SHORE BANCSHARES, INC. 
By EASTON, Md., Jan. 27 /PRNewswire-FirstCall/ -- Shore Bancshares, Inc. (Nasdaq: SHBI) reported net income available to common stockholders of $1.216 million or $0.14 per diluted common share for the fourth quarter of 2009, compared to $1.951 million or $0.23 per diluted common share for the third quarter of 2009 and $2.261 million or $0.27 per diluted common share for the fourth quarter of 2008. Net income available to common stockholders for 2009 was $5.4 million or $0.64 per diluted common share, compared to $11.5 million or $1.37 per diluted common share for 2008.
During 2009, net income available to common stockholders was negatively impacted by dividends and discount accretion associated with the sale and subsequent repurchase of preferred stock under the U.S. Department of the Treasury's Troubled Asset Relief Program Capital Purchase Program. The impact on 2009 from the preferred stock activity was $1.9 million or $0.22 per share.
"We are pleased to report a profitable final quarter and full year, considering the ongoing difficult operating environment both nationally and here in the Mid-Atlantic region. We are fortunate that the economic climate across the Delmarva peninsula markets within our footprint has remained reasonably stable and continues to outperform the nation as a whole, in terms of unemployment, per capita income levels and real estate property valuations. However, we enter 2010 with a very conservative outlook and will remain focused on the resolution of problem assets, growing our core deposit base, and maintaining an above-average net interest margin," said W. Moorhead Vermilye, President and Chief Executive Officer.
The Company's return on average assets for the fourth quarter of 2009 was 0.41%, compared to 0.66% and 0.87% for the quarters ended September 30, 2009 and December 31, 2008, respectively. The return on average stockholders' equity was 3.75% for the fourth quarter of 2009, compared to 6.03% for the third quarter of 2009 and 7.11% for the fourth quarter of 2008.
The Company's return on average assets was 0.48% for 2009, compared to 1.13% for 2008. The return on average stockholders' equity was 4.00% for 2009 and 9.22% for 2008.
Total assets were $1.157 billion at December 31, 2009, compared to $1.045 billion at the end of 2008, an increase of 10.7%. Total loans were $916.6 million and total deposits were $990.9 million, an increase of 3.2% and 17.2%, respectively, when compared to December 31, 2008. The increase in deposits was primarily from the Company's participation in the Promontory Insured Network Deposits Program ("IND") beginning in the second quarter of 2009. Total stockholders' equity increased slightly from the end of 2008.
Review of Quarterly Financial Results
Net interest income for the fourth quarter of 2009 was $10.8 million, a 3.6% increase from the third quarter of 2009 and a 4.4% increase from the same quarter of last year. Higher average balances of earning assets and lower rates paid on interest bearing liabilities were sufficient to offset the decline in yields on earning assets. The Company's net interest margin was 3.90% for the fourth quarter of 2009, an increase of 11 basis points when compared to the third quarter of 2009 and a decrease of 34 basis points when compared to the fourth quarter of 2008.
The provision for credit losses was $3.7 million for the three months ended December 31, 2009. The comparable amounts were $1.7 million and $1.4 million for the three months ended September 30, 2009 and December 31, 2008, respectively. The continued large level of provision expense was primarily in response to the overall increase in nonperforming assets and loan charge-offs, as well as to overall economic conditions. Net charge-offs were $3.5 million for the fourth quarter of 2009, $1.8 million for the third quarter of 2009 and $683 thousand for the fourth quarter of 2008. Quarter-to-date annualized net charge-offs to average loans was 1.51% for the fourth quarter of 2009, 0.76% for the third quarter of 2009 and 0.31% for the fourth quarter of 2008. Nonperforming assets to total assets was 1.63% at December 31, 2009. The comparable nonperforming asset ratio was 1.51% at September 30, 2009 and 0.79% at December 31, 2008. The allowance for credit losses to period-end loans increased to 1.19% at December 31, 2009, compared to 1.17% at September 30, 2009 and 1.05% at December 31, 2008. Management believes that the provision for credit losses and the resulting allowance were adequate at December 31, 2009.
Noninterest income for the fourth quarter of 2009 decreased 12.6% when compared to the third quarter of 2009 and decreased 6.4% when compared to the fourth quarter of 2008. The decrease in insurance agency commissions of $585 thousand from the third quarter of 2009 and $336 thousand from the fourth quarter of 2008 accounted for most of the decline.
Noninterest expense for the fourth quarter of 2009 decreased 9.0% when compared to the third quarter of 2009 and decreased 2.6% when compared to the fourth quarter of 2008. The decrease from the third quarter of 2009 was primarily due to lower salaries and employee benefits caused by less expense accrued for bonus and profit sharing plans. The decrease from the fourth quarter of 2008 was also primarily due to lower salaries and employee benefits, partially offset by higher FDIC insurance premiums.
Review of 2009 Financial Results
Net interest income for 2009 was $41.4 million, an increase of 3.7% when compared to 2008. Similar to the quarterly results reported above, higher average balances on earning assets and lower rates paid on interest bearing liabilities were sufficient to offset the decline in yields on earning assets. The net interest margin declined 33 basis points from 4.23% for 2008 to 3.90% for 2009.
The provisions for credit losses for 2009 and 2008 were $9.0 million and $3.3 million, respectively. Net charge-offs were $7.4 million and $1.6 million for 2009 and 2008, respectively. Year-to-date annualized net charge-offs to average loans was 0.81% for 2009 and 0.19% for 2008.
Noninterest income for 2009 decreased 4.0% when compared to 2008. A decline in insurance agency commissions of $959 thousand for the year accounted for most of the decrease when compared to 2008. Other noninterest income included a mark to market gain on interest rate swaps of $420 thousand during the second quarter of 2009. In addition, noninterest income for 2008 included a $1.3 million gain on the sale of a bank branch in August 2008. The gain on the branch sale was partially offset by a $371 thousand other than temporary impairment of Freddie Mac Preferred Stock and a $337 thousand loss on the sale of the Company's investment in Delmarva Bank Data Processing Center, Inc., an unconsolidated subsidiary.
Noninterest expense for 2009 increased 4.9% when compared to 2008. A significant portion of the increase was due to increased FDIC insurance premium expense of $1.7 million when compared to 2008. The increase in FDIC insurance premiums was attributable to higher overall rates, a one-time special assessment which totaled $513 thousand and growth in the Company's total deposits.
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 three banks, The Talbot Bank of Easton, Maryland, CNB, and The Felton Bank; three insurance producer firms, The Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin and Associates, Inc; a wholesale insurance company, TSGIA, Inc; two insurance premium finance companies, Mubell Finance, LLC and ESFS, Inc; a registered investment adviser firm, Wye Financial Services, LLC; and a mortgage broker subsidiary, Wye Mortgage Group, LLC.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not represent historical facts, but statements about management's beliefs, plans and objectives. 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".
Shore Bancshares, Inc.
Financial Highlights
(Dollars in thousands, except per share data)
For the Three
Months Ended
Dec. 31,
--------
2009 2008 % Change
---- ---- --------
PROFITABILITY FOR THE
PERIOD
Net interest income $10,806 $10,348 4.4%
Provision for credit
losses 3,668 1,385 164.8
Noninterest income 4,125 4,408 (6.4)
Noninterest expense 9,375 9,621 (2.6)
----- -----
Income before income
taxes 1,888 3,750 (49.7)
Income tax expense 672 1,489 (54.9)
--- -----
Net income 1,216 2,261 (46.2)
Preferred stock
dividends and
discount accretion - - -
- -
Net income
available to
common
shareholders $1,216 $2,261 (46.2)
====== ======
Return on average
assets (1) 0.41% 0.87% (52.9)%
Return on average
equity (1) 3.75 7.11 (47.3)
Net interest margin 3.90 4.24 (8.0)
Efficiency ratio -
GAAP based 62.79 65.20 (3.7)
PER SHARE DATA
Basic net income per
share $0.14 $0.27 (48.1)%
Basic net income per
common share 0.14 0.27 (48.1)
Diluted net income per
share 0.14 0.27 (48.1)
Diluted net income per
common share 0.14 0.27 (48.1)
Dividends paid per
common share 0.16 0.16 -
Book value per common
share at period end 15.18 15.16 0.1
Tangible book value
per common share at
period end 12.64 12.55 0.7
Market value at
period end 14.50 23.99 (39.6)
Market range:
High 17.71 25.97 (31.8)
Low 13.52 17.50 (22.7)
AT PERIOD END
Loans $916,557 $888,528 3.2%
Securities 109,684 89,456 22.6
Assets 1,156,516 1,044,641 10.7
Deposits 990,937 845,371 17.2
Stockholders' equity 127,810 127,385 0.3
CAPITAL AND CREDIT
QUALITY RATIOS
Average equity to
average assets 11.01% 12.22%
Annualized net charge-
offs to average loans 1.51 0.31
Allowance for credit
losses to period-end
loans 1.19 1.05
Nonperforming assets
to total loans+other
real estate owned 2.05 0.93
Nonperforming
assets to total
assets 1.63 0.79
Nonperforming
assets+Loans 90 days
past due
and still accruing to
total loans+other
real estate owned 2.86 1.09
Nonperforming
assets+Loans 90 days
past due
and still
accruing to
total assets 2.27 0.92
For the Twelve
Months Ended
Dec. 31,
--------
2009 2008 % Change
---- ---- --------
PROFITABILITY FOR THE
PERIOD
Net interest
income $41,378 $39,919 3.7%
Provision for
credit losses 8,986 3,337 169.3
Noninterest
income 19,541 20,350 (4.0)
Noninterest
expense 40,248 38,370 4.9
------ ------
Income before
income taxes 11,685 18,562 (37.0)
Income tax
expense 4,412 7,092 (37.8)
----- -----
Net income 7,273 11,470 (36.6)
Preferred
stock
dividends and
discount
accretion 1,876 - -
----- -
Net income
available to
common
shareholders $5,397 $11,470 (52.9)
====== =======
Return on
average
assets (1) 0.48% 1.13% (57.5)%
Return on
average
equity (1) 4.00 9.22 (56.6)
Net interest
margin 3.90 4.23 (7.8)
Efficiency
ratio -GAAP
based 66.07 63.66 3.8
PER SHARE DATA
Basic net income
per share $0.86 $1.37 (37.2)%
Basic net income
per common share 0.64 1.37 (53.3)
Diluted net
income per
share 0.86 1.37 (37.2)
Diluted net income
per common share 0.64 1.37 (53.3)
Dividends paid
per common
share 0.64 0.64 -
Book value per
common share at
period end
Tangible book
value per
common share
at period end
Market value at
period end
Market range:
High 24.43 27.25 (10.3)
Low 11.00 17.50 (37.1)
AT PERIOD END
Loans
Securities
Assets
Deposits
Stockholders' equity
CAPITAL AND CREDIT
QUALITY RATIOS
Average equity to
average assets 11.96% 12.30%
Annualized net charge-
offs to average loans 0.81 0.19
(1) Calculation uses net income available to common shareholders.
Shore Bancshares, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
Dec. 31,
Dec. 31, Dec. 31, 2009
-------- -------- ---------
2009 2008 compared to
---- ---- -----------
Dec. 31,
2008
---------
ASSETS
Cash and due from banks $14,411 $16,803 (14.2)%
Interest-bearing deposits
with other banks 598 481 24.3
Federal funds sold 60,637 10,010 505.8
Investments available-for-
sale (at fair value) 100,744 79,204 27.2
Investments held-to-
maturity 8,940 10,252 (12.8)
Loans 916,557 888,528 3.2
Less: allowance for credit
losses (10,876) (9,320) 16.7
------- ------
Loans, net 905,681 879,208 3.0
------- -------
Premises and equipment, net 14,307 13,855 3.3
Accrued interest receivable 4,804 4,606 4.3
Goodwill 15,954 15,954 -
Other intangible assets,
net 5,406 5,921 (8.7)
Other real estate and other
assets owned, net 2,572 148 1,637.8
Other assets 22,462 8,199 174.0
------ -----
Total assets $1,156,516 $1,044,641 10.7
========== ==========
LIABILITIES
Noninterest-bearing
deposits $122,492 $102,584 19.4
Interest-bearing deposits 868,445 742,787 16.9
------- -------
Total deposits 990,937 845,371 17.2
Short-term borrowings 20,404 52,969 (61.5)
Long-term debt 1,429 7,947 (82.0)
Accrued interest payable
and other liabilities 15,936 10,969 45.3
------ ------
Total liabilities 1,028,706 917,256 12.2
--------- -------
STOCKHOLDERS' EQUITY
Common stock, par value
$0.01; authorized
35,000,000 shares 84 84 -
Warrants 1,543 - -
Additional paid in capital 29,872 29,768 0.3
Retained earnings 96,151 96,140 -
Accumulated other
comprehensive income 160 1,393 (88.5)
--- -----
Total stockholders' equity 127,810 127,385 0.3
------- -------
Total liabilities and
stockholders' equity $1,156,516 $1,044,641 10.7
========== ==========
Period-end common shares
outstanding 8,419 8,405 0.2
Book value per common share $15.18 $15.16 0.1
Shore Bancshares, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
For the Three Months
Ended
Dec. 31,
--------
2009 2008 % Change
---- ---- --------
INTEREST INCOME
Interest and fees on loans $13,837 $14,166 (2.3)%
Interest and dividends on investment
securities:
Taxable 860 839 2.5
Tax-exempt 60 93 (35.5)
Interest on federal funds sold 23 24 (4.2)
Interest on deposits with other banks - 4 (100.0)
- -
Total interest income 14,780 15,126 (2.3)
------ ------
INTEREST EXPENSE
Interest on deposits 3,924 4,582 (14.4)
Interest on short-term borrowings 31 121 (74.4)
Interest on long-term debt 19 75 (74.7)
-- --
Total interest expense 3,974 4,778 (16.8)
----- -----
NET INTEREST INCOME 10,806 10,348 4.4
Provision for credit losses 3,668 1,385 164.8
----- -----
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 7,138 8,963 (20.4)
----- -----
NONINTEREST INCOME
Service charges on deposit accounts 866 889 (2.6)
Investment securities gains (losses) - (15) 100.0
Other than temporary impairment of
securities - - -
Insurance agency commissions 2,159 2,495 (13.5)
Other noninterest income 1,100 1,039 5.9
----- -----
Total noninterest
income 4,125 4,408 (6.4)
----- -----
NONINTEREST EXPENSE
Salaries and employee benefits 5,264 5,776 (8.9)
Occupancy expense 572 585 (2.2)
Furniture and equipment expense 268 291 (7.9)
Data processing 598 595 0.5
Directors' fees 84 132 (36.4)
Amortization of intangible assets 129 129 -
Other noninterest expenses 2,460 2,113 16.4
----- -----
Total noninterest
expense 9,375 9,621 (2.6)
----- -----
Income before income taxes 1,888 3,750 (49.7)
Income tax expense 672 1,489 (54.9)
--- -----
NET INCOME 1,216 2,261 (46.2)
Preferred stock dividends and discount
accretion - - -
- -
Net income available to common shareholders $1,216 $2,261 (46.2)
====== ======
Weighted average shares outstanding - basic 8,419 8,405 0.2
Weighted average shares outstanding -
diluted 8,421 8,410 0.1
Basic net income per share $0.14 $0.27 (48.1)
Basic net income per common share 0.14 0.27 (48.1)
Diluted net income per share 0.14 0.27 (48.1)
Diluted net income per common share 0.14 0.27 (48.1)
Dividends paid per common share 0.16 0.16 -
For the Twelve Months Ended
Dec. 31,
--------
2009 2008 % Change
---- ---- --------
INTEREST INCOME
Interest and fees on loans $55,209 $56,866 (2.9)%
Interest and dividends on investment
securities:
Taxable 3,184 3,788 (15.9)
Tax-exempt 301 420 (28.3)
Interest on federal funds sold 84 308 (72.7)
Interest on deposits with other banks 11 92 (88.0)
-- --
Total interest income 58,789 61,474 (4.4)
------ ------
INTEREST EXPENSE
Interest on deposits 17,018 19,877 (14.4)
Interest on short-term borrowings 127 1,147 (88.9)
Interest on long-term debt 266 531 (49.9)
--- ---
Total interest expense 17,411 21,555 (19.2)
------ ------
NET INTEREST INCOME 41,378 39,919 3.7
Provision for credit losses 8,986 3,337 169.3
----- -----
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 32,392 36,582 (11.5)
------ ------
NONINTEREST INCOME
Service charges on deposit accounts 3,424 3,600 (4.9)
Investment securities gains (losses) 49 (15) 426.7
Other than temporary impairment of
securities - (371) 100.0
Insurance agency commissions 11,131 12,090 (7.9)
Other noninterest income 4,937 5,046 (2.2)
----- -----
Total noninterest
income 19,541 20,350 (4.0)
------ ------
NONINTEREST EXPENSE
Salaries and employee benefits 23,119 23,321 (0.9)
Occupancy expense 2,324 2,179 6.7
Furniture and equipment expense 1,183 1,185 (0.2)
Data processing 2,463 2,323 6.0
Directors' fees 478 558 (14.3)
Amortization of intangible assets 515 515 -
Other noninterest expenses 10,166 8,289 22.6
------ -----
Total noninterest
expense 40,248 38,370 4.9
------ ------
Income before income taxes 11,685 18,562 (37.0)
Income tax expense 4,412 7,092 (37.8)
----- -----
NET INCOME 7,273 11,470 (36.6)
Preferred stock dividends and discount
accretion 1,876 - -
----- -
Net income available to common shareholders $5,397 $11,470 (52.9)
====== =======
Weighted average shares outstanding - basic 8,414 8,400 0.2
Weighted average shares outstanding -
diluted 8,417 8,407 0.1
Basic net income per share $0.86 $1.37 (37.2)
Basic net income per common share 0.64 1.37 (53.3)
Diluted net income per share 0.86 1.37 (37.2)
Diluted net income per common share 0.64 1.37 (53.3)
Dividends paid per common share 0.64 0.64 -
Shore Bancshares, Inc.
Financial Highlights By Quarter
(Dollars in thousands, except per share data)
4th quarter 3rd quarter 2nd quarter
2009 2009 2009
(4Q 09) (3Q 09) (2Q 09)
------- ------- -------
PROFITABILITY FOR THE
PERIOD
Net interest income $10,806 $10,428 $10,086
Provision for credit losses 3,668 1,702 1,681
Noninterest income 4,125 4,719 5,347
Noninterest expense 9,375 10,297 10,693
Income before income taxes 1,888 3,148 3,059
Income tax expense 672 1,197 1,166
Net income 1,216 1,951 1,893
Preferred stock dividends
and discount accretion - - 1,539
--- --- -----
Net income available to
common shareholders $1,216 $1,951 $354
====== ====== ====
Return on average assets
(1) 0.41 % 0.66 % 0.13 %
Return on average equity
(1) 3.75 6.03 1.07
Net interest margin 3.90 3.79 3.85
Efficiency ratio -GAAP
based 62.79 67.98 69.29
PER SHARE DATA
Basic net income per share $0.14 $0.23 $0.23
Basic net income per common
share 0.14 0.23 0.04
Diluted net income per
share 0.14 0.23 0.22
Diluted net income per
common share 0.14 0.23 0.04
Dividends paid per common
share 0.16 0.16 0.16
Book value per common share
at period end 15.18 15.23 15.19
Tangible book value per
common share at period end 12.64 12.68 12.62
Market value at period end 14.50 16.73 17.94
Market range:
High 17.71 20.72 21.46
Low 13.52 16.64 15.18
AT PERIOD END
Loans $916,557 $918,601 $919,088
Securities 109,684 103,921 89,272
Assets 1,156,516 1,157,685 1,158,212
Deposits 990,937 992,196 981,334
Stockholders' equity 127,810 128,219 127,876
CAPITAL AND CREDIT QUALITY
RATIOS
Average equity to average
assets 11.01 % 11.01 % 11.84 %
Annualized net charge-offs
to average loans 1.51 0.76 0.71
Allowance for credit losses
to period-end loans 1.19 1.17 1.17
Nonperforming assets to
total loans+other real
estate owned 2.05 1.90 1.73
Nonperforming assets to
total assets 1.63 1.51 1.37
Nonperforming assets+Loans
90 days past due
and still accruing to total
loans+other real estate
owned 2.86 2.89 2.60
Nonperforming assets+Loans
90 days past due
and still accruing to total
assets 2.27 2.30 2.07
1st quarter 4th quarter
2009 2008
(1Q 09) (4Q 08)
------- -------
PROFITABILITY FOR THE
PERIOD
Net interest income $10,058 $10,348
Provision for credit
losses 1,935 1,385
Noninterest income 5,350 4,408
Noninterest expense 9,883 9,621
Income before income taxes 3,590 3,750
Income tax expense 1,377 1,489
Net income 2,213 2,261
Preferred stock dividends
and discount accretion 337
--- ---
Net income available to
common shareholders $1,876 $2,261
====== ======
Return on average assets
(1) 0.72 % 0.87 %
Return on average equity
(1) 5.05 7.11
Net interest margin 4.09 4.24
Efficiency ratio -GAAP
based 64.14 65.20
PER SHARE DATA
Basic net income per share $0.26 $0.27
Basic net income per
common share 0.22 0.27
Diluted net income per
share 0.26 0.27
Diluted net income per
common share 0.22 0.27
Dividends paid per common
share 0.16 0.16
Book value per common
share at period end 15.38 15.16
Tangible book value per
common share at period
end 12.79 12.55
Market value at period end 16.75 23.99
Market range:
High 24.43 25.97
Low 11.00 17.50
AT PERIOD END
Loans $908,118 $888,528
Securities 78,953 89,456
Assets 1,075,934 1,044,641
Deposits 873,089 845,371
Stockholders' equity 152,781 127,385
CAPITAL AND CREDIT QUALITY
RATIOS
Average equity to average
assets 14.23 % 12.22 %
Annualized net charge-
offs to average loans 0.25 0.31
Allowance for credit
losses to period-end
loans 1.18 1.05
Nonperforming assets to
total loans+other real
estate owned 1.00 0.93
Nonperforming assets to
total assets 0.85 0.79
Nonperforming assets+Loans
90 days past due
and still accruing to
total loans+other real
estate owned 1.87 1.09
Nonperforming assets+Loans
90 days past due
and still accruing to
total assets 1.58 0.92
4Q 09 4Q 09
compared to compared to
3Q 09 4Q 08
----- -----
PROFITABILITY FOR THE PERIOD
Net interest income 3.6 % 4.4 %
Provision for credit losses 115.5 164.8
Noninterest income (12.6) (6.4)
Noninterest expense (9.0) (2.6)
Income before income taxes (40.0) (49.7)
Income tax expense (43.9) (54.9)
Net income (37.7) (46.2)
Preferred stock dividends and discount
accretion - -
Net income available to common
shareholders (37.7) (46.2)
Return on average assets (1) (37.9)% (52.9)%
Return on average equity (1) (37.8) (47.3)
Net interest margin 2.9 (8.0)
Efficiency ratio - GAAP based (7.6) (3.7)
PER SHARE DATA
Basic net income per share (39.1)% (48.1)%
Basic net income per common share (39.1) (48.1)
Diluted net income per share (39.1) (48.1)
Diluted net income per common share (39.1) (48.1)
Dividends paid per common share - -
Book value per common share at period end (0.3) 0.1
Tangible book value per common share at
period end (0.3) 0.7
Market value at period end (13.3) (39.6)
Market range:
High (14.5) (31.8)
Low (18.8) (22.7)
AT PERIOD END
Loans (0.2)% 3.2 %
Securities 5.5 22.6
Assets (0.1) 10.7
Deposits (0.1) 17.2
Stockholders' equity (0.3) 0.3
(1) Calculation uses net income available to common shareholders.
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter
(In thousands, except per share data)
4Q 09 3Q 09 2Q 09
----- ----- -----
INTEREST INCOME
Interest and fees on loans $13,837 $14,001 $13,754
Interest and dividends on
investment securities:
Taxable 860 800 768
Tax-exempt 60 77 79
Interest on federal funds sold 23 31 23
Interest on deposits with other banks - 4 6
- - -
Total interest income 14,780 14,913 14,630
------ ------ ------
INTEREST EXPENSE
Interest on deposits 3,924 4,368 4,441
Interest on short-term borrowings 31 19 28
Interest on long-term debt 19 98 75
-- -- --
Total interest expense 3,974 4,485 4,544
----- ----- -----
NET INTEREST INCOME 10,806 10,428 10,086
Provision for credit losses 3,668 1,702 1,681
----- ----- -----
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 7,138 8,726 8,405
----- ----- -----
NONINTEREST INCOME
Service charges on deposit accounts 866 861 888
Investment securities gains (losses) - - -
Insurance agency commissions 2,159 2,744 2,893
Other noninterest income 1,100 1,114 1,566
----- ----- -----
Total noninterest
income 4,125 4,719 5,347
----- ----- -----
NONINTEREST EXPENSE
Salaries and employee benefits 5,264 5,976 5,959
Occupancy expense 572 616 587
Furniture and equipment expense 268 299 302
Data processing 598 675 580
Directors' fees 84 109 117
Amortization of intangible assets 129 128 129
Other noninterest expenses 2,460 2,494 3,019
----- ----- -----
Total noninterest
expense 9,375 10,297 10,693
----- ------ ------
Income before income taxes 1,888 3,148 3,059
Income tax expense 672 1,197 1,166
--- ----- -----
NET INCOME 1,216 1,951 1,893
Preferred stock dividends and discount
accretion - - 1,539
- - -----
Net income available to common
shareholders $1,216 $1,951 $354
====== ====== ====
Weighted average shares outstanding -
basic 8,419 8,419 8,413
Weighted average shares outstanding
- diluted 8,421 8,423 8,417
Basic net income per share $0.14 $0.23 $0.23
Basic net income per common share 0.14 0.23 0.04
Diluted net income per share 0.14 0.23 0.22
Diluted net income per common share 0.14 0.23 0.04
Dividends paid per common share 0.16 0.16 0.16
1Q 09 4Q 08
----- -----
INTEREST INCOME
Interest and fees on loans $13,617 $14,166
Interest and dividends on investment
securities:
Taxable 756 839
Tax-exempt 85 93
Interest on federal funds sold 7 24
Interest on deposits with other banks 1 4
- -
Total interest income 14,466 15,126
------ ------
INTEREST EXPENSE
Interest on deposits 4,285 4,582
Interest on short-term borrowings 49 121
Interest on long-term debt 74 75
-- --
Total interest expense 4,408 4,778
----- -----
NET INTEREST INCOME 10,058 10,348
Provision for credit losses 1,935 1,385
----- -----
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES 8,123 8,963
----- -----
NONINTEREST INCOME
Service charges on deposit accounts 809 889
Investment securities gains (losses) 49 (15)
Insurance agency commissions 3,335 2,495
Other noninterest income 1,157 1,039
----- -----
Total noninterest
income 5,350 4,408
----- -----
NONINTEREST EXPENSE
Salaries and employee benefits 5,920 5,776
Occupancy expense 549 585
Furniture and equipment expense 314 291
Data processing 610 595
Directors' fees 168 132
Amortization of intangible assets 129 129
Other noninterest expenses 2,193 2,113
----- -----
Total noninterest
expense 9,883 9,621
----- -----
Income before income taxes 3,590 3,750
Income tax expense 1,377 1,489
----- -----
NET INCOME 2,213 2,261
Preferred stock dividends and discount
accretion 337 -
--- -
Net income available to common shareholders $1,876 $2,261
====== ======
Weighted average shares outstanding - basic 8,405 8,405
Weighted average shares outstanding - diluted 8,408 8,410
Basic net income per share $0.26 $0.27
Basic net income per common share 0.22 0.27
Diluted net income per share 0.26 0.27
Diluted net income per common share 0.22 0.27
Dividends paid per common share 0.16 0.16
4Q 09 4Q 09
compared to compared to
3Q 09 4Q 08
----- -----
INTEREST INCOME
Int
