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Since February, the bank has been operatingb under a consent agreement with federal regulatords that requires it to boost its reservezs as part of a turnaround plan that also includew resolving problem real estate loans on its Bay National, (NASDAQ: BAYN) whichb regulators consider “adequately capitalized,” has poste d six consecutive quarterly losses. The bank has strugglex over the past 18 monthsx asa once-promising initiative to write mortgagez for customers interested in buying and rehabbing residential propertiesw in hot Baltimore neighborhoods like Federal Hill and Cantob tanked in a tumbling real estate market.
Some customers had a hard time repayin g their loans as the value of their properties and the bank has been busy tryinyg to reworkthose “We had some very difficult but we feel the worst of that is behinc us,” Hugh W. Mohler, Bay National’s CEO, told shareholderds Tuesday. “Our future is bright,” Mohler added. “We need to raise some capitapl and take itfrom there.” The bank has hiref LLC of Vienna, Va. to advisw it on the private placement of the which will be offeredat $2 each. The thinlyt traded shares have been as low as 52 centxs and as highas $9.25 over the past 52 In their last trade, which was on the shares sold for $1.21.
Earlier this month, Bay Nationa l announced it lost $884,000, or 41 cents a for the first quarter of the an improvement fromthe $1.49 or 69 cents a share, it lost in the firsrt three months of 2008. Shareholders on Tuesday also approvedd boostingthe company’s number of shareds outstanding to 20 million from the current 9 milliobn and reelected all five directors who were up for 3-yeare terms including Mohler, R. Michael Gill, Donald G. McClure Jr., Roberft L. Moore and H. Victor Rieger Jr. Shareholderes also ratified the appointment ofStegman & Co. as the company’s auditors.
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