Press release
Shore Bancshares, Inc. Reports 2023 Fourth Quarter and Annual Results
EASTON, Md., Jan. 31, 2024 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United
About this update from Shore Bancshares, Inc.
[{"type":"text","content":"EASTON, Md., Jan. 31, 2024 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ - SHBI) (the \"Company\" or \"Shore Bancshares\"), the holding company for Shore United Bank N.A. (the \"Bank\" or \"SUB\") reported net income for the fourth quarter of 2023 of $10.5 million or $0.32 per diluted common share compared to a net loss of $9.7 million or $0.29 per diluted common share for the third quarter of 2023, and net income of $8.4 million or $0.42 per diluted common share for the fourth quarter of 2022. Net income for the fiscal year of 2023 was $11.2 million or $0.42 per diluted common share, compared to net income for the fiscal year of 2022 of $31.2 million or $1.57 per diluted common share.\n\n \n \n \n \n \n \n\n \nFourth Quarter 2023 Highlights\nNet Interest Margin Impacted by Growth in Liquidity - Net interest margin (\"NIM\") decreased to 3.09% for the fourth quarter of 2023 from 3.35% for the third quarter of 2023, due to significant deposit growth and less net accretion income when compared to the third quarter of 2023. Excluding net accretion interest income of $3.0 million and $5.4 million for the same time periods, NIM decreased nine basis points to 2.87% for the fourth quarter of 2023 from 2.96% for the third quarter of 2023.Continued Deposit Growth - During the fourth quarter, total deposits increased 5.43% to $5.4 billion and non-interest bearing (\"NIB\") deposits increased 3.8% to $1.3 billion at December 31, 2023 compared to total deposits of $5.1 billion and NIB of $1.2 billion at September 30, 2023. Deposit growth for the quarter was split between core transaction and time deposits. The increased liquidity should help support 2024 loan growth. Current customer interest is indicating that growth could exceed management’s previous guidance of 4%-6% loan growth in 2024. The Bank's loan to deposit ratio at December 31, 2023 was 86%. Sustained efforts to enhance the Bank's deposit franchise are expected to attract additional deposits in future quarters.Stable Funding and Liquidity - Total funding, which includes customer deposits, Federal Home Loan Bank (\"FHLB\") advances, and brokered deposits increased $210.4 million from $5.2 billion at September 30, 2023 to $5.4 billion at December 31, 2023. The Bank had no FHLB advances at December 31, 2023 and reduced brokered deposits $67.0 million during the fourth quarter to $4...