SHORE BANCSHARES INCSHBI
SHORE BANCSHARES INC Debt Disclosure
Borrowings
The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the FHLB, to meet short-term liquidity needs.
The following table summarizes certain information of the Company’s borrowings as of and for the years ended December 31, 2025 and 2024.
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| ($ in thousands) | Amount | Rate | Amount | Rate | ||||||||||||||||||||||
| Average for the year | ||||||||||||||||||||||||||
| FHLB advances – variable | $ | 602 | 4.64 | % | $ | 37,648 | 5.66 | % | ||||||||||||||||||
| FHLB advances – fixed | 42,466 | 4.85 | 32,650 | 4.87 | ||||||||||||||||||||||
| At year end | ||||||||||||||||||||||||||
| FHLB advances – variable | $ | — | — | % | $ | — | — | % | ||||||||||||||||||
FHLB advances – fixed(1) | — | — | 50,000 | 4.79 | ||||||||||||||||||||||
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(1) Fixed-rate advance with an option of terminating at predetermined dates, without incurring a prepayment fee.
Securities sold under agreements to repurchase are securities sold to customers, at the customers’ request, under a “roll-over” contract that matures in one business day. The underlying securities sold are U.S. government agency securities, which are segregated in the Company’s custodial accounts from other investment securities.
The Company had $95.0 million of federal funds lines of credit and a reverse repurchase agreement available on a short-term basis from correspondent banks at December 31, 2025 and 2024. In addition, the Company had secured credit availability of approximately $754.4 million from the FHLB at December 31, 2025. The Company has pledged as collateral, under a blanket lien, all qualifying residential loans under borrowing agreements with the FHLB. The Company had letters of credit with FHLB of $33.7 million and $6.1 million as of December 31, 2025 and 2024, respectively. These letters of credit are used to secure public deposits held with various municipal customers.
The following table summarizes certain information of the Company’s long-term debt as of December 31, 2025 and 2024.
| ($ in thousands) | December 31, 2025 | December 31, 2024 | Issue Date | Stated Maturity Date | Earliest Call Date | Interest Rate | ||||||||||||||||||||||||||||||||
| Subordinated Debentures due September 2030 | $ | — | $ | 25,000 | 2020 | 2030 | 2025 | 5.375% through September 2025, 3-month SOFR* + 5.265% thereafter | ||||||||||||||||||||||||||||||
| Subordinated Debentures due October 2030 | — | 19,500 | 2020 | 2030 | 2025 | 4.75% through October 2025, 3-month SOFR + 4.58% thereafter | ||||||||||||||||||||||||||||||||
| Subordinated Debentures due November 2035 | 60,000 | — | 2025 | 2035 | 2030 | 6.25% through November 2030, 3-month SOFR + 2.88% thereafter | ||||||||||||||||||||||||||||||||
| Total subordinated debentures | 60,000 | 44,500 | ||||||||||||||||||||||||||||||||||||
| Severn Capital Trust I | 20,619 | 20,619 | 2004 | 2035 | 3-month SOFR + 2.26% | |||||||||||||||||||||||||||||||||
| Tri-County Capital Trust I | 7,217 | 7,217 | 2004 | 2034 | 90-day SOFR + 2.86% | |||||||||||||||||||||||||||||||||
| Tri-County Capital Trust II | 5,155 | 5,155 | 2005 | 2035 | 90-day SOFR + 1.96% | |||||||||||||||||||||||||||||||||
| Total trust preferred securities | 32,991 | 32,991 | ||||||||||||||||||||||||||||||||||||
| Less: net discount and unamortized issuance costs | (3,930) | (3,774) | ||||||||||||||||||||||||||||||||||||
| Total long-term debt | $ | 89,061 | $ | 73,717 | ||||||||||||||||||||||||||||||||||
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* Secured Overnight Financing Rate (“SOFR”).
At December 31, 2025, subordinated debentures consisted of $60.0 million of long-term debt issued by the Company in November 2025. As of December 31, 2025, the recorded balance of subordinated debt issued by the Company, net of unamortized issuance costs and fair value discounts, was $58.9 million. The Company has the option to redeem the subordinate notes in part or whole as of November 15, 2030. As of December 31, 2025, 100% of the subordinated debt was considered Tier 2 capital under current regulatory guidelines.
The Company assumed trust preferred securities in the aggregate of $33.0 million as a result of the merger with TCFC in 2023 and the acquisition of Severn in 2021. Trust preferred securities consisted of $20.6 million issued by Severn Capital Trust I, $7.2 million issued by Tri-County Capital Trust I and $5.2 million issued by Tri-County Capital Trust II. The recorded balance of the junior subordinated debt securities of Severn Capital Trust I at December 31, 2025 was $19.0 million, net of the unamortized fair value adjustment of $1.7 million. At December 31, 2025, the junior subordinated debt securities of Tri-County Capital Trust I and Tri-County Capital Trust II had a recorded balance of $6.7 million and $4.5 million, respectively, which are presented net of the unamortized fair value adjustments of $504 thousand and $661 thousand, respectively. As of December 31, 2025, the entire amount of trust preferred securities debt is considered Tier 2 capital under current regulatory guidelines.
The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the Federal Home Loan Bank (“FHLB”) to meet short-term liquidity needs. The Company had no outstanding borrowings from the FHLB at December 31, 2025, and had $50.0 million outstanding at December 31, 2024. The Company did not have any correspondent federal fund lines at December 31, 2025 and 2024.Free Sentinel
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 26, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 11, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.