Shore Bancshares Reports Second Quarter and First-Half Financial Results

Rhea-AI Summary

Shore Bancshares (NASDAQ: SHBI) reported a net income of $7.499 million or $0.38 per diluted share for Q2 2022, up from $5.613 million ($0.28/share) in Q1 2022. For H1 2022, net income reached $13.112 million or $0.66/share, compared to $8.028 million ($0.68/share) in H1 2021. The increase in Q2 net income was driven by a $2.2 million rise in net interest income, totaling $24.6 million, and a strong loan demand. However, noninterest expenses rose by $9.4 million primarily due to the Severn Bank acquisition. Total assets slightly decreased to $3.443 billion as of June 30, 2022.

Positive

• Q2 2022 net interest income increased to $24.6 million from $22.4 million in Q1 2022.
• Net income of $7.499 million in Q2 2022 marks a significant increase compared to Q1 2022.
• Total noninterest income doubled compared to the second quarter of 2021.

Negative

• Total noninterest expenses increased by $9.4 million due to the Severn Bank acquisition.
• Total assets decreased by $17.6 million, or less than 1%, compared to the end of 2021.

EASTON, Md., July 28, 2022 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ: SHBI) (the "Company") reported net income of $7.499 million or $0.38 per diluted common share for the second quarter of 2022, compared to net income of $5.613 million or $0.28 per diluted common share for the first quarter of 2022, and net income of $4.031 million or $0.34 per diluted common share for the second quarter of 2021. Net income for the first half of 2022 was $13.112 million or $0.66 per diluted common share, compared to net income for the first half of 2021 of $8.028 million or $0.68 per diluted common share. Net income, excluding merger related expenses for the second quarter of 2022 was $7.674 million or $0.39 per diluted common share, compared to net income, excluding merger related expenses of $6.156 million or $0.31 per diluted common share for the first quarter of 2022 and net income, excluding merger related expenses of $4.311 million or $0.37 per diluted common share for the second quarter 2021.

When comparing net income, excluding merger related expenses, for the second quarter of 2022 to the first quarter of 2022 net income increased $1.5 million due to an increase in net interest income of $2.2 million. When comparing net income, excluding merger related expenses, for the second quarter of 2022 to the second quarter of 2021, net income increased $3.3 million primarily due to increases in net interest income of $10.5 million and noninterest income of $2.9 million.  These improvements to income in the second quarter of 2022 were partially offset by an increase in noninterest expenses of $9.4 million primarily as a result of the acquisition of Severn Bank ("Severn") in November of 2021.  

"We are pleased to announce our second quarter financial results," said Lloyd L. "Scott" Beatty, Jr., President and Chief Executive Officer.  "We continue to see strong loan demand and opportunities for growth within our various markets.  With minimal merger expenses in the second quarter due to a shift from integration to operation, we noted positive trends in our ROA, efficiency ratio, and tangible book value.  Our outlook for the remainder of 2022 is a very positive one, as we continue to maintain our commitment and focus on core earnings and enhanced returns for our shareholders."

Balance Sheet Review

Total assets were $3.443 billion at June 30, 2022, a $17.6 million, or less than 1.0%, decrease when compared to $3.460 billion at the end of 2021. This decrease was due to a decline in interest bearing deposits with other banks of $182.2 million, or 32.1%, partially offset by increases in loans held for investment of $145.4 million, or 6.9%, and investment securities held to maturity of $54.4 million, or 13.4%. The positive organic loan growth for loans held for investment was due to strong loan demand, specifically within our commercial real estate, residential real estate and consumer loan portfolios, partially offset by paydowns in the commercial loan portfolio.  As of June 30, 2022, the Company had 37 Paycheck Protection Program ("PPP') loans totaling $1.7 million that were outstanding.

Total deposits decreased $11.9 million, or less than 1%, when compared to December 31, 2021. The decrease in total deposits was primarily due to decreases in money market and savings accounts of $79.7 million, $38.4 million in noninterest-bearing deposits and $12.0 million in time deposits offset by an increase in interest bearing checking accounts of $118.1 million.    

Total stockholders' equity increased $2.1 million, or less than 1%, when compared to December 31, 2021, primarily due to current year earnings, partially offset by an increase in unrealized losses of $6.7 million (net of tax) on available for sale securities which are recorded in accumulated other comprehensive income (loss). At June 30, 2022, the ratio of total equity to total assets was 10.25% and the ratio of total tangible equity to total tangible assets was 8.39% compared to 10.14% and 8.25% at the end of 2021.

Review of Quarterly Financial Results

Net interest income was $24.6 million for the second quarter of 2022, compared to $22.4 million for the first quarter of 2022 and $14.1 million for the second quarter of 2021. The increase in net interest income when compared to the first quarter of 2022 was primarily due to increases in interest and fees on loans of $1.4 million, interest on deposits with other banks of $572 thousand and interest on investment securities of $407 thousand, partially offset by an increase in expense on interest-bearing deposits of $153 thousand. The improvement in interest and fees on loans was due to an increase in the average balance of loans of $81.4 million, or 3.8%. Accretion income from loans acquired from Severn increased over first quarter by $265 thousand. The increase in interest on deposits with other banks was primarily due to the recent increases to the fed funds rate.  The increase in interest on taxable investment securities was driven by an increase in the rates of 26bps and an increase in the average balance within these securities of $15.2 million, or 2.9%, resulting from additional purchases of held to maturity securities during second quarter of 2022. The increase in deposits with other banks and investment securities was primarily due to excess liquidity.   

The increase in net interest income when compared to the second quarter of 2021 was primarily due to increases in interest and fees on loans of $9.1 million, interest on taxable investment securities of $1.3 million and interest on deposits with other banks of $771 thousand, partially offset by increases in expenses on interest-bearing deposits of $455 thousand and long-term borrowings of $171 thousand, all of which were significantly impacted by the acquisition of Severn in the fourth quarter of 2021.  Excluding the merger related impact to the balance sheet, organic loan growth and excess liquidity resulted in an improved overall yield on total earning assets, while maintaining lower cost of funding on core deposits.

The Company's net interest margin increased to 3.10% for the second quarter of 2022 from 2.78% for the first quarter of 2022 and 2.91% for the second quarter of 2021. The increase in net interest margin when compared to the first quarter of 2022 and second quarter of 2021 was primarily due to higher average loan balances, accretion income from purchased loans and higher rates paid on lower yielding assets. Excess liquidity continues to compress the overall net interest margin. Absent excess liquidity of $200 million, we estimate our margin for the second quarter of 2022 would have been 3.31%.

The provision for credit losses was $200 thousand for the three months ended June 30, 2022.  The comparable amounts were $600 thousand and $650 thousand for the three months ended March 31, 2022 and June 30, 2021, respectively. The decrease in the provision for credit losses during the second quarter of 2022 as compared to the prior quarters was primarily attributed to significant net recoveries.  Net recoveries for the second quarter of 2022 were $573 thousand, compared to net recoveries of $166 thousand for the first quarter of 2022 and net recoveries of $125 thousand for the second quarter 2021.  The ratio of the allowance for credit losses to period-end loans, excluding PPP loans and acquired loans, was 0.89% at June 30, 2022, compared to 0.92% at March 31, 2022 and 1.12% at June 30, 2021. The decline in the percentage of the allowance from the first quarter of 2022 was primarily due to decreased historical loss experience.  The decline in the percentage of the allowance from the second quarter of 2021 was primarily the result of improved credit quality, including lower historical loss experience as well as lower pandemic related qualitative reserves.

At June 30, 2022 and March 31, 2022, nonperforming assets were $4.0 million and $3.9 million respectively. The balance of nonperforming assets increased primarily due to an increase in loans 90 days past due still accruing of $671 thousand, or 146.2%, partially offset by a decrease in other real estate owned ("OREO") of $364 thousand, or 64.9%, and nonaccrual loans of $155 thousand, or 5.4%.  Accruing troubled debt restructuring ("TDRs") decreased $110 thousand, or 2.2%,  at June 30, 2022 compared to March 31, 2022.  When comparing the second quarter of 2022 to the second quarter of 2021, nonperforming assets decreased $882 thousand, or 18.0%, primarily due to decreases in nonaccrual loans of $1.3 million, or 31.8%, offset by an increase in loans 90 days past due still accruing of $378 thousand, or 50.3%. Accruing TDRs decreased $1.4 million, or 22.8%. The ratio of nonperforming assets and accruing TDRs to total assets was 0.26%, 0.25% and 0.53% at June 30, 2022, March 31, 2022 and June 30, 2021, respectively.  In addition, the ratio of accruing TDRs to total loans at June 30, 2022 was 0.22% compared to 0.23% at March 31, 2022 and 0.43% at June 30, 2021.

Total noninterest income for the second quarter of 2022 decreased $213 thousand, or 3.5%, when compared to the first quarter of 2022 and increased $2.9 million, or 100.9%, when compared to the second quarter of 2021. The decrease compared to the first quarter of 2022 was primarily due to a decrease in revenue associated with the mortgage division of $771 thousand, or 41.3%, and partially offset by increases in interchange credits of $215 thousand, Mid-MD Title Company ("Mid-MD Title") revenue of $103 thousand and service charges on deposit accounts of $79 thousand.  The increase in noninterest income when compared to the second quarter of 2021 was largely impacted by the addition of Severn in the fourth quarter of 2021 which included mortgage-banking revenue of $1.1 million and Mid-MD Title revenue of $426 thousand and also contributed to the increase in service charges on deposit accounts of $755 thousand and interchange fees of $217 thousand.

Total noninterest expense, excluding merger related expenses, for the second quarter of 2022 increased $251 thousand or 1.2%, when compared to the first quarter of 2022 and increased $9.4 million, or 89.1%, when compared to the second quarter of 2021. The increase in noninterest expense when compared to the first quarter of 2022 was primarily due to increases in fee and loan servicing expenses as well as derivatives expense.  The increase from the second 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.  

Review of Six-Month Financial Results

Net interest income for the first six months of 2022 was $47.0 million, an increase of $19.1 million, or 68.6%, when compared to the first six months of 2021.  The increase in net interest income was primarily due to an increase in total interest income of $20.1 million, or 65.2%, specifically interest and fees on loans of $16.8 million, or 58.4%. The improvement of interest and fees on loans was primarily due to the increase in the average balance of $740.5 million, or 51.1%, coupled with accretion income from the acquired loans of $1.5 million for the first six months of 2022.  Taxable investment securities and interest on deposits with other banks increased $2.4 million and $978 thousand, respectively, partially offset by an increase in total interest expense of $974 thousand. The increase in interest expense was the result of an increase in the average balance of interest bearing deposits of $860.6 million, or 68.1%, despite the rates paid on these deposits declining 9bps.  Interest on long term borrowings increased by $346 thousand due to long-term advances with FHLB and junior subordinated debt acquired as part of the Severn acquisition.   

The provision for credit losses for the six months ended June 30, 2022 and 2021 was $800 thousand and $1.1 million, respectively. The decrease in provision for credit losses was the result of significant recoveries in the first six months of 2022 of $739 thousand compared to $125 thousand for the first six months of 2021. The ratio of the allowance to total loans decreased from 1.02% at June 30, 2021, to 0.68% at June 30, 2022. Excluding PPP loans and acquired loans, the ratio of the allowance for credit losses to period-end loans was 0.89% at June 30, 2022, lower than the 1.12% at June 30, 2021, primarily due to improved credit quality, lower historical loss experience, and reduced pandemic related qualitative factors.

Total noninterest income for the six months ended June 30, 2022 increased $6.4 million, or 117.6%, when compared to the same period in 2021. The increase in noninterest income primarily consisted of revenue associated with the mortgage division of $3.0 million, service charges on deposit accounts of $1.4 million, revenue from Mid-Maryland Title of $749 thousand and other noninterest income of $803 thousand. The increase in other noninterest income was primarily due to increases in rental income of $666 thousand and other loan fee income of $232 thousand partially offset by losses of $88 thousand related to market value adjustments of equity securities.

Total noninterest expense, excluding merger related expenses, for the six months ended June 30, 2022 increased $18.5 million, or 87.9%, 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. In addition, as previously mentioned, during the first six months of 2022 the Company recorded merger-related expenses of $971 thousand due to the acquisition of Severn.  

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 magnitude and duration 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 Six Months Ended
		June 30,								June 30,
		2022			2021			Change		2022			2021			Change
PROFITABILITY FOR THE PERIOD
Net interest income		$	24,618		$	14,103		74.6	%	$	47,048		$	27,902		68.6	%
Provision for credit losses			200			650		(69.2)			800			1,075		(25.6)
Noninterest income			5,833			2,903		100.9			11,879			5,460		117.6
Noninterest expense			20,094			10,876		84.8			40,426			21,375		89.1
Income before income taxes			10,157			5,480		85.3			17,701			10,912		62.2
Income tax expense			2,658			1,449		83.4			4,589			2,884		59.1
Net income		$	7,499		$	4,031		86.0		$	13,112		$	8,028		63.3
Return on average assets			0.88	%		0.78	%	10	bp		0.77	%		0.80	%	(3)	bp
Return on average assets excluding amortization of intangibles and merger related expenses - Non-GAAP (2)			0.94			0.86		8			0.85			0.84		1
Return on average equity			8.52			8.19		33			7.49			8.23		(74)
Return on average tangible equity - Non-GAAP (1), (2)			11.41			9.89		152			10.41			9.62		79
Net interest margin			3.10			2.91		19			2.94			2.96		(2)
Efficiency ratio - GAAP			65.99			63.95		204			68.60			64.07		453
Efficiency ratio - Non-GAAP (1), (2)			63.44			60.90		254			65.13			62.06		307
PER SHARE DATA
Basic and diluted net income per common share		$	0.38		$	0.34		11.8	%	$	0.66		$	0.68		(2.9)	%
Dividends paid per common share		$	0.12		$	0.12		—		$	0.24		$	0.24		—
Book value per common share at period end			17.77			16.91		5.1
Tangible book value per common share at period end - Non-GAAP (1)			14.26			15.29		(6.7)
Market value at period end			18.50			16.75		10.4
Market range:
High			21.21			18.01		17.8			21.41			18.10		18.3
Low			17.91			16.10		11.2			17.91			12.99		37.9
AVERAGE BALANCE SHEET DATA
Loans		$	2,217,139		$	1,444,684		53.5	%	$	2,188,236		$	1,447,767		51.1	%
Investment securities			546,252			286,121		90.9			538,676			257,130		109.5
Earning assets			3,189,926			1,949,509		63.6			3,233,136			1,908,945		69.4
Assets			3,419,168			2,061,214		65.9			3,448,165			2,018,818		70.8
Deposits			2,993,098			1,822,148		64.3			3,018,517			1,782,627		69.3
Stockholders' equity			353,192			197,532		78.8			353,102			196,666		79.5
CREDIT QUALITY DATA
Net (recoveries) charge-offs		$	(573)		$	(125)		(358.4)	%	$	(739)		$	(125)		(491.2)	%
Nonaccrual loans		$	2,693		$	3,947		(31.8)
Loans 90 days past due and still accruing			1,130			752		50.3
Other real estate owned			197			203		(3.0)
Total nonperforming assets			4,020			4,902		(18.0)
Accruing troubled debt restructurings (TDRs)			4,894			6,338		(22.8)
Total nonperforming assets and accruing TDRs		$	8,914		$	11,240		(20.7)
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets			10.25	%		9.37	%	88	bp
Period-end tangible equity to tangible assets - Non-GAAP (1)			8.39			8.55		(16)
Annualized net (recoveries) charge-offs to average loans			(0.10)			(0.03)		(7)			(0.07)	%		(0.03)	%	(4)	bp
Allowance for credit losses as a percent of:
Period-end loans (3)			0.68			1.02		(34)
Period-end loans (4)			0.89			1.12		(23)
Nonaccrual loans			574.94			382.27		193
Nonperforming assets			385.15			307.79		77
Accruing TDRs			316.37			238.06		78
Nonperforming assets and accruing TDRs			173.69			134.23		39
As a percent of total loans:
Nonaccrual loans			0.12			0.27		(15)
Accruing TDRs			0.22			0.43		(21)
Nonaccrual loans and accruing TDRs			0.34			0.70		(36)
As a percent of total loans+other real estate owned:
Nonperforming assets			0.18			0.33		(15)
Nonperforming assets and accruing TDRs			0.39			0.76		(37)
As a percent of total assets:
Nonaccrual loans			0.08			0.19		(11)
Nonperforming assets			0.12			0.23		(11)
Accruing TDRs			0.14			0.30		(16)
Nonperforming assets and accruing TDRs			0.26			0.53		(27)
____________________
(1)   See the reconciliation table that begins on page 14 of 15.
(2)   This ratio excludes merger related expenses (Non-GAAP).
(3)   As of June 30, 2022 and June 30, 2021, these ratios include all loans held for investment, including PPP loans of $1.7 million and $86.8 million, respectively.
(4)   As of June 30, 2022 and June 30, 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)
											June 30, 2022		June 30, 2022
			June 30,			December 31,		June 30,			compared to		compared to
		2022			2021			2021			December 31, 2021		June 30, 2021
ASSETS
Cash and due from banks		$	18,473		$	16,919		$	18,275		9.2	%	1.1	%
Interest-bearing deposits with other banks			384,536			566,694			218,913		(32.1)		75.7
Cash and cash equivalents			403,009			583,613			237,188		(30.9)		69.9
Investment securities available for sale (at fair value)			94,689			116,982			113,957		(19.1)		(16.9)
Investment securities held to maturity (at amortized cost)			458,957			404,594			198,884		13.4		130.8
Equity securities, at fair value			1,271			1,372			1,384		(7.4)		(8.2)
Restricted securities			9,894			4,159			3,189		137.9		210.3
Loans held for sale, at fair value			7,306			37,749			-		(80.6)		-
Loans held for investment			2,264,579			2,119,175			1,472,429		6.9		53.8
Less: allowance for credit losses			(15,483)			(13,944)			(15,088)		11.0		(2.6)
Loans, net			2,249,096			2,105,231			1,457,341		6.8		54.3
Premises and equipment, net			52,244			51,624			25,313		1.2		106.4
Goodwill			63,281			63,421			17,518		(0.2)		261.2
Other intangible assets, net			6,506			7,535			1,473		(13.7)		341.7
Other real estate owned, net			197			532			203		(63.0)		(3.0)
Mortgage servicing rights, at fair value			5,228			4,087			—		27.9		—
Right of use assets, net			9,979			11,370			5,616		(12.2)		77.7
Cash surrender value on life insurance			58,437			47,935			41,672		21.9		40.2
Other assets			22,456			19,932			16,522		12.7		35.9
Total assets		$	3,442,550		$	3,460,136		$	2,120,260		(0.5)		62.4
LIABILITIES
Noninterest-bearing deposits		$	889,122		$	927,497		$	538,009		(4.1)		65.3
Interest-bearing deposits			2,125,209			2,098,739			1,342,573		1.3		58.3
Total deposits			3,014,331			3,026,236			1,880,582		(0.4)		60.3
Securities sold under retail repurchase agreements			—			4,143			2,907		(100.0)		(100.0)
Advances from FHLB - long-term			10,054			10,135			—		(0.8)		—
Subordinated debt			42,917			42,762			24,490		0.4		75.2
Total borrowings			52,971			57,040			27,397
Lease liabilities			10,216			11,567			5,757		(11.7)		77.5
Accrued expenses and other liabilities			12,255			14,600			7,842		(16.1)		56.3
Total liabilities			3,089,773			3,109,443			1,921,578		(0.6)		60.8
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; authorized 35,000,000 shares			198			198			118		—		67.8
Additional paid in capital			200,914			200,473			51,544		0.2		289.8
Retained earnings			158,316			149,966			146,414		5.6		8.1
Accumulated other comprehensive income (loss)			(6,651)			56			606		(11,976.8)		(1,197.5)
Total stockholders' equity			352,777			350,693			198,682		0.6		77.6
Total liabilities and stockholders' equity		$	3,442,550		$	3,460,136		$	2,120,260		(0.5)		62.4
Period-end common shares outstanding			19,850			19,808			11,752		0.2		68.9
Book value per common share		$	17.77		$	17.71		$	16.91		0.3		5.1

 

Shore Bancshares, Inc. Consolidated Statements of Income (Unaudited) (In thousands, except per share data)
		For the Three Months Ended									For the Six Months Ended
		June 30,								June 30,
		2022			2021			% Change		2022			2021			% Change
INTEREST INCOME
Interest and fees on loans		$	23,452		$	14,381		63.1	%	$	45,537		$	28,747		58.4	%
Interest on investment securities:
Taxable			2,392			1,095		118.4			4,377			2,025		116.1
Interest on deposits with other banks			826			55		1,401.8			1,080			102		958.8
Total interest income			26,670			15,531		71.7			50,994			30,874		65.2
INTEREST EXPENSE
Interest on deposits			1,511			1,056		43.1			2,869			2,240		28.1
Interest on short-term borrowings			—			2		(100.0)			2			3		(33.3)
Interest on long-term borrowings			541			370		46.2			1,075			729		—
Total interest expense			2,052			1,428		43.7			3,946			2,972		32.8
NET INTEREST INCOME			24,618			14,103		74.6			47,048			27,902		68.6
Provision for credit losses			200			650		(69.2)			800			1,075		(25.6)
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			24,418			13,453		81.5			46,248			26,827		72.4
NONINTEREST INCOME
Service charges on deposit accounts			1,438			683		110.5			2,797			1,357		106.1
Trust and investment fee income			447			475		(5.9)			961			882		9.0
Interchange credits			1,253			1,036		20.9			2,291			1,906		20.2
Mortgage-banking revenue			1,096			—		—			2,963			—		—
Title Company revenue			426			—		—			749			—		—
Other noninterest income			1,173			709		65.4			2,118			1,315		61.1
Total noninterest income			5,833			2,903		100.9			11,879			5,460		117.6
NONINTEREST EXPENSE
Salaries and wages			8,898			4,262		108.8			18,460			8,404		119.7
Employee benefits			2,269			1,493		52.0			4,931			3,337		47.8
Occupancy expense			1,485			770		92.9			3,052			1,584		92.7
Furniture and equipment expense			411			412		(0.2)			840			719		16.8
Data processing			1,668			1,217		37.1			3,275			2,344		39.7
Directors' fees			210			154		36.4			400			303		32.0
Amortization of intangible assets			511			120		325.8			1,028			246		317.9
FDIC insurance premium expense			429			223		92.4			772			408		89.2
Other real estate owned, net			57			1		5,600.0			51			2		2,450.0
Legal and professional fees			811			648		25.2			1,448			1,164		24.4
Merger related expenses			241			377		(36.1)			971			377		157.6
Other noninterest expenses			3,104			1,199		158.9			5,198			2,487		109.0
Total noninterest expense			20,094			10,876		84.8			40,426			21,375		89.1
Income before income taxes			10,157			5,480		85.3			17,701			10,912		62.2
Income tax expense			2,658			1,449		83.4			4,589			2,884		59.1
NET INCOME		$	7,499		$	4,031		86.0		$	13,112		$	8,028		63.3
Weighted average shares outstanding - basic			19,847			11,752		68.9			19,838			11,749		68.8
Weighted average shares outstanding - diluted			19,847			11,754		68.9			19,838			11,750		68.8
Basic and diluted net income per common share		$	0.38		$	0.34		11.8		$	0.66		$	0.68		(2.9)
Dividends paid per common share			0.12			0.12		—			0.24			0.24		—

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets (Unaudited) (Dollars in thousands)
		For the Three Months Ended										For the Six Months Ended
		June 30,										June 30,
		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)		$	2,217,139		4.25	%	$	1,444,684		4.00	%	$	2,188,236		4.20	%	$	1,447,767		4.01	%
Investment securities
Taxable			546,252		1.75			286,121		1.53			538,676		1.64			257,130		1.59
Interest-bearing deposits			426,535		0.78			218,704		0.10			506,224		0.43			204,048		0.10
Total earning assets			3,189,926		3.36	%		1,949,509		3.20	%		3,233,136		3.19	%		1,908,945		3.27	%
Cash and due from banks			26,162					16,908					5,569					18,070
Other assets			218,353					109,457					224,219					106,251
Allowance for credit losses			(15,273)					(14,660)					(14,759)					(14,448)
Total assets		$	3,419,168				$	2,061,214				$	3,448,165				$	2,018,818
Interest-bearing liabilities
Demand deposits		$	644,881		0.22	%	$	405,473		0.13	%	$	617,461		0.19	%	$	421,816		0.14	%
Money market and savings deposits			1,019,295		0.21			605,202		0.17			1,048,634		0.22			565,341		0.17
Certificates of deposit $100,000 or more			234,325		0.58			135,376		1.04			260,312		0.48			133,073		1.14
Other time deposits			221,714		0.54			143,821		0.90			198,828		0.55			144,367		1.00
Interest-bearing deposits			2,120,215		0.29			1,289,872		0.33			2,125,235		0.27			1,264,597		0.36
Securities sold under retail repurchase
agreements and federal funds purchased			—		—			3,123		0.26			1,377		0.29			2,683		0.23
Advances from FHLB - long-term			10,075		0.60			—		—			10,096		0.58			—		—
Subordinated debt			42,876		4.93			24,474		6.06			42,840		4.92			24,459		6.01
Total interest-bearing liabilities			2,173,166		0.38	%		1,317,469		0.43	%		2,179,548		0.37	%		1,291,739		0.46	%
Noninterest-bearing deposits			872,883					532,276					893,282					518,030
Accrued expenses and other liabilities			19,927					13,937					22,233					12,383
Stockholders' equity			353,192					197,532					353,102					196,666
Total liabilities and stockholders' equity		$	3,419,168				$	2,061,214				$	3,448,165				$	2,018,818
Net interest spread					2.98	%				2.77	%				2.82	%				2.81	%
Net interest margin					3.10	%				2.91	%				2.94	%				2.96	%
______________________
(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)
		2nd Quarter			1st Quarter			4th Quarter			3rd Quarter				2nd Quarter		Q2 2022		Q2 2022
		2022			2022			2021			2021				2021		compared to		compared to
		Q2 2022			Q1 2022			Q4 2021			Q3 2021				Q2 2021		Q1 2022		Q2 2021
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income		$	24,656		$	22,469		$	20,652		$	15,623		$	14,141		9.7	%	74.4	%
Less: Taxable-equivalent adjustment			38			39			13			34			38		(2.6)		—
Net interest income			24,618			22,430			20,639			15,589			14,103		9.8		74.6
Provision for credit losses			200			600			(1,723)			290			650		(66.7)		(69.2)
Noninterest income			5,833			6,046			5,129			2,909			2,903		(3.5)		100.9
Noninterest expense			20,094			20,332			23,497			11,934			10,876		(1.2)		84.8
Income before income taxes			10,157			7,544			3,994			6,274			5,480		34.6		85.3
Income tax expense			2,658			1,931			1,271			1,657			1,449		37.6		83.4
Net income		$	7,499		$	5,613		$	2,723		$	4,617		$	4,031		33.6		86.0
Return on average assets			0.88	%		0.65	%		0.36	%		0.84	%		0.78	%	23	bp	10	bp
Return on average assets excluding amortization of intangibles and merger related expenses - Non-GAAP (2)			0.94			0.76			1.07			0.94			0.86		18		8
Return on average equity			8.52			6.45			3.59			9.12			8.19		207		33
Return on average tangible equity - Non-GAAP (1)			11.41			9.40			13.06			11.12			9.89		201		152
Net interest margin			3.10			2.78			2.87			2.99			2.91		32		19
Efficiency ratio - GAAP			65.99			71.40			91.19			64.52			63.95		(541)		204
Efficiency ratio - Non-GAAP (1), (2)			63.44			66.93			60.13			60.92			60.90		(349)		254
PER SHARE DATA
Basic and diluted net income per common share		$	0.38		$	0.28		$	0.16		$	0.39		$	0.34		35.7	%	11.8	%
Dividends paid per common share			0.12			0.12			0.12			0.12			0.12		—		—
Book value per common share at period end			17.77			17.73			17.71			17.15			16.91		0.2		5.1
Tangible book value per common share at period end - Non-GAAP (1)			14.26			14.19			14.12			15.55			15.29		0.5		(6.7)
Market value at period end			18.50			20.48			20.85			17.73			16.75		(9.7)		10.4
Market range:
High			21.21			21.41			23.19			18.00			18.01		(0.9)		17.8
Low			17.91			19.34			17.50			16.35			16.10		(7.4)		11.2
AVERAGE BALANCE SHEET DATA
Loans		$	2,217,139		$	2,135,734		$	1,887,126		$	1,487,281		$	1,444,684		3.8	%	53.5	%
Investment securities			546,252			531,017			468,724			334,205			286,121		2.9		90.9
Earning assets			3,189,926			3,253,549			2,842,097			2,071,505			1,949,509		(2.0)		63.6
Assets			3,419,168			3,477,481			3,037,262			2,184,448			2,061,214		(1.7)		65.9
Deposits			2,993,098			3,044,213			2,547,151			1,943,225			1,822,148		(1.7)		64.3
Stockholders' equity			353,192			353,011			301,095			200,881			197,532		0.1		78.8
CREDIT QUALITY DATA
Net (recoveries) charge-offs		$	(573)		$	(166)		$	(142)		$	(147)		$	(125)		(245.2)	%	(358.4)	%
Nonaccrual loans		$	2,693		$	2,848		$	2,004		$	3,457		$	3,947		(5.4)		(31.8)
Loans 90 days past due and still accruing			1,130			459			508			748			752		146.2		50.3
Other real estate owned			197			561			532			203			203		(64.9)		(3.0)
Total nonperforming assets		$	4,020		$	3,868		$	3,044		$	4,408		$	4,902		3.9		(18.0)
Accruing troubled debt restructurings (TDRs)		$	4,894		$	5,004		$	5,667		$	5,750		$	6,338		(2.2)		(22.8)
Total nonperforming assets and accruing TDRs		$	8,914		$	8,872		$	8,711		$	10,158		$	11,240		0.5		(20.7)
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets			10.25	%		10.07	%		10.14	%		8.92	%		9.37	%	18	bp	88	bp
Period-end tangible equity to tangible assets - Non-GAAP (1)			8.39			8.22			8.25			8.15			8.55		17		(16)
Annualized net (recoveries) charge-offs to average loans			(0.10)			(0.03)			(0.03)			(0.04)			(0.03)		(7)		(7)
Allowance for credit losses as a percent of:
Period-end loans (3)			0.68			0.67			0.66			1.04			1.02		1		(34)
Period-end loans (4)			0.89			0.92			0.93			1.10			1.12		(3)		(23)
Nonaccrual loans			574.94			516.50			695.81			449.09			382.27		5,844		193
Nonperforming assets			385.15			380.30			458.08			352.20			307.79		485		77
Accruing TDRs			316.37			293.96			246.06			270.00			238.06		2,241		78
Nonperforming assets and accruing TDRs			173.69			165.80			160.07			152.84			134.23		789		39
As a percent of total loans:
Nonaccrual loans			0.12			0.13			0.09			0.23			0.27		(1)		(15)
Accruing TDRs			0.22			0.23			0.27			0.38			0.43		(1)		(21)
Nonaccrual loans and accruing TDRs			0.34			0.36			0.36			0.62			0.70		(2)		(36)
As a percent of total loans+other real estate owned:
Nonperforming assets			0.18			0.18			0.14			0.29			0.33		—		(15)
Nonperforming assets and accruing TDRs			0.39			0.41			0.41			0.68			0.76		(2)		(37)
As a percent of total assets:
Nonaccrual loans			0.08			0.08			0.06			0.15			0.19		—		(11)
Nonperforming assets			0.12			0.11			0.09			0.19			0.23		1		(11)
Accruing TDRs			0.14			0.14			0.16			0.25			0.30		—		(16)
Nonperforming assets and accruing TDRs			0.26			0.25			0.25			0.44			0.53		1		(27)
__________________________
(1)     See the reconciliation table that begins on page 15.
(2)     This ratio excludes merger related expenses (Non-GAAP).
(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)
																	Q2 2022		Q2 2022
																	compared to		compared to
		Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2022		Q2 2021
INTEREST INCOME
Interest and fees on loans		$	23,452		$	22,085		$	20,564		$	15,484		$	14,381		6.2	%	63.1	%
Interest on investment securities:
Taxable			2,392			1,985			1,663			1,318			1,095		20.5		118.4
Interest on deposits with other banks			826			254			169			97			55		225.2		1,401.8
Total interest income			26,670			24,324			22,396			16,899			15,531		9.6		71.7
INTEREST EXPENSE
Interest on deposits			1,511			1,358			1,272			949			1,056		11.3		43.1
Interest on short-term borrowings			—			2			3			2			2		(100.0)		(100.0)
Interest on long-term borrowings			541			534			482			359			370		1.3		46.2
Total interest expense			2,052			1,894			1,757			1,310			1,428		8.3		43.7
NET INTEREST INCOME			24,618			22,430			20,639			15,589			14,103		9.8		74.6
Provision for credit losses			200			600			(1,723)			290			650		(66.7)		(69.2)
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			24,418			21,830			22,362			15,299			13,453		11.9		81.5
NONINTEREST INCOME
Service charges on deposit accounts			1,438			1,359			1,234			805			683		5.8		110.5
Trust and investment fee income			447			514			522			477			475		(13.0)		(5.9)
Gains on sales and calls of investment securities			—			—			—			2			—		—		—
Interchange credits			1,253			1,038			1,043			1,016			1,036		20.7		20.9
Mortgage-banking revenue			1,096			1,867			948			—			—		(41.3)		—
Title Company revenue			426			323			247			—			—		31.9		—
Other noninterest income			1,173			945			1,135			609			709		24.1		65.4
Total noninterest income			5,833			6,046			5,129			2,909			2,903		(3.5)		100.9
NONINTEREST EXPENSE
Salaries and wages			8,898			9,562			7,727			5,091			4,262		(6.9)		108.8
Employee benefits			2,269			2,662			2,271			1,654			1,493		(14.8)		52.0
Occupancy expense			1,485			1,567			1,263			843			770		(5.2)		92.9
Furniture and equipment expense			411			429			385			449			412		(4.2)		(0.2)
Data processing			1,668			1,607			1,487			1,170			1,217		3.8		37.1
Directors' fees			210			190			170			147			154		10.5		36.4
Amortization of intangible assets			511			517			381			107			120		(1.2)		325.8
FDIC insurance premium expense			429			343			362			245			223		25.1		92.4
Other real estate owned expenses, net			57			(6)			(2)			4			1		1,050.0		5,600.0
Legal and professional fees			811			637			150			428			648		27.3		25.2
Merger related expenses			241			730			7,615			538			377		(67.0)		(36.1)
Other noninterest expenses			3,104			2,094			1,688			1,258			1,199		48.2		158.9
Total noninterest expense			20,094			20,332			23,497			11,934			10,876		(1.2)		84.8
Income before income taxes			10,157			7,544			3,994			6,274			5,480		34.6		85.3
Income tax expense			2,658			1,931			1,271			1,657			1,449		37.6		83.4
NET INCOME		$	7,499		$	5,613		$	2,723		$	4,617		$	4,031		33.6		86.0
Weighted average shares outstanding - basic			19,847			19,828			17,180			11,752			11,752		0.1		68.9
Weighted average shares outstanding - diluted			19,847			19,828			17,180			11,752			11,754		0.1		68.9
Basic and diluted net income per common share		$	0.38		$	0.28		$	0.16		$	0.39		$	0.34		35.7		11.8
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
																											Q2 2022		Q2 2022
																											compared to		compared to
		Q2 2022					Q1 2022					Q4 2021					Q3 2021					Q2 2021					Q1 2022		Q2 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)		$	2,217,139		4.25	%	$	2,135,734		4.20	%	$	1,887,126		4.33	%	$	1,487,281		4.14	%	$	1,444,684		4.00	%	3.8	%	53.5	%
Investment securities
Taxable			546,252		1.75			531,017		1.49			468,724		1.42			334,205		1.58			286,121		1.53		2.9		90.9
Interest-bearing deposits			426,535		0.78			586,798		0.18			486,247		0.14			250,019		0.15			218,704		0.10		(27.3)		95.0
Total earning assets			3,189,926		3.36	%		3,253,549		3.01	%		2,842,097		3.11	%		2,071,505		3.24	%		1,949,509		3.20	%	(2.0)		63.6
Cash and due from banks			26,162					(15,253)					22,625					19,453					16,908				(271.5)		54.7
Other assets			218,353					253,424					188,399					108,989					109,457				(13.8)		99.5
Allowance for credit losses			(15,273)					(14,239)					(15,859)					(15,499)					(14,660)				7.3		4.2
Total assets		$	3,419,168				$	3,477,481				$	3,037,262				$	2,184,448				$	2,061,214				(1.7)		65.9
Interest-bearing liabilities
Demand deposits		$	644,881		0.22	%	$	589,737		0.16	%	$	494,081		0.14	%	$	462,950		0.14	%	$	405,473		0.13	%	9.4		59.0
Money market and savings deposits			1,019,295		0.21			1,075,791		0.23			1,001,115		0.26			644,330		0.18			605,202		0.17		(5.3)		68.4
Certificates of deposit $100,000 or more			234,325		0.58			286,587		0.40			174,268		0.49			136,059		0.71			135,376		1.04		(18.2)		73.1
Other time deposits			221,714		0.54			175,683		0.57			173,975		0.50			142,777		0.68			143,821		0.90		26.2		54.2
Interest-bearing deposits			2,120,215		0.29			2,127,798		0.26			1,843,439		0.27			1,386,116		0.27			1,289,872		0.33		(0.4)		64.4
Securities sold under retail repurchase agreements
and federal funds purchased			—		—			2,770		0.29			3,972		0.30			2,718		0.29			3,123		0.26		(100.0)		(100.0)
Advances from FHLB - long-term			10,075		0.60			10,116		0.57			6,630		2.21			—		—			—		—		(0.4)		100.0
Subordinated debt			42,876		4.93			42,804		4.93			36,589		5.12			24,504		5.81			24,474		6.06		0.2		75.2
Total interest-bearing liabilities			2,173,166		0.38	%		2,183,488		0.35	%		1,890,630		0.37	%		1,413,338		0.37	%		1,317,469		0.43	%	(0.5)		65.0
Noninterest-bearing deposits			872,883					916,415					703,712					557,109					532,276				(4.8)		64.0
Accrued expenses and other liabilities			19,927					24,567					141,825					13,120					13,937				(18.9)		43.0
Stockholders' equity			353,192					353,011					301,095					200,881					197,532				0.1		78.8
Total liabilities and stockholders' equity		$	3,419,168				$	3,477,481				$	3,037,262				$	2,184,448				$	2,061,214				(1.7)		65.9
Net interest spread					2.98	%				2.66	%				2.74	%				2.87	%				2.77	%
Net interest margin					3.10	%				2.78	%				2.87	%				2.99	%				2.91	%
_______________
(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
		Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021			6/30/2022			6/30/2021
The following reconciles return on average equity and return on average tangible equity (Note 1):
Net Income		$	7,499		$	5,613		$	2,723		$	4,617		$	4,031		$	13,112		$	8,028
Net Income - annualized (A)		$	30,078		$	22,764		$	10,803		$	18,317		$	16,168		$	26,441		$	16,144
Net income, excluding net amortization of intangible assets
and merger related expenses		$	8,054		$	6,541		$	8,176		$	5,098		$	4,402		$	14,593		$	8,493
Net income, excluding net amortization of intangible assets and merger related expenses - annualized (B)		$	32,305		$	26,527		$	32,437		$	20,226		$	17,656		$	29,428		$	17,079
Return on average assets excluding net amortization of intangible assets and merger related expenses - Non-GAAP			0.94	%		0.76	%		1.07	%		0.94	%		0.86	%		0.85	%		0.84	%
Average stockholders' equity (C)		$	353,192		$	353,011		$	301,095		$	200,881		$	197,532		$	353,102		$	196,666
Less:  Average goodwill and other intangible assets			(70,057)			(70,711)			(52,692)			(18,942)			(19,053)			(70,382)			(19,115)
Average tangible equity (D)		$	283,135		$	282,300		$	248,403		$	181,939		$	178,479		$	282,720		$	177,551
Return on average equity (GAAP)  (A)/(C)			8.52	%		6.45	%		3.59	%		9.12	%		8.19	%		7.49	%		8.21	%
Return on average tangible equity (Non-GAAP)  (B)/(D)			11.41	%		9.40	%		13.06	%		11.12	%		9.89	%		10.41	%		9.62	%
The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio (Note 2):
Noninterest expense (E)		$	20,094		$	20,332		$	23,497		$	11,934		$	10,876		$	40,426		$	21,375
Less:  Amortization of intangible assets			(511)			(517)			(381)			(107)			(120)			(1,028)			(246)
Merger Expenses			(241)			(730)			(7,615)			(538)			(377)			(971)			(377)
Adjusted noninterest expense (F)		$	19,342		$	19,085		$	15,501		$	11,289		$	10,379		$	38,427		$	20,752
Net interest income (G)			24,618			22,430			20,639			15,589			14,103			47,048			27,902
Add:  Taxable-equivalent adjustment			38			39			13			34			38			77			74
Taxable-equivalent net interest income (H)		$	24,656		$	22,469		$	20,652		$	15,623		$	14,141		$	47,125		$	27,976
Noninterest income (I)		$	5,833		$	6,046		$	5,129		$	2,909		$	2,903		$	11,879			5,460
Less:  Investment securities (gains)			—			—			—			(2)			—			—			—
Adjusted noninterest income (J)		$	5,833		$	6,046		$	5,129		$	2,907		$	2,903		$	11,879		$	5,460
Efficiency ratio (GAAP)  (E)/(G)+(I)			65.99	%		71.40	%		91.19	%		64.52	%		63.95	%		68.60	%		64.07	%
Efficiency ratio (Non-GAAP)  (F)/(H)+(J)			63.44	%		66.93	%		60.13	%		60.92	%		60.90	%		65.13	%		62.06	%
The following reconciles book value per common share and tangible book value per common share (Note 1):
Stockholders' equity (L)		$	352,777		$	351,864		$	350,693		$	201,607		$	198,682
Less:  Goodwill and other intangible assets			(69,787)			(70,299)			(70,956)			(18,883)			(18,991)
Tangible equity (M)		$	282,990		$	281,565		$	279,737		$	182,724		$	179,691
Shares outstanding (N)			19,850			19,843			19,808			11,752			11,752
Book value per common share (GAAP)  (L)/(N)		$	17.77		$	17.73		$	17.71		$	17.15		$	16.91
Tangible book value per common share (Non-GAAP) (M)/(N)		$	14.26		$	14.19		$	14.12		$	15.55		$	15.29
The following reconciles equity to assets and tangible equity to tangible assets (Note 1):
Stockholders' equity (O)		$	352,777		$	351,864		$	350,693		$	201,607		$	198,682
Less:  Goodwill and other intangible assets			(69,787)			(70,299)			(70,956)			(18,883)			(18,991)
Tangible equity (P)		$	282,990		$	281,565		$	279,737		$	182,724		$	179,691
Assets (Q)		$	3,442,550		$	3,494,497		$	3,460,136		$	2,260,774		$	2,120,260
Less:  Goodwill and other intangible assets			(69,787)			(70,299)			(70,956)			(18,883)			(18,991)
Tangible assets (R)		$	3,372,763		$	3,424,198		$	3,389,180		$	2,241,891		$	2,101,269
Period-end equity/assets (GAAP)  (O)/(Q)			10.25	%		10.07	%		10.14	%		8.92	%		9.37	%
Period-end tangible equity/tangible assets (Non-GAAP)  (P)/(R)			8.39	%		8.22	%		8.25	%		8.15	%		8.55	%
________________________
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' Q2 2022 earnings results?

Shore Bancshares reported net income of $7.499 million or $0.38 per diluted share for Q2 2022.

How did net interest income perform in Q2 2022 for SHBI?

Net interest income for Q2 2022 was $24.6 million, an increase from $22.4 million in Q1 2022.

What is the outlook for Shore Bancshares after the Q2 report?

The outlook remains positive with strong loan demand and enhanced returns for shareholders.

How much did total assets change for Shore Bancshares by June 30, 2022?

Total assets decreased by $17.6 million to $3.443 billion compared to the end of 2021.