Shore Bancshares, Inc. · NASDAQ:SHBI
Shore Bancshares — Investor Presentation (September 2022)
22 slides from Shore Bancshares's investor presentation, Sep 19, 2022
Slide 1: Investor Presentation September 2022
1 Investor Presentation September 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. 6/30/22 Return on Average Assets (1) 0.95% 0.85% Return on Average Equity (1) 11.34% 10.41% Net Interest Margin 2.94% 2.94% Non - interest Income/Average Assets (2) 0.58% 0.69% Non - interest Expense/Average Assets (1),(2) 2.08% 2.
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: Deposit market rank and share by county; market highlights
7 Maryland Rank Share Branches Talbot 1 46.25% 4 Queen Anne’s 2 27.23% 5 Caroline 3 19.39% 2 Kent 4 10.02% 1 Anne Arundel 6 5.32% 7 Dorchester 7 5.60% 1 Worcester 11 1.25% 2 Howard 13 0.45% 1 Baltimore 16 0.82% 2 Delaware Rank Share Branches Kent 6 4.74% 4 Virginia Accomack 6 1.76% 1 Selected SHBI M
Slide 8: Deposit market rank and share
8 Market Rank Local Rank Ticker Company Name City (HQ) HQ State Branches 2021 Total Deposits 2021 ($000) ’21 Market Share (%) 1 – BAC Bank of America Corp. Charlotte NC 47 11,989,494 18.3% 2 – MTB M&T Bank Corp. Buffalo NY 71 11,273,996 17.2% 3 – TFC Truist Financial Corp. Charlotte NC 45 8,086,925
Slide 9: Targeted, Organic Balance Sheet Growth
9 Total Deposits ($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 $3,014 Core (Net recoveries) $1,249 $1,454 $2,119 $2,265 Cannabis industry
Slide 10: Income Statement (Quarterly)
10 Income Statement (Quarterly) Dollar Value in Thousands 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 Interest and Fees on Loans $14,381 $15,484 $20,564 $22,085 $23,452 Other Interest Income 1,150 1,415 1,832 2,239 3,218 Interest Income 15,531 16,899 22,396 24,324 26,670 Interest on Deposits
Slide 11: Loan Portfolio by Type
11 (Dollar Value in Thousands) As of June 30, 2022 Loan Type Balance % of Total Construction $267,547 11.8% 1 - 4 family residential 101,277 CRE Lot Loans 25,965 Land Development 38,761 Commercial Const Non 1 - 4 Family 82,214 Consumer RE Lot Loans 19,330 Residential Real Estate 698,249 30.7% Secure
Slide 12: Credit Quality Statistics
12 Dollar Values in Thousands 12/31/2020 12/31/2021 6/30/2022 Non - performing Assets Nonaccrual Loans $5,455 $2,004 $2,693 90+ or More Days Past Due 804 508 803 Other Real Estate Owned -- 532 197 Total Non - Performing Assets $6,259 $3,044 $3,693 Performing TDRs $6,997 $5,667 $4,894 Total NPAs + TD
Slide 13: Securities Portfolio
13 (Dollars in thousands) Amortized Cost Gross Unrealized Gains/(Losses) Estimated Fair Value Available - for - sale securities: June 30, 2022 U.S. Government Agencies $22,238 $(2,751) $19,487 Mortgage - backed 79,579 (6,292) 73,287 Other Debt Securities 2,022 (107) 1,915 Total $103,839 $(9,150) $94
Slide 14: Attractive Deposit Base (Bank Only)
14 (Dollar Value in Thousands) June 30, 2022 Deposit Type Balance % of Total Average Rate (%) Noninterest Bearing Demand 889,122 29.5 0.00 Interest Bearing Demand 642,223 21.3 0.19 Money Market & Savings 1,034,974 34.3 0.22 CDs $100,000 or more 229,047 7.6 0.48 Other Time 218,965 7.3 0.55 Total Depo
Slide 15: Yield Table – 6/30/22 YTD with and without excess liquidity
15 Yield Table – 6/30/22 YTD with and without excess liquidity As reported YTD 6/30/2022 Without $200 million in excess liquidity YTD 6/30/2022 (Dollars in thousands) Average Balance Interest Yield/rate Average Balance Interest Yield/rate Earnings assets Loans $2,188,236 $45,614 4.20% $2,188,236 $45
Slide 16: Capital Ratios (Bank Only)
16 Capital Ratios (Bank Only) 9.73% 9.48% 9.45% 13.21% 13.90% 13.39% 13.21% 13.90% 13.39% 14.25% 14.55% 14.05% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% YE 2020 YE 2021 6/30/2022 Tier 1 Leverage Ratio Common Equity Tier 1 Tier 1 Risk-Based Capital Ratio2 Total Risk-Based Capital Rati
Slide 17: Compelling Investment Considerations
17 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 18: Appendix
Shore Bancshares; Appendix
Slide 19: SHBI Management Team
19 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 n
Slide 20: SHBI Management Team (continued)
20 SHBI Management Team (continued) Talent, depth, unique skills Vance W. Adkins, 41, 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 21: Consolidated Balance Sheet
21 Dollar Values in Thousands 2019 2020 2021 6/30/2022 Assets Cash and Cash Equivalents $94,971 $186,917 $583,613 $403,009 Available for Sale Securities 122,791 139,568 116,982 94,689 Other Securities 14,318 70,727 410,125 470,122 Total Cash & Securities 232,080 397,212 1,110,720 967,820 Loans Held
Slide 22: Consolidated Historical Income Statement
22 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 $971 thousand. Net income excluding these expenses would’ve been $13,830 for the first ha lf o
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