Shore Bancshares, Inc. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2015. The company reported net income of $2.163 million or $0.17 per diluted common share for the fourth quarter of 2015, compared to net income of $1.909 million or $0.15 per diluted common share for the third quarter of 2015, and net income of $1.226 million or $0.10 per diluted common share for the fourth quarter of 2014. When comparing the fourth quarter of 2015 to the fourth quarter of 2014, the improved results were driven by an increase in net interest income due to higher loan volume, resulting in a shift from lower to higher yielding assets coupled with a decrease in provision for credit losses and a decline in operating expenses. Net interest income was $9.3 million for the fourth quarter of 2015, compared to $9.0 million for the third quarter of 2015 and $8.6 million for the fourth quarter of 2014. The increase in net interest income for the fourth quarter of 2015 when compared to the third quarter of 2015 was the direct result of increased loan volume and lower rates paid on interest-bearing deposits. When comparing the fourth quarter of 2015 to the fourth quarter of 2014, significant loan growth resulted in an increase in average loans of $78.1 million. Income before income taxes was $3.506 million against $1.947 million a year ago. Return on average assets was 0.75% against 0.44% a year ago. Return on average equity was 5.85% against 3.48% a year ago. Return on average tangible equity was 6.49% against 3.91% a year ago. Book value per common share at period end was $11.64 against $11.13 per share a year ago. Net income, excluding net amortization of intangible assets was $2.183 million against $1.246 million a year ago.

The company reported net income of $7.108 million or $0.56 per diluted common share for fiscal year 2015, compared to net income of $5.051 million or $0.46 per diluted common share for fiscal year 2014. When comparing fiscal year 2015 to fiscal year 2014, improved earnings were due to an increase in net interest income of $1.5 million, a decline in provision for credit losses of $1.3 million, and the reduction of noninterest expenses of $2.0 million. These improvements were partially offset by a decrease in noninterest income of $1.4 million. Net interest income for 2015 was $35.5 million, an increase of $1.5 million, or 4.4%, when compared to 2014 due to an increase in average earning assets of $41.9 million. The increase in interest income was primarily due to higher average balances on loans and lower average balances and rates paid on time deposits. Although the yields on loans declined compared to 2014, the funding of loan growth with lower cost liabilities partially offset the decrease in yields on interest earning assets. The increase in the average balance of loans along with the decrease in rates on interest bearing deposits resulted in the net interest margin remaining unchanged at 3.43% for both 2015 and 2014. Income before income taxes was $11.516 million against $8.112 million a year ago. Return on average assets was 0.64% against 0.47% a year ago. Return on average equity was 4.93% against 4.04% a year ago. Return on average tangible equity was 5.49% against 4.68% a year ago. Net income, excluding net amortization of intangible assets was $7.189 million against $5.173 million a year ago.

Net charge-offs were $257,000 for the fourth quarter of 2015, $229,000 for the third quarter of 2015 and $1.6 million for the fourth quarter of 2014.