Shore Bancshares, Inc. Reports 2025 Fourth Quarter and Annual Results

Rhea-AI Summary

Shore Bancshares (NASDAQ: SHBI) reported Q4 2025 net income of $15.9 million ($0.48 diluted) and full-year net income of $59.5 million versus $43.9 million in 2024. Key operating metrics: ROAA 1.02%, NIM 3.43%, total assets $6.26 billion, and book value per share $17.65 at December 31, 2025.

Asset quality weakened: nonperforming assets rose to 0.69% and classified assets to 0.96%. Allowance for credit losses was $58.8 million (1.20% of loans). Efficiency ratio improved to 60.06% for Q4 2025.

Positive

• Q4 net income of $15.9 million (Q4 2025)
• Full-year net income of $59.5 million in 2025
• NIM increased to 3.43% in Q4 2025
• Book value per share rose to $17.65 at 12/31/2025
• Efficiency ratio improved to 60.06% in Q4 2025
• Total assets of $6.26 billion at 12/31/2025

Negative

• Nonperforming assets increased to 0.69% of assets at 12/31/2025
• Classified assets rose to 0.96% of assets at 12/31/2025
• Allowance for credit losses $58.8 million represented 1.20% of loans
• Q4 charge-off of $2.6 million in office CRE portfolio

Key Figures

Q4 2025 net income: $15.9M Q4 2025 EPS: $0.48 2025 net income: $59.5M +5 more

8 metrics

Q4 2025 net income $15.9M Fourth quarter 2025 net income

Q4 2025 EPS $0.48 Diluted EPS, fourth quarter 2025

2025 net income $59.5M Net income year ended Dec 31, 2025 vs $43.9M in 2024

Q4 2025 ROAA 1.02% Return on average assets, fourth quarter 2025

Q4 2025 NIM 3.43% Net interest margin, fourth quarter 2025

Book value per share $17.65 Book value per share at Dec 31, 2025

Nonperforming assets ratio 0.69% Nonperforming assets as % of total assets at Dec 31, 2025

Efficiency ratio 60.06% Q4 2025 efficiency ratio

Market Reality Check

Price: $18.37 Vol: Volume 125,991 is below 2...

normal vol

$18.37 Last Close

Volume Volume 125,991 is below 20-day average 155,935 (relative volume 0.81x). normal

Technical Price 18.54 is trading above 200-day MA at 16.10 and within 4.38% of 52-week high.

Peers on Argus

SHBI gained 0.6% with mixed peer moves: BHB, FMNB, WASH up modestly, while HONE ...

SHBI gained 0.6% with mixed peer moves: BHB, FMNB, WASH up modestly, while HONE and GNTY declined. This points to a stock-specific response to earnings rather than a broad sector swing.

Common Catalyst Select regional bank peers, such as FMNB, also reported Q4 2025 earnings, indicating an earnings-season backdrop for the group.

Historical Context

4 past events · Latest: Nov 13 (Neutral)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Nov 13	Debt capital raise	Neutral	-0.8%	Completed $60M subordinated notes offering to support Tier 2 capital and refinancing.
Nov 03	Dividend declaration	Positive	+0.5%	Announced $0.12 per share quarterly dividend to common stockholders.
Oct 23	Quarterly earnings	Neutral	-0.9%	Reported Q3 2025 results with higher NII and NIM but rising nonperforming assets.
Aug 01	Dividend declaration	Positive	+1.1%	Declared regular $0.12 per share dividend, underscoring ongoing cash returns.

Pattern Detected

Recent history shows mild positive reactions to dividend declarations and modest pressure around capital actions and detailed earnings reports, suggesting investors balance income appeal with credit and capital considerations.

Recent Company History

Over the past several months, Shore Bancshares reported Q3 2025 results on Oct 23, 2025, showing growing net interest income but emerging asset quality stress. It subsequently maintained shareholder returns with recurring $0.12 quarterly dividends announced on Aug 1, 2025 and Nov 3, 2025. On Nov 13, 2025, the company completed a $60.0M subordinated notes offering to bolster regulatory capital and refinance debt. Today’s Q4 and full-year 2025 report extends that narrative of improving profitability alongside tighter focus on credit quality and capital.

Market Pulse Summary

This announcement highlights stronger core profitability, with Q4 net income of $15.9M, full-year 20...

Analysis

This announcement highlights stronger core profitability, with Q4 net income of $15.9M, full-year 2025 net income of $59.5M, ROAA at 1.02%, and NIM at 3.43%. At the same time, nonperforming assets increased to 0.69% of total assets and substandard loans rose, reflecting heightened credit risk, particularly in commercial real estate. Investors may track trends in the office CRE portfolio, charge-offs, and the allowance for credit losses alongside ongoing efficiency gains and balance sheet growth to gauge future risk–reward.

Key Terms

net interest margin, nonperforming assets, Tier 1 Capital, net charge-offs, +1 more

5 terms

net interest margin financial

"Net Interest Margin ("NIM") – Net interest income for the fourth quarter..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

nonperforming assets financial

"Asset Quality – Nonperforming assets were 0.69% of total assets at December 31, 2025..."

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

Tier 1 Capital financial

"non-owner occupied commercial real estate ("CRE") loans were $2.15 billion... as a percentage of the Bank's Tier 1 Capital + ACL..."

Tier 1 capital is a bank’s core financial cushion—mainly common stock, retained earnings and certain reserves—that can absorb losses while the bank keeps operating. Investors care because it signals a lender’s ability to survive stress, meet regulatory requirements and continue lending or paying dividends; think of it as the engine’s safety margin that keeps a car running through bumps in the road.

net charge-offs financial

"Net charge-offs increased to $3.6 million for the fourth quarter of 2025..."

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

subordinated debt financial

"a new debt issuance of $60.0 million during the quarter, which replaced $45 million of subordinated debt..."

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

AI-generated analysis. Not financial advice.

EASTON, Md., Jan. 28, 2026 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ – SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United Bank, N.A. (the "Bank") reported net income for the fourth quarter of 2025 of $15.9 million, or $0.48 per diluted common share, compared to net income of $14.3 million, or $0.43 per diluted common share, for the third quarter of 2025, and net income of $13.3 million, or $0.40 per diluted common share, for the fourth quarter of 2024.

Fourth Quarter and Full-Year 2025 Highlights

• Net Income – Net income for the fourth quarter of 2025 increased $1.5 million to $15.9 million from $14.3 million in the third quarter of 2025. Net income increased primarily due to higher net interest income of $1.8 million and higher noninterest income of $966 thousand driven by one-time insurance proceeds, partially offset by higher noninterest expense of $1.1 million. Net income for the year ended December 31, 2025 was $59.5 million, compared to $43.9 million for the year ended December 31, 2024. The annual increase was primarily driven by an increase in net interest income due to loans repricing favorably, coupled with lower cost of deposits during the period. The favorable changes were offset by a higher provision for loan losses, driven by increased charge-offs in 2025.
• Return on Average Assets ("ROAA") – The Company reported ROAA of 1.02% for the fourth quarter of 2025, compared to 0.95% for the third quarter of 2025 and 0.86% for the fourth quarter of 2024. Non-U.S. generally accepted accounting principles ("GAAP") adjusted ROAA^([1]) was 1.11% for the fourth quarter of 2025, compared to 1.05% for the third quarter of 2025 and 0.94% for the fourth quarter of 2024.
• Net Interest Margin ("NIM") – Net interest income for the fourth quarter of 2025 increased $1.8 million to $50.4 million compared to the third quarter of 2025. NIM increased 1 basis point ("bps") to 3.43% during the fourth quarter of 2025 compared to the third quarter of 2025. NIM excluding accretion⁽¹⁾ increased for the comparable periods from 3.22% to 3.24%. Excluding accretion interest, loan yields increased 2 bps and funding costs decreased 4 bps for the comparable periods. Net interest income increased due to modest loan growth and higher yields on investments, coupled with a lower cost of deposits. 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 $17.65 at December 31, 2025 from $17.27 at September 30, 2025 and $16.23 at December 31, 2024.
• Asset Quality – Nonperforming assets were 0.69% of total assets at December 31, 2025, an increase from 0.45% at September 30, 2025 and 0.40% at December 31, 2024. Classified assets were 0.96% of total assets at December 31, 2025, an increase when compared to 0.83% at September 30, 2025 and 0.45% at December 31, 2024. The allowance for credit losses ("ACL") was $58.8 million at December 31, 2025, compared to $59.6 million at September 30, 2025 and $57.9 million at December 31, 2024. The ACL as a percentage of loans decreased to 1.20% at December 31, 2025, compared to 1.22% at September 30, 2025 and 1.21% at December 31, 2024.
• Operating Leverage – The efficiency ratio for the fourth quarter of 2025 was 60.06% compared to 61.00% in the third quarter of 2025 and 64.21% for the fourth quarter of 2024. The non-GAAP efficiency ratio⁽¹⁾, which excludes amortization of intangibles was 56.59% for the fourth quarter of 2025, compared to 57.30% for the third quarter of 2025 and 60.28% for the fourth quarter of 2024. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time.

"Our fourth-quarter and full year results underscore the strength and momentum of the bank," stated James ("Jimmy") Burke, President and Chief Executive Officer. "We delivered meaningful quarterly and annual improvements in net income, net interest income, ROAA, and NIM, while controlling expenses and driving operating leverage. Nonperforming and classified assets have increased but overall asset quality remains solid and is supported by strong collateral and reserves.

As we enter 2026, we remain confident in our ability to strengthen core profitability and deliver sustainable long‑term value for our shareholders."

Balance Sheet Review

Total assets were $6.26 billion at December 31, 2025, an increase of $28.1 million, or 0.5%, when compared to $6.23 billion at December 31, 2024. The increase was primarily due to an increase in our loan portfolio of $128.3 million and an increase in our investment securities portfolio of $5.3 million, which were partially offset by a decrease in cash and cash equivalents of $104.3 million.   The decrease in cash and cash equivalents was primarily driven by loan growth. Total assets decreased $19.7 million, or 0.3%, from $6.28 billion when compared to September 30, 2025.

Non-owner occupied commercial real estate ("CRE") loans were $2.15 billion and $2.08 billion, and as a percentage of the Bank's Tier 1 Capital + ACL were 343% and 360% at December 31, 2025 and 2024, respectively.

CRE loans (excluding land and construction) at December 31, 2025 were $2.64 billion compared to $2.56 billion at December 31, 2024. The following table provides the stratification of the classes of CRE loans (excluding land and construction) at December 31, 2025.

		December 31, 2025
		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		42.28 %		$                594		$          30,300		49.55 %		$             1,796		$          98,803
Office, govt. or govt. contractor		52.80		590		4,722		56.41		2,924		46,780
Office, other		47.74		472		88,800		47.17		1,342		216,114
Office, total		46.80		501		123,822		48.35		1,559		361,697
Retail		49.74		596		64,988		48.36		2,595		485,267
Multi-family (5+ units)		—		—		—		54.30		2,367		262,788
Hotel/motel		—		—		—		44.03		4,088		196,211
Industrial/warehouse		46.88		657		94,538		48.13		1,472		189,937
Commercial-improved		42.04		1,186		217,092		49.36		1,274		156,753
Marine/boat slips		30.58		1,493		38,812		36.85		1,484		7,421
Restaurant		48.38		985		55,149		49.58		1,039		43,635
Church		34.37		878		59,690		13.26		2,368		2,368
Land/lot loans		46.47		582		1,164		49.68		1,339		1,339
Other		40.20		1,420		149,429		40.85		1,272		131,896
Total CRE loans, gross		43.61		843		$        804,684		47.68		1,886		$     1,839,312

(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, which includes owner occupied and non-owner occupied CRE loans, was $485.9 million, or 9.9% of total loans at December 31, 2025. The office CRE loan portfolio included loans to medical tenants of $129.1 million, or 26.6% of the total office CRE loan portfolio, at December 31, 2025. The office CRE loan portfolio also included loans to government or government contractor tenants of $51.5 million, or 10.6% of the total office CRE loan portfolio for the same period. At December 31, 2025, the average loan debt-service coverage ratio on the office CRE loan portfolio was 1.7x and the average LTV was 47.55%.

The 481 loans in the office CRE portfolio at December 31, 2025 had an average loan size of $1.0 million and a median loan size of $365 thousand. LTV estimates for the office CRE portfolio at December 31, 2025 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%		244		$                    170,536		35.0 %
Greater than 50% and less than or equal to 60%		73		114,510		23.6
Greater than 60% and less than or equal to 70%		92		149,203		30.7
Greater than 70% and less than or equal to 80%		58		42,608		8.8
Greater than 80%		14		9,083		1.9
Total		481		$                    485,940		100.0 %

There were 17 office CRE loans with balances greater than $5.0 million, totaling $166.1 million at December 31, 2025, compared to 18 office CRE loans totaling $164.5 million at December 31, 2024. The increase this portfolio segment was the result of normal amortization, the payoff of a $5.6 million loan, the change in purpose of collateral of an $11.8 million loan from office to school, and a loan opened for $25 million. Of the office CRE portfolio balance, 80.5% was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.1% was secured by properties with five stories or less. Of the office CRE loans, $30.7 million were classified as special mention or substandard at December 31, 2025. In the fourth quarter of 2025 there was a charge-off of $2.6 million related to the office CRE portfolio. There were no other office CRE portfolio charge-offs during 2025.

Nonperforming assets were $43.2 million and $28.1 million, or 0.69% and 0.45% of total assets, as of December 31, 2025 and September 30, 2025, respectively. The balance of nonperforming assets increased $15.1 million in the fourth quarter, primarily due to commercial real estate and consumer loans. When comparing December 31, 2025 to December 31, 2024, nonperforming assets increased $18.4 million, primarily due to an increase in nonaccrual loans of $19.0 million and an decrease in repossessed marine and auto loans of $502 thousand. Substandard loans, which include nonaccrual loans, accruing loans and accruing loans 90 days or more past due were $57.4 million at December 31, 2025 compared to $48.5 million at September 30, 2025 and $24.7 million at December 31, 2024. The increase was primarily due to several commercial non-owner occupied real estate loans that were downgraded during the current period. All of these loans are well secured by collateral and required minimal individual reserves as of December 31, 2025.

Total deposits increased $5.7 million from September 30, 2025 to $5.53 billion at December 31, 2025 and increased $5.5 million when compared to December 31, 2024. The increase in total deposits year-to-date was primarily due to an increase in time deposits of $85.9 million, an increase in noninterest-bearing accounts of $25.1 million, an increase in brokered deposits of $10.9 million and an increase in money market and savings accounts of $9.0 million. These increases were partially offset by a decrease in interest-bearing checking deposits of $125.5 million. Core deposits, which exclude municipal deposits, increased by $154.8 million, or 3.8%, during the same period, which was partially offset by volatility driven by a large client relationship.

Total funding, which includes customer deposits, Federal Home Loan Bank ("FHLB") advances and brokered deposits was $5.53 billion at December 31, 2025, compared to $5.58 billion at September 30, 2025. FHLB advances were $50.0 million at September 30, 2025, which was repaid in the fourth quarter of 2025. Brokered deposits were $10.9 million at December 31, 2025 and September 30, 2025. Total reciprocal deposits were $1.52 billion and $1.48 billion at December 31, 2025 and September 30, 2025, respectively.

Uninsured deposits were $937.2 million, or 16.9% of total deposits, at December 31, 2025. Uninsured deposits, excluding deposits secured with pledged collateral, were $786.5 million, or 14.2% of total deposits, at December 31, 2025. At December 31, 2025, the available liquidity was $1.42 billion, including $355.6 million in cash and cash equivalents, $1.07 billion in secured borrowing capacity at the FHLB and other correspondent banks, and $95.0 million in unsecured lines of credit.

Total stockholders' equity increased $48.8 million, or 9.0%, when compared to December 31, 2024, primarily due to current year earnings and a decrease in accumulated other comprehensive losses, partially offset by cash dividends paid. As of December 31, 2025 and 2024, the ratio of total equity to total assets was 9.42% and 8.68%, respectively, and the ratio of total tangible equity to total tangible assets^([2]) was 8.06% and 7.17%, respectively. The Company's tangible common equity ratio at December 31, 2025 was 8.06% compared to 7.17% at December 31, 2024. The Company's Tier 1 and Total Risk-Based Capital Ratios at December 31, 2025 were 11.15% and 13.61%, respectively.

Review of Quarterly Financial Results

Net interest income was $50.4 million for the fourth quarter of 2025, compared to $48.7 million for the third quarter of 2025 and $44.0 million for the fourth quarter of 2024. The increase in net interest income when compared to the third quarter of 2025 was primarily due to an increase in interest income on deposits at other banks of $1.6 million, an increase in interest income on loans of $1.4 million and a decrease in interest expense on short-term borrowings of $394 thousand. These favorable changes were partially offset by an increase in interest expense on deposits of $815 thousand and an increase in interest expense of long-term borrowings of $763 thousand. The increase in interest expense on long-term borrowings is due to a new debt issuance of $60.0 million during the quarter, which replaced $45 million of subordinated debt that was redeemed at the end of the quarter. The increase in net interest income was $6.4 million when compared to the fourth quarter of 2024, and was primarily due to an increase in interest and fees on loans of $4.9 million and a decrease in interest expense on deposits of $3.1 million. These favorable changes were partially offset by a decrease in interest on deposits with other banks of $1.3 million, an increase in interest expense on short-term borrowings of $246 thousand, and an increase in interest expense on long-term borrowings of $151 thousand.

The Company's NIM increased to 3.43% for the fourth quarter of 2025 from 3.42% for the third quarter of 2025, primarily due to higher core interest income. NIM excluding accretion increased for the comparable periods from 3.22% to 3.24%. Excluding accretion interest income, loan yields increased 2 bps and funding costs decreased 4 bps for the comparable periods. Interest expense for the fourth quarter of 2025 increased $1.2 million compared to the third quarter of 2025, primarily due to write-offs of merger-related interest rate marks on certain deposit products. The Company's NIM increased to 3.43% for the fourth quarter of 2025 from 3.03% for the fourth quarter of 2024. The Company's average interest-earning asset yield increased to 5.45% for the fourth quarter of 2025 from 5.25% for the fourth quarter of 2024, while the average cost of funds decreased 20 bps to 2.11% from 2.31% for the same periods.

The provision for credit losses was $2.8 million for the three months ended December 31, 2025. The comparable amounts were $3.0 million for the three months ended September 30, 2025 and $780 thousand for the three months ended December 31, 2024. The decrease in the provision for credit losses for the fourth quarter of 2025 compared to the third quarter of 2025 was due to lower reserves resulting from favorable economic conditions, partially offset by charge-offs driven by a large commercial real estate loan write-down. Coverage ratios decreased to 1.20% at December 31, 2025 from 1.22% at September 30, 2025, and decreased from 1.21% at December 31, 2024. Net charge-offs increased to $3.6 million for the fourth quarter of 2025 compared to $1.8 million for the third quarter of 2025 and $1.3 million for the fourth quarter of 2024. The increase was driven by a large commercial real estate write-down in the fourth quarter 2025.

Total noninterest income for the fourth quarter of 2025 was $8.7 million, an increase of $1.0 million from $7.7 million for the third quarter of 2025, and a decrease of $186 thousand from $8.9 million for the fourth quarter of 2024. When comparing the fourth quarter of 2025 to the third quarter of 2025, the increase in noninterest income was primarily due to a one-time receipt of insurance proceeds. Comparing the fourth quarter of 2025 to the fourth quarter of 2024, the decrease in noninterest income was primarily due a decrease in mortgage banking revenue, partially offset by an increase in trust and investment fee income, an increase in interchange credits and the absence of the one-time gain on sale of real property in 2024.

Total noninterest expense of $35.5 million for the fourth quarter of 2025 increased $1.1 million compared to $34.4 million for the third quarter of 2025, and increased $1.6 million compared to $33.9 million for the fourth quarter of 2024. The increase from the third quarter of 2025 was primarily due to higher professional service fees of $248 thousand and other noninterest expense of $689 thousand related to writedown of repossessed assets. The increase from the fourth quarter of 2024 was primarily due to higher salaries and benefits expense of $1.4 million and higher software and data processing costs of $685 thousand, partially offset by lower amortization of other intangible assets of $298 thousand and lower legal and professional services of $284 thousand.

The efficiency ratio for the fourth quarter of 2025 when compared to the third quarter of 2025 and the fourth quarter of 2024 was 60.06%, 61.00% and 64.21%, respectively. Non-GAAP efficiency ratios^([3]) for the same periods were 56.59%, 57.30% and 60.28%, respectively.

Review of Full-Year Financial Results

Net interest income for the year ended December 31, 2025 was $192.4 million, an increase of $21.8 million, or 12.8%, when compared to the year ended December 31, 2024. The increase in net interest income was primarily due to an increase in total interest income of $14.7 million, or 5.0%, which included an increase in interest and fees on loans of $11.0 million, or 4.1%, an increase in interest on deposits with other banks of $2.8 million, or 44.6%, and an increase in interest income on taxable investments of $934 thousand. The increase in interest and fees on loans was primarily due to the increase in the average balance of loans of $130.3 million, or 2.8%. The decrease in total interest expense was primarily due to a decrease in interest on deposits of $6.1 million and the decrease in interest expense on borrowings of $1.0 million was as a result of lower average FHLB advances and associated rates during the year.

The Company's NIM increased from 3.10% for the year ended December 31, 2024 to 3.36% for the year ended December 31, 2025. Margins were higher due to a $211.0 million increase in interest-earning asset balances and a 5 basis point increase in interest-earning asset yields. These positive movements were coupled with lower-cost interest-bearing deposits. The increase in the average balances of interest-bearing deposits of $49.9 million was offset by a 20 basis point decrease in the associated rates paid, as well as a $27.2 million decrease in the average balance of FHLB advances and a 44 basis point decrease in the associated rates paid. Net accretion income impacted net interest margin by 21 basis points and 27 basis points for the year ended December 31, 2025 and 2024, respectively, which resulted in NIM excluding accretion of 3.15% and 2.83% for the same periods.

The provision for credit losses for the year ended December 31, 2025 and 2024 was $8.4 million and $4.7 million, respectively. The increase in the provision for credit losses during 2025 was due to higher reserves related to growth in the loan portfolio and higher charge-offs, partially offset by an improved economic outlook. Net charge-offs for the year ended December 31, 2025 were $6.6 million compared to $4.1 million for the year ended December 31, 2024.

Total noninterest income for the year ended December 31, 2025 increased $1.5 million, or 4.9%, when compared to the same period in 2024. The increase was primarily due to a $344 thousand increase in interchange credits, a $338 thousand increase in trust and investment fee income, and a $622 thousand increase in other noninterest income.

Total noninterest expense for the year ended December 31, 2025 decreased $219 thousand, or 0.2%, when compared to the same period in 2024. Noninterest expense line items decreased primarily due to the absence of the $4.7 million credit card fraud event that occurred in 2024 and lower amortization of intangible assets of $1.2 million, which was partially offset by higher salaries and employee benefit expenses of $4.8 million and a $2.4 million increase in software and data processing expense in year ended December 31, 2025.

The efficiency ratio for the year ended December 31, 2025 was 61.33% compared to 68.55% for the year ended December 31, 2024. Non-GAAP efficiency ratios for the same periods were 57.43% and 61.43%, respectively. The net operating expense ratio, which is noninterest expense less noninterest income divided by average assets, was 1.73% for the year ended December 31, 2025, compared to 1.82% for the year ended December 31, 2024. The non-GAAP net operating expense ratio^([4]), which excludes core deposit intangible amortization and non-recurring activity, was 1.59% for the year ended December 31, 2025, compared to 1.58% for the year ended December 31, 2024.

Dividend Schedule

Beginning this quarter, the Company's Board of Directors will consider regular dividend declarations in February, May, August and November, with dividends, when declared, payable in March, June, September and December, which is one month later than in the past.

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 may contain 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. 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. 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 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. The Company provides greater detail regarding some of these factors in its Annual Report on Form 10-K for the year ended December 31, 2024, including in the Risk Factors section of that report, and in its other SEC reports. 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.

⁽¹⁾ See the Reconciliation of GAAP and non-GAAP Measures tables.

Shore Bancshares, Inc. Financial Highlights By Quarter and Year (Unaudited)
												Q4 2025 vs.		Q4 2025 vs.		Year Ended December 31,
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		Q3 2025		Q4 2024		2025		2024		2025 vs. 2024
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income		$        50,533		$        48,738		$        47,333		$        46,110		$        44,093		3.7 %		14.6 %		$      192,712		$      170,874		12.8 %
Less: Taxable-equivalent adjustment		92		83		81		81		82		10.8		12.2		335		325		3.1
Net interest income		50,441		48,655		47,252		46,029		44,011		3.7		14.6		192,377		170,549		12.8
Provision for credit losses		2,827		2,992		1,528		1,028		780		(5.5)		262.4		8,375		4,738		76.8
Noninterest income		8,667		7,701		9,318		7,003		8,853		12.5		(2.1)		32,688		31,147		4.9
Noninterest expense		35,499		34,379		34,410		33,747		33,943		3.3		4.6		138,035		138,254		(0.2)
Income before income taxes		20,782		18,985		20,632		18,257		18,141		9.5		14.6		78,655		58,704		34.0
Income tax expense		4,895		4,637		5,125		4,493		4,859		5.6		0.7		19,149		14,815		29.3
NET INCOME		$        15,887		$        14,348		$        15,507		$        13,764		$        13,282		10.7		19.6		$        59,506		$        43,889		35.6
Adjusted net income – non-GAAP(1)		$        17,416		$        15,889		$        17,215		$        15,481		$        14,636		9.6 %		19.0 %		$        66,004		$        54,348		21.4 %
Pre-tax pre-provision net income – non-GAAP(1)		$        23,609		$        21,977		$        22,160		$        19,285		$        18,921		7.4 %		24.8 %		$        87,030		$        63,442		37.2 %
Return on average assets – GAAP		1.02 %		0.95 %		1.03 %		0.91 %		0.86 %		7 bp		16 bp		0.98 %		0.74 %		24 bp
Adjusted return on average assets – non-GAAP(1)		1.11		1.05		1.15		1.02		0.94		6		17		1.08		0.92		16
Return on average common equity – GAAP		10.79		9.96		11.13		10.20		9.82		83		97		10.52		8.35		217
Return on average tangible common equity – non-GAAP(1)		14.10		13.27		14.99		14.05		13.67		83		43		14.09		12.21		188
Net interest spread		2.48		2.46		2.39		2.30		2.02		2		46		2.40		2.14		26
Net interest margin		3.43		3.42		3.35		3.24		3.03		1		40		3.36		3.10		26
Efficiency ratio – GAAP		60.06		61.00		60.83		63.64		64.21		(94)		(415)		61.33		68.55		(722)
Efficiency ratio – non-GAAP(1)		56.59		57.30		56.73		59.25		60.28		(71)		(369)		57.43		61.43		(400)
Noninterest income to average assets		0.55		0.51		0.62		0.46		0.57		4		(2)		0.54		0.53		1
Noninterest expense to average assets		2.27		2.27		2.29		2.23		2.19		—		8		2.26		2.34		(8)
Net operating expense to average assets – GAAP		1.72		1.76		1.67		1.77		1.62		(4)		10		1.73		1.82		(9)
Net operating expense to average assets – non-GAAP(1)		1.59		1.62		1.52		1.62		1.50		(3)		9		1.59		1.58		1
PER SHARE DATA
Basic net income per common share		$           0.48		$           0.43		$           0.46		$           0.41		$           0.40		11.6 %		20.0 %		$           1.78		$           1.32		34.8 %
Diluted net income per common share		0.48		0.43		0.46		0.41		0.40		11.6		20.0		1.78		1.32		34.8
Dividends paid per common share		0.12		0.12		0.12		0.12		0.12		—		—		0.48		0.48		—
Book value per common share at period end		17.65		17.27		16.94		16.55		16.23		2.2		8.7		17.65		16.23		8.7
Tangible book value per common share at period end – non-GAAP(1)		14.87		14.43		14.03		13.58		13.19		3.0		12.7		14.87		13.19		12.7
Common share market value at period end		17.68		16.41		15.72		13.54		15.85		7.7		11.5		17.68		15.85		11.5
Common share intraday price:
High		$          19.22		$          17.67		$          15.88		$          17.24		$          17.61		8.8 %		9.1 %		19.22		17.61		9.1 %
Low		14.93		14.96		11.47		13.15		13.21		(0.2)		13.0		11.47		10.06		14.0

____________________________________
(1)	See the Reconciliation of GAAP and Non-GAAP Measures tables.

 

Shore Bancshares, Inc. Financial Highlights By Quarter and Year (Unaudited) – Continued
												Q4 2025 vs.		Q4 2025 vs.		Year Ended December 31,
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		Q3 2025		Q4 2024		2025		2024		2025 vs. 2024
AVERAGE BALANCE SHEET DATA
Loans		$   4,909,619		$   4,884,003		$   4,833,558		$   4,784,991		$   4,796,245		0.5 %		2.4 %		$   4,853,469		$   4,723,215		2.8 %
Investment securities		653,639		664,535		683,680		664,655		655,610		(1.6)		(0.3)		666,591		668,279		(0.3)
Earning assets		5,843,816		5,658,981		5,660,409		5,768,080		5,798,454		3.3		0.8		5,731,919		5,520,904		3.8
Assets		6,206,753		6,020,574		6,021,385		6,129,241		6,163,497		3.1		0.7		6,094,659		5,896,931		3.4
Deposits		5,452,082		5,280,252		5,297,567		5,417,514		5,461,583		3.3		(0.2)		5,361,893		5,188,812		3.3
FHLB advances		20,108		52,391		50,000		50,000		50,000		(61.6)		(59.8)		43,068		70,298		(38.7)
Subordinated debt & TRUPS		104,752		74,363		74,102		73,840		73,578		40.9		42.4		81,828		72,907		12.2
Stockholders' equity		584,209		571,247		558,952		547,443		538,184		2.3		8.6		565,579		525,742		7.6
CREDIT QUALITY DATA
Net charge-offs		$          3,619		$          1,825		$            649		$            554		$          1,333		98.3 %		171.5 %		$          6,647		$          4,072		63.2 %
Nonaccrual loans		$        39,960		$        24,378		$        16,782		$        15,402		$        21,008		63.9 %		90.2 %
Loans 90 days past due and still accruing		255		153		215		894		294		66.7		(13.3)
Other real estate owned and repossessed property		2,992		3,552		2,636		2,608		3,494		(15.8)		(14.4)
Total nonperforming assets		$        43,207		$        28,083		$        19,633		$        18,904		$        24,796		53.9		74.2

 

Shore Bancshares, Inc. Financial Highlights By Quarter and Year (Unaudited) – Continued
												Q4 2025 vs.		Q4 2025 vs.		Year Ended December 31,
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		Q3 2025		Q4 2024		2025		2024		2025 vs. 2024
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets – GAAP		9.42 %		9.19 %		9.36 %		8.94 %		8.68 %		23 bp		74 bp
Period-end tangible equity to tangible assets – non-GAAP(1)		8.06		7.80		7.88		7.46		7.17		26		89
Annualized net charge-offs to average loans		0.29 %		0.15 %		0.05 %		0.05 %		0.11 %		14 bp		18 bp		0.14 %		0.09 %		5                bp
Allowance for credit losses as a percent of:
Period-end loans		1.20 %		1.22 %		1.21 %		1.21 %		1.21 %		(2) bp		(1) bp
Period-end nonaccrual loans		147.24		244.29		348.49		376.85		275.66		(9,705)		(12,842)
Period-end nonperforming assets		136.17		212.06		297.88		307.04		233.55		(7,589)		(9,738)
As a percent of total loans at period-end:
Nonaccrual loans		0.82 %		0.50 %		0.35 %		0.32 %		0.44 %		32 bp		38 bp
As a percent of total loans, other real estate owned and repossessed property at period-end:
Nonperforming assets		0.88 %		0.57 %		0.41 %		0.40 %		0.52 %		31 bp		36 bp
As a percent of total assets at period-end:
Nonaccrual loans		0.64 %		0.39 %		0.28 %		0.25 %		0.34 %		25 bp		30 bp
Nonperforming assets		0.69		0.45		0.33		0.31		0.40		24		29

____________________________________
(1)	See the Reconciliation of GAAP and Non-GAAP Measures tables.

 

Shore Bancshares, Inc. Financial Highlights By Quarter and Year (Unaudited) – Continued
												Q4 2025 vs.		Q4 2025 vs.
($ in thousands)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		Q3 2025		Q4 2024
The Company Amounts
Common Equity Tier 1 Capital		$   510,729		$   496,709		$   483,947		$   470,223		$     458,258		2.82 %		11.45 %
Tier 1 Capital		540,897		526,794		513,952		500,149		488,105		2.68		10.82
Total Capital		660,451		627,055		618,793		603,928		591,228		5.33		11.71
Risk-Weighted Assets		4,852,573		4,867,237		4,890,679		4,823,833		4,852,564		(0.30)		—
The Company Ratios
Common Equity Tier 1 Capital to RWA		10.52 %		10.21 %		9.90 %		9.75 %		9.44 %		31 bp		108 bp
Tier 1 Capital to RWA		11.15		10.82		10.51		10.37		10.06		33		109
Total Capital to RWA		13.61		12.88		12.65		12.52		12.18		73		143
Tier 1 Capital to AA (Leverage)		8.82		8.86		8.65		8.27		8.02		(4)		80
The Bank Amounts
Common Equity Tier 1 Capital		$   569,183		$   559,212		$   546,630		$   534,824		$   521,453		1.78 %		9.15 %
Tier 1 Capital		569,183		559,212		546,630		534,824		521,453		1.78		9.15
Total Capital		629,746		620,034		607,235		594,550		580,706		1.57		8.44
Risk-Weighted Assets		4,844,639		4,864,871		4,888,558		4,821,975		4,851,903		(0.42)		(0.15)
The Bank Ratios
Common Equity Tier 1 Capital to RWA		11.75 %		11.49 %		11.18 %		11.09 %		10.75 %		26 bp		100 bp
Tier 1 Capital to RWA		11.75		11.49		11.18		11.09		10.75		26		100
Total Capital to RWA		13.00		12.75		12.42		12.33		11.97		25		103
Tier 1 Capital to AA (Leverage)		9.30		9.41		9.20		8.84		8.58		(11)		72

 

Shore Bancshares, Inc. Consolidated Balance Sheets
												December 31, 2025		December 31, 2025
												compared to		compared to
($ in thousands, except per share data)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2025		December 31, 2024
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
ASSETS
Cash and due from banks		$                 50,164		$                 62,289		$                 54,512		$                 46,886		$                 44,008		(19.5) %		14.0 %
Interest-bearing deposits with other banks		305,402		354,224		130,472		342,120		415,843		(13.8)		(26.6)
Cash and cash equivalents		355,566		416,513		184,984		389,006		459,851		(14.6)		(22.7)
Investment securities:
Available for sale, at fair value		220,358		181,720		187,679		179,148		149,212		21.3		47.7
Held to maturity, net of allowance for credit losses		414,827		433,440		459,246		469,572		481,077		(4.3)		(13.8)
Equity securities, at fair value		6,186		6,113		6,010		5,945		5,814		1.2		6.4
Restricted securities, at cost		17,989		20,364		20,412		20,411		20,253		(11.7)		(11.2)
Loans held for sale, at fair value		32,540		21,500		34,319		15,717		19,606		51.3		66.0
Loans held for investment		4,900,302		4,882,969		4,827,628		4,777,489		4,771,988		0.4		2.7
Less: allowance for credit losses		(58,836)		(59,554)		(58,483)		(58,042)		(57,910)		(1.2)		1.6
Loans, net		4,841,466		4,823,415		4,769,145		4,719,447		4,714,078		0.4		2.7
Premises and equipment, net		80,168		80,812		81,426		81,692		81,806		(0.8)		(2.0)
Goodwill		63,266		63,266		63,266		63,266		63,266		—		—
Other intangible assets, net		29,722		31,722		33,761		36,033		38,311		(6.3)		(22.4)
Right-of-use assets		10,523		10,896		11,052		11,709		11,385		(3.4)		(7.6)
Cash surrender value on life insurance		105,839		105,055		105,860		105,040		104,421		0.7		1.4
Accrued interest receivable		18,551		20,408		19,821		20,555		19,570		(9.1)		(5.2)
Deferred income taxes		29,825		30,328		30,972		31,428		31,857		(1.7)		(6.4)
Other assets		31,992		32,927		29,921		27,594		30,256		(2.8)		5.7
TOTAL ASSETS		$            6,258,818		$            6,278,479		$            6,037,874		$            6,176,563		$            6,230,763		(0.3)		0.5

 

Shore Bancshares, Inc. Consolidated Balance Sheets – Continued
												December 31, 2025		December 31, 2025
												compared to		compared to
($ in thousands, except per share data)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2025		December 31, 2024
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
LIABILITIES
Deposits:
Noninterest-bearing		$            1,587,953		$            1,594,212		$            1,575,120		$            1,565,017		$            1,562,815		(0.4) %		1.6 %
Interest-bearing checking		852,585		851,963		763,309		852,480		978,076		0.1		(12.8)
Money market and savings		1,814,928		1,790,001		1,691,438		1,800,529		1,805,884		1.4		0.5
Time deposits		1,267,487		1,281,132		1,273,285		1,242,319		1,181,561		(1.1)		7.3
Brokered deposits		10,911		10,857		10,806		—		—		0.5
Total deposits		5,533,864		5,528,165		5,313,958		5,460,345		5,528,336		0.1		0.1
FHLB advances		—		50,000		50,000		50,000		50,000		(100.0)		(100.0)
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS"), net		30,168		30,085		30,005		29,926		29,847		0.3		1.1
Subordinated debt, net		58,893		44,409		44,236		44,053		43,870		32.6		34.2
Total borrowings		89,061		124,494		124,241		123,979		123,717		(28.5)		(28.0)
Lease liabilities		11,027		11,395		11,541		12,183		11,844		(3.2)		(6.9)
Other liabilities		34,993		37,218		22,940		27,586		25,800		(6.0)		35.6
TOTAL LIABILITIES		5,668,945		5,701,272		5,472,680		5,624,093		5,689,697		(0.6)		(0.4)
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value per share		334		334		334		333		333		—		0.3
Additional paid-in capital		360,554		359,939		359,063		358,572		358,112		0.2		0.7
Retained earnings		233,578		221,693		211,400		199,898		190,166		5.4		22.8
Accumulated other comprehensive loss		(4,593)		(4,759)		(5,603)		(6,333)		(7,545)		(3.5)		(39.1)
TOTAL STOCKHOLDERS' EQUITY		589,873		577,207		565,194		552,470		541,066		2.2		9.0
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$            6,258,818		$            6,278,479		$            6,037,874		$            6,176,563		$            6,230,763		(0.3)		0.5
Shares of common stock issued and outstanding		33,413,503		33,421,672		33,374,265		33,374,265		33,332,177		0.0		0.2
Book value per common share		$                   17.65		$                   17.27		$                   16.94		$                   16.55		$                   16.23		2.2		8.7

 

Shore Bancshares, Inc. Consolidated Statements of Income By Quarter and Year
												Q4 2025 vs.		Q4 2025 vs.		Year Ended December 31,
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		Q3 2025		Q4 2024		2025		2024		% Change
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)						(unaudited)
INTEREST INCOME
Interest and fees on loans		$       72,331		$       70,930		$       69,695		$       67,647		$       67,428		2.0 %		7.3 %		$     280,604		$     269,631		4.1 %
Interest and dividends on taxable investment securities		5,010		5,036		5,331		5,001		4,833		(0.5)		3.7		20,378		19,444		4.8
Interest and dividends on tax-exempt investment securities		6		6		6		6		6		—		—		24		24		—
Interest on deposits with other banks		2,810		1,215		1,588		3,409		4,137		131.3		(32.1)		9,022		6,239		44.6
Total interest income		80,157		77,187		76,620		76,063		76,404		3.8		4.9		310,028		295,338		5.0
INTEREST EXPENSE
Interest on deposits		27,289		26,474		27,369		28,070		30,363		3.1		(10.1)		109,203		115,301		(5.3)
Interest on short-term borrowings		246		640		605		598		—		(61.6)		—		2,089		2,131		(2.0)
Interest on long-term borrowings		2,181		1,418		1,394		1,366		2,030		53.8		7.4		6,359		7,357		(13.6)
Total interest expense		29,716		28,532		29,368		30,034		32,393		4.1		(8.3)		117,651		124,789		(5.7)
NET INTEREST INCOME		50,441		48,655		47,252		46,029		44,011		3.7		14.6		192,377		170,549		12.8
Provision for credit losses		2,827		2,992		1,528		1,028		780		(5.5)		262.4		8,375		4,738		76.8
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		47,614		45,663		45,724		45,001		43,231		4.3		10.1		184,002		165,811		11.0
NONINTEREST INCOME
Service charges on deposit accounts		1,663		1,599		1,519		1,514		1,606		4.0		3.5		6,295		6,149		2.4
Trust and investment fee income		1,042		898		942		823		857		16.0		21.6		3,705		3,367		10.0
Mortgage banking revenue		1,181		1,278		2,379		1,240		2,026		(7.6)		(41.7)		6,078		5,987		1.5
Interchange credits		1,862		1,858		1,788		1,577		1,726		0.2		7.9		7,085		6,741		5.1
Other noninterest income		2,919		2,068		2,690		1,849		2,638		41.2		10.7		9,525		8,903		7.0
Total noninterest income		$         8,667		$         7,701		$         9,318		$         7,003		$         8,853		12.5		(2.1)		$       32,688		$       31,147		4.9

 

Shore Bancshares, Inc. Consolidated Statements of Income By Quarter and Year – Continued
												Q4 2025 vs.		Q4 2025 vs.		Year Ended December 31,
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		Q3 2025		Q4 2024		2025		2024		% Change
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)						(unaudited)
NONINTEREST EXPENSE
Salaries and employee benefits		$       18,582		$       18,642		$       17,742		$       16,440		$       17,209		(0.3) %		8.0 %		$       71,406		$       66,579		7.3 %
Occupancy expense		2,461		2,406		2,472		2,538		2,474		2.3		(0.5)		9,877		9,706		1.8
Furniture and equipment expense		792		892		796		853		760		(11.2)		4.2		3,334		3,441		(3.1)
Software and data processing		5,197		5,155		4,819		4,691		4,512		0.8		15.2		19,862		17,508		13.4
Amortization of other intangible assets		2,000		2,039		2,272		2,278		2,298		(1.9)		(13.0)		8,589		9,779		(12.2)
Legal and professional fees		1,237		989		1,225		1,613		1,521		25.1		(18.7)		5,064		5,836		(13.2)
FDIC insurance premium expense		845		794		1,023		1,091		1,013		6.4		(16.6)		3,753		4,413		(15.0)
Marketing and advertising		367		315		384		254		291		16.5		26.1		1,320		1,319		0.1
Fraud losses		227		45		83		105		98		404.4		131.6		460		4,998		(90.8)
Other noninterest expense		3,791		3,102		3,594		3,884		3,767		22.2		0.6		14,370		14,675		(2.1)
Total noninterest expense		35,499		34,379		34,410		33,747		33,943		3.3		4.6		138,035		138,254		(0.2)
Income before income taxes		20,782		18,985		20,632		18,257		18,141		9.5		14.6		78,655		58,704		34.0
Income tax expense		4,895		4,637		5,125		4,493		4,859		5.6		0.7		19,149		14,815		29.3
NET INCOME		$       15,887		$       14,348		$       15,507		$       13,764		$       13,282		10.7		19.6		$       59,506		$       43,889		35.6
Weighted average shares outstanding – basic		33,426,198		33,419,291		33,374,265		33,350,869		33,327,243		— %		0.3 %		33,392,817		33,267,328		0.4 %
Weighted average shares outstanding – diluted		33,446,103		33,435,862		33,388,013		33,375,318		33,363,612		0.0 %		0.2 %		33,407,155		33,285,156		0.4 %
Basic net income per common share		$           0.48		$           0.43		$           0.46		$           0.41		$           0.40		11.6 %		20.0 %		$           1.78		$           1.32		34.8 %
Diluted net income per common share		$           0.48		$           0.43		$           0.46		$           0.41		$           0.40		11.6 %		20.0 %		$           1.78		$           1.32		34.8 %
Dividends paid per common share		$           0.12		$           0.12		$           0.12		$           0.12		$           0.12		— %		— %		$           0.48		$           0.48		— %

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets (Unaudited)
		Three Months Ended
		December 31, 2025						September 30, 2025						December 31, 2024
($ 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		$       2,624,581		$            38,928		5.88 %		$       2,615,409		$            38,077		5.78 %		$       2,551,903		$            36,036		5.62 %
Residential real estate		1,442,055		19,548		5.42		1,407,076		19,711		5.60		1,358,066		18,142		5.34
Construction		343,796		5,740		6.62		347,574		5,848		6.68		336,094		5,304		6.28
Commercial		219,874		4,337		7.83		219,002		3,380		6.12		229,676		3,792		6.57
Consumer		274,715		3,726		5.38		289,729		3,877		5.31		313,686		4,080		5.17
Credit cards		4,598		142		12.25		5,213		118		8.98		6,820		154		8.98
Total loans		4,909,619		72,421		5.85		4,884,003		71,011		5.77		4,796,245		67,508		5.60
Investment securities
Taxable		652,990		5,010		3.07		663,884		5,036		3.03		654,955		4,833		2.95
Tax-exempt(1)		649		8		4.93		651		8		4.92		655		8		4.89
Interest-bearing deposits		280,558		2,810		3.97		110,443		1,215		4.36		346,599		4,137		4.75
Total earning assets		5,843,816		80,249		5.45		5,658,981		77,270		5.42		5,798,454		76,486		5.25
Cash and due from banks		51,611						49,405						43,444
Other assets		371,205						370,952						380,321
Allowance for credit losses		(59,879)						(58,764)						(58,722)
Total assets		$       6,206,753						$       6,020,574						$       6,163,497

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets (Unaudited) – Continued
		Three Months Ended
		December 31, 2025						September 30, 2025						December 31, 2024
($ in thousands)		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Interest-bearing liabilities
Interest-bearing checking		$          768,769		$              5,386		2.78 %		$          689,906		$              5,157		2.97 %		$          901,764		$              7,898		3.48 %
Money market and savings deposits		1,784,972		9,373		2.08		1,714,161		9,277		2.15		1,733,934		10,331		2.37
Time deposits		1,277,732		12,425		3.86		1,277,403		11,935		3.71		1,232,480		12,134		3.92
Brokered deposits		10,942		105		3.81		10,891		105		3.82		—		—		—
Interest-bearing deposits(4)		3,842,415		27,289		2.82		3,692,361		26,474		2.84		3,868,178		30,363		3.12
FHLB advances		20,108		246		4.85		52,391		640		4.85		50,000		618		4.92
Subordinated debt and guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS")(4)		104,752		2,181		8.26		74,363		1,418		7.57		73,578		1,412		7.63
Total interest-bearing liabilities		3,967,275		29,716		2.97		3,819,115		28,532		2.96		3,991,756		32,393		3.23
Noninterest-bearing deposits		1,609,667						1,587,891						1,593,405
Accrued expenses and other liabilities		45,602						42,321						40,152
Stockholders' equity		584,209						571,247						538,184
Total liabilities and stockholders' equity		$       6,206,753						$       6,020,574						$       6,163,497
Net interest spread						2.48 %						2.46 %						2.02 %
Net interest margin						3.43						3.42						3.03
Net interest margin excluding accretion(3)						3.24						3.22						2.85
Cost of funds						2.11						2.09						2.31
Cost of deposits						1.99						1.99						2.21
Cost of debt						7.71						6.44						6.54

____________________________________
(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 $4.1 million, $3.3 million and $3.2 million of accretion interest on loans for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(4)	Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were $1.2 million, $280 thousand and $412 thousand of amortization of deposit discounts and $171 thousand, $232 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets (Unaudited) – Continued
		Year Ended December 31,
		2025						2024
($ in thousands)		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Earning assets
Loans(1), (2), (3)
Commercial real estate		$          2,588,913		$              150,171		5.80 %		$          2,528,961		$              144,155		5.70 %
Residential real estate		1,394,073		76,708		5.50		1,318,500		72,636		5.51
Construction		349,097		22,809		6.53		322,978		19,917		6.17
Commercial		223,949		15,081		6.73		220,699		15,625		7.08
Consumer		291,789		15,697		5.38		324,633		16,923		5.21
Credit cards		5,648		467		8.27		7,444		694		9.32
Total loans		4,853,469		280,933		5.79		4,723,215		269,950		5.72
Investment securities
Taxable		665,940		20,378		3.06		667,622		19,444		2.91
Tax-exempt(1)		651		30		4.61		657		30		4.57
Interest-bearing deposits		211,859		9,022		4.26		129,410		6,239		4.82
Total earning assets		5,731,919		310,363		5.41		5,520,904		295,663		5.36
Cash and due from banks		48,725						46,264
Other assets		372,846						387,852
Allowance for credit losses		(58,831)						(58,089)
Total assets		$          6,094,659						$          5,896,931

 

Shore Bancshares, Inc. Consolidated Average Balance Sheets (Unaudited) – Continued
		Year Ended December 31,
		2025						2024
($ in thousands)		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Interest-bearing liabilities
Interest-bearing checking		$              759,395		$                23,265		3.06 %		$              825,773		$                25,523		3.09 %
Money market and savings deposits		1,761,503		38,245		2.17		1,690,905		41,202		2.44
Time deposits		1,255,797		47,391		3.77		1,205,411		48,566		4.03
Brokered deposits		7,927		302		3.81		12,636		10		0.08
Interest-bearing deposits(4)		3,784,622		109,203		2.89		3,734,725		115,301		3.09
FHLB advances		43,068		2,089		4.85		70,298		3,720		5.29
Subordinated debt and Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS")(4)		81,828		6,359		7.77		72,907		5,768		7.91
Total interest-bearing liabilities		3,909,518		117,651		3.01		3,877,930		124,789		3.22
Noninterest-bearing deposits		1,577,271						1,454,087
Accrued expenses and other liabilities		42,291						39,172
Stockholders' equity		565,579						525,742
Total liabilities and stockholders' equity		$          6,094,659						$          5,896,931
Net interest spread						2.40 %						2.14 %
Net interest margin						3.36						3.10
Net interest margin excluding accretion(3)						3.15						2.83
Cost of funds						2.14						2.34
Cost of deposits						2.04						2.22
Cost of debt						6.76						6.63

____________________________________
(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 $15.4 million and $16.9 million of accretion interest on loans for the year ended December 31, 2025 and 2024, respectively.
(4)	Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were $2.2 million and $1.5 million of amortization of deposit discounts and $865 thousand and $926 thousand of amortization of borrowing fair value adjustments for the year ended December 31, 2025 and 2024, respectively.

 

Shore Bancshares, Inc. Reconciliation of GAAP and Non-GAAP Measures (Unaudited)
		Quarter to Date										Year to Date
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		12/31/2025		12/31/2024
The following reconciles return on average assets, average equity and return on average tangible common equity(1):
Net income		$       15,887		$        14,348		$        15,507		$        13,764		$        13,282		$       59,506		$        43,889
Annualized net income (A)		$       63,030		$        56,924		$        62,198		$        55,821		$        52,839		$       59,506		$        43,889
Net income		$       15,887		$        14,348		$        15,507		$        13,764		$        13,282		$       59,506		$        43,889
Add: amortization of other intangible assets, net of tax		1,529		1,541		1,708		1,717		1,683		6,498		7,311
Net income excluding amortization of other intangible assets – non-GAAP		17,416		15,889		17,215		15,481		14,965		66,004		51,200
Annualized net income excluding amortization of other intangible assets – non-GAAP (B)		$       69,096		$        63,038		$        69,049		$        62,784		$        59,535		$       66,004		$        51,200
Net income		$       15,887		$        14,348		$        15,507		$        13,764		$        13,282		$       59,506		$        43,889
Add: amortization of other intangible assets, net of tax		1,529		1,541		1,708		1,717		1,683		6,498		7,311
Add: credit card fraud losses, net of tax		—		—		—		—		—		—		3,484
Less: sale and fair value of held for sale assets, net of tax		—		—		—		—		(329)		—		(336)
Adjusted net income – non-GAAP		17,416		15,889		17,215		15,481		14,636		66,004		54,348
Annualized adjusted net income – non-GAAP (C)		$       69,096		$        63,038		$        69,049		$        62,784		$        58,226		$       66,004		$        54,348
Net income		$       15,887		$        14,348		$        15,507		$        13,764		$        13,282		$       59,506		$        43,889
Less: income tax expense		4,895		4,637		5,125		4,493		4,859		19,149		14,815
Less: provision for credit losses		2,827		2,992		1,528		1,028		780		8,375		4,738
Pre-tax pre-provision net income – non GAAP		$       23,609		$        21,977		$        22,160		$        19,285		$        18,921		$       87,030		$        63,442
Return on average assets – GAAP		1.02 %		0.95 %		1.03 %		0.91 %		0.86 %		0.98 %		0.74 %
Adjusted return on average assets – non-GAAP		1.11 %		1.05 %		1.15 %		1.02 %		0.94 %		1.08 %		0.92 %
Average assets		$  6,206,753		$   6,020,574		$   6,021,385		$   6,129,241		$   6,163,497		$  6,094,659		$   5,896,931
Average stockholders' equity (D)		$     584,209		$      571,247		$      558,952		$      547,443		$      538,184		$     565,579		$      525,742
Less: average goodwill and core deposit intangible		(94,059)		(96,074)		(98,241)		(100,514)		(102,794)		(97,201)		(106,409)
Average tangible common equity (E)		$     490,150		$      475,173		$      460,711		$      446,929		$      435,390		$     468,378		$      419,333
Return on average common equity – GAAP (A)/(D)		10.79 %		9.96 %		11.13 %		10.20 %		9.82 %		10.52 %		8.35 %
Return on average tangible common equity – non-GAAP (B)/(E)		14.10 %		13.27 %		14.99 %		14.05 %		13.67 %		14.09 %		12.21 %
Adjusted return on average tangible common equity – non-GAAP (C)/(E)		14.10 %		13.27 %		14.99 %		14.05 %		13.37 %		14.09 %		12.96 %

 

Shore Bancshares, Inc. Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
		Quarter to Date										Year to Date
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024		12/31/2025		12/31/2024
The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio(2):
Noninterest expense (F)		$       35,499		$        34,379		$        34,410		$        33,747		$        33,943		$     138,035		$      138,254
Less: amortization of other intangible assets		(2,000)		(2,039)		(2,272)		(2,278)		(2,298)		(8,589)		(9,779)
Less: credit card fraud losses		—		—		—		—		—		—		(4,660)
Adjusted noninterest expense (G)		$       33,499		$        32,340		$        32,138		$        31,469		$        31,645		$     129,446		$      123,815
Net interest income (H)		$       50,441		$        48,655		$        47,252		$        46,029		$        44,011		$     192,377		$      170,549
Add: taxable-equivalent adjustment		92		83		81		81		82		335		325
Taxable-equivalent net interest income (I)		$       50,533		$        48,738		$        47,333		$        46,110		$        44,093		$     192,712		$      170,874
Noninterest income (J)		$          8,667		$          7,701		$          9,318		$          7,003		$          8,853		$       32,688		$        31,147
Less: Sale and fair value of held for sale assets		—		—		—		—		(450)		—		(450)
Adjusted noninterest income (K)		$          8,667		$          7,701		$          9,318		$          7,003		$          8,403		$       32,688		$        30,697
Efficiency ratio – GAAP (F)/(H)+(J)		60.06 %		61.00 %		60.83 %		63.64 %		64.21 %		61.33 %		68.55 %
Adjusted efficiency ratio – non-GAAP (G)/(I)+(K)		56.59 %		57.30 %		56.73 %		59.25 %		60.28 %		57.43 %		61.43 %
Net operating expense to average assets – GAAP		1.72 %		1.76 %		1.67 %		1.77 %		1.62 %		1.73 %		1.82 %
Adjusted net operating expense to average assets – non-GAAP		1.59 %		1.62 %		1.52 %		1.62 %		1.50 %		1.59 %		1.58 %

 

Shore Bancshares, Inc. Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
($ in thousands, except per share data)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024
The following reconciles book value per common share and tangible book value per common share(1):
Stockholders' equity (L)		$              589,873		$              577,207		$              565,194		$              552,470		$              541,066
Less: goodwill and core deposit intangible		(92,988)		(94,988)		(97,027)		(99,299)		(101,577)
Tangible common equity (M)		$              496,885		$              482,219		$              468,167		$              453,171		$              439,489
Shares of common stock outstanding (N)		33,413,503		33,421,672		33,374,265		33,374,265		33,332,177
Book value per common share – GAAP (L)/(N)		$                  17.65		$                  17.27		$                  16.94		$                  16.55		$                  16.23
Tangible book value per common share – non-GAAP (M)/(N)		$                  14.87		$                  14.43		$                  14.03		$                  13.58		$                  13.19
The following reconciles equity to assets and tangible common equity to tangible assets(1):
Stockholders' equity (O)		$              589,873		$              577,207		$              565,194		$              552,470		$              541,066
Less: goodwill and core deposit intangible		(92,988)		(94,988)		(97,027)		(99,299)		(101,577)
Tangible common equity (P)		$              496,885		$              482,219		$              468,167		$              453,171		$              439,489
Assets (Q)		$          6,258,818		$          6,278,479		$          6,037,874		$          6,176,563		$          6,230,763
Less: goodwill and core deposit intangible		(92,988)		(94,988)		(97,027)		(99,299)		(101,577)
Tangible assets (R)		$          6,165,830		$          6,183,491		$          5,940,847		$          6,077,264		$          6,129,186
Period-end equity to assets – GAAP (O)/(Q)		9.42 %		9.19 %		9.36 %		8.94 %		8.68 %
Period-end tangible common equity to tangible assets – non-GAAP (P)/(R)		8.06 %		7.80 %		7.88 %		7.46 %		7.17 %

____________________________________
(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 non-GAAP efficiency ratio 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)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024
Common equity		$         589,873		$          577,207		$          565,194		$          552,470		$          541,066
Goodwill(1)		(61,123)		(61,176)		(61,238)		(61,300)		(61,362)
Core deposit intangible(2)		(22,566)		(24,041)		(25,573)		(27,280)		(28,991)
DTAs that arise from net operating loss and tax credit carryforwards		(48)		(40)		(39)		—		—
Accumulated other comprehensive loss		4,593		4,759		5,603		6,333		7,545
Common Equity Tier 1 Capital		510,729		496,709		483,947		470,223		458,258
TRUPS		30,168		30,085		30,005		29,926		29,847
Tier 1 Capital		540,897		526,794		513,952		500,149		488,105
Allowable reserve for credit losses and other Tier 2 adjustments		60,661		60,852		60,605		59,726		59,253
Subordinated debt		58,893		39,409		44,236		44,053		43,870
Total Capital		$         660,451		$          627,055		$          618,793		$          603,928		$          591,228
Risk-Weighted Assets ("RWA")		$      4,852,573		$       4,867,237		$       4,890,679		$       4,823,833		$       4,852,564
Average Assets ("AA")		6,129,306		5,942,911		5,943,124		6,050,310		6,083,760
Common Equity Tier 1 Capital to RWA		10.52 %		10.21 %		9.90 %		9.75 %		9.44 %
Tier 1 Capital to RWA		11.15		10.82		10.51		10.37		10.06
Total Capital to RWA		13.61		12.88		12.65		12.52		12.18
Tier 1 Capital to AA (Leverage)		8.82		8.86		8.65		8.27		8.02

 

Shore Bancshares, Inc. Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued
Regulatory Capital and Ratios for the Bank
($ in thousands)		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024
Common equity		$         648,279		$          639,670		$          627,838		$          617,071		$          604,261
Goodwill(1)		(61,123)		(61,176)		(61,238)		(61,300)		(61,362)
Core deposit intangible(2)		(22,566)		(24,041)		(25,573)		(27,280)		(28,991)
Accumulated other comprehensive loss		4,593		4,759		5,603		6,333		7,545
Common Equity Tier 1 Capital		569,183		559,212		546,630		534,824		521,453
Tier 1 Capital		569,183		559,212		546,630		534,824		521,453
Allowable reserve for credit losses and other Tier 2 adjustments		60,563		60,822		60,605		59,726		59,253
Total Capital		$         629,746		$          620,034		$          607,235		$          594,550		$          580,706
Risk-Weighted Assets ("RWA")		$      4,844,639		$       4,864,871		$       4,888,558		$       4,821,975		$       4,851,903
Average Assets ("AA")		6,122,775		5,939,890		5,940,411		6,050,130		6,077,540

___________________________________
(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)		December 31, 2025		% of Total Loans		September 30, 2025		% of Total Loans		June 30, 2025		% of Total Loans		March 31, 2025		% of Total Loans		December 31, 2024		% of Total Loans
Commercial real estate		$    2,643,996		53.95 %		$    2,642,601		54.12 %		$    2,603,974		53.95 %		$    2,544,107		53.25 %		$    2,557,806		53.60 %
Residential real estate		1,414,964		28.88		1,383,348		28.33		1,349,010		27.94		1,325,858		27.75		1,329,406		27.85
Construction		344,903		7.04		352,116		7.21		350,053		7.25		366,218		7.67		335,999		7.04
Commercial		226,006		4.61		221,598		4.54		224,092		4.64		234,499		4.91		237,932		4.99
Consumer		265,912		5.43		278,242		5.70		294,239		6.09		300,007		6.28		303,746		6.37
Credit cards		4,521		0.09		5,064		0.10		6,260		0.13		6,800		0.14		7,099		0.15
Total loans		4,900,302		100.00 %		4,882,969		100.00 %		4,827,628		100.00 %		4,777,489		100.00 %		4,771,988		100.00 %
Less: allowance for credit losses		(58,836)				(59,554)				(58,483)				(58,042)				(57,910)
Total loans, net		$    4,841,466				$    4,823,415				$    4,769,145				$    4,719,447				$    4,714,078

 

Shore Bancshares, Inc. Classified Assets and Nonperforming Assets (Unaudited) Classified assets and nonperforming assets are summarized as follows:
($ in thousands)		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Classified loans
Substandard		$                  57,366		$                   48,470		$                   19,930		$                   19,434		$                   24,679
Total classified loans		57,366		48,470		19,930		19,434		24,679
Special mention loans		73,401		70,997		65,564		33,456		33,519
Total classified and special mention loans		$                130,767		$                 119,467		$                   85,494		$                   52,890		$                   58,198
Classified loans		$                  57,366		$                   48,470		$                   19,930		$                   19,434		$                   24,679
Other real estate owned		113		120		179		179		179
Repossessed assets		2,879		3,432		2,457		2,429		3,315
Total classified assets		$                  60,358		$                   52,022		$                   22,566		$                   22,042		$                   28,173
Classified assets to total assets		0.96 %		0.83 %		0.37 %		0.36 %		0.45 %
Nonaccrual loans		$                  39,960		$                   24,378		$                   16,782		$                   15,402		$                   21,008
90+ days delinquent accruing		255		153		215		894		294
Other real estate owned ("OREO")		113		120		179		179		179
Repossessed property		2,879		3,432		2,457		2,429		3,315
Total nonperforming assets		$                  43,207		$                   28,083		$                   19,633		$                   18,904		$                   24,796
Accruing borrowers experiencing financial difficulty loans ("BEFD")		5,311		6,704		6,709		1,356		1,662
Total nonperforming assets and BEFDs modifications		$                  48,518		$                   34,787		$                   26,342		$                   20,260		$                   26,458
Nonperforming assets to total assets		0.69 %		0.45 %		0.33 %		0.31 %		0.40 %
Total assets		$            6,258,818		$             6,278,479		$             6,037,874		$             6,176,563		$             6,230,763

 

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SOURCE Shore Bancshares, Inc.

FAQ

What were Shore Bancshares (SHBI) Q4 2025 earnings per share and net income?

Q4 2025 net income was $15.9 million, or $0.48 per diluted share. According to the company, this compares to $14.3 million ($0.43) in Q3 2025 and $13.3 million ($0.40) in Q4 2024.

How did Shore Bancshares (SHBI) perform for full-year 2025 versus 2024?

Full-year 2025 net income was $59.5 million compared to $43.9 million in 2024. According to the company, gains were driven by higher net interest income and lower deposit costs, partially offset by higher loan loss provision.

What changes occurred in Shore Bancshares (SHBI) asset quality in Q4 2025?

Nonperforming assets rose to 0.69% of total assets and classified assets to 0.96% at 12/31/2025. According to the company, increases were primarily due to commercial real estate and consumer loans.

What were Shore Bancshares (SHBI) key profitability metrics in Q4 2025?

Q4 2025 reported ROAA 1.02% and NIM 3.43%. According to the company, net interest income increased to $50.4 million, supported by loan growth and higher yields on investments.

How strong was Shore Bancshares (SHBI) capital and liquidity at year-end 2025?

At 12/31/2025 total equity increased and tangible common equity ratio was 8.06%; available liquidity was $1.42 billion. According to the company, liquidity included $355.6 million cash and $1.07 billion secured borrowing capacity.