LTC Global purchased approximately 6.7% of the outstanding common stock of First Mariner Bancorp (NASDAQ: FMAR) according to a filing with the United States Securities and Exchange Commission. Last week, First Mariner Bancorp raised $10.9 million in a stock offering, which included LTC Global purchasing 1,184,863 shares of the common stock.
First Mariner Bank is the parent company of Next Generation Financial Services, a reverse mortgage lender which LTC Global recently acquired a majority share and is in the process of purchasing from the bank.
In an email sent to employees, the company said “LTC Global acquired the shares for investment purposes only and has no intention to control the bank or influence the bank’s management.”
First Mariner Bancorp entered into a cease and desist agreement with federal bank regulators requiring it to boost capital levels, improve earnings and reduce problem loans last year.
“We believe that the capital raised in this offering, when combined with the extinguishment of $20.0 million of trust preferred securities, significantly advances our efforts to recapitalize First Mariner Bancorp and 1st Mariner Bank,” said Edwin F. Hale, Sr., Chairman and CEO of First Mariner Bancorp in a statement about the offering. “We are particularly pleased with the offering’s results, considering the market conditions. The success of this offering gives us positive momentum and puts us in a better position to meet the capital levels required on June 30 in accordance with our regulatory commitments.”