Shore Bancshares, Inc. · NASDAQ:SHBI
Shore Bancshares — Investor Presentation (November 2022)
21 slides from Shore Bancshares's investor presentation, Nov 8, 2022
Slide 1: Investor Presentation November 2022
1 Investor Presentation November 2022
Slide 2: Forward-Looking Statements
2 This investor presentation contains future oral and written statements of Shore Bancshares, Inc. (the “Company” or “SHBI”) an d i ts wholly - owned banking subsidiary, Shore United Bank, N.A. (the “Bank”), and its management, which may contain statements about future events that constitute forward
Slide 3: Management Team
3 Management Team * Reference Appendix section for biographies Name Title/Function Entity Years in Banking Years with Company Lloyd L. “Scott” Beatty, Jr. President and Chief Executive Officer SHBI, Bank 31 18 Edward C. Allen EVP and Chief Financial Officer SHBI, Bank 45 11 Donna J. Stevens EVP and
Slide 4: Financial Summary and Key Ratios
4 Financial Summary and Key Ratios Financial Ratio 12/31/21 YTD Ann. 9/30/22 Return on Average Assets (1) 0.95% 0.96% Return on Average Equity (1) 9.94% 9.33% Net Interest Margin 2.94% 3.09% Non - interest Income/Average Assets (2) 0.58% 0.67% Non - interest Expense/Average Assets (1),(2) 2.08% 2.26
Slide 5: Locations
5 Locations SHORE BANCSHARES Headquarters 18 E. Dover St. Easton, MD 21601 BANKING Shore United Bank 18 E. Dover St. Easton, MD 21601 877.758.1600 ShoreUnitedBank.com LOAN PRODUCTION OFFICES Shore United Bank ◼ 102 Sleepy Hollow Drive, Suite 204 Middletown, DE 19709 ◼ 5291 Corporate Drive, Suite 202
Slide 6: Strategic Direction
6 Strategic Direction ◼ Market Expansion ⚫ LPO’s and Strategic Branching – New Ocean City branch open & new Rehoboth branch announced ⚫ Acquire Banks in or Contiguous to our Existing Markets ◼ Operating Strategy ⚫ Drive Profitability ⚫ Emphasis on Core Deposits & Cost of Funds ⚫ Capitalize on New Ma
Slide 7: Market Highlights and Maryland, Delaware, Virginia Deposit Rank
7 Maryland Rank Share Branches Talbot 1 46.69% 4 Queen Anne’s 2 29.26% 5 Caroline 3 20.28% 2 Kent 4 10.71% 1 Anne Arundel 7 5.03% 7 Dorchester 7 5.78% 1 Worcester 11 1.76% 2 Howard 12 0.52% 1 Baltimore 14 0.83% 2 Delaware Rank Share Branches Kent 6 6.68% 4 Virginia Accomack 6 2.16% 1 Selected SHBI M
Slide 8: Deposit Market Share: SHBI Markets
8 Deposit Market Share: SHBI Markets NOTE: SHBI Market defined as Maryland Counties of Kent, Anne Arundel, Queen Anne's, Talbot, Caroline, Dorchester, Baltimore, Ho ward, Worcester, Kent County, Delaware; and Accomack County, VA. SOURCE: SNL Analysis as of October 31, 2022 Market Rank Local Rank Tic
Slide 9: Targeted, Organic Balance Sheet Growth
9 Total Deposits ($M) Total Assets ($M) Total Gross Loans Held for Investment ($M) NCOs / Avg. Loans Targeted, Organic Balance Sheet Growth Source: S&P Global Market Intelligence; Company documents $1,341 $1,701 $3,026 $3,015 Core (Net recoveries) $1,249 $1,454 $2,119 $2,402 Cannabis industry
Slide 10: Income Statement (Quarterly)
10 Income Statement (Quarterly) Dollar Value in Thousands 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Interest and Fees on Loans $20,564 $22,085 $23,452 $25,924 Other Interest Income 1,832 2,239 3,218 4,652 Interest Income 22,396 24,324 26,670 30,576 Interest on Deposits 1,272 1,358 1,511 2,561 Interes
Slide 11: Loan Portfolio
11 (Dollar Value in Thousands) As of September 30, 2022 Loan Type Balance % of Total Construction $230,119 9.6% 1 - 4 family residential 87,924 CRE Lot Loans 26,774 Land Development 37,373 Commercial Const Non 1 - 4 Family 59,758 Consumer RE Lot Loans 18,290 Residential Real Estate 758,063 31.5% Sec
Slide 12: Credit Quality Statistics
12 Dollar Values in Thousands 12/31/2020 12/31/2021 9/30/2022 Non - performing Assets Nonaccrual Loans $5,455 $2,004 $1,952 90+ or More Days Past Due 804 508 831 Other Real Estate Owned -- 532 197 Total Non - Performing Assets $6,259 $3,044 $2,980 Performing TDRs $6,997 $5,667 $4,458 Total NPAs + TD
Slide 13: Securities Portfolio
13 (Dollars in thousands) Amortized Cost Gross Unrealized Gains/(Losses) Estimated Fair Value September 30, 2022 Available - for - sale securities: U.S. Government Agencies $22,066 $(3,752) $18,314 Mortgage - backed 75,719 (9,563) 66,156 Other Debt Securities 2,020 (143) 1,877 Total $99,805 $(13,458
Slide 14: Attractive Deposit Base (Bank Only)
14 (Dollar Value in Thousands) September 30, 2022 Deposit Type Balance % of Total Average Rate (%) Noninterest Bearing Demand 893,808 29.6 0.00 Interest Bearing Demand 649,930 21.6 0.35 Money Market & Savings 1,042,176 34.6 0.26 CDs $100,000 or more 218,731 7.2 0.50 Other Time 210,667 7.0 0.54 Total
Slide 15: Capital Ratios (Bank Only)
15 Capital Ratios (Bank Only) 9.73% 9.48% 9.59% 13.21% 13.90% 13.05% 13.21% 13.90% 13.05% 14.25% 14.55% 13.71% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% YE 2020 YE 2021 9/30/2022 Tier 1 Leverage Ratio Common Equity Tier 1 Tier 1 Risk-Based Capital Ratio2 Total Risk-Based Capital Rati
Slide 16: Compelling Investment Considerations
16 Compelling Investment Considerations ◼ Excellent Cost of Funds ◼ Strategic plan positioned for organic growth and acquisitions ◼ Focused on creating sustainable competitive advantages ◼ Strengthened noninterest revenue sources ◼ Driving a sales culture with both a commercial and retail focus whil
Slide 17: Shore Bancshares: Appendix
| Shore Bancshares: Appendix 17
Slide 18: SHBI Management Team
18 SHBI Management Team Talent, depth, unique skills ◼ Lloyd L. “Scott” Beatty, Jr .., 70 , CPA, President & CEO of Shore Bancshares, Inc. since June 2013, Director of SHBI since December 2000, Director of Shore United Bank (formerly the Talbot Bank and CNB) since 1992. COO from 2006 until 2012 and
Slide 19: SHBI Management Team (continued)
19 SHBI Management Team (continued) Talent, depth, unique skills ◼ Vance W. Adkins, 42, CPA, CGMA, Executive Vice President & Treasurer since November 1, 2021, after the merger of the Company and Severn Bancorp, Inc. He has over 15 years of experience in the financial services industry. Previously,
Slide 20: Consolidated Balance Sheet
20 Dollar Values in Thousands 2019 2020 2021 9/30/2022 Assets Cash and Cash Equivalents $94,971 $186,917 $583,613 $163,306 Available for Sale Securities 122,791 139,568 116,982 86,347 Other Securities 14,318 70,727 410,125 581,835 Total Cash & Securities 232,080 397,212 1,110,720 831,488 Loans Held
Slide 21: Consolidated Historical Income Statement
21 Consolidated Historical Income Statement (1) Includes merger related expenses of $8.5 million. Net income excluding these expenses would’ve been $21,557 for 2021. (2) Includes merger related expenses of $1.1 million. Net income excluding these expenses would’ve been $23,617 for the first nin e m
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