NASDAQ$SHBI

Shore Bancshares Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Shore Bancshares' financial performance for Q1 2023 was reported, showing a decrease in net income compared to the previous quarter but an increase compared to the same quarter last year.

Shore Bancshares reported a net income of $6.457 million, or $0.32 per diluted common share, for the first quarter of 2023. The company's total assets increased by $76.4 million compared to the end of 2022, primarily due to an increase in loans held for investment.

  • Net income for Q1 2023 was $6.457 million, or $0.32 per diluted common share.
  • Total assets increased by $76.4 million, or 2.2%, compared to December 31, 2022.
  • Total deposits decreased by $15.2 million, or less than 1.0%, compared to December 31, 2022.
  • The company expects to complete the merger with TCFC on or about July 1st.

Headline financials

Total Revenue

$31M

Previous: $28.5M+8.9%
EPS (adj)

$0.35

Previous: $0.31+12.9%
Net Interest Margin

3.2%

Previous: 2.8%+14.4%
Capital Expenditures

-$619K

Previous: -$974K+36.4%
Free Cash Flow

$5.84M

Previous: $4.64M+25.8%
Net Income

$6.46M

Previous: $5.61M+15.0%
Operating Income

$3.62M

Previous: $8.08M-55.2%
Gross Profit

$29.9M

Previous: $27.9M+7.4%
Cash & Equivalents

$37.7M

Previous: $571M-93.4%
Total Assets

$3.55B

Previous: $3.49B+1.7%
Stock-Based Comp

$155K

Previous: $130K+19.2%

Revenue & EPS history

Shore Bancshares · Revenue · Quarterly

$31M

Q1 2023+8.9%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The company anticipates completing the merger with TCFC on or about July 1st. However, forward-looking statements involve risks and uncertainties, including economic conditions, interest rate policies, and regulatory changes.

Tailwinds

  • All bank regulatory approvals have been received for the TCFC merger.
  • The merger is expected to be completed on or about July 1st.
  • Total assets increased by $76.4 million since the end of 2022.
  • Loans held for investment increased by $112.6 million.
  • Transitioned existing deposits to our insured cash sweep (“ICS”) program during the first quarter, which not only helped alleviate deposit outflows but generated inflows from new and existing customers.

Headwinds

  • The company anticipates additional merger-related expenses due to the pending TCFC acquisition.
  • Net income decreased $2.2 million due to decreases in net interest income and noninterest income, coupled with increases in noninterest expense and provision for credit losses.
  • Total deposits decreased $15.2 million, or less than 1.0%, when compared to December 31, 2022.
  • Decreases in noninterest income from the mortgage division are primarily attributable to the general rise in interest rates that continue to put pressure on the mortgage market, resulting in declines in home loan sales and home loan refinances.
  • There can be no assurance that future developments affecting the Company will be the same as those anticipated by management.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+6.6%

Q3 2016

Best reaction

-13.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+2.0%+5.4%
Q4 2025+0.4%+7.5%+1.1%
Q3 2025-0.3%-1.1%+5.1%
Q2 2025-2.1%-0.9%+6.0%
Q1 2025+2.8%+3.5%+1.8%
Q4 2024+3.5%+3.0%-4.1%
Q3 2024-0.7%+1.2%+14.6%
Q2 2024+6.3%+6.2%+2.5%
Q1 2024+6.3%+5.2%+7.2%
Q4 2023-11.3%-18.9%-18.1%
Q3 2023+5.8%+12.0%+23.1%
Q2 2023-9.1%-10.6%-17.9%
Q1 2023+2.2%-10.0%-13.9%
Q4 2022-2.0%+0.6%-1.9%
Q3 2022+6.6%+7.7%+7.4%
Q2 2022+0.8%-0.4%+0.5%
Q1 2022+0.2%-0.9%-0.8%
Q4 2021+2.9%+7.8%+5.1%
Q3 2021+3.2%+6.0%+10.6%
Q2 2021+1.3%+1.6%+4.0%
Q1 2021+1.0%-0.1%+3.1%
Q4 2020-3.6%-0.9%+11.3%
Q3 2020-1.5%-7.6%+13.3%
Q2 2020+0.0%+1.2%+2.5%
Q1 2020-13.1%-20.7%-14.2%
Q4 2019+0.6%+0.5%-3.7%
Q3 2019+1.6%+0.9%+4.2%
Q2 2019+0.4%+1.4%-7.6%
Q1 2019+5.2%+4.8%+5.4%
Q4 2018+0.5%-2.3%+3.4%
Q3 2018-5.2%-7.1%-7.9%
Q2 2018-0.7%+1.7%-0.6%
Q1 2018+0.4%+1.1%-1.2%
Q4 2017-1.1%+2.5%-2.0%
Q3 2017+2.1%+0.5%+1.2%
Q2 2017-1.3%+0.7%-3.7%
Q1 2017-1.9%-0.8%-8.4%
Q4 2016+1.1%+0.1%+9.8%
Q3 2016+6.6%+8.9%+17.7%
Q2 2016+1.4%+4.3%+2.7%
Q1 2016-2.8%
Q4 2015-1.7%
Q3 2015+3.1%
Q2 2015-0.6%
Q1 2015+1.2%
Q4 2014-0.4%
Q3 2014-0.3%
Q2 2014+1.0%
Q1 2014-0.3%
Q4 2013+0.7%
Q3 2013-0.7%
Q2 2013+3.2%
Q1 2013+1.6%
Q4 2012-0.7%
Q3 2012-1.0%
Q2 2012-2.7%
Q1 2011+5.3%
Q1 2012+0.1%
Q4 2010-0.2%
Q4 2011-0.2%
Q4 2009-0.2%
Q3 2011-3.8%
Q3 2010-3.8%
Q2 2010-12.0%
Q2 2011-12.0%
Q1 2010+3.0%

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