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Shore Bancshares, Inc. Reports 2026 Third Quarter Results

Higher net interest income and lower expenses accompanied an increase in nonperforming assets and partial loan charge-offs.

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Rhea-AI Summary

Shore Bancshares (NASDAQ: SHBI) reported third-quarter 2026 net income of $16.8 million, higher than a year earlier but lower sequentially. Diluted earnings per share were $0.50, versus $0.56 in second-quarter 2026 and $0.43 in third-quarter 2025. Net interest income increased $2.2 million sequentially to $55.1 million, while net interest margin rose 8 basis points to 3.78%. Noninterest expense decreased $405 thousand.

Credit quality weakened: nonperforming assets reached $81.8 million, or 1.27% of assets, versus 1.09% in June and 0.45% a year earlier. Three large nonaccrual loans totaling $48.2 million had $3.9 million in partial charge-offs and $3.1 million in specific reserves. Deposits increased $296.6 million sequentially to $5.70 billion. Book value per share rose to $18.59, and the company repurchased approximately $3.4 million of shares during the quarter.

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Positive

  • Moderate pointThird-quarter net income of $16.8 million exceeded $14.3 million a year earlier but fell from $18.9 million sequentially.
  • Moderate pointNet interest income increased $2.2 million sequentially to $55.1 million in third-quarter 2026.
  • Moderate pointNon-GAAP pre-tax, pre-provision income reached $27.5 million, versus $26.1 million sequentially.
  • Moderate pointEfficiency ratio improved to 56.15%, versus 57.76% sequentially and 61.00% a year earlier.
  • Moderate pointDeposits increased $296.6 million sequentially to $5.70 billion; growth since December 31, 2025 was $162.5 million.
  • Moderate pointStockholders’ equity increased $29.4 million, or 5.0%, from December 31, 2025.
18 minor points
  • Minor pointDiluted EPS of $0.50 exceeded $0.43 a year earlier but fell from $0.56 sequentially.
  • Minor pointNet interest margin rose 8 basis points sequentially to 3.78%; excluding accretion, it rose from 3.45% to 3.50%.
  • Minor pointLoan yields excluding accretion rose 4 basis points sequentially, while funding costs decreased 2 basis points.
  • Minor pointNoninterest expense decreased $405 thousand sequentially in third-quarter 2026.
  • Minor pointNine-month non-GAAP pre-tax, pre-provision income rose to $76.4 million, versus $63.4 million in 2025.
  • Minor pointReturn on average assets of 1.08% exceeded 0.95% a year earlier but fell from 1.24% sequentially.
  • Minor pointAdjusted return on average assets of 1.16% exceeded 1.05% a year earlier but fell from 1.34% sequentially.
  • Minor pointAdjusted efficiency ratio improved to 53.30%, versus 54.49% sequentially and 57.30% a year earlier.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Management expects expense management of professional services and technology investments to support continued operating-leverage improvements.
  • Minor pointCore deposits increased $81.9 million, or 1.9%, since December 31, 2025, excluding municipal and cannabis deposits.
  • Minor pointLoans increased $24.9 million from June 30 to September 30, 2026.
  • Minor pointAvailable liquidity totaled $2.23 billion at September 30, 2026.
  • Minor pointBook value per share rose to $18.59, versus $18.44 in June and $17.27 a year earlier.
  • Minor point148,006 shares repurchased for approximately $3.4 million returned capital during third-quarter 2026.
  • Minor pointEquity-to-assets ratio increased to 9.60% from 9.19% a year earlier.
  • Minor pointTangible equity-to-tangible assets rose to 8.36%, versus 8.06% at year-end and 7.80% a year earlier.
  • Minor pointSpecial mention loans decreased to $54.6 million, versus $73.0 million sequentially and $71.0 million a year earlier.
  • Minor pointNo office commercial real estate loan charge-offs occurred in the three and nine months ended September 30, 2026.

Negative

  • Moderate pointNonperforming assets rose to $81.8 million, or 1.27% of assets, versus 1.09% sequentially and 0.45% a year earlier.
  • Moderate pointThree large nonaccrual loans totaled $48.2 million, with $3.9 million partially charged off and $3.1 million specifically reserved. 6.3% of market cap
  • Minor pointClassified assets rose to 1.61% of assets, versus 1.41% sequentially and 0.83% a year earlier.
  • Minor pointSubstandard loans increased to $90.3 million, versus $84.3 million sequentially and $48.5 million a year earlier.
  • Minor pointA $19.2 million loan moved from special mention to nonperforming assets during third-quarter 2026.
6 minor points
  • Minor pointA $10.8 million Virginia office property was foreclosed upon and transferred to other real estate owned.
  • Minor pointHigher credit-loss provision affected quarterly net income, primarily relating to a partial multifamily relationship charge-off.
  • Minor pointNoninterest income decreased $1.2 million sequentially in third-quarter 2026.
  • Minor pointInterest expense increased $390 thousand sequentially in third-quarter 2026.
  • Minor pointUninsured deposits totaled $1.04 billion, or 18.3% of deposits, at September 30, 2026.
  • Minor point. Forward-looking: it has not happened yet and may not happen.Elevated interest rates may pressure certain borrowers’ debt-service capacity and liquidity, the company cautioned.

Key Figures

Net income: $16.8 million Diluted EPS: $0.50 per diluted common share PTPP: $27.5 million +5 more
Net income
$16.8 million
Q3 2026; compared with $18.9 million in Q2 2026 and $14.3 million in Q3 2025
Diluted EPS
$0.50 per diluted common share
Q3 2026; compared with $0.56 in Q2 2026 and $0.43 in Q3 2025
PTPP
$27.5 million
Q3 2026; compared with $26.1 million in Q2 2026
Net interest margin
3.78%
Q3 2026; increased 8 basis points from Q2 2026
Provision for credit losses
$5.3 million
Q3 2026; compared with $896 thousand in Q2 2026 and $3.0 million in Q3 2025
Nonperforming assets
1.27% of total assets
September 30, 2026; compared with 1.09% at June 30, 2026 and 0.45% at September 30, 2025
Quarterly dividend
$0.14 per share
Declared during Q3 2026
Shares repurchased
148,006 shares for approximately $3.4 million
Q3 2026

Historical Context

1 past event · Latest: Jul 23
1 event
  1. Jul 23

    Earnings report

    24h Move
    +3.1%

    Q2 2026 net income, net interest income, and net interest margin increased from the year-earlier quarter.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pre-tax pre-provision income, gaap, roaa, nim
4 terms
pre-tax pre-provision income financial
"Pre-tax Pre-provision Income ("PTPP"), a non-U.S. generally accepted accounting principles"
Pre-tax pre-provision income is a banking measure of how much a lender earns from its normal operations before subtracting taxes and the money set aside to cover bad loans. Think of it as a car’s engine power measured before adding safety equipment and fuel costs: it shows the underlying earning strength and how much cushion the bank has to absorb future losses or support dividends. Investors use it to compare core profitability across banks and to judge resilience during credit stress.
gaap financial
"a non-U.S. generally accepted accounting principles ("GAAP")"
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
View in glossary
roaa financial
"Return on Average Assets ("ROAA")"
Return on Average Assets (ROAA) measures how efficiently a company turns its assets into profit by dividing net profit over a period by the average total assets it held during that period. It matters to investors because it shows whether a business is getting a good return from what it owns—like judging a car’s fuel efficiency by miles per gallon—helping compare profitability across companies of different sizes.
nim financial
"Net Interest Margin ("NIM")"
NIM (net interest margin) measures the gap between the interest a bank earns on loans and other interest‑producing assets and the interest it pays to depositors and creditors, shown as a percentage of the bank’s earning assets. Think of it like a store’s markup: a wider NIM means the bank keeps more money from its core lending activity, boosting profit potential. Investors watch NIM because shifts reveal how profitable a bank’s lending is, and how sensitive that profit is to interest‑rate changes and shifts in the mix of loans versus other assets.

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EASTON, Md., Oct. 22, 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 third quarter of 2026 of $16.8 million, or $0.50 per diluted common share, compared to net income of $18.9 million, or $0.56 per diluted common share, for the second quarter of 2026, and net income of $14.3 million, or $0.43 per diluted common share, for the third quarter of 2025.

Shore Bancshares Logo

Third Quarter 2026 Highlights

  • Pre-tax Pre-provision Income ("PTPP"), a non-U.S. generally accepted accounting principles ("GAAP")(1) financial measure – PTPP for the third quarter of 2026 increased $1.5 million to $27.5 million, from $26.1 million in the second quarter of 2026. PTPP increased primarily due to an increase in interest income of $2.6 million and a decrease in noninterest expense of $405 thousand. The increase in net interest income was partially offset by a decrease in noninterest income of $1.2 million and an increase in interest expense of $390 thousand. PTPP for the nine months ended September 30, 2026 was $76.4 million compared to $63.4 million for the nine months ended September 30, 2025.
  • Return on Average Assets ("ROAA") – The Company reported ROAA of 1.08% for the third quarter of 2026, compared to 1.24% for the second quarter of 2026 and 0.95% for the third quarter of 2025. Adjusted ROAA – non-GAAP(1) was 1.16% for the third quarter of 2026, compared to 1.34% for the second quarter of 2026 and 1.05% for the third quarter of 2025.
  • Net Interest Margin ("NIM") – Net interest income for the third quarter of 2026 increased $2.2 million to $55.1 million compared to the second quarter of 2026. NIM increased 8 basis points ("bps") to 3.78% for the third quarter of 2026 compared to the second quarter of 2026. NIM excluding accretion(1) increased for the comparable periods from 3.45% to 3.50%. Excluding accretion interest, loan yields increased 4 bp and funding costs decreased 2 bps for the comparable periods. Net interest income increased due to elevated accretion income from loan payoffs, partially offset by a slightly higher interest expense driven by municipal deposits.
  • Capital Management – Book value per share increased to $18.59 at September 30, 2026 from $18.44 at June 30, 2026 and $17.27 at September 30, 2025. During the quarter ended September 30, 2026, the Company declared a dividend of $0.14 per share and repurchased 148,006 shares of its outstanding common stock for approximately $3.4 million.
  • Asset Quality – Nonperforming assets were 1.27% of total assets at September 30, 2026, an increase from 1.09% at June 30, 2026 and an increase from 0.45% at September 30, 2025. Classified assets were 1.61% of total assets at September 30, 2026, an increase when compared to 1.41% at June 30, 2026 and 0.83% at September 30, 2025. The allowance for credit losses ("ACL") was $59.6 million at both September 30, 2026 and September 30, 2025, and $58.7 million at June 30, 2026. The ACL as a percentage of loans increased to 1.21% at September 30, 2026 compared to 1.20% at June 30, 2026 and decreased compared to 1.22% at September 30, 2025.
  • Operating Leverage – The efficiency ratio for the third quarter of 2026 was 56.15%, compared to 57.76% in the second quarter of 2026 and 61.00% for the third quarter of 2025. The adjusted efficiency ratio – non-GAAP(1), which excludes amortization of intangibles, was 53.30% for the third quarter of 2026, compared to 54.49% for the second quarter of 2026 and 57.30% for the third quarter of 2025. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time.

"Our third quarter reflected very strong core earnings, driven by continued expansion in net interest margin, growth in net interest income and lower noninterest expense, which further improved operating leverage," stated James ("Jimmy") M. Burke, President and Chief Executive Officer of Shore Bancshares, Inc. "Pre-tax, pre-provision income increased 5.6% from the prior quarter, reflecting our disciplined approach to balance sheet management, the strength of our deposit franchise and our focus on operational execution.

Net income for the quarter was impacted by a higher provision for credit losses, primarily related to a partial charge-off on a multifamily relationship that we downgraded last year. As we pursued an exit from these credits, updated valuations reflected property-specific issues that reduced collateral values. Our approach is to address potential credit problems as early as possible, and our core performance gives us the flexibility to do so. Capital levels remained strong, book value per share increased and we continued to return capital to shareholders through our quarterly dividend and share repurchases. Going forward, we remain focused on prudent growth, continually managing expenses and creating long-term value for our shareholders."

Balance Sheet Review

Total assets were $6.45 billion at September 30, 2026, an increase of $302.9 million from June 30, 2026. The increase was primarily due to an increase in cash and cash equivalents of $197.4 million, an increase in available for sale securities of $93.5 million and an increase in loans of $24.9 million. Total assets increased $195.5 million, or 3.1%, when compared to $6.26 billion at December 31, 2025. The increase was primarily due to an increase in cash and cash equivalents of $99.5 million and an increase in our investment securities portfolio of $101.7 million. The increases in cash and cash equivalents during the quarter and year were primarily driven by the seasonality of municipal deposits.

CRE loans (excluding land and construction) were $2.58 billion at September 30, 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 $447.0 million, or 9.1% of total loans at September 30, 2026. The following table provides the stratification of the classes of CRE loans (excluding land and construction) at September 30, 2026.

September 30, 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

49.69 %

$               628

$          27,643

47.34 %

$            1,458

$          68,535

Office, govt. or govt. contractor

52.28

948

9,477

53.94

3,189

57,402

Office, other

48.94

485

85,395

49.06

1,289

198,524

Office, total

49.23

533

122,515

49.07

1,482

324,461

Retail

51.79

668

72,151

47.57

2,453

458,804

Multifamily (5+ units)

—

—

—

54.32

2,452

274,637

Hotel/motel

—

—

—

44.05

4,134

210,818

Industrial/warehouse

45.16

690

95,282

46.59

1,636

204,460

Commercial-improved

41.78

1,170

221,044

49.15

1,328

168,696

Marine/boat slips

28.26

747

16,430

35.66

1,446

7,232

Restaurant

48.10

992

53,584

48.99

1,004

41,164

Church

31.46

801

51,288

13.03

2,326

2,326

Land/lot loans

11.31

192

192

50.16

465

1,861

Other

38.60

1,337

105,626

32.19

541

148,902

Total CRE loans, gross

43.32

834

$        738,112

44.17

1,607

$     1,843,361

(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 $96.2 million, or 21.5% of the total office CRE loan portfolio, at September 30, 2026. The office CRE loan portfolio also included loans secured by buildings with government or government contractor tenants of $66.9 million, or 15.0% of the total office CRE loan portfolio at the same date. At September 30, 2026, the average loan debt service coverage ratio on the office CRE loan portfolio was 1.7x and the average LTV was 49.15%.

The 449 loans in the office CRE portfolio at September 30, 2026 had an average loan size of $1.0 million and a median loan size of $399 thousand. LTV estimates for the office CRE portfolio at September 30, 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%

216

$                   148,601

33.3 %

Greater than 50% and less than or equal to 60%

77

130,024

29.1

Greater than 60% and less than or equal to 70%

80

113,224

25.3

Greater than 70% and less than or equal to 80%

60

40,307

9.0

Greater than 80%

16

14,820

3.3

Total

449

$                   446,976

100.0 %

There were 14 office CRE loans with balances greater than $5.0 million, totaling $136.1 million at September 30, 2026 and $166.1 million at December 31, 2025. The decrease in this portfolio segment was the result of normal amortization and payoff of one loan. At September 30, 2026, 80.3% of the office CRE loan balance 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. Office CRE loan balances that were classified as special mention or substandard were $8.2 million at September 30, 2026. There were no charge-offs within the office CRE portfolio during the three and nine months ended September 30, 2026 and 2025. During the third quarter of 2026, the Company foreclosed on an office commercial real estate property located in Virginia with a carrying value of $10.8 million. The property had previously been reported as a nonperforming asset in prior periods and was transferred to other real estate owned ("OREO") during the quarter.

Nonperforming assets were $81.8 million and $67.2 million, or 1.27% and 1.09% of total assets, as of September 30, 2026 and June 30, 2026, respectively. Nonperforming assets included three large loans with an aggregate loan balance of $48.2 million. These nonaccrual loans primarily consist of multifamily real estate loans with collateral in Virginia and North Carolina. As of September 30, 2026, these loans had been partially charged-off by $3.9 million, reflecting updated, lower appraisals and carried specific reserves of $3.1 million. The decline in appraised values was driven by property-specific factors, including unanticipated capital investment requirements and financial stress among a tenant base disproportionately affected by inflation. Management believes these conditions are unique to the underlying properties and are not indicative of broader portfolio trends. When comparing September 30, 2026 to September 30, 2025, nonperforming assets increased $53.7 million, primarily due to an increase in nonaccrual loans of $43.8 million, and an increase in other real estate and repossessed marine and auto assets of $9.9 million. Substandard loans, which include nonaccrual loans and accruing loans 90 days or more past due, were $90.3 million at September 30, 2026 compared to $84.3 million at June 30, 2026 and $48.5 million at September 30, 2025.

Special mention loans decreased to $54.6 million at September 30, 2026 compared to $73.0 million at June 30, 2026 and compared to $71.0 million at September 30, 2025. As of September 30, 2026, there were three special mention loans with individual balances greater than $5.0 million, totaling $33.3 million. During the third quarter of 2026, the Company transferred a loan to nonperforming assets that was previously considered a special mention loan of $19.2 million. The remaining loans consist primarily of multifamily commercial real estate and other commercial real estate exposures.

The Bank's loan portfolio remains well positioned to benefit from higher interest rates through ongoing loan repricing. However, while interest rates remain elevated and the potential for additional rate increases persists, such conditions may place pressure on debt service capacity and liquidity for certain borrowers. Management continues to proactively engage with borrowers and, when appropriate may utilize prudent loan modifications to support repayment performance. In addition, the Bank routinely performs portfolio stress testing to evaluate the potential impact of varying interest rate and economic scenarios on borrower performance and overall credit quality. The Bank closely monitors portfolio performance and believes its disciplined underwriting standards, relationship-based lending approach, active credit oversight, and ongoing stress-testing practices provide a strong foundation for managing credit risk throughout changing interest rate environments.

Total deposits increased $296.6 million from June 30, 2026 to $5.70 billion at September 30, 2026 and increased $162.5 million when compared to December 31, 2025. The year-to-date increase in total deposits was primarily due to an increase in interest-bearing checking of $216.9 million and an increase in noninterest-bearing deposits of $29.3 million. These increases were partially offset by a decrease in money market and savings accounts of $56.9 million and a decrease in time deposits of $16.8 million. Core deposits, which exclude municipal and cannabis deposits, increased by $81.9 million, or 1.9%, during the same period.

Total funding, which includes customer deposits, Federal Home Loan Bank ("FHLB") advances and brokered deposits, was $5.70 billion at September 30, 2026, compared to $5.40 billion at June 30, 2026. The Company had no FHLB advances at September 30, 2026 and June 30, 2026. Brokered deposits were $803 thousand and $796 thousand at September 30, 2026 and June 30, 2026, respectively. Total reciprocal deposits were $1.59 billion and $1.33 billion at September 30, 2026 and June 30, 2026, respectively.

Uninsured deposits were $1.04 billion, or 18.3% of total deposits, at September 30, 2026. Uninsured deposits, excluding deposits secured with pledged collateral, were $877.1 million, or 15.4% of total deposits, at September 30, 2026. At September 30, 2026, available liquidity was $2.23 billion, including $912.7 million in secured borrowing capacity at the FHLB, $38.0 million in secured borrowing capacity through the FRB Discount Window, $444.7 million in unsecured lines of credit with other correspondent banks, $379.9 million in unpledged securities and $455.1 million in cash and cash equivalents.

Total stockholders' equity at September 30, 2026 increased $29.4 million, or 5.0%, when compared to December 31, 2025, primarily due to current year earnings, partially offset by cash dividends paid, share repurchase activity and an increase in accumulated other comprehensive losses. As of September 30, 2026 and 2025, the ratio of total equity to total assets was 9.60% and 9.19%, respectively. As of September 30, 2026, the ratio of total tangible equity to total tangible assets([2]) was 8.36%, compared to 8.06% and 7.80% as of December 31, 2025 and September 30, 2025, respectively. The Company's Tier 1 and Total Risk-Based Capital Ratios at September 30, 2026 were 12.06% and 14.53%, respectively.

Review of Quarterly Financial Results

Net interest income was $55.1 million for the third quarter of 2026, compared to $52.9 million for the second quarter of 2026 and $48.4 million for the third quarter of 2025. The increase in net interest income when compared to the second quarter of 2026 was primarily due to an increase in interest on loans of $2.2 million, an increase in interest on deposits with other banks of $251 thousand, partially offset by an increase in interest expense on deposits of $393 thousand. The increase in net interest income was $6.7 million when compared to the third quarter of 2025, and was primarily due to a decrease in interest expense on deposits of $3.1 million, an increase in interest on loans of $2.0 million and a decrease in interest expense on short-term borrowings of $640 thousand. These favorable changes were partially offset by an increase in interest expense on long-term borrowings of $166 thousand.

The Company's NIM increased to 3.78% for the third quarter of 2026 from 3.70% for the second quarter of 2026, primarily due to higher interest income on loans and investment securities coupled with higher accelerated accretion related to loan payoffs. NIM excluding accretion increased for the comparable periods from 3.45% to 3.50%. Excluding accretion interest income, loan yields increased 4 bp and funding costs decreased 2 bps for the comparable periods. The Company's NIM increased to 3.78% for the third quarter of 2026 from 3.41% for the third quarter of 2025. The Company's average interest-earning asset yield increased to 5.47% for the third quarter of 2026 compared to 5.41% for the third quarter of 2025, while the average cost of funds decreased 29 bps to 1.80% from 2.09% for the same periods.

The provision for credit losses was $5.3 million for the three months ended September 30, 2026. The comparable amounts were $896 thousand for the three months ended June 30, 2026 and $3.0 million for the three months ended September 30, 2025. The increase in the provision for credit losses for the third quarter of 2026 compared to the second quarter of 2026 was due to higher multifamily loan-related charge-offs and specific reserves partially offset by favorable credit outlook. The allowance for credit losses increased to 1.21% of total loans at September 30, 2026 from 1.20% at June 30, 2026, and decreased compared to September 30, 2025. Net charge-offs increased to $4.8 million for the third quarter of 2026 compared to $123 thousand for the second quarter of 2026 and $1.8 million for the third quarter of 2025. The increase was driven by a partial multifamily loan write-off in the third quarter 2026.

Total noninterest income for the third quarter of 2026 was $7.7 million, a decrease of $1.2 million from the second quarter of 2026. The decrease in noninterest income was primarily related to lower banking revenue and fees for other bank services. Total noninterest income decreased $263 thousand during the third quarter of 2026 when compared to the third quarter of 2025 due to lower mortgage-related activity.

Total noninterest expense of $35.3 million for the third quarter of 2026 decreased $405 thousand compared to $35.7 million for the second quarter of 2026, and increased $884 thousand compared to $34.4 million for the third quarter of 2025. The decrease from the second quarter of 2026 was primarily due to a decrease in legal and professional fees of $474 thousand and a decrease in amortization of intangible assets of $234 thousand, partially offset by an increase in software and processing costs of $466 thousand. The increase from the third quarter of 2025 was primarily due to an increase in software and data processing costs of $646 thousand and an increase in other noninterest expense of $500 thousand. These were partially offset by a decrease in amortization of other intangible assets of $298 thousand. 

The efficiency ratio for the third quarter of 2026 when compared to the second quarter of 2026 and the third quarter of 2025 was 56.15%, 57.76% and 61.00%, respectively. Adjusted efficiency ratios – non-GAAP([3]) for the same periods were 53.30%, 54.49% and 57.30%, respectively.

Review of Nine Month Financial Results

Net interest income for the nine months ended September 30, 2026 was $160.6 million, an increase of $19.1 million, or 13.5%, when compared to the nine months ended September 30, 2025. The increase in net interest income was primarily due to an increase in total interest income of $6.5 million, or 2.8%, which included an increase in interest on loans of $6.1 million, or 2.9%, and an increase in interest income on taxable investments of $668 thousand. These were partially offset by a decrease in interest on deposits with other banks of $303 thousand, or 4.9%. The increase in interest on loans was primarily due to the increase in yields of 9 bps. The decrease in total interest expense was primarily due to a decrease in interest on deposits of $11.4 million and lower interest on short-term borrowings of $1.8 million. These were partially offset by the increase in interest expense on long-term borrowings of $550 thousand. The decrease in short-term borrowings is due to lower FHLB borrowings and subordinated debt-related expenses that were classified as short-term borrowings in 2025.

The Company's NIM increased from 3.32% for the nine months ended September 30, 2025 to 3.71% for the nine months ended September 30, 2026. Margins were higher due to a $99.1 million increase in interest-earning asset balances and a 6 bp increase in interest-earning asset yields. These positive movements were coupled with a lower cost of interest-bearing deposits. The increase in the average balances of interest-bearing deposits of $31.7 million was offset by a 43 basis point decrease in the associated rates paid, as well as a $50.3 million decrease in the average balance of FHLB advances and a 103 basis point decrease in the associated rates paid. Net accretion income impacted net interest margin by 28 basis points and 22 basis points for the nine months ended September 30, 2026 and 2025, respectively, which resulted in NIM excluding accretion of 3.43% and 3.10% for the same periods.

The provision for credit losses for the nine months ended September 30, 2026 and 2025 was $6.2 million and $5.5 million, respectively. The increase in the provision for credit losses during 2026 was due to higher net charge-offs. Net charge-offs for the nine months ended September 30, 2026 were $5.8 million, compared to $3.0 million for the nine months ended September 30, 2025. The increase was driven by a partial multifamily loan write-off in the third quarter 2026.

Total noninterest income for the nine months ended September 30, 2026 decreased $729 thousand, or 3.0%, when compared to the same period in 2025. The decrease was primarily due to a $1.4 million decrease in other noninterest income and a $737 thousand decrease in mortgage banking revenue, partially offset by a $692 thousand increase in trust and investment fee income and a $398 thousand increase in interchange credits. The decrease in other noninterest income is primarily due to valuation adjustments on equity securities and supplemental employee retirement plans.

Total noninterest expense for the nine months ended September 30, 2026 increased $5.5 million, or 5.3%, when compared to the same period in 2025. Noninterest expense line items increased primarily due to higher salaries and employee benefit expenses of $3.8 million and a $1.6 million increase in software and data processing expense. These increases were partially offset by lower amortization of intangible assets of $893 thousand during the nine months ended September 30, 2026.

The efficiency ratio for the nine months ended September 30, 2026 was 58.58% compared to 61.78% for the nine months ended September 30, 2025. Adjusted efficiency ratios – non-GAAP([4]) for the same periods were 55.41% and 57.73%, respectively.

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," "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.










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

 

Shore Bancshares, Inc.

Financial Highlights By Quarter and Year (Unaudited)













Q3 2026 vs.

Q3 2026 vs.

Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2026

Q3 2025

2026

2025

2026 vs. 2025

PROFITABILITY FOR THE PERIOD



















Taxable-equivalent net interest income

$          55,218

$          53,005

$          52,644

$          50,294

$          48,501

4.2 %

13.8 %

$        160,867

$        141,723

13.5 %

Less: Taxable-equivalent adjustment

91

86

89

92

83

5.8

9.6

266

244

9.0

Net interest income

55,127

52,919

52,555

50,202

48,418

4.2

13.9

160,601

141,479

13.5

Provision for credit losses

5,268

896

85

2,827

2,992

487.9

76.1

6,249

5,548

12.6

Noninterest income

7,675

8,830

7,244

8,906

7,938

(13.1)

(3.3)

23,749

24,478

(3.0)

Noninterest expense

35,263

35,668

37,056

35,499

34,379

(1.1)

2.6

107,987

102,536

5.3

Income before income taxes

22,271

25,185

22,658

20,782

18,985

(11.6)

17.3

70,114

57,873

21.2

Income tax expense

5,500

6,320

5,570

4,895

4,637

(13.0)

18.6

17,390

14,254

22.0

NET INCOME

$          16,771

$          18,865

$          17,088

$          15,887

$          14,348

(11.1)

16.9

$          52,724

$          43,619

20.9





















Adjusted net income – non-GAAP(1)

$          18,082

$          20,344

$          18,581

$          17,416

$          15,889

(11.1) %

13.8 %

$          57,007

$          48,585

17.3 %

Pre-tax pre-provision income – non-GAAP(1)

27,539

26,081

22,743

23,609

21,977

5.6

25.3

76,363

63,421

20.4





















Return on average assets – GAAP

1.08 %

1.24 %

1.12 %

1.02 %

0.95 %

              (16) bp

                13 bp

1.15 %

0.96 %

                19 bp

Adjusted return on average assets – non-GAAP

1.16

1.34

1.22

1.11

1.05

(18)

11

1.24

1.07

17

Return on average common equity – GAAP

10.65

12.38

11.55

10.79

9.96

(173)

69

11.52

10.43

109

Return on average tangible common equity – non-GAAP(1)

13.37

15.66

14.83

14.10

13.27

(229)

10

14.60

14.09

51

Net interest spread

2.91

2.85

2.80

2.48

2.45

6

46

2.86

2.37

49

Net interest margin

3.78

3.70

3.64

3.43

3.41

8

37

3.71

3.32

39

Efficiency ratio – GAAP


56.15

57.76

61.97

60.06

61.00

(161)

(485)

58.58

61.78

(320)

Adjusted efficiency ratio – non-GAAP(1)

53.30

54.49

58.57

56.59

57.30

(119)

(400)

55.41

57.73

(232)

Noninterest income to average assets

0.49

0.58

0.48

0.57

0.52

(9)

(3)

0.52

0.54

(2)

Noninterest expense to average assets

2.26

2.35

2.43

2.27

2.27

(9)

(1)

2.35

2.26

9





















PER SHARE DATA



















Basic net income per common share

$              0.50

$              0.56

$              0.51

$              0.48

$              0.43

(10.7) %

16.3 %

$              1.58

$              1.31

20.6 %

Diluted net income per common share

0.50

0.56

0.51

0.48

0.43

(10.7)

16.3

1.58

1.31

20.6

Dividends paid per common share

0.14

0.14

0.12

0.12

0.12

—

16.7

0.40

0.36

11.1

Book value per common share at period end

18.59

18.44

18.02

17.65

17.27

0.8

7.6

18.59

17.27

7.6

Tangible book value per common share at period end
– non-GAAP(1)

15.97

15.77

15.30

14.87

14.43

1.3

10.7

15.97

14.43

10.7

Common share market value at period end

22.39

22.95

18.68

17.68

16.41

(2.4)

36.4

22.39

16.41

36.4

Common share intraday price:



















High

$            24.89

$            23.45

$            20.68

$            19.22

$            17.67

6.1 %

40.9 %

$            24.89

$            17.67

40.9 %

Low

21.91

17.91

17.25

14.93

14.96

22.3

46.5

17.25

11.47

50.4













(1)

See the Reconciliation of GAAP and Non-GAAP Measures tables.

 

Shore Bancshares, Inc.

Financial Highlights By Quarter And Year (Unaudited) – Continued













Q3 2026 vs.

Q3 2026 vs.

Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2026

Q3 2025

2026

2025

2026 vs. 2025

AVERAGE BALANCE SHEET DATA



















Loans

$    4,941,924

$    4,872,566

$    4,887,488

$    4,909,619

$    4,884,003

1.4 %

1.2 %

$     4,900,859

$     4,834,547

1.4 %

Investment securities

687,857

684,762

666,376

653,639

664,535

0.5

3.5

679,744

670,956

1.3

Earning assets

5,825,678

5,731,054

5,823,244

5,843,816

5,658,981

1.7

2.9

5,793,334

5,694,210

1.7

Assets

6,177,210

6,080,508

6,174,655

6,206,753

6,020,574

1.6

2.6

6,144,134

6,056,883

1.4

Deposits

5,416,072

5,332,544

5,438,914

5,452,082

5,280,252

1.6

2.6

5,395,759

5,331,498

1.2

FHLB advances

—

1,648

—

20,108

52,391

(100.0)

(100.0)

550

50,806

(98.9)

Subordinated debt & TRUPS

89,219

89,082

89,024

104,752

74,363

0.2

20.0

89,109

74,103

20.3

Stockholders' equity

624,644

611,320

600,212

584,209

571,247

2.2

9.3

612,148

559,301

9.4





















CREDIT QUALITY DATA





















Net charge-offs

$            4,849

$               123

$               847

$            3,619

$            1,825

3842.3 %

165.7 %

$            5,819

$            3,028

92.2 %





















Nonaccrual loans

$          68,214

$          64,818

$          64,958

$          39,960

$          24,378

5.2 %

179.8 %





Loans 90 days past due and still accruing

80

20

—

255

153

300.0

(47.7)





Other real estate owned and repossessed property

13,475

2,362

3,414

2,992

3,552

470.5

279.4





Total nonperforming assets

$          81,769

$          67,200

$          68,372

$          43,207

$          28,083

21.7

191.2





 

Shore Bancshares, Inc.

Financial Highlights By Quarter And Year (Unaudited) – Continued













Q3 2026 vs.


Q3 2026 vs.


Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2026

Q3 2025

2026

2025

2026 vs 2025

CAPITAL AND CREDIT QUALITY RATIOS



















Period-end equity to assets – GAAP

9.60 %

10.02 %

9.71 %

9.42 %

9.19 %

              (42) bp

                41 bp





Period-end tangible equity to tangible assets – non-
GAAP(1)

8.36

8.69

8.37

8.06

7.80

(33)

56


























Annualized net charge-offs to average loans

0.39 %

0.01 %

0.07 %

0.29 %

0.15 %

                38 bp

                24 bp

0.16 %

0.08 %

                  8 bp





















Allowance for credit losses as a percent of:



















Period-end loans

1.21 %

1.20 %

1.21 %

1.20 %

1.22 %

                  1 bp

                (1) bp





Period-end nonaccrual loans

87.30 %

90.62 %

90.03 %

147.24 %

244.29 %

           (332) bp

      (15,699) bp





Period-end nonperforming assets

72.83 %

87.41 %

85.53 %

136.17 %

212.06 %

        (1,458) bp

      (13,923) bp


























Nonaccrual loans as a percent of total loans

1.39 %

1.33 %

1.34 %

0.82 %

0.50 %

                  6 bp

                89 bp





Nonperforming assets as a percent of total loans, other real
estate owned and repossessed property

1.66 %

1.38 %

1.41 %

0.88 %

0.57 %

                28 bp

              109 bp





Nonaccrual loans as a percent of total assets

1.06 %

1.05 %

1.05 %

0.64 %

0.39 %

                  1 bp

                67 bp





Nonperforming assets as a percent of total assets

1.27 %

1.09 %

1.10 %

0.69 %

0.45 %

                18 bp

                82 bp


















(1)

See the Reconciliation of GAAP and Non-GAAP Measures tables.

 

Shore Bancshares, Inc.

Financial Highlights By Quarter (Unaudited) – Continued













Q3 2026 vs.

Q3 2026 vs.

($ in thousands)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2026

Q3 2025

Company Amounts













Common Equity Tier 1 Capital

$  551,179

$   541,577

$   525,849

$   510,729

$     496,709

1.77 %

10.97 %

Tier 1 Capital

581,585

571,904

556,096

540,897

526,794

1.69

10.40

Total Capital

700,776

691,720

674,811

660,451

627,055

1.31

11.76

Risk-Weighted Assets

4,822,726

4,882,618

4,794,374

4,852,573

4,867,237

(1.23)

(0.91)















Company Ratios













Common Equity Tier 1 Capital to Risk-Weighted Assets ("RWA")

11.43 %

11.09 %

10.97 %

10.52 %

10.21 %

             34 bp

           122 bp

Tier 1 Capital to RWA

12.06

11.71

11.60

11.15

10.82

35

124

Total Capital to RWA

14.53

14.17

14.08

13.61

12.88

36

165

Tier 1 Capital to AA (Leverage)

9.52

9.52

9.12

8.82

8.86

—

66















Bank Amounts













Common Equity Tier 1 Capital

$  609,420

$   600,541

$   583,733

$   569,183

$   559,212

1.48 %

8.98 %

Tier 1 Capital

609,420

600,541

583,733

569,183

559,212

1.48

8.98

Total Capital

669,663

661,531

643,627

629,746

620,034

1.23

8.00

Risk-Weighted Assets

4,818,352

4,879,247

4,791,223

4,844,639

4,864,871

(1.25)

(0.96)















Bank Ratios













Common Equity Tier 1 Capital to RWA

12.65 %

12.31 %

12.18 %

11.75 %

11.49 %

             34 bp

           116 bp

Tier 1 Capital to RWA

12.65

12.31

12.18

11.75

11.49

34

116

Total Capital to RWA

13.90

13.56

13.43

13.00

12.75

34

115

Tier 1 Capital to AA (Leverage)

9.99

10.00

9.58

9.30

9.41

(1)

58

 

Shore Bancshares, Inc.

Consolidated Balance Sheets













September 30,
2026

September 30,
2026












compared to

compared to

($ in thousands, except per share data)

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30,
2026

September 30,
2025

ASSETS

(unaudited)

(unaudited)

(unaudited)


(unaudited)



Cash and due from banks

$                 58,235

$                 53,335

$                 44,054

$                  50,164

$                 62,289

9.2 %

(6.5) %

Interest-bearing deposits with other banks


396,816

204,335

296,768

305,402

354,224

94.2

12.0

Cash and cash equivalents

455,051

257,670

340,822

355,566

416,513

76.6

9.3

Investment securities:













Available for sale, at fair value

380,838

287,369

264,026

220,358

181,720

32.5

109.6

Held to maturity, net of allowance for credit
losses

356,183

366,213

393,615

414,827

433,440

(2.7)

(17.8)

Equity securities, at fair value

6,031

6,218

6,195

6,186

6,113

(3.0)

(1.3)

Restricted securities, at cost

18,003

18,003

18,003

17,989

20,364

—

(11.6)

Loans held for sale, at fair value

14,865

30,827

24,034

32,540

21,500

(51.8)

(30.9)

Loans held for investment

4,902,662

4,877,749

4,848,030

4,900,302

4,882,969

0.5

0.4

Less: allowance for credit losses

(59,554)

(58,737)

(58,481)

(58,836)

(59,554)

1.4

—

Loans, net

4,843,108

4,819,012

4,789,549

4,841,466

4,823,415

0.5

0.4















Premises and equipment, net

79,048

79,580

80,137

80,168

80,812

(0.7)

(2.2)

Goodwill

63,266

63,266

63,266

63,266

63,266

—

—

Other intangible assets, net

24,026

25,767

27,742

29,722

31,722

(6.8)

(24.3)

Right-of-use assets

9,322

9,691

10,102

10,523

10,896

(3.8)

(14.4)

Cash surrender value on life insurance

107,162

107,724

106,684

105,839

105,055

(0.5)

2.0

Accrued interest receivable

20,891

20,021

20,676

18,551

20,408

4.3

2.4

Deferred income taxes

32,587

30,657

29,752

29,825

30,328

6.3

7.4

Other assets

43,979

29,413

31,460

31,992

32,927

49.5

33.6

TOTAL ASSETS

$             6,454,360

$             6,151,431

$             6,206,063

$             6,258,818

$             6,278,479

4.9

2.8

 

Shore Bancshares, Inc.

Consolidated Balance Sheets – Continued













September 30,
2026

September 30,
2026












compared to

compared to

($ in thousands, except per share data)

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

June 30,
2026

September 30,
2025

LIABILITIES

(unaudited)

(unaudited)

(unaudited)


(unaudited)



Deposits:













Noninterest-bearing

$             1,617,258

$             1,606,809

$             1,567,425

$             1,587,953

$             1,594,212

0.7 %

1.4 %

Interest-bearing checking

1,069,480

833,602

812,847

852,585

851,963

28.3

25.5

Money market and savings

1,758,063

1,710,570

1,795,619

1,814,928

1,790,001

2.8

(1.8)

Time deposits

1,250,723

1,247,973

1,274,766

1,267,487

1,281,132

0.2

(2.4)

Brokered deposits

803

796

10,963

10,911

10,857

0.9

(92.6)

Total deposits

5,696,327

5,399,750

5,461,620

5,533,864

5,528,165

5.5

3.0

FHLB advances

—

—

—

—

50,000

—

(100.0)

Guaranteed preferred beneficial interest in
junior subordinated debentures ("TRUPS"), net

30,406

30,327

30,247

30,168

30,085

0.3

1.1

Subordinated debt, net

58,893

58,825

58,782

58,893

44,409

0.1

32.6

Total borrowings

89,299

89,152

89,029

89,061

124,494

0.2

(28.3)

Lease liabilities

9,829

10,199

10,608

11,027

11,395

(3.6)

(13.7)

Other liabilities

39,606

36,255

42,092

34,993

37,218

9.2

6.4

TOTAL LIABILITIES

5,835,061

5,535,356

5,603,349

5,668,945

5,701,272

5.4

2.3

STOCKHOLDERS' EQUITY













Common stock, $0.01 par value per share

333

334

335

334

334

(0.3)

(0.3)

Additional paid-in capital

357,207

361,048

361,013

360,554

359,939

(1.1)

(0.8)

Retained earnings

272,851

260,782

246,636

233,578

221,693

4.6

23.1

Accumulated other comprehensive loss

(11,092)

(6,089)

(5,270)

(4,593)

(4,759)

82.2

133.1

TOTAL STOCKHOLDERS' EQUITY

619,299

616,075

602,714

589,873

577,207

0.5

7.3

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY

$             6,454,360

$             6,151,431

$             6,206,063

$             6,258,818

$             6,278,479

4.9

2.8















Shares of common stock issued and outstanding

33,305,321

33,416,336

33,451,063

33,413,503

33,421,672

(0.3) %

(0.3) %

Book value per common share at period end

$                   18.59

$                   18.44

$                   18.02

$                    17.65

$                   17.27

0.8

7.6

 

Shore Bancshares, Inc.

Consolidated Statements of Income By Quarter and Year (Unaudited)













Q3 2026 vs.

Q3 2026 vs.

Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2026

Q3 2025

2026

2025

% Change

INTEREST INCOME



















Interest on loans

$      72,655

$      70,456

$      70,814

$      72,092

$      70,693

3.1 %

2.8 %

$    213,925

$    207,816

2.9 %

Interest and dividends on taxable investment
securities

5,535

5,387

5,114

5,010

5,036

2.7

9.9

16,036

15,368

4.3

Interest and dividends on tax-exempt investment
securities

6

6

6

6

6

—

—

18

18

—

Interest on deposits with other banks

1,851

1,600

2,458

2,810

1,215

15.7

52.3

5,909

6,212

(4.9)

Total interest income

80,047

77,449

78,392

79,918

76,950

3.4

4.0

235,888

229,414

2.8





















INTEREST EXPENSE



















Interest on deposits

23,336

22,943

24,264

27,289

26,474

1.7

(11.9)

70,543

81,914

(13.9)

Interest on short-term borrowings

—

16

—

246

640

(100.0)

(100.0)

16

1,843

(99.1)

Interest on long-term borrowings

1,584

1,571

1,573

2,181

1,418

0.8

11.7

4,728

4,178

13.2

Total interest expense

24,920

24,530

25,837

29,716

28,532

1.6

(12.7)

75,287

87,935

(14.4)





















NET INTEREST INCOME

55,127

52,919

52,555

50,202

48,418

4.2

13.9

160,601

141,479

13.5

Provision for credit losses

5,268

896

85

2,827

2,992

487.9

76.1

6,249

5,548

12.6

NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES

49,859

52,023

52,470

47,375

45,426

(4.2)

9.8

154,352

135,931

13.6





















NONINTEREST INCOME



















Service charges on deposit accounts

1,731

1,651

1,596

1,663

1,599

4.8

8.3

4,978

4,632

7.5

Trust and investment fee income

1,115

1,103

1,137

1,042

898

1.1

24.2

3,355

2,663

26.0

Mortgage banking revenue

1,156

1,554

1,450

1,181

1,278

(25.6)

(9.5)

4,160

4,897

(15.1)

Interchange credits

1,963

1,960

1,698

1,862

1,858

0.2

5.7

5,621

5,223

7.6

Other noninterest income

1,710

2,562

1,363

3,158

2,305

(33.3)

(25.8)

5,635

7,063

(20.2)

Total noninterest income

$        7,675

$        8,830

$        7,244

$        8,906

$        7,938

(13.1)

(3.3)

$      23,749

$      24,478

(3.0)

 

Shore Bancshares, Inc.

Consolidated Statements of Income By Quarter and Year (Unaudited) – Continued












Q3 2026 vs.

Q3 2026 vs.

Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2026

Q3 2025

2026

2025

% Change

NONINTEREST EXPENSE



















Salaries and employee benefits

$      18,475

$      18,462

$      19,639

$      18,582

$      18,642

0.1 %

(0.9) %

$      56,576

$      52,824

7.1 %

Occupancy expense

2,366

2,495

2,567

2,461

2,406

(5.2)

(1.7)

7,428

7,416

0.2

Furniture and equipment expense

971

966

855

792

892

0.5

8.9

2,792

2,542

9.8

Software and data processing

5,801

5,335

5,140

5,197

5,155

8.7

12.5

16,276

14,665

11.0

Amortization of other intangible assets

1,741

1,975

1,980

2,000

2,039

(11.8)

(14.6)

5,696

6,589

(13.6)

Legal and professional fees

881

1,355

1,605

1,237

989

(35.0)

(10.9)

3,841

3,827

0.4

FDIC insurance premium expense

805

968

995

845

794

(16.8)

1.4

2,768

2,908

(4.8)

Marketing and advertising

376

275

311

367

315

36.7

19.4

962

953

0.9

Fraud losses

245

147

111

227

45

66.7

444.4

503

233

115.9

Other noninterest expense

3,602

3,690

3,853

3,791

3,102

(2.4)

16.1

11,145

10,579

5.4

Total noninterest expense

35,263

35,668

37,056

35,499

34,379

(1.1)

2.6

107,987

102,536

5.3





















Income before income taxes

22,271

25,185

22,658

20,782

18,985

(11.6)

17.3

70,114

57,873

21.2

Income tax expense

5,500

6,320

5,570

4,895

4,637

(13.0)

18.6

17,390

14,254

22.0

NET INCOME

$      16,771

$      18,865

$      17,088

$      15,887

$      14,348

(11.1)

16.9

$      52,724

$      43,619

20.9





















Weighted average shares outstanding – basic

33,382,278

33,451,484

33,428,444

33,426,198

33,419,291

(0.2) %

(0.1) %

33,420,566

33,381,568

0.1 %

Weighted average shares outstanding – diluted

33,417,440

33,478,698

33,447,767

33,446,103

33,435,862

(0.2) %

(0.1) %

33,444,164

33,392,298

0.2 %





















Basic net income per common share

$          0.50

$          0.56

$          0.51

$          0.48

$          0.43

(10.7) %

16.3 %

$          1.58

$          1.31

20.6 %

Diluted net income per common share

$          0.50

$          0.56

$          0.51

$          0.48

$          0.43

(10.7) %

16.3 %

$          1.58

$          1.31

20.6 %

Dividends paid per common share

$          0.14

$          0.14

$          0.12

$          0.12

$          0.12

— %

16.7 %

$          0.40

$          0.36

11.1 %

 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited)



Three Months Ended


September 30, 2026

June 30, 2026

September 30, 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

$       2,618,370

$           38,804

5.88 %

$       2,586,937

$           38,169

5.92 %

$       2,615,409

$           37,917

5.75 %

Residential real estate

1,515,040

21,674

5.72

1,484,165

20,276

5.46

1,407,076

19,671

5.59

Construction

341,366

5,548

6.45

338,695

5,454

6.46

347,574

5,848

6.68

Commercial

224,741

3,253

5.74

208,349

3,041

5.85

219,002

3,370

6.10

Consumer

239,114

3,372

5.59

250,295

3,491

5.59

289,729

3,858

5.28

Credit cards

3,293

93

11.17

4,125

110

10.69

5,213

110

8.36

Total loans

4,941,924

72,744

5.85

4,872,566

70,541

5.80

4,884,003

70,774

5.76



















Investment securities



















Taxable

687,213

5,535

3.22

684,116

5,387

3.15

663,884

5,036

3.03

Tax-exempt(1)

644

8

4.97

646

7

4.33

651

8

4.92

Interest-bearing deposits

195,897

1,851

3.75

173,726

1,600

3.69

110,443

1,215

4.36

Total earning assets

5,825,678

80,138

5.47

5,731,054

77,535

5.42

5,658,981

77,033

5.41

Cash and due from banks

48,015




43,885




49,405



Other assets

362,218




364,155




370,952



Allowance for credit losses

(58,701)




(58,586)




(58,764)



Total assets

$       6,177,210




$       6,080,508




$       6,020,574



 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited) – Continued

Three Months Ended


September 30, 2026

June 30, 2026

September 30, 2025

($ in thousands)

Average
Balance

Interest

Yield/Rate

Average
Balance

Interest

Yield/Rate


Average
Balance

Interest

Yield/Rate

Interest-bearing liabilities

















Interest-bearing checking

$          792,764

$             5,056

2.53 %

$          733,877

$             4,560

2.49 %

$          689,906

$             5,157

2.97 %

Money market and savings deposits


1,738,159

8,334

1.90

1,744,356

8,079

1.86

1,714,161

9,277

2.15

Time deposits

1,245,785

9,938

3.16

1,258,086

10,288

3.28

1,277,403

11,935

3.71

Brokered deposits

798

8

4.01

4,033

16

1.59

10,891

105

3.83

Interest-bearing deposits(4)

3,777,506

23,336

2.45

3,740,352

22,943

2.46

3,692,361

26,474

2.84

FHLB advances

—

—

—

1,648

16

3.88

52,391

640

4.85

Subordinated debt and guaranteed
preferred beneficial interest in junior
subordinated debentures ("TRUPS")(4)

89,219

1,584

7.04

89,082

1,571

7.07

74,363

1,418

7.57

Total interest-bearing liabilities

3,866,725

24,920

2.56

3,831,082

24,530

2.57

3,819,115

28,532

2.96

Noninterest-bearing deposits

1,638,566




1,592,192




1,587,891



Accrued expenses and other liabilities

47,275




45,914




42,321



Stockholders' equity

624,644




611,320




571,247



Total liabilities and stockholders'
equity

$       6,177,210




$       6,080,508




$       6,020,574






















Net interest spread




2.91 %




2.85 %




2.45 %

Net interest margin




3.78




3.70




3.41

Net interest margin excluding
accretion(3)




3.50




3.45




3.22

Cost of funds




1.80




1.81




2.09

Cost of deposits




1.71




1.73




1.99

Cost of debt




7.04




7.02




6.44













(1)

All amounts are reported on a taxable-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, $3.8 million and $3.3 million of accretion interest on loans for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

(4)

Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were zero, zero and $280 thousand of amortization of deposit discounts and $79 thousand, $79 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. All deposit discounts have been fully amortized as of December 31, 2025.

 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited) – Continued



Nine Months Ended September 30,


2026

2025

($ in thousands)

Average Balance

Interest

Yield/Rate

Average Balance

Interest

Yield/Rate

Earning assets











Loans(1), (2), (3)











Commercial real estate

$            2,602,270

$               116,002

5.96 %

$            2,576,893

$               110,983

5.76 %

Residential real estate

1,483,344

61,261

5.51

1,377,904

57,063

5.52

Construction

342,654

16,633

6.49

350,883

17,069

6.50

Commercial

218,223

9,590

5.88

225,322

10,719

6.36

Consumer

250,443

10,397

5.55

297,543

11,917

5.35

Credit cards

3,925

303

10.31

6,002

304

6.76

Total loans

4,900,859

214,186

5.84

4,834,547

208,055

5.75













Investment securities













Taxable

679,098

16,036

3.15

670,304

15,368

3.06

Tax-exempt(1)

646

23

4.80

652

23

4.75

Interest-bearing deposits

212,731

5,909

3.71

188,707

6,212

4.40

Total earning assets

5,793,334

236,154

5.45

5,694,210

229,658

5.39

Cash and due from banks

45,375




47,752



Other assets

364,101




373,398



Allowance for credit losses

(58,676)




(58,477)



Total assets

$            6,144,134




$            6,056,883



 

Shore Bancshares, Inc.

Consolidated Average Balance Sheets (Unaudited) – Continued



Nine Months Ended September 30,


2026

2025

($ in thousands)

Average Balance

Interest

Yield/Rate

Average Balance

Interest

Yield/Rate

Interest-bearing liabilities











Interest-bearing checking

$               769,162

$                14,456

2.51 %

$               756,235

$                17,879

3.16 %

Money market and savings deposits


1,764,592

25,109

1.90

1,753,594

28,872

2.20

Time deposits

1,257,918

30,850

3.28

1,248,405

34,966

3.74

Brokered deposits

5,215

128

3.28

6,911

197

3.81

Interest-bearing deposits(4)

3,796,887

70,543

2.48

3,765,145

81,914

2.91

FHLB advances

550

16

3.82

50,806

1,843

4.85

Subordinated debt and TRUPS(4)

89,109

4,728

7.09

74,103

4,178

7.54

Total interest-bearing liabilities

3,886,546

75,287

2.59

3,890,054

87,935

3.02

Noninterest-bearing deposits

1,598,872




1,566,353



Accrued expenses and other liabilities

46,568




41,175



Stockholders' equity

612,148




559,301



Total liabilities and stockholders' equity

$            6,144,134




$            6,056,883
















Net interest spread




2.86 %




2.37 %

Net interest margin




3.71




3.32

Net interest margin excluding accretion(3)




3.43




3.10

Cost of funds




1.84




2.15

Cost of deposits




1.75




2.05

Cost of debt




7.07




6.44













(1)

All amounts are reported on a taxable-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 $12.2 million and $11.3 million of accretion interest on loans for the nine months ended September 30, 2026 and 2025, respectively.

(4)

Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were zero and $1.0 million of amortization of deposit discounts and $238 thousand and $695 thousand of amortization of borrowing fair value adjustments for the nine months ended September 30, 2026 and 2025, respectively. All deposit discounts have been fully amortized as of December 31, 2025.

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited)





Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

2026

2025

The following reconciles return on average assets, average equity and return on average tangible common equity(1):

Net income

$       16,771

$        18,865

$        17,088

$        15,887

$        14,348

$       52,724

$        43,619

Annualized net income (A)

$       66,537

$        75,667

$        69,301

$        63,030

$        56,924

$       70,492

$        58,318















Net income

$       16,771

$        18,865

$        17,088

$        15,887

$        14,348

$       52,724

$        43,619

Add: amortization of other intangible assets, net of tax

1,311

1,479

1,493

1,529

1,541

4,283

4,966

Net income excluding amortization of other intangible assets
– non-GAAP

18,082

20,344

18,581

17,416

15,889

57,007

48,585

Annualized net income excluding amortization of other
intangible assets – non-GAAP (B)

$       71,738

$        81,600

$        75,356

$        69,096

$        63,038

$       76,218

$        64,958















Net income

$       16,771

$        18,865

$        17,088

$        15,887

$        14,348

$       52,724

$        43,619

Add: amortization of other intangible assets, net of tax

1,311

1,479

1,493

1,529

1,541

4,283

4,966

Adjusted net income – non-GAAP

18,082

20,344

18,581

17,416

15,889

57,007

48,585

Annualized adjusted net income – non-GAAP (C)

$       71,738

$        81,600

$        75,356

$        69,096

$        63,038

$       76,218

$        64,958















Net income

$       16,771

$        18,865

$        17,088

$        15,887

$        14,348

$       52,724

$        43,619

Less: income tax expense

5,500

6,320

5,570

4,895

4,637

17,390

14,254

Less: provision for credit losses

5,268

896

85

2,827

2,992

6,249

5,548

Pre-tax pre-provision income – non-GAAP

$       27,539

$        26,081

$        22,743

$        23,609

$        21,977

$       76,363

$        63,421















Return on average assets – GAAP

1.08 %

1.24 %

1.12 %

1.02 %

0.95 %

1.15 %

0.96 %

Adjusted return on average assets – non-GAAP

1.16 %

1.34 %

1.22 %

1.11 %

1.05 %

1.24 %

1.07 %















Average assets

$  6,177,210

$  6,080,508

$  6,174,655

$  6,206,753

$  6,020,574

$  6,144,134

$  6,056,883















Average stockholders' equity (D)

$     624,644

$      611,320

$      600,212

$      584,209

$      571,247

$     612,148

$      559,301

Less: average goodwill and core deposit intangible

(88,226)

(90,088)

(92,086)

(94,059)

(96,074)

(90,119)

(98,260)

Average tangible common equity (E)

$     536,418

$      521,232

$      508,126

$      490,150

$      475,173

$     522,029

$      461,041















Return on average common equity – GAAP (A)/(D)

10.65 %

12.38 %

11.55 %

10.79 %

9.96 %

11.52 %

10.43 %

Return on average tangible common equity – non-GAAP
(B)/(E)

13.37 %

15.66 %

14.83 %

14.10 %

13.27 %

14.60 %

14.09 %

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued




Nine Months Ended September 30,

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

2026

2025

The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP(2), and reconciles net interest margin – GAAP and net interest margin – non-GAAP(3):

Noninterest expense (F)

$       35,263

$        35,668

$        37,056

$        35,499

$        34,379

$       107,987

$        102,536

Less: amortization of other intangible assets

(1,741)

(1,975)

(1,980)

(2,000)

(2,039)

(5,696)

(6,589)

Adjusted noninterest expense (G)

$       33,522

$        33,693

$        35,076

$        33,499

$        32,340

$       102,291

$          95,947















Net interest income (H)

$       55,127

$        52,919

$        52,555

$        50,202

$        48,418

$       160,601

$        141,479

Add: taxable-equivalent adjustment

91

86

89

92

83

266

244

Taxable-equivalent net interest income (I)

55,218

53,005

52,644

50,294

48,501

160,867

141,723

Less: accretion interest income

(4,008)

(3,688)

(4,263)

(2,752)

(2,811)

(11,958)

(9,542)

Adjusted net interest income (J)

$       51,210

$        49,317

$        48,381

$        47,542

$        45,690

$       148,909

$        132,181















Noninterest income (K)

$         7,675

$          8,830

$          7,244

$          8,906

$          7,938

$         23,749

$          24,478

Adjusted noninterest income (L)

$         7,675

$          8,830

$          7,244

$          8,906

$          7,938

$         23,749

$          24,478















Total earning assets (M)

$  5,825,678

$  5,731,054

$  5,823,244

$  5,843,816

$  5,658,981

$    5,793,334

$     5,694,210















Efficiency ratio – GAAP (F)/(H)+(K)

56.15 %

57.76 %

61.97 %

60.06 %

61.00 %

58.58 %

61.78 %

Adjusted efficiency ratio – non-GAAP (G)/(I)+(L)

53.30 %

54.49 %

58.57 %

56.59 %

57.30 %

55.41 %

57.73 %















Net interest margin – GAAP (I)/(M)

3.78 %

3.70 %

3.64 %

3.43 %

3.41 %

3.71 %

3.32 %

Net interest margin excluding accretion – non-GAAP
(J)/(M)(3)

3.50 %

3.45 %

3.35 %

3.24 %

3.22 %

3.43 %

3.10 %

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

 

($ in thousands, except per share data)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

The following reconciles book value per common share and tangible book value per common share(1):

Stockholders' equity (N)

$             619,299

$             616,075

$             602,714

$             589,873

$             577,207

Less: goodwill and core deposit intangible

(87,292)

(89,033)

(91,008)

(92,988)

(94,988)

Tangible common equity (O)

$             532,007

$             527,042

$             511,706

$             496,885

$             482,219











Shares of common stock outstanding (P)

33,305,321

33,416,336

33,451,063

33,413,503

33,421,672











Book value per common share – GAAP (N)/(P)

$                 18.59

$                 18.44

$                 18.02

$                 17.65

$                 17.27

Tangible book value per common share – non-GAAP (O)/(P)

$                 15.97

$                 15.77

$                 15.30

$                 14.87

$                 14.43











The following reconciles equity to assets and tangible common equity to tangible assets(1):

Stockholders' equity (Q)

$             619,299

$             616,075

$             602,714

$             589,873

$             577,207

Less: goodwill and core deposit intangible

(87,292)

(89,033)

(91,008)

(92,988)

(94,988)

Tangible common equity (R)

$             532,007

$             527,042

$             511,706

$             496,885

$             482,219











Assets (S)

$          6,454,360

$          6,151,431

$          6,206,063

$          6,258,818

$          6,278,479

Less: goodwill and core deposit intangible

(87,292)

(89,033)

(91,008)

(92,988)

(94,988)

Tangible assets (T)

$          6,367,068

$          6,062,398

$          6,115,055

$          6,165,830

$          6,183,491











Period-end equity to assets – GAAP (Q)/(S)

9.60 %

10.02 %

9.71 %

9.42 %

9.19 %

Period-end tangible common equity to tangible assets – non-GAAP (R)/(T)

8.36 %

8.69 %

8.37 %

8.06 %

7.80 %













(1)

Management believes that reporting the non-GAAP measures of tangible common equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.

(2)

Management believes that reporting adjusted efficiency ratio – non-GAAP more closely measures its effectiveness of controlling cash-based operating activities.

(3)

Management believes that reporting net interest margin excluding accretion more closely represents the ongoing earning power of the Company's core loan portfolio.

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

 

Regulatory Capital and Ratios for the Company









($ in thousands)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Common equity

$         619,299

$         616,075

$         602,714

$         589,873

$         577,207

Goodwill(1)

(60,938)

(61,000)

(61,061)

(61,123)

(61,176)

Core deposit intangible(2)

(18,274)

(19,587)

(21,074)

(22,566)

(24,041)

DTAs that arise from net operating loss and tax credit carryforwards

—

—

—

(48)

(40)

Accumulated other comprehensive loss

11,092

6,089

5,270

4,593

4,759

Common Equity Tier 1 Capital

551,179

541,577

525,849

510,729

496,709

TRUPS

30,406

30,327

30,247

30,168

30,085

Tier 1 Capital

581,585

571,904

556,096

540,897

526,794

Allowable reserve for credit losses and other Tier 2 adjustments

60,298

60,991

59,933

60,661

60,852

Subordinated debt

58,893

58,825

58,782

58,893

39,409

Total Capital

$         700,776

$         691,720

$         674,811

$         660,451

$         627,055











Risk-Weighted Assets ("RWA")

$      4,822,726

$      4,882,618

$      4,794,374

$      4,852,573

$      4,867,237

Average Assets ("AA")

6,107,556

6,007,717

6,098,196

6,129,306

5,942,911











Common Equity Tier 1 Capital to RWA

11.43 %

11.09 %

10.97 %

10.52 %

10.21 %

Tier 1 Capital to RWA

12.06

11.71

11.60

11.15

10.82

Total Capital to RWA

14.53

14.17

14.08

13.61

12.88

Tier 1 Capital to AA (Leverage)

9.52

9.52

9.12

8.82

8.86

 

Shore Bancshares, Inc.

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

 

Regulatory Capital and Ratios for the Bank









($ in thousands)

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Common equity

$         677,540

$         675,039

$         660,598

$         648,279

$         639,670

Goodwill(1)

(60,938)

(61,000)

(61,061)

(61,123)

(61,176)

Core deposit intangible(2)

(18,274)

(19,587)

(21,074)

(22,566)

(24,041)

Accumulated other comprehensive loss

11,092

6,089

5,270

4,593

4,759

Common Equity Tier 1 Capital

609,420

600,541

583,733

569,183

559,212

Tier 1 Capital

609,420

600,541

583,733

569,183

559,212

Allowable reserve for credit losses and other Tier 2 adjustments

60,243

60,990

59,894

60,563

60,822

Total Capital

$         669,663

$         661,531

$         643,627

$         629,746

$         620,034











Risk-Weighted Assets ("RWA")

$      4,818,352

$      4,879,247

$      4,791,223

$      4,844,639

$      4,864,871

Average Assets ("AA")

6,102,777

6,002,596

6,093,905

6,122,775

5,939,890













(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)

September 30,
2026

% of Total
Loans

June 30,
2026

% of Total
Loans

March 31,
2026

% of Total
Loans

December 31,
2025

% of Total
Loans

September 30,
2025

% of Total
Loans

Commercial real estate

$   2,581,473

52.66 %

$   2,603,014

53.37 %

$   2,599,815

53.62 %

$   2,643,996

53.95 %

$   2,642,601

54.12 %

Residential real estate

1,498,469

30.56

1,470,401

30.15

1,425,733

29.41

1,414,964

28.88

1,383,348

28.33

Construction

352,073

7.18

337,779

6.92

342,835

7.07

344,903

7.04

352,116

7.21

Commercial

236,276

4.82

220,712

4.52

220,833

4.56

226,006

4.61

221,598

4.54

Consumer

231,703

4.73

241,751

4.96

254,478

5.25

265,912

5.43

278,242

5.70

Credit cards

2,668

0.05

4,092

0.08

4,336

0.09

4,521

0.09

5,064

0.10

Total loans

4,902,662

100.00 %

4,877,749

100.00 %

4,848,030

100.00 %

4,900,302

100.00 %

4,882,969

100.00 %

Less: allowance for
credit losses

(59,554)


(58,737)


(58,481)


(58,836)


(59,554)

Total loans, net

$   4,843,108


$   4,819,012


$   4,789,549


$   4,841,466


$   4,823,415

 

Shore Bancshares, Inc.

Classified Assets and Nonperforming Assets (Unaudited)

 

Classified assets and nonperforming assets are summarized as follows:


($ in thousands)

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025











Substandard

$                 90,301

$                  84,285

$                  82,337

$                  57,366

$                  48,470

Total classified loans

90,301

84,285

82,337

57,366

48,470

Special mention loans

54,648

72,957

97,771

73,401

70,997

Total classified and special mention loans

$               144,949

$                157,242

$                180,108

$                130,767

$                119,467











Classified loans

$                 90,301

$                  84,285

$                  82,337

$                  57,366

$                  48,470

Other real estate owned

10,781

—

69

113

120

Repossessed assets

2,694

2,362

3,345

2,879

3,432

Total classified assets

$               103,776

$                  86,647

$                  85,751

$                  60,358

$                  52,022











Nonaccrual loans

$                 68,214

$                  64,818

$                  64,958

$                  39,960

$                  24,378

Loans 90 days or more past due and still accruing

80

20

—

255

153

Other real estate owned

10,781

—

69

113

120

Repossessed assets

2,694

2,362

3,345

2,879

3,432

Total nonperforming assets

$                 81,769

$                  67,200

$                  68,372

$                  43,207

$                  28,083

Accruing borrowers experiencing financial difficulty loans
("BEFD")

107

140

5,263

5,311

6,704

Total nonperforming assets and BEFD modifications

$                 81,876

$                  67,340

$                  73,635

$                  48,518

$                  34,787











Total assets

$            6,454,360

$            6,151,431

$            6,206,063

$            6,258,818

$            6,278,479











Classified assets to total assets

1.61 %

1.41 %

1.38 %

0.96 %

0.83 %

Nonperforming assets to total assets

1.27 %

1.09 %

1.10 %

0.69 %

0.45 %

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/shore-bancshares-inc-reports-2026-third-quarter-results-302917345.html

SOURCE Shore Bancshares, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Shore Bancshares’ third-quarter 2026 earnings?

Shore Bancshares earned $16.8 million, or $0.50 per diluted share, in third-quarter 2026. That compares with $18.9 million, or $0.56 per diluted share, in second-quarter 2026 and $14.3 million, or $0.43 per diluted share, in third-quarter 2025.

How much liquidity did Shore Bancshares have at September 30, 2026?

Available liquidity was $2.23 billion at September 30, 2026. It included $912.7 million in secured Federal Home Loan Bank borrowing capacity, $38.0 million through the Federal Reserve Discount Window, $444.7 million in unsecured correspondent-bank credit lines, $379.9 million in unpledged securities and $455.1 million in cash and cash equivalents.

How large was Shore Bancshares’ office commercial real estate exposure?

Office commercial real estate loans totaled $447.0 million, or 9.1% of total loans, at September 30, 2026. The portfolio had an average loan-to-value ratio of 49.15% and an average debt-service coverage ratio of 1.7 times. Office loans classified as special mention or substandard totaled $8.2 million.

What dividend did Shore Bancshares declare during third-quarter 2026?

Shore Bancshares declared a dividend of $0.14 per share during the quarter ended September 30, 2026.

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