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Shore Bancshares Inc (SHBI) filed Quarterly Report for the period ended 2011-09-30.
Shore Bancshares Inc has a market cap of $44.2 million; its shares were traded at around $5.23 with and P/S ratio of 0.6. The dividend yield of Shore Bancshares Inc stocks is 0.8%.
This is the annual revenues and earnings per share of SHBI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SHBI.
Highlight of Business Operations:
The Company reported net income for the third quarter of 2011 of $94 thousand, or diluted earnings per common share of $0.01, compared to a net loss of $1.4 million, or diluted loss per common share of $(0.17), for the third quarter of 2010. For the second quarter of 2011, the Company reported a net loss of $233 thousand, or diluted loss per common share of $(0.03). The results for the third quarter of 2011 included the previously-mentioned goodwill and other intangible assets impairment charges of $1.3 million. When comparing the third quarter of 2011 to the third quarter of 2010, the main reasons for the improved results were lower impairment charges of $1.7 million and a decrease in the provision for credit losses of $543 thousand, which were partially offset by a decline in net interest income of $564 thousand. A decrease in the provision for credit losses of $1.7 million, partially offset by the impairment charges, was the primary reason for the improved results when comparing the third quarter of 2011 to the second quarter of 2011. Annualized return on average assets was 0.03% for the three months ended September 30, 2011, compared to (0.49)% for the same period in 2010. Annualized return on average stockholders equity was 0.31% for the third quarter of 2011, compared to (4.43)% for the third quarter of 2010. For the second quarter of 2011, annualized return on average assets was (0.08)% and return on average equity was (0.77)%.Interest income was $12.9 million for the third quarter of 2011, a decrease of 7.0% from the third quarter of 2010. Average earning assets increased slightly during the third quarter of 2011 when compared to the same period in 2010, while yields earned decreased 39 basis points to 4.79%, mainly due to loan activity. Average loans decreased 3.9% and the yield earned on loans decreased 27 basis points. Loans comprised 81.2% of total average earning assets for the third quarter of 2011, compared to 84.8% for the third quarter of 2010. When comparing average balances of other earning assets for the third quarters of 2011 and 2010, the investment of excess cash from customers deposits shifted from federal funds sold to interest-bearing deposits to take advantage of higher yields on interest-bearing deposits. Interest income increased 1.0% when compared to the second quarter of 2011. Average earning assets increased 1.2% during the third quarter of 2011 when compared to the second quarter of 2011, while yields earned declined 7 basis points.
Interest income was $38.3 million for the first nine months of 2011, a decrease of 8.0% when compared to the first nine months of 2010. Average earning assets decreased slightly during the nine months ended September 30, 2011 when compared to the same period in 2010, and yields earned decreased 38 basis points to 4.84%, primarily due to the impact of loan activity. When comparing the nine-month period ended September 30, 2011 to the same period of last year, average loans decreased 3.1%, while the yield earned on loans decreased 29 basis points. Loans comprised 82.8% and 84.8% of total average earning assets for the first nine months of 2011 and 2010, respectively. As with the quarter-to-date average balances, other earning assets reflected a shift from federal funds sold to interest-bearing deposits when comparing year-to-date September 30, 2011 and 2010 average balances.
Noninterest income for the third quarter of 2011 decreased $120 thousand, or 2.6%, when compared to the third quarter of 2010. The decline was primarily due to a decrease in insurance agency commissions of $201 thousand, reflecting the continuing soft market in the insurance industry, service charges on deposit accounts of $144 thousand and other noninterest income of $161 thousand, offset by $354 thousand in gains on sales of investment securities. The lower service charges on deposit accounts were due to a decrease in customer use of overdraft protection programs. Included in other noninterest income for the third quarter of 2010 was a $224 thousand gain relating to the surrender of directors life insurance policies. Noninterest income increased $142 thousand, or 3.2%, when compared to the second quarter of 2011. The increase when compared to the second quarter of 2011 was primarily due to a $352 thousand increase in gains on sales of investment securities, which was partially offset by a $163 thousand decrease in insurance agency commissions.
Investment securities totaled $112.3 million at September 30, 2011, a $6.5 million, or 6.2%, increase since December 31, 2010. During the third quarter of 2011, the Company sold $5.0 million in securities and recorded gains of $354 thousand on the sales. For the three months ended September 30, 2011, the average balance of investment securities was $113.9 million compared to $105.5 million for the same period in 2010. The tax equivalent yields on investment securities increased to 2.97% for the third quarter of 2011 compared to 2.83% for the third quarter of 2010. For the nine months ended September 30, 2011, the average balance of investment securities was $110.5 million, compared to $108.5 million for the same period in 2010. The tax equivalent yields on investment securities were 2.92% and 3.27% for the first nine months of 2011 and 2010, respectively. Investment securities comprised 10.7% of total average earning assets for the third quarter of 2011, higher than the 9.9% for the third quarter of 2010. For the first nine months of 2011 and 2010, investment securities were 10.4% and 10.1% of total average earning assets, respectively. The increases in the 2011 investment securities balances when compared to the 2010 balances reflected the investment of excess cash from deposits.
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