NASDAQ$SHBI

Shore Bancshares Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Shore Bancshares' first quarter performance in 2024 was reported, revealing a decrease in net income compared to both the previous and the corresponding quarter of the prior year, alongside proactive balance sheet management and stable credit trends.

Shore Bancshares reported a net income of $8.2 million for Q1 2024, a decrease from $10.5 million in Q4 2023 and $6.5 million in Q1 2023. The results were impacted by a $4.3 million fraud-related expense. The company focused on active balance sheet management, resulting in stable net interest margins and income, and is implementing cost-saving measures through branch closures and office space rationalization.

  • Net income for Q1 2024 was $8.2 million, or $0.25 per diluted share, compared to $10.5 million in Q4 2023 and $6.5 million in Q1 2023.
  • A $4.3 million fraud-related expense was recognized due to fraudulent credit card account openings, decreasing EPS by $0.10.
  • Net interest margin remained relatively stable at 3.08% for Q1 2024, compared to 3.09% for Q4 2023.
  • Total assets decreased to $5.8 billion at March 31, 2024, a 3.1% decrease compared to December 31, 2023.

Headline financials

Total Revenue

$47.7M

Previous: $31M+53.9%
EPS

$0.25

Previous: $0.35-28.6%
Return on Avg Assets

0.6%

No prior period
Return on Avg Equity

6.4%

No prior period
Return on Avg Tangible Equity

13.4%

No prior period
Efficiency Ratio (GAAP)

76.9%

No prior period
Efficiency Ratio (Non-GAAP)

62.4%

No prior period
Net Interest Margin

3.1%

Previous: 3.2%-3.1%
Net Charge-offs to Avg Loans

0.1%

No prior period
Nonaccrual Loans to Total Loans

0.3%

No prior period
NPA to Total Loans & OREO

0.3%

No prior period
Nonaccrual Loans to Total Assets

0.2%

No prior period
NPA to Total Assets

0.3%

No prior period
Equity to Assets

8.8%

No prior period
Tangible Equity to Tangible Assets

7.1%

No prior period
Noninterest Income to Avg Assets

0.5%

No prior period
Noninterest Expense to Avg Assets

2.6%

No prior period
Net Op Exp to Avg Assets (GAAP)

2.1%

No prior period
Net Op Exp to Avg Assets (Non-GAAP)

1.6%

No prior period
Net Interest Income

$41.1M

No prior period
Capital Expenditures

-$1.77M

Previous: -$619K-186.4%
Free Cash Flow

$6.41M

Previous: $5.84M+9.8%
Net Income

$8.18M

Previous: $6.46M+26.7%
Operating Income

-$10.6M

Previous: $3.62M-394.0%
Gross Profit

$47.3M

Previous: $29.9M+57.9%
Cash & Equivalents

$115M

Previous: $37.7M+203.8%
Total Assets

$5.83B

Previous: $3.55B+63.9%
Stock-Based Comp

$354K

Previous: $155K+128.4%

Revenue & EPS history

Shore Bancshares · Revenue · Quarterly

$47.7M

Q1 2024+53.9%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Management anticipates improving profitability in future quarters through active balance sheet management, expense reduction, and stable credit conditions.

Tailwinds

  • Active balance sheet management stabilized margins and net interest income.
  • Continued focus on expense reduction is expected to enhance future operating leverage.
  • Credit quality remains stable with no signs of significant deterioration.
  • The Company is well-positioned to deliver improving profitability in future quarters.
  • Branch closings and office space rationalization are expected to reduce costs.

Headwinds

  • The first quarter results were negatively impacted by a credit card fraud incident.
  • The Company is evaluating the future of its in-house credit card program.
  • Deposits decreased $201.8 million due to decreased rates paid on some deposits and expected seasonal cash outflows.
  • Total assets decreased by $185 million compared to December 31, 2023.
  • Nonperforming assets increased primarily due to increases in nonaccrual loans and repossessed marine loans.

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 2024

Historical avgQ1 2024

-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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