Talbot Bank Enters Into Consent Order With Regulators

            Talbot Bank Enters Into Consent Order With Regulators

PR Newswire

EASTON, Md., May 24, 2013

EASTON, Md., May 24, 2013 /PRNewswire/ --Shore Bancshares, Inc. (NASDAQ:
SHBI) announced today that its wholly owned subsidiary, The Talbot Bank of
Easton, Maryland (the "Bank"), entered into a Consent Order with the Federal
Deposit Insurance Corporation ("FDIC") and the Commissioner of Financial
Regulation of Maryland ("Commissioner") with certain requirements, including
improving credit quality and reviewing and revising certain of the Bank's
policies and procedures.

Patrick M. Bilbrough, Chief Executive Officer of the Bank, commented:
"Everyone is familiar with the fact that the local and national economies have
experienced a very difficult time. No bank has been immune from the challenges
created by the economic downturn. The Bank, like most businesses, is facing
challenges. As we deal with those challenges, we are working closely with the
FDIC and the Commissioner to make sure that we handle these challenges in the
correct way and in a timely manner."

Importantly, despite the economic problems encountered over the last several
years, the Bank had a Tier 1 leverage ratio of 8.24% and a total risk based
capital ratio of 12.38% at the end of the first quarter of 2013 which exceeds
the regulatory requirement of the Consent Order as well as internal levels set
by the Bank. Additionally, the Company reported Net Income for the first
quarter of 2013 reflecting an improvement in credit quality.

The Bank has been aggressively improving its credit quality and has already
accomplished many of the requirements of the Consent Order. The Bank's
management team is confident that the administrative aspects of this Consent
Order can be effectively addressed.

Mr. Bilbrough further noted: "While these types of agreements have become
somewhat commonplace in the banking industry over the last three years, every
member of our Board and management team is focused and committed to working
with our regulators to continue to resolve the issues facing the Bank and
meeting all the terms and conditions of the Consent Order. At the same time,
we are committed to continuing to provide to our customers the superior care
and service levels to which they are accustomed."

Mr. Bilbrough concluded: "We look forward to overcoming our current
challenges and emerging an even stronger bank."

The Bank is a member of the Shore Bancshares family of companies, the largest
independent financial services company that offers banking, insurance and
wealth management services to families and businesses on the Delmarva
Peninsula. As a financial holding company with $1.1 billion in assets, the
Shore Bancshares family of companies also includes CNB, Wye Financial & Trust,
Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin &
Associates, Inc.

With 7 locations in Talbot and Dorchester counties, we serve the local needs
of our customers and our community through personalized banking services and
products, convenient operations and secure and reliable banking solutions. Our
employees offer a personalized "hometown" approach to make your banking
experience positive. We invest in what is important to you.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
do not represent historical facts, but statements about management's beliefs,
plans and objectives. These statements are evidenced by terms such as
"anticipate," "estimate," "should," "expect," "believe," "intend," and similar
expressions. Although these statements reflect management's good faith beliefs
and projections, they are not guarantees of future performance and they may
not prove true. These projections involve risk and uncertainties that could
cause actual results to differ materially from those addressed in the
forward-looking statements. For a discussion of these risks and uncertainties,
see the section of the periodic reports filed by Shore Bancshares, Inc. with
the Securities and Exchange Commission entitled "Risk Factors".

SOURCE Shore Bancshares, Inc.

Website: http://www.shbi.com
Contact: W. Moorhead Vermilye, Chief Executive Officer, 410-763-7800
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