NASDAQ$SHBI

Shore Bancshares Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported an increase in net income due to growth in net interest income and a decrease in provision for credit losses.

Shore Bancshares reported a net income of $4.617 million, or $0.39 per diluted common share, for the third quarter of 2021. The company saw increases in net interest income and decreases in the provision for credit losses, which were partially offset by an increase in noninterest expense. Loan growth, excluding PPP lending, was up 9.2% for the first nine months of 2021.

  • Net income increased by $1.2 million compared to Q3 2020, driven by higher net interest income and noninterest income, along with a decrease in the provision for credit losses.
  • Net interest income rose to $15.6 million, driven by increases in interest and fees on loans and interest on taxable investment securities.
  • Total assets reached $2.261 billion, a 16.9% increase compared to the end of 2020, due to increases in investment securities and interest-bearing deposits with other banks.
  • The company expects to maintain its quarterly cash dividends based on its strong capital position.

Headline financials

Total Revenue

$18.5M

Previous: $15.9M+16.6%
EPS (adj)

$0.39

Previous: $0.27+44.4%
Return on Avg Assets

0.8%

No prior period
Return on Avg Equity

17.6%

No prior period
Net Interest Margin

3.0%

Previous: 3.2%-5.7%
Capital Expenditures

-$3.11M

Previous: -$1.79M-73.9%
Free Cash Flow

$1.51M

Previous: $1.61M-5.9%
Net Income

$4.62M

Previous: $3.39M+36.1%
Operating Income

$5.74M

Previous: $3.73M+54.0%
Gross Profit

$18.2M

Previous: $14.4M+26.8%
Cash & Equivalents

$311M

Previous: $156M+98.7%
Total Assets

$2.26B

Previous: $1.83B+23.7%
Stock-Based Comp

$91K

Previous: $67K+35.8%

Revenue & EPS history

Shore Bancshares · Revenue · Quarterly

$18.5M

Q3 2021+16.6%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Shore Bancshares anticipates completing its merger with Severn Bancorp, Inc. effective October 31, 2021, which is expected to enhance franchise value and expand markets.

Tailwinds

  • Merger with Severn Bancorp expected to be completed
  • Shareholder approvals received for the acquisition of Severn
  • Teams working diligently for a successful transition with limited disruptions
  • Acquisition expected to enhance franchise value
  • Acquisition expected to expand markets and business lines

Headwinds

  • All share repurchases have been suspended due to the current status of the merger with Severn.
  • Merger-related expenses have been recorded and will continue to be recognized in future quarters.
  • Excess liquidity continues to create downward pressure on net interest margin.
  • COVID-19 pandemic and related economic consequences create uncertainty.
  • 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 Q3 2021

Historical avgQ3 2021

-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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