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The private equity firm Milestone Partners has sold Mariner Finance, a former division of Baltimore's First Mariner Bancorp.
June 12 -
First Mariner Bancorp (FMAR) in Baltimore swung to a loss as professional fees rose and mortgage banking income cratered.
August 14 -
Ed Hale, who retired as chairman and CEO of First Mariner in Baltimore more than a year ago, has invested in a local technology consulting firm called Think Systems.
June 6
First Mariner Bancorp (FMAR) in Baltimore recorded a large third-quarter loss after its mortgage revenue fell by more than 80% from a year earlier.
The $1.1 billion-asset company said Friday that it lost $7.4 million in the quarter, compared to a $7.9 million profit a year earlier. Its net interest income fell 17% from the third quarter of last year, to $6.7 million, as its net interest margin compressed by 4 basis points, to 2.97%.
Total assets fell 16% from a year earlier.
A slowdown in mortgage activity contributed to a large decline in noninterest income, which fell to $2.4 million from $16.3 million a year earlier. Mortgage banking revenue totaled $548,000 in the quarter, compared to $15.4 million during the third quarter of 2012.
"Our results for the third quarter were materially impacted by the rapid and steep increase in long-term Treasury rates," Chief Executive Mark Keidel said in a press release. "Like most in the residential mortgage industry, we experienced declines in production and a significant compression of the margins on sold loans."
Noninterest expenses rose 2% from a year earlier, to $16.7 million, as professional fees tied to compliance and loan workouts increased. The company did not record a loan-loss provision, and net chargeoffs fell 53% from a year earlier, to $676,000. Nonperforming assets declined by 30% from Sept. 30, 2012, to $39.7 million.
