Hebron Savings Bank and Bay National Bank, the wholly-owned operating subsidiary of Bay National Corporation, are pleased to announce that the parties have entered into a definitive agreement pursuant to which Hebron Savings Bank will purchase substantially all the deposit base and assume certain loans of Bay National Bank’s Salisbury, Maryland branch. While this transaction is subject to regulatory approval, the acquisition is expected to close on or before September 30, 2010.
A Bay National Bank press release, trying to put out a positive spin, was issued earlier today and states:
Gregory W. Johnson, President and CEO of Hebron Savings Bank, said “Bay National Bank’s excellent customer base was a significant attraction to our Company in considering this transaction. We are extremely pleased to welcome the customers of Bay National Bank to Hebron Savings Bank, and we feel privileged to have the opportunity to support their financial needs. Hebron Savings Bank will work diligently to provide the same high quality, personalized level of service Bay National Bank’s customers have become accustomed to. Both banks will work closely to ensure that the transition is seamless.”
Bay National Bank, Lutherville, MD, was founded by Hugh W. Mohler (who owns 59,000 shares). For nearly two decades, Mohler lived in Salisbury and was president of Peninsula Bank. His wife Lucy, was the first executive director of the Community Foundation in Salisbury. Local Board members and investors of Bay National Bank include many Greater Salisbury Committee members including CPA Bob Moore, CPA Ed Rommel (who owns 52,500 shares), and local developer Bill Rinnier. Other local investors include John Lerch (who owns 52,000 shares), Bill & Jean Smith, Beulah Twilley , widow of Milford Twilley, who developed Twilley Center among many other local developments. Smaller investors and/or local advisory board members are:
Michael G. Abercrombie, Jr., Cato Gas & Oil
Richard S. Barr Jr., Barr International, Inc.
Laura Deeley Bren, Atlantic/Smith, Cropper & Deeley Insurance
M. J. Caldwell Jr., Esq., Attorney
Youssef S. Hafez, Ph.D., Lotus Realty
David J. Harkins, Harkins Concrete Construction, Inc.
William A. Johnston, Holt Paper & Chemical Company
Virginia H. Korff, Gay-Don, Inc
Gregory J. Langeler, Chesapeake Nurseries, Inc.
Michael P. Marshall, Marshall Management
Ryan T. McLaughlin, Dennis Sales, Ltd.
Michael S. Payne, J.D., Affiliated Power Purchasers Int’l.
W. Blair Rinnier, Rinnier Development Company
Richard "Dicky" J. Smith, Jr., Salisbury Auto Trim
City of Fruitland Council President Greg Olinde is a senior vice president at Bay National in Salisbury.
Bay National is selling the branch's $21 million deposit base and about 36 percent of its total loans to Hebron, according to a regulatory filing. The truth is Bay National has been operating under federal oversight since last year as it tries to recover from losses on bad mortgage loans.
Bay National Corp., the parent company of Bay National Bank, also said in a regulatory filing that it has been notified by the Nasdaq stock market that its stock faces a possible delisting because it fails to meet the exchange’s requirement in terms of shareholders’ equity.
Bay National stock (Nasdaq: BAYN) trades on Nasdaq’s Capital Market.
The exchange requires that listed companies have shareholders’ equity — which is a company’s total assets minus its total liabilities — of at least $2.5 million. Bay National had shareholders’ equity of a negative $992,000 as of Dec. 31, 2009. The company also failed to meet the exchange’s listing requirements for market capitalization and net income, which are alternatives to the shareholders’ equity requirement.
Bay National Corp. reported a net loss for the fourth quarter of $11.7 million or $5.43 per share, compared to a net loss of $1.0 million or $0.48 per share for the year-ago quarter.
In 2006-07 Bay national's stock was selling for $ 15 - 19 per share. Today it closed at just 86 cents per share. It's a safe bet all those local investors seriously wish they had held onto their checkbooks and not invested in Mohler's now failing bank!
http://baltimore.bizjournals.com/baltimore/stories/2010/04/19/daily8.html
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Mohler was an egotistical maniac when he lived in Salisbury. He was a smart but too ambitious for his own good. He went one step too far when he opened Bay National Bank after his stint at Mercantile in Baltimore didn't work out. Bet he wishes he could roll back the clock now and so do his investors. Good detective work Joe!
ReplyDeleteanother daytime bank robbery ...eh? good for HSB.
ReplyDeleteI am glad that the customers of Bay National now have a quality bank to be a part of. I am sure they will be pleased, I got my first account with Hebron five years ago and couldn't be happier with them. Hopefully the employees of Bay National get to keep their jobs somehow or at least land of their feet.
ReplyDeleteLooks like those local hot shots don't know their history -- it's "Second National" all over again.
ReplyDeleteIf Greg Olinde works there "Nuff Said".
ReplyDeleteC'mon Hugh -- share the wealth, baby!
ReplyDeleteSounds like a class action lawsuit is about to happen.
ReplyDeleteGreg Olinde helped fire John McDonnell( Fruitland City Mgr.) last week. Now it looks like he gets to see what it feels to go job hunting. Maybe he saw this coming and wanted to have a job waiting for hisself.
ReplyDeleteHow the mighty have fallen.
ReplyDeleteHugh Mohler did so much for our community. He truly inspired banks to give back to our town and to the people who live here. A role model for many. My heart goes out to he and Lucy. Bay National was a right idea at a wrong time.
ReplyDeleteCustomers of Bay National will be well served by Hebron Savings Bank. It is a quality, well managed institution that provides good service to its customers.
ReplyDeleteI am wondering about the Bank of Delmarva shares. Last I heard it was only about $4.00 and change per share, as at one time it was over $30.00 per share. Makes me think what I have left is basically worthless.
ReplyDeleteSeems like the guy who was running the show on the financial side of it suddenly "retired" in a few days notice by letter the end of last year. Makes you want to go HMMMM!
Hugh:
ReplyDeleteMaybe Frank Potter's bank will spot you some cash to right the ship. It's in Bedford Falls.
Hugh:
ReplyDeleteHave you tried to borrow funds from Harry Potter's bank in Bedford Falls? When my buddy tried to get a loan there he told him:
Why, George... you're worth more "dead than alive.
Yea, I got my money out of Second National right before it went south.
ReplyDeleteI don't think I've ever seen so many people take such glee in the demise of several careers, jobs and the reputations of some fine people, who have donated alot of time and energy to make Salisbury a better place.
ReplyDeleteWhat a shame so many losers feel they have to kick people when they are down.
11:47, I'm sorry. I didn't realize that just because someone donates time that it's okay for them to be thieves!
ReplyDeleteNo wonder the high and mighty ones in Salisbury get away with this stuff, they have people like you supporting and covering for them!
This is not the first incident like this either. You take a look at some of the non-profit organizations around Salisbury, see who is on the Board of Directors or in other powerful positions. Then research who USED to be active in those organizations and how things were done grass roots until these other people came along and not only changed how the organizations were run, but at the same time, booted very talented and TRUSTWORTHY people!
I know of one of these organizations where some "powerful" people came in and booted the main people only because of EGO, now that organization is dead in the water and accomplishing virtually nothing in respect to their purpose!
Money doesn't buy honesty and neither does popularity. In fact, sometimes it buys you just the opposite!
12:01.... You just proved my point. Gosh, you must have read a different story than me. I don't recall seeing where anyone was stealing, or was accused of theft or malfeasance or misappropriation of funds. The business failed and lots of people are going to be without jobs. Perhaps some deserve to be unemployed, but alot certainly don't either. Why take such joy in the banks downfall. 9 out of 10 start up businesses fail. So I guess all those people are thieves and dishonest too.
ReplyDeleteSincerely,
11:47
10:38-
ReplyDeleteThe Bank of Delmarva is the lead lender on that unsold condo on Riverside Drive, I think.
LOL
I have to say on Hugh Mohler's behalf, that I worked at Bay National for five years and he does right by his employees. In that respect he is a good man. I can't say more than that.
ReplyDeleteIf the Mohler's (Hugh does nothing without approval from Lucy) are so generous why would they open a bank to cater to businesses and only successful individuals. What does that say about them? Why were so many workers let go before Lucy's marketing job (@120K) was ended in April 2010. How much marketing could you do with a bank in the condition it is in? If the board was effective they would have replaced Hugh long ago.
ReplyDelete