Item 8.01. Other Information.

On May 3, 2012, the Board of Directors of Shore Bancshares, Inc. (the "Company") voted to suspend quarterly cash dividends on the Company's common stock until further notice. In making this decision, the Board considered the guidance set forth in Supervisory Letter 09-4 adopted by the Board of Governors of the Federal Reserve System, which generally provides that a bank holding company should eliminate, defer or significantly reduce dividends if, among other things, the company's net income available to stockholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund future dividends. In light of the Company's reported losses for the first quarter of 2012 and the year ended December 31, 2011, the Board believed that it would be prudent to eliminate the payment of quarterly dividends, which were previously $.01 per share.