# EDGAR Filing Document

**Accession Number:** 0001035092
**File Stem:** 0001035092-26-000006
**Filing Date:** 2026-1
**Character Count:** 86496
**Document Hash:** 5b70c354185b6df57d72286c6164aaaf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001035092-26-000006.hdr.sgml**: 20260128

**ACCESSION NUMBER**: 0001035092-26-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260128

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260128

**DATE AS OF CHANGE**: 20260128

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SHORE BANCSHARES INC
- **CENTRAL INDEX KEY:** 0001035092
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 521974638
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-22345
- **FILM NUMBER:** 26572494

**BUSINESS ADDRESS:**
- **STREET 1:** 18 EAST DOVER STREET
- **CITY:** EASTON
- **STATE:** MD
- **ZIP:** 21601-3013
- **BUSINESS PHONE:** 4108221400

**MAIL ADDRESS:**
- **STREET 1:** 18 EAST DOVER STREET
- **CITY:** EASTON
- **STATE:** MD
- **ZIP:** 21601-3013

?xml version='1.0' encoding='ASCII'? shbi-20260128

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): January 28, 2026

![Shore_Bancshares_Logo.jpg](shbi-20260128_g1.jpg)

**<u>SHORE BANCSHARES, INC.</u>**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **000-22345** | **52-1974638** |
| (State or other jurisdiction of incorporation or organization) | (Commission file number) | (IRS Employer Identification No.) |

---

**<u>18 E. Dover Street, Easton, Maryland 21601</u>**

(Address of principal executive offices) (Zip Code)

**<u>(410) 763-7800</u>**

(Registrant's telephone number, including area code)

**<u>Not Applicable</u>**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
| **Common stock, $0.01 par value per share** | **SHBI** | **The NASDAQ Global Select Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 2.02 Result of Operation and Financial Condition**

On January 28, 2026, Shore Bancshares, Inc. (the "Company") issued a press release announcing its results of operations and financial condition for the year ended ended December 31, 2025. A copy of the Company's press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits**

(d)Exhibits.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[99.1](shbi-20251231xexx991.htm)</u> | <u>[Press Release, dated](shbi-20251231xexx991.htm)January 28, 2026[(filed herewith)](shbi-20251231xexx991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **SHORE BANCSHARES, INC.** | **SHORE BANCSHARES, INC.** |
| Dated: January 28, 2026 | By: | /s/ James M. Burke |
|  |  | James M. Burke |
|  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

![shore_bancsharesxlogo.jpg](shore_bancsharesxlogo.jpg)

**18 E. Dover Street**

**Easton, Maryland 21601**

**Phone (410) 763-7800**

**PRESS RELEASE**

**<u>Shore Bancshares, Inc. Reports 2025 Fourth Quarter and Annual Results</u>**

**Easton, Maryland (January 28, 2026)** – Shore Bancshares, Inc. (NASDAQ – SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United Bank, N.A. (the "Bank") reported net income for the fourth quarter of 2025 of $15.9 million, or $0.48 per diluted common share, compared to net income of $14.3 million, or $0.43 per diluted common share, for the third quarter of 2025, and net income of $13.3 million, or $0.40 per diluted common share, for the fourth quarter of 2024.

**Fourth Quarter and Full-Year 2025 Highlights**

**• Net Income** – Net income for the fourth quarter of 2025 increased $1.5 million to $15.9 million from $14.3 million in the third quarter of 2025. Net income increased primarily due to higher net interest income of $1.8 million and higher noninterest income of $966 thousand driven by one-time insurance proceeds, partially offset by higher noninterest expense of $1.1 million. Net income for the year ended December 31, 2025 was $59.5 million, compared to $43.9 million for the year ended December 31, 2024. The annual increase was primarily driven by an increase in net interest income due to loans repricing favorably, coupled with lower cost of deposits during the period. The favorable changes were offset by a higher provision for loan losses, driven by increased charge-offs in 2025.

• **Return on Average Assets ("ROAA")** – The Company reported ROAA of 1.02% for the fourth quarter of 2025, compared to 0.95% for the third quarter of 2025 and 0.86% for the fourth quarter of 2024. Non-U.S. generally accepted accounting principles ("GAAP") adjusted ROAA<sup>(1)</sup> was 1.11% for the fourth quarter of 2025, compared to 1.05% for the third quarter of 2025 and 0.94% for the fourth quarter of 2024.

**• Net Interest Margin ("NIM")** – Net interest income for the fourth quarter of 2025 increased $1.8 million to $50.4 million compared to the third quarter of 2025. NIM increased 1 basis point ("bps") to 3.43% during the fourth quarter of 2025 compared to the third quarter of 2025. NIM excluding accretion<sup>(1)</sup> increased for the comparable periods from 3.22% to 3.24%. Excluding accretion interest, loan yields increased 2 bps and funding costs decreased 4 bps for the comparable periods. Net interest income increased due to modest loan growth and higher yields on investments, coupled with a lower cost of deposits. These favorable changes were partially offset by lower yields on interest-bearing deposits with other institutions.

• **Book Value per Share –** Book value per share increased to $17.65 at December 31, 2025 from $17.27 at September 30, 2025 and $16.23 at December 31, 2024.

**• Asset Quality** – Nonperforming assets were 0.69% of total assets at December 31, 2025, an increase from 0.45% at September 30, 2025 and 0.40% at December 31, 2024. Classified assets were 0.96% of total assets at December 31, 2025, an increase when compared to 0.83% at September 30, 2025 and 0.45% at December 31, 2024. The allowance for credit losses ("ACL") was $58.8 million at December 31, 2025, compared to $59.6 million at September 30, 2025 and $57.9 million at December 31, 2024. The ACL as a percentage of loans decreased to 1.20% at December 31, 2025, compared to 1.22% at September 30, 2025 and 1.21% at December 31, 2024.

**• Operating Leverage** – The efficiency ratio for the fourth quarter of 2025 was 60.06% compared to 61.00% in the third quarter of 2025 and 64.21% for the fourth quarter of 2024. The non-GAAP efficiency ratio<sup>(1)</sup>, which excludes amortization of intangibles was 56.59% for the fourth quarter of 2025, compared to 57.30% for the third quarter of 2025 and 60.28% for the fourth quarter of 2024. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time.

"Our fourth-quarter and full year results underscore the strength and momentum of the bank," stated James ("Jimmy") Burke, President and Chief Executive Officer. "We delivered meaningful quarterly and annual improvements in net income, net interest income, ROAA, and NIM, while controlling expenses and driving operating leverage. Nonperforming and classified assets have increased but overall asset quality remains solid and is supported by strong collateral and reserves.

<sup>(1)</sup> See the Reconciliation of GAAP and non-GAAP Measures tables.

------

As we enter 2026, we remain confident in our ability to strengthen core profitability and deliver sustainable long-term value for our shareholders."

**Balance Sheet Review**

Total assets were $6.26 billion at December 31, 2025, an increase of $28.1 million, or 0.5%, when compared to $6.23 billion at December 31, 2024. The increase was primarily due to an increase in our loan portfolio of $128.3 million and an increase in our investment securities portfolio of $5.3 million, which were partially offset by a decrease in cash and cash equivalents of $104.3 million. The decrease in cash and cash equivalents was primarily driven by loan growth. Total assets decreased $19.7 million, or 0.3%, from $6.28 billion when compared to September 30, 2025.

Non-owner occupied commercial real estate ("CRE") loans were $2.15 billion and $2.08 billion, and as a percentage of the Bank's Tier 1 Capital + ACL were 343% and 360% at December 31, 2025 and 2024, respectively.

CRE loans (excluding land and construction) at December 31, 2025 were $2.64 billion compared to $2.56 billion at December 31, 2024. The following table provides the stratification of the classes of CRE loans (excluding land and construction) at December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Owner Occupied** | **Owner Occupied** | **Owner Occupied** | **Non-Owner Occupied** | **Non-Owner Occupied** | **Non-Owner Occupied** |
|<br> *($ in thousands)* | **Average LTV**<sup>(1)</sup> | **Average Loan Size** | **Loan Balance**<sup>(2)</sup> | **Average LTV**<sup>(1)</sup> | **Average Loan Size** | **Loan Balance**<sup>(2)</sup> |
| Office, medical | 42.28% | $594 | $30300 | 49.55% | $1796 | $98803 |
| Office, govt. or govt. contractor | 52.80 | 590 | 4722 | 56.41 | 2924 | 46780 |
| Office, other | 47.74 | 472 | 88800 | 47.17 | 1342 | 216114 |
| Office, total | 46.80 | 501 | 123822 | 48.35 | 1559 | 361697 |
| Retail | 49.74 | 596 | 64988 | 48.36 | 2595 | 485267 |
| Multi-family (5+ units) |  |  |  | 54.30 | 2367 | 262788 |
| Hotel/motel |  |  |  | 44.03 | 4088 | 196211 |
| Industrial/warehouse | 46.88 | 657 | 94538 | 48.13 | 1472 | 189937 |
| Commercial-improved | 42.04 | 1186 | 217092 | 49.36 | 1274 | 156753 |
| Marine/boat slips | 30.58 | 1493 | 38812 | 36.85 | 1484 | 7421 |
| Restaurant | 48.38 | 985 | 55149 | 49.58 | 1039 | 43635 |
| Church | 34.37 | 878 | 59690 | 13.26 | 2368 | 2368 |
| Land/lot loans | 46.47 | 582 | 1164 | 49.68 | 1339 | 1339 |
| Other | 40.20 | 1420 | 149429 | 40.85 | 1272 | 131896 |
| Total CRE loans, gross | 43.61 | 843 | $804684 | 47.68 | 1886 | $1839312 |

---

(1)Loan-to-value ("LTV") is determined based on latest available appraisal against current bank owned principal. Loans without an updated appraisal utilized the original transaction value.

(2)Loan balance includes deferred fees and costs.

The office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $485.9 million, or 9.9% of total loans at December 31, 2025. The office CRE loan portfolio included loans to medical tenants of $129.1 million, or 26.6% of the total office CRE loan portfolio, at December 31, 2025. The office CRE loan portfolio also included loans to government or government contractor tenants of $51.5 million, or 10.6% of the total office CRE loan portfolio for the same period. At December 31, 2025, the average loan debt-service coverage ratio on the office CRE loan portfolio was 1.7x and the average LTV was 47.55%.

The 481 loans in the office CRE portfolio at December 31, 2025 had an average loan size of $1.0 million and a median loan size of $365 thousand. LTV estimates for the office CRE portfolio at December 31, 2025 are summarized below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination.

------

---

| | | | |
|:---|:---|:---|:---|
| **LTV Range** *($ in thousands)* | **Loan Count** | **Loan Balance** | **% of Office CRE** |
| Less than or equal to 50% | 244 | $170536 | 35.0% |
| Greater than 50% and less than or equal to 60% | 73 | 114510 | 23.6 |
| Greater than 60% and less than or equal to 70% | 92 | 149203 | 30.7 |
| Greater than 70% and less than or equal to 80% | 58 | 42608 | 8.8 |
| Greater than 80% | 14 | 9083 | 1.9 |
| Total | 481 | $485940 | 100.0% |

---

There were 17 office CRE loans with balances greater than $5.0 million, totaling $166.1 million at December 31, 2025, compared to 18 office CRE loans totaling $164.5 million at December 31, 2024. The increase this portfolio segment was the result of normal amortization, the payoff of a $5.6 million loan, the change in purpose of collateral of an $11.8 million loan from office to school, and a loan opened for $25 million. Of the office CRE portfolio balance, 80.5% was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.1% was secured by properties with five stories or less. Of the office CRE loans, $30.7 million were classified as special mention or substandard at December 31, 2025. In the fourth quarter of 2025 there was a charge-off of $2.6 million related to the office CRE portfolio. There were no other office CRE portfolio charge-offs during 2025.

Nonperforming assets were $43.2 million and $28.1 million, or 0.69% and 0.45% of total assets, as of December 31, 2025 and September 30, 2025, respectively. The balance of nonperforming assets increased $15.1 million in the fourth quarter, primarily due to commercial real estate and consumer loans. When comparing December 31, 2025 to December 31, 2024, nonperforming assets increased $18.4 million, primarily due to an increase in nonaccrual loans of $19.0 million and an decrease in repossessed marine and auto loans of $502 thousand. Substandard loans, which include nonaccrual loans, accruing loans and accruing loans 90 days or more past due were $57.4 million at December 31, 2025 compared to $48.5 million at September 30, 2025 and $24.7 million at December 31, 2024. The increase was primarily due to several commercial non-owner occupied real estate loans that were downgraded during the current period. All of these loans are well secured by collateral and required minimal individual reserves as of December 31, 2025.

Total deposits increased $5.7 million from September 30, 2025 to $5.53 billion at December 31, 2025 and increased $5.5 million when compared to December 31, 2024. The increase in total deposits year-to-date was primarily due to an increase in time deposits of $85.9 million, an increase in noninterest-bearing accounts of $25.1 million, an increase in brokered deposits of $10.9 million and an increase in money market and savings accounts of $9.0 million. These increases were partially offset by a decrease in interest-bearing checking deposits of $125.5 million. Core deposits, which exclude municipal deposits, increased by $154.8 million, or 3.8%, during the same period, which was partially offset by volatility driven by a large client relationship.

Total funding, which includes customer deposits, Federal Home Loan Bank ("FHLB") advances and brokered deposits was $5.53 billion at December 31, 2025, compared to $5.58 billion at September 30, 2025. FHLB advances were $50.0 million at September 30, 2025, which was repaid in the fourth quarter of 2025. Brokered deposits were $10.9 million at December 31, 2025 and September 30, 2025. Total reciprocal deposits were $1.52 billion and $1.48 billion at December 31, 2025 and September 30, 2025, respectively.

Uninsured deposits were $937.2 million, or 16.9% of total deposits, at December 31, 2025. Uninsured deposits, excluding deposits secured with pledged collateral, were $786.5 million, or 14.2% of total deposits, at December 31, 2025. At December 31, 2025, the available liquidity was $1.42 billion, including $355.6 million in cash and cash equivalents, $1.07 billion in secured borrowing capacity at the FHLB and other correspondent banks, and $95.0 million in unsecured lines of credit.

Total stockholders' equity increased $48.8 million, or 9.0%, when compared to December 31, 2024, primarily due to current year earnings and a decrease in accumulated other comprehensive losses, partially offset by cash dividends paid. As of December 31, 2025 and 2024, the ratio of total equity to total assets was 9.42% and 8.68%, respectively, and the ratio of total tangible equity to total tangible assets<sup>(1)</sup> was 8.06% and 7.17%, respectively. The Company's tangible common equity ratio at December 31, 2025 was 8.06% compared to 7.17% at December 31, 2024. The Company's Tier 1 and Total Risk-Based Capital Ratios at December 31, 2025 were 11.15% and 13.61%, respectively.

<sup>(1)</sup> See the Reconciliation of GAAP and non-GAAP Measures tables.

------

**Review of Quarterly Financial Results** 

Net interest income was $50.4 million for the fourth quarter of 2025, compared to $48.7 million for the third quarter of 2025 and $44.0 million for the fourth quarter of 2024. The increase in net interest income when compared to the third quarter of 2025 was primarily due to an increase in interest income on deposits at other banks of $1.6 million, an increase in interest income on loans of $1.4 million and a decrease in interest expense on short-term borrowings of $394 thousand. These favorable changes were partially offset by an increase in interest expense on deposits of $815 thousand and an increase in interest expense of long-term borrowings of $763 thousand. The increase in interest expense on long-term borrowings is due to a new debt issuance of $60.0 million during the quarter, which replaced $45 million of subordinated debt that was redeemed at the end of the quarter. The increase in net interest income was $6.4 million when compared to the fourth quarter of 2024, and was primarily due to an increase in interest and fees on loans of $4.9 million and a decrease in interest expense on deposits of $3.1 million. These favorable changes were partially offset by a decrease in interest on deposits with other banks of $1.3 million, an increase in interest expense on short-term borrowings of $246 thousand, and an increase in interest expense on long-term borrowings of $151 thousand.

The Company's NIM increased to 3.43% for the fourth quarter of 2025 from 3.42% for the third quarter of 2025, primarily due to higher core interest income. NIM excluding accretion increased for the comparable periods from 3.22% to 3.24%. Excluding accretion interest income, loan yields increased 2 bps and funding costs decreased 4 bps for the comparable periods. Interest expense for the fourth quarter of 2025 increased $1.2 million compared to the third quarter of 2025, primarily due to write-offs of merger-related interest rate marks on certain deposit products. The Company's NIM increased to 3.43% for the fourth quarter of 2025 from 3.03% for the fourth quarter of 2024. The Company's average interest-earning asset yield increased to 5.45% for the fourth quarter of 2025 from 5.25% for the fourth quarter of 2024, while the average cost of funds decreased 20 bps to 2.11% from 2.31% for the same periods.

The provision for credit losses was $2.8 million for the three months ended December 31, 2025. The comparable amounts were $3.0 million for the three months ended September 30, 2025 and $780 thousand for the three months ended December 31, 2024. The decrease in the provision for credit losses for the fourth quarter of 2025 compared to the third quarter of 2025 was due to lower reserves resulting from favorable economic conditions, partially offset by charge-offs driven by a large commercial real estate loan write-down. Coverage ratios decreased to 1.20% at December 31, 2025 from 1.22% at September 30, 2025, and decreased from 1.21% at December 31, 2024. Net charge-offs increased to $3.6 million for the fourth quarter of 2025 compared to $1.8 million for the third quarter of 2025 and $1.3 million for the fourth quarter of 2024. The increase was driven by a large commercial real estate write-down in the fourth quarter 2025.

Total noninterest income for the fourth quarter of 2025 was $8.7 million, an increase of $1.0 million from $7.7 million for the third quarter of 2025, and a decrease of $186 thousand from $8.9 million for the fourth quarter of 2024. When comparing the fourth quarter of 2025 to the third quarter of 2025, the increase in noninterest income was primarily due to a one-time receipt of insurance proceeds. Comparing the fourth quarter of 2025 to the fourth quarter of 2024, the decrease in noninterest income was primarily due a decrease in mortgage banking revenue, partially offset by an increase in trust and investment fee income, an increase in interchange credits and the absence of the one-time gain on sale of real property in 2024.

Total noninterest expense of $35.5 million for the fourth quarter of 2025 increased $1.1 million compared to $34.4 million for the third quarter of 2025, and increased $1.6 million compared to $33.9 million for the fourth quarter of 2024. The increase from the third quarter of 2025 was primarily due to higher professional service fees of $248 thousand and other noninterest expense of $689 thousand related to writedown of repossessed assets. The increase from the fourth quarter of 2024 was primarily due to higher salaries and benefits expense of $1.4 million and higher software and data processing costs of $685 thousand, partially offset by lower amortization of other intangible assets of $298 thousand and lower legal and professional services of $284 thousand.

The efficiency ratio for the fourth quarter of 2025 when compared to the third quarter of 2025 and the fourth quarter of 2024 was 60.06%, 61.00% and 64.21%, respectively. Non-GAAP efficiency ratios<sup>(1)</sup> for the same periods were 56.59%, 57.30% and 60.28%, respectively.

<sup>(1)</sup> See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Review of Full-Year Financial Results**

Net interest income for the year ended December 31, 2025 was $192.4 million, an increase of $21.8 million, or 12.8%, when compared to the year ended December 31, 2024. The increase in net interest income was primarily due to an increase in total interest income of $14.7 million, or 5.0%, which included an increase in interest and fees on loans of $11.0 million, or 4.1%, an increase in interest on deposits with other banks of $2.8 million, or 44.6%, and an increase in interest income on taxable investments of $934 thousand. The increase in interest and fees on loans was primarily due to the increase in the average balance of loans of $130.3 million, or 2.8%. The decrease in total interest expense was primarily due to a decrease in interest on deposits of $6.1 million and the decrease in interest expense on borrowings of $1.0 million was as a result of lower average FHLB advances and associated rates during the year.

The Company's NIM increased from 3.10% for the year ended December 31, 2024 to 3.36% for the year ended December 31, 2025. Margins were higher due to a $211.0 million increase in interest-earning asset balances and a 5 basis point increase in interest-earning asset yields. These positive movements were coupled with lower-cost interest-bearing deposits. The increase in the average balances of interest-bearing deposits of $49.9 million was offset by a 20 basis point decrease in the associated rates paid, as well as a $27.2 million decrease in the average balance of FHLB advances and a 44 basis point decrease in the associated rates paid. Net accretion income impacted net interest margin by 21 basis points and 27 basis points for the year ended December 31, 2025 and 2024, respectively, which resulted in NIM excluding accretion of 3.15% and 2.83% for the same periods.

The provision for credit losses for the year ended December 31, 2025 and 2024 was $8.4 million and $4.7 million, respectively. The increase in the provision for credit losses during 2025 was due to higher reserves related to growth in the loan portfolio and higher charge-offs, partially offset by an improved economic outlook. Net charge-offs for the year ended December 31, 2025 were $6.6 million compared to $4.1 million for the year ended December 31, 2024.

Total noninterest income for the year ended December 31, 2025 increased $1.5 million, or 4.9%, when compared to the same period in 2024. The increase was primarily due to a $344 thousand increase in interchange credits, a $338 thousand increase in trust and investment fee income, and a $622 thousand increase in other noninterest income.

Total noninterest expense for the year ended December 31, 2025 decreased $219 thousand, or 0.2%, when compared to the same period in 2024. Noninterest expense line items decreased primarily due to the absence of the $4.7 million credit card fraud event that occurred in 2024 and lower amortization of intangible assets of $1.2 million, which was partially offset by higher salaries and employee benefit expenses of $4.8 million and a $2.4 million increase in software and data processing expense in year ended December 31, 2025.

The efficiency ratio for the year ended December 31, 2025 was 61.33% compared to 68.55% for the year ended December 31, 2024. Non-GAAP efficiency ratios for the same periods were 57.43% and 61.43%, respectively. The net operating expense ratio, which is noninterest expense less noninterest income divided by average assets, was 1.73% for the year ended December 31, 2025, compared to 1.82% for the year ended December 31, 2024. The non-GAAP net operating expense ratio<sup>(1)</sup>, which excludes core deposit intangible amortization and non-recurring activity, was 1.59% for the year ended December 31, 2025, compared to 1.58% for the year ended December 31, 2024.

**Dividend Schedule**

Beginning this quarter, the Company's Board of Directors will consider regular dividend declarations in February, May, August and November, with dividends, when declared, payable in March, June, September and December, which is one month later than in the past.

<sup>(1)</sup> See the Reconciliation of GAAP and non-GAAP Measures tables.

------

**Shore Bancshares Information**

Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the parent company of Shore United Bank, N.A. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank, N.A. Additional information is available at www.shorebancshares.com.

**Forward-Looking Statements**

This news release may contain statements relating to future events or our future results that are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "intend," "potential," "target," "plan," "goal," or words of similar meaning, or future or conditional verbs such as "could," "would," or "may." Forward-looking statements include statements of our goals, intentions, or expectations; statements regarding our business plans, prospects, growth, or operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. The factors that could cause actual results to differ materially from those expressed in such forward-looking statements include, but are not limited to, the following: local, regional and global business, economic and political conditions and geopolitical events; changes in laws, rules and regulatory requirements, including capital and liquidity requirements; changes in consumer and business confidence, investor sentiment, and consumer spending and savings behavior; changes in the level of inflation; changes in monetary and fiscal policies; changes in trade policies, including the imposition of tariffs and retaliatory responses; changes in the demand for loans, deposits, and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; changes in FDIC assessments; changes in the interest rate environment; changes in income tax laws and regulations; our ability to manage effectively our capital and liquidity; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; changes in credit ratings assigned to us; competitive pressures among financial services companies; technology changes instituted by us, our counterparties, or competitors; the ability to attract, develop, and retain qualified employees; change in federal government enforcement of federal laws affecting the cannabis industry; our ability to maintain the security of our financial, accounting, technology, data processing and other operational systems and facilities; our ability to effectively defend ourselves against cyber-attacks and other attempts by unauthorized parties to access our information or information of our customers or to disrupt our systems; our ability to withstand disruptions that may be caused by any failure of our operational systems or those of third parties; our ability to control expenses; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; and the impact of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond our control. The Company provides greater detail regarding some of these factors in its Annual Report on Form 10-K for the year ended December 31, 2024, including in the Risk Factors section of that report, and in its other SEC reports. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

**For further information contact: Charles S. Cullum, Executive Vice President, and Chief Financial Officer, (410) 260-2042** 

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter and Year (Unaudited)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q4 2025 vs. | Q4 2025 vs. | Q4 2025 vs. | Q4 2025 vs. | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2025 | Q3 2025 | Q4 2024 | Q4 2024 | **2025** | 2024 | 2025 vs. 2024 | 2025 vs. 2024 |
| PROFITABILITY FOR THE PERIOD |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable-equivalent net interest income | $**50533** | $48738 | $47333 | $46110 | $44093 | 3.7 | % | 14.6 | % | $**192712** | $170874 | 12.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Taxable-equivalent adjustment | **92** | 83 | 81 | 81 | 82 | 10.8 |  | 12.2 |  | **335** | 325 | 3.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | **50441** | 48655 | 47252 | 46029 | 44011 | 3.7 |  | 14.6 |  | **192377** | 170549 | 12.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | **2827** | 2992 | 1528 | 1028 | 780 | (5.5) |  | 262.4 |  | **8375** | 4738 | 76.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest income | **8667** | 7701 | 9318 | 7003 | 8853 | 12.5 |  | (2.1) |  | **32688** | 31147 | 4.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest expense | **35499** | 34379 | 34410 | 33747 | 33943 | 3.3 |  | 4.6 |  | **138035** | 138254 | (0.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | **20782** | 18985 | 20632 | 18257 | 18141 | 9.5 |  | 14.6 |  | **78655** | 58704 | 34.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | **4895** | 4637 | 5125 | 4493 | 4859 | 5.6 |  | 0.7 |  | **19149** | 14815 | 29.3 |  |
| NET INCOME | $**15887** | $14348 | $15507 | $13764 | $13282 | 10.7 |  | 19.6 |  | $**59506** | $43889 | 35.6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income – non-GAAP<sup>(1)</sup> | $17416 | $15889 | $17215 | $15481 | $14636 | 9.6 | % | 19.0 | % | $66004 | $54348 | 21.4 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-tax pre-provision net income – non-GAAP<sup>(1)</sup> | $23609 | $21977 | $22160 | $19285 | $18921 | 7.4 | % | 24.8 | % | $87030 | $63442 | 37.2 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average assets – GAAP | **1.02%** | 0.95% | 1.03% | 0.91% | 0.86% | 7 | bp | 16 | bp | **0.98%** | 0.74% | 24 | bp |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted return on average assets **–** non-GAAP<sup>(1)</sup> | **1.11** | 1.05 | 1.15 | 1.02 | 0.94 | 6 |  | 17 |  | **1.08** | 0.92 | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average common equity – GAAP | **10.79** | 9.96 | 11.13 | 10.20 | 9.82 | 83 |  | 97 |  | **10.52** | 8.35 | 217 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average tangible common equity – non-GAAP<sup>(1)</sup> | **14.10** | 13.27 | 14.99 | 14.05 | 13.67 | 83 |  | 43 |  | **14.09** | 12.21 | 188 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest spread | **2.48** | 2.46 | 2.39 | 2.30 | 2.02 | 2 |  | 46 |  | **2.40** | 2.14 | 26 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest margin | **3.43** | 3.42 | 3.35 | 3.24 | 3.03 | 1 |  | 40 |  | **3.36** | 3.10 | 26 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Efficiency ratio – GAAP | **60.06** | 61.00 | 60.83 | 63.64 | 64.21 | (94) |  | (415) |  | **61.33** | 68.55 | (722) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Efficiency ratio – non-GAAP<sup>(1)</sup> | **56.59** | 57.30 | 56.73 | 59.25 | 60.28 | (71) |  | (369) |  | **57.43** | 61.43 | (400) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest income to average assets | **0.55** | 0.51 | 0.62 | 0.46 | 0.57 | 4 |  | (2) |  | **0.54** | 0.53 | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest expense to average assets | **2.27** | 2.27 | 2.29 | 2.23 | 2.19 |  |  | 8 |  | **2.26** | 2.34 | (8) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating expense to average assets – GAAP | **1.72** | 1.76 | 1.67 | 1.77 | 1.62 | (4) |  | 10 |  | **1.73** | 1.82 | (9) |  |
| &nbsp;&nbsp;Net operating expense to average assets – non-GAAP<sup>(1)</sup> | **1.59** | 1.62 | 1.52 | 1.62 | 1.50 | (3) |  | 9 |  | **1.59** | 1.58 | 1 |  |
| PER SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic net income per common share | $**0.48** | $0.43 | $0.46 | $0.41 | $0.40 | 11.6 | % | 20.0 | % | $**1.78** | $1.32 | 34.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted net income per common share | **0.48** | 0.43 | 0.46 | 0.41 | 0.40 | 11.6 |  | 20.0 |  | **1.78** | 1.32 | 34.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid per common share | **0.12** | 0.12 | 0.12 | 0.12 | 0.12 |  |  |  |  | **0.48** | 0.48 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Book value per common share at period end | **17.65** | 17.27 | 16.94 | 16.55 | 16.23 | 2.2 |  | 8.7 |  | **17.65** | 16.23 | 8.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible book value per common share at period end – non-GAAP<sup>(1)</sup> | **14.87** | 14.43 | 14.03 | 13.58 | 13.19 | 3.0 |  | 12.7 |  | **14.87** | 13.19 | 12.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common share market value at period end | **17.68** | 16.41 | 15.72 | 13.54 | 15.85 | 7.7 |  | 11.5 |  | **17.68** | 15.85 | 11.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common share intraday price: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High | $**19.22** | $17.67 | $15.88 | $17.24 | $17.61 | 8.8 | % | 9.1 | % | **19.22** | 17.61 | 9.1 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Low | **14.93** | 14.96 | 11.47 | 13.15 | 13.21 | (0.2) |  | 13.0 |  | **11.47** | 10.06 | 14.0 |  |

---

____________________________________

(1)See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter and Year (Unaudited) – Continued

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q4 2025 vs. | Q4 2025 vs. | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2025 | Q4 2024 | **2025** | 2024 | 2025 vs. 2024 |
| AVERAGE BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | $**4909619** | $4884003 | $4833558 | $4784991 | $4796245 | 0.5% | 2.4% | $**4853469** | $4723215 | 2.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | **653639** | 664535 | 683680 | 664655 | 655610 | (1.6) | (0.3) | **666591** | 668279 | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Earning assets | **5843816** | 5658981 | 5660409 | 5768080 | 5798454 | 3.3 | 0.8 | **5731919** | 5520904 | 3.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets | **6206753** | 6020574 | 6021385 | 6129241 | 6163497 | 3.1 | 0.7 | **6094659** | 5896931 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | **5452082** | 5280252 | 5297567 | 5417514 | 5461583 | 3.3 | (0.2) | **5361893** | 5188812 | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB advances | **20108** | 52391 | 50000 | 50000 | 50000 | (61.6) | (59.8) | **43068** | 70298 | (38.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt & TRUPS | **104752** | 74363 | 74102 | 73840 | 73578 | 40.9 | 42.4 | **81828** | 72907 | 12.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholders' equity | **584209** | 571247 | 558952 | 547443 | 538184 | 2.3 | 8.6 | **565579** | 525742 | 7.6 |
| CREDIT QUALITY DATA |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | $**3619** | $1825 | $649 | $554 | $1333 | 98.3% | 171.5% | $**6647** | $4072 | 63.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | $**39960** | $24378 | $16782 | $15402 | $21008 | 63.9% | 90.2% |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans 90 days past due and still accruing | **255** | 153 | 215 | 894 | 294 | 66.7 | (13.3) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other real estate owned and repossessed property | **2992** | 3552 | 2636 | 2608 | 3494 | (15.8) | (14.4) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $**43207** | $28083 | $19633 | $18904 | $24796 | 53.9 | 74.2 |  |  |  |

---

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter and Year (Unaudited) – Continued

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q4 2025 vs. | Q4 2025 vs. | Q4 2025 vs. | Q4 2025 vs. | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2025 | Q3 2025 | Q4 2024 | Q4 2024 | **2025** | 2024 | 2025 vs. 2024 | 2025 vs. 2024 |
| CAPITAL AND CREDIT QUALITY RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end equity to assets – GAAP | **9.42%** | 9.19% | 9.36% | 8.94% | 8.68% | 23 | bp | 74 | bp |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end tangible equity to tangible assets – non-GAAP<sup>(1)</sup> | **8.06** | 7.80 | 7.88 | 7.46 | 7.17 | 26 |  | 89 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Annualized net charge-offs to average loans | **0.29%** | 0.15% | 0.05% | 0.05% | 0.11% | 14 | bp | 18 | bp | **0.14%** | 0.09% | 5 | bp |
| Allowance for credit losses as a percent of: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end loans | **1.20%** | 1.22% | 1.21% | 1.21% | 1.21% | (2) | bp | (1) | bp |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end nonaccrual loans | **147.24** | 244.29 | 348.49 | 376.85 | 275.66 | (9705) |  | (12842) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end nonperforming assets | **136.17** | 212.06 | 297.88 | 307.04 | 233.55 | (7589) |  | (9738) |  |  |  |  |  |
| As a percent of total loans at period-end: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | **0.82%** | 0.50% | 0.35% | 0.32% | 0.44% | 32 | bp | 38 | bp |  |  |  |  |
| As a percent of total loans, other real estate owned and repossessed property at period-end: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets | **0.88%** | 0.57% | 0.41% | 0.40% | 0.52% | 31 | bp | 36 | bp |  |  |  |  |
| As a percent of total assets at period-end: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | **0.64%** | 0.39% | 0.28% | 0.25% | 0.34% | 25 | bp | 30 | bp |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets | **0.69** | 0.45 | 0.33 | 0.31 | 0.40 | 24 |  | 29 |  |  |  |  |  |

---

____________________________________

(1)See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter and Year (Unaudited) – Continued

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q4 2025 vs. | Q4 2025 vs. | Q4 2025 vs. | Q4 2025 vs. |
| *($ in thousands)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2025 | Q3 2025 | Q4 2024 | Q4 2024 |
| **The Company Amounts** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital | $**510729** | $496709 | $483947 | $470223 | $458258 | 2.82 | % | 11.45 | % |
| Tier 1 Capital | **540897** | 526794 | 513952 | 500149 | 488105 | 2.68 |  | 10.82 |  |
| Total Capital | **660451** | 627055 | 618793 | 603928 | 591228 | 5.33 |  | 11.71 |  |
| Risk-Weighted Assets | **4852573** | 4867237 | 4890679 | 4823833 | 4852564 | (0.30) |  |  |  |
| **The Company Ratios** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital to RWA | **10.52%** | 10.21% | 9.90% | 9.75% | 9.44% | 31 | bp | 108 | bp |
| Tier 1 Capital to RWA | **11.15** | 10.82 | 10.51 | 10.37 | 10.06 | 33 |  | 109 |  |
| Total Capital to RWA | **13.61** | 12.88 | 12.65 | 12.52 | 12.18 | 73 |  | 143 |  |
| Tier 1 Capital to AA (Leverage) | **8.82** | 8.86 | 8.65 | 8.27 | 8.02 | (4) |  | 80 |  |
| **The Bank Amounts** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital | $**569183** | $559212 | $546630 | $534824 | $521453 | 1.78 | % | 9.15 | % |
| Tier 1 Capital | **569183** | 559212 | 546630 | 534824 | 521453 | 1.78 |  | 9.15 |  |
| Total Capital | **629746** | 620034 | 607235 | 594550 | 580706 | 1.57 |  | 8.44 |  |
| Risk-Weighted Assets | **4844639** | 4864871 | 4888558 | 4821975 | 4851903 | (0.42) |  | (0.15) |  |
| **The Bank Ratios** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital to RWA | **11.75%** | 11.49% | 11.18% | 11.09% | 10.75% | 26 | bp | 100 | bp |
| Tier 1 Capital to RWA | **11.75** | 11.49 | 11.18 | 11.09 | 10.75 | 26 |  | 100 |  |
| Total Capital to RWA | **13.00** | 12.75 | 12.42 | 12.33 | 11.97 | 25 |  | 103 |  |
| Tier 1 Capital to AA (Leverage) | **9.30** | 9.41 | 9.20 | 8.84 | 8.58 | (11) |  | 72 |  |

---

------

**Shore Bancshares, Inc.**

Consolidated Balance Sheets

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | December 31, 2025 | December 31, 2025 |
| | | | | | | compared to | compared to |
| *($ in thousands, except per share data)* | **December 31, 2025** | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 |
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) |  |  |  |
| ASSETS |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $**50164** | $62289 | $54512 | $46886 | $44008 | (19.5)% | 14.0% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with other banks | **305402** | 354224 | 130472 | 342120 | 415843 | (13.8) | (26.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | **355566** | 416513 | 184984 | 389006 | 459851 | (14.6) | (22.7) |
| &nbsp;&nbsp;&nbsp;Investment securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available for sale, at fair value | **220358** | 181720 | 187679 | 179148 | 149212 | 21.3 | 47.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held to maturity, net of allowance for credit losses | **414827** | 433440 | 459246 | 469572 | 481077 | (4.3) | (13.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities, at fair value | **6186** | 6113 | 6010 | 5945 | 5814 | 1.2 | 6.4 |
| &nbsp;&nbsp;&nbsp;Restricted securities, at cost | **17989** | 20364 | 20412 | 20411 | 20253 | (11.7) | (11.2) |
| &nbsp;&nbsp;&nbsp;Loans held for sale, at fair value | **32540** | 21500 | 34319 | 15717 | 19606 | 51.3 | 66.0 |
| &nbsp;&nbsp;&nbsp;Loans held for investment | **4900302** | 4882969 | 4827628 | 4777489 | 4771988 | 0.4 | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: allowance for credit losses | **(58836)** | (59554) | (58483) | (58042) | (57910) | (1.2) | 1.6 |
| &nbsp;&nbsp;&nbsp;Loans, net | **4841466** | 4823415 | 4769145 | 4719447 | 4714078 | 0.4 | 2.7 |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | **80168** | 80812 | 81426 | 81692 | 81806 | (0.8) | (2.0) |
| &nbsp;&nbsp;&nbsp;Goodwill | **63266** | 63266 | 63266 | 63266 | 63266 |  |  |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | **29722** | 31722 | 33761 | 36033 | 38311 | (6.3) | (22.4) |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | **10523** | 10896 | 11052 | 11709 | 11385 | (3.4) | (7.6) |
| &nbsp;&nbsp;&nbsp;Cash surrender value on life insurance | **105839** | 105055 | 105860 | 105040 | 104421 | 0.7 | 1.4 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | **18551** | 20408 | 19821 | 20555 | 19570 | (9.1) | (5.2) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | **29825** | 30328 | 30972 | 31428 | 31857 | (1.7) | (6.4) |
| &nbsp;&nbsp;&nbsp;Other assets | **31992** | 32927 | 29921 | 27594 | 30256 | (2.8) | 5.7 |
| TOTAL ASSETS | $**6258818** | $6278479 | $6037874 | $6176563 | $6230763 | (0.3) | 0.5 |

---

------

**Shore Bancshares, Inc.**

Consolidated Balance Sheets – Continued

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | December 31, 2025 | December 31, 2025 |
| | | | | | | compared to | compared to |
| *($ in thousands, except per share data)* | **December 31, 2025** | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 |
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) |  |  |  |
| LIABILITIES |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | $**1587953** | $1594212 | $1575120 | $1565017 | $1562815 | (0.4)% | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing checking | **852585** | 851963 | 763309 | 852480 | 978076 | 0.1 | (12.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market and savings | **1814928** | 1790001 | 1691438 | 1800529 | 1805884 | 1.4 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | **1267487** | 1281132 | 1273285 | 1242319 | 1181561 | (1.1) | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposits | **10911** | 10857 | 10806 |  |  | 0.5 |  |
| &nbsp;&nbsp;&nbsp;Total deposits | **5533864** | 5528165 | 5313958 | 5460345 | 5528336 | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;FHLB advances | **—** | 50000 | 50000 | 50000 | 50000 | (100.0) | (100.0) |
| &nbsp;&nbsp;&nbsp;Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS"), net | **30168** | 30085 | 30005 | 29926 | 29847 | 0.3 | 1.1 |
| &nbsp;&nbsp;&nbsp;Subordinated debt, net | **58893** | 44409 | 44236 | 44053 | 43870 | 32.6 | 34.2 |
| &nbsp;&nbsp;&nbsp;Total borrowings | **89061** | 124494 | 124241 | 123979 | 123717 | (28.5) | (28.0) |
| &nbsp;&nbsp;&nbsp;Lease liabilities | **11027** | 11395 | 11541 | 12183 | 11844 | (3.2) | (6.9) |
| &nbsp;&nbsp;&nbsp;Other liabilities | **34993** | 37218 | 22940 | 27586 | 25800 | (6.0) | 35.6 |
| TOTAL LIABILITIES | **5668945** | 5701272 | 5472680 | 5624093 | 5689697 | (0.6) | (0.4) |
| STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value per share | **334** | 334 | 334 | 333 | 333 |  | 0.3 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | **360554** | 359939 | 359063 | 358572 | 358112 | 0.2 | 0.7 |
| &nbsp;&nbsp;&nbsp;Retained earnings | **233578** | 221693 | 211400 | 199898 | 190166 | 5.4 | 22.8 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | **(4593)** | (4759) | (5603) | (6333) | (7545) | (3.5) | (39.1) |
| TOTAL STOCKHOLDERS' EQUITY | **589873** | 577207 | 565194 | 552470 | 541066 | 2.2 | 9.0 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $**6258818** | $6278479 | $6037874 | $6176563 | $6230763 | (0.3) | 0.5 |
| Shares of common stock issued and outstanding | **33413503** | 33421672 | 33374265 | 33374265 | 33332177 | 0.0 | 0.2 |
| Book value per common share | $**17.65** | $17.27 | $16.94 | $16.55 | $16.23 | 2.2 | 8.7 |

---

------

**Shore Bancshares, Inc.**

Consolidated Statements of Income By Quarter and Year

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q4 2025 vs. | Q4 2025 vs. | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2025 | Q4 2024 | **2025** | 2024 | % Change |
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |  |  | (unaudited) |  |  |
| INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and fees on loans | $**72331** | $70930 | $69695 | $67647 | $67428 | 2.0% | 7.3% | $**280604** | $269631 | 4.1% |
| &nbsp;&nbsp;&nbsp;Interest and dividends on taxable investment securities | **5010** | 5036 | 5331 | 5001 | 4833 | (0.5) | 3.7 | **20378** | 19444 | 4.8 |
| &nbsp;&nbsp;&nbsp;Interest and dividends on tax-exempt investment securities | **6** | 6 | 6 | 6 | 6 |  |  | **24** | 24 |  |
| &nbsp;&nbsp;&nbsp;Interest on deposits with other banks | **2810** | 1215 | 1588 | 3409 | 4137 | 131.3 | (32.1) | **9022** | 6239 | 44.6 |
| Total interest income | **80157** | 77187 | 76620 | 76063 | 76404 | 3.8 | 4.9 | **310028** | 295338 | 5.0 |
| INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits | **27289** | 26474 | 27369 | 28070 | 30363 | 3.1 | (10.1) | **109203** | 115301 | (5.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on short-term borrowings | **246** | 640 | 605 | 598 |  | (61.6) |  | **2089** | 2131 | (2.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on long-term borrowings | **2181** | 1418 | 1394 | 1366 | 2030 | 53.8 | 7.4 | **6359** | 7357 | (13.6) |
| Total interest expense | **29716** | 28532 | 29368 | 30034 | 32393 | 4.1 | (8.3) | **117651** | 124789 | (5.7) |
| NET INTEREST INCOME | **50441** | 48655 | 47252 | 46029 | 44011 | 3.7 | 14.6 | **192377** | 170549 | 12.8 |
| Provision for credit losses | **2827** | 2992 | 1528 | 1028 | 780 | (5.5) | 262.4 | **8375** | 4738 | 76.8 |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | **47614** | 45663 | 45724 | 45001 | 43231 | 4.3 | 10.1 | **184002** | 165811 | 11.0 |
| NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | **1663** | 1599 | 1519 | 1514 | 1606 | 4.0 | 3.5 | **6295** | 6149 | 2.4 |
| &nbsp;&nbsp;&nbsp;Trust and investment fee income | **1042** | 898 | 942 | 823 | 857 | 16.0 | 21.6 | **3705** | 3367 | 10.0 |
| &nbsp;&nbsp;&nbsp;Mortgage banking revenue | **1181** | 1278 | 2379 | 1240 | 2026 | (7.6) | (41.7) | **6078** | 5987 | 1.5 |
| &nbsp;&nbsp;&nbsp;Interchange credits | **1862** | 1858 | 1788 | 1577 | 1726 | 0.2 | 7.9 | **7085** | 6741 | 5.1 |
| &nbsp;&nbsp;&nbsp;Other noninterest income | **2919** | 2068 | 2690 | 1849 | 2638 | 41.2 | 10.7 | **9525** | 8903 | 7.0 |
| Total noninterest income | $**8667** | $7701 | $9318 | $7003 | $8853 | 12.5 | (2.1) | $**32688** | $31147 | 4.9 |

---

------

**Shore Bancshares, Inc.**

Consolidated Statements of Income By Quarter and Year – Continued

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q4 2025 vs. | Q4 2025 vs. | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2025 | Q4 2024 | **2025** | 2024 | % Change |
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |  |  | (unaudited) |  |  |
| NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | $**18582** | $18642 | $17742 | $16440 | $17209 | (0.3)% | 8.0% | $**71406** | $66579 | 7.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy expense | **2461** | 2406 | 2472 | 2538 | 2474 | 2.3 | (0.5) | **9877** | 9706 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture and equipment expense | **792** | 892 | 796 | 853 | 760 | (11.2) | 4.2 | **3334** | 3441 | (3.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Software and data processing | **5197** | 5155 | 4819 | 4691 | 4512 | 0.8 | 15.2 | **19862** | 17508 | 13.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of other intangible assets | **2000** | 2039 | 2272 | 2278 | 2298 | (1.9) | (13.0) | **8589** | 9779 | (12.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal and professional fees | **1237** | 989 | 1225 | 1613 | 1521 | 25.1 | (18.7) | **5064** | 5836 | (13.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;FDIC insurance premium expense | **845** | 794 | 1023 | 1091 | 1013 | 6.4 | (16.6) | **3753** | 4413 | (15.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing and advertising | **367** | 315 | 384 | 254 | 291 | 16.5 | 26.1 | **1320** | 1319 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fraud losses | **227** | 45 | 83 | 105 | 98 | 404.4 | 131.6 | **460** | 4998 | (90.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest expense | **3791** | 3102 | 3594 | 3884 | 3767 | 22.2 | 0.6 | **14370** | 14675 | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | **35499** | 34379 | 34410 | 33747 | 33943 | 3.3 | 4.6 | **138035** | 138254 | (0.2) |
| Income before income taxes | **20782** | 18985 | 20632 | 18257 | 18141 | 9.5 | 14.6 | **78655** | 58704 | 34.0 |
| Income tax expense | **4895** | 4637 | 5125 | 4493 | 4859 | 5.6 | 0.7 | **19149** | 14815 | 29.3 |
| NET INCOME | $**15887** | $14348 | $15507 | $13764 | $13282 | 10.7 | 19.6 | $**59506** | $43889 | 35.6 |
| Weighted average shares outstanding – basic | **33426198** | 33419291 | 33374265 | 33350869 | 33327243 | —% | 0.3% | **33392817** | 33267328 | 0.4% |
| Weighted average shares outstanding – diluted | **33446103** | 33435862 | 33388013 | 33375318 | 33363612 | 0.0% | 0.2% | **33407155** | 33285156 | 0.4% |
| Basic net income per common share | $**0.48** | $0.43 | $0.46 | $0.41 | $0.40 | 11.6% | 20.0% | $**1.78** | $1.32 | 34.8% |
| Diluted net income per common share | $**0.48** | $0.43 | $0.46 | $0.41 | $0.40 | 11.6% | 20.0% | $**1.78** | $1.32 | 34.8% |
| Dividends paid per common share | $**0.12** | $0.12 | $0.12 | $0.12 | $0.12 | —% | —% | $**0.48** | $0.48 | —% |

---

------

**Shore Bancshares, Inc.**

Consolidated Average Balance Sheets (Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | September 30, 2025 | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| *($ in thousands)* | **Average Balance** | **Interest** | **Yield/Rate** | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate |
| **Earning assets** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loans<sup>(1), (2), (3)</sup> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $**2624581** | $**38928** | **5.88%** | $2615409 | $38077 | 5.78% | $2551903 | $36036 | 5.62% |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | **1442055** | **19548** | **5.42** | 1407076 | 19711 | 5.60 | 1358066 | 18142 | 5.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction | **343796** | **5740** | **6.62** | 347574 | 5848 | 6.68 | 336094 | 5304 | 6.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | **219874** | **4337** | **7.83** | 219002 | 3380 | 6.12 | 229676 | 3792 | 6.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | **274715** | **3726** | **5.38** | 289729 | 3877 | 5.31 | 313686 | 4080 | 5.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit cards | **4598** | **142** | **12.25** | 5213 | 118 | 8.98 | 6820 | 154 | 8.98 |
| Total loans | **4909619** | **72421** | **5.85** | 4884003 | 71011 | 5.77 | 4796245 | 67508 | 5.60 |
| Investment securities |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxable | **652990** | **5010** | **3.07** | 663884 | 5036 | 3.03 | 654955 | 4833 | 2.95 |
| &nbsp;&nbsp;Tax-exempt<sup>(1)</sup> | **649** | **8** | **4.93** | 651 | 8 | 4.92 | 655 | 8 | 4.89 |
| Interest-bearing deposits | **280558** | **2810** | **3.97** | 110443 | 1215 | 4.36 | 346599 | 4137 | 4.75 |
| **Total earning assets** | **5843816** | **80249** | **5.45** | 5658981 | 77270 | 5.42 | 5798454 | 76486 | 5.25 |
| Cash and due from banks | **51611** |  |  | 49405 |  |  | 43444 |  |  |
| Other assets | **371205** |  |  | 370952 |  |  | 380321 |  |  |
| Allowance for credit losses | **(59879)** |  |  | (58764) |  |  | (58722) |  |  |
| **Total assets** | $**6206753** |  |  | $6020574 |  |  | $6163497 |  |  |

---

------

**Shore Bancshares, Inc.**

Consolidated Average Balance Sheets (Unaudited) – Continued

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | September 30, 2025 | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| *($ in thousands)* | **Average Balance** | **Interest** | **Yield/Rate** | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| Interest-bearing checking | $**768769** | $**5386** | **2.78%** | $689906 | $5157 | 2.97% | $901764 | $7898 | 3.48% |
| Money market and savings deposits | **1784972** | **9373** | **2.08** | 1714161 | 9277 | 2.15 | 1733934 | 10331 | 2.37 |
| Time deposits | **1277732** | **12425** | **3.86** | 1277403 | 11935 | 3.71 | 1232480 | 12134 | 3.92 |
| Brokered deposits | **10942** | **105** | **3.81** | 10891 | 105 | 3.82 |  |  |  |
| Interest-bearing deposits<sup>(4)</sup> | **3842415** | **27289** | **2.82** | 3692361 | 26474 | 2.84 | 3868178 | 30363 | 3.12 |
| FHLB advances | **20108** | **246** | **4.85** | 52391 | 640 | 4.85 | 50000 | 618 | 4.92 |
| Subordinated debt and guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS")<sup>(4)</sup> | **104752** | **2181** | **8.26** | 74363 | 1418 | 7.57 | 73578 | 1412 | 7.63 |
| **Total interest-bearing liabilities** | **3967275** | **29716** | **2.97** | 3819115 | 28532 | 2.96 | 3991756 | 32393 | 3.23 |
| Noninterest-bearing deposits | **1609667** |  |  | 1587891 |  |  | 1593405 |  |  |
| Accrued expenses and other liabilities | **45602** |  |  | 42321 |  |  | 40152 |  |  |
| Stockholders' equity | **584209** |  |  | 571247 |  |  | 538184 |  |  |
| **Total liabilities and stockholders' equity** | $**6206753** |  |  | $6020574 |  |  | $6163497 |  |  |
| Net interest spread |  |  | **2.48%** |  |  | 2.46% |  |  | 2.02% |
| Net interest margin |  |  | **3.43** |  |  | 3.42 |  |  | 3.03 |
| Net interest margin excluding accretion<sup>(3)</sup> |  |  | **3.24** |  |  | 3.22 |  |  | 2.85 |
| Cost of funds |  |  | **2.11** |  |  | 2.09 |  |  | 2.31 |
| Cost of deposits |  |  | **1.99** |  |  | 1.99 |  |  | 2.21 |
| Cost of debt |  |  | **7.71** |  |  | 6.44 |  |  | 6.54 |

---

____________________________________

(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.

(2) Average loan balances include nonaccrual loans.

(3) Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $4.1 million, $3.3 million and $3.2 million of accretion interest on loans for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.

(4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were $1.2 million, $280 thousand and $412 thousand of amortization of deposit discounts and $171 thousand, $232 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.

------

**Shore Bancshares, Inc.**

Consolidated Average Balance Sheets (Unaudited) – Continued

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| *($ in thousands)* | **Average Balance** | **Interest** | **Yield/Rate** | Average Balance | Interest | Yield/Rate |
| **Earning assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;Loans<sup>(1), (2), (3)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $**2588913** | $**150171** | **5.80%** | $2528961 | $144155 | 5.70% |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | **1394073** | **76708** | **5.50** | 1318500 | 72636 | 5.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction | **349097** | **22809** | **6.53** | 322978 | 19917 | 6.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | **223949** | **15081** | **6.73** | 220699 | 15625 | 7.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | **291789** | **15697** | **5.38** | 324633 | 16923 | 5.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit cards | **5648** | **467** | **8.27** | 7444 | 694 | 9.32 |
| Total loans | **4853469** | **280933** | **5.79** | 4723215 | 269950 | 5.72 |
| Investment securities |  |  |  |  |  |  |
| &nbsp;&nbsp;Taxable | **665940** | **20378** | **3.06** | 667622 | 19444 | 2.91 |
| &nbsp;&nbsp;Tax-exempt<sup>(1)</sup> | **651** | **30** | **4.61** | 657 | 30 | 4.57 |
| Interest-bearing deposits | **211859** | **9022** | **4.26** | 129410 | 6239 | 4.82 |
| **Total earning assets** | **5731919** | **310363** | **5.41** | 5520904 | 295663 | 5.36 |
| Cash and due from banks | **48725** |  |  | 46264 |  |  |
| Other assets | **372846** |  |  | 387852 |  |  |
| Allowance for credit losses | **(58831)** |  |  | (58089) |  |  |
| **Total assets** | $**6094659** |  |  | $5896931 |  |  |

---

------

**Shore Bancshares, Inc.**

Consolidated Average Balance Sheets (Unaudited) – Continued

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| *($ in thousands)* | **Average Balance** | **Interest** | **Yield/Rate** | Average Balance | Interest | Yield/Rate |
| **Interest-bearing liabilities** |  |  |  |  |  |  |
| Interest-bearing checking | $**759395** | $**23265** | **3.06%** | $825773 | $25523 | 3.09% |
| Money market and savings deposits | **1761503** | **38245** | **2.17** | 1690905 | 41202 | 2.44 |
| Time deposits | **1255797** | **47391** | **3.77** | 1205411 | 48566 | 4.03 |
| &nbsp;&nbsp;Brokered deposits | **7927** | **302** | **3.81** | 12636 | 10 | 0.08 |
| Interest-bearing deposits<sup>(4)</sup> | **3784622** | **109203** | **2.89** | 3734725 | 115301 | 3.09 |
| FHLB advances | **43068** | **2089** | **4.85** | 70298 | 3720 | 5.29 |
| Subordinated debt and Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS")<sup>(4)</sup> | **81828** | **6359** | **7.77** | 72907 | 5768 | 7.91 |
| **Total interest-bearing liabilities** | **3909518** | **117651** | **3.01** | 3877930 | 124789 | 3.22 |
| Noninterest-bearing deposits | **1577271** |  |  | 1454087 |  |  |
| Accrued expenses and other liabilities | **42291** |  |  | 39172 |  |  |
| Stockholders' equity | **565579** |  |  | 525742 |  |  |
| **Total liabilities and stockholders' equity** | $**6094659** |  |  | $5896931 |  |  |
| Net interest spread |  |  | **2.40%** |  |  | 2.14% |
| Net interest margin |  |  | **3.36** |  |  | 3.10 |
| Net interest margin excluding accretion<sup>(3)</sup> |  |  | **3.15** |  |  | 2.83 |
| Cost of funds |  |  | **2.14** |  |  | 2.34 |
| Cost of deposits |  |  | **2.04** |  |  | 2.22 |
| Cost of debt |  |  | **6.76** |  |  | 6.63 |

---

____________________________________

(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.

(2) Average loan balances include nonaccrual loans.

(3) Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $15.4 million and $16.9 million of accretion interest on loans for the year ended December 31, 2025 and 2024, respectively.

(4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were $2.2 million and $1.5 million of amortization of deposit discounts and $865 thousand and $926 thousand of amortization of borrowing fair value adjustments for the year ended December 31, 2025 and 2024, respectively.

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date | Year to Date | Year to Date |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | **12/31/2025** | 12/31/2024 |
| The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: |
| Net income | $**15887** | $14348 | $15507 | $13764 | $13282 | $**59506** | $43889 |
| Annualized net income (A) | $**63030** | $56924 | $62198 | $55821 | $52839 | $**59506** | $43889 |
| Net income | $**15887** | $14348 | $15507 | $13764 | $13282 | $**59506** | $43889 |
| Add: amortization of other intangible assets, net of tax | **1529** | 1541 | 1708 | 1717 | 1683 | **6498** | 7311 |
| Net income excluding amortization of other intangible assets – non-GAAP | **17416** | 15889 | 17215 | 15481 | 14965 | **66004** | 51200 |
| Annualized net income excluding amortization of other intangible assets – non-GAAP (B) | $**69096** | $63038 | $69049 | $62784 | $59535 | $**66004** | $51200 |
| Net income | $**15887** | $14348 | $15507 | $13764 | $13282 | $**59506** | $43889 |
| Add: amortization of other intangible assets, net of tax | **1529** | 1541 | 1708 | 1717 | 1683 | **6498** | 7311 |
| Add: credit card fraud losses, net of tax | **—** |  |  |  |  | **—** | 3484 |
| Less: sale and fair value of held for sale assets, net of tax | **—** |  |  |  | (329) | **—** | (336) |
| Adjusted net income – non-GAAP | **17416** | 15889 | 17215 | 15481 | 14636 | **66004** | 54348 |
| Annualized adjusted net income – non-GAAP (C) | $**69096** | $63038 | $69049 | $62784 | $58226 | $**66004** | $54348 |
| Net income | $**15887** | $14348 | $15507 | $13764 | $13282 | $**59506** | $43889 |
| Less: income tax expense | **4895** | 4637 | 5125 | 4493 | 4859 | **19149** | 14815 |
| Less: provision for credit losses | **2827** | 2992 | 1528 | 1028 | 780 | **8375** | 4738 |
| Pre-tax pre-provision net income – non GAAP | $**23609** | $21977 | $22160 | $19285 | $18921 | $**87030** | $63442 |
| Return on average assets – GAAP | **1.02%** | 0.95% | 1.03% | 0.91% | 0.86% | **0.98%** | 0.74% |
| Adjusted return on average assets – non-GAAP | **1.11%** | 1.05% | 1.15% | 1.02% | 0.94% | **1.08%** | 0.92% |
| Average assets | $**6206753** | $6020574 | $6021385 | $6129241 | $6163497 | $**6094659** | $5896931 |
| Average stockholders' equity (D) | $**584209** | $571247 | $558952 | $547443 | $538184 | $**565579** | $525742 |
| Less: average goodwill and core deposit intangible | **(94059)** | (96074) | (98241) | (100514) | (102794) | **(97201)** | (106409) |
| Average tangible common equity (E) | $**490150** | $475173 | $460711 | $446929 | $435390 | $**468378** | $419333 |
| Return on average common equity – GAAP (A)/(D) | **10.79%** | 9.96% | 11.13% | 10.20% | 9.82% | **10.52%** | 8.35% |
| Return on average tangible common equity – non-GAAP (B)/(E) | **14.10%** | 13.27% | 14.99% | 14.05% | 13.67% | **14.09%** | 12.21% |
| Adjusted return on average tangible common equity – non-GAAP (C)/(E) | **14.10%** | 13.27% | 14.99% | 14.05% | 13.37% | **14.09%** | 12.96% |

---

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date | Year to Date | Year to Date |
| *($ in thousands, except per share data)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | **12/31/2025** | 12/31/2024 |
| The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: | The following reconciles GAAP efficiency ratio and non-GAAP efficiency ratio<sup>(2)</sup>: |
| Noninterest expense (F) | $**35499** | $34379 | $34410 | $33747 | $33943 | $**138035** | $138254 |
| Less: amortization of other intangible assets | **(2000)** | (2039) | (2272) | (2278) | (2298) | **(8589)** | (9779) |
| Less: credit card fraud losses | **—** |  |  |  |  | **—** | (4660) |
| Adjusted noninterest expense (G) | $**33499** | $32340 | $32138 | $31469 | $31645 | $**129446** | $123815 |
| Net interest income (H) | $**50441** | $48655 | $47252 | $46029 | $44011 | $**192377** | $170549 |
| Add: taxable-equivalent adjustment | **92** | 83 | 81 | 81 | 82 | **335** | 325 |
| Taxable-equivalent net interest income (I) | $**50533** | $48738 | $47333 | $46110 | $44093 | $**192712** | $170874 |
| Noninterest income (J) | $**8667** | $7701 | $9318 | $7003 | $8853 | $**32688** | $31147 |
| Less: Sale and fair value of held for sale assets | **—** |  |  |  | (450) | **—** | (450) |
| Adjusted noninterest income (K) | $**8667** | $7701 | $9318 | $7003 | $8403 | $**32688** | $30697 |
| Efficiency ratio – GAAP (F)/(H)+(J) | **60.06%** | 61.00% | 60.83% | 63.64% | 64.21% | **61.33%** | 68.55% |
| Adjusted efficiency ratio – non-GAAP (G)/(I)+(K) | **56.59%** | 57.30% | 56.73% | 59.25% | 60.28% | **57.43%** | 61.43% |
| Net operating expense to average assets – GAAP | **1.72%** | 1.76% | 1.67% | 1.77% | 1.62% | **1.73%** | 1.82% |
| Adjusted net operating expense to average assets – non-GAAP | **1.59%** | 1.62% | 1.52% | 1.62% | 1.50% | **1.59%** | 1.58% |

---

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *($ in thousands, except per share data)* | **Q4 2025** | **Q4 2025** | Q3 2025 | Q3 2025 | Q2 2025 | Q2 2025 | Q1 2025 | Q1 2025 | Q4 2024 | Q4 2024 |
| The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: |
| Stockholders' equity (L) | **$** | **589873** | $| 577207 | $| 565194 | $| 552470 | $| 541066 |
| Less: goodwill and core deposit intangible | **(92988)** | **(92988)** | (94988) | (94988) | (97027) | (97027) | (99299) | (99299) | (101577) | (101577) |
| Tangible common equity (M) | **$** | **496885** | $| 482219 | $| 468167 | $| 453171 | $| 439489 |
| Shares of common stock outstanding (N) | **33413503** | **33413503** | 33421672 | 33421672 | 33374265 | 33374265 | 33374265 | 33374265 | 33332177 | 33332177 |
| Book value per common share – GAAP (L)/(N) | **$** | **17.65** | $| 17.27 | $| 16.94 | $| 16.55 | $| 16.23 |
| Tangible book value per common share – non-GAAP (M)/(N) | **$** | **14.87** | $| 14.43 | $| 14.03 | $| 13.58 | $| 13.19 |
| The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: |
| Stockholders' equity (O) | **$** | **589873** | $| 577207 | $| 565194 | $| 552470 | $| 541066 |
| Less: goodwill and core deposit intangible | **(92988)** | **(92988)** | (94988) | (94988) | (97027) | (97027) | (99299) | (99299) | (101577) | (101577) |
| Tangible common equity (P) | **$** | **496885** | $| 482219 | $| 468167 | $| 453171 | $| 439489 |
| Assets (Q) | **$** | **6258818** | $| 6278479 | $| 6037874 | $| 6176563 | $| 6230763 |
| Less: goodwill and core deposit intangible | **(92988)** | **(92988)** | (94988) | (94988) | (97027) | (97027) | (99299) | (99299) | (101577) | (101577) |
| Tangible assets (R) | **$** | **6165830** | $| 6183491 | $| 5940847 | $| 6077264 | $| 6129186 |
| Period-end equity to assets – GAAP (O)/(Q) | **9.42%** | **9.42%** | 9.19% | 9.19% | 9.36% | 9.36% | 8.94% | 8.94% | 8.68% | 8.68% |
| Period-end tangible common equity to tangible assets – non-GAAP (P)/(R) | **8.06%** | **8.06%** | 7.80% | 7.80% | 7.88% | 7.88% | 7.46% | 7.46% | 7.17% | 7.17% |

---

____________________________________

(1) Management believes that reporting tangible common equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.

(2) Management believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling cash-based operating activities.

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Regulatory Capital and Ratios for the Company** | | | | | |
| *($ in thousands)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
| Common equity | $**589873** | $577207 | $565194 | $552470 | $541066 |
| Goodwill<sup>(1)</sup> | **(61123)** | (61176) | (61238) | (61300) | (61362) |
| Core deposit intangible<sup>(2)</sup> | **(22566)** | (24041) | (25573) | (27280) | (28991) |
| DTAs that arise from net operating loss and tax credit carryforwards | **(48)** | (40) | (39) |  |  |
| Accumulated other comprehensive loss | **4593** | 4759 | 5603 | 6333 | 7545 |
| **Common Equity Tier 1 Capital** | **510729** | 496709 | 483947 | 470223 | 458258 |
| TRUPS | **30168** | 30085 | 30005 | 29926 | 29847 |
| **Tier 1 Capital** | **540897** | 526794 | 513952 | 500149 | 488105 |
| Allowable reserve for credit losses and other Tier 2 adjustments | **60661** | 60852 | 60605 | 59726 | 59253 |
| Subordinated debt | **58893** | 39409 | 44236 | 44053 | 43870 |
| **Total Capital** | $**660451** | $627055 | $618793 | $603928 | $591228 |
| **Risk-Weighted Assets ("RWA")** | $**4852573** | $4867237 | $4890679 | $4823833 | $4852564 |
| **Average Assets ("AA")** | **6129306** | 5942911 | 5943124 | 6050310 | 6083760 |
| Common Equity Tier 1 Capital to RWA | **10.52%** | 10.21% | 9.90% | 9.75% | 9.44% |
| Tier 1 Capital to RWA | **11.15** | 10.82 | 10.51 | 10.37 | 10.06 |
| Total Capital to RWA | **13.61** | 12.88 | 12.65 | 12.52 | 12.18 |
| Tier 1 Capital to AA (Leverage) | **8.82** | 8.86 | 8.65 | 8.27 | 8.02 |

---

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Regulatory Capital and Ratios for the Bank** | | | | | |
| *($ in thousands)* | **Q4 2025** | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
| Common equity | $**648279** | $639670 | $627838 | $617071 | $604261 |
| Goodwill<sup>(1)</sup> | **(61123)** | (61176) | (61238) | (61300) | (61362) |
| Core deposit intangible<sup>(2)</sup> | **(22566)** | (24041) | (25573) | (27280) | (28991) |
| Accumulated other comprehensive loss | **4593** | 4759 | 5603 | 6333 | 7545 |
| **Common Equity Tier 1 Capital** | **569183** | 559212 | 546630 | 534824 | 521453 |
| **Tier 1 Capital** | **569183** | 559212 | 546630 | 534824 | 521453 |
| Allowable reserve for credit losses and other Tier 2 adjustments | **60563** | 60822 | 60605 | 59726 | 59253 |
| **Total Capital** | $**629746** | $620034 | $607235 | $594550 | $580706 |
| **Risk-Weighted Assets ("RWA")** | $**4844639** | $4864871 | $4888558 | $4821975 | $4851903 |
| **Average Assets ("AA")** | **6122775** | 5939890 | 5940411 | 6050130 | 6077540 |

---

___________________________________

(1)Goodwill is net of deferred tax liability.

(2)Core deposit intangible is net of deferred tax liability.

------

**Shore Bancshares, Inc.**

Summary of Loan Portfolio (Unaudited)

Portfolio loans are summarized by loan type as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* | **December 31, 2025** | **% of Total Loans** | September 30, 2025 | % of Total Loans | June 30, 2025 | % of Total Loans | March 31, 2025 | % of Total Loans | December 31, 2024 | % of Total Loans |
| &nbsp;&nbsp;Commercial real estate | $**2643996** | **53.95%** | $2642601 | 54.12% | $2603974 | 53.95% | $2544107 | 53.25% | $2557806 | 53.60% |
| &nbsp;&nbsp;Residential real estate | **1414964** | **28.88** | 1383348 | 28.33 | 1349010 | 27.94 | 1325858 | 27.75 | 1329406 | 27.85 |
| &nbsp;&nbsp;Construction | **344903** | **7.04** | 352116 | 7.21 | 350053 | 7.25 | 366218 | 7.67 | 335999 | 7.04 |
| &nbsp;&nbsp;Commercial | **226006** | **4.61** | 221598 | 4.54 | 224092 | 4.64 | 234499 | 4.91 | 237932 | 4.99 |
| &nbsp;&nbsp;Consumer | **265912** | **5.43** | 278242 | 5.70 | 294239 | 6.09 | 300007 | 6.28 | 303746 | 6.37 |
| &nbsp;&nbsp;Credit cards | **4521** | **0.09** | 5064 | 0.10 | 6260 | 0.13 | 6800 | 0.14 | 7099 | 0.15 |
| Total loans | **4900302** | **100.00%** | 4882969 | 100.00% | 4827628 | 100.00% | 4777489 | 100.00% | 4771988 | 100.00% |
| Less: allowance for credit losses | **(58836)** |  | (59554) |  | (58483) |  | (58042) |  | (57910) |  |
| Total loans, net | $**4841466** |  | $4823415 |  | $4769145 |  | $4719447 |  | $4714078 |  |

---

------

**Shore Bancshares, Inc.**

Classified Assets and Nonperforming Assets (Unaudited)

Classified assets and nonperforming assets are summarized as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* | **December 31, 2025** | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 |
| Classified loans |  |  |  |  |  |
| &nbsp;&nbsp;Substandard | $**57366** | $48470 | $19930 | $19434 | $24679 |
| Total classified loans | **57366** | 48470 | 19930 | 19434 | 24679 |
| &nbsp;&nbsp;Special mention loans | **73401** | 70997 | 65564 | 33456 | 33519 |
| Total classified and special mention loans | $**130767** | $119467 | $85494 | $52890 | $58198 |
| Classified loans | $**57366** | $48470 | $19930 | $19434 | $24679 |
| Other real estate owned | **113** | 120 | 179 | 179 | 179 |
| Repossessed assets | **2879** | 3432 | 2457 | 2429 | 3315 |
| **Total classified assets** | $**60358** | $**52022** | $**22566** | $**22042** | $**28173** |
| Classified assets to total assets | **0.96%** | 0.83% | 0.37% | 0.36% | 0.45% |
| Nonaccrual loans | $**39960** | $24378 | $16782 | $15402 | $21008 |
| 90+ days delinquent accruing | **255** | 153 | 215 | 894 | 294 |
| Other real estate owned ("OREO") | **113** | 120 | 179 | 179 | 179 |
| Repossessed property | **2879** | 3432 | 2457 | 2429 | 3315 |
| **Total nonperforming assets** | $**43207** | $**28083** | $**19633** | $**18904** | $**24796** |
| Accruing borrowers experiencing financial difficulty loans ("BEFD") | **5311** | 6704 | 6709 | 1356 | 1662 |
| **Total nonperforming assets and BEFDs modifications** | $**48518** | $**34787** | $**26342** | $**20260** | $**26458** |
| Nonperforming assets to total assets | **0.69%** | 0.45% | 0.33% | 0.31% | 0.40% |
| **Total assets** | $**6258818** | $**6278479** | $**6037874** | $**6176563** | $**6230763** |

---

<br>