NASDAQ: SHBI SHORE BANCSHARES INC 8-K

Shore Bancshares reports Q2 2026 net income of $18.9M ($0.56/share), up 21.7% YoY

Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read

Key Changes

high

Q2 2026 net income of $18.9M ($0.56/share), up 10.4% from Q1 2026 and 21.7% from Q2 2025, driven by lower deposit costs and higher noninterest income.

Exhibit 99.1 view on EDGAR →
high

Net interest margin expanded 6 bps to 3.70% in Q2 2026 from 3.64% in Q1 2026, as funding costs fell 8 bps while loan yields declined only 1 bp.

Exhibit 99.1 view on EDGAR →
high

Announced $30M share repurchase program and repurchased 40,093 shares for $891K in Q2 2026; raised quarterly dividend 16.7% to $0.14/share.

Exhibit 99.1 view on EDGAR →
medium

Nonperforming assets rose to $67.2M (1.09% of assets) at June 30, 2026, up $47.6M YoY, driven by three large multifamily and office CRE loans totaling $44.4M in NC and VA that management says are well-secured.

Exhibit 99.1 view on EDGAR →
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Office CRE portfolio totaled $475.9M (9.8% of loans) with 1.7x average debt service coverage and 48.10% LTV; $17.6M classified as special mention or substandard, but no charge-offs in H1 2026.

Exhibit 99.1 view on EDGAR →

Summary

Shore Bancshares reported strong second-quarter 2026 results, with net income of $18.9 million ($0.56 per diluted share) up 21.7% year-over-year and 10.4% sequentially. The earnings growth was driven by disciplined deposit pricing that lowered funding costs 8 basis points while loan yields held nearly flat, expanding the net interest margin to 3.70%.

The company returned capital to shareholders through a new $30 million share repurchase program (repurchasing 40,093 shares for $891 thousand in the quarter) and a 16.7% dividend increase to $0.14 per share, signaling confidence in earnings momentum and capital generation. The main watch item is asset quality.

Nonperforming assets jumped to $67.2 million (1.09% of total assets) from $19.6 million (0.33%) a year earlier, driven by three large multifamily and office CRE loans totaling $44.4 million in North Carolina and Virginia. Management states these loans are well-secured and require minimal reserves, and the broader office CRE portfolio (9.8% of loans) shows a healthy 1.7x debt service coverage ratio and 48.10% average loan-to-value with no charge-offs in the first half of 2026. Still, the sharp year-over-year increase in nonperforming assets and $17.6 million in classified office CRE loans warrant monitoring as the portfolio seasons.

Section-by-Section Diff

Event · Item 2.02 — Results of Operations and Financial Condition

~80 words

Shore Bancshares announced Q2 2026 earnings results via press release.

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Added Q2 2026 earnings announcement medium

Added in current filing · verify on EDGAR →

On July 23, 2026, Shore Bancshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the three and six months ended June 30, 2026.

The company disclosed its second quarter 2026 financial results. The 8-K itself does not contain the actual financial figures — those are in the attached press release (Exhibit 99.1), which was not provided in the input text.

Event · Exhibit 99.1

~12,100 words View exhibit on EDGAR ↗

Shore Bancshares reported Q2 2026 net income of $18.9 million ($0.56/share), up 21.7% YoY, with expanding net interest margin and a new $30M share repurchase program.

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Added Q2 2026 earnings high

Added in current filing · view on EDGAR →

net income for the second quarter of 2026 of $18.9 million, or $0.56 per diluted common share, compared to net income of $17.1 million, or $0.51 per diluted common share, for the first quarter of 2026, and net income of $15.5 million, or $0.46 per diluted common share, for the second quarter of 2025.

Shore Bancshares reported Q2 2026 net income of $18.9 million, or $0.56 per diluted share, up 10.4% from Q1 2026 and 21.7% from Q2 2025. The sequential increase was driven by lower interest expense on deposits ($1.3 million decrease), higher other noninterest income ($1.2 million increase), and lower salaries and employee benefits ($1.2 million decrease), partially offset by lower interest on deposits with other banks ($858 thousand decrease) and a higher provision for credit losses ($811 thousand increase).

Added Net interest margin expansion high

Added in current filing · view on EDGAR →

NIM increased 6 basis points (“bps”) to 3.70% during the second quarter of 2026 compared to the first quarter of 2026. NIM excluding accretion(1) increased for the comparable periods from 3.35% to 3.45%. Excluding accretion interest, loan yields decreased 1 bp and funding costs decreased 8 bps for the comparable periods.

Net interest margin expanded 6 basis points to 3.70% in Q2 2026 from 3.64% in Q1 2026, driven by lower funding costs (down 8 bps) that more than offset a 1 bp decline in loan yields. The core margin (excluding accretion) rose from 3.35% to 3.45%, reflecting disciplined deposit pricing and lower cost of funds.

Added Asset quality: nonperforming assets increase medium

Added in current filing · view on EDGAR →

Nonperforming assets were $67.2 million and $68.4 million, or 1.09% and 1.10% of total assets, as of June 30, 2026 and March 31, 2026, respectively. Nonperforming assets primarily consist of three large loans with an aggregate loan balance of $44.4 million. These nonperforming loans primarily consist of multifamily and office commercial real estate loans with collateral in North Carolina and Virginia. As of June 30, 2026, these loans are well-secured by collateral and required minimal individual reserves. When comparing June 30, 2026 to June 30, 2025, nonperforming assets increased $47.6 million, primarily due to an increase in nonaccrual loans of $48.0 million

Nonperforming assets were $67.2 million (1.09% of total assets) at June 30, 2026, up $47.6 million from $19.6 million (0.33% of assets) a year earlier, driven by three large multifamily and office CRE loans totaling $44.4 million in North Carolina and Virginia. Management states these loans are well-secured and require minimal reserves, but the sharp year-over-year increase warrants monitoring.

Added Office CRE portfolio detail medium

Added in current filing · view on EDGAR →

The office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $475.9 million, or 9.8% of total loans at June 30, 2026. ... At June 30, 2026, the average loan debt service coverage ratio on the office CRE loan portfolio was 1.7x and the average LTV was 48.10%. ... There were 16 office CRE loans with balances greater than $5.0 million, totaling $147.8 million at June 30, 2026 and totaling $166.1 million at December 31, 2025. ... $17.6 million of these loan balances were classified as special mention or substandard at June 30, 2026. There were no charge-offs within the office CRE portfolio during the three and six months ended June 30, 2026 and 2025.

The office CRE portfolio totaled $475.9 million (9.8% of loans) at June 30, 2026, with an average 1.7x debt service coverage ratio and 48.10% LTV. The 16 largest office CRE loans (>$5M each) totaled $147.8 million, down from $166.1 million at year-end 2025, with $17.6 million classified as special mention or substandard. No charge-offs occurred in this portfolio during the first half of 2026 or 2025, and 80.8% of the portfolio is secured by rural or suburban properties.