First Mariner Bancorp
's deal with a New York investment firm that would give the Baltimore institution a much-needed cash infusion sets two key deadlines for the company to raise additional capital, according to regulatory filings released Monday.
Under a deal announced last week, Priam Capital said it would pump $36.4 million into the bank in return of an ownership stake of nearly 25 percent. In return, First Mariner will have to secure an additional $123.6 million of capital raised from other sources. The deal also requires bank founder Edwin F. Hale Sr.
to step down as chairman and chief executive officer.
Regulatory filings show that the deal could be terminated if First Mariner does not raise at least $70.3 million by July 18 or the entire $123.6 million by Sept. 1. The agreement calls for the transaction to close by Oct. 16.
First Mariner has been under orders by federal regulators to raise capital since September 2009. While the company has raised at least $25 million, it has not been enough to meet regulatory-mandated capital levels.
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