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Shore Bancshares, Inc. Reports 2024 Fourth Quarter and Annual Results

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Shore Bancshares (NASDAQ: SHBI) reported strong financial results for Q4 and full-year 2024. Q4 net income reached $13.3 million ($0.40 per diluted share), up from $11.2 million in Q3 2024 and $10.5 million in Q4 2023. Full-year 2024 net income was $43.9 million ($1.32 per diluted share), significantly higher than 2023's $11.2 million.

Key Q4 highlights include improved Return on Average Assets (ROAA) at 0.86%, increased net interest income to $44.0 million, and lower funding costs. Asset quality metrics showed nonperforming assets at 0.40% of total assets. The efficiency ratio improved to 64.21% from 67.49% in Q3.

Total assets reached $6.23 billion as of December 31, 2024, with total deposits increasing by $142.2 million to $5.53 billion year-over-year. The bank maintained strong capital ratios with Tier 1 and Total Risk-Based Capital Ratios at 10.06% and 12.18% respectively.

Shore Bancshares (NASDAQ: SHBI) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. L'utile netto del quarto trimestre ha raggiunto 13,3 milioni di dollari (0,40 dollari per azione diluita), in aumento rispetto agli 11,2 milioni di dollari del terzo trimestre 2024 e ai 10,5 milioni di dollari del quarto trimestre 2023. L'utile netto dell'intero anno 2024 è stato di 43,9 milioni di dollari (1,32 dollari per azione diluita), significativamente superiore agli 11,2 milioni di dollari del 2023.

Tra i principali risultati del quarto trimestre ci sono un miglioramento del Rendimento medio degli attivi (ROAA) al 0,86%, un aumento del reddito netto da interessi a 44,0 milioni di dollari e costi di finanziamento più bassi. Le metriche della qualità degli attivi hanno mostrato attivi non performanti all'0,40% del totale degli attivi. Il rapporto di efficienza è migliorato al 64,21% rispetto al 67,49% del terzo trimestre.

Il totale degli attivi ha raggiunto 6,23 miliardi di dollari al 31 dicembre 2024, con i depositi totali che sono aumentati di 142,2 milioni di dollari a 5,53 miliardi di dollari rispetto all'anno precedente. La banca ha mantenuto solidi rapporti di capitale con i rapporti di Capitale di livello 1 e Capitale totale basato sul rischio rispettivamente al 10,06% e 12,18%.

Shore Bancshares (NASDAQ: SHBI) informó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. El ingreso neto del cuarto trimestre alcanzó 13.3 millones de dólares (0.40 dólares por acción diluida), un aumento respecto a los 11.2 millones de dólares en el tercer trimestre de 2024 y 10.5 millones de dólares en el cuarto trimestre de 2023. El ingreso neto del año completo 2024 fue de 43.9 millones de dólares (1.32 dólares por acción diluida), significativamente más alto que los 11.2 millones de dólares de 2023.

Los puntos destacados del cuarto trimestre incluyen una mejora en el Retorno sobre Activos Promedio (ROAA) al 0.86%, un incremento en el ingreso neto por intereses a 44.0 millones de dólares y costos de financiamiento más bajos. Los indicadores de calidad de activos mostraron activos no productivos en el 0.40% del total de activos. La relación de eficiencia mejoró al 64.21% desde el 67.49% en el tercer trimestre.

Los activos totales alcanzaron 6.23 mil millones de dólares al 31 de diciembre de 2024, con depósitos totales que aumentaron en 142.2 millones de dólares hasta 5.53 mil millones de dólares en comparación con el año anterior. El banco mantuvo sólidos ratios de capital con los ratios de Capital de Nivel 1 y de Capital Total Basado en Riesgo en 10.06% y 12.18% respectivamente.

Shore Bancshares (NASDAQ: SHBI)는 2024년 4분기 및 전체 연도의 강력한 재무 결과를 보고했습니다. 4분기 순이익은 1,330만 달러 (희석 주당 0.40달러)에 달하며, 2024년 3분기의 1,120만 달러 및 2023년 4분기의 1,050만 달러에서 증가했습니다. 2024년 전체 연도의 순이익은 4,390만 달러 (희석 주당 1.32달러)로, 2023년의 1,120만 달러보다 훨씬 증가했습니다.

4분기의 주요 하이라이트로는 평균 자산 수익률(ROAA)이 0.86%로 개선되었고, 순이자 수익이 4,400만 달러로 증가했으며, 자금 조달 비용이 감소했습니다. 자산 품질 지표는 부실 자산이 총 자산의 0.40%에 해당한다고 보여주었습니다. 효율성 비율은 3분기 67.49%에서 64.21%로 개선되었습니다.

2024년 12월 31일 기준 총 자산은 62억 3천만 달러에 달하며, 연간 총 예금은 1억 4,220만 달러 증가하여 55억 3천만 달러에 달했습니다. 은행은 1단계 자본 비율과 총 위험 기반 자본 비율이 각각 10.06%와 12.18%로 강력한 자본 비율을 유지했습니다.

Shore Bancshares (NASDAQ: SHBI) a rapporté des résultats financiers solides pour le quatrième trimestre et l'année complète 2024. Le bénéfice net du quatrième trimestre a atteint 13,3 millions de dollars (0,40 dollar par action diluée), en hausse par rapport à 11,2 millions de dollars au troisième trimestre 2024 et 10,5 millions de dollars au quatrième trimestre 2023. Le bénéfice net pour l'année complète 2024 s'élevait à 43,9 millions de dollars (1,32 dollar par action diluée), bien au-dessus des 11,2 millions de dollars de 2023.

Les points forts du quatrième trimestre incluent une amélioration du retour sur actifs moyens (ROAA) à 0,86 %, une augmentation du revenu net d'intérêts à 44,0 millions de dollars et des coûts de financement réduits. Les indicateurs de qualité des actifs ont montré que les actifs non performants représentaient 0,40 % des actifs totaux. Le ratio d'efficacité s'est amélioré à 64,21 % contre 67,49 % au troisième trimestre.

Les actifs totaux ont atteint 6,23 milliards de dollars au 31 décembre 2024, avec des dépôts totaux augmentant de 142,2 millions de dollars à 5,53 milliards de dollars d'une année sur l'autre. La banque a maintenu des ratios de capital solides avec des ratios de capital de niveau 1 et de capital total basé sur les risques respectivement de 10,06 % et 12,18 %.

Shore Bancshares (NASDAQ: SHBI) berichtete über starke finanzielle Ergebnisse für das 4. Quartal und das Gesamtjahr 2024. Der Nettoertrag des 4. Quartals erreichte 13,3 Millionen Dollar (0,40 Dollar pro verwässerter Aktie), ein Anstieg im Vergleich zu 11,2 Millionen Dollar im 3. Quartal 2024 und 10,5 Millionen Dollar im 4. Quartal 2023. Der Nettoertrag für das Gesamtjahr 2024 betrug 43,9 Millionen Dollar (1,32 Dollar pro verwässerter Aktie), was deutlich über den 11,2 Millionen Dollar von 2023 liegt.

Wichtige Höhepunkte des 4. Quartals sind eine verbesserte Rendite auf durchschnittliche Vermögenswerte (ROAA) von 0,86%, ein Anstieg der Nettozinseinnahmen auf 44,0 Millionen Dollar und geringere Finanzierungskosten. Die Kennzahlen zur Vermögensqualität zeigten, dass nicht leistungsfähige Vermögenswerte 0,40 % der gesamten Vermögenswerte ausmachten. Die Effizienzquote verbesserte sich von 67,49 % im 3. Quartal auf 64,21 %.

Die Gesamtsumme der Vermögenswerte betrug am 31. Dezember 2024 6,23 Milliarden Dollar, wobei die Gesamteinlagen im Jahresvergleich um 142,2 Millionen Dollar auf 5,53 Milliarden Dollar zunahmen. Die Bank hielt starke Kapitalquoten mit einem Tier-1- und einem gesamten risikobasierten Kapitalverhältnis von 10,06 % bzw. 12,18 %.

Positive
  • Net income increased 18.8% QoQ to $13.3 million in Q4 2024
  • Full-year net income grew significantly to $43.9 million from $11.2 million in 2023
  • Net interest income rose to $44.0 million in Q4 2024
  • Efficiency ratio improved to 64.21% from 67.49% in Q3 2024
  • Total assets grew 3.66% YoY to $6.23 billion
Negative
  • Net interest margin decreased to 3.03% from 3.17% in Q3 2024
  • Nonperforming assets increased to 0.40% of total assets from 0.27% in Q3 2024
  • Classified assets rose to 0.45% from 0.39% in Q3 2024

Insights

Shore Bancshares delivered an impressive performance in Q4 2024, marked by substantial earnings growth and improved operational efficiency. The 26.8% quarterly increase in net income to $13.3 million was driven by multiple factors including enhanced net interest income, lower credit provisions and improved noninterest income.

Several key strengths emerge from the results: First, the bank's funding profile remains robust with noninterest-bearing deposits showing stability and successful deposit relationship management leading to a 15 bps reduction in interest-bearing deposit costs. The total available liquidity of $1.47 billion provides ample flexibility for future growth.

Credit quality metrics warrant attention but remain manageable. While nonperforming assets increased to 0.40% of total assets from 0.27% in Q3, the allowance for credit losses at 1.21% of loans provides adequate coverage. The bank's office CRE exposure (10.60% of total loans) shows prudent risk management with 74.88% secured by properties in rural/suburban areas and strong average debt-service coverage of 1.9x.

The improvement in core net interest margin to 2.85% despite competitive deposit pressures demonstrates effective balance sheet management. The efficiency ratio enhancement to 64.21% from 67.49% in Q3 reflects successful cost control measures and improving operating leverage.

EASTON, Md., Jan. 30, 2025 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United Bank, N.A. (the "Bank") reported net income for the fourth quarter of 2024 of $13.3 million, or $0.40 per diluted common share, compared to net income of $11.2 million, or $0.34 per diluted common share, for the third quarter of 2024, and net income of $10.5 million, or $0.31 per diluted common share, for the fourth quarter of 2023. Net income for the fiscal year of 2024 was $43.9 million, or $1.32 per diluted common share, compared to net income for the fiscal year of 2023 of $11.2 million, or $0.42 per diluted common share.

Fourth Quarter and Full-Year 2024 Highlights

  • Improving Return on Average Assets ("ROAA") - The Company reported ROAA of 0.86% for the fourth quarter of 2024, compared to 0.77% for the third quarter of 2024 and 0.72% for the fourth quarter of 2023. Non–U.S. generally accepted accounting principles ("GAAP") ROAA([1]) was 0.94% for the fourth quarter of 2024, compared to 0.90% for the third quarter of 2024 and 0.88% for the fourth quarter of 2023.
  • Increased Net Income - Net income for the fourth quarter of 2024 increased $2.1 million to $13.3 million from $11.2 million in the third quarter of 2024. Net income increased due to higher net interest income, a lower provision for loan losses, and higher noninterest income driven by higher mortgage servicing valuations and increased income from the sale of assets held for sale. Net income for the fiscal year of 2024 increased $32.7 million to $43.9 million from $11.2 million for the fiscal year of 2023.
  • Net Interest Income ("NII") and Net Interest Margin ("NIM") - NII for the fourth quarter of 2024 increased $748 thousand to $44.0 million from $43.3 million for the third quarter of 2024. NII increased due to a $363.1 million increase in average interest-earning assets, funded by a seasonal increase in municipal deposits. NIM decreased 14 basis points ("bps") to 3.03% during the fourth quarter of 2024 from 3.17% in the third quarter of 2024, due to less net accretion interest income. NIM, excluding net accretion interest ("core NIM"), increased to 2.85% in the fourth quarter of 2024 from 2.84% in the third quarter of 2024 as loan yields and deposit costs declined at similar rates during the quarter.
  • Improved Funding Costs - Fourth quarter funding costs declined by 7 bps from the third quarter of 2024 supported by stable noninterest-bearing deposits and continued active management of deposit relationships, which resulted in a 15 bps decline in the cost of interest-bearing deposits. The decrease was partially offset by seasonal increase of approximately $300 million of higher cost time and municipal deposits.
  • Asset Quality - Nonperforming assets to total assets were 0.40% for the fourth quarter of 2024, compared to 0.27% for the third quarter of 2024 and 0.23% for the fourth quarter of 2023. Classified assets to total assets were 0.45% in the fourth quarter of 2024, compared to 0.39% for the third quarter of 2024 and increased compared to 0.25% for the fourth quarter of 2023. The allowance for credit losses ("ACL") was $57.9 million at December 31, 2024 compared to $58.7 million at September 30, 2024. The ACL as a percentage of loans decreased to 1.21% for the fourth quarter of 2024, compared to 1.24% for the third quarter of 2024.
  • Improved Operating Leverage - The efficiency ratio for the fourth quarter of 2024 was 64.21% when compared to 67.49% in the third quarter of 2024 and 68.61% for the fourth quarter of 2023. The non-GAAP efficiency ratio(1) for the fourth quarter of 2024 was 60.28%, compared to 62.10% for the third quarter of 2024 and 61.99% for the fourth quarter of 2023.

"Increasing net interest income, lower credit provisions and higher noninterest income supported net income growth in the fourth quarter," stated James ("Jimmy") M. Burke, President and Chief Executive Officer of Shore Bancshares, Inc. "Funding costs decreased due to stable noninterest-bearing deposits and lower rates on interest-bearing deposits. Although we saw a $300 million increase in higher cost seasonal municipal deposits, core NIM increased one bp to 2.85% during the fourth quarter. Overall credit in our loan portfolios remains stable and economic activity in our markets is strong. We continue to focus on controlling expenses to enhance operating leverage and improve our operating efficiency."

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(1) See the Reconciliation of GAAP and non-GAAP Measures tables.

Balance Sheet Review

Total assets were $6.23 billion at December 31, 2024, an increase of $219.8 million, or 3.66%, when compared to $6.01 billion at December 31, 2023. The aggregate increase was primarily due to increases in loans held for investment of $131.0 million, cash and cash equivalents of $87.4 million and investment securities available for sale of $38.7 million, partially offset by a decrease in investments held to maturity of $32.1 million. The ratio of the ACL to total loans decreased to 1.21% at December 31, 2024, compared to 1.24% at December 31, 2023.

The Company's tangible common equity ratio at December 31, 2024 was 7.17%, compared to 6.78% at December 31, 2023. The Company's Tier 1 and Total Risk-Based Capital Ratios at December 31, 2024 were 10.06% and 12.18%, respectively. The Bank's Tier 1 and Total Risk-Based Capital Ratios at December 31, 2024 were 10.75% and 11.97%, respectively. Non-owner occupied commercial real estate ("CRE") loans as a percentage of the Bank's Tier 1 Capital + ACL at December 31, 2024 and December 31, 2023 were $2.08 billion or 359.52%, and $2.02 billion or 382.57%, respectively. Non owner-occupied construction loans as a percentage of the Bank's Tier 1 Capital + ACL at December 31, 2024 and December 31, 2023 were $336.0 million or 57.99%, and $299.0 million or 56.68%, respectively.

CRE loans at December 31, 2024 were $2.56 billion compared to $2.54 billion at December 31, 2023. The following table provides stratification of the classes of CRE loans at December 31, 2024.



December 31, 2024



Owner Occupied


Non-Owner Occupied

 ($ in thousands)


Average
LTV(1)


Average
Loan Size


Loan
Balance(2)


Average LTV
(1)


Average
Loan Size


Loan
Balance(2)

Office, medical


45.20 %


$                604


$          32,617


52.07 %


$             1,894


$        106,040

Office, govt. or govt. contractor


51.80


642


5,133


57.09


2,934


49,872

Office, other


49.28


492


97,403


48.71


1,279


214,915

Office, total


48.54


520


135,153


49.30


1,010


370,827

Retail


50.35


601


63,696


49.38


2,391


447,038

Multi-family (5+ units)


—


—


—


54.93


2,248


265,278

Motel/hotel


—


—


—


43.85


4,161


212,216

Industrial/warehouse


48.43


650


100,731


49.03


1,454


200,623

Commercial-improved


42.16


967


163,405


48.58


1,338


179,254

Marine/boat slips


31.40


1,967


59,005


40.05


2,235


15,643

Restaurant


49.06


1,024


58,347


48.26


1,034


47,553

Church


34.98


886


64,661


13.56


2,421


2,421

Land/lot loans


53.74


913


913


49.95


274


94,245

Other


39.80


1,089


81,655


62.90


590


247,857

Total CRE loans, gross(3)


44.39


786


$        727,566


51.55


1,235


$     2,082,955



(1)

Loan-to-value ("LTV") is determined based on latest available appraisal against current bank owned principal. Loans without an updated appraisal utilized the original transaction value.

(2)

Loan balance includes deferred fees and costs.

(3)

CRE loans include land and construction.

The Bank's office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $506.0 million, or 10.60% of total loans of $4.77 billion, at December 31, 2024. The Bank's office CRE loan portfolio included medical tenants of $138.7 million, or 27.40% of the total office CRE loan portfolio, at December 31, 2024. The Bank's office CRE loan portfolio also included government or government contractor tenants of $55.0 million, or 10.87% of the total office CRE loan portfolio, at December 31, 2024.

There were 501 loans in the office CRE portfolio with an average and median loan size of $1.0 million and $375 thousand, respectively. LTV estimates for the office CRE portfolio at December 31, 2024 are summarized below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination.

LTV Range ($ in thousands)


Loan Count


 Loan Balance


% of Total CRE

Less than or equal to 50%


246


$                    182,284


36.00 %

50%-60%


78


114,723


22.70

60%-70%


91


119,089


23.50

70%-80%


74


80,224


15.90

Greater than 80%


12


9,660


1.90

Grand Total


501


$                    505,980


100.00 %

The Bank had 18 office CRE loans totaling $164.5 million with balances greater than $5.0 million at December 31, 2024, compared to 24 office CRE loans totaling $189.8 million at December 31, 2023. The decrease in this portfolio segment was the result of normal amortization and one loan payoff totaling $10.4 million, and adjustments totaling $13.9 million to exclude non-bank-owned participation balances. At December 31, 2024, the average loan debt-service coverage ratio was 1.9x and the average LTV was 49.30%. Of the office CRE portfolio balance, 74.88% was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.05% was secured by properties with five stories or less. Of the office CRE loans, $2.3 million were classified as special mention or substandard at December 31, 2024. The Bank did not have any charge-offs related to the office CRE portfolio during 2024.

At December 31, 2024 and September 30, 2024, nonperforming assets were $24.8 million, or 0.40% of total assets and $15.8 million, or 0.27% of total assets, respectively. The balance of nonperforming assets increased $9.0 million, primarily due to a commercial real estate nonaccrual loan and an increase in repossessed marine assets of $3.0 million. When comparing December 31, 2024 to December 31, 2023, nonperforming assets increased $11.1 million, primarily due to an increase in nonaccrual loans of $8.2 million and an increase in repossessed marine loans of $3.3 million, almost entirely impacted by the merger with The Community Financial Corporation ("TCFC") in the third quarter of 2023.

Total deposits increased $142.2 million, or 2.64%, to $5.53 billion at December 31, 2024 when compared to December 31, 2023. The increase in total deposits was primarily due to increases in noninterest-bearing deposits of $304.8 million and money market and savings deposits of $28.0 million. These increases were partially offset by decreases in interest-bearing checking deposits of $187.5 million and time deposits of $3.0 million. The increase in noninterest-bearing and overall deposits was due to the Bank's focus on customer acquisition and retention with superior customer service. During the second quarter of 2024, the Company reclassified $399.4 million of demand deposits, which carried an average rate of 4 bps, to noninterest-bearing deposits.

Total funding, which includes customer deposits, Federal Home Loan Bank ("FHLB") advances and brokered deposits was $5.58 billion at December 31, 2024, compared to $5.28 billion at September 30, 2024 and $5.39 billion at December 31, 2023. The Bank had a $50.0 million FHLB advance at December 31, 2024 and at September 30, 2024, compared to zero at December 31, 2023. The advance consisted of an 18-month Bermuda Convertible note of $50.0 million. The Bank had zero brokered deposits at December 31, 2024 and at September 30, 2024, compared to $19.4 million at December 31, 2023. Total reciprocal deposits were $1.65 billion at December 31, 2024 and $1.29 billion at September 30, 2024 and at December 31, 2023. 

The Bank's uninsured deposits were $905.3 million, or 16.38% of total deposits, at December 31, 2024. The Bank's uninsured deposits, excluding deposits secured with pledged collateral, were $745.1 million, or 13.48% for same period. At December 31, 2024, the Bank had approximately $1.47 billion of available liquidity, including $459.9 million in cash and cash equivalents, $1.01 billion in secured borrowing capacity at the FHLB and other correspondent banks, and $95.0 million in unsecured lines of credit.

Total stockholders' equity increased $29.9 million, or 5.86%, when compared to December 31, 2023, primarily due to current year earnings, offset by cash dividends paid. As of December 31, 2024, the ratio of total equity to total assets was 8.68% and the ratio of total tangible equity to total tangible assets([2]) was 7.17%, compared to 8.50% and 6.78%, respectively, at December 31, 2023.

____________________________________

(1) See the Reconciliation of GAAP and non-GAAP Measures tables.

Review of Quarterly Financial Results

Net interest income was $44.0 million for the fourth quarter of 2024, compared to $43.3 million for the third quarter of 2024 and $41.5 million for the fourth quarter of 2023. The increase in net interest income when compared to the third quarter of 2024 was primarily due to the increase in interest income of $1.7 million, partially offset by an increase in interest expense of $967 thousand. The increase in net interest income of $2.5 million, when compared to the fourth quarter of 2023, was primarily due to increase in interest and fees on loans of $1.5 million and an increase in interest on deposits at other institutions of $2.9 million, partially offset by higher interest expense on deposits and long-term borrowings of $2.8 million.

The Company's net interest margin decreased to 3.03% for the fourth quarter of 2024 from 3.17% for the third quarter of 2024, primarily due to less net accretion interest income. Core NIM increased for the comparable periods from 2.84% to 2.85%. Excluding accretion interest, loan yields and funding costs decreased similarly at seven bps and nine bps, respectively, for the comparable periods. Interest expense for the fourth quarter of 2024 increased $967 thousand when compared to the third quarter of 2024. Money market and demand deposits repriced at favorable rates, and was partially offset by a large increase in seasonal higher rate municipal interest-bearing deposits. The Company's net interest margin decreased to 3.03% for the fourth quarter of 2024 from 3.09% for the fourth quarter of 2023. Comparing the fourth quarter of 2024 to the fourth quarter of 2023, the Company's interest-earning asset yields decreased 4 bps to 5.25% from 5.29%, while the cost of funds increased 6 bps to 2.31% from 2.25% for the same periods.

The provision for credit losses was $780 thousand for the three months ended December 31, 2024. The comparable amounts were $1.5 million for the three months ended September 30, 2024 and $896 thousand for the three months ended December 31, 2023. The decrease in the provision for credit losses for the fourth quarter of 2024 compared to the third quarter of 2024 was due to an improved economic outlook, partially offset by loan growth in the fourth quarter of 2024. Coverage ratios decreased to 1.21% at December 31, 2024, from 1.24% at September 30, 2024 and at December 31, 2023. Net charge-offs remained flat at $1.3 million for the fourth quarter of 2024 compared to the third quarter of 2024, and were $500 thousand for the fourth quarter of 2023.

Total noninterest income for the fourth quarter of 2024 was $8.9 million, an increase of $1.6 million from $7.3 million for the third quarter of 2024, and an increase of $1.3 million from $7.5 million for the fourth quarter of 2023. When comparing the fourth quarter of 2024 to the third quarter of 2024, the increase in noninterest income was primarily due to an increase in mortgage banking revenue of $849 thousand, driven by increased mortgage servicing activity and lower prepayment rates, and higher other noninterest income of $703 thousand resulting from the gain on sale of other assets held for sale. When comparing the fourth quarter of 2024 to the fourth quarter of 2023, the increase in noninterest income was primarily due to an increase in mortgage banking revenue of $921 thousand, driven by increased mortgage servicing activity and lower prepayment rates, and higher other noninterest income of $271 thousand resulting from the gain on sale of other assets held for sale.

Total noninterest expense of $33.9 million for the fourth quarter of 2024 decreased $171 thousand compared to the third quarter of 2024 expense of $34.1 million, and increased $273 thousand compared to the fourth quarter of 2023 expense of $33.7 million. The decrease from the third quarter of 2024 was primarily due to the absence of the one-time data processing costs related to the fraud incident in the first quarter of 2024 and other fraud expenses incurred in the third quarter of 2024, partially offset by higher salaries and employee benefits for year end bonus accruals and an increase in occupancy related expenses. The increase from the fourth quarter of 2023 was primarily due to higher salaries and employee benefits and occupancy related expenses, partially offset by lower FDIC fees and amortization of intangible assets.

The efficiency ratio for the fourth quarter of 2024 when compared to the third quarter of 2024 and the fourth quarter of 2023 was 64.21%, 67.49% and 68.61%, respectively. Non-GAAP efficiency ratios([3]) for the same periods were 60.28%, 62.10% and 61.99%, respectively. The net operating expense ratio, which is noninterest expense less noninterest income divided by average assets, for the fourth quarter of 2024 was 1.62%, compared to 1.84% and 1.80% for the third quarter of 2024 and the fourth quarter of 2023, respectively. The non-GAAP net operating expense ratio(1), which excludes core deposit intangible amortization and non-recurring activity, was 1.50% for the fourth quarter of 2024, compared to 1.65% and 1.58% for the third quarter of 2024 and the fourth quarter of 2023, respectively.

____________________________________

(1) See the Reconciliation of GAAP and non-GAAP Measures tables.

Review of  Full-Year Financial Results

The Company merged with TCFC and its wholly-owned subsidiary Community Bank of the Chesapeake on July 1, 2023 (the "merger"). The merger added $2.4 billion in assets, $454.5 million in investments, $1.8 billion in loans, $2.0 billion in deposits, $150.6 million in brokered deposits, $69.0 million in FHLB advances and $32.0 million in subordinated debt and trust preferred debentures. The larger footprint has accelerated growth in income and has expanded the cost base. Fiscal year 2024 has the full impact of the newly combined company.

Net interest income for the year ended December 31, 2024 was $170.5 million, an increase of $35.2 million, or 26.05%, when compared to the year ended December 31, 2023. The increase in net interest income was primarily due to an increase in total interest income of $81.3 million, or 37.96%, which included an increase in interest and fees on loans of $75.3 million, or 38.74%. The increase in interest and fees on loans was primarily due to the increase in the average balance of loans of $1.08 billion, or 29.79%, and an increase in net accretion income of $5.1 million due to the merger. The increase in net interest income was partially offset by an increase in total interest expense of $46.0 million, or 58.42%, primarily due to increases in the cost of funds and the average balance of interest-bearing deposits of $749.2 million, or 25.09%. All of the increases in average balances were primarily due to the merger.

The Company's net interest margin decreased from 3.11% for the year ended December 31, 2023 to 3.10% for the year ended December 31, 2024. Margins were flat as more rapid increases in rates on interest-bearing liabilities were offset by increases in interest-earning asset yields and larger balances in noninterest-bearing deposits. The increases in the average balances and rates paid on interest-bearing deposits of $749.2 million and 79 bps, respectively, were partially offset by increases in  the average balance and yields earned on average earning assets of $1.16 billion and 44 bps, respectively. Additionally, margins were positively impacted as average balances of noninterest-bearing deposits increased $410.6 million, or 39.35%, from 24.86% of average funding for the year ended December 31, 2023 to 27.27% for the year ended December 31, 2024. Net accretion income impacted net interest margin by 27 bps and 21 bps for the years ended December 31, 2024 and 2023, respectively, which resulted in core NIMs of 2.83% and 2.90% for the same periods.

The provision for credit losses for the years ended December 31, 2024 and 2023 was $4.7 million and $31.0 million, respectively. The decrease in the provision for credit losses was due to higher levels of reserves required by the Company's CECL model for the acquired portfolio related to the merger in 2023. Net charge-offs for the year ended December 31, 2024 were $4.1 million, compared to $2.0 million for the year ended December 31, 2023.

Total noninterest income for the year ended December 31, 2024 decreased $2.0 million, or 6.07%, when compared to the same period in 2023. The decrease was primarily due to one-time bargain purchase gain of $8.8 million in the third quarter of 2023, partially offset by $2.2 million of losses on the sale of investment securities, which were both a direct result of the merger with TCFC in the third quarter of 2023. These were offset by increases in mortgage banking revenue, interchange fees and gain on sale of other assets

Total noninterest expense for the year ended December 31, 2024 increased $14.9 million, or 12.10%, when compared to the same period in 2023. Noninterest expense line items increased as a result of the $4.7 million credit card fraud event and the expanded operations of the newly-combined larger Company. There were no merger-related expenses and $4.7 million of credit card fraud losses for the fiscal year 2024, compared to $17.4 million of merger-related expenses and no fraud losses for the fiscal year 2023, respectively. The Company continues to focus on streamlining processes to unlock operational efficiencies and reduce the growth rate of noninterest expenses to increase operating leverage.

The efficiency ratio for the year ended December 31, 2024 was 68.55%, compared to 73.21% for the year ended December 31, 2023. Non-GAAP efficiency ratios for the same periods were 61.43% and 61.62%, respectively. The net operating expense ratio, which is noninterest expense less noninterest income divided by average assets, for the year ended December 31, 2024 was 1.82%, compared to 1.93% for the year ended December 31, 2023. The non-GAAP net operating expense ratio([4]), which excludes core deposit intangible amortization and non-recurring activity was 1.58% for the year ended December 31, 2024, compared to 1.57% for the year ended December 31, 2023.

____________________________________

(1) See the Reconciliation of GAAP and non-GAAP Measures tables.

Shore Bancshares Information

Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the parent company of Shore United Bank, N.A. Shore Bancshares engages in title work related to real estate transactions through its wholly-owned subsidiary, Mid-Maryland Title Company, Inc. and in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank, N.A. 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. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing war in Ukraine and the conflict in the Middle East; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; the impact of governmental efforts to restructure or adjust the U.S. financial regulatory system; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; the impact of recent or future changes in FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; the Company's ability to remediate the existing material weaknesses identified in its internal control over financial reporting; the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; and other factors that may affect our future results. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2023 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") and available at the SEC's Internet site (https://www.sec.gov).

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 By Quarter and Year (Unaudited)





























Q4 2024 vs.


Q4 2024 vs.


Year Ended December 31,

($ in thousands, except per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


Q3 2024


Q4 2023


2024


2023


2024 vs. 2023

PROFITABILITY FOR THE PERIOD





















Taxable-equivalent net interest income


$         44,093


$         43,345


$         42,222


$         41,214


$         41,606


1.73 %


5.98 %


$      170,874


$      135,560


26.05 %

Less: Taxable-equivalent adjustment


82


82


82


79


81


—


1.23


325


253


28.46

Net interest income


44,011


43,263


42,140


41,135


41,525


1.73


5.99


170,549


135,307


26.05

Provision for credit losses


780


1,470


2,081


407


896


(46.94)


(12.95)


4,738


30,953


(84.69)

Noninterest income


8,853


7,287


8,440


6,567


7,548


21.49


17.29


31,147


33,159


(6.07)

Noninterest expense


33,943


34,114


33,499


36,698


33,670


(0.50)


0.80


138,254


123,329


12.10

Income before income taxes


18,141


14,966


15,000


10,597


14,507


21.21


25.05


58,704


14,184


313.87

Income tax expense


4,859


3,777


3,766


2,413


4,017


28.65


20.96


14,815


2,956


401.18

Net income


$         13,282


$         11,189


$         11,234


$           8,184


$         10,490


18.71


26.60


$        43,889


$        11,228


290.89






















Return on average assets


0.86 %


0.77 %


0.77 %


0.57 %


0.72 %


              9 bp


             14 bp


0.74 %


0.24 %


              50 bp

Return on average assets excluding amortization of
intangibles, fraud losses and merger-related
expenses - non-GAAP (1), (2)


0.94


0.90


0.91


0.94


0.88


4


6


0.92


0.58


34

Return on average equity


9.82


8.41


8.70


6.38


8.21


141


161


8.35


2.54


581

Return on average tangible equity - non-GAAP (1), (2)


13.37


12.37


12.85


13.39


12.88


100


49


13.00


7.74


526

Interest rate spread


2.02


2.06


2.11


2.34


2.34


(4)


(32)


2.14


2.42


(28)

Net interest margin


3.03


3.17


3.11


3.08


3.09


(14)


(6)


3.10


3.11


(1)

Efficiency ratio - GAAP


64.21


67.49


66.23


76.93


68.61


(328)


(440)


68.55


73.21


(466)

Efficiency ratio - non-GAAP (1)


60.28


62.10


61.05


62.37


61.99


(182)


(171)


61.43


61.62


(19)

Noninterest income to average assets


0.57


0.50


0.58


0.46


0.52


7


5


0.53


0.71


(18)

Noninterest expense to average assets


2.19


2.34


2.31


2.56


2.33


(15)


(14)


2.34


2.64


(30)

Net operating expense to average assets - GAAP


1.62


1.84


1.73


2.10


1.80


(22)


(18)


1.82


1.93


(11)

Net operating expense to average assets - non-GAAP (1)


1.50


1.65


1.55


1.62


1.58


(15)


(8)


1.58


1.57


1






















PER SHARE DATA





















Basic net income per common share


$             0.40


$             0.34


$             0.34


$             0.25


$             0.32


17.65 %


25.00 %


$           1.32


$           0.42


214.29 %

Diluted net income per common share


0.40


0.34


0.34


0.25


0.31


17.65


29.03


1.32


0.42


214.29

Dividends paid per common share


0.12


0.12


0.12


0.12


0.12


—


—


0.48


0.48


—

Book value per common share at period end


16.23


16.00


15.74


15.51


15.41


1.44


5.32


16.23


15.41


5.32

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


13.19


12.88


12.54


12.24


12.06


2.41


9.37


13.19


12.06


9.37

Market value at period end


15.85


13.99


11.45


11.50


14.25


13.30


11.23


15.85


14.25


11.23

Market range:





















High


17.61


14.99


11.90


14.38


14.51


17.48


21.36


17.61


18.15


(2.98)

Low


13.21


11.03


10.06


10.56


9.66


19.76


36.75


10.06


9.66


4.14

____________________________________

(1)

See the Reconciliation of GAAP and non-GAAP Measures tables.

(2)

This ratio excludes merger-related expenses. See the Reconciliation of GAAP and non-GAAP Measures tables.

 

Shore Bancshares, Inc.









Financial Highlights By Quarter and Year (Unaudited) - Continued






























Q4 2024 vs.


Q4 2024 vs.


Year Ended December 31,

($ in thousands, except per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


Q3 2024


Q4 2023


2024


2023


2024 vs. 2023






















AVERAGE BALANCE SHEET DATA





















Loans


$     4,796,245


$     4,734,001


$     4,706,510


$     4,655,183


$     4,639,467


1.31 %


3.38 %


$   4,723,215


$   3,639,058


29.79 %

Investment securities


655,610


656,375


706,079


655,323


619,920


(0.12)


5.76


668,279


674,866


(0.98)

Earning assets


5,798,454


5,435,311


5,459,961


5,387,782


5,339,833


6.68


8.59


5,520,904


4,356,855


26.72

Assets


6,163,497


5,810,492


5,839,328


5,774,824


5,745,440


6.08


7.28


5,896,931


4,663,539


26.45

Deposits


5,461,583


5,086,348


5,064,974


5,142,658


5,136,818


7.38


6.32


5,188,812


4,029,014


28.79

FHLB advances


50,000


83,500


143,769


4,000


1,141


(40.12)


4282.12


70,298


111,392


(36.89)

Subordinated debt & TRUPS


73,578


72,946


72,680


72,418


72,155


0.87


1.97


72,907


57,708


26.34

Stockholders' equity


538,184


529,155


519,478


515,976


507,040


1.71


6.14


525,742


441,790


19.00






















CREDIT QUALITY DATA





















Net charge-offs


$           1,333


$           1,379


$              886


$              565


$              500


(3.34) %


166.60 %


4,072


2,019


101.68 %






















Nonaccrual loans


$         21,008


$         14,844


$         14,837


$         12,776


$         12,784


41.53 %


64.33 %







Loans 90 days past due and still accruing


294


454


414


1,560


738


(35.24)


(60.16)







Other real estate owned and repossessed property


3,494


485


1,739


2,024


179


620.41


1,851.96







Total nonperforming assets


$         24,796


$         15,783


$         16,990


$         16,360


$         13,701


57.11


80.98







 

Shore Bancshares, Inc.







Financial Highlights By Quarter and Year (Unaudited) - Continued


























Q4 2024 vs.


Q4 2024 vs.


Year Ended December 31,

($ in thousands, except per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


Q3 2024


Q4 2023


2024


2023


2024 vs. 2023






















CAPITAL AND CREDIT QUALITY RATIOS





















Period-end equity to assets


8.68 %


9.01 %


8.92 %


8.84 %


8.50 %


           (33) bp


             18 bp







Period-end tangible equity to tangible assets - non-GAAP (1)


7.17


7.39


7.23


7.11


6.78


(22)


39




























Annualized net charge-offs to average loans


0.11 %


0.12 %


0.08 %


0.05 %


0.04 %


             (1) bp


              7 bp


0.09 %


0.06 %


                3 bp






















Allowance for credit losses as a percent of:





















Period-end loans


1.21 %


1.24 %


1.24 %


1.23 %


1.24 %


             (3) bp


             (3) bp







Nonaccrual loans


275.66


395.24


394.14


448.78


448.62


(11,958)


(17,296)







Nonperforming assets


233.55


371.72


344.19


350.46


418.59


(13,817)


(18,504)




























As a percent of total loans:





















Nonaccrual loans


0.44 %


0.31 %


0.32 %


0.27 %


0.28 %


             13 bp


             16 bp




























As a percent of total loans, other real estate owned and repossessed property





















Nonperforming assets


0.52 %


0.33 %


0.36 %


0.35 %


0.30 %


             19 bp


             22 bp




























As a percent of total assets:





















Nonaccrual loans


0.34 %


0.25 %


0.25 %


0.22 %


0.21 %


              9 bp


             13 bp







Nonperforming assets


0.40


0.27


0.29


0.28


0.23


13


17







____________________________________

(1)

See the Reconciliation of GAAP and non-GAAP Measures tables.

 

Shore Bancshares, Inc.









Financial Highlights By Quarter and Year (Unaudited) - Continued






























Q4 2024 vs.


Q4 2024 vs.


Year Ended December 31,

($ in thousands)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


Q3 2024


Q4 2023


2024


2023


2024 vs. 2023

The Company Amounts





















Common Tier 1 Capital to RWA


$   458,258


$   446,402


$   435,238


$   421,670


$     408,317


2.66 %


12.23 %







Tier 1 Capital to RWA


488,105


476,170


464,554


450,907


437,847


2.51


11.48







Total Capital to RWA


591,228


579,664


567,680


552,657


539,572


1.99


9.57







Tier 1 Capital to AA (Leverage)


488,105


476,170


464,554


450,907


437,847


2.51


11.48




























The Company Ratios





















Common Tier 1 Capital to RWA


9.44 %


9.27 %


9.06 %


8.91 %


8.69 %


             17 bp


             75 bp







Tier 1 Capital to RWA


10.06


9.89


9.67


9.53


9.32


17


74







Total Capital to RWA


12.18


12.04


11.82


11.68


11.49


14


69







Tier 1 Capital to AA (Leverage)


8.02


8.31


8.07


7.93


7.75


(29)


27




























The Bank Amounts





















Common Tier 1 Capital to RWA


$   521,453


$   509,511


$   501,003


$   487,494


$   470,200


2.34 %


10.90 %







Tier 1 Capital to RWA


521,453


509,511


501,003


487,494


470,200


2.34


10.90







Total Capital to RWA


580,706


569,317


560,625


545,922


528,786


2.00


9.82







Tier 1 Capital to AA (Leverage)


521,453


509,511


501,003


487,494


470,200


2.34


10.90




























The Bank Ratios





















Common Tier 1 Capital to RWA


10.75 %


10.60 %


10.45 %


10.32 %


10.02 %


             15 bp


             73 bp







Tier 1 Capital to RWA


10.75


10.60


10.45


10.32


10.02


15


73







Total Capital to RWA


11.97


11.84


11.69


11.56


11.27


13


70







Tier 1 Capital to AA (Leverage)


8.58


8.90


8.71


8.58


8.33


(32)


25







 

Shore Bancshares, Inc.





Consolidated Balance Sheets (Unaudited)






















December 31, 2024













compared to

($ in thousands, except per share data)


December 31, 2024


September 30, 2024


June 30, 2024


March 31, 2024


December 31, 2023


December 31, 2023

ASSETS













Cash and due from banks


$                  44,008


$                  52,363


$                  50,090


$                  43,079


$                  63,172


(30.34) %

Interest-bearing deposits with other banks


415,843


131,258


88,793


71,481


309,241


34.47

Cash and cash equivalents


459,851


183,621


138,883


114,560


372,413


23.48

Investment securities:













Available for sale, at fair value


149,212


133,339


131,594


179,496


110,521


35.01

Held to maturity, net of allowance for credit losses


481,077


484,583


499,431


503,822


513,188


(6.26)

Equity securities, at fair value


5,814


5,950


5,699


5,681


5,703


1.95

Restricted securities, at cost


20,253


20,253


21,725


17,863


17,900


13.15

Loans held for sale, at fair value


19,606


26,877


27,829


13,767


8,782


123.25

Loans held for investment


4,771,988


4,733,909


4,705,737


4,648,725


4,641,010


2.82

Less: allowance for credit losses


(57,910)


(58,669)


(58,478)


(57,336)


(57,351)


(0.97)

Loans, net


4,714,078


4,675,240


4,647,259


4,591,389


4,583,659


2.85














Premises and equipment, net


81,806


81,663


82,176


83,084


82,386


(0.70)

Goodwill


63,266


63,266


63,266


63,266


63,266


—

Other intangible assets, net


38,311


40,609


42,945


45,515


48,090


(20.33)

Mortgage servicing rights, at fair value


5,874


5,309


5,995


5,821


5,926


(0.88)

Right-of-use assets


11,385


11,384


11,762


12,153


12,487


(8.83)

Cash surrender value on life insurance


104,421


103,729


102,969


102,321


101,704


2.67

Accrued interest receivable


19,570


19,992


19,641


19,541


19,217


1.84

Deferred income taxes


31,857


32,191


36,078


38,978


40,707


(21.74)

Other assets


24,382


29,698


26,765


28,447


24,969


(2.35)

TOTAL ASSETS


$             6,230,763


$             5,917,704


$             5,864,017


$             5,825,704


$             6,010,918


3.66

 

Shore Bancshares, Inc.







Consolidated Balance Sheets (Unaudited) - Continued


























December 31, 2024













compared to

($ in thousands, except per share data)


December 31, 2024


September 30, 2024


June 30, 2024


March 31, 2024


December 31, 2023


December 31, 2023

LIABILITIES













Deposits:













Noninterest-bearing


$             1,562,815


$             1,571,393


$             1,587,252


$             1,200,680


$             1,258,037


24.23 %

Interest-bearing checking


978,076


751,533


658,512


1,101,954


1,165,546


(16.08)

Money market and savings


1,805,884


1,634,140


1,689,343


1,712,303


1,777,927


1.57

Time deposits


1,181,561


1,268,657


1,213,778


1,169,342


1,184,610


(0.26)

Total deposits


5,528,336


5,225,723


5,148,885


5,184,279


5,386,120


2.64

FHLB advances - short-term


—


—


31,000


—


—


—

FHLB advances


50,000


50,000


50,000


—


—


—

Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS")


29,847


29,768


29,316


29,237


29,158


2.36

Subordinated debt


43,870


43,688


43,504


43,322


43,139


1.69

Total borrowings


123,717


123,456


153,820


72,559


72,297


71.12

Lease liabilities


11,844


11,816


12,189


12,552


12,857


(7.88)

Other liabilities


25,800


23,438


26,340


41,086


28,509


(9.50)

TOTAL LIABILITIES


5,689,697


5,384,433


5,341,234


5,310,476


5,499,783


3.45

STOCKHOLDERS' EQUITY













Common stock, par value $0.01 per share


333


333


333


332


332


0.30

Additional paid in capital


358,112


357,580


356,994


356,464


356,007


0.59

Retained earnings


190,166


180,884


173,716


166,490


162,290


17.18

Accumulated other comprehensive loss


(7,545)


(5,526)


(8,260)


(8,058)


(7,494)


(0.68)

TOTAL STOCKHOLDERS' EQUITY


541,066


533,271


522,783


515,228


511,135


5.86

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$             6,230,763


$             5,917,704


$             5,864,017


$             5,825,704


$             6,010,918


3.66














Period-end common shares outstanding


33,332,177


33,326,772


33,214,522


33,210,522


33,161,532


0.51

Book value per common share


$                    16.23


$                    16.00


$                    15.74


$                    15.51


$                    15.41


5.32

 

Shore Bancshares, Inc.













Consolidated Statements of Income By Quarter (Unaudited)






































Q4 2024 vs.


Q4 2024 vs.



















compared to


compared to


Year Ended December 31,

($ in thousands, except share and per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


Q3 2024


Q4 2023


2024


2023


% Change






















INTEREST INCOME





















Interest and fees on loans


$       67,428


$       69,157


$       67,292


$       65,754


$       65,914


(2.50) %


2.30 %


$     269,631


$     194,339


38.74 %

Interest on investment securities:





















Taxable


4,833


4,962


5,230


4,419


3,992


(2.60)


21.07


19,444


16,832


15.52

Tax-exempt


6


6


6


6


6


—


—


24


46


(47.83)

Interest on federal funds sold


—


—


—


—


—


—


—


—


92


(100.00)

Interest on deposits with other banks


4,137


564


578


960


1,224


633.51


237.99


6,239


2,770


125.23

Total interest income


76,404


74,689


73,106


71,139


71,136


2.30


7.41


295,338


214,079


37.96






















INTEREST EXPENSE





















Interest on deposits


30,363


28,856


27,585


28,497


28,133


5.22


7.93


115,301


68,800


67.59

Interest on short-term borrowings


—


491


1,584


56


16


(100.00)


(100.00)


2,131


5,518


(61.38)

Interest on long-term borrowings


2,030


2,079


1,797


1,451


1,462


(2.36)


38.85


7,357


4,454


65.18

Total interest expense


32,393


31,426


30,966


30,004


29,611


3.08


9.40


124,789


78,772


58.42






















NET INTEREST INCOME


44,011


43,263


42,140


41,135


41,525


1.73


5.99


170,549


135,307


26.05

Provision for credit losses


780


1,470


2,081


407


896


(46.94)


(12.90)


4,738


30,953


(84.69)






















NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES


43,231


41,793


40,059


40,728


40,629


3.44


6.40


165,811


104,354


58.89






















NONINTEREST INCOME





















Service charges on deposit accounts


1,606


1,543


1,493


1,507


1,519


4.08


5.73


6,149


5,501


11.78

Trust and investment fee income


857


880


896


734


844


(2.61)


1.54


3,367


3,608


(6.68)

Loss on sales and calls of investment securities


—


—


—


—


—


—


—


—


(2,166)


100.00

Interchange credits


1,726


1,711


1,717


1,587


1,633


0.88


5.70


6,741


5,714


17.97

Mortgage banking revenue


2,026


1,177


1,983


801


1,105


72.13


83.35


5,987


4,513


32.66

Title Company revenue


59


100


165


78


139


(41.00)


(57.55)


402


551


(27.04)

Bargain purchase gain


—


—


—


—


—


—


—


—


8,816


(100.00)

Other noninterest income


2,579


1,876


2,186


1,860


2,308


37.47


11.74


8,501


6,622


28.38

Total noninterest income


$         8,853


$         7,287


$         8,440


$         6,567


$         7,548


21.49


17.29


$       31,147


$       33,159


(6.07)

 

Shore Bancshares, Inc.













Consolidated Statements of Income By Quarter (Unaudited) - Continued






































Q4 2024 vs.


Q4 2024 vs.



















compared to


compared to


Year Ended December 31,

($ in thousands, except share and per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


Q3 2024


Q4 2023


2024


2023


% Change






















NONINTEREST EXPENSE





















Salaries and employee benefits


$      17,209


$      16,523


$      16,900


$      15,949


$      16,212


4.15 %


6.15 %


$      66,579


$      57,003


16.80 %

Occupancy expense


2,474


2,384


2,432


2,416


2,328


3.78


6.27


9,706


7,791


24.58

Furniture and equipment expense


760


876


900


904


790


(13.24)


(3.80)


3,441


2,551


34.89

Data processing


3,067


3,081


2,978


2,867


2,762


(0.45)


11.04


12,329


8,783


40.37

Directors' fees


460


443


359


295


426


3.84


7.98


1,557


1,156


34.69

Amortization of intangible assets


2,298


2,336


2,569


2,576


2,595


(1.63)


(11.45)


9,779


6,105


60.18

FDIC insurance premium expense


1,013


1,160


1,089


1,150


1,733


(12.67)


(41.55)


4,413


3,479


26.85

Legal and professional fees


1,521


1,362


1,354


1,599


1,411


11.67


7.80


5,836


4,337


34.56

Fraud losses(1)


98


673


62


4,502


503


(85.44)


(80.52)


4,998


879


468.60

Merger-related expenses


—


—


—


—


602


—


(100.00)


—


17,356


(100.00)

Other noninterest expenses


5,043


5,276


4,856


4,440


4,308


(4.42)


17.06


19,616


13,889


41.23

Total noninterest expense


33,943


34,114


33,499


36,698


33,670


(0.50)


0.81


138,254


123,329


12.10






















Income before income taxes


18,141


14,966


15,000


10,597


14,507


21.21


25.05


58,704


14,184


313.87

Income tax expense


4,859


3,777


3,766


2,413


4,017


28.65


20.96


14,815


2,956


401.18

NET INCOME


$      13,282


$      11,189


$      11,234


$        8,184


$      10,490


18.71


26.62


$      43,889


$      11,228


290.89






















Weighted average shares outstanding - basic


33,327


33,318


33,234


33,189


33,153


0.03 %


0.53 %


33,267


26,572


25.20 %

Weighted average shares outstanding - diluted


33,364


33,339


33,234


33,191


33,322


0.07 %


0.12 %


33,285


26,574


25.25 %






















Basic net income per common share


$          0.40


$          0.34


$          0.34


$          0.25


$          0.32


17.65 %


25.00 %


$          1.32


$          0.42


214.29 %

Diluted net income per common share


$          0.40


$          0.34


$          0.34


$          0.25


$          0.31


17.65 %


29.03 %


$          1.32


$          0.42


214.29 %






















Dividends paid per common share


$          0.12


$          0.12


$          0.12


$          0.12


$          0.12


— %


— %


$          0.48


$          0.48


— %

____________________________________

(1)

Fraud losses for the third quarter of 2024 and first quarter of 2024 include $337 thousand and $4.3 million in losses related to the one-time online credit card account opening event. The third quarter of 2024 expense of $337 thousand was related to non-recurring data processing charges to close the fraudulent accounts. 

 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited)




Three Months Ended



December 31, 2024


December 31, 2023


September 30, 2024

($ in thousands)


Average Balance


Interest


Yield/Rate


Average Balance


Interest


Yield/Rate


Average Balance


Interest


Yield/Rate

Earning assets



















Loans(1), (2), (3)



















  Commercial real estate


$          2,551,903


$              36,036


5.62 %


$          2,509,904


$              35,561


5.62 %


$          2,522,170


$              36,376


5.74 %

  Residential real estate


1,358,066


18,142


5.31


1,242,852


17,512


5.59


1,332,891


19,315


5.76

  Construction


336,094


5,304


6.28


322,267


4,588


5.65


336,209


5,307


6.28

  Commercial


229,676


3,792


6.57


222,632


4,308


7.68


212,611


3,763


7.04

  Consumer


313,686


4,080


5.17


335,492


3,858


4.56


322,988


4,306


5.30

  Credit cards


6,820


154


8.98


6,320


166


10.42


7,132


170


9.48

Total loans


4,796,245


67,508


5.60


4,639,467


65,993


5.64


4,734,001


69,237


5.82




















Investment securities



















Taxable


654,955


4,833


2.95


619,259


3,992


2.58


655,718


4,962


3.03

Tax-exempt(1)


655


8


4.89


661


8


4.84


657


8


4.87

Interest-bearing deposits


346,599


4,137


4.75


80,446


1,224


6.04


44,935


564


4.99

Total earning assets


5,798,454


76,486


5.25


5,339,833


71,217


5.29


5,435,311


74,771


5.47

Cash and due from banks


43,444






63,506






46,996





Other assets


380,321






399,409






386,700





Allowance for credit losses


(58,722)






(57,308)






(58,515)





Total assets


$          6,163,497






$          5,745,440






$          5,810,492





 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited) - Continued




Three Months Ended



December 31, 2024


December 31, 2023


September 30, 2024

($ in thousands)


Average Balance


Interest


Yield/Rate


Average Balance


Interest


Yield/Rate


Average Balance


Interest


Yield/Rate

Interest-bearing liabilities



















Interest-bearing checking deposits


$            901,764


$                7,898


3.48 %


$          1,117,117


$                6,673


2.37 %


$            581,517


$                5,472


3.74 %

Money market and savings deposits


1,733,934


10,331


2.37


1,605,930


8,330


2.06


1,670,210


10,420


2.48

Time deposits


1,232,480


12,134


3.92


1,092,871


11,783


4.28


1,229,273


12,742


4.12

Brokered deposits


—


—


—


92,840


1,347


5.76


25,829


222


3.42

Interest-bearing deposits(4)


3,868,178


30,363


3.12


3,908,758


28,133


2.86


3,506,829


28,856


3.27

FHLB advances


50,000


618


4.92


1,141


16


5.56


83,500


1,116


5.32

Subordinated debt and Guaranteed
preferred beneficial interest in junior
subordinated debentures ("TRUPS") (4)


73,578


1,412


7.63


72,155


1,462


8.04


72,946


1,454


7.93

Total interest-bearing liabilities


3,991,756


32,393


3.23


3,982,054


29,611


2.95


3,663,275


31,426


3.41

Noninterest-bearing deposits


1,593,405






1,228,060






1,579,519





Accrued expenses and other liabilities


40,152






28,286






38,543





Stockholders' equity


538,184






507,040






529,155





Total liabilities and stockholders' equity


$          6,163,497






$          5,745,440






$          5,810,492
























Net interest income




$              44,093






$              41,606






$              43,345






















Net interest spread






2.02 %






2.34 %






2.06 %

Net interest margin






3.03






3.09






3.17

Cost of funds






2.31






2.25






2.38

Cost of deposits






2.21






2.17






2.26

Cost of debt






6.54






8.00






6.54

____________________________________

(1)

All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.

(2)

Average loan balances include nonaccrual loans.

(3)

Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $3.2 million, $4.8 million and $5.0 million of accretion interest on loans for the three months ended December 31, 2024 and 2023, and September 30, 2024, respectively.

(4)

Interest expense on deposits and borrowing includes amortization of deposit discount and amortization of borrowing fair value adjustments. There were $412 thousand, $1.5 million and $287 thousand of amortization of deposits premium, and $232 thousand, $232 thousand, and $232 thousand of amortization of borrowing fair value adjustments for the three months ended December 31, 2024 and 2023, and September 30, 2024, respectively.

 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited) - Continued




For the Year Ended December 31,



2024


2023

($ in thousands)


Average Balance


Interest


Yield/Rate


Average Balance


Interest


Yield/Rate

Earning assets













Loans (1), (2), (3)













  Commercial real estate


$              2,528,961


$                 144,155


5.70 %


$              1,860,517


$                   99,953


5.37 %

  Residential real estate


1,318,500


72,636


5.51


981,473


50,244


5.12

  Construction


322,978


19,917


6.17


284,238


15,123


5.32

  Commercial


220,699


15,625


7.08


185,239


13,647


7.37

  Consumer


324,633


16,923


5.21


324,444


15,298


4.72

  Credit cards


7,444


694


9.32


3,147


315


10.01

Total loans


4,723,215


269,950


5.72


3,639,058


194,580


5.35














Investment securities













Taxable


667,622


19,444


2.91


674,203


16,832


2.50

Tax-exempt (1)


657


30


4.57


663


58


8.75

Federal funds sold


—


—


—


1,899


92


4.84

Interest-bearing deposits


129,410


6,239


4.82


41,032


2,770


6.75

Total earning assets


5,520,904


295,663


5.36


4,356,855


214,332


4.92

Cash and due from banks


46,264






43,555





Other assets


387,852






303,906





Allowance for credit losses


(58,089)






(40,777)





Total assets


$              5,896,931






$              4,663,539





 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited) - Continued




For the Year Ended December 31,



2024


2023

($ in thousands)


Average Balance


Interest


Yield/Rate


Average Balance


Interest


Yield/Rate

Interest-bearing liabilities













Interest-bearing checking deposits


$                 825,773


$                   25,523


3.09 %


$                 883,976


$                   20,134


2.28 %

Money market and savings deposits


1,690,905


41,202


2.44


1,275,088


20,039


1.57

Time deposits


1,212,782


48,566


4.00


770,370


25,708


3.34

Brokered deposits


5,265


10


0.19


56,101


2,919


5.20

Interest-bearing deposits (4)


3,734,725


115,301


3.09


2,985,535


68,800


2.30

FHLB advances


70,298


3,720


5.29


111,392


5,518


4.95

Subordinated debt and Guaranteed preferred beneficial interest in junior
subordinated debentures ("TRUPS") (4)


72,907


5,768


7.91


57,708


4,454


7.72

Total interest-bearing liabilities


3,877,930


124,789


3.22


3,154,635


78,772


2.50

Noninterest-bearing deposits


1,454,087






1,043,479





Accrued expenses and other liabilities


39,172






23,635





Stockholders' equity


525,742






441,790





Total liabilities and stockholders' equity


$              5,896,931






$              4,663,539


















Net interest income




$                 170,874






$                 135,560
















Net interest spread






2.14 %






2.42 %

Net interest margin






3.10






3.11

Cost of funds






2.34






1.88

Cost of deposits






2.22






1.71

Cost of debt






6.63






5.90

____________________________________

(1)

All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.

(2)

Average loan balances include nonaccrual loans.

(3)

Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $16.9 million and $11.8 million of accretion interest on loans for the years ended December 31, 2024 and 2023, respectively.

(4)

Interest expense on deposits and borrowing includes amortization of deposit premiums and amortization of borrowing fair value adjustment. There were $1.5 million of amortization of deposit discounts and $1.8 million of amortization of deposit premium, and $926 thousand and $557 thousand of amortization of borrowing fair value adjustment for the years ended December 31, 2024 and 2023, respectively.

 

Shore Bancshares, Inc.









Reconciliation of GAAP and Non-GAAP Measures (Unaudited)






























YTD


YTD

($ in thousands, except per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


12/31/2024


12/31/2023
















The following reconciles return on average assets, average equity and return on average tangible equity(1):

Net income (loss)


$         13,282


$         11,189


$         11,234


$            8,184


$         10,490


$         43,889


$         11,228

Net income (loss) - annualized (A)


$         52,839


$         44,513


$         45,183


$         32,916


$         41,618


$         43,889


$         11,228
















Net income (loss)


$         13,282


$         11,189


$         11,234


$            8,184


$         10,490


$         43,889


$         11,228

Add: Amortization of intangible assets, net of tax


1,683


1,746


1,924


1,989


1,876


7,342


4,254

Add: Merger expenses, net of tax


—


—


—


—


435


—


11,637

Add: Credit card fraud losses, net of tax


—


252


—


3,339


—


3,591


—

Less: Sale and fair value of held for sale assets, net of tax


(329)


—


—


—


—


(329)



Net income, excluding net amortization of intangible
assets, merger-related expenses, credit card fraud losses
and held for sale assets


14,636


13,187


13,158


13,512


12,801


54,493


27,119

Net income, excluding net amortization of intangible
assets, merger-related expenses, credit card fraud losses
and held for sale assets - annualized (B)


$         58,226


$         52,461


$         52,921


$         54,345


$         50,787


$         54,493


$         27,119
















Return on average assets (GAAP)


0.86 %


0.77 %


0.77 %


0.57 %


0.72 %


0.74 %


0.24 %

Return on average assets excluding net amortization of
intangible assets, merger-related expenses, credit card
fraud losses and held for sale assets - (non-GAAP)


0.94 %


0.90 %


0.91 %


0.94 %


0.88 %


0.92 %


0.58 %
















Average assets


$   6,163,497


$    5,810,492


$    5,839,328


$    5,774,824


$    5,745,440


$   5,896,931


$    4,663,539
















Average stockholders' equity (C)


$      538,184


$       529,155


$       519,478


$       515,976


$       507,040


$      525,742


$       441,790

Less: Average goodwill and core deposit intangible


(102,794)


(105,136)


(107,594)


(110,167)


(112,752)


(106,409)


(91,471)

Average tangible equity (D)


$      435,390


$       424,019


$       411,884


$       405,809


$       394,288


$      419,333


$       350,319
















Return on average equity (GAAP) (A)/(C)


9.82 %


8.41 %


8.70 %


6.38 %


8.21 %


8.35 %


2.54 %

Return on average tangible equity (non-GAAP) (A)/(D)


12.14 %


10.50 %


10.97 %


8.11 %


10.56 %


10.47 %


3.21 %

Return on average tangible equity (non-GAAP) (B)/(D)


13.37 %


12.37 %


12.85 %


13.39 %


12.88 %


13.00 %


7.74 %

 

Shore Bancshares, Inc.







Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued


























YTD


YTD

($ in thousands, except per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023


12/31/2024


12/31/2023
















The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio(2):

Noninterest expense (E)


$         33,943


$         34,114


$         33,499


$         36,698


$         33,670


$      138,254


$       123,329

Less: Amortization of intangible assets


(2,298)


(2,336)


(2,569)


(2,576)


(2,595)


(9,779)


(6,105)

Less: Merger expenses


—


—


—


—


(602)


—


(17,356)

Less: Credit card fraud losses


—


(337)


—


(4,323)


—


(4,660)


—

Adjusted noninterest expense (F)


$         31,645


$         31,441


$         30,930


$         29,799


$         30,473


$      123,815


$         99,868
















Net interest income (G)


$         44,011


$         43,263


$         42,140


$         41,135


$         41,525


$      170,549


$       135,307

Add: Taxable-equivalent adjustment


82


82


82


79


81


325


253

Taxable-equivalent net interest income (H)


$         44,093


$         43,345


$         42,222


$         41,214


$         41,606


$      170,874


$       135,560
















Noninterest income (I)


$           8,853


$            7,287


$            8,440


$            6,567


$            7,548


$         31,147


$         33,159

Investment securities losses (gains)


—


—


—


—


—


—


2,166

Less: Bargain purchase gain


—


—


—


—


—


—


(8,816)

Less: Sale and fair value of held for sale assets


(450)


—


—


—


—


(450)


—

Adjusted noninterest income (J)


$           8,403


$            7,287


$            8,440


$            6,567


$            7,548


$         30,697


$         26,509
















Efficiency ratio (GAAP) (E)/(G)+(I)


64.21 %


67.49 %


66.23 %


76.93 %


68.61 %


68.55 %


73.21 %

Efficiency ratio (Non-GAAP) (F)/(H)+(J)


60.28 %


62.10 %


61.05 %


62.37 %


61.99 %


61.43 %


61.62 %
















Net operating expense to average assets (GAAP)


1.62 %


1.84 %


1.73 %


2.10 %


1.80 %


1.82 %


1.93 %

Net operating expense to average assets (Non-GAAP)


1.50 %


1.65 %


1.55 %


1.62 %


1.58 %


1.58 %


1.57 %

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued



($ in thousands, except per share data)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023












The following reconciles book value per common share and tangible book value per common share(1):

Stockholders' equity (K)


$            541,066


$            533,271


$            522,783


$            515,228


$            511,135

Less: Goodwill and core deposit intangible


(101,577)


(103,875)


(106,211)


(108,781)


(111,356)

Tangible equity (L)


$            439,489


$            429,396


$            416,572


$            406,447


$            399,779












Shares outstanding (M)


33,332


33,327


33,272


33,211


33,162












Book value per common share (GAAP) (K)/(M)


$                 16.23


$                 16.00


$                 15.71


$                 15.51


$                 15.41

Tangible book value per common share (non-GAAP) (L)/(M)


$                 13.19


$                 12.88


$                 12.52


$                 12.24


$                 12.06












The following reconciles equity to assets and tangible equity to tangible assets(1):

Stockholders' equity (N)


$            541,066


$            533,271


$            522,783


$            515,228


$            511,135

Less: Goodwill and core deposit intangible


(101,577)


(103,875)


(106,211)


(108,781)


(111,356)

Tangible equity (O)


$            439,489


$            429,396


$            416,572


$            406,447


$            399,779












Assets (P)


$         6,230,763


$         5,917,704


$         5,864,017


$         5,825,704


$         6,010,918

Less: Goodwill and core deposit intangible


(101,577)


(103,875)


(106,211)


(108,781)


(111,356)

Tangible assets (Q)


$         6,129,186


$         5,813,829


$         5,757,806


$         5,716,923


$         5,899,562












Period-end equity/assets (GAAP) (N)/(P)


8.68 %


9.01 %


8.92 %


8.84 %


8.50 %

Period-end tangible equity/tangible assets (Non-GAAP) (O)/(Q)


7.17 %


7.39 %


7.23 %


7.11 %


6.78 %

____________________________________

(1)

Management believes that reporting tangible equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.

(2)

Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities.

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued


Regulatory Capital and Ratios for the Company





($ in thousands)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023

Common equity


$            541,066


$             533,271


$             522,783


$             515,228


$             511,135

Goodwill(1)


(61,362)


(61,397)


(61,460)


(61,523)


(63,266)

Core deposit intangible(2)


(28,991)


(30,572)


(32,313)


(34,235)


(38,069)

DTAs that arise from net operating loss and tax credit carry forwards


—


(426)


(2,032)


(5,858)


(8,977)

AOCI (gains) losses


7,545


5,526


8,260


8,058


7,494

Common Equity Tier 1 Capital


458,258


446,402


435,238


421,670


408,317

TRUPS


29,847


29,768


29,316


29,237


29,530

Tier 1 Capital


488,105


476,170


464,554


450,907


437,847

Allowable reserve for credit losses and other Tier 2 adjustments


59,253


59,806


59,622


58,428


58,586

Subordinated notes


43,870


43,688


43,504


43,322


43,139

Total Capital


$            591,228


$             579,664


$             567,680


$             552,657


$             539,572












Risk-Weighted Assets ("RWA")


$        4,852,564


$         4,816,165


$         4,803,230


$         4,729,930


$         4,697,504

Average Assets ("AA")


6,083,760


5,729,576


5,756,260


5,684,150


5,649,116












Common Tier 1 Capital to RWA


9.44 %


9.27 %


9.06 %


8.91 %


8.69 %

Tier 1 Capital to RWA


10.06


9.89


9.67


9.53


9.32

Total Capital to RWA


12.18


12.04


11.82


11.68


11.49

Tier 1 Capital to AA (Leverage)(3)


8.02


8.31


8.07


7.93


7.75

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued


Regulatory Capital and Ratios for the Bank





($ in thousands)


Q4 2024


Q3 2024


Q2 2024


Q1 2024


Q4 2023

Common equity


$            604,261


$             595,954


$             587,283


$             579,520


$             570,100

Goodwill(1)


(61,362)


(61,397)


(61,460)


(61,523)


(63,266)

Core deposit intangible(2)


(28,991)


(30,572)


(32,313)


(34,235)


(38,069)

DTAs that arise from net operating loss and tax credit carry forwards


—


—


(767)


(4,326)


(6,059)

AOCI (gains) losses


7,545


5,526


8,260


8,058


7,494

Common Equity Tier 1 Capital


521,453


509,511


501,003


487,494


470,200

TRUPS


—


—


—


—


—

Tier 1 Capital


521,453


509,511


501,003


487,494


470,200

Allowable reserve for credit losses and other Tier 2 adjustments


59,253


59,806


59,622


58,428


58,586

Subordinated notes


—


—


—


—


—

Total Capital


$            580,706


$             569,317


$             560,625


$             545,922


$             528,786












Risk-Weighted Assets ("RWA")


$        4,851,903


$         4,808,058


$         4,796,512


$         4,723,872


$         4,693,009

Average Assets ("AA")


6,077,540


5,721,995


5,750,604


5,679,282


5,644,930












Common Tier 1 Capital to RWA


10.75 %


10.60 %


10.45 %


10.32 %


10.02 %

Tier 1 Capital to RWA


10.75


10.60


10.45


10.32


10.02

Total Capital to RWA


11.97


11.84


11.69


11.56


11.27

Tier 1 Capital to AA (Leverage)(3)


8.58


8.90


8.71


8.58


8.33

___________________________________

(1)

Goodwill is net of deferred tax liability.

(2)

Core deposit intangible is net of deferred tax liability.

(3)

Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. The PCA well capitalized is defined as 5.00%.

 

Shore Bancshares, Inc.

Summary of Loan Portfolio (Unaudited)


Portfolio loans are summarized by loan type as follows:


($ in thousands)


December 31, 2024


%


September 30, 2024


%


June 30, 2024


%


March 31, 2024


%


December 31, 2023


%

Portfolio Loans by Loan Type





















Commercial real estate


$             2,557,806


53.60 %


$             2,535,004


53.55 %


$             2,546,114


54.10 %


$             2,531,076


54.45 %


$             2,536,861


54.67 %

Residential real estate


1,329,406


27.86


1,312,375


27.72


1,280,973


27.22


1,256,925


27.04


1,239,731


26.71

Construction


335,999


7.04


337,113


7.12


327,875


6.97


299,133


6.43


299,000


6.44

Commercial


237,932


4.99


225,083


4.76


218,987


4.65


229,594


4.94


229,939


4.95

Consumer


303,746


6.36


317,149


6.70


324,480


6.90


325,076


6.99


328,896


7.09

Credit cards


7,099


0.15


7,185


0.15


7,308


0.16


6,921


0.15


6,583


0.14

Total loans


4,771,988


100.00 %


4,733,909


100.00 %


4,705,737


100.00 %


4,648,725


100.00 %


4,641,010


100.00 %

Less: Allowance for credit losses


(57,910)




(58,669)




(58,478)




(57,336)




(57,351)



Total loans, net


$             4,714,078




$             4,675,240




$             4,647,259




$             4,591,389




$             4,583,659



 

Shore Bancshares, Inc.

Classified Assets and Nonperforming Assets (Unaudited)


Classified assets and nonperforming assets are summarized as follows:


($ in thousands)


December 31, 2024


September 30, 2024


June 30, 2024


March 31, 2024


December 31, 2023












Classified loans











Substandard


$                   24,675


$                   22,798


$                   17,409


$                   13,403


$                   14,673

Doubtful


—


—


—


—


—

Loss


—


—


—


—


—

Total classified loans


24,675


22,798


17,409


13,403


14,673

Special mention loans


33,519


14,385


25,549


27,192


28,264

Total classified and special mention loans


$                   58,194


$                   37,183


$                   42,958


$                   40,595


$                   42,937












Classified loans


$                   24,675


$                   22,798


$                   17,409


$                   13,403


$                   14,673

Other real estate owned


179


179


179


179


179

Repossessed property


3,315


306


1,560


1,845


—

Total classified assets


$                   28,169


$                   23,283


$                   19,148


$                   15,427


$                   14,852












Classified assets to total assets


0.45 %


0.39 %


0.33 %


0.26 %


0.25 %












Non-accrual loans


$                   21,008


$                   14,844


$                   14,837


$                   12,776


$                   12,784

90+ days delinquent accruing


294


454


414


1,560


738

Other real estate owned ("OREO")


179


179


179


179


179

Repossessed property


3,315


306


1,560


1,845


—

Total nonperforming assets


$                   24,796


$                   15,783


$                   16,990


$                   16,360


$                   13,701

Accruing borrowers experiencing financial difficulty loans ("BEFD")


$                     1,362


$                           —


$                           —


$                           —


$                        367

Total nonperforming assets and BEFDs modifications


$                   26,158


$                   15,783


$                   16,990


$                   16,360


$                   14,068












Nonperforming assets to total assets


0.40 %


0.27 %


0.29 %


0.28 %


0.23 %












Total assets


$             6,230,763


$             5,917,704


$             5,864,017


$             5,825,704


$             6,010,918

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/shore-bancshares-inc-reports-2024-fourth-quarter-and-annual-results-302364890.html

SOURCE Shore Bancshares, Inc.

FAQ

What was Shore Bancshares (SHBI) Q4 2024 earnings per share?

Shore Bancshares reported earnings of $0.40 per diluted share for Q4 2024.

How much did SHBI's net income increase in full-year 2024?

SHBI's net income increased by $32.7 million to $43.9 million in 2024 from $11.2 million in 2023.

What was SHBI's total asset value as of December 31, 2024?

Shore Bancshares' total assets were $6.23 billion as of December 31, 2024.

How did SHBI's net interest margin change in Q4 2024?

The net interest margin decreased to 3.03% in Q4 2024 from 3.17% in Q3 2024.

What was SHBI's efficiency ratio in Q4 2024?

The efficiency ratio improved to 64.21% in Q4 2024 from 67.49% in Q3 2024.

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Shore Bancshares Inc

NASDAQ:SHBI

SHBI Rankings

#3081 Ranked by Market Cap
#1043 Ranked by Dividends

SHBI Latest News

Oct 30, 2024
Shore Bancshares, Inc. Reports Quarterly Dividend of $0.12 Per Share
Oct 24, 2024
Shore Bancshares, Inc. Reports Three and Nine Months Financial Results
Aug 1, 2024
Shore Bancshares, Inc. Reports Quarterly Dividend of $0.12 Per Share
Jul 25, 2024
Shore Bancshares, Inc. Reports Second Quarter and First-Half Financial Results
May 2, 2024
Shore Bancshares, Inc. Reports 2024 First Quarter Financial Results

SHBI Stock Data

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