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More banking woes in 2010?

Maryland lost two community banks last year, and if Paul Joegriner’s predictions are right, the state will lose another two in 2010.

A former CEO of American Partners Bank(now called Waterfield Bank), Joegriner was the subject of a Wall Street Journal article in November highlighting people living off their severance packages while they looked for work.

Joegriner had been out of work since March 2008 and was quickly running through his $200,000 severance and family savings while he turned away jobs that paid less than his old position.

Now, it seems Joegriner has accepted a position with BankIntel, a banking think tank, which is launching a quarterly publication, Mid-Atlantic Banking Journal. (I couldn’t find any trace of the organization or the pub when I did a Web search, aside from info on Joegriner’s LinkedIn profile. I tried to reach Joegriner but didn’t hear back from him immediately).

Regardless, Joegriner is an industry veteran who also was a vice president at Chevy Chase Bank.  In an update he sent Friday on the state of the banking industry in Maryland based on second and third quarter data, here’s what he found:

The state of Maryland banks has seen a slow and steady decline. Between September 2008 and September 2009, Maryland banks had a 284% decrease in net income from a positive $60 million to a negative $109 million. If the tea leaves are correct, Maryland will lose at least 2 more banks in 2010. The regulatory agencies are under pressure to take action and clean up.

He pointed to declining deposits at local banks and declining loans and leases, which stemmed from increasing charge-offs for unpaid loans.

He explained that the Texas Ratio — a measure of a bank’s credit troubles — for all Maryland banks grew to 44 percent at the end of September 2009 compared to 29 percent the year before.

A measurement of 100 percent or more means banks might not be able to cover losses related to bad loans on their books.

Last year, nine banks received enforcement actions from federal regulators urging them to raise capital, get rid of problem loans and improve bank operations. He points to K Bank, Sykesville FSB and Eastern Savings Bank as those on the brink. He’s also got his eye on First Mariner Bank, Colombo Bank, Waterfield Bank and Ideal Federal Savings Bank.

We’ll be keeping our eyes peeled too.