Since the release of the announcement, we've received some inquiries from customers. Here are some of the most common questions.
Q. What have the FDIC and the Maryland Division of Financial Regulation ordered and why?
A. The regulators have directed 1st Mariner Bank to increase its capitalization, improve earnings, reduce non-performing loans, strengthen management policies and practices, and reduce reliance on non-core funding. They have set a timetable extending through June 30, 2010 for the bank to accomplish these goals.
Q. How will this effect me as a customer?
A. This will have no effect on customers. Accounts at 1st Mariner Bank continue to be insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC). IRA accounts continue to be separately insured by the FDIC up to $250,000 per depositor. For more information on this program, go to our FDIC Coverage page on the web site.
Q. How can I check to see if I have full deposit insurance on my bank accounts?
A. The FDIC's Electronic Deposit Insurance Estimator (EDIE) is an interactive application that can help you learn about deposit insurance and calculate the insurance coverage of your accounts.
Q. How is 1st Mariner responding to the regulators’ order?
A. Prior to the regulators’ order, 1st Mariner had established a compliance committee made up entirely of independent directors who will oversee and monitor compliance with the order. Also prior to the issuance of the order, 1st Mariner’s Board and management had already taken steps to devise and implement strategies to address the issues noted in the order.
Q. How does 1st Mariner plan to raise capital?
A. The bank plans to increase its capitalization through a combination of capital-raising efforts, which include conventional efforts in public and private markets as well as the sale of assets. We estimate that we will need to raise $10 million by June 30, 2010 to achieve the specified capitalization. We believe that goal is entirely achievable.