#United States #Easton #Net Income #Shore Bancshares #NASDAQ-SHBI

Shore Bancshares, Inc. Reports First Quarter Results for 2025

Easton, Maryland – On April 29, 2025, Shore Bancshares, Inc. (NASDAQ: SHBI), the parent company of Shore United Bank, reported net income of $13.8 million, or $0.41 per diluted common share, for the first quarter of 2025. This marks an increase from the previous quarter's net income of $13.3 million, or $0.40 per diluted share, and significantly up from $8.2 million, or $0.25 per share, in the first quarter of 2024.

Key Highlights from Q1 2025

• - Return on Average Assets: The Company achieved a return on average assets (ROAA) of 0.91%, a rise from 0.86% in Q4 2024 and from 0.57% in Q1 2024. The non-GAAP ROAA was even higher at 1.00%.
• - Net Interest Income: For Q1 2025, net interest income reached $46.0 million, up from $44.0 million in the previous quarter, with an increase in the net interest margin (NIM) to 3.24% from 3.03%.
• - Credit Quality: The asset quality remained stable, with nonperforming assets to total assets at 0.31%, a decrease from 0.40% in Q4 2024.

CEO James Burke commented, "Shore Bank had a strong start to 2025, driven by record net interest income and efficient expense management. Our focus on disciplined management is yielding positive results as we seek to improve our operating landscape further."

Financial Performance Breakdown

Growth in Net Income

The increase in net income by $482 thousand compared to the previous quarter was primarily driven by a boost in net interest income. However, non-interest income witnessed a decline due to lower mortgage banking activities and the absence of a one-time gain seen in the last quarter of 2024.

Asset Quality Stability

Shore Bancshares has maintained a solid asset quality, reported at 0.31% for nonperforming assets compared to the total assets, showing a healthy trend. The allowance for credit losses was slightly amended to $58.0 million, remaining stable in terms of its percentage to loans.

Operating Efficiency

The efficiency ratio improved to 63.64%, down from 64.21% in the prior quarter, showcasing effective management in operational costs.

Transition in Leadership

Mr. Burke expressed enthusiasm for the addition of Charlie Cullum as Chief Financial Officer, emphasizing his extensive experience and expected positive impact on the firm's financial direction.

In summary, Shore Bancshares, Inc. has embarked on 2025 with strong financial health indicators, showcasing substantial growth in key earnings metrics, enhanced asset quality, and effective expense management strategies.