Parent Company Financial Information

12 Months Ended

Dec. 31, 2022

Parent Company Financial Information [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

NOTE 27. PARENT COMPANY FINANCIAL INFORMATION

The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company Only) at and for the years ending December 31.

Condensed Balance Sheets

December 31,

(Dollars in thousands)	2022		2021
Assets
Cash	$	7,145	$	13,092
Investment in subsidiaries		396,897		376,453
Other assets		5,392		5,712
Total assets	$	409,434	$	395,257
Liabilities
Accrued interest payable	$	744	$	551
Other liabilities		1,333		1,251
Long-term debt		43,072		42,762
Total liabilities		45,149		44,564
Stockholders’ equity
Common stock		199		198
Additional paid in capital		201,494		200,473
Retained earnings		171,613		149,966
Accumulated other comprehensive (loss) income		(9,021)		56
Total stockholders’ equity		364,285		350,693
Total liabilities and stockholders’ equity	$	409,434	$	395,257

Condensed Statements of Income

For the Years Ended December 31,

(Dollars in thousands)	2022		2021
Income
Dividends from subsidiaries	$	5,500	$	25,000
Company owned life insurance income		67		110
Total income		5,567		25,110
Expenses
Interest expense		2,451		1,560
Salaries and employee benefits		324		423
Legal and professional fees		1,654		2,465
Other operating expenses		540		384
Total expenses		4,969		4,832
Income before income tax (benefit) and equity (deficit) in
undistributed net income of subsidiaries		598		20,278
Income tax (benefit)		(1,059)		(990)
Income before (deficit) equity in undistributed net income of subsidiaries		1,657		21,268
Equity (deficit) in undistributed net income of subsidiaries		29,520		(5,900)
Net income	$	31,177	$	15,368

Condensed Statements of Cash Flows

For the Years Ended December 31,

(Dollars in thousands)	2022		2021
Cash flows from operating activities:
Net income	$	31,177	$	15,368
Adjustments to reconcile net income to cash
provided by operating activities:
(Equity) deficit in undistributed net income of subsidiaries		(29,521)		5,900
Amortization of debt issuance costs		122		123
Stock-based compensation expense		636		378
Company owned life insurance income		(67)		(110)
Acquisition accounting adjustments		188		31
Net decrease (increase) in other assets		387		(1,552)
Net increase (decrease) increase in other liabilities		275		(142)
Net cash provided by operating activities		3,197		19,996
Cash flows from investing activities:
Purchase of company owned life insurance		—		(192)
Acquisition of business activity, net of cash paid		—		(15,945)
Net cash (used in) investing activities		—		(16,137)
Cash flows from financing activities:
Common stock dividends paid		(9,530)		(6,607)
Retirement of common stock		—		(819)
Issuance of common stock		386		—
Exercise of stock options		—		6
Net cash (used in) financing activities		(9,144)		(7,420)
Net (decrease) in cash and cash equivalents		(5,947)		(3,561)
Cash and cash equivalents at beginning of year		13,092		16,653
Cash and cash equivalents at end of year	$	7,145	$	13,092