First Mariner Bancorp said Thursday that it made a profit for the second quarter in a row.
The parent of 1st Mariner Bank reported net income of $5.7 million for the second quarter of 2012, compared to a net loss of $11 million for the second quarter of 2011.
The Baltimore-based company made $1.8 million in the first quarter, its first quarterly profit in five years.
“Our improved operating results for the second quarter were driven by a robust mortgage banking environment, improved credit quality, and continued reductions in operating expenses,” Mark A. Keidel, First Mariner’s CEO, said in a statement. “The low interest rate environment and the addition of new mortgage production units have significantly increased loan production for home purchases and refinances. We experienced a record number of mortgage settlements during the quarter and for the first six months of 2012, with origination volume in excess of $1.0 billion.”
For the first half of the year, the company’s net income was $7.5 million, compared to a loss of $18.3 million for the six months ended June 30, 2011.
First Mariner has been beset with capital concerns. A deal announced in April 2011 would have seen private equity firm Priam Capital Fund I LP invest $36.4 million in 1st Mariner, but only after the bank raised $123.6 million in new capital.
In the agreement, Priam reserved the right to terminate the deal if the bank and its parent company had not raised $70.3 million by July 18 or $123.6 million by the start of September. The deadlines are not automatic and must be acted on by Priam, which has so far let the deadlines pass without pulling out of the deal.
1st Mariner’s shares gained 3 cents, or nearly 5.7 percent, to close at 56 cents Thursday.