Shore Bancshares, Inc. Reports Quarterly Dividend of $0.12 Per Share

Rhea-AI Summary

Shore Bancshares, Inc. (SHBI) has declared a quarterly common stock dividend of $0.12 per share, payable on February 29, 2024, to stockholders of record on February 12, 2024. The company is a financial holding company and the largest independent bank holding company located on Maryland's Eastern Shore, with its subsidiary Shore United Bank offering trust and wealth management services through Wye Financial Partners.

Insights

Financial Analyst

Shore Bancshares, Inc.'s declaration of a quarterly common stock dividend of $0.12 per share represents a tangible return to shareholders and is a critical aspect of shareholder value. Dividends are often a sign of a company's financial health and stability and can influence investor perception. The yield, calculated as the annual dividend per share divided by the stock price, is a key metric for income-focused investors. Additionally, the consistency and potential growth of dividends are closely monitored as they reflect a company's confidence in its future cash flows.

It is also important to consider the payout ratio, which is the proportion of earnings paid out as dividends to shareholders. A payout ratio that is too high may not be sustainable in the long term, while a low ratio could indicate that the company is reinvesting more back into growth. Investors should look at Shore Bancshares' earnings to assess the sustainability of the dividend. Furthermore, market reaction to dividend announcements can vary; a stock price may increase if the dividend meets or exceeds expectations or decline if the market perceives the dividend as unsustainable or a signal of slowing growth.

Market Research Analyst

The impact of Shore Bancshares' dividend declaration on the stock market can be multifaceted. For instance, it may attract a certain class of investors who prioritize steady income, such as retirees or conservative investors. This could potentially increase the demand for SHBI stock. However, the market's response can also be influenced by the broader economic context, such as interest rate trends, which affect the attractiveness of dividend stocks compared to fixed-income securities like bonds.

Moreover, as the largest independent bank holding company on Maryland's Eastern Shore, Shore Bancshares' performance and dividend payouts can be seen as an indicator of the regional economic health. A stable or increasing dividend may suggest robust local economic activity, which could bolster investor confidence not only in SHBI but also in regional investments. Conversely, if regional economic challenges arise, they could pressure the company's financial performance and future dividend sustainability.

EASTON, Md., Feb. 2, 2024 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) announced that the Board of Directors has declared a quarterly common stock dividend in the amount of $0.12 per share, payable February 29, 2024 to stockholders of record on February 12, 2024.

Shore Bancshares Information

Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the largest independent bank holding company located on Maryland's Eastern Shore. It is the parent company of Shore United Bank. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank.

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 expected cost savings, synergies and other financial benefits from the acquisition of TCFC or any other acquisition the Company has made or may make might not be realized within the expected time frames or at all; 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; recent 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 wars in Ukraine and the Middle East; uncertainty in U.S. fiscal and monetary policy, including the 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; any failures to adequately manage the transition from USD LIBOR as a reference rate; 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; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; 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; our ability to remediate the material weakness identified in our 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. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Shore Bancshares, Inc. with the Securities and Exchange Commission entitled "Risk Factors."

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.

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SOURCE Shore Bancshares, Inc.

FAQ

What is the amount of the quarterly common stock dividend declared by Shore Bancshares, Inc. (SHBI)?

The quarterly common stock dividend declared by Shore Bancshares, Inc. (SHBI) is $0.12 per share.

When is the quarterly common stock dividend payable to stockholders of Shore Bancshares, Inc. (SHBI)?

The quarterly common stock dividend is payable on February 29, 2024, to stockholders of record on February 12, 2024.

Where is Shore Bancshares, Inc. (SHBI) headquartered?

Shore Bancshares, Inc. (SHBI) is headquartered in Easton, Maryland.

What services does Shore Bancshares, Inc. (SHBI) offer through its subsidiary Shore United Bank?

Shore Bancshares, Inc. (SHBI) offers trust and wealth management services through its subsidiary Shore United Bank, including services provided by Wye Financial Partners.