EASTON, Md., July 23 MD-ShoreBanc-q2-earns
EASTON, Md., July 23 /PRNewswire-FirstCall/ -- Shore Bancshares, Inc.
(Nasdaq: SHBI) reported net income of $2.766 million or $0.33 per diluted
share for the second quarter of 2008, compared to $3.372 million or $0.40 per
diluted share for the first quarter of 2008 and $3.356 million or $0.40 per
diluted share for the second quarter of 2007. Net income for the first half
of 2008 was $6.1 million or $0.73 per diluted share, compared to $6.8 million
or $0.81 per diluted share for the first half of 2007.
"Having passed the halfway mark during a year that will surely prove among
the most difficult for many community banks, we think our relative performance
has been very good and our outlook remains quite positive as it relates to the
stability and uniqueness of our markets as well as our growth prospects, our
asset quality and our capital strength," said W. Moorhead Vermilye, president
and chief executive officer of Shore Bancshares, Inc. "We are cautious, but
upbeat and we see the glass as much more full than empty."
"At June 30, our total stockholders' equity was $123 million, with average
equity to average assets at 12.45% and average tangible equity to average
tangible assets at 10.43%. Our capital ratios continue to be well in excess
of regulatory minimums."
"We believe our loan quality is excellent, especially given current
economic conditions across the country and also closer to home in the
mid-Atlantic region. We also believe the close proximity of our home markets
on the Delmarva Peninsula to the major metro centers from New York down to the
Norfolk-area tidewater complex gives us far more benefits than we tend to get
credit for."
"Our loan delinquencies and nonperforming assets remain at very low
levels. We added $615 thousand to our provision for loan losses during the
second quarter, due to economic conditions and to keep pace with overall loan
growth, which was $33 million in new loans during the second quarter, as loans
were up 4.1%. Our ratio of nonperforming assets to total assets stood at a
very favorable 0.47% at June 30, 2008 and net charge-offs for the second
quarter amounted to $259 thousand. All of these measures reflect continuing
adherence to our traditional very conservative approach to originating loans
and to the broader process of managing overall credit quality."
"During the second quarter, the underlying strength of our markets and our
position as the dominant independent local banking company on the Delmarva
Peninsula combined to produce both very respectable loan growth, plus nearly
$2 million in new noninterest (fee-based) income. The increase in fee-based
revenue over the second quarter of 2007 was primarily the result of our
acquisition of two insurance agencies during the fourth quarter of 2007. We
think the acquisitions will bode well as we strive to diversify overall
fee-based revenue sources to help stabilize the impact of volatile interest
rates that impact the lending side of our business."
"On a related note, we continued to fund our loan growth primarily through
our own local core deposit-gathering activities. In a very competitive
environment for deposits, we were able to hold the resulting decline in our
net interest margin to 49 basis points during the second quarter versus a year
ago (and a 25 basis point decline versus the linked first quarter of 2008). So
the margin stood at 4.17% for the second quarter of 2008 and 4.30% for the
first half of 2008, which we believe is better than decent, given the
operating environment for community banks," said Vermilye. "From a strategic
standpoint, we feel our company is well-positioned to take advantage of rising
rates in the future. In the meantime, we plan to remain focused on strong
underwriting and core business organic growth initiatives -- areas in which we
traditionally excel."
The Company's return on average assets for the second quarter of 2008 was
1.12%, compared to 1.38% and 1.43% for the quarters ended March 31, 2008 and
June 30, 2007, respectively. The return on average stockholders' equity was
8.98% for the second quarter of 2008, compared to 10.96% for the first quarter
of 2008 and 11.69% for the second quarter of 2007.
The Company's return on average assets for the first six months of 2008
was 1.25%, compared to 1.43% for the first six months of 2007. The return on
average stockholders' equity was 10.02% for the first half of 2008, compared
to 11.89% for the first half of 2007.
At June 30, 2008, total assets were $1.019 billion, total deposits were
$818.7 million, and total stockholders' equity was $123.0 million compared to
$956.9 million, $765.9 million and $120.2 million, respectively, at December
31, 2007. The increase in total assets of approximately $62 million since
December 31, 2007 related mainly to growth in loans, funded primarily by
deposit growth. The growth in loans was $65.2 million during the first half
of 2008, with period-end loans totaling $841.6 million at June 30, 2008.
Review of Quarterly Financial Results
Net interest income for the second quarter of 2008 was $9.6 million, a
decrease of 4.0% from the first quarter of 2008 and a decrease of 6.0% from
the same period last year. Lower yields on earning assets were the primary
reason for the decreases. The Company's net interest margin was 4.17% for the
second quarter of 2008, a decrease of 25 basis points when compared to the
first quarter of 2008 and a decrease of 49 basis points when compared to the
second quarter of 2007.
The provision for credit losses was $615 thousand for the three months
ended June 30, 2008. The comparable amounts were $462 thousand and $413
thousand for the three months ended March 31, 2008 and June 30, 2007,
respectively. The increased provision for the second quarter of 2008 when
compared to the first quarter of 2008 and the second quarter of 2007 reflected
the continued growth in the loan portfolio and current economic conditions.
Net charge-offs were $259 thousand for the second quarter of 2008, $87
thousand for the first quarter of 2008 and $34 thousand for the second quarter
of 2007. Quarter-to-date annualized net charge-offs to average loans was
0.13% for the second quarter of 2008, 0.04% for the first quarter of 2008 and
0.02% for the second quarter of 2007. Nonperforming assets to total assets was
0.47% at June 30, 2008. The comparable nonperforming asset ratio was 0.34% at
March 31, 2008 and 0.24% at June 30, 2007. The allowance for credit losses to
period-end loans was 0.98% at both June 30, 2008 and March 31, 2008 and 0.94%
at June 30, 2007. Management believes that the provision for credit losses and
the resulting allowance were adequate at June 30, 2008.
Noninterest income for the second quarter of 2008 increased $1.9 million
when compared to the second quarter of 2007. The increase was primarily the
result of the acquisition of two insurance agencies during the fourth quarter
of 2007. Service charge income increased $135 thousand, insurance agency
commissions increased $1.5 million and other noninterest income increased $250
thousand for the second quarter of 2008 when compared to the second quarter of
2007. Noninterest income decreased $308 thousand from the first quarter of
2008 due to a decrease in insurance agency commissions of $356 thousand. When
compared to the first quarter of 2008 service charge income increased $46
thousand.
Noninterest expense for the second quarter of 2008 increased $2.0 million
when compared to the second quarter of 2007. The increase was primarily
attributable to the operating expenses of the two insurance agencies acquired
during the fourth quarter of 2007. Salaries and benefits increased $1.0
million and other noninterest expenses increased $885 thousand for the second
quarter of 2008 when compared to the second quarter of 2007. Noninterest
expense increased $138 thousand from the first quarter of 2008 primarily due
to an increase in other noninterest expenses partially offset by a decrease in
salaries and benefits.
Review of Six-Month Financial Results
Net interest income for the first six months of 2008 was $19.7 million, a
decrease of 2.4% when compared to the first six months of 2007. The decrease
was primarily the result of lower yields on earning assets. The net interest
margin declined 26 basis points from 4.56% for the first half of 2007 to 4.30%
for the first half of 2008.
The provisions for credit losses for the six months ended June 30, 2008
and 2007 were $1.1 million and $655 thousand, respectively. Net charge-offs
were $346 thousand and $70 thousand for the six months ended June 30, 2008 and
2007, respectively. The increased provision in 2008 reflected the overall
growth of the loan portfolio as well as current economic conditions.
Year-to-date annualized net charge-offs to average loans was 0.09% for the
first half of 2008 and 0.02% for the first half of 2007.
Noninterest income for the six months ended June 30, 2008 totaled $10.7
million, an increase of $3.8 million when compared to the same period in 2007.
The increase was primarily due to the acquisition of the two insurance
agencies during the fourth quarter of 2007. Service charge income increased
$317 thousand, insurance agency commissions increased $3.0 million and other
noninterest income increased $494 thousand for the first half of 2008 when
compared to the first half of 2007.
Noninterest expense for the six months ended June 30, 2008 was $19.3
million, an increase of $3.7 million when compared to the same period in 2007.
The increase was primarily attributable to the operating expenses of the two
insurance agencies acquired during the fourth quarter of 2007. Salaries and
benefits increased $2.1 million and other noninterest expenses increased $1.5
million for the first half of 2008 when compared to the first half of 2007.
Shore Bancshares Information
Shore Bancshares, Inc. is a financial holding company headquartered in
Easton, Maryland and is the largest independent bank holding company located
on Maryland's Eastern Shore. It is the parent company of three banks, The
Talbot Bank of Easton, Maryland, The Centreville National Bank of Maryland,
and The Felton Bank; three insurance producer firms, The Avon-Dixon Agency,
LLC, Elliott Wilson Insurance, LLC and Jack Martin and Associates, Inc; a
wholesale insurance company, TSGIA, Inc; two insurance premium finance
companies, Mubell Finance, LLC and ESFS, Inc; a registered investment adviser
firm, Wye Financial Services, LLC; and a mortgage broker subsidiary, Wye
Mortgage Group, LLC.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
do not represent historical facts, but statements about management's beliefs,
plans and objectives. These statements are evidenced by terms such as
"anticipate," "estimate," "should," "expect," "believe," "intend," and similar
expressions. Although these statements reflect management's good faith
beliefs and projections, they are not guarantees of future performance and
they may not prove true. These projections involve risk and uncertainties
that could cause actual results to differ materially from those addressed in
the forward-looking statements. For a discussion of these risks and
uncertainties, see the section of the periodic reports filed by Shore
Bancshares, Inc. with the Securities and Exchange Commission entitled "Risk
Factors."
Shore Bancshares, Inc.
Financial Highlights
(Dollars in thousands,
except per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
20082007 %Change2008 2007 %Change
PROFITABILITY FOR THE
PERIOD
Net interest income $9,632 $10,242 (6.0)% $19,662 $20,147 (2.4)%
Provision for
credit losses 615 413 48.9 1,077 655 64.4
Noninterest income5,1943,261 59.310,6966,909 54.8
Noninterest expense 9,7297,747 25.619,320 15,638 23.5
Income before
income taxes 4,4825,343 (16.1)9,961 10,763 (7.5)
Income tax expense1,7161,987 (13.6)3,8234,004 (4.5)
Net income $2,766 $3,356 (17.6) $6,138 $6,759 (9.2)
Return on average
assets1.12%1.43% (21.7)%1.25%1.43% (12.6)%
Return on average
equity8.9811.69 (23.2)10.0211.89 (15.7)
Net interest margin4.17 4.66 (10.5) 4.30 4.56 (5.7)
Efficiency ratio
- GAAP based 65.6257.37 14.4 63.6457.80 10.1
PER SHARE DATA
Basic net income $0.33$0.40 (17.5)% $0.73$0.81 (9.9)%
Diluted net income 0.33 0.40 (17.5) 0.73 0.81 (9.9)
Dividends paid 0.16 0.16 - 0.32 0.32 -
Book value at
period end 14.6513.726.8
Tangible book value
at period end12.0112.12 (0.9)
Market value at
period end 18.7225.85 (27.6)
Market range:
High26.4729.15 (9.2)26.4730.76 (13.9)
Low 18.5223.98 (22.8)18.5223.54 (21.3)
AT PERIOD END
Loans $841,600 $731,211 15.1%
Securities 91,842 126,305 (27.3)
Assets1,019,463 940,7638.4
Deposits818,656 764,7287.1
Stockholders'
equity 123,038 114,9307.1
CAPITAL AND CREDIT
QUALITY RATIOS
Average equity to
average assets 12.41% 12.21% 12.45% 12.04%
Annualized net
charge-offs to
average loans 0.13 0.02 0.09 0.02
Allowance for
credit losses
to period-end loans 0.98 0.94
Nonperforming assets
to total assets 0.47 0.24
Shore Bancshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands,
except per share data)
June 30, June 30,
2008 2008
compared compared
toto
June 30, Dec. 31, June 30,Dec. 31, June 30,
2008 2007 20072007 2007
ASSETS
Cash and due from
banks$19,532 $17,198 $16,743 13.6% 16.7%
Interest-bearing
deposits with
other banks 343 3,03615,553 (88.7)(97.8)
Federal funds sold 23,111 6,64615,226 247.7 51.8
Investments
available-for-sale
(at fair value) 80,72197,137 112,353 (16.9)(28.2)
Investments
held-to-maturity 11,12112,89613,952 (13.8)(20.3)
Loans 841,600 776,350 731,211 8.4 15.1
Less: allowance
for credit losses (8,282) (7,551) (6,885) 9.7 20.3
Loans, net833,318 768,799 724,326 8.4 15.0
Premises and
equipment, net14,46515,61715,965 (7.4) (9.4)
Accrued interest
receivable 4,843 5,008 5,065 (3.3) (4.4)
Goodwill 15,95415,95411,939 - 33.6
Other intangible
assets, net6,179 6,436 1,421 (4.0)334.8
Other real estate
owned - 176 313(100.0) (100.0)
Other assets9,876 8,008 7,907 23.3 24.9
Total assets$1,019,463 $956,911 $940,763 6.5 8.4
LIABILITIES
Noninterest-bearing
deposits$109,718 $104,081 $110,305 5.4 (0.5)
Interest-bearing
deposits 708,938 661,814 654,423 7.1 8.3
Total deposits818,656 765,895 764,728 6.9 7.1
Short-term borrowings 58,26347,69427,560 22.2 111.4
Long-term debt 8,48512,48527,000 (32.0)(68.6)
Accrued interest
payable and other
liabilities 11,02110,602 6,545 4.0 68.4
Total liabilities 896,425 836,676 825,833 7.1 8.5
STOCKHOLDERS' EQUITY
Common stock, par
value $0.01;
authorized
35,000,000 shares 848484 - -
Additional paid in
capital 29,66329,53929,487 0.4 0.6
Retained earnings 93,49890,36586,356 3.5 8.3
Accumulated other
comprehensive
income (loss) (207) 247 (997) (183.8) 79.2
Total stockholders'
equity 123,038 120,235 114,930 2.3 7.1
Total liabilities
and stockholders'
equity$1,019,463 $956,911 $940,763 6.5 8.4
Period-end shares
outstanding 8,400 8,381 8,379 0.2 0.3
Book value per share$14.65$14.35$13.72 2.1 6.8
Shore Bancshares, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2008 2007 % Change 2008 2007 % Change
INTEREST INCOME
Interest and fees
on loans $13,961 $14,210(1.8)% $28,521 $27,834 2.5%
Interest and dividends
on investment
securities:
Taxable 9451,291 (26.8) 2,0252,575 (21.4)
Tax-exempt109 135 (19.3) 232 259 (10.4)
Interest on
federal funds sold 83 290 (71.4) 205 810 (74.7)
Interest on deposits
with other banks29 329 (91.2) 67 667 (90.0)
Total interest
income 15,127 16,255(6.9) 31,050 32,145(3.4)
INTEREST EXPENSE
Interest on deposits 4,9975,402(7.5) 10,340 10,770(4.0)
Interest on
short-term borrowings 316 27614.5 682 55922.0
Interest on
long-term debt 182 335 (45.7) 366 669 (45.3)
Total interest
expense 5,4956,013(8.6) 11,388 11,998(5.1)
NET INTEREST INCOME9,632 10,242(6.0) 19,662 20,147(2.4)
Provision for credit
losses 615 41348.91,077 65564.4
NET INTEREST INCOME
AFTER PROVISION
FOR CREDIT LOSSES 9,0179,829(8.3) 18,585 19,492(4.7)
NONINTEREST INCOME
Service charges on
deposit accounts 917 78217.31,7881,47121.5
Investment securities
gains (losses) -1 (100.0) -1 (100.0)
Insurance agency
commissions 3,1111,56299.26,5783,60182.7
Other noninterest
income 1,166 91627.32,3301,83626.9
Total noninterest
income 5,1943,26159.3 10,6966,90954.8
NONINTEREST EXPENSE
Salaries and
employee benefits5,7594,71522.1 11,7439,64821.7
Occupancy expense 537 47413.31,036 984 5.3
Furniture and
equipment expense 298 348 (14.4) 584 670 (12.8)
Data processing 440 467(5.8) 910 899 1.2
Directors' fees 130 128 1.6 295 291 1.4
Amortization of
intangible assets 129 64 101.6 258 14775.5
Other noninterest
expenses 2,4361,55157.14,4942,99949.8
Total noninterest
expense 9,7297,74725.6 19,320 15,63823.5
Income before income
taxes 4,4825,343 (16.1) 9,961 10,763(7.5)
Income tax expense 1,7161,987 (13.6) 3,8234,004(4.5)
NET INCOME$2,766 $3,356 (17.6) $6,138 $6,759(9.2)
Weighted average
shares outstanding -
basic 8,3818,378 0.08,3798,380(0.0)
Weighted average
shares outstanding -
diluted 8,3888,393(0.1) 8,3878,395(0.1)
Basic net income per
share $0.33$0.40 (17.5) $0.73$0.81(9.9)
Diluted net income per
share 0.33 0.40 (17.5)0.73 0.81(9.9)
Dividends paid per
share 0.16 0.16 - 0.32 0.32 -
Shore Bancshares, Inc.
Financial Highlights By Quarter
(Dollars in thousands, except per share data)
2nd quarter 1st quarter
2008 2008
(2Q 08) (1Q 08)
PROFITABILITY FOR THE PERIOD
Net interest income $9,632 $10,030
Provision for credit losses 615 462
Noninterest income5,194 5,502
Noninterest expense 9,729 9,591
Income before income taxes4,482 5,479
Income tax expense1,716 2,107
Net income $2,766$3,372
Return on average assets 1.12% 1.38%
Return on average equity 8.98 10.96
Net interest margin4.17 4.42
Efficiency ratio - GAAP based 65.62 61.75
PER SHARE DATA
Basic net income $0.33 $0.40
Diluted net income 0.33 0.40
Dividends paid 0.16 0.16
Book value at period end 14.65 14.62
Tangible book value at period end 12.01 11.96
Market value at period end18.72 21.45
Market range:
High26.47 23.40
Low 18.52 20.00
AT PERIOD END
Loans $841,600 $808,583
Securities 91,84299,062
Assets 1,019,463 1,003,836
Deposits 818,656 808,917
Stockholders' equity 123,038 122,699
CAPITAL AND CREDIT QUALITY RATIOS
Average equity to average assets 12.41%12.56%
Annualized net charge-offs to
average loans 0.13 0.04
Allowance for credit losses to
period-end loans 0.98 0.98
Nonperforming assets to total assets 0.47 0.34
4th quarter 3rd quarter 2nd quarter
20072007 2007
(4Q 07) (3Q 07)(2Q 07)
PROFITABILITY FOR THE PERIOD
Net interest income$10,426 $10,463$10,242
Provision for credit losses465 604413
Noninterest income 4,715 3,055 3,261
Noninterest expense 9,302 7,599 7,747
Income before income taxes 5,374 5,315 5,343
Income tax expense 2,034 1,964 1,987
Net income $3,340 $3,351 $3,356
Return on average assets 1.40% 1.42% 1.43%
Return on average equity 11.78 11.51 11.69
Net interest margin 4.704.74 4.66
Efficiency ratio - GAAP based61.44 56.21 57.37
PER SHARE DATA
Basic net income $0.40 $0.40 $0.40
Diluted net income0.400.40 0.40
Dividends paid0.160.16 0.16
Book value at period end 14.35 14.05 13.72
Tangible book value at period end11.68 12.46 12.12
Market value at period end 21.95 24.14 25.85
Market range:
High 24.72 27.05 29.15
Low20.00 20.52 23.98
AT PERIOD END
Loans $776,350$750,457 $731,211
Securities 110,033 122,773126,305
Assets 956,911 939,877940,763
Deposits 765,895 760,123764,728
Stockholders' equity 120,235 117,736114,930
CAPITAL AND CREDIT QUALITY RATIOS
Average equity to average assets 11.91% 12.30% 12.21%
Annualized net charge-offs to
average loans0.060.06 0.02
Allowance for credit losses to
period-end loans 0.970.96 0.94
Nonperforming assets to total
assets 0.390.47 0.24
2Q 08 2Q 08
compared to compared to
1Q 08 2Q 07
PROFITABILITY FOR THE PERIOD
Net interest income(4.0)%(6.0)%
Provision for credit losses33.1 48.9
Noninterest income (5.6) 59.3
Noninterest expense 1.4 25.6
Income before income taxes(18.2)(16.1)
Income tax expense(18.6)(13.6)
Net income(18.0)(17.6)
Return on average assets (18.8)% (21.7)%
Return on average equity (18.1)(23.2)
Net interest margin(5.7)(10.5)
Efficiency ratio - GAAP based 6.3 14.4
PER SHARE DATA
Basic net income (17.5)% (17.5)%
Diluted net income(17.5)(17.5)
Dividends paid- -
Book value at period end0.2 6.8
Tangible book value at period end 0.4 (0.9)
Market value at period end(12.7)(27.6)
Market range:
High 13.1 (9.2)
Low (7.4)(22.8)
AT PERIOD END
Loans 4.1% 15.1%
Securities (7.3)(27.3)
Assets 1.6 8.4
Deposits1.2 7.1
Stockholders' equity0.3 7.1
CAPITAL AND CREDIT QUALITY RATIOS
Average equity to average assets
Annualized net charge-offs to
average loans
Allowance for credit losses to
period-end loans
Nonperforming assets to total assets
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter
(Dollars in thousands, except per share data)
2Q 08 1Q 08
INTEREST INCOME
Interest and fees on loans$13,961 $14,560
Interest and dividends on
investment securities:
Taxable945 1,080
Tax-exempt 109 123
Interest on federal funds sold83 122
Interest on deposits with other banks 2938
Total interest income 15,12715,923
INTEREST EXPENSE
Interest on deposits4,997 5,343
Interest on short-term borrowings 316 366
Interest on long-term debt182 184
Total interest expense 5,495 5,893
NET INTEREST INCOME 9,63210,030
Provision for credit losses615 462
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 9,017 9,568
NONINTEREST INCOME
Service charges on deposit accounts 917 871
Investment securities gains (losses)- -
Insurance agency commissions3,111 3,467
Other noninterest income1,166 1,164
Total noninterest income5,194 5,502
NONINTEREST EXPENSE
Salaries and employee benefits 5,759 5,984
Occupancy expense 537 499
Furniture and equipment expense 298 286
Data processing 440 470
Directors' fees 130 165
Amortization of intangible assets 129 129
Other noninterest expenses 2,436 2,058
Total noninterest expense9,729 9,591
Income before income taxes 4,482 5,479
Income tax expense 1,716 2,107
NET INCOME $2,766$3,372
Weighted average shares outstanding -
basic 8,381 8,391
Weighted average shares outstanding -
diluted 8,388 8,400
Basic net income per share $0.33 $0.40
Diluted net income per share 0.33 0.40
Dividends paid per share 0.16 0.16
4Q 07 3Q 07 2Q 07
INTEREST INCOME
Interest and fees on loans $14,958 $14,732 $14,210
Interest and dividends on
investment securities:
Taxable 1,205 1,325 1,291
Tax-exempt124 128 135
Interest on federal funds sold 120 178 290
Interest on deposits with other banks 46 180 329
Total interest income 16,453 16,543 16,255
INTEREST EXPENSE
Interest on deposits 5,430 5,493 5,402
Interest on short-term borrowings426 279 276
Interest on long-term debt 171 308 335
Total interest expense 6,027 6,080 6,013
NET INTEREST INCOME10,426 10,463 10,242
Provision for credit losses 465 604 413
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 9,961 9,859 9,829
NONINTEREST INCOME
Service charges on deposit accounts 952 949 782
Investment securities gains (losses) 4 - 1
Insurance agency commissions 2,694 1,403 1,562
Other noninterest income 1,065 703 916
Total noninterest income4,715 3,055 3,261
NONINTEREST EXPENSE
Salaries and employee benefits 5,520 4,823 4,715
Occupancy expense518 460 474
Furniture and equipment expense 324 318 348
Data processing 467 454 467
Directors' fees 178 136 128
Amortization of intangible assets130 56 64
Other noninterest expenses 2,165 1,352 1,551
Total noninterest expense 9,302 7,599 7,747
Income before income taxes 5,374 5,315 5,343
Income tax expense 2,034 1,964 1,987
NET INCOME $3,340 $3,351 $3,356
Weighted average shares outstanding -
basic 8,380 8,380 8,378
Weighted average shares outstanding -
diluted8,391 8,392 8,393
Basic net income per share $0.40 $0.40 $0.40
Diluted net income per share 0.400.400.40
Dividends paid per share 0.160.160.16
2Q 08 2Q 08
compared tocompared to
1Q 08 2Q 07
INTEREST INCOME
Interest and fees on loans (4.1)% (1.8)%
Interest and dividends on
investment securities:
Taxable (12.5) (26.8)
Tax-exempt(11.4) (19.3)
Interest on federal funds sold (32.0) (71.4)
Interest on deposits with other banks(23.7) (91.2)
Total interest income (5.0) (6.9)
INTEREST EXPENSE
Interest on deposits (6.5) (7.5)
Interest on short-term borrowings(13.7) 14.5
Interest on long-term debt(1.1) (45.7)
Total interest expense (6.8) (8.6)
NET INTEREST INCOME(4.0) (6.0)
Provision for credit losses33.1 48.9
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES(5.8) (8.3)
NONINTEREST INCOME
Service charges on deposit accounts5.3 17.3
Investment securities gains (losses) - (100.0)
Insurance agency commissions (10.3) 99.2
Other noninterest income 0.2 27.3
Total noninterest income (5.6) 59.3
NONINTEREST EXPENSE
Salaries and employee benefits(3.8) 22.1
Occupancy expense 7.6 13.3
Furniture and equipment expense4.2 (14.4)
Data processing (6.4) (5.8)
Directors' fees (21.2) 1.6
Amortization of intangible assets- 101.6
Other noninterest expenses18.4 57.1
Total noninterest expense 1.4 25.6
Income before income taxes(18.2) (16.1)
Income tax expense(18.6) (13.6)
NET INCOME(18.0) (17.6)
Weighted average shares outstanding -
basic (0.1) 0.0
Weighted average shares outstanding -
diluted (0.1) (0.1)
Basic net income per share(17.5) (17.5)
Diluted net income per share (17.5) (17.5)
Dividends paid per share - -
SOURCE Shore Bancshares, Inc.
