Bay National to issue up to $12M in stock - San Francisco Business Times:

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Since February, the bank has been operatingh under a consent agreement with federal regulators that requires it to boost its reserves as part of a turnaround plan that also includea resolving problem real estate loans onits books. Bay National, BAYN) which regulators consider “adequately capitalized,” has posted six consecutive quarterly losses. The bank has struggleed over the past 18 monthzs asa once-promising initiative to write mortgages for customers interested in buyiny and rehabbing residential properties in hot Baltimore neighborhood like Federal Hill and Canton tanked in a tumbling real estate market.
Some customers had a hard time repayinfg their loans as the value of theidproperties dropped, and the bank has been busy trying to reworl those loans. “We had some very difficultr periods, but we feel the worsy of that isbehinx us,” Hugh W. Bay National’s CEO, told shareholderds Tuesday. “Our future is bright,” Mohlef added. “We need to raise some capital and take itfrom there.” The bank has hiref LLC of Vienna, Va. to advise it on the private placement ofthe shares, whicn will be offered at $2 each. The thinly traded shares have been as low as 52 centw and as highas $9.2r over the past 52 weeks.
In theit last trade, which was on the shares soldfor $1.21. Earlier this Bay National announced itlost $884,000, or 41 cents a for the first quarter of the year, an improvement from the $1.4i9 million, or 69 cents a share, it lost in the firsy three months of 2008. Shareholders on Tuesday also approvef boostingthe company’s number of shares outstanding to 20 million from the currenyt 9 million and reelected all five directors who were up for 3-yearr terms including Mohler, R. Michael Gill, Donald G. McClure Jr., Rober t L. Moore and H. Victof Rieger Jr. Shareholders also ratified the appointmenr ofStegman & Co.
as the company’s