Form 4: Shore Bancshares Executive Converts Restricted Stock Units, Increases Direct Ownership

Christy Lombardi, EVP and Chief Human Resources Officer of Shore Bancshares Inc., has acquired 11,295 shares of common stock through the conversion of restricted stock units, increasing her direct beneficial ownership to 58,698 shares.

Summary

• Christy Lombardi, EVP, Chief Human Resources Officer of Shore Bancshares Inc. (SHBI), acquired 11,295 shares of common stock on July 1, 2025.
• This acquisition resulted from the conversion of restricted stock units (RSUs) on a one-for-one basis.
• Following this transaction, Lombardi's direct beneficial ownership of SHBI common stock increased to 58,698 shares.
• An additional 6,555 shares are beneficially owned indirectly through an ESOP.
• The direct beneficial ownership amount also reflects an increase from an exempt acquisition of common stock under the Shore Bancshares Dividend Reinvestment Plan pursuant to Rule 16a-11.
• After the conversion, Lombardi retains 8,306 restricted stock units.
• These remaining restricted stock units are scheduled to vest on various dates: 340 units on March 6, 2026; 1,020 units on March 6, 2026; 1,325 units on March 7, 2026; 1,325 units on March 7, 2027; 1,432 units on February 27, 2026; 1,432 units on February 27, 2027; and 1,432 units on February 27, 2028.

Sentiment

Score: 7

Explanation: The sentiment is positive as an executive is increasing their direct ownership through the conversion of vested equity awards and participation in a dividend reinvestment plan, signaling confidence in the company.

Positives

• The conversion of restricted stock units into common stock indicates a successful vesting event for the executive.
• An increase in direct beneficial ownership by a key executive can signal confidence in the company's future prospects.
• Participation in the Dividend Reinvestment Plan further demonstrates long-term commitment and investment in the company.

Future Outlook

The reporting person has remaining restricted stock units totaling 8,306 shares, which are scheduled to vest on various dates through February 27, 2028, indicating future potential increases in direct beneficial ownership.

Industry Context

This Form 4 filing reflects a routine insider transaction common in the financial services industry, where executive compensation often includes equity awards like restricted stock units that vest over time. Such filings provide transparency into executive holdings and alignment with shareholder interests.

Related Party Transactions

• Indirect beneficial ownership of 6,555 shares of common stock through an ESOP (Employee Stock Ownership Plan).

Stakeholder Impact

• Shareholders: The increase in direct ownership by a key executive may be viewed positively, signaling management's alignment with shareholder interests and confidence in the company's future.
• Employees: The ESOP ownership indicates a broader employee benefit program.

Next Steps

• Future vesting of 8,306 restricted stock units on various dates through February 27, 2028, which will convert into common stock.

Key Dates

Keywords

Shore Bancshares, SHBI, Form 4, Insider Transaction, Restricted Stock Units, RSU Conversion, Beneficial Ownership, Executive Compensation, Dividend Reinvestment Plan