Press release
Shore Bancshares, Inc. Reports Second Quarter and First-Half Financial Results
EASTON, Md., July 25, 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., July 25, 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 second quarter of 2024 of $11.2 million or $0.34 per diluted common share compared to net income of $8.2 million or $0.25 per diluted common share for the first quarter of 2024, and net income of $4.0 million or $0.20 per diluted common share for the second quarter of 2023. Net income for the first-half of 2024 was $19.4 million or $0.58 per diluted common share, compared to net income for the first-half of 2023 of $10.5 million or $0.53 per diluted common share. Unless the context clearly suggests otherwise, references to \"the merger\" refers to the merger of equals which took place on July 1, 2023 between the Company and The Community Financial Corporation (\"TCFC\").\n\n \n \n \n \n \n \n\n \nSecond Quarter and First-Half of 2024 Highlights\nReturn on Average Assets (\"ROAA\") - The Company reported ROAA of 0.77% for the second quarter of 2024, compared to 0.57% for the first quarter of 2024 and 0.45% for the second quarter of 2023. Non-GAAP, ROAA([1]), which excludes fraud expense, core deposit intangible amortization, and merger-related expenses, was 0.91% for the second quarter of 2024, compared to 0.94% for the first quarter of 2024 and 0.59% for the second quarter of 2023.Net Interest Margin Expansion - Net interest margin (\"NIM\") increased to 3.11% for the second quarter of 2024 from 3.08% for the first quarter of 2024. Excluding net accretion interest income of $3.8 million and $3.6 million for the same time periods, NIM increased two basis points (\"bps\") to 2.83% for the second quarter of 2024 from 2.81% for the first quarter of 2024.Continued Stable and Low Cost Funding - Total deposits remained stable in the second quarter of 2024 with noninterest-bearing deposits increasing $386.6 million to 30.8% of total deposits. The increase in noninterest-bearing deposits was primarily due to the migration of low-cost demand deposits to noninterest-bearing deposits and successful initiatives designed to drive noninterest-bearing deposit growth. The total average cost of deposits for the second quarter of 2024 declined four bps to 2.19% when compared to the first quarter of 2024.Improving Earnings Dr...