First Mariner Bancorp in Baltimore said Thursday that it has reached an extended deadline for a proposed recapitalization by a New York fund.
The $1.2 billion-asset company risked losing its agreement with Priam Capital Fund I LP after the banking company was delisted from the Nasdaq on Aug. 30. Instead, both parties agreed to extend the timeline for Priam's $36.4 million capital injection to Nov. 30, though the agreement remains contingent on First Mariner raising an additional $123.6 million. The deal was first struck April 19.
The amended agreement also lifts a solicitation restriction, clearing the way for the First Mariner to engage in other alternative capital-raising options.
The agreement, first reached in April, also calls for First Mariner to replace Edwin Hale, its chairman and chief executive. A replacement has yet to be announced.
"We remain fully committed to the transaction," said Priam Capital's managing partner, Howard Feinglass, in a press release.
At June, First Mariner had negative equity of $13.4 million and its bank was undercapitalized with a total risk-based capital ratio of 6.9%.
