Shore Bancshares, Inc. Announces Extension of Exchange Offer for its 6.25% Fixed-to-Floating Rate Subordinated Notes Due 2035 [Accessibility Statement] Skip NavigationEASTON, Md., Feb. 19, 2026 /PRNewswire/ -- Shore Bancshares, Inc. (the "Company") (NASDAQ: SHBI), the holding company for Shore United Bank, N.A. (the "Bank"), today announced that it had extended its offer (the "Exchange Offer") to exchange up to $60.0 million aggregate principal amount of its outstanding 6.25% Fixed-to-Floating Rate Subordin ...

Core Viewpoint - Shore Bancshares (SHBI) has shown strong stock performance, with a 9.7% increase over the past month and a new 52-week high of $19.64, outperforming the Zacks Finance sector and the Zacks Banks - Northeast industry [1] Financial Performance - Shore Bancshares has consistently beaten earnings estimates, reporting an EPS of $0.53 against a consensus estimate of $0.48 in its last earnings report [2] - For the current fiscal year, the company is expected to post earnings of $1.97 per share on revenues of $244.37 million, reflecting no change in EPS and an 8.58% increase in revenues [3] - For the next fiscal year, earnings are projected to rise to $2.22 per share on revenues of $262.45 million, indicating a year-over-year growth of 12.69% in EPS and 7.4% in revenues [3] Valuation Metrics - Shore Bancshares has a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a VGM Score of A [6] - The stock trades at 9.9X current fiscal year EPS estimates, slightly above the peer industry average of 9.8X, and at 11.7X trailing cash flow compared to the peer group's average of 12.3X [7] Zacks Rank - Shore Bancshares holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, indicating potential for further stock price appreciation [8] Industry Comparison - The Banks - Northeast industry is performing well, ranking in the top 22% of all industries, providing favorable conditions for both Shore Bancshares and its peer, Washington Trust Bancorp, Inc. (WASH) [11]

Core Viewpoint - Shore Bancshares (SHBI) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company-Specific Insights - The upgrade for Shore Bancshares reflects an improvement in the company's underlying business, suggesting that investor sentiment regarding this trend could drive the stock price higher [4]. - For the fiscal year ending December 2026, Shore Bancshares is expected to earn $1.95 per share, with a 1.8% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - The upgrade of Shore Bancshares to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

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]

Financial Performance - Net income for Q4 2025 was $15.9 million, or $0.48 per diluted share, up from $14.3 million in Q3 2025 and $13.3 million in Q4 2024[3]. - Full-year net income for 2025 increased to $59.5 million from $43.9 million in 2024, driven by higher net interest income and lower cost of deposits[6]. - Net income for Q4 2025 reached $15,887,000, an increase of 10.7% from Q3 2025's $14,348,000[58]. - Year-to-date net income for 2025 was $59,506,000, compared to $43,889,000 in 2024, reflecting a growth of 35.5%[58]. - Adjusted net income for Q4 2025, excluding amortization of intangible assets, was $17,416,000, up from $15,889,000 in Q3 2025[58]. Asset and Equity Growth - Total assets reached $6.26 billion at December 31, 2025, a 0.5% increase from $6.23 billion at the end of 2024, primarily due to loan portfolio growth[7]. - Total stockholders' equity increased by $48.8 million, or 9.0%, compared to December 31, 2024, with a total equity to total assets ratio of 9.42%[18]. - Total stockholders' equity increased to $589,873 thousand in Q4 2025 from $541,066 thousand in Q4 2024, representing a growth of 9.0% year-over-year[61]. - Book value per common share increased to $17.65 in Q4 2025, compared to $16.23 in Q4 2024, marking an increase of 8.7%[61]. Interest Income and Margin - Net interest income for Q4 2025 was $50.4 million, up from $48.7 million in Q3 2025 and $44.0 million in Q4 2024, marking a year-over-year increase of 14.5%[19]. - The Company's net interest margin (NIM) increased to 3.43% in Q4 2025 from 3.03% in Q4 2024, reflecting improved core interest income[20]. - For the full year 2025, net interest income was $192.4 million, a 12.8% increase from $170.6 million in 2024[25]. - The Company's NIM for the full year 2025 was 3.36%, up from 3.10% in 2024, driven by increased interest-earning asset balances[26]. Noninterest Income and Expenses - Total noninterest income for Q4 2025 was $8.7 million, an increase of $1.0 million from Q3 2025 but a decrease of $186 thousand from Q4 2024[22]. - Total noninterest expense for Q4 2025 was $35.5 million, an increase of $1.1 million from Q3 2025 and an increase of $1.6 million from Q4 2024[23]. - Noninterest income for Q4 2025 was $8,667 thousand, reflecting a 12.5% increase from Q3 2025 but a slight decrease of 2.1% from Q4 2024[37]. Credit Quality and Losses - Nonperforming assets were 0.69% of total assets as of December 31, 2025, up from 0.45% at September 30, 2025[14]. - The allowance for credit losses (ACL) was $58.8 million at December 31, 2025, with ACL as a percentage of loans decreasing to 1.20%[6]. - Net charge-offs for the year ended December 31, 2025, were $6.6 million, compared to $4.1 million in 2024, reflecting a year-over-year increase of 60.98%[27]. - The provision for credit losses was $2.8 million in Q4 2025, down from $3.0 million in Q3 2025 but up from $780 thousand in Q4 2024, indicating a year-over-year increase of 258.97%[21]. Efficiency and Ratios - The efficiency ratio improved to 60.06% in Q4 2025 from 61.00% in Q3 2025, indicating better operating leverage[6]. - The efficiency ratio for Q4 2025 improved to 60.06% from 64.21% in Q4 2024, indicating enhanced operational efficiency[24]. - Return on Average Assets (ROAA) for Q4 2025 was 1.02%, compared to 0.95% in Q3 2025 and 0.86% in Q4 2024[6]. - Return on average tangible common equity (non-GAAP) for Q4 2025 was 14.10%, compared to 13.27% in Q3 2025[58]. Loan and Deposit Trends - Total deposits increased by $5.7 million to $5.53 billion at December 31, 2025, with core deposits rising by 3.8%[15]. - Loans outstanding reached $4,909,619 in Q4 2025, a 0.5% increase from Q3 2025 and a 2.4% increase year-over-year[39]. - Total loans amounted to $4,900,302 thousand in Q4 2025, an increase from $4,771,988 thousand in Q4 2024, reflecting a growth of 2.7%[68].

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]