Shore Bancshares Reports Q3 2024 Results

TL;DR

SHBI Q3 2024: $6.4B assets, $51.1M net income YTD. Solid.

AI Summary

Shore Bancshares Inc. reported its Q3 2024 results, with total assets reaching $6.4 billion as of September 30, 2024. The company's net income for the nine months ended September 30, 2024, was $51.1 million. This filing covers the period ending September 30, 2024.

Why It Matters

This 10-Q filing provides investors with a detailed look at Shore Bancshares' financial performance and position as of the end of the third quarter of 2024.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags indicating high risk.

Key Numbers

• $6.4B — Total Assets (As of September 30, 2024)
• $51.1M — Net Income (YTD) (For the nine months ended September 30, 2024)

Key Players & Entities

• SHORE BANCSHARES INC (company) — Filer
• 6.4 billion (dollar_amount) — Total assets as of September 30, 2024
• 51.1 million (dollar_amount) — Net income for the nine months ended September 30, 2024
• 20240930 (date) — Period of report

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share SHBI Nasdaq Global

Filing Documents

• shbi-20240930.htm (10-Q) — 3923KB
• shbi-20240930xexx311xq.htm (EX-31.1) — 11KB
• shbi-20240930xexx312xq.htm (EX-31.2) — 11KB
• shbi-20240930xexx32xq.htm (EX-32) — 6KB
• shbi-20240930_g1.jpg (GRAPHIC) — 69KB
• 0001628280-24-046326.txt ( ) — 18807KB
• shbi-20240930.xsd (EX-101.SCH) — 71KB
• shbi-20240930_cal.xml (EX-101.CAL) — 160KB
• shbi-20240930_def.xml (EX-101.DEF) — 375KB
• shbi-20240930_lab.xml (EX-101.LAB) — 950KB
• shbi-20240930_pre.xml (EX-101.PRE) — 707KB
• shbi-20240930_htm.xml (XML) — 4420KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 3

– Financial Statements

Item 1 – Financial Statements 3 Consolidated Balance Sheets at September 30, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 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 39

– Quantitative and Qualitative Disclosures about Market Risk

Item 3 – Quantitative and Qualitative Disclosures about Market Risk 69

– Controls and Procedures

Item 4 – Controls and Procedures 69

— OTHER INFORMATION

PART II — OTHER INFORMATION 71

– Legal Proceedings

Item 1 – Legal Proceedings 71

– Risk Factors

Item 1A – Risk Factors 71

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 71

– Defaults Upon Senior Securities

Item 3 – Defaults Upon Senior Securities 71

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 71

– Other Information

Item 5 – Other Information 71

– Exhibits

Item 6 – Exhibits 72

SIGNATURES

SIGNATURES 73 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 per share data) September 30, 2024 December 31, 2023 ASSETS (Unaudited) Cash and due from banks $ 52,363 $ 63,172 Interest-bearing deposits with other banks 131,258 309,241 Cash and cash equivalents 183,621 372,413 Investment securities: Available-for-sale, at fair value (amortized cost of $ 140,941 (2024) and $ 120,832 (2023)) 133,339 110,521 Held to maturity, net of allowance for credit losses of $ 101 (2024) and $ 94 (2023) (fair value of $ 440,296 (2024) and $ 457,830 (2023)) 484,583 513,188 Equity securities, at fair value 5,950 5,703 Restricted securities, at cost 20,253 17,900 Loans held for sale, at fair value 26,877 8,782 Loans held for investment ($ 10,023 (2024) and $ 9,944 (2023), at fair value) 4,733,909 4,641,010 Less: allowance for credit losses ( 58,669 ) ( 57,351 ) Loans, net 4,675,240 4,583,659 Premises and equipment, net 81,663 82,386 Goodwill 63,266 63,266 Other intangible assets, net 40,609 48,090 Other real estate owned, net 179 179 Repossessed assets 306 — Assets held for sale 1,387 — Mortgage servicing rights, at fair value 5,309 5,926 Right-of-use assets 11,384 12,487 Cash surrender value on life insurance 103,729 101,704 Accrued interest receivable 19,992 19,217 Deferred income taxes 32,191 40,707 Other assets 27,826 24,790 TOTAL ASSETS $ 5,917,704 $ 6,010,918 LIABILITIES Deposits: Noninterest-bearing $ 1,571,393 $ 1,258,037 Interest-bearing 3,654,330 4,128,083 Total deposits 5,225,723 5,386,120 Advances from FHLB - long-term 50,000 — Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS"), net 29,768 29,530 Subordinated debt, net 43,688 43,139 Total borrowings 123,456 72,669 Lease liabilities 11,816 12,857 Other liabilities 23,438 28,137 TOTAL LIABILITIES 5,384,433 5,499,783 STOCKHOLDERS' EQUITY Common stock, par value $ 0.01 per share; shares authorized -

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements For the Three and Nine Months Ended September 30, 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 September 30, 2024, the consolidated results of income and comprehensive income for the three and nine months ended September 30, 2024 and 2023, changes in stockholders' equity for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 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 and nine months ended September 30, 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 Pronounc

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