SHORE BANCSHARES INC (SHBI): auditor change — Shore Bancshares restates Q3 2023 results, net loss widens to $9.7M from $6.4M

SHORE BANCSHARES INC

Error in recording net deferred tax assets from TCFC acquisition overstated bargain purchase gain by $3.4M.
Q3 2023 net loss restated to $9.7M from $6.4M; diluted loss per share to $0.29 from $0.19.
Nine-month 2023 net income decreased to $0.7M from $4.1M; diluted EPS to $0.03 from $0.17.
Tangible common equity ratio reduced to 6.93% from 7.00%; risk-based capital ratios also lowered.
Audit committee concluded prior Q3 2023 financials should no longer be relied upon.

item 4.02 item 9.01

Key facts

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Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

SHORE BANCSHARES INC reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: Yount, Hyde & Barbour, P.C.

Exact text from the filing

(the “Company”), in consultation with management and the Company’s independent registered public accounting firm, Yount, Hyde & Barbour, P.C. (“YHB”), concluded that the Company’s unaudited financial statements for the three and nine months ended September 30, 2023 (the “Unaudited Financial Statements”) included in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “2023 Q3 10-Q”) filed with the Securities and Exchange Commission (the “SEC”) on November 14, 2023, contained an error related to the improper recording of the net deferred tax assets attributable to the Company’s acquisition of The Community Financial Corporation (“TCFC”).

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Source: SEC EDGAR

accession 0001628280-23-041716

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