First Mariner Bancorp Files for Bankruptcy

The parent company of 1st Mariner Bank announced Monday that it was filing for bankruptcy and planned to sell the bank to a group of investors, including some from Baltimore.

First Mariner Bancorp, which owns 1st Mariner Bank, reported that it filed for Chapter 11 protection and plans to reorganize its assets, in a company statement. The statement clarified that the bank holding company was filing for bankruptcy, not the bank itself.

1st Mariner Bank will be sold to investors who have agreed to provide a $100 million infusion of capital, the statement said.

"There will be absolutely no interruption in services to customers, deposits will continue to be accepted, our branches and ATMs will continue to operate as usual and the bank will continue to deliver on its commitments to loan applicants and vendors throughout the reorganization," Mark Keidel, interim president of 1st Mariner Bank, said in the statement.

1st Mariner Bank bills itself as a "hometown community bank," headquartered in Baltimore City and serving central Maryland. It operates 16 branches, with locations in Anne Arundel, Baltimore, Carroll, Harford and Howard counties and Baltimore City. Ravens quarterback Joe Flacco has endorsed the bank for the past two years.

Now, two New York investors who grew up in Baltimore are among those looking to infuse capital into the bank as part of the restructuring, First Mariner Bancorps reported.

The buyout involves investors purchasing shares of First Mariner Bancorp for $4.775 million and restructuring the bank, according to the Wall Street Journal.

Nothing will change for banking customers, employees and vendors, according to The Baltimore Sun, which reported the shareholders would be the ones impacted.

After the announcement about its plans to file for bankruptcy, First Mariner Bancorps' stock plummeted on Monday, in a "massive sell-off" that resulted in a 75 percent drop, Equities.com reported.