The deal to buy 1st Mariner Bank started with an irresistible offer — to two men who had nothing to do with the company.
Howard Feinglass, a Baltimore native running a New York investment firm, saw potential in the struggling bank headquartered near Canton's waterfront. He wanted to help recapitalize it in exchange for part ownership. And he wanted local bankers Jack E. Steil and Robert D. Kunisch Jr. on board.
He asked them at an ideal time, just as the bankers' employer was getting bought out by a bigger player for the second time in their careers.
"Having worked for two smaller regional banks like Wilmington Trust and before then, Mercantile, and having twice been acquired by larger out-of-state banks ... I really wanted to find an opportunity to control our destiny," Kunisch said.
But getting within shouting distance of the finish line took longer than he or Steil ever imagined.
Last Monday — more than three years after that first conversation — 1st Mariner's parent company announced a deal to sell the bank to Feinglass' Priam Capital and a group of other investors, who in turn agreed to recapitalize 1st Mariner with $85 million to $100 million of much-needed cash.
The deal's big players are mostly New York firms. But more than a dozen investors contributing millions of dollars are local, Feinglass said.
"That was one of the reasons that we were prepared to invest so much money — because we had that local support," he said.
Among those putting up their own money were Steil, 67, and Kunisch, 46. If the deal closes, they also would run the bank — Steil as chairman and CEO, Kunisch as president and chief operating officer.
Each declined to disclose how much he is investing.
Priam's earlier effort to get a partial stake, which hinged on 1st Mariner's parent raising more than $100 million in additional capital from other sources, fell through in 2012. By last summer, a deal seemed so unlikely that Steil and Kunisch threw in the towel and looked at other Maryland bank possibilities.
Then 1st Mariner's parent had a bad third quarter as mortgage rates rose, slicing new loan activity. And a deadline loomed for interest payments it could not afford.
The group tried again.
Steil chuckled ruefully as he recalled how quickly he'd thought a 1st Mariner deal would happen originally.
"Should have taken about six months," he said.
Even now, it isn't a done deal, and not just because regulators must approve it. The bank actually will be auctioned off as part of the bankruptcy of its parent, First Mariner Bancorp.
The bank itself is not part of the bankruptcy, and First Mariner officials stressed that customers, vendors and employees would not be affected.
The deal makes the investor group's nearly $4.8 million offer the initial bid in the auction. Whether competitors emerge remains to be seen.
But recent events feel like a major step to the group — at long last. Some otherwise interested investors dropped out over the years because they couldn't hang on through all the uncertainty.
One who stuck with it is Josh Fidler, co-chairman of real estate developer Chesapeake Realty Partners in Owings Mills. Fidler, like other locals in the group, talks about the deal with a passion that transcends bottom-line considerations.