SHORE BANCSHARES INCSHBI

SHORE BANCSHARES INC Leases Disclosure

10-KFiled Mar 2, 20262 min read
Leases
Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease.
The Company’s long-term lease agreements for branches and offices are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.
The following tables present information about the Company’s leases as of and for the periods presented.
($ in thousands)December 31, 2025December 31, 2024
Right-of-use assets$10,523 $11,385 
Lease liabilities$11,027 $11,844 
Weighted-average remaining lease term 8.91 years10.20 years
Weighted-average discount rate3.42 %3.29 %
Remaining lease term – min0.36 years0.01 years
Remaining lease term – max15.68 years16.68 years
Year Ended December 31,
Lease cost ($ in thousands)
202520242023
Operating lease cost$2,009 $1,916 $1,645 
Total lease cost$2,009 $1,916 $1,645 
Cash paid for amounts included in the measurement of lease liabilities$1,954 $1,809 $1,553 
The following table presents a maturity analysis of operating lease liabilities and a reconciliation of the undiscounted cash flows to total operating lease liabilities at December 31, 2025.
Lease payments due ($ in thousands)
December 31, 2025
2026$2,020 
20271,869 
20281,779 
20291,355 
2030997 
Thereafter4,578 
Total undiscounted cash flows12,598 
Less: imputed interest1,571 
Lease liabilities$11,027 
Total gross rental income was $1.1 million, $1.1 million and $1.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Free Sentinel

Want the next SHORE BANCSHARES INC leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment SHORE BANCSHARES INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 10, 2025
2023Mar 15, 2024
2022Mar 30, 2023
2021Mar 31, 2022
2020Mar 26, 2021
2019Mar 13, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance