8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


          Date of Report (Date of earliest event reported): May 1, 2002


                             SHORE BANCSHARES, INC.
             (Exact name of registrant as specified in its charter)


        Maryland                           0-22345             52-1974638
        --------                          ---------            ----------
(State or other jurisdiction of   (Commission file number)  (IRS Employer
incorporation or organization)                               Identification No.)


                  18 East Dover Street, Easton, Maryland 21601
                  --------------------------------------------
               (Address of principal executive offices) (Zip Code)


                                 (410) 822-1400
                                 --------------
              (Registrant's telephone number, including area code)


                                       N/A
                                      -----
          (Former Name or Former Address, if Changed Since Last Report)





ITEM 5.  Other Event

SHORE  BANCSHARES,  INC.  ACQUIRES  ASSETS OF THE  AVON-DIXON  AGENCY,  INC. AND
SUBSIDIARIES

May 1, 2002

Shore Bancshares,  Inc., a Maryland  financial holding company,  announced today
that it has  completed  its  acquisition  of  certain  assets of The  Avon-Dixon
Agency, Inc. and its subsidiaries, all located in Easton, Maryland.

ITEM 7.  Financial Statements and Exhibits.

(c) Exhibit 99.1  --  Press Release dated May 1, 2002.

                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                            SHORE BANCSHARES, INC. (REGISTRANT)

Dated:   May 1, 2002                   By: /s/ W. Moorhead Vermilye
                                           -------------------------------------
                                           W. Moorhead Vermilye
                                           President and CEO





                                  EXHIBIT INDEX

Exhibit
Number           Description
- ------           -----------

Exhibit 99.1     Press Release dated May 1, 2002.

EX-99.1

Exhibit 99.1

Shore Bancshares, Inc. Acquires Assets of The Avon-Dixon Agency, Inc.
EASTON, Md., May 1, 2002

Shore Bancshares,  Inc. (the "Company")  (Nasdaq:  SHBI) announced today that it
has completed its purchase of certain assets of the The Avon-Dixon Agency,  Inc.
and its subsidiaries, all located in Easton, Maryland.

"Shore  Bancshares,  Inc. is pleased to announce  the addition of The Avon Dixon
Agency,  LLC,  Elliott Wilson  Insurance,  LLC and Mubell Finance,  LLC. Through
these  subsidiaries  the Company will be able to offer a full range of insurance
products  and  services.  We believe  our mutual  clientele  should soon see the
benefits of this  transaction.  One of the primary  considerations  driving this
acquisition was the ability to better serve our customers.  Accordingly, we will
be communicating  with our customers as to the additional  services available to
them.  Banking  products  and  services,  Insurance  products,  Long  Term  Care
Planning, Retirement and Financial Planning, as well as educational seminars for
individuals and small  businesses top the list of offerings,"  noted W. Moorhead
Vermilye, President and CEO of Shore Bancshares, Inc.

This transaction will be effective May 1, 2002.

Statements  made in this press release may include  forward  looking  statements
under the federal securities laws. Statements that are not historical in nature,
including the words "anticipate,"  "estimate,"  "should,"  "expect,"  "believe,"
"intend," "prospects," and similar expressions, are intended to identify forward
looking  statements.  While these  statements  reflect the Company's  good faith
beliefs,  they  are not  guarantees  of  future  performance,  involve  risk and
uncertainties that could cause actual results to differ materially.  The Company
disclaims  any  obligation  to  publicly  update or revise any  forward  looking
statement,  whether as a result of new information,  future events or otherwise.
For a discussion of risks and  uncertainties  that could cause actual results to
differ  materially from those contained in the forward looking  statements,  see
the Risk Factors  contained in the Company's  Annual Report on Form 10-K for the
last fiscal year.

SOURCE:  Shore Bancshares, Inc.