Attached files
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| 8-K - FORM 8-K - SHORE BANCSHARES INC | v407581_8k.htm |
Shore Bancshares Reports First Quarter 2015 Financial Results
EASTON, Md., April 20, 2015 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) reported net income of $1.409 million or $0.11 per diluted common share for the first quarter of 2015, compared to net income of $1.226 million or $0.10 per diluted common share for the fourth quarter of 2014, and net income of $1.258 million or $0.15 per diluted common share for the first quarter of 2014.
When comparing the first quarter of 2015 to the fourth quarter of 2014, the primary reason for the improved results was a $614 thousand increase in noninterest income partially offset by a decrease in net interest income of $97 thousand and an increase in noninterest expense of $194 thousand. When comparing the first quarter of 2015 to the first quarter of 2014, the primary reasons for the improved results were increases in net interest income of $216 thousand and a decrease in provision for credit losses of $325 thousand. While noninterest income and noninterest expense decreased $703 thousand and $411 thousand during the first quarter of 2015 compared to the same period in 2014, the decreases were almost solely due to the sale of Tri-State General Insurance Agency, LTD ("Tri-State") in the second quarter of 2014 and the corresponding lack of insurance commissions and commission expense related to Tri-State in the 2015 period. Excluding the commission expense for the 2014 period, noninterest expense was relatively flat between the two periods, reflecting the Company's efforts to contain operating expenses and increase efficiency.
"We are pleased to report our continuing improved earnings over the linked quarter and the first quarter of 2014 and the addition of our new Dover Branch which opened on January 21, 2015," said Lloyd L. "Scott" Beatty, Jr., president and chief executive officer. "As we continue our focus on expanding our market share by enhancing our business relationships and offering an array of new products to our customers we expect a continued positive earnings trend throughout 2015.
Balance Sheet Review
Total assets were $1.094 billion at March 31, 2015, a $6.3 million, or less than 1%, decrease when compared to $1.100 billion at the end of 2014. The decrease in total assets included a decline in interest-bearing deposits with other banks of $20.1 million which was offset by the increase in gross loans of $10.9 million, or a 6% annualized growth for the period, and the increase in investment securities available for sale of $4 million. This transition of assets allowed the Company to increase its net interest margin to 3.43% for the quarter from 3.36% for the fourth quarter of 2014.
Total deposits decreased $8.2 million, or 1%, when compared to December 31, 2014. The decrease in total deposits was mainly due to declines in time deposits of $11.3 million and $4.7 million in money market and savings deposits, which were offset by an increase in non-interest bearing deposits of $7.7 million. Total stockholders' equity increased $2.3 million, or 1.6%, when compared to the end of 2014. At March 31, 2015, the ratio of total equity to total assets was 13.05% and the ratio of total tangible equity to total tangible assets was 11.98%.
Total assets at March 31, 2015 increased $44.6 million, or 4.3%, when compared to total assets at March 31, 2014. The increase in total assets was primarily due to leveraging the proceeds from the capital raise in the second quarter of 2014 to increase securities by $87.9 million and net loans by $20.2 million. These increases were offset by the decline in interest-bearing deposits with other banks of $61.4 million.
Review of Quarterly Financial Results
Net interest income was $8.5 million for the first quarter of 2015, compared to $8.6 million for the fourth quarter of 2014 and $8.3 million for the first quarter of 2014. The decrease in net interest income when compared to the fourth quarter of 2014 was primarily due to the downward re-pricing of loans which occurred in the first quarter of 2015. The lower yields were partially offset by an increase in volume on loans and investments and with lower volumes of and rates paid on time deposits. The Company's net interest margin improved by 8 basis points to 3.43% over the fourth quarter of 2014. The increase in net interest income when compared to the first quarter of 2014 was primarily due to higher volumes of investment securities as well as a lower cost of deposits, offset by lower rates paid on loans. The Company's net interest margin when compared to the first
quarter of 2014 decreased 6 basis points to 3.43%, due to lower yields earned on loans, partially offset by lower volumes of and rates paid on time deposits.
The provision for credit losses was $650 thousand for the three months ended March 31, 2015. The comparable amounts were $650 thousand and $975 thousand for the three months ended December 31, 2014 and March 31, 2014, respectively. Although the provision for credit losses remained flat between the first quarter of 2015 and the fourth quarter of 2014, the amount of charge-offs decreased $1 million between the comparative quarters with the amount of gross loans increasing $10.9 million. The lower level of provision for credit losses when comparing the first quarter of 2015 to the first quarter of 2014 was primarily due to decreases in loan charge-offs and nonaccrual loans. Net charge-offs were $547 thousand for the first quarter of 2015, and $1.6 million for both the fourth and first quarters of 2014. The ratio of annualized net charge-offs to average loans was 0.31% for the first quarter of 2015, 0.88% for the fourth quarter of 2014 and 0.93% for the first quarter of 2014. The ratio of the allowance for credit losses to period-end loans at both March 31, 2015 and December 31, 2014 was 1.08% and 1.43% at March 31, 2014.
Nonperforming assets excluding troubled debt restructurings (TDRs) were $16.4 million at March 31, 2015, $17.2 million at December 31, 2014 and $23.9 million at March 31, 2014. Nonperforming assets including accruing TDRs at March 31, 2015 were $33.1 million, compared to $33.9 million at December 31, 2014 and $49.3 million at March 31, 2014. The decreases in nonperforming assets and TDRs are the result of the continued work out efforts and charge-offs period over period. At March 31, 2015, the ratio of nonaccrual loans to total assets was 1.18%, compared to 1.22% and 1.83% at December 31, 2014 and March 31, 2014, respectively. In addition, the ratio of accruing TDRs to total assets at both March 31, 2015 and December 31, 2014 was 1.52%, improving from 2.41% at March 31, 2014.
Total noninterest income for the first quarter of 2015 increased $614 thousand when compared to the fourth quarter of 2014 and decreased $703 thousand when compared to the first quarter of 2014. The increase from the fourth quarter of 2014 was the result of higher insurance agency commissions, mainly from contingency payments which are typically received in the first quarter of each year and are based on the prior year's performance. The decrease from the first quarter of 2014 was due to the loss of wholesale commission fees of $1.2 million resulting from the sale of Tri-State which was partially offset by an increase in retail insurance commissions of $418 thousand. In addition, service charges on deposit accounts and trust and investment fee income increased by $114 thousand in the aggregate.
Total noninterest expense for the first quarter of 2015 increased $194 thousand when compared to the fourth quarter of 2014 and decreased $411 thousand when compared to the first quarter of 2014. The increase in noninterest expense compared to the fourth quarter of 2014 was primarily due to higher costs associated with employee benefits of $200 thousand, which included higher insurance premiums for group insurance and federal unemployment insurance which is usually paid the first two quarters of the year. The decrease compared to the first quarter of 2014 was primarily the result of the sale of Tri-State which reduced insurance agency commission expense and general operating expenses by $1.1 million, offset by an increase in other noninterest expenses of $276 thousand which was primarily the result of increased professional fees and marketing expenses.
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 Maryland chartered commercial 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.; 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 risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Shore Bancshares, Inc. with the Securities and Exchange Commission entitled "Risk Factors".
The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
Shore Bancshares, Inc. |
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Financial Highlights |
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(Dollars in thousands, except per share data) |
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| For the Three Months Ended |
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| March 31, |
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PROFITABILITY FOR THE PERIOD |
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Net interest income | $ 8,539 |
| $ 8,323 |
| 2.6 | % |
Provision for credit losses | 650 |
| 975 |
| (33.3) |
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Noninterest income | 4,085 |
| 4,788 |
| (14.7) |
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Noninterest expense | 9,704 |
| 10,115 |
| (4.1) |
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Income before income taxes | 2,270 |
| 2,021 |
| 12.3 |
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Income tax expense | 861 |
| 763 |
| 12.8 |
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Net income | $ 1,409 |
| $ 1,258 |
| 12.0 |
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Return on average assets | 0.53 | % | 0.49 | % | 4 | bp |
Return on average equity | 4.03 |
| 4.88 |
| (85) |
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Return on average tangible equity (1) | 4.50 |
| 5.97 |
| (147) |
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Net interest margin | 3.43 |
| 3.49 |
| (6) |
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Efficiency ratio - GAAP | 76.74 |
| 77.01 |
| (27) |
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Efficiency ratio - Non-GAAP (1) | 76.48 |
| 76.44 |
| 4 |
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PER SHARE DATA |
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Basic net income per common share | $ 0.11 |
| $ 0.15 |
| (26.7) | % |
Diluted net income per common share | 0.11 |
| 0.15 |
| (26.7) |
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Dividends paid per common share | - |
| - |
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Book value per common share at period end | 11.31 |
| 12.35 |
| (8.4) |
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Tangible book value per common share at period end (1) | 10.26 |
| 10.47 |
| (2.0) |
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Market value at period end | 9.18 |
| 9.51 |
| (3.5) |
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Market range: |
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High | 9.30 |
| 9.99 |
| (6.9) |
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Low | 9.03 |
| 9.00 |
| 0.3 |
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AVERAGE BALANCE SHEET DATA |
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Loans | $ 714,780 |
| $ 710,133 |
| 0.7 | % |
Investment securities | 244,300 |
| 155,556 |
| 57.0 |
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Earning assets | 1,013,490 |
| 966,304 |
| 4.9 |
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Assets | 1,087,401 |
| 1,044,568 |
| 4.1 |
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Deposits | 932,460 |
| 923,524 |
| 1.0 |
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Stockholders' equity | 141,884 |
| 104,462 |
| 35.8 |
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CREDIT QUALITY DATA AT PERIOD END |
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Net charge-offs | $ 547 |
| $ 1,631 |
| (66.5) | % |
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Nonaccrual loans | $ 12,913 |
| $ 19,156 |
| (32.6) |
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Loans 90 days past due and still accruing | 36 |
| 121 |
| (70.2) |
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Other real estate owned | 3,469 |
| 4,672 |
| (25.7) |
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Total nonperforming assets | 16,418 |
| 23,949 |
| (31.4) |
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Accruing troubled debt restructurings (TDRs) | 16,644 |
| 25,333 |
| (34.3) |
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Total nonperforming assets and accruing TDRs | $ 33,062 |
| $ 49,282 |
| (32.9) |
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CAPITAL AND CREDIT QUALITY RATIOS |
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Period-end equity to assets | 13.05 | % | 9.97 | % | 308 | bp |
Period-end tangible equity to tangible assets (1) | 11.98 |
| 8.58 |
| 340 |
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Annualized net charge-offs to average loans | 0.31 |
| 0.93 |
| (62) |
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Allowance for credit losses as a percent of: |
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Period-end loans | 1.08 |
| 1.43 |
| (35) |
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Nonaccrual loans | 60.39 |
| 52.56 |
| 783 |
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Nonperforming assets | 47.50 |
| 42.04 |
| 546 |
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Accruing TDRs | 46.85 |
| 39.75 |
| 710 |
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Nonperforming assets and accruing TDRs | 23.59 |
| 20.43 |
| 316 |
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As a percent of total loans: |
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Nonaccrual loans | 1.79 |
| 2.72 |
| (93) |
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Accruing TDRs | 2.31 |
| 3.60 |
| (129) |
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Nonaccrual loans and accruing TDRs | 4.10 |
| 6.32 |
| (222) |
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As a percent of total loans+other real estate owned: |
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Nonperforming assets | 2.26 |
| 3.38 |
| (112) |
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Nonperforming assets and accruing TDRs | 4.56 |
| 6.96 |
| (240) |
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As a percent of total assets: |
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Nonaccrual loans | 1.18 |
| 1.83 |
| (65) |
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Nonperforming assets | 1.50 |
| 2.28 |
| (78) |
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Accruing TDRs | 1.52 |
| 2.41 |
| (89) |
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Nonperforming assets and accruing TDRs | 3.02 |
| 4.69 |
| (167) |
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(1) See the reconciliation table on page 11 of 11. |
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Shore Bancshares, Inc. |
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| Page 5 of 11 | |
Consolidated Balance Sheets |
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(In thousands, except per share data) |
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| March 31, 2015 |
| March 31, 2015 |
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| March 31, |
| December 31, |
| March 31, |
| compared to |
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| 2015 |
| 2014 |
| 2014 |
| December 31, 2014 |
| March 31, 2014 |
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ASSETS |
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Cash and due from banks | $ 24,319 |
| $ 24,211 |
| $ 22,668 |
| 0.4 | % | 7.3 | % |
Interest-bearing deposits with other banks | 48,398 |
| 68,460 |
| 109,831 |
| (29.3) |
| (55.9) |
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Federal funds sold | 3,241 |
| 3,552 |
| 399 |
| (8.8) |
| 712.3 |
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Investment securities available for sale (at fair value) | 240,111 |
| 236,108 |
| 152,247 |
| 1.7 |
| 57.7 |
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Investment securities held to maturity | 4,515 |
| 4,630 |
| 5,074 |
| (2.5) |
| (11.0) |
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Loans | 721,605 |
| 710,746 |
| 703,637 |
| 1.5 |
| 2.6 |
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Less: allowance for credit losses | (7,798) |
| (7,695) |
| (10,069) |
| 1.3 |
| (22.6) |
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Loans, net | 713,807 |
| 703,051 |
| 693,568 |
| 1.5 |
| 2.9 |
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Premises and equipment, net | 16,728 |
| 16,275 |
| 15,108 |
| 2.8 |
| 10.7 |
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Goodwill | 11,931 |
| 11,931 |
| 12,454 |
| - |
| (4.2) |
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Other intangible assets, net | 1,297 |
| 1,331 |
| 3,446 |
| (2.6) |
| (62.4) |
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Other real estate owned, net | 3,469 |
| 3,691 |
| 4,672 |
| (6.0) |
| (25.7) |
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Other assets | 26,312 |
| 27,162 |
| 30,047 |
| (3.1) |
| (12.4) |
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Total assets | $ 1,094,128 |
| $ 1,100,402 |
| $ 1,049,514 |
| (0.6) |
| 4.3 |
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LIABILITIES |
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Noninterest-bearing deposits | $ 201,518 |
| $ 193,814 |
| $ 165,459 |
| 4.0 |
| 21.8 |
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Interest-bearing deposits | 739,256 |
| 755,190 |
| 763,985 |
| (2.1) |
| (3.2) |
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Total deposits | 940,774 |
| 949,004 |
| 929,444 |
| (0.9) |
| 1.2 |
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Short-term borrowings | 5,098 |
| 4,808 |
| 8,070 |
| 6.0 |
| (36.8) |
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Accrued expenses and other liabilities | 5,510 |
| 6,121 |
| 7,368 |
| (10.0) |
| (25.2) |
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Total liabilities | 951,382 |
| 959,933 |
| 944,882 |
| (0.9) |
| 0.7 |
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STOCKHOLDERS' EQUITY |
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Common stock, par value $0.01; authorized |
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35,000,000 shares | 126 |
| 126 |
| 85 |
| - |
| 48.2 |
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Additional paid in capital | 63,669 |
| 63,533 |
| 32,229 |
| 0.2 |
| 97.6 |
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Retained earnings | 77,903 |
| 76,494 |
| 72,702 |
| 1.8 |
| 7.2 |
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Accumulated other comprehensive income (loss) | 1,048 |
| 316 |
| (384) |
| 231.6 |
| 372.9 |
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Total stockholders' equity | 142,746 |
| 140,469 |
| 104,632 |
| 1.6 |
| 36.4 |
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Total liabilities and stockholders' equity | $ 1,094,128 |
| $ 1,100,402 |
| $ 1,049,514 |
| (0.6) |
| 4.3 |
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Period-end common shares outstanding | 12,625 |
| 12,618 |
| 8,471 |
| 0.1 |
| 49.0 |
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Book value per common share | $ 11.31 |
| $ 11.13 |
| $ 12.35 |
| 1.6 |
| (8.4) |
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Shore Bancshares, Inc. |
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| Page 6 of 11 | |
Consolidated Statements of Operations |
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(In thousands, except per share data) |
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| For the Three Months Ended |
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INTEREST INCOME |
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Interest and fees on loans | $ 8,491 |
| $ 8,875 | (4.3) | % |
Interest and dividends on investment securities: |
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Taxable | 924 |
| 521 | 77.4 |
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Tax-exempt | 3 |
| 3 | - |
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Interest on federal funds sold | 1 |
| - | - |
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Interest on deposits with other banks | 26 |
| 56 | (53.6) |
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Total interest income | 9,445 |
| 9,455 | (0.1) |
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INTEREST EXPENSE |
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Interest on deposits | 901 |
| 1,127 | (20.1) |
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Interest on short-term borrowings | 5 |
| 5 | - |
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Total interest expense | 906 |
| 1,132 | (20.0) |
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NET INTEREST INCOME | 8,539 |
| 8,323 | 2.6 |
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Provision for credit losses | 650 |
| 975 | (33.3) |
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NET INTEREST INCOME AFTER PROVISION |
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FOR CREDIT LOSSES | 7,889 |
| 7,348 | 7.4 |
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NONINTEREST INCOME |
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Service charges on deposit accounts | 634 |
| 558 | 13.6 |
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Trust and investment fee income | 469 |
| 431 | 8.8 |
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Insurance agency commissions | 2,475 |
| 3,077 | (19.6) |
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Other noninterest income | 507 |
| 722 | (29.8) |
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Total noninterest income | 4,085 |
| 4,788 | (14.7) |
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NONINTEREST EXPENSE |
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Salaries and wages | 4,313 |
| 4,314 | (0.0) |
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Employee benefits | 1,156 |
| 1,182 | (2.2) |
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Occupancy expense | 626 |
| 627 | (0.2) |
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Furniture and equipment expense | 255 |
| 273 | (6.6) |
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Data processing | 783 |
| 760 | 3.0 |
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Directors' fees | 123 |
| 112 | 9.8 |
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Amortization of intangible assets | 33 |
| 74 | (55.4) |
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Insurance agency commissions expense | - |
| 512 | (100.0) |
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FDIC insurance premium expense | 384 |
| 458 | (16.2) |
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Write-downs of other real estate owned | 27 |
| 75 | (64.0) |
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Other noninterest expenses | 2,004 |
| 1,728 | 16.0 |
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Total noninterest expense | 9,704 |
| 10,115 | (4.1) |
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Income before income taxes | 2,270 |
| 2,021 | 12.3 |
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Income tax expense | 861 |
| 763 | 12.8 |
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NET INCOME | $ 1,409 |
| $ 1,258 | 12.0 |
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Weighted average shares outstanding - basic | 12,625 |
| 8,471 | 49.0 |
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Weighted average shares outstanding - diluted | 12,633 |
| 8,484 | 48.9 |
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Basic net income per common share | $ 0.11 |
| $ 0.15 | (26.7) |
|
Diluted net income per common share | 0.11 |
| 0.15 | (26.7) |
|
Dividends paid per common share | - |
| - | - |
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Shore Bancshares, Inc. |
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| Page 7 of 11 | |||
Consolidated Average Balance Sheets |
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(Dollars in thousands) |
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| For the Three Months Ended |
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| March 31, |
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| 2015 |
| 2014 |
| ||||
|
| Average |
| Yield/ |
| Average |
| Yield/ |
|
|
| balance |
| rate |
| balance |
| rate |
|
Earning assets |
|
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|
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Loans | $ 714,780 |
| 4.83 | % | $ 710,133 |
| 5.08 | % |
Investment securities |
|
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|
|
|
|
|
|
Taxable | 243,869 |
| 1.52 |
| 155,123 |
| 1.34 |
|
Tax-exempt | 431 |
| 4.19 |
| 433 |
| 4.19 |
|
Federal funds sold | 2,801 |
| 0.09 |
| 1,708 |
| 0.05 |
|
Interest-bearing deposits | 51,609 |
| 0.20 |
| 98,907 |
| 0.23 |
|
Total earning assets | 1,013,490 |
| 3.79 | % | 966,304 |
| 3.97 | % |
Cash and due from banks | 21,268 |
|
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| 22,708 |
|
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Other assets | 60,611 |
|
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| 66,203 |
|
|
|
Allowance for credit losses | (7,968) |
|
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| (10,647) |
|
|
|
Total assets | $ 1,087,401 |
|
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| $ 1,044,568 |
|
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Interest-bearing liabilities |
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Demand deposits | $ 177,071 |
| 0.13 | % | $ 173,801 |
| 0.14 | % |
Money market and savings deposits | 237,755 |
| 0.14 |
| 222,378 |
| 0.12 |
|
Certificates of deposit $100,000 or more | 156,154 |
| 1.00 |
| 178,792 |
| 1.13 |
|
Other time deposits | 169,584 |
| 0.90 |
| 186,960 |
| 1.08 |
|
Interest-bearing deposits | 740,564 |
| 0.49 |
| 761,931 |
| 0.60 |
|
Short-term borrowings | 7,340 |
| 0.27 |
| 9,345 |
| 0.22 |
|
Total interest-bearing liabilities | 747,904 |
| 0.49 | % | 771,276 |
| 0.60 | % |
Noninterest-bearing deposits | 191,896 |
|
|
| 161,593 |
|
|
|
Accrued expenses and other liabilities | 5,717 |
|
|
| 7,237 |
|
|
|
Stockholders' equity | 141,884 |
|
|
| 104,462 |
|
|
|
Total liabilities and stockholders' equity | $ 1,087,401 |
|
|
| $ 1,044,568 |
|
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|
|
Net interest spread |
|
| 3.30 | % |
|
| 3.37 | % |
Net interest margin |
|
| 3.43 | % |
|
| 3.49 | % |
|
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Shore Bancshares, Inc. |
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| Page 8 of 11 | ||||
Financial Highlights By Quarter |
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(Dollars in thousands, except per share data) |
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| 1st quarter |
| 4th quarter |
| 3rd quarter |
| 2nd quarter |
| 1st quarter |
| 1Q 15 |
| 1Q 15 |
|
|
| 2015 |
| 2014 |
| 2014 |
| 2014 |
| 2014 |
| compared to |
| compared to |
|
|
| (1Q 15) |
| (4Q 14) |
| (3Q 14) |
| (2Q 14) |
| (1Q 14) |
| 4Q 14 |
| 1Q 14 |
|
PROFITABILITY FOR THE PERIOD |
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|
Taxable-equivalent net interest income | $ 8,560 |
| $ 8,659 |
| $ 8,659 |
| $ 8,469 |
| $ 8,347 |
| (1.1) | % | 2.6 | % |
Less: Taxable-equivalent adjustment | 21 |
| 23 |
| 23 |
| 22 |
| 24 |
| (8.7) |
| (12.5) |
|
Net interest income | 8,539 |
| 8,636 |
| 8,636 |
| 8,447 |
| 8,323 |
| (1.1) |
| 2.6 |
|
Provision for credit losses | 650 |
| 650 |
| 775 |
| 950 |
| 975 |
| - |
| (33.3) |
|
Noninterest income | 4,085 |
| 3,471 |
| 3,994 |
| 4,528 |
| 4,788 |
| 17.7 |
| (14.7) |
|
Noninterest expense | 9,704 |
| 9,510 |
| 9,819 |
| 9,917 |
| 10,115 |
| 2.0 |
| (4.1) |
|
Income before income taxes | 2,270 |
| 1,947 |
| 2,036 |
| 2,108 |
| 2,021 |
| 16.6 |
| 12.3 |
|
Income tax expense | 861 |
| 721 |
| 774 |
| 803 |
| 763 |
| 19.4 |
| 12.8 |
|
Net income | $ 1,409 |
| $ 1,226 |
| $ 1,262 |
| $ 1,305 |
| $ 1,258 |
| 14.9 |
| 12.0 |
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Return on average assets | 0.53 | % | 0.44 | % | 0.46 | % | 0.50 | % | 0.49 | % | 9 | bp | 4 | bp |
Return on average equity | 4.03 |
| 3.48 |
| 3.61 |
| 4.47 |
| 4.88 |
| 55 |
| (85) |
|
Return on average tangible equity (1) | 4.50 |
| 3.91 |
| 4.06 |
| 5.28 |
| 5.97 |
| 59 |
| (147) |
|
Net interest margin | 3.43 |
| 3.35 |
| 3.38 |
| 3.49 |
| 3.49 |
| 8 |
| (6) |
|
Efficiency ratio - GAAP | 76.74 |
| 78.40 |
| 77.60 |
| 76.30 |
| 77.01 |
| (166) |
| (27) |
|
Efficiency ratio - Non-GAAP (1) | 76.48 |
| 78.28 |
| 77.33 |
| 76.51 |
| 76.44 |
| (180) |
| 4 |
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|
PER SHARE DATA |
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|
Basic net income per common share | $ 0.11 |
| $ 0.10 |
| $ 0.10 |
| $ 0.13 |
| $ 0.15 |
| 10.0 | % | (26.7) | % |
Diluted net income per common share | 0.11 |
| 0.10 |
| 0.10 |
| 0.13 |
| 0.15 |
| 10.0 |
| (26.7) |
|
Dividends paid per common share | - |
| - |
| - |
| - |
| - |
| - |
| - |
|
Book value per common share at period end | 11.31 |
| 11.13 |
| 10.99 |
| 10.90 |
| 12.35 |
| 1.6 |
| (8.4) |
|
Tangible book value per common share at period end (1) | 10.26 |
| 10.08 |
| 9.94 |
| 9.84 |
| 10.47 |
| 1.8 |
| (2.0) |
|
Market value at period end | 9.18 |
| 9.34 |
| 9.00 |
| 9.01 |
| 9.51 |
| (1.7) |
| (3.5) |
|
Market range: |
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|
High | 9.30 |
| 9.34 |
| 9.03 |
| 10.49 |
| 9.99 |
| (0.4) |
| (6.9) |
|
Low | 9.03 |
| 9.34 |
| 8.96 |
| 8.57 |
| 9.00 |
| (3.3) |
| 0.3 |
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|
AVERAGE BALANCE SHEET DATA |
|
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|
Loans | $ 714,780 |
| $ 707,484 |
| $ 705,637 |
| $ 708,718 |
| $ 710,133 |
| 1.0 | % | 0.7 | % |
Investment securities | 244,300 |
| 232,803 |
| 221,537 |
| 183,559 |
| 155,556 |
| 4.9 |
| 57.0 |
|
Earning assets | 1,013,490 |
| 1,026,061 |
| 1,015,767 |
| 972,976 |
| 966,304 |
| (1.2) |
| 4.9 |
|
Assets | 1,087,401 |
| 1,103,355 |
| 1,093,103 |
| 1,048,592 |
| 1,044,568 |
| (1.4) |
| 4.1 |
|
Deposits | 932,460 |
| 950,720 |
| 940,312 |
| 915,241 |
| 923,524 |
| (1.9) |
| 1.0 |
|
Stockholders' equity | 141,884 |
| 139,676 |
| 138,615 |
| 117,089 |
| 104,462 |
| 1.6 |
| 35.8 |
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CREDIT QUALITY DATA AT PERIOD END |
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|
Net charge-offs | $ 547 |
| $ 1,561 |
| $ 1,245 |
| $ 1,943 |
| $ 1,631 |
| (65.0) | % | (66.5) | % |
|
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Nonaccrual loans excluding nonaccrual loans held for sale (hfs) | $ 12,913 |
| $ 13,467 |
| $ 12,718 |
| $ 15,176 |
| $ 19,156 |
| (4.1) |
| (32.6) |
|
Loans 90 days past due and still accruing | 36 |
| 87 |
| - |
| 5 |
| 121 |
| (58.6) |
| (70.2) |
|
Other real estate owned | 3,469 |
| 3,691 |
| 4,799 |
| 4,201 |
| 4,672 |
| (6.0) |
| (25.7) |
|
Total nonperforming assets excluding nonaccrual loans hfs | 16,418 |
| 17,245 |
| 17,517 |
| 19,382 |
| 23,949 |
| (4.8) |
| (31.4) |
|
Total nonperforming assets including nonaccrual loans hfs | $ 16,418 |
| $ 17,245 |
| $ 17,517 |
| $ 19,382 |
| $ 23,949 |
| (4.8) |
| (31.4) |
|
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|
Accruing troubled debt restructurings (TDRs) excluding TDRs hfs | $ 16,644 |
| $ 16,674 |
| $ 25,246 |
| $ 25,402 |
| $ 25,333 |
| (0.2) |
| (34.3) |
|
Total accruing TDRs including TDRs hfs | $ 16,644 |
| $ 16,674 |
| $ 25,246 |
| $ 25,402 |
| $ 25,333 |
| (0.2) |
| (34.3) |
|
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|
|
Total nonperforming assets and accruing TDRs excluding nonaccrual loans and TDRs hfs | $ 33,062 |
| $ 33,919 |
| $ 42,763 |
| $ 44,784 |
| $ 49,282 |
| (2.5) |
| (32.9) |
|
Total nonperforming assets and accruing TDRs including nonaccrual loans and TDRs hfs | $ 33,062 |
| $ 33,919 |
| $ 42,763 |
| $ 44,784 |
| $ 49,282 |
| (2.5) |
| (32.9) |
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|
CAPITAL AND CREDIT QUALITY RATIOS |
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Period-end equity to assets | 13.05 | % | 12.77 | % | 12.65 | % | 12.91 | % | 9.97 | % | 28 | bp | 308 | bp |
Period-end tangible equity to tangible assets (1) | 11.98 |
| 11.70 |
| 11.58 |
| 11.81 |
| 8.58 |
| 28 |
| 340 |
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Annualized net charge-offs to average loans | 0.31 |
| 0.88 |
| 0.70 |
| 1.10 |
| 0.93 |
| (57) |
| (62) |
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Allowance for credit losses as a percent of (including loans hfs): |
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Period-end loans | 1.08 |
| 1.08 |
| 1.22 |
| 1.28 |
| 1.43 |
| - |
| (35) |
|
Nonaccrual loans | 60.39 |
| 57.14 |
| 67.67 |
| 59.80 |
| 52.56 |
| 325 |
| 783 |
|
Nonperforming assets | 47.50 |
| 44.62 |
| 49.13 |
| 46.83 |
| 42.04 |
| 288 |
| 546 |
|
Accruing TDRs | 46.85 |
| 46.15 |
| 34.09 |
| 35.73 |
| 39.75 |
| 70 |
| 710 |
|
Nonperforming assets and accruing TDRs | 23.59 |
| 22.69 |
| 20.12 |
| 20.27 |
| 20.43 |
| 90 |
| 316 |
|
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As a percent of total loans (including loans hfs): |
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Nonaccrual loans | 1.79 |
| 1.89 |
| 1.80 |
| 2.14 |
| 2.72 |
| (10) |
| (93) |
|
Accruing TDRs | 2.31 |
| 2.35 |
| 3.58 |
| 3.58 |
| 3.60 |
| (4) |
| (129) |
|
Nonaccrual loans and accruing TDRs | 4.10 |
| 4.24 |
| 5.38 |
| 5.72 |
| 6.32 |
| (14) |
| (222) |
|
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As a percent of total loans+other real estate owned (including loans hfs): |
|
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Nonperforming assets | 2.26 |
| 2.41 |
| 2.47 |
| 2.72 |
| 3.38 |
| (15) |
| (112) |
|
Nonperforming assets and accruing TDRs | 4.56 |
| 4.75 |
| 6.02 |
| 6.27 |
| 6.96 |
| (19) |
| (240) |
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As a percent of total assets (including loans hfs): |
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|
Nonaccrual loans | 1.18 |
| 1.22 |
| 1.16 |
| 1.43 |
| 1.83 |
| (4) |
| (65) |
|
Nonperforming assets | 1.50 |
| 1.57 |
| 1.60 |
| 1.82 |
| 2.28 |
| (7) |
| (78) |
|
Accruing TDRs | 1.52 |
| 1.52 |
| 2.30 |
| 2.39 |
| 2.41 |
| - |
| (89) |
|
Nonperforming assets and accruing TDRs | 3.02 |
| 3.09 |
| 3.90 |
| 4.21 |
| 4.69 |
| (7) |
| (167) |
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(1) See the reconciliation table on page 11 of 11. |
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| ||||
Shore Bancshares, Inc. |
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| Page 9 of 11 | ||||
Consolidated Statements of Operations By Quarter |
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| |
(In thousands, except per share data) |
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| 1Q 15 |
| 1Q 15 |
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|
|
| compared to |
| compared to |
|
|
| 1Q 15 |
| 4Q 14 |
| 3Q 14 |
| 2Q 14 |
| 1Q 14 |
| 4Q 14 |
| 1Q 14 |
|
INTEREST INCOME |
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|
Interest and fees on loans | $ 8,491 |
| $ 8,665 |
| $ 8,788 |
| $ 8,812 |
| $ 8,875 |
| (2.0) | % | (4.3) | % |
Interest and dividends on investment securities: |
|
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|
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|
|
|
|
|
|
|
|
|
|
Taxable | 924 |
| 917 |
| 850 |
| 669 |
| 521 |
| 0.8 |
| 77.4 |
|
Tax-exempt | 3 |
| 3 |
| 3 |
| 3 |
| 3 |
| - |
| - |
|
Interest on federal funds sold | 1 |
| - |
| 1 |
| - |
| - |
| - |
| - |
|
Interest on deposits with other banks | 26 |
| 40 |
| 44 |
| 39 |
| 56 |
| (35.0) |
| (53.6) |
|
Total interest income | 9,445 |
| 9,625 |
| 9,686 |
| 9,523 |
| 9,455 |
| (1.9) |
| (0.1) |
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|
INTEREST EXPENSE |
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|
|
Interest on deposits | 901 |
| 985 |
| 1,046 |
| 1,071 |
| 1,127 |
| (8.5) |
| (20.1) |
|
Interest on short-term borrowings | 5 |
| 4 |
| 4 |
| 5 |
| 5 |
| 25.0 |
| - |
|
Total interest expense | 906 |
| 989 |
| 1,050 |
| 1,076 |
| 1,132 |
| (8.4) |
| (20.0) |
|
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|
|
|
NET INTEREST INCOME | 8,539 |
| 8,636 |
| 8,636 |
| 8,447 |
| 8,323 |
| (1.1) |
| 2.6 |
|
Provision for credit losses | 650 |
| 650 |
| 775 |
| 950 |
| 975 |
| - |
| (33.3) |
|
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|
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|
NET INTEREST INCOME AFTER PROVISION |
|
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|
|
|
FOR CREDIT LOSSES | 7,889 |
| 7,986 |
| 7,861 |
| 7,497 |
| 7,348 |
| (1.2) |
| 7.4 |
|
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|
NONINTEREST INCOME |
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Service charges on deposit accounts | 634 |
| 629 |
| 618 |
| 602 |
| 558 |
| 0.8 |
| 13.6 |
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Trust and investment fee income | 469 |
| 478 |
| 496 |
| 455 |
| 431 |
| (1.9) |
| 8.8 |
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Investment securities gains | - |
| 23 |
| - |
| - |
| - |
| (100.0) |
| - |
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Insurance agency commissions | 2,475 |
| 1,736 |
| 2,176 |
| 2,536 |
| 3,077 |
| 42.6 |
| (19.6) |
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Other noninterest income | 507 |
| 605 |
| 704 |
| 935 |
| 722 |
| (16.2) |
| (29.8) |
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Total noninterest income | 4,085 |
| 3,471 |
| 3,994 |
| 4,528 |
| 4,788 |
| 17.7 |
| (14.7) |
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NONINTEREST EXPENSE |
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Salaries and wages | 4,313 |
| 4,305 |
| 4,689 |
| 4,292 |
| 4,314 |
| 0.2 |
| (0.0) |
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Employee benefits | 1,156 |
| 956 |
| 934 |
| 1,020 |
| 1,182 |
| 20.9 |
| (2.2) |
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Occupancy expense | 626 |
| 570 |
| 565 |
| 577 |
| 627 |
| 9.8 |
| (0.2) |
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Furniture and equipment expense | 255 |
| 234 |
| 225 |
| 243 |
| 273 |
| 9.0 |
| (6.6) |
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Data processing | 783 |
| 766 |
| 741 |
| 739 |
| 760 |
| 2.2 |
| 3.0 |
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Directors' fees | 123 |
| 99 |
| 131 |
| 132 |
| 112 |
| 24.2 |
| 9.8 |
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Amortization of intangible assets | 33 |
| 33 |
| 34 |
| 60 |
| 74 |
| - |
| (55.4) |
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Insurance agency commissions expense | - |
| - |
| - |
| 394 |
| 512 |
| - |
| (100.0) |
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FDIC insurance premium expense | 384 |
| 402 |
| 399 |
| 377 |
| 458 |
| (4.5) |
| (16.2) |
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Write-downs of other real estate owned | 27 |
| 192 |
| 290 |
| 101 |
| 75 |
| (85.9) |
| (64.0) |
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Other noninterest expenses | 2,004 |
| 1,953 |
| 1,811 |
| 1,982 |
| 1,728 |
| 2.6 |
| 16.0 |
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Total noninterest expense | 9,704 |
| 9,510 |
| 9,819 |
| 9,917 |
| 10,115 |
| 2.0 |
| (4.1) |
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Income before income taxes | 2,270 |
| 1,947 |
| 2,036 |
| 2,108 |
| 2,021 |
| 16.6 |
| 12.3 |
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Income tax expense | 861 |
| 721 |
| 774 |
| 803 |
| 763 |
| 19.4 |
| 12.8 |
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NET INCOME | $ 1,409 |
| $ 1,226 |
| $ 1,262 |
| $ 1,305 |
| $ 1,258 |
| 14.9 |
| 12.0 |
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Weighted average shares outstanding - basic | 12,625 |
| 12,617 |
| 12,615 |
| 10,013 |
| 8,471 |
| 0.1 |
| 49.0 |
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Weighted average shares outstanding - diluted | 12,633 |
| 12,626 |
| 12,625 |
| 10,024 |
| 8,484 |
| 0.1 |
| 48.9 |
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Basic net income per common share | $ 0.11 |
| $ 0.10 |
| $ 0.10 |
| $ 0.13 |
| $ 0.15 |
| 10.0 |
| (26.7) |
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Diluted net income per common share | 0.11 |
| 0.10 |
| 0.10 |
| 0.13 |
| 0.15 |
| 10.0 |
| (26.7) |
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Dividends paid per common share | - |
| - |
| - |
| - |
| - |
| - |
| - |
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Shore Bancshares, Inc. |
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Consolidated Average Balance Sheets By Quarter |
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| 1Q 15 |
| 1Q 15 |
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| Average |
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Earning assets |
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Loans | $ 714,780 |
| 4.83 | % | $ 707,484 |
| 4.87 | % | $ 705,637 |
| 4.95 | % | $ 708,718 |
| 5.00 | % | $ 710,133 |
| 5.08 | % | 1.0 | % | 0.7 | % |
Investment securities |
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Taxable | 243,869 |
| 1.52 |
| 232,371 |
| 1.58 |
| 221,105 |
| 1.54 |
| 183,128 |
| 1.46 |
| 155,123 |
| 1.34 |
| 4.9 |
| 57.2 |
|
Tax-exempt | 431 |
| 4.19 |
| 432 |
| 4.19 |
| 432 |
| 4.19 |
| 431 |
| 4.22 |
| 433 |
| 4.19 |
| (0.2) |
| (0.5) |
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Federal funds sold | 2,801 |
| 0.09 |
| 2,962 |
| 0.07 |
| 1,378 |
| 0.06 |
| 1,476 |
| 0.05 |
| 1,708 |
| 0.05 |
| (5.4) |
| 64.0 |
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Interest-bearing deposits | 51,609 |
| 0.20 |
| 82,812 |
| 0.19 |
| 87,215 |
| 0.20 |
| 79,223 |
| 0.20 |
| 98,907 |
| 0.23 |
| (37.7) |
| (47.8) |
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Total earning assets | 1,013,490 |
| 3.79 | % | 1,026,061 |
| 3.73 | % | 1,015,767 |
| 3.79 | % | 972,976 |
| 3.93 | % | 966,304 |
| 3.97 | % | (1.2) |
| 4.9 |
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Cash and due from banks | 21,268 |
|
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| 24,329 |
|
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| 24,445 |
|
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| 20,376 |
|
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| 22,708 |
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| (12.6) |
| (6.3) |
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Other assets | 60,611 |
|
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| 61,370 |
|
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| 61,989 |
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| 64,915 |
|
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| 66,203 |
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| (1.2) |
| (8.4) |
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Allowance for credit losses | (7,968) |
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| (8,405) |
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| (9,098) |
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| (9,675) |
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| (10,647) |
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| (5.2) |
| (25.2) |
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Total assets | $ 1,087,401 |
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| $ 1,103,355 |
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| $ 1,093,103 |
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| $ 1,048,592 |
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| $ 1,044,568 |
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| 4.1 |
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Interest-bearing liabilities |
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Demand deposits | $ 177,071 |
| 0.13 | % | $ 183,251 |
| 0.13 | % | $ 183,094 |
| 0.14 | % | $ 171,004 |
| 0.14 | % | $ 173,801 |
| 0.14 | % | (3.4) |
| 1.9 |
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Money market and savings deposits | 237,755 |
| 0.14 |
| 233,441 |
| 0.12 |
| 225,670 |
| 0.12 |
| 220,850 |
| 0.12 |
| 222,378 |
| 0.12 |
| 1.8 |
| 6.9 |
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Certificates of deposit $100,000 or more | 156,154 |
| 1.00 |
| 163,813 |
| 1.06 |
| 166,806 |
| 1.11 |
| 171,830 |
| 1.11 |
| 178,792 |
| 1.13 |
| (4.7) |
| (12.7) |
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Other time deposits | 169,584 |
| 0.90 |
| 173,695 |
| 0.95 |
| 179,533 |
| 0.98 |
| 183,336 |
| 1.02 |
| 186,960 |
| 1.08 |
| (2.4) |
| (9.3) |
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Interest-bearing deposits | 740,564 |
| 0.49 |
| 754,200 |
| 0.52 |
| 755,103 |
| 0.55 |
| 747,020 |
| 0.58 |
| 761,931 |
| 0.60 |
| (1.8) |
| (2.8) |
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Short-term borrowings | 7,340 |
| 0.27 |
| 6,356 |
| 0.23 |
| 7,946 |
| 0.21 |
| 8,633 |
| 0.22 |
| 9,345 |
| 0.22 |
| 15.5 |
| (21.5) |
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Total interest-bearing liabilities | 747,904 |
| 0.49 | % | 760,556 |
| 0.52 | % | 763,049 |
| 0.55 | % | 755,653 |
| 0.57 | % | 771,276 |
| 0.60 | % | (1.7) |
| (3.0) |
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Noninterest-bearing deposits | 191,896 |
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| 196,520 |
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| 185,209 |
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| 168,221 |
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| 161,593 |
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| (2.4) |
| 18.8 |
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Accrued expenses and other liabilities | 5,717 |
|
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| 6,603 |
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| 6,230 |
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| 7,629 |
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| 7,237 |
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| (13.4) |
| (21.0) |
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Stockholders' equity | 141,884 |
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| 139,676 |
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| 138,615 |
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| 117,089 |
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| 104,462 |
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| 1.6 |
| 35.8 |
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Total liabilities and stockholders' equity | $ 1,087,401 |
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| $ 1,103,355 |
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| $ 1,093,103 |
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| $ 1,048,592 |
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| $ 1,044,568 |
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| 4.1 |
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Net interest spread |
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| 3.30 | % |
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| 3.21 | % |
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| 3.24 | % |
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| 3.36 | % |
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| 3.37 | % |
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Net interest margin |
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| 3.43 | % |
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| 3.35 | % |
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| 3.38 | % |
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| 3.49 | % |
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| 3.49 | % |
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Shore Bancshares, Inc. |
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| Page 11 of 11 | |
Reconciliation of Generally Accepted Accounting Principles (GAAP) |
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and Non-GAAP Measures |
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(In thousands, except per share data) |
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| 1Q 15 |
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| 1Q 14 |
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The following reconciles return on average equity and return on |
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average tangible equity (Note 1): |
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Net income | $ 1,409 |
| $ 1,226 |
| $ 1,262 |
| $ 1,305 |
| $ 1,258 |
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Net income - annualized (A) | $ 5,714 |
| $ 4,864 |
| $ 5,007 |
| $ 5,234 |
| $ 5,102 |
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Net income, excluding net amortization of intangible assets | $ 1,429 |
| $ 1,246 |
| $ 1,283 |
| $ 1,341 |
| $ 1,303 |
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Net income, excluding net amortization of intangible |
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assets - annualized (B) | $ 5,795 |
| $ 4,943 |
| $ 5,090 |
| $ 5,379 |
| $ 5,284 |
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Average stockholders' equity (C) | $ 141,884 |
| $ 139,676 |
| $ 138,615 |
| $ 117,089 |
| $ 104,462 |
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Less: Average goodwill and other intangible assets | (13,248) |
| (13,281) |
| (13,315) |
| (15,295) |
| (15,945) |
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Average tangible equity (D) | $ 128,636 |
| $ 126,395 |
| $ 125,300 |
| $ 101,794 |
| $ 88,517 |
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Return on average equity (GAAP) (A)/(C) | 4.03 | % | 3.48 | % | 3.61 | % | 4.47 | % | 4.88 | % |
Return on average tangible equity (Non-GAAP) (B)/(D) | 4.50 | % | 3.91 | % | 4.06 | % | 5.28 | % | 5.97 | % |
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The following reconciles GAAP efficiency ratio and non-GAAP |
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efficiency ratio (Note 2): |
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Noninterest expense (E) | $ 9,704 |
| $ 9,510 |
| $ 9,819 |
| $ 9,917 |
| $ 10,115 |
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Less: Amortization of intangible assets | (33) |
| (33) |
| (34) |
| (60) |
| (74) |
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Adjusted noninterest expense (F) | $ 9,671 |
| $ 9,477 |
| $ 9,785 |
| $ 9,857 |
| $ 10,041 |
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Taxable-equivalent net interest income (G) | $ 8,560 |
| $ 8,659 |
| $ 8,659 |
| $ 8,469 |
| $ 8,347 |
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Taxable-equivalent net interest income excluding nonrecurring adjustment (H) | $ 8,560 |
| $ 8,659 |
| $ 8,659 |
| $ 8,469 |
| $ 8,347 |
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Noninterest income (I) | $ 4,085 |
| $ 3,471 |
| $ 3,994 |
| $ 4,528 |
| $ 4,788 |
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Less: Investment securities (gains)/losses | - |
| (23) |
| - |
| - |
| - |
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Other nonrecurring (gains)/losses | - |
| - |
| - |
| (114) |
| - |
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Adjusted noninterest income (J) | $ 4,085 |
| $ 3,448 |
| $ 3,994 |
| $ 4,414 |
| $ 4,788 |
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Efficiency ratio (GAAP) (E)/(G)+(I) | 76.74 | % | 78.40 | % | 77.60 | % | 76.30 | % | 77.01 | % |
Efficiency ratio (Non-GAAP) (F)/(H)+(J) | 76.48 | % | 78.28 | % | 77.33 | % | 76.51 | % | 76.44 | % |
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The following reconciles book value per common share and tangible |
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book value per common share (Note 1): |
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Stockholders' equity (K) | $ 142,746 |
| $ 140,469 |
| $ 138,674 |
| $ 137,493 |
| $ 104,632 |
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Less: Goodwill and other intangible assets | (13,228) |
| (13,262) |
| (13,295) |
| (13,328) |
| (15,900) |
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Tangible equity (L) | $ 129,518 |
| $ 127,207 |
| $ 125,379 |
| $ 124,165 |
| $ 88,732 |
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Shares outstanding (M) | 12,625 |
| 12,618 |
| 12,615 |
| 12,615 |
| 8,471 |
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Book value per common share (GAAP) (K)/(M) | $ 11.31 |
| $ 11.13 |
| $ 10.99 |
| $ 10.90 |
| $ 12.35 |
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Tangible book value per common share (Non-GAAP) (L)/(M) | $ 10.26 |
| $ 10.08 |
| $ 9.94 |
| $ 9.84 |
| $ 10.47 |
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The following reconciles equity to assets and |
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tangible equity to tangible assets (Note 1): |
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Stockholders' equity (N) | $ 142,746 |
| $ 140,469 |
| $ 138,674 |
| $ 137,493 |
| $ 104,632 |
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Less: Goodwill and other intangible assets | (13,228) |
| (13,262) |
| (13,295) |
| (13,328) |
| (15,900) |
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Tangible equity (O) | $ 129,518 |
| $ 127,207 |
| $ 125,379 |
| $ 124,165 |
| $ 88,732 |
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Assets (P) | $ 1,094,128 |
| $ 1,100,402 |
| $ 1,096,285 |
| $ 1,064,853 |
| $ 1,049,514 |
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Less: Goodwill and other intangible assets | (13,228) |
| (13,262) |
| (13,295) |
| (13,328) |
| (15,900) |
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Tangible assets (Q) | $ 1,080,900 |
| $ 1,087,140 |
| $ 1,082,990 |
| $ 1,051,525 |
| $ 1,033,614 |
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Period-end equity/assets (GAAP) (N)/(P) | 13.05 | % | 12.77 | % | 12.65 | % | 12.91 | % | 9.97 | % |
Period-end tangible equity/tangible assets (Non-GAAP) (O)/(Q) | 11.98 | % | 11.70 | % | 11.58 | % | 11.81 | % | 8.58 | % |
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Note 1: Management believes that reporting tangible equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes. |
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Note 2: Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities. |
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CONTACT: George Rapp, Chief Financial Officer, 410-763-7800