What are Shore Bancshares Inc's Business Segments?
Banking Products and Services
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.
Lending Activities
The Banks originate secured and unsecured loans for business purposes. Commercial
loans are typically secured by real estate, accounts receivable, inventory, equipment
and/or other assets of the business. Commercial loans generally involve a greater
degree of credit risk than one to four family residential mortgage loans. Repayment
is often dependent upon the successful operation of the business and may be affected
by adverse conditions in the local economy or real estate market. The financial
condition and cash flow of commercial borrowers is therefore carefully analyzed
during the loan approval process, and continues to be monitored by obtaining business
financial statements, personal financial statements and income tax returns. The
frequency of this ongoing analysis depends upon the size and complexity of the
credit and collateral that secures the loan. It is also the Banks’ general
policy to obtain personal guarantees from the principals of the commercial loan
borrowers.
The Banks’ commercial real estate loans are primarily secured by land for
residential and commercial development, agricultural purpose properties, service
industry buildings such as restaurants and motels, retail buildings and general
purpose business space. The Banks attempt to mitigate the risks associated with
these loans through thorough financial analyses, conservative underwriting procedures,
including loan to value ratio standards, obtaining additional collateral, closely
monitoring construction projects to control disbursement of funds on loans, and
management’s knowledge of the local economy in which the Banks lend.
The Banks provide residential real estate construction loans to builders and individuals
for single family dwellings. Residential construction loans are usually granted
based upon “as completed” appraisals and are secured by the property
under construction. Additional collateral may be taken if loan to value ratios
exceed 80%. Site inspections are performed to determine pre-specified stages of
completion before loan proceeds are disbursed. These loans typically have maturities
of six to 12 months and may have fixed or variable rate features. Permanent financing
options for individuals include fixed and variable rate loans with three- and
five-year balloon features and one-, three- and five-year adjustable rate mortgage
loans. The risk of loss associated with real estate construction lending is controlled
through conservative underwriting procedures such as loan to value ratios of 80%
or less at origination, obtaining additional collateral when prudent, and closely
monitoring construction projects to control disbursement of funds on loans.
The Banks originate fixed and variable rate residential mortgage loans. As with
any consumer loan, repayment is dependent upon the borrower’s continuing
financial stability, which can be adversely impacted by job loss, divorce, illness,
or personal bankruptcy, among other factors. Underwriting standards recommend
loan to value ratios not to exceed 80% at origination based on appraisals performed
by approved appraisers. The Banks rely on title insurance to protect their lien
priorities and protect the property securing the loans by requiring fire and casualty
insurance.
A variety of consumer loans are offered to customers, including home equity loans,
credit cards and other secured and unsecured lines of credit and term loans. Careful
analysis of an applicant’s creditworthiness is performed before granting
credit, and ongoing monitoring of loans outstanding is performed in an effort
to minimize risk of loss by identifying problem loans early.
Deposit Activities
The Banks offer a full array of deposit products including checking, savings and
money market accounts, and regular and IRA certificates of deposit. The Banks
also offer the CDARS program, providing up to $50 million of FDIC insurance to
our customers. In addition, we offer our commercial customers packages which include
cash management services and various checking opportunities.
Trust Services
CNB has a trust department through which it markets trust, asset management and
financial planning services to customers within our market areas using the trade
name Wye Financial & Trust.
Insurance Products and Services
The Insurance Subsidiaries offer a full range of insurance products and services
to customers throughout the Delmarva Region. The insurance entity of Avon Dixon
offers coverage under the categories of personal, business, benefits, commercial
trucking, and marine which are provided below:
Personal
-Auto -Health/Dental -Long-Term Care -Travel
-Boat/Yacht -Home -Motorcycle & ATV -Umbrella
-Flood -Life -Recreational Vehicle
Business
-Auto -Directors & Officers -Foreign Liability -Marine & Boat builders
-Contractors -Excess Liability -General Liability -Local/Long-Haul Trucking
-Cyber Liability -Farm -Workers Compensation
Benefits
-Health/Dental -Medicare & Supplemental -Group Dental
-Annuities Prescription Plans -Voluntary Benefits
-Long-Term Care -Group Health -Life
Commercial Trucking
-Primary Liability -Physical Damage -Motor Truck Cargo -Occupational/Accidental
-Non-Trucking Liability (comprehensive & collision) -Surety Bonds
-Excess/Umbrella -General Liability -Workers Compensation
Marine
-Yachts -Ocean Voyaging
-Boats -Grand Prix Yacht Racing
-Charter
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