Shore Bancshares Announces Pricing of Public Offering of Common Stock

    Shore Bancshares Announces Pricing of Public Offering of Common Stock

PR Newswire

EASTON, Md., May 21, 2014

EASTON, Md., May 21, 2014 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ -
SHBI), or the Company, announced today that on May 20, 2014 it priced a public
offering of 3,600,000 shares of common stock at $8.25 per share for gross
proceeds of $29.7 million. The Company expects to close the sale of the shares
of common stock on or about May 27, 2014, subject to customary closing
conditions. Sandler O'Neill + Partners, L.P. is the sole underwriter for the
offering. The underwriter will have a 30-day option to purchase up to an
additional 540,000 shares of common stock from the Company at the offering
price to cover over-allotments, if any.

The Company intends to use the net proceeds of the offering for general
corporate purposes, including but not limited to the contribution of capital
to The Talbot Bank of Easton, Maryland, a bank subsidiary of the Company, to
satisfy regulatory capital requirements, and to support organic growth, de
novo branching, branch acquisitions, loan production offices and opportunistic
acquisitions, if any. Lloyd "Scott" Beatty, Jr., President and Chief
Executive Officer, stated, "I am extremely pleased with the success of this
offering and I welcome our new stockholders. This offering will help ensure
that we have the capital strength and flexibility to support our franchise and
drive value creation for our stockholders."

This announcement is for informational purposes only and is not an offer to
sell or the solicitation of an offer to buy any securities of the Company,
which is made only by means of a prospectus supplement and related base
prospectus, nor will there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or jurisdiction.
The Company has filed a shelf registration statement (including a prospectus)
(File No. 333-195527) and a prospectus supplement with the Securities and
Exchange Commission, or the SEC, for the offering to which this communication
relates. The sale of shares of common stock in the underwritten offering will
be made pursuant to a prospectus supplement to the base prospectus dated May
8, 2014. Before you invest, you should read the prospectus in the
registration statement, the prospectus supplement, and other documents the
Company has filed with the SEC for more complete information about the Company
and this offering. You may get these documents for free by visiting EDGAR on
the SEC website at www.sec.gov or by visiting the Company's website at
www.shorebancshares.com. Alternatively, copies of the prospectus supplement
and the prospectus relating to the offering may be obtained by contacting
Sandler O'Neill + Partners, L.P., 1251 Avenue of the Americas, 6^th Floor, New
York, New York 10020, or by phone at 1-866-805-4128.

Shore Bancshares, Inc. Information

The Company is a financial holding company headquartered in Easton, Maryland
and is the largest independent bank holding company headquartered on
Maryland's Eastern Shore. It is the parent company of two banks, The Talbot
Bank of Easton, Maryland, and CNB; three insurance producer firms, The
Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin and
Associates, Inc; a wholesale insurance company, TSGIA, Inc; and an insurance
premium finance company, Mubell Finance, LLC. The Company engages in the
trust services business through the trust department at CNB under the name
"Wye Financial & Trust". Additional information is available at
www.shorebancshares.com.

Forward-Looking Statements

The statements contained herein that are not historical facts are
forward-looking statements (as defined by the Private Securities Litigation
Reform Act of 1995) and are based on management's current expectations and
beliefs concerning future developments and their potential effects on the
Company. Such statements involve inherent risks and uncertainties, many of
which are difficult to predict and are generally beyond the control of the
Company. There can be no assurance that future developments affecting the
Company will be the same as those anticipated by management. 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 risks 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 SEC entitled "Risk Factors".

The Company specifically disclaims any obligation to update any factors or to
publicly announce the result of revisions to any of the forward-looking
statements included herein to reflect future events or developments.

SOURCE Shore Bancshares, Inc.

Website: http://www.shorebancshares.com
Contact: George Rapp, Chief Financial Officer, 410-763-7800
 
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