First Mariner Bancorp raises $3.9 million in stock offering

Parent of 1st Mariner Bank will offer nearly 14 million shares to public

March 26, 2010|By Lorraine Mirabella |

The parent of 1st Mariner Bank has raised $3.9 million in a common stock offering to existing shareholders, so far falling short in a plan to raise up to $20 million to boost capital and ensure survival of Baltimore's largest independent bank.

The parent company, First Mariner Bancorp, said Friday it is now offering nearly 14 million shares to the public at $1.15 per share in a sale that will end April 12. It must raise a minimum of $10 million total to complete the two offerings, including selling more than 5 million shares of common stock to the public. The company said it has received preliminary public subscriptions for 4.3 million shares totaling $5 million.

1st Mariner has been operating under regulatory pressure to boost capital. In seeking shareholder approval to conduct the stock offering, the company had warned that the bank might otherwise be forced to find a merger partner or liquidate.

In Friday's announcement, Edwin F. Hale Sr., the bank holding company's chairman and chief executive, said he is "pleased with the level of participation" in the offering as well as the amount of public offering subscriptions.

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