Schedule of Deferred Compensation Arrangement

The following table provides information on Shore Bancshares, Inc.’s contributions and participant deferrals to the Plan for 2020 and 2019 and the related deferred compensation liability at December 31, 2020 and 2019.


(Dollars in thousands)	2020		2019
Deferred compensation contribution	$	—	$	—
Elective deferrals		319		133
Deferred compensation liability		614		363

Schedule of Deferred Compensation Arrangement in Other Assets and Other Liabilities

During 2019, the Company introduced a new SERP plan for executive officers of the Company and the Bank. The related liability is unfunded; however, BOLI was purchased in order to offset the benefit costs. The following table provides information on the expense recognized during the years ended December 31, 2020 and 2019, as well as the balance of the unfunded SERP liability and the cash surrender value of policies purchased to offset the SERP benefit costs as of December 31, 2020 and 2019. The unfunded SERP liability and cash surrender value were included in other liabilities and other assets, respectively.


(Dollars in thousands)	2020		2019
Cash surrender value	$	27,501	$	26,721
Deferred compensation liability - SERP		1,659		347
SERP Expense		1,422		347

Schedule of Deferred Compensation Arrangement in Other Assets and Other Liabilities

The following table includes information on the deferred compensation liability and cash surrender value at December 31, 2020 and 2019.


(Dollars in thousands)	2020		2019
Deferred compensation liability	$	631	$	691
Cash surrender value		2,979		2,919