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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>&#9;SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>&#9;Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
November 6, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SHORE BANCSHARES, INC.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 0; padding-left: 0; text-decoration: underline; text-align: center; padding-top: 0">Maryland</TD>
    <TD STYLE="width: 33%; padding-right: 0; padding-left: 0; text-decoration: underline; text-align: center; padding-top: 0">0-22345</TD>
    <TD STYLE="width: 33%; padding-right: 0; padding-left: 0; text-decoration: underline; text-align: center; padding-top: 0">52-1974638</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0">(State or other jurisdiction of</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0">(Commission file number)</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0">(IRS Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0">incorporation or organization)</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>18 East Dover Street, Easton, Maryland
21601</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant&rsquo;s telephone number, including
area code: <U>(410) 763-7800</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>N/A</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT>&#9;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT>&#9;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT>&#9;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR &#9;240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT>&#9;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR &#9;240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 8%; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold">Item 5.02</TD>
    <TD STYLE="width: 92%; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold">Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 6, 2012, William E. Sylvester,
Jr. resigned from the boards of directors of the Company and its bank subsidiary, CNB. A copy of Mr. Sylvester&rsquo;s resignation
letter (the &ldquo;Sylvester Letter&rdquo;) is filed herewith as Exhibit 99.1, and a copy of the Company&rsquo;s written acceptance
of the resignation is filed herewith as Exhibit 99.2. Prior to his resignation, Mr. Sylvester served on the Nominating and Corporate
Governance Committee and the Asset Liability Committee of the Company&rsquo;s board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">Mr. Sylvester&rsquo;s
resignation was due to a disagreement with the Company regarding certain aspects of the Company&rsquo;s policies and practices,
which are described in the Sylvester Letter. </FONT>The Sylvester Letter does not provide specific facts or circumstances in support
of Mr. Sylvester&rsquo;s disagreements, but states that his concerns fall within the categories of management appointees, decisions
relating to acquisitions and their integration with the Company, certain credit decisions made by The Talbot Bank of Easton, Maryland,
a bank subsidiary of the Company, and certain funding decisions that he felt left the Company vulnerable to possible liquidity
issues. <FONT STYLE="color: black">The foregoing description is qualified in its entirety by reference to the Sylvester Letter.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company respectfully disagrees with
the Sylvester Letter and notes its belief that all of Mr. Sylvester&rsquo;s concerns relate to facts and circumstances that arose
prior to his nomination and election to the Company&rsquo;s board of directors. The Company categorically denies that any member
of management or the board of directors acted, or failed to act, in a manner that was in any way inconsistent with the management
of a public company or the duties of care, loyalty or candor. Rather, the Company believes that the disagreements described in
the Sylvester Letter simply evidence differences of opinion between Mr. Sylvester and the board of directors and management of
the Company as to how the business and affairs of the Company and its subsidiaries should have been managed during the recent banking
crisis and resulting recession, and how the Company and its subsidiaries should be managed as the economy and the banking industry
recover. All actions were taken with the best interests of Company and its stockholders in mind.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 6, 2012, the Company provided
a copy of this report to Mr. Sylvester, including Exhibits 99.1 and 99.2, and notified him that he has an opportunity to furnish
the Company as promptly as possible with a letter addressed to the Company stating whether he agrees with the statements made by
the Company in response to this Item 5.02 and, if not, the respects in which he does not agree. The Company will file any such
response it receives as an amendment to this report within two business days of its receipt thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold">Item 9.01.</TD>
    <TD STYLE="width: 92%; padding-right: 0; padding-left: 0; font-size: 10pt; font-weight: bold">Financial Statements and Exhibits.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(d)</TD><TD STYLE="text-align: justify">Exhibits.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exhibits that are filed or furnished
with this report are listed in the Exhibit Index that immediately follows the signatures hereto, which list is incorporated herein
by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0">SHORE BANCSHARES, INC.</TD>
    <TD STYLE="padding: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; width: 55%">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 5%">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 35%">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 5%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">Dated:&nbsp; November 6, 2012</TD>
    <TD STYLE="padding: 0">By:</TD>
    <TD STYLE="padding: 0; border-bottom: Black 1pt solid">/s/ W. Moorhead Vermilye</TD>
    <TD STYLE="padding: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">W. Moorhead Vermilye</TD>
    <TD STYLE="padding: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">Chief Executive Officer</TD>
    <TD STYLE="padding: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">&nbsp;</TD>
    <TD STYLE="padding: 0">(Principal Executive Officer)</TD>
    <TD STYLE="padding: 0">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 11%; padding-right: 0; padding-left: 0">Exhibit</TD>
    <TD STYLE="width: 89%; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 0; padding-left: 0; text-decoration: underline">Number</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-decoration: underline">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 0; padding-left: 0">99.1</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">Resignation letter, dated as of November 6, 2012, from William E. Sylvester, Jr. (filed herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-right: 0; padding-left: 0">99.2</TD>
    <TD STYLE="padding-right: 0; padding-left: 0">Letter, dated as of November 6, 2012, to William E. Sylvester, Jr. from Shore Bancshares, Inc. (filed herewith).</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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{"company-data": {"conformed-name": "SHORE BANCSHARES INC", "cik": "0001035092", "assigned-sic": "6021", "irs-number": "521974638", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-22345", "film-number": "121183624"}, "business-address": {"street1": "18 EAST DOVER STREET", "city": "EASTON", "state": "MD", "zip": "21601-3013", "phone": "4108221400"}, "mail-address": {"street1": "18 EAST DOVER STREET", "city": "EASTON", "state": "MD", "zip": "21601-3013"}}
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):
November 6, 2012
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) 763-7800
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:
£
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 	240.14d-2(b))
£
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 	240.13e-4(c))
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On November 6, 2012, William E. Sylvester,
Jr. resigned from the boards of directors of the Company and its bank subsidiary, CNB. A copy of Mr. Sylvester's resignation
letter (the "Sylvester Letter") is filed herewith as Exhibit 99.1, and a copy of the Company's written acceptance
of the resignation is filed herewith as Exhibit 99.2. Prior to his resignation, Mr. Sylvester served on the Nominating and Corporate
Governance Committee and the Asset Liability Committee of the Company's board of directors.
Mr. Sylvester's
resignation was due to a disagreement with the Company regarding certain aspects of the Company's policies and practices,
which are described in the Sylvester Letter.
The Sylvester Letter does not provide specific facts or circumstances in support
of Mr. Sylvester's disagreements, but states that his concerns fall within the categories of management appointees, decisions
relating to acquisitions and their integration with the Company, certain credit decisions made by The Talbot Bank of Easton, Maryland,
a bank subsidiary of the Company, and certain funding decisions that he felt left the Company vulnerable to possible liquidity
issues.
The foregoing description is qualified in its entirety by reference to the Sylvester Letter.
The Company respectfully disagrees with
the Sylvester Letter and notes its belief that all of Mr. Sylvester's concerns relate to facts and circumstances that arose
prior to his nomination and election to the Company's board of directors. The Company categorically denies that any member
of management or the board of directors acted, or failed to act, in a manner that was in any way inconsistent with the management
of a public company or the duties of care, loyalty or candor. Rather, the Company believes that the disagreements described in
the Sylvester Letter simply evidence differences of opinion between Mr. Sylvester and the board of directors and management of
the Company as to how the business and affairs of the Company and its subsidiaries should have been managed during the recent banking
crisis and resulting recession, and how the Company and its subsidiaries should be managed as the economy and the banking industry
recover. All actions were taken with the best interests of Company and its stockholders in mind.
On November 6, 2012, the Company provided
a copy of this report to Mr. Sylvester, including Exhibits 99.1 and 99.2, and notified him that he has an opportunity to furnish
the Company as promptly as possible with a letter addressed to the Company stating whether he agrees with the statements made by
the Company in response to this Item 5.02 and, if not, the respects in which he does not agree. The Company will file any such
response it receives as an amendment to this report within two business days of its receipt thereof.
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibits.
The exhibits that are filed or furnished
with this report are listed in the Exhibit Index that immediately follows the signatures hereto, which list is incorporated herein
by reference.
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.
Dated:  November 6, 2012
By:
/s/ W. Moorhead Vermilye
W. Moorhead Vermilye
Chief Executive Officer
(Principal Executive Officer)
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Resignation letter, dated as of November 6, 2012, from William E. Sylvester, Jr. (filed herewith).
99.2
Letter, dated as of November 6, 2012, to William E. Sylvester, Jr. from Shore Bancshares, Inc. (filed herewith).