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Mar 31, 2020
Shore Bancshares Q1 2020 Earnings Report
Shore Bancshares reported first quarter financial results, showing a decrease in income from continuing operations compared to both the previous quarter and the same quarter last year.
Key Takeaways
Shore Bancshares reported income from continuing operations of $3.118 million, or $0.25 per diluted common share, for the first quarter of 2020. This compares to $4.014 million, or $0.32 per diluted common share for the fourth quarter of 2019, and $3.828 million, or $0.30 per diluted common share for the first quarter of 2019. The decrease in income from continuing operations was primarily due to increases in noninterest expenses and provision for credit losses, partially offset by increases in noninterest income and net interest income.
Income from continuing operations was $3.118 million, or $0.25 per diluted common share.
Total assets were $1.571 billion at March 31, 2020, a slight increase from the end of 2019.
Net interest income was $12.5 million for the first quarter of 2020.
The company processed over 1,000 PPP loans totaling approximately $114 million as of April 30, 2020.
Forward Guidance
The Company expects to maintain its quarterly cash dividends based on its strong capital position and is committed to supporting its customers, employees and shareholders during the challenging times.
Positive Outlook
- Branches remain open to serve individuals.
- Participating in the Payment Protection Program (PPP).
- Processed over 1,000 PPP loans for small business customers totaling approximately $114 million as of April 30, 2020.
- Collateral pledged to the Federal Home Loan Bank of approximately $300 million can be utilized for borrowing purposes.
- Capital position remains strong.
Challenges Ahead
- The demand for our products and services may decline, making it difficult to grow assets and income.
- If the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income.
- Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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