Shore Bancshares, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Shore Bancshares, Inc. has submitted its annual 10-K filing detailing financial performance and position for the fiscal year 2023.</b>

AI Summary

SHORE BANCSHARES INC (SHBI) filed a Annual Report (10-K) with the SEC on March 15, 2024. Shore Bancshares, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 18 East Dover Street, Easton, MD 21601-3013. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement elements such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income are detailed for these periods.

Why It Matters

For investors and stakeholders tracking SHORE BANCSHARES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Shore Bancshares' financial health and operational performance for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed financial data, including balance sheet components and segment information, allows stakeholders to understand the company's asset base, equity structure, and performance across different business areas like construction and residential portfolios.

Risk Assessment

Risk Level: medium — SHORE BANCSHARES INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies, but the absence of specific financial performance metrics (revenue, net income, etc.) in the provided snippet limits a deeper risk assessment.

Analyst Insight

Investors should review the full 10-K filing to analyze specific financial performance figures, management's discussion and analysis, and risk factors to make informed investment decisions.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-15 — Filed As Of Date (Date of filing)
• 2023-01-01 — Fiscal Year Start (Reporting period)
• 2022-12-31 — Prior Year End (Comparative financial data)

Key Players & Entities

• SHORE BANCSHARES INC (company) — Filer name
• 18 EAST DOVER STREET (location) — Business address
• EASTON (location) — City in business address
• MD (location) — State in business address
• 21601-3013 (location) — ZIP code in business address
• 4108221400 (phone) — Business phone number

FAQ

Industry Context

Shore Bancshares, Inc. operates within the national commercial banking sector. This filing is a standard annual report for a publicly traded financial institution.

Regulatory Implications

As a publicly traded company, Shore Bancshares, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-K for detailed financial statements, including revenue, net income, and balance sheet figures.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and outlook.
3. Examine the Risk Factors section for potential challenges and uncertainties facing Shore Bancshares.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-15: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial data snippet for the 2023 10-K filing; comparative data from the previous year's filing (2022) is referenced for balance sheet items.

Key Financial Figures

• $11.56 — l quarter based on the closing price of $11.56 per share: $ 148.9 million. The number
• $153.6 million — transaction was valued at approximately $153.6 million and expanded the Bank's footprint into
• $2.4 billion — the time of the acquisition, TCFC added $2.4 billion in assets, $454.5 million in investment
• $454.5 million — ion, TCFC added $2.4 billion in assets, $454.5 million in investments, $1.8 billion in loans,
• $1.8 billion — assets, $454.5 million in investments, $1.8 billion in loans, $2.1 billion in deposits, $15
• $2.1 billion — in investments, $1.8 billion in loans, $2.1 billion in deposits, $150.6 million in brokered
• $150.6 million — ion in loans, $2.1 billion in deposits, $150.6 million in brokered deposits, $69.0 million in
• $69.0 million — s, $150.6 million in brokered deposits, $69.0 million in Federal Home Loan Bank (the "FHLB")
• $32.0 million — ome Loan Bank (the "FHLB") advances and $32.0 million in subordinated debt and trust preferre
• $8.8 million — the merger consideration resulted in an $8.8 million bargain purchase gain. On October 31,
• $169.8 million — transaction was valued at approximately $169.8 million and expanded the Bank's footprint into
• $1.1 billion — e time of the acquisition, Severn added $1.1 billion in assets, $584.8 million in net loans
• $584.8 million — n, Severn added $1.1 billion in assets, $584.8 million in net loans held for investment, $955.
• $955.3 million — llion in net loans held for investment, $955.3 million in deposits and $28.3 million in subord
• $28.3 million — estment, $955.3 million in deposits and $28.3 million in subordinated debt. Lending Activiti

Filing Documents

• shbi-20231231.htm (10-K) — 4500KB
• shbi-20231231xexx41.htm (EX-4.1) — 28KB
• shbi-20231231xex231.htm (EX-23.1) — 3KB
• shbi-20231231xexx311xk.htm (EX-31.1) — 11KB
• shbi-20231231xexx312xk.htm (EX-31.2) — 11KB
• shbi-20231231xexx32xk.htm (EX-32.) — 6KB
• clawbackpolicy.htm (EX-97) — 16KB
• clawbackpolicy001.jpg (GRAPHIC) — 38KB
• clawbackpolicy002.jpg (GRAPHIC) — 235KB
• clawbackpolicy003.jpg (GRAPHIC) — 281KB
• clawbackpolicy004.jpg (GRAPHIC) — 267KB
• clawbackpolicy005.jpg (GRAPHIC) — 124KB
• img0a.jpg (GRAPHIC) — 5KB
• shbi-20231231_g1.jpg (GRAPHIC) — 69KB
• shbi-20231231_g2.jpg (GRAPHIC) — 149KB
• shbi-20231231_g3.jpg (GRAPHIC) — 5KB
• 0001628280-24-011336.txt (&nbsp;) — 25367KB
• shbi-20231231.xsd (EX-101.SCH) — 107KB
• shbi-20231231_cal.xml (EX-101.CAL) — 228KB
• shbi-20231231_def.xml (EX-101.DEF) — 660KB
• shbi-20231231_lab.xml (EX-101.LAB) — 1314KB
• shbi-20231231_pre.xml (EX-101.PRE) — 1070KB
• shbi-20231231_htm.xml (XML) — 5156KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 30 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 31 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 61 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 123 Item 9A.

Controls and Procedures

Controls and Procedures 123 Item 9B. Other Information 124 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 124 PART III Item 10. Directors, Executive Officers and Corporate Governance 125 Item 11.

Executive Compensation

Executive Compensation 125 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 125 Item 13. Certain Relationships and Related Transactions, and Director Independence 125 Item 14. Principal Accountant Fees and Services 125 PART IV Item 15. Exhibits and Financial Statement Schedules 126 Item 16. Form 10-K Summary 126 EXHIBIT LIST 127

SIGNATURES

SIGNATURES 129 Table of Contents Cautionary note regarding forward-looking statements This Annual Report on Form 10-K of Shore Bancshares, Inc. and subsidiaries (the "Company" or "Shore" and "we," "our" or "us" on a consolidated basis) contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, expected operating results and the assumptions upon which those statements are based. In some cases, you can identify these forward-looking statements by words like "may," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," or "continue" or the negative of those words and other comparable terminology, although not all forward-looking statements contain these words. 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 a number of known and unknown risks and uncertainties that are subject to change based on factors, which are in many instances, 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 Annual Report on Form 10-K and not place undue reliance on these forward-looking statements. The following factors, among others, could cause our financial performance to differ materially from that expressed in such forward-looking statements: general economic conditions, (including the interest rate

BUSINESS

BUSINESS General The Company was incorporated under the laws of Maryland on March 15, 1996 and is a financial holding company registered under the Bank Holding Company Act of 1956, as amended (the "BHC Act"). The Company is the largest independent financial holding company located on the Eastern Shore of Maryland. The Company conducts business primarily through two wholly -owned subsidiaries, Shore United Bank, N.A. (the "Bank") and Mid-Maryland Title Company, Inc. (the "Title Company"). The Bank provides consumer and commercial banking products and services and secondary mortgage lending, trust, wealth management and financial planning services. The Title Company engages in title work related to real estate transactions. The Company, Bank and Title Company are Affirmative Action/Equal Opportunity Employers. Banking Products and Services The Bank is a national banking association chartered under the laws of the United States with trust powers that can trace its origin to 1876. The Bank currently operates 42 full-service branches, 42 automatic teller machines (an "ATM"), 3 interactive teller machines, 5 loan production offices, and provides a full range of commercial and consumer banking products and services to individuals, businesses, and other organizations in Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, Charles County, St Mary's County, Calvert County and Worcester County in Maryland, Kent County and Sussex County in Delaware and Accomack County, Fredericksburg City, Stafford County and Spotsylvania County in Virginia. The Bank's deposits are insured up to applicable legal limits by the FDIC. The Bank is an independent community bank that serves businesses and individuals in their respective market areas. Services offered are essentially the same as those offered by larger regional institutions that compete with the Bank. Services provided to businesses include comm

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View this 10-K filing on SEC EDGAR