Parent Company Financial Information

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

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, 2023 and 2022.

Condensed Balance Sheets

(Dollars in thousands)	December 31, 2023		December 31, 2022
Assets
Cash	$	7,345	$	7,145
Investment in subsidiaries	571,298		396,897
Other assets	7,926		5,392
Total assets	$	586,569	$	409,434
Liabilities
Accrued interest payable	$	1,050	$	744
Other liabilities	2,087		1,333
Long-term debt	72,297		43,072
Total liabilities	75,434		45,149
Stockholders’ equity
Common stock	332		199
Additional paid in capital	356,007		201,494
Retained earnings	162,290		171,613
Accumulated other comprehensive (loss)	(7,494)		(9,021)
Total stockholders’ equity	511,135		364,285
Total liabilities and stockholders’ equity	$	586,569	$	409,434

Condensed Statements of Income

	For the Year Ended
(Dollars in thousands)	December 31, 2023		December 31, 2022
Income
Dividends from subsidiaries	$	22,000	$	5,500
Company owned life insurance income	141		67
Bargain purchase gain	8,816		—
Total income	30,957		5,567
Expenses
Interest expense	4,454		2,451
Salaries and employee benefits	358		324
Occupancy and equipment expense	1		—
Legal and professional fees, including merger expenses	5,164		1,654
Other operating expenses	775		540
Total expenses	10,752		4,969
Income before income tax (benefit) and equity (deficit) in undistributed net income of subsidiaries	20,205		598
Income tax (benefit)	(1,557)		(1,059)
Income before (deficit) equity in undistributed net income of subsidiaries	21,762		1,657
Equity (deficit) in undistributed net income of subsidiaries	(10,534)		29,520
Net income	$	11,228	$	31,177

Condensed Statements of Cash Flows

	For the Year Ended
(Dollars in thousands)	December 31, 2023		December 31, 2022
Cash flows from operating activities:
Net income	$	11,228	$	31,177
Adjustments to reconcile net income to cash provided by operating activities:
Deficit (equity) in undistributed net income of subsidiaries	10,534		(29,521)
Bargain purchase gain	(8,816)		—
Amortization of debt issuance costs	122		122
Stock-based compensation expense	1,174		636
Company owned life insurance income	(141)		(67)
Acquisition accounting adjustments	557		188
Net (increase) decrease in other assets	(1,267)		387
Net (decrease) increase in other liabilities	(682)		275
Net cash provided by operating activities	12,709		3,197
Cash flows from investing activities:
Purchase of company owned life insurance	(249)		—
Cash acquired in the acquisition of TCFC, net of cash paid	88		—
Net cash (used in) investing activities	(161)		—
Cash flows from financing activities:
Common stock dividends paid	(12,733)		(9,530)
Issuance of common stock	385		386
Net cash (used in) financing activities	(12,348)		(9,144)
Net increase (decrease) in cash and cash equivalents	200		(5,947)
Cash and cash equivalents at beginning of year	7,145		13,092
Cash and cash equivalents at end of year	$	7,345	$	7,145