EASTON,
Md., Jan. 26, 2023 /PRNewswire/ -- Shore
Bancshares, Inc. (NASDAQ - SHBI) (the "Company") reported net
income of $8.407 million or
$0.42 per diluted common share for
the fourth quarter of 2022, compared to net income of $9.658 million or $0.49 per diluted common share for the third
quarter of 2022, and net income of $2.723
million or $0.16 per diluted
common share for the fourth quarter of 2021. Net income for the
fiscal year of 2022 was $31.177
million or $1.57 per diluted
common share, compared to net income for the fiscal year of 2021 of
$15.368 million or $1.17 per diluted common share. Net income,
excluding merger related expenses, for the fourth quarter of 2022
was $9.123 million or $0.46 per diluted common share, compared to net
income, excluding merger related expenses, of $9.774 million or $0.49 per diluted common share for the third
quarter of 2022 and net income, excluding merger related expenses,
of $7.914 million or $0.46 per diluted common share for the fourth
quarter 2021. Net income, excluding merger related expenses, for
the fiscal year of 2022 was $32.728
million or $1.65 per diluted
common share compared to net income for the fiscal year of 2021 of
$21.237 million or $1.62 per diluted common share. On December 14, 2022, the Company and The Community
Financial Corporation ("TCFC") announced that they had entered into
a merger agreement pursuant to which TCFC will be merged with and
into the Company. The Company anticipates additional merger-related
expenses due to the pending TCFC acquisition.
When comparing net income, excluding merger related expenses,
for the fourth quarter of 2022 to the third quarter of 2022, net
income decreased $651 thousand due to
a decrease in net interest income of $372
thousand and an increase in noninterest expense of
$1.3 million partially offset by an
increase in noninterest income of $518
thousand and a decrease in provision for credit losses of
$225 thousand. When comparing net
income, excluding merger related expenses, for the fourth quarter
of 2022 to the fourth quarter of 2021, net income increased
$1.2 million primarily due to
increases in net interest income of $6.3
million and noninterest income of $733 thousand offset by increases in noninterest
expense of $4.2 million due to the
acquisition of Severn Bank ("Severn") in November of 2021.
"We are pleased to report our fourth quarter earnings and fiscal
year 2022 financial results," said Lloyd L. "Scott" Beatty, Jr.,
President and Chief Executive Officer. "In 2022, we experienced
significant loan growth of just over 20% and successful integration
of Severn. With the recent
announcement of our pending merger with TCFC, we expect the future
of the combined organizations to be very promising given our
ability to help customers with higher loan limits, make greater
investments in technology and increased career opportunities for
employees."
Balance Sheet Review
Total assets were $3.477 billion
at December 31, 2022, a $17.1 million, or less than 1.0%, increase when
compared to $3.460 billion at the end
of 2021. During 2022, the Company shifted its asset mix by
deploying cash and cash equivalents into higher yielding assets
which consisted of loans and investment securities. As of
December 31, 2022, the Company had 4
Paycheck Protection Program ("PPP') loans totaling $187 thousand that were outstanding.
Total deposits decreased $16.5
million, or less than 1%, when compared to December 31, 2021. The decrease in total deposits
was due to decreases in money market and savings accounts of
$85.7 million, noninterest-bearing
deposits of $65.5 million and time
deposits of $35.2 million, partially
offset by an increase in interest bearing checking accounts of
$170.0 million.
Total stockholders' equity increased $13.6 million, or 3.9%, when compared to
December 31, 2021, primarily due to
current year earnings, partially offset by an increase in
unrealized losses on available for sale securities of $9.1 million. At December
31, 2022, the ratio of total equity to total assets was
10.48% and the ratio of total tangible equity to total tangible
assets was 8.67% compared to 10.14% and 8.25% at the end of 2021,
respectively.
Review of Quarterly Financial Results
Net interest income was $26.9
million for the fourth quarter of 2022, compared to
$27.3 million for the third quarter
of 2022 and $20.6 million for the
fourth quarter of 2021. The decrease in net interest income when
compared to the third quarter of 2022 was primarily due to
increases in interest expense on interest-bearing deposits of
$2.0 million. In addition, the
decrease in the average balance on deposits with other banks of
$187.3 million resulted in a decrease
in interest income of $802 thousand,
partially offset by an increase in interest and fees on loans of
$1.7 million and interest on
investment securities of $759
thousand. The improvement in interest and fees on loans was
due to an increase in the average balance of loans of $140.0 million, or 6.0%. The decrease in interest
on deposits at other banks was due to the utilization of cash to
fund loan growth with higher yields. The increase in interest on
taxable investment securities was driven by an increase in the
rates of 33bps and an increase in the average balance within these
securities of $43.1 million, or
7.0%.
The increase in net interest income when compared to the fourth
quarter of 2021 was primarily due to increases in interest and fees
on loans of $7.1 million, interest on
taxable investment securities of $2.3
million and interest on deposits with other banks of
$495 thousand, partially offset by
expense increases in interest-bearing deposits of $3.3 million, short term borrowings of
$69 thousand and long-term borrowings
of $228 thousand.
The Company's net interest margin decreased to 3.35% for the
fourth quarter of 2022 from 3.38% for the third quarter of 2022 and
increased compared to 2.87% for the fourth quarter of 2021. The
decrease in net interest margin when compared to the third quarter
of 2022 was primarily due to higher rates paid on interest bearing
deposits and borrowings partially offset by higher yields on
earning assets. The increase in net interest margin compared to the
fourth quarter of 2021 was due to significantly higher volume as
well as improved yields on all earning assets.
The provision for credit losses was $450
thousand for the three months ended December 31, 2022. The comparable amounts were
$675 thousand and $(1.7) million for the three months ended
September 30, 2022, and December 31, 2021, respectively. The decrease in
the provision for credit losses during the fourth quarter of 2022
as compared to the prior quarters was primarily a result of
eliminating pandemic related qualitative reserves in the fourth
quarter of 2022. Net charge offs for the fourth quarter of 2022
were $84 thousand, compared to net
recoveries of $119 thousand for the
third quarter of 2022 and net recoveries of $142 thousand for the fourth quarter of 2021. The
ratio of the allowance for credit losses to period-end loans,
excluding PPP loans and acquired loans, was 0.78% at December 31, 2022, compared to 0.84% at
September 30, 2022, and 0.96% at
December 31, 2021. The decline in the
percentage of the allowance from the third quarter of 2022 was
primarily due to eliminating pandemic related qualitative reserves.
The decline in the percentage of the allowance from the fourth
quarter of 2021 was primarily the result of lower historical loss
experience as well as eliminating pandemic related qualitative
reserves.
At December 31, 2022 and
September 30, 2022, nonperforming
assets were $4.0 million and
$2.8 million, respectively. The
balance of nonperforming assets increased primarily due to an
increase in loans 90 days past due still accruing of $1.2 million at December
31, 2022 compared to September 30,
2022. When comparing the fourth quarter of 2022 to the
fourth quarter of 2021, nonperforming assets increased $902 thousand, or 29.6%, primarily due to
increases in loans 90 days past due and still accruing of
$1.3 million, or 262.4% which was a
result of growth and timing of matured loans. Accruing TDRs
decreased $1.3 million, or 22.3%,
compared to the fourth quarter of 2021. The ratio of nonperforming
assets and accruing TDRs to total assets at December 31, 2022, and September 30, 2022 was 0.24% and 0.21%
respectively, and was 0.25% at December 31,
2021. In addition, the ratio of accruing TDRs to total loans
at December 31, 2022 was 0.17%
compared to 0.19% at September 30,
2022 and 0.27% at December 31,
2021.
Total noninterest income for the fourth quarter of 2022
increased $518 thousand, or 9.7%,
when compared to the third quarter of 2022 and increased
$733 thousand, or 14.3%, when
compared to the fourth quarter of 2021. The increase compared to
the third quarter of 2022 was primarily due to increases in revenue
associated with the mortgage division of $887 thousand, or 130.4%, partially offset by
decreases in other banking fees of $206
thousand, or 6.5% and service charges on deposit accounts of
$163 thousand, or 10.8%. The increase
in noninterest income when compared to the fourth quarter of 2021
was primarily due to increases in revenue associated with the
mortgage division of $619 thousand,
or 65.3% and, service charges on deposit accounts of $112 thousand, or 9.1%.
Total noninterest expense, excluding merger related expenses,
for the fourth quarter of 2022 increased $1.3 million or 6.9%, when compared to the third
quarter of 2022 and increased $4.2
million, or 26.1%, when compared to the fourth quarter of
2021. The increase in noninterest expense when compared to the
third quarter of 2022 was primarily due to an increase in accruals
on bonuses and group insurance in the fourth quarter. The increase
from the fourth quarter of 2021 was primarily due to increases in
salaries and wages, employee related benefits, occupancy expense,
data processing, amortization of intangible assets and legal and
professional fees, which were all significantly impacted by adding
Severn and its operations and the
addition of two new branches in 2022.
Review of 2022 Financial Results
Net interest income for 2022 was $101.3
million, an increase of $37.2
million, or 58.0%, when compared to 2021. The increase in
net interest income was primarily due to an increase in total
interest income of $43.7 million, or
62.2%, specifically interest and fees on loans of $34.3 million, or 53.0%. The improvement in
interest and fees on loans was primarily due to the increase in the
average balance of $725.2 million, or
46.2%, coupled with accretion income from acquired loans of
$3.0 million for 2022. Taxable
investment securities and interest on deposits with other banks
increased $6.5 million and
$2.8 million, respectively, partially
offset by an increase in total interest expense of $6.5 million, or 107.7%. The increase in interest
expense was primarily the result of an increase in the average
balance of interest-bearing deposits of $684.5 million, or 47.5%. Interest on short term
and long-term borrowings increased by $988
thousand due to short and long-term advances with the FHLB
and junior subordinated debt acquired as part of the Severn acquisition. The long-term advances
with the FHLB matured in October of 2022.
The provision for credit losses for 2022 and 2021 was
$1.9 million and $(358) thousand, respectively. The increase in
provision for credit losses was the result of an increase in loans
held for investment in 2022 of $436.9
million. The ratio of the allowance to total loans decreased
from 0.66% at December 31, 2021, to
0.65% at December 31, 2022. Excluding
PPP loans and acquired loans, the ratio of the allowance for credit
losses to period-end loans was 0.78% at December 31, 2022, lower than the 0.96% at
December 31, 2021, primarily due to
lower historical loss experience and the elimination of pandemic
related qualitative factors.
Total noninterest income for 2022 increased $9.6 million, or 71.0%, when compared to the same
period in 2021. The increase in noninterest income primarily
consisted of revenue associated with the mortgage division of
$4.3 million, service charges on
deposit accounts of $2.3 million,
revenue from Mid-Maryland Title of $1.1
million and other noninterest income of $1.2 million. The increase in other noninterest
income was primarily due to increases in rental fee income of
$1.3 million.
Total noninterest expense, excluding merger related expenses,
for 2022 increased $29.9 million, or
62.0%, when compared to the same period in 2021. The increase was
primarily the result of higher salaries, employee benefits,
occupancy expense, other intangibles, data processing costs, other
noninterest expenses, and FDIC insurance premiums due to
significant increases in new and existing customers and the
acquisition of Severn and its
operations and the addition of two new branches in 2022. In
addition, during 2022 the Company recorded merger-related expenses
of $1.2 million due to the
acquisition of Severn and
$935 thousand due to the pending
merger with TCFC.
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
Partners, 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. 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: changes in general economic,
political, or industry conditions; geopolitical concerns, including
the ongoing war in Ukraine; the
potential resurgence of the COVID-19 pandemic and related variants
and mutations and their impact on the global economy and financial
market conditions and our business, results of operations, and
financial condition; uncertainty in U.S. fiscal and monetary
policy, including the interest rate policies of the Board of
Governors of the Federal Reserve System; inflation/deflation,
interest rate, market, and monetary fluctuations; volatility and
disruptions in global capital and credit markets; the transition
away from USD LIBOR and uncertainty regarding potential alternative
reference rates, including SOFR; competitive pressures on product
pricing and services; success, impact, and timing of our business
strategies, including market acceptance of any new products or
services; the impact of changes in financial services policies,
laws, and regulations, including those concerning taxes, banking,
securities, and insurance, and the application thereof by
regulatory bodies; cybersecurity threats and the cost of defending
against them, including the costs of compliance with potential
legislation to combat cybersecurity at a state, national, or global
level; and other factors that may affect our future results. 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
(Unaudited)
(Dollars in thousands,
except per share data)
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For the Three Months
Ended
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For the Year
Ended
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December 31,
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December 31,
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2022
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2021
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Change
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2022
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2021
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Change
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PROFITABILITY FOR THE
PERIOD
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Net interest
income
|
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$
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26,943
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$
|
20,639
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30.5
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%
|
$
|
101,302
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$
|
64,130
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58.0
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%
|
Provision for credit
losses
|
|
|
450
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(1,723)
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126.1
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1,925
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(358)
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637.7
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Noninterest
income
|
|
|
5,862
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|
|
5,129
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14.3
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|
23,086
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|
13,498
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71.0
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Noninterest
expense
|
|
|
21,000
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|
|
23,497
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(10.6)
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80,322
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56,806
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41.4
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Income before income
taxes
|
|
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11,355
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3,994
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184.3
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42,141
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21,180
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99.0
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|
Income tax
expense
|
|
|
2,948
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|
|
1,271
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|
131.9
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|
|
10,964
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|
5,812
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|
88.6
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Net income
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$
|
8,407
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$
|
2,723
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|
208.7
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$
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31,177
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$
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15,368
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|
102.9
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Return on average
assets
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0.97
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%
|
|
0.36
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%
|
61
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bp
|
|
0.90
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%
|
|
0.66
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%
|
24
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bp
|
Return on average
assets excluding amortization of
intangibles and merger related expenses - Non-GAAP (2)
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1.09
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1.07
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2
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0.99
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0.95
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|
4
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Return on average
equity
|
|
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9.22
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3.59
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563
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8.76
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6.86
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190
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Return on average
tangible equity - Non-GAAP (1), (2)
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12.83
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13.06
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(23)
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11.96
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11.34
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|
62
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Net interest
margin
|
|
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3.35
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|
|
2.87
|
|
48
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3.15
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|
|
2.94
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|
21
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Efficiency ratio -
GAAP
|
|
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64.01
|
|
|
91.19
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(2,718)
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|
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64.57
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|
|
73.18
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(861)
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Efficiency ratio -
Non-GAAP (1), (2)
|
|
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59.59
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60.13
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(54)
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61.21
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|
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61.15
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6
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PER SHARE
DATA
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Basic and diluted net
income per common share
|
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$
|
0.42
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$
|
0.16
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167.1
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%
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$
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1.57
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$
|
1.17
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34.1
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%
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Dividends paid per
common share
|
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$
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0.12
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$
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0.12
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—
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$
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0.48
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$
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0.48
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—
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Book value per common
share at period end
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18.34
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17.71
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3.6
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Tangible book value per
common share at period
end - Non-GAAP (1)
|
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14.87
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14.12
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5.3
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Market value at period
end
|
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17.43
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20.85
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(16.4)
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Market
range:
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High
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20.85
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23.19
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(10.1)
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21.41
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23.19
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(7.7)
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Low
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17.04
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17.50
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(2.6)
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17.04
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12.99
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31.2
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AVERAGE BALANCE SHEET
DATA
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Loans
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$
|
2,467,324
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$
|
1,887,126
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30.7
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%
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$
|
2,293,627
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$
|
1,568,468
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46.2
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%
|
Investment
securities
|
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661,968
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468,724
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41.2
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589,842
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329,890
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|
78.8
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Earning
assets
|
|
|
3,206,591
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|
2,842,097
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12.8
|
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3,220,672
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2,185,123
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47.4
|
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Assets
|
|
|
3,441,079
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|
3,037,262
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|
13.3
|
|
|
3,444,981
|
|
|
2,317,597
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|
48.6
|
|
Deposits
|
|
|
3,006,734
|
|
|
2,547,151
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|
18.0
|
|
|
3,014,109
|
|
|
2,015,624
|
|
49.5
|
|
Stockholders'
equity
|
|
|
361,623
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|
|
301,095
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|
20.1
|
|
|
355,850
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|
|
224,055
|
|
58.8
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
CREDIT QUALITY
DATA
|
|
|
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|
|
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|
|
Net (recoveries)
/chargeoffs
|
|
$
|
84
|
|
$
|
(142)
|
|
159.2
|
%
|
$
|
(774)
|
|
$
|
(414)
|
|
(87.0)
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%
|
|
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Nonaccrual
loans
|
|
$
|
1,908
|
|
$
|
2,004
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|
(4.8)
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|
Loans 90 days past due
and still accruing
|
|
|
1,841
|
|
|
508
|
|
262.4
|
|
|
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|
|
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|
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Other real estate
owned
|
|
|
197
|
|
|
532
|
|
(63.0)
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
|
3,946
|
|
|
3,044
|
|
29.6
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
|
|
4,405
|
|
|
5,667
|
|
(22.3)
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and accruing TDRs
|
|
$
|
8,351
|
|
$
|
8,711
|
|
(4.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
10.48
|
%
|
|
10.14
|
%
|
34
|
bp
|
|
|
|
|
|
|
|
|
Period-end tangible
equity to tangible assets - Non-GAAP (1)
|
|
|
8.67
|
|
|
8.25
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
(recoveries) to average loans
|
|
|
0.01
|
|
|
(0.03)
|
|
4
|
|
|
(0.03)
|
%
|
|
(0.03)
|
%
|
—
|
bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans
(3)
|
|
|
0.65
|
|
|
0.66
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Period-end loans
(4)
|
|
|
0.78
|
|
|
0.96
|
|
(18)
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
872.27
|
|
|
695.81
|
|
17,646
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
421.77
|
|
|
458.08
|
|
(3,631)
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
377.82
|
|
|
246.06
|
|
13,176
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
199.29
|
|
|
160.07
|
|
3,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.07
|
|
|
0.09
|
|
(2)
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
0.17
|
|
|
0.27
|
|
(10)
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and
accruing TDRs
|
|
|
0.25
|
|
|
0.36
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
0.15
|
|
|
0.14
|
|
1
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
0.33
|
|
|
0.41
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.05
|
|
|
0.06
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
0.11
|
|
|
0.09
|
|
2
|
|
|
|
|
|
|
|
|
|
Accruing
TDRs
|
|
|
0.13
|
|
|
0.16
|
|
(3)
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
and accruing TDRs
|
|
|
0.24
|
|
|
0.25
|
|
(1)
|
|
|
|
|
|
|
|
|
|
(1)
|
See the reconciliation
table that begins on page 14 of 15.
|
(2)
|
This ratio excludes
merger related expenses (Non-GAAP) on page 5.
|
(3)
|
As of December 31, 2022
and December 31, 2021, these ratios include all loans held for
investment, including PPP loans of $187 thousand and $27.6 million,
respectively.
|
(4)
|
As of December 31, 2022
and December 31, 2021, these ratios exclude PPP loans, acquired
loans, and the associated purchase discount mark on the acquired
loans from both Severn and Northwest.
|
Shore Bancshares,
Inc.
Consolidated Balance
Sheets (Unaudited)
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
compared to
|
|
|
2022
|
|
2021
|
|
|
December 31, 2021
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
37,661
|
|
$
|
16,919
|
|
|
122.6
|
Interest-bearing
deposits with other banks
|
|
|
17,838
|
|
|
566,694
|
|
|
(96.9)
|
Cash and cash
equivalents
|
|
|
55,499
|
|
|
583,613
|
|
|
(90.5)
|
|
|
|
|
|
|
|
|
|
|
Investment securities
available for sale (at fair value)
|
|
|
83,587
|
|
|
116,982
|
|
|
(28.5)
|
Investment securities
held to maturity (at amortized cost)
|
|
|
559,455
|
|
|
404,594
|
|
|
38.3
|
Equity securities, at
fair value
|
|
|
1,233
|
|
|
1,372
|
|
|
(10.1)
|
Restricted
securities
|
|
|
11,169
|
|
|
4,159
|
|
|
168.6
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale,
at fair value
|
|
|
4,248
|
|
|
37,749
|
|
|
(88.7)
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment
|
|
|
2,556,107
|
|
|
2,119,175
|
|
|
20.6
|
Less: allowance for
credit losses
|
|
|
(16,643)
|
|
|
(13,944)
|
|
|
19.4
|
Loans, net
|
|
|
2,539,464
|
|
|
2,105,231
|
|
|
20.6
|
|
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
|
51,488
|
|
|
51,624
|
|
|
(0.3)
|
Goodwill
|
|
|
63,266
|
|
|
63,421
|
|
|
(0.2)
|
Other intangible
assets, net
|
|
|
5,547
|
|
|
7,535
|
|
|
(26.4)
|
Other real estate
owned, net
|
|
|
197
|
|
|
532
|
|
|
(63.0)
|
Mortgage servicing
rights, at fair value
|
|
|
5,275
|
|
|
4,087
|
|
|
29.1
|
Right of use assets,
net
|
|
|
9,629
|
|
|
11,370
|
|
|
(15.3)
|
Cash surrender value
on life insurance
|
|
|
59,218
|
|
|
47,935
|
|
|
23.5
|
Other
assets
|
|
|
28,001
|
|
|
19,932
|
|
|
40.5
|
Total
assets
|
|
$
|
3,477,276
|
|
$
|
3,460,136
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
|
862,015
|
|
$
|
927,497
|
|
|
(7.1)
|
Interest-bearing
deposits
|
|
|
2,147,769
|
|
|
2,098,739
|
|
|
2.3
|
Total
deposits
|
|
|
3,009,784
|
|
|
3,026,236
|
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
retail repurchase agreements
|
|
|
—
|
|
|
4,143
|
|
|
(100.0)
|
Advances from FHLB -
short-term
|
|
|
40,000
|
|
|
—
|
|
|
—
|
Advances from FHLB -
long-term
|
|
|
—
|
|
|
10,135
|
|
|
(100.0)
|
Subordinated
debt
|
|
|
43,072
|
|
|
42,762
|
|
|
0.7
|
Total
borrowings
|
|
|
83,072
|
|
|
57,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
liabilities
|
|
|
9,908
|
|
|
11,567
|
|
|
(14.3)
|
Accrued expenses and
other liabilities
|
|
|
10,227
|
|
|
14,600
|
|
|
(30.0)
|
Total
liabilities
|
|
|
3,112,991
|
|
|
3,109,443
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock, par
value $0.01; authorized 35,000,000 shares
|
|
|
199
|
|
|
198
|
|
|
0.5
|
Additional paid in
capital
|
|
|
201,494
|
|
|
200,473
|
|
|
0.5
|
Retained
earnings
|
|
|
171,613
|
|
|
149,966
|
|
|
14.4
|
Accumulated other
comprehensive (loss) income
|
|
|
(9,021)
|
|
|
56
|
|
|
(16,208.9)
|
Total stockholders'
equity
|
|
|
364,285
|
|
|
350,693
|
|
|
3.9
|
Total liabilities and
stockholders' equity
|
|
$
|
3,477,276
|
|
$
|
3,460,136
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
Period-end common
shares outstanding
|
|
|
19,865
|
|
|
19,808
|
|
|
0.3
|
Book value per common
share
|
|
$
|
18.34
|
|
$
|
17.71
|
|
|
3.6
|
Shore Bancshares,
Inc.
Consolidated Statements
of Income (Unaudited)
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
For the Year
Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
27,664
|
|
$
|
20,564
|
|
34.5
|
%
|
$
|
99,122
|
|
$
|
64,795
|
|
53.0
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
3,945
|
|
|
1,663
|
|
137.2
|
|
|
11,507
|
|
|
5,006
|
|
129.9
|
|
Tax-exempt
|
|
|
6
|
|
|
—
|
|
100.0
|
|
|
6
|
|
|
—
|
|
100.0
|
|
Interest on deposits
with other banks
|
|
|
664
|
|
|
169
|
|
292.9
|
|
|
3,210
|
|
|
368
|
|
772.3
|
|
Total interest
income
|
|
|
32,279
|
|
|
22,396
|
|
44.1
|
|
|
113,845
|
|
|
70,169
|
|
62.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
4,554
|
|
|
1,272
|
|
258.0
|
|
|
9,983
|
|
|
4,461
|
|
123.8
|
|
Interest on short-term
borrowings
|
|
|
72
|
|
|
3
|
|
2,300.0
|
|
|
74
|
|
|
8
|
|
825.0
|
|
Interest on long-term
borrowings
|
|
|
710
|
|
|
482
|
|
47.3
|
|
|
2,486
|
|
|
1,570
|
|
58.3
|
|
Total interest
expense
|
|
|
5,336
|
|
|
1,757
|
|
203.7
|
|
|
12,543
|
|
|
6,039
|
|
107.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
26,943
|
|
|
20,639
|
|
30.5
|
|
|
101,302
|
|
|
64,130
|
|
58.0
|
|
Provision for credit
losses
|
|
|
450
|
|
|
(1,723)
|
|
126.1
|
|
|
1,925
|
|
|
(358)
|
|
637.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
26,493
|
|
|
22,362
|
|
18.5
|
|
|
99,377
|
|
|
64,488
|
|
54.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
1,346
|
|
|
1,234
|
|
9.1
|
|
|
5,652
|
|
|
3,396
|
|
66.4
|
|
Trust and investment
fee income
|
|
|
401
|
|
|
522
|
|
(23.2)
|
|
|
1,784
|
|
|
1,881
|
|
(5.2)
|
|
Gains on sales and
calls of investment securities
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
2
|
|
—
|
|
Interchange
credits
|
|
|
1,280
|
|
|
1,043
|
|
22.7
|
|
|
4,812
|
|
|
3,964
|
|
21.4
|
|
Mortgage-banking
revenue
|
|
|
1,567
|
|
|
948
|
|
65.3
|
|
|
5,210
|
|
|
948
|
|
449.6
|
|
Title Company
revenue
|
|
|
194
|
|
|
247
|
|
(21.5)
|
|
|
1,340
|
|
|
247
|
|
442.5
|
|
Other noninterest
income
|
|
|
1,074
|
|
|
1,135
|
|
(5.4)
|
|
|
4,288
|
|
|
3,060
|
|
40.1
|
|
Total noninterest
income
|
|
|
5,862
|
|
|
5,129
|
|
14.3
|
|
|
23,086
|
|
|
13,498
|
|
71.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
8,909
|
|
|
7,727
|
|
15.3
|
|
|
35,931
|
|
|
21,222
|
|
69.3
|
|
Employee
benefits
|
|
|
2,786
|
|
|
2,271
|
|
22.7
|
|
|
9,908
|
|
|
7,262
|
|
36.4
|
|
Occupancy
expense
|
|
|
1,694
|
|
|
1,263
|
|
34.1
|
|
|
6,242
|
|
|
3,690
|
|
69.2
|
|
Furniture and
equipment expense
|
|
|
648
|
|
|
385
|
|
68.3
|
|
|
2,018
|
|
|
1,553
|
|
29.9
|
|
Data
processing
|
|
|
1,856
|
|
|
1,487
|
|
24.8
|
|
|
6,890
|
|
|
5,001
|
|
37.8
|
|
Directors'
fees
|
|
|
222
|
|
|
170
|
|
30.6
|
|
|
839
|
|
|
620
|
|
35.3
|
|
Amortization of
intangible assets
|
|
|
460
|
|
|
381
|
|
20.7
|
|
|
1,988
|
|
|
734
|
|
170.8
|
|
FDIC insurance premium
expense
|
|
|
315
|
|
|
362
|
|
(13.0)
|
|
|
1,426
|
|
|
1,015
|
|
40.5
|
|
Other real estate
owned, net
|
|
|
13
|
|
|
(2)
|
|
750.0
|
|
|
65
|
|
|
4
|
|
1,525.0
|
|
Legal and professional
fees
|
|
|
636
|
|
|
150
|
|
324.0
|
|
|
2,840
|
|
|
1,742
|
|
63.0
|
|
Merger related
expenses
|
|
|
967
|
|
|
7,615
|
|
(87.3)
|
|
|
2,098
|
|
|
8,530
|
|
(75.4)
|
|
Other noninterest
expenses
|
|
|
2,494
|
|
|
1,688
|
|
47.7
|
|
|
10,077
|
|
|
5,433
|
|
85.5
|
|
Total noninterest
expense
|
|
|
21,000
|
|
|
23,497
|
|
(10.6)
|
|
|
80,322
|
|
|
56,806
|
|
41.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
11,355
|
|
|
3,994
|
|
184.3
|
|
|
42,141
|
|
|
21,180
|
|
99.0
|
|
Income tax
expense
|
|
|
2,948
|
|
|
1,271
|
|
131.9
|
|
|
10,964
|
|
|
5,812
|
|
88.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
8,407
|
|
$
|
2,723
|
|
208.7
|
|
$
|
31,177
|
|
$
|
15,368
|
|
102.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
|
|
19,862
|
|
|
17,180
|
|
15.6
|
|
|
19,847
|
|
|
13,119
|
|
51.3
|
|
Weighted average shares
outstanding - diluted
|
|
|
19,862
|
|
|
17,180
|
|
15.6
|
|
|
19,847
|
|
|
13,119
|
|
51.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per common share
|
|
$
|
0.42
|
|
$
|
0.16
|
|
167.1
|
|
$
|
1.57
|
|
$
|
1.17
|
|
34.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.12
|
|
|
0.12
|
|
—
|
|
|
0.48
|
|
|
0.48
|
|
—
|
|
Shore Bancshares,
Inc.
Consolidated Average
Balance Sheets (Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Year
Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
balance
|
|
rate
|
|
Earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1), (2),
(3)
|
|
$
|
2,467,324
|
|
4.45
|
%
|
$
|
1,887,126
|
|
4.33
|
%
|
$
|
2,293,627
|
|
4.33
|
%
|
$
|
1,568,468
|
|
4.14
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
661,519
|
|
2.39
|
|
|
468,724
|
|
1.42
|
|
|
589,729
|
|
1.95
|
|
|
329,890
|
|
1.52
|
|
Tax-exempt
(1)
|
|
|
449
|
|
6.24
|
|
|
—
|
|
—
|
|
|
113
|
|
6.19
|
|
|
—
|
|
—
|
|
Interest-bearing
deposits
|
|
|
77,299
|
|
3.40
|
|
|
486,247
|
|
0.14
|
|
|
337,203
|
|
0.95
|
|
|
286,765
|
|
0.13
|
|
Total earning
assets
|
|
|
3,206,591
|
|
4.00
|
%
|
|
2,842,097
|
|
3.11
|
%
|
|
3,220,672
|
|
3.54
|
%
|
|
2,185,123
|
|
3.21
|
%
|
Cash and due from
banks
|
|
|
29,358
|
|
|
|
|
22,625
|
|
|
|
|
18,158
|
|
|
|
|
19,838
|
|
|
|
Other assets
|
|
|
221,599
|
|
|
|
|
188,399
|
|
|
|
|
221,592
|
|
|
|
|
127,704
|
|
|
|
Allowance for credit
losses
|
|
|
(16,469)
|
|
|
|
|
(15,859)
|
|
|
|
|
(15,441)
|
|
|
|
|
(15,068)
|
|
|
|
Total assets
|
|
$
|
3,441,079
|
|
|
|
$
|
3,037,262
|
|
|
|
$
|
3,444,981
|
|
|
|
$
|
2,317,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
670,424
|
|
1.31
|
%
|
$
|
494,081
|
|
0.14
|
%
|
$
|
638,105
|
|
0.61
|
%
|
$
|
450,399
|
|
0.14
|
%
|
Money market and
savings deposits
|
|
|
1,043,076
|
|
0.60
|
|
|
1,001,115
|
|
0.26
|
|
|
1,043,032
|
|
0.35
|
|
|
695,056
|
|
0.21
|
|
Certificates of deposit
$100,000 or more
|
|
|
217,051
|
|
0.79
|
|
|
174,268
|
|
0.49
|
|
|
239,927
|
|
0.57
|
|
|
144,209
|
|
0.84
|
|
Other time
deposits
|
|
|
205,293
|
|
0.62
|
|
|
173,975
|
|
0.50
|
|
|
204,536
|
|
0.56
|
|
|
151,429
|
|
0.78
|
|
Interest-bearing
deposits
|
|
|
2,135,844
|
|
0.85
|
|
|
1,843,439
|
|
0.27
|
|
|
2,125,600
|
|
0.47
|
|
|
1,441,093
|
|
0.31
|
|
Securities sold under
retail repurchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreements
and federal funds purchased
|
|
|
—
|
|
—
|
|
|
3,972
|
|
0.30
|
|
|
683
|
|
0.29
|
|
|
3,017
|
|
0.27
|
|
Advances from FHLB -
short-term
|
|
|
7,391
|
|
3.86
|
|
|
—
|
|
—
|
|
|
1,863
|
|
3.86
|
|
|
—
|
|
—
|
|
Advances from FHLB -
long-term
|
|
|
653
|
|
(6.08)
|
|
|
6,630
|
|
2.21
|
|
|
7,701
|
|
0.45
|
|
|
1,671
|
|
0.60
|
|
Subordinated
debt
|
|
|
43,031
|
|
6.64
|
|
|
36,589
|
|
5.12
|
|
|
42,917
|
|
5.71
|
|
|
27,528
|
|
5.67
|
|
Total interest-bearing
liabilities
|
|
|
2,186,919
|
|
0.96
|
%
|
|
1,890,630
|
|
0.37
|
%
|
|
2,178,764
|
|
0.57
|
%
|
|
1,473,309
|
|
0.41
|
%
|
Noninterest-bearing
deposits
|
|
|
870,890
|
|
|
|
|
703,712
|
|
|
|
|
888,509
|
|
|
|
|
574,531
|
|
|
|
Accrued expenses and
other liabilities
|
|
|
21,647
|
|
|
|
|
141,825
|
|
|
|
|
21,858
|
|
|
|
|
45,702
|
|
|
|
Stockholders'
equity
|
|
|
361,623
|
|
|
|
|
301,095
|
|
|
|
|
355,850
|
|
|
|
|
224,055
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,441,079
|
|
|
|
$
|
3,037,262
|
|
|
|
$
|
3,444,981
|
|
|
|
$
|
2,317,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.04
|
%
|
|
|
|
2.74
|
%
|
|
|
|
2.97
|
%
|
|
|
|
2.80
|
%
|
Net interest
margin
|
|
|
|
|
3.35
|
%
|
|
|
|
2.87
|
%
|
|
|
|
3.15
|
%
|
|
|
|
2.94
|
%
|
|
|
(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.
|
Shore Bancshares,
Inc.
Financial Highlights By
Quarter (Unaudited)
(Dollars in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
3rd Quarter
|
|
2nd Quarter
|
|
1st Quarter
|
|
4th Quarter
|
|
Q4 2022
|
|
Q4 2022
|
|
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
compared to
|
|
compared to
|
|
|
|
Q4
2022
|
|
Q3 2022
|
|
Q2 2022
|
|
Q1 2022
|
|
Q4 2021
|
|
Q3 2022
|
|
Q4 2021
|
|
PROFITABILITY FOR THE
PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent net
interest income
|
|
$
|
26,981
|
|
$
|
27,350
|
|
$
|
24,656
|
|
$
|
22,469
|
|
$
|
20,652
|
|
(1.3)
|
%
|
30.6
|
%
|
Less:
Taxable-equivalent adjustment
|
|
|
40
|
|
|
35
|
|
|
38
|
|
|
39
|
|
|
13
|
|
14.3
|
|
207.7
|
|
Net interest
income
|
|
|
26,943
|
|
|
27,315
|
|
|
24,618
|
|
|
22,430
|
|
|
20,639
|
|
(1.4)
|
|
30.5
|
|
Provision for credit
losses
|
|
|
450
|
|
|
675
|
|
|
200
|
|
|
600
|
|
|
(1,723)
|
|
(33.3)
|
|
126.1
|
|
Noninterest
income
|
|
|
5,862
|
|
|
5,344
|
|
|
5,833
|
|
|
6,046
|
|
|
5,129
|
|
9.7
|
|
14.3
|
|
Noninterest
expense
|
|
|
21,000
|
|
|
18,899
|
|
|
20,094
|
|
|
20,332
|
|
|
23,497
|
|
11.1
|
|
(10.6)
|
|
Income before income
taxes
|
|
|
11,355
|
|
|
13,085
|
|
|
10,157
|
|
|
7,544
|
|
|
3,994
|
|
(13.2)
|
|
184.3
|
|
Income tax
expense
|
|
|
2,948
|
|
|
3,427
|
|
|
2,658
|
|
|
1,931
|
|
|
1,271
|
|
(14.0)
|
|
131.9
|
|
Net income
|
|
$
|
8,407
|
|
$
|
9,658
|
|
$
|
7,499
|
|
$
|
5,613
|
|
$
|
2,723
|
|
(13.0)
|
|
208.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.97
|
%
|
|
1.11
|
%
|
|
0.88
|
%
|
|
0.65
|
%
|
|
0.36
|
%
|
(14)
|
bp
|
61
|
bp
|
Return on average
assets excluding amortization
of intangibles and merger related expenses
- Non-GAAP (2)
|
|
|
1.09
|
|
|
1.17
|
|
|
0.94
|
|
|
0.76
|
|
|
1.07
|
|
(8)
|
|
2
|
|
Return on average
equity
|
|
|
9.22
|
|
|
10.72
|
|
|
8.52
|
|
|
6.45
|
|
|
3.59
|
|
(150)
|
|
563
|
|
Return on average
tangible equity - Non-GAAP (1)
|
|
|
12.83
|
|
|
13.98
|
|
|
11.41
|
|
|
9.40
|
|
|
13.06
|
|
(115)
|
|
(23)
|
|
Net interest
margin
|
|
|
3.35
|
|
|
3.38
|
|
|
3.10
|
|
|
2.78
|
|
|
2.87
|
|
(3)
|
|
48
|
|
Efficiency ratio -
GAAP
|
|
|
64.01
|
|
|
57.87
|
|
|
65.99
|
|
|
71.40
|
|
|
91.19
|
|
614
|
|
(2,718)
|
|
Efficiency ratio -
Non-GAAP (1), (2)
|
|
|
59.59
|
|
|
55.79
|
|
|
63.44
|
|
|
66.93
|
|
|
60.13
|
|
380
|
|
(54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per common share
|
|
$
|
0.42
|
|
$
|
0.49
|
|
$
|
0.38
|
|
$
|
0.28
|
|
$
|
0.16
|
|
(13.6)
|
%
|
164.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
—
|
|
—
|
|
Book value per common
share at period end
|
|
|
18.34
|
|
|
17.99
|
|
|
17.77
|
|
|
17.73
|
|
|
17.71
|
|
1.9
|
|
3.6
|
|
Tangible book value
per common share at period
end - Non-GAAP (1)
|
|
|
14.87
|
|
|
14.50
|
|
|
14.26
|
|
|
14.19
|
|
|
14.12
|
|
2.6
|
|
5.3
|
|
Market value at period
end
|
|
|
17.43
|
|
|
17.32
|
|
|
18.50
|
|
|
20.48
|
|
|
20.85
|
|
0.6
|
|
(16.4)
|
|
Market
range:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
20.85
|
|
|
20.50
|
|
|
21.21
|
|
|
21.41
|
|
|
23.19
|
|
1.7
|
|
(10.1)
|
|
Low
|
|
|
17.04
|
|
|
17.29
|
|
|
17.91
|
|
|
19.34
|
|
|
17.50
|
|
(1.4)
|
|
(2.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
2,467,324
|
|
$
|
2,327,279
|
|
$
|
2,217,139
|
|
$
|
2,135,734
|
|
$
|
1,887,126
|
|
6.0
|
%
|
30.7
|
%
|
Investment
securities
|
|
|
661,968
|
|
|
618,378
|
|
|
546,252
|
|
|
531,017
|
|
|
468,724
|
|
7.0
|
|
41.2
|
|
Earning
assets
|
|
|
3,206,591
|
|
|
3,210,233
|
|
|
3,189,926
|
|
|
3,253,549
|
|
|
2,842,097
|
|
(0.1)
|
|
12.8
|
|
Assets
|
|
|
3,441,079
|
|
|
3,444,365
|
|
|
3,419,168
|
|
|
3,477,481
|
|
|
3,037,262
|
|
(0.1)
|
|
13.3
|
|
Deposits
|
|
|
3,006,734
|
|
|
3,012,658
|
|
|
2,993,098
|
|
|
3,044,213
|
|
|
2,547,151
|
|
(0.2)
|
|
18.0
|
|
Stockholders'
equity
|
|
|
361,623
|
|
|
357,383
|
|
|
353,192
|
|
|
353,011
|
|
|
301,095
|
|
1.2
|
|
20.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (recoveries) /
chargeoffs
|
|
$
|
84
|
|
$
|
(119)
|
|
$
|
(573)
|
|
$
|
(166)
|
|
$
|
(142)
|
|
170.6
|
%
|
159.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
1,908
|
|
$
|
1,949
|
|
$
|
2,693
|
|
$
|
2,848
|
|
$
|
2,004
|
|
(2.1)
|
|
(4.8)
|
|
Loans 90 days past due
and still accruing
|
|
|
1,841
|
|
|
644
|
|
|
803
|
|
|
459
|
|
|
508
|
|
185.9
|
|
262.4
|
|
Other real estate
owned
|
|
|
197
|
|
|
197
|
|
|
197
|
|
|
561
|
|
|
532
|
|
—
|
|
(63.0)
|
|
Total nonperforming
assets
|
|
$
|
3,946
|
|
$
|
2,790
|
|
$
|
3,693
|
|
$
|
3,868
|
|
$
|
3,044
|
|
41.4
|
|
29.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing troubled debt
restructurings (TDRs)
|
|
$
|
4,405
|
|
$
|
4,458
|
|
$
|
4,894
|
|
$
|
5,004
|
|
$
|
5,667
|
|
(1.2)
|
|
(22.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets and accruing TDRs
|
|
$
|
8,351
|
|
$
|
7,248
|
|
$
|
8,587
|
|
$
|
8,872
|
|
$
|
8,711
|
|
15.2
|
|
(4.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND CREDIT
QUALITY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end equity to
assets
|
|
|
10.48
|
%
|
|
10.36
|
%
|
|
10.25
|
%
|
|
10.07
|
%
|
|
10.14
|
%
|
12
|
bp
|
34
|
bp
|
Period-end tangible
equity to tangible assets - Non-GAAP (1)
|
|
|
8.67
|
|
|
8.52
|
|
|
8.39
|
|
|
8.22
|
|
|
8.25
|
|
15
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net
(recoveries) to average loans
|
|
|
0.01
|
|
|
(0.02)
|
|
|
(0.10)
|
|
|
(0.03)
|
|
|
(0.03)
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses as a percent of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans
(3)
|
|
|
0.65
|
|
|
0.68
|
|
|
0.68
|
|
|
0.67
|
|
|
0.66
|
|
(3)
|
|
(1)
|
|
Period-end loans
(4)
|
|
|
0.78
|
|
|
0.84
|
|
|
0.89
|
|
|
0.92
|
|
|
0.96
|
|
(6)
|
|
(18)
|
|
Nonaccrual
loans
|
|
|
872.27
|
|
|
835.15
|
|
|
574.94
|
|
|
516.50
|
|
|
695.81
|
|
3,712
|
|
17,646
|
|
Nonperforming
assets
|
|
|
421.77
|
|
|
583.41
|
|
|
419.25
|
|
|
380.30
|
|
|
458.08
|
|
(16,164)
|
|
(3,631)
|
|
Accruing
TDRs
|
|
|
377.82
|
|
|
365.12
|
|
|
316.37
|
|
|
293.96
|
|
|
246.06
|
|
1,270
|
|
13,176
|
|
Nonperforming assets
and accruing TDRs
|
|
|
199.29
|
|
|
224.57
|
|
|
180.31
|
|
|
165.80
|
|
|
160.07
|
|
(2,528)
|
|
3,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.07
|
|
|
0.08
|
|
|
0.12
|
|
|
0.13
|
|
|
0.09
|
|
(1)
|
|
(2)
|
|
Accruing
TDRs
|
|
|
0.17
|
|
|
0.19
|
|
|
0.22
|
|
|
0.23
|
|
|
0.27
|
|
(2)
|
|
(10)
|
|
Nonaccrual loans and
accruing TDRs
|
|
|
0.25
|
|
|
0.27
|
|
|
0.34
|
|
|
0.36
|
|
|
0.36
|
|
(2)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
loans+other real estate owned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
0.15
|
|
|
0.12
|
|
|
0.16
|
|
|
0.18
|
|
|
0.14
|
|
3
|
|
1
|
|
Nonperforming assets
and accruing TDRs
|
|
|
0.33
|
|
|
0.30
|
|
|
0.38
|
|
|
0.41
|
|
|
0.41
|
|
3
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of total
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
|
0.05
|
|
|
0.06
|
|
|
0.08
|
|
|
0.08
|
|
|
0.06
|
|
(1)
|
|
(1)
|
|
Nonperforming
assets
|
|
|
0.11
|
|
|
0.08
|
|
|
0.11
|
|
|
0.11
|
|
|
0.09
|
|
3
|
|
2
|
|
Accruing
TDRs
|
|
|
0.13
|
|
|
0.13
|
|
|
0.14
|
|
|
0.14
|
|
|
0.16
|
|
—
|
|
(3)
|
|
Nonperforming assets
and accruing TDRs
|
|
|
0.24
|
|
|
0.21
|
|
|
0.25
|
|
|
0.25
|
|
|
0.25
|
|
3
|
|
(1)
|
|
|
|
(1)
|
See the reconciliation
table that begins on page 14.
|
(2)
|
This ratio excludes
merger related expenses (Non-GAAP) on page 10.
|
(3)
|
Includes all loans held
for investment, including PPP loan balances for all periods
shown.
|
(4)
|
For all periods shown,
these ratios exclude PPP loans, acquired loans, and the associated
purchase discount mark on the acquired loans from both Severn and
Northwest.
|
Shore Bancshares,
Inc.
Consolidated Statements
of Income By Quarter (Unaudited)
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2022
|
|
Q4 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to
|
|
compared to
|
|
|
|
Q4
2022
|
|
Q3 2022
|
|
Q2 2022
|
|
Q1 2022
|
|
Q4 2021
|
|
Q3 2022
|
|
Q4 2021
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
27,664
|
|
$
|
25,924
|
|
$
|
23,452
|
|
$
|
22,085
|
|
$
|
20,564
|
|
6.7
|
%
|
34.5
|
%
|
Interest on investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
3,945
|
|
|
3,186
|
|
|
2,392
|
|
|
1,985
|
|
|
1,663
|
|
23.8
|
|
137.2
|
|
Tax-exempt
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
100.0
|
|
100.0
|
|
Interest on deposits
with other banks
|
|
|
664
|
|
|
1,466
|
|
|
826
|
|
|
254
|
|
|
169
|
|
(54.7)
|
|
292.9
|
|
Total interest
income
|
|
|
32,279
|
|
|
30,576
|
|
|
26,670
|
|
|
24,324
|
|
|
22,396
|
|
5.6
|
|
44.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
4,554
|
|
|
2,561
|
|
|
1,511
|
|
|
1,358
|
|
|
1,272
|
|
77.8
|
|
258.0
|
|
Interest on short-term
borrowings
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
100.0
|
|
2,300.0
|
|
Interest on long-term
borrowings
|
|
|
710
|
|
|
700
|
|
|
541
|
|
|
534
|
|
|
482
|
|
1.4
|
|
47.3
|
|
Total interest
expense
|
|
|
5,336
|
|
|
3,261
|
|
|
2,052
|
|
|
1,894
|
|
|
1,757
|
|
63.6
|
|
203.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
26,943
|
|
|
27,315
|
|
|
24,618
|
|
|
22,430
|
|
|
20,639
|
|
(1.4)
|
|
30.5
|
|
Provision for credit
losses
|
|
|
450
|
|
|
675
|
|
|
200
|
|
|
600
|
|
|
(1,723)
|
|
(33.3)
|
|
126.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
|
|
26,493
|
|
|
26,640
|
|
|
24,418
|
|
|
21,830
|
|
|
22,362
|
|
(0.6)
|
|
18.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
|
1,346
|
|
|
1,509
|
|
|
1,438
|
|
|
1,359
|
|
|
1,234
|
|
(10.8)
|
|
9.1
|
|
Trust and investment
fee income
|
|
|
401
|
|
|
421
|
|
|
447
|
|
|
514
|
|
|
522
|
|
(4.8)
|
|
(23.2)
|
|
Interchange
credits
|
|
|
1,280
|
|
|
1,241
|
|
|
1,253
|
|
|
1,038
|
|
|
1,043
|
|
3.1
|
|
22.7
|
|
Mortgage-banking
revenue
|
|
|
1,567
|
|
|
680
|
|
|
1,096
|
|
|
1,867
|
|
|
948
|
|
130.4
|
|
65.3
|
|
Title Company
revenue
|
|
|
194
|
|
|
397
|
|
|
426
|
|
|
323
|
|
|
247
|
|
(51.1)
|
|
(21.5)
|
|
Other noninterest
income
|
|
|
1,074
|
|
|
1,096
|
|
|
1,173
|
|
|
945
|
|
|
1,135
|
|
(2.0)
|
|
(5.4)
|
|
Total noninterest
income
|
|
|
5,862
|
|
|
5,344
|
|
|
5,833
|
|
|
6,046
|
|
|
5,129
|
|
9.7
|
|
14.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
8,909
|
|
|
8,562
|
|
|
8,898
|
|
|
9,562
|
|
|
7,727
|
|
4.1
|
|
15.3
|
|
Employee
benefits
|
|
|
2,786
|
|
|
2,191
|
|
|
2,269
|
|
|
2,662
|
|
|
2,271
|
|
27.2
|
|
22.7
|
|
Occupancy
expense
|
|
|
1,694
|
|
|
1,496
|
|
|
1,485
|
|
|
1,567
|
|
|
1,263
|
|
13.2
|
|
34.1
|
|
Furniture and
equipment expense
|
|
|
648
|
|
|
533
|
|
|
411
|
|
|
429
|
|
|
385
|
|
21.6
|
|
68.3
|
|
Data
processing
|
|
|
1,856
|
|
|
1,759
|
|
|
1,668
|
|
|
1,607
|
|
|
1,487
|
|
5.5
|
|
24.8
|
|
Directors'
fees
|
|
|
222
|
|
|
217
|
|
|
210
|
|
|
190
|
|
|
170
|
|
2.3
|
|
30.6
|
|
Amortization of
intangible assets
|
|
|
460
|
|
|
499
|
|
|
511
|
|
|
517
|
|
|
381
|
|
(7.8)
|
|
20.7
|
|
FDIC insurance premium
expense
|
|
|
315
|
|
|
339
|
|
|
429
|
|
|
343
|
|
|
362
|
|
(7.1)
|
|
(13.0)
|
|
Other real estate
owned expenses, net
|
|
|
13
|
|
|
1
|
|
|
57
|
|
|
(6)
|
|
|
(2)
|
|
1,200.0
|
|
750.0
|
|
Legal and professional
fees
|
|
|
636
|
|
|
756
|
|
|
811
|
|
|
637
|
|
|
150
|
|
(15.9)
|
|
324.0
|
|
Merger related
expenses
|
|
|
967
|
|
|
159
|
|
|
241
|
|
|
730
|
|
|
7,615
|
|
508.2
|
|
(87.3)
|
|
Other noninterest
expenses
|
|
|
2,494
|
|
|
2,387
|
|
|
3,104
|
|
|
2,094
|
|
|
1,688
|
|
4.5
|
|
47.7
|
|
Total noninterest
expense
|
|
|
21,000
|
|
|
18,899
|
|
|
20,094
|
|
|
20,332
|
|
|
23,497
|
|
11.1
|
|
(10.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
11,355
|
|
|
13,085
|
|
|
10,157
|
|
|
7,544
|
|
|
3,994
|
|
(13.2)
|
|
184.3
|
|
Income tax
expense
|
|
|
2,948
|
|
|
3,427
|
|
|
2,658
|
|
|
1,931
|
|
|
1,271
|
|
(14.0)
|
|
131.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
8,407
|
|
$
|
9,658
|
|
$
|
7,499
|
|
$
|
5,613
|
|
$
|
2,723
|
|
(13.0)
|
|
208.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
|
|
19,862
|
|
|
19,852
|
|
|
19,847
|
|
|
19,828
|
|
|
17,180
|
|
0.1
|
|
15.6
|
|
Weighted average shares
outstanding - diluted
|
|
|
19,862
|
|
|
19,852
|
|
|
19,847
|
|
|
19,828
|
|
|
17,180
|
|
0.1
|
|
15.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per common share
|
|
$
|
0.42
|
|
$
|
0.49
|
|
$
|
0.38
|
|
$
|
0.28
|
|
$
|
0.16
|
|
(13.6)
|
|
164.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
—
|
|
—
|
|
Shore Bancshares,
Inc.
Consolidated Average
Balance Sheets By Quarter (Unaudited)
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2022
|
|
Q4 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compared to
|
|
compared to
|
|
|
|
Q4
2022
|
|
Q3 2022
|
|
Q2 2022
|
|
Q1 2022
|
|
Q4 2021
|
|
Q3 2022
|
|
Q4 2021
|
|
|
|
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)
|
|
$
|
2,467,324
|
|
4.45
|
%
|
$
|
2,327,279
|
|
4.43
|
%
|
$
|
2,217,139
|
|
4.25
|
%
|
$
|
2,135,734
|
|
4.20
|
%
|
$
|
1,887,126
|
|
4.33
|
%
|
6.0
|
%
|
30.7
|
%
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
661,519
|
|
2.39
|
|
|
618,378
|
|
2.06
|
|
|
546,252
|
|
1.75
|
|
|
531,017
|
|
1.49
|
|
|
468,724
|
|
1.42
|
|
7.0
|
|
41.1
|
|
Tax-exempt
(1)
|
|
|
449
|
|
6.24
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
100.0
|
|
100.0
|
|
Interest-bearing
deposits
|
|
|
77,299
|
|
3.40
|
|
|
264,576
|
|
2.20
|
|
|
426,535
|
|
0.78
|
|
|
586,798
|
|
0.18
|
|
|
486,247
|
|
0.14
|
|
(70.8)
|
|
(84.1)
|
|
Total earning
assets
|
|
|
3,206,591
|
|
4.00
|
%
|
|
3,210,233
|
|
3.78
|
%
|
|
3,189,926
|
|
3.36
|
%
|
|
3,253,549
|
|
3.01
|
%
|
|
2,842,097
|
|
3.11
|
%
|
(0.1)
|
|
12.8
|
|
Cash and due from
banks
|
|
|
29,358
|
|
|
|
|
31,724
|
|
|
|
|
26,162
|
|
|
|
|
(15,253)
|
|
|
|
|
22,625
|
|
|
|
(7.5)
|
|
29.8
|
|
Other assets
|
|
|
221,599
|
|
|
|
|
218,163
|
|
|
|
|
218,353
|
|
|
|
|
253,424
|
|
|
|
|
188,399
|
|
|
|
1.6
|
|
17.6
|
|
Allowance for credit
losses
|
|
|
(16,469)
|
|
|
|
|
(15,755)
|
|
|
|
|
(15,273)
|
|
|
|
|
(14,239)
|
|
|
|
|
(15,859)
|
|
|
|
4.5
|
|
3.8
|
|
Total assets
|
|
$
|
3,441,079
|
|
|
|
$
|
3,444,365
|
|
|
|
$
|
3,419,168
|
|
|
|
$
|
3,477,481
|
|
|
|
$
|
3,037,262
|
|
|
|
(0.1)
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
|
670,424
|
|
1.31
|
%
|
$
|
646,399
|
|
0.66
|
%
|
$
|
644,881
|
|
0.22
|
%
|
$
|
589,737
|
|
0.16
|
%
|
$
|
494,081
|
|
0.14
|
%
|
3.7
|
|
35.7
|
|
Money market and
savings deposits
|
|
|
1,043,076
|
|
0.60
|
|
|
1,034,580
|
|
0.35
|
|
|
1,019,295
|
|
0.21
|
|
|
1,075,791
|
|
0.23
|
|
|
1,001,115
|
|
0.26
|
|
0.8
|
|
4.2
|
|
Certificates of deposit
$100,000 or more
|
|
|
217,051
|
|
0.79
|
|
|
222,697
|
|
0.55
|
|
|
234,325
|
|
0.58
|
|
|
286,587
|
|
0.40
|
|
|
174,268
|
|
0.49
|
|
(2.5)
|
|
24.6
|
|
Other time
deposits
|
|
|
205,293
|
|
0.62
|
|
|
215,014
|
|
0.51
|
|
|
221,714
|
|
0.54
|
|
|
175,683
|
|
0.57
|
|
|
173,975
|
|
0.50
|
|
(4.5)
|
|
18.0
|
|
Interest-bearing
deposits
|
|
|
2,135,844
|
|
0.85
|
|
|
2,118,690
|
|
0.48
|
|
|
2,120,215
|
|
0.29
|
|
|
2,127,798
|
|
0.26
|
|
|
1,843,439
|
|
0.27
|
|
0.8
|
|
15.9
|
|
Securities sold under
retail repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
federal funds purchased
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
2,770
|
|
0.29
|
|
|
3,972
|
|
0.30
|
|
—
|
|
(100.0)
|
|
Advances from FHLB -
short-term
|
|
|
7,391
|
|
3.86
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
100.0
|
|
100.0
|
|
Advances from FHLB -
long-term
|
|
|
653
|
|
(6.08)
|
|
|
10,035
|
|
0.63
|
|
|
10,075
|
|
0.60
|
|
|
10,116
|
|
0.57
|
|
|
6,630
|
|
2.21
|
|
(93.5)
|
|
(90.2)
|
|
Subordinated
debt
|
|
|
43,031
|
|
6.64
|
|
|
42,953
|
|
6.33
|
|
|
42,876
|
|
4.93
|
|
|
42,804
|
|
4.93
|
|
|
36,589
|
|
5.12
|
|
0.2
|
|
17.6
|
|
Total interest-bearing
liabilities
|
|
|
2,186,919
|
|
0.96
|
%
|
|
2,171,678
|
|
0.60
|
%
|
|
2,173,166
|
|
0.38
|
%
|
|
2,183,488
|
|
0.35
|
%
|
|
1,890,630
|
|
0.37
|
%
|
0.7
|
|
15.7
|
|
Noninterest-bearing
deposits
|
|
|
870,890
|
|
|
|
|
893,968
|
|
|
|
|
872,883
|
|
|
|
|
916,415
|
|
|
|
|
703,712
|
|
|
|
(2.6)
|
|
23.8
|
|
Accrued expenses and
other liabilities
|
|
|
21,647
|
|
|
|
|
21,336
|
|
|
|
|
19,927
|
|
|
|
|
24,567
|
|
|
|
|
141,825
|
|
|
|
1.5
|
|
(84.7)
|
|
Stockholders'
equity
|
|
|
361,623
|
|
|
|
|
357,383
|
|
|
|
|
353,192
|
|
|
|
|
353,011
|
|
|
|
|
301,095
|
|
|
|
1.2
|
|
20.1
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,441,079
|
|
|
|
$
|
3,444,365
|
|
|
|
$
|
3,419,168
|
|
|
|
$
|
3,477,481
|
|
|
|
$
|
3,037,262
|
|
|
|
(0.1)
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.04
|
%
|
|
|
|
3.18
|
%
|
|
|
|
2.98
|
%
|
|
|
|
2.66
|
%
|
|
|
|
2.74
|
%
|
|
|
|
|
Net interest
margin
|
|
|
|
|
3.35
|
%
|
|
|
|
3.38
|
%
|
|
|
|
3.10
|
%
|
|
|
|
2.78
|
%
|
|
|
|
2.87
|
%
|
|
|
|
|
|
|
(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.
|
Shore Bancshares,
Inc.
Reconciliation of
Generally Accepted Accounting Principles (GAAP)
and Non-GAAP Measures
(Unaudited)
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
|
|
YTD
|
|
|
|
Q4
2022
|
|
Q3 2022
|
|
Q2 2022
|
|
Q1 2022
|
|
Q4 2021
|
|
12/31/2022
|
|
12/31/2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles return on average equity and return on
average tangible equity (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
8,407
|
|
$
|
9,658
|
|
$
|
7,499
|
|
$
|
5,613
|
|
$
|
2,723
|
|
$
|
31,177
|
|
$
|
15,368
|
|
Net Income - annualized
(A)
|
|
$
|
33,354
|
|
$
|
38,317
|
|
$
|
30,078
|
|
$
|
22,764
|
|
$
|
10,803
|
|
$
|
31,177
|
|
$
|
15,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding
net amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
merger related expenses
|
|
$
|
9,463
|
|
$
|
10,144
|
|
$
|
8,054
|
|
$
|
6,541
|
|
$
|
8,176
|
|
$
|
34,201
|
|
$
|
22,279
|
|
Net income, excluding
net amortization of intangible assets
and merger related expenses - annualized (B)
|
|
$
|
37,543
|
|
$
|
40,245
|
|
$
|
32,305
|
|
$
|
26,527
|
|
$
|
32,437
|
|
$
|
34,201
|
|
$
|
22,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets excluding net amortization of
intangible assets and merger related expenses - Non-GAAP
|
|
|
1.09
|
%
|
|
1.17
|
%
|
|
0.94
|
%
|
|
0.76
|
%
|
|
1.07
|
%
|
|
0.99
|
%
|
|
0.95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity (C)
|
|
$
|
361,623
|
|
$
|
357,383
|
|
$
|
353,192
|
|
$
|
353,011
|
|
$
|
301,095
|
|
$
|
355,850
|
|
$
|
224,055
|
|
Less: Average
goodwill and other intangible assets
|
|
|
(69,077)
|
|
|
(69,558)
|
|
|
(70,057)
|
|
|
(70,711)
|
|
|
(52,692)
|
|
|
(69,845)
|
|
|
(27,535)
|
|
Average tangible equity
(D)
|
|
$
|
292,546
|
|
$
|
287,825
|
|
$
|
283,135
|
|
$
|
282,300
|
|
$
|
248,403
|
|
$
|
286,005
|
|
$
|
196,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP) (A)/(C)
|
|
|
9.22
|
%
|
|
10.72
|
%
|
|
8.52
|
%
|
|
6.45
|
%
|
|
3.59
|
%
|
|
8.76
|
%
|
|
6.86
|
%
|
Return on average
tangible equity (Non-GAAP) (B)/(D)
|
|
|
12.83
|
%
|
|
13.98
|
%
|
|
11.41
|
%
|
|
9.40
|
%
|
|
13.06
|
%
|
|
11.96
|
%
|
|
11.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles GAAP efficiency ratio and non-GAAP
efficiency ratio (Note 2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(E)
|
|
$
|
21,000
|
|
$
|
18,899
|
|
$
|
20,094
|
|
$
|
20,332
|
|
$
|
23,497
|
|
$
|
80,322
|
|
$
|
56,806
|
|
Less:
Amortization of intangible assets
|
|
|
(460)
|
|
|
(499)
|
|
|
(511)
|
|
|
(517)
|
|
|
(381)
|
|
|
(1,988)
|
|
|
(734)
|
|
Merger Expenses
|
|
|
(967)
|
|
|
(159)
|
|
|
(241)
|
|
|
(730)
|
|
|
(7,615)
|
|
|
(2,098)
|
|
|
(8,530)
|
|
Adjusted noninterest
expense (F)
|
|
$
|
19,573
|
|
$
|
18,241
|
|
$
|
19,342
|
|
$
|
19,085
|
|
$
|
15,501
|
|
$
|
76,236
|
|
$
|
47,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(G)
|
|
|
26,943
|
|
|
27,315
|
|
|
24,618
|
|
|
22,430
|
|
|
20,639
|
|
|
101,302
|
|
|
64,130
|
|
Add:
Taxable-equivalent adjustment
|
|
|
40
|
|
|
35
|
|
|
38
|
|
|
39
|
|
|
13
|
|
|
155
|
|
|
121
|
|
Taxable-equivalent net
interest income (H)
|
|
$
|
26,983
|
|
$
|
27,350
|
|
$
|
24,656
|
|
$
|
22,469
|
|
$
|
20,652
|
|
$
|
101,457
|
|
$
|
64,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
(I)
|
|
$
|
5,862
|
|
$
|
5,344
|
|
$
|
5,833
|
|
$
|
6,046
|
|
$
|
5,129
|
|
$
|
23,086
|
|
|
13,498
|
|
Less: Investment
securities (gains)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
Adjusted noninterest
income (J)
|
|
$
|
5,862
|
|
$
|
5,344
|
|
$
|
5,833
|
|
$
|
6,046
|
|
$
|
5,129
|
|
$
|
23,086
|
|
$
|
13,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) (E)/(G)+(I)
|
|
|
64.01
|
%
|
|
57.87
|
%
|
|
65.99
|
%
|
|
71.40
|
%
|
|
91.19
|
%
|
|
64.57
|
%
|
|
73.18
|
%
|
Efficiency ratio
(Non-GAAP) (F)/(H)+(J)
|
|
|
59.59
|
%
|
|
55.79
|
%
|
|
63.44
|
%
|
|
66.93
|
%
|
|
60.13
|
%
|
|
61.21
|
%
|
|
61.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles book value per common share
and tangible book value per common share (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(L)
|
|
$
|
364,285
|
|
$
|
357,221
|
|
$
|
352,777
|
|
$
|
351,864
|
|
$
|
350,693
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(68,813)
|
|
|
(69,288)
|
|
|
(69,787)
|
|
|
(70,299)
|
|
|
(70,956)
|
|
|
|
|
|
|
|
Tangible equity
(M)
|
|
$
|
295,472
|
|
$
|
287,933
|
|
$
|
282,990
|
|
$
|
281,565
|
|
$
|
279,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(N)
|
|
|
19,865
|
|
|
19,858
|
|
|
19,850
|
|
|
19,843
|
|
|
19,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share (GAAP) (L)/(N)
|
|
$
|
18.34
|
|
$
|
17.99
|
|
$
|
17.77
|
|
$
|
17.73
|
|
$
|
17.71
|
|
|
|
|
|
|
|
Tangible book value per
common share (Non-GAAP) (M)/(N)
|
|
$
|
14.87
|
|
$
|
14.50
|
|
$
|
14.26
|
|
$
|
14.19
|
|
$
|
14.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciles equity to assets and tangible
equity to tangible assets (Note 1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(O)
|
|
$
|
364,285
|
|
$
|
357,221
|
|
$
|
352,777
|
|
$
|
351,864
|
|
$
|
350,693
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(68,813)
|
|
|
(69,288)
|
|
|
(69,787)
|
|
|
(70,299)
|
|
|
(70,956)
|
|
|
|
|
|
|
|
Tangible equity
(P)
|
|
$
|
295,472
|
|
$
|
287,933
|
|
$
|
282,990
|
|
$
|
281,565
|
|
$
|
279,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets (Q)
|
|
$
|
3,477,276
|
|
$
|
3,446,804
|
|
$
|
3,442,550
|
|
$
|
3,494,497
|
|
$
|
3,460,136
|
|
|
|
|
|
|
|
Less: Goodwill
and other intangible assets
|
|
|
(68,813)
|
|
|
(69,288)
|
|
|
(69,787)
|
|
|
(70,299)
|
|
|
(70,956)
|
|
|
|
|
|
|
|
Tangible assets
(R)
|
|
$
|
3,408,463
|
|
$
|
3,377,516
|
|
$
|
3,372,763
|
|
$
|
3,424,198
|
|
$
|
3,389,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
equity/assets (GAAP) (O)/(Q)
|
|
|
10.48
|
%
|
|
10.36
|
%
|
|
10.25
|
%
|
|
10.07
|
%
|
|
10.14
|
%
|
|
|
|
|
|
|
Period-end tangible
equity/tangible assets (Non-GAAP) (P)/(R)
|
|
|
8.67
|
%
|
|
8.52
|
%
|
|
8.39
|
%
|
|
8.22
|
%
|
|
8.25
|
%
|
|
|
|
|
|
|
|
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:https://www.prnewswire.com/news-releases/shore-bancshares-reports-2022-financial-results-301731847.html
SOURCE Shore Bancshares, Inc.