Lloyd L. “Scott” Beatty, Jr. President CEO George S. Rapp Vice President CFO Sterne Agee 2014 Financial Institutions Investor Conference February 12 – 14, 2014

Forward - Looking Statement This presentation includes forward - looking statements, including statements about future results. These statements are subject to uncertainties and risks, including but not limited to our ability to integrate acquisitions; the strength of the U.S. economy and the local economies where we conduct operations; harsh weather conditions; fluctuations in inflation, interest rates, or monetary policies; changes in the stock market and other capital and real estate markets; legislative or regulatory changes; customer acceptance of third - party products and services; increased competition and its effect on pricing; technological changes; security breaches and computer viruses that may affect our computer systems; changes in consumer spending and savings habits; our growth and profitability; changes in accounting; and our ability to manage the risks involved in the foregoing. These factors, as well as additional factors, can be found in our Annual Report on Form 10 - K for the fiscal year ended December 31, 2012 along with our other filings with the SEC, which are available at the SEC’s internet site ( www.sec.gov ). Actual results may differ materially from projections and could be affected by a variety of factors, including factors beyond our control. Forward - looking statements in this presentation speak only as of the date of these materials, and we assume no obligation to update forward - looking statements or the reasons why actual results could differ. In addition, this presentation includes certain non - GAAP financial measures. 2

Management Team 3 Years Years in with Name Title/Function Entity Banking Company L. Scott Beatty, Jr. President and Chief Executive Officer SHBI 22 8 George S. Rapp EVP and Chief Financial Officer SHBI 35 1 Pat Bilbrough President and Chief Executive Officer Talbot Bank 18 2 F. Winfield Trice, Jr. President and Chief Executive Officer CNB 36 7 Kathleen A. Kurtz SVP and Senior Credit Officer Talbot Bank 29 1 Charles E. Ruch, Jr. SVP/Credit Officer CNB 25 7 TOTAL 165 26

Financial Summary (As of 12/31/2013) 4 Assets: $1,054.1 million Gross Loans: $711.9 million Total Deposits: $933.5 million Total Equity: $103.3 million Tangible Common Equity: $87.3 million Tangible Book Value per Share: $10.31 Headquarters: Easton, Maryland Branches: Depository 18 Other 7 Shares Outstanding: 8,471,000 Closing Stock Price (February 3, 2014) $9.57 Market Capitalization (February 3, 2014) $81.1 million Price/Tangible Book Value per Share: 92.8% Insider Ownership: 8.67%

25 locations 18 branches 7 non - bank offices 6

Deposit Market Share Delmarva Peninsula 7 NOTE: Delmarva Peninsula defined as Maryland counties of Kent, Queen Anne’s, Talbot, Caroline, Dorchester, Wicomico, Somerset, and Worcester; and Delaware counties of Kent and Sussex; Deposit m arket share excludes Discover Financial Services Data as of June 30, 2013 and adjusted for all MA transactions. SOURCE : SNL Financial Mkt. In-Mkt. HQ Deposits as of '13 Market Rank Rank Ticker Company Name City (HQ) State Branches June 30, 2013 ($mm) Share (%) 1 -- PNC PNC Financial Services Group Inc. Pittsburgh PA 47 $2,027 17.6% 2 -- MTB MT Bank Corp. Buffalo NY 33 1,801 15.7% 3 1 SHBI Shore Bancshares Inc. Easton MD 18 926 8.1% 4 2 WSFS WSFS Financial Corp. Wilmington DE 18 601 5.2% 5 -- BBT BBT Corp. Winston-Salem NC 15 438 3.8% 6 3 - HSB Bancorp Inc. Hebron MD 11 420 3.7% 7 -- WFC Wells Fargo Co. San Francisco CA 4 409 3.6% 8 4 - Queenstown Bancorp of Maryland Inc. Queenstown MD 8 406 3.5% 9 -- BAC Bank of America Corp. Charlotte NC 7 395 3.4% 10 5 DBCP Delmar Bancorp Salisbury MD 13 382 3.3% 11 -- RBS Royal Bank of Scotland Group Plc Edinburgh - 8 372 3.2% 12 6 TYCB Calvin B. Taylor Bankshares Inc. Berlin MD 10 362 3.1% 13 7 - Farmers Bank of Willards Willards MD 11 293 2.6% 14 8 - CB Financial Corp. Rehoboth Beach DE 7 283 2.5% 15 9 - First Shore Federal Savings and Loan Association Salisbury MD 8 263 2.3% 16 -- FULT Fulton Financial Corp. Lancaster PA 6 244 2.1% 17 -- STI SunTrust Banks Inc. Atlanta GA 7 241 2.1% 18 10 PSBP PSB Holding Corp. Preston MD 8 241 2.1% 19 11 - Bank of Ocean City Ocean City MD 6 208 1.8% 20 12 PEBC Peoples Bancorp Inc. Chestertown MD 7 201 1.8% 500 Other Market Participants (16) 37 $981 8.5% Total 289 $11,494 In-Market Participants - (DE MD) (21) 143 $5,187 45.1% Out of Market Participants (15) 146 $6,307 54.9%

Shore Bancshares, Inc. Bank Branch Competitors Report Within 1 Mile Within 5 Miles Company Name Competing Branches Deposits in Competing Branches Competing Branches Deposits in Competing Branches Shore Bancshares, Inc . 18 925,966 Money Centers/Regionals 7 1,168,403 7 1,930,539 Community Banks 45 893,329 81 2,170,674 TOTALS 52 2,061,732 88 4,101,213 8

• Loan Composition • Deposit Composition Loans and Deposits (As of 12/31/2013) Construction 9.0% Residential Real Estate 26.2% Commercial Real Estate 37.8% Farmland 5.0% Multi - Family 3.8% Commercial and Industrial 8.0% Consumer 10.2% Noninterest - bearing demand 18.5% Interest - bearing demand 19.0% Money market and savings 22.6% Certificates of deposit $100,000 or more 19.8% Other time 20.1% 9

Deposit Composition (Dollar Value in Thousands) As of December 31, 2012 As of June 30, 2013 December 31, 2013 Annual Growth Deposit Type Balance % of Total Balance % of Total Balance % of Total % Noninterest Bearing Demand $ 153,992 14.7% $ 158,562 17.2% $ 172,797 18.5% 12.2% 1 Interest Bearing Demand 187,843 17.9 159,925 17.3 177,121 19.0 (5.7) Money Market Savings 278,653 26.6 210,500 22.8 210,748 22.6 (24.4) 3 CDs $100,000 or more 225,052 21.4 198,089 21.5 185,040 19.8 (17.8) 2 Other Time 203,733 19.4 195,031 21.2 187,762 20.1 (7.8) 2 Total Deposits $ 1,049,273 100% $ 922,107 100% $ 933,468 100% (10.7%) 1 Commercial focus drives growth of Noninterest Bearing Demand accounts 2 De - emphasis of Time Deposits as funding source 3 Money Market and Savings declined due to termination of Promontory IND Funding Program of $90 million 10

Improving Credit Quality 12/31/2011 3/31/2012 6/30/2012 9/30/2012 12/31/2012 3/31/2013 6/30/2013 9/30/2013 12/31/2013 NON - PERFORMING ASSETS Nonaccrual Loans $51,370 $49,405 $47,958 $39,442 $36,474 $31,813 $34,818 $24,766 $18,147 90 or More Days Past Due 2,723 3,796 3,519 4,675 460 22 3 9 270 Other Real Estate Owned 9,385 11,418 11,499 8,418 7,659 8,366 6,408 5,776 3,779 Total Non - Performing Assets $63,478 $64,619 $62,976 $52,535 $44,593 $40,201 $41,229 $30,551 $22,196 Performing TDRs 25,208 30,010 37,231 50,785 52,353 52,545 50,278 44,281 26,088 Total NPAs + TDRs $88,686 $94,629 $100,207 $103,320 $96,946 $92,746 $91,507 $74,832 $48,284 NPAs / Assets 5.48% 5.52% 5.36% 4.46% 3.76% 3.64% 3.91% 2.91% 2.11% NPAs + TDRS / Assets 7.66% 8.09% 8.53% 8.77% 8.18% 8.40% 8.68% 7.12% 4.58% RESERVES Reserves $14,288 $13,544 $12,990 $12,955 $15,991 $15,735 $15,723 $11,301 $10,725 Reserves / Gross Loans 1.70% 1.65% 1.60% 1.60% 2.04% 2.00% 2.01% 1.57% 1.51% Reserves / NPLs 26.4% 25.5% 25.2% 29.4% 43.3% 49.4% 45.2% 45.6% 58.2% Reserves / NPLs+TDRs 18.0% 16.3% 14.6% 13.7% 17.9% 18.6% 18.5% 16.4% 24.1% NET CHARGE - OFFS Net Charge - Offs (Quarterly) $1,000 $1,000 $1,000 $1,000 $6,614 $2,406 $2,712 $26,882 $1,050 NCOs / Avg Loans (Annualized) 0.47% 0.48% 0.49% 0.49% 3.31% 1.23% 1.38% 13.93% 0.58% 11

Revenue Composition Revenue Breakdown 2013 Noninterest Income Detail (1) ( 1) Noninterest income excludes investment securities gains and loss on termination of cash flow hedge. Dollars in thousands 24% 25% 26% 34% 32% 31% 12 Service charges on deposit accounts 15.2% Trust and Investment fee income 9.8% Insurance agency commissions income 58.3% Other 16.7% 66% 68% 70% 70% 67% 34% 32% 30% 30% 33% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2009 2010 2011 2012 2013 Net Interest income % Noninterest Income %

Key Ratios Versus Peers – 4Q13 Peer* SHBI Return on Average Assets 0.24% 0.44% Return on Average Equity 4.16% 4.50% Total Equity/Total Assets 10.19% 9.80% Tangible Equity/Tangible Assets 8.90% 8.41% Risk - Based Capital Ratio 15.90% 11.34% Net Interest Margin 3.89% 3.47% Non - interest Income/Operating Revenue 24.18% 33.54% Efficiency Ratio (Non - GAAP) (1) 79.25% 77.58% Nonperforming Assets/Assets (Including TDRs) (2) 2.98% 4.58% (1) Noninterest expense (excluding amortization of intangible assets and write - downs of other real estate owned) as a percentage of fully taxable net interest income and noninterest income. (2) Nonperforming assets (NPAs) include nonaccrual loans, accruing troubled debt restructurings and net other real estate and other assets owned. * Peer Group Definition: Publicly traded banking companies in MD and VA with Total Assets between $750 M - $2B. 13

Selected Financial Data 2009 – 2013 RESULTS OF OPERATION: Years Ended December 31 , $(000) 2013 2012 2011 2010 2009 Net interest income 34,878 35,339 39,764 42,639 41,378 Provision for credit losses 27,784 27,745 19,470 21,119 8,986 Noninterest income 17,459 15,758 17,318 18,041 19,541 Noninterest expense 40,886 39,555 39,167 41,720 40,248 Income (Loss) before income taxes (16,135) (16,203) ( 1,555) ( 2,159) 11,685 Income tax (benefit) expense (6,501) (6,565) (658) (492) 4,412 Net (loss) income (9,634 ) (9,638) ( 897) ( 1,667) 7,273 EPS diluted (1.14) ( 1.14) ( 0.11) ( 0.20) 0.64 14

Capital Adequacy 9.38% 9.35% 9.16% 8.36% 8.41% 12.59% 13.07% 13.80% 13.32% 11.34% 11.45% 11.81% 12.55% 12.05% 10.09% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2009 2010 2011 2012 2013 Tangible Common Equity/Tangible Asset Total Risk-Based Capital Ratio Tier 1 Risk-Based Capital Ratio 15

What Makes SHBI Unique? ● Track record of consistent financial performance ▪ Diversity of Revenue Sources - - without Mortgage ▪ Capital Position Remains Solid ▪ Stable Net Interest Margin ▪ Strong Control of Operating Expenses ● Dominant independent financial services company in all markets within footprint 16

Looking Ahead Strategically ● Focus on organic growth - Re - engage sales efforts across all business lines - Grow customer base by taking share from local/national competitors ($4.1 billion available) - Focus on relationships to increase deposit penetration multi - product usage ● Leverage infrastructure and dominant market position ● Restore consistent profitability - Credit discipline along with refining risk tolerance with emphasis on credit quality - Continued emphasis on fee revenue growth - Diligent expense control redeploying to revenue generating businesses - Improve core Efficiency Ratio by consolidating Bank Charters 17

Compelling Investment Considerations ● We are a very different Company now x Reduced emphasis on R/E as collateral x Strengthened noninterest revenue sources x Continuing to build organizational depth x Forge a sales culture with new branding thrust x Revamped strategic plan positions for growth x Instilled a new sense of urgency ● Focused on creating sustainable competitive advantages ● Scarcity of investment opportunities in our market ● Current valuation is attractive (trade at 93% of TBV) 18

SHBI – Price Change (%) 19

ADDENDUM 20

Peer Group Definition Publically traded banking companies in MD, DC, VA, DE with total assets between $750M - $2B. 21

22 Company Name Location Total Assets MRQ ($000) Tang Common Equity/ Tang Assets MRQ (%) NPAs/ Assets MRQ (%) Total Equity/ Total Assets MRQ (%) Efficiency Ratio MRQ (%) Risk - based Capital Ratio MRQ (%) ROAA MRQ (%) ROAE MRQ (%) Noninterest Inc / Operating Rev MRQ (%) Net Interest Margin MRQ (%) Old Point Financial Corp. VA 864,288 9.34 - 9.34 95.02 - 0.10 1.04 33.36 3.19 Community Bankers Trust Corp VA 1,089,532 8.25 - 9.79 80.29 16.80 0.43 4.39 11.66 4.26 Eastern Virginia Bankshares VA 1,033,057 6.80 1.00 12.65 87.10 19.12 (2.48) (19.84) 15.70 3.57 First United Corp. MD 1,342,088 4.40 3.06 7.41 66.97 15.18 0.55 7.39 23.74 3.79 Franklin Financial Corp. VA 1,059,321 22.79 5.79 22.79 60.74 27.57 1.00 4.43 9.75 2.70 Monarch Financial Hldgs VA 1,016,700 9.51 0.21 9.61 85.54 13.91 0.91 9.31 59.84 4.12 Middleburg Financial Corp. VA 1,228,253 8.76 2.27 9.40 85.37 15.88 0.42 4.45 35.89 3.45 American National Bankshares VA 1,307,512 9.91 - 12.81 59.53 - 0.95 7.50 18.52 4.00 First Mariner Bancorp MD 1,084,593 (1.63) 7.44 (1.63) 178.32 (2.45) (2.56) NM 26.08 3.02 National Bankshares Inc. VA 1,077,403 12.89 1.74 13.58 43.44 23.89 1.67 12.39 17.72 4.33 Virginia Heritage Bank VA 894,841 9.04 0.42 10.75 58.83 14.86 1.14 10.32 19.09 3.61 Severn Bancorp Inc. MD 799,603 6.98 6.82 10.35 125.36 - (2.71) (25.55) 17.14 3.15 Access National Corp. VA 847,182 10.76 - 10.76 59.87 - 1.50 13.34 34.13 3.89 CF Financial Corp. VA 1,312,297 - 0.87 8.61 62.04 - 0.87 10.24 18.52 6.83 Old Line Bancshares Inc MD 1,167,223 9.81 - 10.84 51.62 - 1.49 13.54 30.99 4.66 Valley Financial Corp. VA 825,346 5.93 3.19 5.93 67.89 14.19 0.63 9.41 14.70 3.67 Average For Above Peer Group 1,059,327 8.90 2.98 10.19 79.25 15.90 0.24 4.16 24.18 3.89 Shore Bancshares Inc. Easton, MD 1,054,124 8.41 4.55 9.80 78.28 11.34 0.44 4.54 32.94 3.50

23 Shore Bancshares, Inc. Bank Branch Competitors Report Ownership Pro - forma Distance (mi.) 1 Include Credit Unions? Yes This report lists banks, thrifts and credit unions that own branches within 1 mile of any Shore Bancshares Inc. branch in the Un ited States and its territories. The number of branches and amount of deposits in those branches within 1 mile are listed for each retail competitor. You can adjust the ownership, distance, number of competitors and inclusion of credit unions to change the analysis. Company Name SNL Institution Key Industry Type HQ City HQ State/Countr y Institution Total Assets ($000) Competing Branches Deposits in Competing Branches ($000) Focus Company Shore Bancshares Inc. 1027751 Bank HC Easton MD 1,041,865 18 925,966 Competitors MT Bank Corp. 100253 Bank HC Buffalo NY 123,554,909 6 291,784 PNC Financial Services Group 100406 Bank HC Pittsburgh PA 294,525,586 6 363,626 Queenstown Bancorp of MD Inc. 1974087 Bank HC Queenstown MD 451,846 5 264,933 Bank of America Corp. 100369 Bank HC Charlotte NC 1,605,936,639 4 199,796 BBT Corp. 100438 Bank HC Winston - Salem NC 181,763,278 4 161,209 SunTrust Banks Inc. 100449 Bank HC Atlanta GA 167,101,823 4 99,534 PSB Holding Corp. 1027834 Bank HC Preston MD 288,118 3 97,668 WSFS Financial Corp. 101999 Bank HC Wilmington DE 4,695,945 2 44,130 Easton Bancorp Inc. 1024016 Bank HC Easton MD 138,261 2 108,596 Delmarva Bancshares Inc. 4045515 Bank HC Cambridge MD 200,310 2 147,551 F.N.B. Corp. 100237 Bank HC Hermitage PA 13,805,979 1 41,862 Capital One Financial Corp. 103239 Bank HC McLean VA 314,017,323 1 22,971 Sussex County FCU 107785 Credit Union Seaford DE 251,343 1 0 Artisans' Bank 1005062 Savings Bank Wilmington DE 479,438 1 12,787 Chesapeake Bancorp 1023344 Bank HC Chestertown MD 91,773 1 6,875 Peoples Bancorp Inc 1032860 Bank HC Chestertown MD 239,606 1 36,152 Partners 1st FCU 2502108 Credit Union Fort Wayne IN 253,118 1 0 Dover Federal Credit Union 2503538 Credit Union Dover DE 401,561 1 0 Del - One Federal Credit Union 2503991 Credit Union Dover DE 329,325 1 0 Milford Memorial FCU 2505293 Credit Union Milford DE 3,292 1 2,884 RBS 3001937 Bank HC Edinburgh United Kingdom 124,522,968 1 29,483 HSB Bancorp Inc. 4056109 Bank HC Hebron MD 506,024 1 90,068 CB Financial Corp. 4199286 Bank HC Rehoboth Beach DE 323,025 1 39,734 JRMB II Inc. 4275416 Bank HC Lawton OK 734,586 1 89 Total for All Competitors 52 2,061,732 Deposits as of 6/30/2013. Non - retail branches are not included. Total Assets reflects data from regulatory filings. For holding companies, Total Assets is aggregated from operating subsidia ry filings.

Shore Bancshares, Inc. Bank Branch Competitors Report Ownership Pro - forma Distance (mi.) 5 Include Credit Unions? Yes This report lists banks, thrifts and credit unions that own branches within 5 miles of any Shore Bancshares Inc. branch in th e U nited States and its territories. The number of branches and amount of deposits in those branches within 5 miles are listed for each retail competitor. You can adjust the ownership, distance, number of competitors and inclusion of credit unions to change the analysis. Company Name SNL Institution Key Industry Type HQ City HQ State/Countr y Institution Total Assets ($000) Competing Branches Deposits in Competing Branches ($000) Focus Company Shore Bancshares Inc. 1027751 Bank HC Easton MD 1,041,865 18 925,966 Competitors PNC Financial Services Group 100406 Bank HC Pittsburgh PA 294,525,586 11 568,376 MT Bank Corp. 100253 Bank HC Buffalo NY 123,554,909 10 588,783 WSFS Financial Corp. 101999 Bank HC Wilmington DE 4,695,945 7 258,757 Queenstown Bancorp of MD Inc. 1974087 Bank HC Queenstown MD 451,846 7 397,783 Bank of America Corp. 100369 Bank HC Charlotte NC 1,605,936,639 4 199,796 BBT Corp. 100438 Bank HC Winston - Salem NC 181,763,278 4 161,209 SunTrust Banks Inc. 100449 Bank HC Atlanta GA 167,101,823 4 99,534 PSB Holding Corp. 1027834 Bank HC Preston MD 288,118 4 111,475 Dover Federal Credit Union 2503538 Credit Union Dover DE 401,561 3 361,952 Del - One Federal Credit Union 2503991 Credit Union Dover DE 329,325 3 282,345 RBS 3001937 Bank HC Edinburgh United Kingdom 124,522,968 3 157,322 Wells Fargo Co. 100382 Bank HC San Francisco CA 1,344,666,829 2 155,519 Capital One Financial Corp. 103239 Bank HC McLean VA 314,017,323 2 45,528 Artisans' Bank 1005062 Savings Bank Wilmington DE 479,438 2 59,353 Chesapeake Bancorp 1023344 Bank HC Chestertown MD 91,773 2 69,059 Easton Bancorp Inc. 1024016 Bank HC Easton MD 138,261 2 108,596 Peoples Bancorp Inc 1032860 Bank HC Chestertown MD 239,606 2 110,776 Provident FCU 2504701 Credit Union Dover DE 11,241 2 9,321 Delmarva Bancshares Inc. 4045515 Bank HC Cambridge MD 200,310 2 147,551 JRMB II Inc. 4275416 Bank HC Lawton OK 734,586 2 7,287 F.N.B. Corp. 100237 Bank HC Hermitage PA 13,805,979 1 41,862 Toronto - Dominion Bank 100519 Bank HC Toronto Canada 228,266,693 1 19,817 Sussex County FCU 107785 Credit Union Seaford DE 251,343 1 0 Partners 1st FCU 2502108 Credit Union Fort Wayne IN 253,118 1 0 Carco Federal Credit Union 2502640 Credit Union Denton MD 4,820 1 4,300 American Spirit FCU 2504439 Credit Union Newark DE 66,476 1 0 Milford Memorial FCU 2505293 Credit Union Milford DE 3,292 1 2,884 Choptank Electric Coop 2505676 Credit Union Denton MD 2,562 1 2,226 HSB Bancorp Inc. 4056109 Bank HC Hebron MD 506,024 1 90,068 CB Financial Corp. 4199286 Bank HC Rehoboth Beach DE 323,025 1 39,734 Total for All Competitors 88 4,101,213 Deposits as of 6/30/2013. Non - retail branches are not included. Total Assets reflects data from regulatory filings. For holding companies, Total Assets is aggregated from operating subsidiary fi li ngs.

SHBI Management Team Talent, depth, unique skills • Lloyd L. Beatty, Jr., 61, CPA, President CEO of SHBI since June 2013, Director of SHBI since December 2000, Director of Talbot Bank since 1992. From October 2005, President COO of SHBI. Formerly COO, private equity firm Darby Overseas Investments. Formerly Managing Partner of public accounting firm. • George S. Rapp, 61, CPA, Vice President and Chief Financial Officer of SHBI since February 2013. From 2010 to 2012 , Chief Financial Officer and one of the four executive founders of World Currency USA. From 2005 to 2010, Chief Financial Officer of Harleysville National Corporation . Prior to 2005, held various financial positions including CFO, SVP Chief Accounting Officer, COO and Controller . • F. Winfield Trice, Jr., 59, Director of SHBI and President CEO of CNB (formerly Centreville National Bank of Maryland), since June 2007. From 1997 to June 2007, EVP Senior Loan Officer Mercantile Peninsula Bank. From 1977 to 1997 served in various capacities with The First National Bank of Maryland (now MT), ending as President CEO of York Bank and Trust, a subsidiary bank of First Maryland . • Patrick M. Bilbrough , 49 , President and CEO of the Talbot Bank since December 2012. He joined Talbot Bank in May of 2011 as an Executive Vice President. Prior to his employment with Talbot Bank and since 2007, Mr. Bilbrough served as the Market Executive of PNC Bank, N.A . From 1995 to 2004, Mr. Bilbrough was with the Peoples Bank of Maryland, of Denton, where he had most recently been President and CEO after beginning as its Chief F inancial O fficer and comptroller. He was a small business owner from 1985 to 1995 . • Richard C. Trippe, Jr., 51, President and CEO of Avon Dixon since 2011. After graduating from St. Mary’s College of Maryland with a Bachelor of Arts in Economics in 1985, he joined The Hartford Insurance Group, where he stayed for seventeen years. After leaving Hartford, worked for an independent agency in Baltimore County and subsequently ran a branch office for a national insurance wholesaler. • Christopher F. Spurry, 66, Chairman of the Board of SHBI since April 2006. Director of SHBI since April 2004 and Director of Talbot Bank since 1995. Owner and President of Spurry Associates, Inc., a regional Manufacturer’s Representative firm serving the foodservice equipment industry. 25

Selected SHBI Market Highlights • Projected 5 - year population growth (2010 - 2015) in DE market exceeds 10%; growth rates in two leading MD counties (Talbot Queen Anne’s) to exceed 4% combined. • Current median age across market is ~40 years old. • Household income for entire 2 - state franchise is $67,000 vs. $53,000 for the U.S. • 8 - county footprint has strong small business base with >7,000 business establishments; 10% employ more than 100 workers. • SHBI deposit market share by county: – Maryland Delaware – Talbot -- #1 Kent -- #7 – Queen Anne’s -- #2 – Caroline -- #3 – Kent -- #5 – Dorchester -- #6 – Anne Arundel Wicomico * * Non - Bank subsidiaries only Data sources: SNL Financial, Inc . 26

Loan Composition (Dollar Value in Thousands) As of December 31, 2012 As of June 30, 2013 As of 12/31/2013 Loan Type Balance % of Total Balance % of Total Balance % of Total Construction – 1 - 4 Family $ 11,309 1.4% $ 10,825 1.4% $ 10,221 1.4% Construction – Other 96,742 12.3 93,691 12.0 54,370 7.6 Residential Real Estate 193,496 24.7 194,634 24.8 186,069 26.2 Commercial Real Estate – Owner Occupied 166,886 21.3 170,256 21.8 151,496 21.3 Commercial Real Estate - Other 111,883 14.3 114,319 14.6 117,519 16.5 Farmland 36,172 4.6 36,616 4.7 35,590 5.0 Multi - Family 26,187 3.3 28,582 3.7 27,180 3.8 Commercial Industrial 60,786 7.7 56,448 7.2 57,195 8.0 Home Equity 68,328 8.7 65,278 8.3 61,608 8.7 Other Consumer 13,293 1.7 11,539 1.5 10,671 1.5 Total $ 785,082 100% $ 782,188 100% $ 711,919 (9.32%) 27

Overview of TDRs ● 38 performing restructured loans currently outstanding with $22.3 million in aggregate balances ● 37% of TDRs were performing prior to restructuring ● Weighted average yield on TDRs = 3.89% ● Restructurings by type: – Reduction of interest rate = 5 loans – Extension of term = 1 loan – Reduction of interest rate and extension of term = 4 loans – Deferment of interest or principal = 1 loan – Consolidation = 3 loans – A combination of the above restructuring provisions = 24 loans 28