Shares of Shore Bancshares (SHBI) have been strong performers lately, with the stock up 9.7% over the past month. The stock hit a new 52-week high of $19.64 in the previous session. Shore Bancshares has gained 9.8% since the start of the year compared to the 1.7% gain for the Zacks Finance sector and the 9.2% return for the Zacks Banks - Northeast industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each ...

Investors might want to bet on Shore Bancshares (SHBI) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power o ...

Core Viewpoint - Shore Bancshares reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and showing an increase from $0.44 per share a year ago, representing an earnings surprise of +10.42% [1][2] Financial Performance - The company achieved revenues of $59.11 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.61%, and up from $52.95 million year-over-year [2] - Over the last four quarters, Shore Bancshares has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Shore Bancshares shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $57.51 million, and for the current fiscal year, it is $1.91 on revenues of $240.6 million [7] - The outlook for the industry, particularly the Banks - Northeast sector, is favorable, currently ranking in the top 23% of over 250 Zacks industries [8]

18 E. Dover Street Easton, Maryland 21601 Phone (410) 763-7800 PRESS RELEASE Shore Bancshares, Inc. Reports 2025 Fourth Quarter and Annual Results Easton, Maryland (January 28, 2026) – Shore Bancshares, Inc. (NASDAQ – SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United Bank, N.A. (the "Bank") reported net income for the fourth quarter of 2025 of $15.9 million, or $0.48 per diluted common share, compared to net income of $14.3 million, or $0.43 per diluted common share, for the ...

Core Viewpoint - Shore Bancshares (SHBI) has experienced significant stock performance, with a 13.4% increase over the past month and reaching a 52-week high of $17.74 [1] Financial Performance - The company has consistently outperformed earnings expectations, beating the Zacks Consensus Estimate in the last four quarters. In the latest earnings report on October 23, 2025, EPS was reported at $0.48 against a consensus estimate of $0.45, although revenue fell short by 0.4% [2] - For the current fiscal year, Shore Bancshares is projected to achieve earnings of $1.78 per share on revenues of $223.93 million, reflecting an 8.54% increase in EPS and a 10.89% increase in revenues. For the next fiscal year, earnings are expected to rise to $1.91 per share on revenues of $240.6 million, indicating year-over-year changes of 7.3% and 7.44%, respectively [3] Valuation Metrics - The stock trades at 9.9 times the current fiscal year EPS estimates, slightly below the peer industry average of 10.3 times. On a trailing cash flow basis, it trades at 10.6 times compared to the peer group's average of 11.3 times, suggesting it is not among the top value stocks [7] - Shore Bancshares holds a Value Score of B, a Growth Score of C, and a Momentum Score of F, resulting in a combined VGM Score of B [6] Zacks Rank - The company currently has a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts, making it a suitable choice for investors looking for stocks with strong potential [8][9] Industry Comparison - The Banks - Northeast industry is performing well, with Shore Bancshares and its peer, SB Financial Group, Inc. (SBFG), both holding a Zacks Rank of 2 (Buy). SBFG has shown a 15.2% increase over the past month and is expected to post earnings of $2.45 per share on revenues of $66.2 million for the current fiscal year [10][11][12]

Financial Performance - The Company's net income for Q3 2025 was $14.3 million, or $0.43 per diluted common share, down from $15.5 million, or $0.46 per diluted common share in Q2 2025[176] - Net income for the nine months ended September 30, 2025, was $43.6 million, compared to $30.6 million for the same period in 2024, driven by increased net interest income[178] - The company reported net income of $14.3 million for Q3 2025, a 28.2% increase from $11.2 million in Q3 2024, resulting in diluted earnings per share of $0.43 compared to $0.34[185] - Net income for the three months ended September 30, 2025, was $14.3 million, compared to $11.2 million for the same period in 2024, reflecting an increase of 28.8%[293] Interest Income and Margin - Net interest income increased by $1.4 million to $48.7 million in Q3 2025, with a Net Interest Margin (NIM) of 3.42%, up from 3.35% in Q2 2025[178] - Total interest income increased by 3.3% to $77.2 million in Q3 2025 from $74.7 million in Q3 2024, driven by higher loan fees and interest on deposits[186] - Net interest income rose by 12.5% to $48.7 million in Q3 2025, up from $43.3 million in Q3 2024, primarily due to a decrease in interest expense on deposits and borrowings[186] - Tax-equivalent net interest income for Q3 2025 was $48.7 million, up 12.4% from $43.3 million in Q3 2024, reflecting effective interest rate management[187] - The company's net interest margin (NIM) improved to 3.42% in Q3 2025, up from 3.17% in Q3 2024[196] Asset Quality - Nonperforming assets to total assets increased to 0.45% at September 30, 2025, from 0.33% at June 30, 2025[178] - The allowance for credit losses (ACL) was $59.6 million at September 30, 2025, compared to $57.9 million at December 31, 2024[178] - Provision for credit losses increased significantly by 103.5% to $3.0 million in Q3 2025 from $1.5 million in Q3 2024[186] - The ratio of the allowance for credit losses (ACL) as a percentage of loans was 1.22% at September 30, 2025, compared to 1.21% at December 31, 2024[234] - Nonperforming assets totaled $28.08 million, or 0.45% of total assets, at September 30, 2025, up from $24.80 million, or 0.40% of total assets, at December 31, 2024[276] Efficiency and Management - The efficiency ratio for Q3 2025 was 61.00%, slightly up from 60.83% in Q2 2025, but improved from 67.49% in Q3 2024[178] - The efficiency ratio improved to 61.00% in Q3 2025 from 67.49% in Q3 2024, indicating better cost management[186] - Management anticipates ongoing improvements in operating leverage due to expense management and technology investments[178] - The efficiency ratio – non-GAAP improved to 57.30% for the three months ended September 30, 2025, compared to 62.10% for the same period in 2024[298] Capital and Liquidity - Book value per share rose to $17.27 at September 30, 2025, from $16.94 at June 30, 2025, and $16.00 at September 30, 2024[178] - The Bank was classified as "well-capitalized" under regulatory capital requirements as of September 30, 2025, with a Common Equity Tier 1 ratio of 8.86%[231] - Total stockholders' equity increased by $36.1 million, or 6.7%, to $577.2 million at September 30, 2025, primarily due to $43.6 million of net income[288] - The Company had approximately $1.37 billion of available liquidity, including $416.5 million in cash and cash equivalents and $294.4 million in unpledged securities[224] Loans and Deposits - Total loans increased by $110.981 million, or 2.3%, from $4.771 billion on December 31, 2024, to $4.883 billion on September 30, 2025[247] - The commercial real estate (CRE) loan portfolio grew to $2.643 billion, representing 54.1% of total loans, up from $2.558 billion, or 53.6%, at the end of 2024, marking a $84.795 million increase, or 3.3%[247] - Total deposits decreased by $171 thousand to $5,528.17 million at September 30, 2025, compared to $5,528.34 million at December 31, 2024[279] - Interest-bearing checking deposits fell by $126.11 million, while time deposits increased by $99.57 million during the same period[279] Market Sensitivity - Estimated changes in Net Interest Income (NII) for September 30, 2025, show a decrease of (3.8)% under a +400 basis points scenario[302] - The economic value of equity is projected to increase by 16.1% under a +400 basis points scenario for September 30, 2025[303] - Under a -200 basis points scenario, the economic value of equity is projected to decrease by (24.6)% for September 30, 2025[303] - The analysis indicates that certain assets and liabilities may react differently to changes in market interest rates[304]

Core Insights - Shore Bancshares (SHBI) is recognized as one of the top-ranked regional banks on Seeking Alpha's Quant Rating system, specifically ranked 12th [1] Company Overview - Shore Bancshares operates under the name Shore United Bank and is based in Maryland [1] Market Perspective - The financial markets are viewed as efficient, with most stocks reflecting their real current value, suggesting that opportunities for profit may arise from less-followed stocks or those that do not accurately reflect market opportunities [1]

Core Insights - Shore Bancshares reported revenue of $56.36 million for the quarter ended September 2025, reflecting an 11.5% increase year-over-year, although it was a slight miss of 0.4% compared to the Zacks Consensus Estimate of $56.58 million [1] - The earnings per share (EPS) for the quarter was $0.48, up from $0.40 in the same quarter last year, resulting in a positive surprise of 6.67% against the consensus estimate of $0.45 [1] Financial Performance Metrics - Net Interest Margin stood at 3.4%, matching the two-analyst average estimate of 3.4% [4] - Efficiency Ratio was reported at 61%, slightly better than the two-analyst average estimate of 61.1% [4] - Total Non-Interest Income was $7.7 million, below the two-analyst average estimate of $7.95 million [4] - Net Interest Income reached $48.66 million, exceeding the two-analyst average estimate of $48.22 million [4] Stock Performance - Over the past month, shares of Shore Bancshares have returned -6.2%, contrasting with the Zacks S&P 500 composite's increase of +0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Shore Bancshares (SHBI) reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and showing an increase from $0.40 per share a year ago, resulting in an earnings surprise of +6.67% [1] - The company posted revenues of $56.36 million for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 0.4%, but an increase from $50.55 million year-over-year [2] - The stock has underperformed the S&P 500, gaining about 0.4% since the beginning of the year compared to the S&P 500's gain of 13.9% [3] Earnings Performance - Over the last four quarters, Shore Bancshares has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $57.15 million, and for the current fiscal year, it is $1.78 on revenues of $223.11 million [7] Market Outlook - The company's earnings outlook and management's commentary on the earnings call will be crucial for understanding future stock movements [3][4] - The Zacks Industry Rank indicates that the Banks - Northeast sector is in the top 24% of over 250 Zacks industries, suggesting a favorable environment for performance [8] Estimate Revisions - The estimate revisions trend for Shore Bancshares was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Shore Bancshares reported net income of $14.3 million, or $0.43 per diluted common share, for Q3 2025, a decrease from $15.5 million, or $0.46 per share in Q2 2025[3]. - Net income for Q3 2025 was $14,348,000, a decrease of 7.5% from Q2 2025 but an increase of 28.2% compared to Q3 2024[47]. - Adjusted net income (non-GAAP) was $15,889 in Q3 2025, a decrease of 7.7% from Q2 2025 but an increase of 20.5% year-over-year[37]. - Adjusted net income for the nine months ended September 30, 2025, was $48,585,000, up from $39,769,000 in the same period of 2024, reflecting a growth of 22.1%[57]. Income and Expenses - Total noninterest income for Q3 2025 was $7.7 million, a decrease of $1.6 million from Q2 2025, primarily due to a decrease in mortgage banking revenue[24]. - Total noninterest expense for Q3 2025 was $34.4 million, unchanged from Q2 2025, but increased by $265 thousand compared to Q3 2024[25]. - Total noninterest income for the nine months ended September 30, 2025, increased by $1.7 million, or 7.7%, compared to the same period in 2024[30]. - Total noninterest income for Q3 2025 was $7,701,000, a decrease of 17.4% from Q2 2025 but an increase of 5.7% year-over-year[47]. Interest Income and Margin - Net interest income increased by $1.4 million to $48.7 million in Q3 2025, with net interest margin expanding by 7 basis points to 3.42%[6]. - Net interest income for Q3 2025 was $48.7 million, up from $47.3 million in Q2 2025 and $43.3 million in Q3 2024, primarily due to an increase in interest income on loans of $1.2 million[21]. - Taxable-equivalent net interest income for Q3 2025 was $48,738, an increase of 3.0% from Q2 2025 and 12.4% from Q3 2024[37]. - The Company's net interest margin (NIM) increased to 3.42% in Q3 2025 from 3.35% in Q2 2025, driven by higher core interest income[22]. Assets and Liabilities - Total assets reached $6.28 billion at September 30, 2025, reflecting a 0.8% increase from $6.23 billion at December 31, 2024, driven by a $111.0 million increase in the loan portfolio[8]. - Total deposits rose by $214.2 million to $5.53 billion at September 30, 2025, primarily due to seasonal growth in municipal deposits[17]. - Total stockholders' equity increased by $36.1 million, or 6.7%, compared to December 31, 2024, with total equity to total assets ratio at 9.19% as of September 30, 2025[20]. - Total assets increased to $6,278,479 thousand as of September 30, 2025, representing a 0.8% increase compared to June 30, 2025, and a 6.1% increase year-over-year[43]. Credit Quality - Nonperforming assets increased to $28.1 million, or 0.45% of total assets, at September 30, 2025, up from $19.6 million, or 0.33% at June 30, 2025[16]. - The allowance for credit losses was $59.6 million at September 30, 2025, representing 1.22% of loans[6]. - Provision for credit losses was $3.0 million for Q3 2025, up from $1.5 million in both Q2 2025 and Q3 2024, due to higher reserves related to loan portfolio growth[23]. - Nonperforming assets totaled $28,083 thousand in September 2025, up from $19,633 thousand in June 2025, reflecting a 43.1% increase[66]. Efficiency and Ratios - The efficiency ratio for Q3 2025 was 61.00%, compared to 60.83% in Q2 2025, indicating a slight decline in operational efficiency[6]. - The efficiency ratio improved to 61.00% in Q3 2025 from 67.49% in Q3 2024, indicating better cost management[58]. - Return on average assets (GAAP) was 0.95% in Q3 2025, down 8 basis points from Q2 2025 but up 26 basis points from Q3 2024[37]. - The annualized adjusted return on average tangible common equity was 13.27% in Q3 2025, compared to 12.37% in Q3 2024, showing enhanced profitability for shareholders[57]. Capital and Equity - The tangible common equity ratio improved to 7.80% at September 30, 2025, compared to 7.17% at December 31, 2024[9]. - Common Equity Tier 1 Capital reached $496,709 thousand, an increase of 2.64% from Q2 2025 and 11.27% from Q3 2024[42]. - Total Capital rose to $627,055 thousand, reflecting a 1.34% increase from Q2 2025 and 8.18% from Q3 2024[42]. - Total stockholders' equity rose to $577,207 thousand, reflecting a 6.7% increase from June 30, 2025, and an 8.2% increase year-over-year[44].