Shore Bancshares, Inc. Announces Increased Dividend and $30 Million Stock Repurchase Program

Rhea-AI Summary

Shore Bancshares (Nasdaq: SHBI) announced a higher quarterly dividend and a new stock repurchase program. The dividend was raised to $0.14 per share, up $0.02 or 16.7% from the prior quarter, payable June 17, 2026 to shareholders of record on June 3, 2026.

The Board also authorized repurchases of up to $30 million of common stock over the next 12 months, with timing and volume at management's discretion and subject to market, economic and legal factors.

Positive

• Quarterly dividend increased to $0.14, up $0.02 or 16.7% QoQ
• Dividend payable June 17, 2026 to holders of record on June 3, 2026
• Board authorized up to $30 million common stock repurchases over 12 months
• Flexible repurchase methods, including open market, block trades and negotiated deals

Negative

• None.

News Market Reaction – SHBI

+1.35%

+1.35% Session close to close

In the May 22 session, SHBI gained 1.35%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement combines a quarterly dividend increase to $0.14 per share with authorization to re...

Analysis

This announcement combines a quarterly dividend increase to $0.14 per share with authorization to repurchase up to $30M of common stock over the next 12 months. It builds on recent quarters of record earnings and solid capital ratios detailed in prior filings. Investors may focus on how quickly the company utilizes the repurchase capacity, future dividend decisions, and subsequent earnings releases to gauge the sustainability of these shareholder-return actions.

Key Figures

Quarterly dividend: $0.14 per share Dividend increase: $0.02 per share Dividend increase rate: 16.7% +4 more

7 metrics

Quarterly dividend $0.14 per share Declared by Board; current quarterly dividend

Dividend increase $0.02 per share Increase versus prior quarter dividend

Dividend increase rate 16.7% Percent increase from prior quarter dividend

Dividend payment date June 17, 2026 Payable date for the $0.14 quarterly dividend

Dividend record date June 3, 2026 Shareholders of record eligible for dividend

Repurchase authorization $30 million Maximum common stock repurchases over next 12 months

Repurchase duration 12 months Period over which up to $30M may be repurchased

Historical Context

4 past events · Latest: Apr 23 (Positive)

Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 23	Q1 2026 earnings	Positive	-0.8%	Record Q1 2026 net income of $17.1M with higher net interest income.
Feb 19	Debt exchange offer	Neutral	-0.6%	Extension of exchange offer for 6.25% subordinated notes due 2035.
Feb 18	Dividend declaration	Positive	-0.6%	Quarterly common dividend of $0.12 per share announced.
Jan 28	Q4 and FY 2025 results	Positive	+0.4%	Q4 and full-year 2025 net income growth with improved efficiency ratio.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive fundamental updates (earnings, dividends) have sometimes seen muted or negative next-day moves, suggesting the stock’s price reaction has not always tracked upbeat headlines.

Recent Company History

Over the past few months, Shore Bancshares has highlighted improving performance and capital strength. Q4 2025 and full-year 2025 results showed net income of $15.9M for Q4 and $59.5M for 2025, with ROAA at 1.02%. Q1 2026 delivered record net income of $17.1M and book value per share of $18.02. The company also maintained regular dividends, including a prior $0.12 quarterly payout. Today’s higher dividend and new $30M repurchase authorization build directly on this theme of capital return and earnings momentum.

Key Terms

stock repurchase program, open market transactions, block trades, trading plan, +2 more

6 terms

stock repurchase program financial

"authorized the repurchase of up to $30 million of the company's outstanding common stock"

A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.

open market transactions financial

"may be repurchased from time to time through a combination of open market transactions at prevailing market prices"

Open market transactions are the buying and selling of a company’s shares or other securities conducted on public exchanges or through the wider market rather than through private deals or negotiated placements. They matter to investors because these trades change supply and demand in real time—like shoppers affecting a store’s inventory—and so can move prices, signal management or investor sentiment, affect liquidity, and alter ownership stakes that influence future returns and risk.

block trades financial

"in privately negotiated transactions, through block trades and pursuant to any trading plan"

A block trade is a single, large buy or sell of shares or bonds arranged privately between big traders rather than piecemeal on the public market. Think of it like buying a whole shipment at once instead of many small shopping trips; it lets large holders move big positions with less immediate disruption but can signal strong buying or selling pressure and cause price swings once the trade is known, so investors watch block trades for clues about market sentiment and liquidity.

trading plan financial

"through block trades and pursuant to any trading plan that may be adopted"

A trading plan is a written set of rules an investor follows about what to buy or sell, when to enter and exit positions, and how much risk to accept—like a travel itinerary that maps the route, stops, and budget before a trip. It matters because it helps remove emotional decisions during market swings, enforces discipline, and makes performance easier to review and improve, reducing the chance of costly impulsive moves.

Rules 10b5-1 regulatory

"plan that may be adopted in accordance with Rules 10b5-1 and/or 10b-18 of the Securities"

A Rule 10b5-1 plan is a written, pre-set schedule that allows company insiders to buy or sell stock at predetermined times or under specific conditions, even if they later learn material nonpublic information. Think of it like an automatic thermostat that follows preset settings so trades aren’t made on impulse; it matters to investors because it reduces the chance of insider trading accusations and creates predictable, transparent stock activity.

10b-18 regulatory

"in accordance with Rules 10b5-1 and/or 10b-18 of the Securities and Exchange Commission"

SEC Rule 10b-18 is a regulatory safe harbor that sets precise limits on how a company may repurchase its own shares on the open market—specifying acceptable timing, maximum daily volume, price conditions and the trading venues—so those buybacks are less likely to be treated as illegal market manipulation. For investors, it acts like traffic rules for buybacks: when a company follows them, repurchases are more predictable and reduce legal and reputational risk, making the likely impact on share supply and price easier to assess.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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EASTON, Md., May 21, 2026 /PRNewswire/ -- Shore Bancshares, Inc. (Nasdaq – SHBI), the parent company of Shore United Bank, N.A. announced today that its Board of Directors has declared a quarterly dividend of $0.14 per share, which represents a $0.02, or 16.7%, increase from the dividend paid in the prior quarter. The common stock dividend is payable on June 17, 2026, to holders of record at the close of business on June 3, 2026.

The company also announced that its Board of Directors has authorized the repurchase of up to $30 million of the company's outstanding common stock over the next 12 months.

The shares may be repurchased from time to time through a combination of open market transactions at prevailing market prices, in privately negotiated transactions, through block trades and pursuant to any trading plan that may be adopted in accordance with Rules 10b5-1 and/or 10b-18 of the Securities and Exchange Commission. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the company's stock, general market and economic conditions, applicable legal requirements, and other factors. The repurchase program may be modified, amended or terminated by the Board of Directors at any time. The company is not obligated to purchase any shares under the repurchase program.

"This dividend increase and the authorization of a $30 million repurchase program reflect the strength of our capital position and the earnings power we have built over the last few years since our merger with The Community Financial Corporation.  This move also reflects our Board's continued commitment to delivering value to shareholders," said James M. Burke, President and Chief Executive Officer of Shore Bancshares, Inc. "We will remain disciplined in executing the repurchase program while continuing to invest in our franchise and support the communities we serve."

Shore Bancshares Information

Shore Bancshares is a financial holding company headquartered in Easton, Maryland and is the parent company of Shore United Bank, N.A. Shore Bancshares engages in trust and wealth management services through Wye Financial Partners, a division of Shore United Bank, N.A. Additional information is available at www.shorebancshares.com.

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Shore Bancshares, Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause Shore Bancshares, Inc.'s actual results to differ materially from those described in the forward-looking statements can be found in Shore Bancshares, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and Shore Bancshares, Inc. undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

View original content to download multimedia:https://www.prnewswire.com/news-releases/shore-bancshares-inc-announces-increased-dividend-and-30-million-stock-repurchase-program-302773669.html

SOURCE Shore Bancshares, Inc.

FAQ

What is Shore Bancshares (NASDAQ: SHBI) new quarterly dividend amount in 2026?

Shore Bancshares declared a new quarterly dividend of $0.14 per share. According to Shore Bancshares, this is a $0.02 increase, or 16.7%, over the prior quarter’s dividend, reflecting the Board’s updated capital return decision.

When are the record date and payment date for Shore Bancshares (SHBI) June 2026 dividend?

The June 2026 dividend will be paid on June 17, 2026. According to Shore Bancshares, shareholders must be on record by the close of business on June 3, 2026 to receive the $0.14 per share cash dividend.

How large is Shore Bancshares (SHBI) stock repurchase program announced in May 2026?

Shore Bancshares’ Board authorized up to $30 million in common stock repurchases. According to Shore Bancshares, the authorization covers a 12‑month period and allows buybacks via open market purchases, block trades, privately negotiated deals and potential Rule 10b5‑1 trading plans.

Over what period will Shore Bancshares (SHBI) conduct its $30 million share repurchase?

The share repurchase authorization extends over the next 12 months from approval. According to Shore Bancshares, actual timing and volume will depend on stock price, market and economic conditions, legal requirements and other factors, at management’s discretion.

Is Shore Bancshares (SHBI) required to buy back the full $30 million of stock?

Shore Bancshares is not obligated to repurchase any specific number of shares. According to Shore Bancshares, the Board may modify, amend or terminate the program at any time, and management will determine repurchase levels based on prevailing conditions.

Why did Shore Bancshares (SHBI) increase its dividend and approve a buyback in 2026?

Management links the higher dividend and buyback to capital strength and earnings capacity. According to Shore Bancshares, these actions also reflect the Board’s ongoing commitment to shareholder value following its merger with The Community Financial Corporation in recent years.