Shore Bancshares sees steady net income in Q3 earnings report

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Shore Bancshares Inc., the holding company for Easton-based Shore United Bank N.A., reported net income for the third quarter of 2024 of $11.2 million or $0.34 per diluted common share in its third-quarter financial report, released Friday, which was equal to the second quarter of 2024.

The company had a net loss of $9.7 million or $0.29 per diluted common share for the third quarter of 2023 as a result of the merger on July 1, 2023 between the company and The Community Financial Corporation.

Net income for the first nine months of 2024 was $30.6 million or $0.92 per diluted common share, compared to the first nine months of 2023 of $700,000 or $0.03 per diluted common share.

The company reported return on average investment (ROAA) of 0.77% for the third quarter of 2024, which was equal to reported ROAA for the second quarter of 2024. Non-GAAP, ROAA was 0.90% for the third quarter of 2024, compared to 0.91% for the second quarter of 2024.

Third quarter 2024 net interest income increased $1.1 million to $43.3 million from $42.1 million in the second quarter of 2024. Net interest income increased due to modest loan growth, slightly higher accelerated accretion income, and loans and securities repricing at a faster pace than the Bank’s cost of funds. Net interest margin increased six basis points to 3.17% for the third quarter of 2024 from 3.11% for the second quarter of 2024. Excluding net accretion interest income of $4.5 million and $3.8 million for the same time periods, NIM increased one bps to 2.84% for the third quarter of 2024 from 2.83% for the second quarter of 2024.

Total assets were $5.9 billion at Sept. 30, a decrease of $93.2 million or 1.6%, when compared to $6 billion at Dec. 31, 2023. The aggregate decrease was primarily due to a decrease in cash and cash equivalents of $188.8 million and investment securities held to maturity of $28.6 million partially offset by an increase in investment securities available for sale of $22.8 million and loans held for investment of $92.9 million. The ratio of the ACL to total loans remained flat at 1.24% at Sept. 30 compared to Dec. 31, 2023.