Shore Bancshares Q2 profit rises on higher net interest income - SHBI News | RalliesShore Bancshares Q2 profit rises on higher net interest income
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SHBI• Outlook
- The company expects ongoing expense management and technology investments to improve operating leverage over time.
- Shore Bancshares said it remains focused on strategy execution and positioning for long-term growth.
Overview
- U.S. regional bank's Q2 net income and EPS rose yr/yr and sequentially
- Company launched a $30 million share repurchase program and raised its quarterly dividend by 16.7%
- Q2 results were driven by lower interest expense, higher noninterest income, and reduced salaries
Result drivers
- Lower interest expense - Q2 benefited from a $1.3 million decrease in interest expense, mainly on deposits, reflecting rate reductions.
- Higher noninterest income - Other noninterest income rose $1.2 million, mainly from increased fees for bank services.
- Lower salaries and benefits - Salaries and employee benefits fell $1.2 million, mainly due to lower employee-related taxes.
Key details and analyst coverage
| Metric | Actual |
|---|
| Q2 EPS | $0.56 |
| Q2 Net Income | $18.87 million |
| Q2 Net Interest Income | $53.005 million |
| Q2 Credit Loss Provision | $896,000 |
| Q2 Pretax Profit | $25.19 million |
- The current average analyst rating on the shares is buy, with 2 strong buy or buy, 2 hold, and no sell or strong sell ratings.
- The average consensus recommendation for the banks peer group is buy.
- Wall Street's median 12-month price target for Shore Bancshares Inc is $22.00, about 3.8% below its July 22 closing price of $22.87.
- The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago.
