Form 4: Shore Bancshares Executive Receives Stock Units

Charles E. Ruch, Jr., EVP and Chief Credit Officer of Shore Bancshares, Inc., was granted restricted stock units representing a contingent right to receive common stock.

Summary

• On February 27, 2025, Charles E. Ruch, Jr., EVP and Chief Credit Officer of Shore Bancshares Inc., was granted 4,064 restricted stock units (RSUs).
• Each RSU represents a contingent right to receive one share of SHBI common stock.
• The RSUs vest in three annual installments beginning on February 27, 2026.
• Specifically, 1,082 units vest on July 1, 2025; 1,104 units on March 7, 2025; 1,104 units on March 7, 2026; 1,104 units on March 7, 2027, 1,354 units on February 27, 2026, 1,355 units on February 27, 2027 and 1,355 units on February 27, 2028.
• Following the reported transaction, Ruch directly owns 4,113 shares of Shore Bancshares Inc. common stock and 8,458 restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of RSUs is a standard practice and indicates confidence in the executive and the company's future performance.

Positives

• The granting of restricted stock units to a key executive aligns their interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Future Outlook

The executive will receive shares of SHBI common stock as the restricted stock units vest over the next three years.

Industry Context

Granting stock-based compensation is a common practice in the financial industry to incentivize executives and align their interests with shareholders.

Stakeholder Impact

• Shareholders may view the granting of RSUs positively as it aligns executive interests with company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates