Page 1

Shore Bancshares Exhibit 99.1 18 E. Dover Street Easton , Maryland 21601 Phone 410-763-7800 PRESS RELEASE Shore Bancshares Reports Third Quarter and Nine - Month Financial Results Easton , Maryland ( 10/28/2021 ) - Shore Bancshares , Inc. ( NASDAQ - SHBI ) ( the “ Company ” ) reported net income of $ 4.617 million or $ 0.39 per diluted common share for the third quarter of 2021 , compared to net income of $ 4.031 million or $ 0.34 per diluted common share for the second quarter of 2021 , and net income of $ 3.391 million or $ 0.27 per diluted common share for the third quarter of 2020. Net income for the first nine months of 2021 was $ 12.645 million or $ 1.08 per diluted common share , compared to net income for the first nine months of 2020 of $ 11.844 million or $ 0.95 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 ( the " Merger " ) . For the third quarter and the first nine months of 2021 , the Company recorded $ 538 thousand and $ 915 thousand , respectively , in merger - related expenses and will continue to recognize additional merger - related expenses in future quarters as they are incurred . As previously reported , the Company has obtained all required regulatory approvals for the consummation of the Merger , the Company and Severn have received all required shareholder approvals and the Merger is presently expected to be consummated effective October 31 , 2021 . When comparing net income for the third quarter of 2021 to the second quarter of 2021 , net income increased $ 586 thousand , due to an increase in net interest income of $ 1.5 million and lower provision for credit losses of $ 360 thousand , which were partially offset by an increase in noninterest expense of $ 1.1 million . When comparing net income for the third quarter of 2021 to the third quarter of 2020 , net income increased $ 1.2 million , primarily due to increases in net interest income of $ 2.3 million and noninterest income of $ 328 thousand , coupled with a decrease in the provision for credit losses of $ 1.2 million . These improvements to net income , were partially offset by an increase in almost all noninterest expense line items , adding $ 2.1 million in overall expenses . " We are pleased to announce our third quarter earnings and our continuing growth trend in 2021. ” said Lloyd L. “ Scott ” Beatty , Jr. , President and Chief Executive Officer . " Excluding PPP lending , loan growth is up 9.2 % for the first nine months of 2021 , and loan demand is showing no signs of weakening . We continue to see growth among all lines of business , as well as deposits which continue to create excess liquidity and downward pressure on our net interest margin . ” " We are also pleased to have received the approval of our shareholders for our acquisition of Severn and the issuance of shares of our common stock to Severn's shareholders in connection with our acquisition . Our teams have been working diligently on a successful transition with limited disruptions to operations . This acquisition is just one step to enhancing our franchise value , expand our markets and business lines and provide 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 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 . In addition , we have encouraged our employees to sign - up and receive the COVID vaccine in accordance with state and local guidelines .