ShoreBank Corporation ended 2003 with $1.5 billion in consolidated assets, up $163 million from year-end 2002. Net loans grew by $108 million, primarily funded by an $83 million increase in deposits. ShoreBank Corporation's consolidated Shareholders Equity, excluding comprehensive income, grew by $5.3 million to $91.5 million at year-end. Net income accounted for all of the increase.

ShoreBank Corporation's Tier 1 Leverage Ratio was 7.60 percent at year-end, in excess of the 5 percent required to be considered well capitalized by federal bank regulators. ShoreBank's consolidated Total Capital to Risk-Weighted Assets Ratio ended the year at 12.25 percent, compared to the 10 percent required for well-capitalized bank holding companies. ShoreBank Corporation augmented its regulatory capital ratios in 2003 through the sale of $15 million in trust-preferred securities through a pool organized by Bear Stearns.

ShoreBank Corporation posted record earnings of $7 million in 2003, $318,000 more than last year. These earnings were driven by strong net interest income that was $1.9 million ahead of 2002 levels after provision for loan losses and $2.1 million in realized security gains.

Certification of Financial Results

I, Ronald Grzywinski, the chairman of the board and chief executive officer of ShoreBank Corporation, hereby certify that the information contained in the financial statements fairly presents, in all material respects, the financial position and results of operations of ShoreBank Corporation as of and for the periods presented.

Ronald Grzywinski, chairman of the board.