Shore Bancshares, Inc. announced consolidated earnings results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported net income of $1.175 million or $0.14 per basic and diluted common share compared to a net loss of $5.074 million or $0.60 per basic and diluted common share a year ago. Net interest income was $8.6 million for the fourth quarter of 2013, compared to $8.4 million for the fourth quarter of 2012. The decrease in net interest income when compared to the third quarter of 2013 was due to a greater decline in interest income than the decline in interest expense. The decrease in interest income was primarily due to a decline in average loan balances while the decrease in interest expense was primarily due to lower average balances of and rates paid on time deposits. The higher net interest income for the fourth quarter of 2013 when compared to the fourth quarter of 2012 was due to a greater decline in interest expense than the decline in interest income. Income before income taxes was $1.843 million against loss before income taxes of $8.348 million a year ago. Return on average assets was 0.44% against negative return on assets of 1.71% a year ago. Return on average equity was 4.50% against negative return on average equity of 17.15% a year ago. Return on average tangible equity was 5.53% against negative return on tangible equity of 19.73% a year ago. Tangible book value per common share at December 31, 2013 was $10.31 against $11.56 a year ago. Book value per common share at period end was $12.19 compared to $13.48 a year ago.

For 2013, the company's net interest income was $34.9 million, compared to $35.339 million a decrease of $0.463 million, or 1.3%, when compared to 2012 due to a greater decline in interest income than the decline in interest expense. The decrease in interest income was primarily due to lower average balances of and yields earned on loans while the decrease in interest expense was primarily due to lower balances of and rates paid on money market and time deposits. Loss before income taxes was $16.135 million against $16.203 million a year ago. Negative return on average assets was 0.89% against 0.82% a year ago. Negative return on average equity was 8.64% against of 8.07% a year ago. Negative return on average tangible equity was 9.92% against negative return on average tangible equity of 9.14% a year ago. Tangible book value per common share at December 31, 2013 was $1.5 against negative tangible book value per share of $10.8 a year ago. Net loss was $9.634 million or $1.14 per basic and diluted share compared to $9.638 million or $1.14 per basic and diluted share a year ago. Book value per common share at period end was $1.1 compared to negative book value per share of $9.6 a year ago.

Net charge-offs were $1.1 million for the fourth quarter of 2013, $26.9 million for the third quarter of 2013 ($19.6 million related to the Asset Sale) and $6.6 million for the fourth quarter of 2012. The charge offs in all three quarters were mainly real estate related loans.