Hair of the Dog for K Bank

If you look at the list of Maryland banks that I posted, you'll see that K Bank is one of the more poorly capitalized institutions in the area. K Bank, a regional entity located in the Baltimore metro area, has been afflicted with a portfolio of low quality real estate development loans. Per K Bank's most recent call report, liabilities have reached 94.4% of its total assets, 5.4% of its assets have reached non-accrual status, and 4.4% of assets are 30-89 days late, casting significant doubt on K Bank's ability to survive. In fact, the situation has become so dire, that the FDIC issued a Cease and Desist order on 3/10/09 accusing the bank of unsound practices.

I'm no MBA, but I would think it would behoove K Bank to concentrate on improving the quality of future loans. According to K Bank's website, I would be very wrong:

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