SHORE BANCSHARES INC

Cautionary Note Regarding Forward-looking Statements

This Annual Report on Form 10-K contains statements relating to future events or our future results that are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We also may make forward-looking statements in other documents filed with or furnished to the Securities and Exchange Commission, and our senior management may make forward-looking statements orally to investors, analysts, representatives of the media, and others. Forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend,” “potential,” “target,” “plan,” “goal,” or words of similar meaning, or future or conditional verbs such as “could,” “would,” or “may.” Forward-looking statements include statements of our goals, intentions, or expectations; statements regarding our business plans, prospects, growth, or operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. We caution that the forward-looking statements are based largely on our expectations and information available at the time the statements are made and are subject to known and unknown risks and uncertainties that are subject to change based on factors, which in many instances are beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. You should bear this in mind when reading this report and not place undue reliance on these forward-looking statements.

The factors that could cause actual results to differ materially from those expressed in such forward-looking statements include, but are not limited to, the risks identified in Item 1A of this report and the following:

•Local, regional and global business, economic and political conditions and geopolitical events;

•Changes in laws, rules and regulatory requirements, including capital and liquidity requirements;

•Changes in consumer and business confidence, investor sentiment, and consumer spending and savings behavior;

•Changes in the level of inflation;

•Changes in monetary and fiscal policies;

•Changes in trade policies, including the imposition of tariffs and retaliatory responses;

•Changes in the demand for loans, deposits, and other financial services that we provide;

•The possibility that future credit losses may be higher than currently expected;

•Changes in FDIC assessments;

•Changes in the interest rate environment;

•Changes in income tax laws and regulations;

•Our ability to manage effectively our capital and liquidity;

•The ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations;

•Changes in credit ratings assigned to us;

•Competitive pressures among financial services companies;

•Technology changes instituted by us, our counterparties, or competitors;

•The ability to attract, develop, and retain qualified employees;

•Change in federal government enforcement of federal laws affecting the cannabis industry;

•Our ability to maintain the security of our financial, accounting, technology, data processing and other operational systems and facilities;

•Our ability to effectively defend ourselves against cyber-attacks and other attempts by unauthorized parties to access our information or information of our customers or to disrupt our systems;

•Our ability to withstand disruptions that may be caused by any failure of our operational systems or those of third parties;

•Our ability to control expenses;

•The impact of changes in accounting policies, including the introduction of new accounting standards;

•The impact of judicial or regulatory proceedings; and

•The impact of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond our control.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.