Shore Bancshares, Inc. Completes $60 Million Offering of Subordinated Notes

Shore Bancshares, Inc. Completes $60 Million Subordinated Notes Offering

On November 13, 2025, Shore Bancshares, Inc., the parent company of Shore United Bank, announced the successful completion of a private placement involving $60 million in subordinated notes. This strategic move aims to bolster the Company’s capital structure and provide additional financial resources for future growth. The notes, which carry a fixed interest rate of 6.25% for the first five years, are designed to appeal to a wide range of qualified institutional buyers and accredited investors.

The subordinated notes will transition to a floating rate after five years, linking the interest to the three-month Secured Overnight Financing Rate (SOFR) plus a margin of 288 basis points. This structure not only helps manage interest rate risk but also ensures that the notes qualify as Tier 2 capital, which is significant under regulatory requirements.

Strategic Use of Proceeds

The funds raised from this offering will be utilized for general corporate purposes and the repayment of existing debt, thereby enhancing the Company’s financial health. Management is optimistic that this move will position Shore Bancshares favorably for continued growth and support the ongoing expansion plans of Shore United Bank.

In connection with this offering, Shore Bancshares has entered into a registration rights agreement with purchasers, allowing them to exchange the notes for those registered under the Securities Act of 1933. This is a crucial step in enhancing the liquidity and marketability of the notes, which further reinforces the Company's commitment to its investors.

Piper Sandler & Co. acted as the lead placement agent, with Hovde Group, LLC serving as the co-placement agent. Legal expertise was provided by Holland & Knight LLP for the Company and Kilpatrick Townsend & Stockton LLP for the placement agents, ensuring that the entire process adhered to regulatory compliance and best practices.

About Shore Bancshares

Shore Bancshares is headquartered in Easton, Maryland, and serves as the holding company for Shore United Bank, N.A. The Company also specializes in trust and wealth management services via its division, Wye Financial Partners. With a strong foundation and a clear vision for the future, Shore Bancshares remains committed to delivering value to its shareholders while expanding its service capabilities.

Future Outlook

Management's forward-looking statements suggest a cautiously optimistic view regarding future developments and their impacts on the Company. The risks and uncertainties associated with the market mean that while they project positive outcomes, actual results may differ from their expectations. This offering represents not just a financial maneuver but a strategic step in Shore Bancshares' growth journey.

In conclusion, Shore Bancshares, Inc.'s recent $60 million subordinated notes offering marks a significant milestone in its capital-raising endeavors. As the Company aims to strengthen its market position and expand its services, this funding is poised to play a vital role in propelling its strategic initiatives forward. With its focus on both regulatory compliance and transparency, Shore Bancshares continues to demonstrate a commitment to its financial partners and stakeholders moving ahead.

For more detailed information on the notes and the offering, interested parties are encouraged to visit Shore Bancshares’ official website.