Shore Bancshares, Inc. Reports 2024 Fourth Quarter and Annual Results

Core Insights - Shore Bancshares, Inc. reported a net income of $13.3 million for Q4 2024, an increase from $11.2 million in Q3 2024 and $10.5 million in Q4 2023, resulting in a fiscal year net income of $43.9 million for 2024 compared to $11.2 million in 2023 [1][11][27] Financial Performance - The 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, driven by an increase in interest income and a decrease in provisions for credit losses [19][27] - The net interest margin (NIM) decreased to 3.03% in Q4 2024 from 3.17% in Q3 2024, while the core NIM increased slightly to 2.85% [20][11] - Noninterest income rose to $8.9 million in Q4 2024, compared to $7.3 million in Q3 2024 and $7.5 million in Q4 2023, primarily due to increased mortgage banking revenue [22][11] Balance Sheet Highlights - Total assets increased to $6.23 billion as of December 31, 2024, a 3.66% increase from $6.01 billion a year earlier, mainly due to growth in loans and cash equivalents [4][43] - The allowance for credit losses (ACL) decreased to 1.21% of total loans as of December 31, 2024, down from 1.24% a year prior [4][21] - Total deposits increased by $142.2 million, or 2.64%, to $5.53 billion compared to the previous year, driven by growth in noninterest-bearing deposits [14][16] Capital Ratios - The tangible common equity ratio improved to 7.17% as of December 31, 2024, compared to 6.78% a year earlier [5][17] - The Tier 1 capital ratio was reported at 10.06% and total risk-based capital ratio at 12.18% as of December 31, 2024 [5][55] Loan Portfolio - The total loan portfolio stood at $4.77 billion as of December 31, 2024, with commercial real estate loans comprising 53.60% of the total [58] - Nonperforming assets increased to $24.8 million, or 0.40% of total assets, compared to $15.8 million, or 0.27%, in the previous quarter [13][59] Operational Efficiency - The efficiency ratio improved to 64.21% in Q4 2024 from 67.49% in Q3 2024, indicating better cost management [24][31] - The company continues to focus on controlling expenses to enhance operating leverage and improve efficiency [3][11]