Bad loans and real estate losses continued to weigh down First Mariner Bancorp, parent company of 1st Mariner Bank, which recorded a loss of $11 million for the quarter ending June 30 compared to $8.5 million during the corresponding period in 2010.
Baltimore-based First Mariner said Friday that it recorded declines not only in profit, but also in deposits and assets while also recording a 17 percent increase in the amount it set aside in the quarter for loan losses.
“While we have reduced our controllable expenses, write-downs associated with declining appraised values on other real estate owned and non-performing loans continue to impact our results,” Edwin F. Hale Sr., First Mariner’s CEO, said in a statement.
First Mariner’s shares were punished after the results were announced, losing 8 cents, or 13.8 percent, to close at 50 cents.
The bank was mum on its progress toward raising $123.6 million in capital to meet the terms of an agreement with New York-based Priam Capital Fund I LP. Under an April 25 agreement, the investment firm would give First Mariner $36.4 million if it is able to raise the remaining amount.
The bank said that during the second quarter its total assets dropped 13 percent to $1.16 billion, compared to $1.34 billion during the corresponding period in 2010. First Mariner attributed the decline to a $121.6 million decrease in loans, a $51.4 million decrease in loans held for sale, and a $26.6 million reduction in the deferred tax assets.
Deposits at the bank also dropped 11 percent in the quarter to $995 million from $1.12 billion in the second quarter of 2010.