Press Release
August 28, 2020

Holland & Knight Advises Shore Bancshares, Inc. on $25 Million Subordinated Notes Offering

WASHINGTON (August 28, 2020) – Holland & Knight advised Shore Bancshares, Inc. (NASDAQ: SHBI), the holding company for Shore United Bank, on the private placement of $25 million of its 5.375% fixed to floating rate subordinated notes due 2030. The offering closed on August 25.

Shore Bancshares is headquartered in Easton, Maryland, and is the largest independent bank holding company located on Maryland's Eastern Shore.

The notes will initially bear interest at a fixed annual rate of 5.375% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 526.5 basis points. The notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the company. The net proceeds from the private placement will be used for general corporate purposes, organic growth and to support the bank's regulatory capital ratios.

Piper Sandler & Co. served as the lead placement agent and Janney Montgomery Scott LLC served as the co-placement agent for the private placement.

The Holland & Knight team that represented Shore Bancshares on this transaction consisted of Partners Kevin Houlihan, William Levay and Mark Goldschmidt and Associate Benjamin St. Angelo.

Holland & Knight has served as legal counsel to issuers, placement agents and underwriters in a number of bank and bank holding company subordinated and senior debt transactions totaling approximately $600 million in principal amount of such offerings over the last several months.

More information about the transaction can be found here.

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