#United States #Shore Bancshares #Shore United Bank #Easton, Maryland #Q2 2026

Shore Bancshares Reports Significant Growth in Q2 2026

On July 23, 2026, Shore Bancshares, Inc. (NASDAQ: SHBI), the parent company of Shore United Bank, N.A., announced its financial results for the second quarter of 2026. The report reveals a robust increase in the company’s net income, which reached $18.9 million, equating to $0.56 per diluted share. This represents a notable rise from the previous quarter's net income of $17.1 million ($0.51 per share) and also marks a significant year-over-year increase from $15.5 million ($0.46 per share) in the second quarter of 2025.

Financial Highlights

The growth in net income can be attributed to several key factors:

• - A decrease in interest expenses by $1.3 million.
• - An increase in noninterest income by $1.2 million.
• - A reduction in salaries and employee benefits by $1.2 million.

Despite facing challenges, including an $858,000 decline in interest on deposits with other banks and a higher provision for credit losses amounting to $811,000, the company's overall financial health remains strong. Notably, Shore Bancshares reported a Return on Average Assets (ROAA) of 1.24%, an increase from 1.12% in the first quarter of 2026 and 1.03% in Q2 of the previous year.

The Net Interest Margin (NIM) also displayed encouraging trends, rising by 6 basis points to 3.70% compared to the prior quarter, largely supported by an increase in net interest income, which totaled $52.9 million, up $364,000 from the first quarter of 2026. Without accounting for accretion, NIM rose from 3.35% to 3.45%.

Furthermore, the company’s assets totaled $6.15 billion at the end of June 2026, with nonperforming assets decreasing slightly to 1.09% of total assets, from 1.10% in March 2026.

Capital Management and Shareholder Returns

Reflecting a commitment to shareholder value, the company announced a $30 million share repurchase program and repurchased 40,093 shares, totaling $891,000. Additionally, the Board declared a dividend of $0.14 per share, marking a 16.7% increase from the previous quarter.

Total equity increased by $26.2 million or 4.4% since December 31, 2025, driven by strong earnings performance despite fluctuations in accumulated other comprehensive losses.