Shore Bancshares, Inc. · NASDAQ:SHBI
Shore Bancshares — Investor Presentation (March 2025)
29 slides from Shore Bancshares's investor presentation, Mar 10, 2025
Slide 1: December 31, 2024 Investor Presentation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 December 31, 2024 Investor Presentation
Slide 2: Forward-Looking Statements
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Forward-Looking Statements This presentation contains future oral and written statements of Shore Bancshares, Inc. (the “Company” or “SHBI”) and its wholly-owned banking subsidiary, Shore United Bank, N.A. (the “Bank”), and its
Slide 3: Shore Bancshares, Inc. (NASDAQ: SHBI) Financial Performance
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Shore Bancshares, Inc. (NASDAQ: SHBI) (1) Allowance for Credit Losses ("ACL"), Nonperforming Assets (“NPAs”) includes Other Real Estate Owned ("OREO"), Loan Modifications to Borrowers Experiencing Financial Difficulty ("BEFDs")
Slide 4: Suburban and Rural Branches Support Dominant Maryland Franchise and Growing Presence in Virginia and Delaware
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Suburban and Rural Branches Support Dominant Maryland Franchise and Growing Presence in Virginia and Delaware 4 Branch locations (40 branches) Commercial Lending Centers (4 locations) Mortgage Loan Offices (3 locations) Pennsylv
Slide 5: Investment Opportunity
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Investment Opportunity 2024 Q4 ▪ EPS and ROATCE of $0.40 per diluted share and 9.82%, respectively ▪ ROAA of 0.86% and 0.94% (Non-GAAP) 2023 Q4 ▪ EPS and ROATCE of $0.31 per diluted share and 8.21%, respectively ▪ ROAA of 0.72%
Slide 6: Federal Agency Presence Insulates Economy in Operating Markets
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Federal Agency Presence Insulates Economy in Operating Markets 6 Naval Surface Warfare – Naval Support Facility at Dahlgren Defense Intelligence Agency & Defense Intelligence Analysis Center – Joint Base Anacostia-Bolling Naval
Slide 7: Loan Portfolio
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Construction 7.04% Residential real estate 33.24% Commercial real estate 47.65% Commercial 5.57% Consumer 6.50% Loan Portfolio Loan Composition (As of December 31, 2024) 7 $4.77 billion Concentrations as a percentage of total ca
Slide 8: CRE Portfolio Averages and LTV Owner occupied
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 CRE Portfolio Averages and LTV 8 Owner occupied ($ in thousands) 70% LTV or Greater 80% LTV or Greater Loan Category Number of Loans Average LTV(1) Average Loan Size Loan Balance(2) Number of Loans Loan Balance(2) % of Outstandi
Slide 9: CRE Portfolio Averages and LTV Non-owner occupied
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 CRE Portfolio Averages and LTV 9 Non-owner occupied ($ in thousands) 70% LTV or Greater 80% LTV or Greater Loan Category Number of Loans Average LTV(1) Average Loan Size Loan Balance(2) Number of Loans Loan Balance(2) % of Outst
Slide 10: Commercial Real Estate Portfolio Details
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Commercial Real Estate Portfolio Details Average loan size $1.08mm Average LTV* 48.8% DSC (non-owner occupied) 1.74x % with guaranty (by $ / by #) 83% / 91% Past due 30-89 days $2.43mm / 0.09% of total CRE Nonaccrual $10.75mm /
Slide 11: Commercial Real Estate Portfolio Details
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Commercial Real Estate Portfolio Details Multifamily, 9.4% Industrial, 10.7% Office, 18.0% Retail, 18.2% Other, 36.1% Hotel/Motel, 7.6% 11 MD, 52.4% VA, 23.4% DE, 8.2% Other, 16.1% CRE Portfolio Composition(1) Amount ($000) % of
Slide 12: Commercial Real Estate Portfolio Details
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Commercial Real Estate Portfolio Details 12 $ in m ill io ns $406.5 $220.8 $220.6 $208.3 $145.4 14.5% 7.9% 7.9% 7.4% 5.2% Balance ($ in million) % of CRE Loans 2025 2026 2027 2028 2029 $— $100.0 $200.0 $300.0 $400.0 $500.0 $ in
Slide 13: Deposit Portfolio
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Interest- bearing Checking, 50.36%Noninterest- bearing Deposits, 28.27% Time Deposits, 21.37% Deposit Portfolio Deposit Composition (As of December 31, 2024) ▪ Deposit franchise positions Bank to succeed in a variety of rate env
Slide 14: NIM and Core NIM
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 3.27% 2.94% 3.15% 3.11% 3.10%3.24% 2.91% 3.09% 2.89% 2.83% 3.27% 3.10% 3.37% 3.19% 3.10% 3.33% 3.21% 3.46% 3.41% 3.29% NIM Core-NIM Regional Peer National Peer 2020 2021 2022 2023 2024 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3
Slide 15: Balance Sheet Composition and Deposit Betas
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Balance Sheet Composition and Deposit Betas 15 (1) Non-maturity transaction accounts include both noninterest-bearing and interest-bearing deposit accounts Non-maturity deposit(1) costs have remained well below market ratesBalan
Slide 16: Credit Quality Statistics
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Credit Quality Statistics 16 (1) FASB eliminated accounting guidance for troubled debt restructurings ("TDRs") and replaced with the new disclosure loan modifications to borrowers' experiencing financial difficulties ("BEFDs") i
Slide 17: Quarterly Capital Ratios (Bank Only)
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Quarterly Capital Ratios (Bank Only) 17 8.33% 8.58% 8.71% 8.90% 8.58% 10.02% 10.32% 10.45% 10.60% 10.75% 10.02% 10.32% 10.45% 10.60% 10.75% 11.27% 11.56% 11.69% 11.84% 11.97% Tier 1 Leverage Ratio Common Equity Tier 1 Tier 1 Ris
Slide 18: Quarterly Capital Ratios (Holding Company)
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Quarterly Capital Ratios (Holding Company) 18 7.75% 7.93% 8.07% 8.31% 8.02% 8.69% 8.91% 9.06% 9.27% 9.44%9.32% 9.53% 9.67% 9.89% 10.06% 11.49% 11.68% 11.82% 12.04% 12.18% Tier 1 Leverage Ratio Common Equity Tier 1 Tier 1 Risk-Ba
Slide 19: Expense Control Remains a Top Priority
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Expense Control Remains a Top Priority Shore United Bank leadership has a history of careful expense management ▪ Current investments are inflating expenses but are expected to improve operating efficiency over time ▪ Salaries a
Slide 20: Appendix
Appendix Shore Bancshares|)\ | Shore United Bank)
Slide 21: Financial Highlights
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Financial Highlights 21 1 Gross portfolio loans and US SBA loans are inclusive of net deferred costs and fees. 2 Non-GAAP financial measures. Refer to Appendix to this presentation for a reconciliation. 3 NPLs include nonaccrual
Slide 22: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation ‘‘Tangible book value per share’’ is defined as tangible stockholders’ equity less preferred equity and intangible assets divided by total common shares outstanding. We believe that this measure is import
Slide 23: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation ‘‘Efficiency ratio” is defined as recurring non-interest expense less foreclosed real estate (OREO) expenses and valuation allowances, less merger and acquisition costs, less amortization of intangible as
Slide 24: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation We believe core net interest margin, which reflects our net interest margin before the impact of U.S. SBA PPP loan interest and average balances, accretion interest on acquired loans and prepayment penalt
Slide 25: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation We believe core net interest margin, which reflects our net interest margin before the impact of U.S. SBA PPP loan interest and average balances, accretion interest on acquired loans and prepayment penalt
Slide 26: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation During 2023, our operating results were impacted by one-time expenses related to the merger of equals with The Community Financial Corporation ("TCFC"). We believe that investors would benefit from analyz
Slide 27: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation ‘‘Tangible common equity (or “TCE”)” is defined as stockholders’ equity less preferred equity and intangible assets. “Tangible assets (or “TA”)” are defined as total assets less intangible assets. We beli
Slide 28: Non-GAAP Reconciliation
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Non-GAAP Reconciliation We believe that pre-tax pre-provision income, which reflects our profitability before income taxes and loan loss provisions, allows investors to better assess our operating income and expenses in relation
Slide 29: Fourth Quarter 2024
#006881 #ACC0C6 #83AFB4 #FEBE10 #5F574F #4D4F53 #C75B12 #5B8F22 #593160 Investor Presentation Fourth Quarter 2024 NASDAQ: SHBI Parent of: Shore Bancshares, Inc. is the largest independent financial holding company headquartered on the Eastern Shore of Maryland. It is the parent company of Shore Unit
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