Shore Bancshares Inc (SHBI, Financial) filed Amended Quarterly Report for the period ended 2009-03-31.
Shore Bancshares Inc. is a bank holding company. The Company engages in the business of banking through its two subsidiaries The Centreville National Bank of Maryland and The Talbot Bank of Easton Maryland. Shore Bancshares Inc has a market cap of $166.8 million; its shares were traded at around $18.32 with a P/E ratio of 15.7 and P/S ratio of 2. The dividend yield of Shore Bancshares Inc stocks is 3.2%. Shore Bancshares Inc had an annual average earning growth of 12.4% over the past 5 years.
Net income for the first quarter of 2009 was $1.9 million, or diluted earnings per common share of $0.22, compared to $3.4 million, or diluted earnings per common share of $0.40, for the first quarter of 2008. For the fourth quarter of 2008, net income was $2.3 million or $0.27 per common diluted share. Annualized return on average assets was 0.72% for the three months ended March 31, 2009, compared to 1.38% for the same period in 2008. Annualized return on average stockholders equity was 5.05% for the first quarter of 2009, compared to 10.96% for the first quarter of 2008. For the fourth quarter of 2008, annualized return on average assets was 0.87% and return on average equity was 7.11%.
Net interest income for the three months ended March 31, 2009 was $10.1 million, an increase of 0.3% when compared to the same period last year. An increase in average loan volume and reduction in cost of funds was sufficient to offset the decline in loan yields. The net interest margin was 4.09% for the first quarter of 2009, a decrease of 33 basis points when compared to the first quarter of 2008. The 400 basis-point reduction in interest rates by the Federal Reserve during 2008 had a significant impact on the overall yield on earning assets. Net interest income decreased 2.8% from the fourth quarter of 2008, mainly due to lower yields on loans despite a $22 million increase in average loan volume and a lower cost of funds. The net interest margin decreased 15 basis points from 4.24% for the fourth quarter of 2008.
Interest expense was $4.4 million for the three months ended March 31, 2009, a decrease of $1.5 million, or 25.2%, when compared to the same period last year. Average interest bearing liabilities increased 6.2%, while rates paid decreased 92 basis points to 2.25%. The Company incurs the largest amount of interest expense from time deposits. For the three months ended March 31, 2009, the average balance of certificates of deposits $100,000 or more increased 32.0% when compared to the same period last year, while the average rate paid for those certificates of deposit decreased 118 basis points to 3.42%. Average other time deposits increased 7.2%, while the average rate paid on average other time deposits decreased 91 basis points to 3.53% when compared to the first quarter of 2008. Interest expense decreased 7.7% when compared to the fourth quarter of 2008. Average interest bearing liabilities increased slightly during the quarter ended March 31, 2009 when compared to the fourth quarter of 2008, while rates paid on these liabilities decreased 16 basis points.
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Shore Bancshares Inc. is a bank holding company. The Company engages in the business of banking through its two subsidiaries The Centreville National Bank of Maryland and The Talbot Bank of Easton Maryland. Shore Bancshares Inc has a market cap of $166.8 million; its shares were traded at around $18.32 with a P/E ratio of 15.7 and P/S ratio of 2. The dividend yield of Shore Bancshares Inc stocks is 3.2%. Shore Bancshares Inc had an annual average earning growth of 12.4% over the past 5 years.
Highlight of Business Operations:
On January 9, 2009, Shore Bancshares, Inc. participated in the United States Department of the Treasury (“Treasury”) Troubled Asset Relief Program (“TARP”) Capital Purchase Program by issuing 25,000 shares of Fixed Rate Cumulative Perpetual Preferred, Series A (the “Preferred Stock”) and a common stock purchase warrant covering 172,970 shares of common stock to the Treasury for a total sales price of $25 million. On April 15, 2009, Shore Bancshares, Inc. repurchased all 25,000 shares of the Preferred Stock from Treasury for $25 million, plus accrued dividends of $208,333.33. Shore Bancshares, Inc. has the right to repurchase the warrant at its fair market value, but has not yet decided to do so. The Treasury must liquidate any portion of the warrant not repurchased by Shore Bancshares, Inc. The warrant may be exercised at any time until January 9, 2019 at an exercise price of $21.68 per share, or an aggregate exercise price of approximately $3.75 million. The warrant counts as tangible common equity.Net income for the first quarter of 2009 was $1.9 million, or diluted earnings per common share of $0.22, compared to $3.4 million, or diluted earnings per common share of $0.40, for the first quarter of 2008. For the fourth quarter of 2008, net income was $2.3 million or $0.27 per common diluted share. Annualized return on average assets was 0.72% for the three months ended March 31, 2009, compared to 1.38% for the same period in 2008. Annualized return on average stockholders equity was 5.05% for the first quarter of 2009, compared to 10.96% for the first quarter of 2008. For the fourth quarter of 2008, annualized return on average assets was 0.87% and return on average equity was 7.11%.
Net interest income for the three months ended March 31, 2009 was $10.1 million, an increase of 0.3% when compared to the same period last year. An increase in average loan volume and reduction in cost of funds was sufficient to offset the decline in loan yields. The net interest margin was 4.09% for the first quarter of 2009, a decrease of 33 basis points when compared to the first quarter of 2008. The 400 basis-point reduction in interest rates by the Federal Reserve during 2008 had a significant impact on the overall yield on earning assets. Net interest income decreased 2.8% from the fourth quarter of 2008, mainly due to lower yields on loans despite a $22 million increase in average loan volume and a lower cost of funds. The net interest margin decreased 15 basis points from 4.24% for the fourth quarter of 2008.
Interest expense was $4.4 million for the three months ended March 31, 2009, a decrease of $1.5 million, or 25.2%, when compared to the same period last year. Average interest bearing liabilities increased 6.2%, while rates paid decreased 92 basis points to 2.25%. The Company incurs the largest amount of interest expense from time deposits. For the three months ended March 31, 2009, the average balance of certificates of deposits $100,000 or more increased 32.0% when compared to the same period last year, while the average rate paid for those certificates of deposit decreased 118 basis points to 3.42%. Average other time deposits increased 7.2%, while the average rate paid on average other time deposits decreased 91 basis points to 3.53% when compared to the first quarter of 2008. Interest expense decreased 7.7% when compared to the fourth quarter of 2008. Average interest bearing liabilities increased slightly during the quarter ended March 31, 2009 when compared to the fourth quarter of 2008, while rates paid on these liabilities decreased 16 basis points.
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