Ed Hale bites his lip – This too will pass…
May 7th, 2007
Hale tries to weather real estate downturn
1st Mariner Bank Read more on “Soundtrack” here: Business Banking
Read: A message from Ed Hale… - it will give you some insight as to why he commands so much loyalty from the
And: 20061020 A nice quick profile of First Mariner’s Ed Hale
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For those of us who have followed Ed Hale’s banking career since the days of the Bank of Baltimore, adversity is not a problem for Mr. Hale. If anything it only makes him better.
The banking and financial services market has its up and downs. Many current folks who follow the markets have grown use to our current long stretch of good news and have no idea when to be alarmed and when to understand that economic markets adjust themselves from time to time and that is a good thing.
Writing for the
Edwin F. Hale Sr. stood before a few dozen shareholders and board members of his First Mariner Bank at its annual meeting last week, biting his lip.
The brash former ironworker, who has enjoyed tweaking the city's elite in his rise from blue collar to boardroom, usually delights in the spotlight. But not on this occasion.
"We've taken our lumps," Hale acknowledged. "Hopefully, this will be the end of it."
It was a humbling moment for Hale. First Mariner, the base of his empire, is struggling after a series of bad loans…
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First Mariner lost nearly $4 million in the fourth quarter and barely made money in the most recent quarter. Its stock has dropped more than 30 percent in the past six months.
Some of First Mariner's problems are the same faced by the banking industry in general amid a real estate crunch. Others have been of the bank's making.
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Industry-wide, during the final quarter of last year, the pace of loan-making was the slowest in five years and past-due loans had their biggest increase in six years, according to the Federal Deposit Insurance Corp.
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At 60 years old, Hale is trim and tough - he recently underwent shoulder surgery and to win a $1 bet from a friend attended a Lynyrd Skynyrd concert the next day.
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Corbyn Investment Management, a money manager in Lutherville, recently bought First Mariner stock. Michael J. Fusting, co-chief investment officer, said the bank is putting its loan problems behind it and has room for growth as other local institutions such as Mercantile Bank are sold to out-of-state acquirers.
"At this point, of course, you never know what the future holds," he said. "They've got more nonperforming loans than the average bank; we just don't think it's going to spin out of control."
Read the rest of her article here. Hale tries to weather real estate downturn
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