Shore Bancshares (SHBI) investor relations material

Executive summary

• Net income for Q1 2026 was $17.1 million ($0.51 per diluted share), up 24.1% year-over-year and 7.5% sequentially, driven by higher net interest income and lower provision for credit losses.

• Net interest income rose $2.4 million sequentially, driven by lower funding costs and accelerated loan repricing.

• Asset quality remains sound despite increases in nonperforming and classified assets, supported by strong collateral and conservative underwriting.

• Return on average assets (ROAA) rose to 1.12% from 0.91% a year ago; adjusted ROAA (non-GAAP) was 1.22%.

• Book value per share increased to $18.02 from $16.55 a year ago.

Financial highlights

• Net interest income grew 14.5% year-over-year to $52.6 million, with net interest margin (NIM) up 43 bps to 3.64%.

• Noninterest income was $7.2 million, up 1.5% year-over-year but down $1.7 million sequentially due to absence of one-time insurance proceeds.

• Noninterest expense rose 9.8% to $37.1 million, mainly due to higher salaries and technology costs.

• Efficiency ratio improved to 61.97% from 63.64% a year ago; adjusted efficiency ratio was 58.57%.

• Provision for credit losses was $85 thousand, down from $1.0 million in Q1 2025.

Outlook and guidance

• Management anticipates continued improvements in operating leverage through expense management and technology investments.

• Focus remains on risk management, strengthening operating leverage, and building long-term shareholder value.

• No material changes to risk factors or forward-looking statements; ongoing focus on credit quality and prudent growth.