REQUIRED SEC CAPTION FOR FILED COPY OF PRESS RELEASE

                       Filed by Talbot Bancshares, Inc.
      Pursuant to Rule 425 under the Securities Act of 1933, as amended,
                And deemed filed pursuant to Rule 14a-12 of the
                        Securities Exchange Act of 1934

                   Subject Company:  Talbot Bancshares, Inc.
                         Commission File No.:  0-22929

ON JULY 25, 2000, TALBOT BANCSHARES, INC., A MARYLAND CORPORATION, ISSUED THE
FOLLOWING PRESS RELEASE:


FOR MORE INFORMATION, CONTACT:

W. Moorhead Vermilye. - President, Talbot Bancshares, Inc.
(410) 822-1400

Daniel Cannon - President, Shore Bancshares, Inc.
(410) 758-1600

                    TALBOT BANCSHARES AND SHORE BANCSHARES
                     ANNOUNCE DEFINITIVE MERGER AGREEMENT


Easton, Maryland, July 25, 2000 - Talbot Bancshares, Inc. (OTC BB:TABS.OB),
headquartered in Easton, Maryland, and Shore Bancshares, Inc. (OTC BB:SHBI.OB),
headquartered in Centreville, Maryland, announced jointly today that they have
signed a definitive merger agreement.

     The definitive merger agreement provides for the merger of Talbot
Bancshares into Shore Bancshares.  Shore Bancshares will exchange 2.85 shares of
its common stock for each outstanding share of Talbot Bancshares common stock.
Based upon the closing price of Shore Bancshares shares on July 18, 2000 of
$14.62, the transaction has a value of approximately 3,462,459 Shore Bancshares
common shares worth $50.6 million.  The merger is intended to be


a tax-free exchange for Talbot Bancshares shareholders and will be accounted for
as a pooling of interests.

     The merger is subject to approval by shareholders of Talbot Bancshares and
Shore Bancshares and by regulatory agencies.  The Talbot Bank of Easton,
Maryland and The Centreville National Bank of Maryland will be separate
subsidiaries of Shore Bancshares after the merger and all branch locations will
remain open.  No Talbot Bank or Centreville Bank employees will be terminated as
a result of the merger.

     "We are very pleased to be joining forces with Shore Bancshares, an
institution with deep roots in the Eastern Shore region of Maryland," commented
W. Moorhead Vermilye, President of Talbot Bancshares.  "This merger creates a
premier financial institution serving the Eastern Shore community and provides
excellent opportunities for continued rapid growth."

     Daniel T. Cannon, President of Shore Bancshares, noted, "The combination of
Shore Bancshares and Talbot Bancshares will allow us to continue to respond to
the changing business environment through our investment in technology and
products and services developed to meet the needs of our customers, while
remaining true to our principle of excellent customer service."

     Following the merger, Mr. Vermilye will serve as President and Chief
Executive Officer and Mr. Cannon will serve as Executive Vice President and
Chief Operating Officer of Shore Bancshares.  Mr. Vermilye will continue to
serve as the President and Chief Executive Officer of

                                      -2-


the Talbot Bank of Easton, Maryland, and Mr. Cannon will continue to serve as
President and Chief Executive Officer of The Centreville National Bank of
Maryland.

     Shore Bancshares and Talbot Bancshares anticipate cost savings resulting
from combined operations and increased revenue from offering Talbot Bancshares's
broader product line in markets served by Shore Bancshares.

     The following chart compares Shore Bancshares and Talbot Bancshares at June
30, 2000.


 (Dollars in thousands)  Talbot Bancshares  Shore Bancshares
 ----------------------  -----------------  ----------------
       Unaudited

Total Assets                      $324,601          $201,584
Loans (net of reserves)            229,056           131,412
Deposits                           264,400           166,492
Equity                              37,520            23,479

     This news release contains, among other things, certain forward-looking
statements regarding the combined company following the merger. Such forward-
looking statements involve certain risks and uncertainties, including a variety
of factors that may cause the combined company's actual results to differ
materially from the anticipated results or other expectations expressed in such
forward-looking statements, such as economic conditions, competition in the
geographic and business areas in which Shore Bancshares and Talbot Bancshares
and each of their affiliates operate, inflation, fluctuations in interest rates,
legislation, and governmental regulation.

                                      -3-


     Talbot Bancshares, headquartered in Easton, Maryland, is a one-bank holding
company and parent company of The Talbot Bank of Easton, Maryland, a commercial
bank providing general commercial banking services in Talbot and Dorchester
Counties in Maryland. The bank provides a full range of financial services to
individuals, business and other organizations at five branches and nine ATM's.
Talbot Bancshares' Common Stock is quoted on OTC Bulletin Board under the symbol
"TABS".

     Shore Bancshares, headquartered in Centreville, Maryland, is a one-bank
holding company and parent company of The Centreville National Bank of Maryland,
a national banking association. The Centreville National Bank of Maryland
operates five full service branch offices serving Queen Anne's, Caroline and
Kent Counties in Maryland. The Centreville National Bank of Maryland is engaged
in both the commercial and consumer banking business. Shore Bancshares' Common
Stock is quoted on the OTC Bulletin Board under the symbol "SHBI".

                                      -4-