Shore Bancshares, Inc. (NASDAQ: SHBI) reported net income of $16.8 million, or $0.50 per diluted common share, for the third quarter of 2026. This figure represents a decrease from the $18.9 million, or $0.56 per share, reported in the second quarter of 2026. Compared to the third quarter of 2025, the company’s net income was $2.5 million higher, at $14.3 million, or $0.43 per share.
The company reported a Return on Average Assets (ROAA) of 1.08% for the third quarter of 2026, down from 1.24% in the prior quarter. Net interest income increased by $2.2 million to $55.1 million for the quarter, driven by elevated accretion income from loan payoffs. The Net Interest Margin (NIM) increased by 8 basis points to 3.78%.
Shore Bancshares’ total assets grew to $6.45 billion at September 30, 2026, an increase of $302.9 million from the previous quarter. This growth was attributed to an increase in cash and cash equivalents of $197.4 million and available for sale securities of $93.5 million. Total deposits also increased by $296.6 million to $5.70 billion during the quarter.
In terms of capital management, the company declared a dividend of $0.14 per share and repurchased 148,006 shares of its common stock for approximately $3.4 million during the third quarter. Book value per share increased to $18.59 at September 30, 2026.
Asset quality metrics showed that Nonperforming Assets (NPAs) were 1.27% of total assets at September 30, 2026, up from 1.09% at June 30, 2026. The increase was primarily driven by three large nonaccrual loans totaling $48.2 million, which had been partially charged off by $3.9 million. The company foreclosed on an office commercial real estate property in Virginia with a carrying value of $10.8 million during the quarter.
