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Shore Bancshares (Shore Bancshares) ROA % : 0.72% (As of Dec. 2023)


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What is Shore Bancshares ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Shore Bancshares's annualized Net Income for the quarter that ended in Dec. 2023 was $42.0 Mil. Shore Bancshares's average Total Assets over the quarter that ended in Dec. 2023 was $5,859.8 Mil. Therefore, Shore Bancshares's annualized ROA % for the quarter that ended in Dec. 2023 was 0.72%.

The historical rank and industry rank for Shore Bancshares's ROA % or its related term are showing as below:

SHBI' s ROA % Range Over the Past 10 Years
Min: 0.24   Med: 0.86   Max: 1.74
Current: 0.25

During the past 13 years, Shore Bancshares's highest ROA % was 1.74%. The lowest was 0.24%. And the median was 0.86%.

SHBI's ROA % is ranked worse than
85.25% of 1464 companies
in the Banks industry
Industry Median: 0.9 vs SHBI: 0.25

Shore Bancshares ROA % Historical Data

The historical data trend for Shore Bancshares's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shore Bancshares ROA % Chart

Shore Bancshares Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.06 0.90 0.57 0.90 0.24

Shore Bancshares Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.97 0.73 0.45 -0.83 0.72

Competitive Comparison of Shore Bancshares's ROA %

For the Banks - Regional subindustry, Shore Bancshares's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Shore Bancshares's ROA % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Shore Bancshares's ROA % distribution charts can be found below:

* The bar in red indicates where Shore Bancshares's ROA % falls into.



Shore Bancshares ROA % Calculation

Shore Bancshares's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=11.228/( (3477.276+6010.918)/ 2 )
=11.228/4744.097
=0.24 %

Shore Bancshares's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=41.96/( (5708.725+6010.918)/ 2 )
=41.96/5859.8215
=0.72 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Shore Bancshares  (NAS:SHBI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=41.96/5859.8215
=(Net Income / Revenue)*(Revenue / Total Assets)
=(41.96 / 196.284)*(196.284 / 5859.8215)
=Net Margin %*Asset Turnover
=21.38 %*0.0335
=0.72 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Shore Bancshares ROA % Related Terms

Thank you for viewing the detailed overview of Shore Bancshares's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shore Bancshares (Shore Bancshares) Business Description

Traded in Other Exchanges
N/A
Address
18 East Dover Street, Easton, MD, USA, 21601
Shore Bancshares Inc is a financial holding company. It offers personalized banking, insurance, and investment services to families and businesses in the Mid-Atlantic region. It operates in two business segments - community banking and mortgage banking. Community banking is conducted through the Bank and involves delivering a broad range of financial services, including lending and deposit-taking, to individuals and commercial enterprises, it also includes treasury and administrative functions. Mortgage banking is conducted through the Bank's secondary marketing department and involves originating first and second-lien residential mortgages for sale in the secondary market.
Executives
John Lamon director 62 EAST LAKE DRIVE, ANNAPOLIS MD 21403
Dawn M. Willey director 18 E. DOVER STREET, EASTON MD 21601
Kelly Clyde V. Iii director 28969 INFORMATION LANE, EASTON MD 21601
Konrad Wayson director 5378 SUDLEY ROAD, WEST RIVER MD 20778
Christy Lombardi officer: Chief Human Resources Officer 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Slater A Joseph Jr director 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Jenkins Louis P Jr director 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Stone Joseph V Jr director C/O TRI-COUNTY FINANCIAL CORPORATION, 3035 LEONARDTOWN ROAD, WALDORF MD 20601
James M Burke director, officer: President & CEO 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Mary Todd Peterson director 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Todd L Capitani officer: EVP & CFO 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Sanders Edward Lawrence Iii director C/O THE COMMUNITY FINANCIAL CORPORATION, 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Brian Scot Ebron officer: Chief Banking Officer C/O THE COMMUNITY FINANCIAL CORPORATION, 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Tala Tay officer: Chief Risk Officer C/O THE COMMUNITY FINANCIAL CORPORATION, 3035 LEONARDTOWN ROAD, WALDORF MD 20601
Rebecca Middleton Mcdonald director C/O THE COMMUNITY FINANCIAL CORPORATION, 3035 LEONARDTOWN ROAD, WALDORF MD 20601

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