$SHBI

SHORE BANCSHARES INC

CIK:0001035092|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
INTEREST INCOME
Interest on loans	$ 70,456	$ 69,607	$ 141,270	$ 137,123
Interest and dividends on taxable investment securities	5,387	5,331	10,501	10,332
Interest and dividends on tax-exempt investment securities	6	6	12	12
Interest on deposits with other banks	1,600	1,588	4,058	4,997
Total interest income	77,449	76,532	155,841	152,464
INTEREST EXPENSE
Interest on deposits	22,943	27,370	47,207	55,440
Interest on short-term borrowings	16	605	16	1,203
Interest on long-term borrowings	1,571	1,394	3,144	2,760
Total interest expense	24,530	29,369	50,367	59,403
NET INTEREST INCOME	52,919	47,163	105,474	93,061
Provision for credit losses	896	1,528	981	2,556
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	52,023	45,635	104,493	90,505
NONINTEREST INCOME
Service charges on deposit accounts	1,651	1,519	3,247	3,033
Trust and investment fee income	1,103	942	2,240	1,765
Mortgage banking revenue	1,554	2,379	3,004	3,619
Interchange credits	1,960	1,788	3,658	3,365
Other noninterest income	2,562	2,778	3,925	4,758
Total noninterest income	8,830	9,406	16,074	16,540
NONINTEREST EXPENSE
Salaries and employee benefits	18,462	17,742	38,101	34,182
Occupancy expense	2,495	2,472	5,062	5,010
Furniture and equipment expense	966	797	1,821	1,650
Software and data processing	5,335	4,819	10,475	9,510
Amortization of other intangible assets	1,975	2,272	3,955	4,550
Legal and professional fees	1,355	1,225	2,960	2,838
FDIC insurance premium expense	968	1,023	1,963	2,114
Marketing and advertising	275	384	586	638
Fraud losses	147	83	258	188
Other noninterest expense	3,690	3,593	7,543	7,477
Total noninterest expense	35,668	34,410	72,724	68,157
Income before income taxes	25,185	20,631	47,843	38,888
Income tax expense	6,320	5,124	11,890	9,617
NET INCOME	$ 18,865	$ 15,507	$ 35,953	$ 29,271
Basic net income per common share (in dollars per share)	$ 0.56	$ 0.46	$ 1.08	$ 0.88
Diluted net income per common share (in dollars per share)	0.56	0.46	1.07	0.88
Dividends paid per common share (in dollars per share)	$ 0.14	$ 0.12	$ 0.26	$ 0.24

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 35,953	$ 29,271
Adjustments to reconcile net income to net cash provided by operating activities:
Net accretion of acquisition accounting estimates	(7,949)	(6,737)
Provision for credit losses	981	2,556
Depreciation and amortization	7,150	8,126
Net amortization of securities	(201)	64
Amortization of and valuation adjustments on mortgage servicing rights	322	536
Amortization of debt issuance costs	139	61
Gain on mortgage loans held for sale	(2,608)	(2,291)
Gain on other mortgage loan activity	(135)	(938)
Proceeds from sale of mortgage loans held for sale	95,830	82,070
Originations of loans held for sale	(91,477)	(94,125)
Stock-based compensation expense	1,925	970
Deferred income tax expense (benefit)	(270)	156
Loss on sales and valuation adjustments of repossessed assets	621	123
Loss on disposal of fixed assets	0	48
Loss on disposal of premises held for sale	0	61
Loss on sales and valuation adjustments on other real estate owned	44	0
Fair value adjustment on equity securities	65	(106)
Bank-owned life insurance income	(981)	(1,287)
Net changes in:
Accrued interest receivable	(1,470)	(253)
Other assets	1,170	(1,696)
Accrued interest payable	(409)	88
Other liabilities	446	(5,251)
Net cash provided by operating activities	39,146	11,446
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and principal payments of available for sale securities	26,823	12,573
Proceeds from maturities and principal payments of held to maturity securities	48,343	23,899
Purchases of available for sale securities	(95,397)	(48,171)
Purchases of held to maturity securities	0	(2,326)
Purchases of equity securities	(97)	(90)
Purchase of restricted securities	(14)	(158)
Net change in loans	28,859	(49,173)
Purchases of premises and equipment	(1,654)	(1,905)
Proceeds from sales of other real estate owned	69	0
Proceeds from sales of repossessed assets	728	1,531
Purchases of bank-owned life insurance	(408)	(152)
Proceeds from disposal of premises held for sale	0	843
Net cash provided by (used in) investing activities	7,252	(63,129)
Net changes in:
Noninterest-bearing deposits	18,856	12,314
Interest-bearing deposits	(152,970)	(227,461)
Shares withheld as tax payments associated with settlement of restricted stock units	(543)	0
Common stock dividends paid	(8,749)	(8,037)
Retirement of common stock	(1,060)	0
Issuance of common stock	172	0
Net cash used in financing activities	(144,294)	(223,184)
Net decrease in cash and cash equivalents	(97,896)	(274,867)
Cash and cash equivalents at beginning of period	355,566	459,851
Cash and cash equivalents at end of period	257,670	184,984
Supplemental cash flow information:
Interest paid	50,478	58,022
Income taxes paid	12,830	7,985
Recognition of lease liabilities arising from right-of-use assets	0	912
Transfers from loans to repossessed assets	832	947
Transfer from loans held for sale to loans held for investment	0	649
Unrealized (losses) gains on available for sale securities	$ (2,059)	$ 2,671

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 53,335	$ 50,164
Interest-bearing deposits with other banks	204,335	305,402
Cash and cash equivalents	257,670	355,566
Investment securities:
Available for sale, at fair value (amortized cost of $295,747 and $226,677 at June 30, 2026 and December 31, 2025, respectively)	287,369	220,358
Held to maturity, net of allowance for credit losses of $76 and $99 (fair value of $328,696 and $378,116 at June 30, 2026 and December 31, 2025, respectively)	366,213	414,827
Equity securities, at fair value	6,218	6,186
Restricted securities, at cost	18,003	17,989
Loans held for sale, at fair value	30,827	32,540
Loans held for investment	4,877,749	4,900,302
Less: allowance for credit losses	(58,737)	(58,836)
Loans, net	4,819,012	4,841,466
Premises and equipment, net	79,580	80,168
Goodwill	63,266	63,266
Other intangible assets, net	25,767	29,722
Right-of-use assets	9,691	10,523
Cash surrender value on life insurance	107,724	105,839
Accrued interest receivable	20,021	18,551
Deferred income taxes	30,657	29,825
Other assets	29,413	31,992
TOTAL ASSETS	6,151,431	6,258,818
Deposits:
Noninterest-bearing	1,606,809	1,587,953
Interest-bearing checking	833,602	852,585
Money market and savings	1,710,570	1,814,928
Time deposits	1,247,973	1,267,487
Brokered deposits	796	10,911
Total deposits	5,399,750	5,533,864
Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”), net	30,327	30,168
Subordinated debt, net	58,825	58,893
Total borrowings	89,152	89,061
Lease liabilities	10,199	11,027
Other liabilities	36,255	34,993
TOTAL LIABILITIES	5,535,356	5,668,945
COMMITMENTS AND CONTINGENCIES (Note 13)
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value per share; shares authorized 50,000,000; shares issued and outstanding 33,416,336 and 33,413,503 at June 30, 2026 and December 31, 2025, respectively	334	334
Additional paid-in capital	361,048	360,554
Retained earnings	260,782	233,578
Accumulated other comprehensive loss	(6,089)	(4,593)
TOTAL STOCKHOLDERS’ EQUITY	616,075	589,873
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 6,151,431	$ 6,258,818