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Shore Bancshares Reports 2013 Results

EASTON, Md., Jan. 23, 2014 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) today reported net income of $1.2 million or $0.14 per diluted common share for the fourth quarter of 2013, compared to a net loss of $11.4 million or $(1.35) per diluted common share for the third quarter of 2013, and a net loss of $5.1 million or $(0.60) per diluted common share for the fourth quarter of 2012.  The Company reported a net loss of $9.6 million or $(1.14) per diluted common share for both fiscal year 2013 and fiscal year 2012.

When comparing the fourth quarter of 2013 to the third quarter of 2013, the primary reason for the improved results was a decline in the provision for credit losses which was impacted during the third quarter of 2013 by the execution of agreements by the Company's wholly owned subsidiary, The Talbot Bank of Easton (the "Bank"), to sell loans and other real estate owned (the "Asset Sale").  Charge-offs of $19.6 million were taken on the loans subject to the Asset Sale to reflect the value to be realized upon sale.  Subsequently, the provision for credit losses was increased $19.6 million to replenish the allowance for credit losses while other real estate owned subject to the Asset Sale was written down $182 thousand for a total pretax loss of $19.8 million.  When comparing the fourth quarter of 2013 to the fourth quarter of 2012, the primary reasons for the improved results were a decline in the provision for credit losses due to lower charge-offs and nonaccrual loans, and a $1.3 million loss incurred during the fourth quarter of 2012 to terminate a portion of an interest rate cap instrument.  Results were flat when comparing fiscal year 2013 to fiscal year 2012, with higher noninterest income offset by higher noninterest expenses and lower net interest income.

"We were pleased to report fourth quarter net income which was ahead of consensus estimates.  The completion of the Asset Sale in the third quarter resulted in a much lower provision for credit losses in the fourth quarter and was the principal driver of our results.  We are still focused on reducing charge-offs and nonaccrual loans.  However, with a substantial portion of our credit problems behind us we can now turn our attention to revenue generation.  Despite the significant strategic initiatives undertaken during the last year, total stockholders' equity to total assets at December 31, 2013 was 9.80%," said Lloyd L. "Scott" Beatty, Jr., president and chief executive officer.  "The economy across our footprint is showing some signs of improvement in the retail, small business and commercial middle-market sectors.  However, real estate development and construction remains anemic compared to the pre-recession levels."

Balance Sheet Review

Total assets were $1.054 billion at December 31, 2013, a $131.7 million, or 11.1%, decrease when compared to the $1.186 billion at the end of 2012.  The decline in total assets was primarily due to a decrease in loans ($73.2 million) and interest-bearing deposits with other banks ($55.5 million).  The decline in loans was mainly due to the Asset Sale and charge-offs while the decline in interest-bearing deposits reflected a reduction in excess liquidity. 

Total deposits decreased $115.8 million, or 11.0%, to $933.5 million at December 31, 2013, mainly due to a decline in money market deposit accounts ($67.9 million) and time deposits ($56.0 million), partially offset by an increase in noninterest-bearing demand deposits ($18.8 million).  The decrease in money market deposit accounts was associated with the Company's participation in the Promontory Insured Network Deposits Program ("IND Program").  In December 2012, the Company decided to partially exit the IND Program to decrease its excess liquidity and, in June 2013, the Company fully exited the IND Program.  The decrease in time deposits also reduced the Company's excess liquidity.  Total stockholders' equity declined $10.7 million, or 9.4%, to $103.3 million at December 31, 2013.  For fiscal year 2013, the ratio of average equity to average assets was 10.31% and the ratio of average tangible equity to average tangible assets was 8.95%.

Review of Quarterly Financial Results

Net interest income was $8.6 million for the fourth quarter of 2013, compared to $8.8 million for the third quarter of 2013 and $8.4 million for the fourth quarter of 2012.  The decrease in net interest income when compared to the third quarter of 2013 was due to a greater decline in interest income than the decline in interest expense.  The decrease in interest income was primarily due to a decline in average loan balances while the decrease in interest expense was primarily due to lower average balances of and rates paid on time deposits.  The higher net interest income for the fourth quarter of 2013 when compared to the fourth quarter of 2012 was due to a greater decline in interest expense than the decline in interest income.  The decrease in interest expense was mainly due to exiting the IND Program and terminating the interest rate caps associated with the IND Program.  The Company's net interest margin was 3.47% for the fourth quarter of 2013, 3.54% for the third quarter of 2013 and 3.02% for the fourth quarter of 2012.

The provision for credit losses was $474 thousand for the fourth quarter of 2013, $22.5 million for the third quarter of 2013 and $9.7 million for the fourth quarter of 2012.  The provision for credit losses for the third quarter of 2013 included $19.6 million to replenish the allowance for credit losses for the charge-off of loans associated with the Asset Sale.  The lower provision for credit losses for the fourth quarter of 2013 when compared to the third quarter of 2013 and the fourth quarter of 2012 was due to lower charge-offs and nonaccrual loans.  Net charge-offs were $1.1 million for the fourth quarter of 2013, $26.9 million for the third quarter of 2013 ($19.6 million related to the Asset Sale) and $6.6 million for the fourth quarter of 2012.  The charge offs in all three quarters were mainly real estate related loans.  The ratio of annualized net charge-offs to average loans was 0.58% for the fourth quarter of 2013, 13.81% for the third quarter of 2013 and 3.29% for the fourth quarter of 2012.  The ratio of the allowance for credit losses to period-end loans was 1.51% at December 31, 2013, 1.57% at September 30, 2013 and 2.04% at December 31, 2012. 

At December 31, 2013, nonperforming assets excluding nonaccrual loans held for sale were $18.7 million, a decrease of $4.6 million, or 19.8%, when compared to September 30, 2013 and a decrease of $25.9 million, or 58.1%, when compared to December 31, 2012.  Similarly, accruing troubled debt restructurings ("TDRs") excluding TDRs held for sale were $26.1 million at December 31, 2013, a decrease of $3.4 million, or 11.4%, when compared to September 30, 2013 and $26.3 million, or 50.2%, when compared to December 31, 2012.  At December 31, 2013, the ratio of nonaccrual loans excluding nonaccrual loans held for sale to total assets was 1.39%, lower than the 1.66% and 3.08% at September 30, 2013 and December 31, 2012, respectively.  Likewise, the ratio of accruing TDRs excluding TDRs held for sale to total assets at December 31, 2013 was 2.47%, decreasing from 2.80% at September 30, 2013 and 4.41% at December 31, 2012.  When comparing December 31, 2013 to September 30, 2013, the positive trend in nonperforming assets and TDRs, as well as the corresponding asset quality ratios, was primarily due to the Company's continued focus on the resolution of its nonperforming assets and TDRs.  When comparing December 31, 2013 to December 31, 2012, the positive trend in nonperforming assets and TDRs was mainly accomplished with the Asset Sale.  See pages 4 and 9 of this release for additional detail.

Total noninterest income for the fourth quarter of 2013 decreased $577 thousand, or 12.0%, when compared to the third quarter of 2013.  The decrease was primarily due to $265 thousand less in income from an insurance investment included in other noninterest income and $247 thousand less in insurance agency commissions.  Total noninterest income for the fourth quarter of 2013 increased $1.6 million, or 61.7%, when compared to the fourth quarter of 2012.  Included in other noninterest income for the fourth quarter of 2012 was a $1.3 million loss incurred to terminate a portion of the previously mentioned interest rate caps. 

Total noninterest expense for the fourth quarter of 2013 increased $500 thousand, or 5.0%, when compared to the third quarter of 2013 primarily due to higher write-downs of other real estate owned ($152 thousand) and FDIC insurance premiums ($146 thousand).  When compared to the fourth quarter of 2012, total noninterest expense for the fourth quarter of 2013 increased $783 thousand, or 8.1%, primarily due to higher FDIC insurance premiums ($226 thousand), salaries and benefits ($156 thousand) and write-downs of other real estate owned ($120 thousand).  

Review of 2013 Financial Results

Net interest income for 2013 was $34.9 million, a decrease of $463 thousand, or 1.3%, when compared to 2012 due to a greater decline in interest income than the decline in interest expense.  The decrease in interest income was primarily due to lower average balances of and yields earned on loans while the decrease in interest expense was primarily due to lower balances of and rates paid on money market and time deposits.  However, the net interest margin improved to 3.48% for 2013 when compared to 3.23% for 2012.

The provisions for credit losses for 2013 and 2012 were $27.8 million and $27.7 million, respectively, while net charge-offs were $33.1 million and $26.0 million for 2013 and 2012, respectively.  The ratio of annualized net charge-offs to average loans was 4.32% for 2013 and 3.20% for 2012.

Total noninterest income for 2013increased $1.7 million, or 10.8%, when compared to 2012.  The increase was primarily due to higher insurance agency commissions ($833 thousand) and gains on sales of investment securities ($635 thousand), and fewer losses on sales of other real estate owned ($452 thousand), partially offset by lower service charges on deposit accounts ($180 thousand).

Total noninterest expense for 2013 increased $1.1 million, or 2.9%, when compared to 2012.  The increase was primarily due to higher marketing expenses ($510 thousand) included in other noninterest expenses, FDIC insurance premiums ($433 thousand) and insurance agency commissions expense ($407 thousand).  The increased marketing costs were mainly related to a branding project for the Company and its subsidiaries.

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 two banks, The Talbot Bank of Easton, Maryland, and CNB; 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; and an insurance premium finance company, Mubell Finance, LLC.  Shore Bancshares, Inc. engages in the trust services business through the trust department at CNB under the name "Wye Financial & Trust".  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 risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements.  For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Shore Bancshares, Inc. with the Securities and Exchange Commission entitled "Risk Factors".

The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

  














Shore Bancshares, Inc.











Page 4 of 13

Financial Highlights













(Dollars in thousands, except per share data)








































For the Three Months Ended


For the Twelve Months Ended



December 31,


December 31,



2013


2012

Change


2013


2012

Change


PROFITABILITY FOR THE PERIOD













   Net interest income

$ 8,570


$ 8,381


2.3

%

$ 34,876


$ 35,339


(1.3)

%

   Provision for credit losses

474


9,650


(95.1)


27,784


27,745


0.1


   Noninterest income

4,215


2,606


61.7


17,459


15,758


10.8


   Noninterest expense

10,468


9,685


8.1


40,686


39,555


2.9


   Income (loss) before income taxes

1,843


(8,348)


122.1


(16,135)


(16,203)


0.4


   Income tax expense (benefit)

668


(3,274)


120.4


(6,501)


(6,565)


1.0


   Net income (loss)

$ 1,175


$ (5,074)


123.2


$ (9,634)


$ (9,638)


-




























   Return on average assets

0.44

%

(1.71)

%

215

bp

(0.89)

%

(0.82)

%

(7)

bp

   Return on average equity

4.50


(17.15)


2,165


(8.64)


(8.07)


(57)


   Return on average tangible equity (1)

5.53


(19.73)


2,526


(9.92)


(9.14)


(78)


   Net interest margin

3.47


3.02


45


3.48


3.23


25


   Efficiency ratio - GAAP

81.72


87.89


(617)


77.59


77.17


42


   Efficiency ratio - Non-GAAP (1)

81.14


77.77


337


77.43


75.16


227




























PER SHARE DATA













   Basic net income (loss) per common share

$ 0.14


$ (0.60)


123.3

%

$ (1.14)


$ (1.14)


-

%

   Diluted net income (loss) per common share

0.14


(0.60)


123.3


(1.14)


(1.14)


-


   Dividends paid per common share

-


-


-


-


0.01


(100.0)


   Book value per common share at period end

12.19


13.48


(9.6)








   Tangible book value per common share at period end (1)

10.31


11.56


(10.8)








   Market value at period end

9.22


5.39


71.1








   Market range:













     High

9.45


6.98


35.4


9.45


7.45


26.8


     Low

8.50


4.65


82.8


5.20


4.65


11.8




























AVERAGE BALANCE SHEET DATA













   Loans

$ 718,070


$ 799,512


(10.2)

%

$ 764,659


$ 814,167


(6.1)

%

   Securities

145,181


144,459


0.5


139,241


137,686


1.1


   Earning assets

982,519


1,108,585


(11.4)


1,006,311


1,097,851


(8.3)


   Assets

1,060,315


1,183,135


(10.4)


1,081,127


1,172,452


(7.8)


   Deposits

938,293


1,042,842


(10.0)


950,332


1,028,809


(7.6)


   Stockholders' equity

103,507


117,700


(12.1)


111,445


119,359


(6.6)




























CREDIT QUALITY DATA AT PERIOD END













   Net charge-offs

$ 1,050


$ 6,614


(84.1)

%

$ 33,050


$ 26,042


26.9

%














   Nonaccrual loans excluding nonaccrual loans held for sale (hfs)

$ 14,626


$ 36,474


(59.9)








   Loans 90 days past due and still accruing

270


460


(41.3)








   Other real estate owned

3,779


7,659


(50.7)








   Total nonperforming assets excluding nonaccrual loans hfs

18,675


44,593


(58.1)








   Nonaccrual loans hfs

3,521


-


-








   Total nonperforming assets including nonaccrual loans hfs

$ 22,196


$ 44,593


(50.2)





















   Accruing troubled debt restructurings (TDRs)

$ 26,088


$ 52,353


(50.2)





















   Total nonperforming assets and accruing TDRs excluding nonaccrual loans hfs

$ 44,763


$ 96,946


(53.8)








   Nonaccrual loans hfs

3,521


-


-








   Total nonperforming assets and accruing TDRs including nonaccrual loans hfs


$ 48,284


$ 96,946


(50.2)





















(1) See the reconciliation table on page 13 of 13.







































Shore Bancshares, Inc.











Page 5 of 13

Financial Highlights













(Dollars in thousands, except per share data)








































For the Three Months Ended


For the Twelve Months Ended



December 31,


December 31,



2013


2012

Change


2013


2012

Change















CAPITAL AND CREDIT QUALITY RATIOS













   Average equity to average assets

9.76

%

9.95

%

(19)

bp

10.31

%

10.18

%

13

bp

   Average tangible equity to average tangible assets (1)

8.38


8.69


(31)


8.95


8.90


5















   Annualized net charge-offs to average loans

0.58


3.29


(271)


4.32


3.20


112















   Allowance for credit losses as a percent of:













   Period-end loans

1.51


2.04


(53)








   Nonaccrual loans excluding nonaccrual loans hfs

73.33


43.84


2,949








   Nonaccrual loans including nonaccrual loans hfs

59.10


43.84


1,526








   Nonperforming assets excluding nonaccrual loans hfs

57.43


35.86


2,157








   Nonperforming assets including nonaccrual loans hfs

48.32


35.86


1,246








   Accruing TDRs

41.11


30.54


1,057








   Nonperforming assets and accruing TDRs excluding nonaccrual loans hfs

23.96


16.49


747








   Nonperforming assets and accruing TDRs including nonaccrual loans hfs

22.21


16.49


572





















   As a percent of total loans:













   Nonaccrual loans excluding nonaccrual loans hfs

2.05


4.65


(260)








   Accruing TDRs

3.66


6.67


(301)








   Nonaccrual loans and accruing TDRs excluding nonaccrual loans hfs

5.71


11.32


(561)





















   As a percent of total loans+other real estate owned:













   Nonperforming assets excluding nonaccrual loans hfs

2.61


5.63


(302)








   Nonperforming assets and accruing TDRs excluding nonaccrual loans hfs

6.25


12.23


(598)





















   As a percent of total assets:













   Nonaccrual loans excluding nonaccrual loans hfs

1.39


3.08


(169)








   Nonaccrual loans including nonaccrual loans hfs

1.72


3.08


(136)








   Nonperforming assets excluding nonaccrual loans hfs

1.77


3.76


(199)








   Nonperforming assets including nonaccrual loans hfs

2.11


3.76


(165)








   Accruing TDRs

2.47


4.41


(194)








   Nonperforming assets and accruing TDRs excluding nonaccrual loans hfs


4.25


8.18


(393)








   Nonperforming assets and accruing TDRs including nonaccrual loans hfs

4.58


8.18


(360)





















(1) See the reconciliation table on page 13 of 13.


































Shore Bancshares, Inc.






Page 6 of 13

Consolidated Balance Sheets








(In thousands, except per share data)






























December 31, 2013



December 31,


December 31,



compared to



2013


2012



December 31, 2012


ASSETS








   Cash and due from banks

$ 21,238


$ 26,579



(20.1)

%

   Interest-bearing deposits with other banks

109,384


164,864



(33.7)


   Federal funds sold

468


8,750



(94.7)


   Investments available for sale (at fair value)

147,101


145,508



1.1


   Investments held to maturity

5,185


2,657



95.1










   Loans held for sale

3,521


-



-










   Loans

711,919


785,082



(9.3)


   Less: allowance for credit losses

(10,725)


(15,991)



(32.9)


   Loans, net

701,194


769,091



(8.8)










   Premises and equipment, net

15,198


15,593



(2.5)


   Goodwill

12,454


12,454



-


   Other intangible assets, net

3,520


3,816



(7.8)


   Other real estate owned, net

3,779


7,659



(50.7)


   Other assets

31,082


28,836



7.8










            Total assets

$ 1,054,124


$ 1,185,807



(11.1)










LIABILITIES








   Noninterest-bearing deposits

$ 172,797


$ 153,992



12.2


   Interest-bearing deposits

760,671


895,281



(15.0)


         Total deposits

933,468


1,049,273



(11.0)










   Short-term borrowings

10,140


13,761



(26.3)


   Accrued expenses and other liabilities

7,217


8,747



(17.5)


            Total liabilities

950,825


1,071,781



(11.3)










STOCKHOLDERS' EQUITY








   Common stock, par value $0.01; authorized








    35,000,000 shares

85


85



-


   Additional paid in capital

32,207


32,155



0.2


   Retained earnings

71,444


81,078



(11.9)


   Accumulated other comprehensive (loss) income

(437)


708



(161.7)


            Total stockholders' equity

103,299


114,026



(9.4)










            Total liabilities and stockholders' equity


$ 1,054,124


$ 1,185,807



(11.1)










Period-end common shares outstanding

8,471


8,457



0.2


Book value per common share

$ 12.19


$ 13.48



(9.6)





















Shore Bancshares, Inc.









Page 7 of 13

Consolidated Statements of Operations











(In thousands, except per share data)


































For the Three Months Ended


For the Twelve Months Ended



December 31,


December 31,



2013


2012

% Change


2013


2012

% Change


INTEREST INCOME











   Interest and fees on loans

$ 9,242


$ 10,193

(9.3)

%

$ 39,058


$ 42,698

(8.5)

%

   Interest and dividends on investment securities:












      Taxable

504


666

(24.3)


2,072


2,815

(26.4)


      Tax-exempt

3


12

(75.0)


17


104

(83.7)


   Interest on federal funds sold

1


3

(66.7)


4


10

(60.0)


   Interest on deposits with other banks

57


86

(33.7)


200


274

(27.0)


            Total interest income

9,807


10,960

(10.5)


41,351


45,901

(9.9)













INTEREST EXPENSE











   Interest on deposits

1,230


2,570

(52.1)


6,448


10,501

(38.6)


   Interest on short-term borrowings

7


9

(22.2)


27


45

(40.0)


   Interest on long-term debt

-


-

-


-


16

(100.0)


            Total interest expense

1,237


2,579

(52.0)


6,475


10,562

(38.7)













NET INTEREST INCOME

8,570


8,381

2.3


34,876


35,339

(1.3)


Provision for credit losses

474


9,650

(95.1)


27,784


27,745

0.1













NET INTEREST INCOME (LOSS) AFTER PROVISION











 FOR CREDIT LOSSES

8,096


(1,269)

738.0


7,092


7,594

(6.6)













NONINTEREST INCOME











   Service charges on deposit accounts

599


653

(8.3)


2,371


2,551

(7.1)


   Trust and investment fee income

429


365

17.5


1,613


1,644

(1.9)


   Investment securities gains

-


-

-


913


278

228.4


   Insurance agency commissions

2,477


2,292

8.1


10,647


9,814

8.5


   Loss on termination of cash flow hedge

-


(1,339)

100.0


(1,306)


(1,339)

2.5


   Other noninterest income

710


635

11.8


3,221


2,810

14.6


            Total noninterest income

4,215


2,606

61.7


17,459


15,758

10.8













NONINTEREST EXPENSE











   Salaries and wages

4,336


4,240

2.3


17,346


17,418

(0.4)


   Employee benefits

983


923

6.5


4,094


3,994

2.5


   Occupancy expense

569


609

(6.6)


2,344


2,559

(8.4)


   Furniture and equipment expense

252


235

7.2


1,020


963

5.9


   Data processing

773


654

18.2


2,900


2,717

6.7


   Directors' fees

92


107

(14.0)


354


474

(25.3)


   Amortization of intangible assets

74


74

-


296


392

(24.5)


   Insurance agency commissions expense

470


387

21.4


1,798


1,391

29.3


   FDIC insurance premium expense

613


387

58.4


1,813


1,380

31.4


   Write-downs of other real estate owned

371


251

47.8


1,318


1,328

(0.8)


   Other noninterest expenses

1,935


1,818

6.4


7,403


6,939

6.7


            Total noninterest expense

10,468


9,685

8.1


40,686


39,555

2.9













Income (loss) before income taxes

1,843


(8,348)

122.1


(16,135)


(16,203)

0.4


Income tax expense (benefit)

668


(3,274)

120.4


(6,501)


(6,565)

1.0













NET INCOME (LOSS)

$ 1,175


$ (5,074)

123.2


$ (9,634)


$ (9,638)

-













Weighted average shares outstanding - basic

8,463


8,457

0.1


8,461


8,457

-


Weighted average shares outstanding - diluted

8,474


8,457

0.2


8,461


8,457

-













Basic net income (loss) per common share

$ 0.14


$ (0.60)

123.3


$ (1.14)


$ (1.14)

-


Diluted net income (loss) per common share

0.14


(0.60)

123.3


(1.14)


(1.14)

-


Dividends paid per common share

-


-

-


-


0.01

(100.0)































Shore Bancshares, Inc.















Page 8 of 13

Consolidated Average Balance Sheets

















(Dollars in thousands)




















































For the Three Months Ended


For the Twelve Months Ended



December 31,


December 31,



2013


2012


2013


2012



Average


Yield/


Average


Yield/


Average


Yield/


Average


Yield/



balance


rate


balance


rate


balance


rate


balance


rate


Earning assets

















   Loans

$ 718,070


5.07

%

$ 799,512


5.09

%

$ 764,659


5.11

%

$ 814,167


5.26

%

   Loans held for sale

15,047


2.38


-


-


3,857


2.34


-


-


   Investment securities

















     Taxable

144,699


1.38


143,137


1.85


138,701


1.49


134,697


2.09


     Tax-exempt

482


4.39


1,322


5.05


540


4.84


2,989


5.25


   Federal funds sold

2,692


0.06


7,782


0.12


3,850


0.10


10,185


0.10


   Interest-bearing deposits

101,529


0.22


156,832


0.22


94,704


0.21


135,813


0.20


     Total earning assets

982,519


3.97

%

1,108,585


3.94

%

1,006,311


4.12

%

1,097,851


4.20

%

Cash and due from banks

20,900




21,258




22,603




20,256




Other assets

70,048




67,596




67,724




68,813




Allowance for credit losses

(13,152)




(14,304)




(15,511)




(14,468)




Total assets

$ 1,060,315




$ 1,183,135




$ 1,081,127




$ 1,172,452






































Interest-bearing liabilities

















   Demand deposits

$ 176,492


0.15

%

$ 169,398


0.18

%

$ 171,244


0.16

%

$ 160,741


0.18

%

   Money market and savings deposits (1)

211,294


0.12


281,593


1.21


221,808


0.49


279,126


1.17


   Certificates of deposit $100,000 or more


190,117


1.16


231,232


1.40


202,053


1.28


238,241


1.44


   Other time deposits

188,645


1.14


204,213


1.59


195,045


1.29


204,644


1.70


     Interest-bearing deposits

766,548


0.64


886,436


1.15


790,150


0.82


882,752


1.19


   Short-term borrowings

10,505


0.23


13,573


0.27


10,980


0.24


14,976


0.30


   Long-term debt

-


-


-


-


-


-


341


4.61


     Total interest-bearing liabilities

777,053


0.63

%

900,009


1.14

%

801,130


0.81

%

898,069


1.18

%

Noninterest-bearing deposits

171,745




156,406




160,182




146,057




Accrued expenses and other liabilities

8,010




9,020




8,370




8,967




Stockholders' equity

103,507




117,700




111,445




119,359




Total liabilities and stockholders' equity

$ 1,060,315




$ 1,183,135




$ 1,081,127




$ 1,172,452





















Net interest spread



3.34

%



2.80

%



3.31

%



3.02

%

Net interest margin



3.47

%



3.02

%



3.48

%



3.23

%



































(1)

Interest on money market and savings deposits includes an adjustment to expense related to interest rate caps and the hedged deposits associated with them. Interest expense for the fourth quarter of 2013 does not reflect this adjustment because the interest rate caps were terminated in June of 2013. However, this adjustment increased interest expense $552 thousand for the fourth quarter of 2012, $695 thousand for fiscal year 2013 and $2.0 million for fiscal year 2012.
















Shore Bancshares, Inc.













Page 9 of 13

Financial Highlights By Quarter















(Dollars in thousands, except per share data)














































4th quarter


3rd quarter


2nd quarter


1st quarter


4th quarter


4Q 13


4Q 13



2013


2013


2013


2013


2012


compared to


compared to



(4Q 13)


(3Q 13)


(2Q 13)


(1Q 13)


(4Q 12)


3Q 13


4Q 12


PROFITABILITY FOR THE PERIOD















   Taxable-equivalent net interest income

$ 8,595


$ 8,852


$ 9,028


$ 8,504


$ 8,413


(2.9)

%

2.2

%

   Less: Taxable-equivalent adjustment

25


24


27


27


32


4.2


(21.9)


   Net interest income

8,570


8,828


9,001


8,477


8,381


(2.9)


2.3


   Provision for credit losses

474


22,460


2,700


2,150


9,650


(97.9)


(95.1)


   Noninterest income

4,215


4,792


3,962


4,490


2,606


(12.0)


61.7


   Noninterest expense

10,468


9,968


9,759


10,491


9,685


5.0


8.1


   Income (loss) before income taxes

1,843


(18,808)


504


326


(8,348)


109.8


122.1


   Income tax expense (benefit)

668


(7,416)


143


104


(3,274)


109.0


120.4


   Net income (loss)

$ 1,175


$ (11,392)


$ 361


$ 222


$ (5,074)


110.3


123.2
































   Return on average assets

0.44

%

(4.24)

%

0.13

%

0.08

%

(1.71)

%

468

bp

215

bp

   Return on average equity

4.50


(39.68)


1.27


0.79


(17.15)


4,418


2,165


   Return on average tangible equity (1)

5.53


(46.03)


1.66


1.11


(19.73)


5,156


2,526


   Net interest margin

3.47


3.54


3.60


3.30


3.02


(7)


45


   Efficiency ratio - GAAP

81.72


73.06


75.13


80.74


87.89


866


(617)


   Efficiency ratio - Non-GAAP (1)

81.14


74.13


74.45


80.17


77.77


701


337
































PER SHARE DATA















   Basic net income (loss) per common share

$ 0.14


$ (1.35)


$ 0.04


$ 0.03


$ (0.60)


110.4

%

123.3

%

   Diluted net income (loss) per common share

0.14


(1.35)


0.04


0.03


(0.60)


110.4


123.3


   Dividends paid per common share

-


-


-


-


-


-


-


   Book value per common share at period end

12.19


12.06


13.43


13.51


13.48


1.1


(9.6)


   Tangible book value per common share at period end (1)

10.31


10.16


11.52


11.60


11.56


1.5


(10.8)


   Market value at period end

9.22


8.80


7.36


6.79


5.39


4.8


71.1


   Market range:















     High

9.45


9.06


7.75


6.91


6.98


4.3


35.4


     Low

8.50


7.06


5.97


5.20


4.65


20.4


82.8
































AVERAGE BALANCE SHEET DATA















   Loans

$ 718,070


$ 772,008


$ 785,442


$ 783,757


$ 799,512


(7.0)

%

(10.2)

%

   Securities

145,181


124,020


141,193


146,756


144,459


17.1


0.5


   Earning assets

982,519


993,068


1,005,474


1,044,755


1,108,585


(1.1)


(11.4)


   Assets

1,060,315


1,064,919


1,077,852


1,122,310


1,183,135


(0.4)


(10.4)


   Deposits

938,293


932,867


943,577


987,325


1,042,842


0.6


(10.0)


   Stockholders' equity

103,507


113,904


114,208


114,250


117,700


(9.1)


(12.1)
































CREDIT QUALITY DATA AT PERIOD END















   Net charge-offs

$ 1,050


$ 26,882


$ 2,712


$ 2,406


$ 6,614


(96.1)

%

(84.1)

%
















   Nonaccrual loans excluding nonaccrual loans held for sale (hfs)

$ 14,626


$ 17,501


$ 34,818


$ 31,813


$ 36,474


(16.4)


(59.9)


   Loans 90 days past due and still accruing

270


9


3


22


460


2,900.0


(41.3)


   Other real estate owned

3,779


5,776


6,408


8,366


7,659


(34.6)


(50.7)


   Total nonperforming assets excluding nonaccrual loans hfs

18,675


23,286


41,229


40,201


44,593


(19.8)


(58.1)


   Nonaccrual loans hfs

3,521


7,265


-


-


-


(51.5)


-


   Total nonperforming assets including nonaccrual loans hfs

$ 22,196


$ 30,551


$ 41,229


$ 40,201


$ 44,593


(27.3)


(50.2)

















   Accruing troubled debt restructurings (TDRs) excluding TDRs hfs

$ 26,088


$ 29,439


$ 50,278


$ 52,545


$ 52,353


(11.4)


(50.2)


   Accruing TDRs hfs

-


14,842


-


-


-


(100.0)


-


   Total accruing TDRs including TDRs hfs

$ 26,088


$ 44,281


$ 50,278


$ 52,545


$ 52,353


(41.1)


(50.2)

















   Total nonperforming assets and accruing TDRs excluding nonaccrual loans and TDRs hfs


$ 44,763


$ 52,725


$ 91,507


$ 92,746


$ 96,946


(15.1)


(53.8)


   Nonaccrual loans and TDRs hfs

3,521


22,107


-


-


-


(84.1)


-


   Total nonperforming assets and accruing TDRs including nonaccrual loans and TDRs hfs

$ 48,284


$ 74,832


$ 91,507


$ 92,746


$ 96,946


(35.5)


(50.2)

















(1) See the reconciliation table on page 13 of 13.













































Shore Bancshares, Inc.













Page 10 of 13

Financial Highlights By Quarter















(Dollars in thousands, except per share data)
























































4Q 13


4Q 13













compared to


compared to



4Q 13


3Q 13


2Q 13


1Q 13


4Q 12


3Q 13


4Q 12


CAPITAL AND CREDIT QUALITY RATIOS















   Average equity to average assets

9.76

%

10.70

%

10.60

%

10.18

%

9.95

%

(94)

bp

(19)

bp

   Average tangible equity to average tangible assets (1)

8.38


9.33


9.23


8.86


8.69


(95)


(31)

















   Annualized net charge-offs to average loans

0.58


13.81


1.38


1.25


3.29


(1,323)


(271)

















   Allowance for credit losses as a percent of:















   Period-end loans

1.51


1.57


2.01


2.00


2.04


(6)


(53)


   Nonaccrual loans excluding nonaccrual loans hfs

73.33


64.57


45.16


49.46


43.84


876


2,949


   Nonaccrual loans including nonaccrual loans hfs

59.10


45.63


45.16


49.46


43.84


1,347


1,526


   Nonperforming assets excluding nonaccrual loans hfs

57.43


48.53


38.14


39.14


35.86


890


2,157


   Nonperforming assets including nonaccrual loans hfs

48.32


36.99


38.14


39.14


35.86


1,133


1,246


   Accruing TDRs excluding TDRs hfs

41.11


38.39


31.27


29.95


30.54


272


1,057


   Accruing TDRs including TDRs hfs

41.11


25.52


31.27


29.95


30.54


1,559


1,057


   Nonperforming assets and accruing TDRs excluding nonaccrual loans and TDRs hfs

23.96


21.43


17.18


16.97


16.49


253


747


   Nonperforming assets and accruing TDRs including nonaccrual loans and TDRs hfs

22.21


15.10


17.18


16.97


16.49


711


572

















   As a percent of total loans:















   Nonaccrual loans excluding nonaccrual loans hfs

2.05


2.44


4.45


4.05


4.65


(39)


(260)


   Accruing TDRs excluding TDRs hfs

3.66


4.10


6.43


6.69


6.67


(44)


(301)


   Nonaccrual loans and accruing TDRs excluding nonaccrual loans and TDRs hfs

5.71


6.54


10.88


10.74


11.32


(83)


(561)

















   As a percent of total loans+other real estate owned:















   Nonperforming assets excluding nonaccrual loans hfs

2.61


3.21


5.23


5.06


5.63


(60)


(302)


   Nonperforming assets and accruing TDRs excluding nonaccrual loans and TDRs hfs


6.25


7.28


11.60


11.68


12.23


(103)


(598)

















   As a percent of total assets:















   Nonaccrual loans excluding nonaccrual loans hfs

1.39


1.66


3.30


2.88


3.08


(27)


(169)


   Nonaccrual loans including nonaccrual loans hfs

1.72


2.36


3.30


2.88


3.08


(64)


(136)


   Nonperforming assets excluding nonaccrual loans hfs

1.77


2.21


3.91


3.64


3.76


(44)


(199)


   Nonperforming assets including nonaccrual loans hfs

2.11


2.91


3.91


3.64


3.76


(80)


(165)


   Accruing TDRs excluding TDRs hfs

2.47


2.80


4.77


4.76


4.41


(33)


(194)


   Accruing TDRs including TDRs hfs

2.47


4.21


4.77


4.76


4.41


(174)


(194)


   Nonperforming assets and accruing TDRs excluding nonaccrual loans and TDRs hfs

4.25


5.01


8.68


8.40


8.18


(76)


(393)


   Nonperforming assets and accruing TDRs including nonaccrual loans and TDRs hfs

4.58


7.12


8.68


8.40


8.18


(254)


(360)

















(1) See the reconciliation table on page 13 of 13.













































Shore Bancshares, Inc.













Page 11 of 13

Consolidated Statements of Operations By Quarter
















(In thousands, except per share data)
























































4Q 13


4Q 13













compared to


compared to



4Q 13


3Q 13


2Q 13


1Q 13


4Q 12


3Q 13


4Q 12


INTEREST INCOME















   Interest and fees on loans

$ 9,242


$ 9,767


$ 10,142


$ 9,907


$ 10,193


(5.4)

%

(9.3)

%

   Interest and dividends on investment securities:















      Taxable

504


357


568


643


666


41.2


(24.3)


      Tax-exempt

3


5


4


5


12


(40.0)


(75.0)


   Interest on federal funds sold

1


-


1


2


3


-


(66.7)


   Interest on deposits with other banks

57


53


40


50


86


7.5


(33.7)


            Total interest income

9,807


10,182


10,755


10,607


10,960


(3.7)


(10.5)

















INTEREST EXPENSE















   Interest on deposits

1,230


1,348


1,748


2,122


2,570


(8.8)


(52.1)


   Interest on short-term borrowings

7


6


6


8


9


16.7


(22.2)


            Total interest expense

1,237


1,354


1,754


2,130


2,579


(8.6)


(52.0)

















NET INTEREST INCOME

8,570


8,828


9,001


8,477


8,381


(2.9)


2.3


Provision for credit losses

474


22,460


2,700


2,150


9,650


(97.9)


(95.1)

















NET INTEREST INCOME (LOSS) AFTER PROVISION















 FOR CREDIT LOSSES

8,096


(13,632)


6,301


6,327


(1,269)


159.4


738.0

















NONINTEREST INCOME















   Service charges on deposit accounts

599


600


600


572


653


(0.2)


(8.3)


   Trust and investment fee income

429


401


393


390


365


7.0


17.5


   Investment securities gains

-


-


913


-


-


-


-


   Insurance agency commissions

2,477


2,724


2,633


2,813


2,292


(9.1)


8.1


   Loss on termination of cash flow hedge

-


-


(1,306)


-


(1,339)


-


100.0


   Other noninterest income

710


1,067


729


715


635


(33.5)


11.8


            Total noninterest income

4,215


4,792


3,962


4,490


2,606


(12.0)


61.7

















NONINTEREST EXPENSE















   Salaries and wages

4,336


4,420


4,307


4,283


4,240


(1.9)


2.3


   Employee benefits

983


971


1,006


1,134


923


1.2


6.5


   Occupancy expense

569


566


612


597


609


0.5


(6.6)


   Furniture and equipment expense

252


275


243


250


235


(8.4)


7.2


   Data processing

773


718


706


703


654


7.7


18.2


   Directors' fees

92


86


55


121


107


7.0


(14.0)


   Amortization of intangible assets

74


74


74


74


74


-


-


   Insurance agency commissions expense

470


409


458


461


387


14.9


21.4


   FDIC insurance premium expense

613


467


367


366


387


31.3


58.4


   Write-downs of other real estate owned

371


219


56


672


251


69.4


47.8


   Other noninterest expenses

1,935


1,763


1,875


1,830


1,818


9.8


6.4


            Total noninterest expense

10,468


9,968


9,759


10,491


9,685


5.0


8.1

















Income (loss) before income taxes

1,843


(18,808)


504


326


(8,348)


109.8


122.1


Income tax expense (benefit)

668


(7,416)


143


104


(3,274)


109.0


120.4

















NET INCOME (LOSS)

$ 1,175


$ (11,392)


$ 361


$ 222


$ (5,074)


110.3


123.2

















Weighted average shares outstanding - basic

8,463


8,461


8,461


8,458


8,457


-


0.1


Weighted average shares outstanding - diluted

8,474


8,461


8,465


8,458


8,457


0.2


0.2

















Basic net income (loss) per common share

$ 0.14


$ (1.35)


$ 0.04


$ 0.03


$ (0.60)


110.4


123.3


Diluted net income (loss) per common share

0.14


(1.35)


0.04


0.03


(0.60)


110.4


123.3


Dividends paid per common share

-


-


-


-


-


-


-











































Shore Bancshares, Inc.























Page 12 of 13

Consolidated Average Balance Sheets By Quarter
























(Dollars in thousands)
































































































Average balance























4Q 13


4Q 13























compared to


compared to



4Q 13


3Q 13


2Q 13


1Q 13


4Q 12


3Q 13


4Q 12



Average


Yield/


Average


Yield/


Average


Yield/


Average


Yield/


Average


Yield/







balance


rate


balance


rate


balance


rate


balance


rate


balance


rate






Earning assets

























   Loans

$ 718,070


5.07

%

$ 772,008


5.03

%

$ 785,442


5.19

%

$ 783,757


5.14

%

$ 799,512


5.09

%

(7.0)

%

(10.2)

%

   Loans held for sale

15,047


2.38


-


-


-


-


-


-


-


-


-


-


   Investment securities

























     Taxable

144,699


1.38


123,499


1.15


140,614


1.62


146,176


1.78


143,137


1.85


17.2


1.1


     Tax-exempt

482


4.39


521


5.27


579


4.81


580


4.85


1,322


5.05


(7.5)


(63.5)


   Federal funds sold

2,692


0.06


1,618


0.07


2,992


0.10


8,184


0.11


7,782


0.12


66.4


(65.4)


   Interest-bearing deposits

101,529


0.22


95,422


0.22


75,847


0.21


106,058


0.19


156,832


0.22


6.4


(35.3)


     Total earning assets

982,519


3.97

%

993,068


4.08

%

1,005,474


4.30

%

1,044,755


4.13

%

1,108,585


3.94

%

(1.1)


(11.4)


Cash and due from banks

20,900




22,088




22,510




24,966




21,258




(5.4)


(1.7)


Other assets

70,048




65,001




66,967




69,185




67,596




7.8


3.6


Allowance for credit losses

(13,152)




(15,238)




(17,099)




(16,596)




(14,304)




(13.7)


(8.1)


Total assets

$ 1,060,315




$ 1,064,919




$ 1,077,852




$ 1,122,310




$ 1,183,135




(0.4)


(10.4)




















































Interest-bearing liabilities

























   Demand deposits

$ 176,492


0.15

%

$ 172,143


0.16

%

$ 162,589


0.15

%

$ 173,714


0.17

%

$ 169,398


0.18

%

2.5


4.2


   Money market and savings deposits (1)

211,294


0.12


207,162


0.12


225,117


0.67


244,182


0.97


281,593


1.21


2.0


(25.0)


   Certificates of deposit $100,000 or more


190,117


1.16


198,495


1.23


203,641


1.32


216,288


1.39


231,232


1.40


(4.2)


(17.8)


   Other time deposits

188,645


1.14


192,878


1.24


197,644


1.30


201,171


1.47


204,213


1.59


(2.2)


(7.6)


     Interest-bearing deposits

766,548


0.64


770,678


0.69


788,991


0.89


835,355


1.03


886,436


1.15


(0.5)


(13.5)


   Short-term borrowings

10,505


0.23


10,695


0.23


10,752


0.24


11,987


0.27


13,573


0.27


(1.8)


(22.6)


     Total interest-bearing liabilities

777,053


0.63

%

781,373


0.69

%

799,743


0.88

%

847,342


1.02

%

900,009


1.14

%

(0.6)


(13.7)


Noninterest-bearing deposits

171,745




162,189




154,586




151,970




156,406




5.9


9.8


Accrued expenses and other liabilities

8,010




7,453




9,315




8,748




9,020




7.5


(11.2)


Stockholders' equity

103,507




113,904




114,208




114,250




117,700




(9.1)


(12.1)


Total liabilities and stockholders' equity

$ 1,060,315




$ 1,064,919




$ 1,077,852




$ 1,122,310




$ 1,183,135




(0.4)


(10.4)



























Net interest spread



3.34

%



3.39

%



3.42

%



3.11

%



2.80

%





Net interest margin



3.47

%



3.54

%



3.60

%



3.30

%



3.02

%























































(1)

Interest on money market and savings deposits includes an adjustment to expense related to interest rate caps and the hedged deposits associated with them. Interest expense for the fourth and third quarters of 2013 does not reflect this adjustment because the interest rate caps were terminated in June of 2013. However, this adjustment increased interest expense $279 thousand for the second quarter of 2013, $416 thousand for the first quarter of 2013 and $552 thousand for the fourth quarter of 2012.
















Shore Bancshares, Inc.













Page 13 of 13

Reconciliation of Generally Accepted Accounting Principles (GAAP)















and Non-GAAP Measures















(In thousands, except per share data)









































YTD


YTD



4Q 13


3Q 13


2Q 13


1Q 13


4Q 12


12/31/2013


12/31/2012

















The following reconciles return on average equity and return on















 average tangible equity (Note 1):






























Net income (loss)

$ 1,175


$ (11,392)


$ 361


$ 222


$ (5,074)


$ (9,634)


$ (9,638)


Net income (loss) - annualized (A)

$ 4,662


$ (45,197)


$ 1,448


$ 900


$ (20,186)


$ (9,634)


$ (9,638)

















Net income (loss), excluding net amortization of intangible assets

$ 1,220


$ (11,347)


$ 406


$ 267


$ (5,029)


$ (9,455)


$ (9,401)

















Net income (loss), excluding net amortization of intangible















 assets - annualized (B)

$ 4,840


$ (45,018)


$ 1,628


$ 1,083


$ (20,007)


$ (9,455)


$ (9,401)

















Average stockholders' equity (C)

$ 103,507


$ 113,904


$ 114,208


$ 114,250


$ 117,700


$ 111,445


$ 119,359


Less: Average goodwill and other intangible assets

(16,018)


(16,092)


(16,166)


(16,242)


(16,313)


(16,129)


(16,454)


Average tangible equity (D)

$ 87,489


$ 97,812


$ 98,042


$ 98,008


$ 101,387


$ 95,316


$ 102,905

















Return on average equity (GAAP) (A)/(C)

4.50

%

(39.68)

%

1.27

%

0.79

%

(17.15)

%

(8.64)

%

(8.07)

%

Return on average tangible equity (Non-GAAP) (B)/(D)

5.53

%

(46.03)

%

1.66

%

1.11

%

(19.73)

%

(9.92)

%

(9.14)

%































The following reconciles GAAP efficiency ratio and non-GAAP















 efficiency ratio (Note 2):






























Noninterest expense (E)

$ 10,468


$ 9,968


$ 9,759


$ 10,491


$ 9,685


$ 40,686


$ 39,555


Less: Amortization of intangible assets

(74)


(74)


(74)


(74)


(74)


(296)


(392)


          Other nonrecurring adjustments

-


-


49


-


-


49


-


Adjusted noninterest expense (F)

$ 10,394


$ 9,894


$ 9,734


$ 10,417


$ 9,611


$ 40,439


$ 39,163

















Taxable-equivalent net interest income (G)

$ 8,595


$ 8,852


$ 9,028


$ 8,504


$ 8,413


$ 34,979


$ 35,502


Nonrecurring adjustment

-


-


(308)


-


-


(308)


-


Taxable-equivalent net interest income excluding nonrecurring adjustment (H)


$ 8,595


$ 8,852


$ 8,720


$ 8,504


$ 8,413


$ 34,671


$ 35,502

















Noninterest income (I)

$ 4,215


$ 4,792


$ 3,962


$ 4,490


$ 2,606


$ 17,459


$ 15,758


Less: Investment securities (gains)/losses

-


-


(913)


-


-


(913)


(278)


          Other nonrecurring (gains)/losses

-


(297)


1,306


-


1,339


1,009


1,122


Adjusted noninterest income (J)

$ 4,215


$ 4,495


$ 4,355


$ 4,490


$ 3,945


$ 17,555


$ 16,602

















Efficiency ratio (GAAP) (E)/(G)+(I)

81.72

%

73.06

%

75.13

%

80.74

%

87.89

%

77.59

%

77.17

%

Efficiency ratio (Non-GAAP) (F)/(H)+(J)

81.14

%

74.13

%

74.45

%

80.17

%

77.77

%

77.43

%

75.16

%































The following reconciles book value per common share and tangible















 book value per common share (Note 1):






























Stockholders' equity (K)

$ 103,299


$ 102,001


$ 113,594


$ 114,348


$ 114,026






Less: Goodwill and other intangible assets

(15,974)


(16,048)


(16,122)


(16,196)


(16,270)






Tangible equity (L)

$ 87,325


$ 85,953


$ 97,472


$ 98,152


$ 97,756





















Shares outstanding (M)

8,471


8,461


8,461


8,461


8,457





















Book value per common share (GAAP) (K)/(M)

$ 12.19


$ 12.06


$ 13.43


$ 13.51


$ 13.48






Tangible book value per common share (Non-GAAP) (L)/(M)

$ 10.31


$ 10.16


$ 11.52


$ 11.60


$ 11.56




































The following reconciles average equity to average assets and















 average tangible equity to average tangible assets (Note 1):






























Average stockholders' equity (N)

$ 103,507


$ 113,904


$ 114,208


$ 114,250


$ 117,700


$ 111,445


$ 119,359


Less: Average goodwill and other intangible assets

(16,018)


(16,092)


(16,166)


(16,242)


(16,313)


(16,129)


(16,454)


Average tangible equity (O)

$ 87,489


$ 97,812


$ 98,042


$ 98,008


$ 101,387


$ 95,316


$ 102,905

















Average assets (P)

$ 1,060,315


$ 1,064,919


$ 1,077,852


$ 1,122,310


$ 1,183,135


$ 1,081,127


$ 1,172,452


Less: Average goodwill and other intangible assets

(16,018)


(16,092)


(16,166)


(16,242)


(16,313)


(16,129)


(16,454)


Average tangible assets (Q)

$ 1,044,297


$ 1,048,827


$ 1,061,686


$ 1,106,068


$ 1,166,822


$ 1,064,998


$ 1,155,998

















Average equity/average assets (GAAP) (N)/(P)

9.76

%

10.70

%

10.60

%

10.18

%

9.95

%

10.31

%

10.18

%

Average tangible equity/average tangible assets (Non-GAAP) (O)/(Q)

8.38

%

9.33

%

9.23

%

8.86

%

8.69

%

8.95

%

8.90

%































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.





















 

SOURCE Shore Bancshares, Inc.

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