Shore Bancshares, Inc. reported a net income of $13.8 million, or $0.41 per diluted share, for the first quarter of 2025, marking a significant increase from $8.2 million, or $0.25 per diluted share, in the same period last year. This growth in profitability was driven by an increase in net interest income, which rose to $46.0 million from $41.1 million year-over-year. The company also saw a rise in its return on average assets (ROAA) to 0.91%, up from 0.57% in the first quarter of 2024, reflecting improved operational efficiency.
Total assets for Shore Bancshares decreased to $6.18 billion as of March 31, 2025, down from $6.23 billion at the end of 2024. This decline was primarily attributed to a reduction in cash and cash equivalents, which fell by $70.8 million, and a decrease in held-to-maturity securities. However, loans held for investment increased slightly to $4.78 billion, up from $4.77 billion at the end of the previous year. The allowance for credit losses remained stable at $58.0 million, representing 1.21% of total loans.
In terms of operational developments, the company reported a decrease in total deposits to $5.46 billion, down from $5.53 billion at the end of 2024. This decline was largely due to a seasonal runoff of municipal deposits and a decrease in interest-sensitive deposits related to the cannabis industry. The company’s noninterest income also increased to $7.0 million, up from $6.6 million in the prior year, driven by higher mortgage banking activity.
Looking ahead, Shore Bancshares remains focused on maintaining its asset quality, with nonperforming assets decreasing to 0.31% of total assets, down from 0.40% in the previous quarter. The company is also committed to managing its capital resources effectively, having been classified as "well-capitalized" under regulatory standards. The outlook for the remainder of 2025 includes continued efforts to enhance operational efficiency and manage credit risk, while navigating the challenges posed by the current economic environment.
About SHORE BANCSHARES INC
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