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.