EASTON, Md., Dec. 17, 2018 /PRNewswire/ -- On December 17, 2018, Shore Bancshares, Inc. (the
"Company" or "Shore Bancshares") and The Avon-Dixon Agency, LLC,
the Company's wholly-owned insurance producer firm ("Avon-Dixon"),
entered into an Asset Purchase Agreement (the "Purchase Agreement")
with Avon-Dixon, an Alera
Group Agency, LLC ("Alera"), a
Delaware limited liability company
and subsidiary of Alera Group,
Inc. ("Alera Group"), pursuant to which Alera
will purchase substantially all of the assets used in the operation
of Avon-Dixon's insurance business (the "Acquisition").
Subject to certain adjustments set forth in the Purchase Agreement,
the Company will receive net proceeds of approximately $26.9 million on the closing date of the
Acquisition. Subject to customary closing conditions, the
Acquisition is expected to be completed before the end of fiscal
2018.
"We feel strongly that this is a great result for both Shore
Bancshares and Avon-Dixon," said Lloyd L.
(Scott) Beatty, President and CEO of Shore Bancshares.
"The transaction will substantially increase the Company's
regulatory capital which will enable us to expand our banking
activities. The association with the Alera Group will afford
the agency many new opportunities for growth. The entire team
will remain in place and Rich Trippe
will remain as the managing partner
of the agency."
Mr. Trippe added, "Avon-Dixon has enjoyed a long and beneficial
relationship with Shore Bancshares, during which the agency
increased local presence while growing significantly. Now, we
are tremendously excited about our future as a partner in Alera
Group's nationwide network of insurance agencies. Joining
Alera Group gives us the resources, technical expertise and best
practices of a larger national firm, while maintaining the personal
local service our clients have come to expect. We will remain
Avon-Dixon, a local insurance presence since 1850."
Separately, Shore United Bank, the Company's wholly-owned bank
subsidiary (the "Bank") appointed Mr. Beatty to be the Bank's Chief
Executive Officer, with such appointment effective as of
December 17, 2018.
About Shore Bancshares, Inc.
Shore Bancshares is a financial holding company headquartered in
Easton, Maryland and is the
largest independent bank holding company located on Maryland's Eastern Shore. It is the
parent company of Shore United Bank; one retail insurance producer
firm, Avon-Dixon, with two specialty lines, Elliott Wilson
Insurance (Trucking) and Jack Martin Associates (Marine); and an
insurance premium finance company, Mubell Finance, LLC. Shore
Bancshares engages in trust and wealth management services through
Wye Financial & Trust, a division of Shore United Bank.
Additional information is available
at www.shorebancshares.com.
Forward-Looking Statements
The statements contained herein that are not historical facts
are forward-looking statements (as defined by the Private
Securities Litigation Reform Act of 1995) based on management's
current expectations and beliefs concerning future developments and
their potential effects on the Company. Such statements
involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of the
Company. There can be no assurance that future developments
affecting the Company will be the same as those anticipated by
management. These statements are evidenced by terms such as
"anticipate," "estimate," "should," "expect," "believe," "intend,"
and similar expressions. Although these statements reflect
management's good faith beliefs and projections, they are not
guarantees of future performance and they may not prove true.
These projections involve risk and uncertainties that could cause
actual results to differ materially from those addressed in the
forward-looking statements. For a discussion of these risks
and uncertainties, see the section of the periodic reports filed by
Shore Bancshares, Inc. with the Securities and Exchange Commission
entitled "Risk Factors".
The Company specifically disclaims any obligation to update any
factors or to publicly announce the result of revisions to any of
the forward-looking statements included herein to reflect future
events or developments.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sale-of-insurance-subsidiary-the-avon-dixon-agency-llc-300767778.html
SOURCE Shore Bancshares, Inc.