First Mariner Bank Baltimore Maryland

 

 

Take a look

 

First Mariner Bank Baltimore, MD was founded in 1920.  The company has entered into a cease and desist agreement with the  regulators, this allowed the company to become a member of the problem bank list.  They were cited for having inadequate management, capital and excessive problem loans.  The Texas ratio is an astonishing 102%.  The stock is on the verge of being delisted.

The Q2 results were horrendous, they lost $17MM, which destroyed 40% of the equity in 3 months.  The equity position is $43MM.

The company has assets of $1.3B with $60MM in equity.

The problem loan portfolio consists of $40MM loans that are 30-90 days past due, with $46MM in non accruals and OREO of $21MM.

This bank has $86MM in problem loan and only $60MM in equity.

This bank is insolvent, why hasn’t it been closed down?

Not only can this management team make bad loans, they are experts at losing money.  Net income was ($46MM) in FY10, ($22MM) in FY09 and ($15MM) in FY 08.

They lost $24MM in Q3 2011 wiping out 76% of the remaining equity.  The resulting equity position is $36MM with $73MM in bad loans.

Luckily the executive compensation hasn’t suffered.

Edward Hale   made $544K

George Montatius made $264K

Mark Keidel made     $223K

These guys paid themselves pretty well for wiping out this 91 year old institution.

Harry, you got paid $544k to lose $83MM, you have it made.

They did a admirable job at sinking this ship.

True Mariners.

Is this your bank?

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