Minnesota Twins owner infuses $50 million in Meridian Bank

The owner of the Minnesota Twins infused more than $50 million into Meridian Bank through the first two quarters of 2008, bank officials said Friday.

The capital comes as Meridian deals with another quarterly loss. Bank officials told the Phoenix Business Journal the bank lost $42.8 million in the second quarter and added more writedowns to its balance sheet. That follows a $14.1 million first-quarter loss, which was tied mostly to underperforming real estate loans.

The investment by the Carl R. Pohlad family, who own Meridian Bank, other financial service firms, and beverage, retail and entertainment companies, primarily will be poured into the Arizona market, which is still mired in a real estate crash.

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Meridian Bank Chairman and CEO Doug Hile said the added liquidity will shore up concerns in deterioration of the overall market and reinforces the bank's commitment to the region.

"The organization is well managed and has capital," he said, adding the money will be used for growth and possible acquisitions.

Meridian, now capitalized with $290 million, also took measures to transfer underperforming assets to its holding company, Marquette Financial Cos., and real estate investments to the family-owned company. Officials said the bank reduced problem assets by 72 percent in the second quarter.

Meridian, like other Arizona banks was hit hard by the real estate slowdown and credit crunch.

"None us expected to hit the wall going 50 miles per hour," Hile said. "The market here in Arizona, and across the U.S. is just shifting."

Although revenue is flat, Hile is optimistic about future performance and Phoenix's boom or bust real estate market.

"We expect positive earnings going forward," Hile said. "I'm not bullish about the real estate market but I believe it will snap back."