Shore Bancshares reports Q4 EPS 32c, consensus 35c

Net interest margin decreased to 3.09% for Q4 from 3.35% for Q3. Excluding net accretion interest income of $3.0M and $5.4M for the same time periods, NIM decreased nine basis points to 2.87% for Q4 from 2.96% for Q3. Tier 1 and Total Risk-Based Capital Ratios at December 31, 2023 were 9.31% and 11.48%, respectively. “Stable interest income was offset by higher interest expenses in the fourth quarter as we added liquidity and continued to see pressure on the cost of deposits,” stated James Burke, CEO. “We made good progress expanding our market share and adding new customers in the third and fourth quarters and are optimistic that we can build on the deposit growth we experienced in the fourth quarter. Improved liquidity should provide an opportunity to grow loans and stabilize margins. We continue to focus on expenses and have undertaken a number of expense-reduction initiatives, including a 7% reduction in headcount since the close of the transaction in the third quarter. Shore Bancshares, with its considerable scale, diversification, and resources, is well-positioned to enhance shareholder value, effectively manage risks, and deliver outstanding service to customers.”