Item 8.01 Other Events.

On March 25, 2009, Shore Bancshares, Inc. (the "Company") submitted a notice with the United States Department of the Treasury ( "Treasury") requesting permission to repay 100% of the assistance received from Treasury through the Troubled Asset Relief Program Capital Purchase Program. The repayment would involve the redemption of the 25,000 shares of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the "Preferred Stock") issued to the Treasury on January 9, 2009. In addition, the Company's application requested that it be allowed to repurchase the common stock purchase warrant (covering 172,970 shares of common stock) that was issued to Treasury along with the Preferred Stock. Treasury must consult with the Company's primary federal regulator to determine whether to permit the Company to consummate the repayment. Accordingly, there can be no guaranty that the Company will repay any or all of the CPP assistance.

Additional information regarding the potential repayment is contained in the Company's press release dated March 26, 2009, which is attached hereto as Exhibit 99.1 and incorporated herein by reference.