Press release
April 23, 2026
Shore Bancshares, Inc. Reports 2026 First Quarter Results
Shore Bancshares Inc (SHBI)
Shore Bancshares, Inc. Reports 2026 First Quarter Results
, /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ – SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United Bank, N.A. (the "Bank"), reported record net income for the first quarter of 2026 of $17.1 million, or $0.51 per diluted common share, compared to net income of $15.9 million, or $0.48 per diluted common share, for the fourth quarter of 2025, and net income of $13.8 million, or $0.41 per diluted common share, for the first quarter of 2025.
First Quarter 2026 Highlights
Net Income – Net income for the first quarter of 2026 increased $1.2 million to a record $17.1 million from $15.9 million in the fourth quarter of 2025. Net income increased primarily due to an increase in net interest income of $2.4 million and a decrease in the provision for credit losses of $2.7 million, partially offset by lower noninterest income of $1.7 million and an increase in noninterest expense of $1.6 million. The lower noninterest income was due to a one-time receipt of insurance proceeds in the fourth quarter of 2025.Return on Average Assets ("ROAA") – The Company reported ROAA of 1.12% for the first quarter of 2026, compared to 1.02% for the fourth quarter of 2025 and 0.91% for the first quarter of 2025. Adjusted ROAA – non-U.S. generally accepted accounting principles ("GAAP")(1) was 1.22% for the first quarter of 2026, compared to 1.11% for the fourth quarter of 2025 and 1.02% for the first quarter of 2025.Net Interest Margin ("NIM") – Net interest income for the first quarter of 2026 increased $2.4 million to $52.6 million compared to the fourth quarter of 2025. NIM increased 21 basis points ("bps") to 3.64% during the first quarter of 2026 compared to the fourth quarter of 2025. NIM excluding accretion(1) increased for the comparable periods from 3.24% to 3.35%. Excluding accretion interest, loan yields decreased 1 bp and funding costs decreased 13 bps for the comparable periods. Net interest income increased due to accelerated accretion due to loan payoffs coupled with a lower cost of deposits and lower long-term borrowing expenses. These favorable changes were partially offset by lower yields on interest-bearing deposits with other institutions.Book Value per Share – Book value per share increased to $18.02 at March 31, 2026 from $17.65 at December 31, 2025 and $16.55 at March 31, 2025.Asset Quality – Nonperforming assets were 1.10% of total assets at March 31, 2026, an increase from 0.69% at December 31, 2025 and 0.31% at March 31, 2025. Classified assets were 1.38% of total assets at March 31, 2026, an increase when compared to 0.96% at December 31, 2025 and 0.36% at March 31, 2025. The allowance for credit losses ("ACL") was $58.5 million at March 31, 2026, compared to $58.8 million at December 31, 2025 and $58.0 million at March 31, 2025. The ACL as a percentage of loans increased to 1.21% at March 31, 2026 compared to 1.20% at December 31, 2025 and remained flat compared to March 31, 2025. Operating Leverage – The efficiency ratio for the first quarter of 2026 was 61.97%, compared to 60.06% in the fourth quarter of 2025 and 63.64% for the first quarter of 2025. The adjusted efficiency ratio – non-GAAP(1), which excludes amortization of intangibles, was 58.57% for the first quarter of 2026, compared to 56.59% for the fourth quarter of 2025 and 59.25% for the first quarter of 2025. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time.
"Shore Bancshares delivered another strong quarter to begin 2026, with higher net income, expanding net interest margin and continued growth in book value per share," stated James ("Jimmy") M. Burke, President and Chief Executive Officer of Shore Bancshares. "Lower funding costs, accelerated loan repricing and disciplined balance sheet management drove record net interest income and record profitability during the quarter. We also continued to make progress improving our core operating performance while maintaining prudent expense control.
"Although nonperforming and classified assets increased during the quarter, overall asset quality remains sound and is supported by strong collateral values, conservative underwriting and solid reserve levels. We remain focused on managing risk, strengthening operating leverage and building long-term value for our shareholders as we move through 2026."
Balance Sheet Review
Total assets were $6.21 billion at March 31, 2026, a decrease of $52.8 million, or 0.8%, when compared to $6.26 billion at December 31, 2025. The decrease was primarily due to a decrease in our loan portfolio of $52.3 million and a decrease in cash and cash equivalents of $14.7 million, which were partially offset by an increase in our investment securities portfolio of $22.5 million. The decrease in cash and cash equivalents was primarily driven by seasonal run-off of the municipal deposits. Total assets increased $29.5 million, or 0.5%, from $6.18 billion when compared to March 31, 2025.
Non-owner occupied commercial real estate ("CRE") loans were $2.14 billion and $2.15 billion, and as a percentage of the Bank's Tier 1 Capital + ACL were 333% and 343% at March 31, 2026 and December 31, 2025, respectively.
CRE loans (excluding land and construction) were $2.60 billion at March 31, 2026 compared to $2.64 billion at December 31, 2025. The office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $480.9 million, or 9.9% of total loans at March 31, 2026. The following table provides the stratification of the classes of CRE loans (excluding land and construction) at March 31, 2026.
March 31, 2026
Owner Occupied
Non-Owner Occupied
($ in thousands)
Average LTV(1)
Average
Loan Size
Loan
Balance(2)
Average LTV(1)
Average
Loan Size
Loan
Balance(2)
Office, medical
45.25 %
$ 597
$ 28,074
47.74 %
$ 1,746
$ 85,570
Office, govt. or govt. contractor
49.80
875
6,999
53.80
3,057
62,308
Office, other
46.58
467
84,074
48.66
1,328
213,825
Office, total
46.43
507
119,147
48.91
1,574
361,703
Retail
49.55
610
65,223
48.07
2,554
482,785
Multifamily (5+ units)
—
—
—
54.46
2,353
261,226
Hotel/motel
—
—
—
44.46
4,056
190,614
Industrial/warehouse
45.74
654
92,883
46.49
1,412
184,927
Commercial-improved
41.57
1,182
217,492
50.02
1,291
160,134
Marine/boat slips
32.52
804
17,696
36.45
1,472
7,359
Restaurant
47.86
976
54,657
48.40
1,008
41,310
Church
33.03
861
56,797
13.18
2,354
2,354
Land/lot loans
44.54
551
1,103
—
—
—
Other
40.21
1,440
119,558
32.94
543
162,847
Total CRE loans, gross
43.14
830
$ 744,556
44.39
1,584
$ 1,855,259
(1)
Loan-to-value ("LTV") is determined based on latest available appraisal against current bank owned principal. Loans without an updated appraisal utilized the original transaction value.
(2)
Loan balance includes deferred fees and costs.
The office CRE loan portfolio included loans to medical tenants of $113.6 million, or 23.6% of the total office CRE loan portfolio, at March 31, 2026. The office CRE loan portfolio also included loans to government or government contractor tenants of $69.3 million, or 14.4% of the total office CRE loan portfolio for the same period. At March 31, 2026, the average loan debt service coverage ratio on the office CRE loan portfolio was 1.7x and the average LTV was 47.66%.
The 467 loans in the office CRE portfolio at March 31, 2026 had an average loan size of $1.0 million and a median loan size of $378 thousand. LTV estimates for the office CRE portfolio at March 31, 2026 are summarized below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination.
LTV Range ($ in thousands)
Loan Count
Loan Balance
% of Office CRE
Less than or equal to 50%
234
$ 167,305
34.8 %
Greater than 50% and less than or equal to 60%
75
122,649
25.5
Greater than 60% and less than or equal to 70%
92
142,127
29.6
Greater than 70% and less than or equal to 80%
52
37,694
7.8
Greater than 80%
14
11,075
2.3
Total
467
$ 480,850
100.0 %
There were 17 office CRE loans with balances greater than $5.0 million, totaling $164.8 million at March 31, 2026 and totaling $166.1 million at December 31, 2025. The decrease in this portfolio segment was the result of normal amortization. 81.1% of the office CRE loan balance was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.5% was secured by properties with five stories or less. $28.7 million of these loan balances were classified as special mention or substandard at March 31, 2026. There were no charge-offs within the office CRE portfolio during the three months ended March 31, 2026.
Nonperforming assets were $68.4 million and $43.2 million, or 1.10% and 0.69% of total assets, as of March 31, 2026 and December 31, 2025, respectively. Nonperforming assets primarily consist of two large relationships with an aggregate loan balance of $45.6 million. These nonperforming loans primarily consists of multifamily and office commercial real estate based in North Carolina and Virginia. As of March 31, 2026, these loans are well-secured by collateral and required minimal individual reserves. When comparing March 31, 2026 to March 31, 2025, nonperforming assets increased $49.5 million, primarily due to an increase in nonaccrual loans of $49.6 million and an increase in repossessed marine and auto loans of $806 thousand, partially offset by a decrease in loans 90 days past due and accruing of $894 thousand. Substandard loans, which include nonaccrual loans and accruing loans 90 days or more past due were $82.3 million at March 31, 2026 compared to $57.4 million at December 31, 2025 and $19.4 million at March 31, 2025.
Special mention loans increased to $97.8 million at March 31, 2026 compared to $73.4 million at December 31, 2025 and $33.5 million at March 31, 2025. As of March 31, 2026, there were six special mention loans with individual balances greater than $5.0 million, totaling $79.1 million. These loans consist primarily of multifamily commercial real estate and other commercial real estate exposures that are well-collateralized, and the Company continues to closely monitor their cash flows. Management does not currently expect material losses on these credits and is actively engaged in credit oversight and timely execution of workout strategies.
Total deposits decreased $72.2 million from December 31, 2025 to $5.46 billion at March 31, 2026 and increased $1.3 million when compared to March 31, 2025. The year-to-date decrease in total deposits was primarily due to a decrease in interest-bearing deposits of $39.7 million, a decrease in noninterest-bearing deposits of $20.5 million and a decrease in money market and savings accounts of $19.3 million. These decreases were partially offset by an increase in time deposits of $7.3 million. Core deposits, which exclude municipal deposits, increased by $25.3 million, or 0.6%, during the same period.
Total funding, which includes customer deposits, Federal Home Loan Bank ("FHLB") advances and brokered deposits, was $5.46 billion at March 31, 2026, compared to $5.53 billion at December 31, 2025. The Company had no FHLB advances at March 31, 2026 and December 31, 2025. Brokered deposits were $11.0 million and $10.9 million at March 31, 2026 and December 31, 2025, respectively. Total reciprocal deposits were $1.42 billion and $1.52 billion at March 31, 2026 and December 31, 2025, respectively.
Uninsured deposits were $933.0 million, or 17.1% of total deposits, at March 31, 2026. Uninsured deposits, excluding deposits secured with pledged collateral, were $786.0 million, or 14.4% of total deposits, at March 31, 2026. At March 31, 2026, the available liquidity was $1.82 billion, including $340.8 million in cash and cash equivalents, $328.0 million in unpledged securities, $777.6 million in secured borrowing capacity at the FHLB and $376.3 million in unsecured lines of credit with other correspondent banks.
Total stockholders' equity increased $12.8 million, or 2.2%, when compared to December 31, 2025, primarily due to current year earnings, partially offset by cash dividends paid and an increase in accumulated other comprehensive losses. As of March 31, 2026 and 2025, the ratio of total equity to total assets was 9.71% and 8.94%, respectively. As of March 31, 2026, the ratio of total tangible equity to total tangible assets(2) was 8.37%, compared to 8.06% and 7.46% as of December 31, 2025 and March 31, 2025, respectively. The Company's Tier 1 and Total Risk-Based Capital Ratios at March 31, 2026 were 11.60% and 14.08%, respectively.
Review of Quarterly Financial Results
Net interest income was $52.6 million for the first quarter of 2026, compared to $50.2 million for the fourth quarter of 2025 and $45.9 million for the first quarter of 2025. The increase in net interest income when compared to the fourth quarter of 2025 was primarily due to a decrease in interest expense on deposits of $3.0 million, a decrease in interest expense on long-term borrowings of $608 thousand and a decrease of $246 thousand in interest expense on short-term borrowings. The decrease in interest expense on long-term borrowings is due to a new debt issuance of $60 million during the fourth quarter 2025, which replaced $45 million of subordinated debt that was redeemed at the end of the fourth quarter 2025. These favorable changes were partially offset by a decrease in interest income on loans of $1.3 million and a decrease in interest income on deposits at other banks of $352 thousand. The increase in net interest income was $6.7 million when compared to the first quarter of 2025, and was primarily due to a decrease in interest expense on deposits of $3.8 million, an increase in interest and fees on loans of $3.3 million and a decrease in interest expense on short-term borrowings of $598 thousand. These favorable changes were partially offset by a decrease in interest on deposits with other banks of $951 thousand and an increase in interest expense on long-term borrowings of $207 thousand. The decrease in interest expense on deposits is reflective of the rate reductions during 2025.
The Company's NIM increased to 3.64% for the first quarter of 2026 from 3.43% for the fourth quarter of 2025, primarily due to lower interest expense on deposits. NIM excluding accretion increased for the comparable periods from 3.24% to 3.35%. Excluding accretion interest income, loan yields decreased 1 bp and funding costs decreased 13 bps for the comparable periods. Interest expense for the first quarter of 2026 decreased $3.9 million compared to the fourth quarter of 2025, primarily due to lower rates during the quarter and the absence of the write-offs of merger-related interest rate marks on certain deposit products in the fourth quarter of 2025. The Company's NIM increased to 3.64% for the first quarter of 2026 from 3.21% for the first quarter of 2025. The Company's average interest-earning asset yield increased to 5.44% for the first quarter of 2026 from 5.32% for the first quarter of 2025, while the average cost of funds decreased 30 bps to 1.90% from 2.20% for the same periods.
The provision for credit losses was $85 thousand for the three months ended March 31, 2026. The comparable amounts were $2.8 million for the three months ended December 31, 2025 and $1.0 million for the three months ended March 31, 2025. The decrease in the provision for credit losses for the first quarter of 2026 compared to the fourth quarter of 2025 was due to lower reserves resulting from lower loan balances and recoveries of certain charged-off loans, partially offset by the absence by the large charge-off driven by a commercial real estate loan in the fourth quarter of 2025. Coverage ratios increased to 1.21% at March 31, 2026 from 1.20% at December 31, 2025, and remained flat compared to March 31, 2025. Net charge-offs decreased to $847 thousand for the first quarter of 2026 compared to $3.6 million for the fourth quarter of 2025 and $554 thousand for the first quarter of 2025. The decrease was driven by the absence of the large commercial real estate write-down in the fourth quarter of 2025 and recoveries of previous write-downs of $409 thousand during the quarter.
Total noninterest income for the first quarter of 2026 was $7.2 million, a decrease of $1.7 million from $8.9 million for the fourth quarter of 2025, and an increase of $110 thousand from $7.1 million for the first quarter of 2025. When comparing the first quarter of 2026 to the fourth quarter of 2025, the decrease in noninterest income was primarily due to the absence of a one-time receipt of insurance proceeds in the fourth quarter of 2025.
Total noninterest expense of $37.1 million for the first quarter of 2026 increased $1.6 million compared to $35.5 million for the fourth quarter of 2025, and increased $3.3 million compared to $33.7 million for the first quarter of 2025. The increase from the fourth quarter of 2025 was primarily due to salaries and employee benefit expenses increasing $1.1 million and professional service fees increasing $368 thousand. The increase in salaries and employee benefits are primarily related to higher health care costs and one-time employee incentive related expense. The increase from the first quarter of 2025 was primarily due to an increase in salaries and employee benefits expense of $3.2 million and an increase in software and data processing costs of $449 thousand, partially offset by a decrease in amortization of other intangible assets of $298 thousand.
The efficiency ratio for the first quarter of 2026 when compared to the fourth quarter of 2025 and the first quarter of 2025 was 61.97%, 60.06% and 63.64%, respectively. Adjusted efficiency ratios – non-GAAP(1) for the same periods were 58.57%, 56.59% and 59.25%, respectively.
(1) See the Reconciliation of GAAP and Non-GAAP Measures tables.
Shore Bancshares Information
Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the parent company of Shore United Bank, N.A. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank, N.A. Additional information is available at www.shorebancshares.com.
Forward-Looking Statements
This news release contains statements relating to future events or our future results that are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We also may make forward-looking statements in other documents filed with or furnished to the Securities and Exchange Commission, and our senior management may make forward-looking statements orally to investors, analysts, representatives of the media, and others. Forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "intend," "potential," "target," "plan," "goal," or words of similar meaning, or future or conditional verbs such as "could," "would," or "may." Forward-looking statements include statements of our goals, intentions, or expectations; statements regarding our business plans, prospects, growth, or operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.
Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. We caution that the forward-looking statements are based largely on our expectations and information available at the time the statements are made and are subject to known and unknown risks and uncertainties that are subject to change based on factors, which in many instances are beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. You should bear this in mind when reading this news release and not place undue reliance on these forward-looking statements.
The factors that could cause actual results to differ materially from those expressed in such forward-looking statements include, but are not limited to, the risks identified in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission and the following: local, regional and global business, economic and political conditions and geopolitical events; changes in laws, rules and regulatory requirements, including capital and liquidity requirements; changes in consumer and business confidence, investor sentiment, and consumer spending and savings behavior; changes in the level of inflation; changes in monetary and fiscal policies; changes in trade policies, including the imposition of tariffs and retaliatory responses; changes in the demand for loans, deposits, and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; changes in FDIC assessments; changes in the interest rate environment; changes in income tax laws and regulations; our ability to manage effectively our capital and liquidity; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; changes in credit ratings assigned to us; competitive pressures among financial services companies; technology changes instituted by us, our counterparties, or competitors; the ability to attract, develop, and retain qualified employees; change in federal government enforcement of federal laws affecting the cannabis industry; our ability to maintain the security of our financial, accounting, technology, data processing and other operational systems and facilities; our ability to effectively defend ourselves against cyber-attacks and other attempts by unauthorized parties to access our information or information of our customers or to disrupt our systems; our ability to withstand disruptions that may be caused by any failure of our operational systems or those of third parties; our ability to control expenses; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; and the impact of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond our control.
Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
Shore Bancshares, Inc.
Financial Highlights By Quarter (Unaudited)
Q1 2026 vs.
Q1 2026 vs.
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2025
Q1 2025
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income
$ 52,644
$ 50,294
$ 48,501
$ 47,244
$ 45,979
4.7 %
14.5 %
Less: Taxable-equivalent adjustment
89
92
83
81
81
(3.3)
9.9
Net interest income
52,555
50,202
48,418
47,163
45,898
4.7
14.5
Provision for credit losses
85
2,827
2,992
1,528
1,028
(97.0)
(91.7)
Noninterest income
7,244
8,906
7,938
9,406
7,134
(18.7)
1.5
Noninterest expense
37,056
35,499
34,379
34,410
33,747
4.4
9.8
Income before income taxes
22,658
20,782
18,985
20,631
18,257
9.0
24.1
Income tax expense
5,570
4,895
4,637
5,124
4,493
13.8
24.0
NET INCOME
$ 17,088
$ 15,887
$ 14,348
$ 15,507
$ 13,764
7.6
24.1
Adjusted net income – non-GAAP(1)
$ 18,581
$ 17,416
$ 15,889
$ 17,215
$ 15,481
6.7 %
20.0 %
Pre-tax pre-provision net income – non-GAAP(1)
22,743
23,609
21,977
22,159
19,285
(3.7)
17.9
Return on average assets – GAAP
1.12 %
1.02 %
0.95 %
1.03 %
0.91 %
10 bp
21 bp
Adjusted return on average assets – non-GAAP
1.22
1.11
1.05
1.15
1.02
11
20
Return on average common equity – GAAP
11.55
10.79
9.96
11.13
10.20
76
135
Return on average tangible common equity – non-GAAP(1)
14.83
14.10
13.27
14.99
14.05
73
78
Net interest spread
2.80
2.48
2.45
2.37
2.27
32
53
Net interest margin
3.64
3.43
3.41
3.34
3.21
21
43
Efficiency ratio – GAAP
61.97
60.06
61.00
60.83
63.64
191
(167)
Adjusted efficiency ratio – non-GAAP(1)
58.57
56.59
57.30
56.73
59.25
198
(68)
Noninterest income to average assets
0.48
0.57
0.52
0.63
0.47
(9)
1
Noninterest expense to average assets
2.43
2.27
2.27
2.29
2.23
16
20
Net operating expense to average assets – GAAP
1.96
1.70
1.74
1.67
1.76
26
20
Net operating expense to average assets – non-GAAP(1)
1.83
1.57
1.61
1.51
1.61
26
22
PER SHARE DATA
Basic net income per common share
$ 0.51
$ 0.48
$ 0.43
$ 0.46
$ 0.41
6.3 %
24.4 %
Diluted net income per common share
0.51
0.48
0.43
0.46
0.41
6.3
24.4
Dividends paid per common share
0.12
0.12
0.12
0.12
0.12
—
—
Book value per common share at period end
18.02
17.65
17.27
16.94
16.55
2.1
8.9
Tangible book value per common share at period end – non-GAAP(1)
15.30
14.87
14.43
14.03
13.58
2.9
12.7
Common share market value at period end
18.68
17.68
16.41
15.72
13.54
5.7
38.0
Common share intraday price:
High
$ 20.68
$ 19.22
$ 17.67
$ 15.88
$ 17.24
7.6 %
20.0 %
Low
17.98
14.93
14.96
11.47
13.15
20.4
36.7
(1)
See the Reconciliation of GAAP and Non-GAAP Measures tables.
Shore Bancshares, Inc.
Financial Highlights By Quarter (Unaudited) – Continued
Q1 2026 vs.
Q1 2026 vs.
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2025
Q1 2025
AVERAGE BALANCE SHEET DATA
Loans
$ 4,887,488
$ 4,909,619
$ 4,884,003
$ 4,833,558
$ 4,784,991
(0.5) %
2.1 %
Investment securities
666,376
653,639
664,535
683,680
664,655
1.9
0.3
Earning assets
5,823,244
5,843,816
5,658,981
5,660,409
5,768,080
(0.4)
1.0
Assets
6,174,655
6,206,753
6,020,574
6,021,385
6,129,241
(0.5)
0.7
Deposits
5,438,914
5,452,082
5,280,252
5,297,567
5,417,514
(0.2)
0.4
FHLB advances
—
20,108
52,391
50,000
50,000
(100.0)
(100.0)
Subordinated debt & TRUPS
89,024
104,752
74,363
74,102
73,840
(15.0)
20.6
Stockholders' equity
600,212
584,209
571,247
558,952
547,443
2.7
9.6
CREDIT QUALITY DATA
Net charge-offs
$ 847
$ 3,619
$ 1,825
$ 649
$ 554
(76.6) %
52.9 %
Nonaccrual loans
$ 64,958
$ 39,960
$ 24,378
$ 16,782
$ 15,402
62.6 %
321.8 %
Loans 90 days past due and still accruing
—
255
153
215
894
(100.0)
(100.0)
Other real estate owned and repossessed property
3,414
2,992
3,552
2,636
2,608
14.1
30.9
Total nonperforming assets
$ 68,372
$ 43,207
$ 28,083
$ 19,633
$ 18,904
58.2
261.7
Shore Bancshares, Inc.
Financial Highlights By Quarter (Unaudited) – Continued
Q1 2026 vs.
Q1 2026 vs.
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2025
Q1 2025
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets – GAAP
9.71 %
9.42 %
9.19 %
9.36 %
8.94 %
29 bp
77 bp
Period-end tangible equity to tangible assets – non-GAAP(1)
8.37
8.06
7.80
7.88
7.46
31
91
Annualized net charge-offs to average loans
0.07 %
0.29 %
0.15 %
0.05 %
0.05 %
(22) bp
2 bp
Allowance for credit losses as a percent of:
Period-end loans
1.21 %
1.20 %
1.22 %
1.21 %
1.21 %
1 bp
— bp
Period-end nonaccrual loans
90.03
147.24
244.29
348.49
376.85
(5,721)
(28,682)
Period-end nonperforming assets
85.53
136.17
212.06
297.88
307.04
(5,064)
(22,151)
As a percent of total loans at period-end:
Nonaccrual loans
1.34 %
0.82 %
0.50 %
0.35 %
0.32 %
52 bp
102 bp
As a percent of total loans, other real estate owned and repossessed property at period-end:
Nonperforming assets
1.41 %
0.88 %
0.57 %
0.41 %
0.40 %
53 bp
101 bp
As a percent of total assets at period-end:
Nonaccrual loans
1.05 %
0.64 %
0.39 %
0.28 %
0.25 %
41 bp
80 bp
Nonperforming assets
1.10
0.69
0.45
0.33
0.31
41
79
(1)
See the Reconciliation of GAAP and Non-GAAP Measures tables.
Shore Bancshares, Inc.
Financial Highlights By Quarter (Unaudited) – Continued
Q1 2026 vs.
Q1 2026 vs.
($ in thousands)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2025
Q1 2025
Company Amounts
Common Equity Tier 1 Capital
$ 525,849
$ 510,729
$ 496,709
$ 483,947
$ 470,223
2.96 %
11.83 %
Tier 1 Capital
556,096
540,897
526,794
513,952
500,149
2.81
11.19
Total Capital
674,811
660,451
627,055
618,793
603,928
2.17
11.74
Risk-Weighted Assets
4,794,374
4,852,573
4,867,237
4,890,679
4,823,833
(1.20)
(0.61)
Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets ("RWA")
10.97 %
10.52 %
10.21 %
9.90 %
9.75 %
45 bp
122 bp
Tier 1 Capital to RWA
11.60
11.15
10.82
10.51
10.37
45
123
Total Capital to RWA
14.08
13.61
12.88
12.65
12.52
47
156
Tier 1 Capital to AA (Leverage)(2)
9.12
8.82
8.86
8.65
8.27
30
85
Bank Amounts
Common Equity Tier 1 Capital
$ 583,733
$ 569,183
$ 559,212
$ 546,630
$ 534,824
2.56 %
9.14 %
Tier 1 Capital
583,733
569,183
559,212
546,630
534,824
2.56
9.14
Total Capital
643,627
629,746
620,034
607,235
594,550
2.20
8.25
Risk-Weighted Assets
4,791,223
4,844,639
4,864,871
4,888,558
4,821,975
(1.10)
(0.64)
Bank Ratios
Common Equity Tier 1 Capital to RWA
12.18 %
11.75 %
11.49 %
11.18 %
11.09 %
43 bp
109 bp
Tier 1 Capital to RWA
12.18
11.75
11.49
11.18
11.09
43
109
Total Capital to RWA
13.43
13.00
12.75
12.42
12.33
43
110
Tier 1 Capital to AA (Leverage)(2)
9.58
9.30
9.41
9.20
8.84
28
74
Shore Bancshares, Inc.
Consolidated Balance Sheets
March 31, 2026
March 31, 2026
compared to
compared to
($ in thousands, except per share data)
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2025
March 31, 2025
(unaudited)
(unaudited)
(unaudited)
(unaudited)
ASSETS
Cash and due from banks
$ 44,054
$ 50,164
$ 62,289
$ 54,512
$ 46,886
(12.2) %
(6.0) %
Interest-bearing deposits with other banks
296,768
305,402
354,224
130,472
342,120
(2.8)
(13.3)
Cash and cash equivalents
340,822
355,566
416,513
184,984
389,006
(4.1)
(12.4)
Investment securities:
Available for sale, at fair value
264,026
220,358
181,720
187,679
179,148
19.8
47.4
Held to maturity, net of allowance for credit losses
393,615
414,827
433,440
459,246
469,572
(5.1)
(16.2)
Equity securities, at fair value
6,195
6,186
6,113
6,010
5,945
0.1
4.2
Restricted securities, at cost
18,003
17,989
20,364
20,412
20,411
0.1
(11.8)
Loans held for sale, at fair value
24,034
32,540
21,500
34,319
15,717
(26.1)
52.9
Loans held for investment
4,848,030
4,900,302
4,882,969
4,827,628
4,777,489
(1.1)
1.5
Less: allowance for credit losses
(58,481)
(58,836)
(59,554)
(58,483)
(58,042)
(0.6)
0.8
Loans, net
4,789,549
4,841,466
4,823,415
4,769,145
4,719,447
(1.1)
1.5
Premises and equipment, net
80,137
80,168
80,812
81,426
81,692
—
(1.9)
Goodwill
63,266
63,266
63,266
63,266
63,266
—
—
Other intangible assets, net
27,742
29,722
31,722
33,761
36,033
(6.7)
(23.0)
Right-of-use assets
10,102
10,523
10,896
11,052
11,709
(4.0)
(13.7)
Cash surrender value on life insurance
106,684
105,839
105,055
105,860
105,040
0.8
1.6
Accrued interest receivable
20,676
18,551
20,408
19,821
20,555
11.5
0.6
Deferred income taxes
29,752
29,825
30,328
30,972
31,428
(0.2)
(5.3)
Other assets
31,460
31,992
32,927
29,921
27,594
(1.7)
14.0
TOTAL ASSETS
$ 6,206,063
$ 6,258,818
$ 6,278,479
$ 6,037,874
$ 6,176,563
(0.8)
0.5
Shore Bancshares, Inc.
Consolidated Balance Sheets – Continued
March 31, 2026
March 31, 2026
compared to
compared to
($ in thousands, except per share data)
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2025
March 31, 2025
(unaudited)
(unaudited)
(unaudited)
(unaudited)
LIABILITIES
Deposits:
Noninterest-bearing
$ 1,567,425
$ 1,587,953
$ 1,594,212
$ 1,575,120
$ 1,565,017
(1.3) %
0.2 %
Interest-bearing checking
812,847
852,585
851,963
763,309
852,480
(4.7)
(4.6)
Money market and savings
1,795,619
1,814,928
1,790,001
1,691,438
1,800,529
(1.1)
(0.3)
Time deposits
1,274,766
1,267,487
1,281,132
1,273,285
1,242,319
0.6
2.6
Brokered deposits
10,963
10,911
10,857
10,806
—
0.5
—
Total deposits
5,461,620
5,533,864
5,528,165
5,313,958
5,460,345
(1.3)
—
FHLB advances
—
—
50,000
50,000
50,000
—
(100.0)
Guaranteed preferred beneficial interest in junior
subordinated debentures ("TRUPS"), net
30,247
30,168
30,085
30,005
29,926
0.3
1.1
Subordinated debt, net
58,782
58,893
44,409
44,236
44,053
(0.2)
33.4
Total borrowings
89,029
89,061
124,494
124,241
123,979
—
(28.2)
Lease liabilities
10,608
11,027
11,395
11,541
12,183
(3.8)
(12.9)
Other liabilities
42,092
34,993
37,218
22,940
27,586
20.3
52.6
TOTAL LIABILITIES
5,603,349
5,668,945
5,701,272
5,472,680
5,624,093
(1.2)
(0.4)
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value per share
335
334
334
334
333
0.3
0.6
Additional paid-in capital
361,013
360,554
359,939
359,063
358,572
0.1
0.7
Retained earnings
246,636
233,578
221,693
211,400
199,898
5.6
23.4
Accumulated other comprehensive loss
(5,270)
(4,593)
(4,759)
(5,603)
(6,333)
14.7
(16.8)
TOTAL STOCKHOLDERS' EQUITY
602,714
589,873
577,207
565,194
552,470
2.2
9.1
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$ 6,206,063
$ 6,258,818
$ 6,278,479
$ 6,037,874
$ 6,176,563
(0.8)
0.5
Shares of common stock issued and outstanding
33,451,063
33,413,503
33,421,672
33,374,265
33,374,265
0.1
0.2
Book value per common share at period end
$ 18.02
$ 17.65
$ 17.27
$ 16.94
$ 16.55
2.1
8.9
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter (Unaudited)
Q1 2026 vs.
Q1 2026 vs.
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2025
Q1 2025
INTEREST INCOME
Interest on loans
$ 70,814
$ 72,092
$ 70,693
$ 69,607
$ 67,516
(1.8) %
4.9 %
Interest and dividends on taxable investment securities
5,114
5,010
5,036
5,331
5,001
2.1
2.3
Interest and dividends on tax-exempt investment securities
6
6
6
6
6
—
—
Interest on deposits with other banks
2,458
2,810
1,215
1,588
3,409
(12.5)
(27.9)
Total interest income
78,392
79,918
76,950
76,532
75,932
(1.9)
3.2
INTEREST EXPENSE
Interest on deposits
24,264
27,289
26,474
27,370
28,070
(11.1)
(13.6)
Interest on short-term borrowings
—
246
640
605
598
(100.0)
(100.0)
Interest on long-term borrowings
1,573
2,181
1,418
1,394
1,366
(27.9)
15.2
Total interest expense
25,837
29,716
28,532
29,369
30,034
(13.1)
(14.0)
NET INTEREST INCOME
52,555
50,202
48,418
47,163
45,898
4.7
14.5
Provision for credit losses
85
2,827
2,992
1,528
1,028
(97.0)
(91.7)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
52,470
47,375
45,426
45,635
44,870
10.8
16.9
NONINTEREST INCOME
Service charges on deposit accounts
1,596
1,663
1,599
1,519
1,514
(4.0)
5.4
Trust and investment fee income
1,137
1,042
898
942
823
9.1
38.2
Mortgage banking revenue
1,450
1,181
1,278
2,379
1,240
22.8
16.9
Interchange credits
1,698
1,862
1,858
1,788
1,577
(8.8)
7.7
Other noninterest income
1,363
3,158
2,305
2,778
1,980
(56.8)
(31.2)
Total noninterest income
$ 7,244
$ 8,906
$ 7,938
$ 9,406
$ 7,134
(18.7)
1.5
Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter and Year (Unaudited) – Continued
Q1 2026 vs.
Q1 2026 vs.
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2025
Q1 2025
NONINTEREST EXPENSE
Salaries and employee benefits
$ 19,639
$ 18,582
$ 18,642
$ 17,742
$ 16,440
5.7 %
19.5 %
Occupancy expense
2,567
2,461
2,406
2,472
2,538
4.3
1.1
Furniture and equipment expense
855
792
892
797
853
8.0
0.2
Software and data processing
5,140
5,197
5,155
4,819
4,691
(1.1)
9.6
Amortization of other intangible assets
1,980
2,000
2,039
2,272
2,278
(1.0)
(13.1)
Legal and professional fees
1,605
1,237
989
1,225
1,613
29.7
(0.5)
FDIC insurance premium expense
995
845
794
1,023
1,091
17.8
(8.8)
Marketing and advertising
311
367
315
384
254
(15.3)
22.4
Fraud losses
111
227
45
83
105
(51.1)
5.7
Other noninterest expense
3,853
3,791
3,102
3,593
3,884
1.6
(0.8)
Total noninterest expense
37,056
35,499
34,379
34,410
33,747
4.4
9.8
Income before income taxes
22,658
20,782
18,985
20,631
18,257
9.0
24.1
Income tax expense
5,570
4,895
4,637
5,124
4,493
13.8
24.0
NET INCOME
$ 17,088
$ 15,887
$ 14,348
$ 15,507
$ 13,764
7.6
24.1
Weighted average shares outstanding – basic
33,428,444
33,426,198
33,419,291
33,374,265
33,350,869
0.0 %
0.2 %
Weighted average shares outstanding – diluted
33,447,767
33,446,103
33,435,862
33,388,013
33,375,318
0.0 %
0.2 %
Basic net income per common share
$ 0.51
$ 0.48
$ 0.43
$ 0.46
$ 0.41
6.3 %
24.4 %
Diluted net income per common share
$ 0.51
$ 0.48
$ 0.43
$ 0.46
$ 0.41
6.3 %
24.4 %
Dividends paid per common share
$ 0.12
$ 0.12
$ 0.12
$ 0.12
$ 0.12
— %
— %
Shore Bancshares, Inc.
Consolidated Average Balance Sheets (Unaudited)
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
($ in thousands)
Average
Balance
Interest
Yield/Rate
Average
Balance
Interest
Yield/Rate
Average
Balance
Interest
Yield/Rate
Earning assets
Loans(1), (2), (3)
Commercial real estate
$ 2,601,316
$ 39,029
6.08 %
$ 2,624,581
$ 38,796
5.86 %
$ 2,541,527
$ 35,822
5.72 %
Residential real estate
1,450,114
19,311
5.33
1,442,055
19,477
5.40
1,347,035
18,433
5.47
Construction
347,973
5,631
6.56
343,796
5,740
6.62
352,323
5,526
6.36
Commercial
221,542
3,296
6.03
219,874
4,326
7.81
232,900
3,695
6.43
Consumer
262,174
3,534
5.47
274,715
3,711
5.36
304,520
4,042
5.38
Credit cards
4,369
100
9.29
4,598
132
11.40
6,686
77
4.67
Total loans
4,887,488
70,901
5.86
4,909,619
72,182
5.85
4,784,991
67,595
5.71
Investment securities
Taxable
665,729
5,114
3.07
652,990
5,010
3.07
664,002
5,001
3.01
Tax-exempt(1)
647
8
4.95
649
8
4.93
653
8
4.90
Interest-bearing deposits
269,380
2,458
3.70
280,558
2,810
3.97
318,434
3,409
4.34
Total earning assets
5,823,244
78,481
5.44
5,843,816
80,010
5.45
5,768,080
76,013
5.32
Cash and due from banks
44,182
51,611
43,526
Other assets
365,971
371,205
375,929
Allowance for credit losses
(58,742)
(59,879)
(58,294)
Total assets
$ 6,174,655
$ 6,206,753
$ 6,129,241
Shore Bancshares, Inc.
Consolidated Average Balance Sheets (Unaudited) – Continued
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
($ in thousands)
Average
Balance
Interest
Yield/Rate
Average
Balance
Interest
Yield/Rate
Average
Balance
Interest
Yield/Rate
Interest-bearing liabilities
Interest-bearing checking
$ 780,713
$ 4,840
2.51 %
$ 768,769
$ 5,386
2.78 %
$ 859,698
$ 7,025
3.31 %
Money market and savings deposits
1,812,071
8,696
1.95
1,784,972
9,373
2.08
1,799,707
10,015
2.26
Time deposits
1,270,156
10,624
3.39
1,277,732
12,425
3.86
1,208,250
11,030
3.70
Brokered deposits
11,107
104
3.80
10,942
105
3.81
—
—
—
Interest-bearing deposits(4)
3,874,047
24,264
2.54
3,842,415
27,289
2.82
3,867,655
28,070
2.94
FHLB advances
—
—
—
20,108
246
4.85
50,000
598
4.85
Subordinated debt and guaranteed
preferred beneficial interest in junior
subordinated debentures ("TRUPS")(4)
89,024
1,573
7.17
104,752
2,181
8.26
73,840
1,366
7.50
Total interest-bearing liabilities
3,963,071
25,837
2.64
3,967,275
29,716
2.97
3,991,495
30,034
3.05
Noninterest-bearing deposits
1,564,867
1,609,667
1,549,859
Accrued expenses and other liabilities
46,505
45,602
40,444
Stockholders' equity
600,212
584,209
547,443
Total liabilities and stockholders'
equity
$ 6,174,655
$ 6,206,753
$ 6,129,241
Net interest spread
2.80 %
2.48 %
2.27 %
Net interest margin
3.64
3.43
3.21
Net interest margin excluding
accretion(3)
3.35
3.24
2.99
Cost of funds
1.90
2.11
2.20
Cost of deposits
1.81
1.99
2.10
Cost of debt
7.17
7.71
6.43
(1)
All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.
(2)
Average loan balances include nonaccrual loans.
(3)
Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $4.3 million, $4.1 million and $3.7 million of accretion interest on loans for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)
Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were zero, $1.2 million and $334 thousand of amortization of deposit discounts and $79 thousand, $171 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited)
Quarter to Date
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
The following reconciles return on average assets, average equity and return on average tangible common equity(1):
Net income
$ 17,088
$ 15,887
$ 14,348
$ 15,507
$ 13,764
Annualized net income (A)
$ 69,301
$ 63,030
$ 56,924
$ 62,198
$ 55,821
Net income
$ 17,088
$ 15,887
$ 14,348
$ 15,507
$ 13,764
Add: amortization of other intangible assets, net of tax
1,493
1,529
1,541
1,708
1,717
Net income excluding amortization of other intangible assets – non-GAAP
18,581
17,416
15,889
17,215
15,481
Annualized net income excluding amortization of other intangible assets – non-GAAP (B)
$ 75,356
$ 69,096
$ 63,038
$ 69,049
$ 62,784
Net income
$ 17,088
$ 15,887
$ 14,348
$ 15,507
$ 13,764
Add: amortization of other intangible assets, net of tax
1,493
1,529
1,541
1,708
1,717
Adjusted net income – non-GAAP
18,581
17,416
15,889
17,215
15,481
Annualized adjusted net income – non-GAAP (C)
$ 75,356
$ 69,096
$ 63,038
$ 69,049
$ 62,784
Net income
$ 17,088
$ 15,887
$ 14,348
$ 15,507
$ 13,764
Less: income tax expense
5,570
4,895
4,637
5,124
4,493
Less: provision for credit losses
85
2,827
2,992
1,528
1,028
Pre-tax pre-provision net income – non-GAAP
$ 22,743
$ 23,609
$ 21,977
$ 22,159
$ 19,285
Return on average assets – GAAP
1.12 %
1.02 %
0.95 %
1.03 %
0.91 %
Adjusted return on average assets – non-GAAP
1.22 %
1.11 %
1.05 %
1.15 %
1.02 %
Average assets
$ 6,174,655
$ 6,206,753
$ 6,020,574
$ 6,021,385
$ 6,129,241
Average stockholders' equity (D)
$ 600,212
$ 584,209
$ 571,247
$ 558,952
$ 547,443
Less: average goodwill and core deposit intangible
(92,086)
(94,059)
(96,074)
(98,241)
(100,514)
Average tangible common equity (E)
$ 508,126
$ 490,150
$ 475,173
$ 460,711
$ 446,929
Return on average common equity – GAAP (A)/(D)
11.55 %
10.79 %
9.96 %
11.13 %
10.20 %
Return on average tangible common equity – non-GAAP (B)/(E)
14.83 %
14.10 %
13.27 %
14.99 %
14.05 %
Adjusted return on average tangible common equity – non-GAAP (C)/(E)
14.83 %
14.10 %
13.27 %
14.99 %
14.05 %
Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
Quarter to Date
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP(2):
Noninterest expense (F)
$ 37,056
$ 35,499
$ 34,379
$ 34,410
$ 33,747
Less: amortization of other intangible assets
(1,980)
(2,000)
(2,039)
(2,272)
(2,278)
Adjusted noninterest expense (G)
$ 35,076
$ 33,499
$ 32,340
$ 32,138
$ 31,469
Net interest income (H)
$ 52,555
$ 50,202
$ 48,418
$ 47,163
$ 45,898
Add: taxable-equivalent adjustment
89
92
83
81
81
Taxable-equivalent net interest income (I)
$ 52,644
$ 50,294
$ 48,501
$ 47,244
$ 45,979
Noninterest income (J)
$ 7,244
$ 8,906
$ 7,938
$ 9,406
$ 7,134
Adjusted noninterest income (K)
$ 7,244
$ 8,906
$ 7,938
$ 9,406
$ 7,134
Efficiency ratio – GAAP (F)/(H)+(J)
61.97 %
60.06 %
61.00 %
60.83 %
63.64 %
Adjusted efficiency ratio – non-GAAP (G)/(I)+(K)
58.57 %
56.59 %
57.30 %
56.73 %
59.25 %
Net operating expense to average assets – GAAP
1.96 %
1.70 %
1.74 %
1.67 %
1.76 %
Adjusted net operating expense to average assets – non-GAAP
1.83 %
1.57 %
1.61 %
1.51 %
1.61 %
Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
($ in thousands, except per share data)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
The following reconciles book value per common share and tangible book value per common share(1):
Stockholders' equity (L)
$ 602,714
$ 589,873
$ 577,207
$ 565,194
$ 552,470
Less: goodwill and core deposit intangible
(91,008)
(92,988)
(94,988)
(97,027)
(99,299)
Tangible common equity (M)
$ 511,706
$ 496,885
$ 482,219
$ 468,167
$ 453,171
Shares of common stock outstanding (N)
33,451,063
33,413,503
33,421,672
33,374,265
33,374,265
Book value per common share – GAAP (L)/(N)
$ 18.02
$ 17.65
$ 17.27
$ 16.94
$ 16.55
Tangible book value per common share – non-GAAP (M)/(N)
$ 15.30
$ 14.87
$ 14.43
$ 14.03
$ 13.58
The following reconciles equity to assets and tangible common equity to tangible assets(1):
Stockholders' equity (O)
$ 602,714
$ 589,873
$ 577,207
$ 565,194
$ 552,470
Less: goodwill and core deposit intangible
(91,008)
(92,988)
(94,988)
(97,027)
(99,299)
Tangible common equity (P)
$ 511,706
$ 496,885
$ 482,219
$ 468,167
$ 453,171
Assets (Q)
$ 6,206,063
$ 6,258,818
$ 6,278,479
$ 6,037,874
$ 6,176,563
Less: goodwill and core deposit intangible
(91,008)
(92,988)
(94,988)
(97,027)
(99,299)
Tangible assets (R)
$ 6,115,055
$ 6,165,830
$ 6,183,491
$ 5,940,847
$ 6,077,264
Period-end equity to assets – GAAP (O)/(Q)
9.71 %
9.42 %
9.19 %
9.36 %
8.94 %
Period-end tangible common equity to tangible assets – non-GAAP (P)/(R)
8.37 %
8.06 %
7.80 %
7.88 %
7.46 %
(1)
Management believes that reporting tangible common equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.
(2)
Management believes that reporting the adjusted efficiency ratio – non-GAAP more closely measures its effectiveness of controlling cash-based operating activities.
Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
Regulatory Capital and Ratios for the Company
($ in thousands)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Common equity
$ 602,714
$ 589,873
$ 577,207
$ 565,194
$ 552,470
Goodwill(1)
(61,061)
(61,123)
(61,176)
(61,238)
(61,300)
Core deposit intangible(2)
(21,074)
(22,566)
(24,041)
(25,573)
(27,280)
DTAs that arise from net operating loss and tax credit carryforwards
—
(48)
(40)
(39)
—
Accumulated other comprehensive loss
5,270
4,593
4,759
5,603
6,333
Common Equity Tier 1 Capital
525,849
510,729
496,709
483,947
470,223
TRUPS
30,247
30,168
30,085
30,005
29,926
Tier 1 Capital
556,096
540,897
526,794
513,952
500,149
Allowable reserve for credit losses and other Tier 2 adjustments
59,933
60,661
60,852
60,605
59,726
Subordinated debt
58,782
58,893
39,409
44,236
44,053
Total Capital
$ 674,811
$ 660,451
$ 627,055
$ 618,793
$ 603,928
Risk-Weighted Assets ("RWA")
$ 4,794,374
$ 4,852,573
$ 4,867,237
$ 4,890,679
$ 4,823,833
Average Assets ("AA")
6,098,196
6,129,306
5,942,911
5,943,124
6,050,310
Common Equity Tier 1 Capital to RWA
10.97 %
10.52 %
10.21 %
9.90 %
9.75 %
Tier 1 Capital to RWA
11.60
11.15
10.82
10.51
10.37
Total Capital to RWA
14.08
13.61
12.88
12.65
12.52
Tier 1 Capital to AA (Leverage)
9.12
8.82
8.86
8.65
8.27
Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
Regulatory Capital and Ratios for the Bank
($ in thousands)
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Common equity
$ 660,598
$ 648,279
$ 639,670
$ 627,838
$ 617,071
Goodwill(1)
(61,061)
(61,123)
(61,176)
(61,238)
(61,300)
Core deposit intangible(2)
(21,074)
(22,566)
(24,041)
(25,573)
(27,280)
Accumulated other comprehensive loss
5,270
4,593
4,759
5,603
6,333
Common Equity Tier 1 Capital
583,733
569,183
559,212
546,630
534,824
Tier 1 Capital
583,733
569,183
559,212
546,630
534,824
Allowable reserve for credit losses and other Tier 2 adjustments
59,894
60,563
60,822
60,605
59,726
Total Capital
$ 643,627
$ 629,746
$ 620,034
$ 607,235
$ 594,550
Risk-Weighted Assets ("RWA")
$ 4,791,223
$ 4,844,639
$ 4,864,871
$ 4,888,558
$ 4,821,975
Average Assets ("AA")
6,093,905
6,122,775
5,939,890
5,940,411
6,050,130
(1)
Goodwill is net of deferred tax liability.
(2)
Core deposit intangible is net of deferred tax liability.
Shore Bancshares, Inc.
Summary of Loan Portfolio (Unaudited)
Portfolio loans are summarized by loan type as follows:
($ in thousands)
March 31,
2026
% of Total
Loans
December
31, 2025
% of Total
Loans
September
30, 2025
% of Total
Loans
June 30,
2025
% of Total
Loans
March 31,
2025
% of Total
Loans
Commercial real estate
$ 2,599,815
53.62 %
$ 2,643,996
53.95 %
$ 2,642,601
54.12 %
$ 2,603,974
53.95 %
$ 2,544,107
53.25 %
Residential real estate
1,425,733
29.41
1,414,964
28.88
1,383,348
28.33
1,349,010
27.94
1,325,858
27.75
Construction
342,835
7.07
344,903
7.04
352,116
7.21
350,053
7.25
366,218
7.67
Commercial
220,833
4.56
226,006
4.61
221,598
4.54
224,092
4.64
234,499
4.91
Consumer
254,478
5.25
265,912
5.43
278,242
5.70
294,239
6.09
300,007
6.28
Credit cards
4,336
0.09
4,521
0.09
5,064
0.10
6,260
0.13
6,800
0.14
Total loans
4,848,030
100.00 %
4,900,302
100.00 %
4,882,969
100.00 %
4,827,628
100.00 %
4,777,489
100.00 %
Less: allowance for
credit losses
(58,481)
(58,836)
(59,554)
(58,483)
(58,042)
Total loans, net
$ 4,789,549
$ 4,841,466
$ 4,823,415
$ 4,769,145
$ 4,719,447
Shore Bancshares, Inc.
Classified Assets and Nonperforming Assets (Unaudited)
Classified assets and nonperforming assets are summarized as follows:
($ in thousands)
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
Classified loans
Substandard
$ 82,337
$ 57,366
$ 48,470
$ 19,930
$ 19,434
Total classified loans
82,337
57,366
48,470
19,930
19,434
Special mention loans
97,771
73,401
70,997
65,564
33,456
Total classified and special mention loans
$ 180,108
$ 130,767
$ 119,467
$ 85,494
$ 52,890
Classified loans
$ 82,337
$ 57,366
$ 48,470
$ 19,930
$ 19,434
Other real estate owned
69
113
120
179
179
Repossessed assets
3,345
2,879
3,432
2,457
2,429
Total classified assets
$ 85,751
$ 60,358
$ 52,022
$ 22,566
$ 22,042
Classified assets to total assets
1.38 %
0.96 %
0.83 %
0.37 %
0.36 %
Nonaccrual loans
$ 64,958
$ 39,960
$ 24,378
$ 16,782
$ 15,402
90+ days delinquent accruing
—
255
153
215
894
Other real estate owned ("OREO")
69
113
120
179
179
Repossessed property
3,345
2,879
3,432
2,457
2,429
Total nonperforming assets
$ 68,372
$ 43,207
$ 28,083
$ 19,633
$ 18,904
Accruing borrowers experiencing financial difficulty loans
("BEFD")
5,263
5,311
6,704
6,709
1,356
Total nonperforming assets and BEFDs modifications
$ 73,635
$ 48,518
$ 34,787
$ 26,342
$ 20,260
Nonperforming assets to total assets
1.10 %
0.69 %
0.45 %
0.33 %
0.31 %
Total assets
$ 6,206,063
$ 6,258,818
$ 6,278,479
$ 6,037,874
$ 6,176,563
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SOURCE Shore Bancshares, Inc.