Shore Bancshares Q4 net income rises to $15.9 mln

Overview

• U.S. financial holding company's Q4 net income rose to $15.9 mln, driven by higher net interest income

• Net interest income for Q4 increased to $50.4 mln, supporting net income growth

• Company's asset quality remains solid despite increase in nonperforming assets

Outlook

• Company did not provide specific guidance for future quarters or years

Result Drivers

• NET INTEREST INCOME - Increased by $1.8 mln due to modest loan growth and higher yields on investments, coupled with a lower cost of deposits

• NONINTEREST INCOME - Increased by $966 thousand due to one-time insurance proceeds

• NONINTEREST EXPENSE - Increased by $1.1 mln due to higher professional service fees and asset writedowns

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 $18.50, about 0.2% below its January 27 closing price of $18.54

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn9jSK0la

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