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About Us - Annual Message

Annual Message

First Shore Federal continued to build on its legacy of financial strength, service and progress during 2017.  And we are encouraged by the prospect of economic growth and progress for 2018.

As the association enters its 65th year of service to our community, First Shore does so with total capital of more than $44.7 million and a net worth ratio of 15.12%.  Both of these key measures are at record levels, continuing the positive trends of many years.  An exhibit demonstrating that performance is displayed in the attached chart.

Net income exceeded $1.5 million for 2017, a solid performance which was impacted by a one-time cost resulting from the passage of the federal tax reform act in December.  Like many financial institutions and other businesses, First Shore held tax deferred assets (TDA) which were required to be written down to current value by the legislation.  While this adjustment reduced net income for the year, the association will very likely recover, and in fact more than offset, those costs over the next several years with the lower tax rates provided in the law.

The association grew in a variety of important areas.  New loans originated totaled more than $37.2 million, an increase of nearly 13% over 2016 loan originations.  The association achieved strong growth in key areas of our loan portfolio including commercial loans, equity loans, manufactured housing and mobile home loans.  Growth was also realized in share loans or loans secured by certificates of deposit.

Martin T Neat
President, Martin T. Neat

Interest rates remained very low throughout 2017.  While this economic environment is good for borrowers, it is very difficult for customers who have savings and certificates of deposit.  That's why we are heartened to see the Federal Reserve Board continue to move in recent months to normalize interest rates.  Over the first quarter of 2018, those actions are impacting certificate of deposit and long term loan rates.  It's an environment which is more fitting for growth by an institution such as First Shore Federal and we are encouraged by the prospect of a strong year.

We were pleased, therefore, to announce the increase of rates on several of our certificate of deposits during the past several months.  In the meantime, our rates for mortgages and equity loans continue to be very competitive.  And we continue to expand our service to businesses with our enhanced commercial loan offerings.

First Shore Federal uses an advertising theme of "Community Minded - Just Like You."  The association has been a leading community citizen for many years, holding a rating of "Outstanding" for community reinvestment from our federal regulators for nearly two decades.

As we enter our 65th year of service to the Lower Shore of Delmarva, we do so with a continued sense of enthusiasm and commitment to our community and our members.  We will continue to expand our services and make improvements to the association's branches, products and service.

We will also continue to evolve and to invest in technology and services that will meet our customers' needs while being safe and profitable for the association.

We enter 2018 with good operating margins, the strongest capital position in our history, an appropriate reserve for any loan problems that do arise, an excellent reputation in the communities we serve, a dedicated and experienced staff and a continued commitment to customer service and to making First Shore the best it can be. 

We thank our employees for their dedication, our outstanding board of directors for its wisdom, oversight and direction, and our valued customers, our members, for their confidence and support of First Shore Federal.

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First Shore Federal | 106 S. Division St., Salisbury MD 21801 | 410-546-1101
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