#USA #Easton #Shore Bancshares #SHBI #Shore United Bank

Shore Bancshares, Inc. Reports Q3 2025 Results

Introduction
On October 23, 2025, Shore Bancshares, Inc. (NASDAQ: SHBI), the parent company of Shore United Bank, announced its financial results for the third quarter of 2025. The report highlighted a net income of $14.3 million, which translates to $0.43 per diluted share, demonstrating resilience in the face of market fluctuations.

Financial Overview

The financial report provides several key insights:

• - The net income witnessed a slight decline from $15.5 million in Q2 2025 ($0.46 per diluted share) but is an improvement from $11.2 million (or $0.34 per diluted share) in Q3 2024.
• - The Return on Average Assets (ROAA) was reported at 0.95% for Q3 2025, slightly down from 1.03% in the previous quarter but higher than 0.77% recorded a year earlier.

Breakdown of Financial Performance

1. Earnings and Income
- Net interest income increased to $48.7 million, a $1.4 million rise from Q2 2025.
- Noninterest income fell by $1.6 million primarily owing to decreased mortgage banking activities and fewer incentives based on credit card transactions.

2. Loan Losses and Asset Quality
- The provision for loan losses saw a notable increase to $3 million in Q3 2025 from $1.5 million in the previous quarter, largely due to a significant marine loan write-off.
- Nonperforming assets slightly rose to 0.45% of total assets, up from 0.33% in Q2 2025.

3. Balance Sheet Strength
- Total assets reached $6.28 billion, reflecting a 0.8% growth from the previous quarter.
- The book value per share improved to $17.27 from $16.94 in Q2 2025, indicating solid performance despite challenges.

Management Commentary

James M. Burke, President and CEO of Shore Bancshares, expressed confidence in the company's operational stability:

“Even with a modest decline in net income attributed to extraordinary expenses and softer noninterest income, our growth in book value per share and expanding net interest margin are testament to our strategy in an evolving financial landscape.”

He emphasized the company’s commitment to strategic investments in technology to bolster operational efficiency going forward.

Looking Ahead

As Shore Bancshares positions itself within a fluctuating economy, stakeholders will be keenly observing their adaptive strategies in technology investments and professional services management. The company is poised to deliver value to its shareholders while maintaining robust asset quality amid current market conditions.

In conclusion, the Q3 results reveal the company’s resilience and ongoing commitment to sustainable growth, despite external market pressures. Investors and analysts alike will watch for future developments as Shore Bancshares continues to navigate its path forward in the financial sector.