Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On May 9, 2012, William W. Duncan, Jr., who serves as the President and Chief Executive Officer of The Talbot Bank of Easton, Maryland ("Talbot Bank"), a subsidiary of Shore Bancshares, Inc., notified Talbot Bank that he intends to retire from these positions effective December 31, 2012.