NASDAQ$SHBI

Shore Bancshares Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Shore Bancshares reported positive second quarter results driven by decrease in noninterest expenses and increases in net interest and noninterest income, despite increased provision for credit losses.

Shore Bancshares, Inc. reported income from continuing operations of $5.335 million, or $0.43 per diluted common share, for the second quarter of 2020. The company experienced growth in net interest income and noninterest income, coupled with a decrease in noninterest expense.

  • Income from continuing operations increased compared to both the previous quarter and the same quarter last year.
  • Net income increased due to a decrease in noninterest expenses and increases in net interest income and noninterest income.
  • Total assets increased due to growth in gross loans and deposits.
  • The Company provided total loan deferrals of $221.1 million which consists of 15.7% of the total loan portfolio as of June 30, 2020.

Headline financials

Total Revenue

$15.8M

Previous: $14.9M+6.0%
EPS (adj)

$0.43

Previous: $0.33+30.3%
Net Interest Margin

3.4%

Previous: 3.5%-3.7%
Capital Expenditures

-$1.48M

Previous: -$545K-170.8%
Free Cash Flow

$3.86M

Previous: $3.68M+4.9%
Net Income

$5.34M

Previous: $4.22M+26.3%
Operating Income

$6.86M

Previous: $5.67M+20.8%
Gross Profit

$14.8M

Previous: $14.7M+0.7%
Cash & Equivalents

$126M

Previous: $39.3M+221.5%
Total Assets

$1.72B

Previous: $1.49B+15.5%
Stock-Based Comp

$62K

Previous: -$32K+293.8%

Revenue & EPS history

Shore Bancshares · Revenue · Quarterly

$15.8M

Q2 2020+6%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company expects to maintain quarterly cash dividends based on its strong capital position.

Tailwinds

  • Maintaining open branch locations with normal hours.
  • Expanded capabilities at drive-thru locations.
  • Promoting online and mobile banking.
  • Providing fee waivers and loan payment deferrals for customers impacted by the pandemic.
  • Actively participating in the PPP program.

Headwinds

  • The demand for our products and services may decline, making it difficult to grow assets and income
  • Loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income
  • Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase
  • Our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income
  • Cyber security risks are increased as the result of an increase in the number of employees working remotely

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 Q2 2020

Historical avgQ2 2020

-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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