Federal regulators are turning up the heat on First Mariner Bank, which got blasted by the housing collapse and has been unable to rebuild its balance sheet to the extent wanted by regulators despite months of trying. Last week the bank got a cease and desist order from the FDIC and Maryland regulators, which it reported today to the SEC. It's not time to assume a federal takeover of First Mariner. The bank has a couple options that could end up raising the money it needs. Nevertheless, the feds don't seem to have seen any progress and are giving the bank and boss Ed Hale some deadlines.

It has 30 days to present a plan showing it can raise its Tier 1 leverage capital ratio from the 6 percent range to 6.5 percent by April and 7.5 percent by July. (First Mariner says it has already presented such a plan.) Early next year it also has to submit a plan on cutting costs and otherwise improving the bottom line on the income statement.

The key components of the order:

Within 30 days of the end of the calendar year 2009, the Bank shall formulate and submit to the Regional Director of the New York Regional Office of the FDIC (“Regional Director”) and the Commissioner for review and comment a written profit plan and a realistic, comprehensive budget for all categories of income and expense for calendar year 2010. The plan required by this paragraph shall contain formal goals and strategies, be consistent with sound banking practices, reduce discretionary expenses, improve the Bank’s overall earnings and net interest income, and shall contain a description of the operating assumptions that form the basis for major projected income and expense components.

Within 30 days after the effective date of this ORDER, the Bank shall submit a written capital plan to the Regional Director and the Commissioner. The capital plan shall require the Bank, after establishing an Allowance for Loan and Lease Losses, to achieve and maintain, on or before June 30, 2010, its Tier 1 Leverage Capital ratio equal to or greater than 7.50 percent of the Bank’s Average Total Assets and its Total Risk-Based Capital ratio equal to or greater than 11 percent of the Bank’s Total Risk Weighted Assets.

Beginning on March 31, 2010, the Bank shall maintain its Tier 1 Leverage Capital ratio at a level equal to or greater than 6.5 percent and its Total Risk-Based Capital ratio at a level equal to or greater than 10 percent.