First Mariner Bancorp (FMAR) posted another quarterly profit, but the Baltimore company said it is still looking for capital.
The $1.3 billion-asset company’s earnings rose 39% from the second quarter, to $7.9 million, or 42 cents a share. A year earlier, First Mariner lost $7.9 million.
Noninterest income rose more than doubled from a year earlier, to $16.3 million, because of an increase in mortgage originations. Revenue from mortgage banking rose 234% to $15.4 million.
Net interest income rose 13% from a year earlier, to $8.1 million. The net interest margin compressed by 12 basis points from a year earlier, to 3.01%, because the company had a larger number of residential mortgages held for sale. Still, First Mariner’s efficiency ratio ended the third quarter at 67.4%, compared to 120% a year earlier.
Capital levels remained below regulators’ preferred levels, even though the company reported its third straight profitable quarter. Its Tier 1 risk-based capital ratio was 5.8% on Sept. 30, remaining below the 6% level that regulators consider as well-capitalized. The total risk-based based capital ratio was 7.1%, compared to regulators’ well-capitalized threshold of 10%.
"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, Mark Keidel, the company’s chief executive officer, said in a press release.
