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Shore Bancshares 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 ( 07/29/2021 ) - Shore Bancshares , Inc. ( NASDAQ - SHBI ) ( the " Company " ) reported net income of $ 4.031 million or $ 0.34 per diluted common share for the second quarter of 2021 , compared to net income of $ 3.998 million or $ 0.34 per diluted common share for the first quarter of 2021 , and net income of $ 5.335 million or $ 0.43 per diluted common share for the second quarter of 2020. Net income for the first half of 2021 was $ 8.028 million or $ 0.68 per diluted common share , compared to net income for the first half of 2020 of $ 8.453 million or $ 0.68 per diluted common share . 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 . For both the second quarter and the first six months of 2021 , the Company recorded $ 377 thousand in merger - related expenses and will continue to recognize additional merger - related expenses in future quarters as they are incurred . When comparing net income for the second quarter of 2021 to the first quarter of 2021 , net income increased $ 33 thousand , primarily due to increases in net interest income of $ 303 thousand and noninterest income of $ 346 thousand , which was almost entirely offset by an increase in provision for credit losses of $ 225 thousand and noninterest expense of $ 377 thousand . When comparing net income for the second quarter of 2021 to the second quarter of 2020 , net income decreased $ 1.3 million , primarily due to the return to a more normalized operating noninterest expense run - rate given that a large production of PPP loan originations occurred in the second quarter of 2020 allowing for the deferral of costs , specifically salaries and wages tied to generating these loans . Despite lower deferred loan origination costs in the second quarter of 2021 when compared to the second quarter of 2020 , the Company experienced an increase in net interest income of $ 1.1 million and a reduced provision for credit losses of $ 350 thousand . In addition , merger - related expenses previously mentioned of $ 377 thousand , reduced profitability in the second quarter of 2021 when compared to the linked and previous quarters . " We are pleased to announce our second quarter earnings and a strong demand for our banking services . ” said Lloyd L. " Scott " Beatty , Jr. , President and Chief Executive Officer . " All of our markets have rebounded nicely from the pandemic . We have especially seen very robust activity in our vacation travel markets . This has been a very welcoming turnaround and has led to some significant loan and deposit growth . We processed a total of 2,454 loans for a cumulative balance of $ 196.0 million through both rounds of the PPP program . We have been working diligently with our PPP borrowers this quarter on forgiveness and have reduced our outstanding balance of PPP loans to $ 86.8 million at June 30 , 2021. Despite the decrease in PPP loans , we have been able to grow our loan portfolio through traditional lending channels and our pipeline remains very strong . We have a very positive outlook on the remainder of 2021 and 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 . Due to vaccinations and very low positivity rates for COVID within our markets , we have been able to resume in- person meetings at limited capacity . We continue to have some meetings through telephonic or video conferencing . We have resumed most of our business - related travel , public events , and meetings with outside parties . We have encouraged our employees to sign - up and receive the COVID vaccine in accordance with state and local guidelines .