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Exhibit 99.1 Shore Bancshares 18 E. Dover Street Easton , Maryland 21601 Phone 410-763-7800 PRESS RELEASE Shore Bancshares Reports First Quarter 2021 Financial Results Easton , Maryland ( 04/29/2021 ) - Shore Bancshares , Inc. ( NASDAQ - SHBI ) ( the " Company " ) reported net income of $ 3.998 million or $ 0.34 per diluted common share for the first quarter of 2021 , compared to net income of $ 3.886 million or $ 0.32 per diluted common share for the fourth quarter of 2020 , and net income of $ 3.118 million or $ 0.25 per diluted common share for the first quarter of 2020. On March 3 , 2021 , the Company and Severn Bancorp , Inc. ( " Severn ” ) announced that they had entered into a merger agreement pursuant to which Severn will be merged with and into the Company . The Company anticipates that future quarters will be impacted by the recognition of additional merger - related expenses . When comparing net income for the first quarter of 2021 to the fourth quarter of 2020 , net income increased $ 112 thousand , primarily due to decreases in the provision for credit losses of $ 625 thousand and interest expenses of $ 186 thousand , partially offset by decreases in noninterest income of $ 490 thousand and total interest income of $ 151 thousand . Total noninterest expenses remained in line with the fourth quarter with a decrease of $ 57 thousand . When comparing net income for the first quarter of 2021 to the first quarter of 2020 , net income increased $ 880 thousand due to increases in total interest income of $ 658 thousand , noninterest income of $ 205 thousand and a decrease in interest expense of $ 624 thousand . These improvements were partially offset by an increase in noninterest expenses of $ 150 thousand and a slightly higher provision for credit losses of $ 75 thousand . " We are pleased with our positive financial results for the quarter and the improving credit profile . " said Lloyd L. " Scott ” Beatty , Jr. , President and Chief Executive Officer . “ Our markets are experiencing very positive indications of an improving economy and healthy loan demand . We continued to extend Payroll Protection Program lending to assist small businesses who qualify and continue to see a downward trend in loan deferrals related to the pandemic . Our recently announced new branch location in Ocean City , which is planned to open in 2022 , is an excellent opportunity to capitalize on the tremendous growth potential in that market . As our plan for strategic growth in contiguous markets continues and we work on integration with our partners at Severn Bank , we remain focused on core earnings and enhanced returns for our shareholders . " Ongoing response to COVID - 19 Employees Many of our non - branch personnel have returned to our offices and continue to practice social distancing as the Company has implemented enhanced cleaning and disinfecting procedures across all locations . Most of our Company meetings have transitioned to telephonic or video conferencing . We suspended all unnecessary business - related travel , public events , and meetings with outside parties to promote the safety and well - being of our employees . We have encouraged our employees to sign - up and receive the COVID vaccine in accordance with state and local guidelines . Banking Locations All our branch locations remain open , with normal hours of operation . We have re - opened our branch lobbies to the public with limits on the number of people allowed in the branch at any time . The drive - thru locations have expanded their capabilities to accommodate an array of transactions for our customers . We notified our customers of our changes in operations as well as promoted the use of online and mobile banking .