NASDAQ$SHBI

Shore Bancshares Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Shore Bancshares' third quarter earnings were reported, showing a decrease in net income compared to the previous quarter and the same period last year.

Shore Bancshares reported income from continuing operations of $3.391 million, or $0.27 per diluted common share, for the third quarter of 2020. The company strategically issued $25 million of subordinated notes and allocated $1.5 million to its allowance for loan losses. COVID-related loan deferrals were significantly reduced, and the common stock repurchase program was reinstated.

  • Income from continuing operations was $3.391 million, or $0.27 per diluted common share.
  • Net interest income increased by $252 thousand compared to the second quarter of 2020.
  • COVID-related loan deferrals decreased to approximately 1% of the outstanding loan balance.
  • The company repurchased approximately 310,800 shares of its common stock during the third quarter.

Headline financials

Total Revenue

$15.9M

Previous: $15.2M+4.3%
EPS (adj)

$0.27

Previous: $0.33-18.2%
Net Interest Margin

3.2%

Previous: 3.5%-9.9%
NPA to Total Assets

0.9%

No prior period
Capital Expenditures

-$1.79M

Previous: -$2M+10.5%
Free Cash Flow

$1.61M

Previous: $2.21M-27.4%
Net Income

$3.39M

Previous: $4.21M-19.4%
Operating Income

$3.73M

Previous: $4.85M-23.1%
Gross Profit

$14.4M

Previous: $15M-4.3%
Cash & Equivalents

$156M

Previous: $103M+51.4%
Total Assets

$1.83B

Previous: $1.56B+17.1%
Stock-Based Comp

$67K

Previous: $61K+9.8%

Revenue & EPS history

Shore Bancshares · Revenue · Quarterly

$15.9M

Q3 2020+4.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The company expects loan demand to improve as it approaches year-end and intends to maintain its quarterly cash dividends based on its strong capital position.

Tailwinds

  • Loan demand is anticipated to improve as we approach year-end.
  • The forgiveness of PPP loans which is anticipated in future quarters will have a positive impact on the net interest margin as these loans carry a much lower yield than our traditional loan portfolio.
  • The Company currently expects to maintain its quarterly cash dividends based on its strong capital position.
  • Reinstated common stock repurchase program on September 1, 2020.
  • Excess liquidity of approximately $100 million, which has yet to be fully invested.

Headwinds

  • The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be fully reopened.
  • 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 if high levels of unemployment continue for an extended period of time.
  • 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

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 Q3 2020

Historical avgQ3 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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