EX-99.1 2 shbi-20250331xexx991.htm EX-99.1 Document

shore_bancsharesxlogo.jpg
18 E. Dover Street
Easton, Maryland 21601
Phone (410) 763-7800
PRESS RELEASE
Shore Bancshares, Inc. Reports 2025 First Quarter Results
Easton, Maryland (April 29, 2025) – Shore Bancshares, Inc. (NASDAQ - SHBI) (the “Company” or “Shore Bancshares”), the holding company for Shore United Bank, N.A. (the “Bank”) reported net income for the first quarter of 2025 of $13.8 million, or $0.41 per diluted common share, compared to net income of $13.3 million, or $0.40 per diluted common share, for the fourth quarter of 2024, and net income of $8.2 million, or $0.25 per diluted common share, for the first quarter of 2024.
First Quarter 2025 Highlights
•Improved Return on Average Assets (“ROAA”) – The Company reported ROAA of 0.91% for the first quarter of 2025, compared to 0.86% for the fourth quarter of 2024 and 0.57% for the first quarter of 2024. Non-U.S. generally accepted accounting principles (“GAAP”) ROAA(1) was 1.00% for the first quarter of 2025, compared to 0.94% for the fourth quarter of 2024 and first quarter of 2024.
•Increased Net Interest Income (“NII”) and Net Interest Margin (“NIM”) – NII for the first quarter of 2025 increased $2.0 million to $46.0 million from $44.0 million for the fourth quarter of 2024. NIM increased 21 basis points (“bps”) to 3.24% during the first quarter of 2025 from 3.03% in the fourth quarter of 2024. Core NIM increased for the comparable periods from 2.85% to 3.02%. Excluding accretion interest, loan yields increased 17 bps and funding costs decreased 10 bps, for the comparable periods. Interest expense for the first quarter of 2025 decreased $2.4 million when compared to the fourth quarter of 2024. All products repriced at favorable rates, and were partially offset by the seasonal run off of municipal deposits. NII and NIM were $41.1 million and 3.08%, respectively, for the first quarter of 2024.
•Net Income growth – Net income for the first quarter of 2025 increased $482 thousand to $13.8 million from $13.3 million in the fourth quarter of 2024. Net income increased due primarily to higher net interest income, which was partially offset by lower non-interest income due to lower mortgage banking activity and the absence of the one-time gain on sale of other assets in the fourth quarter of 2024. Net income for the first quarter of 2024 was $8.2 million.
•Stable Asset Quality – Nonperforming assets to total assets were 0.31% for the first quarter of 2025, a decrease from 0.40% for the fourth quarter of 2024 and an increase from 0.28% for the first quarter of 2024. Classified assets to total assets were 0.36% in the first quarter of 2025, a decrease when compared to 0.45% for the fourth quarter of 2024 and an increase when compared to 0.26% for the first quarter of 2024. The allowance for credit losses (“ACL”) was $58.0 million at March 31, 2025 compared to $57.9 million at December 31, 2024 and $57.3 million at March 31, 2024. The ACL as a percentage of loans remained flat at 1.21% at March 31, 2025, compared to December 31 and decreased compared to 1.23% at March 31, 2024.
•Improved Operating Leverage – The efficiency ratio for the first quarter of 2025 was 63.64% when compared to 64.21% in the fourth quarter of 2024 and 76.93% for the first quarter of 2024. The non-GAAP efficiency ratio(1), which excludes amortization, was 59.76% for the first quarter of 2025, compared to 60.28% for the fourth quarter of 2024 and 62.37% for the first quarter of 2024.
“Shore Bank had a good start to 2025 with record net interest income and stable expenses driving improvements in our net interest margin, return on assets and operating leverage,” stated James (“Jimmy”) M. Burke, President and Chief Executive Officer of Shore Bancshares. “Funding costs have trended lower and are expected to decline further as higher-cost seasonal municipal deposits roll off. Asset yields are expected to continue to increase as loans and securities reprice higher. We remain committed to disciplined expense management to drive sustained improvements in operating efficiency.
“We are also pleased to welcome Charlie Cullum to our executive leadership team as Chief Financial Officer,” continued Mr. Burke. “His extensive experience and financial expertise will be a valuable asset to our organization. We also extend our sincere appreciation to Todd Capitani for his outstanding service, exceptional leadership, and unwavering commitment over the years. We wish him the best in his well-earned retirement and future pursuits.”
(1) See the Reconciliation of GAAP and non-GAAP Measures tables.
1

Balance Sheet Review
Total assets were $6.18 billion at March 31, 2025, a decrease of $54.2 million, or 0.9%, when compared to $6.23 billion at December 31, 2024. The aggregate decrease was primarily due to the decrease of cash and cash equivalents of $70.8 million and investments held to maturity of $11.5 million, partially offset by an increase of investment securities available for sale of $29.9 million.
The Company’s tangible common equity ratio at March 31, 2025 was 7.46%, compared to 7.17% at December 31, 2024. The Company’s Tier 1 and Total Risk-Based Capital Ratios at March 31, 2025 were 10.37% and 12.52%, respectively. The Bank’s Tier 1 and Total Risk-Based Capital Ratios at March 31, 2025 were 11.09% and 12.33%, respectively. Non-owner occupied commercial real estate (“CRE”) loans as a percentage of the Bank’s Tier 1 Capital + ACL at March 31, 2025 and December 31, 2024 were $2.12 billion or 357.37%, and $2.08 billion or 359.52%, respectively. Non-owner occupied construction loans as a percentage of the Bank’s Tier 1 Capital + ACL at March 31, 2025 and December 31, 2024 were $365.7 million or 61.69%, and $336.0 million or 57.99%, respectively.
CRE loans at March 31, 2025 were $2.54 billion compared to $2.56 billion at December 31, 2024. The following table provides the stratification of the classes of CRE loans at March 31, 2025.
March 31, 2025
Owner OccupiedNon-Owner Occupied
 ($ in thousands)
Average LTV(1)
Average Loan Size
Loan Balance(2)
Average LTV(1)
Average Loan Size
Loan Balance(2)
Office, medical44.65 %$598 $32,316 51.79 %$1,900 $104,520 
Office, govt. or govt. contractor50.74 627 5,015 56.58 2,919 49,622 
Office, other49.13 496 96,259 48.37 1,296 213,758 
Office, total48.27 522 133,590 49.00 1,017 367,900 
Retail50.23 605 62,905 49.60 2,413 456,056 
Multi-family (5+ units)— — — 55.69 2,303 271,812 
Motel/hotel— — — 44.11 4,092 196,400 
Industrial/warehouse48.54 655 97,645 48.56 1,502 208,714 
Marine/boat slips29.66 1,470 44,109 39.71 2,222 15,553 
Restaurant49.03 1,017 60,018 47.97 1,033 46,470 
Church34.81 894 63,500 13.48 2,408 2,408 
Other41.69 1,006 244,340 54.00 609 553,407 
Total CRE loans, gross(3)
44.36 774 $706,107 51.28 1,251 $2,118,720 
(1)Loan-to-value (“LTV”) is determined based on latest available appraisal against current bank owned principal. Loans without an updated appraisal utilized the original transaction value.
(2)Loan balance includes deferred fees and costs.
(3)CRE loans include land and construction.
The Bank’s office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $501.5 million, or     10.5% of total loans at March 31, 2025. The Bank’s office CRE loan portfolio included medical tenants of $136.8 million, or 27.3% of the total office CRE loan portfolio, at March 31, 2025. The Bank’s office CRE loan portfolio also included government or government contractor tenants of $54.6 million, or 10.9% of the total office CRE loan portfolio for the same period. At March 31, 2025, the average loan debt-service coverage ratio was 1.8x and the average LTV was 49.00%.
There were 493 loans in the office CRE portfolio with an average loan size of $1.0 million and median loan size of $388 thousand. LTV estimates for the office CRE portfolio at March 31, 2025 are summarized below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination.
LTV Range ($ in thousands)
Loan Count Loan Balance % of Office CRE
Less than or equal to 50%244$180,087 35.9 %
50%-60%74114,897 22.9 
60%-70%92120,333 24.0 
70%-80%7075,618 15.1 
Greater than 80%1310,555 2.1 
Grand total493$501,490 100.0 %
2

The Bank had 18 office CRE loans with balances greater than $5.0 million, totaling $163.6 million at March 31, 2025, compared to 18 office CRE loans totaling $164.5 million at December 31, 2024. The decrease in this portfolio segment was the result of normal amortization. Of the office CRE portfolio balance, 74.3% was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.1% was secured by properties with five stories or less. Of the office CRE loans, $2.2 million were classified as special mention or substandard at March 31, 2025. The Bank did not have any charge-offs related to the office CRE portfolio during 2025.
At March 31, 2025 and December 31, 2024, nonperforming assets were $18.9 million, or 0.3% of total assets, and $24.8 million, or 0.4% of total assets, respectively. The balance of nonperforming assets decreased $5.9 million, primarily due to a commercial real estate nonaccrual loan and a decrease in repossessed marine assets of $886 thousand. When comparing March 31, 2025 to March 31, 2024, nonperforming assets increased $2.5 million, primarily due to an increase in nonaccrual loans of $2.6 million and an increase in repossessed marine loans of $584 thousand.
Total deposits decreased $68.0 million, or 1.2%, to $5.46 billion at March 31, 2025 when compared to December 31, 2024. The decrease in total deposits was primarily due to a decrease in interest-bearing checking deposits of $125.6 million, partially offset by an increase in time deposits of $60.8 million. The decrease in interest-bearing deposits was primarily driven by seasonal municipal run-offs of deposits. The yield on interest-bearing deposits was 2.94% at March 31, 2025 compared to 3.12% at December 31, 2024.
Total funding, which includes customer deposits, Federal Home Loan Bank (“FHLB”) advances and brokered deposits was $5.51 billion at March 31, 2025, compared to $5.58 billion at December 31, 2024. The Bank had a $50.0 million FHLB advance at March 31, 2025 and December 31, 2024. The advance consisted of an 18-month Bermuda Convertible note of $50.0 million. The Bank had zero brokered deposits at March 31, 2025 and December 31, 2024. Total reciprocal deposits were $1.46 billion at March 31, 2025 and $1.65 billion at December 31, 2024. 
The Bank’s uninsured deposits were $940.6 million, or 17.2% of total deposits, at March 31, 2025. The Bank’s uninsured deposits, excluding deposits secured with pledged collateral, were $775.6 million, or 14.2%, for same period. At March 31, 2025, the Bank had approximately $1.35 billion of available liquidity, including $389.0 million in cash and cash equivalents, $959.5 million in secured borrowing capacity at the FHLB and other correspondent banks and $95.0 million in unsecured lines of credit.
Total stockholders’ equity increased $11.4 million, or 2.1%, when compared to December 31, 2024, primarily due to current year earnings and a decrease in accumulated other comprehensive losses, partially offset by cash dividends paid. As of March 31, 2025, the ratio of total equity to total assets was 8.94% and the ratio of total tangible equity to total tangible assets(1) was 7.46%, compared to 8.68% and 7.17%, respectively, at December 31, 2024.

(1) See the Reconciliation of GAAP and non-GAAP Measures tables.
3

Review of Quarterly Financial Results
Net interest income was $46.0 million for the first quarter of 2025, compared to $44.0 million for the fourth quarter of 2024 and $41.1 million for the first quarter of 2024. The increase in net interest income when compared to the fourth quarter of 2024 was primarily due to an increase in interest income on loans of $219 thousand, an increase in interest on investment securities of $168 thousand and a decrease in interest expense on deposits of $2.3 million, partially offset by a decrease in interest on deposits at other banks of $728 thousand. The increase in net interest income of $4.9 million when compared to the first quarter of 2024 was primarily due to an increase in interest on deposits at other banks of $2.4 million, an increase in interest and fees on loans of $1.9 million and an increase in interest on investment securities of $582 thousand.
The Company’s NIM increased to 3.24% for the first quarter of 2025 from 3.03% for the fourth quarter of 2024, primarily due to higher core interest income. Core NIM increased for the comparable periods from 2.85% to 3.02%. Excluding accretion interest, loan yields increased 17 bps and funding costs decreased 10 bps, for the comparable periods. Interest expense for the first quarter of 2025 decreased $2.4 million when compared to the fourth quarter of 2024. All products repriced at favorable rates, and were partially offset by the seasonal run off of municipal deposits. The Company’s NIM increased to 3.24% for the first quarter of 2025 from 3.08% for the first quarter of 2024. The Company’s interest-earning asset yields increased to 5.35% for the first quarter of 2025 from 5.32% for the first quarter of 2024, while the cost of funds decreased 11 bps to 2.20% from 2.31% for the same periods.
The provision for credit losses was $1.0 million for the three months ended March 31, 2025. The comparable amounts were $780 thousand for the three months ended December 31, 2024 and $407 thousand for the three months ended March 31, 2024. The increase in the provision for credit losses for the first quarter of 2025 compared to the fourth quarter of 2024 was due higher reserves related to growth in the construction to permanent loan portfolio partially offset by improved economic outlook. Coverage ratios remained flat at 1.21% at March 31, 2025 from December 31, 2024, and decreased from 1.23% at March 31, 2024. Net charge-offs decreased to $554 thousand for the first quarter of 2025 compared $1.3 million for the fourth quarter of 2024 and $565 thousand for the first quarter of 2024.
Total noninterest income for the first quarter of 2025 was $7.0 million, a decrease of $1.9 million from $8.9 million for the fourth quarter of 2024, and an increase of $436 thousand from $6.6 million for the first quarter of 2024. When comparing the first quarter of 2025 to the fourth quarter of 2024, the decrease in noninterest income was primarily due to lower other noninterest income of $847 thousand resulting from the absence of the gain on sale of other assets held for sale recognized in the fourth quarter of 2024 and a decrease in mortgage banking revenue of $531 thousand, driven by decreased mortgage servicing activity primarily related to prepayments. When comparing the first quarter of 2025 to the first quarter of 2024, the increase in noninterest income was primarily due to an increase in mortgage banking activity, driven by increased mortgage servicing activity and lower prepayment rates.
Total noninterest expense of $33.7 million for the first quarter of 2025 decreased $196 thousand compared to the fourth quarter of 2024 expense of $33.9 million, and decreased $3.0 million compared to the first quarter of 2024 expense of $36.7 million. The decrease from the fourth quarter of 2024 was primarily due to lower salaries and employee benefit expenses. The decrease from the first quarter of 2024 was primarily due to the absence of the losses related to the credit card fraud incident in the first quarter of 2024, partially offset by higher salaries and benefits expense and software and data processing costs.
The efficiency ratio for the first quarter of 2025 when compared to the fourth quarter of 2024 and the first quarter of 2024 was 63.64%, 64.21% and 76.93%, respectively. Non-GAAP efficiency ratios(1) for the same periods were 59.76%, 60.28% and 62.37%, respectively. The net operating expense ratio, which is noninterest expense less noninterest income divided by average assets, for the first quarter of 2025 was 1.77%, compared to 1.62% and 2.10% for the fourth quarter of 2024 and the first quarter of 2024, respectively. The non-GAAP net operating expense ratio(1), which excludes core deposit intangible amortization and non-recurring activity, was 1.65% for the first quarter of 2025, compared to 1.50% and 1.62% for the fourth quarter of 2024 and the first quarter of 2024, respectively.
(1) See the Reconciliation of GAAP and non-GAAP Measures tables.
4

Shore Bancshares Information
Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the parent company of Shore United Bank, N.A. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank, N.A. Additional information is available at www.shorebancshares.com.
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: general economic conditions, (including the interest rate environment, government economic and monetary policies, the strength of global financial markets and inflation/deflation and supply chain issues), whether national or regional, and conditions in the lending markets in which we participate that may have an adverse effect on the demand for our loans and other products, our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; the ability to effectively manage the information technology systems, including third-party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches, and risk related to the development and use of artificial intelligence; the ability to develop and use technologies to provide products and services that will satisfy customer demands; results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses or to write-down assets; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, which could lead to restrictions on activities of banks generally, or our subsidiary bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet; our liquidity requirements could be adversely affected by changes in our assets and liabilities; our ability to prudently manage our growth and execute our strategy; impairment of our goodwill and intangible assets; competitive factors among financial services organizations, including product and pricing pressures and our ability to attract, develop and retain qualified banking professionals; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; the growth and profitability of noninterest or fee income being less than expected; the effect of legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry; the effect of any change in federal government enforcement of federal laws affecting the cannabis industry; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the U.S. Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board and other regulatory agencies; changes in U.S. trade policies, including the implementation of tariffs and other protectionist trade policies; the impact of governmental efforts to restructure or adjust the U.S. financial regulatory system; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; the impact of recent or future changes in Federal Deposit Insurance Corporation (the “FDIC”) insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments; he effect of fiscal and governmental policies of the U.S. federal government; climate change and other catastrophic events or disasters; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; and other factors that may affect our future results. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2024 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (https://www.sec.gov).
The Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
For further information contact: Charles S. Cullum, Executive Vice President, and Chief Financial Officer, (410) 260-2042
5

Shore Bancshares, Inc.
Financial Highlights By Quarter and Year (Unaudited)
Q1 2025 vs. Q1 2025 vs.
($ in thousands, except per share data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2024Q1 2024
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income$46,110$44,093$43,345$42,222$41,2144.6 %11.9 %
Less: Taxable-equivalent adjustment8182828279(1.2)2.5 
Net interest income46,02944,01143,26342,14041,1354.6 11.9 
Provision for credit losses1,0287801,4702,08140731.8 152.6 
Noninterest income7,0038,8537,2878,4406,567(20.9)6.6 
Noninterest expense33,74733,94334,11433,49936,698(0.6)(8.0)
Income before income taxes18,25718,14114,96615,00010,5970.6 72.3 
Income tax expense4,4934,8593,7773,7662,413(7.5)86.2 
Net income$13,764$13,282$11,189$11,234$8,1843.6 68.2 
Return on average assets 0.91%0.86%0.77%0.77%0.57%5 bp34 bp
Return on average assets excluding amortization of intangibles and fraud losses – non-GAAP(1)
1.000.940.900.910.946 6 
Return on average equity 10.209.828.418.706.3838 382 
Return on average tangible equity – non-GAAP(1)
13.7413.3712.3712.8513.3937 35 
Interest rate spread2.302.022.062.112.3428 (4)
Net interest margin3.243.033.173.113.0821 16 
Efficiency ratio – GAAP 63.6464.2167.4966.2376.93(57)(1,329)
Efficiency ratio – non-GAAP(1)
59.7660.2862.1061.0562.37(52)(261)
Noninterest income to average assets0.460.570.500.580.46(11)— 
Noninterest expense to average assets2.232.192.342.312.564 (33)
Net operating expense to average assets – GAAP1.771.621.841.732.1015 (33)
Net operating expense to average assets – non-GAAP(1)
1.651.501.651.551.6215 3 
PER SHARE DATA
Basic net income per common share$0.41$0.40$0.34$0.34$0.252.5 %64.0 %
Diluted net income per common share0.410.400.340.340.252.5 64.0 
Dividends paid per common share0.120.120.120.120.12— — 
Book value per common share at period end16.5516.2316.0015.7415.512.0 6.7 
Tangible book value per common share at period end – non-GAAP(1)
13.5813.1912.8812.5412.243.0 11.0 
Common share market value at period end13.5415.8513.9911.4511.50(14.6)17.7 
Common share intraday price:
High$17.24$17.61$14.99$11.90$14.38(2.1)%19.9 %
Low13.1513.2111.0310.0610.56(0.5)24.5 
____________________________________
(1)See the Reconciliation of GAAP and non-GAAP Measures tables.
6

Shore Bancshares, Inc.
Financial Highlights By Quarter and Year (Unaudited) - Continued
Q1 2025 vs. Q1 2025 vs.
($ in thousands, except per share data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2024Q1 2024
AVERAGE BALANCE SHEET DATA
Loans$4,784,991$4,796,245$4,734,001$4,706,510$4,655,183(0.2)%2.8 %
Investment securities664,655655,610656,375706,079655,3231.4 1.4 
Earning assets5,768,0805,798,4545,435,3115,459,9615,387,782(0.5)7.1 
Assets6,129,2416,163,4975,810,4925,839,3285,774,824(0.6)6.1 
Deposits5,417,5145,461,5835,086,3485,064,9745,142,658(0.8)5.3 
FHLB advances50,00050,00083,500143,7694,000— 1150.0 
Subordinated debt & TRUPS73,84073,57872,94672,68072,4180.4 2.0 
Stockholders’ equity547,443538,184529,155519,478515,9761.7 6.1 
CREDIT QUALITY DATA
Net charge-offs $554$1,333$1,379$886$565(58.4)%(2.0)%
Nonaccrual loans $15,402$21,008$14,844$14,837$12,776(26.7)%20.6 %
Loans 90 days past due and still accruing8942944544141,560204.1 (42.7)
Other real estate owned and repossessed property2,6083,4944851,7392,024(25.4)28.9 
Total nonperforming assets $18,904$24,796$15,783$16,990$16,360(23.8)15.6 

7

Shore Bancshares, Inc.
Financial Highlights By Quarter and Year (Unaudited) - Continued
Q1 2025 vs. Q1 2025 vs.
($ in thousands, except per share data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2024Q1 2024
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets8.94 %8.68 %9.01 %8.92 %8.84 %26 bp10 bp
Period-end tangible equity to tangible assets – non-GAAP(1)
7.46 7.17 7.39 7.23 7.11 29 35 
Annualized net charge-offs to average loans0.05 %0.11 %0.12 %0.08 %0.05 %(6)bp— bp
Allowance for credit losses as a percent of:
Period-end loans1.21 %1.21 %1.24 %1.24 %1.23 %— bp(2)bp
Nonaccrual loans 376.85 275.66 395.24 394.14 448.78 10,119 (7,193)
Nonperforming assets 307.04 233.55 371.72 344.19 350.46 7,349 (4,342)
As a percent of total loans:
Nonaccrual loans 0.32 %0.44 %0.31 %0.32 %0.27 %(12)bp5 bp
As a percent of total loans, other real estate owned and repossessed property:
Nonperforming assets 0.40 %0.52 %0.33 %0.36 %0.35 %(12)bp5 bp
As a percent of total assets:
Nonaccrual loans 0.25 %0.34 %0.25 %0.25 %0.22 %(9)bp3 bp
Nonperforming assets 0.31 0.40 0.27 0.29 0.28 (9)3 
____________________________________
(1)See the Reconciliation of GAAP and non-GAAP Measures tables.

8

Shore Bancshares, Inc.
Financial Highlights By Quarter and Year (Unaudited) - Continued

Q1 2025 vs.Q1 2025 vs.
($ in thousands)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2024Q1 2024
The Company Amounts
Common Tier 1 Capital$470,223 $458,258 $446,402 $435,238 $421,6702.61 %11.51 %
Tier 1 Capital500,149 488,105 476,170 464,554 450,9072.47 10.92 
Total Capital603,928 591,228 579,664 567,680 552,6572.15 9.28 
Risk Weighted Assets4,823,833 4,852,564 4,816,165 4,803,230 4,729,930(0.59)1.99 
The Company Ratios
Common Tier 1 Capital to RWA9.75 %9.44 %9.27 %9.06 %8.91 %31 bp84 bp
Tier 1 Capital to RWA10.37 10.06 9.89 9.67 9.53 31 84 
Total Capital to RWA12.52 12.18 12.04 11.82 11.68 34 84 
Tier 1 Capital to AA (Leverage)8.27 8.02 8.31 8.07 7.93 25 34 
The Bank Amounts
Common Tier 1 Capital$534,824 $521,453 $509,511 $501,003 $487,494 2.56 %9.71 %
Tier 1 Capital534,824 521,453 509,511 501,003 487,494 2.56 9.71 
Total Capital594,550 580,706 569,317 560,625 545,922 2.38 8.91 
Risk Weighted Assets4,821,975 4,851,903 4,808,058 4,796,512 4,723,872 (0.62)2.08 
The Bank Ratios
Common Tier 1 Capital to RWA11.09 %10.75 %10.60 %10.45 %10.32 %34 bp77 bp
Tier 1 Capital to RWA11.09 10.75 10.60 10.45 10.32 34 77 
Total Capital to RWA12.33 11.97 11.84 11.69 11.56 36 77 
Tier 1 Capital to AA (Leverage)8.84 8.58 8.90 8.71 8.58 26 26 
9

Shore Bancshares, Inc.
Consolidated Balance Sheets (Unaudited)
March 31, 2025
compared to
($ in thousands, except per share data)March 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2024
ASSETS
Cash and due from banks$46,886 $44,008 $52,363 $50,090 $43,079 6.5 %
Interest-bearing deposits with other banks342,120 415,843 131,258 88,793 71,481 (17.7)
Cash and cash equivalents389,006 459,851 183,621 138,883 114,560 (15.4)
Investment securities:
Available for sale, at fair value 179,148 149,212 133,339 131,594 179,496 20.1 
Held to maturity, net of allowance for credit losses469,572 481,077 484,583 499,431 503,822 (2.4)
Equity securities, at fair value5,945 5,814 5,950 5,699 5,681 2.3 
Restricted securities, at cost20,411 20,253 20,253 21,725 17,863 0.8 
Loans held for sale, at fair value15,717 19,606 26,877 27,829 13,767 (19.8)
Loans held for investment4,777,489 4,771,988 4,733,909 4,705,737 4,648,725 0.1 
Less: allowance for credit losses(58,042)(57,910)(58,669)(58,478)(57,336)(0.2)
Loans, net4,719,447 4,714,078 4,675,240 4,647,259 4,591,389 0.1 
Premises and equipment, net81,692 81,806 81,663 82,176 83,084 (0.1)
Goodwill63,266 63,266 63,266 63,266 63,266 — 
Other intangible assets, net36,033 38,311 40,609 42,945 45,515 (5.9)
Mortgage servicing rights, at fair value5,535 5,874 5,309 5,995 5,821 (5.8)
Right-of-use assets11,709 11,385 11,384 11,762 12,153 2.8 
Cash surrender value on life insurance105,040 104,421 103,729 102,969 102,321 0.6 
Accrued interest receivable20,555 19,570 19,992 19,641 19,541 5.0 
Deferred income taxes31,428 31,857 32,191 36,078 38,978 (1.3)
Other assets22,059 24,382 29,698 26,765 28,447 (9.5)
TOTAL ASSETS$6,176,563 $6,230,763 $5,917,704 $5,864,017 $5,825,704 (0.9)

10

Shore Bancshares, Inc.
Consolidated Balance Sheets (Unaudited) - Continued
March 31, 2025
compared to
($ in thousands, except per share data)March 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2024
LIABILITIES
Deposits:
Noninterest-bearing$1,565,017 $1,562,815 $1,571,393 $1,587,252 $1,200,680 0.1 %
Interest-bearing checking852,480 978,076 751,533 658,512 1,101,954 (12.8)
Money market and savings1,800,529 1,805,884 1,634,140 1,689,343 1,712,303 (0.3)
Time deposits1,242,319 1,181,561 1,268,657 1,213,778 1,169,342 5.1 
Total deposits5,460,345 5,528,336 5,225,723 5,148,885 5,184,279 (1.2)
FHLB advances50,000 50,000 50,000 81,000 — — 
Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”)
29,926 29,847 29,768 29,316 29,237 0.3 
Subordinated debt44,053 43,870 43,688 43,504 43,322 0.4 
Total borrowings123,979 123,717 123,456 153,820 72,559 0.2 
Lease liabilities12,183 11,844 11,816 12,189 12,552 2.9 
Other liabilities27,586 25,800 23,438 26,340 41,086 6.9 
TOTAL LIABILITIES5,624,093 5,689,697 5,384,433 5,341,234 5,310,476 (1.2)
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share333 333 333 333 332 — 
Additional paid in capital358,572 358,112 357,580 356,994 356,464 0.1 
Retained earnings199,898 190,166 180,884 173,716 166,490 5.1 
Accumulated other comprehensive loss(6,333)(7,545)(5,526)(8,260)(8,058)16.1 
TOTAL STOCKHOLDERS’ EQUITY552,470 541,066 533,271 522,783 515,228 2.1 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$6,176,563 $6,230,763 $5,917,704 $5,864,017 $5,825,704 (0.9)
Period-end common shares outstanding33,374,26533,332,17733,326,77233,214,52233,210,5220.1 
Book value per common share$16.55 $16.23 $16.00 $15.74 $15.51 2.0 
11

Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter (Unaudited)
Q1 2025 vs. Q1 2025 vs.
compared tocompared to
(In thousands, except per share and percentage data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2024Q1 2024
INTEREST INCOME
Interest and fees on loans $67,647$67,428$69,157$67,292$65,7540.3 %2.9 %
Interest on investment securities:
Taxable5,0014,8334,9625,2304,4193.5 13.2 
Tax-exempt66666— — 
Interest on deposits with other banks3,4094,137564578960(17.6)255.1 
Total interest income76,06376,40474,68973,10671,139(0.5)6.9 
INTEREST EXPENSE
Interest on deposits28,07030,36328,85627,58528,497(7.6)(1.5)
Interest on short-term borrowings——4911,58456— (100.0)
Interest on long-term borrowings1,9642,0302,0791,7971,451(3.3)35.4 
Total interest expense30,03432,39331,42630,96630,004(7.3)0.1 
NET INTEREST INCOME46,02944,01143,26342,14041,1354.6 11.9 
Provision for credit losses1,0287801,4702,08140731.8 152.6 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES45,00143,23141,79340,05940,7284.1 10.5 
NONINTEREST INCOME
Service charges on deposit accounts1,5141,6061,5431,4931,507(5.7)0.5 
Trust and investment fee income823857880896734(4.0)12.1 
Gain on sale of loans held for sale9661,2211,9611,131708(20.9)36.4 
Interchange credits1,5771,7261,7111,7171,587(8.6)(0.6)
Mortgage banking revenue274805(784)85293(66.0)194.6 
Title Company revenue117591001657898.3 50.0 
Other noninterest income1,7322,5791,8762,1861,860(32.8)(6.9)
Total noninterest income$7,003$8,853$7,287$8,440$6,567(20.9)6.6 

12

Shore Bancshares, Inc.
Consolidated Statements of Income By Quarter (Unaudited) - Continued
Q1 2025 vs. Q1 2025 vs.
compared tocompared to
(In thousands, except per share and percentage data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2024Q1 2024
NONINTEREST EXPENSE
Salaries and employee benefits$16,440$17,209$16,523$16,900$15,949(4.5)%3.1 %
Occupancy expense 2,5382,4742,3842,4322,4162.6 5.1 
Furniture and equipment expense85376087690090412.2 (5.6)
Software and data processing4,6914,5124,4194,2194,0214.0 16.7 
Directors’ fees348460443359295(24.4)18.0 
Amortization of other intangible assets2,2782,2982,3362,5692,576(0.9)(11.6)
FDIC insurance premium expense1,0911,0131,1601,0891,1507.7 (5.1)
Legal and professional fees1,6131,5211,3621,3541,5996.1 0.9 
Fraud losses(1)
10598673624,5027.1 (97.7)
Other noninterest expense3,7903,5983,9383,6153,2865.3 15.3 
Total noninterest expense33,74733,94334,11433,49936,698(0.6)(8.0)
Income before income taxes18,25718,14114,96615,00010,5970.6 72.3 
Income tax expense4,4934,8593,7773,7662,413(7.5)86.2 
NET INCOME$13,764$13,282$11,189$11,234$8,1843.6 68.2 
Weighted average shares outstanding - basic33,35133,32733,31833,23433,1890.1 %0.5 %
Weighted average shares outstanding - diluted33,37533,36433,33933,23433,1910.0 %0.6 %
Basic net income per common share$0.41$0.40$0.34$0.34$0.252.5 %64.0 %
Diluted net income per common share$0.41$0.40$0.34$0.34$0.252.5 %64.0 %
Dividends paid per common share$0.12$0.12$0.12$0.12$0.12— %— %
____________________________________
(1)Fraud losses for the third quarter of 2024 and first quarter of 2024 include $337 thousand and $4.3 million in losses related to the one-time online credit card account opening event. The third quarter of 2024 expense of $337 thousand was related to non-recurring data processing charges to close the fraudulent accounts.
13

Shore Bancshares, Inc.
Consolidated Average Balance Sheets (Unaudited)
Three Months Ended
March 31, 2025March 31, 2024December 31, 2024
($ in thousands)Average BalanceInterestYield/RateAverage BalanceInterestYield/Rate Average BalanceInterestYield/Rate
Earning assets
Loans(1), (2), (3)
  Commercial real estate $2,541,527$35,8895.73 %$2,518,884$35,6335.69 %$2,551,903$36,0365.62 %
  Residential real estate1,347,03518,4625.56 1,276,19117,2415.43 1,358,06618,1425.31 
  Construction352,3235,5266.36 300,1174,4045.90 336,0945,3046.28 
  Commercial 232,9003,7056.45 221,3564,1147.48 229,6763,7926.57 
  Consumer304,5204,0585.40 331,1784,2725.19 313,6864,0805.17 
  Credit cards6,686865.22 7,4571679.01 6,8201548.98 
Total loans4,784,99167,7265.74 4,655,18365,8315.69 4,796,24567,5085.60 
Investment securities
Taxable664,0025,0013.01 654,6634,4192.70 654,9554,8332.95 
Tax-exempt(1)
65384.90 66084.85 65584.89 
Interest-bearing deposits318,4343,4094.34 77,2769605.00 346,5994,1374.75 
Total earning assets5,768,08076,1445.35 5,387,78271,2185.32 5,798,45476,4865.25 
Cash and due from banks43,52649,49943,444
Other assets375,929395,023380,321
Allowance for credit losses(58,294)(57,480)(58,722)
Total assets$6,129,241$5,774,824$6,163,497
14

Shore Bancshares, Inc.
Consolidated Average Balance Sheets (Unaudited) - Continued
Three Months Ended
March 31, 2025March 31, 2024December 31, 2024
($ in thousands)Average BalanceInterestYield/RateAverage BalanceInterestYield/Rate Average BalanceInterestYield/Rate
Interest-bearing liabilities
Interest-bearing checking$859,698$7,0253.31 %$1,110,524$6,3622.30 %$901,764$7,8983.48 %
Money market and savings deposits 1,799,70710,0152.26 1,669,07410,1602.45 1,733,93410,3312.37 
Time deposits1,208,25011,0303.70 1,179,57211,7244.00 1,232,48012,1343.92 
Brokered deposits——— 20,4652514.93 ——— 
Interest-bearing deposits(4)
3,867,65528,0702.94 3,979,63528,4972.88 3,868,17830,3633.12 
FHLB advances50,0005984.85 4,000565.63 50,0006184.92 
Subordinated debt and Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”) (4)
73,8401,3667.50 72,4181,4518.06 73,5781,4127.63 
Total interest-bearing liabilities3,991,49530,0343.05 4,056,05330,0042.98 3,991,75632,3933.23 
Noninterest-bearing deposits1,549,8591,163,0231,593,405
Accrued expenses and other liabilities40,44439,77240,152
Stockholders’ equity547,443515,976538,184
Total liabilities and stockholders’ equity$6,129,241$5,774,824$6,163,497
Net interest income$46,110$41,214$44,093
Net interest spread2.30 %2.34 %2.02 %
Net interest margin3.24 3.08 3.03 
Cost of funds2.20 2.31 2.31 
Cost of deposits2.10 2.23 2.21 
Cost of debt6.43 7.93 6.54 
____________________________________
(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.
(2) Average loan balances include nonaccrual loans.
(3) Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $3.7 million, $4.2 million and $3.2 million of accretion interest on loans for the three months ended March 31, 2025 and 2024, and December 31, 2024, respectively.
(4) Interest expense on deposits and borrowing includes amortization of deposit discount and amortization of borrowing fair value adjustments. There were $334 thousand, $367 thousand and $412 thousand of amortization of deposits premium, and $232 thousand, $220 thousand, and $232 thousand of amortization of borrowing fair value adjustments for the three months ended March 31, 2025, March 31, 2024 and December 31, 2024, respectively.
15

Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited)
($ in thousands, except per share data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
The following reconciles return on average assets, average equity and return on average tangible equity(1):
Net income$13,764 $13,282 $11,189 $11,234 $8,184 
Net income - annualized (A)$55,821 $52,839 $44,513 $45,183 $32,916 
Net income$13,764 $13,282 $11,189 $11,234 $8,184 
Add: Amortization of other intangible assets, net of tax1,717 1,683 1,746 1,924 1,989 
Add: Credit card fraud losses, net of tax— — 252 — 3,339 
Less: Sale and fair value of held for sale assets, net of tax(339)(329)— — — 
Net income, excluding net amortization of other intangible assets, credit card fraud losses and held for sale assets15,142 14,636 13,187 13,158 13,512 
Net income, excluding net amortization of other intangible assets, credit card fraud losses and held for sale assets - annualized (B)$61,409 $58,226 $52,461 $52,921 $54,345 
Return on average assets (GAAP)0.91 %0.86 %0.77 %0.77 %0.57 %
Return on average assets excluding net amortization of other intangible assets, credit card fraud losses and held for sale assets - (non-GAAP)1.00 %0.94 %0.90 %0.91 %0.94 %
Average assets$6,129,241 $6,163,497 $5,810,492 $5,839,328 $5,774,824 
Average stockholders’ equity (C)$547,443 $538,184 $529,155 $519,478 $515,976 
Less: Average goodwill and core deposit intangible(100,514)(102,794)(105,136)(107,594)(110,167)
Average tangible equity (D)$446,929 $435,390 $424,019 $411,884 $405,809 
Return on average equity (GAAP) (A)/(C)10.20 %9.82 %8.41 %8.70 %6.38 %
Return on average tangible equity (non-GAAP) (A)/(D)12.49 %12.14 %10.50 %10.97 %8.11 %
Return on average tangible equity (non-GAAP) (B)/(D)13.74 %13.37 %12.37 %12.85 %13.39 %
16

Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued
($ in thousands, except per share data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio(2):
Noninterest expense (E)$33,747 $33,943 $34,114 $33,499 $36,698 
Less: Amortization of other intangible assets(2,278)(2,298)(2,336)(2,569)(2,576)
Less: Credit card fraud losses— — (337)— (4,323)
Adjusted noninterest expense (F)$31,469 $31,645 $31,441 $30,930 $29,799 
Net interest income (G)$46,029 $44,011 $43,263 $42,140 $41,135 
Add: Taxable-equivalent adjustment81 82 82 82 79 
Taxable-equivalent net interest income (H)$46,110 $44,093 $43,345 $42,222 $41,214 
Noninterest income (I)$7,003 $8,853 $7,287 $8,440 $6,567 
Less: Sale and fair value of held for sale assets(450)(450)— — — 
Adjusted noninterest income (J)$6,553 $8,403 $7,287 $8,440 $6,567 
Efficiency ratio (GAAP) (E)/(G)+(I) 63.64 %64.21 %67.49 %66.23 %76.93 %
Efficiency ratio (Non-GAAP) (F)/(H)+(J)59.76 %60.28 %62.10 %61.05 %62.37 %
Net operating expense to average assets (GAAP)1.77 %1.62 %1.84 %1.73 %2.10 %
Net operating expense to average assets (Non-GAAP)1.65 %1.50 %1.65 %1.55 %1.62 %
17

Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued
($ in thousands, except per share data)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
The following reconciles book value per common share and tangible book value per common share(1):
Stockholders’ equity (K)$552,470 $541,066 $533,271 $522,783 $515,228 
Less: Goodwill and core deposit intangible(99,299)(101,577)(103,875)(106,211)(108,781)
Tangible equity (L)$453,171 $439,489 $429,396 $416,572 $406,447 
Shares outstanding (M)33,37433,33233,32733,27233,211
Book value per common share (GAAP) (K)/(M)$16.55$16.23$16.00$15.71$15.51
Tangible book value per common share (non-GAAP) (L)/(M)$13.58$13.19$12.88$12.52$12.24
The following reconciles equity to assets and tangible equity to tangible assets(1):
Stockholders’ equity (N)$552,470$541,066$533,271$522,783$515,228
Less: Goodwill and core deposit intangible(99,299)(101,577)(103,875)(106,211)(108,781)
Tangible equity (O)$453,171$439,489$429,396$416,572$406,447
Assets (P)$6,176,563$6,230,763$5,917,704$5,864,017$5,825,704
Less: Goodwill and core deposit intangible(99,299)(101,577)(103,875)(106,211)(108,781)
Tangible assets (Q)$6,077,264$6,129,186$5,813,829$5,757,806$5,716,923
Period-end equity/assets (GAAP) (N)/(P)8.94%8.68%9.01%8.92%8.84%
Period-end tangible equity/tangible assets (Non-GAAP) (O)/(Q)7.46%7.17%7.39%7.23%7.11%
____________________________________
(1) Management believes that reporting tangible equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.
(2) Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities.
18

Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued
Regulatory Capital and Ratios for the Company
($ in thousands)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Common equity$552,470 $541,066 $533,271 $522,783 $515,228 
Goodwill(1)
(61,300)(61,362)(61,397)(61,460)(61,523)
Core deposit intangible(2)
(27,280)(28,991)(30,572)(32,313)(34,235)
DTAs that arise from net operating loss and tax credit carry forwards— — (426)(2,032)(5,858)
Accumulated other comprehensive loss6,333 7,545 5,526 8,260 8,058 
Common Equity Tier 1 Capital470,223 458,258 446,402 435,238 421,670 
TRUPS29,926 29,847 29,768 29,316 29,237 
Tier 1 Capital500,149 488,105 476,170 464,554 450,907 
Allowable reserve for credit losses and other Tier 2 adjustments59,726 59,253 59,806 59,622 58,428 
Subordinated notes44,053 43,870 43,688 43,504 43,322 
Total Capital$603,928 $591,228 $579,664 $567,680 $552,657 
Risk-Weighted Assets (“RWA”)$4,823,833 $4,852,564 $4,816,165 $4,803,230 $4,729,930 
Average Assets (“AA”)6,050,310 6,083,760 5,729,576 5,756,260 5,684,150 
Common Tier 1 Capital to RWA9.75 %9.44 %9.27 %9.06 %8.91 %
Tier 1 Capital to RWA10.37 10.06 9.89 9.67 9.53 
Total Capital to RWA12.52 12.18 12.04 11.82 11.68 
Tier 1 Capital to AA (Leverage)(3)
8.27 8.02 8.31 8.07 7.93 

19

Shore Bancshares, Inc.
Reconciliation of GAAP and Non-GAAP Measures (Unaudited) - Continued
Regulatory Capital and Ratios for the Bank
($ in thousands)Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Common equity$617,071 $604,261 $595,954 $587,283 $579,520 
Goodwill(1)
(61,300)(61,362)(61,397)(61,460)(61,523)
Core deposit intangible(2)
(27,280)(28,991)(30,572)(32,313)(34,235)
DTAs that arise from net operating loss and tax credit carry forwards— — — (767)(4,326)
Accumulated other comprehensive loss6,333 7,545 5,526 8,260 8,058 
Common Equity Tier 1 Capital534,824 521,453 509,511 501,003 487,494 
Tier 1 Capital534,824 521,453 509,511 501,003 487,494 
Allowable reserve for credit losses and other Tier 2 adjustments59,726 59,253 59,806 59,622 58,428 
Total Capital$594,550 $580,706 $569,317 $560,625 $545,922 
Risk-Weighted Assets (“RWA”)$4,821,975 $4,851,903 $4,808,058 $4,796,512 $4,723,872 
Average Assets (“AA”)6,050,130 6,077,540 5,721,995 5,750,604 5,679,282 
___________________________________
(1)Goodwill is net of deferred tax liability.
(2)Core deposit intangible is net of deferred tax liability.
20

Shore Bancshares, Inc.
Summary of Loan Portfolio (Unaudited)
Portfolio loans are summarized by loan type as follows:
($ in thousands)March 31, 2025%December 31, 2024%September 30, 2024%June 30, 2024%March 31, 2024%
Portfolio Loans by Loan Type
Commercial real estate$2,544,107 53.2 %$2,557,806 53.6 %$2,535,004 53.5 %$2,546,114 54.1 %$2,531,076 54.5 %
Residential real estate1,325,858 27.8 1,329,406 27.9 1,312,375 27.7 1,280,973 27.2 1,256,925 27.0 
Construction366,218 7.7 335,999 7.0 337,113 7.1 327,875 7.0 299,133 6.4 
Commercial234,499 4.9 237,932 5.0 225,083 4.8 218,987 4.6 229,594 4.9 
Consumer300,007 6.3 303,746 6.4 317,149 6.7 324,480 6.9 325,076 7.0 
Credit cards6,800 0.1 7,099 0.1 7,185 0.2 7,308 0.2 6,921 0.2 
Total loans4,777,489 100.0 %4,771,988 100.0 %4,733,909 100.0 %4,705,737 100.0 %4,648,725 100.0 %
Less: Allowance for credit losses(58,042)(57,910)(58,669)(58,478)(57,336)
Total loans, net$4,719,447 $4,714,078 $4,675,240 $4,647,259 $4,591,389 

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Shore Bancshares, Inc.
Classified Assets and Nonperforming Assets (Unaudited)
Classified assets and nonperforming assets are summarized as follows:
($ in thousands)March 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Classified loans
Substandard$19,434 $24,675 $22,798 $17,409 $13,403 
Total classified loans19,434 24,675 22,798 17,409 13,403 
Special mention loans33,456 33,519 14,385 25,549 27,192 
Total classified and special mention loans$52,890 $58,194 $37,183 $42,958 $40,595 
Classified loans$19,434 $24,675 $22,798 $17,409 $13,403 
Other real estate owned179 179 179 179 179 
Repossessed assets2,429 3,315 306 1,560 1,845 
Total classified assets$22,042 $28,169 $23,283 $19,148 $15,427 
Classified assets to total assets0.36 %0.45 %0.39 %0.33 %0.26 %
Nonaccrual loans$15,402 $21,008 $14,844 $14,837 $12,776 
90+ days delinquent accruing894 294 454 414 1,560 
Other real estate owned (“OREO”)
179 179 179 179 179 
Repossessed property2,429 3,315 306 1,560 1,845 
Total nonperforming assets$18,904 $24,796 $15,783 $16,990 $16,360 
Accruing borrowers experiencing financial difficulty loans (“BEFD”)1,642 1,662 — — — 
Total nonperforming assets and BEFDs modifications$20,546 $26,458 $15,783 $16,990 $16,360 
Nonperforming assets to total assets0.31 %0.40 %0.27 %0.29 %0.28 %
Total assets$6,176,563 $6,230,763 $5,917,704 $5,864,017 $5,825,704 

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