Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 0-22345 SHORE BANCSHARES, INC. (Exact name ...

Core Insights - Shore Bancshares (SHBI) reported revenue of $53.03 million for the quarter ended March 2025, reflecting an 11% increase year-over-year and a surprise of +4.74% over the Zacks Consensus Estimate of $50.63 million [1] - The earnings per share (EPS) for the quarter was $0.45, compared to $0.41 in the same quarter last year, resulting in an EPS surprise of +28.57% against the consensus estimate of $0.35 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.2%, exceeding the average estimate of 3.1% from two analysts [4] - The Efficiency Ratio stood at 63.6%, better than the average estimate of 65.8% from the same two analysts [4] - Total Non-Interest Income was $7 million, slightly below the average estimate of $7.26 million from the two analysts [4] Stock Performance - Over the past month, shares of Shore Bancshares have returned -3%, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Shore Bancshares reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and up from $0.41 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $53.03 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.74%, compared to $47.78 million in the same quarter last year [2] - Over the last four quarters, Shore Bancshares has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Shore Bancshares shares have declined approximately 17.1% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $52.16 million, and for the current fiscal year, it is $1.56 on revenues of $212.21 million [7] - The estimate revisions trend for Shore Bancshares is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Northeast industry, to which Shore Bancshares belongs, is currently in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [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]

[Financial Performance Overview](index=1&type=section&id=Shore%20Bancshares%2C%20Inc.%20Reports%202025%20First%20Quarter%20Results) The company reported strong Q1 2025 results with significant improvements in net income, profitability metrics, and asset quality [Q1 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) The company reported strong Q1 2025 results with net income of $13.8 million ($0.41/share), up from both the prior quarter and the prior year, driven by record net interest income and stable expenses Key Financial Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $13.8 million | $13.3 million | $8.2 million | | Diluted EPS | $0.41 | $0.40 | $0.25 | | ROAA | 0.91% | 0.86% | 0.57% | | Net Interest Income | $46.0 million | $44.0 million | $41.1 million | | Net Interest Margin | 3.24% | 3.03% | 3.08% | - Asset quality remained stable, with nonperforming assets to total assets decreasing to **0.31%** from 0.40% in Q4 2024, and the efficiency ratio improved to **63.64%** from 64.21% in the previous quarter[6](index=6&type=chunk) [CEO's Statement](index=1&type=section&id=CEO%20Statement) The CEO highlighted a good start to 2025, attributing the performance to record net interest income and stable expenses, with expectations for lower funding costs and increasing asset yields - Funding costs are expected to decline further as higher-cost seasonal municipal deposits roll off, while asset yields are expected to continue increasing[4](index=4&type=chunk) - Charlie Cullum was appointed as the new Chief Financial Officer, succeeding the retiring Todd Capitani[5](index=5&type=chunk) [Financial Condition Analysis](index=3&type=section&id=Balance%20Sheet%20Review) The company's financial condition at Q1 2025 shows a slight decrease in total assets, an increase in stockholders' equity, stable loan portfolio, and improved asset quality [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) Total assets decreased by 0.9% to $6.18 billion at the end of Q1 2025 compared to Q4 2024, primarily due to a decrease in cash and cash equivalents, while total stockholders' equity increased by 2.1% to $552.5 million Balance Sheet Summary | Balance Sheet Item | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $6.18 billion | $6.23 billion | -0.9% | | Total Loans, net | $4.72 billion | $4.71 billion | +0.1% | | Total Deposits | $5.46 billion | $5.53 billion | -1.2% | | Total Stockholders' Equity | $552.5 million | $541.1 million | +2.1% | [Loan Portfolio Analysis](index=3&type=section&id=Loan%20Portfolio%20Analysis) The total loan portfolio remained stable at $4.78 billion, with Commercial Real Estate (CRE) loans constituting the largest portion at 53.2% ($2.54 billion) Loan Portfolio Composition | Loan Type | Balance (March 31, 2025) | % of Total | | :--- | :--- | :--- | | Commercial real estate | $2,544.1 million | 53.2% | | Residential real estate | $1,325.9 million | 27.8% | | Construction | $366.2 million | 7.7% | | Commercial | $234.5 million | 4.9% | | Consumer & Credit Cards | $306.8 million | 6.4% | | **Total Loans** | **$4,777.5 million** | **100.0%** | [Commercial Real Estate (CRE) Portfolio](index=3&type=section&id=Commercial%20Real%20Estate%20(CRE)%20Portfolio) The CRE portfolio totaled $2.54 billion, with the office CRE sub-portfolio at $501.5 million (10.5% of total loans) being well-diversified with a low average Loan-to-Value (LTV) of 49.00% - The office CRE portfolio of $501.5 million has an average LTV of **49.00%** and an average debt-service coverage ratio of **1.8x**[13](index=13&type=chunk) Office CRE LTV Distribution | Office CRE LTV Range | Loan Balance | % of Office CRE | | :--- | :--- | :--- | | <= 50% | $180.1 M | 35.9% | | 50%-60% | $114.9 M | 22.9% | | 60%-70% | $120.3 M | 24.0% | | 70%-80% | $75.6 M | 15.1% | | > 80% | $10.6 M | 2.1% | - Of the office CRE portfolio, **74.3%** was secured by properties in rural or suburban areas, and **97.1%** was secured by properties with five stories or less[16](index=16&type=chunk) [Asset Quality](index=5&type=section&id=Asset%20Quality) Asset quality improved quarter-over-quarter, with nonperforming assets decreasing to $18.9 million, or 0.31% of total assets, down from 0.40% in Q4 2024 Asset Quality Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Assets | $18.9 million | $24.8 million | $16.4 million | | Nonperforming Assets / Total Assets | 0.31% | 0.40% | 0.28% | | ACL / Total Loans | 1.21% | 1.21% | 1.23% | - The **$5.9 million** decrease in nonperforming assets from Q4 2024 was primarily due to a commercial real estate nonaccrual loan and a decrease in repossessed marine assets[17](index=17&type=chunk) [Deposits, Funding, and Liquidity](index=5&type=section&id=Deposits%2C%20Funding%2C%20and%20Liquidity) Total deposits decreased by 1.2% to $5.46 billion from the previous quarter, mainly due to seasonal run-offs of municipal deposits, while the bank maintains a strong liquidity position - Total deposits decreased by **$68.0 million**, driven by a **$125.6 million** decrease in interest-bearing checking, partially offset by a **$60.8 million** increase in time deposits, primarily due to seasonal municipal run-offs[18](index=18&type=chunk) - The Bank's uninsured deposits were **$940.6 million** (17.2% of total deposits), or **$775.6 million** (14.2%) excluding deposits secured with pledged collateral[20](index=20&type=chunk) - At March 31, 2025, the Bank had approximately **$1.35 billion** of available liquidity, including cash, secured borrowing capacity, and unsecured lines of credit[20](index=20&type=chunk) [Capital Adequacy](index=3&type=section&id=Capital%20Adequacy) Capital levels strengthened during the quarter, with the Tangible Common Equity to Tangible Assets ratio improving to 7.46% from 7.17% in Q4 2024, and all regulatory capital ratios remaining well above required minimums Company Capital Ratios | Capital Ratio (Company) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tangible Common Equity Ratio | 7.46% | 7.17% | | Tier 1 Risk-Based Capital | 10.37% | 10.06% | | Total Risk-Based Capital | 12.52% | 12.18% | [Results of Operations](index=6&type=section&id=Review%20of%20Quarterly%20Financial%20Results) The company's Q1 2025 operations show record net interest income and margin expansion, an increase in provision for credit losses, and a decrease in noninterest income and expense [Net Interest Income and Margin](index=6&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income (NII) for Q1 2025 increased by 4.6% quarter-over-quarter to a record $46.0 million, with the net interest margin (NIM) expanding significantly by 21 basis points to 3.24% Net Interest Performance | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $46.0 million | $44.0 million | +$2.0 million | | Net Interest Margin | 3.24% | 3.03% | +21 bps | | Core NIM | 3.02% | 2.85% | +17 bps | - The improvement in NIM was driven by a **17 bps** increase in loan yields (excluding accretion) and a **10 bps** decrease in funding costs compared to Q4 2024[6](index=6&type=chunk)[23](index=23&type=chunk) [Provision for Credit Losses](index=6&type=section&id=Provision%20for%20credit%20losses) The provision for credit losses was $1.0 million for Q1 2025, up from $0.8 million in Q4 2024, attributed to higher reserves for construction loan portfolio growth, partially offset by an improved economic outlook Provision and Charge-offs | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $1.0 million | $0.78 million | $0.41 million | | Net Charge-offs | $0.55 million | $1.3 million | $0.57 million | [Noninterest Income](index=6&type=section&id=Noninterest%20income) Total noninterest income was $7.0 million, a decrease of $1.9 million from Q4 2024, primarily due to the absence of a prior quarter asset sale gain and a decrease in mortgage banking revenue Noninterest Income Summary | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Total Noninterest Income | $7.0 million | $8.9 million | -$1.9 million | | Mortgage Banking Revenue | $0.27 million | $0.81 million | -$0.53 million | [Noninterest Expense](index=6&type=section&id=Noninterest%20expense) Total noninterest expense decreased slightly by 0.6% to $33.7 million compared to Q4 2024, mainly due to lower salary and benefit costs, leading to an improved efficiency ratio of 63.64% Noninterest Expense and Efficiency | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total Noninterest Expense | $33.7 million | $33.9 million | $36.7 million | | Efficiency Ratio (GAAP) | 63.64% | 64.21% | 76.93% | | Efficiency Ratio (Non-GAAP) | 59.76% | 60.28% | 62.37% | [Detailed Financial Tables and Reconciliations](index=8&type=section&id=Financial%20Highlights%20By%20Quarter%20and%20Year%20(Unaudited)) This section provides comprehensive unaudited financial statements, detailed loan portfolio and asset quality data, and reconciliations of GAAP to non-GAAP financial measures [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) The report provides unaudited consolidated balance sheets, statements of income, and average balance sheets with yield/rate analysis for the five most recent quarters, offering a detailed view of the company's financial position and performance trends - Detailed Consolidated Balance Sheets are presented for the five quarters ending March 31, 2025[38](index=38&type=chunk)[39](index=39&type=chunk) - Detailed Consolidated Statements of Income are presented for the five quarters ending March 31, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) - Detailed Consolidated Average Balance Sheets with yield/rate analysis are presented for Q1 2025, Q1 2024, and Q4 2024[43](index=43&type=chunk)[44](index=44&type=chunk) [Loan Portfolio and Asset Quality Details](index=23&type=section&id=Loan%20Portfolio%20and%20Asset%20Quality%20Details) Detailed tables provide a breakdown of the loan portfolio by type and a summary of classified and nonperforming assets over the last five quarters, showing trends in portfolio composition and credit quality - A five-quarter summary of the loan portfolio composition by loan type is provided[59](index=59&type=chunk) - A five-quarter summary of classified assets (substandard, special mention) and nonperforming assets is provided[60](index=60&type=chunk) [Reconciliation of GAAP and Non-GAAP Measures](index=18&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Measures%20(Unaudited)) The company provides detailed reconciliations for its non-GAAP financial measures, including return on average tangible equity, non-GAAP efficiency ratio, tangible book value per share, and tangible equity to tangible assets ratio, to provide a clearer view of core operating performance - Reconciliations are provided for key non-GAAP metrics such as ROAA, ROATE, efficiency ratio, and tangible book value per share[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Detailed calculations for regulatory capital ratios for both the holding company and the bank are presented, reconciling from common equity to Tier 1 and Total Capital[56](index=56&type=chunk)[57](index=57&type=chunk)

Core Insights - Shore Bancshares reported a net income of $13.8 million for Q1 2025, an increase from $13.3 million in Q4 2024 and $8.2 million in Q1 2024, translating to $0.41 per diluted common share compared to $0.40 and $0.25 respectively [1][29]. Financial Performance - The company achieved a record net interest income of $46.0 million for Q1 2025, up from $44.0 million in Q4 2024 and $41.1 million in Q1 2024, driven by higher interest income on loans and a decrease in interest expense on deposits [19][29]. - The net interest margin (NIM) increased to 3.24% in Q1 2025 from 3.03% in Q4 2024, with core NIM rising from 2.85% to 3.02% [12][20]. - Return on average assets (ROAA) improved to 0.91% in Q1 2025, compared to 0.86% in Q4 2024 and 0.57% in Q1 2024 [12][29]. Balance Sheet Overview - Total assets decreased to $6.18 billion as of March 31, 2025, down from $6.23 billion at the end of 2024, primarily due to a reduction in cash and cash equivalents [5][18]. - The tangible common equity ratio improved to 7.46% from 7.17% at the end of 2024, while Tier 1 and Total Risk-Based Capital Ratios were 10.37% and 12.52% respectively [6][18]. Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.31% in Q1 2025 from 0.40% in Q4 2024, indicating stable asset quality [12][14]. - The allowance for credit losses (ACL) was $58.0 million, remaining flat at 1.21% of loans [12][21]. Deposits and Funding - Total deposits decreased by $68.0 million, or 1.2%, to $5.46 billion, primarily due to a drop in interest-bearing checking deposits [15][16]. - Uninsured deposits accounted for 17.2% of total deposits, with approximately $1.35 billion in available liquidity [17][18]. Noninterest Income and Expenses - Total noninterest income for Q1 2025 was $7.0 million, down from $8.9 million in Q4 2024, primarily due to lower mortgage banking revenue [22][29]. - Noninterest expenses decreased to $33.7 million in Q1 2025 from $33.9 million in Q4 2024, reflecting lower salaries and employee benefits [23][29]. Leadership Changes - The company welcomed Charlie Cullum as the new Chief Financial Officer, highlighting the importance of his financial expertise to the organization [4].

Core Viewpoint - Shore Bancshares, Inc. has appointed Charles Cullum as the new Executive Vice President and Chief Financial Officer, effective April 21, 2025, succeeding Todd L. Capitani, who will assist during the transition until August 15, 2025 [1][3]. Group 1: Leadership Transition - Charles Cullum has over 20 years of financial experience, most recently serving as CFO at Sandy Spring Bancorp since May 2024 [2]. - Todd L. Capitani has announced his retirement after serving as CFO since July 2023 and previously as CFO of Community Financial since 2009, expressing gratitude for his tenure [3]. Group 2: Company Overview - Shore Bancshares is a financial holding company based in Easton, Maryland, and is the parent company of Shore United Bank, N.A., which also provides trust and wealth management services through Wye Financial Partners [4].

Financial Performance - The Company recorded net income of $43.9 million for the year ended December 31, 2024, compared to $11.2 million for 2023, representing a 290.89% increase[242]. - Net income for the year ended December 31, 2024, was reported at $43.89 million, significantly up from $11.23 million in 2023, representing an increase of approximately 290%[363]. - Basic and diluted net income per common share for 2024 was $1.32, compared to $0.42 in 2023, representing a growth of 214%[411]. - The return on average assets improved to 0.74% in 2024 from 0.24% in 2023, while return on average common equity increased to 8.35% from 2.54%[248]. - Return on average common equity improved to 8.35% in 2024 from 2.54% in 2023, indicating enhanced profitability relative to equity[363]. - The company reported a return on average tangible common equity of 12.21% for 2024, compared to 7.74% in 2023, indicating improved operational efficiency[365]. Asset and Liability Management - Total assets increased by $219.8 million, or 3.7%, to $6.23 billion at December 31, 2024, primarily due to a $131.0 million increase in loans held for investment[243]. - Total liabilities rose by $189.9 million, or 3.45%, to $5.69 billion at December 31, 2024, mainly due to an increase in deposits and borrowings[244]. - Total stockholder's equity grew by $29.9 million, or 5.9%, to $541.1 million at December 31, 2024, supported by net income of $43.9 million[246]. - Cash and cash equivalents totaled $459.9 million at December 31, 2024, compared to $372.4 million at December 31, 2023, reflecting a 23.5% increase[263]. - Total deposits increased to $5,528,336 thousand as of December 31, 2024, up from $5,386,120 thousand in 2023, reflecting a growth of approximately 2.64%[409]. Income and Expense Analysis - Interest and dividend income increased by $81.3 million, or 37.96%, to $295.3 million for the year ended December 31, 2024[248]. - Net interest income rose by $35.3 million, or 26.05%, to $170.9 million for 2024, primarily due to an increase in interest and fees on loans[249]. - Total noninterest income for 2024 was $31.1 million, a decrease of $2.0 million or 6.1% from $33.2 million in 2023[256]. - Total noninterest expense increased to $138.3 million in 2024, up $14.9 million or 12.1% compared to $123.3 million in 2023[257]. - The effective tax rate increased to 25.2% in 2024 from 20.8% in 2023, driven by bargain purchase gains and nondeductible merger-related costs[260]. Credit Quality and Risk Management - The provision for credit losses decreased significantly by $26.2 million, or 84.69%, to $4.7 million in 2024[248]. - The allowance for credit losses on loans was $57.91 million, slightly increasing from $57.35 million in 2023[277]. - Total past due loans decreased to $9.1 million at December 31, 2024, compared to $11.6 million at December 31, 2023, with nonaccrual loans increasing to $21.0 million[291]. - Nonperforming assets rose to $24.8 million, an increase of $11.1 million or 80.98% from $13.7 million in 2023, with the ratio of nonperforming assets to total assets increasing to 0.40% from 0.23%[305]. - The company continues to prioritize the resolution of nonperforming and problem loans through various strategies, including loan charge-offs and marketing of repossessed assets[306]. Capital and Regulatory Compliance - The Bank was classified as "well-capitalized" under applicable regulatory capital requirements as of December 31, 2024[348]. - The Company maintained a Common Equity Tier 1 ratio of 8.02% and a Total Risk-Based Capital ratio of 12.18% as of December 31, 2024[349]. - The company has no speculative grade HTM securities, maintaining a focus on investment-grade securities rated BBB- or higher[271]. Investment Portfolio - The investment portfolio included 23.7% classified as available-for-sale (AFS) and 76.3% as held-to-maturity (HTM) at December 31, 2024[264]. - As of December 31, 2024, investment securities totaled $656.4 million, reflecting a $9.0 million increase or 1.4% from $647.3 million in 2023[266]. - Available-for-sale (AFS) securities at fair value amounted to $149.2 million, up from $110.5 million in 2023, with a composition of 82.0% mortgage-backed, 13.5% U.S. government agency securities, and 4.4% corporate bonds[266]. - Held-to-maturity (HTM) securities at amortized cost decreased to $481.1 million from $513.2 million in 2023, with 70.0% in mortgage-backed securities and 27.6% in U.S. government agency securities[267]. Operational Efficiency - The company maintained effective internal control over financial reporting as of December 31, 2024, as confirmed by the independent auditor's report[389]. - The independent auditor Crowe LLP provided an unqualified opinion on the financial statements, affirming their conformity with generally accepted accounting principles[389].

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 A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - SHBI shares have increased by 0.86% over the past week, while the Zacks Banks - Northeast industry has risen by 1.03% [5] - Over the past month, SHBI's price change is 7.35%, significantly outperforming the industry's 1.9% [5] - In the last quarter, SHBI shares rose by 3.12%, and over the past year, they gained 46.89%, compared to the S&P 500's increases of 1.43% and 21.95%, respectively [6] Trading Volume - The average 20-day trading volume for SHBI is 164,042 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, one earnings estimate for SHBI has increased, while none have decreased, raising the consensus estimate from $1.46 to $1.59 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, SHBI is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Core Insights - Shore Bancshares (SHBI) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and showing an increase from $0.39 per share a year ago, resulting in an earnings surprise of 29.41% [1] - The company achieved revenues of $52.95 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.84% and increasing from $49.15 million year-over-year [2] - The stock has underperformed the market, losing about 0.8% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $50.1 million, and for the current fiscal year, it is $1.46 on revenues of $210.4 million [7] - The estimate revisions trend for Shore Bancshares is favorable, leading to a Zacks Rank 2 (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 6% of over 250 Zacks industries, suggesting that the industry outlook is positive and can significantly impact stock performance [8]

Financial Performance - Net income for Q4 2024 was $13.3 million, or $0.40 per diluted share, up from $11.2 million, or $0.34 per diluted share in Q3 2024, and $10.5 million, or $0.31 per diluted share in Q4 2023[3]. - Net income for the fiscal year 2024 increased to $43.9 million, or $1.32 per diluted share, compared to $11.2 million, or $0.42 per diluted share for fiscal year 2023[3]. - Net income for Q4 2024 reached $13,282 thousand, representing an 18.71% increase from Q3 2024 and a 26.60% increase from Q4 2023, totaling $43,889 thousand for the year, a significant rise of 290.89% compared to 2023[37]. - Basic net income per common share for Q4 2024 was $0.40, up 17.65% from Q3 2024 and 25.00% from Q4 2023, with an annual total of $1.32, a 214.29% increase from 2023[37]. - Net income for Q4 2024 was $13,282 thousand, an 18.71% increase from Q3 2024 and a 26.62% increase from Q4 2023[46]. Interest Income and Expenses - Net interest income for Q4 2024 rose by $748 thousand to $44.0 million, driven by a $363.1 million increase in average interest-earning assets[6]. - Net interest income for Q4 2024 was $44.0 million, up from $43.3 million in Q3 2024 and $41.5 million in Q4 2023, reflecting a $1.7 million increase in interest income[21]. - Total interest income for Q4 2024 was $76,404 thousand, a 2.30% increase compared to Q3 2024 and a 7.41% increase compared to Q4 2023[45]. - Total interest expense for Q4 2024 was $32,393 thousand, a 3.08% increase from Q3 2024 and a 9.40% increase from Q4 2023[45]. - Interest on deposits increased to $30,363 thousand in Q4 2024, a 5.22% increase from Q3 2024 and a 7.93% increase from Q4 2023[45]. Asset and Liability Management - Total assets increased by $219.8 million, or 3.66%, to $6.23 billion at December 31, 2024, compared to $6.01 billion at December 31, 2023[8]. - Total liabilities increased by 3.45% to $5,689,697 thousand compared to $5,499,783 thousand in December 2023[44]. - Total deposits rose by $142.2 million, or 2.64%, to $5.53 billion at December 31, 2024, primarily due to a $304.8 million increase in noninterest-bearing deposits[17]. - Total deposits increased by 2.64% to $5,528,336 thousand from $5,386,120 thousand in December 2023[44]. - Cash and cash equivalents rose by 23.48% to $459,851 thousand from $372,413 thousand in December 2023[43]. Credit Quality and Allowance for Losses - Nonperforming assets increased to $24.8 million, or 0.40% of total assets, at December 31, 2024, compared to $15.8 million, or 0.27% of total assets, at September 30, 2024[16]. - The allowance for credit losses was $57.9 million at December 31, 2024, with the ACL as a percentage of loans decreasing to 1.21%[6]. - The provision for credit losses was $780 thousand in Q4 2024, down from $1.5 million in Q3 2024 and $896 thousand in Q4 2023, indicating an improved economic outlook[23]. - The provision for credit losses for the year ended December 31, 2024, was $4.7 million, significantly lower than $31.0 million in 2023, reflecting improved credit quality post-merger[30]. - Nonperforming assets rose to $24,796 thousand in Q4 2024, compared to $13,701 thousand in Q4 2023, reflecting an increase of 81.06%[71]. Efficiency and Operational Metrics - The efficiency ratio improved to 64.21% in Q4 2024 from 67.49% in Q3 2024, indicating enhanced operating leverage[6]. - The efficiency ratio improved to 64.21% in Q4 2024 from 68.61% in Q4 2023, indicating better cost management[60]. - Total noninterest expense for Q4 2024 was $33.9 million, a decrease of $171 thousand from Q3 2024, but an increase of $273 thousand from Q4 2023, primarily due to higher salaries and employee benefits[25]. - Total noninterest income for Q4 2024 was $8.9 million, an increase of $1.6 million from Q3 2024 and $1.3 million from Q4 2023, driven by higher mortgage banking revenue[24]. - Adjusted noninterest expense for Q4 2024 was $31,645,000, slightly up from $30,473,000 in Q4 2023, reflecting a year-over-year increase of 3.8%[60]. Capital and Equity - Total stockholders' equity increased by $29.9 million, or 5.86%, compared to December 31, 2023, with total equity to total assets ratio at 8.68%[20]. - The tangible common equity ratio improved to 7.17% at December 31, 2024, compared to 6.78% at December 31, 2023[9]. - Common Tier 1 Capital to Risk-Weighted Assets (RWA) was 9.44% in Q4 2024, an increase of 17 basis points from Q3 2024 and 75 basis points from Q4 2023[42]. - Total capital reached $591,228,000 in Q4 2024, compared to $539,572,000 in Q4 2023, marking an increase of 9.6%[66]. - Stockholders' equity rose to $538,184 thousand as of December 31, 2024, compared to $507,040 thousand in the previous year, reflecting a growth of 6.15%[49].