First Shore Federal was founded in 1953 by a group of prominent local businessmen. Their purpose was to provide a source for home mortgages in the Salisbury area while offering a good dividend and federal deposit insurance for local savings customers. The association ended its first partial year of operation with assets of $174,420.90.

With eight offices across the Lower Eastern Shore, First Shore Federal continues to provide consumer banking services to the people of Delmarva’s Lower Shore. The association opened its present headquarters at 106 South Division Street, Salisbury in 1964. Additional branch locations opened at Civic Avenue, Salisbury, in 1974, Pocomoke City, in 1977, Snow Hill and Berlin in 1987, Ocean Pines in 1996, Fruitland in 2001 and its first Delaware branch opened in 2003 in Ocean View. The Berlin branch moved to 310 Franklin Avenue in 2006.

As of December 31, 2007, First Shore Federal had assets of $298,959,170, loans of $238,902,195, federally insured savings deposits of $252,641,679 and a strong capital position of $30,433,510 or 10.17% of assets – more than twice the level required by federal regulations.

The association has a reputation as a strong, well-capitalized thrift having earned a "five star institution" rating from Bauer Financial Reports, an independent financial analyst for many years.

In addition, First Shore Federal received a rating of "outstanding", the highest rating available from the Office of Thrift Supervision, in its most recent Community Reinvestment Act (CRA) examination. "An institution with this rating has an outstanding record of, and is a leader in, ascertaining and helping meet the credit needs of its community..." according to the report.

The association is active in numerous community programs and enhanced its reputation as a leading corporate citizen as it received the first-ever Maryland Business Philanthropy Award from the Maryland Chamber of Commerce. First Shore Federal was one of three businesses to receive this impressive award in November 2000. The association also received the Small Business of the Year Award from the Salisbury Chamber of Commerce in 1999.