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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
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 ten 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 190,166 shares remained available for grant at December 31, 2024.
The Company assumed 3,977 shares of restricted stock and 90,783 of restricted stock units at a fair value of $11.56 per share as a result of the merger with TCFC. The vesting period for the outstanding restricted stock grants is between three and five years. The vesting period for restricted stock units and performance stock units is between one to three years. The recipients of restricted stock units do not have any stockholder rights, including voting, dividend, or liquidation rights, with respect to the shares underlying awarded restricted stock units, until the recipient becomes the record holder of those shares.
The following table presents stock-based compensation expense related to the 2016 Equity Plan, included in the consolidated statements of income, for each of the periods indicated.
($ in thousands)December 31, 2024December 31, 2023
Stock-based compensation expense$1,730 $1,174 
The following table presents the total stock-based compensation expense related to unvested awards that has not yet been recognized at December 31, 2024 and 2023, and the weighted-average period over which the expense will be recognized.
At December 31, 2024
($ in thousands)Restricted StockRestricted Stock UnitsPerformance Stock Units
Unrecognized stock-based compensation expense$214 $855 $359 
Weighted-average period unrecognized expense is expected to be recognized0.4 years1.1 years2.2 years
At December 31, 2023
($ in thousands)Restricted StockRestricted Stock Units
Unrecognized stock-based compensation expense$175 $1,684 
Weighted-average period unrecognized expense is expected to be recognized0.5 years1.3 years
The following table summarizes the Company’s restricted stock, restricted stock unit and performance stock unit activity for the year ended December 31, 2024.
Restricted StockRestricted Stock UnitsPerformance Stock Units
Number of SharesWeighted-Average Grant Date Fair Value per ShareNumber of SharesWeighted-Average Grant Date Fair Value per ShareNumber of SharesWeighted-Average Grant Date Fair Value per Share
Outstanding at December 31, 202345,322 $15.42 165,055 $11.56 — $— 
Granted51,610 11.39 53,279 11.31 43,651 11.32 
Vested(45,322)15.39 (79,974)11.56 — — 
Forfeited— — (3,256)11.56 — — 
Outstanding at December 31, 202451,610 11.42 135,104 11.46 43,651 11.32 
There were no stock options outstanding as of or granted during the years ended December 31, 2024 or 2023.
The fair value of restricted stock awards that vested during the years ended December 31, 2024 and 2023 was $588 thousand and $615 thousand, respectively. The fair value of restricted stock unit awards that vested during the years ended December 31, 2024 and 2023 was $914 thousand and $178 thousand, respectively. No performance stock unit awards vested during the years ended December 31, 2024 and 2023.