Feds order Maritime Savings Bank to merge or be sold
West Allis-based Maritime Savings Bank has been ordered to raise capital through a merger, acquisition or sale, according to an order issued by the federal Office of Thrift Supervision (OTS).
According to the order, Maritime Savings Bank must by recapitalized by June 30 by either merging with or being acquired by another financial institution or by selling its assets to another financial organization.
Maritime Savings Bank has until April 30 to submit a binding merger or acquisition agreement to the OTS, according to the order.
The result of any merger or acquisition needs to be that Maritime Savings Bank remains adequately capitalized for four consecutive quarters, the OTS said.
“Senior leadership currently is engaged in meaningful dialogue with several parties interested in aiding our recapitalization efforts,” the bank said in a statement. “The bank is pleased with these opportunities and is working diligently to meet the deadlines set in the latest directive. Since last fall, Maritime Savings Bank has made consistent progress toward improving its operations and performance. The bank has reduced its problem loan list for both residential and commercial loans. We continue to engage all parties to further strengthen the bank’s capital position.”
In November, Maritime Savings Bank was ordered by the OTS to raise capital. The federal agency said the bank was “significantly undercapitalized” at the time. Maritime was required to submit to the federal agency a capital restoration plan, which the OTS now says is insufficient.
In December, the bank named Peter Bildsten as its chief executive officer. Bildsten replaced Matthew Olsen, who had been the bank’s CEO since April 2009. Olsen has remained the bank’s president.