk-Based Capital Ratio, which were 9.67% and 11.82%, respectively, onJune 30, 2024 . The Company's leverage ratio and tangible common equity ratio(1) also increased to 8.07% and 7.23%, respectively, in the second quarter of 2024. -
Reduced
Commercial Real Estate ("CRE") Concentration - The CRE Concentration Ratio, which is calculated as non-owner occupied CRE loans as a percentage of the Bank's Tier 1 Capital + Allowance for Credit Losses ("ACL"), decreased in the second quarter of 2024 to 368.7% from 370.0% in the first quarter of 2024 and 382.6% in the fourth quarter of 2023. Capital accretion has allowed the Bank to meet the needs of its customers and fund new CRE loans. - Improving Operating Leverage - The second quarter efficiency ratio improved to 66.2% when compared to 76.9% in the first quarter 2024 and 77.8% in the second quarter 2023. The second quarter non-GAAP efficiency, which excludes core deposit intangible amortization and non-recurring activity, improved to 61.1% when compared to 62.4% in the first quarter 2024 and 71.8% in the second quarter 2023. Management anticipates ongoing expense management and technology investments will result in continued improvements in operating leverage over time.
"Throughout our first post-merger operating year, we have worked to strengthen our balance sheet and streamline our operations. Our second quarter financial results reflect our progress and momentum on both fronts." stated James ("Jimmy")
___________________________________ |
(1) Reconciliations of the non–U.S. generally accepted accounting principles ("GAAP") measures are set forth at the end of this press release. |
Balance Sheet Review
Total assets were
The Company's tangible common equity ratio(1) at
The Bank's office CRE loan portfolio, which includes owner-occupied and non-owner occupied CRE loans, was
|
|
Loan Count |
|
Loan Balance |
|
% of Total CRE |
Less than or equal to 50% |
|
257 |
|
$ 169,209 |
|
34 % |
50%-60% |
|
67 |
|
131,378 |
|
26 % |
60%-70% |
|
84 |
|
99,728 |
|
20 % |
70%-80% |
|
74 |
|
87,971 |
|
17 % |
Greater than 80% |
|
25 |
|
16,583 |
|
3 % |
Grand Total |
|
507 |
|
$ 504,869 |
|
100 % |
The Bank had 18 office CRE loans totaling
Total deposits decreased
Total funding, which includes customer deposits,
Total stockholders' equity increased
Review of Quarterly Financial Results
Net interest income was
The Company's net interest margin increased to 3.11% for the second quarter of 2024 from 3.08% for the first quarter of 2024 primarily due to loans and securities repricing at a greater rate than deposits. The Company's cost of funds was positively impacted during the second quarter due to a shift from interest-bearing to noninterest-bearing deposits. Average interest-bearing deposits decreased
The provision for credit losses was
At
Total noninterest income for the second quarter of 2024 was
Total noninterest expense of
Review of Six Month Financial Results
Net interest income for the first six months of 2024 was
The Company's net interest margin increased to 3.09% for 2024 from 2.93% for 2023, primarily due to recent loan growth and repricing of earning assets, higher net accretion due to the merger, a positive shift in lower cost deposits and an overall stabilized funding base. The increase in the average balance and yields earned on average earning assets of
The provision for credit losses for the six months ended
Total noninterest income for the six months ended
Total noninterest expense for the six months ended
Shore Bancshares Information
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. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; recent adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing wars in
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. |
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Financial Highlights (Unaudited) |
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|
||||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||
(Dollars in thousands, except per share data) |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFITABILITY FOR THE PERIOD |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ 42,140 |
|
$ 22,494 |
|
87.3 % |
|
$ 83,275 |
|
$ 48,158 |
|
72.9 % |
Provision for credit losses |
|
2,081 |
|
667 |
|
212.0 |
|
2,488 |
|
1,880 |
|
32.3 |
Noninterest income |
|
8,440 |
|
5,294 |
|
59.4 |
|
15,007 |
|
10,628 |
|
41.2 |
Noninterest expense |
|
33,499 |
|
21,608 |
|
55.0 |
|
70,197 |
|
42,501 |
|
65.2 |
Income before income taxes |
|
15,000 |
|
5,513 |
|
172.1 |
|
25,597 |
|
14,405 |
|
77.7 |
Income tax expense |
|
3,766 |
|
1,495 |
|
151.9 |
|
6,179 |
|
3,930 |
|
57.2 |
Net income |
|
$ 11,234 |
|
$ 4,018 |
|
179.6 |
|
$ 19,418 |
|
$ 10,475 |
|
85.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.77 % |
|
0.45 % |
|
32 bp |
|
0.67 % |
|
0.59 % |
|
8 bp |
Return on average assets excluding amortization of |
|
0.91 |
|
0.59 |
|
32 |
|
0.92 |
|
0.71 |
|
21 |
Return on average equity |
|
8.70 |
|
4.49 |
|
421 |
|
7.54 |
|
5.83 |
|
171 |
Return on average tangible equity - Non-GAAP (1), (2) |
|
12.85 |
|
7.16 |
|
569 |
|
13.08 |
|
8.57 |
|
451 |
Interest rate spread |
|
2.11 |
|
2.04 |
|
7 |
|
2.23 |
|
2.35 |
|
(12) |
Net interest margin |
|
3.11 |
|
2.68 |
|
43 |
|
3.09 |
|
2.93 |
|
16 |
Efficiency ratio - GAAP |
|
66.23 |
|
77.76 |
|
(1,153) |
|
71.42 |
|
72.30 |
|
(88) |
Efficiency ratio - Non-GAAP (1) |
|
61.05 |
|
71.76 |
|
(1,071) |
|
61.69 |
|
67.49 |
|
(580) |
Non-interest income to average assets |
|
0.58 |
|
0.59 |
|
(1) |
|
0.52 |
|
0.60 |
|
(8) |
Non-interest expense to average assets |
|
2.31 |
|
2.41 |
|
(10) |
|
2.43 |
|
2.41 |
|
2 |
Net operating expense to average assets - GAAP |
|
1.73 |
|
1.82 |
|
(9) |
|
1.91 |
|
1.81 |
|
10 |
Net operating expense to average assets - Non-GAAP (1) |
|
1.55 |
|
1.64 |
|
(9) |
|
1.58 |
|
1.65 |
|
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per common share |
|
$ 0.34 |
|
$ 0.20 |
|
69.1 % |
|
$ 0.58 |
|
$ 0.53 |
|
9.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per common share |
|
$ 0.12 |
|
$ 0.12 |
|
— % |
|
$ 0.24 |
|
$ 0.24 |
|
(50.0) % |
Book value per common share at period end |
|
15.74 |
|
18.24 |
|
(13.7) |
|
|
|
|
|
|
Tangible book value per common share at period end - Non-GAAP (1) |
|
12.54 |
|
14.83 |
|
(15.4) |
|
|
|
|
|
|
Market value at period end |
|
11.45 |
|
11.56 |
|
(1.0) |
|
|
|
|
|
|
Market range: |
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
11.90 |
|
14.45 |
|
(17.6) |
|
14.38 |
|
18.15 |
|
(20.8) |
Low |
|
10.06 |
|
10.65 |
|
(5.5) |
|
10.06 |
|
10.65 |
|
(5.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ 4,706,510 |
|
$ 2,709,944 |
|
73.7 % |
|
$ 4,680,846 |
|
$ 2,661,066 |
|
75.9 % |
Investment securities |
|
706,079 |
|
645,842 |
|
9.3 |
|
680,701 |
|
649,994 |
|
4.7 |
Earning assets |
|
5,459,961 |
|
3,369,183 |
|
62.1 |
|
5,423,871 |
|
3,324,682 |
|
63.1 |
Assets |
|
5,839,328 |
|
3,596,311 |
|
62.4 |
|
5,807,076 |
|
3,551,573 |
|
63.5 |
Deposits |
|
5,064,974 |
|
2,908,662 |
|
74.1 |
|
5,103,815 |
|
2,938,389 |
|
73.7 |
Short-term and Long Term FHLB advances |
|
143,769 |
|
261,797 |
|
(45.1) |
|
73,885 |
|
188,293 |
|
(60.8) |
Subordinated Debt & TRUPS |
|
72,680 |
|
43,185 |
|
68.3 |
|
72,549 |
|
43,147 |
|
68.1 |
Stockholders' equity |
|
519,478 |
|
363,225 |
|
43.0 |
|
517,727 |
|
362,205 |
|
42.9 |
___________________________________ |
|
(1) |
See the reconciliation table that begins on page 24. |
(2) |
This ratio excludes merger related expenses (Non-GAAP) on page 24. |
Shore Bancshares, Inc. |
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Financial Highlights (Unaudited) - Continued |
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|
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|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||
(Dollars in thousands, except per share data) |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY DATA |
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
$ 886 |
|
$ 50 |
|
1,672.0 % |
|
$ 1,451 |
|
$ 70 |
|
1972.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ 14,837 |
|
$ 3,481 |
|
326.2 % |
|
|
|
|
|
|
Loans 90 days past due and still accruing |
|
414 |
|
1,050 |
|
(60.6) |
|
|
|
|
|
|
Other real estate owned and Repossessed Property |
|
3,126 |
|
179 |
|
1,646.4 |
|
|
|
|
|
|
Total nonperforming assets |
|
18,377 |
|
4,710 |
|
290.2 |
|
|
|
|
|
|
Borrowers experiencing financial difficulty ("BEFDs") |
|
— |
|
— |
|
— |
|
|
|
|
|
|
Total nonperforming assets and BEFDs modifications |
|
$ 18,377 |
|
$ 4,710 |
|
290.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to assets |
|
8.92 % |
|
9.97 % |
|
(105) bp |
|
|
|
|
|
|
Period-end tangible equity to tangible assets - Non-GAAP (1) |
|
7.23 |
|
8.26 |
|
(103) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs to average loans |
|
0.08 % |
|
0.01 % |
|
7 bp |
|
0.06 % |
|
0.01 % |
|
5 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans |
|
1.24 % |
|
1.05 % |
|
19 bp |
|
|
|
|
|
|
Nonaccrual loans |
|
394.14 |
|
833.50 |
|
(43,936) |
|
|
|
|
|
|
Nonperforming assets |
|
318.21 |
|
616.01 |
|
(29,780) |
|
|
|
|
|
|
Accruing BEFDs modifications |
|
— |
|
— |
|
— |
|
|
|
|
|
|
Nonperforming assets and accruing BEFDs |
|
318.21 |
|
616.01 |
|
(29,780) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
0.32 % |
|
0.13 % |
|
19 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total loans, other real estate owned, and |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets |
|
0.39 % |
|
0.17 % |
|
22 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
0.25 % |
|
0.10 % |
|
15 bp |
|
|
|
|
|
|
Nonperforming assets |
|
0.31 % |
|
0.13 % |
|
18 |
|
|
|
|
|
|
___________________________________ |
|
(1) |
See the reconciliation table that begins on page 24. |
(2) |
This ratio excludes merger related expenses (Non-GAAP) on page 24. |
Shore Bancshares, Inc. |
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Consolidated Balance Sheets (Unaudited) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to |
compared to |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ 50,090 |
|
$ 63,172 |
|
$ 35,423 |
|
(20.7) % |
41.4 % |
Interest-bearing deposits with other banks |
|
88,793 |
|
309,241 |
|
10,404 |
|
(71.3) |
753.5 |
Cash and cash equivalents |
|
138,883 |
|
372,413 |
|
45,827 |
|
(62.7) |
203.1 |
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale (at fair value) |
|
131,594 |
|
110,521 |
|
78,069 |
|
19.1 |
68.6 |
Investment securities held to maturity (net of allowance for credit |
|
499,431 |
|
513,188 |
|
536,970 |
|
(2.7) |
(7.0) |
Equity securities, at fair value |
|
5,699 |
|
5,703 |
|
1,245 |
|
(0.1) |
357.8 |
Restricted securities |
|
21,725 |
|
17,900 |
|
21,208 |
|
21.4 |
2.4 |
Loans held for sale, at fair value |
|
27,829 |
|
8,782 |
|
6,845 |
|
216.9 |
306.6 |
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
4,705,737 |
|
4,641,010 |
|
2,753,223 |
|
1.4 |
70.9 |
Less: allowance for credit losses |
|
(58,478) |
|
(57,351) |
|
(29,014) |
|
(2.0) |
(101.6) |
Loans, net |
|
4,647,259 |
|
4,583,659 |
|
2,724,209 |
|
1.4 |
70.6 |
Premises and equipment, net |
|
82,176 |
|
82,386 |
|
51,036 |
|
(0.3) |
61.0 |
|
|
63,266 |
|
63,266 |
|
63,266 |
|
— |
— |
Other intangible assets, net |
|
42,945 |
|
48,090 |
|
4,671 |
|
(10.7) |
819.4 |
Other real estate owned, net |
|
179 |
|
179 |
|
179 |
|
— |
— |
Repossessed property, net |
|
1,560 |
|
— |
|
— |
|
— |
— |
Assets held for sale |
|
1,387 |
|
— |
|
— |
|
— |
|
Mortgage servicing rights, at fair value |
|
5,995 |
|
5,926 |
|
5,466 |
|
1.2 |
9.7 |
Right of use assets, net |
|
11,762 |
|
12,487 |
|
9,077 |
|
(5.8) |
29.6 |
Cash surrender value on life insurance |
|
102,969 |
|
101,704 |
|
60,150 |
|
1.2 |
71.2 |
Accrued interest receivable |
|
19,641 |
|
19,217 |
|
8,778 |
|
2.2 |
123.8 |
Deferred income taxes |
|
36,078 |
|
40,707 |
|
10,879 |
|
(11.4) |
231.6 |
Other assets |
|
23,639 |
|
24,790 |
|
13,756 |
|
(4.6) |
71.8 |
Total assets |
|
$ 5,864,017 |
|
$ 6,010,918 |
|
$ 3,641,631 |
|
(2.4) |
61.0 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ 1,587,252 |
|
$ 1,258,037 |
|
$ 778,963 |
|
26.2 % |
103.8 % |
Interest-bearing deposits |
|
3,561,633 |
|
4,128,083 |
|
2,158,563 |
|
(13.7) |
65.0 |
Total deposits |
|
5,148,885 |
|
5,386,120 |
|
2,937,526 |
|
(4.4) |
75.3 |
|
|
|
|
|
|
|
|
|
|
Advances from FHLB - short-term |
|
31,000 |
|
— |
|
276,000 |
|
— |
(88.8) |
Advances from FHLB - long-term |
|
50,000 |
|
— |
|
— |
|
— |
— |
Guaranteed preferred beneficial interest in junior subordinated |
|
29,316 |
|
29,158 |
|
18,492 |
|
0.5 |
58.5 |
Subordinated debt |
|
43,504 |
|
43,139 |
|
24,735 |
|
0.8 |
75.9 |
Total borrowings |
|
153,820 |
|
72,297 |
|
319,227 |
|
112.8 |
(51.8) |
Lease liabilities |
|
12,189 |
|
12,857 |
|
9,392 |
|
(5.2) |
29.8 |
Accrued expenses and other liabilities |
|
26,340 |
|
28,509 |
|
12,346 |
|
(7.6) |
113.3 |
Total liabilities |
|
$ 5,341,234 |
|
$ 5,499,783 |
|
$ 3,278,491 |
|
(2.9) |
62.9 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common stock, par value |
|
$ 333 |
|
$ 332 |
|
$ 199 |
|
0.3 |
67.3 |
Additional paid in capital |
|
356,994 |
|
356,007 |
|
202,008 |
|
0.3 |
76.7 |
Retained earnings |
|
173,716 |
|
162,290 |
|
169,494 |
|
7.0 |
2.5 |
Accumulated other comprehensive loss |
|
(8,260) |
|
(7,494) |
|
(8,561) |
|
(10.2) |
3.5 |
Total stockholders' equity |
|
522,783 |
|
511,135 |
|
363,140 |
|
2.3 |
44.0 |
Total liabilities and stockholders' equity |
|
$ 5,864,017 |
|
$ 6,010,918 |
|
$ 3,641,631 |
|
(2.4) |
61.0 |
|
|
|
|
|
|
|
|
|
|
Period-end common shares outstanding |
|
$ 33,215 |
|
$ 33,162 |
|
$ 19,907 |
|
0.2 |
66.8 |
Book value per common share |
|
$ 15.74 |
|
$ 15.41 |
|
$ 18.24 |
|
2.1 |
(13.7) |
Shore Bancshares, Inc. |
||||||||||||
Consolidated Statements of Income (Unaudited) |
||||||||||||
|
||||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||
(In thousands, except per share data) |
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ 67,292 |
|
$ 32,729 |
|
105.6 % |
|
$ 133,045 |
|
$ 63,557 |
|
109.3 % |
Interest on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
5,230 |
|
3,729 |
|
40.3 |
|
9,650 |
|
7,793 |
|
23.8 |
Tax-exempt |
|
6 |
|
5 |
|
20.0 |
|
12 |
|
12 |
|
— |
Interest on deposits with other banks |
|
578 |
|
170 |
|
240.0 |
|
1,538 |
|
333 |
|
361.9 |
Total interest income |
|
$ 73,106 |
|
$ 36,633 |
|
99.6 |
|
$ 144,245 |
|
$ 71,695 |
|
101.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
$ 27,585 |
|
$ 9,914 |
|
178.2 |
|
$ 56,081 |
|
$ 17,195 |
|
226.1 |
Interest on short-term borrowings |
|
1,584 |
|
3,449 |
|
(54.1) |
|
1,641 |
|
4,810 |
|
(65.9) |
Interest on long-term borrowings |
|
1,797 |
|
776 |
|
131.6 |
|
3,248 |
|
1,532 |
|
112.0 |
Total interest expense |
|
$ 30,966 |
|
$ 14,139 |
|
119.0 |
|
$ 60,970 |
|
$ 23,537 |
|
159.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
$ 42,140 |
|
$ 22,494 |
|
87.3 |
|
$ 83,275 |
|
$ 48,158 |
|
72.9 |
Provision for credit losses |
|
2,081 |
|
667 |
|
212.0 |
|
2,488 |
|
1,880 |
|
32.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR |
|
$ 40,059 |
|
$ 21,827 |
|
83.5 |
|
$ 80,787 |
|
$ 46,278 |
|
74.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
$ 1,493 |
|
$ 1,264 |
|
18.1 |
|
$ 3,001 |
|
$ 2,477 |
|
21.2 |
Trust and investment fee income |
|
896 |
|
399 |
|
124.6 |
|
1,630 |
|
831 |
|
96.1 |
Interchange credits |
|
1,717 |
|
1,311 |
|
31.0 |
|
3,304 |
|
2,523 |
|
31.0 |
Mortgage-banking revenue |
|
1,983 |
|
1,054 |
|
88.1 |
|
2,783 |
|
2,031 |
|
37.0 |
|
|
165 |
|
186 |
|
(11.3) |
|
243 |
|
323 |
|
(24.8) |
Other noninterest income |
|
2,186 |
|
1,080 |
|
102.4 |
|
4,046 |
|
2,443 |
|
65.6 |
Total noninterest income |
|
$ 8,440 |
|
$ 5,294 |
|
59.4 |
|
$ 15,007 |
|
$ 10,628 |
|
41.2 |
Shore Bancshares, Inc. |
||||||||||||
Consolidated Statements of Income (Unaudited) - Continued |
||||||||||||
|
||||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||
(In thousands, except per share data) |
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
|
$ 13,307 |
|
$ 8,955 |
|
48.6 % |
|
$ 25,158 |
|
$ 17,639 |
|
42.6 % |
Employee benefits |
|
3,593 |
|
2,440 |
|
47.3 |
|
7,689 |
|
5,361 |
|
43.4 |
Occupancy expense |
|
2,432 |
|
1,599 |
|
52.1 |
|
4,848 |
|
3,218 |
|
50.7 |
Furniture and equipment expense |
|
900 |
|
477 |
|
88.7 |
|
1,804 |
|
1,011 |
|
78.4 |
Data processing |
|
2,978 |
|
1,739 |
|
71.2 |
|
5,845 |
|
3,537 |
|
65.3 |
Directors' fees |
|
359 |
|
185 |
|
94.1 |
|
654 |
|
435 |
|
50.3 |
Amortization of intangible assets |
|
2,569 |
|
435 |
|
490.6 |
|
5,145 |
|
876 |
|
487.3 |
|
|
1,089 |
|
758 |
|
43.7 |
|
2,240 |
|
1,129 |
|
98.4 |
Other real estate owned, net |
|
— |
|
— |
|
— |
|
— |
|
(1) |
|
100.0 |
Legal and professional fees |
|
1,354 |
|
959 |
|
41.2 |
|
2,954 |
|
1,709 |
|
72.8 |
Fraud losses (1) |
|
62 |
|
47 |
|
31.9 |
|
4,564 |
|
114 |
|
3903.5 |
Merger related expenses |
|
— |
|
1,197 |
|
(100.0) |
|
— |
|
1,888 |
|
(100.0) |
Other noninterest expenses |
|
4,856 |
|
2,817 |
|
72.4 |
|
9,296 |
|
5,585 |
|
66.4 |
Total noninterest expense |
|
$ 33,499 |
|
$ 21,608 |
|
55.0 |
|
70,197 |
|
42,501 |
|
65.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ 15,000 |
|
$ 5,513 |
|
172.1 |
|
25,597 |
|
14,405 |
|
77.7 |
Income tax expense |
|
3,766 |
|
1,495 |
|
151.9 |
|
6,179 |
|
3,930 |
|
57.2 |
NET INCOME |
|
$ 11,234 |
|
$ 4,018 |
|
179.6 |
|
$ 19,418 |
|
$ 10,475 |
|
85.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic and diluted |
|
33,215 |
|
19,903 |
|
66.9 |
|
33,337 |
|
19,895 |
|
67.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per common share |
|
$ 0.34 |
|
$ 0.20 |
|
69.1 |
|
$ 0.58 |
|
$ 0.53 |
|
9.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per common share |
|
$ 0.12 |
|
$ 0.12 |
|
— |
|
$ 0.12 |
|
$ 0.24 |
|
(50.0) |
____________________________________ |
(1) Fraud losses includes |
Shore Bancshares, Inc. |
||||||||||||||||||||||||
Consolidated Average Balance Sheets (Unaudited) |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
|
For the Three Months Ended |
|
For the Three Months Ended |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
(Dollars in thousands) |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2), (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer real estate |
|
$ 1,388,168 |
|
$ 19,278 |
|
5.59 % |
|
$ 946,545 |
|
$ 10,876 |
|
4.61 % |
|
$ 1,388,168 |
|
$ 19,278 |
|
5.59 % |
|
$ 1,361,636 |
|
$ 18,492 |
|
5.46 % |
Commercial real estate |
|
2,738,693 |
|
39,370 |
|
5.78 |
|
1,292,406 |
|
15,620 |
|
4.85 |
|
2,738,693 |
|
39,370 |
|
5.78 |
|
2,722,600 |
|
38,604 |
|
5.70 |
Commercial |
|
216,809 |
|
3,926 |
|
7.28 |
|
137,554 |
|
2,177 |
|
6.35 |
|
216,809 |
|
3,926 |
|
7.28 |
|
219,884 |
|
4,097 |
|
7.49 |
Consumer |
|
327,781 |
|
4,265 |
|
5.23 |
|
323,798 |
|
3,983 |
|
4.93 |
|
327,781 |
|
4,265 |
|
5.23 |
|
329,118 |
|
4,272 |
|
5.22 |
State and political |
|
2,331 |
|
30 |
|
5.18 |
|
900 |
|
8 |
|
3.57 |
|
2,331 |
|
30 |
|
5.18 |
|
1,473 |
|
16 |
|
4.37 |
Credit Cards |
|
8,378 |
|
201 |
|
9.65 |
|
— |
|
— |
|
— |
|
8,378 |
|
201 |
|
9.65 |
|
7,457 |
|
167 |
|
9.01 |
Other |
|
24,350 |
|
302 |
|
4.99 |
|
8,741 |
|
117 |
|
5.37 |
|
24,350 |
|
302 |
|
4.99 |
|
13,015 |
|
183 |
|
5.66 |
Total Loans |
|
4,706,510 |
|
67,372 |
|
5.76 |
|
2,709,944 |
|
32,781 |
|
4.85 |
|
4,706,510 |
|
67,372 |
|
5.76 |
|
4,655,183 |
|
65,831 |
|
5.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
705,421 |
|
5,230 |
|
2.97 |
|
645,178 |
|
3,729 |
|
2.31 |
|
705,421 |
|
5,230 |
|
2.97 |
|
654,663 |
|
4,419 |
|
2.70 |
Tax-exempt (1) |
|
658 |
|
8 |
|
4.86 |
|
664 |
|
9 |
|
5.42 |
|
658 |
|
8 |
|
4.86 |
|
660 |
|
8 |
|
4.85 |
Interest-bearing deposits |
|
47,372 |
|
578 |
|
4.91 |
|
13,397 |
|
170 |
|
5.09 |
|
47,372 |
|
578 |
|
4.91 |
|
77,276 |
|
960 |
|
5.00 |
Total earning assets |
|
5,459,961 |
|
73,188 |
|
5.39 |
|
3,369,183 |
|
36,689 |
|
4.37 |
|
5,459,961 |
|
73,188 |
|
5.39 |
|
5,387,782 |
|
71,218 |
|
5.32 |
Cash and due from banks |
|
45,141 |
|
|
|
|
|
29,923 |
|
|
|
|
|
45,141 |
|
|
|
|
|
49,499 |
|
|
|
|
Other assets |
|
391,854 |
|
|
|
|
|
225,935 |
|
|
|
|
|
391,854 |
|
|
|
|
|
395,023 |
|
|
|
|
Allowance for credit losses |
|
(57,628) |
|
|
|
|
|
(28,730) |
|
|
|
|
|
(57,628) |
|
|
|
|
|
(57,480) |
|
|
|
|
Total assets |
|
$ 5,839,328 |
|
|
|
|
|
$ 3,596,311 |
|
|
|
|
|
$ 5,839,328 |
|
|
|
|
|
$ 5,774,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ 711,138 |
|
$ 5,550 |
|
3.14 % |
|
$ 685,674 |
|
$ 3,913 |
|
2.29 % |
|
$ 711,138 |
|
$ 5,550 |
|
3.14 % |
|
$ 1,110,524 |
|
$ 6,362 |
|
2.30 % |
Money market and savings deposits |
|
1,690,157 |
|
10,291 |
|
2.45 |
|
907,068 |
|
2,526 |
|
1.12 |
|
1,690,157 |
|
10,291 |
|
2.45 |
|
1,669,074 |
|
10,160 |
|
2.45 |
Brokered deposits |
|
7,753 |
|
94 |
|
4.88 |
|
— |
|
— |
|
— |
|
7,753 |
|
94 |
|
4.88 |
|
20,465 |
|
251 |
|
4.93 |
Certificates of deposit |
|
758,211 |
|
7,581 |
|
4.02 |
|
312,367 |
|
2,337 |
|
3.00 |
|
758,211 |
|
7,581 |
|
4.02 |
|
762,210 |
|
7,675 |
|
4.05 |
Other time deposits |
|
417,331 |
|
4,069 |
|
3.92 |
|
225,495 |
|
1,139 |
|
2.03 |
|
417,331 |
|
4,069 |
|
3.92 |
|
417,362 |
|
4,049 |
|
3.90 |
Interest-bearing deposits (4) |
|
3,584,590 |
|
27,585 |
|
3.10 |
|
2,130,604 |
|
9,915 |
|
1.87 |
|
3,584,590 |
|
27,585 |
|
3.10 |
|
3,979,635 |
|
28,497 |
|
2.88 |
Advances from FHLB - short-term |
|
113,549 |
|
1,584 |
|
5.61 |
|
261,797 |
|
3,449 |
|
5.28 |
|
113,549 |
|
1,584 |
|
5.61 |
|
4,000 |
|
56 |
|
5.63 |
Advances from FHLB - long-term |
|
30,220 |
|
346 |
|
4.60 |
|
— |
|
— |
|
— |
|
30,220 |
|
346 |
|
4.60 |
|
— |
|
— |
|
— |
Subordinated debt and |
|
72,680 |
|
1,451 |
|
8.03 |
|
43,185 |
|
776 |
|
7.21 |
|
72,680 |
|
1,451 |
|
8.03 |
|
72,418 |
|
1,451 |
|
8.06 |
Total interest-bearing liabilities |
|
3,801,039 |
|
30,966 |
|
3.28 |
|
2,435,586 |
|
14,140 |
|
2.33 |
|
3,801,039 |
|
30,966 |
|
3.28 |
|
4,056,053 |
|
30,004 |
|
2.98 |
Noninterest-bearing deposits |
|
1,480,384 |
|
|
|
|
|
778,058 |
|
|
|
|
|
1,480,384 |
|
|
|
|
|
1,163,023 |
|
|
|
|
Accrued expenses and other liabilities |
|
38,427 |
|
|
|
|
|
19,442 |
|
|
|
|
|
38,427 |
|
|
|
|
|
39,772 |
|
|
|
|
Stockholders' equity |
|
519,478 |
|
|
|
|
|
363,225 |
|
|
|
|
|
519,478 |
|
|
|
|
|
515,976 |
|
|
|
|
Total liabilities and |
|
$ 5,839,328 |
|
|
|
|
|
$ 3,596,311 |
|
|
|
|
|
$ 5,839,328 |
|
|
|
|
|
$ 5,774,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ 42,222 |
|
|
|
|
|
$ 22,549 |
|
|
|
|
|
$ 42,222 |
|
|
|
|
|
$ 41,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
2.11 % |
|
|
|
|
|
2.04 % |
|
|
|
|
|
2.11 % |
|
|
|
|
|
2.34 % |
Net interest margin |
|
|
|
|
|
3.11 % |
|
|
|
|
|
2.68 % |
|
|
|
|
|
3.11 % |
|
|
|
|
|
3.08 % |
Cost of Funds |
|
|
|
|
|
2.36 % |
|
|
|
|
|
1.76 % |
|
|
|
|
|
2.36 % |
|
|
|
|
|
2.31 % |
Cost of Deposits |
|
|
|
|
|
2.19 % |
|
|
|
|
|
1.37 % |
|
|
|
|
|
2.19 % |
|
|
|
|
|
2.23 % |
Cost of Debt |
|
|
|
|
|
6.28 % |
|
|
|
|
|
5.56 % |
|
|
|
|
|
6.28 % |
|
|
|
|
|
7.93 % |
____________________________________ |
|
(1) |
All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense. |
(2) |
Average loan balances include nonaccrual loans. |
(3) |
Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were |
(4) |
Interest expense on deposits and borrowing includes amortization of deposit discount and amortization of borrowing fair value adjustments. There were |
Shore Bancshares, Inc. |
||||||||||||
Consolidated Average Balance Sheets (Unaudited) |
||||||||||||
|
||||||||||||
|
|
For the Six Months Ended |
||||||||||
|
|
2024 |
|
2023 |
||||||||
(Dollars in thousands) |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2), (3) |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer real estate |
|
$ 1,374,902 |
|
$ 37,770 |
|
5.52 % |
|
$ 914,351 |
|
$ 21,383 |
|
4.72 % |
Commercial real estate |
|
2,730,646 |
|
77,974 |
|
5.74 |
|
1,286,199 |
|
30,793 |
|
4.83 |
Commercial |
|
218,346 |
|
8,024 |
|
7.39 |
|
140,161 |
|
3,997 |
|
5.75 |
Consumer |
|
328,450 |
|
8,537 |
|
5.23 |
|
310,736 |
|
7,257 |
|
4.71 |
State and political |
|
1,902 |
|
46 |
|
4.86 |
|
939 |
|
17 |
|
3.65 |
Credit Cards |
|
7,918 |
|
368 |
|
9.35 |
|
— |
|
— |
|
— |
Other |
|
18,682 |
|
484 |
|
5.21 |
|
8,680 |
|
199 |
|
4.62 |
Total Loans |
|
4,680,846 |
|
133,203 |
|
5.72 |
|
2,661,066 |
|
63,646 |
|
4.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
680,042 |
|
9,650 |
|
2.84 |
|
649,329 |
|
7,793 |
|
2.40 |
Tax-exempt (1) |
|
659 |
|
15 |
|
4.55 |
|
665 |
|
15 |
|
4.51 |
Interest-bearing deposits |
|
62,324 |
|
1,538 |
|
4.96 |
|
13,622 |
|
333 |
|
4.93 |
Total earning assets |
|
5,423,871 |
|
144,406 |
|
5.35 |
|
3,324,682 |
|
71,787 |
|
4.35 |
Cash and due from banks |
|
47,320 |
|
|
|
|
|
29,266 |
|
|
|
|
Other assets |
|
393,439 |
|
|
|
|
|
226,989 |
|
|
|
|
Allowance for credit losses |
|
(57,554) |
|
|
|
|
|
(29,364) |
|
|
|
|
Total assets |
|
$ 5,807,076 |
|
|
|
|
|
$ 3,551,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ 910,831 |
|
$ 11,911 |
|
2.63 % |
|
$ 690,258 |
|
$ 7,149 |
|
2.09 % |
Money market and savings deposits |
|
1,679,615 |
|
20,451 |
|
2.45 |
|
955,541 |
|
4,899 |
|
1.03 |
Brokered deposits |
|
14,107 |
|
345 |
|
4.92 |
|
— |
|
— |
|
— |
Certificates of deposit |
|
760,211 |
|
15,256 |
|
4.04 |
|
277,096 |
|
3,413 |
|
2.48 |
Other time deposits |
|
417,346 |
|
8,118 |
|
3.91 |
|
216,500 |
|
1,734 |
|
1.62 |
Interest-bearing deposits (4) |
|
3,782,110 |
|
56,081 |
|
2.98 |
|
2,139,395 |
|
17,195 |
|
1.62 |
Advances from FHLB - short-term |
|
58,775 |
|
1,641 |
|
5.61 |
|
188,293 |
|
4,810 |
|
5.15 |
Advances from FHLB - long-term |
|
15,110 |
|
346 |
|
4.60 |
|
— |
|
— |
|
— |
Subordinated debt and Guaranteed preferred beneficial interest in junior |
|
72,549 |
|
2,902 |
|
8.04 |
|
43,147 |
|
1,532 |
|
7.16 |
Total interest-bearing liabilities |
|
3,928,544 |
|
60,970 |
|
3.12 |
|
2,370,835 |
|
23,537 |
|
2.00 |
Noninterest-bearing deposits |
|
1,321,705 |
|
|
|
|
|
798,994 |
|
|
|
|
Accrued expenses and other liabilities |
|
39,100 |
|
|
|
|
|
19,539 |
|
|
|
|
Stockholders' equity |
|
517,727 |
|
|
|
|
|
362,205 |
|
|
|
|
Total liabilities and stockholders' equity |
|
$ 5,807,076 |
|
|
|
|
|
$ 3,551,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ 83,436 |
|
|
|
|
|
$ 48,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
2.23 % |
|
|
|
|
|
2.35 % |
Net interest margin |
|
|
|
|
|
3.09 % |
|
|
|
|
|
2.93 % |
Cost of Funds |
|
|
|
|
|
2.34 % |
|
|
|
|
|
1.50 % |
Cost of Deposits |
|
|
|
|
|
2.21 % |
|
|
|
|
|
1.18 % |
Cost of Debt |
|
|
|
|
|
6.71 % |
|
|
|
|
|
5.53 % |
____________________________________ |
|
(1) |
All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense. |
(2) |
Average loan balances include nonaccrual loans. |
(3) |
Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were |
(4) |
Interest expense on deposits and borrowing includes amortization of deposit premiums and amortization of borrowing fair value adjustment. There were |
Shore Bancshares, Inc. |
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
|
2nd Quarter |
|
1st Quarter |
|
4th Quarter |
|
3rd Quarter |
|
2nd Quarter |
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
compared to |
|
compared to |
(Dollars in thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2024 |
|
Q2 2023 |
PROFITABILITY FOR THE PERIOD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent net interest income |
|
$ 42,222 |
|
$ 41,214 |
|
$ 41,606 |
|
$ 45,702 |
|
$ 22,545 |
|
2.5 % |
|
87.3 % |
Less: Taxable-equivalent adjustment |
|
82 |
|
79 |
|
81 |
|
80 |
|
51 |
|
3.8 |
|
60.8 |
Net interest income |
|
42,140 |
|
41,135 |
|
41,525 |
|
45,622 |
|
22,494 |
|
2.4 |
|
87.3 |
Provision for credit losses |
|
2,081 |
|
407 |
|
896 |
|
28,176 |
|
667 |
|
411.3 |
|
212.0 |
Noninterest income |
|
8,440 |
|
6,567 |
|
7,548 |
|
14,984 |
|
5,294 |
|
28.5 |
|
59.4 |
Noninterest expense |
|
33,499 |
|
36,698 |
|
33,670 |
|
47,158 |
|
21,608 |
|
(8.7) |
|
55.0 |
Income/(loss) before income taxes |
|
15,000 |
|
10,597 |
|
14,507 |
|
(14,728) |
|
5,513 |
|
41.6 |
|
172.1 |
Income tax expense/ (benefit) |
|
3,766 |
|
2,413 |
|
4,017 |
|
(4,991) |
|
1,495 |
|
56.1 |
|
151.9 |
Net income/ (loss) |
|
$ 11,234 |
|
$ 8,184 |
|
$ 10,490 |
|
$ (9,737) |
|
$ 4,018 |
|
37.3 |
|
179.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.77 % |
|
0.57 % |
|
0.72 % |
|
(0.67) % |
|
0.45 % |
|
20 bp |
|
32 bp |
Return on average assets excluding amortization of intangibles, fraud losses and merger related |
|
0.91 |
|
0.94 |
|
0.88 |
|
0.01 |
|
0.59 |
|
(3) |
|
32 |
Return on average equity |
|
8.70 |
|
6.38 |
|
8.21 |
|
(7.25) |
|
4.49 |
|
232 |
|
421 |
Return on average tangible equity - Non-GAAP (1), (2) |
|
12.85 |
|
13.39 |
|
12.88 |
|
1.74 |
|
7.16 |
|
(54) |
|
569 |
Net interest margin |
|
3.11 |
|
3.08 |
|
3.09 |
|
3.35 |
|
2.68 |
|
3 |
|
43 |
Efficiency ratio - GAAP |
|
66.23 |
|
76.93 |
|
68.61 |
|
77.81 |
|
77.76 |
|
(1,070) |
|
(1,153) |
Efficiency ratio - Non-GAAP (1) |
|
61.05 |
|
62.37 |
|
61.99 |
|
47.19 |
|
71.75 |
|
(132) |
|
(1,070) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income/(loss) per common share |
|
$ 0.34 |
|
$ 0.25 |
|
$ 0.32 |
|
$ (0.29) |
|
$ 0.20 |
|
35.3 % |
|
69.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per common share |
|
0.12 |
|
0.12 |
|
0.12 |
|
0.12 |
|
0.12 |
|
— |
|
— |
Book value per common share at period end |
|
15.74 |
|
15.51 |
|
15.41 |
|
15.14 |
|
18.24 |
|
1.5 |
|
(13.7) |
Tangible book value per common share at period end - Non-GAAP (1) |
|
12.54 |
|
12.24 |
|
12.06 |
|
11.70 |
|
14.83 |
|
2.5 |
|
(15.4) |
Market value at period end |
|
11.45 |
|
11.50 |
|
14.25 |
|
10.52 |
|
11.56 |
|
(0.4) |
|
(1.0) |
Market range: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
11.90 |
|
14.38 |
|
14.51 |
|
13.37 |
|
14.45 |
|
(17.3) |
|
(17.7) |
Low |
|
10.06 |
|
10.56 |
|
9.66 |
|
10.27 |
|
10.65 |
|
(4.7) |
|
(5.5) |
____________________________________ |
|
(1) |
See the reconciliation table (Non-GAAP) that begins on page 24. |
(2) |
This ratio excludes merger related expenses (Non-GAAP) on page 24. |
Shore Bancshares, Inc. |
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
|
2nd Quarter |
|
1st Quarter |
|
4th Quarter |
|
3rd Quarter |
|
2nd Quarter |
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
compared to |
|
compared to |
(Dollars in thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2024 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ 4,706,510 |
|
$ 4,655,183 |
|
$ 4,639,467 |
|
$ 4,562,748 |
|
$ 2,709,944 |
|
1.10 % |
|
73.68 % |
Investment securities |
|
706,079 |
|
655,323 |
|
619,920 |
|
778,744 |
|
645,842 |
|
7.75 |
|
9.33 |
Earning assets |
|
5,459,961 |
|
5,387,782 |
|
5,339,833 |
|
5,404,572 |
|
3,369,183 |
|
1.34 |
|
62.06 |
Assets |
|
5,839,328 |
|
5,774,824 |
|
5,745,440 |
|
5,769,312 |
|
3,596,311 |
|
1.12 |
|
62.37 |
Deposits |
|
5,064,974 |
|
5,142,658 |
|
5,136,818 |
|
5,066,886 |
|
2,908,662 |
|
(1.51) |
|
74.13 |
Short-term and Long Term FHLB advances |
|
143,769 |
|
4,000 |
|
1,141 |
|
70,348 |
|
261,797 |
|
3494.23 |
|
(45.08) |
Subordinated Debt & TRUPS |
|
72,680 |
|
72,418 |
|
72,155 |
|
71,907 |
|
43,185 |
|
0.36 |
|
68.30 |
Stockholders' equity |
|
519,478 |
|
515,976 |
|
507,040 |
|
533,114 |
|
363,225 |
|
0.68 |
|
43.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge offs |
|
$ 886 |
|
$ 565 |
|
$ 500 |
|
$ 1,449 |
|
$ 50 |
|
56.81 % |
|
1,672.00 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ 14,837 |
|
$ 12,776 |
|
$ 12,784 |
|
$ 8,982 |
|
$ 3,481 |
|
16.13 % |
|
326.23 % |
Loans 90 days past due and still accruing |
|
414 |
|
1,560 |
|
738 |
|
2,149 |
|
1,065 |
|
(73.46) |
|
(61.13) |
Other real estate owned and repossessed property |
|
3,126 |
|
2,024 |
|
179 |
|
179 |
|
179 |
|
54.45 |
|
1,646.37 |
Total nonperforming assets |
|
$ 18,377 |
|
$ 16,360 |
|
$ 13,701 |
|
$ 11,310 |
|
$ 4,725 |
|
12.33 |
|
288.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shore Bancshares, Inc. |
||||||||||||||
|
||||||||||||||
|
||||||||||||||
|
|
2nd Quarter |
|
1st Quarter |
|
4th Quarter |
|
3rd Quarter |
|
2nd Quarter |
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
compared to |
|
compared to |
(Dollars in thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2024 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to assets |
|
8.92 % |
|
8.84 % |
|
8.50 % |
|
8.79 % |
|
9.97 % |
|
8 bp |
|
(105) bp |
Period-end tangible equity to tangible assets - Non-GAAP (1) |
|
7.23 |
|
7.11 |
|
6.78 |
|
6.93 |
|
8.26 |
|
12 |
|
(103) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs to average loans |
|
0.08 % |
|
0.05 % |
|
0.04 % |
|
0.13 % |
|
0.01 % |
|
3 bp |
|
7 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses as a percent of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans (3) |
|
1.24 % |
|
1.23 % |
|
1.24 % |
|
1.24 % |
|
1.05 % |
|
1 bp |
|
19 bp |
Period-end loans (4) |
|
1.24 |
|
1.23 |
|
1.24 |
|
1.24 |
|
1.05 |
|
1 |
|
19 |
Nonaccrual loans |
|
394.14 |
|
448.78 |
|
448.62 |
|
635.17 |
|
833.50 |
|
(5,464) |
|
(43,936) |
Nonperforming assets |
|
318.21 |
|
350.46 |
|
418.59 |
|
504.43 |
|
614.05 |
|
(3,225) |
|
(29,584) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
0.32 % |
|
0.27 % |
|
0.28 % |
|
0.19 % |
|
0.13 % |
|
5 bp |
|
19 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total loans, other real estate owned, and repossessed property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets |
|
0.39 % |
|
0.35 % |
|
0.30 % |
|
0.24 % |
|
0.17 % |
|
4 bp |
|
22 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
0.25 % |
|
0.22 % |
|
0.21 % |
|
0.16 % |
|
0.10 % |
|
3 bp |
|
15 bp |
Nonperforming assets |
|
0.31 |
|
0.28 |
|
0.23 |
|
0.20 |
|
0.13 |
|
3 |
|
18 |
____________________________________ |
|
(1) |
See the reconciliation table (Non-GAAP) that begins on page 24. |
(2) |
This ratio excludes merger related expenses (Non-GAAP) on page 24. |
(3) |
Includes all loans held for investment, including PPP loan balances for all periods shown. |
(4) |
For 2023, this ratio excludes only PPP loans given the Company's adoption of the CECL standard. |
Shore Bancshares, Inc. |
||||||||||||||
Consolidated Balance Sheets (Unaudited) |
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to |
|
compared to |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ 50,090 |
|
$ 43,079 |
|
$ 63,172 |
|
$ 68,097 |
|
$ 35,423 |
|
(20.7) % |
|
41.4 % |
Interest-bearing deposits with other banks |
|
88,793 |
|
71,481 |
|
309,241 |
|
40,612 |
|
10,404 |
|
(71.3) |
|
753.5 |
Cash and cash equivalents |
|
138,883 |
|
114,560 |
|
372,413 |
|
108,709 |
|
45,827 |
|
(62.7) |
|
203.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale (at fair value) |
|
131,594 |
|
179,496 |
|
110,521 |
|
79,143 |
|
78,069 |
|
19.1 |
|
68.6 |
Investment securities held to maturity (net of allowance for credit losses of |
|
499,431 |
|
503,822 |
|
513,188 |
|
523,051 |
|
536,970 |
|
(2.7) |
|
(7.0) |
Equity securities, at fair value |
|
5,699 |
|
5,681 |
|
5,703 |
|
5,434 |
|
1,245 |
|
(0.1) |
|
357.8 |
Restricted securities |
|
21,725 |
|
17,863 |
|
17,900 |
|
13,361 |
|
21,208 |
|
21.4 |
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale, at fair value |
|
27,829 |
|
13,767 |
|
8,782 |
|
14,725 |
|
6,845 |
|
216.9 |
|
306.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
4,705,737 |
|
4,648,725 |
|
4,641,010 |
|
4,617,719 |
|
2,753,223 |
|
1.4 |
|
70.9 |
Less: allowance for credit losses |
|
(58,478) |
|
(57,336) |
|
(57,351) |
|
(57,051) |
|
(29,014) |
|
(2.0) |
|
(101.6) |
Loans, net |
|
4,647,259 |
|
4,591,389 |
|
4,583,659 |
|
4,560,668 |
|
2,724,209 |
|
1.4 |
|
70.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net |
|
82,176 |
|
83,084 |
|
82,386 |
|
81,149 |
|
51,036 |
|
(0.3) |
|
61.0 |
|
|
63,266 |
|
63,266 |
|
63,266 |
|
63,266 |
|
63,266 |
|
— |
|
— |
Other intangible assets, net |
|
42,945 |
|
45,515 |
|
48,090 |
|
50,685 |
|
4,671 |
|
(10.7) |
|
819.4 |
Other real estate owned, net |
|
179 |
|
179 |
|
179 |
|
179 |
|
179 |
|
— |
|
— |
Repossessed property, net |
|
1,560 |
|
1,845 |
|
— |
|
— |
|
— |
|
— |
|
— |
Assets held for sale |
|
1,387 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Mortgage servicing rights, at fair value |
|
5,995 |
|
5,821 |
|
5,926 |
|
5,890 |
|
5,466 |
|
1.2 |
|
9.7 |
Right of use assets, net |
|
11,762 |
|
12,153 |
|
12,487 |
|
12,741 |
|
9,077 |
|
(5.8) |
|
29.6 |
Cash surrender value on life insurance |
|
102,969 |
|
102,321 |
|
101,704 |
|
100,950 |
|
60,150 |
|
1.2 |
|
71.2 |
Accrued interest receivable |
|
19,641 |
|
19,541 |
|
19,217 |
|
15,683 |
|
8,778 |
|
2.2 |
|
123.8 |
Deferred income taxes |
|
36,078 |
|
38,978 |
|
40,707 |
|
45,346 |
|
10,879 |
|
(11.4) |
|
231.6 |
Other assets |
|
23,639 |
|
26,423 |
|
24,790 |
|
24,392 |
|
13,756 |
|
(4.6) |
|
71.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ 5,864,017 |
|
$ 5,825,704 |
|
$ 6,010,918 |
|
$ 5,705,372 |
|
$ 3,641,631 |
|
(2.4) |
|
61.0 |
Shore Bancshares, Inc. |
||||||||||||||
Consolidated Balance Sheets (Unaudited) - Continued |
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to |
|
compared to |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ 1,587,252 |
|
$ 1,200,680 |
|
$ 1,258,037 |
|
$ 1,211,401 |
|
$ 778,963 |
|
26.2 % |
|
103.8 |
Interest-bearing deposits |
|
3,561,633 |
|
3,983,599 |
|
4,128,083 |
|
3,897,343 |
|
2,158,563 |
|
(13.7) |
|
65.0 |
Total deposits |
|
5,148,885 |
|
5,184,279 |
|
5,386,120 |
|
5,108,744 |
|
2,937,526 |
|
(4.4) |
|
75.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from FHLB - short-term |
|
31,000 |
|
— |
|
— |
|
— |
|
276,000 |
|
— |
|
(88.8) |
Advances from FHLB - long-term |
|
50,000 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS") |
|
29,316 |
|
29,237 |
|
29,158 |
|
29,079 |
|
18,492 |
|
0.5 |
|
58.5 |
Subordinated debt |
|
43,504 |
|
43,322 |
|
43,139 |
|
42,956 |
|
24,735 |
|
0.8 |
|
75.9 |
Total borrowings |
|
153,820 |
|
72,559 |
|
72,297 |
|
72,035 |
|
319,227 |
|
112.8 |
|
(51.8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities |
|
12,189 |
|
12,552 |
|
12,857 |
|
13,082 |
|
9,392 |
|
(5.3) |
|
29.8 |
Accrued expenses and other liabilities |
|
26,340 |
|
41,086 |
|
28,509 |
|
9,933 |
|
12,346 |
|
(5.3) |
|
113.3 |
Total liabilities |
|
5,341,234 |
|
5,310,476 |
|
5,499,783 |
|
5,203,794 |
|
3,278,491 |
|
(3.0) |
|
62.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value |
|
333 |
|
332 |
|
332 |
|
331 |
|
199 |
|
0.3 |
|
67.3 |
Additional paid in capital |
|
356,994 |
|
356,464 |
|
356,007 |
|
355,575 |
|
202,008 |
|
0.3 |
|
76.7 |
Retained earnings |
|
173,716 |
|
166,490 |
|
162,290 |
|
155,781 |
|
169,494 |
|
6.9 |
|
2.5 |
Accumulated other comprehensive loss |
|
(8,260) |
|
(8,058) |
|
(7,494) |
|
(10,109) |
|
(8,561) |
|
(9.5) |
|
3.5 |
Total stockholders' equity |
|
522,783 |
|
515,228 |
|
511,135 |
|
501,578 |
|
363,140 |
|
2.3 |
|
44.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
Total liabilities and stockholders' equity |
|
$ 5,864,017 |
|
$ 5,825,704 |
|
$ 6,010,918 |
|
$ 5,705,372 |
|
$ 3,641,631 |
|
(2.5) |
|
61.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end common shares outstanding |
|
33,215 |
|
33,211 |
|
33,162 |
|
33,136 |
|
19,907 |
|
0.2 |
|
66.8 |
Book value per common share |
|
$ 15.74 |
|
$ 15.51 |
|
$ 15.41 |
|
$ 15.14 |
|
$ 18.24 |
|
2.1 |
|
(13.7) |
Shore Bancshares, Inc. |
||||||||||||||
Consolidated Statements of |
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to |
|
compared to |
(In thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2024 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ 67,292 |
|
$ 65,754 |
|
$ 65,914 |
|
$ 64,869 |
|
$ 32,729 |
|
2.3 % |
|
105.6 % |
Interest on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
5,230 |
|
4,419 |
|
3,992 |
|
5,047 |
|
3,729 |
|
18.4 |
|
40.3 |
Tax-exempt |
|
6 |
|
6 |
|
6 |
|
27 |
|
5 |
|
— |
|
20.0 |
Interest on federal funds sold |
|
— |
|
— |
|
— |
|
92 |
|
— |
|
— |
|
— |
Interest on deposits with other banks |
|
578 |
|
960 |
|
1,224 |
|
1,213 |
|
170 |
|
(39.8) |
|
240.0 |
Total interest income |
|
73,106 |
|
71,139 |
|
71,136 |
|
71,248 |
|
36,633 |
|
2.8 |
|
99.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
27,585 |
|
28,497 |
|
28,133 |
|
23,473 |
|
9,914 |
|
(3.2) |
|
178.2 |
Interest on short-term borrowings |
|
1,584 |
|
56 |
|
16 |
|
692 |
|
3,449 |
|
2728.6 |
|
(54.1) |
Interest on long-term borrowings |
|
1,797 |
|
1,451 |
|
1,462 |
|
1,461 |
|
776 |
|
23.9 |
|
131.6 |
Total interest expense |
|
30,966 |
|
30,004 |
|
29,611 |
|
25,626 |
|
14,139 |
|
3.2 |
|
119.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
42,140 |
|
41,135 |
|
41,525 |
|
45,622 |
|
22,494 |
|
2.4 |
|
87.3 |
Provision for credit losses |
|
2,081 |
|
407 |
|
896 |
|
28,176 |
|
667 |
|
411.3 |
|
212.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
|
40,059 |
|
40,728 |
|
40,629 |
|
17,446 |
|
21,827 |
|
(1.6) |
|
83.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,493 |
|
1,507 |
|
1,519 |
|
1,505 |
|
1,264 |
|
(0.9) |
|
18.1 |
Trust and investment fee income |
|
896 |
|
734 |
|
844 |
|
1,933 |
|
399 |
|
22.1 |
|
124.6 |
Loss on sales and calls of investment securities |
|
— |
|
— |
|
— |
|
(2,166) |
|
— |
|
— |
|
— |
Interchange credits |
|
1,717 |
|
1,587 |
|
1,633 |
|
1,557 |
|
1,311 |
|
8.2 |
|
31.0 |
Mortgage-banking revenue |
|
1,983 |
|
801 |
|
1,105 |
|
1,377 |
|
1,054 |
|
147.6 |
|
88.1 |
|
|
165 |
|
78 |
|
139 |
|
89 |
|
186 |
|
111.5 |
|
(11.3) |
Bargain purchase gain |
|
— |
|
— |
|
— |
|
8,816 |
|
— |
|
— |
|
— |
Other noninterest income |
|
2,186 |
|
1,860 |
|
2,308 |
|
1,873 |
|
1,080 |
|
17.5 |
|
102.4 |
Total noninterest income |
|
$ 8,440 |
|
$ 6,567 |
|
$ 7,548 |
|
$ 14,984 |
|
$ 5,294 |
|
28.5 |
|
59.4 |
Shore Bancshares, Inc. |
||||||||||||||
Consolidated Statements of |
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to |
|
compared to |
(In thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2024 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages |
|
$ 13,307 |
|
$ 11,852 |
|
$ 12,823 |
|
$ 14,183 |
|
$ 8,955 |
|
12.3 % |
|
48.6 % |
Employee benefits |
|
3,593 |
|
4,097 |
|
3,389 |
|
3,607 |
|
2,440 |
|
(12.3) |
|
47.3 |
Occupancy expense |
|
2,432 |
|
2,416 |
|
2,328 |
|
2,245 |
|
1,599 |
|
0.7 |
|
52.1 |
Furniture and equipment expense |
|
900 |
|
904 |
|
790 |
|
750 |
|
477 |
|
(0.4) |
|
88.7 |
Data processing |
|
2,978 |
|
2,867 |
|
2,762 |
|
2,485 |
|
1,739 |
|
3.9 |
|
71.3 |
Directors' fees |
|
359 |
|
295 |
|
426 |
|
295 |
|
185 |
|
21.7 |
|
94.1 |
Amortization of intangible assets |
|
2,569 |
|
2,576 |
|
2,595 |
|
2,634 |
|
435 |
|
(0.3) |
|
490.6 |
|
|
1,089 |
|
1,150 |
|
1,733 |
|
618 |
|
758 |
|
(5.3) |
|
43.7 |
Other real estate owned expenses, net |
|
— |
|
— |
|
— |
|
2 |
|
— |
|
— |
|
— |
Legal and professional fees |
|
1,354 |
|
1,599 |
|
1,411 |
|
1,217 |
|
959 |
|
(15.3) |
|
41.2 |
Fraud losses (1) |
|
62 |
|
4,502 |
|
503 |
|
262 |
|
47 |
|
(98.6) |
|
31.9 |
Merger related expenses |
|
— |
|
— |
|
602 |
|
14,866 |
|
1,197 |
|
— |
|
(100.0) |
Other noninterest expenses |
|
4,856 |
|
4,440 |
|
4,308 |
|
3,994 |
|
2,817 |
|
9.4 |
|
72.4 |
Total noninterest expense |
|
33,499 |
|
36,698 |
|
33,670 |
|
47,158 |
|
21,608 |
|
(8.7) |
|
55.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
15,000 |
|
10,597 |
|
14,507 |
|
(14,728) |
|
5,513 |
|
41.6 |
|
172.1 |
Income tax expense/(benefit) |
|
3,766 |
|
2,413 |
|
4,017 |
|
(4,991) |
|
1,495 |
|
56.1 |
|
151.9 |
NET INCOME/(LOSS) |
|
$ 11,234 |
|
$ 8,184 |
|
$ 10,490 |
|
$ (9,737) |
|
$ 4,018 |
|
37.3 |
|
179.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic and diluted |
|
33,215 |
|
33,337 |
|
33,322 |
|
33,246 |
|
19,903 |
|
(0.4) |
|
66.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income/(loss) per common share |
|
$ 0.34 |
|
$ 0.25 |
|
$ 0.32 |
|
$ (0.29) |
|
$ 0.20 |
|
35.3 |
|
69.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per common share |
|
0.12 |
|
0.12 |
|
0.12 |
|
0.12 |
|
0.12 |
|
— |
|
— |
____________________________________ |
|
(1) |
Fraud losses includes |
Shore Bancshares, Inc. |
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
|
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
||||||||||||||||||||
(Dollars in thousands) |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
Average |
|
Interest |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2), (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer real estate |
|
$ 1,388,168 |
|
$ 19,278 |
|
5.59 % |
|
$ 1,361,636 |
|
$ 18,492 |
|
5.46 % |
|
$ 1,331,150 |
|
$ 18,653 |
|
5.56 % |
|
$ 1,141,707 |
|
$ 14,548 |
|
5.06 % |
|
$ 946,545 |
|
$ 10,876 |
|
4.61 % |
Commercial real estate |
|
2,738,693 |
|
39,370 |
|
5.78 |
|
2,722,600 |
|
38,604 |
|
5.70 |
|
2,728,094 |
|
38,730 |
|
5.63 |
|
2,831,569 |
|
40,536 |
|
5.68 |
|
1,292,406 |
|
15,620 |
|
4.85 |
Commercial |
|
216,809 |
|
3,926 |
|
7.28 |
|
219,884 |
|
4,097 |
|
7.49 |
|
221,342 |
|
4,295 |
|
7.70 |
|
233,756 |
|
5,315 |
|
9.02 |
|
137,554 |
|
2,177 |
|
6.35 |
Consumer |
|
327,781 |
|
4,265 |
|
5.23 |
|
329,118 |
|
4,272 |
|
5.22 |
|
333,807 |
|
3,859 |
|
4.59 |
|
332,486 |
|
4,183 |
|
4.99 |
|
323,798 |
|
3,983 |
|
4.93 |
State and political |
|
2,331 |
|
30 |
|
5.18 |
|
1,473 |
|
16 |
|
4.37 |
|
1,290 |
|
13 |
|
4.00 |
|
929 |
|
10 |
|
4.27 |
|
900 |
|
8 |
|
3.57 |
Credit Cards |
|
8,378 |
|
201 |
|
9.65 |
|
7,457 |
|
167 |
|
9.01 |
|
6,320 |
|
166 |
|
10.42 |
|
6,164 |
|
149 |
|
9.59 |
|
— |
|
— |
|
— |
Other |
|
24,350 |
|
302 |
|
4.99 |
|
13,015 |
|
183 |
|
5.66 |
|
17,464 |
|
277 |
|
6.29 |
|
16,137 |
|
201 |
|
4.94 |
|
8,741 |
|
116 |
|
5.32 |
Total Loans |
|
4,706,510 |
|
67,372 |
|
5.76 |
|
4,655,183 |
|
65,831 |
|
5.69 |
|
4,639,467 |
|
65,993 |
|
5.64 |
|
4,562,748 |
|
64,942 |
|
5.65 |
|
2,709,944 |
|
32,780 |
|
4.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
705,421 |
|
5,230 |
|
2.97 |
|
654,663 |
|
4,419 |
|
2.70 |
|
619,259 |
|
3,992 |
|
2.58 |
|
778,081 |
|
5,047 |
|
2.59 |
|
645,178 |
|
3,729 |
|
2.31 |
Tax-exempt (1) |
|
658 |
|
8 |
|
4.86 |
|
660 |
|
8 |
|
4.85 |
|
661 |
|
8 |
|
4.84 |
|
663 |
|
34 |
|
20.51 |
|
664 |
|
6 |
|
3.61 |
Federal funds sold |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
7,533 |
|
92 |
|
4.85 |
|
— |
|
— |
|
— |
Interest-bearing deposits |
|
47,372 |
|
578 |
|
4.91 |
|
77,276 |
|
960 |
|
5.00 |
|
80,446 |
|
1,224 |
|
6.04 |
|
55,547 |
|
1,213 |
|
8.66 |
|
13,397 |
|
170 |
|
5.09 |
Total earning assets |
|
5,459,961 |
|
73,188 |
|
5.39 |
|
5,387,782 |
|
71,218 |
|
5.32 |
|
5,339,833 |
|
71,217 |
|
5.29 |
|
5,404,572 |
|
71,328 |
|
5.24 |
|
3,369,183 |
|
36,685 |
|
4.37 |
Cash and due from banks |
|
45,141 |
|
|
|
|
|
49,499 |
|
|
|
|
|
63,506 |
|
|
|
|
|
51,714 |
|
|
|
|
|
29,923 |
|
|
|
|
Other assets |
|
391,854 |
|
|
|
|
|
395,023 |
|
|
|
|
|
399,409 |
|
|
|
|
|
359,726 |
|
|
|
|
|
225,935 |
|
|
|
|
Allowance for credit losses |
|
(57,628) |
|
|
|
|
|
(57,480) |
|
|
|
|
|
(57,308) |
|
|
|
|
|
(46,700) |
|
|
|
|
|
(28,730) |
|
|
|
|
Total assets |
|
$ 5,839,328 |
|
|
|
|
|
$ 5,774,824 |
|
|
|
|
|
$ 5,745,440 |
|
|
|
|
|
$ 5,769,312 |
|
|
|
|
|
$ 3,596,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ 711,138 |
|
$ 5,550 |
|
3.14 % |
|
$ 1,110,524 |
|
$ 6,362 |
|
2.30 % |
|
$ 1,117,117 |
|
$ 6,673 |
|
2.37 % |
|
$ 1,056,956 |
|
$ 6,659 |
|
2.50 % |
|
$ 685,674 |
|
$ 3,913 |
|
2.29 % |
Money market and savings deposits |
|
1,690,157 |
|
10,291 |
|
2.45 |
|
1,669,074 |
|
10,160 |
|
2.45 |
|
1,605,930 |
|
8,330 |
|
2.06 |
|
1,572,920 |
|
6,810 |
|
1.72 |
|
907,068 |
|
2,526 |
|
1.12 |
Brokered deposits |
|
7,753 |
|
94 |
|
4.88 |
|
20,465 |
|
251 |
|
4.93 |
|
92,840 |
|
1,347 |
|
5.76 |
|
98,649 |
|
1,225 |
|
4.93 |
|
— |
|
— |
|
— |
Certificates of deposit |
|
758,211 |
|
7,581 |
|
4.02 |
|
762,210 |
|
7,675 |
|
4.05 |
|
701,051 |
|
6,898 |
|
3.90 |
|
706,642 |
|
6,272 |
|
3.52 |
|
312,367 |
|
2,337 |
|
3.00 |
Other time deposits |
|
417,331 |
|
4,069 |
|
3.92 |
|
417,362 |
|
4,049 |
|
3.90 |
|
391,820 |
|
4,885 |
|
4.95 |
|
285,743 |
|
2,507 |
|
3.48 |
|
225,495 |
|
1,138 |
|
2.02 |
Interest-bearing deposits (4) |
|
3,584,590 |
|
27,585 |
|
3.10 |
|
3,979,635 |
|
28,497 |
|
2.88 |
|
3,908,758 |
|
28,133 |
|
2.86 |
|
3,720,910 |
|
23,473 |
|
2.50 |
|
2,130,604 |
|
9,914 |
|
1.87 |
Advances from FHLB - short-term |
|
113,549 |
|
1,584 |
|
5.61 |
|
4,000 |
|
56 |
|
5.63 |
|
1,141 |
|
16 |
|
5.56 |
|
70,348 |
|
692 |
|
3.90 |
|
261,797 |
|
3,449 |
|
5.28 |
Advances from FHLB - long-term |
|
30,220 |
|
346 |
|
4.60 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Subordinated debt and |
|
72,680 |
|
1,451 |
|
8.03 |
|
72,418 |
|
1,451 |
|
8.06 |
|
72,155 |
|
1,462 |
|
8.04 |
|
71,907 |
|
1,461 |
|
8.06 |
|
43,185 |
|
776 |
|
7.21 |
Total interest-bearing liabilities |
|
3,801,039 |
|
30,966 |
|
3.28 |
|
4,056,053 |
|
30,004 |
|
2.98 |
|
3,982,054 |
|
29,611 |
|
2.95 |
|
3,863,165 |
|
25,626 |
|
2.63 |
|
2,435,586 |
|
14,139 |
|
2.33 |
Noninterest-bearing deposits |
|
1,480,384 |
|
|
|
|
|
1,163,023 |
|
|
|
|
|
1,228,060 |
|
|
|
|
|
1,345,976 |
|
|
|
|
|
778,058 |
|
|
|
|
Accrued expenses and other liabilities |
|
38,427 |
|
|
|
|
|
39,772 |
|
|
|
|
|
28,286 |
|
|
|
|
|
27,057 |
|
|
|
|
|
19,442 |
|
|
|
|
Stockholders' equity |
|
519,478 |
|
|
|
|
|
515,976 |
|
|
|
|
|
507,040 |
|
|
|
|
|
533,114 |
|
|
|
|
|
363,225 |
|
|
|
|
Total liabilities and stockholders' equity |
|
$ 5,839,328 |
|
|
|
|
|
$ 5,774,824 |
|
|
|
|
|
$ 5,745,440 |
|
|
|
|
|
$ 5,769,312 |
|
|
|
|
|
$ 3,596,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ 42,222 |
|
|
|
|
|
$ 41,214 |
|
|
|
|
|
$ 41,606 |
|
|
|
|
|
$ 45,702 |
|
|
|
|
|
$ 22,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
2.11 % |
|
|
|
|
|
2.34 % |
|
|
|
|
|
2.34 % |
|
|
|
|
|
2.61 % |
|
|
|
|
|
2.04 % |
Net interest margin |
|
|
|
|
|
3.11 % |
|
|
|
|
|
3.08 % |
|
|
|
|
|
3.09 % |
|
|
|
|
|
3.35 % |
|
|
|
|
|
2.68 % |
Cost of Funds |
|
|
|
|
|
2.36 % |
|
|
|
|
|
2.31 % |
|
|
|
|
|
2.25 % |
|
|
|
|
|
1.95 % |
|
|
|
|
|
1.76 % |
Cost of Deposits |
|
|
|
|
|
2.19 % |
|
|
|
|
|
2.23 % |
|
|
|
|
|
2.17 % |
|
|
|
|
|
1.84 % |
|
|
|
|
|
1.37 % |
Cost of Debt |
|
|
|
|
|
6.28 % |
|
|
|
|
|
7.93 % |
|
|
|
|
|
8.00 % |
|
|
|
|
|
6.00 % |
|
|
|
|
|
5.56 % |
____________________________________ |
|
(1) |
All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense. |
(2) |
Average loan balances include nonaccrual loans. |
(3) |
Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were |
(4) |
Interest expense on deposits and borrowing includes amortization of deposit premiums and amortization of borrowing fair value adjustment. There were |
Shore Bancshares, Inc. |
||||||||||||||
Reconciliation of Generally Accepted Accounting Principles (GAAP) and Non-GAAP Measures (Unaudited) |
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
YTD |
(In thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following reconciles return on average assets, average equity and return on average tangible equity (Note 1): |
||||||||||||||
Net income (loss) |
|
$ 11,234 |
|
$ 8,184 |
|
$ 10,490 |
|
$ (9,737) |
|
$ 4,018 |
|
$ 19,418 |
|
$ 10,475 |
Net income (loss) - annualized (A) |
|
$ 45,183 |
|
$ 32,916 |
|
$ 41,618 |
|
$ (38,632) |
|
$ 16,295 |
|
$ 39,049 |
|
$ 21,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ 11,234 |
|
$ 8,184 |
|
$ 10,490 |
|
$ (9,737) |
|
$ 4,018 |
|
$ 19,418 |
|
$ 10,475 |
Add: Amortization of intangible assets, net of tax |
|
1,924 |
|
1,989 |
|
1,876 |
|
1,741 |
|
317 |
|
3,903 |
|
637 |
Add: Merger Expenses, net of tax |
|
— |
|
— |
|
435 |
|
9,828 |
|
872 |
|
— |
|
1,373 |
Add: Credit Card Fraud Losses, net of tax |
|
— |
|
3,339 |
|
— |
|
— |
|
— |
|
3,279 |
|
— |
Net income, excluding net amortization of intangible |
|
13,158 |
|
13,512 |
|
12,801 |
|
1,832 |
|
5,207 |
|
26,600 |
|
12,485 |
Net income, excluding net amortization of intangible |
|
$ 52,921 |
|
$ 54,345 |
|
$ 50,787 |
|
$ 7,268 |
|
$ 21,121 |
|
$ 53,492 |
|
$ 25,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (GAAP) |
|
0.77 % |
|
0.57 % |
|
0.72 % |
|
(0.67) % |
|
0.45 % |
|
0.67 % |
|
0.59 % |
Return on average assets excluding net amortization of |
|
0.91 % |
|
0.94 % |
|
0.88 % |
|
0.01 % |
|
0.59 % |
|
0.92 % |
|
0.71 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ 5,839,328 |
|
$ 5,774,824 |
|
$ 5,745,440 |
|
$ 5,769,312 |
|
$ 3,596,311 |
|
$ 5,807,076 |
|
$ 3,551,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity (C) |
|
$ 519,478 |
|
$ 515,976 |
|
$ 507,040 |
|
$ 533,114 |
|
$ 363,225 |
|
$ 517,727 |
|
$ 362,205 |
Less: Average goodwill and core deposit intangible |
|
(107,594) |
|
(110,167) |
|
(112,752) |
|
(115,604) |
|
(68,172) |
|
(108,881) |
|
(68,388) |
Average tangible equity (D) |
|
$ 411,884 |
|
$ 405,809 |
|
$ 394,288 |
|
$ 417,510 |
|
$ 295,053 |
|
$ 408,846 |
|
$ 293,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (GAAP) (A)/(C) |
|
8.70 % |
|
6.38 % |
|
8.21 % |
|
(7.25) % |
|
4.49 % |
|
7.54 % |
|
5.83 % |
Return on average tangible equity (Non-GAAP) (B)/(D) |
|
12.85 % |
|
13.39 % |
|
12.88 % |
|
1.74 % |
|
7.16 % |
|
13.08 % |
|
8.57 % |
Shore Bancshares, Inc. |
||||||||||||||
Reconciliation of Generally Accepted Accounting Principles (GAAP) and Non-GAAP Measures (Unaudited) - Continued |
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
YTD |
(In thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio (Note 2): |
||||||||||||||
Noninterest expense (E) |
|
$ 33,499 |
|
$ 36,698 |
|
$ 33,670 |
|
$ 47,158 |
|
$ 21,608 |
|
$ 70,197 |
|
$ 42,501 |
Less: Amortization of intangible assets |
|
(2,569) |
|
(2,576) |
|
(2,595) |
|
(2,634) |
|
(435) |
|
(5,145) |
|
(876) |
Less: Merger Expenses |
|
— |
|
— |
|
(602) |
|
(14,866) |
|
(1,197) |
|
— |
|
(1,888) |
Less: Credit Card Fraud Losses |
|
— |
|
(4,323) |
|
— |
|
— |
|
— |
|
(4,323) |
|
— |
Adjusted noninterest expense (F) |
|
$ 30,930 |
|
$ 29,799 |
|
$ 30,473 |
|
$ 29,658 |
|
$ 19,976 |
|
$ 60,729 |
|
$ 39,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (G) |
|
$ 42,140 |
|
$ 41,135 |
|
$ 41,525 |
|
$ 45,622 |
|
$ 22,494 |
|
$ 83,275 |
|
$ 48,158 |
Add: Taxable-equivalent adjustment |
|
82 |
|
79 |
|
81 |
|
80 |
|
51 |
|
161 |
|
92 |
Taxable-equivalent net interest income (H) |
|
$ 42,222 |
|
$ 41,214 |
|
$ 41,606 |
|
$ 45,702 |
|
$ 22,545 |
|
$ 83,436 |
|
$ 48,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (I) |
|
$ 8,440 |
|
$ 6,567 |
|
$ 7,548 |
|
$ 14,984 |
|
$ 5,294 |
|
$ 15,007 |
|
$ 10,628 |
Investment securities losses (gains) |
|
— |
|
— |
|
— |
|
2,166 |
|
— |
|
— |
|
— |
Less: Bargain purchase gain |
|
— |
|
— |
|
— |
|
(8,816) |
|
— |
|
— |
|
— |
Adjusted noninterest income (J) |
|
$ 8,440 |
|
$ 6,567 |
|
$ 7,548 |
|
$ 8,334 |
|
$ 5,294 |
|
$ 15,007 |
|
$ 10,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) (E)/(G)+(I) |
|
66.23 % |
|
76.93 % |
|
68.61 % |
|
77.81 % |
|
77.76 % |
|
71.42 % |
|
72.30 % |
Efficiency ratio (Non-GAAP) (F)/(H)+(J) |
|
61.05 % |
|
62.37 % |
|
61.99 % |
|
54.89 % |
|
71.76 % |
|
61.69 % |
|
67.49 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating expense to average assets (GAAP) |
|
1.73 % |
|
2.10 % |
|
1.80 % |
|
2.21 % |
|
1.82 % |
|
1.91 % |
|
1.81 % |
Net operating expense to average assets (Non-GAAP) |
|
1.55 % |
|
1.62 % |
|
1.58 % |
|
1.47 % |
|
1.64 % |
|
1.58 % |
|
1.65 % |
Shore Bancshares, Inc.
|
||||||||||
Reconciliation of Generally Accepted Accounting Principles (GAAP) and Non-GAAP Measures (Unaudited) - Continued |
||||||||||
|
||||||||||
(In thousands, except per share data) |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
|
|
|
|
|
|
|
|
|
|
The following reconciles book value per common share and tangible book value per common share (Note 1): |
||||||||||
Stockholders' equity (K) |
|
$ 522,783 |
|
$ 515,228 |
|
$ 511,135 |
|
$ 501,578 |
|
$ 363,140 |
Less: |
|
(106,211) |
|
(108,781) |
|
(111,356) |
|
(113,951) |
|
(67,937) |
Tangible equity (L) |
|
$ 416,572 |
|
$ 406,447 |
|
$ 399,779 |
|
$ 387,627 |
|
$ 295,203 |
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding (M) |
|
33,215 |
|
33,211 |
|
33,162 |
|
33,136 |
|
19,907 |
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (GAAP) (K)/(M) |
|
$ 15.74 |
|
$ 15.51 |
|
$ 15.41 |
|
$ 15.14 |
|
$ 18.24 |
Tangible book value per common share (Non-GAAP) (L)/(M) |
|
$ 12.54 |
|
$ 12.24 |
|
$ 12.06 |
|
$ 11.70 |
|
$ 14.83 |
|
|
|
|
|
|
|
|
|
|
|
The following reconciles equity to assets and tangible equity to tangible assets (Note 1): |
||||||||||
Stockholders' equity (N) |
|
$ 522,783 |
|
$ 515,228 |
|
$ 511,135 |
|
$ 501,578 |
|
$ 363,140 |
Less: |
|
(106,211) |
|
(108,781) |
|
(111,356) |
|
(113,951) |
|
(67,937) |
Tangible equity (O) |
|
$ 416,572 |
|
$ 406,447 |
|
$ 399,779 |
|
$ 387,627 |
|
$ 295,203 |
|
|
|
|
|
|
|
|
|
|
|
Assets (P) |
|
$ 5,864,017 |
|
$ 5,825,704 |
|
$ 6,010,918 |
|
$ 5,705,372 |
|
$ 3,641,631 |
Less: |
|
(106,211) |
|
(108,781) |
|
(111,356) |
|
(113,951) |
|
(67,937) |
Tangible assets (Q) |
|
$ 5,757,806 |
|
$ 5,716,923 |
|
$ 5,899,562 |
|
$ 5,591,421 |
|
$ 3,573,694 |
|
|
|
|
|
|
|
|
|
|
|
Period-end equity/assets (GAAP) (N)/(P) |
|
8.92 % |
|
8.84 % |
|
8.50 % |
|
8.79 % |
|
9.97 % |
Period-end tangible equity/tangible assets (Non-GAAP) (O)/(Q) |
|
7.23 % |
|
7.11 % |
|
6.78 % |
|
6.93 % |
|
8.26 % |
____________________________________ |
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. |
Shore Bancshares, Inc.
|
||||||||||||||||||||
Summary of Loan Portfolio (Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
Portfolio loans are summarized by loan type as follows: |
||||||||||||||||||||
|
||||||||||||||||||||
(Dollars in thousands) |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Portfolio Loans by Loan Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ 327,875 |
|
6.97 % |
|
$ 299,133 |
|
6.43 % |
|
$ 299,000 |
|
6.44 % |
|
$ 328,750 |
|
7.12 % |
|
$ 220,228 |
|
8.00 % |
Residential real estate |
|
1,539,590 |
|
32.72 % |
|
1,515,134 |
|
32.59 % |
|
1,490,438 |
|
32.11 % |
|
1,439,464 |
|
31.17 % |
|
938,151 |
|
34.07 % |
Commercial real estate |
|
2,287,497 |
|
48.60 % |
|
2,272,867 |
|
48.90 % |
|
2,286,154 |
|
49.27 % |
|
2,283,521 |
|
49.45 % |
|
1,130,346 |
|
41.06 % |
Commercial |
|
218,987 |
|
4.65 % |
|
229,594 |
|
4.94 % |
|
229,939 |
|
4.95 % |
|
229,474 |
|
4.97 % |
|
138,459 |
|
5.03 % |
Consumer |
|
324,480 |
|
6.90 % |
|
325,076 |
|
6.99 % |
|
328,896 |
|
7.09 % |
|
330,411 |
|
7.16 % |
|
326,039 |
|
11.84 % |
Credit Cards |
|
7,308 |
|
0.16 % |
|
6,921 |
|
0.15 % |
|
6,583 |
|
0.14 % |
|
6,099 |
|
0.13 % |
|
— |
|
— % |
Total loans |
|
4,705,737 |
|
100.00 % |
|
4,648,725 |
|
100.00 % |
|
4,641,010 |
|
100.00 % |
|
4,617,719 |
|
100.00 % |
|
2,753,223 |
|
100.00 % |
Less: Allowance for credit losses |
|
(58,478) |
|
|
|
(57,336) |
|
|
|
(57,351) |
|
|
|
(57,051) |
|
|
|
(29,014) |
|
|
Total loans, net |
|
$ 4,647,259 |
|
|
|
$ 4,591,389 |
|
|
|
$ 4,583,659 |
|
|
|
$ 4,560,668 |
|
|
|
$ 2,724,209 |
|
|
Shore Bancshares, Inc.
|
||||||||||
Classified Assets and Nonperforming Loans (Unaudited) |
||||||||||
|
||||||||||
Classified loans and nonperforming loans are summarized as follows: |
||||||||||
|
||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Classified Loans |
|
|
|
|
|
|
|
|
|
|
Substandard |
|
$ 17,409 |
|
$ 13,403 |
|
$ 14,673 |
|
$ 10,888 |
|
$ 13,108 |
Doubtful |
|
— |
|
— |
|
— |
|
— |
|
— |
Loss |
|
— |
|
— |
|
— |
|
— |
|
— |
Total Classified Loans |
|
$ 17,409 |
|
$ 13,403 |
|
$ 14,673 |
|
$ 10,888 |
|
$ 13,108 |
Special Mention Loans |
|
25,549 |
|
27,192 |
|
28,264 |
|
24,931 |
|
11,405 |
Total Classified and Special Mention Loans |
|
$ 42,958 |
|
$ 40,595 |
|
$ 42,937 |
|
$ 35,819 |
|
$ 24,513 |
|
|
|
|
|
|
|
|
|
|
|
Classified Loans |
|
$ 17,409 |
|
$ 13,403 |
|
$ 14,673 |
|
$ 10,888 |
|
$ 13,108 |
Other Real Estate Owned |
|
3,126 |
|
2,024 |
|
179 |
|
179 |
|
179 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
Total Classified Assets |
|
$ 20,535 |
|
$ 15,427 |
|
$ 14,852 |
|
$ 11,067 |
|
$ 13,287 |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual Loans |
|
$ 14,837 |
|
$ 12,776 |
|
$ 12,784 |
|
$ 8,982 |
|
$ 3,481 |
90+ Days Delinquent Accruing |
|
414 |
|
1,560 |
|
738 |
|
2,149 |
|
1,050 |
Accruing BEFDs Loans ("BEFDs") |
|
— |
|
— |
|
— |
|
— |
|
— |
Other Real Estate Owned ("OREO") |
|
3,126 |
|
2,024 |
|
179 |
|
179 |
|
179 |
Total Nonperforming Loans |
|
$ 18,377 |
|
$ 16,360 |
|
$ 13,701 |
|
$ 11,310 |
|
$ 4,710 |
Shore Bancshares, Inc. |
||||||||||||||||||||
Summary of Deposits (Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollars in thousands) |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
|
Balance |
|
% |
Noninterest-bearing demand |
|
$ 1,587,252 |
|
30.83 % |
|
$ 1,200,680 |
|
23.15 % |
|
$ 1,258,037 |
|
23.36 % |
|
$ 1,211,401 |
|
23.70 % |
|
$ 778,963 |
|
26.52 % |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
658,512 |
|
12.79 % |
|
1,101,954 |
|
21.26 % |
|
1,165,546 |
|
21.64 % |
|
1,210,051 |
|
23.69 % |
|
694,221 |
|
23.63 % |
Money market deposits |
|
1,337,274 |
|
25.97 % |
|
1,358,205 |
|
26.20 % |
|
1,430,603 |
|
26.56 % |
|
1,179,049 |
|
23.08 % |
|
600,724 |
|
20.45 % |
Savings |
|
352,069 |
|
6.84 % |
|
354,098 |
|
6.83 % |
|
347,324 |
|
6.45 % |
|
371,755 |
|
7.28 % |
|
270,884 |
|
9.22 % |
Certificates of deposit |
|
1,213,778 |
|
23.57 % |
|
1,169,342 |
|
22.56 % |
|
1,184,610 |
|
21.99 % |
|
1,136,488 |
|
22.25 % |
|
592,734 |
|
20.18 % |
Total interest-bearing |
|
3,561,633 |
|
69.17 % |
|
3,983,599 |
|
76.85 % |
|
4,128,083 |
|
76.64 % |
|
3,897,343 |
|
76.30 % |
|
2,158,563 |
|
73.48 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits |
|
$ 5,148,885 |
|
100.00 % |
|
$ 5,184,279 |
|
100.00 % |
|
$ 5,386,120 |
|
100.00 % |
|
$ 5,108,744 |
|
100.00 % |
|
$ 2,937,526 |
|
100.00 % |
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