Exhibit 99.1

18 E. Dover Street

Easton, Maryland 21601

Phone 410-763-7800

PRESS RELEASE

Shore Bancshares Reports Second Quarter and First-Half Financial Results

Easton, Maryland (7/28/2022) - Shore Bancshares, Inc. (NASDAQ - SHBI) (the “Company”) reported net income of $7.499 million or $0.38 per diluted common share for the second quarter of 2022, compared to net income of $5.613 million or $0.28 per diluted common share for the first quarter of 2022, and net income of $4.031 million or $0.34 per diluted common share for the second quarter of 2021. Net income for the first half of 2022 was $13.112 million or $0.66 per diluted common share, compared to net income for the first half of 2021 of $8.028 million or $0.68 per diluted common share. Net income, excluding merger related expenses for the second quarter of 2022 was $7.674 million or $0.39 per diluted common share, compared to net income, excluding merger related expenses of $6.156 million or $0.31 per diluted common share for the first quarter of 2022 and net income, excluding merger related expenses of $4.311 million or $0.37 per diluted common share for the second quarter 2021.

When comparing net income, excluding merger related expenses, for the second quarter of 2022 to the first quarter of 2022 net income increased $1.5 million due to an increase in net interest income of $2.2 million. When comparing net income, excluding merger related expenses, for the second quarter of 2022 to the second quarter of 2021, net income increased $3.3 million primarily due to increases in net interest income of $10.5 million and noninterest income of $2.9 million. These improvements to income in the second quarter of 2022 were partially offset by an increase in noninterest expenses of $9.4 million primarily as a result of the acquisition of Severn Bank (“Severn”) in November of 2021.

“We are pleased to announce our second quarter financial results.” said Lloyd L. “Scott” Beatty, Jr., President and Chief Executive Officer. “We continue to see strong loan demand and opportunities for growth within our various markets. With minimal merger expenses in the second quarter due to a shift from integration to operation, we noted positive trends in our ROA, efficiency ratio, and tangible book value. Our outlook for the remainder of 2022 is a very positive one, as we continue to maintain our commitment and focus on core earnings and enhanced returns for our shareholders.”

Balance Sheet Review

Total assets were $3.443 billion at June 30, 2022, a $17.6 million, or less than 1.0%, decrease when compared to $3.460 billion at the end of 2021. This decrease was due to a decline in interest bearing deposits with other banks of $182.2 million, or 32.1%, partially offset by increases in loans held for investment of $145.4 million, or 6.9%, and investment securities held to maturity of $54.4 million, or 13.4%. The positive organic loan growth for loans held for investment was due to strong loan demand, specifically within our commercial real estate, residential real estate and consumer loan portfolios, partially offset by paydowns in the commercial loan portfolio. As of June 30, 2022, the Company had 37 Paycheck Protection Program (“PPP’) loans totaling $1.7 million that were outstanding.

Total deposits decreased $11.9 million, or less than 1%, when compared to December 31, 2021. The decrease in total deposits was primarily due to decreases in money market and savings accounts of $79.7 million, $38.4 million in noninterest-bearing deposits and $12.0 million in time deposits offset by an increase in interest bearing checking accounts of $118.1 million.

Total stockholders’ equity increased $2.1 million, or less than 1%, when compared to December 31, 2021, primarily due to current year earnings, partially offset by an increase in unrealized losses of $6.7 million (net of tax) on available for sale securities which are recorded in accumulated other comprehensive income (loss). At June 30, 2022, the ratio of total equity to total assets was 10.25% and the ratio of total tangible equity to total tangible assets was 8.39% compared to 10.14% and 8.25% at the end of 2021.

Review of Quarterly Financial Results

Net interest income was $24.6 million for the second quarter of 2022, compared to $22.4 million for the first quarter of 2022 and $14.1 million for the second quarter of 2021. The increase in net interest income when compared to the first quarter of 2022 was primarily due to increases in interest and fees on loans of $1.4 million, interest on deposits with other banks of $572 thousand and interest on investment securities of $407 thousand, partially offset by an increase in expense on interest-bearing deposits of $153 thousand. The improvement in interest and fees on loans was due to an increase in the average balance of loans of $81.4 million, or 3.8%. Accretion income from loans acquired from Severn increased over first quarter by $265 thousand. The increase in interest on deposits with other banks was primarily due to the recent increases to the fed funds rate. The increase in interest on taxable investment securities was driven by an increase in the rates of 26bps and an increase in the average balance within these securities of $15.2 million, or 2.9%, resulting from additional purchases of held to maturity securities during second quarter of 2022. The increase in deposits with other banks and investment securities was primarily due to excess liquidity.

The increase in net interest income when compared to the second quarter of 2021 was primarily due to increases in interest and fees on loans of $9.1 million, interest on taxable investment securities of $1.3 million and interest on deposits with other banks of $771 thousand, partially offset by increases in expenses on interest-bearing deposits of $455 thousand and long-term borrowings of $171 thousand, all of which were significantly impacted by the acquisition of Severn in the fourth quarter of 2021. Excluding the merger related impact to the balance sheet, organic loan growth and excess liquidity resulted in an improved overall yield on total earning assets, while maintaining lower cost of funding on core deposits.

The Company’s net interest margin increased to 3.10% for the second quarter of 2022 from 2.78% for the first quarter of 2022 and 2.91% for the second quarter of 2021. The increase in net interest margin when compared to the first quarter of 2022 and second quarter of 2021 was primarily due to higher average loan balances, accretion income from purchased loans and higher rates paid on lower yielding assets. Excess liquidity continues to compress the overall net interest margin. Absent excess liquidity of $200 million, we estimate our margin for the second quarter of 2022 would have been 3.31%.

The provision for credit losses was $200 thousand for the three months ended June 30, 2022. The comparable amounts were $600 thousand and $650 thousand for the three months ended March 31, 2022 and June 30, 2021, respectively. The decrease in the provision for credit losses during the second quarter of 2022 as compared to the prior quarters was primarily attributed to significant net recoveries. Net recoveries for the second quarter of 2022 were $573 thousand, compared to net recoveries of $166 thousand for the first quarter of 2022 and net recoveries of $125 thousand for the second quarter 2021. The ratio of the allowance for credit losses to period-end loans, excluding PPP loans and acquired loans, was 0.89% at June 30, 2022, compared to 0.92% at March 31, 2022 and 1.12% at June 30, 2021. The decline in the percentage of the allowance from the first quarter of 2022 was primarily due to decreased historical loss experience. The decline in the percentage of the allowance from the second quarter of 2021 was primarily the result of improved credit quality, including lower historical loss experience as well as lower pandemic related qualitative reserves.

At June 30, 2022 and March 31, 2022, nonperforming assets were $4.0 million and $3.9 million respectively. The balance of nonperforming assets increased primarily due to an increase in loans 90 days past due still accruing of $671 thousand, or 146.2%, partially offset by a decrease in other real estate owned (“OREO”) of $364 thousand, or 64.9%, and nonaccrual loans of $155 thousand, or 5.4%. Accruing troubled debt restructuring (“TDRs”) decreased $110 thousand, or 2.2%, at June 30, 2022 compared to March 31, 2022. When comparing the second quarter of 2022 to the second quarter of 2021, nonperforming assets decreased $882 thousand, or 18.0%, primarily due to decreases in nonaccrual loans of $1.3 million, or 31.8%, offset by an increase in loans 90 days past due still accruing of $378 thousand, or 50.3%. Accruing TDRs decreased $1.4 million, or 22.8%. The ratio of nonperforming assets and accruing TDRs to total assets was 0.26%, 0.25% and 0.53% at June 30, 2022, March 31, 2022 and June 30, 2021, respectively. In addition, the ratio of accruing TDRs to total loans at June 30, 2022 was 0.22% compared to 0.23% at March 31, 2022 and 0.43% at June 30, 2021.

Total noninterest income for the second quarter of 2022 decreased $213 thousand, or 3.5%, when compared to the first quarter of 2022 and increased $2.9 million, or 100.9%, when compared to the second quarter of 2021. The decrease compared to the first quarter of 2022 was primarily due to a decrease in revenue associated with the mortgage division of $771 thousand, or 41.3%, and partially offset by increases in interchange credits of $215 thousand, Mid-MD Title Company (“Mid-MD Title”) revenue of $103 thousand and service charges on deposit accounts of $79 thousand. The increase in noninterest income when compared to the second quarter of 2021 was largely impacted by the addition of Severn in the fourth quarter of 2021 which included mortgage-banking revenue of $1.1 million and Mid-MD Title revenue of $426 thousand and also contributed to the increase in service charges on deposit accounts of $755 thousand and interchange fees of $217 thousand.

Total noninterest expense, excluding merger related expenses, for the second quarter of 2022 increased $251 thousand or 1.2%, when compared to the first quarter of 2022 and increased $9.4 million, or 89.1%, when compared to the second quarter of 2021. The increase in noninterest expense when compared to the first quarter of 2022 was primarily due to increases in fee and loan servicing expenses as well as derivatives expense. The increase from the second quarter of 2021 was primarily due to increases in salaries and wages, employee related benefits, occupancy expense, data processing, amortization of intangible assets and legal and professional fees, which were all significantly impacted by adding Severn and its operations.

Review of Six-Month Financial Results

Net interest income for the first six months of 2022 was $47.0 million, an increase of $19.1 million, or 68.6%, when compared to the first six months of 2021. The increase in net interest income was primarily due to an increase in total interest income of $20.1 million, or 65.2%, specifically interest and fees on loans of $16.8 million, or 58.4%. The improvement of interest and fees on loans was primarily due to the increase in the average balance of $740.5 million, or 51.1%, coupled with accretion income from the acquired loans of $1.5 million for the first six months of 2022. Taxable investment securities and interest on deposits with other banks increased $2.4 million and $978 thousand, respectively, partially offset by an increase in total interest expense of $974 thousand. The increase in interest expense was the result of an increase in the average balance of interest bearing deposits of $860.6 million, or 68.1%, despite the rates paid on these deposits declining 9bps. Interest on long term borrowings increased by $346 thousand due to long-term advances with FHLB and junior subordinated debt acquired as part of the Severn acquisition.

The provision for credit losses for the six months ended June 30, 2022 and 2021 was $800 thousand and $1.1 million, respectively. The decrease in provision for credit losses was the result of significant recoveries in the first six months of 2022 of $739 thousand compared to $125 thousand for the first six months of 2021. The ratio of the allowance to total loans decreased from 1.02% at June 30, 2021, to 0.68% at June 30, 2022. Excluding PPP loans and acquired loans, the ratio of the allowance for credit losses to period-end loans was 0.89% at June 30, 2022, lower than the 1.12% at June 30, 2021, primarily due to improved credit quality, lower historical loss experience, and reduced pandemic related qualitative factors.

Total noninterest income for the six months ended June 30, 2022 increased $6.4 million, or 117.6%, when compared to the same period in 2021. The increase in noninterest income primarily consisted of revenue associated with the mortgage division of $3.0 million, service charges on deposit accounts of $1.4 million, revenue from Mid-Maryland Title of $749 thousand and other noninterest income of $803 thousand. The increase in other noninterest income was primarily due to increases in rental income of $666 thousand and other loan fee income of $232 thousand partially offset by losses of $88 thousand related to market value adjustments of equity securities.

Total noninterest expense, excluding merger related expenses, for the six months ended June 30, 2022 increased $18.5 million, or 87.9%, when compared to the same period in 2021. The increase was primarily the result of higher salaries, employee benefits, occupancy expense, other intangibles, data processing costs, other noninterest expenses, and FDIC insurance premiums due to significant increases in new and existing customers and the acquisition of Severn. In addition, as previously mentioned, during the first six months of 2022 the Company recorded merger-related expenses of $971 thousand due to the acquisition of Severn.

Shore Bancshares Information

Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the largest independent bank holding company located on Maryland's Eastern Shore. It is the parent company of Shore United Bank. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank. 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) 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 risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing war in Ukraine; the magnitude and duration of the COVID-19 pandemic and related variants and mutations and their impact on the global economy and financial market conditions and our business, results of operations, and financial condition; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; the transition away from USD LIBOR and uncertainty regarding potential alternative reference rates, including SOFR; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; and other factors that may affect our future results. 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”.

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.

For further information contact: Edward Allen, Executive Vice President and Chief Financial Officer, 410-763-7800

Shore Bancshares, Inc.

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