Shore Bancshares (SHBI) investor relations material

Executive summary

• Q3 2026 net income was $16.8 million, or $0.50 diluted EPS, up 16.9% YoY but down 11.1% QoQ; PTPP rose 5.6% QoQ to $27.5 million.

• Net interest income was $55.1 million, up 13.9% YoY; higher credit-loss provision, mainly tied to a multifamily relationship, tempered earnings.

• Nine-month net income increased 20.9% YoY to $52.7 million, or $1.58 diluted EPS; total assets were $6.45 billion at quarter-end.

Financial highlights

• Q3 interest income increased 4.0% YoY to $80.0 million, while interest expense fell 12.7% to $24.9 million.

• Provision for credit losses was $5.3 million, versus $896 thousand in Q2 and $3.0 million in Q3 2025; net charge-offs were $4.8 million, versus $123 thousand and $1.8 million, respectively.

• Noninterest income was $7.7 million, down $1.2 million QoQ; noninterest expense declined $405 thousand QoQ to $35.3 million but rose $884 thousand YoY.

• Nine-month net interest income rose 13.5% YoY to $160.6 million; noninterest expense increased 5.3% to $108.0 million.

• Total deposits were $5.70 billion, up 5.5% QoQ; loans held for investment were $4.90 billion, nearly unchanged from year-end 2025.

Outlook and guidance

• FY 2026 outlook: low-single-digit loan growth, mid-single-digit deposit growth, NIM of 3.60%–3.70%, and efficiency ratio in the mid-50% area, excluding specified items.

• FY 2026 targets include low-single-digit fee income growth, expenses up 4% over 2025, ACL/loans near 1.20%, and net charge-offs/loans of 15–20 bps.

• 2027 outlook: low- to mid-single-digit loan growth, mid-single-digit deposit growth, NIM of 3.60%–3.75%, and expense growth of 2%–3% over 2026.

• Management expects lower software expense following vendor contract renegotiation and systems consolidation; expense management and technology investment are intended to improve operating leverage over time.

• Loan repricing may benefit from higher rates, while elevated or further-rising rates could pressure borrower repayment capacity and liquidity; monitoring, stress testing and borrower engagement continue.