First Mariner's Net Loss Narrows

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On May 1, 2009, First Mariner Bancorp(FMAR) reported that its net loss narrowed during Q1 FY09 on significant improvements in non-credit related operating performance and continued growth in loans and deposits. Net loss stood at $3.10 million or $0.48 per share compared with a loss of $3.28 million or $0.52 per share in Q1 FY08. The latest quarter consensus estimate was a loss of $0.68 per share.

Total interest income declined 5.9% to $20.44 million from $21.72 million in the year ago quarter due to decreased income from investments and other earning assets. Total earning assets rose 9.7% to $1.19 billion, while yield on interest earning assets declined to 6.91% from 7.99% in Q1 FY08. Total interest expenses slipped 4.0% to $9.36 million from $9.75 million a year ago. Total interest-bearing liabilities climbed 14.7% to $1.18 billion, while the average rate paid on interest bearing liabilities contracted 60 basis points to 3.22%. Consequently, net interest income before provision for loan losses fell 7.5% to $11.08 million from $11.97 million. Net interest margin narrowed to 3.70% from 4.36%, while net interest spread dropped to 3.69% from 4.17% a year ago. Total non-interest income swelled 78.8% to $8.27 million from $4.63 million, led by gains of $3.61 million on sales of mortgage loans, partially offset by a $1.72 million loss on sale of investment securities. Total non-interest expenses rose 10.9% to $20.50 million from $18.48 million. Moreover, the bank's efficiency ratio improved to 97.28% from 111.34% in the year ago quarter.

Provision for loan losses increased to $4.40 million from $3.82 million in Q1 FY08. Net charge offs more than doubled to $5.66 million from $2.80 million, while non-performing assets swelled 61.9% to $65.14 million from $40.23 million. In addition, tier-1 capital to risk weighted assets decreased to 7.3% from 8.7%, and total capital to risk weighted assets came down to 9.1% from 10.6% a year ago.

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