An all-out battle over Baltimore's last major independent bank broke out Monday in a contentious court hearing, leaving a judge to decide — potentially later this week — whether the institution is sold to an investment group with local ties or a Pennsylvania bank.
National Penn Bank — a regional bank that mostly operates in Pennsylvania — emerged as the highest bidder for 1st Mariner Bank Friday, dashing the hopes of group of investors who wanted the bank to remain based in Baltimore.
A bankruptcy judge had approved First Mariner Bancorp's request last month to sell its bank as part of the parent company's bankruptcy filing. Bids for the Baltimore-based bank, which is not part of the bankruptcy, were due Monday by 4 p.m.
The celebrity and John "Jack" Dwyer, chairman of the family of Capital Funding companies, purchased the property for $4.5 million in a 50-50 venture in January after being connected by Dimitris Spiliadis, whose family opened the 12-room hotel in 2011 and lost it to foreclosure last summer.
Compensation for First Mariner Bancorp's top executive reached $495,362 last year, about double from a year ago thanks to a bonus, according to a company filing with the Securities and Exchange Commission.
Ed Hale, the Baltimore developer and former CEO of First Mariner Bancorp, on Monday filed a $5 million lawsuit against the operators of 1st Mariner Arena, alleging the company is illegally using billboards that belong to him.
Citing a soured relationship with city government, Edwin F. Hale Sr., the Baltimore trucking magnate, developer and former CEO of First Mariner Bancorp, said Wednesday that he has moved his businesses to Baltimore County.
First Mariner Bancorp announced Friday that it is dropping its agreement with New York investment firm Priam Capital Fund to invest $36.4 million in the Baltimore-based bank holding company, citing improved results.
Edwin F. Hale Sr., the Baltimore trucking magnate and developer, said Friday that he has retired as chief executive and chairman of First Mariner Bancorp — the banking company he built from scratch and has struggled in the last several years to save from failure.
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.
First Mariner Bancorp Chairman Edwin F. Hale Sr. said the company is continuing to try to raise capital and to work with regulators who have had the largest Baltimore-based bank under heightened scrutiny for nearly two years.
Auditors have raised doubts about First Mariner Bancorp's ability to remain in business, according to financial statements that the largest Baltimore-based bank founded by prominent businessman Edwin F. Hale Sr. filed with regulators late Thursday.