First Mariner Ruling Complicates Stock Sales for Former Chief

First Mariner (FMAR) has successfully lobbied a bankruptcy court judge to approve a request that will make it difficult for the Baltimore company’s former chief executive to sell his stock.

Judge David Rice of the U.S. Bankruptcy Court District of Maryland approved First Mariner's temporary motion requiring large shareholders to notify the company if they want to sell their shares. This ruling applies to shareholders with at least 4.75% of First Mariner stock, or 963,443 shares.

Edwin Hale Sr., the $1 billion-asset company's founder and former CEO, is the only individual who fits this description, the bankruptcy petition says. Hale owned nearly 1.8 million shares in First Mariner stock as of Oct. 11, according to a regulatory filing.

First Mariner held more than $880 million in total deposits as of Feb. 10, the date the financial institution filed its bankruptcy petition. The bank has 16 branches throughout Maryland and a 12-branch mortgage group. The company has approximately 465 employees.

The company reported net losses in the second and third quarters as refinancing activity slowed dow. At. Dec. 31, the bank had a 3.28% Tier 1 leverage ratio and a 6.85% total risk-based capital ratio, according to regulatory filings.

Rice is scheduled to decide whether his ruling will become permanent on March 7.