Shore Bancshares sees jump in assets in earnings report

Shore Bancshares, a financial holding company and parent of Easton-based Shore Bank, Friday announced its overall earnings for the fourth quarter and fiscal year 2022 as total assets climbed.

Total assets for the company were $3.477 billion on Dec. 31, 2022, a $17.1 million increase when compared to $3.46 billion at the end of 2021. During 2022, the company shifted its asset mix by deploying cash and cash equivalents into higher yielding assets, which consisted of loans and investment securities. As of December 31, 2022, the company had four Paycheck Protection Program loans totaling $187,000 that were outstanding.

Total deposits decreased $16.5 million, or less than 1%, when compared to Dec. 31, 2021. The decrease in total deposits was attributed to decreases in money market and savings accounts of $85.7 million, noninterest-bearing deposits of $65.5 million and time deposits of $35.2 million, partially offset by an increase in interest bearing checking accounts of $170 million.

Total stockholders’ equity increased $13.6 million, or 3.9%, when compared to December 31, 2021, primarily due to current year earnings, partially offset by an increase in unrealized losses on available for sale securities of $9.1 million. At Dec. 31, 2022, the ratio of total equity to total assets was 10.48% and the ratio of total tangible equity to total tangible assets was 8.67% compared to 10.14% and 8.25% at the end of 2021, respectively.

Company President and CEO Lloyd L. “Scott” Beatty Jr. said he was pleased with the fourth quarter earnings and fiscal year 2022 financial results as the company moves forward after its acquisition of Seven Bank in November 2021 and a pending merger with The Community Financial Corporation, the holding company of Community Bank of the Chesapeake, an all-stock transaction valued at approximately $254.4 million.