Shore Bancshares reports Q3 EPS (19c) with items, consensus 34c

Q3 results include the successful completion of the merger on July 1 with The Community Financial Corporation with total assets exceeding $5.7B for the combined company. Reports Q3 provision for credit losses $28.2M vs. $700,000 in Q2. The Q3 $28.2M provision reflected approximately $20.1M related to the acquisition of TCFC legacy loans, $7.3M due to the change in ACL methodology on SUB legacy loans and $800,000 related to Q3 activity. The increase in the provision for credit losses when compared to the Q3 of 2022 was also impacted by higher reserves required by the Company’s CECL allowance model as compared to the incurred loss model utilized in 2022. Reports Q3 net charge-offs $1.4M compared to net charge-offs of $50,000 for the Q2 and net recoveries of $119,000 for the Q3 of 2022. Included in the net charge-offs for the Q3 were $1.2M in charge-offs related to the strategic loan sale of $10.7M in loans that reduced classified assets and CRE concentrations.