The board at Shore Bancshares (SHBI) of Easton, Md., has voted to suspend its one cent per share quarterly cash dividend following its $3 million loss in the first quarter.
The $1.1 billion-asset company said in a regulatory filing Friday that it was following guidance outlined in a supervisory letter adopted by the Federal Reserve Board. It is recommended that a bank holding company eliminate or reduce dividends if the company's net income available to stockholders for the past four quarters is not sufficient to fully fund future dividends.
Since 2010, the company has lost roughly $5.6 million, mostly on soured real estate loans. The company charged off $9.1 million of loans in the first quarter, nearly triple its level of chargeoffs in the same period last year.