First Mariner faces delisting warning

Stock has traded below minimum $1 a share

August 27, 2010|By Hanah Cho, The Baltimore Sun

The parent of 1st Mariner Bank, which is under pressure to raise capital, faces potential delisting from the Nasdaq stock trading market, the Baltimore bank holding company said Friday in a regulatory filing.

First Mariner Bancorp said it received a letter Tuesday from Nasdaq that its stock has not maintained a minimum bid price of $1 a share for 30 consecutive business days. Nasdaq has given the company until Feb. 22 to meet the exchange's minimum stock price requirement or face delisting.

1st Mariner Bank, Baltimore's largest independent financial institution, has been under federal orders to boost its capital levels under a "cease and desist" order issued last fall. While First Mariner has raised about $25 million since October, it fell short of meeting a key capital target by a June 30 deadline imposed by regulators.

Based on its assets on June 30, First Mariner said it would need to increase the bank's capital by at least $19.3 million to meet the capital requirements ordered by regulators, according to a recent regulatory filing.

The company said it has submitted a revised plan to raise capital to the Federal Deposit Insurance Corp. and the Maryland Division of Financial Regulation, which oversees the bank. The plan included asking for an extension until Sept. 30 to meet the capital requirements, according to the filing.

This is the second time during the past year that First Mariner has faced delisting.

First Mariner shares gained 8 cents, or 12 percent, to close Friday at 74 cents.

hanah.cho@baltsun.com

http://twitter.com/hanahcho

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