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Section 1: 8-K (FORM 8-K)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): July 23, 2020

 

SHORE BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

Maryland 000-22345 52-1974638
(State or other jurisdiction of (Commission file number) (IRS Employer
incorporation or organization)   Identification No.)

 

28969 Information Lane, Easton, Maryland 21601

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (410) 763-7800

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common stock, par value $.01 per share SHBI Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company    ¨

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨

 

 

 

 

 

Item 2.02. Result of Operation and Financial Condition.

 

On July 23, 2020 Shore Bancshares, Inc. (the “Company”) issued a press release setting forth the Company’s second quarter and first-half 2020 financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

 

The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

The exhibits that are filed or furnished with this report are listed in the Exhibit Index that immediately follows the signatures hereto, which list is incorporated herein by reference.

 

 

 

 

EXHIBIT INDEX

 

     
Exhibit    
Number   Description
     
99.1   Press Release, dated July 23, 2020 (filed herewith)

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

     
  SHORE BANCSHARES, INC.
   
Dated: July 23, 2020 By: /s/ Lloyd L. Beatty, Jr.
    Lloyd L. Beatty, Jr.
    President and Chief Executive Officer
       

 

 

 

 

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 Exhibit 99.1

 

 

 

28969 Information Lane

Easton, Maryland 21601

Phone 410-763-7800

 

PRESS RELEASE

 

Shore Bancshares Reports Second Quarter and First-Half Results

 

Easton, Maryland (07/23/2020) - Shore Bancshares, Inc. (NASDAQ - SHBI) (the “Company”) reported income from continuing operations of $5.335 million or $0.43 per diluted common share for the second quarter of 2020, compared to income from continuing operations of $3.118 million or $0.25 per diluted common share for the first quarter of 2020, and income from continuing operations of $4.228 million or $0.33 per diluted common share for the second quarter of 2019. Income from continuing operations for the first half of 2020 was $8.453 million or $0.68 per diluted common share, compared to income from continuing operations of $8.056 million or $0.63 per diluted common share for the first half of 2019.

 

When comparing income from continuing operations for the second quarter of 2020 to the first quarter of 2020, net income increased $2.2 million, primarily due to a decrease in noninterest expenses of $2.7 million. In addition, net interest income and noninterest income increased $513 thousand and $417 thousand, respectively, partially offset by an increase in the provision for credit losses of $650 thousand. When comparing income from continuing operations for the second quarter of 2020 to the second quarter of 2019, net income increased $1.1 million due to a decrease in noninterest expense of $1.3 million, coupled with increases in net interest income of $738 thousand and noninterest income of $160 thousand, partially offset by an increase in the provision for credit losses of $800 thousand.

 

“During these uncertain times in the midst of the current health and economic crisis, the Company has remained a viable source of strength in our communities.” said Lloyd L. “Scott” Beatty, Jr., President and Chief Executive Officer.  “The first half of 2020 has been challenging, but the resolve of our committed team has produced very positive results. Our earnings remain healthy despite increases to our provision for credit losses during the second quarter, deposit growth has been remarkable, loan growth remains on budget, and the Company’s strong capital position enables us to weather the current economic climate.”  

 

Ongoing response to COVID-19

 

Employees

Many of our non-branch personnel have returned to our offices and continue to practice social distancing as the Company has implemented enhanced cleaning and disinfecting procedures across all locations. Most of our Company meetings have transitioned to telephonic or video conferencing. We suspended all unnecessary business-related travel, public events, and meetings with outside parties to promote the safety and well-being of our employees.

 

Banking Locations

All our branch locations remain open, with normal hours of operation. We have re-opened our branch lobbies to the public with limits on the number of people allowed in the branch at any time. The drive-thru locations have expanded their capabilities to accommodate an array of transactions for our customers. We notified our customers of our changes in operations as well as promoted the use of online and mobile banking.

 

 

 

  Page 2 of 18

 

Customers

We thank our customers for their commitment and understanding as we continue to find ways to serve them as safely and securely as possible. For our customers impacted by the pandemic, we have provided fee waivers and loan payment deferrals to assist them during this challenging time. The Company has provided total loan deferrals of $221.1 million which consists of 15.7% of the total loan portfolio as of June 30, 2020. The most significant deferrals by loan type or industry were as follows: hospitality of $80.4 million, retail stores of $58.6 million, other commercial of $66.7 million, residential 1-4 family rentals of $10.0 million and restaurants of $5.3 million.

 

Small Business Administration’s Paycheck Protection Program (“PPP”)

We remain an SBA preferred lender and are actively participating in the PPP program. From the inception of the program through June 30, 2020, we had provided loans for 1,427 small business customers totaling $123.0 million. We will continue to process applications until the government funding is completely exhausted.

 

Share Repurchases

We have suspended all share buybacks of our Company’s common stock until further notice.

 

Dividends

We currently expect to maintain our quarterly cash dividends based on our strong capital position.

 

Balance Sheet Review

Total assets were $1.720 billion at June 30, 2020, a $160.3 million, or 10.3%, increase when compared to $1.559 billion at the end of 2019. The increase was primarily due to the $158.6 million, or 12.7% increase in gross loans, of which $123.0 million related to PPP loans. The increase in gross loans was funded by an increase in deposits of $163.4 million, or 12.2%.

 

Total deposits increased $163.4 million, or 12.2%, when compared to December 31, 2019. The increase in total deposits consisted of increases in all deposit categories. Noninterest-bearing deposits increased $86.4 million, checking accounts increased $42.7 million, savings and money market accounts increased $32.7 million and time deposits increased $1.6 million. A significant amount of the PPP loan proceeds resided in deposit accounts as of June 30, 2020. The Company expects these funds to be utilized over the coming weeks and months, which may or may not result in a decline in deposit balances.

 

Total stockholders’ equity increased $7.3 million, or 3.8%, when compared to the end of 2019. At June 30, 2020, the ratio of total equity to total assets was 11.64% and the ratio of total tangible equity to total tangible assets was 10.63%.

 

Total assets at June 30, 2020 increased $231.0 million, or 15.5%, when compared to total assets at June 30, 2019, primarily the result of loan growth of $167.0 million and an increase in cash and cash equivalents of $87.0 million. Investment securities (including restricted securities) decreased $55.0 million, which was used to partially fund loan growth.

 

Total deposits at June 30, 2020 increased $255.7 million, or 20.5%, when compared to June 30, 2019. The increase in total deposits included growth within interest-bearing checking accounts of $112.8 million, noninterest-bearing deposits of $96.1 million, savings and money market accounts of $55.7 million and time deposits of $11.2 million. Brokered deposits of $20.0 million rolled off by June 30, 2020 as they were no longer needed as a funding source.

 

Total stockholders’ equity increased $8.8 million, or 4.6%, when compared to June 30, 2019.

 

 

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Review of Quarterly Financial Results

Net interest income was $13.0 million for the second quarter of 2020, compared to $12.5 million for the first quarter of 2020 and $12.3 million for the second quarter of 2019. The increase in net interest income when compared to the first quarter of 2020 was primarily due to the decrease in the average rate paid on interest-bearing deposits of 23bps, coupled with the payoff of FHLB borrowings which reduced interest expense by $101 thousand. The increase in the average balance in noninterest bearing deposits of $67.6 million also contributed to lower interest expense for the quarter by reducing the Company’s reliance on interest-bearing sources of funding. The significant growth in the average balance of loans of $110.9 million helped offset the decreased yield on loans of 31bps, which was primarily the result of adding the $123.0 million of PPP loans which had an average yield of 2.36% for the second quarter of 2020, inclusive of the stated interest rate of 1.0% and the net accretion of origination fees and costs. Also impacting total earning assets for the second quarter of 2020 was the decrease in the average balance of taxable investment securities of $21.5 million coupled with the decrease in yield on interest-bearing deposits with other banks of 113bps. Net interest income increased when compared to the second quarter of 2019 due to a decrease in interest expense of $893 thousand, or 36.4%. The decrease in interest expense was the direct result of the significant decline in both long-term and short-term borrowings which both carried higher rates than interest bearing deposits. In addition, the rates paid on interest bearing deposits declined by a combined 37bps. The average balance of loans increased $153.1 million, when compared to the second quarter of 2019 which provided an additional $196 thousand of interest income, but was offset by the decline in the average balance in taxable securities of $52.0 million and the decrease in the yield on interest-bearing deposits with other banks of 240bps. The Company’s net interest margin decreased to 3.41% for the second quarter of 2020 from 3.48% in the first quarter of 2020 and down from 3.54% in the second quarter of 2019.

 

The provision for credit losses was $1.0 million for the three months ended June 30, 2020. The comparable amounts were $350 thousand and $200 thousand for the three months ended March 31, 2020 and June 30, 2019, respectively. The ratio of the allowance for credit losses to period-end loans was 0.79% at June 30, 2020. Excluding PPP loans, the ratio of the allowance for credit losses to period-end loans was 0.86% at June 30, 2020, higher than both the 0.81% at March 31, 2020 and the 0.83% at June 30, 2019. The primary drivers of the increased percentage of the allowance to total loans, excluding PPP loans, and the increase in provision for loan losses as compared to both the prior periods were increases in qualitative factors and, in particular, elevated unemployment statistics, the impact of the COVID-19 pandemic, as well as an increase in loan volume. Net charge-offs were $288 thousand for the second quarter of 2020, compared to $479 thousand for the first quarter of 2020 and $313 thousand for the second quarter of 2019. The charge-offs in the second quarter related to continued workout efforts on nonperforming assets.

 

At June 30, 2020 and March 31, 2020, nonperforming assets were $12.3 million. Total nonperforming assets were $15.6 million at June 30, 2019. Total nonperforming assets decreased by $8 thousand between the linked quarters, which consisted of an increase in nonaccruals of $109 thousand, offset by a decrease in loans 90 days and still accruing of $117 thousand. Accruing troubled debt restructurings (“TDRs”) decreased $132 thousand, or 1.8%, over the same time period. When comparing June 30, 2020 to June 30, 2019, nonperforming assets decreased $3.3 million, or 21.0%, and accruing TDRs decreased $456 thousand, or 5.9%. The decrease in nonperforming assets from June 30, 2019 to June 30, 2020 was due to diligent workout efforts by the Company to reduce nonaccrual loans and other real estate owned properties. The ratio of nonperforming assets and accruing TDRs to total assets was 1.14% at June 30, 2020, 1.25% at March 31, 2020 and 1.56% at June 30, 2019. In addition, the ratio of accruing TDRs to total loans at June 30, 2020 was 0.52%, compared to 0.58% at March 31, 2020 and 0.63% at June 30, 2019.

 

Total noninterest income for the second quarter of 2020 increased $417 thousand, or 17.7%, when compared to the first quarter of 2020 and increased $160 thousand, or 6.1%, when compared to the second quarter of 2019. The increase from the first quarter of 2020 was primarily due to sales of available for sale securities at a gain of $347 thousand. The increase from the second quarter of 2019 was due to additional income from BOLI purchased late in the fourth quarter of 2019, offset by lower service charges on deposit accounts and gains on sales of securities.

 

Total noninterest expense from continuing operations for the second quarter of 2020 decreased $2.7 million, or 26.0%, when compared to the first quarter of 2020 and decreased $1.3 million, or 14.7%, when compared to the second quarter of 2019. The decrease in noninterest expense when compared to the first quarter of 2020 and the second quarter of 2019 was primarily in salaries and wages, due to the increased volume in PPP loans which resulted in heightened FASB 91 costs being deferred for the period. These loan origination costs were deferred at origination along with the related origination fees. The net fees have and will continue to be accreted to interest income as a yield adjustment over the lives of the related PPP loans, which for most was 24 months at the time of origination. The recognition of these deferred fees and costs as a component of interest income will be accelerated upon forgiveness or repayment of the PPP loans. As previously stated, the Company funded 1,427 PPP loans during the second quarter of 2020 and does not anticipate this level of volume resulting in a reduction of salaries and wages expense in future quarters.

 

 

  Page 4 of 18

 

Review of Six-Month Financial Results

Net interest income for the first six months of 2020 was $25.5 million, an increase of $862 thousand, or 3.5% when compared to the first six months of 2019. The increase was due to lower interest expense of $991 thousand which was a result of reduced interest expense on short and long-term borrowings of $455 thousand and lower costs on deposits of $536 thousand. These cost savings in interest expense were partially offset by a decrease in total interest income of $129 thousand. The decrease in interest income was the result of a decline in the average balance in taxable investment securities of $43.8 million, almost entirely offset by an increase in the average balance on loans of $107.3 million, despite a decline in loan yields of 31bps. This resulted in a net interest margin of 3.45% for the first six months of 2020 compared to 3.57% for the first six months of 2019.

 

The provision for credit losses for the six months ended June 30, 2020 and 2019 was $1.4 million and $300 thousand, respectively, while net charge-offs were $767 thousand and $338 thousand, respectively. The increase in provision for credit losses was the result of higher charge-offs in 2020 and qualitative factors related to economic conditions and the COVID-19 pandemic. The ratio of allowance to total loans decreased over the first six months of the year from 0.84% at December 31, 2019 to 0.79% at June 30, 2020. As previously discussed, this ratio decreased as a result of the PPP loans’ inclusion in the balance of total loans. Additionally, a reduction in specific reserves for certain legacy credits through charge-offs during the six months ended June 30, 2020 reduced the allowance to total loans ratio. The general reserve component of the allowance to legacy, non-impaired and non-PPP loans increased from 0.75% at December 31, 2019 to 0.89% at June 30, 2020, primarily resulting from increased qualitative allocations related to the COVID-19 pandemic. The ratio of annualized net charge-offs to average loans was 0.12% for the first half of 2020 and 0.06% for the first half of 2019. Management will continue to evaluate the adequacy of the allowance for credit losses as more economic data becomes available and as changes within the Company’s portfolio are known.

 

Total noninterest income from continuing operations for the six months ended June 30, 2020 increased $324 thousand, or 6.8%, when compared to the same period in 2019. The increase in noninterest income primarily consisted of increases in BOLI income, gains on sales of securities and other fees on bank services, partially offset by a decrease in service charges on deposit accounts.

 

Total noninterest expense from continuing operations for the six months ended June 30, 2020 decreased $316 thousand, or 1.7%, when compared to the same period in 2019. The decrease was a result of lower salaries and wages due to FASB 91 deferrals, lower FDIC insurance premiums and other real estate owned expenses, partially offset by higher employee benefit costs. The deferred costs for salaries and wages are being recognized over the lives of the related loans as previously mentioned.

 

Shore Bancshares Information

 

Shore Bancshares 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 Shore United Bank. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank.

 

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”.

 

 

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Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be fully reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; our cyber security risks are increased as the result of an increase in the number of employees working remotely; and FDIC premiums may increase if the agency experience additional resolution costs.

 

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.

 

For further information contact: Edward Allen, Executive Vice President and Chief Financial Officer, 410-763-7800

 

 

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Shore Bancshares, Inc.

Financial Highlights (Unaudited)

(Dollars in thousands, except per share data)

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   June 30, 
   2020   2019   Change   2020   2019   Change 
PROFITABILITY FOR THE PERIOD                        
Net interest income  $13,031   $12,293    6.0%  $25,549   $24,687    3.5%
Provision for credit losses   1,000    200    400.0    1,350    300    350.0 
Noninterest income   2,769    2,609    6.1    5,121    4,797    6.8 
Noninterest expense   7,663    8,985    (14.7)   18,012    18,328    (1.7)
Income from continuing operations before income taxes   7,137    5,717    24.8    11,308    10,856    4.2 
Income tax expense   1,802    1,489    21.0    2,855    2,800    2.0 
Income from continuing operations  $5,335   $4,228    26.2   $8,453   $8,056    4.9 
                               
Loss from discontinued operations before income taxes       (4)   100.0        (103)   100.0 
Income tax benefit                   (25)   100.0 
Loss from discontinued operations       (4)   100.0        (78)   100.0 
Net income  $5,335   $4,224    26.3   $8,453   $7,978    6.0 
                               
From Continuing Operations:                              
Return on average assets   1.31%   1.16%   15bp   1.07%   1.11%   (4)bp
Return on average equity   10.79    8.97    182    8.65    8.69    (4)
Return on average tangible equity (1)   12.20    10.31    189    9.84    10.02    (18)
Net interest margin   3.41    3.54    (13)   3.45    3.57    (12)
Efficiency ratio - GAAP   48.50    60.29    (1,179)   58.73    62.16    (343)
Efficiency ratio - Non-GAAP (1)   48.58    59.09    (1,051)   58.33    60.93    (260)
                               
PER SHARE DATA                              
Basic net income per common share                              
Income from continuing operations  $0.43   $0.33    30.3%  $0.68   $0.63    7.9%
Loss from discontinued operations                   (0.01)   100.0 
Net income  $0.43   $0.33    30.3   $0.68   $0.62    9.7 
Diluted net income per common share                              
Income from continuing operations  $0.43   $0.33    30.3   $0.68   $0.63    7.9 
Loss from discontinued operations                   (0.01)   100.0 
Net income  $0.43   $0.33    30.3   $0.68   $0.62    9.7 
                               
Dividends paid per common share  $0.12   $0.10    20.0   $0.24   $0.20    20.0 
Book value per common share at period end   15.98    14.97    6.7                
Tangible book value per common share at period end (1)   14.42    13.40    7.6                
Market value at period end   11.09    16.34    (32.1)               
Market range:                              
High   12.40    16.48    (24.8)   17.56    16.48    6.6 
Low   8.00    14.84    (46.1)   7.63    14.00    (45.5)
                               
AVERAGE BALANCE SHEET DATA                              
Loans  $1,374,324   $1,221,215    12.5%  $1,318,883   $1,211,618    8.9%
Investment securities   107,908    159,878    (32.5)   118,659    162,429    (26.9)
Earning assets   1,539,945    1,399,418    10.0    1,495,227    1,397,086    7.0 
Assets   1,638,387    1,468,093    11.6    1,592,689    1,464,214    8.8 
Deposits   1,427,063    1,233,951    15.6    1,377,112    1,224,876    12.4 
Stockholders' equity   198,842    189,101    5.2    196,587    187,048    5.1 

 

 

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CREDIT QUALITY DATA                        
Net charge-offs  $288   $313    (8.0)%  $767   $338    126.9%
                               
Nonaccrual loans  $11,649   $14,592    (20.2)               
Loans 90 days past due and still accruing   604    439    37.6                
Other real estate owned   38    524    (92.7)               
Total nonperforming assets   12,291    15,555    (21.0)               
Accruing troubled debt restructurings (TDRs)   7,312    7,768    (5.9)               
Total nonperforming assets and accruing TDRs  $19,603   $23,323    (15.9)               
                               
                               
CAPITAL AND CREDIT QUALITY RATIOS                              
Period-end equity to assets   11.64%   12.85%   (121)bp               
Period-end tangible equity to tangible assets (1)   10.63    11.66    (103)               
                               
Annualized net charge-offs to average loans   0.08    0.10    (2)   0.12%   0.06%   6bp
                               
Allowance for credit losses as a percent of:                              
Period-end loans (2)   0.79    0.83    (4)               
Nonaccrual loans   95.20    70.62    2,458                
Nonperforming assets   90.23    66.25    2,398                
Accruing TDRs   151.67    132.66    1,901                
Nonperforming assets and accruing TDRs   56.57    44.18    1,239                
                               
As a percent of total loans:                              
Nonaccrual loans   0.83    1.18    (35)               
Accruing TDRs   0.52    0.63    (11)               
Nonaccrual loans and accruing TDRs   1.35    1.80    (45)               
                               
As a percent of total loans+other real estate owned:                              
Nonperforming assets   0.87    1.25    (38)               
Nonperforming assets and accruing TDRs   1.39    1.88    (49)               
                               
As a percent of total assets:                              
Nonaccrual loans   0.68    0.98    (30)               
Nonperforming assets   0.71    1.04    (33)               
Accruing TDRs   0.43    0.52    (9)               
Nonperforming assets and accruing TDRs   1.14    1.56    (42)               
 
(1)See the reconciliation table on page 18 of 18.
(2)As of 6/30/2020, this ratio includes PPP loans of $123.0 million. Excluding these loans, the ratio is 0.86%.

 

 

  Page 8 of 18

Shore Bancshares, Inc.

Consolidated Balance Sheets (Unaudited)

(In thousands, except per share data)

 

               June 30, 2020 
   June 30,   December 31,   June 30,   compared to
December 31,
 
   2020   2019   2019   2019 
ASSETS                    
Cash and due from banks  $24,585   $18,465   $18,541    33.1%
Interest-bearing deposits with other banks   101,699    76,506    20,739    32.9 
Cash and cash equivalents   126,284    94,971    39,280    33.0 
                     
Investment securities available for sale (at fair value)   86,020    122,791    145,410    (29.9)
Investment securities held to maturity   11,710    8,786    5,905    33.3 
Equity securities, at fair value   1,388    1,342    1,325    3.4 
Restricted securities   3,626    4,190    5,095    (13.5)
                     
Loans   1,407,249    1,248,654    1,240,295    12.7 
Less: allowance for credit losses   (11,090)   (10,507)   (10,305)   5.5 
Loans, net   1,396,159    1,238,147    1,229,990    12.8 
                     
Premises and equipment, net   24,668    23,821    22,710    3.6 
Goodwill   17,518    17,518    17,518     
Other intangible assets, net   1,970    2,252    2,540    (12.5)
Other real estate owned, net   38    74    524    (48.6)
Right of use assets, net   4,879    4,771    3,663    2.3 
Other assets   45,264    40,572    14,602    11.6 
                     
Total assets  $1,719,524   $1,559,235   $1,488,562    10.3 
                     
LIABILITIES                    
Noninterest-bearing deposits  $442,996   $356,618   $346,916    24.2 
Interest-bearing deposits   1,061,732    984,716    902,084    7.8 
Total deposits   1,504,728    1,341,334    1,249,000    12.2 
                     
Short-term borrowings   1,064    1,226    25,508    (13.2)
Long-term borrowings       15,000    15,000    (100.0)
Lease liabilities   4,941    4,792    3,663    3.1 
Accrued expenses and other liabilities   8,657    4,081    4,084    112.1 
Total liabilities   1,519,390    1,366,433    1,297,255    11.2 
                     
COMMITMENTS AND CONTINGENCIES                    
                     
STOCKHOLDERS' EQUITY                    
Common stock, par value $0.01; authorized 35,000,000 shares   125    125    128     
Additional paid in capital   61,129    61,045    65,376    0.1 
Retained earnings   136,876    131,425    125,996    4.1 
Accumulated other comprehensive income (loss)   2,004    207    (193)   868.1 
Total stockholders' equity   200,134    192,802    191,307    3.8 
                     
Total liabilities and stockholders' equity  $1,719,524   $1,559,235   $1,488,562    10.3 
                     
Period-end common shares outstanding   12,526    12,500    12,780    0.2 
Book value per common share  $15.98   $15.42   $14.97    3.6 

 

 

  Page 9 of 18

Shore Bancshares, Inc.

Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   June 30, 
   2020   2019   % Change   2020   2019   % Change 
INTEREST INCOME                              
Interest and fees on loans  $13,945   $13,749    1.4%  $27,740   $27,248    1.8%
Interest on investment securities:                              
Taxable   638    887    (28.1)   1,357    1,885    (28.0)
Interest on deposits with other banks   11    113    (90.3)   183    276    (33.7)
Total interest income   14,594    14,749    (1.1)   29,280    29,409    (0.4)
                               
INTEREST EXPENSE                              
Interest on deposits   1,556    2,204    (29.4)   3,615    4,151    (12.9)
Interest on short-term borrowings   1    145    (99.3)   3    358    (99.2)
Interest on long-term borrowings   6    107    (94.4)   113    213     
Total interest expense   1,563    2,456    (36.4)   3,731    4,722    (21.0)
                               
NET INTEREST INCOME   13,031    12,293    6.0    25,549    24,687    3.5 
Provision for credit losses   1,000    200    400.0    1,350    300    350.0 
                               
NET INTEREST INCOME AFTER PROVISION                              
FOR CREDIT LOSSES   12,031    12,093    (0.5)   24,199    24,387    (0.8)
                               
NONINTEREST INCOME                              
Service charges on deposit accounts   544    1,028    (47.1)   1,410    1,962    (28.1)
Trust and investment fee income   363    385    (5.7)   738    757    (2.5)
Gains on sales and calls of investment securities   347            347         
Other noninterest income   1,515    1,196    26.7    2,626    2,078    26.4 
Total noninterest income   2,769    2,609    6.1    5,121    4,797    6.8 

 

 

  Page 10 of 18

 

NONINTEREST EXPENSE                        
Salaries and wages   2,130    3,792    (43.8)   6,426    7,558    (15.0)
Employee benefits   1,535    1,068    43.7    3,257    2,322    40.3 
Occupancy expense   702    668    5.1    1,400    1,359    3.0 
Furniture and equipment expense   247    295    (16.3)   564    558    1.1 
Data processing   1,037    919    12.8    2,081    1,829    13.8 
Directors' fees   113    116    (2.6)   254    202    25.7 
Amortization of intangible assets   138    155    (11.0)   282    317    (11.0)
FDIC insurance premium expense   124    181    (31.5)   215    386    (44.3)
Other real estate owned expenses, net       60    (100.0)   18    293    (93.9)
Legal and professional fees   553    559    (1.1)   1,187    1,160    2.3 
Other noninterest expenses   1,084    1,172    (7.5)   2,328    2,344    (0.7)
Total noninterest expense   7,663    8,985    (14.7)   18,012    18,328    (1.7)
                               
Income from continuing operations before income taxes   7,137    5,717    24.8    11,308    10,856    4.2 
Income tax expense   1,802    1,489    21.0    2,855    2,800    2.0 
                               
Income from continuing operations   5,335    4,228    26.2    8,453    8,056    4.9 
                               
Loss from discontinued operations before income taxes       (4)   100.0        (103)   100.0 
Income tax benefit                   (25)   100.0 
                               
Loss from discontinued operations       (4)   100.0        (78)   100.0 
                               
NET INCOME  $5,335   $4,224    26.3   $8,453   $7,978    6.0 
                               
Weighted average shares outstanding - basic   12,524    12,779    (2.0)   12,519    12,774    (2.0)
Weighted average shares outstanding - diluted   12,525    12,784    (2.0)   12,521    12,779    (2.0)
                               
Basic net income per common share                              
Income from continuing operations  $0.43   $0.33    30.3   $0.68   $0.63    7.9 
Loss from discontinued operations                   (0.01)   100.0 
Net income  $0.43   $0.33    30.3   $0.68   $0.62    9.7 
                               
Diluted net income per common share                              
Income from continuing operations  $0.43   $0.33    30.3   $0.68   $0.63    7.9 
Loss from discontinued operations           -        (0.01)   100.0 
Net income  $0.43   $0.33    30.3   $0.68   $0.62    9.7 
                               
Dividends paid per common share   0.12    0.10    20.0    0.24    0.20    20.0 

 

 

  Page 11 of 18

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited)

(Dollars in thousands)

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   June 30, 
   2020   2019   2020   2019 
   Average   Yield/   Average   Yield/   Average   Yield/   Average   Yield/ 
   balance   rate   balance   rate   balance   rate   balance   rate 
Earning assets                                        
Loans (1), (2), (3)  $1,374,324    4.09%  $1,221,215    4.53%  $1,318,883    4.24%  $1,211,618    4.55%
Investment securities                                        
Taxable   107,908    2.37    159,878    2.22    118,659    2.30    162,429    2.34 
Interest-bearing deposits   57,713    0.07    18,325    2.47    57,685    0.64    23,039    2.42 
Total earning assets   1,539,945    3.82%   1,399,418    4.24%   1,495,227    3.95%   1,397,086    4.26%
Cash and due from banks   18,167         17,225         18,020         17,211      
Other assets   90,981         61,906         90,068         60,340      
Allowance for credit losses   (10,706)        (10,456)        (10,626)        (10,423)     
Total assets  $1,638,387        $1,468,093        $1,592,689        $1,464,214      
                                         
                                         
Interest-bearing liabilities                                        
Demand deposits  $298,568    0.20%  $234,775    0.65%  $291,372    0.37%  $237,271    0.63%
Money market and savings deposits   426,963    0.23    385,272    0.84    418,608    0.34    384,508    0.84 
Brokered deposits           20,866    2.52            21,470    2.44 
Certificates of deposit $100,000 or more   130,582    1.81    107,549    1.54    129,995    1.83    103,067    1.40 
Other time deposits   150,675    1.54    145,900    1.31    150,659    1.58    143,226    1.16 
Interest-bearing deposits   1,006,788    0.62    894,362    0.99    990,634    0.73    889,542    0.94 
Short-term borrowings   2,030    0.20    21,557    2.70    1,632    0.37    27,239    2.65 
Long-term borrowings   824    2.93    15,000    2.86    7,912    2.87    15,000    2.86 
Total interest-bearing liabilities   1,009,642    0.62%   930,919    1.06%   1,000,178    0.75%   931,781    1.02%
Noninterest-bearing deposits   420,275         339,589         386,478         335,334      
Accrued expenses and other liabilities   9,628         8,484         9,446         10,051      
Stockholders' equity   198,842         189,101         196,587         187,048      
Total liabilities and stockholders' equity  $1,638,387        $1,468,093        $1,592,689        $1,464,214      
                                         
Net interest spread        3.20%        3.18%        3.20%        3.24%
Net interest margin        3.41%        3.54%        3.45%        3.57%
 
(1)All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.
(2)Average loan balances include nonaccrual loans.
(3)Interest income on loans includes amortized loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations.

 

 

  Page 12 of 18

Shore Bancshares, Inc.

Financial Highlights By Quarter (Unaudited)

(Dollars in thousands, except per share data)

 

                             
  

2nd

Quarter

  

1st

Quarter

  

4th

Quarter

  

3rd

Quarter

  

2nd

Quarter

   Q2 2020   Q2 2020 
   2020   2020   2019   2019   2019   compared to   compared to 
   Q2 2020   Q1 2020   Q4 2019   Q3 2019   Q2 2019   Q1 2020   Q2 2019 
PROFITABILITY FOR THE PERIOD                                   
Taxable-equivalent net interest income  $13,068   $12,554   $12,808   $12,724   $12,334    4.1%   6.0 
Less: Taxable-equivalent adjustment   37    36    44    44    41    2.8    (9.8)
Net interest income   13,031    12,518    12,764    12,680    12,293    4.1    6.0 
Provision for credit losses   1,000    350    200    200    200    185.7    400.0 
Noninterest income   2,769    2,352    2,694    2,529    2,609    17.7    6.1 
Noninterest expense   7,663    10,349    9,845    9,384    8,985    (26.0)   (14.7)
Income from continuing operations before income taxes   7,137    4,171    5,413    5,625    5,717    71.1    24.8 
Income tax expense   1,802    1,053    1,399    1,411    1,489    71.1    21.0 
Income from continuing operations   5,335    3,118    4,014    4,214    4,228    71.1    26.2 
                                    
Loss from discontinued operations before income taxes               (10)   (4)       100.0 
Income tax benefit               (2)            
Loss from discontinued operations               (8)   (4)       100.0 
                                    
Net income  $5,335   $3,118   $4,014   $4,206   $4,224    71.1    26.3 
                                    
From Continuing Operations:                                   
Return on average assets   1.31%   0.81%   1.03%   1.10%   1.16%   50bp   15 
Return on average equity   10.79    6.45    8.24    8.66    8.97    434    182 
Return on average tangible equity (1)   12.20    7.43    9.43    9.90    10.31    477    189 
Net interest margin   3.41    3.48    3.47    3.52    3.54    (7)   (13)
Efficiency ratio - GAAP   48.50    69.60    63.69    61.70    60.29    (2,110)   (1,179)
Efficiency ratio - Non-GAAP (1)   48.58    68.46    62.58    60.58    59.09    (1,988)   (1,051)
                                    
PER SHARE DATA                                   
Basic net income per common share                                   
Income from continuing operations  $0.43   $0.25   $0.32   $0.33   $0.33    72.0%   30.3 
Loss from discontinued operations                            
Net income  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
Diluted net income per common share                                   
Income from continuing operations  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
Loss from discontinued operations                            
Net income  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
                                    
Dividends paid per common share   0.12    0.12    0.12    0.10    0.10        20.0 
Book value per common share at period end   15.98    15.62    15.42    15.22    14.97    2.3    6.7 
Tangible book value per common share at period end (1)   14.42    14.06    13.84    13.66    13.40    2.6    7.6 
Market value at period end   11.09    10.85    17.36    15.41    16.34    2.2    (32.1)
Market range:                                   
High   12.40    17.56    17.90    17.00    16.48    (29.4)   (24.8)
Low   8.00    7.63    15.01    14.90    14.84    4.8    (46.1)

 

 

  Page 13 of 18

 

AVERAGE BALANCE SHEET DATA                                   
Loans  $1,374,324   $1,263,441   $1,246,355   $1,235,374   $1,221,215    8.8%   12.5 
Investment securities   107,908    129,410    145,544    155,324    159,878    (16.6)   (32.5)
Earning assets   1,539,945    1,450,508    1,463,490    1,432,252    1,399,418    6.2    10.0 
Assets   1,638,387    1,546,991    1,553,017    1,513,790    1,468,093    5.9    11.6 
Deposits   1,427,063    1,327,162    1,334,047    1,280,057    1,233,951    7.5    15.6 
Stockholders' equity   198,842    194,332    193,239    193,120    189,101    2.3    5.2 
                                    
CREDIT QUALITY DATA                                   
Net charge-offs  $288   $479   $131   $67   $313    (39.9)%   (8.0)
                                    
Nonaccrual loans  $11,649   $11,540   $10,590   $12,530   $14,592    0.9    (20.2)
Loans 90 days past due and still accruing   604    721    1,326    712    439    (16.2)   37.6 
Other real estate owned   38    38    74    74    524        (92.7)
Total nonperforming assets  $12,291   $12,299   $11,990   $13,316   $15,555    (0.1)   (21.0)
                                    
Accruing troubled debt restructurings (TDRs)  $7,312   $7,444   $7,501   $7,588   $7,768    (1.8)   (5.9)
                                    
Total nonperforming assets and accruing TDRs  $19,603   $19,743   $19,491   $20,904   $23,323    (0.7)   (15.9)
                                    
CAPITAL AND CREDIT QUALITY RATIOS                                   
Period-end equity to assets   11.64%   12.45%   12.37%   12.42%   12.85%   (81)bp   (121)
Period-end tangible equity to tangible assets (1)   10.63    11.35    11.24    11.29    11.66    (72)   (103)
                                    
Annualized net charge-offs to average loans   0.08    0.15    0.04    0.02    0.10    (7)   (2)
                                    
Allowance for credit losses as a percent of:                                   
Period-end loans (2)   0.79    0.81    0.84    0.85    0.83    (2)   (4)
Nonaccrual loans   95.20    89.93    99.22    83.30    70.62    527    2,458 
Nonperforming assets   90.23    84.38    87.63    78.39    66.25    585    2,398 
Accruing TDRs   151.67    139.41    140.07    137.56    132.66    1,226    1,901 
Nonperforming assets and accruing TDRs   56.57    52.57    53.91    49.93    44.18    400    1,239 
                                    
As a percent of total loans:                                   
Nonaccrual loans   0.83    0.90    0.85    1.01    1.18    (7)   (35)
Accruing TDRs   0.52    0.58    0.60    0.61    0.63    (6)   (11)
Nonaccrual loans and accruing TDRs   1.35    1.49    1.45    1.63    1.80    (14)   (45)
                                    
As a percent of total loans+other real estate owned:                                   
Nonperforming assets   0.87    0.96    0.96    1.08    1.25    (9)   (38)
Nonperforming assets and accruing TDRs   1.39    1.55    1.56    1.69    1.88    (16)   (49)
                                    
As a percent of total assets:                                   
Nonaccrual loans   0.68    0.73    0.68    0.80    0.98    (5)   (30)
Nonperforming assets   0.71    0.78    0.77    0.85    1.04    (7)   (33)
Accruing TDRs   0.43    0.47    0.48    0.49    0.52    (4)   (9)
Nonperforming assets and accruing TDRs   1.14    1.25    1.25    1.34    1.56    (11)   (42)
 
(1)See the reconciliation table on page 18 of 18.
(2)As of 6/30/2020, this ratio includes PPP loans of $123.0 million. Excluding these loans, the ratio is 0.86%.

 

 

  Page 14 of 18

Shore Bancshares, Inc.

Consolidated Statements of Income By Quarter (Unaudited)

(In thousands, except per share data)

 

                       Q2 2020   Q2 2020 
                       compared to   compared to 
   Q2 2020   Q1 2020   Q4 2019   Q3 2019   Q2 2019   Q1 2020   Q2 2019 
INTEREST INCOME                                   
Interest and fees on loans  $13,945   $13,795   $14,043   $14,100   $13,749    1.1%   1.4%
Interest on investment securities:                                   
Taxable   638    719    827    870    887    (11.3)   (28.1)
Interest on deposits with other banks   11    172    295    223    113    (93.6)   (90.3)
Total interest income   14,594    14,686    15,165    15,193    14,749    (0.6)   (1.1)
                                    
INTEREST EXPENSE                                   
Interest on deposits   1,556    2,059    2,287    2,288    2,204    (24.4)   (29.4)
Interest on short-term borrowings   1    2    6    117    145    (50.0)   (99.3)
Interest on long-term borrowings   6    107    108    108    107    (94.4)   (94.4)
Total interest expense   1,563    2,168    2,401    2,513    2,456    (27.9)   (36.4)
                                    
NET INTEREST INCOME   13,031    12,518    12,764    12,680    12,293    4.1    6.0 
Provision for credit losses   1,000    350    200    200    200    185.7    400.0 
                                    
NET INTEREST INCOME AFTER PROVISION                                   
FOR CREDIT LOSSES   12,031    12,168    12,564    12,480    12,093    (1.1)   (0.5)
                                    
NONINTEREST INCOME                                   
Service charges on deposit accounts   544    866    958    990    1,028    (37.2)   (47.1)
Trust and investment fee income   363    375    382    383    385    (3.2)   (5.7)
Gains on sales and calls of investment securities   347                         
Other noninterest income   1,515    1,111    1,354    1,156    1,196    36.4    26.7 
Total noninterest income   2,769    2,352    2,694    2,529    2,609    17.7    6.1 

 

 

  Page 15 of 18

 

NONINTEREST EXPENSE                                   
Salaries and wages   2,130    4,296    4,002    3,853    3,792    (50.4)   (43.8)
Employee benefits   1,535    1,722    1,662    1,299    1,068    (10.9)   43.7 
Occupancy expense   702    698    702    697    668    0.6    5.1 
Furniture and equipment expense   247    317    286    263    295    (22.1)   (16.3)
Data processing   1,037    1,044    989    972    919    (0.7)   12.8 
Directors' fees   113    141    137    140    116    (19.9)   (2.6)
Amortization of intangible assets   138    144    144    144    155    (4.2)   (11.0)
FDIC insurance premium expense   124    91    (42)       181    36.3    (31.5)
Other real estate owned expenses, net       18    (1)   133    60    (100.0)   (100.0)
Legal and professional fees   553    634    568    495    559    (12.8)   (1.1)
Other noninterest expenses   1,084    1,244    1,398    1,388    1,172    (12.9)   (7.5)
Total noninterest expense   7,663    10,349    9,845    9,384    8,985    (26.0)   (14.7)
                                    
Income from continuing operations before income taxes   7,137    4,171    5,413    5,625    5,717    71.1    24.8 
Income tax expense   1,802    1,053    1,399    1,411    1,489    71.1    21.0 
                                    
Income from continuing operations   5,335    3,118    4,014    4,214    4,228    71.1    26.2 
                                    
Loss from discontinued operations before income taxes               (10)   (4)       100.0 
Income tax benefit               (2)            
                                    
Loss from discontinued operations               (8)   (4)       100.0 
                                    
                                    
NET INCOME  $5,335   $3,118   $4,014   $4,206   $4,224    71.1    26.3 
                                    
Weighted average shares outstanding - basic   12,524    12,513    12,588    12,764    12,779    0.1    (2.0)
Weighted average shares outstanding - diluted   12,525    12,518    12,593    12,769    12,784    0.1    (2.0)
                                    
Basic net income per common share                                   
Income from continuing operations  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
Loss from discontinued operations                            
Net income  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
Diluted net income per common share                                   
Income from continuing operations  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
Loss from discontinued operations                            
Net income  $0.43   $0.25   $0.32   $0.33   $0.33    72.0    30.3 
                                    
Dividends paid per common share   0.12    0.12    0.12    0.10    0.10        20.0 

 

 

  Page 16 of 18

Shore Bancshares, Inc.

Consolidated Average Balance Sheets By Quarter (Unaudited)

(Dollars in thousands)

 

                                      Average balance 
                                      Q2 2020   Q2 2020 
                                      compared to   compared to 
   Q2 2020   Q1 2020   Q4 2019   Q3 2019   Q2 2019   Q1 2020   Q2 2019 
   Average  Yield/   Average  Yield/   Average  Yield/   Average  Yield/   Average  Yield/         
   balance  rate   balance  rate   balance  rate   balance  rate   balance  rate         
Earning assets                                                     
Loans (1), (2), (3)   1,374,324   4.09%  $1,263,441   4.40%  $1,246,355   4.48%  $1,235,374   4.54%  $1,221,215   4.53%  8.8%  12.5%
Investment securities                                                     
Taxable   107,908   2.37    129,410   2.22    145,544   2.27    155,324   2.24    159,878   2.22   (16.6)  (32.5)
Interest-bearing deposits   57,713   0.07    57,657   1.20    71,591   1.63    41,554   2.13    18,325   2.47   0.1   214.9 
Total earning assets   1,539,945   3.82%   1,450,508   4.08%   1,463,490   4.12%   1,432,252   4.22%   1,399,418   4.24%  6.2   10.0 
Cash and due from banks   18,167        17,874        20,382        18,127        17,225       1.6   5.5 
Other assets   90,981        89,154        79,586        73,823        61,906       2.0   47.0 
Allowance for credit losses   (10,706)       (10,545)       (10,441)       (10,412)       (10,456)      1.5   2.4 
Total assets  $1,638,387       $1,546,991       $1,553,017       $1,513,790       $1,468,093       5.9   11.6 
                                                      
Interest-bearing liabilities                                                     
Demand deposits  $298,568   0.20%  $284,176   0.56%  $284,193   0.76%  $252,386   0.70%  $234,775   0.65%  5.1   27.2 
Money market and savings deposits   426,963   0.23    410,252   0.46    397,662   0.51    389,268   0.67    385,272   0.84   4.1   10.8 
Brokered deposits                 8,135   2.15    14,568   2.29    20,866   2.52      (100.0)
Certificates of deposit $100,000 or more   130,582   1.81    129,408   1.85    126,411   1.85    119,200   1.78    107,549   1.54   0.9   21.4 
Other time deposits   150,675   1.54    150,645   1.60    149,197   1.58    149,708   1.49    145,900   1.31      3.3 
Interest-bearing deposits   1,006,788   0.62    974,481   0.85    965,598   0.94    925,130   0.98    894,362   0.99   3.3   12.6 
Short-term borrowings   2,030   0.20    1,235   0.65    1,889   1.26    17,729   2.64    21,557   2.70   64.4   (90.6)
Long-term borrowings   824   2.93    15,000   2.87    15,000   2.86    15,000   2.86    15,000   2.86   (94.5)  (94.5)
Total interest-bearing liabilities   1,009,642   0.62%   990,716   0.88%   982,487   0.97%   957,859   1.04%   930,919   1.06%  1.9   8.5 
Noninterest-bearing deposits   420,275        352,681        368,449        354,927        339,589       19.2   23.8 
Accrued expenses and other liabilities   9,628        9,262        8,842        7,884        8,484       4.0   13.5 
Stockholders' equity   198,842        194,332        193,239        193,120        189,101       2.3   5.2 
Total liabilities and stockholders' equity  $1,638,387       $1,546,991       $1,553,017       $1,513,790       $1,468,093       5.9   11.6 
                                                      
Net interest spread       3.20%       3.20%       3.15%       3.18%       3.18%