The Company was incorporated under the laws of Maryland on March 15, 1996 and
is a financial holding company registered under the Bank Holding Company Act
of 1956, as amended (the “BHC Act”). The Company is the largest
independent financial holding company located on the Eastern Shore of Maryland.
The Company’s primary business is acting as the parent company to several
financial institution and insurance entities. The Company engages in the banking
business through CNB, a Maryland commercial bank with trust powers and The Talbot
Bank of Easton, Maryland, a Maryland commercial bank (“Talbot Bank”).
As used in this annual report, the term “Banks” refers to CNB and
Talbot Bank and Felton Bank for periods prior to January 1, 2011 and to CNB
and Talbot Bank for all other periods.
The Company engages in the insurance business through an insurance producer,
The Avon-Dixon Agency, LLC, a Maryland limited liability company, with two specialty
lines, trading as Elliot Wilson Insurance (Trucking) and Jack Martin & Associates
(Marine); and an insurance premium finance company, Mubell Finance, LLC, a Maryland
limited liability company, (all of the foregoing are collectively referred to
as the “Insurance Subsidiaries”).
The Company has two inactive subsidiaries, Wye Mortgage Group, LLC and Wye Financial
Services, Inc. which were organized under Maryland law.
Talbot Bank owns all of the issued and outstanding securities of Dover Street
Realty, Inc., a Maryland corporation that engages in the business of holding
and managing real property acquired by Talbot Bank as a result of loan foreclosures.
CNB is a Maryland chartered commercial bank with trust powers that commenced
operations in 1876. CNB was originally chartered as a national banking association
but converted to its present charter effective January 1, 2010. Talbot Bank
is a Maryland chartered commercial bank that commenced operations in 1885 and
was acquired by the Company in its December 2000 merger with Talbot Bancshares,
Inc. The Banks operate 18 full service branches and 20 ATMs and provide a full
range of commercial and consumer banking products and services to individuals,
businesses, and other organizations in Kent County, Queen Anne’s County,
Caroline County, Talbot County and Dorchester County in Maryland and in Kent
County, Delaware. The Banks’ deposits are insured by the Federal Deposit
Insurance Corporation (the “FDIC”).
The Banks are independent community banks that serve businesses and individuals
in their respective market areas. Services offered are essentially the same
as those offered by larger regional institutions that compete with the Banks.
Services provided to businesses include commercial checking, savings, certificates
of deposit and overnight investment sweep accounts. The Banks offer all forms
of commercial lending, including secured and unsecured loans, working capital
loans, lines of credit, term loans, accounts receivable financing, real estate
acquisition and development, construction loans and letters of credit. Merchant
credit card clearing services are available as well as direct deposit of payroll,
internet banking and telephone banking services.
Services to individuals include checking accounts, various savings programs,
mortgage loans, home improvement loans, installment and other personal loans,
credit cards, personal lines of credit, automobile and other consumer financing,
safe deposit boxes, debit cards, 24-hour telephone banking, internet banking,
mobile banking, and 24-hour automatic teller machine services. The Banks also
offer nondeposit products, such as mutual funds and annuities, and discount
brokerage services to their customers. Additionally, the Banks have Saturday
hours and extended hours on certain evenings during the week for added customer
convenience.
2% 
5.34 %