Towson, Md.-based Maryland Financial Bank plans to liquidate amid rising losses, the Baltimore Business Journal reported.
The company's shareholders approved a liquidation and dissolution plan, which is expected to be completed in the second or third quarter of 2019. The plan is still subject to regulatory approval.
Maryland Financial Bank's losses through Sept. 30 were $1.4 million, compared to $584,000 in losses for all of 2017, according to S&P Global Market Intelligence data. The bank's losses caused it to enter into a consent order, which required the bank to sell assets to increase capital ratios, with the Federal Deposit Insurance Corp. and Maryland Commissioner of Financial Regulation, according to Baltimore Business Journal. Under the liquidation and dissolution plan, the bank will sell all of its loans, return all deposits and pay 25 cents to $1 per share to shareholders, according to the report.
CEO Richard Hook IV blamed the slow regulatory approval process as MFB Acquisition Corp.'s planned acquisition of the bank did not work out. As losses kept rising, the board decided to initiate dissolution, according to the report.