# EDGAR Filing Document

**Accession Number:** 0001035092
**File Stem:** 0001035092-26-000023
**Filing Date:** 2026-4
**Character Count:** 73366
**Document Hash:** 52735aa8f57461e9ca4f27d08dd01f7b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001035092-26-000023.hdr.sgml**: 20260423

**ACCESSION NUMBER**: 0001035092-26-000023

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260423

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260423

**DATE AS OF CHANGE**: 20260423

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SHORE BANCSHARES INC
- **CENTRAL INDEX KEY:** 0001035092
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 521974638
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-22345
- **FILM NUMBER:** 26888436

**BUSINESS ADDRESS:**
- **STREET 1:** 18 EAST DOVER STREET
- **CITY:** EASTON
- **STATE:** MD
- **ZIP:** 21601-3013
- **BUSINESS PHONE:** 4108221400

**MAIL ADDRESS:**
- **STREET 1:** 18 EAST DOVER STREET
- **CITY:** EASTON
- **STATE:** MD
- **ZIP:** 21601-3013

?xml version='1.0' encoding='ASCII'? shbi-20260423

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): April 23, 2026

![Shore_Bancshares_Logo.jpg](shbi-20260423_g1.jpg)

**<u>SHORE BANCSHARES, INC.</u>**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **000-22345** | **52-1974638** |
| (State or other jurisdiction of incorporation or organization) | (Commission file number) | (IRS Employer Identification No.) |

---

**<u>18 E. Dover Street, Easton, Maryland 21601</u>**

(Address of principal executive offices) (Zip Code)

**<u>(410) 763-7800</u>**

(Registrant's telephone number, including area code)

**<u>Not Applicable</u>**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
| **Common stock, $0.01 par value per share** | **SHBI** | **The NASDAQ Global Select Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 2.02 Result of Operation and Financial Condition**

On April 23, 2026, Shore Bancshares, Inc. (the "Company") issued a press release announcing its results of operations and financial condition for the three months ended March 31, 2026. A copy of the Company's press release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits**

(d)Exhibits.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[99.1](shbi-20260331xexx991.htm)</u> | <u>[Press Release, dated](shbi-20260331xexx991.htm)April 23, 2026[(filed herewith)](shbi-20260331xexx991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **SHORE BANCSHARES, INC.** | **SHORE BANCSHARES, INC.** |
| Dated: April 23, 2026 | By: | /s/ James M. Burke |
|  |  | James M. Burke |
|  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

![shore_bancsharesxlogo.jpg](shore_bancsharesxlogo.jpg)

**18 E. Dover Street**

**Easton, Maryland 21601**

**Phone (410) 763-7800**

**PRESS RELEASE**

**<u>Shore Bancshares, Inc. Reports 2026 First Quarter Results</u>**

**Easton, Maryland (April 23, 2026)** – Shore Bancshares, Inc. (NASDAQ – SHBI) (the "Company" or "Shore Bancshares"), the holding company for Shore United Bank, N.A. (the "Bank"), reported record net income for the first quarter of 2026 of $17.1 million, or $0.51 per diluted common share, compared to net income of $15.9 million, or $0.48 per diluted common share, for the fourth quarter of 2025, and net income of $13.8 million, or $0.41 per diluted common share, for the first quarter of 2025.

**First Quarter 2026 Highlights**

**• Net Income** – Net income for the first quarter of 2026 increased $1.2 million to a record $17.1 million from $15.9 million in the fourth quarter of 2025. Net income increased primarily due to an increase in net interest income of $2.4 million and a decrease in the provision for credit losses of $2.7 million, partially offset by lower noninterest income of $1.7 million and an increase in noninterest expense of $1.6 million. The lower noninterest income was due to a one-time receipt of insurance proceeds in the fourth quarter of 2025.

• **Return on Average Assets ("ROAA")** – The Company reported ROAA of 1.12% for the first quarter of 2026, compared to 1.02% for the fourth quarter of 2025 and 0.91% for the first quarter of 2025. Adjusted ROAA – non-U.S. generally accepted accounting principles ("GAAP")<sup>(1)</sup> was 1.22% for the first quarter of 2026, compared to 1.11% for the fourth quarter of 2025 and 1.02% for the first quarter of 2025.

**• Net Interest Margin ("NIM")** – Net interest income for the first quarter of 2026 increased $2.4 million to $52.6 million compared to the fourth quarter of 2025. NIM increased 21 basis points ("bps") to 3.64% during the first quarter of 2026 compared to the fourth quarter of 2025. NIM excluding accretion<sup>(1)</sup> increased for the comparable periods from 3.24% to 3.35%. Excluding accretion interest, loan yields decreased 1 bp and funding costs decreased 13 bps for the comparable periods. Net interest income increased due to accelerated accretion due to loan payoffs coupled with a lower cost of deposits and lower long-term borrowing expenses. These favorable changes were partially offset by lower yields on interest-bearing deposits with other institutions.

• **Book Value per Share –** Book value per share increased to $18.02 at March 31, 2026 from $17.65 at December 31, 2025 and $16.55 at March 31, 2025.

**• Asset Quality** – Nonperforming assets were 1.10% of total assets at March 31, 2026, an increase from 0.69% at December 31, 2025 and 0.31% at March 31, 2025. Classified assets were 1.38% of total assets at March 31, 2026, an increase when compared to 0.96% at December 31, 2025 and 0.36% at March 31, 2025. The allowance for credit losses ("ACL") was $58.5 million at March 31, 2026, compared to $58.8 million at December 31, 2025 and $58.0 million at March 31, 2025. The ACL as a percentage of loans increased to 1.21% at March 31, 2026 compared to 1.20% at December 31, 2025 and remained flat compared to March 31, 2025.

**• Operating Leverage** – The efficiency ratio for the first quarter of 2026 was 61.97%, compared to 60.06% in the fourth quarter of 2025 and 63.64% for the first quarter of 2025. The adjusted efficiency ratio – non-GAAP<sup>(1)</sup>, which excludes amortization of intangibles, was 58.57% for the first quarter of 2026, compared to 56.59% for the fourth quarter of 2025 and 59.25% for the first quarter of 2025. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time.

"Shore Bancshares delivered another strong quarter to begin 2026, with higher net income, expanding net interest margin and continued growth in book value per share," stated James ("Jimmy") M. Burke, President and Chief Executive Officer of Shore Bancshares. "Lower funding costs, accelerated loan repricing and disciplined balance sheet management drove record net interest income and record profitability during the quarter. We also continued to make progress improving our core operating performance while maintaining prudent expense control.

<sup>(1)</sup> See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

"Although nonperforming and classified assets increased during the quarter, overall asset quality remains sound and is supported by strong collateral values, conservative underwriting and solid reserve levels. We remain focused on managing risk, strengthening operating leverage and building long-term value for our shareholders as we move through 2026."

**Balance Sheet Review**

Total assets were $6.21 billion at March 31, 2026, a decrease of $52.8 million, or 0.8%, when compared to $6.26 billion at December 31, 2025. The decrease was primarily due to a decrease in our loan portfolio of $52.3 million and a decrease in cash and cash equivalents of $14.7 million, which were partially offset by an increase in our investment securities portfolio of $22.5 million. The decrease in cash and cash equivalents was primarily driven by seasonal run-off of the municipal deposits. Total assets increased $29.5 million, or 0.5%, from $6.18 billion when compared to March 31, 2025.

Non-owner occupied commercial real estate ("CRE") loans were $2.14 billion and $2.15 billion, and as a percentage of the Bank's Tier 1 Capital + ACL were 333% and 343% at March 31, 2026 and December 31, 2025, respectively.

CRE loans (excluding land and construction) were $2.60 billion at March 31, 2026 compared to $2.64 billion at December 31, 2025. The office CRE loan portfolio, which includes owner occupied and non-owner occupied CRE loans, was $480.9 million, or 9.9% of total loans at March 31, 2026. The following table provides the stratification of the classes of CRE loans (excluding land and construction) at March 31, 2026.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Owner Occupied** | **Owner Occupied** | **Owner Occupied** | **Non-Owner Occupied** | **Non-Owner Occupied** | **Non-Owner Occupied** |
|<br> *($ in thousands)* | **Average LTV**<sup>(1)</sup> | **Average Loan Size** | **Loan Balance**<sup>(2)</sup> | **Average LTV**<sup>(1)</sup> | **Average Loan Size** | **Loan Balance**<sup>(2)</sup> |
| Office, medical | 45.25% | $597 | $28074 | 47.74% | $1746 | $85570 |
| Office, govt. or govt. contractor | 49.80 | 875 | 6999 | 53.80 | 3057 | 62308 |
| Office, other | 46.58 | 467 | 84074 | 48.66 | 1328 | 213825 |
| &nbsp;&nbsp;Office, total | 46.43 | 507 | 119147 | 48.91 | 1574 | 361703 |
| Retail | 49.55 | 610 | 65223 | 48.07 | 2554 | 482785 |
| Multifamily (5+ units) |  |  |  | 54.46 | 2353 | 261226 |
| Hotel/motel |  |  |  | 44.46 | 4056 | 190614 |
| Industrial/warehouse | 45.74 | 654 | 92883 | 46.49 | 1412 | 184927 |
| Commercial-improved | 41.57 | 1182 | 217492 | 50.02 | 1291 | 160134 |
| Marine/boat slips | 32.52 | 804 | 17696 | 36.45 | 1472 | 7359 |
| Restaurant | 47.86 | 976 | 54657 | 48.40 | 1008 | 41310 |
| Church | 33.03 | 861 | 56797 | 13.18 | 2354 | 2354 |
| Land/lot loans | 44.54 | 551 | 1103 |  |  |  |
| Other | 40.21 | 1440 | 119558 | 32.94 | 543 | 162847 |
| Total CRE loans, gross | 43.14 | 830 | $744556 | 44.39 | 1584 | $1855259 |

---

(1)Loan-to-value ("LTV") is determined based on latest available appraisal against current bank owned principal. Loans without an updated appraisal utilized the original transaction value.

(2)Loan balance includes deferred fees and costs.

The office CRE loan portfolio included loans to medical tenants of $113.6 million, or 23.6% of the total office CRE loan portfolio, at March 31, 2026. The office CRE loan portfolio also included loans to government or government contractor tenants of $69.3 million, or 14.4% of the total office CRE loan portfolio for the same period. At March 31, 2026, the average loan debt service coverage ratio on the office CRE loan portfolio was 1.7x and the average LTV was 47.66%.

The 467 loans in the office CRE portfolio at March 31, 2026 had an average loan size of $1.0 million and a median loan size of $378 thousand. LTV estimates for the office CRE portfolio at March 31, 2026 are summarized below and LTV collateral values are based on the most recent appraisal, which may vary from the appraised value at loan origination.

------

---

| | | | |
|:---|:---|:---|:---|
| **LTV Range** *($ in thousands)* | **Loan Count** | **Loan Balance** | **% of Office CRE** |
| Less than or equal to 50% | 234 | $167305 | 34.8% |
| Greater than 50% and less than or equal to 60% | 75 | 122649 | 25.5 |
| Greater than 60% and less than or equal to 70% | 92 | 142127 | 29.6 |
| Greater than 70% and less than or equal to 80% | 52 | 37694 | 7.8 |
| Greater than 80% | 14 | 11075 | 2.3 |
| Total | 467 | $480850 | 100.0% |

---

There were 17 office CRE loans with balances greater than $5.0 million, totaling $164.8 million at March 31, 2026 and totaling $166.1 million at December 31, 2025. The decrease in this portfolio segment was the result of normal amortization. 81.1% of the office CRE loan balance was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.5% was secured by properties with five stories or less. $28.7 million of these loan balances were classified as special mention or substandard at March 31, 2026. There were no charge-offs within the office CRE portfolio during the three months ended March 31, 2026.

Nonperforming assets were $68.4 million and $43.2 million, or 1.10% and 0.69% of total assets, as of March 31, 2026 and December 31, 2025, respectively. Nonperforming assets primarily consist of two large relationships with an aggregate loan balance of $45.6 million. These nonperforming loans primarily consists of multifamily and office commercial real estate based in North Carolina and Virginia. As of March 31, 2026, these loans are well-secured by collateral and required minimal individual reserves. When comparing March 31, 2026 to March 31, 2025, nonperforming assets increased $49.5 million, primarily due to an increase in nonaccrual loans of $49.6 million and an increase in repossessed marine and auto loans of $806 thousand, partially offset by a decrease in loans 90 days past due and accruing of $894 thousand. Substandard loans, which include nonaccrual loans and accruing loans 90 days or more past due were $82.3 million at March 31, 2026 compared to $57.4 million at December 31, 2025 and $19.4 million at March 31, 2025.

Special mention loans increased to $97.8 million at March 31, 2026 compared to $73.4 million at December 31, 2025 and $33.5 million at March 31, 2025. As of March 31, 2026, there were six special mention loans with individual balances greater than $5.0 million, totaling $79.1 million. These loans consist primarily of multifamily commercial real estate and other commercial real estate exposures that are well-collateralized, and the Company continues to closely monitor their cash flows. Management does not currently expect material losses on these credits and is actively engaged in credit oversight and timely execution of workout strategies.

Total deposits decreased $72.2 million from December 31, 2025 to $5.46 billion at March 31, 2026 and increased $1.3 million when compared to March 31, 2025. The year-to-date decrease in total deposits was primarily due to a decrease in interest-bearing deposits of $39.7 million, a decrease in noninterest-bearing deposits of $20.5 million and a decrease in money market and savings accounts of $19.3 million. These decreases were partially offset by an increase in time deposits of $7.3 million. Core deposits, which exclude municipal deposits, increased by $25.3 million, or 0.6%, during the same period.

Total funding, which includes customer deposits, Federal Home Loan Bank ("FHLB") advances and brokered deposits, was $5.46 billion at March 31, 2026, compared to $5.53 billion at December 31, 2025. The Company had no FHLB advances at March 31, 2026 and December 31, 2025. Brokered deposits were $11.0 million and $10.9 million at March 31, 2026 and December 31, 2025, respectively. Total reciprocal deposits were $1.42 billion and $1.52 billion at March 31, 2026 and December 31, 2025, respectively.

Uninsured deposits were $933.0 million, or 17.1% of total deposits, at March 31, 2026. Uninsured deposits, excluding deposits secured with pledged collateral, were $786.0 million, or 14.4% of total deposits, at March 31, 2026. At March 31, 2026, the available liquidity was $1.82 billion, including $340.8 million in cash and cash equivalents, $328.0 million in unpledged securities, $777.6 million in secured borrowing capacity at the FHLB and $376.3 million in unsecured lines of credit with other correspondent banks.

Total stockholders' equity increased $12.8 million, or 2.2%, when compared to December 31, 2025, primarily due to current year earnings, partially offset by cash dividends paid and an increase in accumulated other comprehensive losses. As of March 31, 2026 and 2025, the ratio of total equity to total assets was 9.71% and 8.94%, respectively. As of March 31, 2026, the ratio of total tangible equity to total tangible assets<sup>(1)</sup> was 8.37%, compared to 8.06% and 7.46% as of December 31, 2025 and March 31, 2025, respectively. The Company's Tier 1 and Total Risk-Based Capital Ratios at March 31, 2026 were 11.60% and 14.08%, respectively.

<sup>(1)</sup> See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Review of Quarterly Financial Results** 

Net interest income was $52.6 million for the first quarter of 2026, compared to $50.2 million for the fourth quarter of 2025 and $45.9 million for the first quarter of 2025. The increase in net interest income when compared to the fourth quarter of 2025 was primarily due to a decrease in interest expense on deposits of $3.0 million, a decrease in interest expense on long-term borrowings of $608 thousand and a decrease of $246 thousand in interest expense on short-term borrowings. The decrease in interest expense on long-term borrowings is due to a new debt issuance of $60 million during the fourth quarter 2025, which replaced $45 million of subordinated debt that was redeemed at the end of the fourth quarter 2025. These favorable changes were partially offset by a decrease in interest income on loans of $1.3 million and a decrease in interest income on deposits at other banks of $352 thousand. The increase in net interest income was $6.7 million when compared to the first quarter of 2025, and was primarily due to a decrease in interest expense on deposits of $3.8 million, an increase in interest and fees on loans of $3.3 million and a decrease in interest expense on short-term borrowings of $598 thousand. These favorable changes were partially offset by a decrease in interest on deposits with other banks of $951 thousand and an increase in interest expense on long-term borrowings of $207 thousand. The decrease in interest expense on deposits is reflective of the rate reductions during 2025.

The Company's NIM increased to 3.64% for the first quarter of 2026 from 3.43% for the fourth quarter of 2025, primarily due to lower interest expense on deposits. NIM excluding accretion increased for the comparable periods from 3.24% to 3.35%. Excluding accretion interest income, loan yields decreased 1 bp and funding costs decreased 13 bps for the comparable periods. Interest expense for the first quarter of 2026 decreased $3.9 million compared to the fourth quarter of 2025, primarily due to lower rates during the quarter and the absence of the write-offs of merger-related interest rate marks on certain deposit products in the fourth quarter of 2025. The Company's NIM increased to 3.64% for the first quarter of 2026 from 3.21% for the first quarter of 2025. The Company's average interest-earning asset yield increased to 5.44% for the first quarter of 2026 from 5.32% for the first quarter of 2025, while the average cost of funds decreased 30 bps to 1.90% from 2.20% for the same periods.

The provision for credit losses was $85 thousand for the three months ended March 31, 2026. The comparable amounts were $2.8 million for the three months ended December 31, 2025 and $1.0 million for the three months ended March 31, 2025. The decrease in the provision for credit losses for the first quarter of 2026 compared to the fourth quarter of 2025 was due to lower reserves resulting from lower loan balances and recoveries of certain charged-off loans, partially offset by the absence by the large charge-off driven by a commercial real estate loan in the fourth quarter of 2025. Coverage ratios increased to 1.21% at March 31, 2026 from 1.20% at December 31, 2025, and remained flat compared to March 31, 2025. Net charge-offs decreased to $847 thousand for the first quarter of 2026 compared to $3.6 million for the fourth quarter of 2025 and $554 thousand for the first quarter of 2025. The decrease was driven by the absence of the large commercial real estate write-down in the fourth quarter of 2025 and recoveries of previous write-downs of $409 thousand during the quarter.

Total noninterest income for the first quarter of 2026 was $7.2 million, a decrease of $1.7 million from $8.9 million for the fourth quarter of 2025, and an increase of $110 thousand from $7.1 million for the first quarter of 2025. When comparing the first quarter of 2026 to the fourth quarter of 2025, the decrease in noninterest income was primarily due to the absence of a one-time receipt of insurance proceeds in the fourth quarter of 2025.

Total noninterest expense of $37.1 million for the first quarter of 2026 increased $1.6 million compared to $35.5 million for the fourth quarter of 2025, and increased $3.3 million compared to $33.7 million for the first quarter of 2025. The increase from the fourth quarter of 2025 was primarily due to salaries and employee benefit expenses increasing $1.1 million and professional service fees increasing $368 thousand. The increase in salaries and employee benefits are primarily related to higher health care costs and one-time employee incentive related expense. The increase from the first quarter of 2025 was primarily due to an increase in salaries and employee benefits expense of $3.2 million and an increase in software and data processing costs of $449 thousand, partially offset by a decrease in amortization of other intangible assets of $298 thousand.

The efficiency ratio for the first quarter of 2026 when compared to the fourth quarter of 2025 and the first quarter of 2025 was 61.97%, 60.06% and 63.64%, respectively. Adjusted efficiency ratios – non-GAAP<sup>(1)</sup> for the same periods were 58.57%, 56.59% and 59.25%, respectively.

<sup>(1)</sup> See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Shore Bancshares Information**

Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the parent company of Shore United Bank, N.A. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank, N.A. Additional information is available at www.shorebancshares.com.

**Forward-Looking Statements**

This news release contains statements relating to future events or our future results that are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We also may make forward-looking statements in other documents filed with or furnished to the Securities and Exchange Commission, and our senior management may make forward-looking statements orally to investors, analysts, representatives of the media, and others. Forward-looking statements may be identified by the use of words such as "believe," "expect," "anticipate," "plan," "estimate," "intend," "potential," "target," "plan," "goal," or words of similar meaning, or future or conditional verbs such as "could," "would," or "may." Forward-looking statements include statements of our goals, intentions, or expectations; statements regarding our business plans, prospects, growth, or operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. We caution that the forward-looking statements are based largely on our expectations and information available at the time the statements are made and are subject to known and unknown risks and uncertainties that are subject to change based on factors, which in many instances are beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. You should bear this in mind when reading this news release and not place undue reliance on these forward-looking statements.

The factors that could cause actual results to differ materially from those expressed in such forward-looking statements include, but are not limited to, the risks identified in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission and the following: local, regional and global business, economic and political conditions and geopolitical events; changes in laws, rules and regulatory requirements, including capital and liquidity requirements; changes in consumer and business confidence, investor sentiment, and consumer spending and savings behavior; changes in the level of inflation; changes in monetary and fiscal policies; changes in trade policies, including the imposition of tariffs and retaliatory responses; changes in the demand for loans, deposits, and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; changes in FDIC assessments; changes in the interest rate environment; changes in income tax laws and regulations; our ability to manage effectively our capital and liquidity; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; changes in credit ratings assigned to us; competitive pressures among financial services companies; technology changes instituted by us, our counterparties, or competitors; the ability to attract, develop, and retain qualified employees; change in federal government enforcement of federal laws affecting the cannabis industry; our ability to maintain the security of our financial, accounting, technology, data processing and other operational systems and facilities; our ability to effectively defend ourselves against cyber-attacks and other attempts by unauthorized parties to access our information or information of our customers or to disrupt our systems; our ability to withstand disruptions that may be caused by any failure of our operational systems or those of third parties; our ability to control expenses; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; and the impact of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond our control.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

**For further information contact: Charles S. Cullum, Executive Vice President, and Chief Financial Officer, (410) 260-2042** 

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**Shore Bancshares, Inc.**

Financial Highlights By Quarter (Unaudited)

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q1 2026 vs. | Q1 2026 vs. | Q1 2026 vs. | Q1 2026 vs. |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q4 2025 | Q1 2025 | Q1 2025 |
| PROFITABILITY FOR THE PERIOD |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable-equivalent net interest income | $**52644** | $50294 | $48501 | $47244 | $45979 | 4.7 | % | 14.5 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Taxable-equivalent adjustment | **89** | 92 | 83 | 81 | 81 | (3.3) |  | 9.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | **52555** | 50202 | 48418 | 47163 | 45898 | 4.7 |  | 14.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | **85** | 2827 | 2992 | 1528 | 1028 | (97.0) |  | (91.7) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest income | **7244** | 8906 | 7938 | 9406 | 7134 | (18.7) |  | 1.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest expense | **37056** | 35499 | 34379 | 34410 | 33747 | 4.4 |  | 9.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | **22658** | 20782 | 18985 | 20631 | 18257 | 9.0 |  | 24.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | **5570** | 4895 | 4637 | 5124 | 4493 | 13.8 |  | 24.0 |  |
| NET INCOME | $**17088** | $15887 | $14348 | $15507 | $13764 | 7.6 |  | 24.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income – non-GAAP<sup>(1)</sup> | $18581 | $17416 | $15889 | $17215 | $15481 | 6.7 | % | 20.0 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-tax pre-provision net income – non-GAAP<sup>(1)</sup> | 22743 | 23609 | 21977 | 22159 | 19285 | (3.7) |  | 17.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average assets – GAAP | **1.12%** | 1.02% | 0.95% | 1.03% | 0.91% | 10 | bp | 21 | bp |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted return on average assets – non-GAAP | **1.22** | 1.11 | 1.05 | 1.15 | 1.02 | 11 |  | 20 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average common equity – GAAP | **11.55** | 10.79 | 9.96 | 11.13 | 10.20 | 76 |  | 135 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average tangible common equity – non-GAAP<sup>(1)</sup> | **14.83** | 14.10 | 13.27 | 14.99 | 14.05 | 73 |  | 78 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest spread | **2.80** | 2.48 | 2.45 | 2.37 | 2.27 | 32 |  | 53 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest margin | **3.64** | 3.43 | 3.41 | 3.34 | 3.21 | 21 |  | 43 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Efficiency ratio – GAAP | **61.97** | 60.06 | 61.00 | 60.83 | 63.64 | 191 |  | (167) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted efficiency ratio – non-GAAP<sup>(1)</sup> | **58.57** | 56.59 | 57.30 | 56.73 | 59.25 | 198 |  | (68) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest income to average assets | **0.48** | 0.57 | 0.52 | 0.63 | 0.47 | (9) |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest expense to average assets | **2.43** | 2.27 | 2.27 | 2.29 | 2.23 | 16 |  | 20 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating expense to average assets – GAAP | **1.96** | 1.70 | 1.74 | 1.67 | 1.76 | 26 |  | 20 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating expense to average assets – non-GAAP<sup>(1)</sup> | **1.83** | 1.57 | 1.61 | 1.51 | 1.61 | 26 |  | 22 |  |
| PER SHARE DATA |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic net income per common share | $**0.51** | $0.48 | $0.43 | $0.46 | $0.41 | 6.3 | % | 24.4 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted net income per common share | **0.51** | 0.48 | 0.43 | 0.46 | 0.41 | 6.3 |  | 24.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid per common share | **0.12** | 0.12 | 0.12 | 0.12 | 0.12 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Book value per common share at period end | **18.02** | 17.65 | 17.27 | 16.94 | 16.55 | 2.1 |  | 8.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible book value per common share at period end – non-GAAP<sup>(1)</sup> | **15.30** | 14.87 | 14.43 | 14.03 | 13.58 | 2.9 |  | 12.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common share market value at period end | **18.68** | 17.68 | 16.41 | 15.72 | 13.54 | 5.7 |  | 38.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common share intraday price: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High | $**20.68** | $19.22 | $17.67 | $15.88 | $17.24 | 7.6 | % | 20.0 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Low | **17.98** | 14.93 | 14.96 | 11.47 | 13.15 | 20.4 |  | 36.7 |  |

---

____________________________________

(1)See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter (Unaudited) – Continued

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q1 2026 vs. | Q1 2026 vs. |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q1 2025 |
| AVERAGE BALANCE SHEET DATA |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | $**4887488** | $4909619 | $4884003 | $4833558 | $4784991 | (0.5)% | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | **666376** | 653639 | 664535 | 683680 | 664655 | 1.9 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earning assets | **5823244** | 5843816 | 5658981 | 5660409 | 5768080 | (0.4) | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets | **6174655** | 6206753 | 6020574 | 6021385 | 6129241 | (0.5) | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | **5438914** | 5452082 | 5280252 | 5297567 | 5417514 | (0.2) | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB advances | **—** | 20108 | 52391 | 50000 | 50000 | (100.0) | (100.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt & TRUPS | **89024** | 104752 | 74363 | 74102 | 73840 | (15.0) | 20.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholders' equity | **600212** | 584209 | 571247 | 558952 | 547443 | 2.7 | 9.6 |
| CREDIT QUALITY DATA |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | $**847** | $3619 | $1825 | $649 | $554 | (76.6)% | 52.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | $**64958** | $39960 | $24378 | $16782 | $15402 | 62.6% | 321.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans 90 days past due and still accruing | **—** | 255 | 153 | 215 | 894 | (100.0) | (100.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other real estate owned and repossessed property | **3414** | 2992 | 3552 | 2636 | 2608 | 14.1 | 30.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $**68372** | $43207 | $28083 | $19633 | $18904 | 58.2 | 261.7 |

---

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter (Unaudited) – Continued

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q1 2026 vs. | Q1 2026 vs. | Q1 2026 vs. | Q1 2026 vs. |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q4 2025 | Q1 2025 | Q1 2025 |
| CAPITAL AND CREDIT QUALITY RATIOS |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end equity to assets – GAAP | **9.71%** | 9.42% | 9.19% | 9.36% | 8.94% | 29 | bp | 77 | bp |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end tangible equity to tangible assets – non-GAAP<sup>(1)</sup> | **8.37** | 8.06 | 7.80 | 7.88 | 7.46 | 31 |  | 91 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Annualized net charge-offs to average loans | **0.07%** | 0.29% | 0.15% | 0.05% | 0.05% | (22) | bp | 2 | bp |
| Allowance for credit losses as a percent of: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end loans | **1.21%** | 1.20% | 1.22% | 1.21% | 1.21% | 1 | bp |  | bp |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end nonaccrual loans | **90.03** | 147.24 | 244.29 | 348.49 | 376.85 | (5721) |  | (28682) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Period-end nonperforming assets | **85.53** | 136.17 | 212.06 | 297.88 | 307.04 | (5064) |  | (22151) |  |
| As a percent of total loans at period-end: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | **1.34%** | 0.82% | 0.50% | 0.35% | 0.32% | 52 | bp | 102 | bp |
| As a percent of total loans, other real estate owned and repossessed property at period-end: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets | **1.41%** | 0.88% | 0.57% | 0.41% | 0.40% | 53 | bp | 101 | bp |
| As a percent of total assets at period-end: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans | **1.05%** | 0.64% | 0.39% | 0.28% | 0.25% | 41 | bp | 80 | bp |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets | **1.10** | 0.69 | 0.45 | 0.33 | 0.31 | 41 |  | 79 |  |

---

____________________________________

(1)See the Reconciliation of GAAP and Non-GAAP Measures tables.

------

**Shore Bancshares, Inc.**

Financial Highlights By Quarter (Unaudited) – Continued

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q1 2026 vs. | Q1 2026 vs. | Q1 2026 vs. | Q1 2026 vs. |
| *($ in thousands)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q4 2025 | Q1 2025 | Q1 2025 |
| **Company Amounts** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital | $**525849** | $510729 | $496709 | $483947 | $470223 | 2.96 | % | 11.83 | % |
| Tier 1 Capital | **556096** | 540897 | 526794 | 513952 | 500149 | 2.81 |  | 11.19 |  |
| Total Capital | **674811** | 660451 | 627055 | 618793 | 603928 | 2.17 |  | 11.74 |  |
| Risk-Weighted Assets | **4794374** | 4852573 | 4867237 | 4890679 | 4823833 | (1.20) |  | (0.61) |  |
| **Company Ratios** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital to Risk-Weighted Assets ("RWA") | **10.97%** | 10.52% | 10.21% | 9.90% | 9.75% | 45 | bp | 122 | bp |
| Tier 1 Capital to RWA | **11.60** | 11.15 | 10.82 | 10.51 | 10.37 | 45 |  | 123 |  |
| Total Capital to RWA | **14.08** | 13.61 | 12.88 | 12.65 | 12.52 | 47 |  | 156 |  |
| Tier 1 Capital to AA (Leverage)(2) | **9.12** | 8.82 | 8.86 | 8.65 | 8.27 | 30 |  | 85 |  |
| **Bank Amounts** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital | $**583733** | $569183 | $559212 | $546630 | $534824 | 2.56 | % | 9.14 | % |
| Tier 1 Capital | **583733** | 569183 | 559212 | 546630 | 534824 | 2.56 |  | 9.14 |  |
| Total Capital | **643627** | 629746 | 620034 | 607235 | 594550 | 2.20 |  | 8.25 |  |
| Risk-Weighted Assets | **4791223** | 4844639 | 4864871 | 4888558 | 4821975 | (1.10) |  | (0.64) |  |
| **Bank Ratios** |  |  |  |  |  |  |  |  |  |
| Common Equity Tier 1 Capital to RWA | **12.18%** | 11.75% | 11.49% | 11.18% | 11.09% | 43 | bp | 109 | bp |
| Tier 1 Capital to RWA | **12.18** | 11.75 | 11.49 | 11.18 | 11.09 | 43 |  | 109 |  |
| Total Capital to RWA | **13.43** | 13.00 | 12.75 | 12.42 | 12.33 | 43 |  | 110 |  |
| Tier 1 Capital to AA (Leverage)(2) | **9.58** | 9.30 | 9.41 | 9.20 | 8.84 | 28 |  | 74 |  |

---

------

**Shore Bancshares, Inc.**

Consolidated Balance Sheets

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | March 31, 2026 | March 31, 2026 |
| | | | | | | compared to | compared to |
| *($ in thousands, except per share data)* | **March 31, 2026** | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | March 31, 2025 |
|  | (unaudited) |  | (unaudited) | (unaudited) | (unaudited) |  |  |
| ASSETS |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $**44054** | $50164 | $62289 | $54512 | $46886 | (12.2)% | (6.0)% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with other banks | **296768** | 305402 | 354224 | 130472 | 342120 | (2.8) | (13.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | **340822** | 355566 | 416513 | 184984 | 389006 | (4.1) | (12.4) |
| &nbsp;&nbsp;&nbsp;Investment securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available for sale, at fair value | **264026** | 220358 | 181720 | 187679 | 179148 | 19.8 | 47.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held to maturity, net of allowance for credit losses | **393615** | 414827 | 433440 | 459246 | 469572 | (5.1) | (16.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities, at fair value | **6195** | 6186 | 6113 | 6010 | 5945 | 0.1 | 4.2 |
| &nbsp;&nbsp;&nbsp;Restricted securities, at cost | **18003** | 17989 | 20364 | 20412 | 20411 | 0.1 | (11.8) |
| &nbsp;&nbsp;&nbsp;Loans held for sale, at fair value | **24034** | 32540 | 21500 | 34319 | 15717 | (26.1) | 52.9 |
| &nbsp;&nbsp;&nbsp;Loans held for investment | **4848030** | 4900302 | 4882969 | 4827628 | 4777489 | (1.1) | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: allowance for credit losses | **(58481)** | (58836) | (59554) | (58483) | (58042) | (0.6) | 0.8 |
| &nbsp;&nbsp;&nbsp;Loans, net | **4789549** | 4841466 | 4823415 | 4769145 | 4719447 | (1.1) | 1.5 |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | **80137** | 80168 | 80812 | 81426 | 81692 |  | (1.9) |
| &nbsp;&nbsp;&nbsp;Goodwill | **63266** | 63266 | 63266 | 63266 | 63266 |  |  |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | **27742** | 29722 | 31722 | 33761 | 36033 | (6.7) | (23.0) |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | **10102** | 10523 | 10896 | 11052 | 11709 | (4.0) | (13.7) |
| &nbsp;&nbsp;&nbsp;Cash surrender value on life insurance | **106684** | 105839 | 105055 | 105860 | 105040 | 0.8 | 1.6 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | **20676** | 18551 | 20408 | 19821 | 20555 | 11.5 | 0.6 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | **29752** | 29825 | 30328 | 30972 | 31428 | (0.2) | (5.3) |
| &nbsp;&nbsp;&nbsp;Other assets | **31460** | 31992 | 32927 | 29921 | 27594 | (1.7) | 14.0 |
| TOTAL ASSETS | $**6206063** | $6258818 | $6278479 | $6037874 | $6176563 | (0.8) | 0.5 |

---

------

**Shore Bancshares, Inc.**

Consolidated Balance Sheets – Continued

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | March 31, 2026 | March 31, 2026 |
| | | | | | | compared to | compared to |
| *($ in thousands, except per share data)* | **March 31, 2026** | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2025 | March 31, 2025 |
|  | (unaudited) |  | (unaudited) | (unaudited) | (unaudited) |  |  |
| LIABILITIES |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | $**1567425** | $1587953 | $1594212 | $1575120 | $1565017 | (1.3)% | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing checking | **812847** | 852585 | 851963 | 763309 | 852480 | (4.7) | (4.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market and savings | **1795619** | 1814928 | 1790001 | 1691438 | 1800529 | (1.1) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | **1274766** | 1267487 | 1281132 | 1273285 | 1242319 | 0.6 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposits | **10963** | 10911 | 10857 | 10806 |  | 0.5 |  |
| &nbsp;&nbsp;&nbsp;Total deposits | **5461620** | 5533864 | 5528165 | 5313958 | 5460345 | (1.3) |  |
| &nbsp;&nbsp;&nbsp;FHLB advances | **—** |  | 50000 | 50000 | 50000 |  | (100.0) |
| &nbsp;&nbsp;&nbsp;Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS"), net | **30247** | 30168 | 30085 | 30005 | 29926 | 0.3 | 1.1 |
| &nbsp;&nbsp;&nbsp;Subordinated debt, net | **58782** | 58893 | 44409 | 44236 | 44053 | (0.2) | 33.4 |
| &nbsp;&nbsp;&nbsp;Total borrowings | **89029** | 89061 | 124494 | 124241 | 123979 |  | (28.2) |
| &nbsp;&nbsp;&nbsp;Lease liabilities | **10608** | 11027 | 11395 | 11541 | 12183 | (3.8) | (12.9) |
| &nbsp;&nbsp;&nbsp;Other liabilities | **42092** | 34993 | 37218 | 22940 | 27586 | 20.3 | 52.6 |
| TOTAL LIABILITIES | **5603349** | 5668945 | 5701272 | 5472680 | 5624093 | (1.2) | (0.4) |
| STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value per share | **335** | 334 | 334 | 334 | 333 | 0.3 | 0.6 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | **361013** | 360554 | 359939 | 359063 | 358572 | 0.1 | 0.7 |
| &nbsp;&nbsp;&nbsp;Retained earnings | **246636** | 233578 | 221693 | 211400 | 199898 | 5.6 | 23.4 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | **(5270)** | (4593) | (4759) | (5603) | (6333) | 14.7 | (16.8) |
| TOTAL STOCKHOLDERS' EQUITY | **602714** | 589873 | 577207 | 565194 | 552470 | 2.2 | 9.1 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $**6206063** | $6258818 | $6278479 | $6037874 | $6176563 | (0.8) | 0.5 |
| Shares of common stock issued and outstanding | **33451063** | 33413503 | 33421672 | 33374265 | 33374265 | 0.1 | 0.2 |
| Book value per common share at period end | $**18.02** | $17.65 | $17.27 | $16.94 | $16.55 | 2.1 | 8.9 |

---

------

**Shore Bancshares, Inc.**

Consolidated Statements of Income By Quarter (Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q1 2026 vs. | Q1 2026 vs. |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q1 2025 |
| INTEREST INCOME |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest on loans | $**70814** | $72092 | $70693 | $69607 | $67516 | (1.8)% | 4.9% |
| &nbsp;&nbsp;&nbsp;Interest and dividends on taxable investment securities | **5114** | 5010 | 5036 | 5331 | 5001 | 2.1 | 2.3 |
| &nbsp;&nbsp;&nbsp;Interest and dividends on tax-exempt investment securities | **6** | 6 | 6 | 6 | 6 |  |  |
| &nbsp;&nbsp;&nbsp;Interest on deposits with other banks | **2458** | 2810 | 1215 | 1588 | 3409 | (12.5) | (27.9) |
| Total interest income | **78392** | 79918 | 76950 | 76532 | 75932 | (1.9) | 3.2 |
| INTEREST EXPENSE |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits | **24264** | 27289 | 26474 | 27370 | 28070 | (11.1) | (13.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on short-term borrowings | **—** | 246 | 640 | 605 | 598 | (100.0) | (100.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on long-term borrowings | **1573** | 2181 | 1418 | 1394 | 1366 | (27.9) | 15.2 |
| Total interest expense | **25837** | 29716 | 28532 | 29369 | 30034 | (13.1) | (14.0) |
| NET INTEREST INCOME | **52555** | 50202 | 48418 | 47163 | 45898 | 4.7 | 14.5 |
| Provision for credit losses | **85** | 2827 | 2992 | 1528 | 1028 | (97.0) | (91.7) |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | **52470** | 47375 | 45426 | 45635 | 44870 | 10.8 | 16.9 |
| NONINTEREST INCOME |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | **1596** | 1663 | 1599 | 1519 | 1514 | (4.0) | 5.4 |
| &nbsp;&nbsp;&nbsp;Trust and investment fee income | **1137** | 1042 | 898 | 942 | 823 | 9.1 | 38.2 |
| &nbsp;&nbsp;&nbsp;Mortgage banking revenue | **1450** | 1181 | 1278 | 2379 | 1240 | 22.8 | 16.9 |
| &nbsp;&nbsp;&nbsp;Interchange credits | **1698** | 1862 | 1858 | 1788 | 1577 | (8.8) | 7.7 |
| &nbsp;&nbsp;&nbsp;Other noninterest income | **1363** | 3158 | 2305 | 2778 | 1980 | (56.8) | (31.2) |
| Total noninterest income | $**7244** | $8906 | $7938 | $9406 | $7134 | (18.7) | 1.5 |

---

------

**Shore Bancshares, Inc.**

Consolidated Statements of Income By Quarter and Year (Unaudited) – Continued

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | Q1 2026 vs. | Q1 2026 vs. |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q1 2025 |
| NONINTEREST EXPENSE |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | $**19639** | $18582 | $18642 | $17742 | $16440 | 5.7% | 19.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy expense | **2567** | 2461 | 2406 | 2472 | 2538 | 4.3 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture and equipment expense | **855** | 792 | 892 | 797 | 853 | 8.0 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Software and data processing | **5140** | 5197 | 5155 | 4819 | 4691 | (1.1) | 9.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of other intangible assets | **1980** | 2000 | 2039 | 2272 | 2278 | (1.0) | (13.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal and professional fees | **1605** | 1237 | 989 | 1225 | 1613 | 29.7 | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;FDIC insurance premium expense | **995** | 845 | 794 | 1023 | 1091 | 17.8 | (8.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing and advertising | **311** | 367 | 315 | 384 | 254 | (15.3) | 22.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fraud losses | **111** | 227 | 45 | 83 | 105 | (51.1) | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noninterest expense | **3853** | 3791 | 3102 | 3593 | 3884 | 1.6 | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | **37056** | 35499 | 34379 | 34410 | 33747 | 4.4 | 9.8 |
| Income before income taxes | **22658** | 20782 | 18985 | 20631 | 18257 | 9.0 | 24.1 |
| Income tax expense | **5570** | 4895 | 4637 | 5124 | 4493 | 13.8 | 24.0 |
| NET INCOME | $**17088** | $15887 | $14348 | $15507 | $13764 | 7.6 | 24.1 |
| Weighted average shares outstanding – basic | **33428444** | 33426198 | 33419291 | 33374265 | 33350869 | 0.0% | 0.2% |
| Weighted average shares outstanding – diluted | **33447767** | 33446103 | 33435862 | 33388013 | 33375318 | 0.0% | 0.2% |
| Basic net income per common share | $**0.51** | $0.48 | $0.43 | $0.46 | $0.41 | 6.3% | 24.4% |
| Diluted net income per common share | $**0.51** | $0.48 | $0.43 | $0.46 | $0.41 | 6.3% | 24.4% |
| Dividends paid per common share | $**0.12** | $0.12 | $0.12 | $0.12 | $0.12 | —% | —% |

---

------

**Shore Bancshares, Inc.**

Consolidated Average Balance Sheets (Unaudited)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| *($ in thousands)* | **Average Balance** | **Interest** | **Yield/Rate** | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate |
| **Earning assets** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loans<sup>(1), (2), (3)</sup> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $**2601316** | $**39029** | **6.08%** | $2624581 | $38796 | 5.86% | $2541527 | $35822 | 5.72% |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | **1450114** | **19311** | **5.33** | 1442055 | 19477 | 5.40 | 1347035 | 18433 | 5.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction | **347973** | **5631** | **6.56** | 343796 | 5740 | 6.62 | 352323 | 5526 | 6.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | **221542** | **3296** | **6.03** | 219874 | 4326 | 7.81 | 232900 | 3695 | 6.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | **262174** | **3534** | **5.47** | 274715 | 3711 | 5.36 | 304520 | 4042 | 5.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit cards | **4369** | **100** | **9.29** | 4598 | 132 | 11.40 | 6686 | 77 | 4.67 |
| Total loans | **4887488** | **70901** | **5.86** | 4909619 | 72182 | 5.85 | 4784991 | 67595 | 5.71 |
| Investment securities |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxable | **665729** | **5114** | **3.07** | 652990 | 5010 | 3.07 | 664002 | 5001 | 3.01 |
| &nbsp;&nbsp;Tax-exempt<sup>(1)</sup> | **647** | **8** | **4.95** | 649 | 8 | 4.93 | 653 | 8 | 4.90 |
| Interest-bearing deposits | **269380** | **2458** | **3.70** | 280558 | 2810 | 3.97 | 318434 | 3409 | 4.34 |
| **Total earning assets** | **5823244** | **78481** | **5.44** | 5843816 | 80010 | 5.45 | 5768080 | 76013 | 5.32 |
| Cash and due from banks | **44182** |  |  | 51611 |  |  | 43526 |  |  |
| Other assets | **365971** |  |  | 371205 |  |  | 375929 |  |  |
| Allowance for credit losses | **(58742)** |  |  | (59879) |  |  | (58294) |  |  |
| **Total assets** | $**6174655** |  |  | $6206753 |  |  | $6129241 |  |  |

---

------

**Shore Bancshares, Inc.**

Consolidated Average Balance Sheets (Unaudited) – Continued

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| *($ in thousands)* | **Average Balance** | **Interest** | **Yield/Rate** | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| Interest-bearing checking | $**780713** | $**4840** | **2.51%** | $768769 | $5386 | 2.78% | $859698 | $7025 | 3.31% |
| Money market and savings deposits | **1812071** | **8696** | **1.95** | 1784972 | 9373 | 2.08 | 1799707 | 10015 | 2.26 |
| Time deposits | **1270156** | **10624** | **3.39** | 1277732 | 12425 | 3.86 | 1208250 | 11030 | 3.70 |
| Brokered deposits | **11107** | **104** | **3.80** | 10942 | 105 | 3.81 |  |  |  |
| Interest-bearing deposits<sup>(4)</sup> | **3874047** | **24264** | **2.54** | 3842415 | 27289 | 2.82 | 3867655 | 28070 | 2.94 |
| FHLB advances | **—** | **—** | **—** | 20108 | 246 | 4.85 | 50000 | 598 | 4.85 |
| Subordinated debt and guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPS")<sup>(4)</sup> | **89024** | **1573** | **7.17** | 104752 | 2181 | 8.26 | 73840 | 1366 | 7.50 |
| **Total interest-bearing liabilities** | **3963071** | **25837** | **2.64** | 3967275 | 29716 | 2.97 | 3991495 | 30034 | 3.05 |
| Noninterest-bearing deposits | **1564867** |  |  | 1609667 |  |  | 1549859 |  |  |
| Accrued expenses and other liabilities | **46505** |  |  | 45602 |  |  | 40444 |  |  |
| Stockholders' equity | **600212** |  |  | 584209 |  |  | 547443 |  |  |
| **Total liabilities and stockholders' equity** | $**6174655** |  |  | $6206753 |  |  | $6129241 |  |  |
| Net interest spread |  |  | **2.80%** |  |  | 2.48% |  |  | 2.27% |
| Net interest margin |  |  | **3.64** |  |  | 3.43 |  |  | 3.21 |
| Net interest margin excluding accretion<sup>(3)</sup> |  |  | **3.35** |  |  | 3.24 |  |  | 2.99 |
| Cost of funds |  |  | **1.90** |  |  | 2.11 |  |  | 2.20 |
| Cost of deposits |  |  | **1.81** |  |  | 1.99 |  |  | 2.10 |
| Cost of debt |  |  | **7.17** |  |  | 7.71 |  |  | 6.43 |

---

____________________________________

(1) All amounts are reported on a tax-equivalent basis computed using the statutory federal income tax rate of 21.0%, exclusive of nondeductible interest expense.

(2) Average loan balances include nonaccrual loans.

(3) Interest income on loans includes accreted loan fees, net of costs and accretion of discounts on acquired loans, which are included in the yield calculations. There were $4.3 million, $4.1 million and $3.7 million of accretion interest on loans for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(4) Interest expense on deposits and borrowings includes amortization of deposit discounts and amortization of borrowing fair value adjustments. There were zero, $1.2 million and $334 thousand of amortization of deposit discounts and $79 thousand, $171 thousand and $232 thousand of amortization of borrowing fair value adjustments for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
| The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: | The following reconciles return on average assets, average equity and return on average tangible common equity<sup>(1)</sup>: |
| Net income | $**17088** | $15887 | $14348 | $15507 | $13764 |
| Annualized net income (A) | $**69301** | $63030 | $56924 | $62198 | $55821 |
| Net income | $**17088** | $15887 | $14348 | $15507 | $13764 |
| Add: amortization of other intangible assets, net of tax | **1493** | 1529 | 1541 | 1708 | 1717 |
| Net income excluding amortization of other intangible assets – non-GAAP | **18581** | 17416 | 15889 | 17215 | 15481 |
| Annualized net income excluding amortization of other intangible assets – non-GAAP (B) | $**75356** | $69096 | $63038 | $69049 | $62784 |
| Net income | $**17088** | $15887 | $14348 | $15507 | $13764 |
| Add: amortization of other intangible assets, net of tax | **1493** | 1529 | 1541 | 1708 | 1717 |
| Adjusted net income – non-GAAP | **18581** | 17416 | 15889 | 17215 | 15481 |
| Annualized adjusted net income – non-GAAP (C) | $**75356** | $69096 | $63038 | $69049 | $62784 |
| Net income | $**17088** | $15887 | $14348 | $15507 | $13764 |
| Less: income tax expense | **5570** | 4895 | 4637 | 5124 | 4493 |
| Less: provision for credit losses | **85** | 2827 | 2992 | 1528 | 1028 |
| Pre-tax pre-provision net income – non-GAAP | $**22743** | $23609 | $21977 | $22159 | $19285 |
| Return on average assets – GAAP | **1.12%** | 1.02% | 0.95% | 1.03% | 0.91% |
| Adjusted return on average assets – non-GAAP | **1.22%** | 1.11% | 1.05% | 1.15% | 1.02% |
| Average assets | $**6174655** | $6206753 | $6020574 | $6021385 | $6129241 |
| Average stockholders' equity (D) | $**600212** | $584209 | $571247 | $558952 | $547443 |
| Less: average goodwill and core deposit intangible | **(92086)** | (94059) | (96074) | (98241) | (100514) |
| Average tangible common equity (E) | $**508126** | $490150 | $475173 | $460711 | $446929 |
| Return on average common equity – GAAP (A)/(D) | **11.55%** | 10.79% | 9.96% | 11.13% | 10.20% |
| Return on average tangible common equity – non-GAAP (B)/(E) | **14.83%** | 14.10% | 13.27% | 14.99% | 14.05% |
| Adjusted return on average tangible common equity – non-GAAP (C)/(E) | **14.83%** | 14.10% | 13.27% | 14.99% | 14.05% |

---

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date | Quarter to Date |
| *($ in thousands, except per share data)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
| The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP<sup>(2)</sup>: | The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP<sup>(2)</sup>: | The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP<sup>(2)</sup>: | The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP<sup>(2)</sup>: | The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP<sup>(2)</sup>: | The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP<sup>(2)</sup>: |
| Noninterest expense (F) | $**37056** | $35499 | $34379 | $34410 | $33747 |
| Less: amortization of other intangible assets | **(1980)** | (2000) | (2039) | (2272) | (2278) |
| Adjusted noninterest expense (G) | $**35076** | $33499 | $32340 | $32138 | $31469 |
| Net interest income (H) | $**52555** | $50202 | $48418 | $47163 | $45898 |
| Add: taxable-equivalent adjustment | **89** | 92 | 83 | 81 | 81 |
| Taxable-equivalent net interest income (I) | $**52644** | $50294 | $48501 | $47244 | $45979 |
| Noninterest income (J) | $**7244** | $8906 | $7938 | $9406 | $7134 |
| Adjusted noninterest income (K) | $**7244** | $8906 | $7938 | $9406 | $7134 |
| Efficiency ratio – GAAP (F)/(H)+(J) | **61.97%** | 60.06% | 61.00% | 60.83% | 63.64% |
| Adjusted efficiency ratio – non-GAAP (G)/(I)+(K) | **58.57%** | 56.59% | 57.30% | 56.73% | 59.25% |
| Net operating expense to average assets – GAAP | **1.96%** | 1.70% | 1.74% | 1.67% | 1.76% |
| Adjusted net operating expense to average assets – non-GAAP | **1.83%** | 1.57% | 1.61% | 1.51% | 1.61% |

---

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *($ in thousands, except per share data)* | **Q1 2026** | **Q1 2026** | Q4 2025 | Q4 2025 | Q3 2025 | Q3 2025 | Q2 2025 | Q2 2025 | Q1 2025 | Q1 2025 |
| The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: | The following reconciles book value per common share and tangible book value per common share<sup>(1)</sup>: |
| Stockholders' equity (L) | **$** | **602714** | $| 589873 | $| 577207 | $| 565194 | $| 552470 |
| Less: goodwill and core deposit intangible | **(91008)** | **(91008)** | (92988) | (92988) | (94988) | (94988) | (97027) | (97027) | (99299) | (99299) |
| Tangible common equity (M) | **$** | **511706** | $| 496885 | $| 482219 | $| 468167 | $| 453171 |
| Shares of common stock outstanding (N) | **33451063** | **33451063** | 33413503 | 33413503 | 33421672 | 33421672 | 33374265 | 33374265 | 33374265 | 33374265 |
| Book value per common share – GAAP (L)/(N) | **$** | **18.02** | $| 17.65 | $| 17.27 | $| 16.94 | $| 16.55 |
| Tangible book value per common share – non-GAAP (M)/(N) | **$** | **15.30** | $| 14.87 | $| 14.43 | $| 14.03 | $| 13.58 |
| The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: | The following reconciles equity to assets and tangible common equity to tangible assets<sup>(1)</sup>: |
| Stockholders' equity (O) | **$** | **602714** | $| 589873 | $| 577207 | $| 565194 | $| 552470 |
| Less: goodwill and core deposit intangible | **(91008)** | **(91008)** | (92988) | (92988) | (94988) | (94988) | (97027) | (97027) | (99299) | (99299) |
| Tangible common equity (P) | **$** | **511706** | $| 496885 | $| 482219 | $| 468167 | $| 453171 |
| Assets (Q) | **$** | **6206063** | $| 6258818 | $| 6278479 | $| 6037874 | $| 6176563 |
| Less: goodwill and core deposit intangible | **(91008)** | **(91008)** | (92988) | (92988) | (94988) | (94988) | (97027) | (97027) | (99299) | (99299) |
| Tangible assets (R) | **$** | **6115055** | $| 6165830 | $| 6183491 | $| 5940847 | $| 6077264 |
| Period-end equity to assets – GAAP (O)/(Q) | **9.71%** | **9.71%** | 9.42% | 9.42% | 9.19% | 9.19% | 9.36% | 9.36% | 8.94% | 8.94% |
| Period-end tangible common equity to tangible assets – non-GAAP (P)/(R) | **8.37%** | **8.37%** | 8.06% | 8.06% | 7.80% | 7.80% | 7.88% | 7.88% | 7.46% | 7.46% |

---

____________________________________

(1) Management believes that reporting tangible common equity and tangible assets more closely approximates the adequacy of capital for regulatory purposes.

(2) Management believes that reporting the adjusted efficiency ratio – non-GAAP more closely measures its effectiveness of controlling cash-based operating activities.

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Regulatory Capital and Ratios for the Company** | | | | | |
| *($ in thousands)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
| Common equity | $**602714** | $589873 | $577207 | $565194 | $552470 |
| Goodwill<sup>(1)</sup> | **(61061)** | (61123) | (61176) | (61238) | (61300) |
| Core deposit intangible<sup>(2)</sup> | **(21074)** | (22566) | (24041) | (25573) | (27280) |
| DTAs that arise from net operating loss and tax credit carryforwards | **—** | (48) | (40) | (39) |  |
| Accumulated other comprehensive loss | **5270** | 4593 | 4759 | 5603 | 6333 |
| **Common Equity Tier 1 Capital** | **525849** | 510729 | 496709 | 483947 | 470223 |
| TRUPS | **30247** | 30168 | 30085 | 30005 | 29926 |
| **Tier 1 Capital** | **556096** | 540897 | 526794 | 513952 | 500149 |
| Allowable reserve for credit losses and other Tier 2 adjustments | **59933** | 60661 | 60852 | 60605 | 59726 |
| Subordinated debt | **58782** | 58893 | 39409 | 44236 | 44053 |
| **Total Capital** | $**674811** | $660451 | $627055 | $618793 | $603928 |
| **Risk-Weighted Assets ("RWA")** | $**4794374** | $4852573 | $4867237 | $4890679 | $4823833 |
| **Average Assets ("AA")** | **6098196** | 6129306 | 5942911 | 5943124 | 6050310 |
| Common Equity Tier 1 Capital to RWA | **10.97%** | 10.52% | 10.21% | 9.90% | 9.75% |
| Tier 1 Capital to RWA | **11.60** | 11.15 | 10.82 | 10.51 | 10.37 |
| Total Capital to RWA | **14.08** | 13.61 | 12.88 | 12.65 | 12.52 |
| Tier 1 Capital to AA (Leverage) | **9.12** | 8.82 | 8.86 | 8.65 | 8.27 |

---

------

**Shore Bancshares, Inc.**

Reconciliation of GAAP and Non-GAAP Measures (Unaudited) – Continued

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Regulatory Capital and Ratios for the Bank** | | | | | |
| *($ in thousands)* | **Q1 2026** | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
| Common equity | $**660598** | $648279 | $639670 | $627838 | $617071 |
| Goodwill<sup>(1)</sup> | **(61061)** | (61123) | (61176) | (61238) | (61300) |
| Core deposit intangible<sup>(2)</sup> | **(21074)** | (22566) | (24041) | (25573) | (27280) |
| Accumulated other comprehensive loss | **5270** | 4593 | 4759 | 5603 | 6333 |
| **Common Equity Tier 1 Capital** | **583733** | 569183 | 559212 | 546630 | 534824 |
| **Tier 1 Capital** | **583733** | 569183 | 559212 | 546630 | 534824 |
| Allowable reserve for credit losses and other Tier 2 adjustments | **59894** | 60563 | 60822 | 60605 | 59726 |
| **Total Capital** | $**643627** | $629746 | $620034 | $607235 | $594550 |
| **Risk-Weighted Assets ("RWA")** | $**4791223** | $4844639 | $4864871 | $4888558 | $4821975 |
| **Average Assets ("AA")** | **6093905** | 6122775 | 5939890 | 5940411 | 6050130 |

---

___________________________________

(1)Goodwill is net of deferred tax liability.

(2)Core deposit intangible is net of deferred tax liability.

------

**Shore Bancshares, Inc.**

Summary of Loan Portfolio (Unaudited)

Portfolio loans are summarized by loan type as follows:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* | **March 31, 2026** | **% of Total Loans** | December 31, 2025 | % of Total Loans | September 30, 2025 | % of Total Loans | June 30, 2025 | % of Total Loans | March 31, 2025 | % of Total Loans |
| &nbsp;&nbsp;Commercial real estate | $**2599815** | **53.62%** | $2643996 | 53.95% | $2642601 | 54.12% | $2603974 | 53.95% | $2544107 | 53.25% |
| &nbsp;&nbsp;Residential real estate | **1425733** | **29.41** | 1414964 | 28.88 | 1383348 | 28.33 | 1349010 | 27.94 | 1325858 | 27.75 |
| &nbsp;&nbsp;Construction | **342835** | **7.07** | 344903 | 7.04 | 352116 | 7.21 | 350053 | 7.25 | 366218 | 7.67 |
| &nbsp;&nbsp;Commercial | **220833** | **4.56** | 226006 | 4.61 | 221598 | 4.54 | 224092 | 4.64 | 234499 | 4.91 |
| &nbsp;&nbsp;Consumer | **254478** | **5.25** | 265912 | 5.43 | 278242 | 5.70 | 294239 | 6.09 | 300007 | 6.28 |
| &nbsp;&nbsp;Credit cards | **4336** | **0.09** | 4521 | 0.09 | 5064 | 0.10 | 6260 | 0.13 | 6800 | 0.14 |
| Total loans | **4848030** | **100.00%** | 4900302 | 100.00% | 4882969 | 100.00% | 4827628 | 100.00% | 4777489 | 100.00% |
| Less: allowance for credit losses | **(58481)** |  | (58836) |  | (59554) |  | (58483) |  | (58042) |  |
| Total loans, net | $**4789549** |  | $4841466 |  | $4823415 |  | $4769145 |  | $4719447 |  |

---

------

**Shore Bancshares, Inc.**

Classified Assets and Nonperforming Assets (Unaudited)

Classified assets and nonperforming assets are summarized as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *($ in thousands)* | **March 31, 2026** | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 |
| Classified loans |  |  |  |  |  |
| &nbsp;&nbsp;Substandard | $**82337** | $57366 | $48470 | $19930 | $19434 |
| Total classified loans | **82337** | 57366 | 48470 | 19930 | 19434 |
| &nbsp;&nbsp;Special mention loans | **97771** | 73401 | 70997 | 65564 | 33456 |
| Total classified and special mention loans | $**180108** | $130767 | $119467 | $85494 | $52890 |
| Classified loans | $**82337** | $57366 | $48470 | $19930 | $19434 |
| Other real estate owned | **69** | 113 | 120 | 179 | 179 |
| Repossessed assets | **3345** | 2879 | 3432 | 2457 | 2429 |
| **Total classified assets** | $**85751** | $**60358** | $**52022** | $**22566** | $**22042** |
| Classified assets to total assets | **1.38%** | 0.96% | 0.83% | 0.37% | 0.36% |
| Nonaccrual loans | $**64958** | $39960 | $24378 | $16782 | $15402 |
| 90+ days delinquent accruing | **—** | 255 | 153 | 215 | 894 |
| Other real estate owned ("OREO") | **69** | 113 | 120 | 179 | 179 |
| Repossessed property | **3345** | 2879 | 3432 | 2457 | 2429 |
| **Total nonperforming assets** | $**68372** | $**43207** | $**28083** | $**19633** | $**18904** |
| Accruing borrowers experiencing financial difficulty loans ("BEFD") | **5263** | 5311 | 6704 | 6709 | 1356 |
| **Total nonperforming assets and BEFDs modifications** | $**73635** | $**48518** | $**34787** | $**26342** | $**20260** |
| Nonperforming assets to total assets | **1.10%** | 0.69% | 0.45% | 0.33% | 0.31% |
| **Total assets** | $**6206063** | $**6258818** | $**6278479** | $**6037874** | $**6176563** |

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