Shore Bancshares, Inc. Reports 2025 First Quarter Results

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].