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U.S. Securities and Exchange Commission
Soured loans deepen Elkton-based Cecil Bank troubles

When Cecil Bancorp issued its last annual report two years ago, its CEO acknowledged the bank's struggle with "problem assets" but emphasized that the parent of Cecil Bank remained well-capitalized. Two years later, the bad loans and foreclosed real estate continue to mount — accounting for nearly 25 percent of assets as of March 31 — and after losing more money in the first three months of the year, the bank now is considered undercapitalized by bank regulators. Both the Elkton-based bank and its parent company have been operating under orders from federal and state banking regulators since mid-2010 to develop a plan to maintain adequate capital. Cecil Bank is...