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Shore Bancshares Reports Third Quarter and Nine-Month Results

EASTON, Md., Oct. 18, 2018 /PRNewswire/ -- Shore Bancshares, Inc. (SHBI) reported net income of $4.454 million or $0.35 per diluted common share for the third quarter of 2018, compared to net income of $4.391 million or $0.34 per diluted common share for the second quarter of 2018, and net income of $3.412 million or $0.27 per diluted common share for the third quarter of 2017.  The Company reported net income of $12.903 million or $1.01 per diluted common share for the first nine months of 2018, compared to net income of $8.564 million or $0.68 per diluted common share for the first nine months of 2017.

Shore Bancshares Logo (PRNewsfoto/Shore Bancshares)

When comparing the third quarter of 2018 to the second quarter of 2018, the primary reasons for the improved results were increases in net interest income of $314 thousand, noninterest income of $170 thousand and a reduction in provision for credit losses of $111 thousand.  These improvements to income were partially offset by an increase in noninterest expenses of $458 thousand.  When comparing the third quarter of 2018 to the third quarter of 2017, improved results were due to increases in net interest income of $621 thousand, noninterest income of $285 thousand and a reduced corporate income tax rate from 35% to 21%, respectively, offset by an increase in noninterest expenses of $566 thousand.  When comparing the first nine months of 2018 to the first nine months of 2017, improved earnings were due to increases in net interest income of $4.8 million, noninterest income of $768 thousand, a reduction in provision for credit losses of $532 thousand and a lower corporate income tax rate.  Noninterest expenses increased $3.0 million when comparing the first nine months of 2018 to the first nine months of 2017, primarily due to operating four additional branches for the entire nine months of 2018 compared to only four months in 2017.

"We are pleased to report improved earnings for the quarter as we continue to experience strong loan demand and growth in our core deposits," said Lloyd L. "Scott" Beatty, Jr., President and Chief Executive Officer.  "Loans increased $23.7 million, while deposits increased $6.7 million when comparing the third and second quarter of 2018.  We remain diligent in our efforts to be a major participant in all lending and saving activities in the states of Maryland and Delaware as well as the Eastern Shore of Virginia."  

Balance Sheet Review
Total assets were $1.474 billion at September 30, 2018, a $79.0 million, or 5.7%, increase when compared to $1.394 billion at the end of 2017.  The primary reason for the increase was the addition of $87.0 million in loans, which were funded by a decrease in investment securities available for sale of $29.3 million, and an increase in short-term borrowings of $92.3 million.

Total deposits at September 30, 2018 decreased $20.9 million, or 1.7%, when compared to December 31, 2017.  The decrease in deposits was spread among all interest-bearing deposit categories with the exception of brokered deposits which increased $23.5 million in 2018.  In addition, noninterest-bearing deposits have increased $3.4 million in 2018 helping offset the decrease in interest-bearing deposits.  The decline in deposits was primarily due to seasonal shifts in municipal deposits coupled with deployment of capital by many small business customers.

Total stockholders' equity increased $7.7 million, or 4.7%, when compared to the end of 2017.  At September 30, 2018, the ratio of total equity to total assets was 11.63% and the ratio of total tangible equity to total tangible assets was 9.69%, lower than the 11.75% and slightly higher than the 9.65%, respectively, at December 31, 2017.

Total assets at September 30, 2018 increased $97.4 million, or 7.1%, when compared to total assets at September 30, 2017.  The primary reason for the increase was the growth in loans of $133.3 million, or 12.7% which was partially funded by the decrease in investment securities available for sale of $45.7 million.  Total deposits decreased $24.4 million, or 2.0%, when compared to September 30, 2017, which included a reduction in interest-bearing deposits of $30.1 million, partially offset by an increase in noninterest-bearing deposits of $5.7 million.  Total stockholders' equity increased $8.8 million, or 5.4%, when compared to September 30, 2017. 

Review of Quarterly Financial Results
Net interest income was $12.9 million for the third quarter of 2018, compared to $12.6 million for the second quarter of 2018 and $12.3 million for the third quarter of 2017.  The increase in net interest income when compared to the second quarter of 2018 was primarily due to an increase in average loans of $33.2 million contributing $574 thousand in interest and fees on loans, partially offset by an increase in interest expense on interest-bearing deposits of $246 thousand.  The increase in net interest income for the third quarter of 2018 when compared to the third quarter of 2017 was primarily due to an increase in average loans of $140.0 million resulting in $1.4 million in additional interest and fees on loans, partially offset by an increase in interest on short-term borrowings of $459 thousand and higher rates paid on interest-bearing deposits of $219 thousand.  The Company's net interest margin decreased to 3.76% from 3.79% in both the second quarter of 2018 and third quarter of 2017.  The decline in net interest margin from the second quarter of 2018 and the third quarter of 2017 was the direct result of increased short-term borrowings and rising rates paid on interest-bearing deposits which allowed the Bank to remain competitive for core deposits and help fund loan growth during the period.

The provision for credit losses was $307 thousand for the three months ended September 30, 2018.  The comparable amounts were $418 thousand and $345 thousand for the three months ended June 30, 2018 and September 30, 2017, respectively.  Net charge-offs were $100 thousand for the third quarter of 2018, $84 thousand for the second quarter of 2018 and $182 thousand for the third quarter of 2017.  The ratio of annualized net charge-offs to average loans was 0.03% for the third and second quarters of 2018 and 0.07% for the third quarter of 2017.  The ratio of the allowance for credit losses to period-end loans was 0.87% at September 30, 2018 and June 30, 2018 and 0.89% at September 30, 2017. 

At September 30, 2018, nonperforming assets were $8.9 million, an increase of $557 thousand, or 6.7%, when compared to June 30, 2018.  Nonaccrual loans increased $605 thousand, or 9.0%, while accruing TDRs decreased $687 thousand, or 7.1%.  When comparing September 30, 2018 to September 30, 2017, nonperforming assets increased $780 thousand, or 9.6%, and accruing TDRs decreased $4.6 million, or 33.8%.  The ratio of nonperforming assets to total assets was 0.60%, 0.57% and 0.59% at September 30, 2018, June 30, 2018 and September 30, 2017, respectively.  In addition, the ratio of accruing TDRs to total assets at September 30, 2018 was 0.61%, compared to 0.66% at June 30, 2018 and 0.98% at September 30, 2017.

Total noninterest income for the third quarter of 2018 increased $170 thousand, or 3.7%, when compared to the second quarter of 2018 and increased $285 thousand, or 6.4%, when compared to the third quarter of 2017.  The increase from the second quarter of 2018 was primarily due to increases in loan fee income, fees on bank services and service charges on deposit accounts.  The increase when compared to the third quarter of 2017 was due to increased loan servicing and fee income and higher insurance agency commissions. 

Total noninterest expense for the third quarter of 2018 increased $458 thousand, or 4.2%, when compared to the second quarter of 2018 and increased $566 thousand, or 5.3%, when compared to the third quarter of 2017.  The increase in noninterest expenses from the second quarter of 2018 was primarily due to increased salary and wages due to an additional working day in the quarter, increased data processing fees and a write-down on an OREO property of $128 thousand.  The increase in noninterest expense for the third quarter of 2018 compared to the third quarter of 2017 was primarily due to increases in salary and wages and employee benefits resulting from pay increases, the filling of vacant positions throughout the Company and additional amortization of intangibles acquired in the Northwest branch acquisition in 2017.

Review of Nine-Month Financial Results
Net interest income for the first nine months of 2018 was $37.9 million, an increase of $4.7 million, or 14.3% when compared to the first nine months of 2017.  The increase was primarily due an increase in average loans of approximately $184.2 million and higher yields earned on taxable investment securities. This contributed to an increase in the yield on total earning assets of 17 bps over the first nine months of 2017. Partially offsetting the significant improvement on total earning assets for the first nine months of 2018 were increases in the average balance on short-term borrowings of $75.0 million and interest-bearing deposits of $47.4 million. Despite the increase in the cost of total interest-bearing liabilities of 16 bps, the net interest margin improved to 3.79% for the first nine months of 2018 compared to 3.75% for the first nine months of 2017.      

The provisions for credit losses for the nine months ended September 30, 2018 and 2017 were $1.2 million and $1.7 million, respectively, while net charge-offs were $667 thousand and $1.2 million, respectively.  The ratio of year-to-date annualized net charge-offs to average loans was 0.08% for the first nine months of 2018 and 0.16% for the first nine months of 2017.

Total noninterest income for the nine months ended September 30, 2018 increased $768 thousand, or 5.7%, when compared to the same period in 2017, primarily due to other noninterest income of $445 thousand which included higher fees on bank services of $326 thousand and higher loan fee income of $69 thousand.  In addition, service charges on deposit accounts increased $177 thousand while both Trust and Insurance divisions had positive variances.

Total noninterest expense for the nine months ended September 30, 2018 increased $3.0 million, or 9.8%, when compared to the same period in 2017.  The increase was primarily due to the cost of operating four additional branches which caused increases in almost all noninterest expense line items, offset by lower data processing fees, other real estate owned expenses and legal and professional fees.

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 Shore United Bank; one retail insurance producer firm, The Avon-Dixon Agency, LLC, with two specialty lines, Elliott Wilson Insurance (Trucking) and Jack Martin Associates (Marine); and an insurance premium finance company, Mubell Finance, LLC.  Shore Bancshares Inc. engages in trust and wealth management services through Wye Financial & Trust, 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".

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.

 

Shore Bancshares, Inc.













Financial Highlights













(Dollars in thousands, except per share data)








































   For the Three Months Ended


For the Nine Months Ended



September 30, 


September 30, 



2018


2017

 Change


2018


2017

 Change















     Net interest income

$          12,947


$          12,326


5.0

%

$       37,909


$       33,159


14.3

%

     Provision for credit losses

307


345


(11.0)


1,214


1,746


(30.5)


     Noninterest income

4,710


4,425


6.4


14,179


13,411


5.7


     Noninterest expense

11,286


10,720


5.3


33,576


30,570


9.8


     Income before income taxes

6,064


5,686


6.6


17,298


14,254


21.4


     Income tax expense 

1,610


2,274


(29.2)


4,395


5,690


(22.8)


     Net income 

$            4,454


$             3,412


30.5


$       12,903


$         8,564


50.7




























     Return on average assets 

1.21

%

0.98

%

23

bp

1.21

%

0.91

%

30

bp

     Return on average equity 

10.38


8.48


190


10.31


7.23


308


     Return on average tangible equity (1)

13.36


10.84


252


13.24


8.36


488


     Net interest margin

3.76


3.79


(3)


3.79


3.75


4


     Efficiency ratio - GAAP 

63.92


64.00


(8)


64.46


65.64


(118)


     Efficiency ratio - Non-GAAP (1)

62.23


63.11


(88)


63.15


64.96


(181)




























PER SHARE DATA













     Basic net income per common share

$              0.35


$               0.27


29.6

%

$           1.01


$           0.68


48.5

%

     Diluted net income per common share

0.35


0.27


29.6


1.01


0.68


48.5


     Dividends paid per common share

0.08


0.05


60.0


0.23


0.15


53.3


     Book value per common share at period end

13.45


12.82


4.9








     Tangible book value per common share at period end (1)

10.96


10.24


7.0








     Market value at period end

17.82


16.65


7.0








     Market range:













       High

19.84


17.34


14.4


20.09


17.92


12.1


       Low

16.63


15.97


4.1


16.28


14.64


11.2




























AVERAGE BALANCE SHEET DATA













     Loans

$    1,174,513


$     1,034,553


13.5

%

$ 1,140,925


$     956,694


19.3

%

     Investment securities

178,572


218,675


(18.3)


186,936


198,499


(5.8)


     Earning assets

1,370,573


1,295,432


5.8


1,341,403


1,189,699


12.8


     Assets

1,457,074


1,377,975


5.7


1,426,504


1,257,152


13.5


     Deposits

1,192,845


1,210,894


(1.5)


1,174,505


1,089,704


7.8


     Stockholders' equity

170,299


159,551


6.7


167,288


158,342


5.6




























CREDIT QUALITY DATA 













     Net charge-offs

$               100


$                182


(45.1)

%

$            667


$         1,177


(43.3)

%














     Nonaccrual loans 

$            7,362


$             6,289


17.1








     Loans 90 days past due and still accruing

3


5


(40.0)








     Other real estate owned

1,518


1,809


(16.1)








     Total nonperforming assets 

8,883


8,103


9.6








     Accruing troubled debt restructurings (TDRs) 

8,933


13,493


(33.8)








     Total nonperforming assets and accruing TDRs 

$          17,816


$          21,596


(17.5)


































CAPITAL AND CREDIT QUALITY RATIOS













     Period-end equity to assets

11.63

%

11.82

%

(19)

bp







     Period-end tangible equity to tangible assets (1)

9.69


9.67


2





















     Annualized net charge-offs to average loans

0.03


0.07


(4)


0.08

%

0.16

%

(8)

bp














     Allowance for credit losses as a percent of:













     Period-end loans

0.87


0.89


(2)








     Nonaccrual loans 

140.29


147.80


(751)








     Nonperforming assets 

116.27


114.71


156








     Accruing TDRs 

115.62


68.89


4,673








     Nonperforming assets and accruing TDRs 

57.97


43.04


1,493





















     As a percent of total loans:













     Nonaccrual loans 

0.62


0.60


2








     Accruing TDRs  

0.76


1.29


(53)








     Nonaccrual loans and accruing TDRs 

1.38


1.89


(51)





















     As a percent of total loans+other real estate owned:













     Nonperforming assets

0.75


0.77


(2)








     Nonperforming assets and accruing TDRs 

1.51


2.06


(55)





















     As a percent of total assets:













     Nonaccrual loans 

0.50


0.46


4








     Nonperforming assets 

0.60


0.59


1








     Accruing TDRs 

0.61


0.98


(37)








     Nonperforming assets and accruing TDRs 

1.21


1.57


(36)





















(1)  See the reconciliation table on page 12 of 12.













 

 

Shore Bancshares, Inc.











Consolidated Balance Sheets











(In thousands, except per share data)








































September 30, 2018


September 30, 2018



September 30, 


December 31, 


September 30, 


compared to


compared to



2018


2017


2017


 December 31, 2017


September 30, 2017


ASSETS











    Cash and due from banks

$              18,859


$              21,534


$              22,315


(12.4)

%

(15.5)

%

    Interest-bearing deposits with other banks

29,918


10,286


21,601


190.9


38.5


  Cash and cash equivalents

48,777


31,820


43,916


53.3


11.1













    Investment securities available for sale (at fair value)

167,675


196,955


213,390


(14.9)


(21.4)


    Investment securities held to maturity 

6,037


6,247


6,241


(3.4)


(3.3)


    Equity securities, at fair value

649


-


-


-


-













    Loans

1,180,557


1,093,514


1,047,247


8.0


12.7


    Less: allowance for credit losses

(10,328)


(9,781)


(9,295)


5.6


(11.1)


    Loans, net

1,170,229


1,083,733


1,037,952


8.0


12.7













    Premises and equipment, net

23,252


23,054


23,124


0.9


0.6


    Goodwill

27,618


27,618


27,909


-


(1.0)


    Other intangible assets, net

4,088


4,719


4,831


(13.4)


(15.4)


    Other real estate owned, net

1,518


1,794


1,809


(15.4)


(16.1)


    Other assets

23,700


17,920


16,955


32.3


39.8













                         Total assets

$         1,473,543


$         1,393,860


$         1,376,127


5.7


7.1













LIABILITIES











    Noninterest-bearing deposits

$            331,766


$            328,322


$            326,020


1.0


1.8


    Interest-bearing deposits

850,070


874,459


880,175


(2.8)


(3.4)


                Total deposits

1,181,836


1,202,781


1,206,195


(1.7)


(2.0)













    Short-term borrowings

114,043


21,734


1,469


424.7


7,663.3


    Accrued expenses and other liabilities

6,245


5,609


5,815


11.3


7.4


                          Total liabilities

1,302,124


1,230,124


1,213,479


5.9


7.3













STOCKHOLDERS' EQUITY











    Common stock, par value $0.01; authorized  











       35,000,000 shares

127


127


127


-


-


    Additional paid in capital

65,730


65,256


64,949


0.7


1.2


    Retained earnings

109,628


99,662


97,626


10.0


12.3


    Accumulated other comprehensive (loss) 

(4,066)


(1,309)


(54)


(210.6)


(7,429.6)


                          Total stockholders' equity

171,419


163,736


162,648


4.7


5.4













                          Total liabilities and stockholders' equity

$         1,473,543


$         1,393,860


$         1,376,127


5.7


7.1













Period-end common shares outstanding

12,748


12,688


12,687


0.5


0.5


Book value per common share

$                 13.45


$                 12.90


$                 12.82


4.3


4.9


 

 

Shore Bancshares, Inc.











Consolidated Statements of Income











(In thousands, except per share data)


































For the Three Months Ended


For the Nine Months Ended



September 30, 


September 30, 



2018


2017

% Change


2018


2017

% Change


INTEREST INCOME











    Interest and fees on loans 

$ 13,205


$  11,771

12.2

%

$ 37,880


$ 31,762

19.3

%

    Interest on investment securities:











        Taxable

947


1,035

(8.5)


2,950


2,799

5.4


        Tax-exempt 

-


-

-


-


3

(100.0)


    Interest on deposits with other banks

84


131

(35.9)


183


269

(32.0)


                   Total interest income

14,236


12,937

10.0


41,013


34,833

17.7













INTEREST EXPENSE











    Interest on deposits

826


607

36.1


1,954


1,656

18.0


    Interest on short-term borrowings

463


4

11,475.0


1,150


18

6,288.9


                   Total interest expense

1,289


611

111.0


3,104


1,674

85.4













NET INTEREST INCOME

12,947


12,326

5.0


37,909


33,159

14.3


Provision for credit losses

307


345

(11.0)


1,214


1,746

(30.5)













NET INTEREST INCOME AFTER PROVISION 











  FOR CREDIT LOSSES

12,640


11,981

5.5


36,695


31,413

16.8













NONINTEREST INCOME











    Service charges on deposit accounts

982


945

3.9


2,834


2,657

6.7


    Trust and investment fee income

383


389

(1.5)


1,197


1,122

6.7


    Gains on sales and calls of investment securities

-


5

(100.0)


-


5

(100.0)


    Insurance agency commissions

2,170


2,088

3.9


7,015


6,939

1.1


    Other noninterest income

1,175


998

17.7


3,133


2,688

16.6


                      Total noninterest income

4,710


4,425

6.4


14,179


13,411

5.7













NONINTEREST EXPENSE











    Salaries and wages

5,516


5,203

6.0


16,372


14,508

12.8


    Employee benefits

1,271


1,197

6.2


4,157


3,564

16.6


    Occupancy expense 

767


696

10.2


2,303


1,950

18.1


    Furniture and equipment expense

251


286

(12.2)


813


803

1.2


    Data processing

963


922

4.4


2,580


2,809

(8.2)


    Directors' fees

145


99

46.5


411


281

46.3


    Amortization of intangible assets

281


115

144.3


631


203

210.8


    FDIC insurance premium expense

193


189

2.1


612


398

53.8


    Other real estate owned expenses, net

166


195

(14.9)


125


358

(65.1)


    Legal and professional fees

463


493

(6.1)


1,432


1,855

(22.8)


    Other noninterest expenses

1,270


1,325

(4.2)


4,140


3,841

7.8


                      Total noninterest expense

11,286


10,720

5.3


33,576


30,570

9.8













Income before income taxes

6,064


5,686

6.6


17,298


14,254

21.4


Income tax expense 

1,610


2,274

(29.2)


4,395


5,690

(22.8)













NET INCOME 

$   4,454


$    3,412

30.5


$ 12,903


$   8,564

50.7













Weighted average shares outstanding - basic

12,748


12,687

0.5


12,736


12,679

0.4


Weighted average shares outstanding - diluted

12,761


12,718

0.3


12,749


12,736

0.1













Basic net income per common share

$     0.35


$       0.27

29.6


$     1.01


$     0.68

48.5


Diluted net income per common share

0.35


0.27

29.6


1.01


0.67

50.7


Dividends paid per common share

0.08


0.05

60.0


0.23


0.15

53.3


 

 

Shore Bancshares, Inc.
















Consolidated Average Balance Sheets

















(Dollars in thousands)




















































For the Three Months Ended


For the Nine Months Ended



September 30, 


September 30, 



2018


2017


2018


2017



Average 


Yield/


Average 


Yield/


Average 


Yield/


Average 


Yield/



balance


rate 


balance


rate 


balance


rate


balance


rate


Earning assets

















  Loans (1), (2), (3)

$ 1,174,513


4.47

%

$ 1,034,553


4.54

%

$ 1,140,925


4.45

%

$    956,694


4.46

%

  Investment securities (1)

















   Taxable

178,572


2.12


218,675


1.89


186,936


2.10


198,383


1.88


   Tax-exempt

-


-


-


-


-


-


116


5.41


  Interest-bearing deposits

17,488


1.91


42,204


1.23


13,542


1.80


34,506


1.04


    Total earning assets

1,370,573


4.13

%

1,295,432


3.98

%

1,341,403


4.10

%

1,189,699


3.93

%

Cash and due from banks

17,790




16,232




17,031




14,988




Other assets

79,065




75,611




78,243




61,537




Allowance for credit losses

(10,354)




(9,300)




(10,173)




(9,072)




Total assets

$ 1,457,074




$ 1,377,975




$ 1,426,504




$ 1,257,152






































Interest-bearing liabilities

















  Demand deposits

$    221,905


0.32

%

$    224,180


0.23

%

$    214,317


0.26

%

$    206,033


0.18

%

  Money market and savings deposits 

373,357


0.14


378,711


0.12


378,404


0.13


325,660


0.12


  Brokered deposits

25,507


2.01


-


-


12,157


2.09


-


-


  Certificates of deposit $100,000 or more

97,563


0.69


123,538


0.50


98,772


0.58


121,508


0.51


  Other time deposits

145,130


0.57


164,459


0.50


148,107


0.50


151,179


0.54


    Interest-bearing deposits

863,462


0.36


890,888


0.27


851,757


0.30


804,380


0.28


  Short-term borrowings

87,925


2.09


2,274


0.62


78,945


1.95


3,997


0.59


    Total interest-bearing liabilities

951,387


0.52

%

893,162


0.27

%

930,702


0.44

%

808,377


0.28

%

Noninterest-bearing deposits

329,383




320,006




322,748




285,324




Accrued expenses and other liabilities

6,005




5,256




5,766




5,109




Stockholders' equity

170,299




159,551




167,288




158,342




Total liabilities and stockholders' equity

$ 1,457,074




$ 1,377,975




$ 1,426,504




$ 1,257,152





















Net interest spread



3.61

%



3.71

%



3.66

%



3.65

%

Net interest margin



3.76

%



3.79

%



3.79

%



3.75

%


















(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, 

      for the third quarter of 2018 and the year to date period in 2018 and 35% for all quarters during 2017, exclusive of the alternative minimum tax rate

      and and 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.

 

 

Shore Bancshares, Inc.















Financial Highlights By Quarter















(Dollars in thousands, except per share data)














































3rd Quarter


2nd Quarter


1st Quarter


4th Quarter


3rd Quarter


Q3 2018


Q3 2018



2018


2018


2018


2017


2017


compared to


compared to



Q3 2018


Q2 2018


Q1 2018


Q4 2017


Q3 2017


Q2 2018


Q3 2017


PROFITABILITY FOR THE PERIOD















     Taxable-equivalent net interest income

$      12,975


$      12,661


$      12,357


$      12,430


$      12,384


2.5

%

4.8

%

     Less:  Taxable-equivalent adjustment

28


28


28


61


58


-


(51.7)


     Net interest income

12,947


12,633


12,329


12,369


12,326


2.5


5.0


     Provision for credit losses

307


418


489


545


345


(26.6)


(11.0)


     Noninterest income

4,710


4,540


4,929


4,339


4,425


3.7


6.4


     Noninterest expense

11,286


10,828


11,462


10,632


10,720


4.2


5.3


     Income before income taxes

6,064


5,927


5,307


5,531


5,686


2.3


6.6


     Income tax expense 

1,610


1,536


1,249


2,833


2,274


4.8


(29.2)


     Net income

$         4,454


$         4,391


$         4,058


$         2,698


$         3,412


1.4


30.5
































     Return on average assets 

1.21

%

1.24

%

1.18

%

0.78

%

0.98

%

(3)

bp

23

bp

     Return on average equity 

10.38


10.58


9.97


6.53


8.48


(20)


190


     Return on average tangible equity (1)

13.36


13.65


12.70


8.36


10.84


(29)


254


     Net interest margin

3.76


3.79


3.83


3.81


3.79


(3)


(3)


     Efficiency ratio - GAAP 

63.92


63.05


66.42


63.63


64.00


87


(8)


     Efficiency ratio - Non-GAAP (1)

62.23


61.56


65.67


62.73


63.11


67


(88)
































PER SHARE DATA















     Basic net income per common share

$           0.35


$           0.34


$           0.32


$           0.21


$           0.27


2.9

%

29.6

%

     Diluted net income per common share

0.35


0.34


0.32


0.21


0.27


2.9


29.6


     Dividends paid per common share

0.08


0.08


0.07


0.07


0.05


-


60.0


     Book value per common share at period end

13.45


13.19


12.95


12.90


12.82


2.0


4.9


     Tangible book value per common share at period end (1)

10.96


10.68


10.42


10.36


10.24


2.6


7.0


     Market value at period end

17.82


19.02


18.86


16.70


16.65


(6.3)


7.0


     Market range:















        High

19.84


20.09


19.80


18.49


17.34


(1.2)


14.4


        Low

16.63


17.92


16.28


15.74


15.97


(7.2)


...