Announces Capital Actions Including a 5% Repurchase Authorization

Research evidence excerpt

Announces Capital Actions Including a 5% Repurchase Authorization

C O M PA N Y N O T E

M a y 2 1 , 2 0 2 6

Shore Bancshares, Inc. (SHBI) Overweight

CONCLUSION PRICE: US$19.70

After the close today, SHBI announced that its BoD has authorized a $30M share TARGET: US$22.00

repurchase program, which equates to ~4.5% of S/O at current price levels. Alongside this ~10.5x FY26E EPS

announcement, the company increased its quarterly cash dividend by $0.02 (or 17%) to

$0.14, which represents a 2.8% yield and ~27% payout ratio off of our 2026E EPS. We Justin Crowley

Sr. Research Analyst, Piper Sandler & Co.view both of these actions positively, and as a show of strength as the company has largely 212 466-7921, justin.crowley@psc.com

seen capital ratios return to pre-TCFC MOE levels. While we don't think the announcement

Bader Hijleh, CFA

will come as a huge surprise to investors, we do think it's still a notable milestone as SHBI Research Analyst, Piper Sandler & Co.

has not been active buying back stock as a combined company (deal closed in July 2023) 203 930-2758, bader.hijleh@psc.com

and last increased its dividend in 2019.

Changes Previous Current

Rating — Overweight

• No change to EPS estimates. The idea of entertaining share repurchases had become Price Tgt — US$22.00

an increasing part of the conversation with SHBI given where capital ratios had grown FY26E EPS — US$2.10

to (TRBC at 14.08% and CET1 at 10.97% as of 3/31), and we had expected this was FY27E EPS — US$2.30

ultimately something management would provide more of an update on by mid-year as Market Cap. (mil) US$658.8

the company approached internal targets. We think the potential for capital return is a Book Value/Share US$18.02

positive for the story and an important show of confidence.