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):  December 13, 2010

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)

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

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

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

On December 13, 2010, the Board of Directors of Shore Bancshares, Inc. (the “Company”) announced that Lloyd L. “Scott” Beatty, Jr., age 58, will be promoted to the office of President of the Company effective January 1, 2011.  Mr. Beatty will continue to serve as the Company’s Chief Operating Officer.  W. Moorhead Vermilye, age 70, who currently serves as the President and Chief Executive Officer, will continue to serve as the Chief Executive Officer.  A copy of the Company’s December 13, 2010 press release announcing the promotion is filed herewith as Exhibit 99.1 and incorporated herein by reference.

Mr. Beatty has served as a director of the Company since December 2000 and as a director of its lead subsidiary, The Talbot Bank of Easton, Maryland, since 1992.  Since August 2007, Mr. Beatty has also served as the Executive Vice President and Chief Operating Officer of the Company.  Between July 2006 and August 2007, Mr. Beatty served as Vice President and Chief Operating Officer, and he served as Vice President between October 2004 and July 2006.  Before joining the Company, Mr. Beatty was the Chief Operating Officer of Darby Overseas Investments, LP, a global private equity firm, and the President of Darby Advisors, Inc., a privately held family investment business, from 1998 to 2005.  Mr. Beatty was also a practicing Certified Public Accountant for 25 years and a principal in the accounting firm Beatty, Satchell & Company, headquartered in Easton, Maryland, from 1977 to 1998.

The succession discussed above will not involve any changes to, or new grants or awards under, any compensatory arrangement with Messrs. Beatty or Vermilye.  The compensatory arrangements to which Messrs. Beatty and Vermilye are parties are discussed in the Company’s definitive proxy statement for the 2010 annual meeting that was filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2010 and in the Company’s Current Report on Form 8-K that was filed with the SEC on April 21, 2010.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits:

Exhibit 99.1 – Press release dated December 13, 2010 (filed herewith).

-2-

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.
Date:  December 13, 2010	By:	/s/ W. Moorhead Vermilye
		W. Moorhead Vermilye
		President and CEO

-3-

EXHIBIT INDEX

Exhibit

Number               Description

99.1                      Press release dated December 13, 2010 (filed herewith).

-4-

EX-99.1

Exhibit 99.1

Shore Bancshares, Inc.

18 E. Dover Street

Easton, Maryland 21601

Phone 410-822-1400

PRESS RELEASE

Beatty promoted to President of Shore Bancshares, Inc.

EASTON, Md., Dec. 13, 2010 – The Board of Directors of Shore Bancshares, Inc. (Nasdaq: SHBI) today announced Lloyd L. “Scott” Beatty, Jr., 58, Executive Vice President and Chief Operating Officer, has been promoted to President and Chief Operating Officer of the company, effective January 1, 2011. In his capacity as President, he will succeed W. Moorhead Vermilye, 70, who will remain Chief Executive Officer.

“Our organization has been implementing a careful strategic management succession plan over the past several years,” said Christopher F. Spurry, Chairman of the Board of Shore Bancshares, Inc. “As the dominant independent banking and financial services company headquartered on the DelMarVa peninsula, we understand that locally-developed talent is the key to understanding our customers, our markets, and driving our diverse company forward to the next level. Scott Beatty clearly understands our mission . . . and he and Moorhead have worked very closely together for a long time to successfully advance our goals. We know these two leaders will continue to do so effectively as our succession plan evolves. Moorhead Vermilye and Scott Beatty have interacted professionally for nearly thirty years and have proven to be a highly compatible senior management pair with complementary styles and technical skills. ”

Mr. Beatty has served as a Director of Shore Bancshares, Inc. since December 2000. He has been a Director of lead subsidiary The Talbot Bank of Easton, Maryland since 1992. Mr. Beatty’s previous position as EVP and COO is one he has held since August 2007. Prior to that, Mr. Beatty served as Vice President and COO since July 2006 and as Vice President since October 2004.  Before joining the company, Mr. Beatty was the Chief Operating Officer of Darby Overseas Investments, LP, a global private equity firm, and President of Darby Advisors, Inc., a privately held family investment business, from 1998 to 2005. Mr. Beatty was also a practicing Certified Public Accountant for 25 years and a principal in the accounting firm Beatty, Satchell & Company, headquartered in Easton, MD, from 1977 to 1998.

Mr. Vermilye has served as a President, Chief Executive Officer and Director of Shore Bancshares, Inc. since December 2000. He has also served as Director of Talbot Bank of Easton, Maryland since 1977 and as a Director of The Felton Bank, a wholly-owned subsidiary of the Company, since 2004. From 1988 until July 2006, Mr. Vermilye also served as the President and Chief Executive Officer of Talbot Bank. From 1970 to 1988, Mr. Vermilye was a Principal in Bartlett, Griffin & Vermilye Insurance Agency, located in Easton, Maryland. Mr. Vermilye has served on the boards of numerous community based organizations within Talbot County and the Mid-Shore during his career.

Shore Bancshares Information

Shore Bancshares, Inc. is a financial holding company headquartered in Easton, Maryland and is the largest independent bank holding company located on Maryland’s Eastern Shore.  It is the parent company of three banks, The Talbot Bank of Easton, Maryland, CNB, and The Felton Bank; three insurance producer firms, The Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin and Associates, Inc; a wholesale insurance company, TSGIA, Inc; two insurance premium finance companies, Mubell Finance, LLC and ESFS, Inc; and a registered investment adviser firm, Wye Financial Services, LLC.  Shore Bancshares, Inc. engages in the mortgage broker business under the name “Wye Mortgage Group” through a minority series investment in an unrelated Delaware limited liability company.  Additional information is available at www.shbi.net.

For further information contact:  W. Moorhead Vermilye, President and CEO, 410-822-1400