Cecil Bancorp names new CEO as institution works on turnaround

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logoGregg J. Wagner, 52, has been named s President, Chief Executive Officer and Director of Cecil Bancorp, Elkton, as the financial institution   struggles with losses.

Cecil  reported a net loss of $20.3 million in 2012 and a loss of $4.7 million in 2011, according to regulatory filings.

Wagner will report to the Board. He replaces Mary Halsey who has served as President and Chief Executive Officer since 1995. A regulatory filing also stated that Wagner will earn an annual base salary of $260,000 per year and a monthly automobile allowance of $650.

Halsey was named Chief Operating Officer and replaced Brian Hale who will now serve as the Chief Information Officer.

Halsey was also appointed as the Vice Chairman of the Board, replacing Mark Saunders who will remain on the board.

Wagner is a Certified Public Accountant with over 30 years of community banking experience. From June 2012 through January 2013 he was a Managing Partner with The Kafafian Group providing consulting services to the financial industry. Wagner was President and Chief Executive Officer of Brooklyn Federal Bancorp Inc. from 2011 until it sold to Investors Bancorp Inc. in January, 2012.

He faces a difficult task as the new CEO, due to a weak financial picture.

Last month, the report to regulators made the following statement.

“Due to our elevated level of problem assets and recurring operating losses, there is substantial doubt about our ability to continue as a going concern.  Management is taking steps to improve our financial condition.  The consolidated financial statements and the accompanying footnotes have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustment to reflect the possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going concern.”

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