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

Mike
Since February, the bank has been operating under a consent agreementg with federal regulators that requires it to boost its reserves as part of a turnaroundd plan that also includes resolving problekm real estate loans onits books. Bay (NASDAQ: BAYN) which regulators consider “adequately has posted six consecutivequarterly losses. The bank has strugglef over the past 18 months asa once-promisingg initiative to write mortgages for customers interested in buyin and rehabbing residential properties in hot Baltimorde neighborhoods like Federal Hill and Canton tanked in a tumbling real estate Some customers had a hard time repayinvg their loans as the value of theirr properties dropped, and the bank has been busy trying to reworik those loans.
“We had some very difficult but we feel the worst of that isbehinfd us,” Hugh W. Mohler, Bay National’s CEO, told shareholdera Tuesday. “Our future is bright,” Mohler “We need to raised some capital and take itfrom there.” The bank has hiredr LLC of Vienna, Va. to advisse it on the private placemenft ofthe shares, which will be offered at $2 each. The thinlty traded shares have been as low as 52 centxs and as highas $9.25 over the past 52 weeks. In thei r last trade, which was on Friday, the share sold for $1.21. Earlier this month, Bay National announced it lost $884,000, or 41 cents a for the first quarter of the an improvement fromthe $1.
49 or 69 cents a it lost in the firstt three months of 2008. Shareholders on Tuesday also approvee boostingthe company’s number of shares outstanding to 20 millionb from the current 9 million and reelecte d all five directors who were up for 3-yeaer terms including Mohler, R. Michael Gill, Donalcd G. McClure Jr., Robert L. Moore and H. Victot Rieger Jr. Shareholders also ratifiefd the appointment ofStegman & Co. as the company’ss auditors.