Shore Bancshares Inc. Files Quarterly Report (10-Q)

TL;DR

<b>Shore Bancshares Inc. has filed its Q1 2024 10-Q report detailing financial performance and operations.</b>

AI Summary

SHORE BANCSHARES INC (SHBI) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Shore Bancshares Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. The principal business address is 18 East Dover Street, Easton, MD 21601-3013. The company's IRS number is 521974638.

Why It Matters

For investors and stakeholders tracking SHORE BANCSHARES INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Shore Bancshares Inc., crucial for understanding the company's performance in the first quarter of 2024. The detailed financial information within the report allows stakeholders to assess the company's current financial health, operational efficiency, and potential risks and opportunities.

Risk Assessment

Risk Level: medium — SHORE BANCSHARES INC shows moderate risk based on this filing. The company operates in the banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its SIC code for National Commercial Banks.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance drivers and outlook.

Key Numbers

• 20240331 — CONFORMED PERIOD OF REPORT (Quarterly Report)
• 20240509 — FILED AS OF DATE (Filing Date)
• 2024-01-01 — Period Start Date (Q1 2024)
• 2024-03-31 — Period End Date (Q1 2024)

Key Players & Entities

• SHORE BANCSHARES INC (company) — FILER
• 0001035092 (company) — CENTRAL INDEX KEY
• 6021 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• MD (company) — STATE OF INCORPORATION
• 18 EAST DOVER STREET (company) — BUSINESS ADDRESS STREET 1
• EASTON (company) — BUSINESS ADDRESS CITY
• MD (company) — BUSINESS ADDRESS STATE
• 21601-3013 (company) — BUSINESS ADDRESS ZIP

FAQ

Industry Context

Shore Bancshares Inc. operates within the National Commercial Banks industry (SIC 6021).

Regulatory Implications

As a commercial bank, Shore Bancshares Inc. is subject to regulations from various financial authorities, though specific regulatory details are not provided in this header.

What Investors Should Do

1. Analyze the balance sheet for changes in assets and liabilities.
2. Review the income statement for revenue and expense trends.
3. Examine any disclosures related to loan portfolios and investment securities.

Year-Over-Year Comparison

This is the initial filing data extracted; comparison to previous filings requires more detailed data.

Filing Documents

• shbi-20240331.htm (10-Q) — 3466KB
• shbi-20240331xexx311xq.htm (EX-31.1) — 11KB
• shbi-20240331xexx312xq.htm (EX-31.2) — 11KB
• shbi-20240331xexx32xq.htm (EX-32) — 6KB
• shbi-20240331_g1.jpg (GRAPHIC) — 69KB
• 0001628280-24-022329.txt (&nbsp;) — 18892KB
• shbi-20240331.xsd (EX-101.SCH) — 78KB
• shbi-20240331_cal.xml (EX-101.CAL) — 161KB
• shbi-20240331_def.xml (EX-101.DEF) — 452KB
• shbi-20240331_lab.xml (EX-101.LAB) — 992KB
• shbi-20240331_pre.xml (EX-101.PRE) — 761KB
• shbi-20240331_htm.xml (XML) — 4575KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 3

– Financial Statements

Item 1 – Financial Statements 3 Consolidated Balance Sheets at March 31, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10

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

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 40

– Quantitative and Qualitative Disclosures about Market Risk

Item 3 – Quantitative and Qualitative Disclosures about Market Risk 61

– Controls and Procedures

Item 4 – Controls and Procedures 61

— OTHER INFORMATION

PART II — OTHER INFORMATION 63

– Legal Proceedings

Item 1 – Legal Proceedings 63

– Risk Factors

Item 1A – Risk Factors 63

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 63

– Defaults Upon Senior Securities

Item 3 – Defaults Upon Senior Securities 63

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 63

– Other Information

Item 5 – Other Information 63

– Exhibits

Item 6 – Exhibits 64

SIGNATURES

SIGNATURES 65 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. SHORE BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) March 31, 2024 December 31, 2023 ASSETS (Unaudited) Cash and due from banks $ 43,079 $ 63,172 Interest-bearing deposits with other banks 71,481 309,241 Cash and cash equivalents 114,560 372,413 Investment securities: Available-for-sale, at fair value (amortized cost of $ 190,583 (2024) and $ 120,832 (2023)) 179,496 110,521 Held to maturity, net of allowance for credit losses of $ 116 (2024) and $ 94 (2023) (fair value of $ 444,258 (2024) and $ 457,830 (2023)) 503,822 513,188 Equity securities, at fair value 5,681 5,703 Restricted securities, at cost 17,863 17,900 Loans held for sale, at fair value 13,767 8,782 Loans held for investment ($ 9,684 (2024) and $ 9,944 (2023), at fair value) 4,648,725 4,641,010 Less: allowance for credit losses ( 57,336 ) ( 57,351 ) Loans, net 4,591,389 4,583,659 Premises and equipment, net 83,084 82,386 Goodwill 63,266 63,266 Other intangible assets, net 45,515 48,090 Other real estate owned, net 179 179 Repossessed properties 1,845 — Mortgage servicing rights, at fair value 5,821 5,926 Right-of-use assets 12,153 12,487 Cash surrender value on life insurance 102,321 101,704 Accrued interest receivable 19,541 19,217 Deferred income taxes 38,978 40,707 Other assets 26,423 24,790 TOTAL ASSETS $ 5,825,704 $ 6,010,918 LIABILITIES Deposits: Noninterest-bearing $ 1,200,680 $ 1,258,037 Interest-bearing 3,983,599 4,128,083 Total deposits 5,184,279 5,386,120 Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS"), net 29,237 29,158 Subordinated debt, net 43,322 43,139 Total borrowings 72,559 72,297 Lease liabilities 12,552 12,857 Other liabilities 41,086 28,509 TOTAL LIABILITIES 5,310,476 5,499,783 STOCKHOLDERS' EQUITY Common stock, par value $ .01 per share; shares authorized - 50,000,000 ; shares issued and outstanding - 33,210,522 (2024) a

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements For the Three Months Ended March 31, 2024 and 2023 (Unaudited) Note 1 – Basis of Presentation The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America ("GAAP") and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at March 31, 2024, the consolidated results of income and comprehensive income for the three months ended March 31, 2024 and 2023, changes in stockholders' equity for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023, have been included. All such adjustments were of a normal recurring nature. The amounts as of December 31, 2023 were derived from the 2023 audited financial statements. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2023 ( the "2023 Annual Report").. For purposes of comparability, certain immaterial reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term "the Company" refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries, Shore United Bank, N.A. (the "Bank") and Mid-Maryland Title Company, Inc. (the "Title Company"). Recent Accounting Pronouncements ASU Update 2023-09 – In December 2023, the Financ

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View this 10-Q filing on SEC EDGAR