| Maryland | | | 6021 | | | 52-1974638 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code No.) | | | (I.R.S. Employer Identification No.) | |
| | | | 18 E. Dover Street Easton, Maryland 21601 (410) 763-7800 | | | | |
| Kevin Houlihan, Esq. William Levay, Esq. Holland & Knight LLP 800 17th Street, NW, Suite 1100 Washington, DC 20006 Telephone: (202) 955-3000 | | | James M. Burke President and Chief Executive Officer The Community Financial Corporation 3035 Leonardtown Road, Waldorf, Maryland 20601 Telephone: (301) 645-5601 | | | Gary R. Bronstein, Esq. Edward G. Olifer, Esq. Kilpatrick Townsend & Stockton LLP 607 14th Street, NW, Suite 900 Washington, D.C. 20005 Telephone: (202) 508-5800 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☐ | |
| | | |
| Sincerely, | | | | |
| | | | ||
| Lloyd L. “Scott” Beatty, Jr. President and Chief Executive Officer Shore Bancshares, Inc. | | | James M. Burke President and Chief Executive Officer The Community Financial Corporation | |
| Shore Bancshares, Inc. | | | Alliance Advisors | |
| 18 E. Dover St. | | | 200 Broadacres Drive | |
| Easton, Maryland 21601 | | | 3rd Floor | |
| (410) 763-7800 | | | Bloomfield, NJ 07003 | |
| Attention: Investor Relations | | | Toll-Free: (855) 742-8276 | |
| | | | E-mail: SHBI@allianceadvisors.com | |
| The Community Financial Corporation | | | Alliance Advisors | |
| 3035 Leonardtown Road | | | 200 Broadacres Drive | |
| Waldorf, Maryland 20601 | | | 3rd Floor | |
| (301) 645-5601 | | | Bloomfield, NJ 07003 | |
| Attention: Investor Relations | | | Toll-Free: (866) 584-0578 | |
| | | | E-mail: TCFC@allianceadvisors.com | |
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| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | |
| | SHBI Common Stock | | TCFC Common Stock | | Equivalent Market Value Per Share of TCFC Common Stock | | | SHBI Common Stock | | TCFC Common Stock | | Equivalent Market Value Per Share of TCFC Common Stock | | ||||||||||||||||||||||||
At December 13, 2022 | | | $ | 19.20 | | | | $ | 39.66 | | | | $ | 44.71 | | | | | $ | 19.20 | | | | $ | 39.66 | | | | $ | 44.71 | | | ||||||
At [•], 2023 | | | $ | [•] | | | | $ | [•] | | | | $ | [•] | | | ||||||||||||||||||||||
At May 2, 2023 | | | $ | 11.69 | | | | $ | 26.82 | | | | $ | 27.22 | | |
| Mid Penn Bancorp, Inc. | | | Citizens & Northern Corporation | |
| The First of Long Island Corporation | | | Orange County Bancorp, Inc. | |
| Arrow Financial Corporation | | | Citizens Financial Services, Inc. | |
| Peoples Financial Services Corp. | | | Unity Bancorp, Inc. | |
| BCB Bancorp, Inc. | | | Codorus Valley Bancorp, Inc. | |
| Orrstown Financial Services, Inc. | | | Evans Bancorp, Inc. | |
| ACNB Corporation | | | Norwood Financial Corp. | |
| First Bank | | | Blue Foundry Bancorp | |
| Chemung Financial Corporation | | | Capital Bancorp, Inc. | |
| Fidelity D & D Bancorp, Inc. | | | | |
| | | | | | | | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | SHBI | | | TCFC | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | ||||||||||||||||||
MRQ Core Return on Average Assets(1) | | | | | 1.19% | | | | | | 1.34% | | | | | | 1.32% | | | | | | 1.29% | | | | | | 1.16% | | | | | | 1.58% | | |
MRQ Core Return on Average Equity(1) | | | | | 11.4% | | | | | | 16.4% | | | | | | 14.7% | | | | | | 14.5% | | | | | | 12.9% | | | | | | 18.1% | | |
MRQ Core Return on Average Tangible Common Equity(1) | | | | | 14.2% | | | | | | 17.5% | | | | | | 16.4% | | | | | | 16.3% | | | | | | 14.9% | | | | | | 20.5% | | |
MRQ Net Interest Margin | | | | | 3.41% | | | | | | 3.44% | | | | | | 3.76% | | | | | | 3.69% | | | | | | 3.34% | | | | | | 3.95% | | |
MRQ Fee Income / Revenue(2) | | | | | 16.5% | | | | | | 6.9% | | | | | | 13.8% | | | | | | 13.1% | | | | | | 9.1% | | | | | | 19.3% | | |
MRQ Efficiency Ratio | | | | | 55.7% | | | | | | 46.5% | | | | | | 55.9% | | | | | | 54.9% | | | | | | 62.6% | | | | | | 50.3% | | |
| | | | | | | | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | SHBI | | | TCFC | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | ||||||||||||||||||
Tangible Common Equity / Tangible Assets | | | | | 8.52% | | | | | | 7.14% | | | | | | 8.10% | | | | | | 7.35% | | | | | | 6.83% | | | | | | 8.52% | | |
Leverage Ratio | | | | | 9.36% | | | | | | 9.56% | | | | | | 9.75% | | | | | | 9.56% | | | | | | 9.00% | | | | | | 10.04% | | |
Total Capital Ratio | | | | | 14.34% | | | | | | 14.30% | | | | | | 14.66% | | | | | | 14.07% | | | | | | 13.57% | | | | | | 15.30% | | |
Loans / Deposits | | | | | 79.7% | | | | | | 82.0% | | | | | | 86.5% | | | | | | 83.3% | | | | | | 79.4% | | | | | | 93.0% | | |
Loan Loss Reserves / Loans | | | | | 0.68% | | | | | | 1.26% | | | | | | 1.11% | | | | | | 1.14% | | | | | | 1.00% | | | | | | 1.18% | | |
Nonperforming Assets / Loans + OREO | | | | | 0.27% | | | | | | 0.39% | | | | | | 0.56% | | | | | | 0.42% | | | | | | 0.68% | | | | | | 0.27% | | |
MRQ Net Charge-offs / Average Loans | | | | | (0.02)% | | | | | | 0.02% | | | | | | 0.14% | | | | | | 0.07% | | | | | | 0.13% | | | | | | 0.01% | | |
| | | | | | | | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | SHBI | | | TCFC | | | Average | | | Median | | | 25th Percentile | | | 75th Percentile | | ||||||||||||||||||
One-Year Stock Price Change | | | | | (3.4)% | | | | | | 4.1% | | | | | | 7.1% | | | | | | 6.5% | | | | | | (3.4)% | | | | | | 15.1% | | |
One-Year Total Return | | | | | (1.0)% | | | | | | 6.1% | | | | | | 10.0% | | | | | | 8.3% | | | | | | (0.6)% | | | | | | 18.7% | | |
Year-to-Date Stock Price Change | | | | | (7.9)% | | | | | | 0.9% | | | | | | 3.1% | | | | | | 1.6% | | | | | | (6.8)% | | | | | | 8.0% | | |
Price / Tangible Book Value per Share | | | | | 1.32x | | | | | | 1.34x | | | | | | 1.55x | | | | | | 1.53x | | | | | | 1.32x | | | | | | 1.82x | | |
Price / 2022 EPS Estimate | | | | | 11.7x | | | | | | 7.8x | | | | | | 9.5x | | | | | | 9.2x | | | | | | 8.0x | | | | | | 10.8x | | |
Price / 2023 EPS Estimate | | | | | 10.1x | | | | | | 7.4x | | | | | | 8.7x | | | | | | 8.6x | | | | | | 7.5x | | | | | | 9.8x | | |
Dividend Yield | | | | | 2.5% | | | | | | 1.8% | | | | | | 2.7% | | | | | | 2.8% | | | | | | 2.3% | | | | | | 3.1% | | |
LTM Dividend Payout Ratio | | | | | 36.6% | | | | | | 14.5% | | | | | | 29.6% | | | | | | 29.5% | | | | | | 23.9% | | | | | | 36.7% | | |
Acquiror | | | Acquired Company | |
NBT Bancorp Inc. | | | Salisbury Bancorp, Inc. | |
Byline Bancorp, Inc. | | | Inland Bancorp, Inc. | |
Peoples Bancorp Inc. | | | Limestone Bancorp, Inc. | |
Prosperity Bancshares, Inc. | | | First Bancshares of Texas, Inc. | |
Prosperity Bancshares, Inc. | | | Lone Star State Bancshares, Inc. | |
The First Bancshares, Inc. | | | Heritage Southeast Bancorporation, Inc. | |
First Bancorp | | | GrandSouth Bancorporation | |
Brookline Bancorp, Inc. | | | PCSB Financial Corporation | |
Seacoast Banking Corporation of Florida | | | Drummond Banking Company | |
Acquiror | | | Acquired Company | |
United Community Banks, Inc. | | | Progress Financial Corporation | |
National Bank Holdings Corporation | | | Bancshares of Jackson Hole, Incorporated | |
Nicolet Bankshares, Inc. | | | Charter Bankshares, Inc. | |
Seacoast Banking Corporation of Florida | | | Apollo Bancshares, Inc. / Apollo Bank | |
Origin Bancorp, Inc. | | | BT Holdings, Inc. | |
| | | | | | | | | Selected Transactions | | |||||||||||||||||||||
| | | SHBI / TCFC | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
Price / Tangible Book Value per Share | | | | | 1.51x | | | | | | 1.62x | | | | | | 1.74x | | | | | | 1.70x | | | | | | 1.87x | | |
Core Deposit Premium | | | | | 4.4% | | | | | | 7.0% | | | | | | 8.4% | | | | | | 7.8% | | | | | | 9.1% | | |
Price / LTM EPS | | | | | 9.3x | | | | | | 12.6x | | | | | | 13.8x | | | | | | 15.2x | | | | | | 18.7x | | |
Price / FWD EPS | | | | | 8.4x | | | | | | 10.6x | | | | | | 11.4x | | | | | | 13.2x | | | | | | 14.0x | | |
One-Day Market Premium | | | | | 12.7% | | | | | | 13.9% | | | | | | 14.3% | | | | | | 22.6% | | | | | | 32.0% | | |
Acquiror | | | Acquired Company | |
Provident Financial Services, Inc. | | | Lakeland Bancorp, Inc. | |
CBTX, Inc. | | | Allegiance Bancshares, Inc. | |
First Interstate BancSystem, Inc. | | | Great Western Bancorp, Inc. | |
Old Second Bancorp, Inc. | | | West Suburban Bancorp, Inc. | |
First Bancorp | | | Select Bancorp, Inc. | |
Peoples Bancorp, Inc. | | | Premier Financial Bancorp, Inc. | |
Shore Bancshares, Inc. | | | Severn Bancorp, Inc. | |
| | | | | | | | | Selected Transactions | | |||||||||||||||||||||
| | | SHBI / TCFC | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
Price / Tangible Book Value per Share | | | | | 1.51x | | | | | | 1.36x | | | | | | 1.52x | | | | | | 1.51x | | | | | | 1.62x | | |
Core Deposit Premium | | | | | 4.4% | | | | | | 5.5% | | | | | | 5.8% | | | | | | 6.9% | | | | | | 9.2% | | |
Price / LTM EPS | | | | | 9.3x | | | | | | 12.3x | | | | | | 12.9x | | | | | | 15.5x | | | | | | 18.1x | | |
Price / FWD EPS | | | | | 8.4x | | | | | | 11.2x | | | | | | 12.7x | | | | | | 12.7x | | | | | | 14.2x | | |
One-Day Market Premium | | | | | 12.7% | | | | | | 6.6% | | | | | | 18.3% | | | | | | 18.1% | | | | | | 26.6% | | |
| | | SHBI % of Total | | | TCFC % of Total | | ||||||
Ownership at 2.3287x merger exchange ratio: | | | | | 60% | | | | | | 40% | | |
Market Capitalization: | | | | | | | | | | | | | |
Pre-Deal Market Capitalization | | | | | 63% | | | | | | 37% | | |
Balance Sheet: | | | | | | | | | | | | | |
Assets | | | | | 59% | | | | | | 41% | | |
Gross Loans Held For Investment | | | | | 58% | | | | | | 42% | | |
Deposits | | | | | 59% | | | | | | 41% | | |
Tangible Common Equity | | | | | 63% | | | | | | 37% | | |
Income Statement: | | | | | | | | | | | | | |
2022 Estimated Earnings | | | | | 53% | | | | | | 47% | | |
2023 Estimated Earnings | | | | | 56% | | | | | | 44% | | |
2024 Estimated Earnings | | | | | 55% | | | | | | 45% | | |
| Transaction Price Per Share / Tangible Book Value Per Share | | | | | 153% | | |
| Transaction Price Per Share / LTM EPS | | | | | 9.4x | | |
| Transaction Price Per Share / 2022E Management Forecast(1) | | | | | 9.1x | | |
| Transaction Price Per Share / 2023E Management Forecast(1) | | | | | 7.8x | | |
| Tangible Book Premium / Core Deposits (CDs >$100K)(2) | | | | | 4.5% | | |
| Tangible Book Premium / Core Deposits (CDs >$250K)(3) | | | | | 4.4% | | |
| Market Premium as of December 12, 2022 | | | | | 13.8% | | |
$ value in millions(1) | | | TCFC | | | | | | | | | SHBI | | | | | | | | ||||||
| | | $ | | | % | | | $ | | | % | | ||||||||||||
Balance Sheet | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | | | $ | 2,360 | | | | | | 40.6% | | | | | $ | 3,447 | | | | | | 59.4% | | |
Gross Loans | | | | $ | 1,744 | | | | | | 42.0% | | | | | $ | 2,410 | | | | | | 58.0% | | |
Total Deposits | | | | $ | 2,127 | | | | | | 41.4% | | | | | $ | 3,015 | | | | | | 58.6% | | |
Total Non-Interest Bearing Deposits | | | | $ | 647 | | | | | | 42.0% | | | | | $ | 894 | | | | | | 58.0% | | |
Total Equity | | | | $ | 179 | | | | | | 33.4% | | | | | $ | 357 | | | | | | 66.6% | | |
Tangible Common Equity | | | | $ | 168 | | | | | | 36.8% | | | | | $ | 288 | | | | | | 63.2% | | |
Income Statement | | | | | | | | | | | | | | | | | | | | | | | | | |
2022E Net Income | | | | $ | 28.3 | | | | | | 46.5% | | | | | $ | 32.6 | | | | | | 53.5% | | |
2023E Net Income | | | | $ | 32.8 | | | | | | 46.5% | | | | | $ | 37.8 | | | | | | 53.5% | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | |
Market Capitalization | | | | $ | 225 | | | | | | 36.8% | | | | | $ | 387 | | | | | | 63.2% | | |
| | | Beginning Value December 12, 2021 | | | Ending Value December 12, 2022 | | ||||||
TCFC | | | | | 100% | | | | | | 104.0% | | |
TCFC Peer Group | | | | | 100% | | | | | | 99.7% | | |
S&P 500 Index | | | | | 100% | | | | | | 84.7% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 84.3% | | |
| | | Beginning Value December 12, 2019 | | | Ending Value December 12, 2022 | | ||||||
TCFC | | | | | 100% | | | | | | 115.6% | | |
TCFC Peer Group | | | | | 100% | | | | | | 106.7% | | |
S&P 500 Index | | | | | 100% | | | | | | 125.9% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 104.2% | | |
| | | Beginning Value December 12, 2021 | | | Ending Value December 12, 2022 | | ||||||
SHBI | | | | | 100% | | | | | | 97.1% | | |
SHBI Peer Group | | | | | 100% | | | | | | 104.4% | | |
S&P 500 Index | | | | | 100% | | | | | | 84.7% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 84.3% | | |
| | | Beginning Value December 12, 2019 | | | Ending Value December 12, 2022 | | ||||||
SHBI | | | | | 100% | | | | | | 114.1% | | |
SHBI Peer Group | | | | | 100% | | | | | | 107.2% | | |
S&P 500 Index | | | | | 100% | | | | | | 125.9% | | |
NASDAQ Bank Index | | | | | 100% | | | | | | 104.2% | | |
| American National Bankshares Inc. | | | John Marshall Bancorp, Inc. | |
| Blue Ridge Bankshares, Inc. | | | MainStreet Bancshares, Inc. | |
| C&F Financial Corporation | | | National Bankshares, Inc. | |
| Capital Bancorp, Inc. | | | Partners Bancorp | |
| First Community Bankshares, Inc. | | | Primis Financial Corp. | |
| First United Corporation | | | Shore Bancshares, Inc. | |
| FVCBankcorp, Inc. | | | Virginia National Bankshares Corp. | |
| | | TCFC | | | TCFC Peer Group Median | | | TCFC Peer Group Mean | | | TCFC Peer Group Low | | | TCFC Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 2,360 | | | | | | 2,255 | | | | | | 2,393 | | | | | | 1,651 | | | | | | 3,447 | | |
Loans / Deposits (%) | | | | | 82.0 | | | | | | 84.1 | | | | | | 82.7 | | | | | | 54.3 | | | | | | 101.1 | | |
Non-performing assets(1) / Total assets (%) | | | | | 0.28 | | | | | | 0.22 | | | | | | 0.33 | | | | | | 0.00 | | | | | | 1.15 | | |
Tangible common equity/Tangible assets (%) | | | | | 7.14 | | | | | | 8.00 | | | | | | 7.97 | | | | | | 6.28 | | | | | | 10.65 | | |
Tier 1 Leverage Ratio (%)(2) | | | | | 9.56 | | | | | | 10.02 | | | | | | 10.37 | | | | | | 8.69 | | | | | | 14.01 | | |
Total RBC Ratio (%)(3) | | | | | 14.30 | | | | | | 15.40 | | | | | | 15.18 | | | | | | 12.36 | | | | | | 18.26 | | |
| | TCFC | | TCFC Peer Group Median | | TCFC Peer Group Mean | | TCFC Peer Group Low | | TCFC Peer Group High | | |||||||||||||||||||||||||||||||||||||||||||||||||||
�� | | TCFC | | TCFC Peer Group Median | | TCFC Peer Group Mean | | TCFC Peer Group Low | | TCFC Peer Group High | | |||||||||||||||||||||||||||||||||||||||||||||||||||
CRE / Total RBC Ratio (%)(4) | | | | 373.4 | | | | | 273.6 | | | | | 268.4 | | | | | 177.7 | | | | | 391.0 | | | | | | 373.4 | | | | | 273.6 | | | | | 268.4 | | | | | 177.7 | | | | | 391.0 | | | ||||||||||
LTM Return on average assets (%) | | | | 1.19 | | | | | 1.27 | | | | | 1.22 | | | | | 0.65 | | | | | 2.09 | | | | | | 1.19 | | | | | 1.27 | | | | | 1.22 | | | | | 0.65 | | | | | 2.09 | | | ||||||||||
LTM Return on average equity (%) | | | | 13.86 | | | | | 12.68 | | | | | 12.51 | | | | | 5.45 | | | | | 20.86 | | | | | | 13.86 | | | | | 12.68 | | | | | 12.51 | | | | | 5.45 | | | | | 20.86 | | | ||||||||||
LTM Net interest margin (%) | | | | 3.24 | | | | | 3.23 | | | | | 3.61 | | | | | 2.79 | | | | | 6.90 | | | | | | 3.24 | | | | | 3.23 | | | | | 3.61 | | | | | 2.79 | | | | | 6.90 | | | ||||||||||
LTM Efficiency ratio (%) | | | | 48.2 | | | | | 58.9 | | | | | 58.7 | | | | | 44.6 | | | | | 70.1 | | | | | | 48.2 | | | | | 58.9 | | | | | 58.7 | | | | | 44.6 | | | | | 70.1 | | | ||||||||||
Price/Tangible book value (%) | | | | 134 | | | | | 140 | | | | | 153 | | | | | 105 | | | | | 222 | | | | | | 134 | | | | | 140 | | | | | 153 | | | | | 105 | | | | | 222 | | | ||||||||||
Price/LTM Earnings per share (x) | | | | 8.3 | | | | | 10.6 | | | | | 10.6 | | | | | 5.0 | | | | | 14.9 | | | | | | 8.3 | | | | | 10.6 | | | | | 10.6 | | | | | 5.0 | | | | | 14.9 | | | ||||||||||
Current Dividend Yield (%) | | | | 1.8 | | | | | 3.0 | | | | | 2.4 | | | | | 0.0 | | | | | 3.9 | | | | | | 1.8 | | | | | 3.0 | | | | | 2.4 | | | | | 0.0 | | | | | 3.9 | | | ||||||||||
Market value ($mm) | | | | 225 | | | | | 266 | | | | | 290 | | | | | 128 | | | | | 584 | | | | | | 225 | | | | | 266 | | | | | 290 | | | | | 128 | | | | | 584 | | |
| American National Bankshares Inc. | | | First Community Bankshares, Inc. | |
| Blue Ridge Bankshares, Inc. | | | FVCBankcorp, Inc. | |
| Burke & Herbert Financial Services Corp. | | | John Marshall Bancorp, Inc. | |
| C&F Financial Corporation | | | Primis Financial Corp. | |
| Capital Bancorp, Inc. | | | The Community Financial Corporation | |
| Carter Bankshares, Inc. | | | | |
| | | SHBI | | | SHBI Peer Group Median | | | SHBI Peer Group Mean | | | SHBI Peer Group Low | | | SHBI Peer Group High | | |||||||||||||||
Total assets ($mm) | | | | | 3,447 | | | | | | 2,880 | | | | | | 2,844 | | | | | | 2,009 | | | | | | 4,114 | | |
Loans / Deposits (%) | | | | | 79.7 | | | | | | 83.6 | | | | | | 84.2 | | | | | | 58.8 | | | | | | 101.1 | | |
Non-performing assets(1) / Total assets (%) | | | | | 0.19 | | | | | | 0.28 | | | | | | 0.38 | | | | | | 0.02 | | | | | | 1.15 | | |
Tangible common equity/Tangible assets (%) | | | | | 8.52 | | | | | | 7.65 | | | | | | 8.18 | | | | | | 6.83 | | | | | | 10.65 | | |
Tier 1 Leverage Ratio (%)(2) | | | | | 9.36 | | | | | | 10.11 | | | | | | 10.23 | | | | | | 9.43 | | | | | | 11.31 | | |
| | | SHBI | | | SHBI Peer Group Median | | | SHBI Peer Group Mean | | | SHBI Peer Group Low | | | SHBI Peer Group High | | |||||||||||||||
Total RBC Ratio (%)(3) | | | | | 14.34 | | | | | | 14.34 | | | | | | 15.05 | | | | | | 12.36 | | | | | | 19.18 | | |
CRE / Total RBC Ratio (%)(4) | | | | | 276.4 | | | | | | 288.5 | | | | | | 297.1 | | | | | | 194.1 | | | | | | 402.5 | | |
LTM Return on average assets (%) | | | | | 0.76 | | | | | | 1.19 | | | | | | 1.23 | | | | | | 0.67 | | | | | | 2.09 | | |
LTM Return on average equity (%) | | | | | 7.47 | | | | | | 12.44 | | | | | | 12.48 | | | | | | 5.45 | | | | | | 20.86 | | |
LTM Net interest margin (%) | | | | | 3.05 | | | | | | 3.24 | | | | | | 3.68 | | | | | | 2.88 | | | | | | 6.90 | | |
LTM Efficiency ratio (%) | | | | | 61.3 | | | | | | 61.8 | | | | | | 59.4 | | | | | | 44.6 | | | | | | 70.1 | | |
Price/Tangible book value (%) | | | | | 134 | | | | | | 145 | | | | | | 157 | | | | | | 105 | | | | | | 211 | | |
Price/LTM Earnings per share (x) | | | | | 14.9 | | | | | | 10.7 | | | | | | 10.8 | | | | | | 7.5 | | | | | | 13.6 | | |
Current Dividend Yield (%) | | | | | 2.5 | | | | | | 2.7 | | | | | | 2.0 | | | | | | 0.0 | | | | | | 3.6 | | |
Market value ($mm) | | | | | 387 | | | | | | 338 | | | | | | 359 | | | | | | 213 | | | | | | 584 | | |
Larger Entity | | | Smaller Entity | |
GNB Financial Services Inc.(1) | | | LINKBANCORP Inc. | |
Virginia National Bankshares | | | Fauquier Bankshares | |
Broadway Financial Corp | | | CFBanc Corp. | |
Blue Ridge Bankshares | | | Bay Banks of Virginia | |
Dime Community(1) | | | Bridge Bancorp | |
ChoiceOne Financial | | | County Bank Corp | |
Delmar Bancorp | | | Virginia Partners | |
| | | SHBI/ TCFC | | | Nationwide Precedent Transactions | | ||||||||||||||||||||||||
| | | Median | | | Mean | | | Low | | | High | | ||||||||||||||||||
Deal Value ($M) | | | | | 258 | | | | | | 63 | | | | | | 129 | | | | | | 40 | | | | | | 498 | | |
1-Day Market Premium (%) | | | | | 13.8 | | | | | | 10.0 | | | | | | 9.8 | | | | | | -2.2 | | | | | | 21.4 | | |
Discount Rate | | | 8.5x | | | 9.5x | | | 10.5x | | | 11.5x | | | 12.5x | | | 13.5x | | ||||||||||||||||||
10.00% | | | | $ | 44.91 | | | | | $ | 49.90 | | | | | $ | 54.89 | | | | | $ | 59.89 | | | | | $ | 64.88 | | | | | $ | 69.87 | | |
11.00% | | | | $ | 43.26 | | | | | $ | 48.06 | | | | | $ | 52.86 | | | | | $ | 57.67 | | | | | $ | 62.47 | | | | | $ | 67.27 | | |
12.00% | | | | $ | 41.68 | | | | | $ | 46.30 | | | | | $ | 50.92 | | | | | $ | 55.55 | | | | | $ | 60.17 | | | | | $ | 64.79 | | |
13.00% | | | | $ | 40.17 | | | | | $ | 44.62 | | | | | $ | 49.07 | | | | | $ | 53.52 | | | | | $ | 57.98 | | | | | $ | 62.43 | | |
14.00% | | | | $ | 38.73 | | | | | $ | 43.02 | | | | | $ | 47.30 | | | | | $ | 51.59 | | | | | $ | 55.88 | | | | | $ | 60.17 | | |
Discount Rate | | | 125% | | | 140% | | | 155% | | | 170% | | | 185% | | | 200% | | ||||||||||||||||||
10.00% | | | | $ | 47.82 | | | | | $ | 53.26 | | | | | $ | 58.70 | | | | | $ | 64.14 | | | | | $ | 69.58 | | | | | $ | 75.02 | | |
11.00% | | | | $ | 46.05 | | | | | $ | 51.29 | | | | | $ | 56.52 | | | | | $ | 61.76 | | | | | $ | 66.99 | | | | | $ | 72.23 | | |
12.00% | | | | $ | 44.37 | | | | | $ | 49.41 | | | | | $ | 54.45 | | | | | $ | 59.49 | | | | | $ | 64.52 | | | | | $ | 69.56 | | |
13.00% | | | | $ | 42.76 | | | | | $ | 47.61 | | | | | $ | 52.46 | | | | | $ | 57.32 | | | | | $ | 62.17 | | | | | $ | 67.02 | | |
14.00% | | | | $ | 41.22 | | | | | $ | 45.90 | | | | | $ | 50.57 | | | | | $ | 55.25 | | | | | $ | 59.92 | | | | | $ | 64.59 | | |
Annual Estimate Variance | | | 8.5x | | | 9.5x | | | 10.5x | | | 11.5x | | | 12.5x | | | 13.5x | | ||||||||||||||||||
(20.0)% | | | | $ | 33.77 | | | | | $ | 37.46 | | | | | $ | 41.15 | | | | | $ | 44.85 | | | | | $ | 48.54 | | | | | $ | 52.23 | | |
(10.0)% | | | | $ | 37.69 | | | | | $ | 41.84 | | | | | $ | 46.00 | | | | | $ | 50.15 | | | | | $ | 54.31 | | | | | $ | 58.46 | | |
0.0% | | | | $ | 41.61 | | | | | $ | 46.23 | | | | | $ | 50.85 | | | | | $ | 55.46 | | | | | $ | 60.08 | | | | | $ | 64.70 | | |
10.0% | | | | $ | 45.54 | | | | | $ | 50.62 | | | | | $ | 55.69 | | | | | $ | 60.77 | | | | | $ | 65.85 | | | | | $ | 70.93 | | |
20.0% | | | | $ | 49.46 | | | | | $ | 55.00 | | | | | $ | 60.54 | | | | | $ | 66.08 | | | | | $ | 71.62 | | | | | $ | 77.16 | | |
Discount Rate | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | ||||||||||||||||||
10.00% | | | | $ | 14.76 | | | | | $ | 16.21 | | | | | $ | 17.66 | | | | | $ | 19.11 | | | | | $ | 20.56 | | | | | $ | 22.02 | | |
11.00% | | | | $ | 14.22 | | | | | $ | 15.62 | | | | | $ | 17.02 | | | | | $ | 18.42 | | | | | $ | 19.81 | | | | | $ | 21.21 | | |
12.00% | | | | $ | 13.72 | | | | | $ | 15.06 | | | | | $ | 16.41 | | | | | $ | 17.75 | | | | | $ | 19.10 | | | | | $ | 20.44 | | |
13.00% | | | | $ | 13.23 | | | | | $ | 14.53 | | | | | $ | 15.83 | | | | | $ | 17.12 | | | | | $ | 18.42 | | | | | $ | 19.71 | | |
14.00% | | | | $ | 12.77 | | | | | $ | 14.02 | | | | | $ | 15.27 | | | | | $ | 16.52 | | | | | $ | 17.76 | | | | | $ | 19.01 | | |
Discount Rate | | | 130% | | | 140% | | | 150% | | | 160% | | | 170% | | | 180% | | ||||||||||||||||||
10.00% | | | | $ | 19.61 | | | | | $ | 20.99 | | | | | $ | 22.37 | | | | | $ | 23.74 | | | | | $ | 25.12 | | | | | $ | 26.50 | | |
11.00% | | | | $ | 18.89 | | | | | $ | 20.22 | | | | | $ | 21.55 | | | | | $ | 22.88 | | | | | $ | 24.20 | | | | | $ | 25.53 | | |
12.00% | | | | $ | 18.21 | | | | | $ | 19.49 | | | | | $ | 20.77 | | | | | $ | 22.05 | | | | | $ | 23.32 | | | | | $ | 24.60 | | |
13.00% | | | | $ | 17.56 | | | | | $ | 18.79 | | | | | $ | 20.02 | | | | | $ | 21.25 | | | | | $ | 22.48 | | | | | $ | 23.71 | | |
14.00% | | | | $ | 16.94 | | | | | $ | 18.13 | | | | | $ | 19.31 | | | | | $ | 20.50 | | | | | $ | 21.68 | | | | | $ | 22.87 | | |
Annual Estimate Variance | | | 9.0x | | | 10.0x | | | 11.0x | | | 12.0x | | | 13.0x | | | 14.0x | | ||||||||||||||||||
(20.0)% | | | | $ | 11.28 | | | | | $ | 12.36 | | | | | $ | 13.43 | | | | | $ | 14.50 | | | | | $ | 15.58 | | | | | $ | 16.65 | | |
(10.0)% | | | | $ | 12.49 | | | | | $ | 13.70 | | | | | $ | 14.91 | | | | | $ | 16.12 | | | | | $ | 17.32 | | | | | $ | 18.53 | | |
0.0% | | | | $ | 13.70 | | | | | $ | 15.04 | | | | | $ | 16.38 | | | | | $ | 17.73 | | | | | $ | 19.07 | | | | | $ | 20.41 | | |
10.0% | | | | $ | 14.91 | | | | | $ | 16.38 | | | | | $ | 17.86 | | | | | $ | 19.34 | | | | | $ | 20.82 | | | | | $ | 22.29 | | |
20.0% | | | | $ | 16.12 | | | | | $ | 17.73 | | | | | $ | 19.34 | | | | | $ | 20.95 | | | | | $ | 22.56 | | | | | $ | 24.17 | | |
| | | 2022E | | | 2023E | | | 2024E | | |||||||||
EPS | | | | $ | 1.64 | | | | | $ | 1.91 | | | | | $ | 1.87 | | |
Dollars in millions, except per share data | | | 2022E | | | 2023E | | | 2024E | | |||||||||
Net Income | | | | $ | 32.6 | | | | | $ | 37.8 | | | | | $ | 37.1 | | |
EPS | | | | $ | 1.64 | | | | | $ | 1.90 | | | | | $ | 1.87 | | |
| | | 2022E | | | 2023E | | | 2024E | | |||||||||
EPS | | | | $ | 5.09 | | | | | $ | 5.34 | | | | | $ | 5.30 | | |
Dollars in millions, except per share data | | | 2022E | | | 2023E | | | 2024E | | | 2025E | | | 2026E | | |||||||||||||||
Net Income | | | | $ | 28.3 | | | | | $ | 32.8 | | | | | $ | 35.1 | | | | | $ | 38.6 | | | | | $ | 42.3 | | |
EPS | | | | $ | 5.01 | | | | | $ | 5.82 | | | | | $ | 6.22 | | | | | $ | 6.84 | | | | | $ | 7.48 | | |
Name | | | Cash ($)(1) | | | Equity ($)(2) | | | Pension / NQDC ($)(4) | | | Perquisites/ Benefits ($) | | | Tax Reimbursement ($) | | | Other ($)(3) | | | Total ($) | | |||||||||||||||||||||
Named Executive Officers(a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Lloyd L. Beatty, Jr. | | | | | 2,673,449 | | | | | | 69,368 | | | | | | 12,221 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 2,755,038 | | |
Donna J. Stevens | | | | | 973,370 | | | | | | 9,745 | | | | | | 28,300 | | | | | | ― | | | | | | ― | | | | | | 91,132 | | | | | | 1,102,547 | | |
Edward C. Allen | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Vance W. Adkins | | | | | 684,130 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 684,130 | | |
Named Executive Officers | | Cash ($)(1) | | Equity ($)(2) | | Pension/ NQDC(3) | | Perquisites/ Benefits ($)(4) | | Tax Reimbursements ($) | | Other ($) | | Total ($) | | | Cash ($)(1) | | Equity ($)(2) | | Pension/ NQDC(3) | | Perquisites/ Benefits ($)(4) | | Tax Reimbursements ($) | | Other ($)(5) | | Total ($) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
James M. Burke | | | | 2,158,887 | | | | | 315,916 | | | | | 151,926 | | | | | 36,000 | | | | | — | | | | | — | | | | | 2,662,729 | | | | | | 2,158,887 | | | | | 320,839 | | | | | 151,926 | | | | | 36,000 | | | | | — | | | | | 355,000 | | | | | 3,022,652 | | | ||||||||||||||
Todd L. Capitani | | | | 904,278 | | | | | 113,235 | | | | | 372,694 | | | | | 36,000 | | | | | — | | | | | — | | | | | 1,426,207 | | | | | | 904,278 | | | | | 113,235 | | | | | 372,694 | | | | | 36,000 | | | | | — | | | | | 167,997 | | | | | 1,594,204 | | | ||||||||||||||
Christy Lombardi | | | | 901,682 | | | | | 115,892 | | | | | 217,550 | | | | | 36,000 | | | | | — | | | | | — | | | | | 1,271,124 | | | | | | 901,682 | | | | | 115,892 | | | | | 217,550 | | | | | 36,000 | | | | | — | | | | | 305,000 | | | | | 1,576,124 | | |
| | | RSUs ($) | | | PSUs ($) | | | Restricted Stock ($) | | |||||||||
James M. Burke | | | | | 144,170 | | | | | | 156,513 | | | | | | 15,233 | | |
Todd L. Capitani | | | | | 52,809 | | | | | | 60,426 | | | | | | — | | |
Christy Lombardi | | | | | 55,661 | | | | | | 60,231 | | | | | | — | | |
| | | RSUs ($) | | | PSUs ($) | | | Restricted Stock ($) | | |||||||||
James M. Burke | | | | | 144,170 | | | | | | 156,513 | | | | | | 20,155 | | |
Todd L. Capitani | | | | | 52,809 | | | | | | 60,426 | | | | | | — | | |
Christy Lombardi | | | | | 55,661 | | | | | | 60,231 | | | | | | — | | |
| | | 2014 SERP ($) | | | 2011 SERP ($) | | ||||||
James M. Burke | | | | | 30,111 | | | | | | 121,815 | | |
Todd L. Capitani | | | | | 237,565 | | | | | | 135,129 | | |
Christy Lombardi | | | | | 217,550 | | | | | | — | | |
| | | Continued Insurance Coverage ($) | | |||
James M. Burke | | | | | 36,000 | | |
Todd L. Capitani | | | | | 36,000 | | |
Christy Lombardi | | | | | 36,000 | | |
Year | | | Summary Compensation Table Total for PEO ($) Pasenelli(1)(2) | | | Summary Compensation Table Total for PEO ($) Burke(1)(2) | | | Compensation Actually Paid to PEO ($) Pasenelli(3) | | | Compensation Actually Paid to PEO ($) Burke(3) | | | Average Summary Compensation Table Total for Non-PEO NEOs ($)(2)(4) | | | Average Compensation Actually Paid to Non-PEO NEOs ($)(2)(5) | | | Value of Initial Fixed $100 Investment Based on Total Shareholder Return ($)(6) | | | Net Income ($) (in thousands)(7) | | ||||||||||||||||||||||||
2022 | | | | | 1,012,879 | | | | | | 983,464 | | | | | | 1,022,922 | | | | | | 1,004,569 | | | | | | 654,468 | | | | | | 660,984 | | | | | | 112.73 | | | | | | 28,317 | | |
2021 | | | | | 1,136,670 | | | | | | — | | | | | | 1,331,604 | | | | | | — | | | | | | 637,484 | | | | | | 754,093 | | | | | | 109.13 | | | | | | 25,886 | | |
Adjustments to Determine Compensation “Actually Paid” to the PEOs | | | 2022 ($) (James M. Burke) | | | 2022 ($) (William J. Pasenelli) | | | 2021 ($) (William J. Pasenelli) | | |||||||||
Deduction for amounts reported under the “Stock Awards” column in the TCFC Summary Compensation Table | | | | | (62,137) | | | | | | — | | | | | | (166,936) | | |
Deduction for the amounts reported under the “Option Awards” column in the TCFC Summary Compensation Table | | | | | — | | | | | | — | | | | | | — | | |
Increase for fair value of awards granted during year that remain unvested as of year end | | | | | 76,887 | | | | | | — | | | | | | 266,758 | | |
Increase for fair value of awards granted during year that vest during year | | | | | — | | | | | | — | | | | | | — | | |
Increase/deduction for change in fair value from prior year-end to current year-end of awards granted prior to year that were outstanding and unvested as of year-end | | | | | 2,542 | | | | | | 3,664 | | | | | | 99,407 | | |
Adjustments to Determine Compensation “Actually Paid” to the PEOs | | 2022 ($) (James M. Burke) | | 2022 ($) (William J. Pasenelli) | | 2021 ($) (William J. Pasenelli) | | | 2022 ($) (James M. Burke) | | 2022 ($) (William J. Pasenelli) | | 2021 ($) (William J. Pasenelli) | | ||||||||||||||||||||||||
Deduction for amounts reported under the “Stock Awards” column in the TCFC Summary Compensation Table | | | | (62,137) | | | | | — | | | | | (166,936) | | | ||||||||||||||||||||||
Deduction for the amounts reported under the “Option Awards” column in the TCFC Summary Compensation Table | | | | — | | | | | — | | | | | — | | | ||||||||||||||||||||||
Increase for fair value of awards granted during year that remain unvested as of year end | | | | 76,887 | | | | | — | | | | | 266,758 | | | ||||||||||||||||||||||
Increase for fair value of awards granted during year that vest during year | | | | — | | | | | — | | | | | — | | | ||||||||||||||||||||||
Increase/deduction for change in fair value from prior year-end to current year-end of awards granted prior to year that were outstanding and unvested as of year-end | | | | 2,542 | | | | | 3,664 | | | | | 99,407 | | | ||||||||||||||||||||||
Increase/deduction for change in fair value from prior year-end to vesting date of awards granted prior to year that vested during year | | | | (361) | | | | | (1,527) | | | | | (12,110) | | | | | | (361) | | | | | (1,527) | | | | | (12,110) | | | ||||||
Deduction of fair value of awards granted prior to year that were forfeited during year | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | ||||||
Increase based upon incremental fair value of awards modified during year | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | ||||||
Increase based on dividends or other earnings paid during year prior to vesting date of awards | | | | 4,174 | | | | | 7,906 | | | | | 7,815 | | | | | | 4,174 | | | | | 7,906 | | | | | 7,815 | | | ||||||
Total Adjustments | | | | 21,105 | | | | | 10,043 | | | | | 194,934 | | | | | | 21,105 | | | | | 10,043 | | | | | 194,934 | | |
Adjustments to Determine Average Compensation “Actually Paid” to the Non-PEOs | | | 2022 | | | 2021 | | ||||||
Deduction for Amounts Reported under the “Stock Awards” Column in the TCFC Summary Compensation Table | | | | | (68,492) | | | | | | (93,776) | | |
Deduction for Amounts Reported under the “Option Awards” Column in the TCFC Summary Compensation Table | | | | | — | | | | | | — | | |
Increase for Fair Value of Awards Granted during year that Remain Unvested as of Year-end | | | | | 67,511 | | | | | | 149,850 | | |
Increase for Fair Value of Awards Granted during year that Vest during year | | | | | — | | | | | | — | | |
Increase/deduction for Change in Fair Value from prior Year-end to current Year-end of Awards Granted Prior to year that were Outstanding and Unvested as of Year-end | | | | | 2,946 | | | | | | 69,705 | | |
Increase/deduction for Change in Fair Value from Prior Year-end to Vesting Date of Awards Granted Prior to year that Vested during year | | | | | (134) | | | | | | (13,917) | | |
Deduction of Fair Value of Awards Granted Prior to year that were Forfeited during year | | | | | — | | | | | | — | | |
Increase based upon Incremental Fair Value of Awards Modified during year | | | | | — | | | | | | — | | |
Increase based on Dividends or Other Earnings Paid during year prior to Vesting Date of Award | | | | | 4,685 | | | | | | 4,747 | | |
Total Adjustments | | | | | 6,516 | | | | | | 116,609 | | |
(in thousands) | | SHBI Historical (as reported) | | | | | | | TCFC Historical (as reported) | | | | | | | Transaction Accounting Adjustments | | | | | | | Pro Forma Combined | | | SHBI Historical (as reported) | | | | | | | TCFC Historical (as reported) | | | | | | | Transaction Accounting Adjustments | | | | | | | Pro Forma Combined | | ||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Cash and due from banks | | | $ | 37,661 | | | | | | | | | $ | 11,511 | | | | | | | | | $ | ― | | | | | | | | | $ | 49,172 | | | | | $ | 37,661 | | | | | | | | | $ | 11,511 | | | | | | | | | $ | ― | | | | | | | | | $ | 49,172 | | | ||||||||||||||
Federal funds sold | | | | ― | | | | | | | | | | 2,140 | | | | | | | | | | ― | | | | | | | | | | 2,140 | | | | | | ― | | | | | | | | | | 2,140 | | | | | | | | | | ― | | | | | | | | | | 2,140 | | | ||||||||||||||
Interest-bearing deposits with other banks | | | | 17,838 | | | | | | | | | | 11,822 | | | | | | | | | | ― | | | | | | | | | | 29,660 | | | | | | 17,838 | | | | | | | | | | 11,822 | | | | | | | | | | ― | | | | | | | | | | 29,660 | | | ||||||||||||||
Cash and cash equivalents | | | | 55,499 | | | | | | | | | | 25,473 | | | | | | | | | | ― | | | | | | | | | | 80,972 | | | | | | 55,499 | | | | | | | | | | 25,473 | | | | | | | | | | ― | | | | | | | | | | 80,972 | | | ||||||||||||||
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Available-for-sale, at fair value | | | | 83,587 | | | | | | | | | | 462,746 | | | | | | | | | | ― | | | | | | | | | | 546,333 | | | | | | 83,587 | | | | | | | | | | 462,746 | | | | | | | | | | ― | | | | | | | | | | 546,333 | | | ||||||||||||||
Held to maturity, at amortized cost | | | | 559,455 | | | | | | | | | | ― | | | | | | | | | | (500) | | | | | A | | | | | 558,955 | | | | | | 559,455 | | | | | | | | | | ― | | | | | | | | | | (500) | | | | | A | | | | | 558,955 | | | ||||||||||||||
Equity securities, at fair value | | | | 1,233 | | | | | | | | | | 4,286 | | | | | | | | | | ― | | | | | | | | | | 5,519 | | | | | | 1,233 | | | | | | | | | | 4,286 | | | | | | | | | | ― | | | | | | | | | | 5,519 | | | ||||||||||||||
Restricted securities | | | | 11,169 | | | | | | | | | | 4,791 | | | | | | | | | | ― | | | | | | | | | | 15,960 | | | | | | 11,169 | | | | | | | | | | 4,791 | | | | | | | | | | ― | | | | | | | | | | 15,960 | | | ||||||||||||||
Loans held for sale, at fair value | | | | 4,248 | | | | | | | | | | ― | | | | | | | | | | ― | | | | | | | | | | 4,248 | | | | | | 4,248 | | | | | | | | | | ― | | | | | | | | | | ― | | | | | | | | | | 4,248 | | | ||||||||||||||
Loans | | | | 2,556,107 | | | | | | | | | | 1,821,407 | | | | | | | | | | (79,126) | | | | | B | | | | | 4,298,388 | | | | | | 2,556,107 | | | | | | | | | | 1,821,407 | | | | | | | | | | (79,126) | | | | | B | | | | | 4,298,388 | | | ||||||||||||||
Less: allowance for credit losses | | | | (16,643) | | | | | C | | | | | (22,890) | | | | | D | | | | | 22,890 | | | | | E | | | | | (16,643) | | | | | | (16,643) | | | | | C | | | | | (22,890) | | | | | D | | | | | 22,890 | | | | | E | | | | | (16,643) | | | ||||||||||||||
Loans, net | | | | 2,539,464 | | | | | | | | | | 1,798,517 | | | | | | | | | | (56,236) | | | | | | | | | | 4,281,745 | | | | | | 2,539,464 | | | | | | | | | | 1,798,517 | | | | | | | | | | (56,236) | | | | | | | | | | 4,281,745 | | | ||||||||||||||
Premises and equipment, net | | | | 51,488 | | | | | | | | | | 21,308 | | | | | | | | | | 8,609 | | | | | F | | | | | 81,405 | | | | | | 51,488 | | | | | | | | | | 21,308 | | | | | | | | | | 8,609 | | | | | F | | | | | 81,405 | | | ||||||||||||||
Goodwill | | | | 63,266 | | | | | | | | | | 10,835 | | | | | | | | | | (10,835) | | | | | G | | | | | 63,266 | | | | | | 63,266 | | | | | | | | | | 10,835 | | | | | | | | | | (10,835) | | | | | G | | | | | 63,266 | | | ||||||||||||||
Other intangible assets, net | | | | 5,547 | | | | | | | | | | 634 | | | | | | | | | | 49,576 | | | | | H | | | | | 55,757 | | | | | | 5,547 | | | | | | | | | | 634 | | | | | | | | | | 49,576 | | | | | H | | | | | 55,757 | | | ||||||||||||||
Other real estate owned, net | | | | 197 | | | | | | | | | | ― | | | | | | | | | | ― | | | | | | | | | | 197 | | | | | | 197 | | | | | | | | | | ― | | | | | | | | | | ― | | | | | | | | | | 197 | | | ||||||||||||||
Mortgage servicing rights, at fair value | | | | 5,275 | | | | | | | | | | ― | | | | | | | | | | ― | | | | | | | | | | 5,275 | | | | | | 5,275 | | | | | | | | | | ― | | | | | | | | | | ― | | | | | | | | | | 5,275 | | | ||||||||||||||
Right-of-use assets | | | | 9,629 | | | | | | | | | | 5,920 | | | | | | | | | | (550) | | | | | F | | | | | 14,999 | | | | | | 9,629 | | | | | | | | | | 5,920 | | | | | | | | | | (550) | | | | | F | | | | | 14,999 | | | ||||||||||||||
Cash surrender value on life insurance | | | | 59,218 | | | | | | | | | | 39,802 | | | | | | | | | | ― | | | | | | | | | | 99,020 | | | | | | 59,218 | | | | | | | | | | 39,802 | | | | | | | | | | ― | | | | | | | | | | 99,020 | | | ||||||||||||||
Other assets | | | | 28,001 | | | | | | | | | | 35,705 | | | | | | | | | | 7,172 | | | | | I | | | | | 70,878 | | | | | | 28,001 | | | | | | | | | | 35,705 | | | | | | | | | | 7,172 | | | | | I | | | | | 70,878 | | | ||||||||||||||
TOTAL ASSETS | | | $ | 3,477,276 | | | | | | | | | $ | 2,410,017 | | | | | | | | | $ | (2,764) | | | | | | | | | $ | 5,884,529 | | | | | $ | 3,477,276 | | | | | | | | | $ | 2,410,017 | | | | | | | | | $ | (2,764) | | | | | | | | | $ | 5,884,529 | | | ||||||||||||||
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Noninterest-bearing | | | $ | 862,015 | | | | | | | | | $ | 630,120 | | | | | | | | | $ | ― | | | | | | | | | $ | 1,492,135 | | | | | $ | 862,015 | | | | | | | | | $ | 630,120 | | | | | | | | | $ | ― | | | | | | | | | $ | 1,492,135 | | | ||||||||||||||
Interest-bearing | | | | 2,147,769 | | | | | | | | | | 1,458,343 | | | | | | | | | | (7,596) | | | | | J | | | | | 3,598,516 | | | | | | 2,147,769 | | | | | | | | | | 1,458,343 | | | | | | | | | | (7,596) | | | | | J | | | | | 3,598,516 | | | ||||||||||||||
Total deposits | | | | 3,009,784 | | | | | | | | | | 2,088,463 | | | | | | | | | | (7,596) | | | | | | | | | | 5,090,651 | | | | | | 3,009,784 | | | | | | | | | | 2,088,463 | | | | | | | | | | (7,596) | | | | | | | | | | 5,090,651 | | | ||||||||||||||
Advances from FHLB – short-term | | | | 40,000 | | | | | | | | | | 79,000 | | | | | | | | | | ― | | | | | | | | | | 119,000 | | | | | | 40,000 | | | | | | | | | | 79,000 | | | | | | | | | | ― | | | | | | | | | | 119,000 | | | ||||||||||||||
Subordinated debt | | | | 43,072 | | | | | | | | | | 31,566 | | | | | | | | | | (3,037) | | | | | K | | | | | 71,601 | | | | | | 43,072 | | | | | | | | | | 31,566 | | | | | | | | | | (3,037) | | | | | K | | | | | 71,601 | | | ||||||||||||||
Total borrowings | | | | 83,072 | | | | | | | | | | 110,566 | | | | | | | | | | (3,037) | | | | | | | | | | 190,601 | | | | | | 83,072 | | | | | | | | | | 110,566 | | | | | | | | | | (3,037) | | | | | | | | | | 190,601 | | | ||||||||||||||
Lease liabilities | | | | 9,908 | | | | | | | | | | 6,202 | | | | | | | | | | (550) | | | | | F | | | | | 15,560 | | | | | | 9,908 | | | | | | | | | | 6,202 | | | | | | | | | | (550) | | | | | F | | | | | 15,560 | | | ||||||||||||||
Other liabilities | | | | 10,227 | | | | | | | | | | 17,775 | | | | | | | | | | 14,221 | | | | | L | | | | | 42,223 | | | | | | 10,227 | | | | | | | | | | 17,775 | | | | | | | | | | 14,221 | | | | | L | | | | | 42,223 | | | ||||||||||||||
TOTAL LIABILITIES | | | | 3,112,991 | | | | | | | | | | 2,223,006 | | | | | | | | | | 3,038 | | | | | | | | | | 5,339,035 | | | | | | 3,112,991 | | | | | | | | | | 2,223,006 | | | | | | | | | | 3,038 | | | | | | | | | | 5,339,035 | | | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Common stock | | | | 199 | | | | | | | | | | 56 | | | | | | | | | | 76 | | | | | M | | | | | 331 | | | | | | 199 | | | | | | | | | | 56 | | | | | | | | | | 76 | | | | | M | | | | | 331 | | | ||||||||||||||
Additional paid in capital | | | | 201,494 | | | | | | | | | | 97,986 | | | | | | | | | | 92,099 | | | | | N | | | | | 391,579 | | | | | | 201,494 | | | | | | | | | | 97,986 | | | | | | | | | | 79,292 | | | | | N | | | | | 378,772 | | | ||||||||||||||
Retained earnings | | | | 171,613 | | | | | | | | | | 132,235 | | | | | | | | | | (141,243) | | | | | O | | | | | 162,605 | | | | | | 171,613 | | | | | | | | | | 132,235 | | | | | | | | | | (128,436) | | | | | O | | | | | 175,412 | | | ||||||||||||||
Accumulated other comprehensive loss | | | | (9,021) | | | | | | | | | | (43,092) | | | | | | | | | | 43,092 | | | | | P | | | | | (9,021) | | | | | | (9,021) | | | | | | | | | | (43,092) | | | | | | | | | | 43,092 | | | | | P | | | | | (9,021) | | | ||||||||||||||
Unearned ESOP shares | | | | ― | | | | | | | | | | (174) | | | | | | | | | | 174 | | | | | Q | | | | | ― | | | | | | ― | | | | | | | | | | (174) | | | | | | | | | | 174 | | | | | Q | | | | | ― | | | ||||||||||||||
TOTAL STOCKHOLDERS’ EQUITY | | | | 364,285 | | | | | | | | | | 187,011 | | | | | | | | | | (5,802) | | | | | | | | | | 545,494 | | | | | | 364,285 | | | | | | | | | | 187,011 | | | | | | | | | | (5,802) | | | | | | | | | | 545,494 | | | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | | $ | 3,477,276 | | | | | | | | | $ | 2,410,017 | | | | | | | | | $ | (2,764) | | | | | | | | | $ | 5,884,529 | | | | | $ | 3,477,276 | | | | | | | | | $ | 2,410,017 | | | | | | | | | $ | (2,764) | | | | | | | | | $ | 5,884,529 | | |
(in thousands, except per share data) | | | SHBI Historical (as reported) | | | TCFC Historical (as reported) | | | Transaction Accounting Adjustments | | | | | | | | | Pro Forma Combined | | ||||||||||||
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | | | $ | 99,122 | | | | | $ | 72,738 | | | | | $ | 9,198 | | | | | | R | | | | | $ | 181,058 | | |
Interest and dividends on investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | | | 11,507 | | | | | | 9,047 | | | | | | ― | | | | | | | | | | | | 20,554 | | |
Tax-exempt | | | | | 6 | | | | | | 442 | | | | | | ― | | | | | | | | | | | | 448 | | |
Interest on deposits with other banks | | | | | 3,210 | | | | | | 480 | | | | | | ― | | | | | | | | | | | | 3,690 | | |
Total interest income | | | | | 113,845 | | | | | | 82,707 | | | | | | 9,198 | | | | | | | | | | | | 205,750 | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on deposits | | | | | 9,983 | | | | | | 7,211 | | | | | | 5,241 | | | | | | S | | | | | | 22,435 | | |
Interest on short-term borrowings | | | | | 74 | | | | | | 426 | | | | | | ― | | | | | | | | | | | | 500 | | |
Interest on long-term borrowings | | | | | 2,486 | | | | | | 1,545 | | | | | | 508 | | | | | | T | | | | | | 4,539 | | |
Total interest expense | | | | | 12,543 | | | | | | 9,182 | | | | | | 5,749 | | | | | | | | | | | | 27,474 | | |
NET INTEREST INCOME | | | | | 101,302 | | | | | | 73,525 | | | | | | 3,449 | | | | | | | | | | | | 178,276 | | |
Provision for portfolio loan losses | | | | | 1,925 | | | | | | 2,583 | | | | | | ― | | | | | | | | | | | | 4,508 | | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | | | | | 99,377 | | | | | | 70,942 | | | | | | 3,449 | | | | | | | | | | | | 173,768 | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | | | 5,652 | | | | | | 2,330 | | | | | | ― | | | | | | | | | | | | 7,982 | | |
Trust and investment fee income | | | | | 1,784 | | | | | | ― | | | | | | ― | | | | | | | | | | | | 1,784 | | |
Interchange credits | | | | | 4,812 | | | | | | 2,049 | | | | | | ― | | | | | | | | | | | | 6,861 | | |
Mortgage-banking revenue | | | | | 5,210 | | | | | | (2) | | | | | | ― | | | | | | | | | | | | 5,208 | | |
Title Company revenue | | | | | 1,340 | | | | | | ― | | | | | | ― | | | | | | | | | | | | 1,340 | | |
Other noninterest income | | | | | 4,288 | | | | | | 2,016 | | | | | | ― | | | | | | | | | | | | 6,304 | | |
Total noninterest income | | | | | 23,086 | | | | | | 6,393 | | | | | | ― | | | | | | | | | | | | 29,479 | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits | | | | | 45,839 | | | | | | 20,806 | | | | | | ― | | | | | | | | | | | | 66,645 | | |
Occupancy expense | | | | | 6,242 | | | | | | 3,212 | | | | | | 221 | | | | | | U | | | | | | 9,675 | | |
Furniture and equipment expense | | | | | 2,018 | | | | | | 657 | | | | | | ― | | | | | | | | | | | | 2,675 | | |
Data processing | | | | | 6,890 | | | | | | 4,126 | | | | | | ― | | | | | | | | | | | | 11,016 | | |
Amortization of intangible assets | | | | | 1,988 | | | | | | 398 | | | | | | 9,503 | | | | | | V | | | | | | 11,889 | | |
FDIC insurance premium expense | | | | | 1,426 | | | | | | 701 | | | | | | ― | | | | | | | | | | | | 2,127 | | |
Other real estate owned expenses, net | | | | | 65 | | | | | | 6 | | | | | | ― | | | | | | | | | | | | 71 | | |
Legal and professional fees | | | | | 2,840 | | | | | | 3,490 | | | | | | ― | | | | | | | | | | | | 6,330 | | |
Merger-related expenses | | | | | 2,098 | | | | | | 1,004 | | | | | | (2,032) | | | | | | W | | | | | | 1,070 | | |
Other noninterest expenses | | | | | 10,916 | | | | | | 5,034 | | | | | | ― | | | | | | | | | | | | 15,950 | | |
Total noninterest expense | | | | | 80,322 | | | | | | 39,434 | | | | | | 7,692 | | | | | | | | | | | | 127,448 | | |
Income before income tax expense | | | | | 42,141 | | | | | | 37,901 | | | | | | (4,243) | | | | | | | | | | | | 75,799 | | |
Income tax expense | | | | | 10,964 | | | | | | 9,584 | | | | | | (1,103) | | | | | | X | | | | | | 19,445 | | |
NET INCOME | | | | $ | 31,177 | | | | | $ | 28,317 | | | | | $ | (3,140) | | | | | | | | | | | $ | 56,354 | | |
Earnings per common share – Basic | | | | $ | 1.57 | | | | | $ | 5.01 | | | | | | | | | | | | | | | | | $ | 1.71 | | |
Earnings per common share – Diluted | | | | $ | 1.57 | | | | | $ | 5.00 | | | | | | | | | | | | | | | | | $ | 1.71 | | |
Weighted average shares outstanding – Basic | | | | | 19,847 | | | | | | 5,652 | | | | | | 7,510 | | | | | | Y | | | | | | 33,009 | | |
Weighted average shares outstanding – Diluted | | | | | 19,847 | | | | | | 5,660 | | | | | | 7,520 | | | | | | Y | | | | | | 33,027 | | |
| (B) | | | Adjustment to acquired TCFC loans: | | | | | | | |
| | | | Reversal of net unaccreted loan origination fees and discounts (includes acquired loans and PPP loans) | | | | $ | 3,057 | | |
| | | | Estimate of fair value related to credit | | | | | (19,939) | | |
| | | | Estimate of fair value related to liquidity/interest rates | | | | | (62,244) | | |
| | | | Total pro forma adjustments | | | | $ | (79,126) | | |
| (I) | | | Adjustments to other assets: | | | | | | | |
| | | | Deferred taxes on acquisition adjustments | | | | $ | 16,365 | | |
| | | | Deferred taxes on core deposit intangible | | | | | (12,890) | | |
| | | | Tax impact of the merger-related expenses included in (L) below | | | | | 3,697 | | |
| | | | Total pro forma adjustments | | | | $ | 7,172 | | |
| (I) | | | Adjustments to other assets: | | | | |
| | | | Deferred taxes on acquisition adjustments | | | $ 16,365 | |
| | | | Deferred taxes on core deposit intangible | | | (12,890) | |
| | | | Tax impact of the merger-related expenses included in (L) below | | | 3,697 | |
| | | | Total pro forma adjustments | | | $ 7,172 | |
| (K) | | | Adjustments to borrowings: | | | | | |||
| | | | Fair value adjustment for TCFC’s subordinated debt and trust preferred securities | | | $ | | |||
| | | | Effective settlement of pre-existing debt | | | | ||||
| | | | Total pro forma adjustments | | | $ (3,037) | |
| | Represents one-time merger expenses: | | | | | ||
| | | | Contract Termination/Conversion | | | $ 4,428 | |
| | | | Personnel | | | 3,939 | |
| | | | Professional Fees | | | 4,712 | |
| | | | Other Integration | | | 1,142 | |
| | | | Total pro forma adjustments | | | $ 14,221 | |
| (L) | | | Represents one-time merger expenses: | | | | | | | |
| | | | Contract Termination/Conversion | | | | $ | 4,428 | | |
| | | | Personnel | | | | | 3,939 | | |
| | | | Professional Fees | | | | | 4,712 | | |
| | | | Other Integration | | | | | 1,142 | | |
| | | | Total pro forma adjustments | | | | $ | 14,221 | | |
| (M) | | | Adjustments to common stock: | | | | | | | |
| | | | To reflect elimination of TCFC’s historical common stock | | | | $ | (56) | | |
| | | | To reflect issuance of SHBI common stock consideration at par value | | | | | 132 | | |
| | | | Total pro forma adjustments | | | | $ | 76 | | |
| (N) | | | Adjustments to paid in capital: | | | | | | | |
| | | | To reflect elimination of TCFC’s historical additional paid in capital | | | | $ | (97,986) | | |
| | | | To reflect issuance of SHBI common stock consideration in excess of par value and exchange TCFC restricted stock for SHBI restricted stock units | | | | | 190,085 | | |
| | | | Total pro forma adjustments | | | | $ | 92,099 | | |
| (M) | | | Adjustments to common stock: | | | | |
| | | | To reflect elimination of TCFC’s historical common stock | | | $ (56) | |
| | | | To reflect issuance of SHBI common stock consideration at par value | | | 132 | |
| | | | Total pro forma adjustments | | | $ 76 | |
| (N) | | | Adjustments to paid in capital: | | | | |
| | | | To reflect elimination of TCFC’s historical additional paid in capital | | | $(97,986) | |
| | | | To reflect issuance of SHBI common stock consideration in excess of par value and exchange TCFC restricted stock for SHBI restricted stock units | | | 177,278 | |
| | | | Total pro forma adjustments | | | $ 79,292 | |
| (O) | | | Adjustments to retained earnings: | | | | | |||
| | | | To reflect elimination of TCFC’s historical retained earnings | | | $ | | |||
| | | | To reflect bargain purchase gain | | | | ||||
| | | | To reflect the estimated merger expenses, net of taxes | | | | ||||
| | | | Total pro forma adjustments | | | $ | |
| Purchase Price: | | | | | | | | | | | | Purchase Price: | | | | | | | | | | | | ||||
| SHBI common stock paid at closing price of $14.41 as of April 6, 2023(1) | | | | | | | | $ | 189,542 | | | SHBI common stock paid at closing price of $13.39 as of May 2, 2023(1) | | | | | | | | $ | 176,775 | | | ||||
| Effective settlement of pre-existing debt(2) | | | | | | | | | 500 | | | Effective settlement of pre-existing debt(2) | | | | | | | | | 500 | | | ||||
| Estimated fair value of converted restricted stock units(3) | | | | | | | | | 675 | | | Estimated fair value of converted restricted stock units(3) | | | | | | | | | 635 | | | ||||
| Total pro forma purchase price | | | | | | | | $ | 190,717 | | | Total pro forma purchase price | | | | | | | | $ | 177,910 | | | ||||
| Fair value of assets acquired: | | | | | | | | | | | | Fair value of assets acquired: | | | | | | | | | | | | ||||
| Cash and cash equivalents | | | $ | 25,473 | | | | | | | | Cash and cash equivalents | | | $ | 25,473 | | | | | | | | ||||
| Total securities | | | | 471,823 | | | | | | | | Total securities | | | | 471,823 | | | | | | | | ||||
| Loans, net | | | | 1,742,281 | | | | | | | | Loans, net | | | | 1,742,281 | | | | | | | | ||||
| Premises and equipment | | | | 29,917 | | | | | | | | Premises and equipment | | | | 29,917 | | | | | | | | ||||
| Core deposit intangible | | | | 50,210 | | | | | | | | Core deposit intangible | | | | 50,210 | | | | | | | | ||||
| Other assets | | | | 84,352 | | | | | | | | Other assets | | | | 84,352 | | | | | | | | ||||
| Total assets | | | $ | 2,404,056 | | | | | | | | Total assets | | | $ | 2,404,056 | | | | | | | | ||||
| Fair value of liabilities assumed: | | | | | | | | | | | | Fair value of liabilities assumed: | | | | | | | | | | | | ||||
| Deposits | | | | 2,080,867 | | | | | | | | Deposits | | | | 2,080,867 | | | | | | | | ||||
| Total debt | | | | 107,529 | | | | | | | | Total debt | | | | 107,529 | | | | | | | | ||||
| Other liabilities | | | | 23,427 | | | | | | | | Other liabilities | | | | 23,427 | | | | | | | | ||||
| Total liabilities | | | $ | 2,211,823 | | | | | | | | Total liabilities | | | $ | 2,211,823 | | | | | | | | ||||
| Net assets acquired | | | | | | | | $ | 192,233 | | | Net assets acquired | | | | | | | | $ | 192,233 | | | ||||
| Preliminary pro forma bargain purchase gain | | | | | | | | $ | (1,516) | | | Preliminary pro forma bargain purchase gain | | | | | | | | $ | (14,323) | | |
| | Purchase Price | | Estimated Goodwill/(Bargain Purchase Gain) | | | Purchase Price | | Estimated Goodwill/(Bargain Purchase Gain) | | ||||||||||||||||
Up 20% | | | $ | 228,734 | | | | $ | 36,501 | | | | | $ | 213,419 | | | | $ | 21,186 | | | ||||
Up 10% | | | $ | 209,726 | | | | $ | 17,493 | | | | | $ | 195,566 | | | | $ | 3,432 | | | ||||
As presented in pro forma | | | $ | 190,717 | | | | $ | (1,516) | | | | | $ | 177,910 | | | | $ | (14,323) | | | ||||
Down 10% | | | $ | 171,709 | | | | $ | (20,524) | | | | | $ | 160,156 | | | | $ | (32,077) | | | ||||
Down 20% | | | $ | 152,700 | | | | $ | (39,533) | | | | | $ | 142,402 | | | | $ | (49,831) | | |
| | | Increase (Decrease) to Pre-Tax Earnings | | |||||||||||||||||||||||||||
| | | Year 1 | | | Year 2 | | | Year 3 | | | Year 4 | | | Year 5 | | |||||||||||||||
Loans | | | | $ | 9,198 | | | | | $ | 7,792 | | | | | $ | 6,922 | | | | | $ | 5,899 | | | | | $ | 5,214 | | |
Core Deposit Intangible | | | | | (9,503) | | | | | | (8,507) | | | | | | (7,511) | | | | | | (6,515) | | | | | | (5,519) | | |
Subordinated debt & Trust Preferred | | | | | (508) | | | | | | (520) | | | | | | (458) | | | | | | (111) | | | | | | (112) | | |
Fair value on bank premises and equipment | | | | | (221) | | | | | | (221) | | | | | | (221) | | | | | | (221) | | | | | | (221) | | |
Time deposits | | | | | (5,241) | | | | | | (1,460) | | | | | | (670) | | | | | | (179) | | | | | | (46) | | |
| Shore Bancshares, Inc. | | | Alliance Advisors | |
| 18 E. Dover St. | | | 200 Broadacres Drive | |
| Easton, Maryland 21601 | | | 3rd Floor | |
| (410) 763-7800 | | | Bloomfield, NJ 07003 | |
| Attention: Investor Relations | | | Toll-Free: (855) 742-8276 | |
| | | | E-mail: SHBI@allianceadvisors.com | |
| The Community Financial Corporation | | | Alliance Advisors | |
| 3035 Leonardtown Road | | | 200 Broadacres Drive | |
| Waldorf, Maryland | | | 3rd Floor | |
| (301) 645-5601 | | | Bloomfield, NJ 07003 | |
| Attention: Investor Relations | | | Toll-Free: (866) 584-0578 | |
| | | | E-mail: TCFC@allianceadvisors.com | |
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| Name of Shareholder | | | Shares of TCFC Common Stock Beneficially Owned | |
| Name of Shareholder | | | Shares of SHBI Common Stock Beneficially Owned | |
| ATTEST: | | | SHORE BANCSHARES, INC. | | |||
| Name: Title: | | | By: | | | Name: Lloyd L. Beatty, Jr. Title: President and Chief Executive Officer | |
| ATTEST: | | | THE COMMUNITY FINANCIAL CORPORATION | | |||
| Name: Title: | | | By: | | | Name: James M. Burke Title: President and Chief Executive Officer | |
| Exhibit No. | | | Exhibit | |
| 2.1 | | | | |
| 3.1 | | | | |
| 3.2 | | | | |
| 3.3 | | | | |
| 3.4 | | | | |
| 4.1 | | | | |
| 5.1 | | | | |
| 8.1 | | | † | |
| 8.2 | | | | |
| 21.1 | | | | |
| 23.1 | | | | |
| 23.2 | | | | |
| 23.3 | | | Consent of Holland & Knight LLP (included in Exhibits 5.1 and | |
| 23.4 | | | | |
| 24.1 | | | † | |
| 99.1 | | | † | |
| 99.2 | | | † | |
| 99.3 | | | Form of proxy for the special meeting of shareholders of Shore Bancshares, Inc. | |
| 99.4 | | | | |
| 99.5 | | | | |
| 99.6 | | | ||
| |||||
| 107 | | | |
| | | | SHORE BANCSHARES, INC. | | |||
| | | | By: | | | /s/ LLOYD L. BEATTY, JR. Lloyd L. Beatty, Jr. President and Chief Executive Officer | |
| Name | | | Title | | | Date | |
| /s/ Lloyd L. Beatty, Jr. Lloyd L. Beatty, Jr. | | | President and Chief Executive Officer (Principal Executive Officer) | | | | |
| /s/ Vance W. Adkins Vance W. Adkins | | | Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) | | | | |
| Alan J. Hyatt | | | Chairman of the Board of Directors | | | | |
| Blenda W. Armistead | | | Director | | | | |
| James A. Judge | | | Director | | | | |
| David W. Moore | | | Director | | | | |
| * R. Michael Clemmer, Jr. | | | Director | | | May 4, 2023 | |
| * Clyde V. Kelly, III | | | Director | | | May 4, 2023 | |
| * Jeffrey E. Thompson | | | Director | | | May 4, 2023 | |
| * William E. Esham, III | | | Director | | | May 4, 2023 | |
| Name | | | Title | | | Date | |
| ||||||||
Dawn M. Willey | | | Director | | | | ||
| Frank E. Mason, III | | | Director | | | | |
| David S. Jones | | | Director | | | | |
| John A. Lamon, III | | | Director | | | | |
| Konrad M. Wayson | | | Director | | | | |
| Esther A. Streete | | | Director | | | |
| * By: | | | /s/ LLOYD L. BEATTY | |
| | | | Lloyd L. Beatty Attorney in Fact | |