REGULATORY CAPITAL REQUIREMENTS (Table)

12 Months Ended

Dec. 31, 2018

REGULATORY CAPITAL REQUIREMENTS [Abstract]

Schedule of Capital Amounts And Ratios

The following tables present the capital amounts and ratios as of December 31, 2018 and 2017.

Common

Total

Net

Tier 1

Total

Equity/

Risk-

Risk-

Adjusted

Common

Risk-Based

Risk-Based

Tier 1

(Dollars in thousands)

Tier 1

Based

Weighted

Average

Equity

Capital

Capital

Leverage

December 31, 2018

Capital

Capital

Assets

Total Assets

Tier 1 ratio

Ratio

Ratio

Ratio

Company (1)

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Shore United Bank

$

140,265

$

150,909

$

1,185,050

$

1,432,686

11.84

%

11.84

%

12.73

%

9.79

%

Common

Total

Net

Tier 1

Total

Equity/

Risk-

Risk-

Adjusted

Common

Risk-Based

Risk-Based

Tier 1

(Dollars in thousands)

Tier 1

Based

Weighted

Average

Equity

Capital

Capital

Leverage

December 31, 2017

Capital

Capital

Assets

Total Assets

Tier 1 ratio

Ratio

Ratio

Ratio

Company

$

132,370

$

142,452

$

1,112,259

$

1,345,876

11.90

%

11.90

%

12.81

%

9.84

%

Shore United Bank

126,751

136,833

1,107,074

1,342,484

11.45

%

11.45

%

12.36

%

9.44

%

(1) In August of 2018 the Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”) directed the Federal Reserve Board (“FRB”) to revise the Small Bank Holding Company Policy Statement to raise the total consolidated asset limit in the Policy Statement from $1 billion to $3 billion. The Company was previously required to comply with the minimum capital requirements on a consolidated basis; however, the Company continues to meet the conditions of the revised policy statement and was, therefore, exempt from the consolidated capital requirements at December 31, 2018.

The Company, also began filing less extensive and less frequent regulatory reports with the FRB, which will reduce administrative costs for the Company.

Bank and holding company regulations, as well as Maryland law, impose certain restrictions on dividend payments by the Bank, as well as restricting extensions of credit and transfers of assets between the Bank and the Company.

At December 31, 2018, the Bank could pay dividends to the parent to the extent of its earnings so long as it maintained required capital ratios. The Bank paid $4.0 million and $0 of dividends to Shore Bancshares, Inc. for the years ended December 31, 2018 and 2017, respectively. Shore Bancshares, Inc. had no outstanding receivables from subsidiaries at December 31, 2018 or 2017.