Shore Bancshares Reports 2022 Financial Results

Rhea-AI Summary

Shore Bancshares (NASDAQ - SHBI) reported a net income of $8.407 million for Q4 2022, down from $9.658 million in Q3 2022, but significantly up from $2.723 million in Q4 2021.

Fiscal 2022 saw a total net income of $31.177 million, a 103% increase from $15.368 million in 2021. The company anticipates further merger-related expenses due to its pending acquisition of The Community Financial Corporation (TCFC).

Net interest income for Q4 2022 was $26.9 million, while total assets increased slightly to $3.477 billion. The company's total deposits decreased by $16.5 million compared to the previous year.

Positive

• Net income for 2022 up 103% year-over-year to $31.177 million.
• Significant loan growth of over 20% in 2022.
• Noninterest income increased 71.0% in 2022, driven by mortgage division revenue.

Negative

• Q4 2022 net income decreased $1.251 million from Q3 2022.
• Total deposits fell by $16.5 million in 2022.
• Noninterest expense increased 62.0% year-over-year, impacting margins.

EASTON, Md., Jan. 26, 2023 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) (the "Company") reported net income of $8.407 million or $0.42 per diluted common share for the fourth quarter of 2022, compared to net income of $9.658 million or $0.49 per diluted common share for the third quarter of 2022, and net income of $2.723 million or $0.16 per diluted common share for the fourth quarter of 2021. Net income for the fiscal year of 2022 was $31.177 million or $1.57 per diluted common share, compared to net income for the fiscal year of 2021 of $15.368 million or $1.17 per diluted common share. Net income, excluding merger related expenses, for the fourth quarter of 2022 was $9.123 million or $0.46 per diluted common share, compared to net income, excluding merger related expenses, of $9.774 million or $0.49 per diluted common share for the third quarter of 2022 and net income, excluding merger related expenses, of $7.914 million or $0.46 per diluted common share for the fourth quarter 2021. Net income, excluding merger related expenses, for the fiscal year of 2022 was $32.728 million or $1.65 per diluted common share compared to net income for the fiscal year of 2021 of $21.237 million or $1.62 per diluted common share. On December 14, 2022, the Company and The Community Financial Corporation ("TCFC") announced that they had entered into a merger agreement pursuant to which TCFC will be merged with and into the Company. The Company anticipates additional merger-related expenses due to the pending TCFC acquisition.

When comparing net income, excluding merger related expenses, for the fourth quarter of 2022 to the third quarter of 2022, net income decreased $651 thousand due to a decrease in net interest income of $372 thousand and an increase in noninterest expense of $1.3 million partially offset by an increase in noninterest income of $518 thousand and a decrease in provision for credit losses of $225 thousand. When comparing net income, excluding merger related expenses, for the fourth quarter of 2022 to the fourth quarter of 2021, net income increased $1.2 million primarily due to increases in net interest income of $6.3 million and noninterest income of $733 thousand offset by increases in noninterest expense of $4.2 million due to the acquisition of Severn Bank ("Severn") in November of 2021.

"We are pleased to report our fourth quarter earnings and fiscal year 2022 financial results," said Lloyd L. "Scott" Beatty, Jr., President and Chief Executive Officer. "In 2022, we experienced significant loan growth of just over 20% and successful integration of Severn. With the recent announcement of our pending merger with TCFC, we expect the future of the combined organizations to be very promising given our ability to help customers with higher loan limits, make greater investments in technology and increased career opportunities for employees."

Balance Sheet Review

Total assets were $3.477 billion at December 31, 2022, a $17.1 million, or less than 1.0%, increase when compared to $3.460 billion at the end of 2021. During 2022, the Company shifted its asset mix by deploying cash and cash equivalents into higher yielding assets which consisted of loans and investment securities. As of December 31, 2022, the Company had 4 Paycheck Protection Program ("PPP') loans totaling $187 thousand that were outstanding.

Total deposits decreased $16.5 million, or less than 1%, when compared to December 31, 2021. The decrease in total deposits was due to decreases in money market and savings accounts of $85.7 million, noninterest-bearing deposits of $65.5 million and time deposits of $35.2 million, partially offset by an increase in interest bearing checking accounts of $170.0 million.

Total stockholders' equity increased $13.6 million, or 3.9%, when compared to December 31, 2021, primarily due to current year earnings, partially offset by an increase in unrealized losses on available for sale securities of $9.1 million. At December 31, 2022, the ratio of total equity to total assets was 10.48% and the ratio of total tangible equity to total tangible assets was 8.67% compared to 10.14% and 8.25% at the end of 2021, respectively.

Review of Quarterly Financial Results

Net interest income was $26.9 million for the fourth quarter of 2022, compared to $27.3 million for the third quarter of 2022 and $20.6 million for the fourth quarter of 2021. The decrease in net interest income when compared to the third quarter of 2022 was primarily due to increases in interest expense on interest-bearing deposits of $2.0 million. In addition, the decrease in the average balance on deposits with other banks of $187.3 million resulted in a decrease in interest income of $802 thousand, partially offset by an increase in interest and fees on loans of $1.7 million and interest on investment securities of $759 thousand. The improvement in interest and fees on loans was due to an increase in the average balance of loans of $140.0 million, or 6.0%. The decrease in interest on deposits at other banks was due to the utilization of cash to fund loan growth with higher yields. The increase in interest on taxable investment securities was driven by an increase in the rates of 33bps and an increase in the average balance within these securities of $43.1 million, or 7.0%.

The increase in net interest income when compared to the fourth quarter of 2021 was primarily due to increases in interest and fees on loans of $7.1 million, interest on taxable investment securities of $2.3 million and interest on deposits with other banks of $495 thousand, partially offset by expense increases in interest-bearing deposits of $3.3 million, short term borrowings of $69 thousand and long-term borrowings of $228 thousand.

The Company's net interest margin decreased to 3.35% for the fourth quarter of 2022 from 3.38% for the third quarter of 2022 and increased compared to 2.87% for the fourth quarter of 2021. The decrease in net interest margin when compared to the third quarter of 2022 was primarily due to higher rates paid on interest bearing deposits and borrowings partially offset by higher yields on earning assets. The increase in net interest margin compared to the fourth quarter of 2021 was due to significantly higher volume as well as improved yields on all earning assets.

The provision for credit losses was $450 thousand for the three months ended December 31, 2022. The comparable amounts were $675 thousand and $(1.7) million for the three months ended September 30, 2022, and December 31, 2021, respectively. The decrease in the provision for credit losses during the fourth quarter of 2022 as compared to the prior quarters was primarily a result of eliminating pandemic related qualitative reserves in the fourth quarter of 2022. Net charge offs for the fourth quarter of 2022 were $84 thousand, compared to net recoveries of $119 thousand for the third quarter of 2022 and net recoveries of $142 thousand for the fourth quarter of 2021. The ratio of the allowance for credit losses to period-end loans, excluding PPP loans and acquired loans, was 0.78% at December 31, 2022, compared to 0.84% at September 30, 2022, and 0.96% at December 31, 2021. The decline in the percentage of the allowance from the third quarter of 2022 was primarily due to eliminating pandemic related qualitative reserves. The decline in the percentage of the allowance from the fourth quarter of 2021 was primarily the result of lower historical loss experience as well as eliminating pandemic related qualitative reserves.

At December 31, 2022 and September 30, 2022, nonperforming assets were $4.0 million and $2.8 million, respectively. The balance of nonperforming assets increased primarily due to an increase in loans 90 days past due still accruing of $1.2 million at December 31, 2022 compared to September 30, 2022. When comparing the fourth quarter of 2022 to the fourth quarter of 2021, nonperforming assets increased $902 thousand, or 29.6%, primarily due to increases in loans 90 days past due and still accruing of $1.3 million, or 262.4% which was a result of growth and timing of matured loans. Accruing TDRs decreased $1.3 million, or 22.3%, compared to the fourth quarter of 2021. The ratio of nonperforming assets and accruing TDRs to total assets at December 31, 2022, and September 30, 2022 was 0.24% and 0.21% respectively, and was 0.25% at December 31, 2021. In addition, the ratio of accruing TDRs to total loans at December 31, 2022 was 0.17% compared to 0.19% at September 30, 2022 and 0.27% at December 31, 2021.

Total noninterest income for the fourth quarter of 2022 increased $518 thousand, or 9.7%, when compared to the third quarter of 2022 and increased $733 thousand, or 14.3%, when compared to the fourth quarter of 2021. The increase compared to the third quarter of 2022 was primarily due to increases in revenue associated with the mortgage division of $887 thousand, or 130.4%, partially offset by decreases in other banking fees of $206 thousand, or 6.5% and service charges on deposit accounts of $163 thousand, or 10.8%. The increase in noninterest income when compared to the fourth quarter of 2021 was primarily due to increases in revenue associated with the mortgage division of $619 thousand, or 65.3% and, service charges on deposit accounts of $112 thousand, or 9.1%.

Total noninterest expense, excluding merger related expenses, for the fourth quarter of 2022 increased $1.3 million or 6.9%, when compared to the third quarter of 2022 and increased $4.2 million, or 26.1%, when compared to the fourth quarter of 2021. The increase in noninterest expense when compared to the third quarter of 2022 was primarily due to an increase in accruals on bonuses and group insurance in the fourth quarter. The increase from the fourth quarter of 2021 was primarily due to increases in salaries and wages, employee related benefits, occupancy expense, data processing, amortization of intangible assets and legal and professional fees, which were all significantly impacted by adding Severn and its operations and the addition of two new branches in 2022.

Review of 2022 Financial Results

Net interest income for 2022 was $101.3 million, an increase of $37.2 million, or 58.0%, when compared to 2021. The increase in net interest income was primarily due to an increase in total interest income of $43.7 million, or 62.2%, specifically interest and fees on loans of $34.3 million, or 53.0%. The improvement in interest and fees on loans was primarily due to the increase in the average balance of $725.2 million, or 46.2%, coupled with accretion income from acquired loans of $3.0 million for 2022. Taxable investment securities and interest on deposits with other banks increased $6.5 million and $2.8 million, respectively, partially offset by an increase in total interest expense of $6.5 million, or 107.7%. The increase in interest expense was primarily the result of an increase in the average balance of interest-bearing deposits of $684.5 million, or 47.5%. Interest on short term and long-term borrowings increased by $988 thousand due to short and long-term advances with the FHLB and junior subordinated debt acquired as part of the Severn acquisition. The long-term advances with the FHLB matured in October of 2022.

The provision for credit losses for 2022 and 2021 was $1.9 million and $(358) thousand, respectively. The increase in provision for credit losses was the result of an increase in loans held for investment in 2022 of $436.9 million. The ratio of the allowance to total loans decreased from 0.66% at December 31, 2021, to 0.65% at December 31, 2022. Excluding PPP loans and acquired loans, the ratio of the allowance for credit losses to period-end loans was 0.78% at December 31, 2022, lower than the 0.96% at December 31, 2021, primarily due to lower historical loss experience and the elimination of pandemic related qualitative factors.

Total noninterest income for 2022 increased $9.6 million, or 71.0%, when compared to the same period in 2021. The increase in noninterest income primarily consisted of revenue associated with the mortgage division of $4.3 million, service charges on deposit accounts of $2.3 million, revenue from Mid-Maryland Title of $1.1 million and other noninterest income of $1.2 million. The increase in other noninterest income was primarily due to increases in rental fee income of $1.3 million.

Total noninterest expense, excluding merger related expenses, for 2022 increased $29.9 million, or 62.0%, when compared to the same period in 2021. The increase was primarily the result of higher salaries, employee benefits, occupancy expense, other intangibles, data processing costs, other noninterest expenses, and FDIC insurance premiums due to significant increases in new and existing customers and the acquisition of Severn and its operations and the addition of two new branches in 2022. In addition, during 2022 the Company recorded merger-related expenses of $1.2 million due to the acquisition of Severn and $935 thousand due to the pending merger with TCFC.

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: changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing war in Ukraine; the potential resurgence of the COVID-19 pandemic and related variants and mutations and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; 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; the transition away from USD LIBOR and uncertainty regarding potential alternative reference rates, including SOFR; 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; 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; 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.

 

Shore Bancshares, Inc. Financial Highlights (Unaudited) (Dollars in thousands, except per share data)
		For the Three Months Ended								For the Year Ended
		December 31,								December 31,
		2022			2021			Change		2022			2021			Change
PROFITABILITY FOR THE PERIOD
Net interest income		$	26,943		$	20,639		30.5	%	$	101,302		$	64,130		58.0	%
Provision for credit losses			450			(1,723)		126.1			1,925			(358)		637.7
Noninterest income			5,862			5,129		14.3			23,086			13,498		71.0
Noninterest expense			21,000			23,497		(10.6)			80,322			56,806		41.4
Income before income taxes			11,355			3,994		184.3			42,141			21,180		99.0
Income tax expense			2,948			1,271		131.9			10,964			5,812		88.6
Net income		$	8,407		$	2,723		208.7		$	31,177		$	15,368		102.9
Return on average assets			0.97	%		0.36	%	61	bp		0.90	%		0.66	%	24	bp
Return on average assets excluding amortization of intangibles and merger related expenses - Non-GAAP (2)			1.09			1.07		2			0.99			0.95		4
Return on average equity			9.22			3.59		563			8.76			6.86		190
Return on average tangible equity - Non-GAAP (1), (2)			12.83			13.06		(23)			11.96			11.34		62
Net interest margin			3.35			2.87		48			3.15			2.94		21
Efficiency ratio - GAAP			64.01			91.19		(2,718)			64.57			73.18		(861)
Efficiency ratio - Non-GAAP (1), (2)			59.59			60.13		(54)			61.21			61.15		6
PER SHARE DATA
Basic and diluted net income per common share		$	0.42		$	0.16		167.1	%	$	1.57		$	1.17		34.1	%
Dividends paid per common share		$	0.12		$	0.12		—		$	0.48		$	0.48		—
Book value per common share at period end			18.34			17.71		3.6
Tangible book value per common share at period end - Non-GAAP (1)			14.87			14.12		5.3
Market value at period end			17.43			20.85		(16.4)
Market range:
High			20.85			23.19		(10.1)			21.41			23.19		(7.7)
Low			17.04			17.50		(2.6)			17.04			12.99		31.2
AVERAGE BALANCE SHEET DATA
Loans		$	2,467,324		$	1,887,126		30.7	%	$	2,293,627		$	1,568,468		46.2	%
Investment securities			661,968			468,724		41.2			589,842			329,890		78.8
Earning assets			3,206,591			2,842,097		12.8			3,220,672			2,185,123		47.4
Assets			3,441,079			3,037,262		13.3			3,444,981			2,317,597		48.6
Deposits			3,006,734			2,547,151		18.0			3,014,109			2,015,624		49.5
Stockholders' equity			361,623			301,095		20.1			355,850			224,055		58.8
CREDIT QUALITY DATA
Net (recoveries) /chargeoffs		$	84		$	(142)		159.2	%	$	(774)		$	(414)		(87.0)	%
Nonaccrual loans		$	1,908		$	2,004		(4.8)
Loans 90 days past due and still accruing			1,841			508		262.4
Other real estate owned			197			532		(63.0)
Total nonperforming assets			3,946			3,044		29.6
Accruing troubled debt restructurings (TDRs)			4,405			5,667		(22.3)
Total nonperforming assets and accruing TDRs		$	8,351		$	8,711		(4.1)
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets			10.48	%		10.14	%	34	bp
Period-end tangible equity to tangible assets - Non-GAAP (1)			8.67			8.25		42
Annualized net (recoveries) to average loans			0.01			(0.03)		4			(0.03)	%		(0.03)	%	—	bp
Allowance for credit losses as a percent of:
Period-end loans (3)			0.65			0.66		(1)
Period-end loans (4)			0.78			0.96		(18)
Nonaccrual loans			872.27			695.81		17,646
Nonperforming assets			421.77			458.08		(3,631)
Accruing TDRs			377.82			246.06		13,176
Nonperforming assets and accruing TDRs			199.29			160.07		3,922
As a percent of total loans:
Nonaccrual loans			0.07			0.09		(2)
Accruing TDRs			0.17			0.27		(10)
Nonaccrual loans and accruing TDRs			0.25			0.36		(11)
As a percent of total loans+other real estate owned:
Nonperforming assets			0.15			0.14		1
Nonperforming assets and accruing TDRs			0.33			0.41		(8)
As a percent of total assets:
Nonaccrual loans			0.05			0.06		(1)
Nonperforming assets			0.11			0.09		2
Accruing TDRs			0.13			0.16		(3)
Nonperforming assets and accruing TDRs			0.24			0.25		(1)

(1)	See the reconciliation table that begins on page 14 of 15.
(2)	This ratio excludes merger related expenses (Non-GAAP) on page 5.
(3)	As of December 31, 2022 and December 31, 2021, these ratios include all loans held for investment, including PPP loans of $187 thousand and $27.6 million, respectively.
(4)	As of December 31, 2022 and December 31, 2021, these ratios exclude PPP loans, acquired loans, and the associated purchase discount mark on the acquired loans from both Severn and Northwest.

 

Shore Bancshares, Inc. Consolidated Balance Sheets (Unaudited) (In thousands, except per share data)
									December 31, 2022
			December 31,			December 31,			compared to
		2022			2021				December 31, 2021
ASSETS
Cash and due from banks		$	37,661		$	16,919			122.6
Interest-bearing deposits with other banks			17,838			566,694			(96.9)
Cash and cash equivalents			55,499			583,613			(90.5)
Investment securities available for sale (at fair value)			83,587			116,982			(28.5)
Investment securities held to maturity (at amortized cost)			559,455			404,594			38.3
Equity securities, at fair value			1,233			1,372			(10.1)
Restricted securities			11,169			4,159			168.6
Loans held for sale, at fair value			4,248			37,749			(88.7)
Loans held for investment			2,556,107			2,119,175			20.6
Less: allowance for credit losses			(16,643)			(13,944)			19.4
Loans, net			2,539,464			2,105,231			20.6
Premises and equipment, net			51,488			51,624			(0.3)
Goodwill			63,266			63,421			(0.2)
Other intangible assets, net			5,547			7,535			(26.4)
Other real estate owned, net			197			532			(63.0)
Mortgage servicing rights, at fair value			5,275			4,087			29.1
Right of use assets, net			9,629			11,370			(15.3)
Cash surrender value on life insurance			59,218			47,935			23.5
Other assets			28,001			19,932			40.5
Total assets		$	3,477,276		$	3,460,136			0.5
LIABILITIES
Noninterest-bearing deposits		$	862,015		$	927,497			(7.1)
Interest-bearing deposits			2,147,769			2,098,739			2.3
Total deposits			3,009,784			3,026,236			(0.5)
Securities sold under retail repurchase agreements			—			4,143			(100.0)
Advances from FHLB - short-term			40,000			—			—
Advances from FHLB - long-term			—			10,135			(100.0)
Subordinated debt			43,072			42,762			0.7
Total borrowings			83,072			57,040
Lease liabilities			9,908			11,567			(14.3)
Accrued expenses and other liabilities			10,227			14,600			(30.0)
Total liabilities			3,112,991			3,109,443			0.1
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; authorized 35,000,000 shares			199			198			0.5
Additional paid in capital			201,494			200,473			0.5
Retained earnings			171,613			149,966			14.4
Accumulated other comprehensive (loss) income			(9,021)			56			(16,208.9)
Total stockholders' equity			364,285			350,693			3.9
Total liabilities and stockholders' equity		$	3,477,276		$	3,460,136			0.5
Period-end common shares outstanding			19,865			19,808			0.3
Book value per common share		$	18.34		$	17.71			3.6

 

Shore Bancshares, Inc. Consolidated Statements of Income (Unaudited) (In thousands, except per share data)
		For the Three Months Ended									For the Year Ended
		December 31,								December 31,
		2022			2021			% Change		2022			2021			% Change
INTEREST INCOME
Interest and fees on loans		$	27,664		$	20,564		34.5	%	$	99,122		$	64,795		53.0	%
Interest on investment securities:
Taxable			3,945			1,663		137.2			11,507			5,006		129.9
Tax-exempt			6			—		100.0			6			—		100.0
Interest on deposits with other banks			664			169		292.9			3,210			368		772.3
Total interest income			32,279			22,396		44.1			113,845			70,169		62.2
INTEREST EXPENSE
Interest on deposits			4,554			1,272		258.0			9,983			4,461		123.8
Interest on short-term borrowings			72			3		2,300.0			74			8		825.0
Interest on long-term borrowings			710			482		47.3			2,486			1,570		58.3
Total interest expense			5,336			1,757		203.7			12,543			6,039		107.7
NET INTEREST INCOME			26,943			20,639		30.5			101,302			64,130		58.0
Provision for credit losses			450			(1,723)		126.1			1,925			(358)		637.7
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			26,493			22,362		18.5			99,377			64,488		54.1
NONINTEREST INCOME
Service charges on deposit accounts			1,346			1,234		9.1			5,652			3,396		66.4
Trust and investment fee income			401			522		(23.2)			1,784			1,881		(5.2)
Gains on sales and calls of investment securities			—			—		—			—			2		—
Interchange credits			1,280			1,043		22.7			4,812			3,964		21.4
Mortgage-banking revenue			1,567			948		65.3			5,210			948		449.6
Title Company revenue			194			247		(21.5)			1,340			247		442.5
Other noninterest income			1,074			1,135		(5.4)			4,288			3,060		40.1
Total noninterest income			5,862			5,129		14.3			23,086			13,498		71.0
NONINTEREST EXPENSE
Salaries and wages			8,909			7,727		15.3			35,931			21,222		69.3
Employee benefits			2,786			2,271		22.7			9,908			7,262		36.4
Occupancy expense			1,694			1,263		34.1			6,242			3,690		69.2
Furniture and equipment expense			648			385		68.3			2,018			1,553		29.9
Data processing			1,856			1,487		24.8			6,890			5,001		37.8
Directors' fees			222			170		30.6			839			620		35.3
Amortization of intangible assets			460			381		20.7			1,988			734		170.8
FDIC insurance premium expense			315			362		(13.0)			1,426			1,015		40.5
Other real estate owned, net			13			(2)		750.0			65			4		1,525.0
Legal and professional fees			636			150		324.0			2,840			1,742		63.0
Merger related expenses			967			7,615		(87.3)			2,098			8,530		(75.4)
Other noninterest expenses			2,494			1,688		47.7			10,077			5,433		85.5
Total noninterest expense			21,000			23,497		(10.6)			80,322			56,806		41.4
Income before income taxes			11,355			3,994		184.3			42,141			21,180		99.0
Income tax expense			2,948			1,271		131.9			10,964			5,812		88.6
NET INCOME		$	8,407		$	2,723		208.7		$	31,177		$	15,368		102.9
Weighted average shares outstanding - basic			19,862			17,180		15.6			19,847			13,119		51.3
Weighted average shares outstanding - diluted			19,862			17,180		15.6			19,847			13,119		51.3
Basic and diluted net income per common share		$	0.42		$	0.16		167.1		$	1.57		$	1.17		34.1
Dividends paid per common share			0.12			0.12		—			0.48			0.48		—

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets (Unaudited) (Dollars in thousands)
		For the Three Months Ended										For the Year Ended
		December 31,										December 31,
		2022					2021					2022					2021
		Average			Yield/		Average			Yield/		Average			Yield/		Average			Yield/
		balance			rate		balance			rate		balance			rate		balance			rate
Earning assets
Loans (1), (2), (3)		$	2,467,324		4.45	%	$	1,887,126		4.33	%	$	2,293,627		4.33	%	$	1,568,468		4.14	%
Investment securities
Taxable			661,519		2.39			468,724		1.42			589,729		1.95			329,890		1.52
Tax-exempt (1)			449		6.24			—		—			113		6.19			—		—
Interest-bearing deposits			77,299		3.40			486,247		0.14			337,203		0.95			286,765		0.13
Total earning assets			3,206,591		4.00	%		2,842,097		3.11	%		3,220,672		3.54	%		2,185,123		3.21	%
Cash and due from banks			29,358					22,625					18,158					19,838
Other assets			221,599					188,399					221,592					127,704
Allowance for credit losses			(16,469)					(15,859)					(15,441)					(15,068)
Total assets		$	3,441,079				$	3,037,262				$	3,444,981				$	2,317,597
Interest-bearing liabilities
Demand deposits		$	670,424		1.31	%	$	494,081		0.14	%	$	638,105		0.61	%	$	450,399		0.14	%
Money market and savings deposits			1,043,076		0.60			1,001,115		0.26			1,043,032		0.35			695,056		0.21
Certificates of deposit $100,000 or more			217,051		0.79			174,268		0.49			239,927		0.57			144,209		0.84
Other time deposits			205,293		0.62			173,975		0.50			204,536		0.56			151,429		0.78
Interest-bearing deposits			2,135,844		0.85			1,843,439		0.27			2,125,600		0.47			1,441,093		0.31
Securities sold under retail repurchase
agreements and federal funds purchased			—		—			3,972		0.30			683		0.29			3,017		0.27
Advances from FHLB - short-term			7,391		3.86			—		—			1,863		3.86			—		—
Advances from FHLB - long-term			653		(6.08)			6,630		2.21			7,701		0.45			1,671		0.60
Subordinated debt			43,031		6.64			36,589		5.12			42,917		5.71			27,528		5.67
Total interest-bearing liabilities			2,186,919		0.96	%		1,890,630		0.37	%		2,178,764		0.57	%		1,473,309		0.41	%
Noninterest-bearing deposits			870,890					703,712					888,509					574,531
Accrued expenses and other liabilities			21,647					141,825					21,858					45,702
Stockholders' equity			361,623					301,095					355,850					224,055
Total liabilities and stockholders' equity		$	3,441,079				$	3,037,262				$	3,444,981				$	2,317,597
Net interest spread					3.04	%				2.74	%				2.97	%				2.80	%
Net interest margin					3.35	%				2.87	%				3.15	%				2.94	%

(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.

 

Shore Bancshares, Inc. Financial Highlights By Quarter (Unaudited) (Dollars in thousands, except per share data)
		4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			Q4 2022		Q4 2022
		2022			2022			2022			2022			2021			compared to		compared to
		Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2022		Q4 2021
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income		$	26,981		$	27,350		$	24,656		$	22,469		$	20,652		(1.3)	%	30.6	%
Less: Taxable-equivalent adjustment			40			35			38			39			13		14.3		207.7
Net interest income			26,943			27,315			24,618			22,430			20,639		(1.4)		30.5
Provision for credit losses			450			675			200			600			(1,723)		(33.3)		126.1
Noninterest income			5,862			5,344			5,833			6,046			5,129		9.7		14.3
Noninterest expense			21,000			18,899			20,094			20,332			23,497		11.1		(10.6)
Income before income taxes			11,355			13,085			10,157			7,544			3,994		(13.2)		184.3
Income tax expense			2,948			3,427			2,658			1,931			1,271		(14.0)		131.9
Net income		$	8,407		$	9,658		$	7,499		$	5,613		$	2,723		(13.0)		208.7
Return on average assets			0.97	%		1.11	%		0.88	%		0.65	%		0.36	%	(14)	bp	61	bp
Return on average assets excluding amortization of intangibles and merger related expenses - Non-GAAP (2)			1.09			1.17			0.94			0.76			1.07		(8)		2
Return on average equity			9.22			10.72			8.52			6.45			3.59		(150)		563
Return on average tangible equity - Non-GAAP (1)			12.83			13.98			11.41			9.40			13.06		(115)		(23)
Net interest margin			3.35			3.38			3.10			2.78			2.87		(3)		48
Efficiency ratio - GAAP			64.01			57.87			65.99			71.40			91.19		614		(2,718)
Efficiency ratio - Non-GAAP (1), (2)			59.59			55.79			63.44			66.93			60.13		380		(54)
PER SHARE DATA
Basic and diluted net income per common share		$	0.42		$	0.49		$	0.38		$	0.28		$	0.16		(13.6)	%	164.5	%
Dividends paid per common share			0.12			0.12			0.12			0.12			0.12		—		—
Book value per common share at period end			18.34			17.99			17.77			17.73			17.71		1.9		3.6
Tangible book value per common share at period end - Non-GAAP (1)			14.87			14.50			14.26			14.19			14.12		2.6		5.3
Market value at period end			17.43			17.32			18.50			20.48			20.85		0.6		(16.4)
Market range:
High			20.85			20.50			21.21			21.41			23.19		1.7		(10.1)
Low			17.04			17.29			17.91			19.34			17.50		(1.4)		(2.6)
AVERAGE BALANCE SHEET DATA
Loans		$	2,467,324		$	2,327,279		$	2,217,139		$	2,135,734		$	1,887,126		6.0	%	30.7	%
Investment securities			661,968			618,378			546,252			531,017			468,724		7.0		41.2
Earning assets			3,206,591			3,210,233			3,189,926			3,253,549			2,842,097		(0.1)		12.8
Assets			3,441,079			3,444,365			3,419,168			3,477,481			3,037,262		(0.1)		13.3
Deposits			3,006,734			3,012,658			2,993,098			3,044,213			2,547,151		(0.2)		18.0
Stockholders' equity			361,623			357,383			353,192			353,011			301,095		1.2		20.1
CREDIT QUALITY DATA
Net (recoveries) / chargeoffs		$	84		$	(119)		$	(573)		$	(166)		$	(142)		170.6	%	159.2	%
Nonaccrual loans		$	1,908		$	1,949		$	2,693		$	2,848		$	2,004		(2.1)		(4.8)
Loans 90 days past due and still accruing			1,841			644			803			459			508		185.9		262.4
Other real estate owned			197			197			197			561			532		—		(63.0)
Total nonperforming assets		$	3,946		$	2,790		$	3,693		$	3,868		$	3,044		41.4		29.6
Accruing troubled debt restructurings (TDRs)		$	4,405		$	4,458		$	4,894		$	5,004		$	5,667		(1.2)		(22.3)
Total nonperforming assets and accruing TDRs		$	8,351		$	7,248		$	8,587		$	8,872		$	8,711		15.2		(4.1)
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets			10.48	%		10.36	%		10.25	%		10.07	%		10.14	%	12	bp	34	bp
Period-end tangible equity to tangible assets - Non-GAAP (1)			8.67			8.52			8.39			8.22			8.25		15		42
Annualized net (recoveries)  to average loans			0.01			(0.02)			(0.10)			(0.03)			(0.03)		3		4
Allowance for credit losses as a percent of:
Period-end loans (3)			0.65			0.68			0.68			0.67			0.66		(3)		(1)
Period-end loans (4)			0.78			0.84			0.89			0.92			0.96		(6)		(18)
Nonaccrual loans			872.27			835.15			574.94			516.50			695.81		3,712		17,646
Nonperforming assets			421.77			583.41			419.25			380.30			458.08		(16,164)		(3,631)
Accruing TDRs			377.82			365.12			316.37			293.96			246.06		1,270		13,176
Nonperforming assets and accruing TDRs			199.29			224.57			180.31			165.80			160.07		(2,528)		3,922
As a percent of total loans:
Nonaccrual loans			0.07			0.08			0.12			0.13			0.09		(1)		(2)
Accruing TDRs			0.17			0.19			0.22			0.23			0.27		(2)		(10)
Nonaccrual loans and accruing TDRs			0.25			0.27			0.34			0.36			0.36		(2)		(11)
As a percent of total loans+other real estate owned:
Nonperforming assets			0.15			0.12			0.16			0.18			0.14		3		1
Nonperforming assets and accruing TDRs			0.33			0.30			0.38			0.41			0.41		3		(8)
As a percent of total assets:
Nonaccrual loans			0.05			0.06			0.08			0.08			0.06		(1)		(1)
Nonperforming assets			0.11			0.08			0.11			0.11			0.09		3		2
Accruing TDRs			0.13			0.13			0.14			0.14			0.16		—		(3)
Nonperforming assets and accruing TDRs			0.24			0.21			0.25			0.25			0.25		3		(1)

(1)	See the reconciliation table that begins on page 14.
(2)	This ratio excludes merger related expenses (Non-GAAP) on page 10.
(3)	Includes all loans held for investment, including PPP loan balances for all periods shown.
(4)	For all periods shown, these ratios exclude PPP loans, acquired loans, and the associated purchase discount mark on the acquired loans from both Severn and Northwest.

 

Shore Bancshares, Inc. Consolidated Statements of Income By Quarter (Unaudited) (In thousands, except per share data)
																	Q4 2022		Q4 2022
																	compared to		compared to
		Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2022		Q4 2021
INTEREST INCOME
Interest and fees on loans		$	27,664		$	25,924		$	23,452		$	22,085		$	20,564		6.7	%	34.5	%
Interest on investment securities:
Taxable			3,945			3,186			2,392			1,985			1,663		23.8		137.2
Tax-exempt			6			—			—			—			—		100.0		100.0
Interest on deposits with other banks			664			1,466			826			254			169		(54.7)		292.9
Total interest income			32,279			30,576			26,670			24,324			22,396		5.6		44.1
INTEREST EXPENSE
Interest on deposits			4,554			2,561			1,511			1,358			1,272		77.8		258.0
Interest on short-term borrowings			72			—			—			2			3		100.0		2,300.0
Interest on long-term borrowings			710			700			541			534			482		1.4		47.3
Total interest expense			5,336			3,261			2,052			1,894			1,757		63.6		203.7
NET INTEREST INCOME			26,943			27,315			24,618			22,430			20,639		(1.4)		30.5
Provision for credit losses			450			675			200			600			(1,723)		(33.3)		126.1
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			26,493			26,640			24,418			21,830			22,362		(0.6)		18.5
NONINTEREST INCOME
Service charges on deposit accounts			1,346			1,509			1,438			1,359			1,234		(10.8)		9.1
Trust and investment fee income			401			421			447			514			522		(4.8)		(23.2)
Interchange credits			1,280			1,241			1,253			1,038			1,043		3.1		22.7
Mortgage-banking revenue			1,567			680			1,096			1,867			948		130.4		65.3
Title Company revenue			194			397			426			323			247		(51.1)		(21.5)
Other noninterest income			1,074			1,096			1,173			945			1,135		(2.0)		(5.4)
Total noninterest income			5,862			5,344			5,833			6,046			5,129		9.7		14.3
NONINTEREST EXPENSE
Salaries and wages			8,909			8,562			8,898			9,562			7,727		4.1		15.3
Employee benefits			2,786			2,191			2,269			2,662			2,271		27.2		22.7
Occupancy expense			1,694			1,496			1,485			1,567			1,263		13.2		34.1
Furniture and equipment expense			648			533			411			429			385		21.6		68.3
Data processing			1,856			1,759			1,668			1,607			1,487		5.5		24.8
Directors' fees			222			217			210			190			170		2.3		30.6
Amortization of intangible assets			460			499			511			517			381		(7.8)		20.7
FDIC insurance premium expense			315			339			429			343			362		(7.1)		(13.0)
Other real estate owned expenses, net			13			1			57			(6)			(2)		1,200.0		750.0
Legal and professional fees			636			756			811			637			150		(15.9)		324.0
Merger related expenses			967			159			241			730			7,615		508.2		(87.3)
Other noninterest expenses			2,494			2,387			3,104			2,094			1,688		4.5		47.7
Total noninterest expense			21,000			18,899			20,094			20,332			23,497		11.1		(10.6)
Income before income taxes			11,355			13,085			10,157			7,544			3,994		(13.2)		184.3
Income tax expense			2,948			3,427			2,658			1,931			1,271		(14.0)		131.9
NET INCOME		$	8,407		$	9,658		$	7,499		$	5,613		$	2,723		(13.0)		208.7
Weighted average shares outstanding - basic			19,862			19,852			19,847			19,828			17,180		0.1		15.6
Weighted average shares outstanding - diluted			19,862			19,852			19,847			19,828			17,180		0.1		15.6
Basic and diluted net income per common share		$	0.42		$	0.49		$	0.38		$	0.28		$	0.16		(13.6)		164.5
Dividends paid per common share			0.12			0.12			0.12			0.12			0.12		—		—

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets By Quarter (Unaudited) (Dollars in thousands)
																											Average balance
																											Q4 2022		Q4 2022
																											compared to		compared to
		Q4 2022					Q3 2022					Q2 2022					Q1 2022					Q4 2021					Q3 2022		Q4 2021
		Average			Yield/		Average			Yield/		Average			Yield/		Average			Yield/		Average			Yield/
		balance			rate		balance			rate		balance			rate		balance			rate		balance			rate
Earning assets
Loans (1), (2), (3)		$	2,467,324		4.45	%	$	2,327,279		4.43	%	$	2,217,139		4.25	%	$	2,135,734		4.20	%	$	1,887,126		4.33	%	6.0	%	30.7	%
Investment securities
Taxable			661,519		2.39			618,378		2.06			546,252		1.75			531,017		1.49			468,724		1.42		7.0		41.1
Tax-exempt (1)			449		6.24			—		—			—		—			—		—			—		—		100.0		100.0
Interest-bearing deposits			77,299		3.40			264,576		2.20			426,535		0.78			586,798		0.18			486,247		0.14		(70.8)		(84.1)
Total earning assets			3,206,591		4.00	%		3,210,233		3.78	%		3,189,926		3.36	%		3,253,549		3.01	%		2,842,097		3.11	%	(0.1)		12.8
Cash and due from banks			29,358					31,724					26,162					(15,253)					22,625				(7.5)		29.8
Other assets			221,599					218,163					218,353					253,424					188,399				1.6		17.6
Allowance for credit losses			(16,469)					(15,755)					(15,273)					(14,239)					(15,859)				4.5		3.8
Total assets		$	3,441,079				$	3,444,365				$	3,419,168				$	3,477,481				$	3,037,262				(0.1)		13.3
Interest-bearing liabilities
Demand deposits		$	670,424		1.31	%	$	646,399		0.66	%	$	644,881		0.22	%	$	589,737		0.16	%	$	494,081		0.14	%	3.7		35.7
Money market and savings deposits			1,043,076		0.60			1,034,580		0.35			1,019,295		0.21			1,075,791		0.23			1,001,115		0.26		0.8		4.2
Certificates of deposit $100,000 or more			217,051		0.79			222,697		0.55			234,325		0.58			286,587		0.40			174,268		0.49		(2.5)		24.6
Other time deposits			205,293		0.62			215,014		0.51			221,714		0.54			175,683		0.57			173,975		0.50		(4.5)		18.0
Interest-bearing deposits			2,135,844		0.85			2,118,690		0.48			2,120,215		0.29			2,127,798		0.26			1,843,439		0.27		0.8		15.9
Securities sold under retail repurchase agreements
and federal funds purchased			—		—			—		—			—		—			2,770		0.29			3,972		0.30		—		(100.0)
Advances from FHLB - short-term			7,391		3.86			—		—			—		—			—		—			—		—		100.0		100.0
Advances from FHLB - long-term			653		(6.08)			10,035		0.63			10,075		0.60			10,116		0.57			6,630		2.21		(93.5)		(90.2)
Subordinated debt			43,031		6.64			42,953		6.33			42,876		4.93			42,804		4.93			36,589		5.12		0.2		17.6
Total interest-bearing liabilities			2,186,919		0.96	%		2,171,678		0.60	%		2,173,166		0.38	%		2,183,488		0.35	%		1,890,630		0.37	%	0.7		15.7
Noninterest-bearing deposits			870,890					893,968					872,883					916,415					703,712				(2.6)		23.8
Accrued expenses and other liabilities			21,647					21,336					19,927					24,567					141,825				1.5		(84.7)
Stockholders' equity			361,623					357,383					353,192					353,011					301,095				1.2		20.1
Total liabilities and stockholders' equity		$	3,441,079				$	3,444,365				$	3,419,168				$	3,477,481				$	3,037,262				(0.1)		13.3
Net interest spread					3.04	%				3.18	%				2.98	%				2.66	%				2.74	%
Net interest margin					3.35	%				3.38	%				3.10	%				2.78	%				2.87	%

(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.

 

Shore Bancshares, Inc. Reconciliation of Generally Accepted Accounting Principles (GAAP) and Non-GAAP Measures (Unaudited) (In thousands, except per share data)
																	YTD			YTD
		Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021			12/31/2022			12/31/2021
The following reconciles return on average equity and return on average tangible equity (Note 1):
Net Income		$	8,407		$	9,658		$	7,499		$	5,613		$	2,723		$	31,177		$	15,368
Net Income - annualized (A)		$	33,354		$	38,317		$	30,078		$	22,764		$	10,803		$	31,177		$	15,368
Net income, excluding net amortization of intangible assets
and merger related expenses		$	9,463		$	10,144		$	8,054		$	6,541		$	8,176		$	34,201		$	22,279
Net income, excluding net amortization of intangible assets and merger related expenses - annualized (B)		$	37,543		$	40,245		$	32,305		$	26,527		$	32,437		$	34,201		$	22,279
Return on average assets excluding net amortization of intangible assets and merger related expenses - Non-GAAP			1.09	%		1.17	%		0.94	%		0.76	%		1.07	%		0.99	%		0.95	%
Average stockholders' equity (C)		$	361,623		$	357,383		$	353,192		$	353,011		$	301,095		$	355,850		$	224,055
Less:  Average goodwill and other intangible assets			(69,077)			(69,558)			(70,057)			(70,711)			(52,692)			(69,845)			(27,535)
Average tangible equity (D)		$	292,546		$	287,825		$	283,135		$	282,300		$	248,403		$	286,005		$	196,520
Return on average equity (GAAP)  (A)/(C)			9.22	%		10.72	%		8.52	%		6.45	%		3.59	%		8.76	%		6.86	%
Return on average tangible equity (Non-GAAP)  (B)/(D)			12.83	%		13.98	%		11.41	%		9.40	%		13.06	%		11.96	%		11.34	%
The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio (Note 2):
Noninterest expense (E)		$	21,000		$	18,899		$	20,094		$	20,332		$	23,497		$	80,322		$	56,806
Less:  Amortization of intangible assets			(460)			(499)			(511)			(517)			(381)			(1,988)			(734)
Merger Expenses			(967)			(159)			(241)			(730)			(7,615)			(2,098)			(8,530)
Adjusted noninterest expense (F)		$	19,573		$	18,241		$	19,342		$	19,085		$	15,501		$	76,236		$	47,542
Net interest income (G)			26,943			27,315			24,618			22,430			20,639			101,302			64,130
Add:  Taxable-equivalent adjustment			40			35			38			39			13			155			121
Taxable-equivalent net interest income (H)		$	26,983		$	27,350		$	24,656		$	22,469		$	20,652		$	101,457		$	64,251
Noninterest income (I)		$	5,862		$	5,344		$	5,833		$	6,046		$	5,129		$	23,086			13,498
Less:  Investment securities (gains)			—			—			—			—			—			—			(2)
Adjusted noninterest income (J)		$	5,862		$	5,344		$	5,833		$	6,046		$	5,129		$	23,086		$	13,496
Efficiency ratio (GAAP)  (E)/(G)+(I)			64.01	%		57.87	%		65.99	%		71.40	%		91.19	%		64.57	%		73.18	%
Efficiency ratio (Non-GAAP)  (F)/(H)+(J)			59.59	%		55.79	%		63.44	%		66.93	%		60.13	%		61.21	%		61.15	%

 

The following reconciles book value per common share and tangible book value per common share (Note 1):
Stockholders' equity (L)		$	364,285		$	357,221		$	352,777		$	351,864		$	350,693
Less:  Goodwill and other intangible assets			(68,813)			(69,288)			(69,787)			(70,299)			(70,956)
Tangible equity (M)		$	295,472		$	287,933		$	282,990		$	281,565		$	279,737
Shares outstanding (N)			19,865			19,858			19,850			19,843			19,808
Book value per common share (GAAP)  (L)/(N)		$	18.34		$	17.99		$	17.77		$	17.73		$	17.71
Tangible book value per common share (Non-GAAP) (M)/(N)		$	14.87		$	14.50		$	14.26		$	14.19		$	14.12
The following reconciles equity to assets and tangible equity to tangible assets (Note 1):
Stockholders' equity (O)		$	364,285		$	357,221		$	352,777		$	351,864		$	350,693
Less:  Goodwill and other intangible assets			(68,813)			(69,288)			(69,787)			(70,299)			(70,956)
Tangible equity (P)		$	295,472		$	287,933		$	282,990		$	281,565		$	279,737
Assets (Q)		$	3,477,276		$	3,446,804		$	3,442,550		$	3,494,497		$	3,460,136
Less:  Goodwill and other intangible assets			(68,813)			(69,288)			(69,787)			(70,299)			(70,956)
Tangible assets (R)		$	3,408,463		$	3,377,516		$	3,372,763		$	3,424,198		$	3,389,180
Period-end equity/assets (GAAP)  (O)/(Q)			10.48	%		10.36	%		10.25	%		10.07	%		10.14	%
Period-end tangible equity/tangible assets (Non-GAAP)  (P)/(R)			8.67	%		8.52	%		8.39	%		8.22	%		8.25	%

Note 1: Management believes that reporting tangible equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.

Note 2: Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities.

 

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SOURCE Shore Bancshares, Inc.

FAQ

What were Shore Bancshares' Q4 2022 earnings results?

Shore Bancshares reported a net income of $8.407 million or $0.42 per diluted share for Q4 2022.

How did net income change for Shore Bancshares in 2022?

Net income for 2022 increased by 103% to $31.177 million compared to $15.368 million in 2021.

What is the stock symbol for Shore Bancshares?

The stock symbol for Shore Bancshares is SHBI.

What is the impact of the TCFC acquisition on Shore Bancshares?

The merger with TCFC is expected to incur additional expenses and enhance loan capabilities.

How much did Shore Bancshares' total deposits change in 2022?

Total deposits decreased by $16.5 million, or less than 1%, by the end of 2022.