Additional comments about the FDIC Agreement

by Kevin Lynch 22. September 2009

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.


Recent Regulatory Agreement- Comments from our COO

by Kevin Lynch 22. September 2009

Late yesterday, the Bank announced that it had entered into an agreement, issued by both the FDIC and the Maryland Division of Financial Regulation, called a Cease and Desist Order. The primary points of the order require the Bank to increase its capital levels, reduce our level of non-performing assets, and enhance our liquidity. The formal agreement between the bank and the regulators can be found here.

Mark Keidel, the Chief Operating Officer of the Bank, has provided clarification on some points of the agreement that may not have been clear in the reporting by the media. We want to share those with you.

  • 1st Mariner management has been working closely and in cooperation with regulators from the FDIC who oversee the bank. We've been actively working with the FDIC to determine the goals and objectives in the Order. We've agreed to targets that we are comfortable we can achieve in those timeframes.
  • We have already instituted a number of FDIC recommendations, even prior to the agency issuing the order. For example, the order requires that we charge-off all loans classified as “loss” in the March 2009 regulatory exam within 10 days of this order. We actually did that prior to signing the Order.
  • There is no impact to our current operations and all deposit insurance remains in place.

Like many of our peer banks, both large and small, we have dealt with economic conditions unlike any experienced in recent memory. We are working hard to rebuild the bank and make it a stronger, even more vibrant member of the Baltimore business community. We welcome your questions and comments.

Destroy a Credit Card Securely

by Admin 10. September 2009

Identity theft can still happen, which is why it is very important to know how to properly protect yourself. To date, there are many compaines that provide safety and security from identity theft, but the safest option still starts with you properly securing your financial information. A common means for thieves to steal your identity is through improper disposal of credit cards and their statements.

In the video below, Cynthia Drake demonstarates Bargaineering blogger Jim Wang's method for how to destroy a credit card properly which entails 15 precise cuts with a pair of kitchen scissors.



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