Core Insights - Shore Bancshares reported revenue of $56.57 million for the quarter ended June 2025, reflecting an 11.7% increase year-over-year [1] - The company's EPS was $0.51, up from $0.40 in the same quarter last year, exceeding the consensus estimate of $0.41 by 24.39% [1] Financial Performance - Revenue surpassed the Zacks Consensus Estimate of $53.84 million, resulting in a surprise of +5.08% [1] - Net Interest Margin was reported at 3.4%, slightly above the average estimate of 3.3% [4] - Efficiency Ratio stood at 60.8%, better than the estimated 62.9% [4] - Total Non-Interest Income reached $9.32 million, exceeding the average estimate of $7.31 million [4] - Net Interest Income was $47.25 million, compared to the average estimate of $46.53 million [4] Stock Performance - Shore Bancshares shares have returned +9.6% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Company Performance - Shore Bancshares reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and up from $0.40 per share a year ago, representing an earnings surprise of +24.39% [1] - The company posted revenues of $56.57 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.08%, compared to year-ago revenues of $50.66 million [2] - Over the last four quarters, Shore Bancshares has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - The stock has added about 4.9% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.42 on revenues of $54.78 million, and for the current fiscal year, it is $1.67 on revenues of $217.05 million [7] - The estimate revisions trend for Shore Bancshares was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Shore Bancshares achieved strong Q2 2025 performance with significant growth in net income and EPS, improved margins, efficiency, and stable asset quality - The President and CEO, James M. Burke, highlighted the company's steady performance improvement, noting the expansion of **net income** and **margins**, improved **efficiency**, and **capital build-up**; he also mentioned that while **loan growth** is constrained, **rising asset yields** are expected to support margins through 2025[5](index=5&type=chunk) Q2 2025 Key Performance Indicators | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $15.5 million | $13.8 million | $11.2 million | | Diluted EPS | $0.46 | $0.41 | $0.34 | | ROAA | 1.03% | 0.91% | 0.77% | | Net Interest Margin (NIM) | 3.35% | 3.24% | 3.11% | | Book Value per Share | $16.94 | $16.55 | $15.74 | | Efficiency Ratio | 60.83% | 63.64% | 66.23% | - Asset quality remained stable, with nonperforming assets to total assets at **0.33%** for Q2 2025, a slight increase from **0.31%** in Q1 2025 and **0.29%** in Q2 2024; the allowance for credit losses (ACL) as a percentage of loans was flat at **1.21%** compared to year-end 2024[6](index=6&type=chunk) [Financial Condition Review (Balance Sheet)](index=2&type=section&id=Financial%20Condition%20Review%20%28Balance%20Sheet%29) Total assets decreased to $6.04 billion due to deposit run-offs, while capital ratios remained strong with improved tangible common equity [Assets and Capital](index=2&type=section&id=Assets%20and%20Capital) Total assets decreased to $6.04 billion due to deposit reductions, while capital ratios remained robust with a 7.88% tangible common equity ratio - Total assets decreased by **$192.9 million**, or **3.1%**, from December 31, 2024, primarily due to a **$285.4 million** decrease in interest-bearing deposits at other banks, driven by seasonal municipal deposit run-offs[7](index=7&type=chunk) Key Capital Ratios (June 30, 2025) | Ratio | Value | | :--- | :--- | | Tangible Common Equity Ratio | 7.88% | | Tier 1 Risk-Based Capital Ratio | 10.51% | | Total Risk-Based Capital Ratio | 12.65% | [Loan Portfolio Analysis](index=2&type=section&id=Loan%20Portfolio%20Analysis) The $2.60 billion CRE portfolio includes $484.3 million in office CRE, diversified with a low 48.41% average LTV - The office CRE loan portfolio was **$484.3 million**, or **10.0%** of total loans, at June 30, 2025; this portfolio had an average loan debt-service coverage ratio of **1.8x** and an average LTV of **48.41%**[12](index=12&type=chunk) Office CRE Portfolio LTV Stratification (June 30, 2025) | LTV Range | Loan Count | Loan Balance ($ thousands) | % of Office CRE | | :--- | :--- | :--- | :--- | | <= 50% | 245 | 168,874 | 34.9% | | 50%-60% | 74 | 111,092 | 22.9% | | 60%-70% | 94 | 130,718 | 27.0% | | 70%-80% | 65 | 62,601 | 12.9% | | > 80% | 14 | 11,013 | 2.3% | | **Total** | **492** | **484,298** | **100.0%** | - The Bank reported **no charge-offs** related to its office CRE portfolio during 2025; of the office CRE loans, only **$2.5 million** were classified as special mention or substandard at June 30, 2025[15](index=15&type=chunk) [Asset Quality](index=4&type=section&id=Asset%20Quality) Asset quality remained stable with NPAs at $19.6 million (0.33% of total assets), a slight increase driven by CRE and consumer loans - Nonperforming assets were **$19.6 million** (**0.33%** of total assets) at June 30, 2025, compared to **$18.9 million** (**0.31%** of total assets) at March 31, 2025; the increase of **$729 thousand** was mainly due to commercial real estate and consumer loans[16](index=16&type=chunk) [Deposits, Funding, and Liquidity](index=4&type=section&id=Deposits%2C%20Funding%2C%20and%20Liquidity) Total deposits decreased to $5.31 billion due to seasonal outflows, while liquidity remained strong at $1.16 billion - Total deposits decreased by **$214.4 million** from December 31, 2024, primarily driven by seasonal municipal run-offs[17](index=17&type=chunk) - The Bank's uninsured deposits were **$886.8 million**, or **16.7%** of total deposits; excluding deposits secured with pledged collateral, this figure was **$768.7 million**, or **14.5%** of total deposits[19](index=19&type=chunk) - At June 30, 2025, the Bank had approximately **$1.16 billion** of available liquidity, comprising cash, secured borrowing capacity, and unsecured lines of credit[19](index=19&type=chunk) [Stockholders' Equity](index=4&type=section&id=Stockholders%27%20Equity) Stockholders' equity increased by 4.5% to $565.2 million, driven by earnings and reduced comprehensive losses, improving the equity to assets ratio to 9.36% - Total stockholders' equity increased by **$24.1 million**, or **4.5%**, compared to December 31, 2024, primarily due to current year earnings and a decrease in accumulated other comprehensive losses[20](index=20&type=chunk) Equity Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Equity to Total Assets | 9.36% | 8.68% | | Tangible Equity to Tangible Assets | 7.88% | 7.17% | [Review of Financial Results](index=5&type=section&id=Review%20of%20Financial%20Results) Financial results showed strong sequential and year-over-year growth, with increased net interest income, noninterest income, and improved efficiency [Quarterly Results (Q2 2025)](index=5&type=section&id=Quarterly%20Results%20%28Q2%202025%29) Q2 2025 saw net interest income rise to $47.3 million, NIM expand to 3.35%, and noninterest income increase by $2.3 million, improving efficiency to 60.83% - Net interest income increased to **$47.3 million** in Q2 2025 from **$46.0 million** in Q1 2025; the Net Interest Margin (NIM) expanded by **11 bps** to **3.35%** during the same period[21](index=21&type=chunk)[22](index=22&type=chunk) - The provision for credit losses was **$1.5 million** for Q2 2025, up from **$1.0 million** in Q1 2025, due to loan portfolio growth[23](index=23&type=chunk) - Total noninterest income for Q2 2025 was **$9.3 million**, a **$2.3 million** increase from Q1 2025, mainly due to a **$780 thousand** increase in mortgage banking revenue and a one-time credit card incentive[24](index=24&type=chunk) - Total noninterest expense rose by **$663 thousand** from Q1 2025 to **$34.4 million**, primarily due to higher salaries and employee benefits[25](index=25&type=chunk) [Six-Month Results (H1 2025)](index=6&type=section&id=Six-Month%20Results%20%28H1%202025%29) H1 2025 net interest income grew 12.0% to $93.3 million, NIM improved to 3.30%, and noninterest expense decreased 2.9%, boosting efficiency to 62.19% - Net interest income for the first six months of 2025 was **$93.3 million**, a **12.0%** increase from the same period in 2024[27](index=27&type=chunk) - The Net Interest Margin (NIM) increased to **3.30%** for H1 2025 from **3.09%** for H1 2024, driven by higher earning-asset balances and lower funding costs[28](index=28&type=chunk) - Total noninterest expense for H1 2025 decreased by **$2.0 million** (**2.9%**) compared to H1 2024, primarily due to the absence of a **$4.3 million** credit card fraud event that occurred in 2024[31](index=31&type=chunk) - The efficiency ratio for the first six months of 2025 improved significantly to **62.19%**, compared to **71.42%** for the same period in 2024[32](index=32&type=chunk) [Financial Tables](index=8&type=section&id=Financial%20Tables) This section presents detailed unaudited financial tables, including highlights, balance sheets, income statements, and reconciliations of GAAP to non-GAAP measures - The report includes **comprehensive unaudited financial tables** covering profitability, per-share data, balance sheet details, income statements, credit quality, capital ratios, and reconciliations of non-GAAP measures[37](index=37&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) Key financial metrics are presented quarterly and semi-annually, covering profitability, per-share data, interest spreads, and credit quality [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) Details assets, liabilities, and stockholders' equity for the last five quarters, providing a snapshot of financial position [Consolidated Statements of Income](index=14&type=section&id=Consolidated%20Statements%20of%20Income) Outlines revenues and expenses for the last five quarters and H1 2025/2024, detailing the derivation of net income [Consolidated Average Balance Sheets](index=16&type=section&id=Consolidated%20Average%20Balance%20Sheets) Provides average asset/liability balances, interest income/expense, and yields/rates for net interest margin analysis [Reconciliation of GAAP and Non-GAAP Measures](index=20&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Measures) Reconciles GAAP financial measures to non-GAAP measures like tangible book value and non-GAAP efficiency ratio for transparency [Loan Portfolio Summary](index=25&type=section&id=Loan%20Portfolio%20Summary) Breaks down the loan portfolio by type for the last five quarter-ends, including commercial and residential real estate [Classified and Nonperforming Assets](index=26&type=section&id=Classified%20and%20Nonperforming%20Assets) Details classified and nonperforming assets over five quarters, providing insight into credit risk and asset quality [Company Information and Forward-Looking Statements](index=7&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) Overview of Shore Bancshares and a safe harbor statement regarding forward-looking statements and inherent risks - Shore Bancshares is a **financial holding company** headquartered in **Easton, Maryland**, and is the parent company of **Shore United Bank, N.A.**[33](index=33&type=chunk) - The report contains **forward-looking statements** based on management's current expectations, which involve **inherent risks and uncertainties**; these statements are **not guarantees of future performance** and actual results could differ materially[34](index=34&type=chunk)

Core Viewpoint - Shore Bancshares, Inc. reported a net income of $15.5 million for Q2 2025, reflecting a growth from $13.8 million in Q1 2025 and $11.2 million in Q2 2024, driven by higher net interest income and noninterest income from increased mortgage banking activity [1][12][37]. Financial Performance - Net income for Q2 2025 was $15.5 million, or $0.46 per diluted common share, compared to $13.8 million, or $0.41 per diluted common share in Q1 2025, and $11.2 million, or $0.34 per diluted common share in Q2 2024 [1][12][37]. - The Company’s net interest income increased to $47.3 million in Q2 2025 from $46.0 million in Q1 2025 and $42.1 million in Q2 2024 [20][37]. - Noninterest income for Q2 2025 was $9.3 million, up from $7.0 million in Q1 2025 and $8.4 million in Q2 2024 [23][37]. - The efficiency ratio improved to 60.83% in Q2 2025 from 63.64% in Q1 2025 and 66.23% in Q2 2024 [25][37]. Balance Sheet Overview - Total assets decreased to $6.04 billion at June 30, 2025, down from $6.23 billion at December 31, 2024, primarily due to a decrease in interest-bearing deposits [4][18]. - The tangible common equity ratio increased to 7.88% at June 30, 2025, compared to 7.17% at December 31, 2024 [5][18]. - Total deposits decreased by $214.4 million, or 3.9%, to $5.31 billion at June 30, 2025, mainly due to a decline in interest-bearing checking deposits [15][18]. Asset Quality and Capital Ratios - Nonperforming assets to total assets were 0.33% for Q2 2025, slightly up from 0.31% in Q1 2025 [14][18]. - The allowance for credit losses was $58.5 million at June 30, 2025, remaining flat as a percentage of loans at 1.21% [12][18]. - The Company’s Tier 1 and Total Risk-Based Capital Ratios were 10.51% and 12.65%, respectively, at June 30, 2025 [5][18]. Loan Portfolio Insights - The Company’s loan portfolio increased by $55.6 million, with total loans reaching $2.60 billion in commercial real estate (CRE) loans at June 30, 2025 [4][6]. - The average loan debt-service coverage ratio for the office CRE portfolio was 1.8x, with an average loan-to-value (LTV) ratio of 48.41% [9][10]. Shareholder Value - Book value per share increased to $16.94 at June 30, 2025, from $16.55 at March 31, 2025, and $15.74 at June 30, 2024 [12][37]. - The Company maintained a dividend of $0.12 per common share [37].

Core Viewpoint - Shore Bancshares (SHBI) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with a consensus outlook suggesting a positive earnings picture that could influence its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.41 per share, reflecting a year-over-year increase of +2.5%, while revenues are projected to reach $53.84 million, up 6.3% from the previous year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. Earnings Surprise Potential - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Shore Bancshares is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.44%, suggesting a bullish outlook on the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 1, indicating a strong likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Shore Bancshares exceeded the expected earnings of $0.35 per share by delivering $0.45, resulting in a surprise of +28.57% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Conclusion - Shore Bancshares is positioned as a compelling candidate for an earnings beat, although investors are advised to consider additional factors beyond earnings results when making investment decisions [17].

Core Viewpoint - Shore Bancshares Inc (SHBI) is showing potential for a bullish breakout due to a recent "golden cross" in its moving averages, indicating a key level of support and positive technical signals [1]. Technical Analysis - SHBI's 50-day simple moving average has crossed above its 200-day simple moving average, forming a "golden cross," which is a significant bullish indicator [1]. - The golden cross pattern typically involves three stages: a downtrend followed by a crossover of the shorter moving average over the longer one, and finally, an upward price movement [2]. Performance Metrics - Over the past four weeks, SHBI shares have increased by 10% [3]. - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting strong potential for further gains [3]. Earnings Outlook - There has been one upward revision in earnings estimates for SHBI in the last 60 days, with no downward revisions, indicating a positive earnings outlook for the current quarter [3]. - The Zacks Consensus Estimate for SHBI has also increased, reinforcing the bullish sentiment around the stock [4].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Shore Bancshares (SHBI) - Shore Bancshares currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - SHBI shares have increased by 6.63% over the past week, outperforming the Zacks Banks - Northeast industry, which rose by 4.31% [5] - Over the past month, SHBI's price change is 12.53%, compared to the industry's 7.77% [5] - In the last quarter, SHBI shares have risen by 30.83%, and over the past year, they have gained 44.22%, while the S&P 500 has only increased by 10.24% and 14.41%, respectively [6] Trading Volume - The average 20-day trading volume for SHBI is 191,516 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for SHBI has increased, while none have decreased, raising the consensus estimate from $1.62 to $1.67 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Considering the positive momentum indicators and earnings outlook, SHBI is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Viewpoint - Shore Bancshares (SHBI) is identified as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and an A for Value, indicating it is likely undervalued in the market [4][8]. Valuation Metrics - SHBI has a P/E ratio of 8.82, which is lower than the industry average of 9.63, suggesting it may be undervalued compared to its peers [4]. - The company has a P/B ratio of 0.91, compared to the industry's average P/B of 1.00, indicating a favorable valuation relative to its book value [5]. - SHBI's P/S ratio stands at 1.53, which is also lower than the industry average of 1.74, reinforcing the notion of undervaluation based on sales [6]. - The P/CF ratio for SHBI is 10.03, significantly lower than the industry's average of 15.75, highlighting its potential as an undervalued stock based on cash flow [7]. Investment Outlook - The combination of SHBI's strong earnings outlook and its favorable valuation metrics positions it as an attractive investment opportunity for value investors [8].

Core Viewpoint - Shore Bancshares (SHBI) is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is likely undervalued in the current market [4][8]. Valuation Metrics - SHBI has a Forward P/E ratio of 8.39, which is lower than the industry average of 9.35. The Forward P/E has fluctuated between 6.86 and 12.57 over the past 52 weeks, with a median of 9.79 [4]. - The P/B ratio for SHBI is 0.87, compared to the industry average of 0.95. Over the last 12 months, SHBI's P/B has ranged from 0.68 to 1.09, with a median of 0.88 [5]. - SHBI's P/S ratio stands at 1.44, which is lower than the industry's average of 1.76, indicating a favorable valuation based on sales [6]. - The P/CF ratio for SHBI is 9.50, significantly lower than the industry average of 15.12. This ratio has varied from 7.80 to 13.94 over the past year, with a median of 10.77 [7]. Investment Outlook - The combination of SHBI's attractive valuation metrics and strong earnings outlook suggests that it is an impressive value stock at present [8].

Group 1: Company Highlights - Carvana (CVNA) is a leading e-commerce platform for buying and selling used cars, with a Zacks Consensus Estimate for current year earnings increasing by 33.3% over the last 60 days [1] - PCB Bancorp (PCB) is a bank holding company offering various financial services, with a Zacks Consensus Estimate for current year earnings increasing by 14.2% over the last 60 days [2] - Pan American Silver (PAAS) focuses exclusively on silver mining, with a Zacks Consensus Estimate for current year earnings increasing by 10.7% over the last 60 days [3] - Howmet Aerospace (HWM) provides engineered solutions for the transportation and aerospace industries, with a Zacks Consensus Estimate for current year earnings increasing by 7.1% over the last 60 days [3] - Shore Bancshares (SHBI) is engaged in banking services, with a Zacks Consensus Estimate for current year earnings increasing by 5% over the last 60 days [4] Group 2: Market Insights - The Zacks Rank 1 (Strong Buy) List includes stocks that have shown significant increases in earnings estimates, indicating potential investment opportunities [5]