Shore Bancshares Inc.

At September 30, 2025, the average loan debt-service coverage ratio on the office CRE loan portfolio was 1.8x and the average LTV was 48.40%.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

At September 30, 2025, the Bank had approximately $1.37 billion of available liquidity, including $416.5 million in cash and cash equivalents, $950.9 million in secured borrowing capacity at the FHLB and other correspondent banks and $65.0 million in unsecured lines of credit.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Total stockholders equity increased $36.1 million, or 6.7%, when compared to December 31, 2024, primarily due to current year earnings and a decrease in accumulated other comprehensive losses, partially offset by cash dividends paid.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The increase in net interest income was $5.4 million when compared to the third quarter of 2024, and was primarily due to a decrease in interest expense on deposits of $2.4 million, an increase in interest and fees on loans of $1.8 million, a decrease in interest expense on long term borrowings of $661 thousand and an increase in interest on deposits at other banks of $651 thousand, partially offset by an increase in interest expense on short-term borrowings of $149 thousand.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The decrease in total interest expense was primarily due to a decrease in interest on deposits of $3.0 million and a decrease in interest expense on borrowings of $1.4 million as a result of lower average FHLB advances and associated rates during the year.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

financial regulatory system the impact of recent or future changes in Federal Deposit Insurance Corporation (the FDIC ) insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments the effects of federal government shutdowns, debt ceiling standoff, or other uncertainty regarding fiscal and governmental policies of the U.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Net Interest Margin ( NIM ) Expansion Net interest income for the third quarter of 2025 increased $1.4 million to $48.7 million from $47.3 million for the second quarter of 2025.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Despite a modest decline in net income for the quarter due to a large marine loan write-off and softer noninterest income, we saw meaningful expansion in net interest margin and continued growth in book value per share.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

As we navigate a dynamic environment, we remain focused on (1) See the Reconciliation of GAAP and non-GAAP Measures tables.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

1 enhancing operating leverage through strategic investments in technology and talent.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements the strength of the United States ( U.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

trade policies, including the implementation of tariffs and other protectionist trade policies the impact of governmental efforts to restructure or adjust the U.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025

financial regulatory system the impact of recent or future changes in Federal Deposit Insurance Corporation (the FDIC ) insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount, including any special assessments the effects of federal government shutdowns, debt ceiling standoff, or other uncertainty regarding fiscal and governmental policies of the U.

SEC original ↗Shore Bancshares Inc. — Earnings release (8-K exhibit)EX-99Oct 23, 2025