Shore Bancshares, Inc. Reports 2026 Third Quarter Results

James ("Jimmy") M. Burke, President and Chief Executive Officer of Shore Bancshares, Inc.

“Our third quarter reflected very strong core earnings, driven by continued expansion in net interest margin, growth in net interest income and lower noninterest expense, which further improved operating leverage. Pre-tax, pre-provision income increased 5.6% from the prior quarter, reflecting our disciplined approach to balance sheet management, the strength of our deposit franchise and our focus on operational execution. Net income for the quarter was impacted by a higher provision for credit losses, primarily related to a partial charge-off on a multifamily relationship that we downgraded last year. As we pursued an exit from these credits, updated valuations reflected property-specific issues that reduced collateral values. Our approach is to address potential credit problems as early as possible, and our core performance gives us the flexibility to do so. Capital levels remained strong, book value per share increased and we continued to return capital to shareholders through our quarterly dividend and share repurchases. Going forward, we remain focused on prudent growth, continually managing expenses and creating long-term value for our shareholders.”