Exhibit 99.1

18 E. Dover Street

Easton, Maryland 21601

Phone 410-763-7800

PRESS RELEASE

Shore Bancshares Reports First Quarter 2023 Financial Results

Easton, Maryland (04/27/2023) - Shore Bancshares, Inc. (NASDAQ - SHBI) (the “Company” or “Shore Bancshares”) reported net income of $6.457 million or $0.32 per diluted common share for the first quarter of 2023, compared to net income of $8.407 million or $0.42 per diluted common share for the fourth quarter of 2022, and net income of $5.613 million or $0.28 per diluted common share for the first quarter of 2022. Net income, excluding merger-related expenses, for the first quarter of 2023 was $6.959 million or $0.35 per diluted common share, compared to net income, excluding merger-related expenses, of $9.123 million or $0.46 per diluted common share for the fourth quarter of 2022 and net income, excluding merger-related expenses, of $6.156 million or $0.31 per diluted common share for the first quarter 2022. On December 14, 2022, the Company and The Community Financial Corporation (“TCFC”) announced that they had entered into a merger agreement pursuant to which TCFC will be merged with and into the Company. The Company anticipates additional merger-related expenses due to the pending TCFC acquisition.

When comparing net income, excluding merger-related expenses, for the first quarter of 2023 to the fourth quarter of 2022, net income decreased $2.2 million due to decreases in net interest income of $1.3 million and noninterest income of $528 thousand, coupled with increases in noninterest expense of $169 thousand and provision for credit losses of $763 thousand. When comparing net income, excluding merger-related expenses, for the first quarter of 2023 to the first quarter of 2022, net income increased $803 thousand primarily due to an increase in net interest income of $3.2 million partially offset by a decrease in noninterest income of $712 thousand, coupled with increases in both noninterest expense of $600 thousand and provision for credit losses of $613 thousand.

“We are pleased to report our first quarter 2023 earnings and financial results” said Lloyd L. “Scott” Beatty, Jr., President and Chief Executive Officer. “This quarter brought intense scrutiny of all banks and their liquidity position due to the recent failures of Silicon Valley Bank and Signature Bank in March. Considering these events, monitoring liquidity and deposit outflow was the primary focus of our cash management teams while we continued to fund loan growth. We are pleased to report that total deposits decreased less than 1.0% since the end of 2022. We experienced normal seasonality in our deposit outflows, specifically from our municipal deposit customers, which typically trend down during the first quarter of each year. We transitioned existing deposits to our insured cash sweep (“ICS”) program during the first quarter, which not only helped alleviate deposit outflows but generated inflows from new and existing customers. We continue to monitor our liquidity position closely by evaluating our percentage of uninsured deposits and our access to additional liquidity through Federal Home Loan Bank (“FHLB”) borrowings and other traditional sources of liquidity. We continue to make progress with the pending merger with TCFC. We have now received all bank regulatory approvals and expect to complete the merger on or about July 1^st.”

Balance Sheet Review

Total assets were $3.554 billion at March 31, 2023, an increase of $76.4 million, or 2.2%, when compared to $3.477 billion at December 31, 2022. This increase was primarily due to an increase in loans held for investment of $112.6 million, or 4.4%, partially offset by a decrease in cash and cash equivalents of $17.8 million and an increase in allowance for credit losses of $11.8 million primarily due to a Day 1 CECL adjustment in connection with the Company’s adoption of CECL.

Total borrowings were $174.7 million at March 31, 2023, an increase of $91.6 million, or 110.2%, when compared to $83.1 million at December 31, 2022. Total borrowings at March 31, 2023 were comprised of $131.5 million of FHLB short-term advances and $43.2 million of subordinated debt. There were no long-term FHLB borrowings at March 31, 2022. This increase in total borrowings at March 31, 2023 when compared to December 31,2022 was primarily due to an increase of $91.5 million in FHLB short-term borrowings to manage liquidity and fund loan growth.

Total deposits decreased $15.2 million, or less than 1.0%, when compared to December 31, 2022. The primary reason for this decrease was a decrease in noninterest-bearing deposits of $53.3 million due to the seasonal outflow of municipal deposits. Total interest-bearing deposits increased $38.1 million, primarily due to the transitioning of deposits into the Company's ICS program, which is an insured cash sweep program that provides customers with the ability to insure deposits over $250 thousand among other banks that participate in the ICS network and provides interest rates that track the federal funds rate.

Total stockholders’ equity decreased $2.6 million, or less than 1.0%, when compared to December 31, 2022, primarily due to a Day 1 CECL adjustment of $8.3 million, partially offset by current year earnings and a decrease in unrealized losses on available for sale securities of $860 thousand. At March 31, 2023, the ratio of total equity to total assets was 10.18% and the ratio of total tangible equity to total tangible assets was 8.41% compared to 10.48% and 8.67% at the end of 2022, respectively.

Review of Quarterly Financial Results

Net interest income was $25.7 million for the first quarter of 2023, compared to $26.9 million for the fourth quarter of 2022 and $22.4 million for the first quarter of 2022. The decrease in net interest income when compared to the fourth quarter of 2022 was primarily due to increases in rates paid on interest-bearing liabilities. These interest-bearing liabilities included increases in interest-bearing deposits of 52bps and FHLB short-term borrowings of 98bps, partially offset by increases in yields on loans of 34bps. The increase in the rate paid on interest-bearing deposits was primarily the result of the transitioning of $17 million of existing lower rate deposits into the Company’s ICS program which has interest rates that track the federal funds rate. The average balances of interest-bearing deposits and FHLB short-term borrowings increased $12.4 million, or less than 1.0% and $106.6 million, or 1,442% respectively. The increase in FHLB short-term borrowings was primarily utilized to manage the Company’s liquidity needs and fund loan growth. Net interest income increased when compared to the first quarter of 2022 due to an increase in the average balance of loans of $475.9 million, or 22.3%, and an increase in the average balance of investment securities of $123.2 million, or 23.1%, coupled with an increase in yields of 59bps and 100bps, respectively, resulting in $10.8 million of additional income. When comparing the first quarter of 2023 and 2022 on the liability side of the balance sheet, average interest bearing liabilities increased $122.0 million, or 5.6%. This increase was attributed to an increase in the average balance of interest-bearing deposits of $20.5 million and FHLB short-term borrowings of $114.0 million at higher rates.

The Company’s net interest margin decreased to 3.18% for the first quarter of 2023 from 3.35% for the fourth quarter of 2022 and increased compared to 2.76% for the first quarter of 2022. The decrease in the net interest margin when compared to the fourth quarter of 2022 was primarily due to the increase in the average balance of FHLB short -term borrowings of $106.6 million and an increased rate of 98bps, resulting in an additional $1.3 million in interest expense. The increase in net interest margin when compared to the first quarter of 2022 was primarily due to significantly higher volume of interest earning assets as well as improved yields on such interest earning assets.

The provision for credit losses was $1.2 million for the three months ended March 31, 2023. The comparable amounts were $450 thousand and $600 thousand for the three months ended December 31, 2022, and March 31, 2022, respectively. The increase in the provision for credit losses during the first quarter of 2023 as compared to the prior quarters was primarily a result of new loan growth of $112.6 million. Net charge offs for the first quarter of 2023 were $20 thousand, compared to net charge offs of $84 thousand for the fourth quarter of 2022 and net recoveries of $166 thousand for the first quarter of 2022.

At March 31, 2023 and December 31, 2022, nonperforming assets were $2.7 million and $3.9 million, respectively. The balance of nonperforming assets decreased primarily due to a decrease in loans 90 days past due still accruing of $1.2 million, or 66.8%. When comparing the first quarter of 2023 to the first quarter of 2022, nonperforming assets decreased $1.2 million, or 30.6%, primarily due to decreases in nonaccrual loans of 954 thousand, or 33.5%, and other real estate owned of $382 thousand, or 68.1%.

Total noninterest income for the first quarter of 2023 decreased $528 thousand, or 9.0%, when compared to the fourth quarter of 2022 and decreased $712 thousand, or 11.8%, when compared to the first quarter of 2022. The decrease compared to the fourth quarter of 2022 was primarily due to decreases in revenue associated with the mortgage division of $590 thousand, and in-service charges on deposit accounts of $133 thousand. The decrease in noninterest income when compared to the first quarter of 2022 was primarily due to decreases in revenue associated with the mortgage division of $890 thousand, revenue from Mid-Maryland Title Company, Inc. of $186 thousand and service charges on deposit accounts of $146 thousand partially offset by increases in interchange credits of $174 thousand, and other fees on bank services of $336 thousand. Declines in noninterest income from the mortgage division are primarily attributable to the general rise in interest rates that continue to put pressure on the mortgage market, resulting in declines in home loan sales and home loan refinances.

Total noninterest expense, excluding merger related expenses, for the first quarter of 2023 increased $169 thousand, or less than 1.0%, when compared to the fourth quarter of 2022 and increased $600 thousand, or 3.1%, when compared to the first quarter of 2022. The increase in noninterest expense when compared to the fourth quarter of 2022 was primarily due to increases in employee benefits and legal and professional fees primarily offset by decreases in salaries due increase in deferred salaries based on loan originations in the fourth quarter of 2022. The increase from the first quarter of 2022 was primarily due to increases in other noninterest expenses, employee related benefits, data processing, legal and professional fees and furniture and equipment expense partially offset by decreases in salary expense.

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, N.A. Shore Bancshares engages in title work related to real estate transactions through its wholly-owned subsidiary, Mid-Maryland Title Company, Inc. and 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

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; 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: Vance Adkins, Executive Vice President, and Chief Financial Officer, 410-763-7800

Shore Bancshares, Inc.

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