A Letter to Our Customers

Dear Severn Bank Customer,

Severn Bancorp, Inc., the parent company of Severn Bank, has entered into a merger agreement with Shore Bancshares, Inc. headquartered in Easton, Maryland, and the parent company of Shore United Bank. This will bring together Severn Bank and Shore United Bank.

We will have an expanded community banking franchise, growing assets from $1 billion to $3 billion. We anticipate closing the transaction in the fall of 2021.

In addition to Severn’s 7 branches in Anne Arundel County, we will have an additional 22 branches throughout the Eastern Shore of Maryland, Delaware, the Eastern Shore of Virginia, Baltimore County, and Howard County. The combined financial strength and size of the merged banks will enhance the experience of our collective customers, and the combined organization will be a formidable community bank dedicated to the neighborhoods we serve. We believe you will benefit greatly by receiving community banking services at a larger scale.

After carefully considering our options, Severn concluded that partnering with Shore United would be the best bank to combine with for our customers. Their culture and commitment to community aligns very well to that of Severn Bank. We are confident that Shore United Bank will help us continue the legacy of exceptional personal service with a commitment to supporting and giving back to our community.

There will be information to share over the coming months, and please know that while Severn Bank will soon be known as Shore United Bank, the customer service you have come to expect will not change. Severn representatives will be communicating with you, updates will be posted on our website severnbank.com, and no disruptions will be made to your banking services.

Very truly yours,

SEVERN BANK

Alan Hyatt Signature
Alan J. Hyatt, President

This letter does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed transaction.