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HarVest Bank of Maryland has completed all of the plans under a consent order reached with the Federal Deposit Insurance Corp., John P. Hollerbach, the institution's president and CEO, said Thursday.

The consent order was agreed upon recently after HarVest's total risk-based capital ratio fell below the level needed for the institution to be considered "well-capitalized." The Gaithersburg bank is required to develop a plan that will allow it to meet and maintain a total risk-based capital ratio of at least 12 percent, among other requirements.

"We're feeling pretty good that we have completed all of the presentations necessary under the consent order," Hollerbach said. "Now we have targets we have to meet. ... We are confident that we will be able to work our way through it."

A bank must maintain a total risk-based capital ratio of at least 10 percent to be considered well-capitalized by regulators; from 8 percent to 10 percent is considered adequately capitalized. HarVest's risk-based capital dropped to 9.31 percent in the second quarter from 10.19 percent a year ago, according to the FDIC.

HarVest has lost money in recent quarters, and total assets declined to $207 million in June from $227.7 million in December.

HarVest's risk-based ratio was last above 12 percent in late 2007. Only two of the largest five banks in deposits based in Maryland had risk-based ratios above 12 percent in June.

Other Maryland banks under regulatory orders

First Mariner Bank of Baltimore, the second-largest Maryland bank, had a risk-based capital ratio of 9.7 percent in June, which was up from 8.71 percent a year earlier. Its parent, First Mariner Bancorp, is under a cease-and-desist order it received from federal regulators last year to boost capital levels and address other issues.

First Mariner lost $7.9 million in the first half of this year, greater than its $5.6 million loss in the first half of 2009, according to the FDIC. But the bank did boost assets by about $77 million in the second quarter.

The bank also has a problem with its stock price and recently received a letter from the Nasdaq exchange that it faces possible delisting after not maintaining a minimum price of $1 per share for 30 consecutive business days. First Mariner stock must close at $1 for 10 consecutive days by Feb. 22 to maintain Nasdaq listing.

Another Maryland institution under a federal order is Hull Federal Savings Bank in Baltimore. The bank agreed this week in an order from the Office of Thrift Supervision to submit a plan to maintain adequate capital levels, alter procedures on loan and lease losses and meet other requirements.

The three-employee bank lost $299,000 in the second quarter, following a loss of $159,000 in the first quarter.

Old Line Bancshares agrees to buy Maryland Bankcorp

Old Line Bancshares, the Bowie parent of Old Line Bank, agreed to purchase Maryland Bankcorp, the Lexington Park parent of Maryland Bank and Trust Co., for about $20 million, executives said this week. The deal is expected to close by March.

The acquisition will add 10 branches to Old Line Bank's 10-branch network. Old Line had total assets of $400.1 million in June, with Maryland Bankcorp reporting assets of $348.1 million.

Old Line had a total risk-based capital ratio of 12.19 percent in June, while Maryland Bankcorp's was at 14.49 percent. But the latter institution had a loss of $972,000 in the first half of this year, following a loss of $156,000 in the same period in 2009. Old Line showed profits of about $1 million each in the first halves of this year and last year.

kshay@gazette.net