First Mariner reports $7.4 million loss in third quarter

Rising interest rates blamed for a drop in revenue from mortgage business

November 08, 2013|By Eileen Ambrose, The Baltimore Sun

First Mariner Bancorp on Friday reported a $7.4 million loss in the third quarter, which the Baltimore-based company blamed on a steep increase on interest rates that dampened its mortgage business.

The loss amounts to 38 cents per share, compared with a profit of $7.9 million, or 42 cents per share, for the quarter a year earlier.

CEO Mark A. Keidel said the third-quarter results were affected by the "rapid and steep increase" in long-term Treasury rates.

"Like most in the residential mortgage industry, we experienced declines in production and a significant compression of the margins on sold loans," Keidel said in a statement.

Total assets at the end of September reached $1.08 billion, a 16 percent decrease from a year ago. Deposits fell by 13 percent from a year earlier to $981.3 million.

First Mariner has been under orders from regulators to boost capital levels. Keidel said the company is still trying to comply.

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