Shore Bancshares Q3 net income falls sequentially on higher credit-loss provision
Overview
US regional bank's Q3 net income rose yr/yr but declined from prior qtr
Q3 net interest income and margin improved, driven by higher interest income and lower expenses
Company repurchased 148,006 shares for $3.4 mln in Q3
Outlook
Company expects ongoing expense management and technology investments to improve operating leverage
Company says elevated interest rates may pressure some borrowers' debt service capacity and liquidity
Company may use prudent loan modifications to support borrower repayment performance
Result Drivers
LOAN PAYOFFS - Elevated accretion income from loan payoffs contributed to higher net interest income and margin
NONINTEREST INCOME DECLINE - Lower banking revenue and fees reduced noninterest income
CREDIT LOSS PROVISION - Higher provision for credit losses driven by partial charge-off on downgraded multifamily loans
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.50 | ||
Q3 Net Income | $16.77 mln | ||
Q3 Credit Loss Provision | $5.27 mln | ||
Q3 Pretax Profit | $22.27 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Shore Bancshares Inc is $25.00, about 9.4% above its October 21 closing price of $22.85
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 22 - Huntington Bancshares Q3 EPS unchanged, net interest income up
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)