Easton-based Shore Bancshares showed an $8.2 million net gain in 2019, according to its year-end earnings report released Friday.
President and CEO Lloyd L. “Scott” Beatty, Jr. said the company had deposit growth of nearly 11% in 2019, which allowed the bank to reduce its alternative funding levels. The company increased its dividend by 31% and instituted a stock repurchase program through which it acquired 278,700 shares of common stock.
Shore Bancshares, Inc. reported income from continuing operations of $4.014 million or $0.32 per diluted common share for the fourth quarter of 2019, compared to income from continuing operations of $4.214 million or $0.33 per diluted common share for the third quarter of 2019, and income from continuing operations of $3.853 million or $0.30 per diluted common share for the fourth quarter of 2018, which excludes the results of operations and sale of its retail insurance business, Avon Dixon, LLC on Dec. 31, 2018, for net proceeds of $25.2 million and a net gain after tax of $8.2 million, or $0.65 per diluted common share.
The company reported income from continuing operations of $16.284 million or $1.28 per diluted common share for fiscal year 2019, compared to income from continuing operations of $15.763 million or $1.24 per diluted common share for fiscal year 2018, which excludes the results of operations and sale of Avon which totaled $9.234 million, or $0.72 per diluted common share.
Total assets were $1.559 billion at Dec. 31, 2019, a $76.2 million, or 5.1%, increase when compared to $1.483 billion at December 31, 2018. The increase was primarily due to total deposits increasing $129.0 million or 10.6%. The significant growth in deposits funded increases in loans of $53.3 million, or 4.5%, interest-bearing deposits with other banks of $25.6 million, or 50.2%, and other assets of $22.9 million, or 129.5%, which includes the purchase of approximately $26.5 million of bank owned life insurance during 2019. In addition, the increase in deposits allowed the Company to decrease its short-term borrowings by $59.6 million, or 98%.
Total deposits increased $129 million, or 10.6%, when compared to Dec. 31, 2018. The increase in total deposits primarily consisted of increases in interest-bearing checking deposits of $62.4 million, noninterest-bearing deposits of $26.2 million, time deposits greater than $100,000 of $29.7 million, savings and money market accounts of $24 million and other time deposits of $8.8 million, partially offset by a decrease in brokered deposits of $22.1 million.
Total stockholders’ equity increased $9.6 million, or 5.2%, when compared to the end of 2018. At December 31, 2019, the ratio of total equity to total assets was 12.37% and the ratio of total tangible equity to total tangible assets was 11.24%.