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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION At the 2016 annual meeting, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan, which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to three-year period of time, and, in the case of stock options, expire 10 years from the grant date. As part of the 2016 Equity Plan, a performance equity incentive award program, known as the “Long-term incentive plan” allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. The 2016 Equity Plan originally reserved 750,000 shares of common stock for grant, and 455,530 shares remained available for grant at December 31, 2023. The Company assumed 3,977 shares of restricted stock and 90,783 of restricted stock units at a fair value of $11.56 per share as a result of the merger with TCFC. The vesting period for the outstanding restricted stock grants and restricted stock units is between three and five years and one to three years, respectively. The recipients of the restricted stock units do not have any shareholder rights, including voting, dividend, or liquidation rights, with respect to the shares underlying awarded restricted units until the recipient becomes the record holder of those shares. The following tables provide information on stock-based compensation expense for the years ended December 31, 2023 and December 31, 2022.
(Dollars in thousands) |  | December 31, 2023 |  | December 31, 2022
Stock-based compensation expense |  | $ | 1,174 |  |  | $ | 636 |
(Dollars in thousands) |  | December 31, 2023 |  | December 31, 2022
Unrecognized stock-based compensation expense |  | $ | 1,859 |  |  | $ | 138 |
Weighted average period unrecognized expense is expected to be recognized |  | 1.3 years |  | 0.2 years
The following tables summarize the unvested restricted stock and restricted stock unit awards outstanding for the Company for the years ended December 31, 2023 and 2022, respectively.
|  | Restricted Stock |  | Restricted Stock Units
|  | December 31, 2023 |  | December 31, 2023
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested at beginning of period |  | 36,860 |  | $ | 20.15 |  |  | — |  | $ | — |
Replacement awards issued in acquisition of TCFC |  | 3,977 |  | 11.56 |  |  | 90,783 |  | 11.56 |
Granted |  | 44,340 |  | 15.58 |  |  | 91,047 |  | 11.56 |
Vested |  | (38,184) |  | 19.68 |  |  | (15,573) |  | 11.56 |
Forfeited |  | (1,671) |  | 17.49 |  |  | (1,202) |  | 11.56 |
Nonvested at end of period |  | 45,322 |  | 15.42 |  |  | 165,055 |  | 11.56 |
|  | Restricted Stock |  | Restricted Stock Units
|  | December 31, 2022 |  | December 31, 2022
|  | Number of Shares |  | Weighted Average Grant Date Fair Value |  | Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested at beginning of period |  | 29,425 |  | $ | 13.95 |  |  | — |  | $ | — |
Granted |  | 34,184 |  | 20.48 |  |  | — |  | — |
Vested |  | (26,749) |  | 13.75 |  |  | — |  | — |
Forfeited |  | — |  | — |  |  | — |  | — |
Nonvested at end of period |  | 36,860 |  | 20.15 |  |  | — |  | — |
The fair value of restricted stock awards that vested during 2023 and 2022 was $0.6 million and $0.5 million, respectively. The fair value of restricted stock units vested during 2023 was $0.2 million. There were no stock options granted during 2023 and 2022.

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