1st Mariner Bancorp reports 3Q results
1st Mariner Bancorp, parent company of 1st Mariner Bank, reported net income of $7.9 million for the third quarter of 2012, compared to a net loss of $7.9 million for the third quarter of 2011. For the nine months ended September 30, 2012, net income was $15.4 million compared to a loss of $26.3 million for the nine months ended September 30, 2011.
Mark A. Keidel, 1st Mariner's Chief Executive Officer, said our positive momentum in earnings continued as we experienced improvements in operating results across all segments of operating performance measures. A record number of mortgage originations during the quarter and for the first nine months of 2012 drove a 110% increase in non-interest income in the third quarter of 2012. While mortgage led the way in operating performance improvement for the third quarter, we also experienced higher net interest income, lower charge offs and credit related expenses, and reduced operating expenses. Mr. Keidel added that along with the improved financial performance, 1st Mariner successfully consolidated administrative units in its Canton headquarters in the third quarter which will reduce future occupancy costs and recently completed a successful conversion of its data processing platform that will enhance customer capabilities and improve back office efficiencies. These initiatives required extraordinary commitment and skill from our employees, and lay the groundwork for improved customer service and lower operating costs.
Net interest income for the third quarter of 2012 was $8.1million compared to $7.1million in the third quarter of 2011. While the net interest margin decreased to 3.01% in the third quarter of 2012, compared to 3.13% in the third quarter of 2011, higher balances of mortgage loans held for sale resulted in higher net interest income. The decrease in net margin was due to a higher mix of residential mortgages held for sale. For the three months ended September 30, 2012, the average rate earned on residential mortgage warehouse loans was 3.54% and for the three months ended September 30, 2011, the rate was 4.88%..