Shore Bancshares, Inc. (SHBI) | Investment Case

1. Company Snapshot

1.a. Company Description

Shore Bancshares, Inc.operates as a bank holding company for the Shore United Bank that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations.It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services.

The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products.In addition, it offers non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services.Further, the company provides merchant credit card clearing, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; direct deposit of payroll; and automatic teller machine (ATM) services.

It operates 29 full service branches, 30 ATMs, and 5 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, and Worcester County in Maryland; Kent County, Delaware; and Accomack County, Virginia.The company was founded in 1876 and is headquartered in Easton, Maryland.

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1.b. Last Insights on SHBI

Recent negative drivers behind Shore Bancshares' performance include the impending retirement of its Chief Financial Officer, which may lead to a temporary disruption in financial management. The company's Q4 earnings beat was overshadowed by the CFO's departure, creating uncertainty among investors. Additionally, the recent appointment of a new CFO, Charles Cullum, may not have had sufficient time to make a significant impact on the company's financial performance.

1.c. Company Highlights

Last Price	17.89
Change Percentage	0.68%
Open	17.99
Previous Close	17.77
Market Cap ( Millions)	598
Volume	92388
Year High	18.08
Year Low	11.47
M A 50	16.28
M A 200	15.37

FCF Yield	14.23%
Dividend Yield	2.68%
ROE	10.18%
Debt / Equity	23.54%
Net Debt / EBIDTA	83.50%
Price To Book	1.03
Price Earnings Ratio	10.5
Price To FCF	7.03
Price To sales	1.76
EV / EBITDA	7.62

2. Transcript Summary

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3. NewsRoom

Shore Bancshares Inc (SHBI) Hit a 52 Week High, Can the Run Continue?

Nov -27

Source: zacks.com

Shore Bancshares, Inc. Announces Completion of $60 Million Subordinated Notes Offering

Nov -13

Source: prnewswire.com

Compared to Estimates, Shore Bancshares (SHBI) Q3 Earnings: A Look at Key Metrics

Oct -24

Source: zacks.com

Shore Bancshares (SHBI) Q3 Earnings Top Estimates

Oct -23

Source: zacks.com

Shore Bancshares, Inc. Reports 2025 Third Quarter Results

Oct -23

Source: prnewswire.com

Shore Bancshares: Under The Radar With Reasonable Valuation

Jul -28

Source: seekingalpha.com

Shore Bancshares (SHBI) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Jul -24

Source: zacks.com

Shore Bancshares (SHBI) Q2 Earnings and Revenues Surpass Estimates

Jul -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Community Banking

Expected Growth: 4.77%

Shore Bancshares' 4.77% growth in Community Banking is driven by strategic expansion into underserved markets, increased adoption of digital banking platforms, and a focus on relationship-based lending. Additionally, the bank's commitment to community development and customer-centric approach have contributed to deposit growth and loan portfolio diversification.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Retail Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Lending

Provides mortgage loans to individuals and families for the purchase or refinance of a home.

Trust Services

Offers trust and estate administration services, including investment management and fiduciary services.

Investment Services

Provides investment advice and portfolio management services to individuals and institutions.

Insurance Services

Offers insurance products, including life insurance, disability insurance, and long-term care insurance.

8. Shore Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Shore Bancshares, Inc. operates in a highly competitive industry, but the threat of substitutes is moderate due to the complexity of banking services.

Bargaining Power Of Customers

Shore Bancshares, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Shore Bancshares, Inc. has a strong financial position, which reduces its dependence on suppliers.

Threat Of New Entrants

The banking industry is highly regulated, but new entrants can still pose a threat to Shore Bancshares, Inc. due to the increasing popularity of fintech companies.

Intensity Of Rivalry

The banking industry is highly competitive, and Shore Bancshares, Inc. faces intense rivalry from other banks and financial institutions.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.66%
Debt Cost	8.58%
Equity Weight	87.34%
Equity Cost	8.58%
WACC	8.58%
Leverage	14.50%

11. Quality Control: Shore Bancshares, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Shore Bancshares

A-Score: 6.6/10

Value: 7.4

Growth: 6.2

Quality: 6.3

Yield: 5.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

First Seacoast Bank

A-Score: 5.6/10

Value: 8.6

Growth: 2.0

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

Southern First

A-Score: 5.1/10

Value: 5.7

Growth: 5.2

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

ECB Bancorp

A-Score: 4.9/10

Value: 4.0

Growth: 7.0

Quality: 3.2

Yield: 0.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

Generations Bancorp NY

A-Score: 4.8/10

Value: 7.0

Growth: 2.3

Quality: 3.8

Yield: 0.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

Blue Foundry Bank

A-Score: 4.7/10

Value: 8.8

Growth: 5.1

Quality: 4.6

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.58%

Shore Bancshares, Inc. - US8251071051

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SHBI

1.c. Company Highlights

Weak Momentum

Expensive

Average Growth

Earnings Beats

Revenues Beats

Stable Momentum

Average Quality

Average Yield

Fairly Valued

Earnings Miss

Revenues Miss

Lower Growth

Strong Momentum

Better Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Community Banking

Expected Growth: 4.77%

7. Detailed Products

Commercial Banking

Retail Banking

Mortgage Lending

Trust Services

Investment Services

Insurance Services

8. Shore Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Shore Bancshares, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.89$

Current Price

17.89$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA