NASDAQ$SHBI

Shore Bancshares Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Shore Bancshares reported net income for the fourth quarter and annual results.

Shore Bancshares, Inc. reported a net income of $10.5 million for Q4 2023, a significant increase compared to the net loss of $9.7 million in Q3 2023 and net income of $8.4 million for Q4 2022. The company experienced deposit growth, with total deposits increasing by 5.43% to $5.4 billion. However, the net interest margin decreased to 3.09% due to deposit growth and less net accretion income.

  • Net interest margin decreased to 3.09% due to deposit growth and less net accretion income.
  • Total deposits increased 5.43% to $5.4 billion, and non-interest bearing deposits increased 3.8% to $1.3 billion.
  • Total funding increased $210.4 million to $5.4 billion, with no FHLB advances and a reduction in brokered deposits.
  • Non-accrual loans, OREO, and loan modifications were $13.3 million, representing 0.22% of total assets.

Headline financials

Total Revenue

$41.5M

Previous: $27M+53.9%
EPS (adj)

$0.32

Previous: $0.46-30.4%
Net Interest Margin

3.1%

Previous: 3.4%-7.8%
Capital Expenditures

$2.3M

Previous: $141K+1531.2%
Net Income

$10.5M

Previous: $8.41M+24.8%
Gross Profit

$78.7M

Previous: $32.8M+139.9%
Stock-Based Comp

$321K

Previous: $159K+101.9%

Revenue & EPS history

Shore Bancshares · Revenue · Quarterly

$41.5M

Q4 2023+53.9%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Shore Bancshares anticipates loan growth exceeding previous guidance of 4-6% in 2024, driven by customer interest and deposit growth experienced in Q4. The company will focus on streamlining processes, unlocking operational efficiencies, and reducing noninterest expenses to enhance shareholder value.

Tailwinds

  • Improved liquidity provides an opportunity to grow loans and stabilize margins.
  • Continued focus on expenses and implementation of expense-reduction initiatives, including a 7% reduction in headcount.
  • Considerable scale, diversification, and resources position the company to enhance shareholder value.
  • Effective risk management.
  • Outstanding service to customers.

Headwinds

  • Stable interest income was offset by higher interest expenses due to increased liquidity and pressure on the cost of deposits.
  • Net interest margin decreased due to deposit growth and less net accretion income.
  • FDIC insurance premiums are expected to be between $1.0 million and $1.2 million per quarter in 2024.
  • Uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System.
  • Potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election.

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 Q4 2023

Historical avgQ4 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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