Shore Bancshares, Inc. announced its wholly owned subsidiary, The Talbot Bank of Easton, Md. entered into a consent order with the Federal Deposit Insurance Corporation and the Commissioner of Financial Regulation of Maryland.
The agreement covers including improving credit quality and reviewing and revising certain of the Bank’s policies and procedures.
Shore also owns CNB bank branches in central Delaware and Maryland that were not part of the order.
Patrick M. Bilbrough, CEO of the bank, said: “Everyone is familiar with the fact that the local and national economies have experienced a very difficult time. No bank has been immune from the challenges created by the economic downturn. The bank, like most businesses, is facing challenges. As we deal with those challenges, we are working closely with the FDIC and the commissioner to make sure that we handle these challenges in the correct way and in a timely manner.”
Shore noted that despite the economic problems encountered over the last several years, the Bank had a Tier 1 leverage ratio of 8.24% and a total risk based capital ratio of 12.38% at the end of the first quarter of 2013 which exceeds the regulatory requirement of the consent order as well as internal levels set by the bank. Additionally, the Company reported net income for the first quarter of 2013 reflecting an improvement in credit quality.
Bilbrough further noted: “While these types of agreements have become somewhat commonplace in the banking industry over the last three years, every member of our board and management team is focused and committed to working with our regulators to continue to resolve the issues facing the Bank and meeting all the terms and conditions of the Consent Order. At the same time, we are committed to continuing to provide to our customers the superior care and service levels to which they are accustomed.”
The Bank is a member of the Shore Bancshares family of companies, the largest independent financial services company that offers banking, insurance and wealth management services to families and businesses on the Delmarva Peninsula.
A holding company with $1.1 billion in assets, the Shore Bancshares family of companies also includes CNB, Wye Financial & Trust, Avon-Dixon Agency, LLC, Elliott Wilson Insurance, LLC and Jack Martin & Associates, Inc.
