EX-99.1 2 firstmariner8krlspril2-13.htm firstmariner8krlspril2-13.htm
1st Mariner Bancorp Issues Amended Fourth Quarter 2012 Earnings Release

Baltimore, MD (April 2, 2013) – 1st Mariner Bancorp (OTCBB: FMAR), parent company of 1st Mariner Bank, today issued a correction to its previously issued press release announcing earnings for the quarter and year ended December 31, 2012. This corrected earnings release reduces non-interest income by $892 thousand for the year ended December 31, 2012. The reduction in non-interest income is related to adjustments on the gains on sales of mortgage loans and on the mark to market accounting of the related warehouse loans. The reduction of this gain was not reported in the Company’s initial earnings release that was issued on January 31, 2013, and was corrected by the Company in connection with the preparation of its audited financial statements for the year ended December 31, 2012. An amended earnings release reflecting these changes is presented in its entirety below:

1st Mariner Bancorp, parent company of 1st Mariner Bank, reported net income of $0.7 million for the fourth quarter of 2012, compared to a net loss of $4.0 million for the fourth quarter of 2011. For the year ended December 31, 2012, the Company reported net income of $16.1 million compared to a loss of $30.2 million for the year ended December 31, 2011.

Mark A. Keidel, 1st Mariner’s Chief Executive Officer, said, “2012 was a year of significant accomplishments for 1st Mariner. Our overall financial results were substantially improved and reflect the year’s robust mortgage banking activities, lower charges relating to problem assets as well as our operational efficiency initiatives. Importantly, we also increased our level of non CD deposits.”

Mr. Keidel added, “During the year, we originated a record $2.5 billion in gross origination volume for residential mortgages which produced over $50.5 million in non-interest income. Additionally our net charge offs in 2012 decreased just under $10 million while our cost of foreclosed properties declined $1.3 million.   Also during 2012, we continued to identify opportunities for improvements in operational performance. Among these improvements was the consolidation of over 46,000 square feet of office space as well as the successful conversion of our core data processing system.”

Mr. Keidel continued, “Our improved profitability has increased our regulatory capital ratios, but these ratios remain below the levels required by regulatory orders and we continue to work diligently to increase capital to levels required in our regulatory agreements in the future. We are in the process of evaluating the effectiveness of certain branches in our network and will consolidate three branches during 2013, as the needs of our customers are evolving and many are utilizing online, mobile and remote banking in lieu of physical branch locations. 

Net interest income for the fourth quarter of 2012 was $9.0 million compared to $7.6 million in the fourth quarter of 2011. The increase was due to higher balances of mortgage loans held for sale. The average balance of residential mortgage loans held for sale was $404.3 million for the fourth quarter of 2012 compared to $162.7 million for the fourth quarter of 2011. For the three months ended December 31, 2012, the average rate earned on residential mortgage warehouse loans was 3.85% and for the three months ended December 31, 2011, the rate was 3.92%. The average interest rate earned on all loans was 5.44% for the three months ended December 31, 2012 compared to 5.46% for the three months ended December 31, 2011. Interest expense on deposits was $3.1 million for the three months ended December 31, 2012 compared to $3.4 million for the three months ended December 31, 2011. The average rate paid on deposits decreased to 1.17% for the three months ended December 31, 2012, down from 1.47% for the three months ended December 31, 2011. This was due to higher rate certificates of deposit maturing during the year and being replaced with lower rate products.

Gross interest income was $13.0 million for the three months ended December 31, 2012 versus $12.0 million in the same period of 2011. The average yield on earning assets decreased to 4.61% for the three months ended December 31, 2012 compared to 4.96% for the three months ended December 31, 2011. Total average earning assets were $1.1 billion and $954.2 million for the three months ended December 31, 2012 and 2011, respectively. The growth in the volume of residential mortgage loans held for sale contributed to the overall increase in interest income for the three months ended December 31, 2012. However, this also caused the average rate on earning assets to decrease as the asset mix was concentrated more in lower yield residential mortgages and less on higher yield commercial loans.

For the year ended December 31, 2012, net interest income was $31.9 million compared to $28.2 million for the year ended December 31, 2011. The net interest margin was 3.14% for the year ended December 31, 2012 versus 3.03% for the same period in 2011. The increase was due to the higher volume of residential mortgage loans held for sale and lower interest rates paid on deposits. The average interest rate paid on deposits was 1.25% for the year ended December 31, 2012 versus 1.68% for the year ended December 31, 2011. Interest expense on deposits was $12.0 million for the year ended December 31, 2012 compared to $15.7 million for the year ended December 31, 2011.
 
 
 
 

 
 
 
Gross interest income was $47.7 million for the year ended December 31, 2012 versus $47.5 million in the same period of 2011. Total average earning assets were $1.0 billion and $929.8 million for the years ended December 31, 2012 and 2011, respectively. Average portfolio loans were $661.9 million for the year ended December 31, 2012 versus $753.3 million for the year ended December 31, 2011. Average residential mortgage loans held for sale were $277.0 million for the year ended December 31, 2012 compared to $89.8 million for the year ended December 31, 2011.

The provision for loan losses was $2.0 million for the three months ended December 31, 2012 versus $2.8 million for the three months ended December 31, 2011. Net charge-offs were $2.7 million for the three months ended December 31, 2012, a 13% decrease from the $3.1 million for the three months ended December 31, 2011. Costs related to foreclosed properties, including write-downs due to declining appraised values, amounted to $2.9 million for the three months ended December 31, 2012 compared to $1.2 million for the three months ended December 31, 2011. The increase was primarily due to a decline in appraised value on certain foreclosed properties. Combined credit- related costs (provision for loan losses and costs of foreclosed properties) amounted to $4.9 million for the three months ended December 31, 2012 versus $4.0 million for the three months ended December 31, 2011.

The provision for loan losses was $2.6 million for the year ended December 31, 2012 compared to $14.3 million for the year ended December 31, 2011. Net charge offs for the year ended December 31, 2012 were $4.9 million, a significant decrease from the $14.6 million incurred during the year ended December 31, 2011. Costs related to foreclosed properties, including write-downs due to declining appraised values, amounted to $6.5 million for the year ended December 31, 2012 versus $7.8 million recorded for the year ended December 31, 2011. Combined credit- related costs amounted to $9.1 million for the year ended December 31, 2012 compared to $22.1 million for the year ended December 31, 2011. As of December 31, 2012, the non-performing assets were $56.5 million, a 7% improvement over the $62.0 million of non-performing assets as of December 31, 2011.

Non-interest income was $16.0 million for the three months ended December 31, 2012. This is a 107% increase over the $7.7 million that was reported in the fourth quarter of 2011. Gross revenue from the mortgage banking activities was the reason for the increase, with $14.2 million recorded in the quarter ended December 31, 2012 versus $5.7 million in the quarter ended December 31, 2011. For the three months ended December 31, 2012, gross mortgage loan production volume was $742 million compared to $408 million for the three months ended December 31, 2011.

For the year ended December 31, 2012, non-interest income was $55.5 million, which is a $32.3 million improvement over the $23.2 million recorded in the year ended December 31, 2011. Increased gross mortgage banking revenue was the primary reason for the increase. For the year ended December 31, 2012, the gross revenue from mortgage banking activities was $49.7 million, a significant increase over the $13.6 million that was recorded in the year ended December 31, 2011. Mortgage loan production volume was $2.5 billion for the year ended December 31, 2012 versus $1.1 billion for the year ended December 31, 2011. In addition to the higher volume, the company experienced increased spreads on loans sold.

Non-interest expenses were $21.9 million for the three months ended December 31, 2012 compared to $17.1 million for the three months ended December 31, 2011. There were reductions in occupancy expense due to office consolidation and the sublet of remaining office space. Occupancy expenses were $2.1 million for the three months ended December 31, 2012 compared to $2.2 million for the three months ended December 31, 2011. Professional fees related to regulatory compliance, loan workouts, and efforts related to increasing capital levels were $2.2 million for the three months ended December 31, 2012 versus $2.8 million for the three months ended December 31, 2011. Costs related to foreclosed properties, including write-downs due to declining appraised values, amounted to $2.9 million for the three months ended December 31, 2012 compared to $1.2 million for the three months ended December 31, 2011. Amounts paid for FDIC insurance premiums remained high with $1.1 million incurred in the three months ended December 31, 2012 and $895 thousand incurred in the three months ended December 31, 2011. Corporate insurance expense increased as the renewal rates increased beginning in the third quarter. For the three months ended December 31, 2012 corporate insurance expense was $852 thousand compared to $526 thousand for the three months ended December 31, 2011.

For the year ended December 31, 2012, non-interest expenses were $68.6 million versus $68.0 million for the year ended December 31, 2011. Costs related to foreclosed properties, including write-downs due to declining appraised values, amounted to $6.5 million for the year ended December 31, 2012 versus $7.8 million recorded for the year ended December 31, 2011. FDIC insurance premiums remained high with $4.3 million incurred in the years ended December 31, 2012 and 2011. Corporate insurance increased during the quarter as the renewal premiums became effective in August. Corporate insurance expense was $2.4 million for the year ended December 31, 2012 compared to $1.6 million for the year ended December 31, 2011.
 
 
 
 

 

Comparing balance sheet data as of December 31, 2012 and 2011, total assets increased 17% to $1.38 billion, from the prior year’s $1.18 billion. The increase is due to a $221.3 million increase in loans held for sale that resulted from the high level of mortgage banking activity.

-  
Average earning assets were $1.1 billion for the fourth quarter of 2012, which was a 17% increase over the fourth quarter 2011 balance of $954.2 million. The increase was due to higher average loans held for sale that resulted from the higher mortgage banking activity.
 
-  
Total loans outstanding were $610.4 million as of December 31, 2012, down 13% from the $701.8 million reported in the prior year. This was due to loan maturities, loan sales, and reduced portfolio loan production.

-  
Total loans held for sale were $404.3 million as of December 31, 2012, an increase of 121% over the $183.0 million held for sale as of December 31, 2011. The increase was due to the high mortgage division production achieved during the year ended December 31, 2102. For the year ended December 31, 2012, gross mortgage loan production volume was $2.5 billion.

-  
The allowance for loan losses as of December 31, 2012 was $11.4 million, a decrease of 17% over the prior year’s $13.8 million. The decrease was due to lower loan balances as of December 31, 2012 and lower charge offs during the year. The allowance for loan losses as a percentage of total loans was 1.87% as of December 31, 2012, compared to 1.97% as of December 31, 2011.

-  
Total deposits increased 17% from $1.01 billion as of December 31, 2011 to $1.19 billion as of December 31, 2012. Money market and NOW accounts increased $27.3 million, from $131.1 million as of December 31, 2011 to $158.4 million as of December 31, 2012. Savings accounts increased $5.7 million from $55.0 million as of December 31, 2011 to $60.7 million as of December 31, 2012. Certificates of deposit were $857.7 million as of December 31, 2012, representing an increase of $129.3 million, or 15.1%, from the $728.4 million as of December 31, 2011.

-  
As of December 31, 2012, 1st Mariner Bank’s capital ratios were as follows: Total Risk Based Capital 7.3%; Tier 1 Risk Based Capital 6.1%; and Leverage 3.8%.
 
1st Mariner Bancorp is a bank holding company with total assets of $1.38 billion.  Its wholly owned banking subsidiary, 1st Mariner Bank, operates 21 full service bank branches in Baltimore, Anne Arundel, Harford, Howard, Talbot, and Carroll counties in Maryland, and the City of Baltimore. 1st Mariner Mortgage, a division of 1st Mariner Bank, operates retail offices in Central Maryland, the Eastern Shore of Maryland, and portions of Northern Virginia. 1st Mariner also operates direct marketing mortgage operations in Baltimore.  1st Mariner Bancorp’s common stock is quoted on the OTC Bulletin Board under the symbol “FMAR”. 1st Mariner’s Website address is www.1stMarinerBancorp.com, which includes comprehensive level investor information.

In addition to historical information, this press release contains forward-looking statements that involve risks and uncertainties, such as statements of the Company’s plans and expectations regarding the Company’s efforts to meet regulatory capital requirements established by the Federal Reserve and the FDIC, revenue growth, anticipated expenses, profitability of mortgage banking operations, and other unknown outcomes.  The Company’s actual results could differ materially from management’s expectations.  Factors that could contribute to those differences include, but are not limited to, the Company’s ability to increase its capital levels and those of 1st Mariner Bank, volatility in the financial markets, changes in regulations applicable to the Company’s business,  its concentration in real estate lending, increased competition, changes in technology, particularly Internet banking, impact of interest rates, and the possibility of economic recession or slowdown (which could impact credit quality, adequacy of loan loss reserve and loan growth).  Greater detail regarding these factors is provided in the forward looking statements and Risk Factors sections included in the reports filed by the Company with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 and the Company’s Quarterly Reports on Form 10-Q for the nine months ended September 30, 2012 the six months ended June 30,2012, and the three months ended March 31, 2012. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release, or in our SEC filings, which are accessible on our web site and at the SEC’s web site, www.sec.gov.

Contact:
Kevin O’Keefe
Weber Shandwick
410-558-2102

 
 

 

 
FINANCIAL HIGHLIGHTS (UNAUDITED)
First Mariner Bancorp
(Dollars in thousands, except per share data)
  For the  three months ended December 31,  
 
2012
 
2011
 
$ Change
 
% Change
 
                 
Summary of Earnings:                    
Net interest income
$ 8,975   $ 7,589   1,386   18 %
Provision for loan losses
  2,000     2,750   (750 ) -27 %
Noninterest income
  15,992     7,722   8,270   107 %
Noninterest expense
  21,900     17,142   4,758   28 %
Net income/(loss) before income taxes
  1,067     (4,581 ) 5,648   123 %
Income tax expense/(benefit)
  368     (606 ) 974   161 %
Net income/(loss)
  699     (3,975 ) 4,674   118 %
                     
Profitability and Productivity:                    
Net interest margin
  3.17 %   3.13 % -   1 %
Net overhead ratio
  1.77 %   3.14 % -   -44 %
Efficiency ratio
  87.72 %   111.96 % -   22 %
Mortgage loan production
  742,065     407,580   334,485   82 %
Average deposits per branch
  56,516     46,125   10,390   23 %
                     
Per Share Data:                    
Basic earnings per share
$ 0.04   $ (0.21 ) 0.25   118 %
Diluted earnings per share
$ 0.04   $ (0.21 ) 0.25   118 %
Book value per share
$ (0.44 ) $ (1.35 ) 0.90   67 %
Number of shares outstanding
  18,860,482     18,860,482   -   0 %
Average basic number of shares
  18,860,482     18,860,482   -   0 %
Average diluted number of shares
  18,860,482     18,860,482   -   0 %
                     
Summary of Financial Condition:                     
At Period End:
                   
Assets
$ 1,377,529   $ 1,179,017   198,512   17 %
Investment Securities
  57,676     22,682   34,994   154 %
Loans
  610,396     701,751   (91,355 ) -13 %
Deposits
  1,186,830     1,014,760   172,070   17 %
Borrowings
  179,049     173,747   5,302   3 %
Stockholders' equity
  (8,372 )   (25,412 ) 17,040   67 %
                     
Average for the period:
                   
Assets
$ 1,323,303   $ 1,188,326   134,977   11 %
Investment Securities
  46,855     21,771   25,084   115 %
Loans
  633,135     724,837   (91,702 ) -13 %
Deposits
  1,138,580     1,028,486   110,094   11 %
Borrowings
  174,452     168,898   5,554   3 %
Stockholders' equity
  (6,151 )   (23,580 ) 17,429   -74 %
                     
Capital Ratios at period end:  First Mariner Bank                    
Leverage
  3.8 %   3.0 % -   27 %
Tier 1 Capital to risk weighted assets
  6.1 %   4.2 % -   45 %
Total Capital to risk weighted assets
  7.3 %   5.5 % -   33 %
                     
Asset Quality Statistics and Ratios:                    
Net (recoveries) / charge offs
  2,662     3,061   (399 ) -13 %
Non-performing assets
  56,518     61,913   (5,395 ) -9 %
Loans past due 90 days or more and accruing
  222     6,316   (6,094 ) -96 %
Annualized net chargeoffs to average loans
  1.67 %   1.68 % -   0 %
Non-performing assets to total assets
  4.10 %   5.25 % -   -22 %
90 Days or more delinquent loans to total loans
  0.04 %   0.90 % -   -96 %
Allowance for loan losses to total loans
  1.87 %   1.97 % -   -5 %
 
 
 
 

 


FINANCIAL HIGHLIGHTS (UNAUDITED)
               
First Mariner Bancorp
               
(Dollars in thousands, except per share data)
               
 
For the years ended December 31,
 
 
2012
 
2011
 
$ Change
 
% Change
 
Summary of Earnings:
               
Net interest income
$ 31,946   $ 28,182   $ 3,764   13 %
Provision for loan losses
  2,572     14,330     (11,758 ) -82 %
Noninterest income
  55,486     23,249     32,237   139 %
Noninterest expense
  68,580     67,951     629   1 %
Net income/(loss) before income taxes
  16,280     (30,850 )   47,130   -153 %
Income tax expense/(benefit)
  163     (606 )   769   -127 %
Net income/(loss)
  16,117     (30,244 )   46,361   -153 %
                       
Profitability and Productivity:
                     
Net interest margin
  3.14 %   3.03 %   -   4 %
Net overhead ratio
  1.06 %   3.70 %   -   -71 %
Efficiency ratio
  78.44 %   132.12 %   -   -41 %
Mortgage loan production
  2,516,461     1,098,513     1,417,948   129 %
Average deposits per branch
  56,516     46,125     10,390   23 %
                       
Per Share Data:
                     
Basic earnings per share
$ 0.85   $ (1.62 )   2.47   -153 %
Diluted earnings per share
$ 0.85   $ (1.62 )   2.47   -153 %
Book value per share
$ (0.44 ) $ (1.35 )   0.90   -67 %
Number of shares outstanding
  18,860,482     18,860,482     -   0 %
Average basic number of shares
  18,860,482     18,693,779     166,703   1 %
Average diluted number of shares
  18,860,482     18,693,779     166,703   1 %
                       
Summary of Financial Condition:
                     
At Period End:
                     
Assets
$ 1,377,529   $ 1,179,017     198,512   17 %
Investment Securities
  57,676     22,682     34,994   154 %
Loans
  610,396     701,751     (91,355 ) -13 %
Deposits
  1,186,830     1,014,760     172,070   17 %
Borrowings
  179,049     173,747     5,302   3 %
Stockholders' equity
  (8,372 )   (25,412 )   17,040   -67 %
                       
Average for the period:
                     
Assets
$ 1,231,122   $ 1,209,548     21,574   2 %
Investment Securities
  35,900     42,333     (6,433 ) -15 %
Loans
  661,996     753,299     (91,303 ) -12 %
Deposits
  1,058,091     1,037,726     20,365   2 %
Borrowings
  173,477     169,496     3,981   2 %
Stockholders' equity
  (15,574 )   (10,950 )   (4,624 ) 42 %
                       
Capital Ratios at period end: First Mariner Bank
                     
Leverage
  3.8 %   3.0 %   -   27 %
Tier 1 Capital to risk weighted assets
  6.1 %   4.2 %   -   45 %
Total Capital to risk weighted assets
  7.3 %   5.5 %   -   33 %
                       
Asset Quality Statistics and Ratios:
                     
Net Chargeoffs
  4,939     14,644     (9,705 ) -66 %
Non-performing assets
  56,518     61,913     (5,395 ) -9 %
Loans past due 90 days or more and accruing
  222     6,316     (6,094 ) -96 %
Annualized net chargeoffs to average loans
  0.75 %   1.94 %   -   -62 %
Non-performing assets to total assets
  4.10 %   5.25 %   -   -22 %
90 Days or more delinquent loans to total loans
  0.04 %   0.90 %   -   -96 %
Allowance for loan losses to total loans
  1.87 %   1.97 %   -   -5 %
                       

 
 

 


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
         
First Mariner Bancorp
                 
(Dollars in thousands)
                 
   
As of December 31,
         
   
2012
 
2011
 
$ Change
 
% Change
 
Assets:
                 
Cash and due from banks
  $ 169,225   $ 104,204     65,021   62 %
Interest-bearing deposits
    16,556     44,585     (28,029 ) -63 %
Available-for-sale investment securities, at fair value
    57,676     22,682     34,994   154 %
Loans held for sale
    404,289     182,992     221,297   121 %
Loans receivable
    610,396     701,751     (91,355 ) -13 %
Allowance for loan losses
    (11,434 )   (13,801 )   2,367   -17 %
Loans, net
    598,962     687,950     (88,988 ) -13 %
Real estate acquired through foreclosure
    18,058     25,235     (7,177 ) -28 %
Restricted stock investments, at cost
    7,099     7,085     14   0 %
Premises and equipment, net
    37,651     38,278     (627 ) -2 %
Accrued interest receivable
    4,387     4,025     362   9 %
Bank owned life insurance
    38,601     37,478     1,123   3 %
Prepaid expenses and other assets
    25,025     24,503     522   2 %
Total Assets
  $ 1,377,529   $ 1,179,017     198,512   17 %
                         
Liabilities and Stockholders' Equity:
                       
Liabilities:
                       
Deposits
  $ 1,186,830   $ 1,014,760     172,070   17 %
Borrowings
    126,981     121,679     5,302   4 %
Junior subordinated deferrable interest debentures
    52,068     52,068     -   0 %
Accrued expenses and other liabilities
    20,022     15,922     4,100   26 %
Total Liabilities
    1,385,901     1,204,429     181,472   15 %
                         
Stockholders' Equity
                       
Common Stock
    939     939     -   0 %
Additional paid-in-capital
    79,872     80,125     (253 ) 0 %
Retained Deficit
    (87,337 )   (103,454 )   16,117   16 %
Accumulated other comprehensive loss
    (1,846 )   (3,022 )   1,176   39 %
Total Stockholders' Equity
    (8,372 )   (25,412 )   17,040   67 %
Total Liabilities and Stockholders' Equity
  $ 1,377,529   $ 1,179,017     198,512   17 %
                         

 
 

 


CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
             
First Mariner Bancorp
                       
(Dollars in thousands)
 
For the three months
   
For the year
 
   
ended December 31,
   
ended December 31,
 
   
2012
   
2011
   
2012
   
2011
 
Interest Income:
                       
Loans
  $ 12,637     $ 11,635     $ 46,281     $ 45,502  
Investments and interest-bearing deposits
    390       354       1,453       2,005  
Total Interest Income
    13,027       11,989       47,734       47,507  
                                 
Interest Expense:
                               
Deposits
    3,105       3,446       11,962       15,663  
Borrowings
    947       954       3,826       3,662  
Total Interest Expense
    4,052       4,400       15,788       19,325  
                                 
Net Interest Income Before Provision for Loan Losses
    8,975       7,589       31,946       28,182  
                                 
Provision for Loan Losses
    2,000       2,750       2,572       14,330  
                                 
Net Interest Income After Provision for Loan Losses
    6,975       4,839       29,374       13,852  
                                 
Noninterest Income:
                               
Total other-than-temporary impairment ("OTTI") charges
    192       22       273       (305 )
    Less: Portion included in other comprehensive income
    (192 )     (42 )     (733 )     (533 )
Net OTTI charges on securities available for sale
    -       (20 )     (460 )     (838 )
Mortgage banking revenue
    14,232       5,653       49,682       13,595  
ATM Fees
    550       732       2,617       3,046  
Service fees on deposits
    636       751       2,563       2,945  
Gain on sale of securities available for sale
    -       (23 )     -       758  
Gain / (loss) on sale of assets
    -       (4 )     (1,271 )     -  
Commissions on sales of nondeposit investment products
    45       90       256       437  
Income from bank owned life insurance
    269       307       1,122       1,291  
Other
    260       236       977       2,015  
Total Noninterest Income
    15,992       7,722       55,486       23,249  
                                 
Noninterest Expense:
                               
Salaries and employee benefits
    6,970       5,517       24,408       23,520  
Occupancy
    2,097       2,220       8,440       8,627  
Furniture, fixtures and equipment
    389       378       1,407       1,735  
Professional services
    2,196       2,756       4,281       6,498  
Advertising and marketing
    1,099       948       1,708       1,418  
Data processing
    341       392       1,578       1,629  
ATM servicing expenses
    190       211       868       866  
Costs of other real estate owned
    2,946       1,154       6,485       7,789  
FDIC insurance premiums
    1,124       895       4,255       4,285  
Service and maintenance
    904       615       2,703       2,487  
Corporate insurance
    852       526       2,423       1,595  
Other
    2,792       1,530       10,024       7,502  
Total Noninterest Expense
    21,900       17,142       68,580       67,951  
                                 
Net income/(loss) before income taxes
    1,067       (4,581 )     16,280       (30,850 )
Income tax expense/(benefit)
    368       (606 )     163       (606 )
                                 
Net income/(loss)
  $ 699     $ (3,975 )   $ 16,117     $ (30,244 )
                                 

 
 

 

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)
           
First Mariner Bancorp
                   
(Dollars in thousands)
                   
   
For the three months ended December 31,
 
   
2012
   
2011
 
   
Average
 
Yield/
   
Average
 
Yield/
 
   
Balance
 
Rate
   
Balance
 
Rate
 
Assets:
                   
Loans
                   
Commercial Loans and LOC
  $ 47,445   5.45 %   $ 58,314   5.16 %
Commercial Mortgages
    286,684   6.07 %     333,153   5.98 %
Commercial Construction
    49,938   5.57 %     54,327   5.75 %
Consumer Residential Construction
    18,709   4.92 %     18,857   3.38 %
Residential Mortgages
    111,928   5.47 %     122,786   5.56 %
Consumer
    118,431   3.93 %     137,400   4.40 %
Total Loans
    633,135   5.44 %     724,837   5.46 %
                         
Loans held for sale
    404,296   3.85 %     162,695   3.92 %
Trading and available for sale securities, at fair value
    46,855   2.85 %     21,771   5.04 %
Interest bearing deposits
    28,619   0.79 %     37,905   0.85 %
Restricted stock investments, at cost
    6,882   0.00 %     7,006   0.00 %
                         
Total earning assets
    1,119,787   4.61 %     954,214   4.96 %
                         
Allowance for loan losses
    (12,643 )         (15,039 )    
Cash and other non earning assets
    216,159           249,151      
                         
Total Assets
  $ 1,323,303         $ 1,188,326      
                         
Liabilities and Stockholders' Equity:
                       
Interest bearing deposits
                       
NOW deposits
    4,512   0.33 %     5,674   0.98 %
Savings deposits
    58,990   0.19 %     55,900   0.19 %
Money market deposits
    150,200   0.58 %     124,132   0.52 %
Time deposits
    821,506   1.31 %     742,756   1.73 %
Total interest bearing deposits
    1,035,208   1.17 %     928,462   1.47 %
                         
Borrowings
    174,452   2.16 %     168,898   2.24 %
                         
Total interest bearing liabilities
    1,209,660   1.33 %     1,097,360   1.59 %
                         
Noninterest bearing demand deposits
    103,372           100,024      
Other liabilities
    16,422           14,522      
Stockholders' Equity
    (6,151 )         (23,580 )    
                         
Total Liabilities and Stockholders' Equity
  $ 1,323,303         $ 1,188,326      
                         
Net Interest Spread
        3.27 %         3.37 %
                         
Net Interest Margin
        3.17 %         3.13 %
                         

 
 

 


CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (UNAUDITED)
           
First Mariner Bancorp
                   
(Dollars in thousands)
                   
   
For the years ended December 31,
 
   
2012
   
2011
 
   
Average
 
Yield/
   
Average
 
Yield/
 
   
Balance
 
Rate
   
Balance
 
Rate
 
Assets:
                   
Loans
                   
Commercial Loans and LOC
  $ 50,855   5.30 %   $ 63,433   5.36 %
Commercial Mortgages
    301,916   5.96 %     337,955   6.14 %
Commercial Construction
    52,365   5.64 %     55,698   5.69 %
Consumer Residential Construction
    17,362   4.53 %     22,851   4.56 %
Residential Mortgages
    115,414   5.43 %     130,885   5.30 %
Consumer
    124,084   4.24 %     142,477   4.49 %
Total Loans
    661,996   5.43 %     753,299   5.53 %
                         
Loans held for sale
    276,959   3.73 %     89,812   4.25 %
Trading and available for sale securities, at fair value
    35,900   3.38 %     42,333   3.70 %
Interest bearing deposits
    34,711   0.69 %     37,328   1.17 %
Restricted stock investments, at cost
    6,947   0.00 %     7,036   0.00 %
                         
Total earning assets
    1,016,513   4.70 %     929,808   5.11 %
                         
Allowance for loan losses
    (13,389 )         (14,657 )    
Cash and other non earning assets
    227,998           294,397      
                         
Total Assets
  $ 1,231,122         $ 1,209,548      
                         
Liabilities and Stockholders' Equity:
                       
Interest bearing deposits
                       
NOW deposits
    5,567   0.83 %     6,182   0.27 %
Savings deposits
    58,453   0.43 %     57,450   0.19 %
Money market deposits
    138,764   0.55 %     127,584   0.56 %
Time deposits
    753,580   1.45 %     743,309   1.99 %
Total interest bearing deposits
    956,364   1.25 %     934,525   1.68 %
                         
Borrowings
    173,477   2.21 %     169,496   2.16 %
                         
Total interest bearing liabilities
    1,129,841   1.40 %     1,104,021   1.75 %
                         
Noninterest bearing demand deposits
    101,727           103,201      
Other liabilities
    15,128           13,276      
Stockholders' Equity
    (15,574 )         (10,950 )    
                         
Total Liabilities and Stockholders' Equity
  $ 1,231,122         $ 1,209,548      
                         
Net Interest Spread
        3.30 %         3.36 %
                         
Net Interest Margin
        3.14 %         3.03 %