Form 4: SHBI EVP Tay Reports Share Transactions

Shore Bancshares EVP Talal Tay reported a series of common stock transactions, including tax-related disposals and acquisitions through company plans, effective December 29, 2025.

Summary

• Talal Tay, Executive Vice President and Chief Risk Officer of Shore Bancshares Inc. (SHBI), reported changes in his beneficial ownership of common stock.
• 1,039 shares of common stock were surrendered to satisfy tax withholding obligations in connection with RSU vesting, with a transaction price of $0.
• Beneficial ownership increased due to an exempt acquisition of common stock under the Shore Bancshares Dividend Reinvestment Plan.
• 1,969 shares were acquired under the Shore Bancshares, Inc. Employee Stock Purchase Plan as of December 29, 2025.
• An additional 1,004 shares are held indirectly in an IRA, reflecting a transfer of shares from the issuer's ESOP following its termination.
• Following these reported transactions, Tay directly beneficially owns 14,232 shares of common stock and indirectly owns 1,004 shares through an IRA.

Sentiment

Score: 6

Explanation: The filing reflects routine executive stock transactions, including both disposals for tax and acquisitions through company plans. The net effect on beneficial ownership is positive due to plan acquisitions, indicating continued executive alignment with shareholder interests, despite the tax-related disposal.

Positives

• Increased beneficial ownership through an exempt acquisition under the Shore Bancshares Dividend Reinvestment Plan.
• Acquisition of 1,969 shares via the Employee Stock Purchase Plan, indicating continued executive investment in the company.

Negatives

• Disposal of 1,039 shares to cover tax withholding obligations related to RSU vesting, which reduces direct share ownership.

Future Outlook

NA

Industry Context

This Form 4 filing details routine insider transactions for an executive at a regional bank. Such filings are common and provide transparency into executive stock ownership and compensation activities within the financial services sector, reflecting standard practices for managing equity-based compensation.

Corporate Governance

Stakeholder Impact

• **Shareholders**: Provides transparency into executive stock ownership and compensation, showing continued executive investment through company plans.
• **Employees**: The Employee Stock Purchase Plan (ESPP) and Dividend Reinvestment Plan (DRP) mentioned indicate mechanisms for employee and executive participation in company ownership.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions for an executive, including tax-related disposals and acquisitions through company plans. While the executive's beneficial ownership increased through plan participation, these are standard activities and do not provide new fundamental information to warrant a change in investment recommendation. The filing primarily serves as a transparency mechanism for executive compensation and ownership.

Keywords

Shore Bancshares, SHBI, Talal Tay, Form 4, Insider Trading, Stock Transactions, Executive Compensation, RSU Vesting, Dividend Reinvestment Plan, Employee Stock Purchase Plan, Beneficial Ownership