I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q2, the actual value is USD 86.28 M.
EPS: As of FY2026 Q2, the actual value is USD 0.56, beating the estimate of USD 0.5.
EBIT: As of FY2026 Q2, the actual value is USD 26.76 M.
Net Income
Shore Bancshares, Inc. reported net income of $18.9 million for the second quarter of 2026, an increase from $17.1 million in the first quarter of 2026 and $15.5 million in the second quarter of 2025. For the six months ended June 30, 2026, net income was $36.0 million, compared to $29.3 million for the same period in 2025.
Return on Average Assets (ROAA)
The Company’s ROAA was 1.24% for the second quarter of 2026, up from 1.12% in the first quarter of 2026 and 1.03% in the second quarter of 2025. Adjusted ROAA (non-GAAP) was 1.34% for the second quarter of 2026, compared to 1.22% for the first quarter of 2026 and 1.15% for the second quarter of 2025.
Net Interest Income and Margin (NIM)
Net interest income for the second quarter of 2026 increased to $52.9 million, up $364 thousand from $52.6 million in the first quarter of 2026, and up $5.8 million compared to $47.2 million in the second quarter of 2025. The NIM increased by 6 basis points to 3.70% in the second quarter of 2026 from 3.64% in the first quarter of 2026, and from 3.34% in the second quarter of 2025. NIM excluding accretion increased from 3.35% to 3.45% for the comparable periods. For the six months ended June 30, 2026, net interest income was $105.5 million, a 13.3% increase from $93.1 million in the same period of 2025. The NIM for the six months ended June 30, 2026, was 3.67%, up from 3.28% in the prior year.
Provision for Credit Losses
The provision for credit losses was $896 thousand for the second quarter of 2026, significantly higher than $85 thousand in the first quarter of 2026 but lower than $1.5 million in the second quarter of 2025. For the six months ended June 30, 2026, the provision for credit losses was $1.0 million, a decrease from $2.6 million for the same period in 2025.
Noninterest Income
Total noninterest income for the second quarter of 2026 was $8.8 million, an increase of $1.6 million from the first quarter of 2026, but a decrease of $576 thousand compared to the second quarter of 2025. For the six months ended June 30, 2026, total noninterest income decreased by $466 thousand, or 2.8%, to $16.1 million compared to $16.5 million in the same period of 2025.
Noninterest Expense
Total noninterest expense was $35.7 million for the second quarter of 2026, a decrease of $1.4 million from $37.1 million in the first quarter of 2026, but an increase of $1.3 million from $34.4 million in the second quarter of 2025. For the six months ended June 30, 2026, total noninterest expense increased by $4.6 million, or 6.7%, to $72.7 million compared to $68.2 million in the same period of 2025.
Efficiency Ratio
The GAAP efficiency ratio for the second quarter of 2026 was 57.76%, improving from 61.97% in the first quarter of 2026 and 60.83% in the second quarter of 2025. The adjusted efficiency ratio (non-GAAP) was 54.49% for the second quarter of 2026, compared to 58.57% for the first quarter of 2026 and 56.73% for the second quarter of 2025. For the six months ended June 30, 2026, the efficiency ratio was 59.83%, compared to 62.19% for the same period in 2025.
Total Assets
Total assets were $6.15 billion at June 30, 2026, a decrease of $54.6 million from March 31, 2026, and a decrease of $107.4 million (1.7%) from $6.26 billion at December 31, 2025.
Loan Portfolio
Total loans held for investment were $4,877,749 thousand at June 30, 2026, an increase from $4,848,030 thousand at March 31, 2026. Commercial real estate loans totaled $2.60 billion at June 30, 2026, constituting 53.37% of total loans. Residential real estate loans were $1.47 billion (30.15%), construction loans were $337.8 million (6.92%), commercial loans were $220.7 million (4.52%), consumer loans were $241.8 million (4.96%), and credit card loans were $4.1 million (0.08%).
Asset Quality Metrics
Nonperforming assets were $67.2 million, or 1.09% of total assets, at June 30, 2026, a slight decrease from 1.10% at March 31, 2026, but an increase from 0.33% at June 30, 2025. Classified assets were $86.6 million, or 1.41% of total assets, at June 30, 2026, compared to 1.38% at March 31, 2026, and 0.37% at June 30, 2025. The allowance for credit losses (ACL) was $58.7 million at June 30, 2026, and the ACL as a percentage of loans was 1.20%. Net charge-offs decreased to $123 thousand for the second quarter of 2026, compared to $847 thousand for the first quarter of 2026 and $649 thousand for the second quarter of 2025. For the six months ended June 30, 2026, net charge-offs were $970 thousand, down from $1.2 million in the same period of 2025.
Deposits and Funding
Total deposits decreased by $61.9 million from March 31, 2026, to $5.40 billion at June 30, 2026. Year-to-date, total deposits decreased by $134.1 million from December 31, 2025. Core deposits, excluding municipal cannabis deposits, increased by $71.7 million, or 1.7%, during the same period. Uninsured deposits were $975.6 million, or 18.1% of total deposits, at June 30, 2026. Available liquidity was $1.90 billion at June 30, 2026.
Capital Ratios
Total stockholders’ equity increased by $26.2 million, or 4.4%, from December 31, 2025. The ratio of total equity to total assets was 10.02% at June 30, 2026, compared to 9.36% at June 30, 2025. The ratio of total tangible equity to total tangible assets (non-GAAP) was 8.69% at June 30, 2026, compared to 7.88% at June 30, 2025. The Company’s Tier 1 and Total Risk-Based Capital Ratios at June 30, 2026, were 11.71% and 14.17%, respectively.
Outlook
Management expects continued improvements in operating leverage over time due to ongoing expense management of professional services and technology investments. Shore Bancshares, Inc. remains focused on executing its strategy and enhancing shareholder returns. The company aims to position itself for sustainable long-term growth.