Talbot Bank in Maryland Hit with Consent Order

Talbot Bank in Easton, Md., has entered into an enforcement action with its regulators.

The $713 million-asset Shore Bancshares (SHBI) unit has signed a consent order with the Federal Deposit Insurance Corp. and its Maryland regulator, effective Friday. The order requires the bank to strengthen its lending policies and credit quality and forbids it from paying dividends or taking on debt without approval.

At March 31, Talbot had a Tier 1 leverage ratio of 8.24% and total risk-based capital of 12.38%. The ratios are higher than levels mandated by the consent order.

"The bank, like most businesses, is facing challenges," Patrick Bilbrough, Talbot's chief executive, said in a press release. "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."

Bilbrough became Talbot's CEO late last year. A director resigned in December over concerns about the bank's management, high levels of loan losses and liquidity issues.

Shore Bancshares earned $222,000 in the first quarter, compared to a $3 million loss a year earlier. Shore also owns the $459 million-asset CNB in Centreville, Md.