1st Mariner Bancorp said Friday that it lost $3.1 million for the first quarter, or 48 cents per share, as the Baltimore company continued to see deterioration in its real estate loan portfolio.
For the corresponding quarter last year, 1st Mariner lost $3.278 million, or 52 cents per share.
Nonperforming assets in the first quarter rose to $65.1 million, or 4.72 percent of total assets, up nearly $25 million from a year earlier. That increase is largely due to bad loans in residential construction and development.
The company said it recently entered into a regulatory order with the Federal Deposit Insurance Corp. for alleged violations of consumer protection laws. As part of that, 1st Mariner will pay a $50,000 fine. The company had set aside $950,000 for restitution for affected consumers.
On the upside, mortgage loan originations in the quarter reached $513 million, or $98 million more than the year before. Much of the increase is from rising refinancings now that interest rates are so low. Deposits grew by 8 percent to $1.022 billion. Total assets at the end of the quarter reached $1.38 billion, a 7 percent increase over a year earlier.
"We see many positive trends in the first-quarter operating numbers, especially strong mortgage banking originations and revenue that contributed significantly to the improvement in our results," Edwin F. Hale Sr., chairman and chief executive officer, said in a statement. "This momentum is continuing as we move through the second quarter."
Banking consultant Bert Ely said it's too early for any bank that has had a lot of loan quality problems to conclude the worst is over because "the economy has not bottomed out."
1st Mariner's stock closed up 4 cents in trading Friday to 95 cents per share.