A Maryland based financial services company said it has purchased two insurance agencies with the aim of growing its geographic scope and insurance revenue, and entering the wholesale insurance business.
Easton, Md.-based Shore Bancshares Inc. said its has acquired TSGIA Inc. & Subsidiaries of Salisbury, Md., and Jack Martin & Associates Inc. of Annapolis, Md. No financial terms were disclosed.
TSGIA is a 30 year-old regional wholesale agency with over $6.5 million in revenue and a staff of 40, Shore Bancshares said.
Jack Martin, founded in the 1920′s, is a marine insurance agency in the mid-Atlantic region. The 12-person agency produces approximately $2 million in annual revenue,
“We believe these moves will substantially diversify both the sources of insurance revenue and the geographic scope of our growing line of fee-based businesses,” said W. Moorhead Vermilye, president and chief executive officer of Shore Bancshares.
Terry M. Mead, CEO of Shore Bancshares insurance subsidiaries said both of the acquisitions are expected to be immediately accretive to earnings. He said the acquisition of Jack Martin would double the size of the current book for marine related business and the wholesale operation would create significant growth opportunities in a mach wider geographic area.
The wholesale operation will be headed by Edward A. Dickerson, the CEO of TSGIA, who was named CEO of wholesale operations. The wholesale unit will be managed separately from the retail units.
The bank said the principals and staff of both agencies would be retained.
In addition to the new acquisitions, Shore Bancshares is the parent of Avon Dixon Agency, LLC, and Elliott Wilson Insurance, LLC insurance agencies.
The firm also encompasses three banks, The Talbot Bank; The Centreville National Bank of Maryland; and The Felton Bank. It also operates an insurance premium finance company named Mubell Finance LLC; a mortgage company, Wye Mortgage Group, and a wealth management and investment advisory company, Wye Trust Services.
As of 2005, the company said it has assets of $812 million and deposits of approximately $679 million.